Updates on FDA??s Plans to Prevent the Sale of Tobacco Products to Minors
On January 11, 2011 the U.S. Food & Drug Administration (FDA) provided an update on the agency??s enforcement program under the Tobacco Control Act, the law that gave FDA enforcement authority, along with the states, to prevent underage tobacco sales. Below are the most significant facts about FDA??s enforcement plan that retailers need to be aware of:

• State Partnerships - FDA intends to do part of its enforcement through contracts with all fifty states. Under these contracts, states provide FDA a list of all retail establishments located within the state??s jurisdiction, as well as a list of state personnel who will perform "compliance checks" at retailer outlets. FDA will then train these individuals to ensure consistent enforcement throughout the nation. FDA has thus far contracted with 15 states (AL, AR, AZ, CO, ID, KS, ME, MD, MA, MS, MO, IL, TN, PA, WA).
• Undercover Sting Operations Involving Minors - State enforcement personnel will partner with minors to test retailer compliance with the Tobacco Control Act??s requirements for checking purchasers?? identification to verify age. As part of this process, the compliance official will also inspect retailer compliance with all other aspects of the law, obtaining document evidence to be sent to FDA if there are any violations. Upon receiving this evidence, FDA will determine whether to bring an enforcement action. Note that states may also decide to bring their own separate enforcement actions based on evidence of violations discovered during these enforcement initiatives.
• Enforcement Options at FDA??s Disposal - FDA has a variety of enforcement options that they may utilize against retailers who are alleged to have violated the law. Generally, the penalties for retailers will depend on (a) whether the violation involved restrictions against targeting youths in tobacco advertisements, or selling tobacco products to minors; (b) whether the retailer has an adequate training program for employees; and (c) how many previous violations occurred at the particular retail outlet. The most lenient penalty is a Warning Letter, which FDA intends to be its principal means of achieving prompt voluntary compliance. These letters will request that a retailer submit a corrective action plan to FDA, and the agency will then determine?"generally through a re-inspection of the facility?"whether the letter??s recipient has taken appropriate corrective action. The FDA has indicated that it will generally issue Warning Letters in response to any first-time violations. Thus far, FDA has issued 25 warning letters in Mississippi (the first state to begin compliance check inspections). Retailers should note that other penalties that could be assessed are civil fines for multiple violations at the same retail location, and no-tobacco-sale orders against retailers who repeatedly (at least five violations over a 36 month period at a particular retail outlet) violate the Tobacco Control Act??s requirements.
• Inspections and Enforcement Actions to be Tracked Online -FDA will track on the Center for Tobacco Products?? website (i) inspections that are conducted, (ii) findings of compliance or non-compliance, and (iii) those retailers receiving warning letters and further punishment. Should violations occur, the name of the retail establishment?"and not the individual store employee?"will be listed on the website.

For more information on Tobacco Control Act regulation, visit the FDA website or NACS?? compliance page (http://www.nacsonline.com/compliance).

NACS Staff Contact: Lyle Beckwith, lbeckwith@nacsonline.com

House Vote on Repealing Health Care Law Set for Next Week
After the tragic shooting in Arizona last weekend the House of Representatives postponed all legislative action including the first attempt at reversing the health care law. Leadership announced yesterday that they would be taking an up or down vote on repealing the Patient Protection and Affordable Care Act (PPACA) in its entirety sometime next week.

This is the first of many tries the new Republican majority will take to disassemble the law. The vote is largely symbolic as it is widely known that the Senate will never take up such a measure and the President would certainly veto any legislation that came his way.

Oversight hearings and votes on piecemeal legislation are the more likely paths to success for any changes to the law. The House will be very busy with this as it is a top priority for Republican leadership

NACS Staff Contact: Julie Fields, jfields@nacsonline.com

2011 NACS Day on the Hill Congressional Fly-In
Nothing in politics is more effective than meeting face-to-face with your elected officials. Join your NACS colleagues in Washington, DC, March 9-11 to welcome the new Congress to town and to put your stamp on the new Congressional agenda.

Be among the first from our industry to engage with the new Congress. NACS will provide the training tools necessary for success and schedule your meetings with key legislators.

Agenda

Wednesday, March 9, 2011

• 12:00 - 3:00 pm: Media Training - Space limited and reservation required
• 4:00 - 4:45 pm: NACS Issue Briefing
• 4:45 - 5:30 pm: How to Lobby Congress Briefing - distribution of schedules and coordination of groups
• 6:00 - 6:45 pm: Cocktail Reception
• 6:45 - 8:15 pm: Dinner with Political Speaker
• 8:30 - 10:30 pm: Special Evening Tour of U.S. Capitol Building led by Members of Congress (reservations required)

Thursday, March 10, 2011

• 8:00 - 9:00 am: Breakfast on Capitol Hill
• 9:00 - 5:00 pm: Meetings with Representatives and Senators
• 5:30 - 6:30 pm: NACSPAC Congressional Reception
• 7:00 - 10:00 pm: Dinner/Event to be Determined

Friday, March 11, 2011

• 8:00 - 12:00 pm: Board of Directors' Meeting

For more information and to register go to capitolconnect.com/nacs.

NACS Staff Contact: Kelly Fink, kfink@nacsonline.com.