CHICAGO – The 7th U.S. Circuit Court of Appeals voided part of an Indiana law regulating the sale and manufacture of vapor pens and other liquids for use in electronic cigarettes, Reuters reports. The 2015 law mandated rules on cleaning equipment, sinks and contracts with outside security firms, among other things, for out-of-state manufacturers of e-cigarette items.

Judge David Hamilton wrote in the panel’s decision that Indiana’s Vapor Pens and E-Liquid Act has an “extraterritorial reach that is unprecedented,” and that violates the “dormant” Commerce Clause of the U.S. Constitution. He also noted that the state could enforce “even-handed” requirements related to the safety of vaping products.

However, the current rules were “remarkably specific”; so specific that “only one company in the entire United States, located not so coincidentally in Indiana,” could comply. He wrote, “These circumstances raise obvious concerns about protectionist purposes and what looks very much like a legislative grant of monopoly.”

Out-of-state e-cig manufacturers Derb E Cigs, Legato Vapors and Rocky Mountain E-Cigs had appealed a ruling by U.S. District Judge Sarah Evans Barker in Indianapolis. “We're very happy,” said Robert Epstein, a lawyer for the out-of-state companies.