Health and Human Services Secretary Kathleen Sebelius and Food and Drug Administration Commissioner Margaret Hamburg held a press conference yesterday to go over the final rules regulating the sale of tobacco. Secretary Sebelius said, "This ruling is a critical piece of a coordinated effort to save lives, lower costs, and reduce suffering from heart disease, cancer, and other tobacco related illness. We??re addressing a larger public health effort to prevent our children from becoming the next generation of Americans to die early from tobacco-related disease. This is a great step toward a healthier America."
It is imperative to note that all retailers must be in compliance with these new regulations by June 22, 2010. NACS has provided a compliance document (PDF). Highlights include:
- No retailer may sell cigarettes or smokeless tobacco to anyone under the age of eighteen (18).
- Retailers must verify the age, through picture ID prior to making sales to persons under the age of twenty seven (27).
- All sales must be made in face-to-face transactions. That is, retailers may not use vending machines or other self-service machines to sell tobacco products. The FDA has not announced whether it will prohibit in-store displays or other consumer access prior to purchase. NACS will keep a close eye on whether products may stay on display or will need to be put behind store counters.
- Retailers may not break open standard-sized cigarette packages (twenty (20) cigarettes per pack) and sell cigarettes in lesser quantities.
- Each retailer has an obligation to comply with the advertising and labeling requirements of the regulations. We anticipate severe limits on the ability of retailers to advertise tobacco products outdoors. EPA has initiated a rulemaking proceeding on this subject. It is not clear what requirements, if any, the FDA will impose on in-store advertising; the Act gave the FDA very wide latitude in this area. Advertising issues are highly likely to wind up in court after the final rule is announced.
- Retailers may not alter or remove the warning labels on tobacco products.
- Retailers may not offer free samples of tobacco products.
- Retailers may not accept coupons, proofs-of-purchase or similar items received from the purchase of tobacco products in exchange for any gift or item.
- Retailers may not offer a gift or other item in connection with the sale of a tobacco product (for instance, a free Marlboro shirt with the purchase of a carton of Marlboros).
NACS invites all members to participate in Webinar regarding these latest tobacco regulations on Monday, March 22, 2010 at 2:00 PM (EST). Details will be sent out in the Monday morning NACS Daily.
NACS Staff Contact: Lyle Beckwith, lbeckwith@nacsonline.com
While the FDA finalized rules on the sale and marketing of tobacco products this week, they also announced the intent to create additional regulations on outdoor advertising cigarettes and smokeless tobacco products. Two regulations under consideration to limit billboards located within 1,000 feet of any elementary or secondary school and to prohibit/limit advertisements greater than fourteen square feet located in close proximity to any elementary or secondary school. The public comment period is open until May 18. NACS will be making official comments so continue to look for updates in NACS Daily,
NACS Staff Contact: Lyle Beckwith, lbeckwith@nacsonline.com
House Democrats will be done with their part of health-care reform one way or another by Sunday. Keeping members in a rare weekend session Speaker Nancy Pelosi has called for a series of votes on the Senate health care bill and a companion budget reconciliation package. The process the Democrats are using is complicated, controversial and no one is sure that it is actually constitutional. Regardless votes are starting to be counted and with many Democratic members not saying which way they will go, the only thing that is for sure is that it will be a long weekend. All Republicans have announced that they will oppose the bill.
What??s actually in it also is difficult to accurately analyze. Legislative text was released yesterday and the Congressional Budget Office (CBO) has been trying to release cost estimates but can??t fully complete their work with so many provisions up in the air. What we do know is that this legislative vehicle does all kinds of bad things to employers and employees.
From a retailer perspective here??s a potential what if scenario:
- To determine whether or not your company is a larger employer you have to count both full-time and part-time employees. Part-time employees when averaged together can count as full-time equivalents. If after computing a complicated formula you determine you have 50+ employees you are considered a large employer and therefore subject to requirements to provide coverage. If as a larger employer you don??t offer coverage you will be fined $2000 per employee if even just one employee qualifies for a government subsidy. If as a large employer you offer coverage but it is deemed not affordable and one employee qualifies for a subsidy you will be fined $3000 per employee.
- Makes complete sense, right? And no one in D.C. is even sure if that??s the exact outcome the bill would have. But as of now that??s a possibility.
- NACS will continue to closely monitor all developments over the weekend. And should a bill become law we will guide members through the process of compliance. Be on the lookout for news Monday morning.
NACS Staff Contact: Julie Fields, jfields@nacsonline.com
In a bipartisan effort the Senate sends a jobs package to Obama which he signed into law yesterday. The bill includes a payroll tax break and new highway funding designed to spur job growth. Specifically on payroll taxes companies that hire out-of-work employees through the end of year will receive an exemption. Companies that hire new employees would also get a $1000 tax credit if they employ the worker for at least one year.
The Senate last week passed a $150 billion package that would extend unemployment and other benefits for laid-off workers and that would give businesses more tax breaks. The House will be working on this legislation for the next several weeks.
NACS Staff Contact: Corey Fitze, cfitze@naconline.com
Whether or not the Employee Free Choice Act (EFCA), also known as Card Check, comes up for a vote in the Senate the Obama Administration plans on forging ahead with significant changes to workforce policy.
Increased budget proposals at both the Occupational Safety and Health Administration (OSHA) and the Labor Department??s Wage and House Division provide for as many as 100 additional inspectors each. The requests are justified as necessary to improve enforcement initiatives and reduce back log. The National Labor Relations Board (NLRB) will likely play a significant role in reversing Bush-era decisions as soon as its members complete the nomination process.
NACS Staff Contact: Corey Fitze, cfitze@nacsonline.com