Indiana's Plan to Monopolize the States Vape Industry to fail.
A federal appeals court struck down part of Indiana's controversial law regulating out-of-state production and sale of e-liquids used in vaping.

In a decision issued today by a three-judge panel from the United States Court of Appeals for the 7th Circuit, Judge David Hamilton wrote:

"The Act is written so as to have extraterritorial reach that is unprecedented, imposing detailed requirements of Indiana law on out-of-state manufacturing operations. The Act regulates the design and operation of out-of-state production facilities, including requirements for sinks, cleaning products, and even the details of contracts with outside security firms and the qualifications of those firms’ personnel. Imposing these Indiana laws on out-of-state manufacturers violates the dormant Commerce Clause of the United States Constitution."

The vaping law, enacted in  2015 and amended last year, has been a lightning rod of controversy since it went into effect over the summer, driving dozens of vaping businesses out of the state and increasing the cost of e-liquid.

The unusually specific nature of the security firm requirements has prompted the FBI to look into how the law was passed and at least two lawmakers who voted for the legislation have since landed jobs in the industry.

The appeals court called the security firm requirements “astoundingly specific” and noted that “only one company in the entire United States, located not so coincidentally in Indiana, satisfied the criteria” of the law.

“These circumstances raise obvious concerns about protectionists purposes and what looks very much like a legislative grant of a monopoly to one favored in-state company in the security business,” the court said.

The ruling comes as state lawmakers are considering legislation to "fix" the law that has generated several lawsuits by manufacturers of the substance used in e-cigarettes. A state senate committee is expected to vote Wednesday on a proposed fix.

Interestingly, Sen Ron Alting has flip flopped opinions on the bill he co-authored. In a June 20, 2016 article in the Lafayette Journal and Carrier, Sen. Alting states:

“There is no boogeyman in the closet on this, trust me,” added State Senator Ron Alting (R), who also authored part of the vaping bill. He insisted complaints about the new regulations are coming from “people that don’t want government regulations on this and want to be able to manufacture in bathtubs in back rooms.”

Yet 10 days later, on June 30th, Sen. Alting has a change of opinion, as published in the Indy Star.

A key lawmaker on Indiana's controversial vaping legislation said Thursday the law needs to be fixed.

“I give you my word that I’ll work with the leadership in the Senate, and we’re going to get that thing fixed,” Sen. Ron Alting told the Lafayette Journal & Courier this week. “This was supposed to be about safety in an unregulated industry, not about creating monopolies or anything.”

Well Sen. Alting, perhaps you should've listened to those that KNEW what the bill would do, rather than to haphazardly go along with monopolizing the industry in the state of Indiana. Insulting eliquid companies with stellar reputations by saying they manufacture in bathtubs is irresponsible in the least. How many more families are you going to put out of business in your state because of your lack of understanding, and poor lawmaking? Senator?

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Troop

To clarify a bit on the IN topic, this is from ISFA, and published at GuideToVaping.com (published 2/2/17)…

Despite the fact that a large part of the monopolizing law has been deemed unconstitutional due to its stranglehold on Interstate commerce, as of right now, nothing has changed.

The Indiana Smoke Free Alliance has spent the majority of this week fielding calls from manufacturers around the nation, hoping to once again do business in the Hoosier state. Last night, Amy Lane — President of the Indiana Smoke Free Alliance– released a comprehensive statement to explain the current state of affairs.

ISFA is asking ALL companies throughout the nation to BE PATIENT through this process. There are a lot of moving parts in play and immediate access to Indiana is NOT possible today.

The ultimate and permanent fix lies with SB1 which will truly bring access back to Indiana. ISFA is working directly with Senator Randall Head, the Bill sponsor, along with Leadership in the Senate and House to incorporate the new Federal ruling into SB1. We are confident that SB1 will be the vehicle that returns business to Indiana and allows reasonable regulations to ensure the safety of Indiana consumers. If you really want access back in Indiana, donate to Indiana Smoke Free Alliance’s efforts by showing your support of SB1. ALL companies who donate will be recognized on our site as supporters of this tremendously successful campaign. Visit our website at www.insmokefree.org today to donate!

Clarifications on the Federal Appeals Court Decision:

• NO companies CANNOT start selling into Indiana immediately
• Manufacturers, Distributors, Brand Holders, or Retail companies who are located outside the state of Indiana cannot sell into the state without a permit issued by the Indiana Alcohol and Tobacco Commission
• In state companies must still follow the current law that is in place- retail can only purchase from the seven current permitted manufacturers in the state
• The permit application period closed as of June 30, 2016 for instate and out-of-state companies to obtain an Indiana Manufacturers Permit
• “The Indiana Alcohol & Tobacco Commission cannot issue new permits or allow additional manufacturers to produce e-liquid in or to be sold in Indiana until the District Court for the Southern District of Indiana has received the certified opinion from the Seventh Circuit and issued its revised final order consistent with the appellate court ruling”- from the ATC website
• All of the current violations, fees, etc are still in effect for Indiana businesses. ATC can still choose to enforce these on your business if you are not carrying products from a valid permit holder

Read more ISFA Clears The Air On The Indiana Lawsuit at GuideToVaping.com.

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