State Senate's leader unveils e-cigarette bill; tax rise, curbs on public use proposed

FILE — A smoker fires up an electronic cigarette in Chicago in 2014.
FILE — A smoker fires up an electronic cigarette in Chicago in 2014.

Arkansas' Senate leader on Monday publicized a draft bill that would raise taxes on electronic cigarettes and bar their use in places where traditional cigarettes are prohibited.

Senate President Pro Tempore Jim Hendren, R-Sulphur Springs, said he drafted the legislation to give the General Assembly a "starting point" as it contemplates how to address the rising popularity of e-cigarette use, commonly called vaping.

State lawmakers held their first hearing on the matter last week as public health officials locally and nationally caution against vaping because of an outbreak of respiratory illnesses across the country and six deaths associated with e-cigarette use.

During the regular legislative session earlier this year, Hendren sponsored a bill to tax e-cigarettes, but it died in the House after passing in the Senate. He acknowledged that there's still work to be done to build a consensus on the matter, and he expects Monday's proposal to be tweaked.

"The potential harm to our children's health makes it imperative that we act with urgency," Hendren said. "The Health Department reports that vaping among teenagers is at epidemic levels, and minors who use e-cigarettes are at risk for contracting severe lung disease.

"I've circulated a draft bill among legislators, and I'm encouraged by the favorable response. Now, the question is, when will the Legislature have the opportunity to consider it?"

The next session of the Legislature is in April, but its main purpose would be to consider budget bills. The next regular session is in 2021.

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The Arkansas General Assembly so far has struggled to find common ground on the issue as many Republicans are reluctant to support any tax increase. But Hendren said support for increasing e-cigarette regulations has grown as school superintendents and public health officials have highlighted the rise of vaping among Arkansas teenagers.

The draft legislation would tax vaping products at the same level as noncigarette tobacco products. In Arkansas, cigarettes are taxed at $1.15 per pack; other tobacco products are taxed at 68% of the manufacturer's invoiced selling price before any discounts. Currently, e-cigarettes carry only the standard sales tax.

Under Hendren's proposal, the additional revenue generated by the e-cigarette tax would go to public schools for safety improvements.

The legislation would also amend the Arkansas Clean Indoor Air Act to ban the use of vaping products in public places where tobacco smoking is prohibited.

Additionally, e-cigarette companies would be restricted from advertising within 1,000 feet of a school or playground.

Hendren said he expects the bill to be tweaked, but not to the point that it's "watered down."

"Sometimes the Legislature will talk something to death," he said. "This is a starting point for a discussion to see if we can build enough consensus to have the governor call us down and implement it into law."

Hendren said he hopes that lawmakers can pass vaping-related legislation in a special session or during next year's fiscal session.

House Speaker Matthew Shepherd, R-El Dorado, said in a Monday statement that he was reviewing Hendren's proposal.

Gov. Asa Hutchinson in a Monday statement said he was open to proposals from lawmakers about addressing the rising use of e-cigarettes, particularly among youths. Hutchinson is Hendren's uncle.

"Vaping among our teenagers is a serious national concern, and we need to send a clear message to our young people that there are multiple health risks associated with vaping," the Republican governor said. "Senator Hendren's bill is the type of legislation that should be considered by the general assembly either in the next regular session or at such a time when a consensus is reached."

Rep. Lane Jean, R-Magnolia, said he'd like for more study to be done before he supports Hendren's bill. Jean, who is a co-chairman of the Joint Budget Committee, opposed the bill Hendren introduced during the session earlier this year.

Jean said he is concerned that too high of an e-cigarette tax could put Arkansas retailers at a competitive disadvantage with those in surrounding states. Fifteen states, including Louisiana and Kansas, have approved excise taxes on e-cigarettes in recent years.

Jean also said he'd rather see any additional revenue from e-cigarette taxes go toward offsetting health care costs. Hendren's bill during the session would have used the revenue to offset an earned income tax credit for low- and middle-income earners.

"We're going to need it," Jean said of funding for health care, noting that the state's Medicaid spending is rising annually.

Rep. Joe Jett, R-Success, said he believes that House members will consider any legislation on its merits. Jett chairs the House Revenue and Taxation Committee, where Hendren's bill died in the legislative session earlier this year.

Jett said that House members struggled to support the measure earlier this year because it came toward the end of the session without a lot of time for study.

He complimented Hendren for having the courage to take on a large issue like vaping, but he said that Hendren, who never presented the bill before Jett's committee, should've argued for the bill in committee if he wanted it to have any chance of passing.

"He never showed up," Jett said. "And I'd argue he never had the conviction to pass it."

Hendren said he never presented the bill because he didn't have the votes to pass it, adding it would've been a "waste of everyone's time."

Jett said he thought the matter would benefit from more research and debate.

The Senate and House Public Health, Welfare and Labor committees are scheduled Wednesday to consider adopting a study on e-cigarettes. The study proposal is sponsored by Hendren and the Senate committee chairman, Sen. Missy Irvin, R-Mountain View.

A spokesman for Juul, the predominant e-cigarette manufacturer, said company officials would review Hendren's proposal and that they agree that there is a need for "aggressive category-action on vapor products."

"We will continue to combat youth usage, while supporting reasonable access to vapor products for adults looking to switch from combustible cigarettes," the company spokesman said in a statement.

E-cigarettes consist of nicotine contained in a liquid that is aerosolized and inhaled. Vaping has been billed as a safer alternative to smoking, in part, because e-cigarettes don't contain tobacco. But the U.S. Food and Drug Administration has not approved vaping products as safer alternatives to smoking.

Last week, President Donald Trump's administration said the FDA would ban flavored liquid from being used in e-cigarettes.

While Arkansas lawmakers rebuffed efforts to impose excise taxes on vaping products during the legislative session, they did approve a separate bill to raise the tobacco and e-cigarette buying age to 21 over three years.

A Section on 09/17/2019

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