Capitol Notebook: Retailers, e-cigarette makers sue to halt Iowa vape registry law

A group of Iowa retailers, distributors and e-cigarette manufacturers are suing to block enforcement of a new Iowa law backed by tobacco companies that would restrict vape sales in the state.

The lawsuit, led by an industry group called Iowans for Alternatives to Smoking and Tobacco, says the new law would severely restrict vape sales in Iowa, to the benefit of Big Tobacco.

Iowa lawmakers earlier this year passed and Gov. Reynolds signed into law House File 2677, creating a registry of approved vaping products vetted by the U.S. Food and Drug Administration.

Under the law, retailers could sell only products listed on the state-approved registry — which would be limited to those the FDA has approved for sale, or those whose application is pending review by the FDA or whose denial is being appealed.

The Iowa Department of Revenue plans to begin enforcement of HF 2677 on or about Feb. 3, which the lawsuit asserts could force many retailers to shut down or incur substantial penalties “because they cannot maintain a profitable business with the limited range of vapor products eligible for listing on the registry.”

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The plaintiffs say the state law violates the U.S. Constitution because Congress gave the FDA the exclusive authority to enforce drug safety mandates, and because the law includes exceptions for some products derived from tobacco, but not for similar products containing nicotine from other sources.

Most e-cigarette applications on the market today do not yet have FDA authorization, according to the lawsuit, and fall into limbo of pending approval or being denied. Manufacturers have challenged the denials in court, and use legal maneuvers to delay agency action.

As a result, thousands of e-cigarette products — including flavored products popular among youth — are being sold in Iowa and across the country without proper FDA authorization.

The industry group and retailers argue the FDA has chosen to be selective in its enforcement of vaping products that are sold while the approval applications are pending, with the potential public health impact of removing e-cigarette and vapor products that have helped smokers quit more harmful cigarettes.

The lawsuit seeks an injunction blocking the law prior to enforcement and a declaration that the state law is unconstitutional.

Iowa unemployment rate edged up in November

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Iowa’s seasonally adjusted unemployment rate increased to 3.1 percent in November, and the state’s labor force participation rate rose to 66.3 percent amid an influx of new workers. Meanwhile, the U.S. unemployment rate increased to 4.2 percent last month.

“The bright spot in November’s report was that 1,600 Iowans came back to the labor force in search of a job,” Beth Townsend, executive director of Iowa Workforce Development, said in a statement. “This is a welcome sign for Iowa in terms of our economic stability and growth, as well as for employers who currently are trying to fill over 50,000 open jobs. Now that we are past the election, we hope to see more hiring, more Iowans returning to the workforce, and increased growth overall.”

The number of unemployed Iowans increased to 53,000 in November from 51,000 in October. The total number of working Iowans fell by 400 from October to November to more than 1.6 million. That is 20,900 lower than one year ago.

Iowa employers added 400 jobs in November, raising total nonfarm employment to 1,599,300 jobs; the first gain since June, and was largely the result of hiring within public schools, according to Iowa Workforce Development.

Compared with a year ago, total nonfarm employment added 4,000 jobs, fueled by hiring within private service industries and government. Health care and social assistance added the most jobs, according to Iowa Workforce Development numbers.

Gazette-Lee Des Moines Bureau