By: Amy Lane, Jan. 30, 2017
Indiana is enjoying a much-anticipated victory which was handed down today by the Seventh Circuit Appeals Court. The court ruled that certain provisions of the Indiana law involving securities, clean rooms, and audits are unconstitutional. These provisions, which are now stricken, violated the Commerce Clause on extraterritorial basis concerning interstate commerce business practices.
Today’s ruling gives hope to the consumers and businesses of Indiana who have lived in the shadow of despair for the past year. Indiana has been subjected to 400% increases in wholesale cost of goods, consumer flavor choices restricted substantially, and business losses reported at an average of $11,500 per month. The losses to Indiana are real, not fictitious and not made up by skewed ANTZ analytics. Real business has folded, real consumers have suffered from the 45% price increase of vaping products, and real legislators have struggled with their consciences knowing they have put the state into peril. Remember, this is the e-liquid manufacturing law that screamed monopoly and was eventually investigated by the FBI for corruption due to Mulhupt’s security company – the ONLY company in the nation that could adhere to the Indiana statute.
The Indiana state vaping trade organization is applauding the Court’s effort in their recent statement saying, “Indiana Smoke-Free Alliance is very grateful for the decision made by the Seventh Circuit Court of Appeals today. We look forward to working with legislators on SB1 in order to adhere to the common-sense framework laid out by the courts.” Speaker of the House, Brian Bosma, has been quoted in the IBJ stating, “We’ll probably look for Senate Bill 1 to be the vehicle on the vaping issue.”
With the dawn of a new age in Indiana, 2017 is truly shaping up to be a better year. SB1 is currently being heard in the Senate Judiciary Committee, legislators are determined to fix the current monopolistic law, and now this powerful Federal Court of Appeals decision eviscerates the current law and its strictest provisions. This should serve as fair warning to the 49 other statehouses in the nation – writing laws to capitalize on the vaping industry will NOT be acceptable and could potentially be proven unconstitutional!