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October16,2019

DearMembersoftheHouseEnergyandCommerceCommittee,WewritetodayinoppositiontoHouseResolution2339,legislationthatwouldbanmentholcigarettesandalmostallcurrentlyavailablee-cigarettesonthemarket.SponsoredbyChairmanFrankPallone,Jr.(D-N.J.)andRep.DonnaE.Shalala(D-Fla.),thislegislationwouldcreateamassivenewblackmarketforthesaleofnicotineproducts,killmorethan300,000jobs,andexacerbatetherecentissueofdeathsandillnessescausedbyillegalTHCandmarijuanasales.Bybanningallmentholcigarettes,thislegislationgoesfarbeyondthelimitationsimposeduponthetobaccoindustryinthe2009-passedFamilySmokingPreventionandTobaccoControlAct.Amentholbanwouldcreateamassivenewblackmarketandfundcriminalenterprisesglobally.Between8.5%and20%ofallcigarettessoldintheU.S.aredonesoillegally,producinganestimated5to10billiondollarsannuallyforundergroundcriminalenterprises.ThisrevenuehasbeenusedtofundorganizedcrimeandterrororganizationsincludingHamasandHezbollah.Blackmarkettransactionsandtheillicittradeofcigarettesavoidstateandfederalagetopurchaserestrictionsandagrowingblackmarketcouldactuallymakeiteasierforminorstoacquirecigarettes,whichcouldincreaseyouthsmokingratesratherthanreducethem.Additionally,theseunregulatedcigarettesalesarenotsubjecttothequalityandcontentcontrolsusedbylicensedmanufacturers,facilitatingthepotentialuseofhigherlevelsofnicotine,tar,andotherdangerousadditives.Amentholcigarettebanwoulddisproportionatelytargetminoritygroupswithoutascientificbasisfordoingso.Althoughmentholcigarettesrepresentroughly35%oftheU.S.marketaccordingtotheFDA,peoplewhosmokeinminoritycommunitiesusementholcigarettesatmuchhigherrates.AmongAfricanAmericanswhosmoke,85.8%usementholcigarettes.ThetrendholdsforotherminoritycommunitiesincludingHispanics(46%),Asians(39%),andmembersoftheLGBTcommunity(36.3%).Thiscomparestoausagerateofonly28.7%bywhitesmokers.Banningmentholcigaretteswouldcriminalizethesaleofaproductdisproportionatelyusedbyminoritygroupsoverasingle,non-dangerousingredientthattheFDAacknowledges“isnotassociatedwithanincreaseindiseaserisktotheuser”whencomparedtotraditionaltobaccocigarettes.SuchamovewoulderodetheconfidenceofminoritypopulationsinCongress,thecriminaljusticesystem,andlawenforcement.AdvocateslikeRev.AlSharptonandDr.BenjaminFChavisJr.alongwiththeNationalOrganizationofBlackLawEnforcementAgentsallopposeamentholbanandsharetheseconcerns.Despitetheirsmallermarketshare,mentholcigarettesstillhaveamajorimpactontheeconomy.AnanalysisbyDunhamandAssociatesfoundthatmentholcigarettescontribute79,135directjobs,66,465supplierjobs,and74,026indirectjobs,foratotalof219,636totaljobsintheeconomy.Thisrangesacrossthepublic,private,andnonprofitsectors,includingbothurbanandruralcommunities,anditincludesbothhighandlowskilllabor.Theseemployedindividualsandtheconsumersoftheseproductsaren’ttheonlyonesbeinghurt.Mentholcigarettescreateatotaleconomicoutputof$53billion.Thesefundspaywages,keepsmallbusinessafloat,andstimulategrowthacrossthecountryandtheywillbelostwithprohibition.Amentholbanwouldcontradictanddisruptfreemarketsolutionsthatarealreadyeffectivelyreducingoverallsmokingrates.Smokingratesaredecliningamongbothteensandadults,withonly

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2.7%ofadolescentsreportingsmokingcigarettesin2018,downfrom3.2%in2017accordingtotheNationalSurveyonDrugUseandHealth.The2018MonitoringtheFuturesurveyindicatedasimilardeclineintheuseofcigarettes,downfrom5.4%in2017to4.6%among8th,10th,and12thgraders(manyofwhomcanlegallysmoke).Amongadults,smokingratesareatarecordlow14%,a67%declinesince1965,whentheNationalHealthInterviewSurveyfirstbegantrackingthefigureand42.4%ofadultssmoked.Agreatervarietyoftobacco-alternativeslikeelectroniccigarettes,whichhavethepotentialtobesignificantlylessharmful,haveplayedalargeroleinthesemorerecentdeclines.Abanonmentholcigaretteswillforcetobaccocompaniestoshiftresourcesawayfrominvestmentsinnot-yethighlyprofitablenewgenerationreducedriskproductsandfocustowardmakingadjustmentstocomplywithprohibitionratherthantowardinnovationandthepromotionofalternatives.H.R.2339alsotakesaimatelectroniccigarettesandnicotinevaporproductsbybanningallflavoredproductsonthemarket.Over10,000smallmom-and-popvapeshopscompriseanoverwhelmingpercentageoftheindustrythatselltheseproductsandtheyrepresentthefastest-growingretailsegmentofthepasttenyears,arecentLaborDepartmentanalysisshows.AWellsFargoanalysisestimatesthatthecommerciale-cigaretteandvaporproductindustryisexpectedtobea$10billionindustrybynextyear,agrowthtrajectorythathassignificantlyreducedcombustiblecigarettesalesacrossthecountry.PriortotheriseofJUULin2018,morethan80%ofadultvapersusedfruit,dessert,andsweetflavorstostayawayfromcigarettes.Tobaccoandmenthole-cigaretteflavorsrankedasthefifthandsixthmostpopularflavorbeforeonecompanydominatedthetraditionalconveniencestoremarket.Eliminatingallbutoneortwooftheseoptionsforadultswoulddestroythousandsofsmallbusinesses,forcemanyadultvaperstoreturntosmoking,andforcesometoseekoutevenmoreproductsontheblackmarket,thesourceofrecentdeathsandillnessesnationally.InmanyDemocrat-runstateslikeCalifornia,Oregon,andWashingtonyoucanpurchaseflavoredmarijuanaedibleswithnameslike“MangoMauiWowieFruit”and“OrangeCreamsicleCreampop”andyetmanyofthestaunchdefendersofliberalizedmarijuanapoliciesinthesestatesopposeallowingadultsmokerstheabilitytouseflavorednicotinee-cigarettestoquitsmoking.Theirhypocriticalsupportforconsumerfreedomintheirownstateswhilepushingprohibitionelsewhereisbaffling.BoththeFDAandCentersforDiseaseControlandPreventionnowacknowledgethattherecentdeathsandrespiratoryandlungillnessesassociatedwithvapinghavelargelybeencausedbytheillicitmarijuanaandTHCmarket.Insteadoftargetinglegalnicotineproducts,Congressshouldfocusitsattentiononcrackingdownondrugdealersthatarepoisoningconsumerswithdangerous,unregulated,andcounterfeitproductsproducedinbasementsandbackalleys.Ifimplemented,H.R.2339wouldcreatethelargestandmostdangerousblackmarketinAmericasincethe1920’sandexacerbatetherecentillnessesanddeathsthathaveresultedfromanundergroundTHCandmarijuanamarketnationally.Weurgeyoutorejectthislegislationandprotecttherightsofadultconsumersandbusinessesinstead.Sincerely,AmericansforTaxReformCompetitiveEnterpriseInstituteConsumerChoiceCenterCouncilforCitizensAgainstGovernmentWasteFreedomWorksHeritageActionIndependentWomen’sForumTaxpayersProtectionAllianceReasonFoundation