A State law on vaping in Indiana – dubbed the worst of “crony capitalism and protectionism” by American Vaping Association head Greg Conley, has been partially struck down by a Federal appeals court.
The law, which effectively banned out-of-state eliquid manufacturers from selling in Indiana by imposing detailed security and production process measures on all product sold in the State, was the subject of a scathing review by Judge David Hamilton of the United States Court of Appeals for the 7th Circuit:
“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.”
“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 legislation has been shrowded in controversy since its conception, with the FBI investigating allegations of foul play during the process of approving the bill and State Senator Brent Steele – who voted in favor of the bill – taking a job as a lobbyist for the companies that received permits under the scheme.
The bill’s requirements for child-proof packaging, ingredient labeling, and purity were upheld by the Court.