ENND Act

To protect the public health by prohibiting non-tobacco e-cigarette flavors and ensuring electronic nicotine delivery systems are tamper-proof. 1. Short title This Act may be cited as the Ending New Nicotine Dependencies Act of 2019 ENND Act 2. Findings Congress finds as follows: (1) As of September 11, 2019, the Centers for Disease Control and Prevention and the Food and Drug Administration reported 380 confirmed and probable cases of severe pulmonary disease cases associated with the widespread use of electronic cigarettes (referred to in this section as e-cigarettes (2) As of September 17, 2019, States have reported as many as 7 deaths nationwide associated with the use of e-cigarettes. (3) The American Medical Association has stated that e-cigarette-related lung illnesses reaffirm[s] our belief that the use of e-cigarettes and vaping is an urgent public health epidemic that must be addressed (4) The Surgeon General has warned that the proliferation of e-cigarettes is cause for great concern become an epidemic among our nation’s young people (5) Since 2014, e-cigarettes have been the most commonly used tobacco product among youth in the United States. (6) According to the Food and Drug Administration, youth consistently report product flavorings as a leading reason for using tobacco products flavors may disguise the taste of tobacco (7) In 2019, more than 1 in every 4 high school students reported using e-cigarettes in the past 30 days. (8) On September 9, 2019, the Food and Drug Administration sent a warning letter to one of the largest e-cigarette companies for violating Federal regulations and utilizing illegal marketing tactics. (9) E-cigarettes are not currently approved by the Food and Drug Administration as a smoking cessation aid. (10) More research is needed to evaluate the safety of e-cigarettes, including the risks associated with tampering with and altering e-cigarettes and the health implications of heating aerosolized tobacco products. 3. Restrictions on flavors in tobacco products and on device design (a) In general Section 907(a) of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 387g(a) (1) in paragraph (1), by adding at the end the following: (C) Special rule for electronic nicotine delivery systems Beginning 90 days after the date of enactment of the ENND Act ; and (2) by adding at the end the following: (7) Electronic nicotine delivery system standards Not later than 1 year after the date of enactment of the ENND Act (A) prohibit refillable components or parts; (B) prohibit any electronic nicotine delivery system designed to look like combustible cigarettes or commonplace, nonmedical devices, such as pens or USB flash drives; and (C) require each electronic nicotine delivery system and its components and parts to be tamper-proof. . (b) Definitions (1) In general Section 900 of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 387 (A) by redesignating paragraphs (8) through (22) as paragraphs (10) through (24); and (B) by inserting after paragraph (7) the following: (8) Electronic nicotine delivery system (A) In general The term electronic nicotine delivery system (i) means noncombustible tobacco products, including vapes, vaporizers, vape pens, hookah pens, electronic cigarettes (also known as e-cigarettes e-cigs (ii) includes components and parts, such as e-liquids, tanks, cartridges, pods, wicks, and atomizers. (B) Components and parts The term components and parts (9) E-liquid The term e-liquid . (2) Conforming amendment Section 9(1) of the Comprehensive Smokeless Tobacco Health Education Act of 1986 ( 15 U.S.C. 4408(1) section 900(18) section 900(20) 4. Monitoring of public health risks of tobacco use Not later than 1 year after the date of enactment of this Act and annually thereafter, the Secretary of Health and Human Services, in consultation with the Director of the National Institutes of Health, the Commissioner of Food and Drugs, the Director of the Centers for Disease Control and Prevention, and other heads of appropriate agencies, as the Secretary of Health and Human Services determines appropriate, shall submit to the Committee on Health, Education, Labor, and Pensions and the Committee on Appropriations of the Senate and the Committee on Energy and Commerce and the Committee on Appropriations of the House of Representatives, and publicly post on an internet website, a report on the public health risks of tobacco use that includes— (1) the public health implications of the use of tobacco products, with a focus on electronic nicotine delivery systems and other alternative tobacco products; (2) emerging trends in tobacco use, including the use of tobacco flavors and new tobacco products; (3) updates on the public health awareness campaign authorized by section 6; and (4) recommendations for Congress. 5. Application of tobacco excise tax to electronic nicotine delivery systems (a) Imposition, rate, and attachment of tax Section 5701 (1) by redesignating subsection (h) as subsection (i); and (2) by inserting after subsection (g) the following new subsection: (h) Electronic nicotine delivery (1) Electronic nicotine delivery systems (A) In general On electronic nicotine delivery systems (as defined in section 900(8) of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 387(8) (B) Exception This paragraph shall not apply to any single-use electronic nicotine delivery system. (2) E-liquid On e-liquids (as defined in section 900(9) of such Act) or single-use electronic nicotine delivery systems, manufactured in or imported into the United States, there shall be imposed a tax equal to— (A) in the case of a product which contains less than 5 percent nicotine by volume, $1.01, and (B) in the case of the product which contains a percentage of nicotine by volume which is equal to or greater than 5 percent, an amount equal to the sum of— (i) $1.01, plus, (ii) for each percentage point of nicotine by volume contained in such product which is in excess of 5 percent, 20.2 cents (and a proportionate amount at the like rate on any such percentage which is not a whole number). . (b) Definitions Section 5702 (1) in subsection (c), by striking and roll-your-own tobacco roll-your-own tobacco, electronic nicotine delivery systems, and e-liquids (2) in subsection (d), by striking or roll-your-own tobacco roll-your-own tobacco, electronic nicotine delivery systems, and e-liquids (c) Effective date The amendments made by this section shall apply to articles removed after the date which is 90 days after the date of enactment of this Act. 6. Public awareness campaign (a) In general The Secretary of Health and Human Services (referred to in this section as the Secretary 21 U.S.C. 387 (b) Funding To carry out subsection (a), for each of fiscal years 2021 through 2024, there shall be transferred to the Secretary, from the General Fund of the Treasury, the lesser of— (1) the amount equal to the amount collected under 5701(h) of the Internal Revenue Code of 1986 during the previous fiscal year; or (2) $115,000,000. 7. Implementation of excise tax (a) Transitional rule Any person who— (1) on the date of the enactment of this Act, is engaged in business as a manufacturer of electronic nicotine delivery systems or e-liquids; and (2) before the applicable date, submits an application under subchapter B of chapter 52 may, notwithstanding such subchapter B, continue to engage in such business pending final action on such application. Pending such final action, all provisions of chapter 52 of such Code shall apply to such applicant in the same manner and to the same extent as if such applicant were a holder of a permit to manufacture electronic nicotine delivery systems or e-liquids under such chapter 52. (b) Floor Stocks Taxes (1) Imposition of tax On electronic nicotine delivery systems or e-liquids manufactured in or imported into the United States which are removed before the applicable date and held on such date for sale by any person, there is hereby imposed a tax in an amount equal to the tax which would be imposed under section 5701 (2) Liability for tax and method of payment (A) Liability for tax A person holding electronic nicotine delivery systems or e-liquids on the applicable date to which any tax imposed by paragraph (1) applies shall be liable for such tax. (B) Method of payment The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe by regulations. (C) Time for payment The tax imposed by paragraph (1) shall be paid on or before the date that is 120 days after the applicable date. (3) Articles in foreign trade zones Notwithstanding the Act of June 18, 1934 (commonly known as the Foreign Trade Zone Act, 48 Stat. 998, 19 U.S.C. 81a (A) internal revenue taxes have been determined, or customs duties liquidated, with respect to such article before such date pursuant to a request made under the 1st proviso of section 3(a) of such Act; or (B) such article is held on such date under the supervision of an officer of the United States Customs and Border Protection of the Department of Homeland Security pursuant to the 2d proviso of such section 3(a). (4) Controlled groups Rules similar to the rules of section 5061(e)(3) (5) Other laws applicable All provisions of law, including penalties, applicable with respect to the taxes imposed by section 5701 (c) Definitions For purposes of this section— (1) In general Any term used in this section which is also used in section 5701 or 5702 of the Internal Revenue Code of 1986 shall have the same meaning as such term has in such section. (2) Applicable date The term applicable date (3) Secretary The term Secretary

Summary: Ending New Nicotine Dependencies Act of 2019 or the ENND Act This bill revises requirements for electronic nicotine delivery systems (e.g., e-cigarettes, e-hookah, and vape pens). Specifically, the bill prohibits electronic nicotine delivery systems from containing flavors other than tobacco; sets forth standards on the permissible design of these systems; requires the Department of Health and Human Services (HHS) to report on the public health risks of tobacco use, including a focus on these systems and other alternative tobacco products; subjects these systems to excise tax requirements; and directs HHS to conduct a public awareness campaign to educate the public about the health implications of using these systems.