Source: http://openjurist.org/220/f3d/1318/enterprises-ltd-v-united-states
Timestamp: 2013-12-06 13:27:04
Document Index: 83175675

Matched Legal Cases: ['§ 101', '§ 290', '§ 300', '§ 300', '§ 300', '§ 300', '§ 96']

220 F3d 1318 Enterprises Ltd v. United States | OpenJurist
220 F. 3d 1318 - Enterprises Ltd v. United States	Home220 f3d 1318 enterprises ltd v. united states
220 F3d 1318 Enterprises Ltd v. United States 220 F.3d 1318 (Fed. Cir. 2000)
B & G ENTERPRISES, LTD., Plaintiff-Appellant,v.UNITED STATES, Defendant-Appellee.
DECIDED: July 20, 2000Rehearing Denied; Suggestion for Rehearing In Banc Declined: August 22, 2000
Douglas B. McFadden, McFadden & Shoreman, P.C., of Washington, DC, argued for plaintiff-appellant. With him on the brief was John M. Shoreman.
Mark A. Melnick, Assistant Director, Commercial Litigation Branch, Civil Division, Department of Justice, of Washington, DC, argued for defendant-appellee. With him on the brief were David W. Ogden, Acting Assistant Attorney General; and David M. Cohen, Director. Of counsel was Katherine M. Kelly, Attorney. Of counsel on the brief was Karen Wagner, Attorney, Department of Health & Human Services, of Rockville, Maryland. Of counsel was Patricia Kaeding, Attorney, Department of Health & Human Services.
B & G Enterprises, Ltd. appeals from the decision of the United States Court of Federal Claims granting summary judgment against B & G's takings claim. See B & G Enters., Ltd. v. United States, 43 Fed. Cl. 523 (1999). We affirm.
In 1992, Congress amended the Public Health Service Act and established the Substance Abuse and Mental Health Services Administration ("SAMHSA") as an agency of the Department of Health and Human Services ("HHS") and the Center for Substance Abuse Treatment as an agency of SAMHSA. See ADAMHA Reorganization Act, Pub. L. No. 102-321, § 101(a), 106 Stat. 323, 325 (1992) (codified at 42 U.S.C. § 290aa (1994)). This legislation also gave the HHS Secretary, acting through the Center for Substance Abuse Treatment, authority to provide block grants to states for the purpose of substance abuse prevention and treatment. See 42 U.S.C. § 300x-21(b) (1994). The legislation placed various conditions on a state's entitlement to a block grant, see id. §§ 300x-22 to 300x-32, including the requirement that the state "ha[ve] in effect a law providing that it is unlawful for any manufacturer, retailer, or distributor of tobacco products to sell or distribute any such product to any individual under the age of 18," id. § 300x-26(a)(1). If a state receiving a block grant did not enact a law prohibiting tobacco sales and distribution to persons under the age of 18, HHS was instructed to reduce that state's grant. See id. § 300x-26(c).
In 1993, HHS issued a Notice of Proposed Rulemaking (NPRM) seeking comments on proposed regulations to implement section 300x-26. See 58 Fed. Reg. 45156 (1993). HHS proposed to implement this statutory provision by
requiring States to have in place a law which prohibits the sale or distribution of any tobacco product to persons under the age of 18 through any sales or distribution outlet. This would include such sales or distribution from any location which sells at retail or otherwise distributes tobacco products to consumers including (but not limited to) locations that sell such products over-the-counter or through vending machines. . . . Beyond this, the Secretary does not propose specifying the provisions of the States' laws. However, appended to this NPRM is a copy of a model law the States may wish to consider.
Id. (emphasis added). The proposed regulation, 45 C.F.R. § 96.130, provided that to qualify for a block grant a state must have in effect "a law providing that it is unlawful for any manufacturer, retailer, or distributor of tobacco products to sell or distribute any such product to any individual under the age of 18 through any sales or distribution outlet, including over-the-counter and vending machine sales" and that the state take action to ensure compliance with this rule. See id. at 45173. Thus, the proposed regulation merely echoed the language of the statute itself and clarified that it also applied to vending machine retailers. Appended to the NPRM was a "Model Sale of Tobacco Products to Minors Control Act." See id. at 45165 (Appendix A). The model act banned all vending machine sales of tobacco. See id. Also appended to the NPRM was a report by the Office of Inspector General that discussed some of the ways in which states and localities already limited youth access to tobacco. See id. at 45171-72. The report stated in relevant part as follows:
Restricting tobacco vending machines is the most commonly observed way States and localities limit youth access to tobacco. In addition to their State laws prohibiting the sale of tobacco to minors, 21 States and Washington DC have passed laws that restrict vending machines in some manner.
Id. at 45171. The proposed regulation did not make tobacco vending machine restrictions a condition of the receipt of the federal block grant, but the NPRM did suggest that states ban tobacco vending machines or restrict their placement in order to limit youth access to tobacco. Proposed regulation section 96.130 was finalized in 1996. See 61 Fed. Reg. 1492 (1996).
At the time that section 300x-26 was enacted