We all agree with the goal of addressing underage vaping. But some Maryland lawmakers are going too far and seizing on high youth e-vapor rates to introduce emergency bills (H.B. 3/S.B. 233) that criminalize the sale of all flavored tobacco products to anyone, including adults over 21.
That means criminalizing the sale of menthol cigarettes, flavored dip and flavored cigars — an even larger market than illegal cannabis. That makes no sense, especially since underage use of these products is at historic lows. Instead, it will just mean more crime, because of cross-border illicit smuggling, and more problems for communities and harm to Maryland small businesses.
Speaking from the perspective of a 45-year law enforcement official and an employee of a small business that employees over 3,000 in the state of Maryland, we both strongly caution lawmakers. This bill will not end the sale of these products. Instead, it will shift the market from legal, taxed and regulated businesses to illegal, unregulated smuggling networks.
There is clear agreement on youth tobacco use. Small businesses and law enforcement are both engaged in efforts to curb underage use of all tobacco products. That is because small businesses and their employees understand the need to prevent sales to anyone who is underage and to only sell to adults 21 and older, now that both Maryland and Congress have raised the minimum age for all tobacco products. In addition, the Food and Drug Administration has removed pod-based flavored products from the market and is requiring all vapor manufacturers to prove that their products should be allowed on the market — with an application deadline in May.
We believe these steps will completely change the current landscape, making it much more difficult for teens to get access to any tobacco products.
The Maryland legislation threatens this progress. By banning these adult products, criminal smugglers will step in and traffic them into the state and into communities, straining law enforcement resources.
From a business perspective, menthol cigarettes represent 46% of our tobacco revenue. With that income going to unlicensed and illegal operators, we will have to dramatically cut back on the growth of our business — we open about 22 stores a year — or even close existing stores to account for the lost revenue.
That business will be replaced, but what replaces it will devastate communities. Maryland, on the I-95 corridor, is situated at the epicenter of cigarette smuggling activity in the United States. Millions of cigarette cartons and other tobacco products are smuggled annually from low tax southern states such as Virginia, through Maryland, to higher tax northern states.
Smugglers bring a lot more than cigarettes with them. Smuggling is tied to other very serious crimes, and many cases have made the link between cigarette smugglers and racketeering, extortion, attempted murder, narcotics, gun smuggling and identity theft. And there are links between cigarette smuggling and terrorism. This is not hyperbole, and all readers should do a quick online search to see the many hair-raising news stories for themselves.
And taxpayers should be concerned because every contraband sale means a loss to Maryland’s treasury. Every pack of cigarettes sold in Maryland pays a combined state excise tax and sales tax of about $2.37. The revenues lost could be as much as $185 million.
No sensible policy should increase criminal activity, increase demands on law enforcement personnel and create a loss in tax revenues. Smugglers bring in illicit products without regard to tax, licensing or age verification laws. Increased policing will not pay for itself.
Proponents will make this about whether flavored products are good or bad. The real issue is whether these products should be distributed legally or illegally.
We strongly support reducing the level of youth usage of e-vapor products. But regulating these products by criminalizing them has enormous implications for communities, for law enforcement and for the state that requires a more thoughtful approach with law enforcement and small businesses at the table.
Shelby Kemp (SKemp@royalfarms.com) is a project manager for Baltimore-based Royal Farms, and Charles Giblin (saicsnj@gmail.com)is the retired special agent in charge of the New Jersey Treasury.