throbber
FOR PUBLICATION
`
`UNITED STATES COURT OF APPEALS
`FOR THE NINTH CIRCUIT
`
`
`R.J. REYNOLDS TOBACCO COMPANY;
`AMERICAN SNUFF COMPANY; SANTA
`FE NATURAL TOBACCO COMPANY,
`INC.,
`
`Plaintiffs-Appellants,
`
` No. 20-55930
`
`D.C. No.
`2:20-cv-04880-
`DSF-KS
`
`
`OPINION
`
`
`
`v.
`
`
`COUNTY OF LOS ANGELES; COUNTY
`OF LOS ANGELES BOARD OF
`SUPERVISORS; HILDA L. SOLIS;
`MARK RIDLEY-THOMAS; SHEILA
`KUEHL; JANICE HAHN; KATHRYN
`BARGER, each in his or her official
`capacity as a member of the Board
`of Supervisors,
`Defendants-Appellees.
`
`Appeal from the United States District Court
`for the Central District of California
`Dale S. Fischer, District Judge, Presiding
`
`Argued and Submitted October 19, 2021
`Pasadena, California
`
`Filed March 18, 2022
`
`
`

`

`2 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
`
`Before: Ryan D. Nelson and Lawrence VanDyke, Circuit
`Judges, and Karen E. Schreier,* District Judge.
`
`Opinion by Judge VanDyke;
`Dissent by Judge Nelson
`
`
`SUMMARY**
`
`
`
`
`Preemption / Tobacco Control Act
`
`
`The panel affirmed the district court’s dismissal of an
`
`action brought by tobacco companies, alleging that the
`Family Smoking Prevention and Tobacco Control Act
`(“TCA”) preempts the County of Los Angeles’s ban on the
`sale of all flavored tobacco products.
`
`The panel held that the TCA authorizes the Food and
`
`Drug Administration to regulate tobacco products and
`expressly preempts some contrary state or local regulations,
`while also expressly preserving and saving from preemption
`other state and local regulatory authority over tobacco. The
`panel held that the TCA’s text, framework, and historical
`context reveal that it carefully balances federal and local
`power by carving out the federal government’s sole authority
`to establish the standards for tobacco products, while
`preserving state, local, and tribal authority to regulate or ban
`altogether sales of some or all tobacco products.
`
`
`* The Honorable Karen E. Schreier, United States District Judge for
`the District of South Dakota, sitting by designation.
`
`** This summary constitutes no part of the opinion of the court. It
`has been prepared by court staff for the convenience of the reader.
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 3
`
`The panel wrote that the TCA’s “unique tripartite
`
`preemption structure” governed its analysis. The TCA
`includes a “preservation clause,” which preserves state,
`local, and tribal power to enact any regulation concerning
`tobacco products that is “in addition to or more stringent”
`than those promulgated by the TCA. The TCA’s preemption
`clause reads as follows: “No . . . political subdivision of a
`State may establish or continue in effect with respect to a
`tobacco product any requirement which is different from, or
`in addition to, any requirement under the provisions of [the
`TCA] relating to tobacco product standards, premarket
`review, adulteration, misbranding, labeling, registration,
`good manufacturing standards, or modified risk tobacco
`products.” An immediately following savings clause
`instructs that the preemption clause “does not apply to
`requirements relating to the sale, distribution, possession,
`information reporting to the State, exposure to, access to, the
`advertising and promotion of, or use of, tobacco products by
`individuals of any age, or relating to fire safety standards for
`tobacco products."
`
`The panel held that, properly understood, the TCA’s
`
`preemption clause does not preclude non-federal sales
`regulations such as the County’s sales ban. But even if it
`did, the County’s sales ban would nonetheless be exempted
`from preemption because it falls within that clause’s text as
`an allowed local requirement relating to the sale of tobacco
`products. Either way, the TCA does not expressly preempt
`the County’s sales ban. The panel also held that, because the
`TCA explicitly preserves local authority to enact more
`stringent regulations than the TCA, the County’s sales ban
`does not pose an impermissible obstacle to the TCA’s
`purposes or objectives
`regarding
`flavored
`tobacco.
`Accordingly, the County’s sales ban is neither expressly nor
`impliedly preempted.
`
`

`

`4 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
` Dissenting, Judge R. Nelson wrote that because Los
`Angeles’s ban falls within the TCA’s preemption clause and
`is neither preserved nor saved, he would hold that it is
`expressly preempted. Judge R. Nelson wrote that the ban
`fell within the preemption clause because it was a
`requirement different from or in addition to any TCA
`requirement relating to tobacco product standards, which can
`relate both to manufacturing and to sales. Judge R. Nelson
`wrote that, by its terms, the preservation clause does not
`apply to the preemption clause, but rather clarifies that no
`other provision of the statute has any preemptive effect and
`that the authorities of federal agencies and Indian tribes are
`not preempted by the TCA. Finally, Judge R. Nelson would
`hold that the savings clause only saves for states the
`authority to enact age requirements.
`
`
`
`COUNSEL
`
`
`Noel J. Francisco (argued), Christian G. Vergonis, Ryan J.
`Watson, and Andrew J. M. Bentz, Jones Day, Washington,
`D.C.; Jason C. Wright, Jones Day, Los Angeles, California;
`for Plaintiffs-Appellants.
`
`Kent R. Raygor (argued) and Valerie E. Adler, Sheppard
`Mullin Richter & Hampton LLP, Los Angeles, California,
`for Defendants-Appellees.
`
`Cory L. Andrews and John M. Masslon II, Washington
`Legal Foundation, Washington, D.C., for Amicus Curiae
`Washington Legal Foundation.
`
`Rob Bonta, Attorney General; Renu R. George, Senior
`Assistant Attorney General, Nicholas M. Wellington and
`James V. Hart, Supervising Deputy Attorneys General; Peter
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 5
`
`F. Nascenzi, Deputy Attorney General; Office of the
`Attorney General, Sacramento, California; for Amicus
`Curiae State of California.
`
`Jordan Raphael, Byron Raphael LLP, Los Angeles,
`California; Dennis A. Henigan, Campaign for Tobacco-Free
`Kids, Washington, D.C.; for Amici Curiae Public Health and
`Medical Organizations.
`
`Rachel Bloomekatz, Columbus, Ohio, for Amici Curiae
`Public Health Law Center, Action on Smoking and Health,
`California State Association of Counties, ChangeLab
`Solutions,
`International City/County Management
`Association, International Municipal Lawyers Association,
`Legal Resource Center for Public Health Policy, National
`Association of Counties, National League of Cities, Public
`Health Advocacy Institute, and U.S. Conference of Mayors.
`
`
`
`
`
`
`

`

`6 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
`
`OPINION
`
`VANDYKE, Circuit Judge:
`
`I. INTRODUCTION
`
`Until just over a decade ago, tobacco products were
`regulated almost exclusively by the states and local
`governments, with
`little federal
`involvement.
` Then
`beginning in the late 1990’s, the U.S. Food and Drug
`Administration first sought to exert federal regulatory
`authority over such products. This initial attempt was
`swiftly rebuffed by the Supreme Court, which concluded the
`FDA lacked that authority under then-existing statutes. See
`FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120,
`126 (2000). In response, Congress passed the Family
`Smoking Prevention and Tobacco Control Act (“TCA”),
`Pub. L. No. 111–31, 123 Stat. 1776 (2009), codified at
`21 U.S.C. § 387 et seq., which authorized the FDA to
`regulate tobacco products and expressly preempted some
`contrary state or local regulations, while also expressly
`preserving and saving from preemption other state and local
`regulatory authority over tobacco.
`
`The boundary between the TCA’s preemption clause and
`its preservation and savings clauses is the subject of the
`dispute in this case. The County of Los Angeles claims that
`the TCA’s preservation and savings clauses permit its
`decision to ban the sale of all flavored tobacco products.
`Predictably, multiple tobacco companies have challenged
`the County’s ban, arguing that the TCA’s preemption clause
`both expressly and impliedly preempts the ban.
`
`The TCA’s unique tripartite preemption structure
`governs our analysis of these issues. Its text, framework, and
`historical context reveal that it carefully balances federal and
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 7
`
`local power by carving out the federal government’s sole
`authority to establish the standards for tobacco products,
`while preserving state, local, and tribal authority to regulate
`or ban altogether sales of some or all tobacco products.
`Properly understood, the TCA’s preemption clause does not
`preclude non-federal sales regulations such as the County’s
`sales ban challenged in this case. But even if it did, the
`County’s sales ban would nonetheless be exempted from
`preemption by the TCA’s savings clause because it easily
`falls within
`that clause’s
`text as an allowed
`local
`“requirement[] relating to the sale
`. . . of[] tobacco
`products.” 21 U.S.C. § 387p(a)(2)(B). Either way, the TCA
`does not expressly preempt the County’s sales ban. And
`given that the TCA explicitly preserves local authority to
`enact “more stringent” regulations than the TCA, the
`County’s sales ban does not pose an impermissible obstacle
`to the TCA’s purposes or objectives regarding flavored
`tobacco. It is therefore neither expressly nor impliedly
`preempted, and we affirm the district court.
`
`II. BACKGROUND
`
`1. States and Localities Historically Possessed Broad
`Power to Regulate and Ban Tobacco Products.
`
`The TCA’s tripartite preemption provision can be
`properly understood only against the historical backdrop of
`states and localities’ longstanding role as the primary
`regulators of tobacco products. See Stewart v. Dutra Const.
`Co., 543 U.S. 481, 487 (2005) (interpreting a federal statute
`by looking to the “backdrop against which Congress” acted).
`Over a century ago, the Supreme Court first recognized that
`states, because of public health concerns, could prohibit the
`sale of cigarettes. See Austin v. State of Tennessee, 179 U.S.
`343, 348–49 (1900) (“[W]e think it within the province of
`the legislature to say how far [cigarettes] may be sold, or to
`
`

`

`8 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
`prohibit their sale entirely . . . provided no discrimination be
`used . . . and there be no reason to doubt that the act in
`question is designed for the protection of the public
`health.”). In the intervening century, and in response to
`growing awareness of the harmful effects of cigarettes,
`Congress enacted various statutory provisions focusing on
`consumer education through advertising and labeling
`requirements. See, e.g., Federal Cigarette Labeling and
`Advertising Act (“FCLAA”), Pub. L. No. 89–92, 79 Stat.
`282 (1965) (codified as amended at 15 U.S.C. §§ 1331–
`1341), see also Graham v. R.J. Reynolds Tobacco Co.,
`857 F.3d 1169, 1186–87 (11th Cir. 2017) (en banc)
`(surveying the development of federal tobacco laws).1 But
`these federal statutes never preempted state and localities’
`traditional power to restrict or ban sales of tobacco products.
`See id.
`
`During this period, states also played key roles in
`indirectly regulating tobacco products through litigation. In
`the 1990s, after numerous heads of major tobacco companies
`denied under oath the addictiveness of nicotine, several
`
`1 See also Public Health Cigarette Smoking Act of 1969, Pub. L. No.
`91–222, 84 Stat. 87; Alcohol and Drug Abuse Amendments of 1983,
`Pub. L. No. 98–24, 97 Stat. 175; Comprehensive Smoking Education Act
`of 1984, Pub. L. No. 98–474, 98 Stat. 2200 (1984); Comprehensive
`Smokeless Tobacco Health Education Act of 1986, Pub. L. No. 99–252,
`100 Stat. 30. While “the ADAMHA Reorganization Act, Pub. L. No.
`102-321, 106 Stat. 323 (1992), condition[ed] certain block grants on
`states making it 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,” Graham, 857 F.3d at 1187 (citation and internal
`quotation marks omitted), the strings attached to federal grants did not
`preempt state or local authority from regulating the sale or ban of these
`products; quite the opposite, they strongly incentivized states to exercise
`their traditional authority over tobacco-related sales. See 42 U.S.C.
`§ 300x-26.
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 9
`
`states sued their companies. See Regulation of Tobacco
`Products (Part 1): Hearings Before the Subcomm. on Health
`& the Env’t, 103d Cong. 628 (1994); Barry Meier,
`Remaining States Approve the Pact on Tobacco Suits, N.Y.
`TIMES, Nov. 21, 1998, at A1. The lawsuits resulted in a
`“landmark agreement” between the tobacco companies and
`the states, where the companies agreed to monetary
`payments and permanent injunctive relief. See Lorillard
`Tobacco v. Reilly, 533 U.S. 525, 533 (2001).
`
`Meanwhile, states continued to enact laws regulating the
`sale and use of cigarettes and tobacco products, including
`imposing numerous restrictions on tobacco sales.2 These
`restrictions included, for example, prohibitions on sales of
`tobacco products in vending machines and near schools. See
`Paul A. Diller, Why Do Cities Innovate in Public Health?
`Implications of Scale and Structure, 91 Wash. U. L. Rev
`1219, 1231–35 (2014) (discussing state and local bans of
`flavored cigarettes passed before the TCA). Some localities
`even banned sales of cigarettes and vape products entirely
`from retail stores. See, e.g., Manhattan Beach, Cal.,
`Ordinance 20-0007. Because the FDA lacked authority to
`regulate tobacco products until Congress enacted the TCA
`
`
`2 See, e.g., Stop Tobacco Access to Kids Enforcement (“STAKE”)
`Act, 1994 Cal. Stat. 1009 (codified at Cal. Bus. & Prof. Code §§ 22950–
`64) (including mandates such as “no cigarette or tobacco product shall
`be sold, offered for sale, or distributed from a vending machine or
`appliance, or any other coin or token operated mechanical device
`designed or used for vending purposes, id. § 22960(a)); see also
`Cigarette and Tobacco Products Licensing Act of 2003 (codified at Cal.
`Bus. & Prof. Code §§ 22970–22995) (requiring licensing throughout the
`distribution chain from manufacturer to retailer); Cal. Rev. & Tax. Code
`§§ 30131–30131.6 (significantly increasing the state’s cigarette and
`tobacco taxes to fund, in part, anti-smoking efforts).
`
`

`

`10 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
`in 2009,3 the history of tobacco regulation is, until recently,
`one of state and local action.
`
`2. The TCA Continued to Preserve State and Local
`Power Over Tobacco Sales.
`
`Given this extensive background of state and local
`tobacco regulation, it would have been surprising if
`Congress had broadly jettisoned the longstanding tradition
`of states and localities’ role in the regulation of sales of
`tobacco products when it enacted the TCA in 2009. The text
`of the TCA itself demonstrates that it did not. Instead,
`Congress made an “explicit decision to preserve for the
`states a robust role in regulating, and even banning, sales of
`tobacco products.” U.S. Smokeless Tobacco Mfg. Co. v. City
`of New York, 708 F.3d 428, 436 (2d Cir. 2013).
`
`Specifically, the TCA sought to “authorize the [FDA] to
`set national standards controlling the manufacture of
`tobacco products and the identity, public disclosure, and
`amount of ingredients used in such products.” Pub. L. No.
`111-31, 123 Stat. 1778 (2009) (emphasis added). In doing
`so, the TCA balances state and federal power over tobacco
`regulation by way of a unique three-layered preservation
`provision.4 The first clause of the provision, labeled the
`
`3 See R.J. Reynolds Tobacco Co. v. City of Edina, 482 F. Supp. 3d
`875, 880–81 (D. Minn. 2020) (observing that the TCA “was partly a
`response to the FDA’s earlier unsuccessful attempt to assert jurisdiction
`over tobacco products in order to enact age-specific tobacco regulations”
`(citing Brown & Williamson Tobacco Corp., 529 U.S. at 125–26)); see
`also U.S. Smokeless Tobacco Mfg. Co. v. City of New York, 703 F. Supp.
`2d 329, 336 (S.D.N.Y. 2010) (same).
`
`4 Because this is a case about preemption, it is easy to refer to
`21 U.S.C. § 387p of the TCA as a “preemption provision.” But it is more
`
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 11
`
`preservation clause, broadly preserves state, local, and tribal
`power to enact any regulation concerning tobacco products
`that is “in addition to or more stringent” than those
`promulgated by the TCA:
`
`Except as provided in [the preemption
`clause], nothing in this subchapter, or rules
`promulgated under this subchapter, shall be
`construed to limit the authority of a . . .
`political subdivision of a State . . . to enact,
`adopt, promulgate, and enforce any law, rule,
`regulation, or other measure with respect to
`tobacco products that is in addition to, or
`more stringent than, requirements established
`under this subchapter, including a law, rule,
`regulation, or other measure relating to or
`prohibiting the sale, distribution, possession,
`exposure to, access to, advertising and
`promotion of, or use of tobacco products by
`individuals of any age, information reporting
`to the State, or measures relating to fire safety
`standards for tobacco products. No provision
`of this subchapter shall limit or otherwise
`
`
`properly characterized as a “preservation provision.” While § 387p does
`contain the preemption clause that forms the basis of Appellants’
`challenge to the County’s ban (see id. § 387p(a)(2)(A)), that preemption
`clause is sandwiched between two clauses that expressly preserve and
`exempt from preemption broad non-federal regulatory authority over
`tobacco products (see id. §§ 387p(a)(1), (a)(2)(B)). Indeed, even the title
`of § 387p (“Preservation of State and Local Authority”) evinces its
`predominant purpose to preserve rather than preempt non-federal
`regulatory authority. This overall structure of the TCA’s “preservation
`provision” cannot be overemphasized, and as discussed further below,
`distinguishes the TCA’s preemption clause from dissimilar provisions in
`other federal statutes considered by the Supreme Court.
`
`

`

`12 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
`
`affect any State, tribal, or local taxation of
`tobacco products.
`
`21 U.S.C. § 387p(a)(1) (emphasis added). Of particular
`relevance here, the TCA expressly reserves localities’ ability
`to enact any regulations “relating to or prohibiting the sale
`. . . or use of tobacco products by individuals of any age.”
`Id.5
`
`its broad
`follows
`immediately
`then
`The TCA
`preservation clause with a preemption clause that expressly
`overrides the preservation clause in the case of any conflict
`between the two provision’s terms. The preemption clause
`reads:
`
`No . . . political subdivision of a State may
`establish or continue in effect with respect to
`a tobacco product any requirement which is
`different from, or
`in addition
`to, any
`requirement under the provisions of this
`
`
`5 There is a scrivener’s error in both the TCA’s preservation and
`savings clauses. Both clauses contain similar statements allowing non-
`federal laws “relating to or prohibiting the sale . . . or use of tobacco
`products by individuals of any age.” Id. § 387p(a)(1) (emphasis added);
`see also id. § 387p(a)(2)(B) (similar). The drafters of these clauses used
`the preposition “by” in the last prepositional phrase “by individuals of
`any age,” presumably because the preposition “by” matches the closest
`object (“use”) in the preceding series of objects (thus, “use . . . by
`individuals of any age”). But while the preposition “by” makes sense for
`some of the other objects in the series (e.g., “possession . . . by
`individuals of any age”), it doesn’t make sense for others, such as “sale”
`(it should be “sale . . . [to] individuals of any age”) or “advertising and
`promotion” (“advertising and promotion . . . [to] individuals of any
`age”). Correcting for this drafting error, we replace the word “by” with
`a bracketed “[to]” in subsequent quotations in this opinion where
`appropriate.
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 13
`
`
`subchapter relating
`tobacco product
`to
`standards, premarket review, adulteration,
`misbranding,
`labeling, registration, good
`manufacturing standards, or modified risk
`tobacco products.
`
`Id. § 387p(a)(2)(A) (emphasis added). While the TCA does
`not explicitly define “tobacco product standards,” it uses that
`phrase elsewhere in the TCA when referring to various
`characteristics of
`tobacco products,
`such as “the
`construction,
`components,
`ingredients,
`additives,
`constituents . . . and properties of the tobacco products”
`(among other references). See id. § 387g(a)(4)(B)(i). It also
`uses the phrase broadly as encompassing some federal “sale
`and distribution . . . restrict[ions],” id. § 387g(a)(4)(B)(v)—
`including the federal ban on most flavored cigarettes, id.
`§ 387g(a)(1)(A)—as well as tobacco labeling requirements.
`Id. § 387g(a)(4)(C).
`
`Immediately following the TCA’s preemption clause, a
`savings clause then excepts various broadly defined
`categories from preemption. See id. § 387p(a)(2)(B).
`Specifically, the savings clause instructs that the preemption
`clause
`
`does not apply to requirements relating to the
`sale, distribution, possession, information
`reporting to the State, exposure to, access to,
`the advertising and promotion of, or use of,
`tobacco products by individuals of any age,
`or relating to fire safety standards for tobacco
`products.
`
`Id. § 387p(a)(2)(B).
`
`

`

`14 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
`3. Los Angeles County Banned the Sale of Flavored
`Tobacco Products.
`
`In September 2019, as part of amendments to its business
`licenses and health and safety code, Los Angeles County
`joined at least three states and over 300 local jurisdictions
`across the country by enacting a prohibition on the sale of
`flavored tobacco products. The County’s ordinance reads:
`
`[I]t shall be a violation of this Chapter for a
`tobacco retailer/licensee or its agent(s) or
`employee(s) to sell or offer for sale, or to
`possess with the intent to sell or offer for sale,
`any
`flavored
`tobacco product or any
`component, part, or accessory intended to
`impart, or imparting a characterizing flavor in
`any form, to any tobacco product or nicotine
`delivery
`device,
`including
`electronic
`smoking devices.
`
`LOS ANGELES COUNTY, CAL., CODE § 11.35.070(E) (2019);
`see
`also CTFK, Fact Sheet
`(Oct. 23, 2020),
`https://perma.cc/JGX3-3VZP.
` The ordinance defines
`“flavored tobacco product” as “any tobacco product, as
`defined in this Chapter, which imparts a characterizing
`flavor.”
`
`Id. § 11.35.020(J).
`
`It
`further defines
`“characterizing flavor” as “a taste or aroma, other than the
`taste or aroma of tobacco, imparted either prior to or during
`consumption of a tobacco product.” Id. § 11.35.020(C). The
`ordinance therefore only permits the sale of tobacco products
`with either the taste or aroma of tobacco, or no taste or aroma
`at all. See id.
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 15
`
`4. The District Court Dismissed Appellants’ Case.
`
`Appellants R.J. Reynolds Tobacco Company, American
`Snuff Company, LLC, and Santa Fe Natural Tobacco
`Company, Inc. (Appellants) sued the County of Los Angeles
`and various County officials (Appellees), alleging that the
`TCA expressly and impliedly preempts the County’s
`ordinance. The district court first denied Appellants’ motion
`for a preliminary injunction, finding that they were not likely
`to succeed on the merits of their claims. It then subsequently
`granted Appellees’ Rule 12(b)(6) motion, incorporating the
`reasoning from its denial of the preliminary injunction. It
`also denied Appellants’ motion for summary judgment as
`moot. Judgment was later entered, and Appellants appeal
`that judgment.
`
`III. JURISDICTION AND STANDARD OF REVIEW
`
`“We have appellate jurisdiction under 28 U.S.C.
`§ 1291.” Kashem v. Barr, 941 F.3d 358, 369 (9th Cir. 2019).
`“A dismissal for failure to state a claim pursuant to Federal
`Rule of Civil Procedure 12(b)(6) is reviewed de novo.”
`Marder v. Lopez, 450 F.3d 445, 448 (9th Cir. 2006). “We
`[also] review de novo a district court’s application of
`preemption principles.” U.S. Smokeless Tobacco Mfg. Co.,
`708 F.3d at 432 (citation omitted).
`
`IV. DISCUSSION
`
`“The Supremacy Clause provides that the laws of the
`United States ‘shall be the supreme Law of the Land . . . any
`Thing in the Constitution or Laws of any State to the
`Contrary notwithstanding.’” Gonzalez v. Arizona, 677 F.3d
`383, 391–92 (9th Cir. 2012) (en banc) (quoting U.S. Const.
`art. VI, cl. 2). “Under our system of dual sovereignty, courts
`deciding whether a particular state law is preempted under
`
`

`

`16 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
`the Supremacy Clause must strive to maintain the delicate
`balance between the States and the Federal Government,
`especially when Congress
`is regulating
`in an area
`traditionally occupied by the States.” Id. (citations and
`internal quotation marks omitted).
`
`The TCA’s text, framework, and historical context
`reflect its attempt to strike such a balance. Its unique
`preemption structure gives the federal government exclusive
`power to set “tobacco product standards,” while preserving
`state, local, and tribal authority to regulate or ban sales of
`those products altogether. Consistent with this structure, it
`would be a mistake to read “tobacco product standards” in
`the TCA’s preemption clause so broadly as to encompass the
`type of sales ban challenged in this case—particularly since
`the TCA both expressly preserves and exempts from
`preemption local authority over that exact type of regulation.
`The preemption clause therefore does not cover the County’s
`sales ban. But even if it did, the savings clause “saves” it
`from preemption because a sales ban qualifies as a
`“requirement[] relating to the sale” of tobacco products.
`
`We therefore hold that TCA does not expressly preempt
`the County’s sales ban. And given that Congress explicitly
`preserved local authority to enact the very type of sales ban
`at issue here, we also reject Appellants’ claim of implied
`preemption.
`
`1. The TCA Does Not Expressly Preempt the County’s
`Sales Ban.
`
`The TCA’s text, structure, and historical context
`precludes express preemption in this case. “Where, as here,
`Congress has specifically addressed the preemption issue,
`our task is primarily one of interpreting what Congress has
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 17
`
`said on the subject.” U.S. Smokeless Tobacco Mfg. Co.,
`708 F.3d at 432.6
`
`We “begin with the wording of [the TCA’s preemption
`provision], but we must also consider the statute as a whole
`to determine whether the local ordinance actually conflicts
`with the overall federal regulatory scheme.” Id. (citation
`omitted); see also Brown & Williamson Tobacco Corp.,
`529 U.S. at 133 (“It is a fundamental canon of statutory
`construction that the words of a statute must be read in their
`context and with a view to their place in the overall statutory
`scheme.” (citation and internal quotation marks omitted)).
`In interpreting statutes wholistically, we must strive to
`
`6 The parties dispute whether a presumption against preemption
`applies, but the Supreme Court has already determined that if a “statute
`contains an express pre-emption clause, we do not invoke any
`presumption against pre-emption but instead focus on the plain wording
`of the clause, which necessarily contains the best evidence of Congress’
`pre-emptive intent.” Puerto Rico v. Franklin California Tax-Free Tr.
`(Franklin), 579 U.S. 115, 125 (2016) (citation and internal quotation
`marks omitted); see also Int’l Bhd. of Teamsters, Loc. 2785 v. Fed. Motor
`Carrier Safety Admin., 986 F.3d 841, 853 (9th Cir. 2021) (relying on
`Franklin in determining that the existence of an express presumption
`clause negated any presumption against preemption); Atay v. Cty. of
`Maui, 842 F.3d 688, 699 (9th Cir. 2016) (same). Appellees argue that
`these cases suggest that only unambiguous express preemption clauses
`override the presumption. But this runs counter to Franklin, where the
`majority and dissent’s debate over the scope of the preemption clause at
`issue in that case demonstrates that it was not, in fact, unambiguous. See
`579 U.S. at 135–37 (Sotomayor, J., dissenting). Appellees also rely on
`two post-Franklin cases from our court that rely on the presumption of
`preemption when evaluating an express preemption clause. See Miller
`v. C.H. Robinson Worldwide, Inc., 976 F.3d 1016, 1021 (9th Cir. 2020);
`California Ins. Guarantee Ass’n v. Azar, 940 F.3d 1061, 1067 (9th Cir.
`2019). But the parties in both of those cases failed to address Franklin.
`Pursuant to Franklin and our court’s application of Franklin, therefore,
`our focus is on the meaning of the TCA’s text without any presumptive
`thumb on the scale.
`
`

`

`18 R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES
`
`“giv[e] effect to each word and mak[e] every effort not to
`interpret a provision in a manner that renders other
`provisions of the same statute inconsistent, meaningless or
`superfluous.” Shelby v. Bartlett, 391 F.3d 1061, 1064 (9th
`Cir. 2004) (citation omitted). We also “assum[e] that the
`ordinary meaning of that language accurately expresses the
`legislative purpose.” Engine Mfrs. Ass’n v. S. Coast Air
`Quality Mgmt. Dist., 541 U.S. 246, 252 (2004) (citation
`omitted).
`
`a. The Preemption Clause Doesn’t Cover
`County’s Sales Ban.
`
`the
`
`Applying these well-established principles, we first
`conclude that the phrase “tobacco product standards” in the
`TCA’s preemption clause does not encompass the County’s
`sales ban.
`
`We begin with the text of all three adjacent clauses—
`preservation,
`preemption,
`and
`savings—considered
`together. In § 387p of the TCA, the initial preservation
`clause broadly preserves state, local, and tribal authority to
`enact a variety of regulations that are “in addition to, or more
`stringent than” the TCA’s requirements. See 21 U.S.C.
`§ 387p(a)(1). While under the TCA the federal government
`sets the regulatory floor, the plain text of the preservation
`clause allows state, local, and tribal governments to go
`beyond that, including even “prohibiting the sale . . . of
`tobacco products [to] individuals of any age.” Id. (emphasis
`added).
`
`The subsequent preemption clause then carves out eight
`limited exceptions to the preservation clause, each of which
`relates most obviously to the production or marketing
`stages—and not the retail sale—of tobacco products:
`“tobacco product standards, premarket review, adulteration,
`
`

`

` R.J. REYNOLDS TOBACCO CO. V. CNTY. OF LOS ANGELES 19
`
`misbranding, labeling, registration, good manufacturing
`standards, or modified risk
`tobacco products.”
` Id.
`§ 387p(a)(2)(A).
` For example,
`the TCA describes
`“adulteration” in terms of various issues that could arise
`during the manufacturing or marketing stages. See id.
`§ 387b. Similarly, “registration” requires that “every person
`who owns or operates any establishment in any State
`engaged in the manufacture, preparation, compounding, or
`processing of a tobacco product or tobacco products shall
`register with the Secretary the name, places of business, and
`all such establishments of that person.” Id. § 387e(b)
`(emphasis added). And to qualify as a “modified risk
`tobacco product,” details about the manufacturing and
`marketing processes must be provided. See id. § 387k(d).
`
`While the TCA does not explicitly define “tobacco
`product standards,” it describes that phrase in terms of the
`manufacturing
`and marketing
`stages.
` See
`e.g.,
`§ 387g(a)(4)(B)(i) (requiring tobacco product standards to
`include, where appropriate, “provisions respecting the
`construction,
`components,
`ingredients,
`additives,
`constituents, including smoke constituents, and properties of
`the tobacco product”). Consistent with its surrounding
`categories, it makes sense to view “tobacco product
`standards” in the TCA’s preemption clause as most naturally
`referring to standards pertaining to the production or
`marketing stages up until the actual point of sale. See Rizo
`v. Yovino, 950 F.3d 1217, 1224 (9th Cir. 2020) (en banc)
`(noting the “well-settled rule[] of statutory constr

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket