throbber
Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 1 of 95
`
`
`
`No. 20-55930
`
`In the
`United States Court of Appeals for the Ninth Circuit
`_________________
`
`R.J. REYNOLDS TOBACCO COMPANY; AMERICAN SNUFF COMPANY;
`AND SANTA FE NATURAL TOBACCO COMPANY,
`
`Appellants,
`
`v.
`
`COUNTY OF LOS ANGELES; COUNTY OF LOS ANGELES BOARD OF
`SUPERVISORS; AND HILDA L. SOLIS, MARK RIDLEY-THOMAS, SHEILA
`KUEHL, JANICE HAHN, AND KATHRYN BARGER, EACH IN HIS OR HER
`OFFICIAL CAPACITY AS A MEMBER OF THE BOARD OF SUPERVISORS,
`
`Appellees,
`
`______________________
`
`On Appeal from the United States District Court
`for the Central District of California
`No. 2:20-cv-4880 (Hon. Dale S. Fischer)
` _____________________
`
`Petition for Rehearing En Banc
`___________________
`
`
`Jason C. Wright
`JONES DAY
`555 South Flower Street
`Fiftieth Floor
`Los Angeles, CA 90071
`(213) 489-3939
`
`
`
`
`Noel J. Francisco
`Christian G. Vergonis
`Ryan J. Watson
`Andrew J. M. Bentz
`JONES DAY
`51 Louisiana Ave., N.W.
`Washington, D.C. 20001
`(202) 879-3939
`
`
`
`
`
`Counsel for Appellants
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 2 of 95
`
`TABLE OF CONTENTS
`
`
`Page
`TABLE OF AUTHORITIES ................................................................................... ii
`INTRODUCTION AND RULE 35(b)(1) STATEMENT ........................................ 1
`BACKGROUND ...................................................................................................... 4
`A. Legal background ...................................................................................... 4
`B. Los Angeles’s flavor ban, the panel’s decision,
`and Judge Nelson’s dissent ........................................................................ 5
`REASONS TO GRANT THE PETITION ............................................................... 7
`I. The panel decision conflicts with the plain text of the TCA
`and decisions of the Supreme Court and other circuits ..................................... 7
`A. The panel misconstrued the preemption clause ......................................... 7
`B. The panel misconstrued the savings clause ............................................. 13
`C. The panel created a circuit split ............................................................... 16
`II. This issue is exceptionally important .............................................................. 18
`CONCLUSION ....................................................................................................... 19
`CERTIFICATE OF COMPLIANCE
`CERTIFICATE OF SERVICE
`
`
`
`
`i
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 3 of 95
`
`TABLE OF AUTHORITIES
`
`
`Page(s)
`
`CASES
`AT&T Co. v. Cent. Off. Tel., Inc.,
`524 U.S. 214 (1998) ............................................................................................ 13
`Collins v. Yellen,
`141 S. Ct. 1761 (2021) ........................................................................................ 14
`Corley v. United States,
`556 U.S. 303 (2009) ............................................................................................ 16
`Cyan, Inc. v. Beaver Cnty. Emps. Ret. Fund,
`138 S. Ct. 1061 (2018) ........................................................................................ 11
`Engine Mfrs. Ass’n v. S. Coast Air Quality Mgmt. Dist.,
`541 U.S. 246 (2004) .....................................................................................passim
`Nat’l Meat Ass’n v. Harris,
`565 U.S. 452 (2012) .....................................................................................passim
`NATO v. Providence,
`731 F.3d 71 (1st Cir. 2013) ....................................................................... 3, 16, 17
`R.J. Reynolds Tobacco Co. v. City of Edina,
`482 F. Supp. 3d 875 (D. Minn. 2020) ............................................................. 7, 10
`Roberts v. Sea-Land Servs., Inc.,
`566 U.S. 93 (2012) .......................................................................................... 2, 13
`U.S. Smokeless Tobacco Mfg. Co. v. New York,
`708 F.3d 428 (2d Cir. 2013) ..................................................................... 3, 16, 17
`
`
`STATUTES AND LEGISLATIVE MATERIALS
`15 U.S.C. § 1334 ...................................................................................................... 14
`15 U.S.C. § 4406 ...................................................................................................... 14
`Federal Food, Drug, and Cosmetic Act
`FDCA § 301, 21 U.S.C. § 331 .............................................................................. 9
`FDCA § 801, 21 U.S.C. § 381 .............................................................................. 9
`FDCA § 902, 21 U.S.C. § 387b ............................................................................ 9
`
`ii
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 4 of 95
`
`TABLE OF AUTHORITIES
`(continued)
`
`Page(s)
`FDCA § 907, 21 U.S.C. § 387g ...................................................................passim
`FDCA § 911, 21 U.S.C. § 387k .......................................................................... 12
`FDCA § 916, 21 U.S.C. § 387p ...................................................................passim
`42 U.S.C. § 7543 ........................................................................................................ 8
`S.B. 793, 2019-2020 Reg. Sess. (Cal. 2020) ........................................................... 18
`L.A. Cnty. Code § 11.35.070 ..................................................................................... 5
`
`OTHER AUTHORITIES
`Utah Dep’t of Health, Administrative Rule 384-415 ............................................... 18
`
`
`iii
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 5 of 95
`
`
`
`INTRODUCTION AND RULE 35(b)(1) STATEMENT
`This Court should grant rehearing en banc because the panel decision conflicts
`
`with decisions of the United States Supreme Court and implicates questions of
`
`exceptional importance. Under the federal Tobacco Control Act, states and localities
`
`have broad authority to regulate the sale of tobacco products. But one thing they
`
`cannot do is completely prohibit their sale because they do not meet the state or
`
`locality’s preferred “tobacco product standards.” Nonetheless, a sharply divided
`
`panel of this Court upheld Los Angeles County’s ban on the sale of flavored tobacco
`
`products. As Judge Nelson explained in dissent, that conclusion defies the statutory
`
`text and conflicts with Supreme Court precedent. Indeed, the Supreme Court has
`
`“twice reversed” this Court for committing the same error as the panel here:
`
`“interpreting an express preemption clause to allow states and municipalities to
`
`defeat its entire purpose with a sales ban.” Dissent 34 (citing Engine Mfrs. Ass’n v.
`
`S. Coast Air Quality Mgmt. Dist., 541 U.S. 246 (2004); Nat’l Meat Ass’n v. Harris,
`
`565 U.S. 452 (2012)). Here, the third time is not the charm.
`
`First, Los Angeles’s flavor ban falls in the heartland of the TCA’s preemption
`
`clause. That clause preempts “any” state or local requirements that impose additional
`
`or different “tobacco product standards.” A flavor ban is a paradigmatic tobacco
`
`product standard. Indeed, it is one of the only tobacco product standards that
`
`1
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 6 of 95
`
`Congress itself adopted in the TCA. And because the County’s ban is broader than
`
`
`the federal one, it is squarely within the Act’s preemption clause.
`
`The panel, however, held that “tobacco product standards” are limited to
`
`requirements dictating “how [a] product must be produced.” Op. 24. And because
`
`the County’s law is “merely” a sales ban, it escapes preemption. Id. That not only
`
`imposes a limitation found nowhere in the statutory text, but also conflicts with the
`
`Supreme Court’s admonition that localities cannot circumvent preemption by calling
`
`their laws “sales bans.” Engine Mfrs., 541 U.S. at 254. Indeed, the panel’s
`
`interpretation “make[s] a mockery of the [TCA’s] preemption provision” by
`
`allowing localities to avoid preemption simply by framing their product standards as
`
`“banning the sale” of nonconforming products. Nat’l Meat, 565 U.S. at 465.
`
`Second, the panel held in the alternative that the TCA’s savings clause saved
`
`Los Angeles’s ban. That holding conflicts with the Supreme Court’s instruction that
`
`statutory provisions be read in harmony, not to nullify one another. E.g., Roberts v.
`
`Sea-Land Servs., Inc., 566 U.S. 93, 100 (2012). The TCA’s three related preemption-
`
`related provisions—the preservation clause, preemption clause, and savings
`
`clause—carefully distinguish between (a) requirements “relating to” the sale of
`
`tobacco products and (b) requirements “prohibiting” their sale. 21 U.S.C.
`
`§ 387p(a)(1) (preservation clause). By its plain terms, the savings clause saves only
`
`the first type of requirement, not the second; so it cannot save the County’s absolute
`
`2
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 7 of 95
`
`prohibition. § 387p(a)(2)(B). The panel’s contrary holding nullifies Congress’s
`
`
`distinction between requirements “relating to” and “prohibiting” sales, and renders
`
`the preemption clause a nullity. Any state can skirt preemption by labeling its law a
`
`“sales ban,” which again contravenes Engine Manufacturers and National Meat.
`
`The panel also created a circuit split. See NATO v. Providence, 731 F.3d 71
`
`(1st Cir. 2013); U.S. Smokeless Tobacco Mfg. Co. v. New York, 708 F.3d 428 (2d
`
`Cir. 2013). While the First and Second Circuits upheld local sales restrictions on
`
`flavored tobacco products, their holdings were expressly conditioned on the fact that
`
`the laws at issue were not total prohibitions. The panel, in contrast, upheld precisely
`
`the type of absolute prohibition that the First and Second Circuits distinguished.
`
`Finally, this issue is exceptionally important. The TCA reserves to the federal
`
`government the authority to regulate tobacco product standards. Those standards can
`
`govern any “property” of a tobacco product. Thus, under the panel’s interpretation,
`
`every state and county can regulate any property of a tobacco product. So a county
`
`can limit the amount of nicotine in cigarettes, require cigars to be a certain length,
`
`or regulate the batteries in e-cigarettes. All the county has to do is ban the sale of
`
`products that do not meet local standards. Jurisdictions, by the hundreds, are doing
`
`just that for flavored products. And they are now moving beyond flavors—for
`
`example, regulating nicotine levels. The panel opinion is a green light to more
`
`regulatory bedlam, in clear defiance of the text and purpose of the statute.
`
`3
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 8 of 95
`
`
`
`BACKGROUND
`
`A. Legal background
`
`Congress enacted the Tobacco Control Act in 2009. The TCA addresses
`
`flavors in tobacco products in the section “Tobacco product standards.” 21 U.S.C.
`
`§ 387g. That section contains a “tobacco product standard” that prohibits
`
`characterizing flavors in cigarettes other than tobacco or menthol. § 387g(a)(1)(A).
`
`Congress left it to FDA to decide whether to extend that ban. E.g., § 387g(a).
`
`Congress also addressed the relationship between federal authority and state
`
`and local authority to regulate tobacco products in three related provisions:
`
`The preservation clause generally preserves “the authority of ” states,
`
`localities, the Armed Forces, federal agencies, and Indian tribes to promulgate
`
`measures that are “in addition to, or more stringent than, requirements,” under the
`
`TCA, including “measure[s] relating to or prohibiting the sale … of tobacco
`
`products by individuals of any age.” § 387p(a)(1) (emphasis added). The
`
`preservation clause, however, is expressly subject to the preemption clause, stating
`
`in plain terms that it applies “[e]xcept as provided in [the preemption clause].” Id.
`
`(emphasis added). Thus, if the preemption clause applies, the preservation clause
`
`does not.
`
`The preemption clause then prohibits states and localities from “establish[ing]
`
`… any requirement” that “is different from, or in addition to,” federal requirements
`
`4
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 9 of 95
`
`“relating
`
`
`to
`
`tobacco product standards, premarket
`
`review, adulteration,
`
`misbranding, labeling, registration, good manufacturing standards, or modified risk
`
`tobacco products.” § 387p(a)(2)(A) (emphasis added).
`
`The savings clause then provides an exception to preemption. It saves state
`
`and local “requirements relating to the sale … of, tobacco products by individuals
`
`of any age.” § 387p(a)(2)(B) (emphasis added). But the clause does not reference—
`
`and so does not save—local power to enact “requirements prohibiting the sale” of
`
`those products. Compare id. (savings clause), with § 387p(a)(1) (preservation
`
`clause).
`
`B.
`
`Los Angeles’s flavor ban, the panel’s decision, and Judge Nelson’s
`dissent
`1. In 2019, Los Angeles County enacted an ordinance making it illegal to “sell
`
`… any flavored tobacco product.” L.A. Cnty. Code § 11.35.070(E). R.J. Reynolds
`
`Tobacco Company and its affiliates sued, arguing that the ordinance was preempted.
`
`As Reynolds argued, a ban on flavored tobacco products is a paradigmatic “tobacco
`
`product standard.” And because the County’s ban is broader than the federal one—
`
`it prohibits menthol flavors, which federal law allows—it is “different from” and “in
`
`addition to” the federal standard.
`
`2. A divided panel of this Court upheld the ordinance. Judge VanDyke, joined
`
`by District Judge Schreier, concluded that “tobacco product standards” are limited
`
`to regulations of how a “product must be produced”—a limitation found nowhere in
`
`5
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 10 of 95
`
`the statutory text—apparently believing this atextual reading was compelled by the
`
`
`“preservation clause.” Op. 23-24. And since the County’s ordinance “merely” bans
`
`the sale of flavored tobacco products, it was not a preempted tobacco product
`
`standard. Id. The panel also held that the TCA’s savings clause saved the ordinance.
`
`Op. 27-32.
`
`Judge Nelson dissented. He explained that the Supreme Court’s decisions in
`
`Engine Manufacturers and National Meat establish that “states can’t get around”
`
`preemption “by disguising [their] regulation as a sales ban.” Dissent 36. Those cases
`
`require “hold[ing] that Los Angeles’s ban is covered by the preemption clause.” Id.
`
`Judge Nelson wrote that the “preservation clause does not apply to the preemption
`
`clause at all” because it is qualified by the words “‘[e]xcept as provided in’ … the
`
`preemption clause.” Dissent 39. Instead, the preservation clause clarifies that no
`
`other section of the statute has express preemptive effect and that federal agencies
`
`and Indian tribes are unaffected by the preemption clause. Dissent 34. Judge Nelson
`
`also concluded that the savings clause saves only age-based requirements. Dissent
`
`41.
`
`6
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 11 of 95
`
`
`
`I.
`
`REASONS TO GRANT THE PETITION
`
`The panel decision conflicts with the plain text of the TCA and decisions
`of the Supreme Court and other circuits
`A. The panel misconstrued the preemption clause
`“In the last two decades, the Supreme Court has twice reversed [this Court]
`
`for failing to find California regulations expressly preempted.” Dissent 34 (citing
`
`Engine Mfrs., 541 U.S. 246; Nat’l Meat, 565 U.S. 452). In those cases, the Supreme
`
`Court emphasized that “[w]hen Congress expressly preempts state regulation, states
`
`can’t get around Congress’s prohibition by disguising that type of regulation as a
`
`sales ban.” Dissent 36. The panel nonetheless concluded “that this time is different.”
`
`Dissent 34. But the panel erred; its conclusion is contrary to the plain text of the
`
`TCA and foreclosed by Supreme Court precedent.
`
`1. The text of the TCA clearly preempts L.A. County’s flavor ban. The Act’s
`
`preemption clause preempts “any” local “requirement which is different from, or in
`
`addition to,” federal “tobacco product standards.” 21 U.S.C. § 387p(a)(2)(A). A
`
`flavor ban is obviously a “tobacco product standard”; indeed, one of only two
`
`“tobacco product standards” that Congress expressly enacted in the text of the Act
`
`was a ban on flavored cigarettes. § 387g(a)(1). The Act also describes “tobacco
`
`product standards” as regulating tobacco product “properties.” § 387g(a)(4)(B)(i).
`
`“[T]here can be no dispute that a provision respecting the flavor of a tobacco product
`
`is a provision respecting a ‘property’ of that product.” R.J. Reynolds Tobacco Co. v.
`
`7
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 12 of 95
`
`City of Edina, 482 F. Supp. 3d 875, 879 (D. Minn. 2020), appeal pending, No. 20-
`
`
`2852 (8th Cir. argued May 12, 2021).
`
`The panel did not dispute any of that. It nevertheless held that the County’s
`
`ordinance (which goes beyond the federal ban) is not preempted because it is
`
`“merely banning the sale of a certain type of tobacco product, not dictating how that
`
`product must be produced.” Op. 24 (emphasis added). But that limitation is found
`
`nowhere in the statutory text. Rather, the text makes clear that “standard” refers to
`
`the characteristics of a final product—i.e., a tobacco product’s “properties,”
`
`“constituents,” and “additives,” § 387g(a)(4)(B)(i)—not how the product is
`
`produced. There is therefore nothing in the text that supports the limitation created
`
`by the panel. See Opening Br. 30-32.
`
` 2. The panel’s atextual limitation, moreover, was rejected by the Supreme
`
`Court in Engine Manufacturers. There, California prohibited the purchase of cars
`
`that did not meet local emission standards. 541 U.S. at 248-49. The Clean Air Act,
`
`however, expressly preempted states from adopting “standard[s] relating to the
`
`control of emissions from new motor vehicles.” 42 U.S.C. § 7543(a) (emphasis
`
`added). Like the panel here, California argued that a “standard” was only “a
`
`‘production mandate’” applicable to manufacturers; thus, the purchase requirement
`
`was not preempted. 541 U.S. at 254-55. But the Supreme Court specifically rejected
`
`that attempt to “engraft onto th[e] meaning of ‘standard’ a limiting component”
`
`8
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 13 of 95
`
`found nowhere in the statutory text. Id. at 253. Instead, looking to the dictionary
`
`
`definition of “standard,” the Court concluded that a “standard” applies to the final
`
`product, not simply how it is made. Id. Standards “target” the product itself, which
`
`means preempted “standard-enforcement efforts … can be directed to manufacturers
`
`or purchasers.” Id.
`
`The same is true here. A tobacco product standard applies to the final product,
`
`not simply to how the product is made. See 21 U.S.C. § 387g(a)(4)(B)(i). A sales
`
`ban and a manufacturing ban are just different ways of enforcing a standard. But
`
`none of this changes that what is being enforced is a standard (no flavors in tobacco
`
`products). Indeed, like the ordinance here, federal tobacco product standards are also
`
`enforced at the point of sale. §§ 331(a), (c), 387b(5). Such enforcement mechanisms,
`
`however, do not change the fact that the sales prohibitions are enforcing product
`
`standards banning flavors. And manufacturers can also disregard federal standards
`
`altogether if the products are exported. § 381(e)(1). That too proves “tobacco
`
`product standards” are not limited to production regulations.
`
`3. Even if tobacco product standards were limited to production standards, the
`
`county’s sales ban would still be preempted under National Meat, 565 U.S. 452. In
`
`that case, California banned slaughterhouses from selling meat from animals that
`
`could not walk. Manufacturers argued that the Federal Meat Inspection Act (FMIA)
`
`preempted California’s
`
`law. That Act prohibited states
`
`from adopting
`
`9
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 14 of 95
`
`“[r]equirements … with respect to premises, facilities and operations of any
`
`
`establishment … which are in addition to, or different than those made under [the
`
`FMIA].” Id. at 458. Like the panel here, California argued that its rule regulated
`
`sales, not manufacturing, and thus was not preempted. Id. at 463. The Supreme Court
`
`rejected the argument. “[I]f the sales ban were to avoid the FMIA’s preemption
`
`clause, then any State could impose any regulation on slaughterhouses just by
`
`framing it as a ban on the sale of meat produced in whatever way the State
`
`disapproved. That would make a mockery of the FMIA’s preemption provision.” Id.
`
`at 464.
`
`The same is true here. “[E]ven if it were necessary to show a direct ban on
`
`[production], [Los Angeles’s] Ordinance is in effect such a ban. There is little
`
`difference between the government telling a manufacturer that it may not add an
`
`ingredient that imparts a flavor to a tobacco product and the government telling a
`
`manufacturer that it may not sell a tobacco product if it has added an ingredient that
`
`imparts a flavor.” Edina, 482 F. Supp. 3d at 879 (citing Nat’l Meat). In that way,
`
`Los Angeles’s ban does regulate how tobacco products must be produced. Id.
`
`4. The panel’s attempt to distinguish the TCA from the statutes in Engine
`
`Manufacturers and National Meat is unavailing. According to the panel, the TCA’s
`
`“preservation clause” makes all the difference. Op. 20-24. Because that clause
`
`preserves local authority to enact laws “relating to or prohibiting the sale” of tobacco
`
`10
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 15 of 95
`
`products, 21 U.S.C. § 387p(a)(1), the panel concluded that the preemption clause
`
`
`must be limited to regulations “dictating how th[e] product must be produced.” Op.
`
`24. Otherwise, the preservation clause would be a “nullity.” Id.
`
`That gets things exactly backwards. “By its terms, the preservation clause
`
`does not apply to the preemption clause at all.” Dissent 39. It is the other way around.
`
`The preservation clause explicitly says it is subject to the preemption clause. 21
`
`U.S.C. § 387p(a)(1) (“Except as provided in [the preemption clause] ….”). Indeed,
`
`“[t]housands of statutory provisions use the phrase ‘except as provided in …’
`
`followed by a cross-reference in order to indicate that one rule should prevail over
`
`another in any circumstance in which the two conflict.” Cyan, Inc. v. Beaver Cnty.
`
`Emps. Ret. Fund, 138 S. Ct. 1061, 1070 (2018). That is precisely what Congress did
`
`here. Thus, the preservation clause does not remotely distinguish the TCA from the
`
`statutes in Engine Manufacturers or National Meat.
`
`Moreover, Reynolds’ interpretation does not nullify the preservation clause.
`
`That clause serves other critical functions, which do not “affect the preemption
`
`clause.” Dissent 39. First, the preservation clause also applies to federal agencies,
`
`the military, and Indian Tribes. Those entities are not subject to the preemption
`
`clause at all, § 387p(a)(1); the preservation clause clarifies that they are free to set
`
`their own tobacco product standards. See Dissent 40.
`
`11
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 16 of 95
`
`
`
`Second, the preservation clause clarifies “that other sections of the TCA do
`
`not have any preemptive effect.” Dissent 39-40. The preservation clause says that
`
`only those categories listed in the preemption clause have express preemptive effect
`
`and rebuts any suggestion that Congress occupied the field of tobacco regulation.
`
`The panel’s other reason for a narrow interpretation of “tobacco product
`
`standards” is equally wrong. The panel read the other areas covered by the
`
`preemption clause (e.g., premarket review, labeling, and modified risk tobacco
`
`products, § 387p(a)(2)(A)) as not affecting sales. Op. 18-19. Accordingly, “tobacco
`
`product standards” also do not have anything to do with sales. But that is manifestly
`
`incorrect. See Opening Br. 31; Reply Br. 7-9. To cite just one example, a product is
`
`a “modified risk tobacco product” if it “is sold or distributed for use to reduce harm
`
`or the risk of tobacco-related disease associated with commercially marketed
`
`tobacco products.” § 387k(b)(1) (emphasis added). Thus, a product that has been on
`
`the market for years without any changes to how it is made becomes a “modified
`
`risk tobacco product” if a manufacturer sells it to reduce harm. But again, even if
`
`“tobacco product standards” were limited to production regulations, the County’s
`
`ban is preempted under National Meat.1
`
`
`1 At times, the panel wrote that “tobacco product standards” are limited to
`manufacturing and marketing regulations. Op. 19. That interpretation is derived
`from whole cloth and contravenes the statutory text. The TCA describes tobacco
`product standards as governing “components, ingredients, additives, constituents …
`and properties of the tobacco product,” § 387g(a)(4)(B)(i), which are obviously
`
`12
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 17 of 95
`
`
`
`In sum, the text of the TCA confirms the conclusion that the Supreme Court’s
`
`caselaw compels: the County’s ban on flavored tobacco products is a preempted
`
`tobacco product standard.
`
`B.
`The panel misconstrued the savings clause
`The panel’s interpretation of the TCA’s savings clause also conflicts with
`
`statutory text and Supreme Court caselaw.
`
`1. Statutory provisions must fit “into an harmonious whole.” E.g., Roberts,
`
`566 U.S. at 100. So the TCA’s savings clause cannot be construed as being
`
`“inconsistent with the [other] provisions of the act.” AT&T Co. v. Cent. Off. Tel.,
`
`Inc., 524 U.S. 214, 227-28 (1998). But that is precisely how the panel interpreted the
`
`savings clause.
`
`In the TCA, Congress carefully distinguished between requirements “relating
`
`to the sale” of tobacco products and requirements “prohibiting the sale” of them.
`
`Congress explicitly addressed both types of requirements in the preservation clause.
`
`See 21 U.S.C. § 387p(a)(1) (requirements “relating to or prohibiting the sale”
`
`(emphasis added)). The savings clause, in contrast, saves only requirements “relating
`
`to the sale,” but not requirements “prohibiting the sale.”
`
`The panel disagrees, but its interpretation is untenable. Foremost, its
`
`interpretation indisputably nullifies Congress’s careful distinction between two
`
`
`about the product itself, not marketing.
`
`13
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 18 of 95
`
`types of requirements: those “relating to” sales on the one hand, and those
`
`
`“prohibiting” sales on the other. See Collins v. Yellen, 141 S. Ct. 1761, 1782 (2021)
`
`(Congress generally “acts intentionally and purposely” when it “includes particular
`
`language in one section of a statute but omits it in another”). The only way to
`
`reconcile this language is to recognize that while local governments have broad
`
`authority to regulate the sales process, one thing they may not do is absolutely
`
`prohibit the sale of products that fail to meet their preferred product standards. That,
`
`however, is precisely what the County did here.
`
`The panel’s interpretation of the savings clause also renders the entire
`
`preemption clause a dead letter. Congress intended to preempt not just local tobacco
`
`product standards but also requirements for labeling and good manufacturing
`
`standards (among others). § 387p(a)(2)(A). But, under the panel’s reading,
`
`Congress’s effort was for naught. A locality can easily circumvent the preemption
`
`clause and establish its own good manufacturing standards or require cigars and e-
`
`cigarettes to have the locality’s mandated warning label.2 All the locality has to do
`
`is ban the sale of products that do not meet local requirements. That not only
`
`conflicts with the Supreme Court’s instruction that statutory provisions be read
`
`
`2 While other laws would preempt state labeling of cigarettes and smokeless
`tobacco, 15 U.S.C. §§ 1334 & 4406(b), only the TCA expressly preempts labeling
`of other tobacco products.
`
`14
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 19 of 95
`
`harmoniously, see supra p. 13, but it again conflicts with the holdings of Engine
`
`
`Manufacturers and National Meat, see supra pp. 8-11.
`
`Finally, the panel’s “textual” analysis of the savings clause is incorrect. The
`
`panel explained that the savings clause saved the County’s prohibition because the
`
`phrase “requirements relating to”—which appears in both the preemption clause and
`
`the savings clause—either does or does not include “prohibitions.” Op. 28. If it does,
`
`then even if a flavor ban is preempted by the preemption clause it is saved by the
`
`savings clause. And if the phrase does not include prohibitions, then a flavor ban is
`
`not preempted by the preemption clause (and the savings clause is irrelevant).
`
`That argument focuses on the wrong language. The preemption clause
`
`explicitly preempts “any [local] requirement” different from federal tobacco product
`
`standards. By saying “any” requirement, Congress made clear that the preemption
`
`clause covers both requirements “relating to the sale” and those “prohibiting” the
`
`sale. The savings clause, however, does not save “any” local requirement. It saves
`
`only those “relating to the sale” of tobacco products. The panel’s opinion nullifies
`
`this distinction.
`
`Although a different part of the preemption clause uses the phrase
`
`“requirements relating to,” that actually proves that “relating to” does not include
`
`“prohibiting.” The TCA’s preemption provisions use “relating to” five times. Three
`
`of them reference “standards”—two refer to “fire safety standards” (once in the
`
`15
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 20 of 95
`
`preservation clause, once in the savings clause), and the third (on which the panel
`
`
`focused) refers to “tobacco product standards” (in the preemption clause). In each of
`
`those uses, “relating to” obviously does not encompass prohibitions. Governments
`
`do not prohibit fire safety standards or product standards; they set or regulate them.
`
`The fourth use of “relating to”—in the preservation clause—likewise confirms that
`
`“relating to” does not include prohibitions, since it distinguishes between
`
`requirements “relating to or prohibiting the sale” of tobacco products. That leaves
`
`the savings clause’s reference to “relating to the sale,” but omitting any reference to
`
`“prohibiting the sale.” This use must mean that Congress did not intend the savings
`
`clause to cover prohibitions on sales, consistent with every other use of “relating to”
`
`in these provisions.
`
`2. Finally, the savings clause does not apply for another, independent reason.
`
`As Judge Nelson concluded, “[t]he savings clause only saves for states the authority
`
`to enact age requirements.” Dissent 41. The panel’s contrary interpretation renders
`
`“[to] individuals of any age” in the savings clause superfluous. Dissent 42. That
`
`conflicts with numerous cases instructing that statutory provisions should not be
`
`rendered meaningless. E.g., Corley v. United States, 556 U.S. 303, 314 (2009).
`
`C. The panel created a circuit split
`
`The panel’s holding also conflicts with First and Second Circuit decisions. See
`
`U.S. Smokeless, 708 F.3d 428; NATO, 731 F.3d 71. U.S. Smokeless and NATO
`
`16
`
`

`

`Case: 20-55930, 04/01/2022, ID: 12410784, DktEntry: 52, Page 21 of 95
`
`upheld local restrictions on flavored tobacco products, but both holdings were
`
`
`expressly conditioned on the fact that the laws at issue permitted sales in some
`
`circumstances. See U.S. Smokeless, 708 F.3d at 436 (in tobacco bars); NATO, 731
`
`F.3d at 74 (in smoking bars). Los Angeles’s ordinance, by contrast, does not permit
`
`sales of flavored tobacco products anywhere under any circumstances.
`
`That difference is key. By banning all sales, the County’s ordinance clearly
`
`establishes a standard rather than regulating how, when, or where products may be
`
`sold. Indeed, the First Circuit expressly “distinguishe[d]” National Meat on the
`
`ground that the regulation at issue was “a regulation ‘relating to’ sales” of products
`
`rather than “a blanket prohibition.” NATO, 731 F.3d at 82. The Second Circuit
`
`likewise made clear that a complete sa

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