Tobacco

Supreme Court Rejects Maine Tobacco Shipping Law

Fed laws bar state regulation of shipments, despite age concerns

WASHINGTON -- The U.S. Supreme Court Wednesday unanimously rejected provisions of a Maine law that restricts the shipment of tobacco products in the state, reported Dow Jones.

"Despite the importance of the public health objective, we cannot agree with Maine that the federal law creates an exemption," Justice Stephen Breyer wrote in the court's majority opinion. "The act says nothing about a public health exception."

The ruling determines that federal trucking laws bar state regulation of tobacco shipments, despite Maine's concern that tobacco products might be shipped to minors.[image-nocss]

The state law, passed by Maine in 2003, required shippers such as United Parcel Service Inc. (UPS) to follow special handling procedures when delivering cigarettes or other tobacco products with the aim of keeping tobacco from being shipped illegally to minors. The industry challenged the provisions, arguing they were onerous, increased costs and ran afoul of the federal limit on state shipping regulations.

Major shipping companies, including UPS and FedEx Corp. (FDX), already have voluntarily agreed not to ship cigarettes in a settlement with New York over tobacco restrictions enacted in that state.

Besides Maine, 31 states have cigarette delivery laws targeting the problem of underage smokers, added an Associated Press report.

The state of Maine had argued that federal law does not pre-empt state regulation for public health and safety. The 1st U.S. Circuit Court of Appeals in Boston disagreed, rejecting Maine's argument that the federal law trumps state law only when it comes to traditional economic regulation of carriers.

The Bush administration sided with the delivery companies, declaring that when Congress deregulated the transportation industry, it determined that states should not step in to fill the void. Congress deregulated truckers to put them on the same competitive footing with the deregulated airline industry.

The ruling against Maine's law could enable the industry to argue that similar laws in other states are invalid. The decision could clear the way for companies to challenge the New York law and the agreements, said AP.

The case is Rowe v. New Hampshire Motor Transport Association.

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