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NH tobacco outlet required to pay or stop using rolling machineryWe reported about this story that made into the news throughout the USA in September, and last week it received a rather predictable continuation. Tobacco Haven, a small tobacco store, situated in Brookline, NH, purchased and installed two cigarette-rolling, allowing its customer to use the high-speed machinery for rolling their own cigarettes, in case they had bough loose tobacco and other materials need for making cigarettes in the shop. Each customer could roll up to 200 cigarettes, equal to an average carton of branded cigarettes selling in the shop, but saving as much as 30 percent of the expenses on ordinary cigarettes. The shop also provided a detailed instruction for all the customers who wanted to make their own cigarettes. The New Hampshire Attorney General submitted a lawsuit in late August asking the Superior Court to specify if the possession of the specialized machinery turns Tobacco Haven into a cigarette maker bound to remit funds into a collective deposit fund. According to the state legislation all cigarette-makers should either make payments to the Master Settlement Agreement or found a separate deposit account to remit a part of revenue for every cigarette sold in New Hampshire. The owner of Tobacco Haven outlet said that there was no manufacture in the shop, but it was simply selling the materials necessary for rolling cigarettes and the cigarette-rolling machines were installed to help the customers save precious time, by providing them with the high-speed machines. The defendant claimed that he has not been obliged to make payments like average cigarette manufacturers. The shop owner even mentioned that it was the supplier of loose tobacco who should have been paying into the escrow fund, as they have been providing smokers with the opportunity to roll cigarettes instead of buying branded products. The Superior Court judge turned down the arguments of the defendant, stating that by installing specialized machines in the shop and selling the materials for rolling cigarettes, the shop encouraged people to make cigarettes, and thus, is deemed a cigarette manufacturer. The Court ruled that Tobacco Haven is bound to comply with state legislation, requiring the cigarette makers to make payments in accordance with 1998 settlement agreement signed between 46 states and tobacco companies. Therefore, Tobacco Haven should stop using cigarette-rolling machines, make payments, according to settlement agreement or use cigarette tobacco. After the final hearing, Michael Delaney, State Attorney General declared that his office would proceed enforcing all the regulations related to the tobacco industry in the state. Attorney General added that by its actions Tobacco Haven made the cost of finished products so low, that they were affordable even to adolescents, so the shop not simply infringed the state tobacco legislation, but created a dangerous precedent, and the office of Attorney General had to act instantly to stop that unfair and threatening action and protect citizens from such acts in the future. |