Vermont Business Magazine Governor Scott on Wednesday vetoed S.18, An act relating to banning flavored tobacco products and e-liquids. In a letter to the General Assembly, he said: "Admittedly, I’ve struggled with this bill, as it seems hypocritical and out of step with other initiatives that have passed into law recently and over time. To be clear, I too feel we have an obligation to protect our children, but it must be balanced in such a way that we honor the rights and freedoms of adults to make decisions about their individual lives. The American Heart Association Vermont strongly opposed his decision.
"From my perspective, this bill is inconsistent with other laws related to legalized substance use. In 2020, the Legislature legalized the commercial sale of cannabis, including edibles and other flavored products, which are now widely available, despite the known risks to youth and their developing brains. Yet, to my knowledge, I’m not aware of an initiative to ban such products, even considering their obvious appeal to minors and negative health impacts," Scott said.
S.18 passed the Senate 18-11, which would not be enough votes to override the veto, and in the House 83-53, which also would not be enough votes to override.
The Joint Fiscal Office estimates that the bill would result in a revenue loss of between $3.0 and $5.4 million in fiscal year 2026 from the January 1, 2026, effective date of the full ban, and between $7.1 and $14.2 million in fiscal year 2027. The revenue loss is split between the General Fund and the Education Fund.
On March 29, Governor Scott signed bills of the following titles:
- H.518, An act relating to the approval of amendments to the charter of the Town of Essex
- H.801, An act relating to the adoption of the charter of the Town of Waterbury
On April 3, Governor Scott returned without signature and vetoed S.18, An act relating to banning flavored tobacco products and e-liquids, and sent the following letter to the General Assembly:
April 3, 2024
Dear Mr. Bloomer:
Admittedly, I’ve struggled with this bill, as it seems hypocritical and out of step with other initiatives that have passed into law recently and over time.
To be clear, I too feel we have an obligation to protect our children, but it must be balanced in such a way that we honor the rights and freedoms of adults to make decisions about their individual lives.
That’s why, in 2019, I signed a bill raising the legal age to buy tobacco or e-cigarette products from 18 to 21 and even increased a tax on some of those products to deter use. In my mind, these were reasonable steps that struck the right balance.
From my perspective, this bill is inconsistent with other laws related to legalized substance use. In 2020, the Legislature legalized the commercial sale of cannabis, including edibles and other flavored products, which are now widely available, despite the known risks to youth and their developing brains. Yet, to my knowledge, I’m not aware of an initiative to ban such products, even considering their obvious appeal to minors and negative health impacts.
In addition, we (the State) allow, and in fact actively advertise and profit from, the sale of flavored alcohol products. We also promote and highlight our distilleries and breweries with all their unique flavors, which has been incredibly successful, not only financially, but also from a branding and tourism standpoint. But it can’t be denied alcohol abuse has been the root cause of many societal challenges.
I’ve found people lose faith in government when policies have these types of inconsistencies, because they contradict common sense.
Furthermore, from a purely practical point of view, these products would continue to be widely available just across the river in New Hampshire, and through online sales.
Regardless of what becomes of this bill, the Legislature should direct the Attorney General and the Department of Liquor and Lottery to further crack down on direct online sales to minors.
In conclusion, I’m not convinced the in-state prohibition of flavored tobacco, e-liquids and tobacco substitutes only, is justified when sales will remain online, and when State law plainly encourages sales of other unhealthy adult products to continue.
Sincerely,
/s/
Philip B. Scott
Governor
American Heart Association Vermont Response
The American Heart Association Vermont strongly opposed Governor Scott’s decision to veto S.18, legislation which would have eliminated the sale of flavored tobacco and prevented thousands of Vermont youth from getting hooked on nicotine.
“The governor’s veto is extremely disappointing,” said Prospero Gogo, M.D., a cardiologist and advocacy committee chair for the American Heart Association-Vermont. “His rationale is that eliminating tobacco and vaping flavors would be inconsistent with other recent policies passed by the state, including legal marijuana and continued availability of flavored alcoholic beverages. The flaw in his argument is that no other legal substance is as addictive and enticing to children, and at the same time causes more suffering, death and cost to Vermonters than inhalational products containing nicotine.
”Signing S.18 into law had the most promise of sparing the state hundreds of millions, or perhaps billions, of dollars in future health care costs while also preventing the scourge of pain and suffering from heart disease, stroke, cancer and lung disease.”
Smoking is the leading cause of preventable cause of death in the U.S. It's linked to about one third of all deaths from heart disease and 90% of lung cancers. More than 1,000 Vermonters die each year due to smoking.
Tina Zuk, Vermont Government Relations Director for the American Heart Association, a global force for longer, healthier lives, issued the following statement today in response to Governor Scott’s veto:
“We’re devastated for Vermont kids that Gov. Scott’s decision put Big Tobacco first. This legislation gave him the opportunity to be a true leader in prevention, to protect public health and to send a message to tobacco companies that our state lawmakers prioritize public health over industry profits. Instead, his veto today will undoubtedly have a profoundly negative impact on the health of Vermont kids and schools.”
“Already, middle schoolers were the largest growing group of vape users, 23% of Vermont high school seniors vape and school officials testified to the significant impact on education flavored tobacco has had as addicted students continually leave classrooms and lose valuable class time because of these highly addictive products.
“The governor appears to have ignored alarming testimony by the Vermont State School Nurses Association that for many Vermont students, addiction to nicotine products has become the priority. Kids are scared and want help and are frightened to feel short of breath and have their hearts racing.
“Flavors, which come in thousands of varieties via e-cigarettes, also appeal to kids. And with e-cigarette use on the rise among our youngest generation, failing to pass this legislation means Big Tobacco continues to hook young people into a lifetime of addiction.
“The price tag of tobacco use in Vermont is also reason enough for the governor to have enacted this important prevention bill. Vermont spends $404 million annually treating tobacco-caused diseases, including $93 million in direct Medicaid expenditures.
“Weeks of testimony before the Vermont legislature on this issue included that the cost of treating coronary heart disease in hospitalized patients in one year at the University of Vermont Medical Center was close to $35 million, with half of coronary heart disease patients being current or former smokers. Tobacco-associated cancer costs the state’s health insurance payors $188 million each year. These costs far exceed the annual tobacco tax revenue Vermont receives of $75 million.
“S.18 would have saved money, saved lives and prevented suffering. Tobacco use remains the leading cause of preventable disease, disability and death in our nation and is linked to about one-third of all deaths from heart disease and 90% of lung cancers. This legislation could have prevented thousands of Vermonters from experiencing tobacco- and nicotine-related diseases and early death.
“While the American Heart Association-Vermont is disheartened by the decision, we remain committed to prioritizing the well-being of all Vermonters and safeguarding the health of our communities so everyone can thrive. We will continue to advocate to remove all flavored tobacco products from the marketplace.”
Vermont Retail & Grocers Association Response
Erin Sigrist, President of the VRGA, sent the following statement: As Vermont's representative of grocery and convenience stores, Vermont Retail & Grocers Association (VRGA) thanks Governor Phil Scott for his veto of S.18. This decision demonstrates a clear commitment to supporting Vermont's regulated system and keeping money within our state. The bill would have banned the sale of flavored vape, tobacco alternatives, and menthol tobacco in Vermont – products which remain available across the border in New Hampshire, and arguably would not have achieved the goal of the bill of keeping these products out of the hands of youth.
While an estimate from the Joint Fiscal Office reported the loss of $7 to 14 million in tax revenues to the state, four of the largest distributors of tobacco in the state remitted more than $26 million in tax revenue on these products in 2023. In addition, retailers remit the 6% sales tax to the state.
Data presented by the Department of Liquor and Lottery shows that with more than a 90% compliance rate, retailers are not the issue. Rather, more than 220 online retailers are illegally delivering tobacco and nicotine products directly to consumers in Vermont. We encourage the Department of Liquor and Lottery to continue their efforts to deny these operations from selling to Vermont youth.
Furthermore, amidst the current economic climate, Vermont is facing proposed tax increases, including substantial hikes in personal income tax, corporate income tax, property transfer tax, and short-term rental surcharges, and at this moment, a 16% increase to property taxes and 20% increase in business property taxes.
In light of these challenging circumstances, Governor Scott's decision to veto S.18 sends a powerful message of support to Vermont's retailers and businesses, especially those who compete for business with neighboring states. We applaud his commitment to preserving our state's economic vitality and ensuring that Vermont remains a favorable place to live and work.
VRGA remains dedicated to working alongside Governor Scott, the General Assembly and other state leaders to address the pressing issues facing Vermont's business community, including supporting retailers in maintaining compliance within the regulatory system and keeping products from being purchased by underage consumers will continue to be part of VRGA’s mission.
The Vermont Retail & Grocers Association represents approximately 750 Vermont businesses. VRGA is an association of merchants and trade partners united to promote the sustainable growth of the industry through the educational, economic and public policy needs of its members.
To view a complete list of action on bills passed during the 2024 legislative session, click here.
