When Indiana passed new regulations for the liquid used in a smoking alternative known as vaping, Brett McCullough spent more than $70,000 to make sure his company, Hoosier E-Cig Inc., would comply with the law.
Now, he’s out of luck.
He says that’s because his company and dozens of e-liquid producers are being shut out of Indiana by a controversial state law that effectively makes a small security firm in Lafayette the vaping industry’s gatekeeper.
The impact, however, would extend well beyond producers. Retailers who must now find new sources for their product say the few producers who have been approved are charging much more. Ultimately, it is consumers who will have to pay higher prices, they say.
At issue are new regulations passed by state lawmakers in 2015 and revised earlier this year. The rules require any company that wants to produce e-liquid for sale in Indiana to be certified by a security firm by June 30.
The catch: So far only one security firm in the entire country qualifies to perform the work under the law – Lafayette-based Mulhaupt’s Inc. At this point, the company has approved only six producers, shutting out many existing competitors.
http://www.indystar.com/story/news/...dozens-e-liquid-makers-out-industry/86030412/
Now, he’s out of luck.
He says that’s because his company and dozens of e-liquid producers are being shut out of Indiana by a controversial state law that effectively makes a small security firm in Lafayette the vaping industry’s gatekeeper.
The impact, however, would extend well beyond producers. Retailers who must now find new sources for their product say the few producers who have been approved are charging much more. Ultimately, it is consumers who will have to pay higher prices, they say.
At issue are new regulations passed by state lawmakers in 2015 and revised earlier this year. The rules require any company that wants to produce e-liquid for sale in Indiana to be certified by a security firm by June 30.
The catch: So far only one security firm in the entire country qualifies to perform the work under the law – Lafayette-based Mulhaupt’s Inc. At this point, the company has approved only six producers, shutting out many existing competitors.
http://www.indystar.com/story/news/...dozens-e-liquid-makers-out-industry/86030412/
