BIG TIME VAPES, INCORPORATED; UNITED STATES VAPING ASSOCIATION, INCORPORATED, Plaintiffs-Appellants, versus FOOD & DRUG ADMINISTRATION; STEPHEN M. HAHN, Commissioner of Food and Drugs; ALEX M. AZAR, II, Secretary, U.S. Department of Health and Human Services, in his official capacity, Defendants-Appellees.
No. 19-60921
United States Court of Appeals for the Fifth Circuit
June 25, 2020
Appeal from the United States District Court for the Southern District of Mississippi
United States Court of Appeals Fifth Circuit FILED June 25, 2020 Lyle W. Cayce Clerk
Before SMITH, HIGGINSON, and ENGELHARDT, Circuit Judges.
The Family Smoking Prevention and Tobacco Control Act1 establishes a thorough framework for regulating tobacco products. Four such products—cigarettes, cigarette tobacco, roll-your-own tobacco, and smokeless tobacco—are automatically subject to the Act. But in section 901 of the TCA, Congress authorized the Secretary of Health and Human Services (“the Secretary“) to determine which other products should be governed by the TCA‘s regulatory scheme. Big Time Vapes, Incorporated,
I.
The facts are not disputed. This appeal turns on a purely legal question: Whether section 901‘s delegation to the Secretary violates the nondelegation doctrine.
A.
In 2009, Congress enacted the TCA, thereby amending the Food, Drug, and Cosmetic Act,
To advance its public-health purpose, Congress established a detailed framework for regulating tobacco. But that statutory scheme did not apply—at least not immediately—to all forms of tobacco. Instead, Congress automatically applied the TCA “to all cigarettes, cigarette tobacco, roll-your-own tobacco, and smokeless tobacco.”3 Section 901 provided that the TCA also would apply “to any other tobacco products4 that the Secretary [of Health and Human Services]5 by regulation deems to be subject to [the Act].”
The TCA imposes several requirements on “tobacco product manufacturers.”6 They must submit to the FDA truthful information about their products, including: (1) “all ingredients, [i.e.,] tobacco, substances, compounds, and additives“; (2) “[a] description of the content, delivery, and form of nicotine in each tobacco product“; and (3) certain information, including manufacturer-developed documents, related to the “health, toxicological, behavioral, or physiologic effects of current or future tobacco products” and their component parts.
Finally, the FDA can impose additional rules by regulation, such as minimum-age restrictions, mandatory health warnings, method-of-sale limits, and advertising constraints. See
B.
In May 2016, the FDA promulgated a rule that “deem[ed] all products meeting the statutory definition of ‘tobacco product,’ except accessories of the newly deemed tobacco products, to be subject to FDA‘s tobacco product authorities under [the TCA].”10 That swept into the TCA‘s ambit several popular tobacco products, including Electronic Nicotine Delivery Systems (“ENDS“).11 The FDA maintained
As a result of the FDA‘s rule, ENDS and e-liquid producers were “subject to all of the statutory and regulatory requirements applicable to [tobacco] manufacturers,” including the TCA‘s reporting, registration, and premarket authorization mandates. Id. at 29,044. The FDA required compliance with some TCA provisions as soon as the Deeming Rule became effective,12 but the FDA indicated that it would not enforce the premarket-review provisions, for products already on the market, for several years following the rule‘s effective date.13 For any new products, however, tobacco manufacturers had to obtain premarket authorization before those products could be sold. Id. at 28,978. Because ENDS technology is relatively young—i.e., there were very few (if any) products on the market before February 2007—ENDS products and e-liquids are effectively required to submit PMTAs. See id. at 28,978–79.
C.
Big Time Vapes, a small-business manufacturer and retailer of e-liquids, and the United States Vaping Association, an ENDS industry trade association, sued the FDA, contending that the TCA unconstitutionally delegated to the Secretary the power to deem tobacco products subject to the Act‘s mandates. The plaintiffs requested, inter alia, (1) a declaration that section 901 violates the nondelegation doctrine and (2) an injunction preventing the FDA from enforcing the TCA against them.
Shortly after filing suit—and in response to a forthcoming change in federal enforcement strategy—the plaintiffs
The district court found no nondelegation violation and dismissed the suit. The court determined that Congress had articulated a sufficiently intelligible principle—specifically, “a desire to protect the public health and to prevent, to the extent possible, underaged persons from having access to tobacco products“—for the delegation to pass constitutional muster. Moreover, the court concluded that the FDA‘s power was adequately constrained, because (1) “Congress . . . restricted the FDA‘s discretion with a controlling definition of ‘tobacco product,‘” and (2) “Congress, itself, designated certain tobacco products as governed by the TCA and presented detailed policies behind its enactment of the TCA.” The court naturally denied a preliminary injunction. The plaintiffs appeal.
II.
We review
A.
“All legislative Powers herein granted shall be vested in a Congress of the United States.”
But that seemingly inflexible constitutional text has long been recognized to be somewhat pliable.14 “The Constitution has never been regarded as denying to the Congress the necessary resources of flexibility and practicality to perform its function.” Yakus v. United States, 321 U.S. 414, 425 (1944) (ellipsis omitted). Delegations are constitutional so long as Congress “lay[s] down by legislative act an intelligible principle to which the person or body authorized [to exercise the authority] is directed to conform.” J.W. Hampton, Jr., & Co. v. United States, 276 U.S. 394, 409 (1928). It is “constitutionally sufficient
if Congress clearly delineates the general policy, the public agency which is to apply it, and the boundaries of th[e] delegated authority.” Am. Power & Light Co. v. SEC, 329 U.S. 90, 105 (1946).
“Those standards . . . are not demanding.”15 Even though Congress has delegated power to the President “[f]rom the beginning of the government,”16 the Court did not find a delegation of legislative power to be unlawful until 1935, when the Court declared two to be unconstitutional. See Pan. Ref. Co. v. Ryan, 293 U.S. 388, 433 (1935); A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495, 542 (1935). But the Court has not done so in the nearly nine decades since17 and, instead, has long defended “Congress‘[s] ability to delegate power under broad standards.”18 In fact, the Court has “almost never
That does not mean, however, that we must rubber-stamp all delegations of legislative power. Indeed, “[w]e ought not to shy away from our judicial duty to invalidate unconstitutional delegations“; “[i]f we are ever to reshoulder the burden of ensuring that Congress itself make the critical policy decisions, these are surely the cases in which to do it.”19 In that spirit, several Justices
B.
“[A] nondelegation inquiry always begins (and often almost ends) with statutory interpretation,” because we need “to figure out what task [the statute] delegates and what instructions it provides.” Gundy, 139 S. Ct. at 2123 (plurality). Our task should not be limited to the text alone—when evaluating whether Congress laid down a sufficiently intelligible principle, we‘re meant also to consider “the purpose of the [TCA], its factual background[,] and the statutory context.”21 “That non-blinkered brand of interpretation” generally bodes well for delegations. Id. at 2126.
In the TCA, Congress delegated to the Secretary the power to “deem” which tobacco products should be subject to the Act‘s mandates. See
We disagree. Recall that it is “constitutionally sufficient if Congress [(1)] clearly delineates [its] general policy, [(2)] the public agency which is to apply it, and
1.
Congress undeniably delineated its general policy in the TCA. The plaintiffs improperly discount other materials that we must consider, namely the TCA‘s purpose and the relevant factual background.23 Both factors support upholding section 901‘s delegation.
Start with statutory purpose. The plaintiffs suggest that the TCA‘s purposes are “various and diverse,” so much so that they “are in actual tension with one another.” To come to that conclusion, the plaintiffs essentially ignore Section 3 of the TCA, which is aptly labeled “PURPOSE.”24
In that section, Congress stated that the TCA was meant “to ensure that the [FDA] has the authority to address issues of particular concern to public health officials, especially the use of tobacco by young people and dependence on tobacco.” TCA, § 3(2), 123 Stat. at 1781. Another purpose was “to provide new and flexible enforcement authority to ensure that there is effective oversight of the tobacco industry‘s efforts to develop, introduce, and promote less harmful tobacco products.” Id. § 3(4), 123 Stat. at 1782. And still two more purposes were “to impose appropriate regulatory controls on the tobacco industry” and “to promote cessation to reduce disease risk and the social costs associated with tobacco-related diseases.” Id. § 3(8)–(9). Obviously, the TCA‘s purpose sounds in (1) protecting public health and (2) preventing young people from accessing (and becoming addicted to) tobacco products.
That purpose was informed by Congress‘s extensive fact-finding. See id. § 2, 123 Stat. at 1776–81. Congress concluded that, for several reasons, tobacco products posed a significant risk to children: (1) “[T]obacco products are inherently dangerous and cause cancer, heart disease, and other serious adverse health effects“; (2) “[n]icotine is an addictive drug“; (3) “[v]irtually all new users of tobacco products are under the minimum legal age to purchase such products“; and (4) “[t]obacco
Congress‘s stated purposes in legislating, undoubtedly identify a “general policy” for the Secretary to pursue.
2.
Likewise, Congress plainly limited the authority that it delegated. Far from giving the Secretary carte blanche, the TCA cabined its delegation in two important ways.
First, and critically, Congress enacted a controlling definition of “tobacco product,” which necessarily restricts the Secretary‘s power to only products meeting that definition. See
And second, Congress restricted the Secretary‘s discretion by making many of the key regulatory decisions itself. See Ambert, 561 F.3d at 1214. Among myriad other things, the TCA requires tobacco manufacturers to submit comprehensive data about their products’ ingredients (including nicotine) and health effects. See
3.
The relevant caselaw drives those conclusions home. It bears repeating: The Court has found only two delegations to be unconstitutional. Ever. And none in more than eighty years. See Pan. Ref., 293 U.S. at 433; Schechter, 295 U.S. at 542. Considering those decisions, it‘s evident that we confront nothing similar here. Instead, the TCA‘s commission to the Secretary mirrors the delegation to the Attorney General of the Sex Offender Registration and Notification Act (“SORNA“), which the Court approved just last year. See Gundy, 139 S. Ct. at 2121 (plurality).
In Panama Refining and Schechter, the Court invalidated two of the National Industrial Recovery Act‘s delegations to the President. In Panama Refining, 293 U.S. at 406, the Court considered Section 9(c), which authorized the President “to prohibit the transportation in interstate and foreign commerce” of certain petroleum products. And Schechter, 295 U.S. at 521–22, evaluated Section 3, which empowered “the President to approve ‘codes of fair competition‘” that were submitted by “one or more trade or industrial associations or groups.” NIRA outlined exceedingly broad legislative purposes, including (1) “remov[ing] obstructions to the free flow of interstate and foreign commerce,” Pan. Ref., 293 U.S. at 418, and (2) disfavoring “monopolies [and] monopolistic practices,” Schechter, 295 U.S. at 523. But in both cases, Congress erected no guide rails to limit how the President should exercise his authority.27
The Court found both delegations to be unconstitutional. See Pan. Ref., 293 U.S. at 433; Schechter, 295 U.S. at 542. That‘s not surprising, given that NIRA placed almost no limits on how the President—and in Schechter‘s case, private groups—could wield their delegated authority. Section 9(c) “provided literally no guidance for the exercise of discretion,” and Section 3 “conferred authority to regulate the entire economy on the basis of no more precise a standard than stimulating the economy by assuring ‘fair competition.‘” Am. Trucking, 531 U.S. at 474.
By contrast, the TCA‘s delegation to the Secretary is circumscribed, and Congress provided far more signposts to direct the exercise of the authority it delegated. The TCA‘s targeted statements of purpose and voluminous fact-finding make that incontrovertible.
Instead, the TCA‘s deputizing of the Secretary mirrors SORNA‘s delegation to the Attorney General. In enacting SORNA,
The Attorney General shall have the authority to specify the applicability of the requirements of this subchapter to sex offenders convicted before the enactment of this chapter . . . and to prescribe rules for the registration of any such sex offenders . . . .
In all material respects the TCA‘s statutory scheme parallels SORNA‘s. Both SORNA and the TCA established detailed regulatory frameworks that automatically applied to certain classes of persons or products. In both statutes, Congress delegated to an executive branch official the power to determine whether those requirements applied to other non-covered classes. And in both instances, Congress outlined specific purposes to inform the executive officer‘s exercise of the discretion so afforded. Although a less-than-full-strength Court fractured in Gundy, five Justices elected to affirm SORNA‘s delegation.29 Those votes compel our affirmance here.
* * * * *
The Court might well decide—perhaps soon—to reexamine or revive the nondelegation doctrine. But “[w]e are not supposed to . . . read tea leaves to predict where it might end up.” United States v. Mecham, 950 F.3d 257, 265 (5th Cir. 2020), cert. denied, 2020 WL 3405899 (U.S. June 22, 2020) (No. 19-7865). The judgment of dismissal is therefore AFFIRMED.
