© 2007 Exposures, LTD. - www.exposuresltd.com AWMA President Scott Ramminger outlined the new realities on Capitol Hill facing the convenience distribution industry.

• Opposition to legislation proposed by Sen. Edward M. Kennedy(D-MA) and Rep. Henry Waxman (D-CA) to give the Food and Drug Administration (FDA) jurisdiction over tobacco.
• Opposition to proposed regulations by the federal government to define "little cigars" in an effort to prevent companies from avoiding higher federal taxes imposed on cigarettes.
• Opposition to state legislation to require the sale of low ignition propensity (LIP) cigarettes.
• Legislation to crack down on the illegal sale of cigarettes over the Internet.

Noting that Kennedy and Waxman, "probably the most vocal anti-tobacco people in Washington," have teamed up to propose FDA regulation of tobacco products, Ramminger said AWMA is "uncategorically opposed," and is working with the National Association of Convenience Stores (NACS) and other groups to fight that legislation.

"Having worked in Washington for 25 years, I’m baffled why anybody in our industry would think they would get a fair bill out of this Congress with Kennedy and Waxman in charge," Ramminger said.

He said proposed federal regulations to prevent cigarettes from being sold as little cigars have been poorly drafted and would effectively wipe out the little cigar category. "We need to make sure that we don’t punish makers of legitimate little cigars—and that no unreasonable burdens are imposed on distributors," he said.

Ramminger said five states have adopted New York’s initial law mandating that only LIP cigarettes be sold in that state, but cautioned that others might attempt to enact more stringent legislation. That, he said, would place undue burdens on distributors who would be forced to carry multiple inventories in order to comply with varying state requirements. If a federal law is enacted, it should supersede the state laws so there is only one standard to be met, Ramminger added.

Regarding Internet cigarette sales, Ramminger said some 15 percent of all U.S. tobacco sales in the U.S. will come from the Web this year, and that 2005 Internet tobacco sales exceeded $5 million.

He said FedX and UPS have voluntarily agreed to stop delivering Internet tobacco products, but that the U.S. Postal Service still delivers them. AWMA is supporting legislation to strengthen reporting requirements for interstate cigarette sellers and increase the criminal penalties for violations. The measure would prohibit the USPS from delivering tobacco products.

To help AWMA contend with those and other issues, Ramminger urged members to attend the Day on the Hill, when distributors will be able to meet directly with Congressmen, Senators and key staff members.

"There is no substitute for bringing constituents to town who Congressmen have to look in the eye and explain why they are going to vote for something that would be harmful to their businesses," he said.

For more information on attending the AWMA REAL DEAL EXPO, contact customer service at either 800-564-4220 or 703-449-6418 or awmaregistration@jspargo.com