Tobacco Business

[ 22 ] TOBACCO BUSINESS [ MARCH / APRIL | 21 ] T LEGISLATION / CIGAR ASSOCIATION OF AMERICA The 2021 state legislative season is now officially upon us. Barely two weeks into the year, with most states just now convening for formal session, it is obvious that this year will be unlike any other. Each state is tasked with completing their constitutionally mandated requirements to meet in formal session and adopt balanced state budgets, all while dealing with the unprecedented challenges created by the COVID-19 pandemic that continues to wreak havoc across large parts of the country. It is too early in the legislative sessions to fully determine how much attention will be given to issues that lie outside of those that are consti- tutionally mandated. However, early indications suggest that the tobacco industry can expect to be dealing with legislative challenges across many of the states. In just the first two weeks of 2021, bills banning the sale of flavored tobacco were introduced in Connecticut, Indiana, New York, Oregon and Vermont, and in Maryland a flavor ban bill was scheduled for the state’s first committee hearing on Jan. 28, 2021. With more than 18 states considering flavor bans in 2020, and California passing a full flavor ban in the middle of last year, it can be expected that the industry will see state legislatures continue to look at this issue. Many states continue to suffer large budget shortfalls caused by the pan- demic. In almost all states, the formal adoption of the state budget is the last work completed before the end of their session. It will be at this time where the real threat for tobacco excise tax increases will surface. Bills that would allow local governments to regulate—or, to put it more accurately, prohibit the sale of tobacco products—have been introduced in Kentucky and are expected to surface in other states this year. New York is another hotbed of anti-tobacco legislation. So far, proposals that would impose massive excise tax increases on all tobacco products have been introduced, along with pack size restrictions, flavored tobacco bans and proposals to further restrict smoking that would even include smoking in private residences. Connecticut as well as other states will once again con- sider bills that would ban the sale of tobacco in pharmacies and at other retail outlets. Legislators in New Jersey are proposing to require tobacco retailers to also offer for sale tobacco cessation products whether they want to carry them or not. Given the sheer volume and wide-ranging scope of anti-tobacco legisla- tion introduced so early in the year, it is clear that many challenges remain ahead for the cigar and pipe tobacco industry. We at the Cigar Association of America, along with the support of our members and other industry stakeholders, will continue to fight to defeat these business and job-killing legislative proposals. TB 2021 State Legislative Season: What’s to Come Cigar Association of America (CAA) takes a look at upcoming bills and legislation that will impact tobacco businesses at the state level this year. Contributed by Craig Williamson, President, Cigar Association of America