TOB Magazine

APRIL 15, 2011 MARKED a special mo-

ment in the political history of the premium

cigar industry. It was the day U.S. Congress-

man Bill Posey of Florida filed the Tradition-

al Cigar Manufacturing and Small Business

Jobs Preservation Act for the first time. It was

a spring day, almost five years ago to the day

as I write this. He has done so now for four

sessions of Congress.

What makes this act so unique is not just its

purpose of protecting premium handmade ci-

gars from draconian regulations proposed by

the U.S. Food & Drug Administration, and not

just to dramatize how the agency went well

beyond Congressional intent in advancing

the rule. It was that the very filing of the act

marked the first time the premium cigar indus-

try went on political offense.

Normally, and historically, the industry

had to react to legislative threats. These

ranged from local and state tax and smoking

ban measures to the tax proposal to fund the

federal State Childrenʼs Health Insurance

Program (SCHIP), which served as an indus-

try wake-up call.

April 15, 2011 was different. It was the day

premium cigar makers said, “We are different.

We don’t deserve what they’re planning—and

we’re not taking it lying down. It’s time to

make our case.”

Since that day, 289 different members of the

U.S. House of Representatives and 28 mem-

bers of the U.S. Senate have signed legislation

calling for an exemption for premium hand-

made cigars that meet a strict definition (over

60 of whom voted for the original Tobacco

Control Act). More than 35 letters, either from

individual members or joint letters, proclaim-

ing support for this position have been sent to

the former Administration, the new Admin-

istration and to multiple agencies within the

federal government.

But what has been the result? Foes of this

strategy say “not much,” questioning the ex-

pense and time into the effort. I beg to differ

for one major reason—it created a standing

record of legislators upon which to build a

network of advocates that now know that we

are different. This network can work to ad-

dress issues well into the future, and can assist

in conveying the serious concerns the industry

has with the FDA regulatory process.

Without the process and strategy that has

been executed over the last five years, we

would not have known that the current Vice

President of the United States, U.S. Secre-

tary of Health & Human Services and White

House Director of the Office of Management

& Budget could be allies, by virtue of signing

onto this legislation during their service in the

House of Representatives. Without the strat-

egy of the last five years, we would not have

known that Democrats and Republicans alike

could come together not on a “tobacco bill,”

but on a bill that has enabled the industry to

articulate its small business, family-driven,

artistic and cultural foundations.

This process has compelled the industry to

also take a deeper look at itself. It has allowed

for the accumulation of information virtually

unrealized before on the economic signifi-

cance of the sector, especially in key states such

as Florida, Pennsylvania, Connecticut, Louisi-

ana and Nevada, and the base of brand own-

ers that are incorporated in California, Texas,

New Jersey, Kentucky and Virginia.

It has allowed for the building of coali-

tions nonexistent before that April day of

2011, with special interests never before ap-

proached by the industry for political support

ranging from chambers of commerce, retail

merchants organizations, local governments,

mayors, farmers, ports and truckers, just to

name a few.

Conveying the threat of the regulations to

members of Congress has also allowed for the

discussion on the economic significance of the

industry in the very economically and politi-

cally fragile region of Latin America, where

investment and employment by the industry

directly contributes to stability of governments

and families alike.

Stories have long circulated about the ef-

fort to mitigate the threat of the SCHIP taxes.

Rocky Patel and Jeff Borysiewicz have stated

that they hit the halls of Congress, “talking to

anyone willing to listen.” It’s come a long way

since 2007.

Now, language has been included in four

appropriations measures in the U.S. House

of Representatives proclaiming that premium

cigars are unique and that they are not what

Congress intended when addressing tobacco

control. In April of 2016, the House actual-

ly said, “None of these funds made available

may be used to finalize, implement, admin-

ister or enforce the proposed rule…if such

rule applies to traditional large and premium

cigars.” That’s progress: Now we just have

to get it through the Senate and off to The

White House.

There are legislative measures that take

years to work through the process, if you can

call it that. Recently I had that discussion with

some advocates for other causes—covering the

elimination of the “death tax” and regulations

on the energy sector, as well as the eternal

debates on health care, education and tax re-

form. Premium cigars are now in that mix.

It all goes back to the proverbial Washington

statement, “If you’re not at the table, you’re on

the menu.” Now that the premium cigar sector

has a standing presence in the halls of Con-

gress, it will always be “at the table.”

The issue is patience. The level of nervous-

ness and anticipation within the industry due

to the impending rules is quite understand-

able. However, 2017 represents the most deci-

sive moment since this journey began to pro-

tect this industry from the heavy hand of an

unsympathetic bureaucracy.

Whether through the Administration, Con-

gress or the courts, the virtue of a five-year leg-

islative and advocacy movement will hopefully

prove to be a most wise investment.

CRA CORNER

[ GLYNN LOOPE ]

[ 10 ]

TOBACCO BUSINESS

[

MAY

JUNE

17 ]

The Virtue of a

Legislative Record

Glynn Loope is

executive director

of Cigar Rights

of America.