Holloway Prepares Members for Day on the Hill

AWMA’s Anne Holloway, vice president of government affairs, briefs AWMA distributor members about the issues for the Day on the Hill.

Susie Douglas Munson Introduces Rep. Griffin

Susie Douglas Munson, Douglas Companies, Inc. introduces her friend and breakfast speaker, Congressman Tim Griffin (R-AR).

Rep. Griffin Speaks at Day on the Hill

Rep. Tim Griffin (R-AR) addresses the AWMA distributor members about the issues facing Congress in today’s environment and the 2012 election.

Dave Riser Addresses AWMA Members During Breakfast

Dave Riser, R.J. Reynolds Tobacco Company, the sponsor of the Day on the Hill Breakfast at the Capitol Hill Club thanks the group for their industry support before leaving for their appointments.

2011 AWMA Day on the Hill Team

AWMA’s 2011 Day on the Hill team in front of the Capitol Hill Club just before heading up to the R.J. Reynolds sponsored breakfast.

Casper and Guthrie Talk About Serious Issues

Charlie Casper, Mydad, Inc. dba Hardec's, meets with Congressman Brett Guthrie (R-KY) to discuss the repeal of the healthcare law.

Gummer and Tiberi Meet at Day on the Hill

Rep. Patrick Tiberi (R-OH) shakes hands with Chad Gummer from Gummer Wholesale, Inc. after talking about various industry issues.

Senator Collins and the Group from Maine

2011 AWMA Chairman Keith Canning and Gena Canning, Pine State Trading Co. and one of their retail customers, John Babb of J & S Oil, talks with Sen. Susan Collins (R-ME).

Members of the U.S. Congress received a strong and clear message from convenience distributors on Thursday, May 12:  fix health care reform, don’t increase tobacco and excise taxes and control regulators who are misinterpreting a good law that they fought hard to enact.

AWMA arranged the more than 50 meetings across Capitol Hill giving distributors the opportunity to let lawmakers and their top aides know how governmental actions directly impact their ability to successfully manage their companies that pay taxes into their communities and keep people employed.

“We were able to meet with our representatives and their key staff people and gain an understanding of the system and how we can influence it,” said AWMA Chairman Keith Canning, Pine State Trading Co., as AWMA’s annual Day on the Hill fly-in neared its conclusion. “To spend a day like this that is devoted totally to building business relationships is invaluable. Will I do it next year? Absolutely.”

Canning and other distributors were particularly impressed with two young Congressmen who spoke to them during the event – Rep. Devin G. Nunes (R-CA), 38, who addressed a dinner meeting Wednesday evening and Rep. Tim Griffin (R-AR), 43, one of the new freshman Republicans swept into office last November. Both are committed to slashing the federal deficit.

After AWMA board member Susie Douglas Munson, Conway, AR, introduced Griffin to the group Thursday morning, he stressed the important connection between reducing government spending and increasing employment. “We are slowly turning the battleship around,” Griffin said. “I know we are making a difference.” The “culture” on Capitol Hill has changed since the election, said Griffin, noting that consensus now exists on the need to cut spending, with differences now centered around what can be cut and how much.

In their meetings with both Congressmen and Senators, distributors expressed strong opposition to legislation that would fund health programs by increasing the federal excise tax on tobacco. Lawmakers and aides alike indicated that the measure, sponsored by Sen. Tom Harkin (D-IA), has virtually no chance of passage in this Congress.

“They are killing the goose that lays the golden egg,” warned Butch Dichiara, City Wholesale Grocery Co. “It will simply increase black market activity, and the federal government will be missing out because those people don’t pay taxes.”

Dave Riser, vice president external relations and trade marketing at R.J. Reynolds Co., sponsor of the morning breakfast, also cautioned that numerous states and local governments are considering increased tobacco taxes as a way out of their budget difficulties and urged distributors to establish relationships with state and local officials as well.

“The states and cities are the new frontier for the ‘anti’s’,” said Riser. “Get to know your city council members and state legislators. “They don’t know what this industry is about and they are being pushed by the ‘anti’ groups.”

Anne Holloway, AWMA’s vice president of government affairs, underlined the importance of this annual congressional lobbying event.  “Participation in the political process is critical to our industry’s future.  We really appreciate the AWMA members who take time out of their busy schedules to do this heavy lifting on behalf of the industry.”

Distributors also found agreement from many lawmakers on their position against increases in the estate tax, which will occur if the package of tax reductions enacted under President Bush is allowed to expire at the end of next year. One GOP Senate staffer pointed out in a meeting with Dick Dunham, Stephenson Wholesale Co. Inc., and other AWMA members from Oklahoma that the issue will be debated during next year’s Presidential election campaign. President Obama supports allowing those cuts to expire.

Meanwhile, distributors who urged lawmakers to overturn the new health care reform law were reminded by GOP Congressmen with whom they met that the House approved repeal, but that it will not be passed by the Senate nor signed by the President. However, those lawmakers pledged to continue to oppose implementation of specific provisions, noting that many will not take effect until 2013, so the 2012 election will be especially important.

Some distributors emphasized to lawmakers and their aides some specific ways that the new law could adversely affect their businesses, including placing unworkable restrictions on self-funded plans that have been established to provide effective employee health care.

Also on their agenda was an apparent trend in some states to impose new reporting requirements on distributors who sell tobacco products as a result of the new Prevent All Cigarette Trafficking Act (PACT), which AWMA supported as a means of ending unfair price competition from Internet sellers that do not pay state or excise taxes on the products they sell.

Numerous lawmakers agreed to consider signing a letter developed by AWMA to the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), advising them that the law was not intended to require lawful distributors to file additional and duplicative reports.

The problem has occurred in just a few states so far, explained AWMA President & CEO Scott Ramminger, but distributors want to be sure Congress is aware that the well-intended law, which has reduced internet tobacco sales, may be having unintended consequences that need to be addressed.

That effort to educate was a big part of the AWMA Day on the Hill, which provides an opportunity for distributors to create relationships with lawmakers and their key staff members so they have allies when needed in the future.

“You don’t wait until your house is on fire to contribute to your local fire department,” said Ramminger. “You don’t want to wait until you have a crisis to go and see your legislator. That’s what Day on the Hill is all about.”