Distributors Seek Answers from FDA on Tobacco Law Enforcement during Day on the Hill
AWMA Day on the Hill Group 2010
2010 AWMA's Day on the Hill attend a breakfast at the Capitol Hill Club and hear from FDA Compliance Director, Ann Simoneau.
Oklahoma Delegation and Sen. Tom Coburn
The Oklahoma delegation, Dick & Donna Dunham, Stephanie & Corey Cooper, and Rick Bahlinger meet with Senator Tom Coburn (R-OK) center.
Rep. Paul Ryan and Chad Owen
Chad Owen meets with Rep. Paul Ryan (R-WI) at the 2010 AWMA's Day on the Hill.
Rep. Schock and AWMA Members
AWMA members from Illinois and Wisconsin, Mike Gold, Jon Burklund, Chad Owen and Bob Friedman meet with Rep. Aaron Schock (R-IL) center.
Publish Date:
May 13, 2010
A top FDA official charged with enforcing provisions of the new law giving her agency the power to regulate tobacco was unable yesterday to tell distributors whether they would be allowed to sell-through products that they receive from manufacturers prior to key deadlines imposed by the new law.
The Family Smoking Prevention and Tobacco Control Act signed by President Obama last June includes a provision that becomes effective on June 22, when manufacturers must stop manufacturing cigarette and smokeless tobacco products that carry package descriptors such as “Light,” “Mild” or “Low” and cease shipping them on July 22, explained Ann Simoneau, acting director for compliance at FDA.
However, when asked by AWMA President & CEO Scott Ramminger if distributors would be allowed to “sell through” products they received prior to July 22, Simoneau said her agency’s legal experts were considering that question. Simoneau spoke at the opening breakfast for the Day on the Hill event.
Ramminger pointed out that the law and regulations clearly state that such products that are in the pipeline can be sold and replaced by new products that do comply with the law. He said FDA’s position needs to be made clear without further delay so distributors can meet the requirements.
Distributors attending the session were disappointed with the lack of specificity provided by Simoneau regarding this and other key questions. But the official said the agency was responding as quickly as possible and would make its decisions known once they are made.
“We’re the good guys here, and we want to make sure we comply with all of the regulations,” said Ramminger. “But the fact that this deadline is only a month away and you do not have definitive answers is troubling to say the least.”
Those concerns were reflected in many of the meetings by AWMA members with members of the House and Senate as they advised lawmakers of the FDA’s inability to provide information regarding products that are a key component of their businesses.
“They don’t have any answers,” Hugh Raetzsch, Jr., Lyons Specialty Co., LLC, told Sen. David Vitter (R-LA). “I’ve got inventory that will take longer than one month to get sold.”
Vitter said he would try to help, including signing a possible “Members’ Letter” to the FDA seeking guidance. Numerous other lawmakers said they would consider signing such a letter as well. Ramminger indicated that AWMA would be following up directly with FDA for accurate guidance to provide members.
Other major issues discussed during the meetings included opposition to the Employee Free Choice Act, or “Card Check” bill, which would replace the current private ballot with a “card check” process, allowing a union to organize if a majority of workers simply sign a card. Also discussed in the meetings was AWMA’s support for repeal of the estate tax.
The news regarding “card check” was uniformly good for AWMA members, who were told by numerous lawmakers that the measure is unlikely to be passed in the current Congress.
“I don’t think they can bring it up,” Rep. Mike Simpson (R-ID) told Joseph Noorda, Gem State Distributors, Inc. “It tips the balance too far. Our job is to keep a level playing field between labor and business. My guess is they don’t have the support in the Senate.”
“I think we can hold the line in the Senate until November, and then after that the situation will be better with regards to the gap between Republican and Democrat votes,” Vitter told Raetzsch.
Regarding the estate tax, lawmakers said it is unlikely that the levy will be repealed, but indications are that a compromise Senate measure that calls for a 35% tax on individual estates of $5 million or more may succeed.
“Estate tax relief is huge,” Terry Goddard, Pine State Trading Co., told Cassie Mann, a legislative aide for Rep. Chellie Pingree (D-ME). “I have worked with three generations of the family that owns our company and I know how difficult it would be for them to have to pay that tax. I would hate to see their capital have to be lost. It could kill the company.”
“We’re trying to work the best permanent deal that we can before it increases again,” Vitter said.
Some 25 AWMA members fanned out over Capitol Hill for some 90 individual meetings with lawmakers and key staff persons, seeking to gain their understanding and support regarding major issues of concern.
Numerous lawmakers thanked them for taking the time to let them know how their decisions in Washington affect their businesses.
“It’s important that you are here,” Rep. John Boozman (R-AR) told Paula Glidewell, Glidewell Distributing Co., Inc. “It’s important for people to come in and let us know about their concerns and how things we do here affect them.”
AWMA’s vice president of government affairs, said “AWMA wants to thank our members who participated in this important program as they represent the most effective lobbyists our association can muster and we look forward to see them back year next year with even more members.”