The Senate Judiciary Committee today voted to approve S. 1147, the Prevent All Cigarette Trafficking Act (PACT Act) by a voice vote.  This Senate action directly follows a successful press conference held by AWMA and other key leaders in the Coalition to Stop Contraband Tobacco on behalf of passage of this important legislation.  AWMA’s most recent study on illegal Internet sales of cigarettes was a centerpiece of the press conference held just two days ago in the Senate and provided tangible evidence as to the growing problem of this tax-evading online cigarette trafficking.
 

AWMA's Ramminger with Senator Herb Kohl (D-WI)

Scott Ramminger, President of AWMA, spoke at the conference on the need for enactment of the PACT Act saying, “the results of this updated AWMA study stunned us and the problem of illegal sales of cigarettes has gotten worse.”

Jon Burklund, incoming Chairman of AWMA also spoke at the press conference on behalf of the distributor community telling those assembled that “from the distributor perspective, every illegal tobacco sale made on the Internet translates into a loss of a legal sale by a law-abiding distributor and retailer via a face-to-face transaction.”  
 

AWMA’s Vice President of Government Affairs, Anne Holloway, called today’s vote in the Senate Judiciary Committee “a real win for distributors” saying that passage of this legislation “will go a long way towards leveling the playing field for our industry and ensuring that these products do not end up in the hands of minors.  Everyone wins with passage of this legislation except the illegal traffickers.”

S. 1147 would close a number of gaps in current federal law regulating “remote” – primarily Internet – sales of cigarettes and smokeless tobacco products.  The PACT Act represents an important opportunity to further protect the legitimate channels of distribution for these products and ensure that age-verification laws are followed.  The measure would also ensure that payment of state and local excise taxes are paid on these remote sales.

S. 1147 – sponsored by Sen. Herb Kohl (D-WI) - must now be considered by the full Senate.  Similar legislation – HR 1476 sponsored by Rep. Anthony Weiner (D-NY) – has already been approved by the House by a wide bipartisan majority.  
 

Representative Anthony Weiner (D-NY)