2019 PCA Magazine

PREMIUMCIGARS.ORG JULY-AUGUST 2019 | PCA The Magazine 11 N E W S + N O T E S robust age verification procedures are in place. — • This FDA announcement was driven by a growing focus on preventing youth access and use of tobacco and nicotine products. As the premier organization representing premium tobacco manufacturers, tobacconists and customers, PCA remains proud that our retail members are ardent enforcers of federal, state and local age and ID requirements. This is reflected in government data that PCA shared with the FDA showing only .02 percent of all youth (17 and younger) surveyed had recently smoked a premium cigar. PCA will continue pressing the FDA to ease the ineffective restrictions on premium cigars and the people who sell them, and urge the FDA to focus its resources on objectives that actually benefit the public health. PCA Submits Comment to FDA Draft Guidance In May, the PCA submitted a comment to the FDA Draft Guidance: “Modifications to Compliance Policy for Certain Deemed Tobacco Products”, which proposes to modify the current compliance policy in several significant respects for certain electronic nicotine delivery systems (ENDS) and flavored cigar products. The PCA position states that: • The current FDA approach to flavored tobacco products will not achieve the desired outcome of keeping tobacco and nicotine products out of the hands of teenagers; • The definition of “flavors” is entirely too vague and is therefore impossible to understand or comply with; • The change of product sell through time (for those products that do not meet the standards) is much too short at 30 days, as premium products average over 100 days to sell. — For the full comment, visit ipcprlegislative.org . STATE BRIEFING Status of Proactive Legislation New Mexico Governor Michelle Lujan Grisham signed into law House Bill 6, which includes a tax cap of $0.50 per cigar. This legislation provides much needed tax relief to PCA members and will help retail tobacconists grow their businesses. The new law will go into effect on July 1, 2019. PCA thanks our members who stepped up to help move this legislation forward. Arizona Governor Doug Ducey signed into law Senate Bill 1347 This legislation was initiated by PCA to address an issue with how the Department of Revenue was categorizing cavendish pipe tobacco. Because of the State’s mischaracterization, many cavendish products were being taxed the higher pipe tobacco rate. The adoption of a clear definition will allow these products to be taxed at the appropriate luxury rate. This measure will go into effect on July 26, 2019. Status of 18 to 21 Age Increase Legislation Currently Hawaii, California, New Jersey, Oregon, Maine and Massachusetts have a tobacco age restriction of 21 in place. Arkansas, Delaware, Illinois, Utah, Washington, Maryland, Vermont and Virginia will become 21 in the future with effective dates ranging from later in 2019 through 2021. Age increase bills in Texas and New York passed and have been sent to their respective governors for a signature. 18