Our 83rd Annual Meeting from November 7th – 9th at the Breakers Resort in Palm Beach, FL

At this year’s annual meetings of the Cigar Association of America, members heard about the challenges and opportunities facing the industry, at the close of an eventful year.  Joining the gathering was the Pipe Tobacco Council, which also held its annual meeting, and participated in events.

The setting – the Breakers Resort in Palm Beach, Florida – couldn’t have been more conducive to enjoying fine cigars and discussing important industry issues – and celebrating with industry colleagues and guests.

An educational part of the conclave included presentations by CAA’s federal lobby team on the ever-changing political landscape and how members will be impacted.  Other presentations included key topics affecting the industry, particularly FDA regulation of the cigar industry.  There was extensive discussion on questions including the current status of premarket review requirements and on the practical, logistical, and financials concerns looming over possible HPHC testing.

Elected to a third term as Chairman was Javier Estades, president of Tabacalera USA  “Thankfully, through our long-term planning, strategic thinking and teamwork, our unity as an industry is paying dividends,” he said summarizing the year for members and guests gathered at the historic resort.

CAA’s President Craig Williamson shared with members how CAA continues to be a leading advocate on behalf of its members by opposing unfair and unreasonable federal and state legislation that would negatively impact the cigar industry.

“Our work this year has taken us from statehouses to courthouses to the White House, Williamson said. “I also want to acknowledge the unbelievable help we’ve received from many friends across the country.” “We are not alone in this fight,” he said.

2019 CAA State Legislative Year in Review & 2020 Outlook

CAA had a big hand in defeating a number of serious legislative threats in 2019, and the association expects 2020 to be challenging on several fronts.  Legislators in 21 states proposed cigar tax increase and all but one tax increase – in Maine – was defeated. While 2020 is an election year, and elected officials tend to shy away from passing hire taxes the same year they face voters, CAA expects to face tax challenges ahead.

Proposed nexus legislation is another threat to cigar makers.  In short, nexus legislation generally requires an out-of-state retailer to collect and remit sales tax once the retailer meets a set level of sales transactions or gross receipts activity (a threshold) within the state.  No physical presence is required.  While 42 states have a nexus standard in place, only Kansas, Missouri, and Florida have yet to enact such a standard for remittance of state sales tax.  CAA is working to ensure that any efforts to require online retailers to collect and remit state taxes are constitutional and are done in the least burdensome way possible.

Bills that would have banned the sale of flavored tobacco products, including cigars and pipe tobacco, were proposed in California, Connecticut, Florida, Hawaii, Maine, Montana, New Mexico, New York, and Utah.  In each of these states, the proposals were actively opposed by CAA and were defeated.  Only Massachusetts passed such a ban.  Bills that would have unreasonably restricted the sale of certain cigar and pipe tobacco products were also defeated in Hawaii, New Jersey, and New York.

Bills that would have further restricted the ability to smoke in cigar bars, retail tobacco shops and other public spaces were defeated in Colorado, Connecticut, Florida, Oklahoma, and Tennessee.  A bill requiring the licensing of out-of-state retailers of tobacco in Montana was defeated, with opposition from CAA.  It should be noted that the Colorado bill as introduced would have eliminated the exemption to the Clean Indoor Air Act for cigar bars and retail tobacco businesses; tobacco retailers in Colorado were instrumental in defeating that provision.

With the continuing national focus on vaping and e-cigarettes, the industry can expect to see a significant number of states focusing on flavor legislation, not just on vapor products but all tobacco products as well.

“CAA is ready to meet the challenges ahead in 2020 and beyond by continuing to pursue its vision of ensuring that there is a strong, vibrant, and growing cigar industry for the years ahead,” said Estades, CAA’s chairman.