ALEXANDRIA, VA -- Congress is scheduled to return to Washington next week in time for the President’s State of the Union Address. Topping the agenda, however, are leadership elections in the House of Representatives and continued debate about lobbying reform.
By this time next week, we will know who the new Majority Leader of the House is. In addition, if Rep. Roy Blunt (R-MO), who is currently serving as Majority Whip and interim Majority Leader, wins that election, a new Majority Whip will take over. NACS has maintained good relations with each of the leading candidates in the election, and is simply waiting to see who will be steering the agenda for the rest of the year.
What is unlikely to happen next week, however, is resolution of the lobbying reform issue. This week, Senate Republicans suggested establishing a bipartisan panel to develop a reform proposal, which Senate Democrats rejected immediately. Such conflict within the body may compromise the Senate’s ability to reach resolution on the issue. Meanwhile, the Speaker of the House is trying to finalize a reform package. What a reform package might entail remains to be seen.
Last week, we mentioned that a reform proposal offered by Rep. Mike Rogers (R-MI) would effectively close the Indian loophole in campaign finance law. The issue has gained considerable traction this week with two of the most prominent campaign finance attorneys in Washington publishing op-eds in newspapers calling for closure of that loophole. Four years ago, NACS made headlines by opposing the Republican leadership of the House after they effectively protected this loophole. Now, the circle has come around and an issue upon which NACS was one of few vocal advocates has attracted many new supporters. Maybe this time, the loophole will actually be closed.
Meanwhile, as leaders in each party try to sort out the pending conflicts on reform, the House and Senate are considering temporary extension of the PATRIOT Act. NACS interest in this legislation centers around a proposal to limit the production of methamphetamine by controlling the distribution of products containing pseudoephedrine. The provision within the PATRIOT Act would allow for the sale of single dose packages of common cold and allergy medications, ensuring that convenience stores remain a viable channel of trade for these products.
NACS is also engaged with the Administration regarding implementation of the Energy Policy Act of 2005. Discussions are ongoing regarding implementation of the underground storage tank provisions, the boutique fuels limitation and the authority for retailers to blend different types of reformulated gasoline. While it is difficult to enact legislation, the signing ceremony does not end the effort. A lot of work remains to ensure the legislation is implemented effectively and NACS is working on those issues important to retailers.
**LATE BREAKING NEWS** We just received word that Philip Morris USA has entered into an agreement with 37 Attorneys General across the country aimed at combating illegal internet tobacco sales. These Attorneys General believe that virtually all sales of cigarettes over the Internet are illegal because the sellers are violating one or more state and federal laws, including state-age verification laws, and state and federal tax laws. While we have not had an opportunity to fully investigate the ramifications, the guts of the agreement state that PMUSA will terminate shipments to any direct customers that the Attorneys General have found to be engaging in illegal Internet and mail order sales.
Additionally, wholesalers selling to internet retailers that have been identified by an Attorney General will have their allotment of PMUSA product reduced by the amount that is being shipped to those vendors. So, it will be up to your state Attorney General to get the ball rolling, but it appears that PMUSA is making a great effort to assist NACS in its fight to level the playing field regarding internet tobacco sales.
Have a great weekend.
John Eichberger
Vice President, Government Relations