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February 23, 2005

A Newsletter of the National Association of Tobacco Outlets, Inc.

By: Thomas A. Briant, Executive Director

Victory for Outlets

The intensive grassroots lobbying efforts of the National Association of Tobacco Outlets and its members dealt the proposed Food and Drug Administration (FDA) tobacco regulations a severe setback in the U.S. Congress. NATO President Velma Hartley declared that “the FDA bill posed the ultimate threat to tobacco stores and NATO’s efforts helped to persuade Congress to reject the regulations.” This is a major victory for NATO members. On Monday, October 11th, the U.S. Senate joined the U.S. House in passing the American Jobs Creation Act (H.R.4520) without the FDA regulations. The bill has now been sent to President Bush for his signature. While it agreed to delete the FDA regulations from H.R.4520, the Senate proceeded to call for a voice vote and passed the FDA regulations a second time in a stand alone bill and sent the measure to the House where it is not expected to receive any action.
Preventing the FDA regulations from being enacted preserved self-service displays of tobacco products and tobacco advertising in tobacco stores. Also, the demise of the FDA rules protects retailers from harsh fines and penalties for displaying tobacco products with wrong manufacturer warning labels.

NATO’s Actions

In mid-July, the NATO board directed the association staff to use every resource available to defeat the FDA bill. NATO and its members worked diligently with other trade associations and manufacturers to educate members of Congress that granting the FDA the power to regulate all tobacco products would financially devastate retailers.

NATO’s efforts to oppose
the FDA bill included:

• Drafted letters for all NATO members to send to members of Congress.
• Provided alerts to NATO members, employees and customers to call Congressional members.
• Mailed alert letters to 8,300+ adult tobacco store customers asking them to call their specific senators/representatives.
• Joined with more than 60 national and state trade associations in a letter to key Senate and House leaders educating them about the severe impact of the FDA regulations.
• Hand delivered 50+ letters from Texas NATO retailers to House Majority Leader Tom DeLay of Texas supporting his steadfast opposition to the FDA bill.
• NATO Director David Newman met with chief aides of Senator Mike DeWine (FDA bill author) to express retailer concerns.
• NATO President Velma Hartley personally called all 38 Congressional members on the Senate/House Conference Committee to ask for their support in defeating the FDA bill.
• NATO staff hand delivered letters to every member of the Senate and House Conference Committee to oppose FDA rules.

Thank You

The NATO board extends its appreciation to all of the preceding for their efforts in defeating the FDA regulations: NATO manufacturer, distributor and retail members, allied trade associations and to the members of Congress who understood that granting the FDA such sweeping powers may lead to the prohibition of tobacco products in the United States.

Vote November 2nd!

This year the outcome of the November presidential elections may have a dramatic impact on the tobacco industry in general and tobacco stores in particular. In the event that Democratic presidential candidate John Kerry is elected, there is a greater likelihood that the Food and Drug Administration could be granted regulatory power over the manufacture and sale of tobacco products because he has publicly stated that he supports FDA regulation of the tobacco industry. On the other hand, if President George Bush is re-elected, the possibility of extensive regulatory powers being granted to the FDA is less likely.
NATO’s primary focus has been and continues to be working for tobacco stores and tobacco distributors on tobacco legislative issues. In this role, NATO and its members are becoming more and more involved in the legislative process. The continued success of NATO’s efforts to educate elected officials on the impact of tobacco legislation depends, in part, on those individuals who are elected to hold public office. Exercise your right and vote on November 2nd! Nominations Remain 
Open for NATO Board

This November, the terms of seven NATO board members will expire and NATO members will vote to elect five retailers and two manufacturer or distributor representatives to serve two year board terms. To be eligible for an open board seat, a candidate must be an owner, partner, shareholder, officer or employee of a member in good standing. The duties of the board include setting goals for the association, approving actions to be implemented by the association and overseeing the management of the association. The NATO board meets approximately once every two months with three meetings held via telephone conference call and three other meetings conducted in person during the year. One of the best ways to become more active in the association is to run for a board seat. If you want to be nominated as a candidate for a seat on the NATO board, please call NATO Executive Director Thomas Briant at 1-866-869-8888 by November 1st.

Coupon Clearing Issue

The NATO Retail Survey Committee has heard from a number of NATO retailers who have experienced problems with coupon clearinghouses. The committee members are proceeding with their investigation of possible shortages in coupon submission payments. The committee members are hopeful that a positive resolution can be reached on this problem. In the meantime, if you have not yet contacted a NATO Retail Survey Committee member about coupon submission payment shortages that you have experienced, please contact NATO Retail Survey Committee Member Joan Livingston at 254-791-0876.

Credit Card Plan Aims
to Save Members $$$

NATO is reviewing proposals for credit card processing fees from three major companies that provide these services to retailers. The goal is for NATO to recommend to NATO members the best plan from the company that will offer superior credit card processing services at an economical cost. This review should be completed by the first part of November and NATO’s recommendation will be published in the November issue of the NATO Monitor. The special credit card processing rates will be available exclusively to NATO members and could result in retail members significantly reducing their credit card processing charges. This effort is another example of NATO working to improve the bottom line for tobacco store members.

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