House Health Committee Hearing on House Bill 1657

Written Testimony of Brian Fojtik, Senior Vice President for Government Affairs
Cigar Association of America

September 20, 2023

Good morning Chairman Frankel, Chairwoman Rapp and members of the House Health
Committee. My name is Brian Fojtik and I am the Senior Vice President for Government Affairs
of the Cigar Association of America (CAA). The Cigar Association of America is the premier
voice of the cigar industry in the United States. We very much appreciate the opportunity to
present testimony on this important topic.

CAA is opposed to House Bill 1657 (HB 1657) and the catastrophic damage it would do to many
long-term, tax paying, law abiding Pennsylvania businesses that have made enormous investments
in Pennsylvania in reliance on the Commonwealth law that allows cigar smoking in both cigar bars
and tobacco specialty businesses. CAA members include many PA businesses, including three of
the largest online retailers of cigars (where company employees sample cigars the companies may
offer for sale), cigar bars such as Leaf Cigar bar in Easton, Best Cigar Pub in Drums, and Cigars
International Superstores in Hamburg and Bethlehem. In addition, CAA manufacturer members
rely on the many cigar tobacco farms throughout the state. In short, laws allowing cigar smoking
by adults in cigar bars, tobacco shops and businesses operating in the tobacco space are undeniably
critical to these companies.

Historically, Pennsylvania has been a leader in the United States in helping to grow and support
businesses that sell, distribute, and manufacture premium cigars for adult consumers. It is even
estimated that between 50% and 60% of all premium cigars in the United States pass through
Pennsylvania each year. If HB 1657 passes in its current form, it will relinquish that leading role,
and the jobs and tax revenue it generates.

A number of companies have come to PA for the opportunity to grow their business, leaving states
that did not afford the same opportunities. For example, much of the premium cigar industry
(including CAA members) left New York due to increasingly restrictive indoor cigar smoking
laws and punitive taxes. This forced Famous Smoke Shop (a family-owned company founded in
1939) to leave New York and relocate Pennsylvania in 2000 and Best Cigar Prices to do so in
2011. Since that time, they have only continued to invest in and expand their businesses in the
state. For instance, Best Cigar Prices went from being a small online retailer of premium cigars to
having a much larger online retail presence, opening Best Cigar Pub and founding a wholesale
company, Cigar Hub – all based in Pennsylvania. The Hazelton Chamber of Commerce named
Best Cigar Prices the 2017 Small Business of the Year and the 2021 Large Business of the Year.

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Further, Cigars International similarly relocated to Pennsylvania (from New Jersey) and continues
to invest in the state – through its newly planned new office and warehouse space and by opening
additional cigar lounges and superstores in the state, such as the Cigars International Superstores
in Hamburg and Bethlehem. Each of these companies pay all of their employees exceptional
wages and provide significant benefit packages including health insurance and retirement plans.
Were these businesses to close or move out of state, hundreds or even thousands of Pennsylvanians
would be out of work, potentially relying on state assistance.

If HB 1657 were to pass in its current form, not only would it shutter the cigar bars these companies
operate, but it would also drastically affect their online retail and, for some, their wholesale
operations. Each of these companies operates cigar bars in the state, but their primary businesses
are as online retailers. They routinely meet with manufacturers’ representatives to try new
premium cigars to build out their product catalogs. Premium cigars, like wine, are unique and
taste different to each person. The buyers at each of the companies need to have the ability to
sample and try premium cigars before determining if they are appropriate for the portfolio each
retailer offers. If HB 1657 passes in current form, this critical business practice, of meeting with
vendors and trying cigars, would cease. It would put these companies at a huge competitive
disadvantage if they were no longer permitted to smoke in their place of business, forcing them to
seriously consider relocating to Florida, where such activities are permitted (and where
competitors have their base of operations). It is not hyperbolic to state that the ability to smoke in
the operational headquarters of these companies is absolutely necessary to the survival of these
business. HB 1657 essentially tells these companies that their businesses are no longer welcome
in Pennsylvania.

Further, each of these cigar bars, as well as the tobacco farms in Pennsylvania, serve as tourist
destinations and drive revenue into the state. Leaf Cigar Bar in Easton and Cigars International in
Bethlehem are right over the border from New Jersey and many customers travel from New Jersey
to visit these establishments. If smoking was no longer allowed in these cigar bars, these New
Jersey residents would no longer drive across the border for the experience they enjoy at these
establishments. Further, for Best Cigar Pub in Drums, it has become a tourist destination in and
of itself due to the investment made in the facility and the fact it has a store, museum, and outdoor
activity area in addition to the cigar bar and restaurant. All of these establishments employ strict
age verification procedures and are absolutely committed to only serving adult consumers. Their
marketing, advertising and business practices all are tailored to the adult premium cigar consumer,
and they take with utmost seriousness the obligation to sell and serve only adults.

HB 1657 also seeks to remove statewide preemption over smoking prohibitions so that local
jurisdictions can impose their own restrictions. This provision is also incredibly detrimental to the
people and businesses in Pennsylvania. It is important to have statewide preemption on this issue
so that some businesses do not suffer while others thrive, simply because of the activism of the
local officials. Leaf Cigar Bar in Easton should have the same security in knowing it will be able
to operate in current form, just as Best Cigar Pub in Drums should be able to. HB 1657 seeks to

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remove that certainty from these businesses by allowing localities to impose their own smoking
prohibitions that would differ from state law. This is not good business or public health policy.

Should these businesses go dark or be forced to leave the Commonwealth, it is not only the
employees that will suffer. It is also a loss of income tax revenue, sales tax revenue and the related
jobs in shipping and support services that will no longer be needed, as well as the above-mentioned
tourism revenue and tens of millions of dollars in construction and other investments these
companies have made and may continue to invest in Pennsylvania. While the intent of HB 1657
may not be to destroy a huge employment and revenue stream for Pennsylvania – the practical
reality is that is what this bill will do. CAA and approximately 100 employees of Best Cigar
Prices, 150 employees of Famous Smoke Shop and the 375-400 employees of Cigars International
all strongly oppose this bill. The current indoor smoking provisions strike a balance between
protecting the public health and allowing these cigar businesses to thrive, there is no reason to
upset this balance now. We oppose HB 1657 and urge no votes on it so that these strong, proud,
and responsible businesses can continue to be excellent employers and cater to the adult premium
cigar consumers of Pennsylvania.

Thank you for the opportunity to present testimony on this important topic. CAA stands ready as
a resource for any further legislative discussion on HB 1657.

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