Print Friendly HOUSE BILL NO. 596 – Cigarette retailer, manuf reqmts
HOUSE BILL NO. 596
View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.
This sentence is marked with bold and underline to show added text.
This sentence is marked with strikethrough and italic, indicating
text to be removed.
H0596................................by JUDICIARY, RULES AND ADMINISTRATION
CIGARETTES - RETAILERS - Adds to existing law to prohibit cigarette
manufacturers from imposing on cigarette retailers certain requirements
relating to the marketing, display and advertising of cigarettes.
02/08 House intro - 1st rdg - to printing
02/11 Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 596
BY JUDICIARY, RULES AND ADMINISTRATION COMMITTEE
1 AN ACT
2 RELATING TO THE MARKETING, DISPLAY AND ADVERTISING OF CIGARETTES; AMENDING
3 CHAPTER 57, TITLE 39, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
4 39-5706A, IDAHO CODE, TO PROHIBIT CIGARETTE MANUFACTURERS FROM IMPOSING
5 CERTAIN REQUIREMENTS ON CIGARETTE RETAILERS, TO DEFINE TERMS, TO PROVIDE
6 REMEDIES AND TO SPECIFY APPLICATION OF THE SECTION TO CERTAIN CONTRACTS
7 AND CONTRACT RENEWALS AND EXTENSIONS; AND DECLARING AN EMERGENCY.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Chapter 57, Title 39, Idaho Code, be, and the same is
10 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
11 ignated as Section 39-5706A, Idaho Code, and to read as follows:
12 39-5706A. CERTAIN ACTS DECLARED UNLAWFUL -- REMEDIES. (1) It shall be
13 unlawful for a cigarette manufacturer to condition, directly or indirectly, a
14 cigarette retailer's participation in, or receipt of, cigarette promotions or
15 payments relating such promotions on:
16 (a) The cigarette retailer's allocation of a specified percentage, frac-
17 tion or absolute amount of the retailer's total display, signage or adver-
18 tising space to the sale of cigarettes or to cigarette display, signage or
20 (b) The cigarette retailer's participation or nonparticipation in any
21 other cigarette promotion by the retailer or other cigarette manufac-
22 turers; or
23 (c) The cigarette retailer's allocation of a specified percentage, frac-
24 tion or absolute amount of the retailer's available cigarette display,
25 signage or advertising space to the products of the cigarette manufac-
26 turer; provided however, a cigarette retailer may provide an absolute
27 amount of space for cigarette display, signage or advertising, but not a
28 percentage or fraction of the total space available for such purposes, to
29 a cigarette manufacturer for monetary consideration that is unrelated to a
30 cigarette promotion.
31 (2) For purposes of this section:
32 (a) "Cigarette manufacturer" means and includes a person or entity who
33 directly or indirectly offers to supply, sell or deliver cigarettes or to
34 provide cigarette advertising, merchandising or promotions to a cigarette
36 (b) "Cigarette promotion" means any program that is offered to a ciga-
37 rette retailer by a cigarette manufacturer by which the cigarette retailer
38 will receive either:
39 (i) Price reductions, discounts, rebates or other incentives from a
40 cigarette manufacturer by which the effective price paid by a pur-
41 chaser of cigarettes to a cigarette retailer is reduced from the
42 price charged by the cigarette retailer when such price reductions,
43 discounts, rebates or other incentives are not in effect; or
1 (ii) A program by which the cigarette manufacturer provides addi-
2 tional cigarettes or other items to the cigarette retailer to be
3 given to the consumer in connection with the purchase of the ciga-
4 rette manufacturer's brand of cigarettes.
5 (3) Any person injured directly, or threatened with direct injury, by
6 reason of conduct declared to be unlawful under this section may bring an
7 action for injunctive relief, damages and, as determined by the court, reason-
8 able costs and attorney's fees. If the court finds that the prohibited conduct
9 constituted an intentional violation of this section, the court shall increase
10 the recovery for damages to an amount not in excess of three (3) times the
11 damages sustained.
12 (4) The provisions of this section shall not apply to any contract made
13 and entered into between a cigarette retailer and a cigarette manufacturer
14 prior to the effective date of this act; provided however, that the provisions
15 of this section shall be applicable to any renewal of such contract or an
16 extension of the provisions of such contract occurring on or after the effec-
17 tive date of this act.
18 SECTION 2. An emergency existing therefor, which emergency is hereby
19 declared to exist, this act shall be in full force and effect on and after its
20 passage and approval.
STATEMENT OF PURPOSE
The purpose of this legislation is to prohibit a cigarette
manufacturer from imposing economic sanctions on cigarette
retailers who do not comply with a cigarette manufacturer’s
marketing, display, signage or advertising requirements.
This legislation prohibits a manufacturer from requiring that a
retailer dedicate a specific amount of space to cigarette product
display or advertising or requiring the retailer not to participate
in promotions of other cigarette manufacturers. It prohibits a
cigarette manufacturer from granting or withholding the
manufacturer’s promotional discounts, rebates or other incentives
based upon the amount of display or advertising space provided to
a cigarette manufacturer by the retailer.
The legislation does not prohibit a cigarette retailer from
renting space to a cigarette supplier for display purposes, so
long as it is not linked to the provision of promotional discounts
There is no tiscal impact.
Name: Bill Roden
Jeremy Pisca 336-7930
STATEMENT OF PURPOSE/FISCAL NOTE H 596