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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 - 2002IN 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 19 advertising; 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 35 retailer. 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 2 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 RS 11847 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 or payments. FISCAL IMPACT There is no tiscal impact. Contact Name: Bill Roden Phone: 208-336-7930 Jeremy Pisca 336-7930 STATEMENT OF PURPOSE/FISCAL NOTE H 596