2002 Legislation
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HOUSE BILL NO. 596 – Cigarette retailer, manuf reqmts

HOUSE BILL NO. 596

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Daily Data Tracking History



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

Bill Text


                                                                        
                                                                        
  ||||              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
 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 / Fiscal Impact


	              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