Text: SF02161 Text: SF02163 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 453A.41 CIGARETTE RETAILER AND
1 2 MANUFACTURER CONTRACTS.
1 3 1. As used in this section, unless the context otherwise
1 4 requires:
1 5 a. "Cigarette category space" means space in a retailer's
1 6 establishment that is reserved, made available, or identified
1 7 by a retailer for the display of products, signs, advertising,
1 8 promotion, or other communications relating to cigarettes.
1 9 b. "Promotion" means any means by which the effective
1 10 price paid by a consumer of cigarettes is reduced from the
1 11 regular price charged by the retailer when a manufacturer's
1 12 promotion is not in effect or applicable or when additional
1 13 cigarettes or other items are offered to the consumer in
1 14 connection with the purchase of cigarettes.
1 15 2. A retailer and a manufacturer may enter into contracts
1 16 which provide for any of the following:
1 17 a. Allowing the retailer to obtain, participate in, and
1 18 receive payments from the manufacturer under the
1 19 manufacturer's cigarette merchandising, advertising, display,
1 20 or promotion program, whether on a permanent or temporary
1 21 basis.
1 22 b. Allowing the retailer to be compensated by the
1 23 manufacturer for providing space for the merchandising,
1 24 advertising, display, or promotion of the manufacturer's
1 25 products.
1 26 c. Allowing the retailer to purchase cigarettes.
1 27 3. A contract entered into under subsection 2 shall not
1 28 directly or indirectly do any of the following:
1 29 a. Require the retailer to allocate any of the following:
1 30 (1) A percentage or fraction of all or any part of the
1 31 retailer's space available for product display, signage, or
1 32 advertising or cigarette category space to a manufacturer for
1 33 any purpose.
1 34 (2) A determined amount of space to a manufacturer to
1 35 receive, participate in, or receive payment under a
2 1 manufacturer's promotion.
2 2 b. Restrict or limit any of the following:
2 3 (1) A retailer's cigarette category space.
2 4 (2) A retailer's conducting of or participation in any
2 5 program or activity concerning the sale, display,
2 6 merchandising, promotion, pricing, or advertising of any
2 7 manufacturer's products.
2 8 4. A contract entered into in violation of this section
2 9 constitutes a violation of this division.
2 10 EXPLANATION
2 11 This bill provides that cigarette retailers and
2 12 manufacturers may enter into contracts that provide for any of
2 13 the following: allowing the retailer to obtain, participate
2 14 in, and receive payments from the manufacturer under the
2 15 manufacturer's cigarette merchandising, advertising, display,
2 16 or promotion program, whether on a permanent or temporary
2 17 basis; allowing the retailer to be compensated by the
2 18 manufacturer for providing space for the merchandising,
2 19 advertising, display, or promotion of the manufacturer's
2 20 products; or allowing the retailer to purchase cigarettes.
2 21 However, the bill prohibits such a contract from directly
2 22 or indirectly: requiring the retailer to allocate the
2 23 retailer's space available for product display, signage, or
2 24 advertising or cigarette category space to a manufacturer for
2 25 any purpose; requiring the retailer to allocate a determined
2 26 amount of space to a manufacturer to receive, participate in,
2 27 or receive payment under a manufacturer's promotion;
2 28 restricting or limiting a retailer's cigarette category space;
2 29 or restricting or limiting a retailer's conducting of or
2 30 participation in any program or activity concerning the sale,
2 31 display, merchandising, promotion, pricing, or advertising of
2 32 any manufacturer's products.
2 33 A person who violates this bill is subject to revocation of
2 34 licensure under Code section 453A.22.
2 35 LSB 5945SS 79
3 1 pf/hk/91
Text: SF02161 Text: SF02163 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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