Report Title:

Cigarettes; Retailers and Manufacturers

Description:

Prohibits contracts or agreements between cigarette manufacturers and retailers that require retailers to allocate or allot display, signage, or other advertising space to the manufacturer as condition of participating in promotions and discounts.

HOUSE OF REPRESENTATIVES

H.B. NO.

1025

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to cigarette retailers and manufacturers.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 480, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§480-    Cigarette retailers and manufacturers. (a) No contract or agreement between a retailer and a manufacturer with respect to the merchandising, advertisement, display, or promotion of cigarettes, whether or not in exchange for, or as a condition of a retailer's participation in a manufacturer's discount or other promotion, shall directly or indirectly:

(1) Require the retailer to allocate to a manufacturer, for any purpose, an amount of cigarette category or other retail space, whether or not expressed in percentages, fractions, footages, product facings, or other forms of measurement; or

(2) Restrict or limit a retailer's use of cigarette category or other retail space with regard to the sale, display, merchandising, promotion, pricing, or advertisement of any manufacturer's products.

(b) For the purposes of this section:

"Cigarette category space" means the portion of space in a store or on the premises that is reserved, made available, or is identified by a retailer as intended for the display of products, signs, advertisements, promotions, or other communications relating to cigarettes.

"Manufacturer" means a producer or maker of cigarettes who directly, or through an agent, representative, broker, or any other person of entity, offers to supply, sell, or deliver cigarettes or cigarette advertisements, merchandising, or promotions to a retailer.

"Promotion" means a program or means by which either of the following apply:

(1) The price the consumer pays for cigarettes is reduced below the regular price charged by the retailer; or

(2) Additional cigarettes or other items are offered to the consumer in connection with the purchase of cigarettes.

"Retail space" means the portion of space in a store or on the premises that is used or available for product display, signage, advertisements, or similar purposes.

"Retailer" means a person who legally possesses cigarettes for the purpose of selling them for consumption and not for resale."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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