Report Title:

Cigarette Retail Regulation

Description:

Prohibits cigarette manufacturers from requiring cigarette retailers to devote floor or advertising space to their product.

THE SENATE

S.B. NO.

388

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) A retailer and a manufacturer may contract or agree with respect to merchandising, advertising, displaying, or promotion of cigarettes by the retailer.

(b) Any contract or agreement described in subsection (a) shall not directly or indirectly:

(1) Require the retailer to allocate either of the following:

(A) A percentage or fraction of all or any part of the retailer's space available for product display, signage, advertising, or cigarette category space to a manufacturer for any purpose; or

(B) A determined amount of space, whether expressed in footage, product facings, or other forms of measurement stated in the contract or agreement, to a manufacturer in order to receive, participate in, or receive payment under a manufacturer's promotions.

(2) Restrict or limit a retailer's cigarette category space or retailer's conduct of, or participation in, any program or activity concerning the sale, display, merchandising, promotion, pricing, or advertising of any manufacturer's products.

(c) For the purposes of this section:

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

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

(3) "Promotion" means a program or means in which either of the following apply:

(A) The effective price paid by a purchaser of cigarettes is reduced from the regular price charged by the retailer; or

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

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

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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