Senate Bill No. 66–Committee on Judiciary

 

February 7, 2003

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Referred to Committee on Judiciary

 

SUMMARY—Revises provisions governing certain agreements for sale of cigarettes. (BDR 52‑186)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to cigarettes; prohibiting a supplier of cigarettes from entering into a contract or other agreement with a retail cigarette dealer under certain circumstances; requiring a supplier of cigarettes to reimburse a retail cigarette dealer for any consumer price discount or consumer promotion within a certain period after the expiration of the program for the consumer price discount or consumer promotion; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Chapter 597 of NRS is hereby amended by adding

1-2  thereto a new section to read as follows:

1-3  1.  A supplier shall not enter into a contract or other

1-4  agreement with a retail cigarette dealer that directly or indirectly:

1-5  (a) Requires the retail cigarette dealer to:

1-6       (1) Allocate to the supplier for any purpose all or any

1-7  portion of the retail cigarette dealer’s cigarette category space or

1-8  the contents thereof stated as a specific percentage or fraction;

1-9       (2) Engage in any conduct or action as a condition for

1-10  participating in or receiving payments under a consumer price

1-11  discount program or consumer promotion program of the

1-12  supplier, except that the contract or agreement may require the

1-13  retail cigarette dealer to provide the discount or promotion to a

2-1  consumer, or to advertise and display the promotion and the

2-2  promoted or discounted product to consumers; or

2-3       (3) Increase his prices for a cigarette product; or

2-4  (b) Limits or prohibits the retail cigarette dealer from:

2-5       (1) Determining the size or location of his cigarette

2-6  category space;

2-7       (2) Participating in or engaging in conduct relating to any

2-8  promotion, program or other activity relating to the sale, stocking,

2-9  display, merchandising, pricing or advertising of any product of

2-10  another supplier;

2-11          (3) Stocking or selling a cigarette product; or

2-12          (4) Retaining or reducing his prices concerning a cigarette

2-13  product.

2-14      2.  A supplier shall reimburse a retail cigarette dealer for any

2-15  consumer price discount or consumer promotion provided to a

2-16  consumer within 90 days after the expiration of the program for

2-17  the consumer price discount or consumer promotion. Any

2-18  reimbursement required pursuant to this subsection is contingent

2-19  upon compliance by the retail cigarette dealer with the terms of

2-20  the contract for the consumer price discount or consumer

2-21  promotion, including any terms relating to maintaining adequate

2-22  documentation and accounting for the results of the discount or

2-23  promotion.

2-24      3.  As used in this section:

2-25      (a) “Cigarette” means all rolled tobacco or substitutes therefor

2-26  wrapped in paper or any substitute other than tobacco, irrespective

2-27  of size or shape and whether or not the tobacco is flavored,

2-28  adulterated or mixed with any other ingredient.

2-29      (b) “Cigarette category space” means all or any portion of the

2-30  premises of a retail cigarette dealer or any other space of a retail

2-31  cigarette dealer that is reserved, identified, used or otherwise made

2-32  available to display, stock, store, promote, advertise or maintain

2-33  cigarettes or cigarette products or signs, advertisements, display

2-34  materials, promotions or any other statements relating to

2-35  cigarettes or cigarette products.

2-36      (c) “Promotion” means a promotion, solicitation or

2-37  notification that induces or attempts to induce a person to

2-38  purchase cigarettes or cigarette products.

2-39      (d) “Retail cigarette dealer” means any person who offers to

2-40  sell cigarettes at retail or who is engaged in selling cigarettes at

2-41  retail. The term does not include a store that:

2-42          (1) Has at least 17,000 square feet of indoor retail space;

2-43  and

2-44          (2) Is principally devoted to the sale of food for human

2-45  consumption off the premises.

3-1  (e) “Supplier” means any cigarette manufacturer or importer

3-2  who, directly or indirectly through an agent, representative, broker

3-3  or distributor, supplies, sells or delivers to a retail cigarette dealer

3-4  in this state, or offers to supply, sell or deliver to a retail cigarette

3-5  dealer in this state, any cigarettes or any advertisement,

3-6  merchandising or promotion relating to the sale of cigarettes.

 

3-7  H