HB 219: "An Act relating to cigarette sales."

00 HOUSE BILL NO. 219 01 "An Act relating to cigarette sales." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 45.50.566 is amended to read: 04 Sec. 45.50.566. Transactions and agreements not to use or deal in 05 commodities or services unlawful. Except as provided under AS 45.53.200, it [IT] 06 is unlawful for a person to lease or make a sale or contract for sale of goods, wares, 07 merchandise, machinery, supplies, or other commodities, or services, whether patented 08 or unpatented, for use, consumption, enjoyment, or resale, or fix a price charged for it, 09 or discount from, or rebate upon, that price, on the condition, agreement, or 10 understanding that the lessee or purchaser will not use or deal in the goods, wares, 11 merchandise, machinery, supplies, or other commodity or service of a competitor or 12 competitors of the lessor or seller, if the effect of the lease, sale or contract for sale, or 13 of the condition, agreement, or understanding may be substantially to lessen 14 competition or tend to create a monopoly in any line of commerce. 15 * Sec. 2. AS 45.53 is amended by adding a new section to read:

01 Article 2. Cigarette Sales and Promotions. 02 Sec. 45.53.200. Cigarette sales and promotions. (a) A retailer may enter 03 into and participate in a tobacco product manufacturer's merchandising, advertising, 04 display, or consumer discount or promotional agreement or program in which the 05 retailer 06 (1) provides merchandising, shelf space, advertising, stocking, or 07 display to the manufacturer; 08 (2) conducts the tobacco product manufacturer's consumer promotion 09 or discount program and provides a promotion or discount to a consumer; and 10 (3) is paid or compensated by the tobacco product manufacturer for 11 performing activities described in this subsection. 12 (b) A tobacco product manufacturer may 13 (1) offer and enter into a retailer agreement or program described 14 under (a) of this section; 15 (2) pay or provide other compensation to a retailer for participating in 16 a retailer agreement or program described in (a) of this section; and 17 (3) provide a consumer promotion or discount to a retailer that the 18 retailer provides a consumer. 19 (c) A tobacco product manufacturer may not, directly or indirectly, 20 (1) condition a retailer's receipt of a consumer promotion or consumer 21 price discount on the retailer's conduct or action relating to a manufacturer's products, 22 except for a requirement that the retailer 23 (A) provide the promotion or discount to a consumer; or 24 (B) advertise and display the promotion and the promoted or 25 discounted product to a consumer; 26 (2) require or cause the retailer to allocate a specified percentage or 27 fraction of the retailer's merchandising, stocking, display, shelf, or advertising space to 28 the manufacturer; 29 (3) prevent, restrict, or limit a retailer from stocking, advertising, 30 displaying, or participating in a program for another manufacturer's product; 31 (4) prevent, restrict, or limit the retailer from determining the size or

01 location of the space that the retailer uses to stock, display, promote, or advertise 02 cigarettes; or 03 (5) require the retailer to raise the retailer's prices on, or prevent the 04 retailer from setting, retaining, or reducing its prices on, another manufacturer's 05 products. 06 (d) In this section, "retailer" means a person in the state who is engaged in the 07 business of selling cigarettes at retail. 08 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 REVISOR INSTRUCTION. In AS 45.53.100, the revisor of statutes shall substitute 11 the spanned reference "AS 45.53.010 - 45.53.100" for the reference to "this chapter."