78R4854 DLF-F
By: Armbrister S.B. No. 1253
A BILL TO BE ENTITLED
AN ACT
relating to certain practices in the merchandising of cigarettes;
providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter H, Chapter 161, Health and Safety
Code, is amended by adding Section 161.0875 to read as follows:
Sec. 161.0875. MERCHANDISING OF CIGARETTES. (a) In this
section, "manufacturer" means a person who manufactures or produces
cigarettes.
(b) Subject to Subsection (d), a manufacturer may provide,
and a retailer may participate in, a program in which the retailer
is compensated for promoting the manufacturer's cigarettes by:
(1) providing merchandising services, shelf space,
advertising, or stocking services or displaying the cigarettes in a
particular manner; or
(2) conducting a consumer promotion or price discount
program and providing the program to consumers.
(c) A manufacturer may:
(1) offer and enter into a retailer agreement or
program described by Subsection (b);
(2) pay or provide other compensation to a retailer
for participating in a retailer agreement or program described by
Subsection (b); and
(3) provide consumer promotions and discounts to a
retailer for the retailer to provide to consumers.
(d) A manufacturer may not, directly or indirectly:
(1) condition a retailer's participation in or receipt
of a consumer promotion or price discount described by Subsection
(b) or (c) on the retailer's conduct relating to the manufacturer's
cigarettes or the retailer's conduct relating to any other
manufacturer's cigarettes, except as provided by Subsection (e);
(2) require or cause the retailer to allocate a
specified percentage or fraction of the retailer's shelf,
advertising, stocking, or display space to the manufacturer's
cigarettes or otherwise control a retailer's determination of the
size or location of the space that the retailer uses to merchandise,
advertise, stock, or display cigarettes;
(3) prohibit or restrict a retailer's merchandising,
advertising, stocking, or displaying of another manufacturer's
cigarettes;
(4) prohibit or restrict a retailer's participation in
a program of another manufacturer; or
(5) require a retailer to raise the price of another
manufacturer's cigarettes or otherwise prevent the retailer from
setting, continuing, or reducing the price for which the retailer
offers another manufacturer's cigarettes.
(e) A manufacturer may require a retailer participating in
or receiving a consumer promotion or price discount described by
Subsection (b) or (c) to provide the promotion or discount to
consumers and display and advertise the promotion and the promoted
or discounted product to consumers.
(f) A manufacturer commits an offense if the manufacturer
violates this section. An offense under this subsection is a Class C
misdemeanor.
SECTION 2. This Act takes effect September 1, 2003.