H. B. 4653

(By Delegates Yeager and Dempsey)

[Introduced February 22, 2002 ; referred to the

Committee on the Judiciary.]

A BILL to amend chapter forty-seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article thirteen, relating to establishing the cigarette sales act.

Be it enacted by the Legislature of West Virginia:
That chapter forty-seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article thirteen, to read as follows:
ARTICLE 13. CIGARETTE SALES ACT.

47-13-1. Short title.
This act may be known as the "Cigarette Sales Act."

47-13-2. Definitions.
For the purposes of this article:
(a) "Cigarette category space" means the portion of space in a store or on the premises as reserved, made available or identified by a retailer for the display of products, signs, advertising, promotion or other communications relating to cigarettes;
(b) "Cigarette retailer" means every person, other than a wholesale dealer, whose principal business is that of selling merchandise at retail, who shall sell, or offer for sale tobacco to the consumer. The sale of tobacco in quantity lots by retailers, transient vendors or other persons may not be construed as wholesale and may not qualify the retailer for a permit as a wholesaler.
(c) "Manufacturer" means a cigarette manufacturer or importer, directly or through its agent, representative, broker or any other person or entity, who directly or indirectly offers to supply, sell or deliver cigarettes or cigarette advertising, merchandising or promotions to a cigarette retailer.
(d) "Promotion" means any program which:
(1) The effective price paid by a purchaser of cigarettes is reduced from the regular price charged by the retailer when a manufacturer's promotion is not in effect or applicable; or
(2) Additional cigarettes or other items are offered to the consumer in connection with the purchase of cigarettes.
§47-13-3. Retailers right to contract.
(a) A cigarette retailer and manufacturer shall have the right to enter into contracts or agreements with each other for the retailer to:
(1) Obtain, participate in and receive payments from the manufacturer pursuant to the manufacturer's cigarette merchandising, advertising, display or promotion programs, whether permanent or temporary;
(2) Be compensated by the manufacturer for providing space for the merchandising, advertising, display or promotion of the manufacturer's products; and
(3) Purchase cigarettes.
(b) A contract or agreement described in subsection (a) shall not directly or indirectly require the retailer to allocate:
(1) A percentage or fraction of any part of the retailer's:
(A) Space available for product display, signage or advertising; or
(B) Cigarette category space to a manufacturer for any purpose; or
(2) A determined amount of space, whether expressed in footage, product facings or other forms of stated measurement, to a manufacturer in order to receive, participate in or receive payment under, a manufacturer's promotion.
(c) A contract or agreement described in subsection (1) shall not directly or indirectly restrict or limit:
(1) A retailer's cigarette category space; or
(2) A retailer's conduct of or participation in any program or activity concerning the sale, display, merchandising, promotion, pricing or advertising, in any manner, of any manufacturer's products.

NOTE: The purpose of this bill is to establish the cigarette sales act which governs the right of cigarette retailers to contract with cigarette manufacturers.

This article is new; therefore, strike-throughs and underscoring have been omitted.