HOUSE BILL 989

46th legislature - STATE OF NEW MEXICO - first session, 2003

INTRODUCED BY

James G. Taylor







AN ACT

RELATING TO TOBACCO; PROHIBITING CERTAIN CONDUCT BY CIGARETTE MANUFACTURERS; PROVIDING A PENALTY.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. CIGARETTE MANUFACTURER PROHIBITED CONTRACTS--PENALTY.--

A. A cigarette manufacturer shall not directly or indirectly:

(1) condition a retailer's receipt of a consumer promotion or consumer price discount on the retailer's conduct or actions relating to the manufacturer's products or to the products of any other manufacturer, except for requirements that the retailer:

(a) provide the promotion or discount to consumers; and

(b) advertise and display the promotion and the promoted or discounted product to consumers;

(2) require or cause a retailer to allocate a specified percentage or fraction of the retailer's merchandising, stocking, display, shelf or advertising space to the manufacturer's products;

(3) prevent, restrict or limit a retailer from stocking, advertising, displaying or participating in a program for another manufacturer's products;

(4) prevent, restrict or limit a retailer from determining the size or location of the space that the retailer uses to stock, display, promote or advertise cigarettes; or

(5) require a retailer to raise its prices on or prevent the retailer from setting, retaining or reducing its prices on another manufacturer's products.

B. A cigarette manufacturer who violates Subsection A of this section shall be liable for a penalty of one thousand dollars ($1,000) to be recovered, with costs of suit, in a civil action brought by a retailer or another manufacturer.

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