SB 117: "An Act requiring the Department of Revenue to set the minimum price for cigarettes for sale by wholesalers and retailers; and prohibiting a wholesaler or retailer from selling at wholesale or retail cigarettes at a lower price than the price set by the Department of Revenue."
00 SENATE BILL NO. 117 01 "An Act requiring the Department of Revenue to set the minimum price for cigarettes 02 for sale by wholesalers and retailers; and prohibiting a wholesaler or retailer from 03 selling at wholesale or retail cigarettes at a lower price than the price set by the 04 Department of Revenue." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 43.50.710(a) is amended to read: 07 (a) A wholesaler or retailer may not, with intent to injure competitors or 08 destroy or substantially lessen competition, 09 (1) advertise, offer to sell, or sell, at retail or wholesale, cigarettes at 10 less than the minimum price determined by the department under 11 (A) AS 43.50.810(a) for a sale at wholesale; or 12 (B) AS 43.50.810(b) for a sale at retail [ACTUAL COST TO 13 THE WHOLESALER OR RETAILER]; or 14 (2) offer a rebate in price, give a rebate in price, offer a concession of
01 any kind, or give a concession of any kind or nature in connection with the sale of 02 cigarettes. 03 * Sec. 2. AS 43.50.710(b) is amended to read: 04 (b) A retailer may not induce or attempt to induce or procure or attempt to 05 procure 06 (1) the purchase of cigarettes at a price less than the wholesale 07 minimum price determined under AS 43.50.810(a) [ACTUAL COST TO A 08 WHOLESALER]; 09 (2) a rebate or concession of any kind or nature in connection with the 10 purchase of cigarettes. 11 * Sec. 3. AS 43.50.710(c) is amended to read: 12 (c) Evidence of advertisement, offering to sell, or sale of cigarettes by a 13 wholesaler or retailer at less than the applicable minimum price determined by the 14 department under AS 43.50.810 [ACTUAL COST], or evidence of an offer of a 15 rebate in the price, the giving of a rebate in price, offer of a concession, or the giving 16 of a concession of any kind or nature in connection with the sale of cigarettes, or the 17 inducing, attempt to induce, the procuring, or the attempt to procure the purchase of 18 cigarettes at a price less than the applicable minimum price determined by the 19 department under AS 43.50.810 [ACTUAL COST TO A WHOLESALER OR 20 RETAILER] is prima facie evidence of intent to injure competitors and to destroy or 21 substantially lessen competition. 22 * Sec. 4. AS 43.50.720 is amended to read: 23 Sec. 43.50.720. Sale at less than minimum price [COST]; with gift or 24 concession. In all advertisements, offers for sale, or sales involving two or more items 25 when at least one of the items is cigarettes at a combined price, and in all 26 advertisements, offers for sale, or sales involving the giving of any gift, concession, or 27 coupon of any kind in conjunction with the sale of cigarettes, the wholesaler's or 28 retailer's combined selling price may not be less than [BELOW] the applicable 29 minimum price determined by the department under AS 43.50.810 [ACTUAL 30 COST TO THE WHOLESALER OR THE ACTUAL COST TO THE RETAILER, 31 RESPECTIVELY,] of the total of all articles, products, commodities, gifts, and
01 concessions included in the transactions, except that, if any articles, products, 02 commodities, gifts, or concessions are not cigarettes, the price [ACTUAL COST] 03 shall be the applicable minimum price determined by the department under 04 AS 43.50.810 [DETERMINED AS PROVIDED UNDER AS 43.50.800]. 05 * Sec. 5. AS 43.50.790(a) is amended to read: 06 (a) The department 07 (1) shall administer AS 43.50.710 - 43.50.849; 08 (2) may adopt regulations relating to the administration and 09 enforcement of AS 43.50.710 - 43.50.849; 10 (3) shall [MAY] determine the applicable minimum price for 11 [ACTUAL COST OF] cigarettes sold by [TO] a wholesaler or retailer as provided in 12 AS 43.50.810 [AS 43.50.800]; 13 (4) may, after reasonable notice and hearing, revoke or suspend a 14 license issued under AS 43.50.010 or 43.50.035 to a person who refuses or neglects to 15 comply with a provision of AS 43.50.710 - 43.50.849. 16 * Sec. 6. AS 43.50 is amended by adding a new section to read: 17 Sec. 43.50.810. Minimum prices for cigarette sales. (a) For the purposes of 18 AS 43.50.710 - 43.50.849, the department shall determine the minimum price for 19 which a wholesaler may advertise, offer to sell, or sell cigarettes at wholesale by 20 applying the following formula: 21 Wholesale Minimum Price = 1.045(M - D + T), 22 where M = the manufacturer's list price; 23 D = trade discounts; and 24 T = the full face value of all cigarette taxes. 25 (b) For the purposes of AS 43.50.710 - 43.50.849, the department shall 26 determine the minimum price for which a retailer or wholesaler may advertise, offer to 27 sell, or sell cigarettes at retail by multiplying by 1.06 the wholesale minimum price 28 determined under (a) of this section. 29 * Sec. 7. AS 43.50.730, 43.50.740(a), 43.50.760, 43.50.770, 43.50.800, and 43.50.849(4) 30 are repealed.