Senate Bill 2989

AN ACT TO PROHIBIT TOBACCO MANUFACTURERS, DISTRIBUTORS OR WHOLESALERS FROM MAKING ANY LOAN OR EXTENSION OF CREDIT, OR FURNISHING ANY FIXTURES OF ANY KIND, EXCEPT POINT OF SALE DISPLAYS, TO ANY RETAILER; TO PROHIBIT TOBACCO MANUFACTURERS, DISTRIBUTORS OR WHOLESALERS FROM HAVING ANY INTEREST IN THE BUSINESS OF OR IN THE FURNISHINGS OR FIXTURES, EXCEPT POINT OF SALE DISPLAYS, OR IN THE PREMISES USED BY ANY SUCH RETAILER; TO PROHIBIT TOBACCO MANUFACTURERS, DISTRIBUTORS OR WHOLESALERS FROM HAVING ANY LIEN ON ANY SUCH PROPERTY; TO PROHIBIT TOBACCO MANUFACTURERS, DISTRIBUTORS OR WHOLESALERS FROM SELLING TOBACCO TO RETAILERS ON CREDIT; TO PROHIBIT TOBACCO MANUFACTURERS FROM ACTING AS WHOLESALERS OR DISTRIBUTORS; TO PROHIBIT TOBACCO MANUFACTURERS AND THEIR EMPLOYEES FROM HAVING CERTAIN INTERESTS IN THE BUSINESS OF A WHOLESALER OR DISTRIBUTOR; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) No manufacturer, distributor or wholesaler to whom or to which this chapter applies shall:

(a) Make any loan or extension of credit, directly or indirectly, or furnish any fixtures of any kind, except point of sale displays, directly or indirectly, to any retailer;

(b) Have any interest, direct or indirect, in the business of or in the furnishings or fixtures, except point of sale displays, or in the premises used by any such retailer in connection with his or its business;

(d) Sell tobacco to any such retailer on credit.

(2) No tobacco manufacturer shall act as a wholesaler or distributor.

(3) (a) The provisions of paragraph (b) of this subsection apply to the following entities:

(i) Any entity engaged in tobacco manufacturing;

(ii) An officer, director, agent or employee of an entity engaged in tobacco manufacturing;

(iii) An affiliate of an entity engaged in tobacco manufacturing, regardless of whether the affiliation is corporate or by management, direction or control.

(b) No entity named in paragraph (a) of this subsection may have any interest in the license, business, assets or corporate stock of a wholesaler or distributor to whom this chapter applies, except a security interest granted to the entity of the type provided for the Uniform Commercial Code in products sold to a wholesaler or distributor until the full purchase price has been paid therefor.

SECTION 2. The provisions of Section 1 of this act shall be codified in Chapter 69 of Title 27, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after July 1, 2007.