Sec. 1. 10 MRSA c. 204-C is enacted to read:

CHAPTER 204-C

REGULATION OF TOBACCO PRODUCTS

§1200.__Regulation of cigarette merchandising and promotion

1.__Retailers authorized.__A cigarette retailer may enter into and participate in a cigarette manufacturer's merchandising, advertising, display or consumer discount or promotional agreement or program in which the retailer:

A.__Provides cigarette merchandising, shelf-space, advertising, stocking or display to the manufacturer;

B.__Conducts the manufacturer's consumer promotion and discount programs and provides such promotions and discounts to consumers; and

C.__Is paid or compensated by the manufacturer for performing such activities.

2.__Manufacturers authorized.__A cigarette manufacturer may:

A.__Offer and enter into retailer agreements and programs as described in subsection 1;

B.__Pay or provide other compensation to retailers for participating in any such agreements or programs; and

C.__Provide consumer promotions and discounts to retailers for the retailers to furnish to consumers.

3.__Prohibition.__A cigarette manufacturer may not directly or indirectly:

A.__Condition a retailer's receipt of consumer promotions or consumer price discounts on the retailer's conduct or actions relating to the manufacturer's products or the products of any other manufacturer, except for requirements that the retailer:

(1)__Provide the promotion or discount to consumers; and

(2)__Advertise and display the promotion and the promoted or discounted product to consumers;