GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

S	2 

SENATE BILL 759
Commerce Committee Substitute Adopted 5/30/95

Short Title:  Unfair Cigarette Sales Study.	(Public)

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Sponsors:

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Referred to:  Appropriations

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April 19, 1995

A BILL TO BE ENTITLED
AN ACT AUTHORIZING THE LEGISLATIVE RESEARCH COMMISSION TO STUDY THE UNFAIR BUSINESS PRACTICE OF PRICING CIGARETTES BELOW COST.
Whereas, the General Assembly of North Carolina has recognized the necessity of protecting the business community of North Carolina from unfair and harmful trade practices by enacting Chapter 75 of the General  Statutes; and
Whereas, the First Edition of Senate Bill 759 of the 1995 General Assembly is a response to conditions resulting from the sale of cigarettes below invoice cost in North Carolina; and
Whereas, during the course of a hearing on the First Edition of Senate Bill 759 of the 1995 General Assembly before the Senate Committee on Commerce, opinions were expressed that the sale of cigarettes below invoice cost with intent to destroy competition constituted a violation of existing law as set forth in the General Statutes; and
Whereas, the Attorney General has issued a written opinion in which it was determined that existing law does not provide a remedy for the unfair business practice described in the First Edition of Senate Bill 759 of the 1995 General Assembly; and
Whereas, the  law of North Carolina is unclear on the subject addressed by the First Edition of Senate Bill 759 of the 1995 General Assembly and there is uncertainty as to whether the legislative intent of existing statutes is being carried out; Now, therefore,
The General Assembly of North Carolina enacts:
Section 1.  The Legislative Research Commission shall study the unfair business practice of pricing cigarettes below cost and shall consider the desirability and feasibility of prohibiting or limiting this practice.
Sec. 2.  The Commission may submit an interim report to the 1996 Regular Session of the 1995 General Assembly.  The Commission shall submit a final report of its recommendations and legislative proposals to the 1997 General Assembly.
Sec. 3.  This act is effective upon ratification.