Louisiana House Bill HB367

Louisiana 2019 Regular Session

• Introduced: 3/29/19
• Refer: 3/29/19
• Refer: 4/8/19

Caption

Provides relative to the price of cigarettes (OR SEE FISC NOTE GF RV)

Impact

The proposed amendments to the pricing structure of cigarettes will have significant implications for both wholesalers and retailers within Louisiana. By increasing the markup percentages, the bill seeks to ensure that these businesses have the flexibility to accommodate the costs they incur in selling tobacco products. The adjustments are designed to benefit local retailers who assert that current margins are insufficient to maintain profitability, particularly in light of rising operational costs associated with sales.

Summary

House Bill 367, proposed by Representative Jay Morris, modifies the pricing structure for cigarettes in Louisiana by adjusting the markup percentages that wholesalers and retailers can apply to the minimum price. The bill aims to increase the markup rate from 3% to 4.5% for wholesalers and from 6% to 7.5% for retailers. This change is intended to better reflect the business costs associated with selling tobacco products, providing an updated framework that aligns with current economic conditions and retailer needs in the marketplace.

Sentiment

The sentiment surrounding HB 367 appears to lean positively among retailers and certain business advocates, who express that higher markup percentages will help sustain their businesses. However, there is concern amongst public health advocates regarding pricing strategies, as increasing cigarette prices can also potentially lead to changes in consumption patterns among users, particularly among younger demographics. Balancing economic interests with public health outcomes presents a challenging debate amongst stakeholders.

Contention

Notable points of contention include the potential effects of higher prices on cigarette consumption, particularly among vulnerable populations. While supporters argue that the changes benefit businesses, opponents may argue that any increase in tobacco prices could deter efforts to reduce smoking rates. The debate reflects broader discussions about public health policy versus economic development, as stakeholders consider the implications of such legislative changes on both local economies and public health outcomes.