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Tobacco rebate bill sparks divided industry testimony and fails on committee roll call
Summary
SB 551 would legalize certain wholesaler rebate practices as long as sales do not go below a wholesaler's cost; local wholesalers warned it would enable predatory pricing while larger distributors said it would level an uneven playing field. The committee conducted a roll‑call vote and the bill failed.
Senate Bill 551, presented by Senator Mark Johnson, would revise Arkansas’s Unfair Cigarette Sales Act to allow wholesalers to provide rebates to retailers provided those rebates do not reduce a sale below the wholesaler’s cost (after manufacturer discounts). Supporters said the change would help in‑state wholesalers compete with large out‑of‑state distributors that currently use rebates and incentive programs; opponents said it would gut longstanding protections…
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