Alabama § 28-11-20 - Suspension or Revocation of Tobacco Permit for Default in Payment; Reinstatement of Permit; Rulemaking Authority.

§ 28-11-20. Suspension or Revocation of Tobacco Permit for Default in Payment; Reinstatement of Permit; Rulemaking Authority.

(a)(1) No manufacturer or distributor shall sell, offer to sell, or deliver any tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products to any retailer in this state for any consideration other than cash or on terms, nor shall any retailer of these products buy or accept delivery for any of these products for any consideration other than cash or on terms.

(2) If payment on an invoiced purchase is not received from the retailer when due or payment is returned for insufficient funds, the manufacturer or distributor, within 15 business days, shall notify the board and the board shall promptly notify all licensed manufacturers and distributors in this state of the default in payment. Thereafter, no person shall sell any tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products to the retailer in default on any terms other than cash delivery, until otherwise authorized by the board. Under penalty of suspension of the permit, the retailer who is in default shall pay his or her obligation in full within 60 days from the date it became due. No permit shall be suspended or revoked without prior notice to the retailer and an opportunity for the retailer to be heard before the board.

(b)(1) Any retailer that fails to make timely and sufficient payment under subdivision (a)(2) may have his or her tobacco permit suspended for not more than 30 days for each offense. If the retailer repays his or her obligation prior to the end of the suspension period, he or she may pay a fee to be determined by the board for the early reinstatement of his or her permit.

(2) Each failure of a retailer to make payment for any default before the expiration period of suspension is a separate offense.

(3) The board may permanently revoke the tobacco permit of any retailer that is suspended for default in payment for more than six months in any 12-month period.

(c) The board may require a retailer that fails to make timely and sufficient payment under subdivision (a)(2) to make payment in cash for all tobacco, tobacco products, electronic nicotine delivery systems, or alternative nicotine products sold or delivered to him or her after the initial failure.

(d) The board shall adopt rules to implement and enforce this section.