Cash or short-term sales only; notification; penalty for violation

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RS 909.1 - Cash or short-term sales only; notification; penalty for violation

A. No manufacturer or wholesale dealer shall sell, offer to sell, or deliver any tobacco products to any retail dealer in this state, and no retail dealer in tobacco products shall buy or accept delivery for any such product for any consideration other than cash or on terms. If payment is not received when due or payment is returned for insufficient funds, the vendor shall within five business days, notify the commissioner thereof and the commissioner shall promptly notify all manufacturers and wholesale dealers in the state of the default in payment and thereafter no person shall sell any tobacco products to the retailer in default on any other terms than cash delivery, until otherwise authorized by the commissioner. Under penalty of suspension of the permit, the retailer who is in default shall pay his obligation in full within thirty days from the date it became due.

B. Whoever violates the provisions of this Section may have his permit suspended for not more than five days for the first offense and not more than thirty days for any subsequent offense. Each failure of a retail dealer to make payment for any default before the expiration of the period of suspension constitutes a subsequent offense. In addition, the retail dealer may be required to make payment in cash for all tobacco products subsequently sold or delivered to him.

C. The commissioner shall promulgate rules and regulations for the enforcement of this Section.

Acts 2015, No. 335, §1.


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