(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.
Structure Code of Alabama
Title 28 - Intoxicating Liquor, Malt Beverages and Wine.
Chapter 11 - Sale of Tobacco Products Regulated by the Alcoholic Beverage Control Board.
Section 28-11-1 - Legislative Intent.
Section 28-11-2 - Definitions.
Section 28-11-3 - Minors Enlisted to Help Board Enforce State and Federal Laws.
Section 28-11-4 - Purpose of Rules.
Section 28-11-5 - Tobacco Prevention Materials; Funding.
Section 28-11-6 - Distribution of Tobacco or Tobacco Products.
Section 28-11-6.1 - Vending Machines.
Section 28-11-6.2 - Self-Service Displays.
Section 28-11-7 - Distribution Permits.
Section 28-11-8 - Failure to Obtain or Display Permit.
Section 28-11-9 - Suspension or Revocation of Permit; Hearing Commission; Fines.
Section 28-11-10 - Disposition of Funds.
Section 28-11-11 - Annual Report.
Section 28-11-12 - Advisory Board.
Section 28-11-14 - Fines for Unlawful Possession of Contraband.
Section 28-11-16 - Advertising Restrictions.
Section 28-11-17 - Distribution, Sale, etc., in Violation of Federal Law or Fda Rule.
Section 28-11-18 - Child-Resistant Packaging; Warning Signs.
Section 28-11-19 - Limitations on Location of Retail Businesses.
Section 28-11-21 - Duties of Department of Mental Health; Annual Report; Transitional Grant Monies.