Senate Bill 2788

AN ACT TO AMEND SECTION 27-69-9, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT MANUFACTURERS AND WHOLESALE DEALERS IN TOBACCO PRODUCTS SHALL NOT SELL, OFFER TO SELL, OR DELIVER ANY TOBACCO PRODUCTS TO RETAILERS IN TOBACCO PRODUCTS AND THAT RETAILERS SHALL NOT BUY OR ACCEPT DELIVERY FOR ANY SUCH PRODUCT FOR ANY CONSIDERATION OTHER THAN CASH OR ON TERMS; TO PROVIDE THAT IF PAYMENT IS NOT RECEIVED WHEN DUE OR PAYMENT IS RETURNED FOR INSUFFICIENT FUNDS, THE VENDOR, WITHIN FIVE BUSINESS DAYS, SHALL NOTIFY THE COMMISSIONER OF REVENUE, AND THE COMMISSIONER OF REVENUE SHALL PROMPTLY NOTIFY ALL MANUFACTURERS AND WHOLESALE DEALERS IN THE STATE OF THE DEFAULT IN PAYMENT AND THAT 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 OF REVENUE; TO AUTHORIZE THE COMMISSIONER OF REVENUE TO SUSPEND OR REVOKE THE PERMIT OF A RETAILER FOR NONPAYMENT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-69-9, Mississippi Code of 1972, is amended as follows:

27-69-9. (1) In addition to the penalties imposed in this chapter, after the second offense for any violation, the commissioner may revoke any permit * * *~~which~~ that may have been issued to any person, or persons, violating any provisions of this chapter, or any rules or regulations promulgated by the commissioner under authority of this chapter.

(2) (a) No manufacturer or wholesale dealer shall sell, offer to sell, or deliver any tobacco products to any retailer in this state and no retailer 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, within five (5) business days, shall 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 (30) days from the date it became due.

(b) Any retailer that violates the provisions of this section may have his permit suspended for not more than thirty (30) days for each offense. Each failure of a retailer to make payment for any default before the expiration period of suspension constitutes a separate offense. The commissioner may permanently revoke the retail permit of any retailer who is suspended for default in payment for more than six (6) months in any twelve-month period.

(c) In addition, the commissioner may require the retailer to make payment in cash for all tobacco products subsequently sold or delivered to him.

(3) The commissioner, in the event a permit is suspended or revoked, is required to notify all manufacturers, wholesalers and distributors having a permit required by this chapter, that the permit has been suspended or revoked, and such manufacturer, wholesaler and distributor is henceforth prohibited from selling taxable tobacco to such dealer or retailer. The commissioner may notify manufacturers, wholesalers and distributors as required by this paragraph either manually or electronically and shall specify by rule or regulation the method by which the notification shall be made.

SECTION 2. This act shall take effect and be in force from and after July 1, 2020.