HLS 10RS-1083 ORIGINAL
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Regular Session, 2010
HOUSE BILL NO. 530
BY REPRESENTATIVE SAM JONES
SALES/TOBACCO TRADE: Provides for changes to the sale of tobacco products
AN ACT1
To amend and reenact R.S. 26:901(14), 902, 903, 904, 905, 906(B), (C), (D), (E), and (G),2
907.1, 908(A), 909(A)(introductory paragraph) and (E)(1), 911(B)(2) and (3)(a),3
912, 913, 915(A), (B), (C), and (D), 916(A), (B), (C), (D), and (E)(2), 918(B),4
919(A), (E), and (F), and 920(B) and (C), to enact R.S. 26:911(D), and to repeal R.S.5
26:907 and 915(G) and (H), relative to tobacco products; to redefine "tobacco6
product"; to delete the requirement that a dealer obtain a retail dealer registration7
certificate; to delete all references to the retail dealer registration certificate; to8
provide for prohibitive acts concerning the selling, offering for sale, or shipping of9
tobacco products; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 26:901(14), 902, 903, 904, 905, 906(B), (C), (D), (E), and (G), 907.1,12
908(A), 909(A)(introductory paragraph) and (E)(1), 911(B)(2) and (3)(a), 912, 913, 915(A),13
(B), (C), and (D), 916(A), (B), (C), (D), and (E)(2), 918(B), 919(A), (E), and (F), and 920(B)14
and (C) are hereby amended and reenacted and R.S. 26:911(D) is hereby enacted to read as15
follows: 16
§901. Definitions17
As used in this Chapter, the following terms have the meaning ascribed to18
them in this Section, unless the context clearly indicates otherwise:19
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(14) "Tobacco product" means any taxable commodity sold in commerce1
which is made from tobacco or to which tobacco is added, including but not limited2
to cigar cigars, cigarette cigarettes, smokeless tobacco, or smoking tobacco or any3
other form of tobacco or tobacco substitute using a hookah, pipe, water pipe, bong,4
or other similar device or method of delivery, or rolled in paper with the intent of to5
puff or inhale into the mouth, nose, or lungs.6
* * *7
§902. Registration certificates; permits Permits8
The commissioner shall issue as authorized by this Section the following9
types of certificates permits and shall adopt rules and regulations that specify the10
identifying information that is required to appear on the face of each type of11
certificate or permit:12
(1) Retail Dealer Registration Certificate: A retail dealer registration13
certificate shall be issued to any dealer, not otherwise required by this Chapter to14
obtain a permit, other than a wholesale dealer or vending machine operator for each15
retail outlet where cigars, cigarettes, or the tobacco products are offered for sale16
either over the counter or by vending machine.17
(2) Retail Dealer Permit: A retail dealer permit shall be issued to a dealer18
other than a wholesale dealer or vending machine operator for each retail outlet19
where cigars, cigarettes, or other tobacco products are offered for sale either over the20
counter or by vending machine.21
(3)(2) Vending Machine Operator Permit: A vending machine operator22
permit shall be issued to a vending machine operator operating one or more vending23
machines. Licensed wholesale dealers who operate vending machines shall not be24
required to obtain a vending machine operator permit.25
(4)(3) Vending Machine Permit: A vending machine permit shall be issued26
to the vending machine operator or wholesale dealer for each vending machine he27
operates and such permit shall be affixed to the front surface of the vending machine28
in a location as designated by the commissioner.29 HLS 10RS-1083 ORIGINAL
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(5)(4) Wholesale Dealer Permit: A wholesale dealer permit shall be issued1
to a wholesale dealer for each wholesale place of business operated by the wholesale2
dealer.3
§903. Permit fees4
The fees for each registration certification or permit shall be as follows:5
(1) Retail dealer registration certificate -- $25.00 per year or any portion6
thereof.7
(2) Retail dealer permit -- $75.00 per year or any portion thereof.8
(3)(2) Vending machine operator -- $75.00 per year or any portion thereof.9
(4)(3) Vending machine -- $5.00 per machine per year or any portion10
thereof.11
(5)(4) Wholesale dealer -- $75.00 per year or any portion thereof.12
§904. Registration certificate and permit terms Permit fees13
A. Except as provided in Subsection B of this Section, each registration14
certificate permit shall be valid for only one year unless suspended or revoked.15
B. To provide for the even distribution of the expiration and renewal of16
tobacco product certificates, the commissioner may establish by administrative rule17
a system by which the expiration dates of the registration certificates are staggered18
throughout the year. Certificates issued may vary in length from six months to19
eighteen months. The fee for said registration certificate shall be apportioned to20
comply with the yearly fee established in this Chapter.21
C. Except as provided in Subsection D of this Section, each permit shall be22
valid for only one year unless suspended or revoked.23
D. To provide for the even distribution of the expiration and renewal of24
tobacco product permits, the commissioner may establish by administrative rule a25
system by which the expiration dates of the permits are staggered throughout the26
year. Permits issued may vary in length from six months to eighteen months. The27
fee for said permits shall be apportioned to comply with the yearly fee established28
in this Chapter.29 HLS 10RS-1083 ORIGINAL
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§905. Renewal of a registration certificate or permit1
A. Persons holding registration certificates under this Chapter shall annually2
file application for renewal for the ensuing year and pay the fees in accordance with3
this Chapter.4
B. If a dealer fails to file an application and pay the registration certificate5
fees by the date established by the commissioner, there shall be added to the fee, in6
addition to other penalties provided in this Chapter, a delinquency penalty of7
twenty-five percent if the failure is not more than thirty days, with an additional8
twenty-five percent for each additional thirty days or fraction thereof during which9
the failure continues. If the dealer fails to make his application by the date10
established by the commissioner, the commissioner may issue a notice of violation11
of this Chapter.12
C. Persons holding permits under this Chapter shall annually file application13
for renewal for the ensuing year and pay the permit fees in accordance with this14
Chapter.15
D.B. If a dealer fails to file an application and pay the permit fees by the date16
established by the commissioner, there shall be added to the fee, in addition to other17
penalties provided in this Chapter, a delinquency penalty of twenty-five percent if18
the failure is not more than thirty days, with an additional twenty-f ive percent for19
each additional thirty days or fraction thereof during which the failure continues. If20
the dealer fails to make his application by the date established by the commissioner,21
the commissioner may, without notice or hearing, suspend his right to possess or sell22
tobacco products.23
E.C. Renewal permits may be withheld or denied on the same grounds and24
in the same manner as an original permit.25
§906. General requirements26
* * *27
B. Application for registration certificates or permits shall be on forms28
provided by the commissioner. The application shall be signed by each person29
owning the business or having ownership interest therein. If the applicant is a30 HLS 10RS-1083 ORIGINAL
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corporation, partnership, limited partnership, or limited liability company, a duly1
authorized agent, partner, or officer shall sign the application.2
C. The application shall be accompanied by the fees prescribed herein which3
fees shall be retained by the office to help defray the cost of printing, processing, and4
issuing the registration certificates or permits, providing server or seller training, and5
enforcement expenses of the office of alcohol and tobacco control. The office shall6
not require that annual renewal fees be paid by certified check or money order. A7
personal check or business check shall be sufficient for payment of the annual8
renewal fee to obtain a registration certification or permit by a dealer or vending9
machine operator. If the personal or business check is denied by the bank for any10
reason that makes it a nonnegotiable instrument, then the permit that was issued shall11
be considered revoked until such time as proper payment is made with cash, certified12
funds, money order, or cashier's check. Furthermore, said the maker shall lose their13
his privilege of tendering personal or business checks for renewal of tobacco permits.14
D. The application shall be made on forms secured from the office, and shall,15
in addition to such other information as the commissioner may require, show the true16
and correct name of such dealer, the dealer's post office address, the nature of the17
operation for which the registration certificate or permit is sought, the location of the18
place of business as to which the registration certificate or permit shall apply and the19
trade name of the business, if any.20
E. All applications for registration certificates or permits shall be mailed or21
delivered to the commissioner in Baton Rouge, Louisiana. Upon receipt of an22
application, the commissioner shall stamp the day, month, and year received.23
* * *24
G. In the implementation and enforcement of this Chapter the commissioner25
shall not require an applicant, registrant, or permittee permit holder to make public26
any trade negotiated contract information or business information otherwise27
protected by law.28 HLS 10RS-1083 ORIGINAL
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§907.1. Commissioner's examination of records; permit suspension or revocation1
The commissioner shall have the authority to examine invoices and sales and2
tax records of the holder of any permit issued under this Chapter. Such examination3
shall be conducted for the purpose of determining whether the permittee permit4
holder is a bona fide wholesale dealer or retail dealer who is operating in compliance5
with the requirements of this Chapter. The invoices and records examined shall be6
held confidential and shall not be made public by the commissioner unless it is7
necessary for them to be used in a judicial or administrative action to determine such8
matter.9
§908. Issuance of permit10
A. The commissioner may issue the permits immediately upon receipt of the11
application unless the application fails to comply with R.S. 26:906. For a period of12
thirty-five days after issuance, during which time the commissioner shall conduct a13
proper investigation, the permittee permit holder shall operate on a probationary14
basis subject to final action on or withholding of the permits as hereinafter provided.15
* * *16
§909. General requirements of eligibility17
A. The commissioner may suspend a permit previously issued or may refuse18
to grant a permit if, after a hearing and by a preponderance of the evidence, it is19
proven that the permittee permit holder, or an employee or agent thereof, or applicant20
either:21
* * *22
E.(1) Notwithstanding any other provision of law to the contrary, nothing23
shall prohibit any tobacconist at a particular retail outlet as defined in this Subsection24
from purchasing tobacco products for such retail outlet from any manufacturer,25
wholesale dealer, or other supplier, if such dealer has a valid, unsuspended certificate26
or permit.27
* * *28
§911. Acts prohibited29
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B.1
* * *2
(2) No wholesale dealer shall sell tobacco products for resale except to a3
retail dealer operating with either a valid registration certificate or a valid4
unsuspended permit.5
(3)(a) Notwithstanding Paragraphs (B)(1) and (2), any tobacconist at a6
particular retail outlet as defined in Subparagraph (B)(3)(b) may purchase tobacco7
products for such retail outlet from any manufacturer, wholesale dealer, if such8
dealer has a valid, unsuspended certificate or permit, or other supplier.9
* * *10
D. Except as provided by LAC 55:VII.3117, no tobacco or tobacco products,11
as defined in R.S. 26:901 and R.S. 47:842, produced or manufactured inside or12
outside of this state shall be sold or offered for sale in this state or shipped or13
transported into or within the state, except to the holder of a valid, unsuspended14
Louisiana wholesale dealer's permit. Delivery of such tobacco or tobacco products15
shall be made exclusively at the place of business of the holder of a valid,16
unsuspended Louisiana tobacco wholesale dealer's permit shown on the tobacco17
wholesale dealer's permit and must be received and warehoused by the tobacco18
wholesale dealer at that place of business, where such tobacco or tobacco products19
shall come to rest before delivery is made to the holder of a valid, unsuspended20
Louisiana tobacco retail dealer's permit.21
§912. Registration certificate; permit Permit22
A. A registration certificate or permit issued under this Chapter is a personal23
privilege and cannot be transferred. If over fifty-one percent of a corporation is sold24
or transferred during the period for which a registration certificate or a permit was25
issued, a new registration certificate or permit must be applied for, and the new26
owner must comply with the provisions set forth in this Chapter. If the holder of the27
registration certificate or permit is an association, partnership, or limited partnership,28
a change of the controlling interest shall constitute a change of ownership under this29
Chapter. If the business is physically relocated during such period, the registration30 HLS 10RS-1083 ORIGINAL
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certificate holder or permittee permit holder must notify the commissioner in writing1
so that proper change may be noted thereon.2
B. The registration certificate or permit shall at all times be publicly3
displayed by the dealer in his principal place of business so as to be easily seen by4
the public unless the dealer is solely a vending machine operator. The failure of a5
dealer or vending machine operator to publicly display his permits, as required by6
this Chapter, shall be grounds for the issuance of a fine or the withholding,7
suspension, or revocation of the permit.8
C. Each registration certificate or permit shall include a unique number9
assigned by the commissioner.10
D. Nothing herein shall prohibit an individual, partnership, or corporation11
otherwise qualified from obtaining multiple registration certificates or more than one12
type of permit.13
§913. Violation14
No person shall perform any action for which a registration certificate or15
permit is required by this Chapter unless he holds the proper registration certificate16
or permit. Each day of business which is conducted without such a valid,17
unsuspended registration certificate or permit shall constitute a separate violation of18
this Chapter.19
* * *20
§915. Fines; registration certificate permit holders21
A. The commissioner, the secretary, governing authorities of municipalities22
or parishes, sheriffs, law enforcement authorities, and citizens, in accordance with23
the procedure below, have the right to have a registration certificate permit holder24
show cause why he should not be cited and subsequently fined.25
B. The commissioner shall have periodic examinations made of the business26
of all persons holding registration certificates permits under this Chapter. If a27
violation of the Chapter or of any rule or regulation of the commissioner or the28
secretary is observed, the commissioner may give the registration certificate permit29
holder a written warning. If the registration certificate permit holder has been30 HLS 10RS-1083 ORIGINAL
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previously warned or if the violation is of a sufficiently serious nature, the1
commissioner may instruct any agent or employee of the commissioner to prepare2
and file, upon information and belief based upon the facts in hand, a petition for3
assessing a fine, setting forth the facts and circumstances of the violation, and shall4
thereupon summon the permittee permit holder to appear and show cause why the5
registration certificate permit holder should not be fined.6
C. The secretary, parish or municipal governing authorities, sheriffs, and7
other law enforcement officers may have periodic investigations made of the8
business of all registration certificate permit holders within their respective9
jurisdictions. If any violation of any provision of this Chapter or of any rule or10
regulation adopted by the commissioner is observed, such authorities may give the11
registration certificate permit holder a written warning. If the registration certificate12
permit holder has been previously warned or if the violation is of a sufficiently13
serious nature, the authority shall file an affidavit with the commissioner, setting14
forth the facts and circumstances of the violation. Thereupon, the commissioner15
shall summon the registration certificate permit holder to appear and show cause why16
he should not be fined.17
D. Any person may file with the commissioner a sworn petition requesting18
that a registration certificate permit holder be fined. When such a petition is received19
by the commissioner, he shall summon the registration certificate permit holder to20
appear and show cause why he should not be fined.21
* * *22
§916. Suspensions or revocations23
A. The commissioner, the secretary, governing authorities of municipalities24
or parishes, sheriffs, law enforcement authorities, and citizens, in accordance with25
the procedure below, have the right to have a permittee permit holder cited by the26
commissioner to show cause why his permit or permits should not be suspended or27
revoked.28
B. The commissioner shall have periodic examinations made of the29
businesses of all persons holding permits under this Chapter. If a violation of the30 HLS 10RS-1083 ORIGINAL
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Chapter or of any rule or regulation of the commissioner or the secretary is observed,1
the commissioner may give the permittee permit holder a written warning. If the2
permittee permit holder has been previously warned or if the violation is of a3
sufficiently serious nature, the commissioner may instruct any agent or employee of4
the commissioner to prepare and file, upon information and belief based upon the5
facts in hand, a petition for assessing a fine, or suspension or revocation of the6
permit, setting forth the facts and circumstances of the violation, and shall thereupon7
summon the permittee permit holder to appear and show cause why the permit8
should not be suspended or revoked or the fine not assessed.9
C. The secretary, parish or municipal governing authorities, sheriffs, and10
other law enforcement officers may have periodic investigations made of the11
businesses of all permittees permit holders within their respective jurisdictions. If12
any violation of any provision of this Chapter or of any rule or regulation adopted13
by the commissioner is observed, such authorities may give the permittee permit14
holder a written warning. If the permittee permit holder has been previously warned15
or if the violation is of a sufficiently serious nature, the authority shall file an16
affidavit with the commissioner, setting forth the facts and circumstances of the17
violation. Thereupon, the commissioner shall summon the permittee permit holder18
to appear and show cause why his permit should not be suspended or revoked.19
D. Any person may file with the commissioner a sworn petition requesting20
that a permit be suspended or revoked. When such a petition is received by the21
commissioner, he shall summon the permittee permit holder to appear and show22
cause why his permit should not be suspended or revoked.23
E.24
* * *25
(2) If it appears from the affidavits of the permittee permit holder opposing26
the petition that he cannot present by affidavit facts essential to justify his27
opposition, the commissioner may suspend or revoke a permit or may order a28 HLS 10RS-1083 ORIGINAL
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continuance to permit affidavits to be obtained or depositions to be taken or1
discovery to be had or may make such other order as is just.2
* * *3
§918. Civil penalties4
* * *5
B. Any fine imposed upon any registration certificate holder or permittee6
permit holder or the revocation or suspension of a permit is in addition to and is not7
in lieu of or a limitation upon any other penalty imposed by law and not contained8
in this Chapter.9
§919. Administrative hearings10
A. When the commissioner holds a hearing pursuant to this Chapter, he shall11
issue a written summons or notice to the applicant or permittee permit holder, as the12
case may be, directing him to show cause why his application should not be refused13
or why he should not be assessed a penalty or why his permit should not be14
suspended or revoked. The notice or summons shall state the time, place, and hour15
of the hearing, which shall be not less than ten nor more than thirty calendar days16
from the day of the notice. The notice or summons shall enumerate the cause or17
causes alleged for refusing the application or for assessing the penalty or suspending18
or revoking the permit. If a petition has been filed opposing the issuance of the19
permit or asking for its suspension or revocation, a copy of the petition shall20
accompany the notice or summons. All notices or summonses shall be sent by21
certified mail to the applicant, registration certificate holder, or permittee or permit22
holder and directed to him at the address of his place of business as given in his23
application for the permit. When so addressed and mailed, notices or summonses24
shall be presumed to have been received by the applicant or permittee permit holder.25
* * *26
E. If a registration certificate holder, permittee, permit holder or applicant27
who has been notified of a hearing does not appear, the hearing may proceed without28
him and the commissioner may consider and dispose of the case, but in all cases the29
commissioner, upon application or ex proprio motu, may grant continuances from30 HLS 10RS-1083 ORIGINAL
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time to time. If the continuance be granted to fix a future date by written consent or1
in the presence of the permittee, registration certificate holder, permit holder or2
applicant, or his counsel, no further notice of the hearing date need be given. In all3
other cases the same notice of hearing as in original hearing shall be given.4
F. In hearings of the commissioner which finally result in withholding the5
issuance of a registration certificate or permit or in suspending or revoking a permit,6
the commissioner shall assess the costs of the hearing to the applicant or permittee7
permit holder. The costs are recoverable by the commissioner in any appellate8
proceeding instituted by the applicant or permittee permit holder or in any other9
judicial proceeding where the commissioner is successful.10
§920. Appeal11
* * *12
B. Any party aggrieved by a decision of the commissioner to withhold,13
suspend, or revoke a permit may, within thirty days of the notification of the14
decision, take a devolutive or suspensive appeal to the district court having15
jurisdiction of the applicant's or permittee's permit holder's place of business,16
proposed or actual as the case may be. Such appeals shall be filed in the district17
courts in the same manner as original suits are instituted therein. The appeals shall18
be tried de novo. Either party may amend and supplement his pleadings and19
additional witnesses may be called and heard. When there has been a previous20
criminal prosecution for the same or a similar act upon which the refusal, suspension,21
or revocation of a permit is being considered, evidence of an acquittal, dismissal, or22
plea of nolo contendere in a court of competent jurisdiction is admissible in the trial23
of the appeal.24
C. Within thirty calendar days of the signing of the judgment by the district25
court in any such appeal case, the commissioner or the applicant for a permit or26
permittee permit holder, as the case may be, may file a devolutive or suspensive27
appeal of the judgment to the appellate court of proper jurisdiction. These appeals28
shall be perfected in the manner provided for in civil cases and shall be devolutive29
or suspensive only. If the district court determines that the decision of the30 HLS 10RS-1083 ORIGINAL
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commissioner in withholding, suspending, or revoking the permit was in error, the1
decision of the commissioner shall not be voided if the commissioner takes an appeal2
to the court of appeals in the time provided for suspensive appeals.3
* * *4
Section 2. R.S. 26:907 and 915(G) and (H) are hereby repealed in their entirety.5
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Sam Jones HB No. 530
Abstract: Deletes all reference to registration certificates and retail dealer registration
certificates in Chapter 7 of Title 26 of the L.R.S. of 1950 regulating the law on
tobacco products.
Present law defines "tobacco product" as meaning any cigars, cigarette, smokeless tobacco,
or smoking tobacco.
Proposed law defines "tobacco product" as meaning any taxable commodity sold in
commerce which is made from tobacco or to which tobacco is added, including but not
limited to cigars, cigarettes, smokeless tobacco, or smoking tobacco or any other form of
tobacco or tobacco substitute using a hookah, pipe, water pipe, bong, or other similar device
or method of delivery, or rolled in paper with the intent of to puff or inhale into the mouth,
nose, or lungs.
Proposed law deletes provisions requiring a retail dealer registration certificate to be issued
to any dealer, not otherwise required to obtain a permit, other than a wholesale dealer or
vending machine operator for each retail outlet where cigars, cigarettes, or the tobacco
products are offered for sale either over the counter or by vending machine.
Proposed law deletes provisions requiring an annual $25 fee for each registration
certification.
Proposed law deletes provisions authorizing the commissioner to provide for the even
distribution of the expiration and renewal of tobacco product certificates by establishing by
administrative rule a system by which the expiration dates of the registration certificates are
staggered throughout the year and may vary in length from six months to 18 months.
Proposed law deletes requirements that the commissioner charge a delinquency penalty of
25% if the failure is not more than 30 days, with an additional 25% for each additional 30
days or fraction thereof during which the failure continues when a dealer fails to timely file
an application and pay the registration certificate fees.
Proposed law prohibits any tobacco or tobacco products produced or manufactured inside
or outside of this state to be sold or offered for sale in this state, or shipped or transported
into or within the state, except to the holder of a valid, unsuspended La. wholesale dealer's
permit. Further requires each delivery of such tobacco product to be made exclusively at the
place of business of the holder of a valid, unsuspended La. tobacco wholesale dealer's permit
shown on the tobacco wholesale dealer's permit, and to be received and warehoused by the HLS 10RS-1083 ORIGINAL
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tobacco wholesale dealer at that place of business, where each tobacco product shall come
to rest before delivery is made to the holder of a retail dealer's permit.
Proposed law deletes provisions that provide that if a registration certificate holder is fined
twice within a three-year period, at his next annual registration he shall not be issued a
registration certificate but shall only be issued a permit.
Proposed law deletes provisions that authorizes a permittee who has not violated any rule
or regulation for five consecutive years from his last violation to petition the commissioner
for reinstatement as a registration certificate holder. Further deletes provisions requiring the
commissioner to hold a hearing upon a showing that the permittee has not been cited with
a violation during such period and requiring the commissioner to issue a registration
certificate.
Proposed law deletes other provisions of law that deal with retail dealer registration
certificates as to issuance of the permit; general requirements of eligibility; registration
certificates in general; fines, suspensions, and civil penalties; and procedures for appeal.
Proposed law repeals provisions requiring the commissioner to immediately issue a
registration certificate upon receipt of the application and to investigate all applications and
time limits for notification to withhold the registration certificate.
(Amends R.S. 26:901(14), 902, 903, 904, 905, 906(B), (C), (D), (E), and (G), 907.1, 908(A),
909(A)(intro. para.) and (E)(1), 911(B)(2) and (3)(a), 912, 913, 915(A), (B), (C), and (D),
916(A), (B), (C), (D), and (E)(2), 918(B), 919(A), (E), and (F), and 920(B) and (C); Adds
R.S. 26:911(D); Repeals R.S. 26:907 and 915(G) and (H))