HLS 12RS-1254 ORIGINAL Page 1 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2012 HOUSE BILL NO. 1098 BY REPRESENTATIVE CHAMPAGNE SALES/TOBACCO LICENSE: Establishes one permit for tobacco retail dealers by eliminating the tobacco registration certificate AN ACT1 To amend and reenact R.S. 26:902 through 905, 906(B), (C), (D), and (E), 912, 913, 918(B),2 and 919(A), (E), and (F) and to repeal R.S. 26:907 and 915, relative to tobacco3 product permits for retail dealers; to eliminate requirements relative to registration4 certificates for tobacco retail dealers and all references thereto; to provide for a5 single class of permits for tobacco retail dealers; to provide for a decrease in retail6 dealer permit fees; and to provide for related matters.7 Be it enacted by the Legislature of Louisiana:8 Section 1. R.S. 26:902 through 905, 906(B), (C), (D), and (E), 912, 913, 918(B), and9 919(A), (E), and (F) are hereby amended and reenacted to read as follows: 10 §902. Registration certificates; permits Permits11 The commissioner shall issue as authorized by this Section the following12 types of certificates permits and shall adopt rules and regulations that specify the13 identifying information that is required to appear on the face of each type of14 certificate or permit:15 (1) Retail Dealer Registration Certificate: A retail dealer registration16 certificate shall be issued to any dealer, not otherwise required by this Chapter to17 obtain a permit, other than a wholesale dealer or vending machine operator for each18 retail outlet where cigars, cigarettes, or the tobacco products are offered for sale19 either over the counter or by vending machine.20 HLS 12RS-1254 ORIGINAL HB NO. 1098 Page 2 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) Retail Dealer Permit: A retail dealer permit shall be issued to a dealer1 other than a wholesale dealer or vending machine operator for each retail outlet2 where cigars, cigarettes, or other tobacco products are offered for sale either over the3 counter or by vending machine.4 (3)(2) Vending Machine Operator Permit: A vending machine operator5 permit shall be issued to a vending machine operator operating one or more vending6 machines. Licensed wholesale dealers who operate vending machines shall not be7 required to obtain a vending machine operator permit.8 (4)(3) Vending Machine Permit: A vending machine permit shall be issued9 to the vending machine operator or wholesale dealer for each vending machine he10 operates and such permit shall be affixed to the front surface of the vending machine11 in a location as designated by the commissioner.12 (5)(4) Wholesale Dealer Permit: A wholesale dealer permit shall be issued13 to a wholesale dealer for each wholesale place of business operated by the wholesale14 dealer.15 §903. Permit fees16 The fees for each registration certification or permit shall be as follows:17 (1) Retail dealer registration certificate -- $25.00 per year or any portion18 thereof.19 (2) Retail dealer permit -- $75.00 25.00 per year or any portion thereof.20 (3)(2) Vending machine operator -- $75.00 per year or any portion thereof.21 (4)(3) Vending machine -- $5.00 per machine per year or any portion22 thereof.23 (5)(4) Wholesale dealer -- $75.00 per year or any portion thereof.24 (6)(5) Tobacconist–The commissioner of alcohol and tobacco control shall25 promulgate rules to issue a single permit for bona fide Louisiana tobacconists. Such26 single permit shall allow any bona fide Louisiana tobacconist to operate as a retail27 tobacco dealer and as a wholesale tobacco dealer. Any fee assessed for such single28 tobacconist permit shall be set at the current rate in effect on August 15, 2010.29 HLS 12RS-1254 ORIGINAL HB NO. 1098 Page 3 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §904. Registration certificate and permit terms Permit terms1 A. Except as otherwise provided in this Section, each registration certificate2 shall be valid for only one year. The commissioner may issue registration3 certificates which are valid for two years to applicants in good standing with the4 office of alcohol and tobacco control.5 B. To provide for the even distribution of the expiration and renewal of6 tobacco product certificates, the commissioner may establish by administrative rule7 a system by which the expiration dates of the registration certificates are staggered8 throughout the year. Certificates issued may vary in length from six months to9 twenty-four months. The fee for the registration certificate shall be apportioned to10 comply with the yearly fee established in this Chapter.11 C. Except as provided in Subsection D B of this Section, each permit shall12 be valid for the designated time period unless suspended or revoked. The13 commissioner may issue permits which are valid for two years to applicants in good14 standing with the office of alcohol and tobacco control.15 D.B. To provide for the even distribution of the expiration and renewal of16 tobacco product permits, the commissioner may establish by administrative rule a17 system by which the expiration dates of the permits are staggered throughout the18 year. Permits issued may vary in length from six months to twenty-four months.19 The fee for said the permits shall be apportioned to comply with the yearly fee20 established in this Chapter.21 E.C. Prior to issuing any permits valid for more than one year, the22 commissioner shall promulgate rules in accordance with the Administrative23 Procedure Act to provide the requirements, qualifications, and conduct which24 constitutes "good standing" for purposes of qualifying for a two-year permit.25 §905. Renewal of a registration certificate or permit26 A. Persons holding registration certificates under this Chapter shall annually27 file application for renewal for the ensuing year and pay the fees in accordance with28 this Chapter. If the commissioner has authorized permits which are valid for two29 HLS 12RS-1254 ORIGINAL HB NO. 1098 Page 4 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. years as authorized by the provisions of R.S. 26:904, the person holding the1 certificate shall file for renewal and pay fees in accordance with this Chapter and as2 authorized by rules adopted by the commissioner pursuant to the Administrative3 Procedure Act.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 of twenty-7 five percent if the failure is not more than thirty days, with an additional twenty-five8 percent for each additional thirty days or fraction thereof during which the failure9 continues. If the dealer fails to make his application by the date established by the10 commissioner, the commissioner may issue a notice of violation of this Chapter.11 C. Persons holding permits under this Chapter shall annually file application12 for renewal for the ensuing year and pay the permit fees in accordance with this13 Chapter. If the commissioner has authorized permits which are valid for two years14 as authorized by the provisions of R.S. 26:904, the person holding the certificate15 shall file for renewal and pay fees in accordance with this Chapter and as authorized16 by rules adopted by the commissioner pursuant to the Administrative Procedure Act.17 D.B. If a dealer fails to file an application and pay the permit fees by the date18 established by the commissioner, there shall be added to the fee, in addition to other19 penalties provided in this Chapter, a delinquency penalty of twenty- five percent if20 the failure is not more than thirty days, with an additional twenty-five percent for21 each additional thirty days or fraction thereof during which the failure continues. If22 the dealer fails to make his application by the date established by the commissioner,23 the commissioner may, without notice or hearing, suspend his right to possess or sell24 tobacco products.25 E.C. Renewal permits may be withheld or denied on the same grounds and26 in the same manner as an original permit.27 HLS 12RS-1254 ORIGINAL HB NO. 1098 Page 5 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. §906. General requirements1 * * *2 B. Application for registration certificates or permits shall be on forms3 provided by the commissioner. The application shall be signed by each person4 owning the business or having ownership interest therein. If the applicant is a5 corporation, partnership, limited partnership, or limited liability company, a duly6 authorized agent, partner, or officer shall sign the application.7 C. The application shall be accompanied by the fees prescribed herein which8 fees shall be retained by the office to help defray the cost of printing, processing, and9 issuing the registration certificates or permits, providing server or seller training, and10 enforcement expenses of the office of alcohol and tobacco control. The office shall11 not require that annual renewal fees be paid by certified check or money order. A12 personal check or business check shall be sufficient for payment of the annual13 renewal fee to obtain a registration certification or permit by a dealer or vending14 machine operator. If the personal or business check is denied by the bank for any15 reason that makes it a nonnegotiable instrument, then the permit that was issued shall16 be considered revoked until such time as proper payment is made with cash, certified17 funds, money order, or cashier's check. Furthermore, said The maker shall lose their18 the privilege of tendering personal or business checks for renewal of tobacco19 permits.20 D. The application shall be made on forms secured from the office, and shall,21 in addition to such other information as the commissioner may require, show the true22 and correct name of such dealer, the dealer's post office address, the nature of the23 operation for which the registration certificate or permit is sought, the location of the24 place of business as to which the registration certificate or permit shall apply and the25 trade name of the business, if any.26 HLS 12RS-1254 ORIGINAL HB NO. 1098 Page 6 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. E. All applications for registration certificates or permits shall be mailed or1 delivered to the commissioner in Baton Rouge, Louisiana. Upon receipt of an2 application, the commissioner shall stamp the day, month, and year received.3 * * *4 §912. Registration certificate; permit Permits; necessity of display; penalties5 A. A registration certificate or permit issued under this Chapter is a personal6 privilege and cannot be transferred. If over fifty-one percent of a corporation is sold7 or transferred during the period for which a registration certificate or a permit was8 issued, a new registration certificate or permit must be applied for, and the new9 owner must comply with the provisions set forth in this Chapter. If the holder of the10 registration certificate or permit is an association, partnership, or limited partnership,11 a change of the controlling interest shall constitute a change of ownership under this12 Chapter. If the business is physically relocated during such period, the registration13 certificate holder or permittee must notify the commissioner in writing so that proper14 change may be noted thereon.15 B. The registration certificate or permit shall at all times be publicly16 displayed by the dealer in his principal place of business so as to be easily seen by17 the public unless the dealer is solely a vending machine operator. The failure of a18 dealer or vending machine operator to publicly display his registration certificates19 or permits, as required by this Chapter, shall be grounds for the issuance of a fine or20 the withholding, suspension, or revocation of the permit.21 C. Each registration certificate or permit shall include a unique number22 assigned by the commissioner.23 D. Nothing herein shall prohibit an individual, partnership, or corporation24 otherwise qualified from obtaining multiple registration certificates or more than one25 type of permit permits.26 §913. Violation27 No person shall perform any action for which a registration certificate or28 permit is required by this Chapter unless he holds the proper registration certificate29 HLS 12RS-1254 ORIGINAL HB NO. 1098 Page 7 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. or permit. Each day of business which is conducted without such a valid,1 unsuspended registration certificate or permit shall constitute a separate violation of2 this Chapter.3 * * *4 §918. Civil penalties5 * * *6 B. Any fine imposed upon any registration certificate holder or permittee or7 the revocation or suspension of a permit is in addition to and is not in lieu of or a8 limitation upon any other penalty imposed by law and not contained 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, as the case may be,12 directing him to show cause why his application should not be refused or why he13 should not be assessed a penalty or why his permit should not be suspended or14 revoked. The notice or summons shall state the time, place, and hour of the hearing,15 which shall be not less than ten nor more than thirty calendar days from the day of16 the notice. The notice or summons shall enumerate the cause or causes alleged for17 refusing the application or for assessing the penalty or suspending or revoking the18 permit. If a petition has been filed opposing the issuance of the permit or asking for19 its suspension or revocation, a copy of the petition shall accompany the notice or20 summons. All notices or summonses shall be sent by certified mail to the applicant ,21 registration certificate holder, or permittee and directed to him at the address of his22 place of business as given in his application for the permit. When so addressed and23 mailed, notices or summonses shall be presumed to have been received by the24 applicant or permittee.25 * * *26 E. If a registration certificate holder, permittee, or applicant who has been27 notified of a hearing does not appear, the hearing may proceed without him and the28 commissioner may consider and dispose of the case, but in all cases the29 HLS 12RS-1254 ORIGINAL HB NO. 1098 Page 8 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. commissioner, upon application or ex proprio motu, may grant continuances from1 time to time. If the continuance be granted to fix a future date by written consent or2 in the presence of the permittee, registration certificate holder, or applicant, or his3 counsel, no further notice of the hearing date need be given. In all other cases the4 same notice of hearing as in original hearing shall be given.5 F. In hearings of the commissioner which finally result in withholding the6 issuance of a registration certificate or permit or in suspending or revoking a permit,7 the commissioner shall assess the costs of the hearing to the applicant or permittee.8 The costs are recoverable by the commissioner in any appellate proceeding instituted9 by the applicant or permittee or in any other judicial proceeding where the10 commissioner is successful.11 Section 2. R.S. 26:907 and 915 are hereby repealed in their entirety.12 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)] Champagne HB No. 1098 Abstract: Establishes one permit for tobacco retail dealers by eliminating the tobacco registration certificate. Present law requires the commissioner to issue certificates and to adopt rules and regulations that provides identifying information on the face of the certificate or permit. Proposed law retains present law except that it removes the requirement relative to a registration certificate. Present law provides for a retail dealer registration certificate to be issued to any dealer, 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 present law. Present law provides for fees relative to registration certification or permit for each year or any portion thereof as follows: (1)$25 for a retail dealer registration certificate. (2)$75 for a retail dealer permit. (3)$5 for a vending machine. HLS 12RS-1254 ORIGINAL HB NO. 1098 Page 9 of 9 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (4)$75 for a wholesale dealer. (5)Requires the commissioner of the ATC to promulgate rules to issue a single permit for bona fide La. tobacconists, which allows the tobacconist to operate as a retail tobacco dealer and as a wholesale tobacco dealer and any fee assessed will be set at the current rate in effect on Aug. 15, 2010. Proposed law retains present law except that it deletes the retail dealer registration certificate fee and changes the retail dealer permit fee from $75 to $25. Present law requires that each registration certificate is valid for only one year and authorizes the commissioner to issue registration certificates that are valid for two years if the applicant is in good standing with the ATC. Proposed law deletes present law. Present law authorizes the commissioner to establish by administrative rule, a system by which the expiration dates of the registration certificates are staggered throughout the year and allows the certificates to vary in length from six months to 24 months. Proposed law deletes present law. Present law provides that any person holding registration certificates to annually file applications for renewal for the ensuing year and pay the fees in accordance with present law and if the commissioner authorized permits that were valid for two years, the certificate holder shall file for renewal and pay fees in accordance with the rules adopted by the commissioner pursuant to the Administrative Procedure Act. Proposed law deletes present law. Present law requires a delinquency penalty of 25% if the registration certificate fees are not more than 30 days past the established date for payment and an additional 25% for each additional 30 days the payment of fees are not paid and a notice of violation may be issued by the commissioner. Proposed law deletes present law. Present law provides for general requirements, violations, and civil penalties relative to registration certificates or permits. Proposed law retains present law except all references to registration certificates are deleted from present law. (Amends R.S. 26:902 through 905, 906(B), (C), (D), and (E), 912, 913, 918(B), and 919(A), (E), and (F); Repeals R.S. 26:907 and 915)