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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 HLS 12RS-1254 REENGROSSED
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retail outlet where cigars, cigarettes, or the tobacco products are offered for sale1
either over the counter or by vending machine.2
(2) Retail Dealer Permit: A retail dealer permit shall be issued to a dealer3
other than a wholesale dealer or vending machine operator for each retail outlet4
where cigars, cigarettes, or other tobacco products are offered for sale either over the5
counter or by vending machine.6
(3)(2) Vending Machine Operator Permit: A vending machine operator7
permit shall be issued to a vending machine operator operating one or more vending8
machines. Licensed wholesale dealers who operate vending machines shall not be9
required to obtain a vending machine operator permit.10
(4)(3) Vending Machine Permit: A vending machine permit shall be issued11
to the vending machine operator or wholesale dealer for each vending machine he12
operates and such permit shall be affixed to the front surface of the vending machine13
in a location as designated by the commissioner.14
(5)(4) Wholesale Dealer Permit: A wholesale dealer permit shall be issued15
to a wholesale dealer for each wholesale place of business operated by the wholesale16
dealer.17
§903. Permit fees18
The fees for each registration certification or permit shall be as follows:19
(1) Retail dealer registration certificate -- $25.00 per year or any portion20
thereof.21
(2) Retail dealer permit -- $75.00 25.00 per year or any portion thereof.22
(3)(2) Vending machine operator -- $75.00 per year or any portion thereof.23
(4)(3) Vending machine -- $5.00 per machine per year or any portion24
thereof.25
(5)(4) Wholesale dealer -- $75.00 per year or any portion thereof.26
(6)(5) Tobacconist–The commissioner of alcohol and tobacco control shall27
promulgate rules to issue a single permit for bona fide Louisiana tobacconists. Such28
single permit shall allow any bona fide Louisiana tobacconist to operate as a retail29 HLS 12RS-1254 REENGROSSED
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tobacco dealer and as a wholesale tobacco dealer. Any fee assessed for such single1
tobacconist permit shall be set at the current rate in effect on August 15, 2010 one2
hundred dollars.3
§904. Registration certificate and permit terms Permit terms4
A. Except as otherwise provided in this Section, each registration certificate5
shall be valid for only one year. The commissioner may issue registration6
certificates which are valid for two years to applicants in good standing with the7
office of alcohol and tobacco control.8
B. To provide for the even distribution of the expiration and renewal of9
tobacco product certificates, the commissioner may establish by administrative rule10
a system by which the expiration dates of the registration certificates are staggered11
throughout the year. Certificates issued may vary in length from six months to12
twenty-four months. The fee for the registration certificate shall be apportioned to13
comply with the yearly fee established in this Chapter.14
C. Except as provided in Subsection D B of this Section, each permit shall15
be valid for the designated time period unless suspended or revoked. The16
commissioner may issue permits which are valid for two years to applicants in good17
standing with the office of alcohol and tobacco control.18
D.B. To provide for the even distribution of the expiration and renewal of19
tobacco product permits, the commissioner may establish by administrative rule a20
system by which the expiration dates of the permits are staggered throughout the21
year. Permits issued may vary in length from six months to twenty-four months.22
The fee for said the permits shall be apportioned to comply with the yearly fee23
established in this Chapter.24
E.C. Prior to issuing any permits valid for more than one year, the25
commissioner shall promulgate rules in accordance with the Administrative26
Procedure Act to provide the requirements, qualifications, and conduct which27
constitutes "good standing" for purposes of qualifying for a two-year permit.28 HLS 12RS-1254 REENGROSSED
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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. If the commissioner has authorized permits which are valid for two4
years as authorized by the provisions of R.S. 26:904, the person holding the5
certificate shall file for renewal and pay fees in accordance with this Chapter and as6
authorized by rules adopted by the commissioner pursuant to the Administrative7
Procedure Act.8
B. If a dealer fails to file an application and pay the registration certificate9
fees by the date established by the commissioner, there shall be added to the fee, in10
addition to other penalties provided in this Chapter, a delinquency penalty of twenty-11
five percent if the failure is not more than thirty days, with an additional twenty-five12
percent for each additional thirty days or fraction thereof during which the failure13
continues. If the dealer fails to make his application by the date established by the14
commissioner, the commissioner may issue a notice of violation of this Chapter.15
C. Persons holding permits under this Chapter shall annually file application16
for renewal for the ensuing year and pay the permit fees in accordance with this17
Chapter. If the commissioner has authorized permits which are valid for two years18
as authorized by the provisions of R.S. 26:904, the person holding the certificate19
permit shall file for renewal and pay fees in accordance with this Chapter and as20
authorized by rules adopted by the commissioner pursuant to the Administrative21
Procedure Act.22
D.B. If a dealer fails to file an application and pay the permit fees by the date23
established by the commissioner, there shall be added to the fee, in addition to other24
penalties provided in this Chapter, a delinquency penalty of twenty-five percent if25
the failure is not more than thirty days, with an additional twenty-five percent for26
each additional thirty days or fraction thereof during which the failure continues. If27
the dealer fails to make his application by the date established by the commissioner,28 HLS 12RS-1254 REENGROSSED
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the commissioner may, without notice or hearing, suspend his right to possess or sell1
tobacco products.2
E.C. Renewal permits may be withheld or denied on the same grounds and3
in the same manner as an original permit.4
§906. General requirements5
* * *6
B. Application for registration certificates or permits shall be on forms7
provided by the commissioner. The application shall be signed by each person8
owning the business or having ownership interest therein. If the applicant is a9
corporation, partnership, limited partnership, or limited liability company, a duly10
authorized agent, partner, or officer shall sign the application.11
C. The application shall be accompanied by the fees prescribed herein which12
fees shall be retained by the office to help defray the cost of printing, processing, and13
issuing the registration certificates or permits, providing server or seller training, and14
enforcement expenses of the office of alcohol and tobacco control. The office shall15
not require that annual renewal fees be paid by certified check or money order. A16
personal check or business check shall be sufficient for payment of the annual17
renewal fee to obtain a registration certification or permit by a dealer or vending18
machine operator. If the personal or business check is denied by the bank for any19
reason that makes it a nonnegotiable instrument, then the permit that was issued shall20
be considered revoked until such time as proper payment is made with cash, certified21
funds, money order, or cashier's check. Furthermore, said The maker shall lose their22
the privilege of tendering personal or business checks for renewal of tobacco23
permits.24
D. The application shall be made on forms secured from the office, and shall,25
in addition to such other information as the commissioner may require, show the true26
and correct name of such dealer, the dealer's post office address, the nature of the27
operation for which the registration certificate or permit is sought, the location of the28 HLS 12RS-1254 REENGROSSED
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place of business as to which the registration certificate or permit shall apply and the1
trade name of the business, if any.2
E. All applications for registration certificates or permits shall be mailed or3
delivered to the commissioner in Baton Rouge, Louisiana. Upon receipt of an4
application, the commissioner shall stamp the day, month, and year received.5
* * *6
§912. Registration certificate; permit Permits; necessity of display; penalties7
A. A registration certificate or permit issued under this Chapter is a personal8
privilege and cannot be transferred. If over fifty-one percent of a corporation is sold9
or transferred during the period for which a registration certificate or a permit was10
issued, a new registration certificate or permit must be applied for, and the new11
owner must comply with the provisions set forth in this Chapter. If the holder of the12
registration certificate or permit is an association, partnership, or limited partnership,13
a change of the controlling interest shall constitute a change of ownership under this14
Chapter. If the business is physically relocated during such period, the registration15
certificate holder or permittee must notify the commissioner in writing so that proper16
change may be noted thereon.17
B. The registration certificate or permit shall at all times be publicly18
displayed by the dealer in his principal place of business so as to be easily seen by19
the public unless the dealer is solely a vending machine operator. The failure of a20
dealer or vending machine operator to publicly display his registration certificates21
or permits, as required by this Chapter, shall be grounds for the issuance of a fine or22
the withholding, suspension, or revocation of the permit.23
C. Each registration certificate or permit shall include a unique number24
assigned by the commissioner.25
D. Nothing herein shall prohibit an individual, partnership, or corporation26
otherwise qualified from obtaining multiple registration certificates or more than one27
type of permit permits.28 HLS 12RS-1254 REENGROSSED
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§913. Violation1
No person shall perform any action for which a registration certificate or2
permit is required by this Chapter unless he holds the proper registration certificate3
or permit. Each day of business which is conducted without such a valid,4
unsuspended registration certificate or permit shall constitute a separate violation of5
this Chapter.6
* * *7
§918. Civil penalties8
* * *9
B. Any fine imposed upon any registration certificate holder or permittee or10
the revocation or suspension of a permit is in addition to and is not in lieu of or a11
limitation upon any other penalty imposed by law and not contained in this Chapter.12
§919. Administrative hearings13
A. When the commissioner holds a hearing pursuant to this Chapter, he shall14
issue a written summons or notice to the applicant or permittee, as the case may be,15
directing him to show cause why his application should not be refused or why he16
should not be assessed a penalty or why his permit should not be suspended or17
revoked. The notice or summons shall state the time, place, and hour of the hearing,18
which shall be not less than ten nor more than thirty calendar days from the day of19
the notice. The notice or summons shall enumerate the cause or causes alleged for20
refusing the application or for assessing the penalty or suspending or revoking the21
permit. If a petition has been filed opposing the issuance of the permit or asking for22
its suspension or revocation, a copy of the petition shall accompany the notice or23
summons. All notices or summonses shall be sent by certified mail to the applicant ,24
registration certificate holder, or permittee and directed to him at the address of his25
place of business as given in his application for the permit. When so addressed and26
mailed, notices or summonses shall be presumed to have been received by the27
applicant or permittee.28
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E. If a registration certificate holder, permittee, or applicant who has been1
notified of a hearing does not appear, the hearing may proceed without him and the2
commissioner may consider and dispose of the case, but in all cases the3
commissioner, upon application or ex proprio motu, may grant continuances from4
time to time. If the continuance be granted to fix a future date by written consent or5
in the presence of the permittee, registration certificate holder, or applicant, or his6
counsel, no further notice of the hearing date need be given. In all other cases the7
same notice of hearing as in original hearing shall be given.8
F. In hearings of the commissioner which finally result in withholding the9
issuance of a registration certificate or permit or in suspending or revoking a permit,10
the commissioner shall assess the costs of the hearing to the applicant or permittee.11
The costs are recoverable by the commissioner in any appellate proceeding instituted12
by the applicant or permittee or in any other judicial proceeding where the13
commissioner is successful.14
Section 2. R.S. 26:907 and 915 are hereby repealed in their entirety.15
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. HLS 12RS-1254 REENGROSSED
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are additions.
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.
(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.
Proposed law reduces the fee for a single tobacconist permit to $100.
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. 26:902-905, 906(B), (C), (D), and (E), 912, 913, 918(B), and 919(A), (E), and
(F); Repeals R.S. 26:907 and 915) HLS 12RS-1254 REENGROSSED
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Summary of Amendments Adopted by House
House Floor Amendments to the engrossed bill.
1. Added a provision to reduce the single tobacconist permit fee to $100.
2. Made technical amendments.