HLS 15RS-1058 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 467
BY REPRESENTATIVE HARRIS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TOBACCO/TOBACCO PRODUCTS: Provides relative to the payment and purchase of
tobacco products
1 AN ACT
2To enact R.S. 26:909.1, relative to sales of tobacco products; to provide relative to the
3 payment and purchase of tobacco products for wholesale and retail dealers; to require
4 specific consideration for tobacco products; to provide for notification requirements
5 relative to a retailer's failure to timely make payments for receipt of products; to
6 authorize the commissioner to suspend certain permits for untimely payment; to
7 require the commissioner to promulgate rules and regulations; and to provide for
8 related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 26:909.1 is hereby enacted to read as follows:
11 ยง909.1. Cash or short-term sales only; notification; penalty for violation
12 A. No manufacturer or wholesale dealer shall sell, offer to sell, or deliver
13 any tobacco products to any retail dealer in this state, and no retail dealer in tobacco
14 products shall buy or accept delivery for any such product for any consideration
15 other than cash or on terms. If payment is not received when due or payment is
16 returned for insufficient funds, the vendor shall within five business days, notify the
17 commissioner thereof and the commissioner shall promptly notify all manufacturers
18 and wholesale dealers in the state of the default in payment and thereafter no person
19 shall sell any tobacco products to the retailer in default on any other terms than cash
20 delivery, until otherwise authorized by the commissioner. Under penalty of
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1058 ORIGINAL
HB NO. 467
1 suspension of the permit, the retailer who is in default shall pay his obligation in full
2 within thirty days from the date it became due.
3 B. Whoever violates the provisions of this Section may have his permit
4 suspended for not more than five days for the first offense and not more than thirty
5 days for any subsequent offense. Each failure of a retail dealer to make payment for
6 any default before the expiration of the period of suspension constitutes a subsequent
7 offense. In addition, the retail dealer may be required to make payment in cash for
8 all tobacco products subsequently sold or delivered to him.
9 C. When a permit is suspended or revoked pursuant to this Section, the
10 commissioner may, at the same time, order that no state or local permit shall be
11 issued covering the same premises until all debts are satisfied by the retail dealer
12 whose permit was suspended or revoked for failure to make payment for any default.
13 D. The commissioner shall promulgate rules and regulations for the
14 enforcement of this Section.
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)]
HB 467 Original 2015 Regular Session Harris
Abstract: Requires all consideration for tobacco products be made in cash or on terms, and
provides relative to notification and penalties for default in payment.
Proposed law prohibits all manufacturers and wholesale dealers from selling, delivering, or
offering for sale, tobacco products to any retail dealer for any consideration other than cash
or payment on terms.
Proposed law requires the manufacturer and wholesaler to immediately notify the
commissioner of any payments that have not been made by the due date or returned for
insufficient funds, and further requires the commissioner to notify all manufacturers and
wholesale dealers in the state that the retail dealer has defaulted on payment.
Proposed law requires that upon notification all manufacturers and wholesale dealers in the
state shall accept only cash delivery for any tobacco products until otherwise authorized by
the commissioner. Proposed law requires that the retail dealer in default to pay the
obligation in full within 30 days of the due date.
Proposed law authorizes the commissioner to suspend the permit of any person who violates
the provisions of proposed law for not more than five days for the first offense and not more
than 30 days for any subsequent offense, which includes each failure to make payment for
any default during the period of suspension.
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1058 ORIGINAL
HB NO. 467
Proposed law authorizes payment to be made in cash for all tobacco products subsequently
sold or delivered to the retail dealer.
Proposed law authorizes the commissioner to order that no state or local permit be issued for
the same premises where a retail dealer operates whose permit has been suspended or
revoked for failure to make payment for products received.
Requires the commissioner to promulgate rules and regulations for the enforcement of
proposed law.
(Adds 26:909.1)
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.