As of Aug. 1, tobacco product nonpayment could result in suspension/revocation of retailer tobacco permits

Starting Aug. 1, a retailer’s tobacco permit can be suspended or revoked if the retailer fails to pay the manufacturer or distributor for an invoiced purchase of tobacco products, under Act No. 2021-385.

The governor signed SB325 by Sen. Dan Roberts, R-Birmingham, into law May 6. The Alabama House had approved the bill April 27, while the Alabama Senate approved it March 30.

The law calls for an up to 30-day suspension for each offense. The retailer can pay a fee and get early reinstatement of the permit if the retailer pays for the tobacco products before the suspension ends.

No permit will be suspended or revoked without prior notice to the retailer and an opportunity for the retailer to be heard before the Alcoholic Beverage Control Board, which issues tobacco permits to distributors and retailers.

Roberts told lawmakers “wholesale brokers are not being paid for tobacco products. Taxes also are not being paid.

Reforms of nicotine/tobacco sales/advertising effective Aug. 1

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