| 1 | A bill to be entitled |
| 2 | An act relating to tobacco products; creating s. |
| 3 | 569.0076, F.S.; authorizing credit for the sale of |
| 4 | tobacco products to be extended to a retail dealer |
| 5 | under specified conditions; providing for the |
| 6 | suspension of the sale of tobacco products to retail |
| 7 | dealers delinquent in their credit payments; providing |
| 8 | procedures for challenging such suspension; providing |
| 9 | notice requirements; providing an exception to such |
| 10 | suspension for retail dealers purchasing tobacco |
| 11 | products with cash; providing an effective date. |
| 12 |
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| 13 | Be It Enacted by the Legislature of the State of Florida: |
| 14 |
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| 15 | Section 1. Section 569.0076, Florida Statutes, is created |
| 16 | to read: |
| 17 | 569.0076 Sales credit; delinquent dealers.- |
| 18 | (1) Credit for the sale of tobacco products may be |
| 19 | extended to any dealer up to, but not including, the 10th day |
| 20 | after the calendar week in which the sale was made. |
| 21 | (2) If payment for sales to a dealer is not made by the |
| 22 | period specified in subsection (1), the distributor who made the |
| 23 | sale shall, within 3 days, notify the division in writing of |
| 24 | such nonpayment. The division, upon receipt of such notice, |
| 25 | shall, after the proceedings provided in subsection (3), declare |
| 26 | in writing to the dealer and to all manufacturers and |
| 27 | distributors within the state that all further sales by credit |
| 28 | to the dealer are prohibited until the division certifies in |
| 29 | writing that the dealer has fully paid for all tobacco products |
| 30 | previously purchased. However, if a distributor receives payment |
| 31 | within the 3-day period after the 10th day after the calendar |
| 32 | week in which the sale was made, the distributor, if |
| 33 | notification to the division has not already been made, is not |
| 34 | required to notify the division. Payments made within the 3-day |
| 35 | period do not constitute a violation of this section. |
| 36 | (3) Before prohibiting sales by credit to a dealer under |
| 37 | this section, the division shall, within 2 days after receipt of |
| 38 | the notice of nonpayment under subsection (2), give written |
| 39 | notice to the dealer by mail of the receipt by the division of |
| 40 | the notice of nonpayment and the dealer shall be directed to |
| 41 | make payment or, upon failure to do so, show cause before the |
| 42 | division why further sales to the dealer should not be |
| 43 | prohibited. Cause may be made by showing payment, failure of |
| 44 | consideration, or any other defense that would be considered |
| 45 | sufficient in a common-law action. The dealer shall have 5 days |
| 46 | after receipt of such notice to show such cause and may demand a |
| 47 | hearing, provided he or she does so in writing delivered to the |
| 48 | division either in person or by mail within the 5-day period. If |
| 49 | a demand for hearing is not made, the division shall declare in |
| 50 | writing to the dealer and to all manufacturers and distributors |
| 51 | within the state that all further sales by credit to the dealer |
| 52 | are prohibited until the division certifies in writing that the |
| 53 | dealer has fully paid for all tobacco products previously |
| 54 | purchased. If such prohibition on sales is ordered by the |
| 55 | division, the dealer may apply for a review of the decision by |
| 56 | the Department of Business and Professional Regulation within 5 |
| 57 | days after receiving notice of prohibition on sales. If the |
| 58 | application for the review is timely filed, the prohibition on |
| 59 | sales shall be suspended until final disposition of the review |
| 60 | by the department. |
| 61 | (4) Upon receipt by the division from the distributor of |
| 62 | the notice of nonpayment under subsection (2), the division |
| 63 | shall notify the delinquent dealer and all distributors in the |
| 64 | state that no further purchases by or sales of tobacco products |
| 65 | to the dealer, except for cash, shall be made until good cause |
| 66 | is shown by the dealer as provided in this section. Tobacco |
| 67 | products may not be purchased by the dealer or sold to the |
| 68 | dealer by any distributor, except for cash, from and after such |
| 69 | notification by the division and until cause is shown pursuant |
| 70 | to subsection (3). If cause is not shown, all further sales, for |
| 71 | cash or credit, are prohibited after such declaration in writing |
| 72 | by the division is sent to such dealer and distributors and |
| 73 | until all delinquent accounts have been paid. |
| 74 | Section 2. This act shall take effect July 1, 2012. |