HB 615

A bill to be entitled
2An act relating to tobacco products; creating s.
3569.0076, F.S.; authorizing credit for the sale of
4tobacco products to be extended to a retail dealer
5under specified conditions; providing for the
6suspension of the sale of tobacco products to retail
7dealers delinquent in their credit payments; providing
8procedures for challenging such suspension; providing
9notice requirements; providing an exception to such
10suspension for retail dealers purchasing tobacco
11products with cash; providing an effective date.
13Be It Enacted by the Legislature of the State of Florida:
15     Section 1.  Section 569.0076, Florida Statutes, is created
16to read:
17     569.0076  Sales credit; delinquent dealers.-
18     (1)  Credit for the sale of tobacco products may be
19extended to any dealer up to, but not including, the 10th day
20after the calendar week in which the sale was made.
21     (2)  If payment for sales to a dealer is not made by the
22period specified in subsection (1), the distributor who made the
23sale shall, within 3 days, notify the division in writing of
24such nonpayment. The division, upon receipt of such notice,
25shall, after the proceedings provided in subsection (3), declare
26in writing to the dealer and to all manufacturers and
27distributors within the state that all further sales by credit
28to the dealer are prohibited until the division certifies in
29writing that the dealer has fully paid for all tobacco products
30previously purchased. However, if a distributor receives payment
31within the 3-day period after the 10th day after the calendar
32week in which the sale was made, the distributor, if
33notification to the division has not already been made, is not
34required to notify the division. Payments made within the 3-day
35period do not constitute a violation of this section.
36     (3)  Before prohibiting sales by credit to a dealer under
37this section, the division shall, within 2 days after receipt of
38the notice of nonpayment under subsection (2), give written
39notice to the dealer by mail of the receipt by the division of
40the notice of nonpayment and the dealer shall be directed to
41make payment or, upon failure to do so, show cause before the
42division why further sales to the dealer should not be
43prohibited. Cause may be made by showing payment, failure of
44consideration, or any other defense that would be considered
45sufficient in a common-law action. The dealer shall have 5 days
46after receipt of such notice to show such cause and may demand a
47hearing, provided he or she does so in writing delivered to the
48division either in person or by mail within the 5-day period. If
49a demand for hearing is not made, the division shall declare in
50writing to the dealer and to all manufacturers and distributors
51within the state that all further sales by credit to the dealer
52are prohibited until the division certifies in writing that the
53dealer has fully paid for all tobacco products previously
54purchased. If such prohibition on sales is ordered by the
55division, the dealer may apply for a review of the decision by
56the Department of Business and Professional Regulation within 5
57days after receiving notice of prohibition on sales. If the
58application for the review is timely filed, the prohibition on
59sales shall be suspended until final disposition of the review
60by the department.
61     (4)  Upon receipt by the division from the distributor of
62the notice of nonpayment under subsection (2), the division
63shall notify the delinquent dealer and all distributors in the
64state that no further purchases by or sales of tobacco products
65to the dealer, except for cash, shall be made until good cause
66is shown by the dealer as provided in this section. Tobacco
67products may not be purchased by the dealer or sold to the
68dealer by any distributor, except for cash, from and after such
69notification by the division and until cause is shown pursuant
70to subsection (3). If cause is not shown, all further sales, for
71cash or credit, are prohibited after such declaration in writing
72by the division is sent to such dealer and distributors and
73until all delinquent accounts have been paid.
74     Section 2.  This act shall take effect July 1, 2012.

CODING: Words stricken are deletions; words underlined are additions.