Bill Text: FL H0615 | 2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Sale of Tobacco Products

Spectrum:

Status: (Failed) 2012-03-09 - Died in Economic Affairs Committee, companion bill(s) passed, see CS/CS/HB 887 (Ch. [H0615 Detail]

Download: Florida-2012-H0615-Introduced.html

---

HB 615

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
13	Be It Enacted by the Legislature of the State of Florida:
14
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.

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