SB325 Alabama 2021 Session

Summary

Primary Sponsor

Dan RobertsSenator

Republican

Co-Sponsor

Steve Livingston

Session

Regular Session 2021

Title

Tobacco, tobacco permits suspendable in cases of failure by retailers to pay distributors, Sec. 28-11-20 added.

Summary

SB325 lets Alabama suspend or revoke tobacco retailer permits for unpaid invoices to distributors, with reinstatement options and board enforcement rules.

What This Bill Does

If a retailer fails to pay an invoiced amount, the board will be notified and sales on non-cash terms can be halted until the board approves otherwise. A retailer in default can have their tobacco permit suspended for up to 30 days per offense, with a possible early reinstatement fee if they repay before the end of the suspension; each default is a separate offense. If a retailer experiences more than six months of suspensions in any 12-month period, the board may permanently revoke their permit. The board may require cash payments for all sales to a retailer after an initial failure and will adopt rules to implement these provisions.

Who It Affects

• Tobacco retailers in Alabama, who could have their tobacco permits suspended or revoked for failing to pay invoices to distributors and may be restricted to cash terms or denied further sales until payment is made.
• Tobacco product manufacturers/distributors and the Alabama Alcoholic Beverage Control Board (ABC Board), who must notify the board of defaults, stop selling to defaulting retailers on non-cash terms, and implement and enforce the new rules.

Key Provisions

• Adds section 28-11-20 establishing non-cash sale terms and automatic suspension restrictions for retailers who default on payments to distributors.
• Requires manufacturers/distributors to notify the ABC Board within 15 business days of a retailer's payment default, and for the board to inform all licensees of the default.
• Prohibits sales to retailers in default on non-cash terms until authorized by the board; requires payment in full within 60 days of the due date.
• Authorizes suspension of a retailer's tobacco permit for up to 30 days per offense and allows early reinstatement upon repayment with a board-determined fee.
• Treats each payment default during a suspension as a separate offense and allows permanent permit revocation if suspended for more than six months in a 12-month period.
• Gives the board authority to require cash payment for all sales to retailers after an initial failure and to adopt rules to implement these provisions.
• Effective date: becomes law on the first day of the third month after passage and approval.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Tobacco