SB325 Summary

• Manufacturers and distributors may only sell tobacco and related products to retailers for cash or on agreed terms; retailers must purchase using the same payment methods.

• Manufacturers or distributors must notify the Alabama Alcoholic Beverage Control Board within 15 business days if a retailer fails to pay an invoice when due or payment is returned for insufficient funds.

• Retailers in default must pay their full obligation within 60 days from the due date or face permit suspension for up to 30 days per offense; early reinstatement is available upon payment of a board-determined fee.

• The board may permanently revoke a tobacco permit if a retailer is suspended for non-payment for more than 6 months within any 12-month period, and may require cash-only payments for future purchases after an initial payment failure.

• The act becomes effective on the first day of the third month following passage and gubernatorial approval, or when otherwise becoming law.