HB1606 Summary

• Permitted manufacturers and wholesalers must sell tobacco, vapor, alternative nicotine products, and e-liquids to retailers only for cash or on established payment terms.

• If a retailer's payment is past due or returned for insufficient funds, the manufacturer or wholesaler must notify Arkansas Tobacco Control within 5 business days, which then notifies other permitted sellers that the retailer is prohibited from purchasing.

• Arkansas Tobacco Control may suspend a retailer's permit for up to 7 days for the first offense and 10-30 days for subsequent offenses within 48 months if the retailer fails to pay within 30 days of the debt becoming due.

• Retailers may be required to pay cash for all future tobacco product purchases and new owners acquiring a retail location remain responsible for unpaid debts from previous owners.

• The Director of Arkansas Tobacco Control and the Arkansas Tobacco Control Board may adopt rules necessary to implement these provisions.