HB2494 Summary

• Creates retailer licensing requirement for cigarettes and tobacco products effective January 1, 2016, with $75 annual fee per location deposited into Tax Compliance and Administration Fund.

• Establishes retailer license eligibility criteria excluding persons convicted of felonies related to illegal cigarette/tobacco transportation, sale, or distribution without sufficient rehabilitation determination.

• Adds criminal penalties making violations of cigarette enforcement prohibitions and documentation requirements Class 4 felonies, and creates specific penalties for retailers knowingly possessing counterfeit or unstamped cigarettes.

• Requires licensed distributors to display license numbers on all sales invoices to retailers and implements mandatory 48-hour notification procedures for retailers unknowingly possessing contraband cigarettes.

• Establishes progressive suspension schedule for retailer licenses based on violations of minimum-age tobacco laws, with reduced penalties (3 days) if retailer maintains compliant training program versus longer suspensions (up to 30 days) without training.