MS SB2788

Manufacturers and wholesale dealers shall only sell tobacco products to retailers for cash or on agreed-upon terms; retailers shall only purchase on the same basis.

Vendors must notify the Commissioner of Revenue within five business days if payment is not received when due or if a check is returned for insufficient funds.

The Commissioner shall notify all manufacturers and wholesale dealers in the state of payment defaults, and no tobacco products may be sold to the defaulting retailer except for cash delivery until the Commissioner authorizes otherwise.

Retailers in default must pay their full obligation within 30 days or face permit suspension for up to 30 days per offense; permit suspension exceeding six months in any 12-month period may result in permanent revocation.

The Commissioner may require defaulting retailers to make cash-only payments for all subsequently purchased tobacco products and must notify all manufacturers, wholesalers, and distributors of any suspended or revoked permits.