[§245-2.5]  Retail tobacco permit.  (a) Beginning December 1, 2006, every retailer engaged in the retail sale ofcigarettes and other tobacco products upon which a tax is required to be paidunder this chapter shall obtain a retail tobacco permit.

(b)  Beginning March 1, 2007, it shall beunlawful for any retailer engaged in the retail sale of cigarettes and othertobacco products upon which a tax is required to be paid under this chapter tosell, possess, keep, acquire, distribute, or transport cigarettes or othertobacco products for retail sale unless a retail tobacco permit has been issuedto the retailer under this section and the retail tobacco permit is in fullforce and effect.

(c)  The retail tobacco permit shall be issuedby the department upon application by the retailer in the form and mannerprescribed by the department, and the payment of a fee of $20.  Permits shallbe valid for one year, from December 1 to November 30, and renewableannually.  Whenever a retail tobacco permit is defaced, destroyed, or lost, orthe permittee relocates the permittee's business, the department may issue aduplicate retail tobacco permit to the permittee for a fee of $5 per copy.

(d)  A separate retail tobacco permit shall beobtained for each place of business owned, controlled, or operated by aretailer.  A retailer that owns or controls more than one place of business maysubmit a single application for more than one retail tobacco permit.  Eachretail tobacco permit issued shall clearly describe the place of business wherethe operation of the business is conducted.

(e)  Any entity that operates as a dealer orwholesaler and also sells cigarettes or other tobacco products to consumers atretail shall acquire a separate retail tobacco permit.

(f)  A retail tobacco permit shall benonassignable and nontransferable from one entity to another entity.  A retailtobacco permit may be transferred from one business location to anotherbusiness location after an application has been filed with the department requestingthat transfer and approval has been obtained from the department.

(g)  A retail tobacco permit issued under thissection shall be displayed at all times in a conspicuous place at the place ofbusiness requiring the retail tobacco permit.

(h)  Any sales of cigarettes or tobaccoproducts made through a cigarette or tobacco product vending machine aresubject to the terms, conditions, and penalties of this chapter.  A retailtobacco permit need not be displayed on cigarette or tobacco product vending machinesif the retail tobacco permit holder is the owner of the cigarette or tobaccoproduct vending machines and the cigarette or tobacco product vending machinesare operated at the location described in the retail tobacco permit.

(i)  No retailer shall purchase any pack ofcigarettes without the appropriate tax stamp being affixed to the bottom of thepack as required by this chapter.

(j)  A vehicle from which cigarettes or tobaccoproducts are sold is considered a place of business and requires a retailtobacco permit.  Retail tobacco permits for a vehicle shall be issued bearing aspecific motor vehicle identification number and are valid only when physicallycarried in the vehicle having the corresponding motor vehicle identificationnumber.  Retail tobacco permits for vehicles shall not be moved from onevehicle to another.

(k)  A permittee shall be subject to theinspection and investigation requirements of this chapter and shall provide thedepartment or the attorney general with any information deemed necessary toverify compliance with the requirements of this chapter.

(l)  A permittee shall keep a complete andaccurate record of the permittee's cigarette or tobacco product inventory.  Therecords shall:

(1)  Include:

(A)  A written statement containing the nameand address of the permittee's source of its cigarettes and tobacco products;

(B)  The date of delivery, quantity, trade nameor brand, and price of the cigarettes and tobacco products; and

(C)  Documentation in the form of any purchase orders,invoices, bills of lading, other written statements, books, papers, or recordsin whatever format, including electronic format, which substantiate thepurchase or acquisition of the cigarettes and tobacco products stored oroffered for sale; and

(2)  Be offered for inspection and examination withintwenty-four hours of demand by the department or the attorney general, andshall be preserved for a period of three years; provided that:

(A)  Specified records may be destroyed if thedepartment and the attorney general both consent to their destruction withinthe three-year period; and

(B)  Either the department or the attorneygeneral may adopt rules pursuant to chapter 91 that require specified recordsto be kept longer than a period of three years.

(m)  The department may suspend or, afterhearing, revoke or decline to renew any retail tobacco permit issued under thischapter whenever the department finds that the applicant or permittee hasfailed to comply with this chapter or any rule adopted under this chapter, orfor any other good cause.  Good cause includes but is not limited to instanceswhere an applicant or permittee has:

(1)  Submitted a false or fraudulent application orprovided a false statement in an application; or

(2)  Possessed or displayed a false or fraudulentretail tobacco permit.

Upon suspending or revoking any retail tobaccopermit, the department shall request that the permittee immediately surrenderany retail tobacco permit or duplicate issued to the permittee, and the permitteeshall surrender the permit or duplicate promptly to the department asrequested.

(n)  Whenever the department suspends,revokes, or declines to renew a retail tobacco permit, the department shallnotify the applicant or permittee immediately and afford the applicant orpermittee a hearing, if requested and if a hearing has not already beenafforded.  After the hearing, the department shall:

(1)  Rescind its order of suspension;

(2)  Continue the suspension;

(3)  Revoke the retail tobacco permit;

(4)  Rescind its order of revocation;

(5)  Decline to renew the retail tobacco permit; or

(6)  Renew the retail tobacco permit.

(o)  Any cigarette, package of cigarettes,carton of cigarettes, container of cigarettes, tobacco product, package oftobacco products, or any container of tobacco products unlawfully sold,possessed, kept, stored, acquired, distributed, or transported in violation ofthis section may be seized and ordered forfeited pursuant to chapter 712A. [L2005, c 131, pt of §1, §9(2); am L 2009, c 30, §2]