HRS § 245-2.5 — Retail tobacco permit


House Bill
§245-2.5 Retail tobacco permit. (a)
Every retailer engaged in the retail sale of cigarettes and other tobacco
products upon which a tax is required to be paid under this chapter shall
obtain a retail tobacco permit.
(b) It shall be unlawful for any retailer
engaged in the retail sale of cigarettes and other tobacco products upon which
a tax is required to be paid under this chapter to sell, possess, keep,
acquire, distribute, or transport cigarettes or other tobacco products for
retail sale unless a retail tobacco permit has been issued to the retailer
under this section and the retail tobacco permit is in full force and effect.
(c) The retail tobacco permit shall be issued
by the department upon application by the retailer in the form and manner
prescribed by the department, and the payment of a fee of $50. Permits shall
be valid for one year, from December 1 to November 30, and renewable annually.
Whenever a retail tobacco permit is defaced, destroyed, or lost, or the
permittee relocates the permittee's business, the department may issue a
duplicate retail tobacco permit to the permittee for a fee of $5 per copy.
(d) A separate retail tobacco permit shall be
obtained for each place of business owned, controlled, or operated by a
retailer. In seeking a retail tobacco permit, the applicant shall specify
whether each place of business sells electronic smoking devices, e-liquid, or
both. A retailer that owns or controls more than one place of business may
submit a single application for more than one retail tobacco permit. Each
retail tobacco permit issued shall clearly describe the place of business where
the operation of the business is conducted and whether the place of business
sells electronic smoking devices, e-liquid, or both.
(e) Any entity that operates as a dealer or wholesaler
and also sells cigarettes or other tobacco products to consumers at retail shall
acquire a separate retail tobacco permit.
(f) A retail tobacco permit shall be nonassignable
and nontransferable from one entity to another entity. A retail tobacco permit
may be transferred from one business location to another business location after
an application has been filed with the department requesting that transfer and approval
has been obtained from the department.
(g) A retail tobacco permit issued under this section
shall be displayed at all times in a conspicuous place at the place of business
requiring the retail tobacco permit.
(h) Any sales of cigarettes or tobacco products
made through a cigarette or tobacco product vending machine are subject to the terms,
conditions, and penalties of this chapter. A retail tobacco permit need not be
displayed on cigarette or tobacco product vending machines if the retail tobacco
permit holder is the owner of the cigarette or tobacco product vending machines
and the cigarette or tobacco product vending machines are operated at the location
described in the retail tobacco permit.
(i) No retailer shall purchase any pack of cigarettes
without the appropriate tax stamp being affixed to the bottom of the pack as required
by this chapter.
(j) A vehicle from which cigarettes or tobacco
products are sold is considered a place of business and requires a retail tobacco
permit. Retail tobacco permits for a vehicle shall be issued bearing a specific
motor vehicle identification number and are valid only when physically carried in
the vehicle having the corresponding motor vehicle identification number. Retail
tobacco permits for vehicles shall not be moved from one vehicle to another.
(k) A permittee shall be subject to the inspection
and investigation requirements of this chapter and shall provide the department
or the attorney general with any information deemed necessary to verify compliance
with the requirements of this chapter.
(l) A permittee shall keep a complete and
accurate record of the permittee's cigarette or tobacco product inventory. The
records shall:
(1) Include:
(A) A written statement containing the name
and address of the permittee's source of its cigarettes and tobacco products;
(B) The date of delivery, quantity, trade
name or 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
records in whatever format, including electronic format, which substantiate the
purchase or acquisition of the cigarettes and tobacco products stored or
offered for sale; and
(2) Be offered for inspection and examination within
twenty-four hours of demand by the department or the attorney general, and
shall be preserved for a period of five years; provided that:
(A) Specified records may be destroyed if the
department and the attorney general both consent to their destruction within
the five-year period; and
(B) Either the department or the attorney
general may adopt rules pursuant to chapter 91 that require specified records
to be kept longer than a period of five years.
(m) The department may suspend, revoke, or
decline to renew any retail tobacco permit issued under this chapter whenever
the department finds that the applicant or permittee has failed to comply with
this chapter or any rule adopted under this chapter, or for any other good
cause. Good cause includes but is not limited to instances where an applicant
or permittee has:
(1) Submitted a false or fraudulent application or
provided a false statement in an application;
(2) Possessed or displayed a false or fraudulent
retail tobacco permit;
(3) Failed to comply with, violated, or been
convicted of violating any county, state, or federal law directly pertaining to
the sale, importation, acquisition, possession, stamping, distribution,
transportation, or smuggling of cigarettes, counterfeit cigarettes, counterfeit
tax stamps, or other tobacco products; or
(4) Failed to maintain complete and accurate records
when and if required to be kept.
Upon suspending or revoking any retail tobacco
permit, the department may request that the permittee immediately surrender any
retail tobacco permit or duplicate issued to or printed by the permittee, and
the permittee shall surrender the permit or duplicate promptly to the
department as requested.
(n) Whenever the department suspends, revokes,
or declines to renew a retail tobacco permit, the department shall notify the
applicant or permittee immediately and afford the applicant or permittee a
hearing, if requested; provided that a hearing has not already been afforded.
The department shall provide no less than thirty days' notice to the applicant
or permittee of a hearing afforded under this subsection. 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 of tobacco products,
or any container of tobacco products unlawfully sold, possessed, kept, stored, acquired,
distributed, or transported in violation of this section may be seized and ordered
forfeited pursuant to chapter 712A.