26-57-215

Permits and licenses -- Types.

(a)

(1) Each person listed in this section, before commencing business, or if already in business, before continuing, shall pay an annual privilege fee and secure a permit or license from the Director of Arkansas Tobacco Control.

(2) However, a person purchasing an existing permitted retail location may operate under the selling owner's permit for a period not to exceed thirty (30) days from the date of sale to allow the purchasing owner time to secure a permit.

(b)

(1) In addition to securing a permit or license under subsection (a) of this section, a manufacturer whose products are sold in this state shall register with the Director of the Department of Finance and Administration. A manufacturer whose products are sold in this state is not required to obtain a dealer's license for an employee operating as the manufacturer's sales representative if the manufacturer holds a license or permit under subsection (a) of this section.

(2)

(A) Every wholesaler of cigarettes who operates a place of business shall secure a wholesale cigarette permit and every wholesaler of any vapor products, alternative nicotine products, e-liquid products, or other tobacco products except cigarettes who operates a place of business shall secure a wholesale tobacco, vapor product, and alternative nicotine product permit.

(B) A wholesaler doing business in both cigarettes and vapor products, alternative nicotine products, e-liquid products, or other tobacco products shall secure both a wholesale cigarette permit and a wholesale tobacco, vapor product, and alternative nicotine product permit.

(3) Every salesperson of any tobacco product, vapor product, alternative nicotine product, or e-liquid product who contacts a retailer in this state for the purpose of soliciting or taking and processing orders for the sale of tobacco products, vapor products, alternative nicotine products, or e-liquid products or who through contact delivers or causes delivery of any tobacco product, vapor product, alternative nicotine product, or e-liquid product to a retailer in this state, shall first secure a salesperson's license. Application shall be made by the wholesaler or general tobacco products vendor who is the salesperson's employer. A salesperson's license is not transferable to another employer and must be surrendered to the Director of Arkansas Tobacco Control by the employer upon termination of the salesperson's employment.

(4)

(A) Every retailer of cigarettes, other tobacco products, vapor products, alternative nicotine products, or e-liquid products that operates a place of business shall secure a retail cigarette, tobacco, vapor products, alternative nicotine products, or e-liquid products permit, and every exclusive retailer of vapor products, alternative nicotine products, or e-liquid products that operates a place of business shall secure a retail exclusive vapor product and alternative nicotine product store permit.

(B) Retail permit holders and dealer license holders may secure temporary permits to operate at picnics, fairs, carnivals, circuses, or any other temporary public gathering for periods not to exceed ten (10) days for a fee of five dollars ($5.00).

(5) A person engaged in the business of selling, leasing, renting, or otherwise disposing of or dealing with a vending machine containing tobacco products, vapor products, alternative nicotine products, or e-liquid products in this state shall secure a general tobacco products, vapor products, and alternative nicotine products vending permit.

(6) (A) (i) Every general tobacco products, vapor products, and alternative nicotine products vendor shall obtain a proper license from the Director of Arkansas Tobacco Control. However, municipal corporations may license and tax the privilege of doing business as a general tobacco products, vapor products, and alternative nicotine products vendor in cities where the vendors maintain an established place of business, provided that the machine license tax imposed may not exceed fifty percent (50%) of the amounts levied on the vendors' licenses under this subchapter.

(ii) If a municipality by ordinance licenses or taxes the privilege of doing business as a general tobacco products, vapor products, and alternative nicotine products vendor, proof that the license is in good standing shall be a mandatory condition for the issuance of a state license required under this section.

(B) (i) (a) In addition, every general tobacco products, vapor products, and alternative nicotine products vendor shall obtain a permit stamp for each machine of any type placed in operation in this state for the purpose of vending any tobacco products, vapor products, alternative nicotine products, or e-liquid products.

(b) This stamp shall be affixed to the machine in a conspicuous location together with a decal or card reciting the name, address, and license number of the vendor operating the machine.

(ii) No stamp will be issued for any machine upon which the state gross receipts or state compensating tax has not been paid, and the Director of Arkansas Tobacco Control shall require proof of payment before the initial issue of a stamp for any vending machine containing tobacco products, vapor products, alternative nicotine products, or e-liquid products.

(c) (1) Permits and licenses are issued as follows:

(A) A permit for a sole proprietor is issued in the sole proprietor's name and in the sole proprietor's fictitious business name, if any;

(B) (i) A permit for a partnership or limited liability company is issued in the name of:

(a) The managing partner or managing member; and

(b) The partnership or limited liability company.

(ii) If the managing partner or managing member of a limited liability company is a partnership, limited liability company, or corporation, then the permit shall be issued in the name of:

(a) The president or chief executive officer; and

(b) The partnership or limited liability company; and

(C) A permit for a publicly traded or nonpublicly traded corporation is issued in the name of the president or chief executive officer of the corporation and in the name of the corporation.

(2) It is a violation for a permitted entity not to provide written notification to the Director of Arkansas Tobacco Control within thirty (30) days of a change in the following:

(A) The managing partner, limited liability company managing member, or president or chief executive officer of a corporation, partnership, or limited liability company; or

(B) The stockholders effecting twenty-five percent (25%) or more of the total voting shares of a nonpublicly traded corporation.

(d)

(1) When an entity transfers a business permitted under this subchapter, the entity to which the business is transferred shall apply for and may be issued a new permit under this subchapter and may operate under the selling owner's permit only for a period not to exceed thirty (30) days from the date of transfer to allow the purchasing owner time to secure a permit.

(2)

(A) When a partnership or limited liability company permitted under this subchapter changes, removes, or replaces the managing partner, managing member, president, or chief executive officer, the existing permit issued under this subchapter is void, and the partnership or limited liability company shall apply for and may be issued a new permit under this subchapter.

(B) However, the partnership or limited liability company may operate under the prior managing partner's or managing member's permit for a period not to exceed thirty (30) days from the date of transfer to allow the purchasing owner time to secure a permit.

(3)

(A) When a nonpublicly traded corporation permitted under this subchapter changes, removes, or replaces the president or chief executive officer named on the permit or changes, removes, or replaces a stockholder who owns fifty percent (50%) or more of the total voting shares of the nonpublicly traded corporation's stock, the permit issued under this subchapter is void, and the nonpublicly traded corporation shall apply for and may be issued a new permit under this subchapter.

(B) However, the nonpublicly traded corporation may operate under the prior permit for a period not to exceed thirty (30) days from the date of removal or change to allow the nonpublicly traded corporation time to secure a new permit.

(4)

(A) When a publicly traded corporation permitted under this subchapter changes, removes, or replaces the president or chief executive officer named on the permit or changes, removes, or replaces a stockholder who owns fifty percent (50%) or more of the total voting shares of the publicly traded corporation's stock, the permit issued under this subchapter is void, and the publicly traded corporation shall apply for and may be issued a new permit under this subchapter.

(B) However, the publicly traded corporation may operate under the prior permit for a period of not more than thirty (30) days from the date of removal or change to allow the publicly traded corporation time to secure a new permit.

(e) An entity may apply for and be issued a permit or license under this subchapter in advance of the effective date of the permit or license to facilitate continuity of business operations.

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