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.