HB1606

House Bill 1606 establishes a regulatory framework for handling delinquent payments by tobacco and vapor product retailers to manufacturers or wholesalers in Arkansas. If a retailer fails to pay for products on time, the manufacturer or wholesaler must notify Arkansas Tobacco Control within five business days. The agency then alerts other wholesalers and manufacturers, effectively barring the delinquent retailer from purchasing products from them until the debt is settled. If the debt remains unpaid after 30 days, the Director of Arkansas Tobacco Control may suspend the retailer's permit. The bill further grants the director authority to impose mandatory suspensions of varying lengths for first and subsequent offenses. Additionally, the bill mandates that new owners of a retail location assume responsibility for any outstanding debts incurred by previous owners. It also authorizes the board to adopt necessary rules for implementation.