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Wholesalers’ notice bill aimed at ‘hot checks’ fails in Senate committee
Summary
A proposal to let wholesalers notify tobacco regulators when retail customers miss payments — blocking those retailers from buying from other wholesalers until debts are cleared — drew dispute-process concerns and failed in the Senate City, County & Local Affairs Committee.
State Sen. Barr Hester told the Senate City, County & Local Affairs Committee that House Bill 18‑76 was designed to stop a recurring pattern in the tobacco supply chain where a retail customer runs up debts at one wholesaler, is cut off and then moves to another wholesaler without settling the prior balance. “It just allows, it helps wholesalers from having customers game the system,” Hester said.
Small wholesalers and trade representatives told the committee they back the measure and said it targets “hot checks” and other short-term…
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