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Committee passes amendment allowing 30‑day continued tobacco sales by purchaser with seller permission

CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE · February 25, 2021
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Summary

Senator Eads’ bill and adopted amendment let a purchaser operate a tobacco sales line under the seller’s permit for up to 30 days while the new permit is processed, with a signed authorization that assigns liability to the purchaser and a required application and inspection process, per ABC practice.

Senator Eads explained an amendment and presented a department request to allow continuity of tobacco sales during transfer of store ownership. The bill permits a purchaser to operate the tobacco portion of a store under the previous permit for up to 30 days while the new permit application is processed, provided the previous permit holder signs an authorization and the department approves the arrangement.

Norley Chanlin, director of the Alcoholic Beverage Control and Tobacco Control Administration, said the approach mirrors existing alcohol permit practice: the seller signs a document authorizing the purchaser to operate on that permit during the transition and the purchaser completes application documents that set out liability. "They would be completing an application, and that would be part of the documents that they sign, allowing them to operate on that permit during that time period," Chanlin said.

Committee members asked who would bear liability for violations during the 30‑day period; Chanlin said liability would be placed on the purchaser through the authorization and application paperwork. The committee voted to pass the bill as amended.