The bill SB134 Engrossed amends the Code of Alabama 1975 to establish comprehensive regulations for interstate warehousers of tobacco products. It introduces the definition of "interstate warehouser" as an entity that purchases tobacco products from manufacturers and sells them to permitted wholesale dealers. Key provisions include the requirement for interstate warehousers to obtain a permit from the Department of Revenue, with specific application processes and penalties for noncompliance. The bill also updates existing definitions for terms such as "wholesale dealer" and "retail dealer," ensuring clarity and consistency in the law. Additionally, it specifies that only licensed wholesalers and distributors may affix tax stamps to tobacco products, with certain exceptions for manufacturers.

Moreover, the bill classifies untaxed tobacco products found outside licensed locations as contraband, allowing for their seizure by law enforcement. It mandates that all entities involved in the transportation of tobacco products possess an active permit and submit periodic statements to the Department of Revenue. The bill introduces new penalties for non-compliance, including escalating civil penalties for repeated violations and a fine of $1,000 for each violation. It also establishes a non-transferable and non-refundable permit process for interstate warehouse operators, with the Department of Revenue authorized to deny permits based on incomplete applications or criminal history. Overall, SB134 aims to enhance regulatory oversight and compliance within the tobacco industry, with an effective date set for October 1, 2026.

Statutes affected:
Introduced: 40-25-1, 40-25-4, 40-25-8, 40-25-8, 40-25-16, 40-25-18, 40-25-25
Engrossed: 40-25-1, 40-25-4, 40-25-8, 40-25-8, 40-25-16, 40-25-18, 40-25-25