57-36-02. Distributors and dealers to be licensed

57-36-02. Distributors and dealers to be licensed

1. Each person engaged in the business of selling cigarettes, cigarette papers, snuff,

cigars, electronic smoking devices, or tobacco in this state, including any distributor or

dealer, shall secure a license from the attorney general before engaging or continuing

to engage in business.

2. A separate application and license is required for each outlet or place of business

operated or maintained by a distributor within the state.

a. A distributor's license does not authorize the distributor to make retail sales.

b. A distributor may not be granted a dealer's license unless the distributor has

possessed a distributor's license issued under this chapter for at least one year

before filing an application for a dealer's license.

c. Notwithstanding subdivision b, a person that can demonstrate to the satisfaction

of the attorney general that the person has been engaged, in the normal course

of business, in the sale of electronic smoking devices before July 1, 2018, may be

granted a dealer's license.

d. Each application for a distributor's license must be accompanied by a fee of

twenty-five dollars and a surety bond approved by the attorney general.

3. A separate application and license is required for each outlet or place of business

operated or maintained by a dealer in this state.

a. A dealer may not sell tobacco products purchased from a distributor not licensed

under this chapter.

b. A person issued a dealer's license under this chapter may not be issued a

distributor's license.

4. Each application for a dealer's outlet or place of business license must be

accompanied by a fee of fifteen dollars.

5. A license application prescribed by the attorney general must include the name and

address of the applicant, the address and place of business, the type of business, and

other information as required for the administration of this chapter.

6. A reinstatement fee of fifty dollars is required in addition to the annual license fee for

each license renewal applied for after June thirtieth. The total reinstatement fee may

not exceed five hundred dollars for any one licensee in any fiscal year.

7. Each license issued must be prominently displayed on the place of business or outlet

covered by the license.