370.505 - Payment to wholesale dealer for cigarettes and other tobacco products purchased by retail dealer: Time for payment; prohibition of and penalty for extension of credit; investigations and hea - Nevada Statutes

370.505  Payment to wholesale dealer for cigarettes and other tobacco products purchased by retail dealer: Time for payment; prohibition of and penalty for extension of credit; investigations and hearings.

      1.  A retail dealer shall pay a wholesale dealer for all cigarettes and other tobacco products purchased from the wholesale dealer:

      (a) If the cigarettes or other tobacco products were delivered to the retail dealer on or after the 1st day of the month but before the 16th day of the month, on or before the 29th day of the same month; and

      (b) If the cigarettes or other tobacco products were delivered to the retail dealer on or after the 16th day of the month but before the 1st day of the next month, on or before the 14th day of the next month.

      2.  A wholesale dealer shall not extend credit or otherwise allow a retail dealer to violate the provisions of subsection 1.

      3.  The Department may impose a penalty on a wholesale dealer who violates the provision of subsection 2 as follows:

      (a) For the first violation, a penalty of $500.

      (b) For a second or subsequent violation, if paragraph (c) does not apply, a penalty of $1,000.

      (c) For a third or subsequent violation within any 12-month period, a penalty of $5,000 or suspension or revocation of the license of the wholesale dealer, or both.

      4.  Pursuant to a written complaint or upon its own motion, the Department shall investigate an alleged violation of subsection 2. The Department shall give notice to the alleged violator and conduct a hearing, if warranted by the investigation. The Department may assess a penalty pursuant to subsection 3, if it determines that the wholesale dealer violated the provisions of subsection 2.

      (Added to NRS by 1987, 1789; A 1989, 285)