Section R15-3-301. Licensing

A.      An individual shall obtain a distributor’s license before engaging in business as a distributor. The Department shall issue a distributor’s license to the individual named in the license application for a business making the initial sale or distribution of tobacco products in this state, pursuant to the requirements   of  A.R.S.  §   42-3201(A)  and  any  applicable

bonding requirements under A.R.S. § 42-1102(B). A licensee shall not transfer its distributor's license to a new owner when selling its business.

B.       In cases of liquidation, insolvency, or bankruptcy where businesses remain in operation as distributors of tobacco products, court-appointed trustees, receivers, or others shall obtain distributors’ licenses in their own names.

C.      A licensee shall apply for a new distributor's license if it changes its legal entity or otherwise changes the legal structure of its business.

D.      A licensee shall obtain a distributor’s license for each business location that maintains an inventory of tobacco products and shall display the license in a conspicuous place at the business location.

E.       Except as provided in subsection (F), the Department shall issue a license for a business location only if the business maintains any books, papers, invoices, records, and luxuries subject to the Department's inspection under A.R.S. § 42-3151 in a place and manner at the business location that is accessible to the Department during normal business hours without a judicial warrant or prior written consent of the licensee. For example, if a licensee or agent of the licensee also uses the business location for residential purposes, the licensee shall maintain its books, papers, invoices, records, and luxuries in a place and manner at the business location that does not require the Department to obtain a judicial warrant or written consent from the licensee or an agent of the licensee before conducting an inspection during normal business hours.

F.       If a business maintains any books, papers, invoices, or records electronically, the Department shall issue a license for a business location only if the business provides access to the data for the Department’s inspection at the business location, regardless of the storage location of the data. The business shall provide the access at the business location in a place and manner that is accessible to the Department during normal business hours without a judicial warrant or prior written consent of the licensee.

G.      If an applicant remits payment of the licensee fee for its business location by cashier’s check, company check, or money order, the payment shall bear one of the following:

1.        The name of the applicant as the purchaser or remitter, if the payment is made by cashier’s check or money order; or

2.        The name of the applicant as the drawer or maker, if the payment is made by company check.

H. Pursuant to A.R.S. §§ 42-3004(1) and 42-3201(B), the Department may request an applicant for a distributor’s license to submit additional supporting documentation for the purpose of enforcing this Section.

Historical Note

Adopted effective March 18, 1981 (Supp. 81-2). Former Section R15-3-301 repealed, new R15-3-301 renumbered from R15-3-302 and amended effective June 20, 1990 (Supp. 90-2). Amended by final rulemaking at 5 A.A.R.

2168, effective June 15, 1999 (Supp. 99-2). Amended by

final rulemaking at 14 A.A.R. 4410, effective January 3,

2009 (Supp. 08-4). Amended by exempt rulemaking at 19

A.A.R. 520, effective February 19, 2013 (Supp. 13-1).