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Administrative Rules
Rule 64:44:01 ADMINISTRATION OF PROGRAM

CHAPTER 64:44:01

ADMINISTRATION OF PROGRAM

Section

64:44:01:01        Repealed.

64:44:01:02        Minimum price on cigarettes.

64:44:01:03        Repealed.

64:44:01:04        Thirty-day credit.

64:44:01:05        Determination of credit period.

64:44:01:06        Extension of credit period.

64:44:01:07        Basis for extending credit period.

64:44:01:08        Repealed.

64:44:01:09        Check as payment.

64:44:01:10        Bad checks.

64:44:01:11        Retail delinquency.

64:44:01:12        Granting of financial assistance to licensees.

64:44:01:13        Definition of retail establishment.

64:44:01:14        Deduction.




Rule 64:44:01:01 Repealed.

          64:44:01:01.  Cigarette wholesaler defined. Repealed.

 

          Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; repealed, 34 SDR 93, effective October 17, 2007.

 




Rule 64:44:01:02 Minimum price on cigarettes.

          64:44:01:02.  Minimum price on cigarettes. The distributor shall apply the following formulas to establish the minimum price on all brands of cigarettes the distributor sells in this state:

 

          (1)  The basic cost to the distributor is the manufacturer's invoice price, less available manufacturer's discounts, plus the state cigarette excise tax;

 

          (2)  The distributor may not sell cigarettes for less than four percent above their basic cost if cigarettes are sold to retailers at the distributor's warehouse;

 

          (3)  If cigarettes are delivered to retailers, an additional one and one-half percent for cartage shall be added to the basic cost.

 

          Source: SL 1975, ch 16, § 1; 13 SDR 129, 13 SDR 134, effective July 1, 1987; 21 SDR 219, effective July 1, 1995; 38 SDR 214, effective June 21, 2012.

          General Authority: SDCL 10-50-60, 37-10-26.

          Law Implemented: SDCL 37-10-5, 37-10-10.

 




Rule 64:44:01:03 Repealed.

          64:44:01:03.  Retailers -- Minimum price.Repealed.

          Source: SL 1975, ch 16, § 1; repealed, 13 SDR 129, 13 SDR 134, effective July 1, 1987.




Rule 64:44:01:04 Thirty-day credit.

          64:44:01:04.  Thirty-day credit. No licensed distributor or wholesaler of cigarettes may, directly or indirectly or through a subsidiary or affiliate corporation or by any officer, director, stockholder, employee, or partner of a subsidiary or affiliate corporation, give or advance money or credit to a retailer; that is, no sale or delivery of cigarettes may be made to a retailer except on terms which require payment by the  purchaser within 30 days. Every delivery of cigarettes shall be accompanied by an invoice of sale or a delivery slip giving the date of delivery of the cigarettes.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 144, effective July 1, 1987.

          General Authority: SDCL 37-10-26.

          Law Implemented: SDCL 37-10-2, 37-10-3.




Rule 64:44:01:05 Determination of credit period.

          64:44:01:05.  Determination of credit period. The first day of a credit period is the day following the date of invoice, and the 30-day period expires at midnight the thirtieth day following the date of invoice, after which payment is delinquent. However, no remittance made by mail is considered delinquent if it is affirmatively established that the envelope in which the remittance was transmitted bears the postmark of the thirtieth day following the date of invoice.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 134, effective July 1, 1987.

          General Authority: SDCL 37-10-26.

          Law Implemented: SDCL 37-10-2, 37-10-3.




Rule 64:44:01:06 Extension of credit period.

          64:44:01:06.  Extension of credit period. If all licensed wholesalers and distributors doing business in the same trade area are not open for business as that term is generally and usually construed for any period of time of seven consecutive days or more, the provisions of § 64:44:01:05 do not apply. The period of time for making final payment of the accrued obligations of a retailer shall be extended for the same period of time as that for which all licensed wholesalers and distributors have not been in business.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 134, effective July 1, 1987.

          General Authority: SDCL 37-10-26.

          Law Implemented: SDCL 37-10-2, 37-10-3.




Rule 64:44:01:07 Basis for extending credit period.

          64:44:01:07.  Basis for extending credit period. Section 64:44:01:06 is based on the finding that extended closing by licensed wholesalers and distributors results in and necessitates increased purchases by retailers beyond their normal needs and an extension of credit in excess of the 30-day period is necessary for the orderly transaction of the business of such retail dealers.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 134, effective July 1, 1987.

          General Authority: SDCL 37-10-26.

          Law Implemented: SDCL 37-10-2, 37-10-3.




Rule 64:44:01:08 Repealed.

          64:44:01:08.  Municipal exemption.Repealed.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 134, effective July 1, 1987; repealed, 30 SDR 89, effective December 10, 2003.




Rule 64:44:01:09 Check as payment.

          64:44:01:09.  Check as payment. A correctly dated check which is payable at the bank upon presentation at the next banking day is considered cash within the meaning of this article.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 134, effective July 1, 1987.

          General Authority: SDCL 37-10-26.

          Law Implemented: SDCL 37-10-2, 37-10-3.




Rule 64:44:01:10 Bad checks.

          64:44:01:10.  Bad checks. If a check is returned marked "insufficient funds" and is not made good by the retailer within 10 days, no licensed wholesaler or distributor may sell to the retail licensee for either cash or check until the returned check is made good.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 134, effective July 1, 1987.

          General Authority: SDCL 37-10-26.

          Law Implemented: SDCL 37-10-2, 37-10-3.




Rule 64:44:01:11 Retail delinquency.

          64:44:01:11.  Retail delinquency. If a retail dealer becomes delinquent in the payment of any account due for merchandise purchased, the licensed wholesaler or distributor shall report that fact within 24 hours to the department. A retail dealer who becomes delinquent may not purchase merchandise for cash or otherwise from a licensed wholesaler or distributor until the delinquent account has been paid in full. The delinquent account must be cleared from the records of the department before a licensed wholesaler or distributor is permitted to sell merchandise to the retail dealer.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 134, effective July 1, 1987.

          General Authority: SDCL 37-10-26.

          Law Implemented: SDCL 37-10-2, 37-10-3, 37-10-29 to 37-10-35.




Rule 64:44:01:12 Granting of financial assistance to licensees.

          64:44:01:12.  Granting of financial assistance to licensees. An extension or acceptance of credit in violation of this chapter is considered by the secretary as receiving financial assistance. The license of any wholesaler or distributor who violates this chapter shall be suspended or revoked, as determined by the secretary. In addition, any wholesaler or distributor who accepts postdated checks, notes, or memoranda or who participates in any scheme, trick, or device to assist a retail dealer in the violation of this chapter is considered to be in violation of §§ 64:44:01:04 to 64:44:01:12, inclusive.

          Source: 1 SDR 44, effective December 6, 1974; 13 SDR 129, 13 SDR 134, effective July 1, 1987.

          General Authority: SDCL 37-10-26.

          Law Implemented: SDCL 37-10-2, 37-10-3, 37-10-29 to 37-10-35.




Rule 64:44:01:13 Definition of retail establishment.

          64:44:01:13.  Definition of retail establishment. The term, retail establishment, as used in SDCL 10-50-105 means any tobacco retailer, distributor, wholesaler, or manufacturer that allows the use of a roll-your-own machine to produce cigarettes, regardless of whether a fee is charged for the use of the machine. The term also includes any establishment that allows the use of a roll-your-own machine for any type of fee, regardless of whether tobacco products are sold at the establishment.

 

          Source: 38 SDR 214, effective June 21, 2012.

          General Authority: SDCL 10-50-60(5)(6), 37-10-26(3).

          Law Implemented: SDCL 10-50-105.

 




Rule 64:44:01:14 Deduction.

          64:44:01:14.  Deduction. The wholesale purchase price of any tobacco product that is typically subject to the wholesale tax on tobacco products pursuant to SDCL 10-50-61 may be deducted from the Monthly OTP tax return form if the tobacco product is subsequently used to manufacture cigarettes in a roll-your-own machine at a retail establishment. This provision only applies if the cigarettes produced were taxed pursuant to SDCL 10-50-3 and payment of the tax has been evidenced by the affixing of tax stamps pursuant to SDCL 10-50-4.

 

          Source: 38 SDR 214, effective June 21, 2012.

          General Authority: SDCL 10-50-60(5)(6), 37-10-26(3).

          Law Implemented: SDCL 10-50-105.

 

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