Sec. 4.5. (a) This section applies to a merchant that is not a cigarette manufacturer.

     (b) Except as provided in subsection (d), a merchant may not mail or ship cigarettes as part of a delivery sale to an Indiana resident or retailer (as defined in IC 24-3-2-2(d)) that is not a distributor.

     (c) If the commission determines that a merchant has violated subsection (b):

(1) a distributor may not accept a shipment of cigarettes from the merchant for a period, not to exceed one (1) year, determined by the commission; and

(2) the commission may impose a civil penalty, not to exceed five thousand dollars ($5,000), on the merchant for each violation of subsection (b), as determined by the commission.

     (d) A merchant may make a drop shipment of tobacco products to an Indiana resident or retailer that is billed through a distributor.

As added by P.L.160-2005, SEC.8.

   Sec. 5. As used in this chapter, “distributor” means a person that:

(1) purchases cigarettes on which the tax under IC 6-7-1 is not paid; and

(2) stores, sells, or otherwise disposes of the cigarettes.

As added by P.L.252-2003, SEC.16.