4.05.050 Wholesalers

(a) Requirement for a License. Every person who shall engage in the business of buying and selling of tobacco products, except for his or her own personal consumption or use, shall qualify as a wholesaler of tobacco products in accordance with the provisions of this part.

Person's intent on participating in the tobacco products business by purchasing quantities of finished tobacco products from manufactures and/or other wholesalers for purpose of resale and distribution to other wholesalers and/or retailers must be a Saint Regis Tribal Licensed Wholesaler possessing a valid tobacco wholesale license.

(b) Granting of Licenses. The receipt of a license to wholesale cigarettes within the boundaries of the Saint Regis Mohawk Reservation is a privilege granted by the Tribal Council on behalf of the Tribe. All actions by the Tribal Council regarding the Ordinance will be taken in the best interest of the Tribe and taken to insure the continuation of successful tobacco activities that are important to the economic development of the Tribe.

(c) License Approval or Denial. The Tribal Council may reject the application if such rejection is determined to be in the best interest of the Tribe. Reasons for rejection include, but are not limited too, the submission of incomplete or false information in the application; the failure to meet the minimum criteria for the facility; a determination that the individual applicant or, in the case of a business entity, a partner, officer, director, stockholder whose past behavior would indicate that they would not likely comply with this chapter, or pay the required fees to the Tribe; or otherwise fail to operate the facility in an acceptable manner; or a determination that the approval will adversely impact the economic development of the Tribe or adversely impact the Tribe's relationship with other sovereign entities; or discrepancies are discovered during the investigation process of the applicant. If there is reason to believe that the applicant is not entitled to a license, the Compliance Director shall promptly notify the applicant of the contemplated denial and opportunity for a hearing with the Tribal Council.

(d) License Renewal. The Saint Regis Mohawk Tribe reserves the right to deny any request for a license renewal and within 30-days before license expiration date the Compliance Department will notify Licensee by mail and include a renewal application. Upon return of renewal application the Compliance Department will review the licensees history, a recommendation is submitted with the application to the Tribal Council and a decision to renew is rendered by the Tribal Council.

(e) Application for a License.

(1) An individual applicant must be twenty-one (21) years of age or more and a member of the Saint Regis Mohawk Tribe. In the case of a business entity or partnership, the applicant must be formed and operate pursuant to the laws and regulations of the Saint Regis Mohawk Tribe. They shall furnish with its application for license, a true copy of the articles of partnership or association, if any, or certificate of partnership or association.

(2) The application form at Appendix B-2 must be completed and all requested information provided.

(3) The applicant shall provide information regarding the facility in which he/she will conduct their business, his or her experience in tobacco sales, as well as information regarding the proposed wholesale activities including the proposed business relationships with cigarette manufacturers, distributors and retailers on the St. Regis Mohawk Reservation and other entities and individuals that are authorized to engage in tobacco related activities on other Indian Reservations.

(4) Every applicant before commencing business as a tribally authorized Wholesaler will sign a 'Tobacco Distribution Agreement' as shown in Appendix E.

(f) Non-Native Businesses. In the event that a non-tribal entity seeks to do business with local business people they are required to possess a Tribal Vendors Permit. A Vendor Permit application will be filled out and after approval from the Tribal Council the Tribal Compliance Department will issue a Tribal Vendors Permit number, certificate and a copy of the Saint Regis Mohawk Tribal Tobacco Ordinance as prescribed in Section 4.05.030(a).

(g) Sale and Distribution of Tobacco Products.

(1) A Tribally licensed tobacco wholesaler or vendor may purchase cigarettes or other tobacco products from St. Regis Mohawk licensed manufacturers, from other Native American manufacturers or distributors or wholesalers on a Nation- to-Nation basis or from Non-Native American licensed manufacturers, wholesalers or distributors.

(2) A Tribally licensed wholesaler or vendor may sell cigarettes to only authorized tribally licensed retailers in accordance with Section 4.05.060. The licensed wholesaler or vendor may sell such tobacco products to retailers within the Saint Regis Mohawk Reservation or in Nation-to-Nation sales on Indian reservations within the United States to Native individuals/businesses on other Indian Reservations whose operation is in accordance with their respective Tribal laws and regulations. The Compliance Office shall provide each wholesaler or vendor with a list of currently authorized Saint Regis Mohawk Tribal licensed retailers. The Compliance Department reserves the opportunity to discuss and review with the wholesalers the validity of these tribal authorizations.

(h) Annual Licensing Fee. Each wholesaler shall pay an annual minimum fee of $1,500. Within 30-days of expiration a notice will be given to Licensee for renewal purposes. Should a lapse in license coverage occur, business must cease and complete licensing process will be required. Any business conducted without a license will be deemed in violation of this chapter and will be subject to Fines and Penalties.

(i) Reporting Requirement

(1) Each licensed wholesaler shall submit a monthly report providing the amount arettes and tobacco products sold during the reporting period. This information may be used by the Compliance Office to verify that sales were made only to authorized persons and that all appropriate fees have been paid to the Tribe.

(2) The Compliance Office, may, at any time, review records, request an inventory of tobacco products on-hand and request information on sales to licensed retailers and Nation-to-Nation sales. The Compliance Office may communicate with manufacturers and suppliers regarding tobacco products furnished to a Wholesaler to determine that all appropriate tobacco fees are paid.

(j) Tribal Tobacco Fees- Retail and Nation to Nation

(1) The Tribe imposes a tribal tobacco fee on all tobacco products sold in any manner including retail sales on the reservation or sold Nation-to-Nation.

(2) Wholesalers will be liable for the payment of the Tobacco Fee stamps and shall pay the tobacco Fee to the Tribe.

A retail Tobacco Fee Stamp shall be affixed to each carton, case or plastic bag of all tobacco products sold to retailers on the Saint Regis Mohawk Reservation. The cost of said stamps will be assessed based on a 3 tiered system:

(A) Domestic brand cigarettes manufactured on this territory and sold on this territory will be priced at $2.00 per carton.

(B) Other native manufactured cigarettes brought into and sold on this territory will be priced at $3.00 per carton.

A set of "Nation-to-Nation" stamps shall be affixed to each case of cigarettes manufactured on the Reservation and sold in a "Nation-to-Nation" sale. The cost per set of such stamp shall be $12.50/per case of 50 cartons and $15.00 per case of 60 cartons. One stamp must be used to seal the top and one to seal the bottom of each master case.

Such stamps shall be affixed and cancelled as prescribed by the Compliance Office. Stamps will be available for pick up from the Tribe on a daily basis with 24hr. prior notification at the Compliance Department by authorized persons only.

No cigarettes may be sold, transported, or provided by wholesalers to retailers, sold "Nation-to-Nation" or be displayed in retail stores for sale without the appropriate tribal fee stamps properly affixed to the master case or carton.

Replacement of purchased stamps will be considered should fee stamps be subjected to unforeseen natural accidents for example; fire or water damage from water sprinklers or water pipes. Every occurrence will be presented to the Tribal Council and Compliance Department for consideration.

(k) Suspension and Revocation of License. Where the Compliance Department has reason to believe that a wholesaler of tobacco products has not in good faith complied with the Tribal Ordinance, rules and regulations and with intent to defraud, or has failed to disclose any material information required or made any material false statements in the application for the license or has failed to maintain his premises in such manner as to protect tribal revenue, the Compliance Director shall do an investigation and at the conclusion of such investigation shall present all pertinent findings and a recommendation to the Tribal General Counsel. See Section 4.05.070.