1-2 new section to read as follows:

1-3 1. A wholesale or retail dealer shall not:

1-4 (a) Affix Nevada cigarette revenue stamps or metered machine

1-5 impressions on;

1-6 (b) Sell or distribute in this state; or

1-7 (c) Possess in this state with the intent to sell or distribute in this
1-8 state,

1-9 cigarettes manufactured for export outside the United States.

1-10 2. The department may impose a penalty on a wholesale or retail

1-11 dealer who violates subsection 1 as follows:

1-12 (a) For the first violation, a penalty of $5,000.

1-13 (b) For each subsequent violation, a penalty of $10,000.

1-14 3. As used in this section, "cigarettes manufactured for export

1-15 outside the United States" means cigarettes contained in a package or

1-16 carton which indicates that the cigarettes are tax exempt and for use

2-3 of this act, unless the context otherwise requires, the words and terms

2-4 defined in NRS 370.005 to 370.055, inclusive, have the meanings ascribed

2-8 section 1 of this act do not apply to common carriers while engaged in

2-9 interstate commerce which sell or furnish cigarettes on their trains, buses or

2-13 cigarettes and other tobacco products purchased from the wholesale dealer

2-14 [:

2-15 (a) If the cigarettes or other tobacco products were delivered to the retail

2-16 dealer on or after the 1st day of the month but before the 16th day of the

2-17 month, on or before the 29th day of the same month; and

2-18 (b) If the cigarettes or other tobacco products were delivered to the retail

2-19 dealer on or after the 16th day of the month but before the 1st day of the

2-20 next month, on or before the 14th day of the next month.] on or before the

2-21 14th calendar day after the date of delivery, as indicated on the invoice.

2-22 2. A wholesale dealer shall not extend credit or otherwise allow a retail

2-23 dealer to violate the provisions of subsection 1.

2-24 3. The department may impose a penalty on a retail dealer who

2-25 violates subsection 1 or a wholesale dealer who violates [the provision of]

2-26 subsection 2 as follows:

2-27 (a) For the first violation, a penalty of $500.

2-28 (b) For a second or subsequent violation, if paragraph (c) does not

2-29 apply, a penalty of $1,000.

2-30 (c) For a third or subsequent violation within any 12-month period, a

2-31 penalty of $5,000 or suspension or revocation of the license of the

2-32 [wholesale] dealer, or both.

2-33 4. Pursuant to a written complaint or upon its own motion, the

2-34 department shall investigate an alleged violation of subsection 1 or 2. The

2-35 department shall give notice to the alleged violator and conduct a hearing,

2-36 if warranted by the investigation. The department may assess a penalty

2-37 pursuant to subsection 3, if it determines that the [wholesale] dealer

2-38 violated the provisions of subsection 1 or 2.