Sec. 7. 36 MRSA §4402, as amended by PL 2003, c. 439, §4, is repealed and the following enacted in its place:

§4402. Licenses

1.__Generally.__Every distributor shall obtain a license from the State Tax Assessor before engaging in business.__A retailer required to be licensed as a distributor pursuant to this chapter must also hold a current retail tobacco license issued under Title 22, section 1551-A.

2.__Applications; forms.__Every license application must be made on a form prescribed by the assessor and must state the name and address of the applicant, the address of the applicant's principal place of business and such other information as the assessor may require for the proper administration of this chapter.__ A person outside the State who ships or transports tobacco products to a retailer in this State must make application as a distributor and be granted by the assessor a license subject to all the provisions of this chapter and agree, upon applying for a license, to submit that person's books, accounts and records to examination by the bureau during reasonable business hours and to accept service of process by mail when service is made in any proceeding involving enforcement of this chapter.

3.__Expiration and reissuance.__A license issued pursuant to this section expires on June 30th of each year unless sooner revoked by the assessor.__The license must be prominently displayed on the premises covered by the license and may not be transferred to any other person.

4.__Penalties.__The following penalties apply to a violation of this section.

A.__A distributor that imports into this State any tobacco product without holding a distributor's license issued by the assessor pursuant to this section commits a civil violation for which a fine of not less than $250 and not more than $500 must be adjudged.

B.__A distributor that violates paragraph A after having been previously adjudicated as violating paragraph A commits a civil violation for which a fine of not less than $500 and not more than $1,000 must be adjudged for each subsequent violation.