101B.8 - PENALTIES -- ENFORCEMENT.
101B.8 PENALTIES -- ENFORCEMENT.
1. A manufacturer, wholesaler, agent, or other person who
knowingly sells cigarettes at wholesale in violation of section
101B.3 is subject to the following:
a. For a first offense, a civil penalty not to exceed five
thousand dollars for each sale of the cigarettes.
b. For each subsequent offense, a civil penalty not to exceed
ten thousand dollars for each sale of the cigarettes, provided that
the total penalty assessed against any such person shall not exceed
fifty thousand dollars in any thirty-day period.
2. A retailer who knowingly sells cigarettes in violation of
section 101B.3, is subject to the following:
a. For a first offense, a civil penalty not to exceed five
hundred dollars for each sale or offer for sale of the cigarettes,
and for each subsequent offense a civil penalty not to exceed two
thousand dollars for each sale or offer for sale of the cigarettes,
provided that the total number of cigarettes sold or offered for sale
in such sale does not exceed one thousand cigarettes.
b. For a first offense, a civil penalty not to exceed one
thousand dollars for each sale or offer for sale of the cigarettes,
and for each subsequent offense a civil penalty not to exceed five
thousand dollars for each sale or offer for sale of the cigarettes,
provided that the total number of cigarettes sold or offered for sale
in such sale exceeds one thousand cigarettes, and provided that the
penalty against the retailer does not exceed twenty-five thousand
dollars in any thirty-day period.
3. A manufacturer who fails to maintain test reports or who fails
to make copies of the reports available to the department or the
office of the attorney general within sixty days of receiving a
written request pursuant to section 101B.4, is subject to a civil
penalty not to exceed ten thousand dollars for each day beyond the
sixtieth day that the manufacturer fails to provide the test reports.
4. In addition to any penalty prescribed by law, any corporation,
partnership, sole proprietorship, limited partnership, or association
engaged in the manufacture of cigarettes that knowingly makes a false
certification pursuant to section 101B.5 is subject to the following:
a. For a first offense, a civil penalty of at least
twenty-five thousand dollars.
b. For a second or subsequent offense, a civil penalty not to
exceed one hundred thousand dollars for each false certification.
5. Any person violating any other provision of this chapter is
subject to the following:
a. For a first offense, a civil penalty not to exceed one
thousand dollars.
b. For a second or subsequent offense, a civil penalty not to
exceed five thousand dollars for each violation.
6. Any cigarettes that have been sold or offered for sale that do
not comply with the performance standard required pursuant to section
101B.4 shall be subject to forfeiture. However, prior to the
destruction of any cigarettes forfeited, the holder of the trademark
rights in the cigarette brand shall be permitted to inspect the
cigarettes.
7. In addition to any other remedy provided by law, the
department of public safety or the office of the attorney general may
file an action in district court for a violation of this chapter,
including petitioning for injunctive relief or to recover any costs
or damages suffered by the state because of a violation of this
chapter, including enforcement costs relating to the specific
violation and attorney fees. Each violation of the chapter or of
rules adopted under this chapter constitutes a separate civil
violation for which the department of public safety or the office of
the attorney general may seek relief.
8. The department of revenue in the regular course of conducting
inspections of a wholesaler, agent, or retailer may inspect
cigarettes in the possession or control of the wholesaler, agent, or
retailer or on the premises of any wholesaler, agent, or retailer to
determine if the cigarettes are marked as required pursuant to
section 101B.7. If the cigarettes are not marked as required, the
department of revenue shall notify the department of public safety.
9. To enforce the provisions of this chapter, the department of
public safety and the office of the attorney general may examine the
books, papers, invoices, and other records of any person in
possession, control, or occupancy of any premises where cigarettes
are placed, sold, or offered for sale, including the stock of
cigarettes on the premises. Section History: Recent Form
2007 Acts, ch 166, §8