§ 23-20.11-7 - Enforcement and penalties.
SECTION 23-20.11-7
§ 23-20.11-7 Enforcement and penalties.– (a) Any manufacturer, wholesale dealer, agent or any other person or entity whoknowingly sells or offers to sell cigarettes, other than through retail sale,in violation of § 23-20.11-4 shall, for first offense be subject to acivil penalty not to exceed ten thousand dollars ($10,000) per each such saleof such cigarettes, and for a subsequent offense be subject to a civil penaltynot to exceed twenty-five thousand dollars ($25,000) per each such sale ofcigarettes, provided that in no case shall the penalty against any such personor entity exceed one hundred thousand dollars ($100,000) for sales or offers tosell during a thirty (30) day period. Any retail dealer who knowingly sells oroffers to sell cigarettes in violation of § 23-20.11-4 shall be subject tothe following: (1) for a first offense be subject to a civil penalty not toexceed five hundred dollars ($500), and for a subsequent offense be subject toa civil penalty not to exceed two thousand dollars ($2,000), per each such saleor offer for sale of cigarettes; provided, that the total number of cigarettessold or offered for sale in such sale does not exceed one thousand (1,000)cigarettes; (2) for a first offense be subject to a civil penalty not to exceedone thousand dollars ($1,000), and for a subsequent offense be subject to acivil penalty not to exceed five thousand dollars ($5,000) per each such saleor offer for sale of such cigarettes; provided, that the total number ofcigarettes sold or offered for sale in such sale exceeds one thousand (1,000)cigarettes, provided that this penalty against any retail dealer shall notexceed twenty-five thousand dollars ($25,000) during a thirty (30) day period.In addition to any penalty prescribed by law, any corporation, partnership,sole proprietor, limited partnership or association engaged in the manufacturerof cigarettes that knowingly makes a false certification pursuant to §23-20.11-5 shall, for a first offense be subject to a civil penalty not toexceed ten thousand dollars ($10,000) and for a subsequent offense a civilpenalty not to exceed twenty-five thousand dollars ($25,000), for each suchfalse certification. Any person violating any other provision in this sectionshall be subject to a civil penalty for a first offense not to exceed onethousand dollars ($1,000), and for a subsequent offense subject to a civilpenalty not to exceed five thousand dollars ($5,000) for each such violation.Any cigarettes that have been sold or offered for sale that do not comply withthe safety standard required by § 23-20.11-4 shall be subject toforfeiture an disposal by the state; provided, however, that prior to thedestruction of any cigarette forfeited pursuant to these provision, the trueholder of the trademark rights in the cigarette brand shall be permitted toinspect such cigarette.
(b) The director is authorized to enforce this legislationand to promulgate regulations as necessary to effectuate the purposes of thislaw.
(c) The director of the division of taxation, in the regularcourse of conducting inspections of wholesale dealers, agents, and retaildealers, may inspect cigarettes to determine if the cigarettes are marked asrequired by § 23-20.11-6 of this act. If the cigarettes are not marked asrequired, the director of the division of taxation shall notify the director.
(d) In addition to any other remedy provided by law, theattorney general may file an action in state court for a violation of thischapter, including petitioning for injunctive relief or to recover any costs ordamages suffered by the state government because of a violation of thissection, including enforcement costs relating to the specific violation andattorney's fees. Each violation of this section or of rules adopted under thissection constitutes a separate civil violation for which the attorney generalmay obtain relief.
(e) To enforce the provisions of this act, the attorneygeneral and the director are hereby authorized to examine the books, papers,invoices and other records of any person in possession, control or occupancy ofany premises where cigarettes are placed, stored, sold or offered for sale, aswell as the stock of cigarettes in any such premises. Every person in thepossession, control or occupancy of any premises where cigarettes are placed,sold or offered for sale, is hereby directed and required to give the attorneygeneral and the director the means, facilities and opportunity for theexaminations authorized by this section.