§ 23-20.11-7. Enforcement and penalties.
(a) Any manufacturer, wholesale dealer, agent or any other person or entity who knowingly
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 a civil penalty not to exceed ten thousand
dollars ($10,000) per each such sale of such cigarettes, and for a subsequent offense
be subject to a civil penalty not to exceed twenty-five thousand dollars ($25,000)
per each such sale of cigarettes, provided that in no case shall the penalty against
any such person or entity exceed one hundred thousand dollars ($100,000) for sales
or offers to sell during a thirty (30) day period. Any retail dealer who knowingly
sells or offers to sell cigarettes in violation of § 23-20.11-4 shall be subject to the following: (1) for a first offense be subject to a civil
penalty not to exceed five hundred dollars ($500), and for a subsequent offense be
subject to a civil penalty not to exceed two thousand dollars ($2,000), per each such
sale or offer for sale of cigarettes; provided, that the total number of cigarettes
sold 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 exceed one thousand dollars
($1,000), and for a subsequent offense be subject to a civil penalty not to exceed
five thousand dollars ($5,000) per each such sale or offer for sale of such cigarettes;
provided, that the total number of cigarettes sold or offered for sale in such sale
exceeds one thousand (1,000) cigarettes, provided that this penalty against any retail
dealer shall not exceed 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 manufacturer of
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 to exceed ten thousand
dollars ($10,000) and for a subsequent offense a civil penalty not to exceed twenty-five
thousand dollars ($25,000), for each such false certification. Any person violating
any other provision in this section shall be subject to a civil penalty for a first
offense not to exceed one thousand dollars ($1,000), and for a subsequent offense
subject to a civil penalty 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
with the safety standard required by § 23-20.11-4 shall be subject to forfeiture an disposal by the state; provided, however, that
prior to the destruction of any cigarette forfeited pursuant to these provision, the
true holder of the trademark rights in the cigarette brand shall be permitted to inspect
such cigarette.
(b) The director is authorized to enforce this legislation and to promulgate regulations
as necessary to effectuate the purposes of this law.
(c) The director of the division of taxation, in the regular course of conducting inspections
of wholesale dealers, agents, and retail dealers, may inspect cigarettes to determine
if the cigarettes are marked as required by § 23-20.11-6 of this act. If the cigarettes are not marked as required, the director of the division
of taxation shall notify the director.
(d) In addition to any other remedy provided by law, the attorney general may file an
action in state court for a violation of this chapter, including petitioning for injunctive
relief or to recover any costs or damages suffered by the state government because
of a violation of this section, including enforcement costs relating to the specific
violation and attorney's fees. Each violation of this section or of rules adopted
under this section constitutes a separate civil violation for which the attorney general
may obtain relief.
(e) To enforce the provisions of this act, the attorney general and the director are hereby
authorized to examine the books, papers, invoices and other records of any person
in possession, control or occupancy of any premises where cigarettes are placed, stored,
sold or offered for sale, as well as the stock of cigarettes in any such premises.
Every person in the possession, control or occupancy of any premises where cigarettes
are placed, sold or offered for sale, is hereby directed and required to give the
attorney general and the director the means, facilities and opportunity for the examinations
authorized by this section.