59-14-211. Penalties for dealing with prohibited cigarettes -- Private right of action.

664 words·~3 min read·/ut/title-59/chapter-14/59-14-211

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)A person, regardless of whether the person is a licensee under Section 59-14-202 , is guilty of a class B misdemeanor for each instance in which the person knowingly or with reason to know:

(a)sells or distributes cigarettes described under Section 59-14-210 ;

(b)acquires, holds, owns, possesses, transports, imports, or causes to be imported cigarettes:

(i)described under Section 59-14-210 ; and

(ii)intended for distribution or sale in the state;

(c)alters the package of any cigarettes prior to their sale or distribution to the ultimate consumer to remove, conceal, or obscure a notice, warning label, or other package information described in Subsection 59-14-210(1)(a) ; or

(d)affixes a stamp used to pay the tax imposed under Section 59-14-204 , Part 3, Tobacco Products , or Part 4, Cigarettes and Tobacco Products , to a package or container of cigarettes:

(i)described under Section 59-14-210 ;

(ii)known by the person affixing the stamp to be altered as described under Subsection (1)(c) ; or

(iii)in violation of Section 59-14-604 .

(2)If a person knowingly or with reason to know commits an act described in Subsections (1)(a) through

(d), the commission shall:

(a)suspend or revoke a license issued to the person under Section 59-14-202 ; and

(b)regardless of whether the person is licensed under Section 59-14-202 , impose a civil penalty in an amount not to exceed the greater of:

(i)500% of the retail value of the cigarettes; or

(ii)$5,000.

(3)Any person whose commercial interests have been adversely affected as a result of a violation of this section may bring an action for injunctive relief, damages, or both.

(a)The sale or possession for sale of counterfeit cigarettes by a manufacturer, importer, distributor, or retailer is punishable by a court of law as follows:

(i)a first violation involving a total quantity of less than 100 cartons of cigarettes is punishable by a fine in an amount the greater of $500 or five times the retail value of the cigarettes;

(ii)a subsequent violation involving a total quantity of less than 100 cartons of cigarettes is punishable by:

(A)the greater of a fine of $2,000 or five times the retail value of the cigarettes;

(B)imprisonment not to exceed one year; or

(C)both imprisonment and a fine imposed by this Subsection (4)(a)(ii) ; and

(D)the revocation by the commission of the manufacturer, importer, distributor, or retailer license for a period of up to two years;

(iii)a first violation involving a total quantity of 100 cartons of cigarettes or more is punishable by:

(A)the greater of a fine of $2,500 or five times the retail value of the cigarettes;

(B)imprisonment not to exceed five years; or

(C)both the fine and imprisonment imposed by this Subsection (4)(a)(iii) ;

(iv)a second violation involving a quantity of 100 cartons of cigarettes or more is punishable by:

(A)the greater of a fine of $10,000 or five times the retail value of the cigarettes;

(B)imprisonment not to exceed five years; or

(C)both the fine and imprisonment imposed by this Subsection (4)(a)(iv) ; and

(D)the revocation by the commission of the manufacturer, importer, distributor, or retailer license for a period of up to five years; and

(v)a third and subsequent violation involving a quantity of 100 cartons of cigarettes or more is punishable by:

(A)the greater of a fine of $25,000 or five times the retail value of the cigarettes;

(B)imprisonment not to exceed five years; or

(C)both the fine and imprisonment imposed by this Subsection (4)(a)(v) ; and

(D)the revocation by the commission of the manufacturer, importer, distributor, or retailer license for a period of up to five years; and

(b)any counterfeit cigarette seized by the commission shall be destroyed.

Amended by Chapter 204 , 2005 General Session