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227.778 Penalties.
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(2)
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(5)
(6)
A manufacturer, wholesale dealer, or any other person or entity who knowingly sells
or offers to sell cigarettes, other than through retail sale, in violation of KRS
227.772, for the first offense shall be liable for a civil penalty not to exceed ten
thousand dollars ($10,000) per each sale of the cigarettes and, for a subsequent
offense, be liable for a civil penalty not to exceed twenty-five thousand dollars
($25,000) per each sale of the cigarettes, except that in no case shall the penalty
against the person or entity exceed one hundred thousand dollars ($100,000) for
each thirty (30) day period.
A retailer who knowingly sells cigarettes in violation of KRS 227.772 shall:
(a) For the first offense be liable for a civil penalty not to exceed five hundred
dollars ($500) and, for a subsequent offense, be liable for a civil penalty not to
exceed two thousand dollars ($2,000) per each sale or offer for sale of
cigarettes, if the total number of cigarettes sold or offered for sale in the sale
does not exceed one thousand (1,000) cigarettes; or
(b) For the first offense be liable for a civil penalty not to exceed one thousand
dollars ($1,000) and, for a subsequent offense, be liable for a civil penalty not
to exceed five thousand dollars ($5,000) per each sale or offer for sale of the
cigarettes, if the total number of cigarettes sold or offered for sale in the sale
exceeds one thousand (1,000) cigarettes, except that the penalty against any
retailer 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 manufacture of
cigarettes that knowingly makes a false certification pursuant to KRS 227.774 shall
for the first offense be liable for a civil penalty not to exceed seventy-five thousand
dollars ($75,000) and, for a subsequent offense, be liable for a civil penalty not to
exceed two hundred fifty thousand dollars ($250,000) for each false certification.
Any other person violating any provision of KRS 227.770 to 227.784 shall be liable
for a civil penalty for a first offense not to exceed one thousand dollars ($1,000)
and, for a subsequent offense, be liable for a civil penalty not to exceed five
thousand dollars ($5,000) for each violation.
Any cigarettes that have been sold or offered for sale that do not comply with the
performance standard required by KRS 227.772 shall be subject to forfeiture in
accordance with the provisions of KRS 138.165. Before the destruction of any
cigarette seized pursuant to KRS 138.165, the true holder of the trademark rights in
the cigarette brand shall be permitted to inspect the cigarette.
In addition to any other remedy provided by law, the state fire marshal or Attorney
General may file an action in Circuit Court for a violation of KRS 227.770 to
227.784, including petitioning for injunctive relief or to recover any costs or
damages suffered by the state because of a violation of KRS 227.770 to 227.784,
including enforcement costs relating to the specific violation and attorney's fees.
Each violation of KRS 227.770 to 227.784 or of administrative regulations
promulgated under KRS 227.780 shall constitute a separate civil violation for which
the state fire marshal or Attorney General may obtain relief.
Effective: April 1, 2008
History: Created 2007 Ky. Acts ch. 70, sec. 5, effective April 1, 2008.
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