(a) A manufacturer, wholesale dealer, agent or any other person or entity that knowingly sells or offers to sell cigarettes, other than through retail sale in violation of § 68-102-503 shall be liable for a civil penalty not to exceed one hundred dollars ($100) for each pack of such cigarettes sold or offered for sale; provided, that in no case shall the penalty against any such person or entity exceed one hundred thousand dollars ($100,000) during any thirty-day period.
Terms Used In Tennessee Code 68-102-506
Agent: means any person authorized by the commissioner of revenue to purchase and affix stamps on packages of cigarettes. See Tennessee Code 68-102-502
Cigarette: means any roll for smoking, whether made wholly or in part of tobacco or any other substance, regardless of size or shape, and whether or not the tobacco or substance is flavored, adulterated or mixed with any other ingredient, the wrapper or cover of which is made of paper or any other substance or material except tobacco. See Tennessee Code 68-102-502
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Manufacturer: means : (A) Any entity that manufactures or otherwise produces cigarettes or causes cigarettes to be manufactured or produced anywhere that the manufacturer intends to be sold in this state, including cigarettes intended to be sold in the United States through an importer. See Tennessee Code 68-102-502
Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
Representative: when applied to those who represent a decedent, includes executors and administrators, unless the context implies heirs and distributees. See Tennessee Code 1-3-105
Retail dealer: means any person, other than a manufacturer or wholesale dealer, engaged in selling cigarettes or tobacco products. See Tennessee Code 68-102-502
Sale: means , in addition to its usual meaning, any sale, use, transfer, exchange, barter, gift or offer for sale and distribution, in any manner or by any means whatsoever. See Tennessee Code 68-102-502
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
Wholesale dealer: means any person other than a manufacturer who sells cigarettes or tobacco products to retail dealers or other persons for purposes of resale, and any person who owns, operates or maintains one (1) or more cigarette or tobacco product vending machines in, at or upon premises owned or occupied by any other person. See Tennessee Code 68-102-502
(b) A retail dealer who knowingly sells or offers to sell cigarettes in violation of § 68-102-503, shall be liable for a civil penalty not to exceed one hundred dollars ($100) for each pack of such cigarettes sold or offered for sale; provided, that the penalty against any retail dealer shall not exceed twenty-five thousand dollars ($25,000) for sales or offers to sell during any thirty-day period.(c) 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 § 68-102-504 shall be liable for a civil penalty of at least seventy-five thousand dollars ($75,000) and not to exceed two hundred fifty thousand dollars ($250,000) for each such false certification.(d) Any person violating any other provision in this part shall be liable for a civil penalty for a first offense not to exceed one thousand dollars ($1,000), and for a subsequent offense liable for a civil penalty not to exceed five thousand dollars ($5,000), for each such violation.(e) Any cigarettes that have been sold or offered for sale that do not comply with the performance standard required by § 68-102-503 shall be subject to forfeiture and, upon forfeiture, destroyed; provided, however, that prior to the destruction of any cigarette pursuant to this section, the true holder of the trademark rights in the cigarette brand shall be permitted to inspect the cigarette.(f) The Uniform Administrative Procedures Act, compiled in title 4, chapter 5, governs all matters and procedures respecting the hearing and judicial review of any contested case arising under this part. The state fire marshal is authorized to assess civil penalties for each violation as specified in this part.(g) Whenever any law enforcement personnel or duly authorized representative of the state fire marshal discovers any cigarettes that have not been marked in the manner required by § 68-102-505, such personnel is authorized and empowered to seize and take possession of the cigarettes. The cigarettes shall be turned over to the commissioner of revenue, and shall be forfeited to the state. Cigarettes seized pursuant to this section shall be destroyed; provided, however, that prior to the destruction of any cigarette seized pursuant to this part, the true holder of the trademark rights in the cigarette brand shall be permitted to inspect the cigarette.
