KRS § 227.778 — KY Code / Title XIX / Chapter 227 / Section 227.778
227.778 Penalties
Status: in_force

227.778 Penalties.

(1) 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.

(2) 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.

(3) 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.

(4) 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.

(5) 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.

(6) 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.