Arkansas Code § 26-57-1306 - Penalties and Other Remedies

(a) License Revocation and Civil Penalty. (1) In addition to or in lieu of any other civil or criminal remedy provided by law, upon a determination that a licensee or permitee has violated § 26-57-1303(c) or any rule adopted under this subchapter, the Director of Arkansas Tobacco Control may revoke or suspend the licensee's licenses or permits pursuant to law and the Arkansas Tobacco Control Board's rules governing the procedure for revocation or suspension of the licenses or permits.

(2) Each tax stamp affixed to and each sale or offer to sell cigarettes in violation of § 26-57-1303(c) shall constitute a separate violation.

(3) For each violation, the board may also impose a civil penalty in an amount not to exceed the greater of five hundred percent (500%) of the retail value of the cigarettes or five thousand dollars ($5,000) upon a determination of a violation of § 26-57-1303(b) or of any regulations adopted under this subchapter.

(b) Contraband and Seizure. Any cigarettes that have been sold, offered for sale, or possessed for sale in this state or imported for personal consumption in this state in violation of § 26-57-1303(c) shall be deemed contraband, and the cigarettes shall be subject to seizure and forfeiture as provided in § 5-64-505, and all of the cigarettes seized and forfeited shall be destroyed and not resold.

(c) Injunction. (1) The Attorney General may seek an injunction to restrain a threatened or actual violation of § 26-57-1303(c), § 26-57-1305(a), or § 26-57-1305(d) by a licensee and to compel the licensee to comply with those provisions.

(2) In any action brought under this section, the state shall be entitled to recover the costs of investigation, costs of the action, and reasonable attorney's fees.

(d) Unlawful Sale and Distribution. (1) It is unlawful for a person to sell or distribute cigarettes or to acquire, hold, own, possess, transport, import, or cause to be imported, cigarettes that the person knows or should know are intended for distribution or sale in the state in violation of § 26-57-1303(c).

(2) A violation of this subsection is a Class A misdemeanor.

(e) Deceptive and Unconscionable Trade Practice. A violation of § 26-57-1303(c) is a deceptive or unconscionable trade practice under § 4-88-101 et seq.

(f) (1) In addition to any other provision of law, the Attorney General may seek a civil penalty in an amount not to exceed five hundred dollars ($500) per day for the knowing failure of a wholesaler to timely or accurately comply with § 26-57-1305(a).

(2) A civil penalty collected under this section is general revenue of the state.

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Last modified: November 15, 2016