26-42-103.   Violations and penalties -- Imposition by enforcing agency and tax commission.
     (1) If, following an investigation or issuance of a citation or information under Section 77-39-101, an enforcing agency determines under Section 26-42-104 that a licensee or any employee has sold tobacco to a person younger than 19 years of age, as prohibited by Section 76-10-104, the enforcing agency may impose upon the licensee the following administrative penalties:
     (a) upon the first violation, a penalty of not more than $300;
     (b) upon a second violation at the same retail location, and within 12 months of the first violation, a penalty of not more than $750; and
     (c) upon a third or subsequent violation at the same retail location and within 12 months of the first violation, a penalty of not more than $1,000.
     (2) The enforcing agency shall notify the commission in writing of any order or order of default finding a violation of Subsection (1) which is a third or fourth violation.
     (3) The commission, upon receipt of the written notification under Subsection (2), shall take action under Section 59-14-203.5 or 59-14-301.5 against the license to sell tobacco:
     (a) by suspending the licensee's license to sell tobacco at that location for not more than 30 days, upon receipt of notification of a third violation under Subsection (1)(c); and
     (b) by revoking the license to sell tobacco at that location held by the licensee, including any license under suspension, upon receipt of notification of a fourth violation under Subsection (1)(c).
     (4) When the commission revokes a license under Subsection (3)(b), the commission may not issue to the licensee, or to the business entity using the license that is revoked, a license under Section 59-14-201 or 59-14-301 to sell tobacco at the location for which the license was issued for one year after the date of the violation for which the license was revoked.
     (5) This section does not prevent any bona fide purchaser of the business, who is not a sole proprietor, director, corporate officer, or partner or other holder of significant interest in the entity selling the business, from immediately applying for and obtaining a license to sell tobacco.

Enacted by Chapter 319, 1998 General Session
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Last revised: Thursday, May 28, 2009