CHAPTER 6. CONTRABAND CIGARETTES

IC 24-3-6
    Chapter 6. Contraband Cigarettes

IC 24-3-6-1
"Commission"
    Sec. 1. As used in this chapter, "commission" refers to the alcoholand tobacco commission created by IC 7.1-2-1-1.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-2
"Distributor"
    Sec. 2. As used in this chapter, "distributor" means a distributor(as defined in IC 6-7-1-6) that holds a registration certificate issuedunder IC 6-7-1-16.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-3
"Importer"
    Sec. 3. As used in this chapter, "importer" means a person thatbrings cigarettes into the United States for sale or distribution.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-4
"Licensed"
    Sec. 4. As used in this chapter, "licensed" means holding a licenseissued under section 9 of this chapter.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-5
"Manufacturer"
    Sec. 5. As used in this chapter, "manufacturer" means a personthat manufactures or otherwise produces cigarettes to be sold in theUnited States.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-6
"Person"
    Sec. 6. As used in this chapter, "person" has the meaning set forthin IC 6-7-1-4.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-7
"Retailer"
    Sec. 7. As used in this chapter, "retailer" means a person that sellscigarettes to a consumer. The term includes a distributor.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-8
"Stamp"
    Sec. 8. As used in this chapter, "stamp" has the meaning set forth

in IC 6-7-1-9.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-9
Licenses; application, issuance, and renewal; revocation orsuspension
    Sec. 9. (a) The commission may issue or renew a license to thefollowing applicants:
        (1) An importer.
        (2) A manufacturer.
The commission shall prescribe the form of an application.
    (b) An importer or manufacturer that conducts business in Indianamust apply under this section for a license for the importer's ormanufacturer's principal place of business. An importer ormanufacturer that is issued a license shall display the license at theimporter's or manufacturer's principal place of business.
    (c) The commission shall prescribe the form and duration of alicense issued under this section. However, a license may not bevalid for more than three (3) years from the date of issuance.
    (d) A license issued under this section is nontransferable.
    (e) The commission shall not issue or renew a license under thissection if:
        (1) the applicant owes at least five hundred dollars ($500) intaxes imposed under IC 6-7-1-12;
        (2) the commission revoked the applicant's license within two(2) years before the application;
        (3) the applicant commits an offense under IC 6-7-1-21;
        (4) the applicant does not comply with IC 24-3-3-12; or
        (5) the applicant violates IC 24-3-4.
    (f) The commission may revoke or suspend a license issued underthis section if the applicant:
        (1) is not eligible to receive or renew a license under subsection(e); or
        (2) violates this chapter.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-10
Stamped and unstamped cigarettes
    Sec. 10. (a) A distributor may apply a stamp only to cigarettes thatare received from a licensed importer or licensed manufacturer.
    (b) A distributor shall store stamped and unstamped cigarettesseparately.
    (c) A distributor may transfer unstamped cigarettes only asprovided in IC 6-7-1-18.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-11
Selling or obtaining cigarettes
    Sec. 11. (a) A manufacturer or an importer may sell cigarettes inIndiana only to a distributor or a licensed importer.    (b) A manufacturer that sells cigarettes to a licensed importerunder subsection (a) must be a licensed manufacturer.
    (c) A distributor may sell cigarettes only to a distributor or aretailer.
    (d) A distributor may obtain cigarettes only from anotherdistributor, a licensed importer, or a licensed manufacturer.
    (e) Except as provided in subsection (f), a retailer may obtaincigarettes only from a distributor.
    (f) A retailer that is a holder of a certificate issued underIC 7.1-3-18.5 may purchase up to one thousand dollars ($1,000) ofcigarettes per week from another retailer that holds a certificateissued under IC 7.1-3-18.5.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-12
Reporting information by distributor to attorney general
    Sec. 12. (a) This section does not apply to a distributor who:
        (1) is a licensed manufacturer; and
        (2) complies with section 13 of this chapter.
    (b) A distributor shall report the following information for eachplace of business belonging to the distributor to the office of theattorney general not later than the fifteenth day of each month:
        (1) The number and brand of cigarettes:
            (A) distributed;
            (B) shipped into Indiana; or
            (C) shipped within Indiana;
        during the immediately preceding month.
        (2) The name and address of each person to which cigarettesdescribed in subdivision (1) were distributed or shipped.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-13
Documentation of transactions; preservation; review
    Sec. 13. (a) An importer or a manufacturer shall maintaindocumentation for each place of business belonging to the importeror manufacturer for each transaction other than a retail transactionwith a consumer involving the sale, purchase, transfer, consignment,or receipt of cigarettes. The documentation must include:
        (1) the name and address of the parties to the transaction; and
        (2) the quantity by brand style of cigarettes involved in thetransaction.
    (b) Subject to subsection (c), an importer or a manufacturer shallpreserve documentation described in subsection (a) at the place ofbusiness at which each transaction occurs.
    (c) The commission may allow an importer or a manufacturerwith multiple places of business to preserve documentation describedin subsection (a) at a centralized location. However, the importer ormanufacturer shall provide duplicate documentation at each place ofbusiness upon request by the commission.
    (d) An importer or a manufacturer shall maintain documentation

under this section for five (5) years from the date of the transaction.
    (e) The commission may:
        (1) obtain access to; and
        (2) inspect at reasonable times;
the documentation maintained under this section. The commissionmay share the documentation with other law enforcement officials.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-14
Inspection by commission or law enforcement officer
    Sec. 14. (a) The commission may enter and inspect, without awarrant during normal business hours or with a warrant duringnonbusiness hours, the facilities and records of an importer or amanufacturer.
    (b) If the commission or a law enforcement officer has knowledgeor reasonable grounds to believe that a vehicle is transportingcigarettes in violation of this chapter, the commission or the lawenforcement officer may stop and inspect the vehicle for cigarettesbeing transported in violation of this chapter.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-15
Civil penalty
    Sec. 15. (a) A person who violates this chapter is liable for a civilpenalty equal to the greater of:
        (1) five (5) times the value of the cigarettes involved in theviolation; or
        (2) one thousand dollars ($1,000).
    (b) A civil penalty under this section is in addition to any otherpenalty imposed.
As added by P.L.160-2005, SEC.15.

IC 24-3-6-16
Right of action; notice to attorney general
    Sec. 16. (a) Either or both of the following may bring an action toprevent or restrain violations of this chapter:
        (1) The attorney general or the attorney general's designee.
        (2) A person that holds a valid permit under 26 U.S.C. 5712.
    (b) A person that brings an action under subsection (a) shallprovide notice to the attorney general of the commencement of theaction.
As added by P.L.160-2005, SEC.15.