CHAPTER 18.5. TOBACCO SALES CERTIFICATE
IC 7.1-3-18.5
Chapter 18.5. Tobacco Sales Certificate
IC 7.1-3-18.5-1
Tobacco sales certificate required
Sec. 1. (a) A person may not sell or otherwise distribute inexchange for consideration a tobacco product at retail without a validtobacco sales certificate issued by the commission.
(b) A certificate may be issued only to a person who owns oroperates at least one (1) of the following:
(1) A premises consisting of a permanent building or structurewhere the tobacco product is sold or distributed.
(2) A premises upon which a cigarette vending machine (asdefined by IC 35-43-4-7) is located.
As added by P.L.250-2003, SEC.11.
IC 7.1-3-18.5-2
Information required; fees; certification for each location; displayof certificate; denial; requirements
Sec. 2. (a) A person who desires a certificate must provide thefollowing to the commission:
(1) The applicant's name and mailing address and the address ofthe premises for which the certificate is being issued.
(2) Except as provided in section 6(c) of this chapter, a fee oftwo hundred dollars ($200).
(3) The name under which the applicant transacts or intends totransact business.
(4) The address of the applicant's principal place of business orheadquarters, if any.
(5) The statement required under section 2.6 of this chapter.
(b) A separate certificate is required for each location where thetobacco products are sold or distributed.
(c) A certificate holder shall conspicuously display the holder'scertificate on the holder's premises where the tobacco products aresold or distributed.
(d) Any intentional misstatement or suppression of a material factin an application filed under this section constitutes grounds fordenial of the certificate.
(e) A certificate may be issued only to a person who meets thefollowing requirements:
(1) If the person is an individual, the person must be at leasteighteen (18) years of age.
(2) The person must be authorized to do business in Indiana.
(f) The fees collected under this section shall be deposited in theenforcement and administration fund under IC 7.1-4-10.
As added by P.L.250-2003, SEC.11. Amended by P.L.224-2005,SEC.10; P.L.94-2008, SEC.37.
IC 7.1-3-18.5-2.6
Statement of consent Sec. 2.6. An application for a tobacco certificate must contain theexpress statement of the applicant that the applicant consents for theduration of the certificate term (if the commission issues thecertificate to the applicant) to the entrance, inspection, and search byan enforcement officer, without a warrant or other process, of theapplicant's retail premises to determine whether the applicant iscomplying with the provisions of this title. The consent required bythis section is renewed and continued by the retention of a certificateor the certificate's use by the applicant or the applicant's agents.
As added by P.L.94-2008, SEC.38.
IC 7.1-3-18.5-3
Contents of certificate; term of certificate; nontransferable
Sec. 3. (a) A certificate issued by the commission under thischapter must contain the following information:
(1) The certificate number.
(2) The certificate holder's name.
(3) The permanent location of the business or vending machinefor which the certificate is issued.
(4) The expiration date of the certificate.
(b) A certificate is:
(1) valid for three (3) years after the date of issuance, unless thecommission suspends the certificate; and
(2) nontransferable.
As added by P.L.250-2003, SEC.11. Amended by P.L.224-2005,SEC.11.
IC 7.1-3-18.5-4
Adoption of rules
Sec. 4. The commission may adopt rules under IC 4-22-2 toestablish procedures for the issuance, renewal, and reinstatement ofa certificate.
As added by P.L.250-2003, SEC.11.
IC 7.1-3-18.5-5
Certificate suspension; revocation; notice and hearing
Sec. 5. (a) Subject to subsection (b), the commission may suspendthe certificate of a person who fails to pay a civil penalty imposed forviolating IC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11.5, orIC 35-46-1-11.7.
(b) Before enforcing the imposition of a civil penalty orsuspending or revoking a certificate under this chapter, thecommission shall provide written notice of the alleged violation tothe certificate holder and conduct a hearing. The commission shallprovide written notice of the civil penalty or suspension orrevocation of a certificate to the certificate holder.
(c) Subject to subsection (b), the commission shall revoke thecertificate of a person upon a finding by a preponderance of theevidence that the person:
(1) has violated IC 35-45-5-3, IC 35-45-5-3.5, or IC 35-45-5-4; (2) has committed habitual illegal sale of tobacco as establishedunder IC 35-46-1-10.2(h); or
(3) has committed habitual illegal entrance by a minor asestablished under IC 35-46-1-11.7(f).
As added by P.L.250-2003, SEC.11. Amended by P.L.227-2007,SEC.61; P.L.94-2008, SEC.39.
IC 7.1-3-18.5-6
Reinstatement or renewal; failure to pay civil penalty; Class Binfraction; fee
Sec. 6. (a) If a certificate has:
(1) expired; or
(2) been suspended;
the commission may not reinstate or renew the certificate until allcivil penalties imposed against the certificate holder for violatingIC 35-46-1-10, IC 35-46-1-10.2, IC 35-46-1-11.5, or IC 35-46-1-11.7have been paid.
(b) The failure to pay a civil penalty described in subsection (a)is a Class B infraction.
(c) If a certificate has been revoked, the commission may notreinstate or renew the certificate for at least one hundred eighty (180)days after the date of revocation. The commission may reinstate orrenew the certificate only upon a reasonable showing by theapplicant that the applicant shall:
(1) exercise due diligence in the sale of tobacco products on theapplicant's premises where the tobacco products are sold ordistributed; and
(2) properly supervise and train the applicant's employees oragents in the handling and sale of tobacco products.
If a certificate is reinstated or renewed, the applicant of thecertificate shall pay an application fee of one thousand dollars($1,000).
(d) Notwithstanding IC 34-28-5-5(c), civil penalties collectedunder this section must be deposited in the youth tobacco educationand enforcement fund established under IC 7.1-6-2-6.
As added by P.L.250-2003, SEC.11. Amended by P.L.94-2008,SEC.40.
IC 7.1-3-18.5-7
Tobacco sales without certificate; Class A infraction
Sec. 7. (a) A person who is required to have a certificate underthis chapter and who sells or distributes tobacco products without avalid certificate commits a Class A infraction. Each violation of thissection constitutes a separate offense.
(b) Notwithstanding IC 34-28-5-5(c), civil penalties collectedunder this section must be deposited in the Richard D. Doyle youthtobacco education and enforcement fund established underIC 7.1-6-2-6.
As added by P.L.250-2003, SECTION 11. Amended by P.L.252-2003,SEC.4.
IC 7.1-3-18.5-8
Mitigate civil penalties
Sec. 8. The commission may mitigate civil penalties imposedagainst a certificate holder for violating IC 35-46-1-10,IC 35-46-1-10.2, IC 35-46-1-11.5, IC 35-46-1-11.7, or any of theprovisions of this chapter if a certificate holder provides a trainingprogram for the certificate holder's employees that includes at leastthe following topics:
(1) Laws governing the sale of tobacco products.
(2) Methods of recognizing and handling customers who areless than eighteen (18) years of age.
(3) Procedures for proper examination of identification cards toverify that customers are under eighteen (18) years of age.
As added by P.L.94-2008, SEC.41.
IC 7.1-3-18.5-9
Exercise due diligence; supervision and training of employees oragents; prima facie evidence of lack of due diligence
Sec. 9. A certificate holder shall exercise due diligence in thesupervision and training of the certificate holder's employees oragents in the handling and sale of tobacco products on the holder'sretail premises. Proof that employees or agents of the certificateholder, while in the scope of their employment, committed at leastsix (6) violations relating to IC 35-46-1-10.2(a) in any one hundredeighty (180) day period shall be prima facie evidence of a lack of duediligence by the certificate holder in the supervision and training ofthe certificate holder's employees or agents.
As added by P.L.94-2008, SEC.42.
IC 7.1-3-18.5-10
Failure to attend hearing
Sec. 10. (a) If a certificate holder fails to attend or participate ina hearing without good cause, the hearing judge may recommend tothe commission that the commission suspend or revoke the certificateholder's certificate or impose a fine on the certificate holder of up toone thousand dollars ($1,000).
(b) A hearing judge may grant a continuance of a hearing uponwritten motion showing good cause for the continuance.
As added by P.L.94-2008, SEC.43.