(a) Notwithstanding any other provision of law, the sale or possession for sale of counterfeit cigarettes by a manufacturer, importer, distributor, or dealer shall result in the seizure of the product and related machinery by the administrator or any law enforcement agency and shall be punishable as follows: (1) A knowing violation involving a total quantity of less than two (2) cartons of cigarettes shall be punishable by a fine of ten thousand dollars ($10,000), or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not to exceed five (5) years, or both. (2) A subsequent knowing violation involving a total quantity of less than two (2) cartons of cigarettes shall be punishable by a fine of fifty thousand dollars ($50,000), or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not to exceed ten (10) years, or both, and shall also result in the revocation by the administrator of the manufacturer, importer, distributor, or dealer license. (3) A first knowing violation involving a total quantity of two (2) cartons of cigarettes or more shall be punishable by a fine of twenty thousand dollars ($20,000), or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not to exceed five (5) years, or both. (4) A subsequent knowing violation involving a quantity of two (2) cartons of cigarettes or more shall be punishable by a fine of one hundred thousand dollars ($100,000), or five (5) times the retail value of the cigarettes involved, whichever is greater, or imprisoned not to exceed fifteen (15) years, or both, and shall also result in the revocation by the administrator of the manufacturer, importer, distributor, or dealer license. (b) For purposes of this section, counterfeit cigarettes includes cigarettes that have false manufacturing labels or packages of cigarettes bearing counterfeit tax stamps. Any counterfeit cigarettes seized by the administrator shall be destroyed.
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