80-4-428. Penalty for operating without license -- misrepresentation. (1) A person acting as a warehouse operator or a commodity dealer without a license or in any way representing by action or words that the person is a warehouse operator or a commodity dealer when not licensed violates the provisions of Title 80, chapter 4, parts 5 and 6, is guilty of a felony, and is punishable by imprisonment for not more than 10 years or by a fine of not more than $10,000, or both.

(2) A person who issues or aids in the issuance of a fraudulent receipt for any commodity is guilty of a felony and is punishable by imprisonment for not more than 10 years or by a fine of not more than $10,000, or both.

(3) A person who knowingly submits false information to or who knowingly withholds information from the department when that information is required to be submitted is guilty of a felony.

(4) (a) A person who violates any provision of this section is subject to an administrative civil penalty of not more than $100,000 for each transaction in violation.

(b) The department shall establish by rule a penalty matrix that schedules the types of penalties, the amounts for initial and subsequent offenses, and other matters necessary for the administration of civil penalties under this subsection (4). The issuance of a civil penalty is subject to the contested case procedures of Title 2, chapter 4, part 6. The department shall adopt the rules within 3 months of July 1, 2019. The department may not enforce penalties provided for in this section until the rules are adopted.

(c) Funds received in the form of civil penalties must be deposited in the general fund.

History: En. Sec. 19, Ch. 539, L. 1983; amd. Sec. 20, Ch. 452, L. 1993; amd. Sec. 2577, Ch. 56, L. 2009; amd. Sec. 3, Ch. 79, L. 2019.