(1) For purposes of this section:

(a) Delivery sale has the same meaning as in section 28-1418.01;

(b) Flavored nitrous oxide product means a nitrous oxide product:

(i) Having the taste or smell of any food, including, but not limited to, any fruit, candy, dessert, alcoholic beverage, herb, or spice, that is distinguishable by an ordinary consumer either prior to or during consumption or use of the product;

(ii) That is marketed as having the taste or smell of any food, including, but not limited to, any fruit, candy, dessert, alcoholic beverage, herb, or spice; or

(iii) Regarding which the manufacturer, seller, or any person authorized by, or acting with the consent of, the manufacturer or seller, has made a public statement or claim, whether express or implied, that such product has the taste or smell of any food, including, but not limited to, any fruit, candy, dessert, alcoholic beverage, herb, or spice; and

(c) Nitrous oxide product means a cartridge, cylinder, or tank containing nitrous oxide.

(2) A business entity or corporation shall not sell, including by delivery sale, offer for sale, give, furnish, or distribute to any consumer in this state a nitrous oxide product or flavored nitrous oxide product or willingly allow such products to be taken from such business entity or corporation by any person. This subsection does not apply to a nitrous oxide product, other than a flavored nitrous oxide product, that:

(a) Has been denatured or otherwise rendered unfit for human consumption for use;

(b) Is intended for use by a manufacturer as part of a manufacturing process or industrial operation;

(c) Is intended for use for automotive purposes;

(d) Is prescribed as part of the care or treatment of a disease, condition, or injury by a licensed medical or dental practitioner; or

(e) Is a propellant in food or in food preparation for restaurant, food service, or houseware products.

(3) A business entity or corporation that violates subsection (2) of this section shall be subject to:

(a) A Class II misdemeanor for a first offense;

(b) A Class I misdemeanor for a second or subsequent offense; and

(c) A civil penalty of two thousand five hundred dollars for a first or a subsequent offense.

(4) All nitrous oxide products or flavored nitrous oxide products that are sold, offered for sale, given, or furnished in violation of this section are subject to seizure, forfeiture, and destruction. The cost of such seizure, forfeiture, and destruction shall be borne by the person from whom the products are seized.

(5) Any common carrier that knowingly transports nitrous oxide products or flavored nitrous oxide products for a business entity or corporation that is in violation of subsection (2) of this section is guilty of a Class II misdemeanor.

(6) In addition to any other penalty, a violation of this section shall constitute a deceptive trade practice under the Uniform Deceptive Trade Practices Act and shall be subject to any remedies or penalties available for a violation of such act.

(7) This section does not apply to the following:

(a) The shipment of nitrous oxide products or flavored nitrous oxide products to a foreign-trade zone that is established under 19 U.S.C. 81a et seq., and that is located in this state if the products are from outside of this country, were ordered by a distributor in another state, and are not distributed in this state; or

(b) A government employee who is acting in the course of the employee's official duties.