(a) Any person who conducts, finances, manages, supervises, directs, or owns any part of an illegal drug paraphernalia business is guilty of a: 
(1) Class A misdemeanor for the first offense; 
(2) Class D felony for the second offense; and 
(3) Class C felony for third and subsequent offenses. 
(b) A person violates subsection (a) of this section if he or she: 
(1) Conducts, finances, manages, supervises, directs, or owns any part of a business that, in the regular course of business or as a continuing course of conduct, manufactures, sells, stores, possesses, gives away, or furnishes an object designed to be primarily useful as a drug device; and 
(2) Knows or has reason to know that the design of the object renders it primarily useful as a drug device.