Bill Text: NY A09110 | 2023-2024 | General Assembly | Introduced


Bill Title: Prohibits the keeping of inventory, storage, warehouse, processing, packaging, shipping or distributing of flavored vapor products near where vapor or tobacco products are sold at retail or wholesale.

Spectrum: Partisan Bill (Democrat 25-1)

Status: (Introduced) 2024-02-07 - referred to health [A09110 Detail]

Download: New_York-2023-A09110-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          9110

                   IN ASSEMBLY

                                    February 7, 2024
                                       ___________

        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Health

        AN ACT to amend the public health law and the tax law,  in  relation  to
          prohibiting the storage of flavored vapor products near where vapor or
          tobacco products are sold at retail or wholesale

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivisions 1, 17 and 18 of section 1399-aa of the  public
     2  health  law, subdivision 1 as amended by chapter 13 of the laws of 2003,
     3  and subdivisions 17 and 18 as added by section 2 of part EE  of  chapter
     4  56 of the laws of 2020, are amended to read as follows:
     5    1.  "Enforcement  officer"  means  the  enforcement officer designated
     6  pursuant to article thirteen-E of this chapter to enforce  such  article
     7  and hold hearings pursuant thereto; provided that in a city with a popu-
     8  lation of more than one million it shall also mean an officer or employ-
     9  ee  or  any  agency of such city that is authorized to enforce any local
    10  law of such city related to the regulation of the  sale  of  cigarettes,
    11  tobacco products, or vapor products to minors.
    12    17.  "Vapor  products" means any noncombustible liquid or gel, regard-
    13  less of the presence of nicotine therein, that is  manufactured  into  a
    14  finished  product  for  use  in an electronic [cigarette, including any]
    15  device that delivers vapor  which  is  inhaled,  including  any  refill,
    16  cartridge,    device, or component thereof, that contains or is intended
    17  to be used with such noncombustible liquid or gel. "Vapor product" shall
    18  not include any device, or any component thereof, that does not  contain
    19  such noncombustible liquid or gel, or any product approved by the United
    20  States  food  and  drug  administration  as a drug or medical device, as
    21  those terms are defined in the federal food, drug, and cosmetic act,  or
    22  manufactured  and  dispensed  pursuant  to [title five-A] article three,
    23  four, or five of [article thirty-three of  this  chapter]  the  cannabis
    24  law.
    25    18. "Vapor products dealer" means a person licensed by the commission-
    26  er  of taxation and finance to sell vapor products [in this state], or a
    27  person or business required to obtain such license.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11096-06-4

        A. 9110                             2

     1    § 2. Subdivision 2 and paragraph  (f)  of  subdivision  3  of  section
     2  1399-ee  of the   public  health law, as amended by section 6 of part EE
     3  of chapter 56 of the laws  of  2020, are amended to read as follows:
     4    2.  If  the  enforcement  officer  determines  after  a hearing that a
     5  violation of this article has occurred, [he or she] or that a  state  or
     6  local health official was denied access to a retail store including  all
     7  product display and storage areas, for the purpose of evaluating compli-
     8  ance  with  this article, they shall impose a civil penalty of a minimum
     9  of  three  hundred  dollars, but not to exceed one thousand five hundred
    10  dollars for a first violation, and a minimum of  one  thousand  dollars,
    11  but  not to exceed two thousand five hundred dollars for each subsequent
    12  violation, unless a different penalty  is  otherwise  provided  in  this
    13  article.  The  enforcement  officer  shall advise the retail dealer that
    14  upon the accumulation of three or more points pursuant to  this  section
    15  the department of taxation and finance shall suspend the dealer's regis-
    16  tration.  If  the  enforcement officer determines after a hearing that a
    17  retail dealer was selling tobacco or vapor products while  their  regis-
    18  tration  was  suspended  or  permanently revoked pursuant to subdivision
    19  three or four of this section, [he or she] they  shall  impose  a  civil
    20  penalty of twenty-five hundred dollars.
    21    (f)  Surcharge.  A  [two]  four hundred [fifty] dollar surcharge to be
    22  assessed for every violation will be made available to enforcement offi-
    23  cers and shall be used solely for compliance checks to be  conducted  to
    24  determine compliance with this section.
    25    §  3.  Subdivision  1  of section 1399-ff of the public health law, as
    26  amended by chapter 100 of the laws  of  2019,  is  amended  to  read  as
    27  follows:
    28    1.  Where  a  civil  penalty  for  a  particular incident has not been
    29  imposed or an enforcement action regarding an alleged  violation  for  a
    30  particular  incident is not pending under section thirteen hundred nine-
    31  ty-nine-ee of this article, a parent or guardian of a person under twen-
    32  ty-one years of age to  whom  tobacco  products,  herbal  cigarettes  or
    33  [electronic  cigarettes]  vapor  products  are  sold  or  distributed in
    34  violation of this article may submit a complaint to an enforcement offi-
    35  cer setting forth the name and address of the alleged violator, the date
    36  of the alleged violation, the name and address of  the  complainant  and
    37  the person under twenty-one years of age, and a brief statement describ-
    38  ing  the  alleged  violation.  The  enforcement officer shall notify the
    39  alleged  violator  by  certified  or  registered  mail,  return  receipt
    40  requested, that a complaint has been submitted, and shall set a date, at
    41  least  fifteen  days  after the mailing of such notice, for a hearing on
    42  the complaint.  Such notice shall contain the information  submitted  by
    43  the complainant.
    44    §  4.  Subdivision  1  of section 1399-gg of the public health law, as
    45  amended by chapter 513 of the laws  of  2004,  is  amended  to  read  as
    46  follows:
    47    1.  All  tobacco cigarettes or vapor products sold or offered for sale
    48  by a retail dealer shall be sold or offered for  sale  in  the  package,
    49  box,  carton  or other container provided by the manufacturer, importer,
    50  or packager which bears all health warnings required by applicable law.
    51    § 5. The opening paragraph and subdivisions 2 and 3 of section 1399-hh
    52  of the public health law, as amended by section 8 of part EE of  chapter
    53  56 of the laws of 2020, are amended to read as follows:
    54    The  commissioner  shall  develop,  plan and implement a comprehensive
    55  program to reduce the prevalence of tobacco [use,] and  vapor  product[,
    56  intended  or  reasonably expected to be used with or for the consumption

        A. 9110                             3

     1  of nicotine,] use, particularly among persons less than twenty-one years
     2  of age. This program shall include, but not be limited to,  support  for
     3  enforcement of this article.
     4    2. The commissioner shall distribute such monies as are made available
     5  for  such purpose to enforcement officers and, in so doing, consider the
     6  number  of  licensed  vapor  products  dealers  or  sellers  and  retail
     7  locations registered to sell tobacco products within the jurisdiction of
     8  the  enforcement  officer  and the level of proposed activities. For the
     9  purposes of this section, "seller" means a person, sole  proprietorship,
    10  corporation,  limited liability company, partnership or other enterprise
    11  that distributes, sells or offers to sell,  whether  through  retail  or
    12  wholesale,  or exchanges or offers to exchange for any form of consider-
    13  ation, cigarettes, tobacco products, or vapor products.  This definition
    14  is without regard to the quantity of cigarettes,  tobacco  products,  or
    15  vapor  products  distributed,  sold,  offered  for  sale,  exchanged, or
    16  offered for exchange.
    17    3. Monies made available to  enforcement  officers  pursuant  to  this
    18  section  shall  only  be  used  for  local  tobacco  and vapor product[,
    19  intended or reasonably expected to be used with or for  the  consumption
    20  of nicotine,] enforcement activities approved by the commissioner.
    21    §  6.  Subdivision  2  of section 1399-ii of the public health law, as
    22  amended by section 12 of part EE of chapter 56 of the laws of  2020,  is
    23  amended to read as follows:
    24    2.  The  department  shall  support  tobacco  and  vapor  product  use
    25  prevention and control activities including, but not limited to:
    26    (a) Community programs to prevent and reduce tobacco use through local
    27  involvement and partnerships;
    28    (b) School-based programs to prevent and reduce tobacco use and use of
    29  vapor products;
    30    (c) Marketing and advertising to discourage tobacco[,] and vapor prod-
    31  uct [and liquid nicotine] use, especially   among   consumers    histor-
    32  ically targeted by tobacco and vapor product advertising and manufactur-
    33  ers;
    34    (d) Nicotine cessation programs for youth and adults;
    35    (e)  Special  projects to reduce the disparities in smoking prevalence
    36  among various populations;
    37    (f)  Restriction  of  youth  access  to  tobacco  products  and  vapor
    38  products;
    39    (g) Surveillance of smoking and vaping rates; and
    40    (h)  Any  other activities determined by the commissioner to be neces-
    41  sary to implement the provisions of this section.
    42    Such programs shall be selected by the commissioner through an  appli-
    43  cation process which takes into account whether a program utilizes meth-
    44  ods  recognized  as  effective  in  reducing [nicotine] tobacco or vapor
    45  product use. Eligible applicants may include, but not be limited  to,  a
    46  health  care  provider, schools, a college or university, a local public
    47  health department, a public health organization, a health care  provider
    48  organization,  association  or  society,  municipal  corporation,  or  a
    49  professional education organization.
    50    § 7. Section 1399-ii-1 of the public health law, as added  by  section
    51  11  of  part EE of chapter 56 of the laws of 2020, is amended to read as
    52  follows:
    53    §  1399-ii-1.  [Electronic  cigarette  and   vaping]   Vapor   product
    54  prevention,  awareness  and  control program. The commissioner shall, in
    55  consultation and  collaboration  with  the  commissioner  of  education,
    56  establish and develop [an electronic cigarette and vaping] a vapor prod-

        A. 9110                             4

     1  uct  prevention,  control  and  awareness program within the department.
     2  Such program shall be designed to educate students, parents  and  school
     3  personnel  about  the health risks associated with vapor product use and
     4  control  measures to reduce the prevalence of vaping, particularly among
     5  persons less than twenty-one years of age.  Such program shall  include,
     6  but  not  be  limited  to, the creation of age-appropriate instructional
     7  tools and materials that may be used by all schools, and  marketing  and
     8  advertising materials to discourage [electronic cigarette] vapor product
     9  use.
    10    §  8.  Subdivision  6  of section 1399-ll of the public health law, as
    11  amended by section 3 of part EE of chapter 56 of the laws  of  2020,  is
    12  amended to read as follows:
    13    6.  The  attorney  general  may  bring  an action to recover the civil
    14  penalties provided by subdivision five of  this  section  and  for  such
    15  other  relief  as  may be deemed necessary. In addition, the corporation
    16  counsel of any political subdivision that imposes a tax on cigarettes or
    17  vapor products [intended or reasonably expected to used with or for  the
    18  consumption of nicotine] may bring an action to recover the civil penal-
    19  ties  provided  by  subdivision  five of this section and for such other
    20  relief as may be deemed necessary with  respect  to  any  cigarettes  or
    21  vapor  products  [intended or reasonably expected to be used with or for
    22  the consumption of nicotine] shipped, caused to  be  shipped  or  trans-
    23  ported  in  violation  of this section to any person located within such
    24  political subdivision. All civil penalties obtained in any  such  action
    25  shall  be  retained  by the state or political subdivision bringing such
    26  action[, provided that no person shall be required to pay  civil  penal-
    27  ties  to  both the state and a political subdivision with respect to the
    28  same violation of this section].
    29    § 9. Section 1399-mm-1 of the public health law, as added by section 1
    30  of part EE of chapter 56 of the laws of 2020,  is  amended  to  read  as
    31  follows:
    32    § 1399-mm-1. Sale of flavored products prohibited. 1. For the purposes
    33  of  this  section  "flavored"  shall mean any vapor product [intended or
    34  reasonably expected to be used with or for the consumption of nicotine,]
    35  with a [distinguishable] taste, [or] aroma, or cooling or numbing sensa-
    36  tion, distinguishable by an ordinary customer, other than the  taste  or
    37  aroma of tobacco, imparted either prior to or during consumption of such
    38  product or a component part thereof, including but not limited to tastes
    39  or  aromas  relating  to  any  fruit,  chocolate, vanilla, honey, candy,
    40  cocoa, dessert, alcoholic beverage, mint, wintergreen, menthol, herb  or
    41  spice,  or  any  concept  flavor  that  imparts a taste or aroma that is
    42  distinguishable from tobacco flavor but may not relate to any particular
    43  known flavor. A vapor product [intended or  reasonably  expected  to  be
    44  used  with  or for the consumption of nicotine,] shall be presumed to be
    45  flavored if a product's  retailer,  manufacturer,  or  a  manufacturer's
    46  agent  or  employee  has  made  a  statement  or claim, or other action,
    47  directed to consumers or the public, whether expressed or implied,  that
    48  such  product  or  device  has a [distinguishable] taste [or], aroma, or
    49  cooling or numbing sensation, as distinguishable by the ordinary consum-
    50  er, other than the taste [or], aroma, or sensation of tobacco.
    51    2. No vapor products dealer, seller or any  agent  or  employee  of  a
    52  vapor products dealer or seller, shall sell or offer for sale [at retail
    53  in  the  state],  or  exchange  or  offer  for exchange, for any form of
    54  consideration,  any  flavored  vapor  product  [intended  or  reasonably
    55  expected  to  be  used with or for the consumption of nicotine], whether
    56  through retail or wholesale.  For the purposes of this  section,  seller

        A. 9110                             5

     1  means  a  person,  sole  proprietorship,  corporation, limited liability
     2  company, partnership or other  enterprise  that  distributes,  sells  or
     3  offers  to  sell,  whether  through retail or wholesale, or exchanges or
     4  offers  to exchange, for any form of consideration, vapor products. This
     5  definition is without regard to the quantity of vapor products  distrib-
     6  uted, sold, offered for sale, exchanged, or offered for exchange.
     7    3.  No  vapor  products dealer or seller or any agent or employee of a
     8  vapor products dealer or seller, acting in the capacity  thereof,  shall
     9  keep  in  inventory,  store, stow, warehouse, process, package, ship, or
    10  distribute flavored vapor or tobacco products anywhere in, adjacent  to,
    11  or  accessible  to  a place of business or premises where vapor products
    12  are sold, offered for sale, exchanged, or offered for exchange, for  any
    13  form of consideration, at retail.
    14    4.  Any vapor products dealer or seller, or any agent or employee of a
    15  vapor products dealer or seller, who violates  the  provisions  of  this
    16  section shall be subject to a civil penalty of not more than [one] three
    17  hundred  dollars  for  each individual package of flavored vapor product
    18  [intended or reasonably expected to be used with or for the  consumption
    19  of  nicotine]  sold  or  offered for sale, [provided, however, that with
    20  respect to a manufacturer, it shall be an affirmative defense to a find-
    21  ing of violation pursuant to this section that such sale] or  [offer  of
    22  sale,  as  applicable, occurred without the knowledge, consent, authori-
    23  zation, or involvement, direct] exchanged  or  [indirect,]  offered  for
    24  exchange,  for  any  form  of [such manufacturer] consideration, whether
    25  through retail or wholesale, or kept in inventory, stored, stowed, ware-
    26  housed, processed, packaged, shipped, or  distributed  anywhere  in,  or
    27  adjacent  to,  a  place  of business where vapor or tobacco products are
    28  sold, offered for sale, exchanged, or offered for exchange, for any form
    29  of consideration, at retail.   Violations  of  the  provisions  of  this
    30  section  shall  be  enforced  pursuant  to  [section]  sections thirteen
    31  hundred ninety-nine-ee and thirteen hundred ninety-nine-ff of this arti-
    32  cle,  [except];  provided,  however,  that  [any]  violations   of   the
    33  provisions  of  this  section  may also be enforced by the commissioner;
    34  provided, further,  however,  that  any  monies  obtained  in  any  such
    35  enforcement  action taken by the commissioner shall be made available to
    36  support tobacco and vapor product enforcement programs operating  pursu-
    37  ant  to  section  thirteen  hundred  ninety-nine-hh of this article. Any
    38  person may submit a complaint to an enforcement officer that a violation
    39  of this section has occurred.
    40    [4. The provisions of this  section  shall  not  apply  to  any  vapor
    41  products  dealer,  or  any agent or employee of a vapor products dealer,
    42  who sells or offers for sale, or who possess  with  intent  to  sell  or
    43  offer  for  sale,  any  flavored  vapor  product  intended or reasonably
    44  expected to be used with or for the consumption  of  nicotine  that  the
    45  U.S.  Food  and  Drug Administration has authorized to legally market as
    46  defined under 21 U.S.C. § 387j and that has received a premarket  review
    47  approval order under 21 U.S.C. § 387j(c) et seq.]
    48    5.  Nothing  in  this  section  shall  be  construed  to  penalize the
    49  purchase, use, or possession of a tobacco product or  vapor  product  by
    50  any person not engaged as a vapor products dealer, retail dealer, tobac-
    51  co or vapor seller, or any agent or employee of a vapor products dealer,
    52  retail dealer, or tobacco or vapor seller.
    53    §  10.  Paragraph  (e)  of  section  1183  of the tax law, as added by
    54  section 1 of part UU of chapter 59 of the laws of 2019,  is  amended  to
    55  read as follows:

        A. 9110                             6

     1    (e) (1) If a vapor products [dealer] dealer's certificate or registra-
     2  tion  is  suspended, cancelled or revoked and such vapor products dealer
     3  sells vapor products through more than one place  of  business  in  this
     4  state, the vapor products dealer's certificate of registration issued to
     5  that  place  of  business,  cart,  stand,  truck  or other merchandising
     6  device, where such violation occurred, shall be  suspended,  revoked  or
     7  cancelled.  Provided,  however,  upon  a  vapor  products dealer's third
     8  suspension, cancellation or revocation within a five-year period for any
     9  one or more businesses owned or operated by the vapor  products  dealer,
    10  such suspension, cancellation, or revocation of the vapor products deal-
    11  er's  certificate  of registration shall apply to all places of business
    12  where he or she sells vapor products in this state.
    13    (2) If a vapor products dealer does not possess a valid certificate of
    14  registration, either because it failed to obtain a registration  or  its
    15  registration  is  suspended  or  revoked  and  the commissioner or their
    16  designee, pursuant to their authority under this  article,  attempts  to
    17  inspect  such  premises  for  a violation of this section and such vapor
    18  products dealer, including an agent thereof, is found, after notice  and
    19  opportunity  to  be  heard,  to have refused such inspection, such vapor
    20  products dealer shall be subject to a penalty of  up  to  four  thousand
    21  dollars  for  a  first  refusal  and  up to eight thousand dollars for a
    22  second or subsequent refusal within three years of a prior refusal.
    23    § 11. Section 1183 of the tax law is amended by adding two new  subdi-
    24  visions (i) and (j) to read as follows:
    25    (i) At the time of delivering vapor products to any person, each vapor
    26  products  dealer shall make a true duplicate invoice showing the date of
    27  delivery, the number of packages and number of vapor products  contained
    28  therein, in each shipment of vapor products delivered, and the items and
    29  quantity  and  wholesale  price  of  each item in each shipment of vapor
    30  products delivered, and the name of the purchaser to  whom  delivery  is
    31  made,  and  shall  retain  such duplicate invoices for a period of three
    32  years subject to the use and inspection of the commissioner. Each  vapor
    33  products  dealer shall procure and retain invoices showing the number of
    34  packages and number of vapor products contained therein, in  each  ship-
    35  ment of vapor products received by him or her, and the items and quanti-
    36  ty  and  wholesale price of each item in each shipment of vapor products
    37  received by him or her, the date thereof, and the name of  the  shipper,
    38  and  shall  retain  such invoices for a period of three years subject to
    39  the use and inspection of the commissioner. The  commissioner  by  regu-
    40  lation  may  provide  that  whenever vapor products are shipped into the
    41  state, the railroad company, express company, trucking company or  other
    42  public  carrier  transporting  any  shipment thereof shall file with the
    43  commissioner a copy of the freight bill within ten days after the deliv-
    44  ery in the state of each shipment.  All  vapor  products  dealers  shall
    45  maintain  and  keep  for  a  period of three years such other records of
    46  vapor products received, sold or delivered within the state, as  may  be
    47  required  by  the commissioner. The commissioner is hereby authorized to
    48  examine the books, papers, invoices and other records of any  person  in
    49  possession,  control  or  occupancy of any premises where vapor products
    50  are placed, stored, sold or offered for sale, and the equipment  of  any
    51  such  person pertaining to the sale and delivery of vapor products taxa-
    52  ble under this article, as well as the stock of vapor  products  in  any
    53  such  premises or vehicle. To verify the accuracy of the tax imposed and
    54  assessed by this article,  each  such  person  is  hereby  directed  and
    55  required  to  give  to  the  commissioner  or his or her duly authorized

        A. 9110                             7

     1  representatives, the means, facilities and opportunity for such examina-
     2  tions as are herein provided for and required.
     3    (j) If a vapor products dealer, including an agent thereof, refuses to
     4  comply  with  the  requirements of this section, its registration may be
     5  revoked (i) for a period of one year, (ii) for a second  such  violation
     6  within  a  period  of  five years, for up to three years, or (iii) for a
     7  third or subsequent violation within a period  of  seven  years,  for  a
     8  period  up to ten years. A vapor products dealer's registration shall be
     9  considered to be revoked pursuant to this subdivision  immediately  upon
    10  such  dealer's  receipt of written notice of revocation from the commis-
    11  sioner.
    12    § 12. Severability. If any clause, sentence,  paragraph,  subdivision,
    13  section  or part of this act shall be adjudged by any court of competent
    14  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
    15  invalidate the remainder thereof, but shall be confined in its operation
    16  to the clause, sentence, paragraph, subdivision, section or part thereof
    17  directly  involved  in the controversy in which such judgment shall have
    18  been rendered. It is hereby declared to have  been  the  intent  of  the
    19  legislature  that  this act would have been enacted even if such invalid
    20  provisions had not been included herein.
    21    § 13. This act shall take effect on the ninetieth day after  it  shall
    22  have become a law.
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