Requires vapor products dealers to be registered with the department of health; permits municipalities to require additional registration of vapor products dealers; permits the revocation of licenses and registrations by the commissioner of health, the the cannabis control board, the state liquor authority, and the department of taxation and finance as a result of the knowing and unlawful sale of cannabis.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9857
SPONSOR: Stern
 
TITLE OF BILL:
An act to amend the public health law, in relation to requiring vapor
products dealers to be registered with the department of health; to
amend the tax law, in relation to the registration of vapor products
dealers by municipalities, and the revocation of a vapor products dealer
certificate of registration by the commissioner of taxation and finance;
and to amend the public health law, the tax law, the cannabis law and
the alcoholic beverage control law, in relation to the revocation of
licenses and registrations for the knowing and unlawful sale of cannabis
 
PURPOSE:
Relates to the registration of vapor products dealers by the department
of health and by municipalities, and to the revocation of licenses and
registrations for the knowing and unlawful sale of cannabis.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: The public health law is amended by adding a new section
1399-mm-4 requiring vapor products dealer registration be registered
with and overseen by the department. Municipality may require addi-
tional, municipality-specific registration or licensing of vapor
products dealers. Vapor products dealer that knowingly and unlawfully
sells any cannabis, cannabis product as defined in subdivision nine of
section three of the cannabis law, or concentrated cannabis as defined
in subdivision seventeen of section three of the cannabis law.
Section 2: The public health law is amended by adding a new section
1399-mm-5 to identify the unlawful sale of cannabis by vapor products
dealers.
Section 3: Paragraph 1 of subdivision (d) of section 1183 of the tax
law, as added by section 1 of part UU of chapter 59 of the laws of 2019,
is amended to outline when the commissioner will refuse to issue a
certificate of registration to any applicant who does not possess a
valid certificate of authority under section eleven hundred thirty-four
of this chapter. In addition, the commissioner may refuse to issue a
certificate of registration, or suspend, cancel or revoke a certificate
of registration issued to any person based on criteria listed in this
section.
Section 4: Section 1399-ee of the public health law is amended by adding
a new subdivision 7 that states if the commissioner or his or her desig-
nee determines, after a hearing, that a retail dealer has violated
section i thirteen hundred ninety-nine-mm-five of this article he or she
shall, in addition to imposing any other penalty required or permitted
by this section, direct the cannabis control board, the state liquor
authority and the department of taxation and finance to revoke any
license or registration of the dealer as permitted by law for such a
violation.
Section 5: Section 1607 of the tax law is amended by adding a new subdi-
vision (i) to read as follows: a violation of section thirteen hundred
ninety-nine mm-five of the public health law, as provided in this
subdvision, a license shall be revoked upon notification to the division
by the commissioner of health of a lottery sales agent's violation of
section thirteen hundred ninety-nine-mm-five of the public health law.
Section 6: Subdivision 4 follows notified by the adding a new paragraph
(c) of section to read term "for cause" shall also includeof board being
commissioner of health of a violationsection thirteen hundred ninet-
nine-mm-five of the public health law.
Section 7: Subdivision 3 of section 118 of the alcoholic beverage
control law is amended by adding a new paragraph (d ) to read as
follows: as used in this section, the term "for cause" shall also
include the state liquor authority being notified by the commissioner of
health of a violation of section thirteen hundred ninety-nine-mm-five of
the public health law.
Section 8: sets the effective date.
 
JUSTIFICATION:
Currently every person who intends to sell vapor products in NYS must
apply for and receive a certificate of registration from the Department
of Taxation and Finance before selling them. The current law gives the
State Health Department enforcement oversight to ensure compliance with
all tobacco and e-cigarette laws, including adhering to the minimum
legal sale age, display of approved signage, restricting the sale of
flavored vaping products other than tobacco flavored, and storing tobac-
co and vapor products out of consumer's reach.
This amendment seeks to increase in strength the enforcement oversight
that the Department of Health has beyond what it has been assigned by
the Department of Taxation and Finance. This amendment proposes that all
vapor products dealers be registered directly with the Department of
Health. In doing so, the control over the registration of these shops
would be in the hands of the department whose sole purpose is to
protect, improve and promote the health, productivity and wellbeing of
all New Yorkers.
Further this amendment seeks to increase the rights of the munici-
palities should they wish to require any additional registration or
licensing from the vapor product dealers. This law would provide the
municipalities with greater powers when citing public health and safety
concerns and would allow them to create regulations that better reflect
the desires of their communities. This amendment would also allow the
municipality the right to revoke the registration or license of any
dealer who unlawfully sells cannabis or cannabis products. The penalty
for unlawful sale would also increase to ten is a significant increase
to the current amount listed thousand dollars which in the penal code
which is set at $5000.
This bill will give more power to the State Health Department and muni-
cipalities over vapor product dealers and their locations. It also
provides for stricter penalties which will help act as a deterrent to
selling to underage persons in the community, in addition to illegally
selling cannabis.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9857
IN ASSEMBLY
April 24, 2024
___________
Introduced by M. of A. STERN -- read once and referred to the Committee
on Health
AN ACT to amend the public health law, in relation to requiring vapor
products dealers to be registered with the department of health; to
amend the tax law, in relation to the registration of vapor products
dealers by municipalities, and the revocation of a vapor products
dealer certificate of registration by the commissioner of taxation and
finance; and to amend the public health law, the tax law, the cannabis
law and the alcoholic beverage control law, in relation to the revoca-
tion of licenses and registrations for the knowing and unlawful sale
of cannabis
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public health law is amended by adding a new section
2 1399-mm-4 to read as follows:
3 § 1399-mm-4. Vapor products dealer registration. 1. Any vapor products
4 dealer selling vapor products in the state shall be registered with the
5 department. The department shall oversee the operations of such regis-
6 tered vapor products dealers.
7 2. (a) A municipality may require additional, municipality-specific
8 registration or licensing of vapor products dealers. Such municipality
9 may establish grounds for revocation of such a registration or license
10 which may include, but shall not be limited to, the knowing and unlawful
11 sale of any cannabis, cannabis product as defined in subdivision nine of
12 section three of the cannabis law, or concentrated cannabis as defined
13 in subdivision seventeen of section three of the cannabis law.
14 (b) A municipality shall revoke the certificate of occupancy of any
15 vapor products dealer that knowingly and unlawfully sells any cannabis,
16 cannabis product as defined in subdivision nine of section three of the
17 cannabis law, or concentrated cannabis as defined in subdivision seven-
18 teen of section three of the cannabis law.
19 § 2. The public health law is amended by adding a new section
20 1399-mm-5 to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11877-01-3
A. 9857 2
1 § 1399-mm-5. Unlawful sale of cannabis by vapor products dealers. Any
2 vapor products dealer that knowingly and unlawfully sells any cannabis,
3 cannabis product as defined in subdivision nine of section three of the
4 cannabis law, or concentrated cannabis as defined in subdivision seven-
5 teen of section three of the cannabis law shall be subject to a penalty
6 of ten thousand dollars.
7 § 3. Paragraph 1 of subdivision (d) of section 1183 of the tax law, as
8 added by section 1 of part UU of chapter 59 of the laws of 2019, is
9 amended to read as follows:
10 (1) The commissioner shall refuse to issue a certificate of registra-
11 tion to any applicant who does not possess a valid certificate of
12 authority under section eleven hundred thirty-four of this chapter. In
13 addition, the commissioner may refuse to issue a certificate of regis-
14 tration, or suspend, cancel or revoke a certificate of registration
15 issued to any person who: (A) has a past-due liability as that term is
16 defined in section one hundred seventy-one-v of this chapter; (B) has
17 had a certificate of registration under this article or any license or
18 registration provided for in this chapter revoked within one year from
19 the date on which such application was filed; (C) has been convicted of
20 a crime provided for in this chapter within one year from the date on
21 which such application was filed; (D) willfully fails to file a report
22 or return required by this article; (E) willfully files, causes to be
23 filed, gives or causes to be given a report, return, certificate or
24 affidavit required by this article which is false; (F) willfully fails
25 to collect or truthfully account for or pay over any tax imposed by this
26 article; [or] (G) whose place of business is at the same premises as
27 that of a person whose vapor products dealer registration has been
28 revoked and where such revocation is still in effect, unless the appli-
29 cant or vapor products dealer provides the commissioner with adequate
30 documentation demonstrating that such applicant or vapor products dealer
31 acquired the premises or business through an arm's length transaction as
32 defined in paragraph (e) of subdivision one of section four hundred
33 eighty-a of this chapter; or (H) knowingly and unlawfully sells any
34 cannabis, cannabis product as defined in subdivision nine of section
35 three of the cannabis law, or concentrated cannabis as defined in subdi-
36 vision seventeen of section three of the cannabis law.
37 § 4. Section 1399-ee of the public health law is amended by adding a
38 new subdivision 7 to read as follows:
39 7. If the commissioner or his or her designee determines, after a
40 hearing, that a retail dealer has violated section thirteen hundred
41 ninety-nine-mm-five of this article he or she shall, in addition to
42 imposing any other penalty required or permitted by this section, direct
43 the cannabis control board, the state liquor authority and the depart-
44 ment of taxation and finance to revoke any license or registration of
45 the dealer as permitted by law for such a violation.
46 § 5. Section 1607 of the tax law is amended by adding a new subdivi-
47 sion i to read as follows:
48 i. A violation of section thirteen hundred ninety-nine-mm-five of the
49 public health law, as provided in this subdivision, a license shall be
50 revoked upon notification to the division by the commissioner of health
51 of a lottery sales agent's violation of section thirteen hundred nine-
52 ty-nine-mm-five of the public health law.
53 § 6. Subdivision 4 of section 133 of the cannabis law is amended by
54 adding a new paragraph (c) to read as follows:
A. 9857 3
1 (c) As used in this section, the term "for cause" shall also include
2 the board being notified by the commissioner of health of a violation of
3 section thirteen hundred ninety-nine-mm-five of the public health law.
4 § 7. Subdivision 3 of section 118 of the alcoholic beverage control
5 law is amended by adding a new paragraph (d) to read as follows:
6 (d) As used in this section, the term "for cause" shall also include
7 the state liquor authority being notified by the commissioner of health
8 of a violation of section thirteen hundred ninety-nine-mm-five of the
9 public health law.
10 § 8. This act shall take effect immediately.