A02103 Summary:

BILL NOA02103
 
SAME ASSAME AS S04576
 
SPONSORMayer
 
COSPNSRPichardo, Jaffee, Ryan, Gottfried, Dinowitz, Arroyo, Barrett, Galef, Perry, Abinanti
 
MLTSPNSRBarron, Cook, Crespo, Glick
 
Add 1399-bb-1, Pub Health L
 
Prohibits the use of coupons or use of a price reduction instrument to lower the price of certain tobacco products.
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A02103 Actions:

BILL NOA02103
 
01/17/2017referred to health
03/01/2017reported referred to codes
01/03/2018referred to codes
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A02103 Committee Votes:

HEALTH Chair:Gottfried DATE:03/01/2017AYE/NAY:17/9 Action: Favorable refer to committee Codes
GottfriedAyeRaiaNay
SchimmingerNayMcDonoughNay
GalefAyeRaNay
DinowitzAyeWalterNay
CahillAyeGarbarinoNay
PaulinAyeByrneNay
CymbrowitzAyeNorrisNay
GuntherNay
RosenthalAye
HevesiAye
LavineAye
TitoneAye
MayerAye
JaffeeAye
SteckAye
AbinantiAye
BraunsteinAye
KimAye
SolagesAye

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A02103 Floor Votes:

There are no votes for this bill in this legislative session.
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A02103 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2103
 
SPONSOR: Mayer (MS)
  TITLE OF BILL: An act to amend the public health law, in relation to prohibiting the use of coupons or use of a "price reduction instrument" to lower the price of certain tobacco products   PURPOSE OR GENERAL IDEA OF BILL: This legislation would prohibit the use of coupons or price reduction instruments for the purchase of certain tobacco products.   SUMMARY OF SPECIFIC PROVISIONS: Section one provides legislative findings. Section two amends the public health law by adding a new section 1399-bb-1 which prohibits the sale of discounted cigarettes and tobacco products. Section one of 1399-bb-1 provides definitions used in this section. Section two of section 1399-bb-1 prohibits sale of cigarettes for less than the listed price. Section three of section 1399-bb-1 prohibits the sale of tobacco products for less than the listed price. Section four of section 1399-bb-1 establishes a prohibition on the sale of electronic cigarettes for less than the listed price. Section five of section 1399-bb-1 authorizes the commissioner to promulgate the neces- sary rules to carry out this section. Section six of section 1399-bb-1 establishes enforcement and penalties, which shall be carried out by the Attorney General. The court may also impose civil penalties of the following amounts: up to one thousand dollars for a first violation within a five year period, up to two thousand dollars for a second violation within a five year period, up to five thousand dollars for a third violation within a five year period. The attorney general is authorized to take proof and make determination of the relevant facts to issue subpoenas. Section three of the bill establishes the effective date.   JUSTIFICATION: Tobacco use is a leading cause of preventable premature death in the United States and the State of New York. Given the substantial human and economic costs associated with tobacco use, New York State has taken numerous steps to reduce tobacco use among adults and to stop persons under the age of eighteen from starting to use cigarettes, e-cigarettes and other tobacco products. Although it is unlawful to sell tobacco products to minors, tobacco use persists among adults and even young adults under the age of eighteen. According to a recently report issued by the Centers for Disease Control and Prevention and the U.S. Food and Drug Administration's Center for Tobacco Products, e-cigarette use tripled among middle and high school students from 2013-2014. Their data further shows that youth who had never smoked conventional cigarettes but who used e-cigarettes were almost twice as likely to have intentions to smoke conventional ciga- rettes as those who had never used e-cigarettes. This of course raises concern that there may be young people for whom e-cigarettes could serve as a gateway for use of conventional tobacco products, including ciga- rettes. E-cigarettes may be a more enticing entry point for nicotine use for young adults as they are marketed in flavors such as bubble gum, pineapple and chocolate. Overall rates for tobacco use among Americans in 2014 were 24.6 percent for high school students and nearly 8 percent for middle school students. As such, the state must take further action. Preventing adults and young adults under the age of eighteen from taking up smoking is critical as nine out of ten smokers first tried cigarettes by age eighteen and nine- ty-nine percent first tried cigarettes by age twenty-six. The legisla- ture finds, based on numerous studies, that high tobacco prices reduce tobacco consumption among both adults and persons under the age of eigh- teen, who are especially price-sensitive. Just as high tobacco prices decrease demand, the availability of low- priced cigarettes, e-cigarettes and other tobacco products increases demand and contributes to continued tobacco use. Low-priced cigarettes, e-cigarettes and other tobacco products are widely available in New York State through a number of sources. The use of coupons, especially those marketed to young people, reduce prices for tobacco products and increase smoking among youth. Discounts, particularly those marketed to youth, entice consumers, including price-sensitive youth, to purchase deadly and highly addictive products. This bill, which is based upon an existing law in New York City, will address the widespread availability of low-priced cigarettes and tobacco products in New York State by banning the redemption of coupons and other price reduction instruments for the sale of cigarettes, e-cigar- ettes and other tobacco products which are not otherwise approved by the FDA for use as a tobacco cessation product or for other medical purposes.   PRIOR LEGISLATIVE HISTORY: 2016: A5164B (Mayer) referred to codes 2015: A5164A (Mayer) referred to codes   FISCAL IMPLICATIONS: To be determined   EFFECTIVE DATE: This act will take effect on the ninetieth day after it becomes law.
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A02103 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2103
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 17, 2017
                                       ___________
 
        Introduced  by M. of A. MAYER, PICHARDO, JAFFEE, RYAN, GOTTFRIED, DINOW-
          ITZ, ARROYO, BARRETT, GALEF, PERRY, ABINANTI -- Multi-Sponsored by  --
          M. of A.  BARRON, COOK, CRESPO, GLICK -- read once and referred to the
          Committee on Health
 
        AN  ACT  to  amend the public health law, in relation to prohibiting the
          use of coupons or use of a "price reduction instrument" to  lower  the
          price of certain tobacco products
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Legislative findings. The legislature  finds  that  tobacco
     2  use  is  a  leading  cause  of preventable premature death in the United
     3  States and the state of New York.    Given  the  substantial  human  and
     4  economic  costs  associated  with  tobacco use, New York state has taken
     5  numerous steps to reduce tobacco use among adults and to prevent  minors
     6  from taking up cigarette smoking or using other tobacco products. Howev-
     7  er,  the  legislature finds that the state should take further action to
     8  discourage adults and young adults from  taking  up  and  continuing  to
     9  smoke cigarettes, use e-cigarettes, or use other tobacco products.
    10    Despite  New  York  state's laws which prohibit the sale of cigarettes
    11  and e-cigarettes to children under  age  18,  tobacco  use  among  young
    12  adults  persists.  According to recent findings, nine out of ten smokers
    13  first tried cigarettes by age eighteen, and  ninety-nine  percent  first
    14  tried  cigarettes by age twenty-six. In addition, a recent report issued
    15  by the Centers for Disease Control and Prevention and the U.S. Food  and
    16  Drug Administration's Center for Tobacco Products noted that while ciga-
    17  rette  use  among  high  school  students  has  declined,  it still is a
    18  substantial share (9.2%) of the most commonly used tobacco  products  by
    19  these students. Of particular importance, the report notes that e-cigar-
    20  ette  use  tripled  among middle and high school students from 2013-2014
    21  and that e-cigarette use has surpassed the current use  of  every  other
    22  tobacco product overall.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02499-01-7

        A. 2103                             2
 
     1    The  legislature  finds  that  the  use of price reduction promotions,
     2  especially coupons targeted in mailing, design and  marketing  to  young
     3  adults,  results  in additional and unwanted incentives for tobacco use.
     4  By  encouraging  purchase  by  price  reduction,  these   youth-directed
     5  promotions  unquestionably  encourage youth use of tobacco products, and
     6  should be disallowed.
     7    The legislature hereby declares that enactment of this act  is  neces-
     8  sary to address the persistent availability of low-priced cigarettes and
     9  tobacco  products  targeted  to young people in New York state. This act
    10  will ban the redemption of coupons and other price reduction instruments
    11  in the sale of  cigarettes  and  tobacco  products  to  consumers.  Such
    12  actions are necessary to discourage the use of tobacco products by youn-
    13  ger people in New York state.
    14    §  2.  The  public  health  law  is  amended  by  adding a new section
    15  1399-bb-1 to read as follows:
    16    § 1399-bb-1. Prohibition on the  sale  of  discounted  cigarettes  and
    17  tobacco products. 1. Definitions. As used in this section:
    18    (a)  "Cigar"  means any roll of tobacco for smoking that is wrapped in
    19  leaf tobacco or in any substance containing tobacco, with or  without  a
    20  tip  or  mouthpiece. Cigar does not include a little cigar as defined in
    21  this section.
    22    (b) "Cigarette" means any roll for smoking made wholly or in  part  of
    23  tobacco or any other substance, irrespective of size or shape and wheth-
    24  er  or  not  such tobacco or substance is flavored, adulterated or mixed
    25  with any other ingredient, the wrapper or cover  of  which  is  made  of
    26  paper  or any other substance or material but is not made in whole or in
    27  part of tobacco.
    28    (c) "Electronic cigarette" means an electronic  device  that  delivers
    29  vapor  for  inhalation.  Electronic  cigarette shall include any refill,
    30  cartridge, and any other component of an electronic cigarette.  The term
    31  includes any such device, whether manufactured, distributed, marketed or
    32  sold as an e-cigarette, e-cigar, e-pipe, e-hookah or vape pen, or  under
    33  any  other  product  name or descriptor.  Electronic cigarette shall not
    34  include any product approved by the food  and  drug  administration  for
    35  sale as a drug or medical device.
    36    (d)  "Little  cigar"  means  any  roll  of tobacco for smoking that is
    37  wrapped in leaf tobacco or in any substance containing tobacco and  that
    38  weighs  no more than four pounds per thousand or has a cellulose acetate
    39  or other integrated filter.
    40    (e) "Listed price" means the price listed for  cigarettes  or  tobacco
    41  products  on  their packages or on any related shelving, posting, adver-
    42  tising or display at the place where the cigarettes or tobacco  products
    43  are sold or offered for sale, including all applicable taxes.
    44    (f) "Person" means any natural person, corporation, partnership, firm,
    45  organization or other legal entity.
    46    (g)  "Price  reduction  instrument" means any coupon, voucher, rebate,
    47  card, paper, note, form,  statement,  ticket,  image,  or  other  issue,
    48  whether  in  paper,  digital,  or  any  other  form, used for commercial
    49  purposes to receive an article, product, service, or accommodation with-
    50  out charge or at a discounted price.
    51    (h) "Tobacco product" means any product which contains tobacco that is
    52  intended for human consumption, including any component, part, or acces-
    53  sory of such product. Tobacco product shall include, but not be  limited
    54  to,  any  cigar, little cigar, chewing tobacco, pipe tobacco, roll-your-
    55  own tobacco, snus, bidi, snuff, tobacco-containing shisha,  or  dissolv-
    56  able  tobacco  product.  Tobacco product shall not include cigarettes or

        A. 2103                             3
 
     1  any product that has been approved by the United States  food  and  drug
     2  administration  for sale as a tobacco use cessation product or for other
     3  medical purposes and that is being marketed and  sold  solely  for  such
     4  purposes.
     5    2.  Prohibition  on  the  sale  of cigarettes for less than the listed
     6  price.  No person shall:
     7    (a) honor or accept a coupon or other price  reduction  instrument  in
     8  any transaction related to the sale of cigarettes to a consumer;
     9    (b)  sell  or  offer  for  sale  cigarettes  to a consumer through any
    10  multi-package discount or otherwise provide to a consumer any cigarettes
    11  for less than the listed price in exchange for the purchase of any other
    12  cigarettes by the consumer;
    13    (c) sell, offer for sale, or otherwise provide any product other  than
    14  cigarettes  to a consumer for less than the listed price in exchange for
    15  the purchaser of cigarettes by the consumer; or
    16    (d) sell, offer for sale, or otherwise provide cigarettes to a consum-
    17  er for less than the listed price.
    18    3. Prohibition on the sale of tobacco products for less than the list-
    19  ed price. No person shall:
    20    (a) honor or accept a coupon or other price  reduction  instrument  in
    21  any transaction related to the sale of tobacco products to a consumer;
    22    (b)  sell or offer for sale tobacco products to a consumer through any
    23  multi-package discount or otherwise provide to a  consumer  any  tobacco
    24  product  for  less than the listed price in exchange for the purchase of
    25  any other tobacco product by the consumer;
    26    (c) sell, offer for sale, or otherwise provide any product other  than
    27  a  tobacco  product  to  a  consumer  for  less than the listed price in
    28  exchange for the purchase of a tobacco product by the consumer; or
    29    (d) sell, offer for sale, or otherwise provide tobacco products  to  a
    30  consumer for less than the listed price.
    31    4.  Prohibition on the sale of electronic cigarettes for less than the
    32  listed price. No person shall:
    33    (a) honor or accept a coupon or other price  reduction  instrument  in
    34  any  transaction  related  to  the  sale of an electronic cigarette to a
    35  consumer;
    36    (b) sell or offer for sale electronic cigarettes to a consumer through
    37  any multi-package discount or otherwise provide to a consumer any tobac-
    38  co product for less than the listed price in exchange for  the  purchase
    39  of any other electronic cigarettes by the consumer;
    40    (c)  sell, offer for sale, or otherwise provide any product other than
    41  an electronic cigarette to a consumer for less than the listed price  in
    42  exchange for the purchase of an electronic cigarette by the consumer; or
    43    (d)  sell,  offer for sale, or otherwise provide electronic cigarettes
    44  to a consumer for less than the listed price.
    45    5. Rules.  The commissioner or his or her  delegate  shall  promulgate
    46  any  rules  as may be necessary or desirable for the purpose of carrying
    47  out this section.
    48    6. Enforcement and penalties. (a) Whenever there shall be a  violation
    49  of  this  section, an application may be made by the attorney general in
    50  the name of the people of the state of New York, to a court  or  justice
    51  having  jurisdiction by a special proceeding to issue an injunction, and
    52  upon notice to the defendant of not less than five days, to  enjoin  and
    53  restrain  the  continuance  of such violation; and if it shall appear to
    54  the satisfaction of the court or justice  that  the  defendant  has,  in
    55  fact, violated this section, an injunction may be issued by the court or
    56  justice,  enjoining  and  restraining  any  further  violations, without

        A. 2103                             4
 
     1  requiring proof that any person has, in fact, been  injured  or  damaged
     2  thereby.  In  any  such proceeding, the court may make allowances to the
     3  attorney general as provided in paragraph  six  of  subdivision  (a)  of
     4  section  eighty-three hundred three of the civil practice law and rules,
     5  and direct restitution.  Whenever  the  court  shall  determine  that  a
     6  violation  of  this  section  has occurred, the court may impose a civil
     7  penalty in the following amounts:
     8    (1) up to one thousand dollars for a first violation  within  a  five-
     9  year period;
    10    (2)  up  to two thousand dollars for a second violation within a five-
    11  year period; and
    12    (3) up to five thousand dollars for a third violation within  a  five-
    13  year period.
    14    (b)  No  person  shall  be liable under this section for more than one
    15  violation of any of subdivisions two or three of this section  during  a
    16  single day.
    17    (c)  In  connection with any application as described in paragraph (a)
    18  of this subdivision, the attorney general is authorized  to  take  proof
    19  and make a determination of the relevant facts and to issue subpoenas in
    20  accordance with the civil practice law and rules.
    21    §  3.  This  act shall take effect on the ninetieth day after it shall
    22  have become a law.
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A02103 LFIN:

 NO LFIN
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A02103 Chamber Video/Transcript:

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