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A08359 Summary:

Amd 1607, Tax L; amd 119, ABC L
Relates to increasing penalties for certain violations relating to the sale of cigarettes and tobacco products; requires revocation of license to sell lottery tickets and revocation of a liquor license.
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A08359 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
SPONSOR: Cymbrowitz
  TITLE OF BILL: An act to amend the tax law and the alcoholic beverage control law, in relation to penalties for violations relating to the sale of cigarettes and tobacco products   PURPOSE OR GENERAL IDEA OF BILL: To revoke a retail establishments ability to sell lottery tickets and scratch-off games, and lose their beer and wine products licenses if they are convicted more than once of selling untaxed or otherwise ille- gal cigarettes or other tobacco products.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends Section 1607 of the Tax Law to increase the revocation period to three years upon the second violation of article 13-F of the Public Health Law (illegally selling cigarettes to individ- uals not permitted to purchase or smoke) or for selling untaxed or otherwise illegal cigarettes. Section 2 requires the liquor authority to revoke a beer and wine products license for any retailer who has had their cigarette license also revoked. Section 3 of the bill provides for an immediate effective date   JUSTIFICATION: It is crucial that we put an end to the ability of retail outlets to face minimal consequences for selling cigarettes or tobacco products that are not properly taxed by the State and City of New York. These illegal practices, which account for over sixty percent of the ciga- rettes sold in the State, fund terrorists, organized crime and gang activities, force other New York taxpayers to make up billions in reven- ues, and contradict our efforts to reduce smoking, especially with our youth. This illegality is the antithesis to the intent of solution-based law that have sought to the health of all New Yorkers. Moreover, eighty percent of the revenues generated from cigarette and tobacco product taxes fund health programs. These lost revenues exacer- bate the health problems that cigarettes already contribute to, and make it much more difficult to fund our essential programs for the poor, the average workers and their families, and seniors. To reiterate, the law, as currently written, does not go far enough to hold those accountable for circumventing the collection of taxes on cigarettes, and, as a result, the consequences associated with treating health-related cigarette issues are exacerbated, revenues decline, and subsequently all New Yorkers become worse off. This bill requires retailers who egregiously violate our cigarette laws also lose the ability to sell beer, coolers and lottery games. The fear of the loss of these profit centers should go a long way to curbing the illegal trafficking of cigarettes in New York   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: Estimated to increase state and city tax collections by hundreds of millions of dollars annually.   EFFECTIVE DATE: This act shall take effect immediately.
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A08359 Text:

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                      June 12, 2017
        Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
          Committee on Economic Development
        AN ACT to amend the tax law and the alcoholic beverage control  law,  in
          relation  to  penalties  for  violations relating to the sale of ciga-
          rettes and tobacco products

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Paragraph  2  of subdivision h of section 1607 of the tax
     2  law, as amended by chapter 162 of the laws of 2002, is amended and a new
     3  paragraph 3 is added to read as follows:
     4    2. A license shall be revoked for [one year] three years upon  notifi-
     5  cation  to the division by the commissioner of health of a lottery sales
     6  agent's [fourth] second violation of article thirteen-F  of  the  public
     7  health  law,  or a second violation of section eighteen hundred fourteen
     8  of this chapter, within a [three] five year period.
     9    3. The division must revoke a license for a minimum of three years for
    10  a second suspension or any revocation of a retail  license  pursuant  to
    11  section four hundred eighty-a of this chapter.
    12    §  2.  Section 119 of the alcoholic beverage control law is amended by
    13  adding a new subdivision 6 to read as follows:
    14    6. The liquor authority must revoke a retail  license  or  permit  for
    15  sale at a premises licensed upon notification to the liquor authority by
    16  the commissioner of taxation and finance of a revocation of a license to
    17  sell  cigarettes  or  tobacco  products pursuant to section four hundred
    18  eighty-a of the tax law.
    19    § 3. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
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