Bill Text: NY A09857 | 2023-2024 | General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-24 - referred to health [A09857 Detail]

Download: New_York-2023-A09857-Introduced.html



                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.
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