Bill Text: NY S07898 | 2019-2020 | General Assembly | Introduced
Bill Title: Relates to verification of compliance with federal and state regulations on packaging of e-liquid products; relates to creating a "tobacco and vaping cessation fund" to be funded with tax revenue from sales of e-liquid products.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-02-28 - REFERRED TO CONSUMER PROTECTION [S07898 Detail]
Download: New_York-2019-S07898-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7898 IN SENATE February 28, 2020 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law and the public health law, in relation to packaging requirements for e-liquid products; to amend the tax law, in relation to taxes imposed for the sale of vaping products, and the disbursement of such taxes; and to amend the state finance law, in relation to establishing a "tobacco and vaping cessation fund" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 399-gg of the general business law, as added by 2 chapter 542 of the laws of 2014, is amended to read as follows: 3 § 399-gg. Packaging of electronic liquid. 1. No person, firm or corpo- 4 ration shall sell or offer for sale any electronic liquid, as defined in 5 paragraph (e) of subdivision one of section thirteen hundred ninety- 6 nine-cc of the public health law, unless [the] such electronic liquid is 7 sold or offered for sale in a child resistant bottle which is designed 8 to prevent accidental exposure of children to electronic liquids. 9 2. Upon receipt of notification from the commissioner of health made 10 pursuant to subdivision four of section thirteen hundred ninety-nine-gg- 11 one of the public health law, a seller under this section shall have 12 ninety days to become compliant with section thirteen hundred ninety- 13 nine-gg-one of the public health law. After such date, no person, firm 14 or corporation shall sell or offer for sale any electronic liquid, 15 unless the packaging of such electronic liquid is in compliance with 16 such section. 17 3. Any violation of this section shall be punishable by a civil penal- 18 ty not to exceed one thousand dollars. 19 § 2. The public health law is amended by adding a new section 20 1399-gg-1 to read as follows: 21 § 1399-gg-1. Verification of manufacturers of e-liquids. 1. For the 22 purposes of this section, "e-liquid" shall have the same meaning as 23 provided by paragraph (e) of subdivision one of section thirteen hundred 24 ninety-nine-cc of this article. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14062-01-9S. 7898 2 1 2. For the purposes of this section, "smart device" shall mean a 2 cellular radio telephone or other mobile voice communications handset 3 device that includes the following features: 4 (a) utilizes a mobile operating system; 5 (b) possesses the capability to utilize mobile software applications, 6 access and browse the internet, utilize text messaging, utilize digital 7 voice service, and send and receive email; 8 (c) has wireless network connectivity; and 9 (d) is capable of operating on a long-term evolution network or 10 successor wireless data network communication standards. 11 3. Within one hundred twenty days of the effective date of this 12 section, the commissioner shall: 13 (a) cause to be created a webpage on the department's internet website 14 which lists all e-liquid manufacturers who are in compliance with both 15 federal and state regulations; and 16 (b) create and make available to manufacturers of e-liquids a code 17 which, when scanned with a smart device, shall open on such device the 18 internet webpage created pursuant to paragraph (a) of this subdivision. 19 4. Upon completion of the requirements of subdivision three of this 20 section, the commissioner shall notify sellers of e-liquids of such 21 completion, and of the obligations of sellers of e-liquids provided by 22 section three hundred ninety-nine-gg of the general business law. 23 § 3. Section 1181 of the tax law, as added by section 1 of part UU of 24 chapter 59 of the laws of 2019, is amended to read as follows: 25 § 1181. Imposition of Tax. In addition to any other tax imposed by 26 this chapter or other law, there is hereby imposed a tax of [twenty] 27 forty-one percent on receipts from the retail sale of vapor products 28 sold in this state. The tax is imposed on the purchaser and collected by 29 the vapor products dealer as defined in subdivision (b) of section elev- 30 en hundred eighty of this article, in trust for and on account of the 31 state. 32 § 4. Section 1186 of the tax law, as added by section 1 of part UU of 33 chapter 59 of the laws of 2019, is amended to read as follows: 34 § 1186. Deposit and disposition of revenue. The taxes, interest, and 35 penalties imposed by this article and collected or received by the 36 commissioner shall be deposited daily with such responsible banks, bank- 37 ing houses or trust companies, as may be designated by the comptroller, 38 to the credit of the comptroller, with twenty-one percent of such reven- 39 ues deposited in the tobacco and vaping cessation fund established by 40 section ninety-seven-bbbbb of the state finance law to be distributed by 41 the commissioner of health in accordance with such section, and the 42 remaining amount being deposited in trust for the tobacco control and 43 insurance initiatives pool established by section ninety-two-dd of the 44 state finance law and distributed by the commissioner of health in 45 accordance with section twenty-eight hundred seven-v of the public 46 health law. Such deposits will be kept separate and apart from all other 47 money in the possession of the comptroller. The comptroller shall 48 require adequate security from all such depositories. Of the total 49 revenue collected or received under this article, the comptroller shall 50 retain such amount as the commissioner may determine to be necessary for 51 refunds under this article. Provided, however that the commissioner is 52 authorized and directed to deduct from the amounts he or she receives 53 from the registration fees under section eleven hundred eighty-three of 54 this article, before deposit into the tobacco control and insurance 55 initiatives pool, a reasonable amount necessary to effectuate refunds of 56 appropriations of the department to reimburse the department for theS. 7898 3 1 costs incurred to administer, collect and distribute the taxes imposed 2 by this article. 3 § 5. The state finance law is amended by adding a new section 97-bbbbb 4 to read as follows: 5 § 97-bbbbb. Tobacco and vaping cessation fund. 1. There is hereby 6 established in the joint custody of the state comptroller and the 7 commissioner of taxation and finance a fund to be known as the "tobacco 8 and vaping cessation fund". 9 2. Such fund shall consist of all moneys required to be deposited in 10 the tobacco and vaping cessation fund pursuant to the provisions of 11 section eleven hundred eighty-six of the tax law, and the amounts of 12 moneys received and deposited into the fund from grants, gifts and 13 bequests during the preceding calendar year, as certified by the comp- 14 troller. Nothing contained herein shall prevent the state from receiving 15 grants, gifts or bequests for the purposes of the fund as defined in 16 this section and depositing them into the fund according to law. 17 3. The moneys in such fund shall be kept separate and shall not be 18 commingled with any other moneys in the custody of the comptroller. 19 4. On or before the first day of February each year, the comptroller 20 shall certify to the governor, the temporary president of the senate, 21 the speaker of the assembly, the chair of the senate finance committee 22 and the chair of the assembly ways and means committee, the amount of 23 moneys deposited in the tobacco and vaping cessation fund during the 24 preceding calendar year as the result of revenue derived pursuant to 25 section eleven hundred eighty-one of the tax law, and from grants, gifts 26 and bequests. 27 5. On or before the first day of February each year, commencing with 28 the first day of February one year after the effective date of this 29 section, the commissioner of health shall provide a written report to 30 the temporary president of the senate, the speaker of the assembly, the 31 chair of the senate finance committee, the chair of the assembly ways 32 and means committee, the chair of the senate committee on health, the 33 chair of the assembly health committee, the state comptroller and the 34 public. Such report shall include how the moneys of the fund were 35 utilized during the preceding calendar year, and shall include: 36 (i) the amount of moneys disbursed from the fund; 37 (ii) recipients of disbursements from the fund; 38 (iii) the amount disbursed to each recipient; 39 (iv) the purposes for which such disbursements were granted; and 40 (v) a summary financial plan for such moneys which shall include esti- 41 mates of all receipts and all disbursements for the current and succeed- 42 ing fiscal year, along with the actual results from the prior fiscal 43 year. 44 6. Moneys of the fund shall be expended only for tobacco and vaping 45 cessation research and educational projects or programs designed to 46 encourage cessation of tobacco and vaping product use. As used in this 47 section, "tobacco and vaping cessation research and educational 48 projects" means scientific research or educational projects which, 49 pursuant to section twenty-four hundred eleven of the public health law, 50 are approved by the department of health, upon the recommendation of the 51 health research science board. As used in this section, "programs 52 designed to encourage cessation of tobacco and vaping product use" shall 53 mean programs designed to help users of tobacco or vaping products cease 54 their use of such products, including but not limited to the tobacco use 55 prevention and control program established pursuant to section thirteen 56 hundred ninety-nine-ii of the public health law.S. 7898 4 1 7. Moneys shall be payable from the fund on the audit and warrant of 2 the comptroller on vouchers approved and certified by the commissioner 3 of health. 4 8. To the extent practicable, the commissioner of health shall ensure 5 that all moneys received during a fiscal year are expended prior to the 6 end of that fiscal year. 7 § 6. This act shall take effect immediately; provided however that 8 sections three, four and five of this act shall take effect on the same 9 date and in the same manner as section 1 of part UU of chapter 59 of the 10 laws of 2019, takes effect. Effective immediately, the addition, amend- 11 ment and/or repeal of any rule or regulation necessary for the implemen- 12 tation of this act on its effective date are authorized to be made and 13 completed on or before such effective date.
