BILL NUMBER:  S6325

 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
illegal 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
individuals 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
cigarettes sold in the State, fund terrorists, organized crime and
gang activities, force other New York taxpayers to make up billions in
revenues, 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
exacerbate 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.