S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8232
 
                             I N  S E N A T E
 
                              April 20, 2018
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to amend the tax law and the state finance law,  in  relation  to
   the  creation  of  the  cigarette  tax enforcement fund; and making an
   appropriation therefor
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 1 of section 472 of the tax law, as amended by
 chapter 629 of the laws of 1996, and as further amended by  section  104
 of  part  A  of  chapter  62  of the laws of 2011, is amended to read as
 follows:
   1. The commissioner shall prescribe, prepare  and  furnish  stamps  of
 such denominations and quantities as may be necessary for the payment of
 the  tax  on cigarettes imposed by this article, PLUS THE PAYMENT BY THE
 AGENT OF A CONCURRENT EXPENSE ALLOWANCE FOR THE CIGARETTE  TAX  ENFORCE-
 MENT  FUND  ESTABLISHED  PURSUANT TO SECTION NINETY-NINE-EE OF THE STATE
 FINANCE LAW OF FOUR CENTS PER STAMP WHICH SHALL BE DEPOSITED PURSUANT TO
 SUBDIVISION (C) OF SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE,  and
 may from time to time and as often as he deems advisable provide for the
 issuance  and exclusive use of stamps of a new design and forbid the use
 of stamps of any other  design,  in  the  manner  and  with  the  effect
 provided  in  section  two  hundred  seventy-four  of  this chapter. The
 commissioner shall make provisions for the sale of such stamps  at  such
 places and at such times as he may deem necessary and may license agents
 for  such  purpose.  The commissioner may license dealers in cigarettes,
 who maintain separate warehousing facilities for the purpose of  receiv-
 ing  and distributing cigarettes and conducting their business, who have
 received commitments from at least  two  cigarette  manufacturers  whose
 aggregate  market  share is at least forty percent of the New York state
 cigarette market, and importers, exporters and  manufacturers  of  ciga-
 rettes,  and  other persons within or without the state as agents to buy
 or affix stamps to be used in paying the  tax  herein  imposed,  but  an
 agent  shall  at  all  times have the right to appoint the person in his
 employ who is to affix the stamps to any cigarettes  under  the  agent's
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD08857-02-8

 S. 8232                             2
 
 control.  The  fee  for  filing  such application for an agent's license
 shall be one thousand five hundred dollars, unless  such  fee  has  been
 paid  during  the  preceding twelve months, in which case, the fee for a
 new  license  shall  be  one  thousand dollars. All of the provisions of
 section four hundred eighty OF THIS ARTICLE relating to wholesale  deal-
 ers'  licenses,  including  the  procedure  for  suspension, revocation,
 refusal to license and for hearings, except for paragraphs (c)  and  (g)
 of  subdivision  one  of  such  section,  shall be applicable to agents'
 licenses applied for or granted pursuant to this  section,  as  if  such
 provisions  had  been  set  forth  in  full  in this subdivision and had
 expressly referred to the applicant for, or the holder  of,  an  agent's
 license.  Whenever  the  commissioner shall sell and deliver to any such
 agent any such stamps, such  agent  shall  be  entitled  to  receive  as
 compensation  for  his services and expenses as such agent in selling or
 affixing such stamps, and to retain out of the moneys to be paid by  him
 for such stamps, a commission on the par value thereof. The commissioner
 is hereby authorized to prescribe a schedule of commissions, not exceed-
 ing  five  per  centum,  allowable to such agent for buying and affixing
 such stamps. Such schedule shall be uniform with respect to the  differ-
 ent  types  of stamps used, and may be on a graduated scale with respect
 to the  number  of  stamps  purchased.  The  commissioner  may,  in  his
 discretion,  permit  an  agent to pay for such stamps within thirty days
 after the date of purchase and may require any such agent to  file  with
 the  department  [of  taxation  and  finance]  a bond issued by a surety
 company approved by the  superintendent  of  financial  services  as  to
 solvency  and  responsibility and authorized to transact business in the
 state or other security acceptable to the commissioner, in  such  amount
 as  the commissioner may fix, to secure the payment of any sums due from
 such agent pursuant to this article.  If  securities  are  deposited  as
 security  under  this  subdivision, such securities shall be kept in the
 custody of the commissioner and may be sold by the  commissioner  if  it
 becomes  necessary  so  to do in order to recover any sums due from such
 agent pursuant to this article, but no such  sale  shall  be  had  until
 after  such agent shall have had opportunity to litigate the validity of
 any tax if it elects so to do. Upon any such sale, the surplus, if  any,
 above the sums due under this article shall be returned to such agent.
   § 2. Section 482 of the tax law is amended by adding a new subdivision
 (c) to read as follows:
   (C)  FROM  THE AMOUNTS RECEIVED PURSUANT TO SUBDIVISION ONE OF SECTION
 FOUR HUNDRED SEVENTY-TWO OF THIS ARTICLE, THE COMMISSIONER SHALL DEPOSIT
 IN THE CIGARETTE TAX ENFORCEMENT FUND ESTABLISHED  PURSUANT  TO  SECTION
 NINETY-NINE-EE OF THE STATE FINANCE LAW THE CONCURRENT EXPENSE ALLOWANCE
 FOR THE CIGARETTE TAX ENFORCEMENT FUND OF FOUR CENTS PER STAMP.
   § 3. The state finance law is amended by adding a new section 99-ee to
 read as follows:
   § 99-EE. CIGARETTE TAX ENFORCEMENT FUND. 1. THERE IS HEREBY CREATED IN
 THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXA-
 TION AND FINANCE AN ACCOUNT OF THE MISCELLANEOUS SPECIAL REVENUE FUND TO
 BE KNOWN AS THE "CIGARETTE TAX ENFORCEMENT FUND".
   2.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 THE STATE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO  RECEIVE  FOR
 DEPOSIT  TO  THE  CREDIT  OF  THE  CIGARETTE TAX ENFORCEMENT FUND MONIES
 RECEIVED FROM THE COMMISSIONER OF TAXATION AND FINANCE FROM THE  CONCUR-
 RENT  EXPENSE ALLOWANCE PAID PURSUANT TO SUBDIVISION ONE OF SECTION FOUR
 HUNDRED SEVENTY-TWO OF THE TAX LAW, MONIES RECEIVED FROM THE COMMISSION-
 ER OF TAXATION AND FINANCE FROM THE SALE OF FORFEITED CIGARETTES AUTHOR-

 S. 8232                             3
 
 IZED PURSUANT TO SECTION EIGHTEEN HUNDRED FORTY-SIX OF THE TAX LAW,  AND
 OTHER  MONIES  APPROPRIATED,  CREDITED  OR  TRANSFERRED THERETO FROM ANY
 OTHER FUND OR SOURCE.
   3.  THE  PROCEEDS  OF THE CIGARETTE TAX ENFORCEMENT FUND SHALL BE USED
 SOLELY TO ENFORCE (I) THE COLLECTION OF THE  CIGARETTE  TAX  IMPOSED  BY
 ARTICLE  TWENTY OF THE TAX LAW OR (II) THE CIGARETTE MARKETING STANDARDS
 ACT, AS ESTABLISHED BY ARTICLE TWENTY-A OF THE TAX LAW.
   4. MONIES IN THE CIGARETTE TAX ENFORCEMENT FUND SHALL BE KEPT SEPARATE
 AND APART AND SHALL NOT BE COMMINGLED  WITH  ANY  OTHER  MONEYS  IN  THE
 CUSTODY  OF THE COMPTROLLER AND SHALL ONLY BE EXPENDED AS PROVIDED HERE-
 IN.
   5. MONIES OF THE FUND SHALL BE AVAILABLE TO THE COMMISSIONER OF  TAXA-
 TION AND FINANCE FOR PURPOSES OF CARRYING OUT THE PROVISIONS OF SUBDIVI-
 SION  (J)  OF SECTION EIGHTEEN HUNDRED FOURTEEN OF THE TAX LAW AND SHALL
 BE PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF THE  COMPTROLLER  ON
 VOUCHERS  CERTIFIED  OR  APPROVED  BY  THE  COMMISSIONER OF TAXATION AND
 FINANCE.
   6. IN THE MONTH IMMEDIATELY FOLLOWING THE MONTH IN WHICH  THE  BALANCE
 OF THE FUND EXCEEDS SIX MILLION FIVE HUNDRED THOUSAND DOLLARS, THE COMP-
 TROLLER SHALL, UPON RECEIPT OF A CERTIFICATE OF ALLOCATION ISSUED BY THE
 DIRECTOR  OF THE DIVISION OF THE BUDGET, TRANSFER SIX MILLION DOLLARS TO
 THE DIVISION OF STATE POLICE TO SUPPORT THE DIVISION'S CIGARETTE TAX, AS
 IMPOSED BY ARTICLE TWENTY OF THE TAX LAW, AND  THE  CIGARETTE  MARKETING
 STANDARDS  ACT,  AS  ESTABLISHED  BY  ARTICLE  TWENTY-A  OF THE TAX LAW,
 ENFORCEMENT ACTIVITIES. THESE FUNDS MAY BE  APPORTIONED  TO  EITHER  THE
 PATROL  ACTIVITIES  OR CRIMINAL INVESTIGATION ACTIVITIES PROGRAMS OF THE
 DIVISION OF STATE POLICE, MAY BE  TRANSFERRED  OR  SUBALLOCATED  TO  ANY
 OTHER  STATE  AGENCY OR PUBLIC AUTHORITY FOR THEIR COSTS ASSOCIATED WITH
 THE ENFORCEMENT OF THE CIGARETTE TAX OR THE CIGARETTE  MARKETING  STAND-
 ARDS  ACT,  AND  MAY BE USED TO CONTRACT WITH LOCAL ENFORCEMENT AGENCIES
 FOR CIGARETTE TAX AND/OR CIGARETTE MARKETING STANDARDS  ACT  ENFORCEMENT
 ACTIVITIES.
   §  4. Subdivisions (a), (b) and (c) of section 1846 of the tax law, as
 amended by chapter 556 of the laws of  2011,  are  amended  to  read  as
 follows:
   (a) Whenever a police officer designated in section 1.20 of the crimi-
 nal  procedure  law or a peace officer designated in subdivision four of
 section 2.10 of such law, acting pursuant to his or her special  duties,
 shall  discover any cigarettes subject to tax provided by article twenty
 of this chapter or by chapter thirteen of title eleven of  the  adminis-
 trative  code  of  the  city of New York, and upon which the tax has not
 been paid or the stamps not affixed as required by such article or  such
 chapter  thirteen, they are hereby authorized and empowered forthwith to
 seize and take possession of such cigarettes, together with any  vending
 machine  or receptacle in which they are held for sale. Such cigarettes,
 vending machine or receptacle seized by a police officer or  such  peace
 officer  shall  be  turned  over  to the commissioner. Such seized ciga-
 rettes, vending machine or receptacle, not including money contained  in
 such vending machine or receptacle, shall be forfeited to the state. The
 commissioner  may, within a reasonable time thereafter, upon publication
 of a notice to such effect for at least five successive days, before the
 day of sale, in a newspaper published or circulated in the county  where
 the  seizure  was made, sell such forfeited vending machines or recepta-
 cles at public sale and pay the proceeds into the state treasury to  the
 credit  of the general fund. Notwithstanding any other provision of this
 section, the commissioner may enter into an agreement with any  city  of

 S. 8232                             4
 
 this  state  which is authorized to impose a tax similar to that imposed
 by article twenty of this chapter to provide for the disposition between
 the state and any such city of the proceeds from any  such  sale.    All
 cigarettes  forfeited  to  the state [shall be destroyed or used for law
 enforcement purposes], except [that] cigarettes  that  violate,  or  are
 suspected of violating, federal trademark laws or import laws shall [not
 be used for law enforcement purposes. If the commissioner determines the
 cigarettes  may not be used for law enforcement purposes], UPON PUBLICA-
 TION IN THE STATE REGISTRY, BE AVAILABLE FOR INSPECTION BY THE  MANUFAC-
 TURER WHO SHALL DETERMINE WHETHER SUCH CIGARETTES ARE OF SALEABLE QUALI-
 TY  AND SUCH CIGARETTES SHALL BE OFFERED FOR SALE TO SUCH MANUFACTURERS.
 ANY CIGARETTES THAT ARE EITHER NOT INSPECTED BY THE MANUFACTURER  WITHIN
 FIVE  DAYS OF THE PUBLICATION IN THE STATE REGISTRY OR ARE NOT PURCHASED
 BY THE MANUFACTURER AFTER BEING DETERMINED TO  BE  OF  SALEABLE  QUALITY
 SHALL,  UPON  PUBLICATION  IN THE STATE REGISTRY, BE OFFERED FOR SALE TO
 AGENTS, AS SUCH TERM IS DEFINED IN SUBDIVISION ELEVEN  OF  SECTION  FOUR
 HUNDRED  SEVENTY  OF  THIS  CHAPTER, TO A PRICE EQUALING TWO DOLLARS AND
 TWENTY CENTS PER PACK OF TWENTY CIGARETTES. ANY SUCH CIGARETTES THAT ARE
 EITHER NOT SOLD WITHIN A REASONABLE PERIOD OF TIME AFTER  BEING  OFFERED
 FOR  SALE TO AGENTS OR DEEMED UNSALEABLE BY THE MANUFACTURER SHALL, UPON
 PUBLICATION IN THE STATE REGISTRY, BE DESTROYED OR USED FOR LAW ENFORCE-
 MENT PURPOSES. IF THE COMMISSIONER DETERMINES THE CIGARETTES MAY NOT  BE
 OFFERED  FOR  SALE  TO  THE  MANUFACTURERS  OR  AGENTS,  OR USED FOR LAW
 ENFORCEMENT PURPOSES BECAUSE SUCH CIGARETTES VIOLATE, OR  ARE  SUSPECTED
 OF  VIOLATING,  FEDERAL  TRADEMARK LAWS OR IMPORT LAWS, the commissioner
 must, within a reasonable time after the forfeiture of such  cigarettes,
 upon  publication  in  the  state registry, destroy such forfeited ciga-
 rettes. The commissioner may, prior to any  destruction  of  cigarettes,
 permit  the  true  holder  of  the trademark rights in the cigarettes to
 inspect such forfeited cigarettes in order to  assist  in  any  investi-
 gation  regarding  such cigarettes.  THE REVENUE FROM ALL SALES OF CIGA-
 RETTES MADE PURSUANT TO THIS SUBDIVISION SHALL BE DEPOSITED IN THE CIGA-
 RETTE TAX ENFORCEMENT FUND, AS ESTABLISHED IN SECTION NINETY-NINE-EE  OF
 THE STATE FINANCE LAW.
   (b)  [In  the alternative] PRIOR TO MAKING FORFEITED CIGARETTES AVAIL-
 ABLE FOR INSPECTION OR PURCHASE BY THE MANUFACTURER, OFFERING SUCH CIGA-
 RETTES FOR SALE TO AGENTS, OR USING SUCH CIGARETTES FOR LAW  ENFORCEMENT
 PURPOSES  IN  ACCORDANCE  WITH  SUBDIVISION (A) OF THIS SECTION, the tax
 commission, on reasonable notice by mail or otherwise,  may  permit  the
 person  from  whom  said cigarettes were seized to redeem the said ciga-
 rettes, and any vending machine or receptacle seized therewith,  by  the
 payment of the tax due, plus a penalty of fifty per centum thereof, plus
 interest  on  the  amount  of tax due for each month or fraction thereof
 after such tax became due (determined without regard to any extension of
 time for filing or paying) at the  rate  applicable  under  subparagraph
 (ii)  of paragraph (a) of subdivision one of section four hundred eight-
 y-one of this chapter and the costs incurred in such  proceeding,  which
 total  payment  shall  not be less than five dollars; provided, however,
 that such seizure and sale or redemption shall not be deemed to  relieve
 any  person  from  fine or imprisonment provided for in this article for
 violation of any provision of article twenty of this chapter.
   (c) [In the alternative] AFTER MAKING FORFEITED  CIGARETTES  AVAILABLE
 FOR  INSPECTION  OR PURCHASE BY THE MANUFACTURER AND OFFERING SUCH CIGA-
 RETTES FOR SALE TO AGENTS IN ACCORDANCE WITH  SUBDIVISION  (A)  OF  THIS
 SECTION,  the tax commission may dispose of any cigarettes seized pursu-
 ant to this section, except those that  violate,  or  are  suspected  of

 S. 8232                             5
 
 violating,  federal  trademark laws or import laws, by transferring them
 to the department of corrections and community supervision for  sale  to
 or use by inmates in such institutions.
   §  5.  Subdivision  (b)  of  section 483 of the tax law, as amended by
 chapter 860 of the laws of 1987, subparagraph (A)  of  paragraph  1  and
 subparagraph (B) of paragraph 3 as amended by chapter 744 of the laws of
 1990,  subparagraph  (B)  of  paragraph 1 as amended by chapter 1 of the
 laws of 1999 and subparagraph (B) of paragraph 2 as amended by chapter 4
 of the laws of 1988, is amended to read as follows:
   (b) 1. (A) The term "cost of the agent" shall mean the basic  cost  of
 cigarettes  plus the cost of doing business by the agent as evidenced by
 the accounting standards and methods regularly employed by said agent in
 his determination of costs for the purpose of federal income tax report-
 ing for the total operation of  his  establishment,  and  must  include,
 without  limitation,  labor,  including salaries of executives and offi-
 cers, rent,  depreciation,  selling  costs,  maintenance  of  equipment,
 delivery  costs,  interest payable, all types of licenses, taxes, insur-
 ance and advertising expressed as a percentage and applied to the  basic
 cost  of  cigarettes.  Any  fractional part of a cent in the cost to the
 agent per carton of cigarettes shall be rounded off to the  next  higher
 cent.  In  the  case  of  sales  at retail by an agent, the "cost of the
 agent" shall be the same as the "cost of the retail dealer". In the case
 of sales of cigarettes to a chain store having fifteen  or  more  retail
 outlets,  excluding  vending machine operators, which are delivered to a
 central warehouse owned and operated by such chain store and  which  are
 delivered  to  its  retail  outlets by the chain store, the "cost of the
 agent" shall be presumed to be the basic cost of cigarettes. There shall
 be determined a separate cost of the agent for sales to wholesale  deal-
 ers and for sales to retail dealers.
   (B) In the absence of the filing with the commissioner of satisfactory
 proof  of  a lesser cost of doing business of the agent making the sale,
 the cost of doing business by the agent shall be presumed to be  [seven-
 eighths  of  one] TWO AND ONE-QUARTER percent of the basic cost of ciga-
 rettes for sales to wholesale dealers plus one cent per package  of  ten
 cigarettes,  two  cents per package of twenty cigarettes and in the case
 of a package containing more than twenty cigarettes, two cents and  one-
 half  of a cent for each five cigarettes in excess of twenty cigarettes,
 [one and one-half] FIVE AND THREE-QUARTER percent of the basic  cost  of
 cigarettes  for  sales  to chain stores plus one cent per package of ten
 cigarettes, two cents per package of twenty cigarettes and in  the  case
 of  a package containing more than twenty cigarettes, two cents and one-
 half of a cent for each five cigarettes in excess of  twenty  cigarettes
 and  [three  and  seven-eighths]  FIVE  AND THREE-QUARTER percent of the
 basic cost of cigarettes with respect to sales to  retail  dealers  plus
 one  cent per package of ten cigarettes, two cents per package of twenty
 cigarettes and in the case of a  package  containing  more  than  twenty
 cigarettes, two cents and one-half of a cent for each five cigarettes in
 excess  of  twenty  cigarettes and the foregoing cents per pack shall be
 included in the "cost of doing business by the  agent"  referred  to  in
 paragraphs two and three of this subdivision.
   2.  (A)  The  term "cost of the wholesale dealer" shall mean the basic
 cost of cigarettes plus the cost of  doing  business  by  the  wholesale
 dealer  as  evidenced  by the accounting standards and methods regularly
 employed by said wholesale dealer in his determination of costs for  the
 purpose  of  federal income tax reporting for the total operation of his
 establishment, and must include, without  limitation,  labor,  including

 S. 8232                             6
 
 salaries  of executives and officers, rent, depreciation, selling costs,
 maintenance of equipment, delivery costs, interest payable, all types of
 licenses, taxes, insurance and advertising expressed as a percentage and
 applied to the basic cost of cigarettes, plus the cost of doing business
 by  the  agent with respect to sales of cigarettes to wholesale dealers.
 Any fractional part of a cent in the cost to the  wholesale  dealer  per
 carton  of  cigarettes  shall be rounded off to the next higher cent. In
 the case of sales at retail by a wholesale  dealer,  the  "cost  of  the
 wholesale  dealer" shall be the same as the "cost of the retail dealer".
 There shall be determined a separate cost of the  wholesale  dealer  for
 sales to chain stores and for sales to retail dealers.
   (B)  In the absence of the filing with the tax commission of satisfac-
 tory proof of a lesser cost of doing business of  the  wholesale  dealer
 making the sale, the cost of doing business by the wholesale dealer with
 respect  to  sales  to  retail dealers shall be presumed to be three AND
 ONE-HALF per centum of the basic cost of cigarettes, and with respect to
 sales to chain stores, [five-eighths of one] THREE AND ONE-HALF  percent
 of the basic cost of cigarettes.
   3.  (A) The term "cost of the retail dealer" shall mean the basic cost
 of cigarettes plus the cost of doing business by the  retail  dealer  as
 evidenced  by the accounting standards and methods regularly employed by
 said retail dealer in his determination of  costs  for  the  purpose  of
 federal  income  tax reporting for the total operation of his establish-
 ment, and shall include, without limitation, labor,  including  salaries
 of  executives  and officers, rent, depreciation, selling costs, mainte-
 nance of equipment, delivery  costs,  interest  payable,  all  types  of
 licenses, taxes, insurance and advertising expressed as a percentage and
 applied to the basic cost of cigarettes, plus the cost of doing business
 by  the agent with respect to sales of cigarettes to retail dealers. Any
 fractional part of a cent in the cost to the retail dealer  per  package
 or per carton shall be rounded off to the next higher cent.
   (B) In the absence of the filing with the commissioner of taxation and
 finance  of satisfactory proof of a lesser cost of doing business by the
 retail dealer making the sale, the cost of doing business by the  retail
 dealer  shall be presumed to be [seven] TEN per centum of the sum of the
 basic cost of cigarettes plus the cost of doing business  by  the  agent
 with respect to cigarettes sold to retail dealers.
   §  6.  Section 1814 of the tax law is amended by adding a new subdivi-
 sion (j) to read as follows:
   (J) (1) NOTWITHSTANDING ANY PROVISION OF LAW, RULE  OR  REGULATION  TO
 THE  CONTRARY, THE COMMISSIONER SHALL ESTABLISH A PROGRAM TO ALLOW INDI-
 VIDUALS TO SUBMIT A SWORN  STATEMENT  AFFIRMING  THE  OBSERVATION  OF  A
 VIOLATION OF ARTICLE TWENTY  OF THIS CHAPTER AND, WHERE THE COMMISSIONER
 DEEMS  IT  APPROPRIATE, ALLOW FOR A REWARD FOR ANY SUCH SWORN STATEMENT.
 WHERE ENFORCEMENT ACTION IS TAKEN PURSUANT TO THIS  ARTICLE  OR  ARTICLE
 TWENTY OF THIS CHAPTER BASED UPON A SWORN STATEMENT BY ONE OR MORE INDI-
 VIDUALS AND WHERE THE COMMISSIONER DETERMINES, IN THE EXERCISE OF HIS OR
 HER  DISCRETION,  THAT SUCH SWORN STATEMENT, EITHER ALONE OR IN CONJUNC-
 TION WITH THE TESTIMONY OF THE PERSON SUBMITTING  SUCH  SWORN  STATEMENT
 CONTRIBUTES  TO  THE  IMPOSITION OF A CIVIL OR CRIMINAL PENALTY UPON ANY
 PERSON FOR A VIOLATION OF THIS ARTICLE, OR ARTICLE TWENTY OF THIS  CHAP-
 TER,  THE  COMMISSIONER  SHALL  OFFER  AS A REWARD TO SUCH INDIVIDUAL OR
 INDIVIDUALS AN AMOUNT THAT, IN THE AGGREGATE, IS FIVE DOLLARS. NO  PEACE
 OFFICER,  POLICE  OFFICER OR EMPLOYEE OF THE DEPARTMENT, EMPLOYEE OF ANY
 COMPANY UNDER CONTRACT WITH THE DEPARTMENT, OR EMPLOYEE OF  ANY  GOVERN-
 MENTAL  ENTITY  THAT,  IN  CONJUNCTION  WITH  THE  DEPARTMENT,  CONDUCTS

 S. 8232                             7
 
 ENFORCEMENT ACTIVITY RELATING TO A VIOLATION OF THIS ARTICLE OR  ARTICLE
 TWENTY  OF  THIS CHAPTER, SHALL BE ENTITLED TO OBTAIN THE BENEFIT OF ANY
 SUCH REWARD WHEN ACTING IN THE DISCHARGE OF HIS OR HER OFFICIAL DUTIES.
   (2)  ALL  REWARDS PAID PURSUANT TO THIS SECTION SHALL BE PAID FROM THE
 CIGARETTE TAX ENFORCEMENT FUND, AS ESTABLISHED IN SECTION NINETY-NINE-EE
 OF THE STATE FINANCE LAW.
   § 7. Beginning the month immediately following the month in which  the
 cigarette  tax  enforcement fund, as established in section 99-ee of the
 state finance law, is established, there is hereby appropriated  to  the
 division  of state police the amount of six million dollars ($6,000,000)
 from the cigarette tax enforcement fund to  support  cigarette  tax,  as
 imposed  by article 20 of the tax law, and cigarette marketing standards
 act, as established by article 20-A of the tax law,  enforcement  activ-
 ities. This appropriation may be apportioned to either the patrol activ-
 ities  or  criminal investigation activities programs of the division of
 state police, may be transferred or  suballocated  to  any  other  state
 agency  or public authority for their costs associated with the enforce-
 ment of the cigarette tax or the cigarette marketing standards act,  and
 may  be  used  to contract with local enforcement agencies for cigarette
 tax and/or cigarette marketing standards act enforcement activities.  No
 monies  shall  be available from this appropriation absent a certificate
 of allocation from the director of the budget.
   § 8. This act shall take effect on the first  day  of  the  sales  tax
 quarterly period, as described in subdivision (b) of section 1136 of the
 tax  law, next succeeding the thirtieth day after it shall have become a
 law and shall apply  in  accordance  with  the  applicable  transitional
 provisions of sections 1106 and 1217 of the tax law.