S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10408
 
                           I N  A S S E M B L Y
 
                               May 13, 2022
                                ___________
 
 Introduced by COMMITTEE ON RULES -- (at request of M. of A. K. Brown) --
   read  once  and referred to the Committee on Corporations, Authorities
   and Commissions
 
 AN ACT in relation to constituting chapter 61 of the consolidated  laws,
   in  relation  to establishing the tobacco, nicotine and vaping law; to
   amend the executive law, the public health law, the cannabis law,  the
   alcoholic  beverage  control law, the mental hygiene law, the tax law,
   the general business law and the public officers law, in  relation  to
   establishing  the  adult-use substances authority; to amend the public
   health law, in relation to establishing tobacco use and vaping  aware-
   ness  and prevention programs; and to repeal certain provisions of the
   public health law relating to  the  regulation  of  tobacco  products,
   herbal  cigarettes,  smoking paraphernalia, distribution to minors and
   tobacco escrow funds
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Chapter 61 of the consolidated laws is enacted, to read as
 follows:
 
                    CHAPTER 61 OF THE CONSOLIDATED LAWS
                     TOBACCO, NICOTINE AND VAPING LAW

                                 ARTICLE 1
                         SHORT TITLE; DEFINITIONS
 Section 1. Short title.
         2. Definitions.
   Section 1. Short title. This chapter shall be known and may  be  cited
 and referred to as the "tobacco, nicotine and vaping law".
   §  2.  Definitions.  Whenever  used  in this chapter, unless otherwise
 expressly stated or unless the context  or  subject  matter  requires  a
 different  meaning,  the  following  terms shall have the representative
 meanings hereinafter set forth or indicated:
   1. "Bar" means any area, including outdoor seating areas,  devoted  to
 the  sale and service of alcoholic beverages for on-premises consumption
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11873-02-1
 A. 10408                            2
 
 and where the service of food is only incidental to the  consumption  of
 such beverages.
   2.  "Employer"  means  any  person,  partnership, association, limited
 liability company, corporation or nonprofit entity which employs one  or
 more persons, including the legislative, executive and judicial branches
 of state government and any political subdivision of the state.
   3.  "Food  service  establishment"  means  any area, including outdoor
 seating areas, or portion thereof in which the business is the  sale  of
 food for on-premises consumption.
   4.  "Membership  association"  means a not-for-profit entity which has
 been created or organized for a charitable, philanthropic,  educational,
 political, social or other similar purpose.
   5.  "Place  of  employment"  means  any indoor area or portion thereof
 under the control of an employer in  which  employees  of  the  employer
 perform  services,  and  shall  include, but not be limited to, offices,
 school  grounds,  retail  stores,  banquet  facilities,  theaters,  food
 stores,  banks,  financial institutions, factories, warehouses, employee
 cafeterias,  lounges,  auditoriums,  gymnasiums,  restrooms,  elevators,
 hallways,  museums,  libraries, bowling establishments, employee medical
 facilities, rooms or areas containing photocopying  equipment  or  other
 office equipment used in common, and company vehicles.
   6.  "School  grounds"  means  any building, structure, and surrounding
 outdoor grounds contained within a public or private pre-school, nursery
 school, elementary or secondary school's legally defined property bound-
 aries as registered in a county clerk's office, and any vehicles used to
 transport children or school personnel.
   7. "Retail tobacco business"  means  a  sole  proprietorship,  limited
 liability company, corporation, partnership or other enterprise in which
 the primary activity is the retail sale of tobacco products and accesso-
 ries, and in which the sale of other products is merely incidental.
   8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
 any other matter or substance which  contains  tobacco  or  cannabis  as
 defined  in  section  222.00  of  the  penal law, or cannabinoid hemp as
 defined in section three of the cannabis law.
   9. "Vaping" means the use of an electronic cigarette.
   10. "Retail electronic cigarette store" means a retail  store  devoted
 primarily to the sale of electronic cigarettes, and in which the sale of
 other  products  is  merely  incidental. The sale of such other products
 shall be considered incidental if such sales generate less than  twenty-
 five percent of the total annual gross sales.
   11.  "Enforcement officer" means the enforcement officer designated to
 enforce the provisions of this chapter and hold hearings pursuant there-
 to; provided that in a city with a population of more than  one  million
 it  shall  also  mean  an officer or employee or any agency of such city
 that is authorized to enforce any local law of such city related to  the
 regulation of the sale of tobacco products to minors.
   12.  "Person" means a person, firm, company, corporation, partnership,
 sole proprietor, limited partnership or association.
   13. "Private club" means an organization with no more than  an  insig-
 nificant  portion of its membership comprised of people under the age of
 twenty-one years that regularly receives dues and/or payments  from  its
 members for the use of space, facilities and services.
   14.  "Tobacco products" means one or more cigarettes or cigars, bidis,
 chewing tobacco, powdered tobacco, nicotine water or any  other  tobacco
 products.
 A. 10408                            3
 
   15.  "Herbal cigarette" means any product made primarily of an herb or
 combination of herbs, and intended to be smoked in any  of  the  methods
 that  tobacco  is  smoked, including but not limited to, as a cigarette,
 cigar or pipe filler.
   16.  "Bidis"  means  a  product  containing tobacco that is wrapped in
 temburni leaf (diospyros melanoxylon) or tendra leaf  (diospyros  excul-
 pra), or any other product offered to consumers as "beedies" or "bidis".
   17.  "Tobacco  business"  means  a  sole  proprietorship, corporation,
 limited liability company, partnership or other enterprise in which  the
 primary  activity  is  the  sale,  manufacture  or promotion of tobacco,
 tobacco products and accessories, either at wholesale or retail, and  in
 which  the  sale,  manufacture  or promotion of other products is merely
 incidental.
   18. "Factory" means any  mill  or  other  manufacturing  establishment
 where  one  or  more  persons  are  employed  in manufacturing including
 making, altering, repairing, finishing, bottling, canning,  cleaning  or
 laundering any article or thing.
   19.  "Gutka"  means a product containing lime paste, spices, areca and
 tobacco.
   20. "Nicotine water" means bottled water that is laced with nicotine.
   21. "Shisha" means any product made  primarily  of  tobacco  or  other
 leaf,  or  any combination thereof, smoked or intended to be smoked in a
 hookah or water pipe.
   22. "Electronic cigarette" or "e-cigarette" means an electronic device
 that delivers vapor which is inhaled by an individual  user,  and  shall
 include any refill, cartridge and any other component of such a device.
   23.  "Price  reduction  instrument" means any coupon, voucher, rebate,
 card, paper, note, form,  statement,  ticket,  image,  or  other  issue,
 whether  in  paper,  digital,  or  any  other  form, used for commercial
 purposes to receive an article, product, service, or accommodation with-
 out charge or at a discounted price.
   24. "Listed or non-discounted price" means the price listed for  ciga-
 rettes,  tobacco  products,  or  vapor  products  intended or reasonably
 expected to be used with or for the consumption of  nicotine,  on  their
 packages or any related shelving, posting, advertising or display at the
 location  where  the  cigarettes,  tobacco  products,  or vapor products
 intended or reasonably expected to be used with or for  the  consumption
 of  nicotine,  are  sold  or  offered for sale, including all applicable
 taxes.
   25. "Retail dealer" means a person licensed  by  the  commissioner  of
 taxation  and  finance  to  sell  cigarettes, tobacco products, or vapor
 products in this state.
   26. "Vapor products" means any noncombustible liquid or  gel,  regard-
 less  of  the  presence of nicotine therein, that is manufactured into a
 finished product for use  in  an  electronic  cigarette,  including  any
 device  that contains such noncombustible liquid or gel. "Vapor product"
 shall not include any device, or any component thereof,  that  does  not
 contain  such  noncombustible  liquid or gel, or any product approved by
 the United States food and drug administration  as  a  drug  or  medical
 device,  or manufactured and dispensed pursuant to title five-A of arti-
 cle thirty-three of the public health law.
   27. "Vapor products dealer" means a person licensed by the commission-
 er of taxation and finance to sell vapor products in this state.
   28. "Smoking paraphernalia" means any pipe, water pipe, hookah,  roll-
 ing  papers, electronic cigarette, vaporizer or any other device, equip-
 ment or apparatus designed for the inhalation of tobacco or nicotine.
 A. 10408                            4
 
                                 ARTICLE 2
                  TOBACCO, NICOTINE AND VAPING AUTHORITY
 Section 10. Tobacco, nicotine and vaping authority.
         11. Appointment of authority.
         12. Expenses.
         13. Removal.
         14. Vacancies; quorum.
         15. Officers; employees; offices.
         16. Disqualification of members and employees of authority.
         17. Powers and duties of the authority.
         18. Powers and duties of the chairperson.
         19. Oath of office.
   §  10.  Tobacco, nicotine and vaping authority. There is hereby estab-
 lished, within the adult-use substances authority, the tobacco, nicotine
 and vaping authority, which shall  have  jurisdiction  to  exercise  the
 powers and duties provided by this chapter. The authority shall exercise
 its  powers  by  and through a chairperson. The terms "tobacco, nicotine
 and vaping authority" or "authority", wherever occurring in any  of  the
 provisions  of this chapter shall hereafter mean and refer to the tobac-
 co, nicotine and vaping authority provided for in this section.
   § 11. Appointment of authority. 1. The chairperson shall be  nominated
 by  the  governor  with  the  advice and consent of the senate, with one
 vote, and four other voting authority members as provided for in  subdi-
 vision two of this section.
   2.  In addition to the chairperson, the governor shall have two direct
 appointments to the board, and the temporary president of the senate and
 the speaker of the assembly shall each have one  direct  appointment  to
 the  authority.  Appointments  shall  be for a term of three years each.
 Board members shall be citizens and permanent residents of  this  state.
 The  chairperson  and  the  remaining  members  of  such authority shall
 continue to serve as chairperson and members of the authority until  the
 expiration  of  the respective terms for which they were appointed. Upon
 the expiration of such respective terms, the successors of  such  chair-
 person and members shall be appointed to serve for a term of three years
 each  and  until their successors have been appointed and qualified. The
 members, except for the chairperson, shall when performing the  work  of
 the authority, be compensated at a rate of two hundred sixty dollars per
 day,  and  together  with an allowance for actual and necessary expenses
 incurred in the discharge of their duties. The chairperson shall receive
 an annual salary established in paragraph  (c)  of  subdivision  one  of
 section  one  hundred  sixty-nine  of  the executive law, and his or her
 expenses actually and necessarily incurred in the performance of his  or
 her  official  duties,  unless otherwise provided by the legislature. No
 member or member's spouse or minor child shall have any interest  in  an
 entity regulated by the authority.
   §  12. Expenses. Each member of the authority shall be entitled to his
 or her expenses actually and necessarily incurred by him or her  in  the
 performance of his or her duties.
   §  13.  Removal.  Any  member  of  the authority may be removed by the
 governor for cause after an opportunity to be heard. A statement of  the
 cause of his or her removal shall be filed by the governor in the office
 of the secretary of state.
   §  14.  Vacancies;  quorum. 1. In the event of a vacancy caused by the
 death, resignation, removal or disability of the chairperson, the vacan-
 cy shall be filled by the governor by and with the advice and consent of
 the senate for the unexpired term.
 A. 10408                            5
 
   2. (a) Notwithstanding any other provision of law to the contrary, the
 governor shall designate one of the board members  to  serve  as  acting
 chairperson  for  a period not to exceed six months or until a successor
 chairperson has been confirmed by the  senate,  whichever  comes  first.
 Upon the expiration of the six-month term, if the governor has nominated
 a  successor  chairperson,  but  the senate has not acted upon the nomi-
 nation, the acting chairperson can continue to serve  as  acting  chair-
 person  for  an additional ninety days or until the governor's successor
 chairperson nomination is  confirmed  by  the  senate,  whichever  comes
 first.
   (b)  The governor shall provide immediate written notice to the tempo-
 rary president of the senate of the  designation  of  a  chairperson  as
 acting chairperson.
   (c) If (i) the governor has not nominated a successor chairperson upon
 the expiration of the six-month term or (ii) the senate does not confirm
 the  governor's  successor nomination within the additional ninety days,
 the chairperson designated as acting chairperson shall no longer be able
 to serve as acting chairperson  and  the  governor  is  prohibited  from
 extending  the  powers  of  that  acting chairperson or from designating
 another chairperson to serve as acting chairperson.
   (d) The chairperson shall be deemed a state officer  for  purposes  of
 section seventy-three of the public officers law.
   3.  A  majority  of  the  members  of the authority shall constitute a
 quorum for the purpose of conducting the business thereof and a majority
 vote of all the  members  in  office  shall  be  necessary  for  action.
 Provided,  however,  that  a  chairperson designated as an acting chair-
 person pursuant to subdivision two of this section shall have  only  one
 vote for purposes of conducting the business of the authority.
   §  15. Officers; employees; offices. The authority shall have power to
 appoint any necessary deputies, counsels, assistants, investigators, and
 other employees within the limits provided  by  appropriation.  Investi-
 gators so employed by the authority shall be deemed to be peace officers
 for the purpose of enforcing the provisions of the tobacco, nicotine and
 vaping  law  or judgments or orders obtained for violation thereof, with
 all the powers set forth in section 2.20 of the criminal procedure  law.
 The  counsel, secretary, chief executive officer, assistant chief execu-
 tive officers, confidential secretaries to the chairperson and  deputies
 shall be in the exempt class of the civil service. The other assistants,
 investigators and employees of the authority shall all be in the compet-
 itive class of the civil service. The authority shall have its principal
 office  in  the  city of Albany, and may maintain a branch office in the
 cities of New York and Buffalo and such other  places  as  it  may  deem
 necessary.
   The  authority  shall  establish appropriate procedures to ensure that
 hearing officers are shielded from ex parte communications with  alleged
 violators  and their attorneys and from other employees of the authority
 and shall take such other steps as it shall deem necessary and proper to
 shield its judicial processes from unwarranted and inappropriate  commu-
 nications and attempts to influence.
   §  16.  Disqualification  of  members  and  employees of authority. No
 member of the authority or any officer, deputy, assistant, inspector  or
 employee  thereof  shall  have  any interest, direct or indirect, either
 proprietary or by means of any loan, mortgage or lien, or in  any  other
 manner,  in  or  on  any  premises  where  tobacco,  nicotine, or vaping
 products are manufactured or sold; nor shall he or she have  any  inter-
 est,  direct or indirect, in any business wholly or partially devoted to
 A. 10408                            6
 
 the manufacture, sale, transportation or storage of tobacco, nicotine or
 vaping products, or own any stock  in  any  corporation  which  has  any
 interest,  proprietary or otherwise, direct or indirect, in any premises
 where  tobacco, nicotine or vaping products are manufactured or sold, or
 in any business wholly or partially devoted to  the  manufacture,  sale,
 transportation  or  storage  of tobacco, nicotine or vaping products, or
 receive any commission or profit whatsoever, direct  or  indirect,  from
 any  person applying for or receiving any license or permit provided for
 in this chapter, or hold any other public office in the state or in  any
 political subdivision except upon the written permission of the tobacco,
 nicotine  and vaping authority, such member of the authority or officer,
 deputy, assistant, inspector or employee thereof  may  hold  the  public
 office  of  notary public or member of a community board of education in
 the city school district of the city of New York.  Anyone  who  violates
 any of the provisions of this section shall be removed.
   § 17. Powers and duties of the authority. The authority shall have the
 following functions, powers and duties as provided for in this chapter:
   1.  Develop a registration and licensing procedure, in addition to the
 licensing requirements of section four hundred eighty of  the  tax  law,
 for  all  tobacco businesses, retail tobacco businesses, retail dealers,
 vapor products dealers, retail electronic  cigarette  stores,  or  other
 person  or  entity  engaged  in the sale of tobacco, nicotine, or vaping
 products.
   2. Discretion to issue or refuse to issue any registration, license or
 permit provided for in this chapter, as follows: the  chairperson  shall
 issue  a  preliminary determination on whether the license, registration
 or permit shall be granted, denied, or  held  for  further  action.  Any
 preliminary  determination by the chairperson shall take effect fourteen
 days after it has been issued by the chairperson.
   3. Sole discretion to limit, or not to limit, the number of  registra-
 tions,  licenses and permits of each class to be issued within the state
 or any political subdivision  thereof,  in  a  manner  that  prioritizes
 social  and  economic  equity  applicants with the goal of fifty percent
 awarded to such applicants, and considers small  business  opportunities
 and  concerns,  avoids  market dominance in sectors of the industry, and
 reflects the demographics of the state.
   4. Sole discretion to revoke, cancel or suspend for cause  any  regis-
 tration, license, or permit issued under this chapter and/or to impose a
 civil  penalty for cause, after notice and an opportunity for a hearing,
 against any holder of a registration, license, or permit issued pursuant
 to this chapter.
   5. To fix by rule and regulation the  standards  and  requirements  of
 cultivation,  processing,  packaging,  marketing,  and  sale of tobacco,
 nicotine, and vaping products, including but not limited to, the ability
 to regulate excipients, and  the  types,  forms,  and  concentration  of
 products  which may be manufactured and/or processed, in order to ensure
 the health and safety of the public and the use  of  proper  ingredients
 and  methods  in  the  manufacture  of all tobacco, nicotine, and vaping
 products to be sold or consumed in the state and to ensure that products
 are not packaged, marketed, or otherwise sold in  a  way  which  targets
 minors or promotes increased use.
   6.  To  limit or prohibit, at any time of public emergency and without
 previous notice or advertisement, the cultivation, processing,  distrib-
 ution  or sale of any or all tobacco, nicotine, and vaping products, for
 and during the period of such emergency.
 A. 10408                            7

   7. To hold hearings,  subpoena  witnesses,  compel  their  attendance,
 administer  oaths,  to  examine  any person under oath and in connection
 therewith to require the production of any books or records relative  to
 the  inquiry. A subpoena issued under this section shall be regulated by
 the civil practice law and rules.
   8. To appoint any necessary directors, deputies, counsels, assistants,
 investigators,  and other employees within the limits provided by appro-
 priation. Directors, deputies and counsels, including the  chief  equity
 officer,  shall  be  in the exempt class of the civil service. The other
 assistants, investigators and employees of the authority shall all be in
 the competitive class of the civil service and shall be  considered  for
 purposes  of  article  fourteen  of  the  civil service law to be public
 employees of the  state,  and  shall  be  assigned  to  the  appropriate
 bargaining  unit.  Investigators  so  employed by the authority shall be
 deemed to be peace officers only  for  the  purposes  of  enforcing  the
 provisions of this chapter or judgments or orders obtained for violation
 thereof,  with  all the powers set forth in section 2.20 of the criminal
 procedure law. Employees transferred to the authority  shall  be  trans-
 ferred without further examination or qualification to the same or simi-
 lar  titles and shall remain in the same collective bargaining units and
 shall retain their respective civil service classifications, status  and
 rights  pursuant  to  their  collective  bargaining units and collective
 bargaining agreements. Employees serving in positions in  newly  created
 titles  shall  be assigned to the appropriate collective bargaining unit
 as they would have been assigned to were such titles  created  prior  to
 the  establishment  of  the  tobacco, nicotine and vaping authority. Any
 action taken under this subdivision shall be subject to and  in  accord-
 ance with the civil service law.
   9.  To inspect or provide authorization for the inspection at any time
 of any premises where tobacco, nicotine, and vaping products are  culti-
 vated, processed, stored, distributed or sold.
   10. To prescribe forms of applications for registrations, licenses and
 permits  under  this  chapter and of all reports deemed necessary by the
 authority.
   11. To appoint such advisory groups and committees as deemed necessary
 to carry out the purposes and objectives of this chapter.
   12. To exercise the powers and perform the duties in relation  to  the
 administration  of  the  authority as are necessary but not specifically
 vested by this chapter, including  but  not  limited  to  budgetary  and
 fiscal matters.
   13. To develop and establish minimum criteria for certifying employees
 to  work in the tobacco, nicotine, and vaping products industry in posi-
 tions requiring advanced training and education.
   14. To enter into contracts, memoranda of  understanding,  and  agree-
 ments as deemed appropriate to effectuate the policy and purpose of this
 chapter.
   15.  If  public health, safety, or welfare imperatively requires emer-
 gency action, and incorporates a finding to that  effect  in  an  order,
 summary  suspension  of  a license may be ordered, effective on the date
 specified in such order or upon service of  a  certified  copy  of  such
 order on the licensee, whichever shall be later, pending proceedings for
 revocation  or other action.  These proceedings shall be promptly insti-
 tuted and determined. In addition, the  authority  may  be  directed  to
 order the administrative seizure of product, issue a stop order, or take
 any  other  action  necessary  to  effectuate and enforce the policy and
 purpose of this chapter.
 A. 10408                            8
 
   16. To draft and provide for public  comment  and  issue  regulations,
 declaratory rulings, guidance and industry advisories.
   17. To draft and provide an annual report on the effectiveness of this
 chapter.  The  annual report shall be prepared, in consultation with the
 division of the budget, the urban development corporation,  the  depart-
 ment  of  taxation and finance, the department of health, the department
 of agriculture  and  markets,  the  office  of  addiction  services  and
 supports,  the  office  of mental health, the New York state police, the
 department of motor  vehicles  and  the  division  of  criminal  justice
 services. The report shall provide, but not be limited to, the following
 information:
   (a)  the number of registrations, licenses, and permits applied for by
 geographic region of the state; the number of  registrations,  licenses,
 and permits approved or denied by geographic region of the state;
   (b)  the  economic  and  fiscal  impacts associated with this chapter,
 including revenue from licensing  or  other  fees,  fines  and  taxation
 related  to  the  cultivation,  distribution  and  sale  of cannabis for
 medical and adult-use and cannabinoid hemp  and  hemp  extract  in  this
 state;
   (c)  specific programs and progress made by the authority in achieving
 the goals of the social and  economic  equity  plan,  and  other  social
 justice goals including, but not limited to, restorative justice, minor-
 ity- and women-owned businesses, distressed farmers and service disabled
 veterans;
   (d)  demographic data on owners and employees in the tobacco, nicotine
 and vaping industry;
   (e) impacts to public  health  and  safety,  including  substance  use
 disorder;
   (f)  impacts associated with public safety, including, but not limited
 to, traffic-related issues, law  enforcement,  under-age  prevention  in
 relation  to  accessing  tobacco,  nicotine,  and  vaping  products, and
 efforts to eliminate the  illegal  market  for  tobacco,  nicotine,  and
 vaping products in New York;
   (g) any other information or data deemed significant; and
   (h) the authority shall make recommendations regarding the appropriate
 level  of taxation of tobacco, nicotine, and vaping products, as well as
 changes necessary to: improve registration,  licensing  and  permitting;
 promote and encourage social and economic equity applicants; improve and
 protect  the public health and safety of New Yorkers; improve access and
 availability for substance  abuse  treatment  programs;  and  any  other
 recommendations  deemed  necessary and appropriate. Such report shall be
 published on the authority's website and the adult-use substance author-
 ity's website, and presented to the governor, the temporary president of
 the senate and the speaker of the assembly, no later than January first,
 two thousand twenty-three and annually thereafter.
   18. When an administrative  decision  is  appealed  by  an  applicant,
 registered  organization,  licensee or permittee, issue a final determi-
 nation.
   19. Approve the opening of new license application periods,  and  when
 new  or additional licenses are made available pursuant to this chapter,
 provided, however, that the initial adult-use cannabis retail dispensary
 license application period shall be opened for  all  applicants  at  the
 same time.
   20. Set price quotas or price controls.
   21. To enter into tribal-state compacts with the New York state Indian
 nations and tribes, as defined by section two of the Indian law, author-
 A. 10408                            9
 
 izing  such  Indian  nations or tribes to acquire, possess, manufacture,
 sell, deliver, transport, distribute or dispense tobacco, nicotine,  and
 vaping products.
   §  18.  Powers and duties of the chairperson. 1. The chairperson shall
 develop, plan and implement a comprehensive program to reduce the preva-
 lence of tobacco use, and vapor product, intended or reasonably expected
 to be used with or for the consumption  of  nicotine,  use  particularly
 among  persons  less  than  twenty-one  years of age. This program shall
 include, but not be limited to, support for enforcement of this article.
   2. An enforcement officer may annually, on  such  dates  as  shall  be
 fixed  by  the chairperson, submit an application for such monies as are
 made available for such purpose. Such application shall be in such  form
 as  prescribed  by the chairperson and shall include, but not be limited
 to, plans regarding random spot checks, including the number  and  types
 of  compliance  checks  that  will be conducted, and other activities to
 determine compliance with this article. Each such plan shall include  an
 agreement  to  report  to  the  chairperson:  the names and addresses of
 tobacco retailers and vendors and vapor products dealers  determined  to
 be  unlicensed,  if any; the number of complaints filed against licensed
 tobacco retail outlets and vapor products  dealers;  and  the  names  of
 tobacco  retailers  and vendors and vapor products dealers who have paid
 fines, or have been otherwise penalized, due to enforcement actions.
   3. The chairperson shall distribute such monies as are made  available
 for  such purpose to enforcement officers and, in so doing, consider the
 number of licensed vapor products dealers and  retail  locations  regis-
 tered  to  sell tobacco products within the jurisdiction of the enforce-
 ment officer and the level of proposed activities.
   4. Monies made available to  enforcement  officers  pursuant  to  this
 section shall only be used for local tobacco and vapor product, intended
 or  reasonably  expected to be used with or for the consumption of nico-
 tine, enforcement activities approved by the chairperson.
   5. The chairperson shall submit to the adult-use substances authority,
 the governor and the legislature annual tobacco  control  reports  which
 shall  describe  the  extent  of  the  use of tobacco products and vapor
 products, intended or reasonably expected to be used  with  or  for  the
 consumption  of  nicotine, by those under twenty-one years of age in the
 state and document the progress state and local governments have made in
 reducing such use among those under twenty-one years of age.
   6. The chairperson shall submit to the adult-use substances authority,
 the governor and the legislature an annual tobacco and  vapor  products,
 intended  or  reasonably expected to be used with or for the consumption
 of nicotine, a control report which shall describe the extent of the use
 of tobacco products and vapor products, intended or reasonably  expected
 to be used with or for the consumption of nicotine, by those under twen-
 ty-one  years  of  age  in the state and document the progress state and
 local governments have made in reducing such use among those under twen-
 ty-one years of age. The annual report shall be submitted to the  gover-
 nor  and  the  legislature on or before March thirty-first of each year.
 The annual report shall, to the extent practicable, include the  follow-
 ing information on a county by county basis:
   (a)  the  number  of  licensed  and  registered  tobacco retailers and
 vendors and licensed vapor products dealers;
   (b) the names and addresses of retailers and  vendors  who  have  paid
 fines, or have been otherwise penalized, due to enforcement actions;
   (c)  the  number  of  complaints filed against licensed and registered
 tobacco retailers and licensed vapor products dealers;
 A. 10408                           10
 
   (d) the number of fires caused or believed to  be  caused  by  tobacco
 products  and vapor products, intended or reasonably expected to be used
 with or for the consumption of nicotine, and deaths and injuries result-
 ing therefrom;
   (e) the number and type of compliance checks conducted;
   (f)  a  survey  of attitudes and behaviors regarding tobacco use among
 those under twenty-one years of age. The initial such  survey  shall  be
 deemed to constitute the baseline survey;
   (g)  the  number  of tobacco and vapor product, intended or reasonably
 expected to be used with or for the consumption of nicotine,  users  and
 estimated  trends  in  tobacco and vapor product, intended or reasonably
 expected to be used with or for the consumption of nicotine,  use  among
 those under twenty-one years of age;
   (h)  annual tobacco and vapor product, intended or reasonably expected
 to be used with or for the consumption of nicotine, sales;
   (i) tax revenue collected from the sale of tobacco products and  vapor
 products,  intended  or  reasonably  expected to be used with or for the
 consumption of nicotine;
   (j) the number of licensed tobacco retail outlets and  licensed  vapor
 products dealers;
   (k) the number of cigarette vending machines;
   (l) the number and type of compliance checks;
   (m)  the  names  of  entities  that have paid fines due to enforcement
 actions; and
   (n) the number of complaints filed  against  licensed  tobacco  retail
 outlets and licensed vapor products dealers.
   7.  The  annual  tobacco  and  vapor  product,  intended or reasonably
 expected to be used with or for the  consumption  of  nicotine,  control
 report  shall, to the extent practicable, include the following informa-
 tion:
   (a) tobacco and vapor product, intended or reasonably expected  to  be
 used  with or for the consumption of nicotine, control efforts sponsored
 by state government agencies including  money  spent  to  educate  those
 under  twenty-one years of age on the hazards of tobacco and vapor prod-
 uct, intended or reasonably expected to be used with or for the consump-
 tion of nicotine, use;
   (b) recommendations for improving tobacco and vapor product,  intended
 or  reasonably  expected to be used with or for the consumption of nico-
 tine, control efforts in the state; and
   (c) such other information as the chairperson deems appropriate.
   8. The chairperson shall evaluate the effectiveness of the efforts  by
 state  and  local  governments to reduce the use of tobacco products and
 vapor products, intended or reasonably expected to be used with  or  for
 the  consumption  of  nicotine,  among  minors and adults. The principal
 measurements of effectiveness shall include  negative  attitudes  toward
 tobacco  and  vapor products, intended or reasonably expected to be used
 with or for the consumption of nicotine, use and  reduction  of  tobacco
 and  vapor  products, intended or reasonably expected to be used with or
 for the consumption of nicotine, use among the general  population,  and
 given target populations.
   9.  The  chairperson shall ensure that, to the extent practicable, the
 most current research findings regarding mechanisms to reduce and change
 attitudes toward tobacco and  vapor  products,  intended  or  reasonably
 expected  to  be  used  with or for the consumption of nicotine, use are
 used in tobacco and vapor product, intended or reasonably expected to be
 A. 10408                           11
 
 used with or for the consumption of nicotine, education programs  admin-
 istered by the department of health.
   10.  To  diminish  tobacco  and  vapor product, intended or reasonably
 expected to be used with or for the consumption of nicotine,  use  among
 minors  and  adults,  the  chairperson  shall ensure that, to the extent
 practicable, the authority shall conduct an  independent  evaluation  of
 the  tobacco  and vapor use prevention and control program under section
 thirteen hundred ninety-nine-aa of the public health law.   The  purpose
 of  this  evaluation is to direct the most efficient allocation of state
 resources devoted to tobacco and vapor product, intended  or  reasonably
 expected  to  be used with or for the consumption of nicotine, education
 and cessation to accomplish the  maximum  prevention  and  reduction  of
 tobacco  and  vapor  product, intended or reasonably expected to be used
 with or for the consumption of nicotine, use among  minors  and  adults.
 Such  evaluation shall be provided to the governor, the temporary presi-
 dent of the senate and the speaker of the assembly on or before  Septem-
 ber  first  of  each  year. The comprehensive evaluation design shall be
 guided by the following:
   (a) sound evaluation principles including,  to  the  extent  feasible,
 elements of controlled experimental methods;
   (b)  an  evaluation  of  the  comparative  effectiveness of individual
 program designs which shall be used in  funding  decisions  and  program
 modifications; and
   (c)  an  evaluation  of  other  programs identified by state agencies,
 local lead agencies, and federal agencies.
   § 19. Oath of office. Each  member  of  the  authority  shall,  before
 entering  upon  his  or  her  duties, take and file an oath of office as
 prescribed by section ten of the public officers law.
 
                                 ARTICLE 3
       REGULATION OF TOBACCO PRODUCTS, HERBAL CIGARETTES AND SMOKING
                   PARAPHERNALIA; DISTRIBUTION TO MINORS
 Section 30. Distribution of tobacco products, vapor products, or  herbal
               cigarettes without charge.
         31. Sale  of  tobacco  products, herbal cigarettes, liquid nico-
               tine, shisha, rolling papers or smoking  paraphernalia  to
               minors prohibited.
         32. Sale  of  tobacco  products, herbal cigarettes or electronic
               cigarettes in vending machines.
         33. Public display of tobacco product and  electronic  cigarette
               advertisements and smoking paraphernalia prohibited.
         34. Hearings; penalties.
         35. Enforcement.
         36. Out-of-package sales and minimum package sizes.
         37. Unlawful  shipment  or  transport  of  cigarettes  and vapor
               products.
         38. Sale of bidis prohibited.
         39. Sale of gutka prohibited.
         40. Sale of flavored products prohibited.
         41. Sale in pharmacies.
         42. Carrier oils.
   § 30. Distribution of tobacco  products,  vapor  products,  or  herbal
 cigarettes without charge. 1.  No retail dealer, or any agent or employ-
 ee  of  a  retail dealer engaged in the business of selling or otherwise
 distributing tobacco products, vapor  products  intended  or  reasonably
 expected  to  be used with or for the consumption of nicotine, or herbal
 A. 10408                           12
 
 cigarettes for commercial purposes, or any agent  or  employee  of  such
 retail  dealer, or any agent or employee of a retail dealer, shall know-
 ingly, in furtherance of such business:
   (a)  distribute  without  charge  any tobacco products, vapor products
 intended or reasonably expected to be used with or for  the  consumption
 of  nicotine,  or herbal cigarettes to any individual, provided that the
 distribution of a package containing tobacco  products,  vapor  products
 intended  or  reasonably expected to be used with or for the consumption
 of nicotine, or herbal cigarettes in violation of this subdivision shall
 constitute a single violation without regard to the number of  items  in
 the package; or
   (b)  distribute  price  reduction instruments which are redeemable for
 tobacco products, vapor products intended or reasonably expected  to  be
 used  with  or  for the consumption of nicotine, or herbal cigarettes to
 any individual, provided  that  this  subdivision  shall  not  apply  to
 coupons  contained  in  newspapers, magazines or other types of publica-
 tions, coupons obtained through the purchase of tobacco products,  vapor
 products  intended  or  reasonably  expected  to be used with or for the
 consumption of nicotine, or herbal cigarettes or obtained  at  locations
 which  sell  tobacco  products,  vapor  products  intended or reasonably
 expected to be used with or for the consumption of nicotine,  or  herbal
 cigarettes  provided  that such distribution is confined to a designated
 area or to coupons sent through the mail.
   2. No retail dealer engaged in the business of  selling  or  otherwise
 distributing  tobacco  products,  herbal  cigarettes,  or vapor products
 intended or reasonably expected to be used with or for  the  consumption
 of  nicotine  for  commercial purposes, or any agent or employee of such
 retail dealer, shall knowingly, in furtherance of such business:
   (a) honor or accept a price reduction instrument  in  any  transaction
 related  to  the  sale  of tobacco products, herbal cigarettes, or vapor
 products intended or reasonably expected to be  used  with  or  for  the
 consumption of nicotine to a consumer;
   (b) sell or offer for sale any tobacco products, herbal cigarettes, or
 vapor  products  intended  or reasonably expected to be used with or for
 the consumption of nicotine to  a  consumer  through  any  multi-package
 discount or otherwise provide to a consumer any tobacco products, herbal
 cigarettes, or vapor products intended or reasonably expected to be used
 with  or  for the consumption of nicotine for less than the listed price
 or non-discounted price in exchange for the purchase of any other tobac-
 co products, herbal cigarettes, or vapor products intended or reasonably
 expected to be used with or for the  consumption  of  nicotine  by  such
 consumer;
   (c)  sell, offer for sale, or otherwise provide any product other than
 a tobacco product,  herbal  cigarette,  or  vapor  product  intended  or
 reasonably  expected  to be used with or for the consumption of nicotine
 to a consumer for less than the listed price or non-discounted price  in
 exchange  for  the  purchase  of a tobacco product, herbal cigarette, or
 vapor product intended or reasonably expected to be used with or for the
 consumption of nicotine by such consumer; or
   (d) sell, offer for sale, or  otherwise  provide  a  tobacco  product,
 herbal cigarette, or vapor product intended or reasonably expected to be
 used with or for the consumption of nicotine to a consumer for less than
 the listed price or non-discounted price.
   3. The prohibitions contained in subdivision one of this section shall
 not apply to the following locations:
 A. 10408                           13
 
   (a)  private  social functions when seating arrangements are under the
 control of the sponsor of the function  and  not  the  owner,  operator,
 manager or person in charge of such area;
   (b)  conventions  and  trade  shows; provided that the distribution is
 confined to designated areas generally accessible only to  persons  over
 the age of twenty-one;
   (c)  events  sponsored  by  tobacco product, vapor product intended or
 reasonably expected to be used with or for the consumption of  nicotine,
 or  herbal  cigarette  manufacturers  provided  that the distribution is
 confined to designated areas generally accessible only to  persons  over
 the age of twenty-one;
   (d) bars;
   (e) tobacco businesses; and
   (f)  factories  and construction sites; provided that the distribution
 is confined to designated areas generally  accessible  only  to  persons
 over the age of twenty-one.
   4.  No retail dealer shall distribute tobacco products, vapor products
 intended or reasonably expected to be used with or for  the  consumption
 of  nicotine,  or  herbal cigarettes at the locations set forth in para-
 graphs (b), (c) and (f) of subdivision three of this section unless such
 person gives five days written notice to the enforcement officer.
   5. No retail dealer engaged in the business of  selling  or  otherwise
 distributing electronic cigarettes or vapor products intended or reason-
 ably  expected  to  be  used with or for the consumption of nicotine for
 commercial purposes, or any agent or  employee  of  such  person,  shall
 knowingly,  in  furtherance  of such business, distribute without charge
 any electronic cigarettes to any individual under  twenty-one  years  of
 age.
   6.  The distribution of tobacco products, electronic cigarettes, vapor
 products intended or reasonably expected to be  used  with  or  for  the
 consumption  of  nicotine,  or herbal cigarettes pursuant to subdivision
 three of this section or the distribution without charge  of  electronic
 cigarettes, or vapor products intended or reasonably expected to be used
 with  or for the consumption of nicotine, shall be made only to an indi-
 vidual who demonstrates, through (a) a driver's  license  or  non-driver
 identification  card  issued  by the commissioner of motor vehicles, the
 federal  government,  any  United  States  territory,  commonwealth,  or
 possession,  the  District  of  Columbia,  a state government within the
 United States, or a provincial government of the dominion of Canada, (b)
 a valid passport issued by the United States government or  the  govern-
 ment  of  any other country, or (c) an identification card issued by the
 armed forces of the United States, indicating that the individual is  at
 least  twenty-one years of age. Such identification need not be required
 of any individual who reasonably appears  to  be  at  least  twenty-five
 years  of age; provided, however, that such appearance shall not consti-
 tute a defense in any proceeding alleging the sale of a tobacco product,
 electronic cigarette, vapor product intended or reasonably  expected  to
 be  used with or for the consumption of nicotine, or herbal cigarette or
 the distribution without  charge  of  electronic  cigarettes,  or  vapor
 products  intended  or  reasonably  expected  to be used with or for the
 consumption of nicotine to an individual.
   § 31. Sale of tobacco products, herbal  cigarettes,  liquid  nicotine,
 shisha or smoking paraphernalia to minors prohibited. 1. As used in this
 section:
   (a) "Device capable of deciphering any electronically readable format"
 or  "device"  means any commercial device or combination of devices used
 A. 10408                           14
 
 at a point of sale or entry that is capable of reading  the  information
 encoded  on the bar code or magnetic strip of a driver's license or non-
 driver identification card issued by the  state  commissioner  of  motor
 vehicles;
   (b)  "Card  holder"  means any person presenting a driver's license or
 non-driver identification card to a licensee, or to the agent or employ-
 ee of such licensee under this chapter;
   (c) "Transaction scan" means the process involving  an  automated  bar
 code  reader  by  which  a  licensee, or agent or employee of a licensee
 under this chapter reviews a driver's license or non-driver  identifica-
 tion  card  presented  as  a  precondition for the purchase of a tobacco
 product or herbal cigarettes  pursuant  to  subdivision  three  of  this
 section; and
   (d)  "Liquid  nicotine",  "electronic  liquid"  or  "e-liquid" means a
 liquid composed of nicotine and other chemicals, and which is sold as  a
 product that may be used in an electronic cigarette.
   2.  Any person operating a place of business wherein tobacco products,
 herbal cigarettes, liquid nicotine, shisha or electronic cigarettes, are
 sold or offered for sale  is  prohibited  from  selling  such  products,
 herbal  cigarettes,  liquid  nicotine,  shisha, electronic cigarettes or
 smoking paraphernalia to individuals under twenty-one years of age,  and
 shall  post  in  a  conspicuous  place  a sign upon which there shall be
 imprinted the following statement, "SALE OF CIGARETTES, CIGARS,  CHEWING
 TOBACCO,  POWDERED  TOBACCO,  SHISHA  OR  OTHER TOBACCO PRODUCTS, HERBAL
 CIGARETTES, LIQUID NICOTINE, ELECTRONIC CIGARETTES,  ROLLING  PAPERS  OR
 SMOKING  PARAPHERNALIA,  TO  PERSONS  UNDER  TWENTY-ONE  YEARS OF AGE IS
 PROHIBITED BY LAW." Such sign shall be printed on a white  card  in  red
 letters at least one-half inch in height.
   3.  Sale  of  tobacco  products,  herbal  cigarettes, liquid nicotine,
 shisha or electronic cigarettes in such places, other than by a  vending
 machine,  shall  be made only to an individual who demonstrates, through
 (a) a valid driver license or non-driver identification card  issued  by
 the  commissioner  of motor vehicles, the federal government, any United
 States territory, commonwealth or possession, the District of  Columbia,
 a  state  government within the United States or a provincial government
 of the dominion of Canada, or (b) a valid passport issued by the  United
 States  government  or  any other country, or (c) an identification card
 issued by the armed forces of the United  States,  indicating  that  the
 individual is at least twenty-one years of age. Such identification need
 not  be required of any individual who reasonably appears to be at least
 twenty-five years of age, provided, however, that such appearance  shall
 not constitute a defense in any proceeding alleging the sale of a tobac-
 co  product,  herbal  cigarettes,  liquid nicotine, shisha or electronic
 cigarettes to an individual under twenty-one years of age.
   4. (a) Any person  operating  a  place  of  business  wherein  tobacco
 products, herbal cigarettes, liquid nicotine, shisha or electronic ciga-
 rettes  are sold or offered for sale may perform a transaction scan as a
 precondition for such purchases.
   (b) In any instance where the information  deciphered  by  the  trans-
 action  scan  fails  to  match  the  information printed on the driver's
 license or non-driver identification card, or if  the  transaction  scan
 indicates  that  the  information  is false or fraudulent, the attempted
 transaction shall be denied.
   (c) In any proceeding pursuant to section seventeen of  this  chapter,
 it shall be an affirmative defense that such person had produced a driv-
 er's  license  or  non-driver identification card apparently issued by a
 A. 10408                           15
 
 governmental entity, successfully completed that transaction  scan,  and
 that  the tobacco product, herbal cigarettes or liquid nicotine had been
 sold, delivered or given to such person in reasonable reliance upon such
 identification  and transaction scan. In evaluating the applicability of
 such affirmative defense the chairperson shall take  into  consideration
 any  written  policy adopted and implemented by the seller to effectuate
 the provisions of this chapter. Use of  a  transaction  scan  shall  not
 excuse  any  person  operating  a  place  of  business  wherein  tobacco
 products, herbal cigarettes, liquid nicotine, shisha or electronic ciga-
 rettes are sold, or the agent or employee of such person, from the exer-
 cise  of  reasonable  diligence  otherwise  required  by  this  chapter.
 Notwithstanding the above provisions, any such affirmative defense shall
 not  be  applicable in any civil or criminal proceeding, or in any other
 forum.
   5. A licensee or agent or employee of such licensee shall only  use  a
 device  capable  of  deciphering any electronically readable format, and
 shall only use the information recorded and maintained through  the  use
 of  such devices, for the purposes contained in subdivision four of this
 section. No licensee or agent or employee of a licensee shall resell  or
 disseminate  the  information  recorded  during such a scan to any third
 person. Such prohibited resale or  dissemination  includes  but  is  not
 limited   to  any  advertising,  marketing  or  promotional  activities.
 Notwithstanding the  restrictions  imposed  by  this  subdivision,  such
 records may be released pursuant to a court ordered subpoena or pursuant
 to  any  other  statute that specifically authorizes the release of such
 information. Each violation of this subdivision shall be punishable by a
 civil penalty of not more than one thousand dollars.
   6. A licensee or agent or employee of such a  licensee  may  electron-
 ically  or  mechanically record and maintain only the information from a
 transaction scan necessary to effectuate this section. Such  information
 shall  be  limited  to  the  following: (a) name, (b) date of birth, (c)
 driver's license or non-driver identification number, and (d) expiration
 date. The chairperson and state commissioner  of  motor  vehicles  shall
 jointly promulgate any regulations necessary to govern the recording and
 maintenance  of  these  records  by  a  licensee under this chapter. The
 chairperson and the state liquor authority shall jointly promulgate  any
 regulation  necessary to ensure quality control in the use of the trans-
 action scan devices under this chapter and article five of the alcoholic
 beverage control law.
   7. No person operating a place of business wherein  tobacco  products,
 herbal  cigarettes, liquid nicotine, shisha or electronic cigarettes are
 sold or offered for sale shall sell, permit to be sold, offer  for  sale
 or display for sale any tobacco product, herbal cigarettes, liquid nico-
 tine,  shisha  or  electronic  cigarettes  in  any  manner,  unless such
 products and cigarettes are stored for sale (a) behind a counter  in  an
 area  accessible  only  to  the  personnel of such business, or (b) in a
 locked container; provided, however, such restriction shall not apply to
 tobacco businesses and to places to which  admission  is  restricted  to
 persons twenty-one years of age or older.
   §  32. Sale of tobacco products, herbal cigarettes or electronic ciga-
 rettes in vending machines.  No person, firm,  partnership,  company  or
 corporation  shall  operate  a  vending  machine which dispenses tobacco
 products, herbal cigarettes or electronic cigarettes unless such machine
 is located: (a) in a bar, or the bar area of a food  service  establish-
 ment  with  a  valid,  on-premises full liquor license; (b) in a private
 club; (c) in a tobacco business; or (d) in a place of  employment  which
 A. 10408                           16
 
 has  an  insignificant  portion  of  its  regular workforce comprised of
 people under the age of twenty-one years and only in such locations that
 are not accessible to the general public;  provided,  however,  that  in
 such  locations  the  vending machine is located in plain view and under
 the direct supervision and control  of  the  person  in  charge  of  the
 location or his or her designated agent or employee.
   §  33.  Public  display  of  tobacco  product and electronic cigarette
 advertisements and smoking paraphernalia prohibited. 1. For purposes  of
 this   section   "advertisement"  means  words,  pictures,  photographs,
 symbols, graphics or visual images of any kind, or any combination ther-
 eof, which bear a  health  warning  required  by  federal  statute,  the
 purpose  or effect of which is to identify a brand of a tobacco product,
 electronic cigarette, or vapor product intended or  reasonably  expected
 to  be  used  with  or for the consumption of nicotine, a trademark of a
 tobacco product, electronic cigarette,  or  vapor  product  intended  or
 reasonably  expected  to be used with or for the consumption of nicotine
 or a trade name associated exclusively with a tobacco product, electron-
 ic cigarette, or vapor product intended or  reasonably  expected  to  be
 used  with  or  for the consumption of nicotine or to promote the use or
 sale of a  tobacco  product,  electronic  cigarette,  or  vapor  product
 intended  or  reasonably expected to be used with or for the consumption
 of nicotine.
   2. (a) No person, corporation, partnership, sole  proprietor,  limited
 partnership,  association  or any other business entity may place, cause
 to be placed, maintain or to cause to be maintained,  smoking  parapher-
 nalia  or  tobacco  product,  electronic  cigarette,  or  vapor  product
 intended or reasonably expected to be used with or for  the  consumption
 of  nicotine  advertisements  in a store front or exterior window or any
 door which is used for entry or egress by the public to the building  or
 structure  containing  a  place  of  business  within  one thousand five
 hundred feet of a school, provided that within New York city such prohi-
 bitions shall only apply within five hundred feet of a school.
   (b) Any person, corporation,  partnership,  sole  proprietor,  limited
 partnership,  association  or  any other business entity in violation of
 this section shall be subject to a civil penalty of not more  than  five
 hundred  dollars  for  a  first violation and not more than one thousand
 dollars for a second or subsequent violation.
   § 34. Hearings; penalties. 1. Hearings with respect  to  violation  of
 this article shall be conducted in the same manner as hearings conducted
 under article thirteen-E of the public health law.
   2.  If  an  enforcement  officer  determines  after  a  hearing that a
 violation of this article has occurred, he or she shall impose  a  civil
 penalty  of  a  minimum  of three hundred dollars, but not to exceed one
 thousand five hundred dollars for a first violation, and  a  minimum  of
 one  thousand  dollars,  but  not  to  exceed  two thousand five hundred
 dollars for each subsequent violation, unless  a  different  penalty  is
 otherwise  provided in this article. An enforcement officer shall advise
 the retail dealer that upon the accumulation of  three  or  more  points
 pursuant  to  this  section the department of taxation and finance shall
 suspend the dealer's registration. If an enforcement officer  determines
 after  a hearing that a retail dealer was selling tobacco products while
 their registration was suspended  or  permanently  revoked  pursuant  to
 subdivision  three  or  four  of  this section, he or she shall impose a
 civil penalty of twenty-five hundred dollars.
   3. (a) Imposition of points. If the  enforcement  officer  determines,
 after  a  hearing, that the retail dealer violated section thirty-one of
 A. 10408                           17
 
 this article with respect to a prohibited sale to a  minor,  he  or  she
 shall,  in  addition to imposing any other penalty required or permitted
 pursuant to this section, assign  two  points  to  the  retail  dealer's
 record  where  the individual who committed the violation did not hold a
 certificate of completion from a state certified tobacco sales  training
 program  and  one  point  where  the retail dealer demonstrates that the
 person who committed the violation held a certificate of completion from
 a state certified tobacco sales training program.
   (b) Revocation. If an enforcement officer determines, after a hearing,
 that a retail dealer has violated  this  article  four  times  within  a
 three-year time frame he or she shall, in addition to imposing any other
 penalty  required  or permitted by this section, direct the commissioner
 of taxation and finance to revoke  the  dealer's  registration  for  one
 year.
   (c)  Duration  of  points. Points assigned to a retail dealer's record
 shall be assessed for a period of thirty-six  months  beginning  on  the
 first day of the month following the assignment of points.
   (d) Reinspection. Any retail dealer who is assigned points pursuant to
 paragraph  (a)  of  this  subdivision  shall be reinspected at least two
 times a year by an enforcement officer until points assessed are removed
 from the retail dealer's record.
   (e) Suspension. If the authority determines that a retail  dealer  has
 accumulated three points or more, the authority shall direct the commis-
 sioner of taxation and finance to suspend such dealer's registration for
 one  year.  The three points serving as the basis for a suspension shall
 be erased upon the completion of the one year penalty.
   (f) Surcharge. A two hundred fifty dollar surcharge to be assessed for
 every violation will be made available to enforcement officers and shall
 be used solely for  compliance  checks  to  be  conducted  to  determine
 compliance with this section.
   4.  (a)  If an enforcement officer determines, after a hearing, that a
 retail dealer has violated this article  while  their  registration  was
 suspended  pursuant  to  subdivision  three  of  this section, he or she
 shall, in addition to imposing any other penalty required  or  permitted
 by  this  section,  direct  the  commissioner of taxation and finance to
 permanently revoke the dealer's registration and not permit  the  dealer
 to obtain a new registration.
   (b)  If  an  enforcement  officer  determines, after a hearing, that a
 vending machine operator has violated this article three times within  a
 two-year  period, or four or more times cumulatively he or she shall, in
 addition to imposing any other penalty required  or  permitted  by  this
 section,  direct the commissioner of taxation and finance to suspend the
 vendor's registration for one year and not permit the vendor to obtain a
 new registration for such period.
   5. The authority shall publish a notification of the name and  address
 of  any  retailer  violating the provisions of this section and indicate
 the number of times the dealer  has  violated  the  provisions  of  this
 section.  The  notification shall be published in a newspaper of general
 circulation in the locality in which the retailer is located.
   6. (a) In any proceeding pursuant to subdivision three of this section
 to assign points to a retail dealer's record, the retail dealer shall be
 assigned one point instead of two points where the retail dealer  demon-
 strates  that  the person who committed the violation of section thirty-
 one of this article held a valid certificate of completion from a  state
 certified tobacco sales training program.
 A. 10408                           18
 
   (b)  A  state  certified  tobacco sales training program shall include
 instruction in the following elements:
   (1) the health effects of tobacco use, especially at a young age;
   (2)  the legal purchase age and the additional requirements of section
 thirty-one of this article;
   (3) legal forms of identification and the key features thereof;
   (4) reliance upon legal forms  of  identification  and  the  right  to
 refuse sales when acting in good faith;
   (5) means of identifying fraudulent identification of attempted under-
 age purchasers;
   (6) techniques used to refuse a sale;
   (7)  the  penalties arising out of unlawful sales to underage individ-
 uals; and
   (8) the significant disciplinary action or loss of employment that may
 be imposed by the retail dealer for a violation of the law  or  a  devi-
 ation  from  the  policies of the retail dealer in respect to compliance
 with such law.
   (c) A tobacco sales training program may be given and administered  by
 a  retail  dealer duly registered under section four hundred eighty-a of
 the tax law which operates five or more registered locations, by a trade
 association whose members are registered as retail dealers, by  national
 and  regional  franchisors  who have granted at least five franchises in
 the state to persons who are registered as  such  retail  dealers  by  a
 cooperative  corporation with five or more members who are registered as
 retail dealers and are operating in this  state,  and  by  a  wholesaler
 supplying fifty or more retail dealers. A person or entity administering
 such  training program shall issue certificates of completion to persons
 successfully completing such a training program. Such certificates shall
 be prima facie evidence of the completion of such a training program  by
 the person named therein.
   (d)  A  certificate  of completion may be issued for a period of three
 years, however such certificate shall be  invalidated  by  a  change  in
 employment.
   (e)  Entities authorized pursuant to paragraph (c) of this subdivision
 to give and administer a tobacco sales training  program  may  submit  a
 proposed curriculum, a facsimile of any training aids and materials, and
 a  list of training locations to the authority for review. Training aids
 may include the use of video, computer based instruction, printed  mate-
 rials and other formats deemed acceptable to the authority. The authori-
 ty  shall certify programs which provide instruction in the elements set
 forth in paragraph (b) of this subdivision in  a  clear  and  meaningful
 fashion.    Programs  approved by the authority shall be certified for a
 period of three years at which time an entity may  reapply  for  certif-
 ication.  A  non-refundable  fee  in the amount of three hundred dollars
 shall be paid to the authority with each application.
   § 35. Enforcement. 1. Where a civil penalty for a particular  incident
 has  not  been  imposed  or  an  enforcement action regarding an alleged
 violation for a particular incident is not pending under  section  thir-
 ty-four  of this article, a parent or guardian of a person under twenty-
 one years of age to whom tobacco products, herbal  cigarettes  or  elec-
 tronic  cigarettes  are sold or distributed in violation of this article
 may submit a complaint to an enforcement officer setting forth the  name
 and  address of the alleged violator, the date of the alleged violation,
 the name and address of the complainant and the person under  twenty-one
 years  of  age,  and a brief statement describing the alleged violation.
 The enforcement officer shall notify the alleged violator  by  certified
 A. 10408                           19
 
 or  registered mail, return receipt requested, that a complaint has been
 submitted, and shall set a date, at least fifteen days after the mailing
 of such notice, for a  hearing  on  the  complaint.  Such  notice  shall
 contain the information submitted by the complainant.
   2.  With  respect  to  any  penalty imposed resulting from a complaint
 under this section, an enforcement  officer  other  than  the  authority
 shall  use  fifty  percent  of  such  penalty  collected for educational
 efforts administered by the board or a local  school  district  for  the
 purposes of preventing adolescent tobacco use.
   3.  The  enforcement officer shall promptly notify the commissioner of
 taxation and finance and the director of the division of the lottery  of
 any  determination, made after a hearing, that a violation of this arti-
 cle has occurred together with a  direction  to  such  commissioner  and
 director  with respect to any action to be taken concerning registration
 under section four hundred eighty-a of the tax law and  licensing  under
 section sixteen hundred seven of the tax law.
   §  36.  Out-of-package sales and minimum package sizes. 1. All tobacco
 cigarettes sold or offered for sale by a retail dealer shall be sold  or
 offered for sale in the package, box, carton or other container provided
 by  the manufacturer, importer, or packager which bears all health warn-
 ings required by applicable law and shall adhere to  the  standards  for
 fire  safety for cigarettes promulgated by the office of fire prevention
 and control pursuant to section one hundred fifty-six-c of the executive
 law.
   2. No person engaged in the  business  of  manufacturing,  selling  or
 otherwise  distributing  tobacco  products, herbal cigarettes, cigarette
 wrapping papers, wrapping leaves or tubes, or any agent or  employee  of
 such  person,  shall manufacture or cause to be manufactured for sale in
 this state, or sell or distribute in this  state:  (a)  any  package  or
 other  container  of cigarettes containing fewer than twenty cigarettes;
 (b) any package of roll-your-own tobacco containing less than six-tenths
 of one ounce of tobacco; or (c) any package or other container of  ciga-
 rette  wrapping  papers,  wrapping leaves or tubes, that are or are held
 out to be suitable for use or used as devices to wrap tobacco for  smok-
 ing, containing fewer than twenty sheets, leaves or tubes.
   § 37. Unlawful shipment or transport of cigarettes and vapor products.
 1.  It shall be unlawful for any person engaged in the business of sell-
 ing cigarettes to ship or cause to be  shipped  any  cigarettes  to  any
 person  in  this  state who is not: (a) a person licensed as a cigarette
 tax agent or wholesale dealer under article twenty of  the  tax  law  or
 registered  retail dealer under section four hundred eighty-a of the tax
 law; (b) an export warehouse proprietor pursuant to chapter  52  of  the
 internal  revenue  code  or  an  operator  of a customs bonded warehouse
 pursuant to section 1311 or 1555 of title 19 of the United States  Code;
 or  (c)  a  person  who  is  an officer, employee or agent of the United
 States government, this state or a department,  agency,  instrumentality
 or political subdivision of the United States or this state and presents
 himself  or  herself  as  such, when such person is acting in accordance
 with his or her official duties. For purposes  of  this  subdivision,  a
 person  is  a  licensed or registered agent or dealer described in para-
 graph (a) of this subdivision if his or her name appears on  a  list  of
 licensed  or registered agents or dealers published by the department of
 taxation and finance, or if such person is licensed or registered as  an
 agent or dealer under article twenty of the tax law.
   2.  It  shall  be  unlawful  for any person engaged in the business of
 selling vapor products to ship or cause to be shipped any vapor products
 A. 10408                           20
 
 intended or reasonably expected to be used with or for  the  consumption
 of  nicotine  to  any person in this state who is not: (a) a person that
 receives a certificate of registration as a vapor products dealer  under
 article  twenty-eight-C of the tax law; (b) an export warehouse proprie-
 tor pursuant to chapter 52 of the internal revenue code or  an  operator
 of  a customs bonded warehouse pursuant to section 1311 or 1555 of title
 19 of the United States Code; or (c) a person who is an officer, employ-
 ee or agent of the United States government, this state or a department,
 agency, instrumentality or political subdivision of the United States or
 this state and presents himself or herself as such, when such person  is
 acting  in  accordance  with his or her official duties. For purposes of
 this subdivision, a person is a licensed or registered agent  or  dealer
 described  in  paragraph  (a)  of  this  subdivision  if his or her name
 appears on a list of licensed or  registered  agents  or  vapor  product
 dealers  published by the department of taxation and finance, or if such
 person is licensed or registered as an agent  or  dealer  under  article
 twenty-eight-C of the tax law.
   3. It shall be unlawful for any common or contract carrier to knowing-
 ly  transport cigarettes to any person in this state reasonably believed
 by such carrier to be other than a person described  in  paragraph  (a),
 (b)  or  (c)  of  subdivision  one  of this section. For purposes of the
 preceding sentence, if cigarettes are transported to  a  home  or  resi-
 dence,  it  shall  be  presumed that the common or contract carrier knew
 that such person was not a person described in paragraph (a), (b) or (c)
 of subdivision one of this section. It shall be unlawful for  any  other
 person  to  knowingly  transport cigarettes to any person in this state,
 other than to a person described in paragraph (a), (b) or (c) of  subdi-
 vision  one  of  this  section.  Nothing  in  this  subdivision shall be
 construed to prohibit a person other than a common or  contract  carrier
 from transporting not more than eight hundred cigarettes at any one time
 to  any  person  in  this  state. It shall be unlawful for any common or
 contract carrier to  knowingly  transport  vapor  products  intended  or
 reasonably  expected  to be used with or for the consumption of nicotine
 to any person in this state reasonably believed by such  carrier  to  be
 other  than  a person described in paragraph (a), (b) or (c) of subdivi-
 sion two of this section. For purposes of  the  preceding  sentence,  if
 vapor  products  intended  or reasonably expected to be used with or for
 the consumption of nicotine are transported to a home or  residence,  it
 shall  be  presumed  that  the common or contract carrier knew that such
 person was not a person described in paragraph (a), (b) or (c) of subdi-
 vision two of this section. It shall be unlawful for any other person to
 knowingly transport vapor products intended or reasonably expected to be
 used with or for the consumption of  nicotine  to  any  person  in  this
 state,  other than to a person described in paragraph (a), (b) or (c) of
 subdivision two of this section. Nothing in this  subdivision  shall  be
 construed  to  prohibit a person other than a common or contract carrier
 from transporting vapor products, provided  that  the  amount  of  vapor
 products  intended  or  reasonably  expected  to be used with or for the
 consumption of nicotine shall not exceed  the  lesser  of  five  hundred
 milliliters,  or a total nicotine content of three grams at any one time
 to any person in this state.
   4. When a person engaged in the business of selling  cigarettes  ships
 or  causes  to  be  shipped  any cigarettes to any person in this state,
 other than in the cigarette manufacturer's original container  or  wrap-
 ping, the container or wrapping shall be plainly and visibly marked with
 the word "cigarettes".  When a person engaged in the business of selling
 A. 10408                           21
 
 vapor products ships or causes to be shipped any vapor products intended
 or  reasonably  expected to be used with or for the consumption of nico-
 tine to any person in this state,  other  than  in  the  vapor  products
 manufacturer's original container or wrapping, the container or wrapping
 shall be plainly and visibly marked with the words "vapor products".
   5.  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 or vapor products intended  or  reasonably
 expected  to  be used with or for the consumption of nicotine which have
 been or which are being shipped or  transported  in  violation  of  this
 section,  such  person  is  hereby empowered and authorized to seize and
 take possession of such cigarettes or vapor products intended or reason-
 ably expected to be used with or for the consumption  of  nicotine,  and
 such  cigarettes or vapor products intended or reasonably expected to be
 used with or for the consumption of  nicotine  shall  be  subject  to  a
 forfeiture  action  pursuant  to  the procedures provided for in article
 thirteen-A of the civil practice law  and  rules,  as  if  such  article
 specifically  provided  for  forfeiture  of cigarettes or vapor products
 intended or reasonably expected to be used with or for  the  consumption
 of  nicotine seized pursuant to this section as a pre-conviction forfei-
 ture crime.
   6. Any person who violates the provisions of subdivision one, two,  or
 three of this section shall be guilty of a class A misdemeanor and for a
 second  or  subsequent violation shall be guilty of a class E felony. In
 addition to the criminal penalty, any person who violates the provisions
 of subdivision one, two, three or four of this section shall be  subject
 to  a  civil  penalty  not  to  exceed  the greater of (a) five thousand
 dollars for each such violation; (b) one hundred dollars for  each  pack
 of  cigarettes shipped, caused to be shipped or transported in violation
 of such subdivision; or (c) one hundred dollars for each  vapor  product
 intended  or  reasonably expected to be used with or for the consumption
 of nicotine shipped, caused to be shipped or transported in violation of
 such subdivision.
   7. The attorney general may bring  an  action  to  recover  the  civil
 penalties provided by subdivision six of this section and for such other
 relief  as may be deemed necessary. In addition, the corporation counsel
 of any political subdivision that imposes a tax on cigarettes  or  vapor
 products  intended  or  reasonably  expected  to  used  with  or for the
 consumption of nicotine may bring an action to recover the civil  penal-
 ties  provided  by  subdivision  six  of this section and for such other
 relief as may be deemed necessary with  respect  to  any  cigarettes  or
 vapor  products  intended  or reasonably expected to be used with or for
 the consumption of nicotine shipped, caused to be shipped or transported
 in violation of this section to any person located within such political
 subdivision. All civil penalties obtained in any such  action  shall  be
 retained  by  the  state  or political subdivision bringing such action,
 provided that no person shall be required to pay civil penalties to both
 the state and a political subdivision with respect to the same violation
 of this section.
   § 38. Sale of bidis prohibited. 1. No person shall knowingly  sell  or
 provide  bidis  to  any  other  person.  Notwithstanding that bidis is a
 tobacco product, no other provision  of  law  authorizing  the  sale  of
 tobacco  products,  other  than  subdivision  two of this section, shall
 authorize the sale of bidis. Any person who violates the  provisions  of
 A. 10408                           22
 
 this  subdivision shall be subject to a civil fine of not more than five
 hundred dollars.
   2.  (a)  The  provisions  of subdivision one of this section shall not
 apply to a tobacco business.
   (b) Any person operating a tobacco business wherein bidis is  sold  or
 offered  for  sale  is prohibited from selling such bidis to individuals
 under twenty-one years of age, and shall post in a conspicuous  place  a
 sign  upon which there shall be imprinted the following statement, "SALE
 OF BIDIS TO PERSONS UNDER TWENTY-ONE YEARS OF AGE IS PROHIBITED BY LAW."
 Such sign shall be printed on a white card in red letters at least  one-
 half inch in height.
   (c)  Sales  of  bidis  by  a tobacco business shall be made only to an
 individual who demonstrates, through a driver's license  or  other  non-
 driver  identification card issued by a government entity or educational
 institution indicating that the individual is at least twenty-one  years
 of  age.  Such identification need not be required of any individual who
 reasonably appears to be at least twenty-five years  of  age,  provided,
 however,  that  such  appearance  shall  not constitute a defense in any
 proceeding alleging the sale of a tobacco product to an individual under
 twenty-one years of age.
   (d)(i) Any person operating a tobacco business wherein bidis  is  sold
 or offered for sale may perform a transaction scan as a precondition for
 such purchases.
   (ii)  In  any  instance where the information deciphered by the trans-
 action scan fails to match  the  information  printed  on  the  driver's
 license  or  non-driver  identification card, or if the transaction scan
 indicates that the information is false  or  fraudulent,  the  attempted
 transaction shall be denied.
   (iii)  In  any proceeding pursuant to section thirty-one of this arti-
 cle, it shall be an affirmative defense that such person had produced  a
 driver's  license or non-driver identification card apparently issued by
 a governmental entity, successfully completed that transaction scan, and
 that the bidis had been sold, delivered  or  given  to  such  person  in
 reasonable  reliance  upon  such identification and transaction scan. In
 evaluating the applicability of such affirmative defense the chairperson
 shall take into consideration any written policy adopted and implemented
 by the seller to effectuate the provisions of this  chapter.  Use  of  a
 transaction  scan  shall not excuse any person operating a tobacco busi-
 ness wherein bidis is sold, or the agent or  employee  of  such  person,
 from  the  exercise  of  reasonable diligence otherwise required by this
 chapter. Notwithstanding the  above  provisions,  any  such  affirmative
 defense  shall not be applicable in any civil or criminal proceeding, or
 in any other forum.
   (e) A tobacco business or agent or employee  of  such  business  shall
 only  use  a  device  capable of deciphering any electronically readable
 format, and shall only  use  the  information  recorded  and  maintained
 through the use of such devices, for the purposes contained in paragraph
 (d)  of  this  subdivision.  No tobacco business or agent or employee of
 such business shall  resell  or  disseminate  the  information  recorded
 during  such  a  scan  to  any  third  person. Such prohibited resale or
 dissemination includes but is not limited to any advertising,  marketing
 or  promotional  activities. Notwithstanding the restrictions imposed by
 this paragraph, such records may be released pursuant to a court ordered
 subpoena or pursuant to any other statute that  specifically  authorizes
 the release of such information.  Each violation of this paragraph shall
 be punishable by a civil penalty of not more than one thousand dollars.
 A. 10408                           23
 
   (f) A tobacco business or agent or employee of such business may elec-
 tronically or mechanically record and maintain only the information from
 a  transaction scan necessary to effectuate this section.  Such informa-
 tion shall be limited to the following: (i) name, (ii)  date  of  birth,
 (iii)  driver's  license  or  non-driver identification number, and (iv)
 expiration date.
   (g) As used in this subdivision, "a device capable of deciphering  any
 electronically  readable  format",  "card holder" and "transaction scan"
 shall have the same meanings as are ascribed to such  terms  by  section
 thirty-one of this article.
   §  39.  Sale of gutka prohibited. 1. No person shall knowingly sell or
 provide gutka to any other person under  twenty-one  years  of  age.  No
 other  provision  of law authorizing the sale of tobacco products, other
 than subdivision two of this section, shall authorize the sale of gutka.
 Any person who violates the provisions  of  this  subdivision  shall  be
 subject to a civil penalty of not more than five hundred dollars.
   2.  (a)  The  provisions  of subdivision one of this section shall not
 apply to a tobacco business.
   (b) Any person operating a tobacco business wherein gutka is  sold  or
 offered  for  sale  is prohibited from selling such gutka to individuals
 under twenty-one years of age, and shall post in a conspicuous  place  a
 sign  upon which there shall be imprinted the following statement, "SALE
 OF GUTKA TO PERSONS UNDER TWENTY-ONE YEARS OF AGE IS PROHIBITED BY LAW."
 Such sign shall be printed on a white card in red letters at least  one-
 half inch in height.
   (c)  Sales  of  gutka  by  a tobacco business shall be made only to an
 individual who demonstrates, through a driver's license  or  other  non-
 driver  identification card issued by a government entity or educational
 institution indicating that the individual is at least twenty-one  years
 of  age.  Such identification need not be required of any individual who
 reasonably appears to be at least twenty-five years  of  age,  provided,
 however,  that  such  appearance  shall  not constitute a defense in any
 proceeding alleging the sale of a tobacco product to an individual under
 twenty-one years of age.
   (d) (i) Any person operating a tobacco business wherein gutka is  sold
 or offered for sale may perform a transaction scan as a precondition for
 such purchases.
   (ii)  In  any  instance where the information deciphered by the trans-
 action scan fails to match  the  information  printed  on  the  driver's
 license  or  non-driver  identification card, or if the transaction scan
 indicates that the information is false  or  fraudulent,  the  attempted
 transaction shall be denied.
   (iii)  In any proceeding pursuant to section thirty-four of this arti-
 cle, it shall be an affirmative defense that such person had produced  a
 driver's  license or non-driver identification card apparently issued by
 a governmental entity, successfully completed that transaction scan, and
 that the gutka had been sold, delivered  or  given  to  such  person  in
 reasonable  reliance  upon  such identification and transaction scan. In
 evaluating the applicability of such affirmative defense the chairperson
 shall take into consideration any written policy adopted and implemented
 by the seller to effectuate the provisions of this  chapter.  Use  of  a
 transaction  scan  shall not excuse any person operating a tobacco busi-
 ness wherein gutka is sold, or the agent or  employee  of  such  person,
 from  the  exercise  of  reasonable diligence otherwise required by this
 chapter.   Notwithstanding the above provisions,  any  such  affirmative
 A. 10408                           24
 
 defense  shall not be applicable in any civil or criminal proceeding, or
 in any other forum.
   (e)  A  tobacco  business  or agent or employee of such business shall
 only use a device capable of  deciphering  any  electronically  readable
 format,  and  shall  only  use  the  information recorded and maintained
 through the use of such devices, for the purposes contained in paragraph
 (d) of this subdivision. No tobacco business or  agent  or  employee  of
 such  business  shall  resell  or  disseminate  the information recorded
 during such a scan to  any  third  person.  Such  prohibited  resale  or
 dissemination  includes but is not limited to any advertising, marketing
 or promotional activities. Notwithstanding the restrictions  imposed  by
 this paragraph, such records may be released pursuant to a court ordered
 subpoena  or  pursuant to any other statute that specifically authorizes
 the release of such information.  Each violation of this paragraph shall
 be punishable by a civil penalty of not more than one thousand dollars.
   (f) A tobacco business or agent or employee of such business may elec-
 tronically or mechanically record and maintain only the information from
 a transaction scan necessary to effectuate this section.  Such  informa-
 tion  shall  be  limited to the following: (i) name, (ii) date of birth,
 (iii) driver's license or non-driver  identification  number,  and  (iv)
 expiration date.
   (g)  As used in this subdivision, "a device capable of deciphering any
 electronically readable format", "card holder"  and  "transaction  scan"
 shall  have  the  same meanings as are ascribed to such terms by section
 thirty-one of this article.
   § 40. Sale of flavored products prohibited. 1.  For  the  purposes  of
 this section "flavored product" shall mean any vapor product intended or
 reasonably  expected to be used with or for the consumption of nicotine,
 with a distinguishable taste or aroma, other than the taste or aroma  of
 tobacco,  imparted either prior to or during consumption of such product
 or a component part thereof, including but  not  limited  to  tastes  or
 aromas  relating  to any fruit, chocolate, vanilla, honey, candy, cocoa,
 dessert, alcoholic beverage, mint, wintergreen, menthol, herb or  spice,
 or any concept flavor that imparts a taste or aroma that is distinguish-
 able  from  tobacco  flavor  but  may not relate to any particular known
 flavor. A vapor product intended or reasonably expected to be used  with
 or  for the consumption of nicotine, shall be presumed to be flavored if
 a product's retailer, manufacturer, or a manufacturer's agent or employ-
 ee has made a statement or claim directed to consumers  or  the  public,
 whether  expressed or implied, that such product or device has a distin-
 guishable taste or aroma other than the taste or aroma of tobacco.
   2. No vapor products dealer, or any  agent  or  employee  of  a  vapor
 products dealer, shall sell or offer for sale at retail in the state any
 flavored  vapor  product intended or reasonably expected to be used with
 or for the consumption of nicotine.
   3. Any vapor products dealer, or any agent  or  employee  of  a  vapor
 products  dealer,  who  violates the provisions of this section shall be
 subject to a civil penalty of not more than one hundred dollars for each
 individual package of flavored  vapor  product  intended  or  reasonably
 expected  to  be  used  with  or for the consumption of nicotine sold or
 offered for sale, provided, however, that with respect to a  manufactur-
 er,  it shall be an affirmative defense to a finding of violation pursu-
 ant to this section that such sale or  offer  of  sale,  as  applicable,
 occurred  without the knowledge, consent, authorization, or involvement,
 direct or indirect, of such manufacturer.  Violations  of  this  section
 shall  be  enforced  pursuant  to  section  thirty-five of this article,
 A. 10408                           25
 
 except that any person may submit a complaint to an enforcement  officer
 that a violation of this section has occurred.
   4.  The  provisions  of  this  section  shall  not  apply to any vapor
 products dealer, or any agent or employee of a  vapor  products  dealer,
 who  sells  or  offers for sale, or who possesses with intent to sell or
 offer for sale,  any  flavored  vapor  product  intended  or  reasonably
 expected  to  be  used  with or for the consumption of nicotine that the
 United States food and drug administration  has  authorized  to  legally
 market as defined under 21 U.S.C. § 387j and that has received a premar-
 ket review approval order under 21 U.S.C.  § 387j(c) et seq.
   §  41. Sale in pharmacies. 1. No tobacco product, herbal cigarette, or
 vapor product intended or reasonably expected to be used with or for the
 consumption of nicotine, shall be sold in a  pharmacy  or  in  a  retail
 establishment  that  contains  a  pharmacy  operated  as a department as
 defined by paragraph f of subdivision two of section sixty-eight hundred
 eight of the education law. Provided, however, that such prohibition  on
 the  sale  of  tobacco  products,  herbal  cigarettes, or vapor products
 intended or reasonably expected to be used with or for  the  consumption
 of  nicotine,  shall not apply to any other business that owns or leases
 premises within any building or other  facility  that  also  contains  a
 pharmacy  or a retail establishment that contains a pharmacy operated as
 a department as defined by paragraph f of  subdivision  two  of  section
 sixty-eight hundred eight of the education law.
   2.  The  chairperson  shall  have  sole  jurisdiction  to  enforce the
 provisions of this section. The chairperson  shall  have  the  power  to
 assess  penalties  pursuant  to  a  hearing conducted in accordance with
 section thirty-four of this article. Nothing in this  section  shall  be
 construed  to  prohibit the chairperson from commencing a proceeding for
 injunctive relief to compel compliance with this section.
   § 42. Carrier oils. 1. For the purposes of this section "carrier oils"
 shall mean any ingredient of a vapor product  intended  to  control  the
 consistency  or other physical characteristics of such vapor product, to
 control the consistency or other physical characteristics of  vapor,  or
 to facilitate the production of vapor when such vapor product is used in
 an  electronic  cigarette.  "Carrier oils" shall not include any product
 approved by the United States food and drug administration as a drug  or
 medical device or manufactured and dispensed pursuant to title five-A of
 article thirty-three of the public health law.
   2.  The  chairperson is authorized to promulgate rules and regulations
 governing the sale and distribution of carrier oils that  are  suspected
 of  causing  acute  illness  and  have  been identified as a chemical of
 concern by the United States centers for disease control and prevention.
 Such regulations may, to the extent deemed by the chairperson as  neces-
 sary for the protection of public health, prohibit or restrict the sell-
 ing,  offering for sale, possessing with intent to sell, or distributing
 of carrier oils.
   3. The provisions of this section shall not apply where  preempted  by
 federal law. Furthermore, the provisions of this section shall be sever-
 able,  and  if any phrase, clause, sentence, or provision is declared to
 be invalid, or is preempted by federal law or regulation,  the  validity
 of  the  remainder of this section shall not be affected thereby. If any
 provision of this section is declared to be inapplicable to any specific
 category, type, or kind of carrier oil, the provisions of  this  section
 shall  nonetheless  continue  to apply with respect to all other carrier
 oils.
 A. 10408                           26
 
                                 ARTICLE 4
                           TOBACCO ESCROW FUNDS
 Section 50. Findings and purpose.
         51. Definitions.
         52. Requirements.
   §  50.  Findings  and  purpose.  1. Cigarette smoking presents serious
 public health concerns to the state and to the citizens  of  the  state.
 The  surgeon  general  has  determined  that smoking causes lung cancer,
 heart disease and other serious diseases, and that there are hundreds of
 thousands of tobacco-related deaths in  the  United  States  each  year.
 These  diseases  most  often  do  not  appear until many years after the
 person in question begins smoking.
   2. Cigarette smoking also presents serious financial concerns for  the
 state.  Under  certain  health care programs, the state may have a legal
 obligation to provide medical assistance to eligible persons for  health
 conditions associated with cigarette smoking, and those persons may have
 a legal entitlement to receive such medical assistance.
   3.  Under these programs, the state pays millions of dollars each year
 to provide medical assistance for these persons  for  health  conditions
 associated with cigarette smoking.
   4. It is the policy of the state that financial burdens imposed on the
 state  by  cigarette  smoking  be borne by tobacco product manufacturers
 rather than by the state to the extent that  such  manufacturers  either
 determine  to enter into a settlement with the state or are found culpa-
 ble by the courts.
   5. On November twenty-third, nineteen  hundred  ninety-eight,  leading
 United  States  tobacco  product manufacturers entered into a settlement
 agreement, entitled the "Master Settlement Agreement", with  the  state.
 The master settlement agreement obligates these manufacturers, in return
 for a release of past, present and certain future claims against them as
 described therein, to pay substantial sums to the state (tied in part to
 their  volume  of  sales);  to fund a national foundation devoted to the
 interests of public health; and to make  substantial  changes  in  their
 advertising  and  marketing  practices  and  corporate culture, with the
 intention of reducing underage smoking.
   6. It would be contrary to the policy of the state if tobacco  product
 manufacturers  who  determine  not to enter into such a settlement could
 use a resulting cost advantage to derive large,  short-term  profits  in
 the  years  before  liability  may arise without ensuring that the state
 will have an eventual source of recovery from them if they are proven to
 have acted culpably. It is thus in the interest of the state to  require
 that  such  manufacturers establish a reserve fund to guarantee a source
 of compensation and to prevent such manufacturers from  deriving  large,
 short-term profits and then becoming judgment-proof before liability may
 arise.
   §  51.  Definitions. As used in this article the following terms shall
 mean:
   1. "Adjusted for inflation" means increased  in  accordance  with  the
 formula  for  inflation  adjustment set forth in exhibit C to the master
 settlement agreement.
   2. "Affiliate" means a person  who  directly  or  indirectly  owns  or
 controls,  is  owned  or  controlled by, or is under common ownership or
 control with, another person.  Solely for purposes of  this  definition,
 the  term "owns", "is owned" and "ownership" mean ownership of an equity
 interest, or the equivalent thereof, of ten percent  or  more,  and  the
 A. 10408                           27
 
 term  "person" means an individual, partnership, committee, association,
 corporation or any other organization or group of persons.
   3.  "Allocable share" means allocable share as that term is defined in
 the master settlement agreement.
   4. "Cigarette" means any product that contains nicotine,  is  intended
 to be burned or heated under ordinary conditions of use, and consists of
 or  contains:  (a)  any  roll  of  tobacco  wrapped in any substance not
 containing tobacco, or (b) tobacco, in any form, that is  functional  in
 the  product, which, because of its appearance, the type of tobacco used
 in the filler, or its packaging and labeling, is likely  to  be  offered
 to, or purchased by, consumers as a cigarette; or (c) any roll of tobac-
 co  wrapped  in  any  substance containing tobacco which, because of its
 appearance, the type of tobacco used in the filler, or its packaging and
 labeling, is likely to be offered to, or purchased by,  consumers  as  a
 cigarette  described  in  paragraph  (a)  of  this subdivision. The term
 "cigarette" includes "roll-your-own" (i.e., any tobacco  which,  because
 of  its  appearance, type, packaging or labeling is suitable for use and
 likely to be offered to, or  purchased  by,  consumers  as  tobacco  for
 making  cigarettes).  For  purposes  of  this subdivision 0.09 ounces of
 "roll-your-own" tobacco shall constitute one individual "cigarette".
   5. "Master settlement agreement" means the settlement  agreement  (and
 related  documents)  entered  into  on  November  twenty-third, nineteen
 hundred ninety-eight by the state  and  leading  United  States  tobacco
 product  manufacturers.  A  copy of said agreement, including any amend-
 ments thereto, shall be kept on file by the attorney general, who  shall
 make  it available for inspection and copying pursuant to the provisions
 of article six of the public officers law.
   6. "Qualified escrow fund" means an escrow arrangement with  a  feder-
 ally or state chartered financial institution having no affiliation with
 any  tobacco  product  manufacturer  and  having  assets of at least one
 billion dollars where such  arrangement  requires  that  such  financial
 institution  hold  the  escrowed  funds'  principal  for  the benefit of
 releasing parties and prohibits the tobacco product manufacturer placing
 the funds into escrow from using, accessing or directing the use of  the
 funds'  principal except as consistent with paragraph (b) of subdivision
 two of section fifty-two of this article.
   7. "Released claims" means released claims as that term is defined  in
 the master settlement agreement.
   8. "Releasing parties" means releasing parties as that term is defined
 in the master settlement agreement.
   9.  "Tobacco  product  manufacturer"  means  an  entity that after the
 effective date of this chapter directly (and not exclusively through any
 affiliate):
   (a) manufacturers cigarettes anywhere that such  manufacturer  intends
 to  be  sold  in  the United States, including cigarettes intended to be
 sold in the United States through an importer (except where such import-
 er is an original participating manufacturer (as that term is defined in
 the master settlement  agreement)  that  will  be  responsible  for  the
 payments  under  the  master  settlement  agreement with respect to such
 cigarettes as a result of the provisions of subsections  II(mm)  of  the
 master  settlement  agreement  and  that  pays  the  taxes  specified in
 subsection II(z) of the master settlement agreement, and  provided  that
 the  manufacturer  of  such cigarettes does not market or advertise such
 cigarettes in the United States);
 A. 10408                           28
 
   (b) is the first purchaser anywhere for resale in the United States of
 cigarettes manufactured anywhere that the manufacturer does  not  intend
 to be sold in the United States; or
   (c) becomes a successor of an entity described in paragraph (a) or (b)
 of  this  subdivision. The term "tobacco product manufacturer" shall not
 include an affiliate of  a  tobacco  product  manufacturer  unless  such
 affiliate itself falls within any of the provisions of this paragraph or
 paragraphs (a) or (b) of this subdivision.
   10. "Units sold" means the number of individual cigarettes sold in the
 state  by  the applicable tobacco product manufacturer (whether directly
 or through a distributor, retailer or similar intermediary  or  interme-
 diaries)  during  the  year  in  question,  as  measured by excise taxes
 collected by the state on packs bearing the  excise  tax  stamp  of  the
 state, or on roll-your-own tobacco containers. The commissioner of taxa-
 tion  and  finance shall promulgate such regulations as are necessary to
 ascertain the amount of state excise tax  paid  on  the  cigarettes  and
 roll-your-own  tobacco  of  such  tobacco  product manufacturer for each
 year. Notwithstanding any other provision of law, a failure of  a  ciga-
 rette tax agent or distributor licensed pursuant to section four hundred
 seventy-two  of  the tax law to provide any information required by such
 regulations shall be deemed  a  violation  of  the  regulations  of  the
 commissioner of taxation and finance promulgated under article twenty of
 the  tax  law. Notwithstanding any provision of law to the contrary, the
 commissioner of taxation and  finance  shall  provide  to  the  attorney
 general any information necessary for the administration and enforcement
 of this article, including: (a) returns filed in accordance with article
 twenty or twenty-eight of the tax law (or any other provision of the tax
 law providing for an excise tax on cigarettes or roll-your-own tobacco);
 and (b) in the event the chairperson is unable to ascertain the identity
 of  the  applicable tobacco product manufacturer with respect to partic-
 ular cigarettes or roll-your-own tobacco sold in the state,  the  number
 and brand names of such cigarettes or roll-your-own tobacco, the identi-
 ty  of  the  person from whom the excise tax on such cigarettes or roll-
 your-own tobacco was collected,  and  all  other  available  information
 relating  to such cigarettes or roll-your-own tobacco, to be used by the
 attorney general to ascertain  the  identity  of  such  tobacco  product
 manufacturer and for the administration and enforcement of this article.
 Notwithstanding  any  provision  of  law  to  the contrary, the attorney
 general may redisclose any such information if necessary for the  admin-
 istration or enforcement of this chapter.
   §  52.  Requirements.  Any  tobacco product manufacturer selling ciga-
 rettes to consumers within the state  (whether  directly  or  through  a
 distributor,  retailer  or similar intermediary or intermediaries) after
 the effective date of this chapter shall do one of the following:
   1. become a participating manufacturer (as that  term  is  defined  in
 section II(jj) of the master settlement agreement) and generally perform
 its financial obligations under the master settlement agreement; or
   2.  (a)  place  into a qualified escrow fund by April fifteenth of the
 year following the year in  question  the  following  amounts  (as  such
 amounts are adjusted for inflation):
   (i)  1999:  $.0094241  per  unit sold after the effective date of this
 chapter;
   (ii) 2000: $.0104712 per unit sold;
   (iii) for each of 2001 and 2002: $.0136125 per unit sold;
   (iv) for each of 2003 through 2006: $.0167539 per unit sold;
 A. 10408                           29
 
   (v) for each of 2007 and each  year  thereafter:  $.0188482  per  unit
 sold.
   (b)  a  tobacco  product  manufacturer  that  places funds into escrow
 pursuant to paragraph (a) of this subdivision shall receive the interest
 or other appreciation on such funds as  earned.  Such  funds  themselves
 shall be released from escrow only under the following circumstances:
   (i)  to  pay  a  judgment  or settlement on any released claim brought
 against such tobacco product manufacturer by the state or any  releasing
 party  located  or  residing  in the state. Funds shall be released from
 escrow under this subparagraph: (A) in the  order  in  which  they  were
 placed  into escrow and (B) only to the extent and at the time necessary
 to make payments required under such judgment or settlement;
   (ii) to the extent that a  tobacco  product  manufacturer  establishes
 that the amount it was required to place into escrow on account of units
 sold  in  the  state  in  a  particular year was greater than the master
 settlement agreement payments, as determined pursuant to  section  IX(i)
 of  the  master settlement agreement including after final determination
 of all adjustments, that such manufacturer would have been  required  to
 make  on account of such units sold had it been a participating manufac-
 turer, the excess shall be released from escrow and revert back to  such
 tobacco product manufacturer; or
   (iii) to the extent not released from escrow under subparagraph (i) or
 (ii)  of  this paragraph, funds shall be released from escrow and revert
 back to such tobacco product manufacturer twenty-five  years  after  the
 date on which they were placed into escrow.
   (c)  Each tobacco product manufacturer that elects to place funds into
 escrow pursuant to this subdivision shall annually certify to the attor-
 ney general that it is in compliance with this subdivision.  The  attor-
 ney  general may bring a civil action on behalf of the state against any
 tobacco product manufacturer that fails to place into escrow  the  funds
 required  under  this subdivision. Any tobacco product manufacturer that
 fails in any year to place into escrow the  funds  required  under  this
 subdivision shall:
   (i) be required within fifteen days to place such funds into escrow as
 shall  bring it into compliance with this subdivision. The court, upon a
 finding of a violation of this subdivision, may impose a  civil  penalty
 to  be  paid to the general fund of the state in an amount not to exceed
 five percent of the amount improperly withheld from escrow  per  day  of
 the violation and in a total amount not to exceed one hundred percent of
 the original amount improperly withheld from escrow;
   (ii)  in  the  case of a knowing violation, be required within fifteen
 days to place such funds into escrow as shall bring it  into  compliance
 with  this subdivision. The court, upon a finding of a knowing violation
 of this subdivision, may impose a civil penalty to be paid to the gener-
 al fund of the state in an amount not to exceed fifteen percent  of  the
 amount improperly withheld from escrow per day of the violation and in a
 total  amount not to exceed three hundred percent of the original amount
 improperly withheld from escrow; and
   (iii) in the case of a second knowing violation,  be  prohibited  from
 selling  cigarettes  to  consumers within the state (whether directly or
 through a distributor, retailer or similar intermediary)  for  a  period
 not to exceed two years.
   Each failure to make an annual deposit required under this subdivision
 shall  constitute a separate violation, and the tobacco product manufac-
 turer shall be required to pay the state's  costs  and  attorneys'  fees
 incurred during a successful prosecution under this subdivision.
 A. 10408                           30
 
   §  2.  The executive law is amended by adding a new article 29 to read
 as follows:
                                ARTICLE 29
                      ADULT-USE SUBSTANCES AUTHORITY
 SECTION 827-A. ADULT-USE SUBSTANCES AUTHORITY.
         827-B. APPOINTMENT OF THE ADULT-USE SUBSTANCES AUTHORITY.
         827-C. EXPENSES.
         827-D. REMOVAL.
         827-E. VACANCIES; QUORUM.
         827-F. OFFICERS; EMPLOYEES; OFFICES.
         827-G. DISQUALIFICATIONS  OF MEMBERS AND EMPLOYEES OF THE ADULT-
                  USE SUBSTANCES AUTHORITY.
         827-H. POWERS OF THE ADULT-USE SUBSTANCES AUTHORITY.
         827-I. POWERS AND DUTIES OF THE CHAIRPERSON.
         827-J. OATH OF OFFICE.
   § 827-A. ADULT-USE SUBSTANCES AUTHORITY. THERE SHALL BE ESTABLISHED IN
 THE EXECUTIVE DEPARTMENT AN ADULT-USE SUBSTANCES AUTHORITY WHOSE MEMBERS
 SHALL CONSIST OF A CHAIRPERSON, CHAIRPERSON OF THE TOBACCO, NICOTINE AND
 VAPING AUTHORITY, CHAIRPERSON OF THE CANNABIS CONTROL BOARD  AND  CHAIR-
 PERSON OF THE STATE LIQUOR AUTHORITY.
   § 827-B. APPOINTMENT OF THE ADULT-USE SUBSTANCES AUTHORITY. THE CHAIR-
 PERSON  SHALL  BE  APPOINTED  BY THE GOVERNOR BY AND WITH THE ADVICE AND
 CONSENT OF THE SENATE. THE CHAIRPERSON SHALL SERVE FOR A TERM  OF  THREE
 YEARS  AND  UNTIL HIS OR HER SUCCESSOR HAS BEEN APPOINTED AND QUALIFIED.
 THE CHAIRPERSON SHALL RECEIVE AN ANNUAL SALARY ESTABLISHED IN  PARAGRAPH
 (C)  OF  SUBDIVISION ONE OF SECTION ONE HUNDRED SIXTY-NINE OF THIS CHAP-
 TER, AND  THEIR  EXPENSES  ACTUALLY  AND  NECESSARILY  INCURRED  IN  THE
 PERFORMANCE  OF  THEIR OFFICIAL DUTIES, UNLESS OTHERWISE PROVIDED BY THE
 LEGISLATURE. THE CHAIRPERSON'S SPOUSE OR MINOR CHILD SHALL NOT HAVE  ANY
 INTEREST IN AN ENTITY REGULATED BY THE AUTHORITY.
   §  827-C.  EXPENSES. EACH MEMBER OF THE ADULT-USE SUBSTANCES AUTHORITY
 SHALL BE ENTITLED TO  HIS  OR  HER  EXPENSES  ACTUALLY  AND  NECESSARILY
 INCURRED BY HIM OR HER IN THE PERFORMANCE OF HIS OR HER DUTIES.
   § 827-D. REMOVAL. ANY MEMBER OF THE ADULT-USE SUBSTANCES AUTHORITY MAY
 BE REMOVED BY THE GOVERNOR FOR CAUSE AFTER AN OPPORTUNITY TO BE HEARD. A
 STATEMENT  OF  THE  CAUSE  OF  HIS  OR HER REMOVAL SHALL BE FILED BY THE
 GOVERNOR IN THE OFFICE OF THE SECRETARY OF STATE.
   § 827-E. VACANCIES; QUORUM. 1. IN THE EVENT OF A VACANCY CAUSED BY THE
 DEATH, RESIGNATION, REMOVAL OR DISABILITY OF A CHAIRPERSON, THE  VACANCY
 SHALL  BE  FILLED  BY THE GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF
 THE SENATE FOR THE UNEXPIRED TERM.
   2. (A) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE
 GOVERNOR SHALL DESIGNATE ONE OF THE MEMBERS TO SERVE  AS  ACTING  CHAIR-
 PERSON FOR A PERIOD NOT TO EXCEED SIX MONTHS OR UNTIL A SUCCESSOR CHAIR-
 PERSON  HAS  BEEN  CONFIRMED BY THE SENATE, WHICHEVER COMES FIRST.  UPON
 THE EXPIRATION OF THE SIX-MONTH TERM, IF THE GOVERNOR  HAS  NOMINATED  A
 SUCCESSOR CHAIRPERSON, BUT THE SENATE HAS NOT ACTED UPON THE NOMINATION,
 THE  ACTING  CHAIRPERSON CAN CONTINUE TO SERVE AS ACTING CHAIRPERSON FOR
 AN ADDITIONAL NINETY DAYS OR UNTIL THE GOVERNOR'S SUCCESSOR  CHAIRPERSON
 NOMINATION IS CONFIRMED BY THE SENATE, WHICHEVER COMES FIRST.
   (B)  THE GOVERNOR SHALL PROVIDE IMMEDIATE WRITTEN NOTICE TO THE TEMPO-
 RARY PRESIDENT OF THE SENATE OF THE  DESIGNATION  OF  A  CHAIRPERSON  AS
 ACTING CHAIRPERSON.
   (C) IF (I) THE GOVERNOR HAS NOT NOMINATED A SUCCESSOR CHAIRPERSON UPON
 THE EXPIRATION OF THE SIX MONTH TERM OR (II) THE SENATE DOES NOT CONFIRM
 THE  GOVERNOR'S  SUCCESSOR NOMINATION WITHIN THE ADDITIONAL NINETY DAYS,
 A. 10408                           31
 
 THE MEMBER DESIGNATED AS ACTING CHAIRPERSON SHALL NO LONGER BE  ABLE  TO
 SERVE  AS ACTING CHAIRPERSON AND THE GOVERNOR IS PROHIBITED FROM EXTEND-
 ING THE POWERS OF THAT ACTING CHAIRPERSON OR  FROM  DESIGNATING  ANOTHER
 MEMBER TO SERVE AS ACTING CHAIRPERSON.
   (D)  A  MEMBER  SERVING  AS  THE  ACTING  CHAIRPERSON OF THE ADULT-USE
 SUBSTANCES AUTHORITY SHALL BE DEEMED A STATE  OFFICER  FOR  PURPOSES  OF
 SECTION SEVENTY-THREE OF THE PUBLIC OFFICERS LAW.
   3.  A  MAJORITY  OF  THE MEMBERS OF THE ADULT-USE SUBSTANCES AUTHORITY
 SHALL CONSTITUTE A QUORUM FOR THE PURPOSE  OF  CONDUCTING  THE  BUSINESS
 THEREOF AND A MAJORITY VOTE OF ALL THE MEMBERS IN OFFICE SHALL BE NECES-
 SARY  FOR  ACTION.  PROVIDED,  HOWEVER,  THAT  A MEMBER DESIGNATED AS AN
 ACTING CHAIRPERSON PURSUANT TO SUBDIVISION TWO  OF  THIS  SECTION  SHALL
 HAVE  ONLY  ONE  VOTE  FOR  PURPOSES  OF  CONDUCTING THE BUSINESS OF THE
 ADULT-USE SUBSTANCES AUTHORITY.
   § 827-F. OFFICERS; EMPLOYEES; OFFICES. THE COUNSEL,  SECRETARY,  CHIEF
 EXECUTIVE  OFFICER,  ASSISTANT  CHIEF  EXECUTIVE  OFFICERS, CONFIDENTIAL
 SECRETARIES TO THE CHAIRPERSON AND DEPUTIES SHALL BE IN THE EXEMPT CLASS
 OF THE CIVIL SERVICE. THE OTHER ASSISTANTS AND EMPLOYEES OF  THE  ADULT-
 USE  SUBSTANCES  AUTHORITY  SHALL ALL BE IN THE COMPETITIVE CLASS OF THE
 CIVIL SERVICE.  THE ADULT-USE SUBSTANCES AUTHORITY SHALL HAVE ITS  PRIN-
 CIPAL  OFFICE IN THE CITY OF ALBANY, AND MAY MAINTAIN A BRANCH OFFICE IN
 THE CITIES OF NEW YORK AND BUFFALO AND SUCH OTHER PLACES AS  THE  CHAIR-
 PERSON MAY DEEM NECESSARY.
   §  827-G.  DISQUALIFICATIONS OF MEMBERS AND EMPLOYEES OF THE ADULT-USE
 SUBSTANCES AUTHORITY.  NO MEMBER OF THE ADULT-USE  SUBSTANCES  AUTHORITY
 OR  ANY  OFFICER, DEPUTY, ASSISTANT, INSPECTOR OR EMPLOYEE THEREOF SHALL
 HAVE ANY INTEREST, DIRECT OR INDIRECT, EITHER PROPRIETARY OR BY MEANS OF
 ANY LOAN, MORTGAGE OR LIEN, OR IN ANY OTHER MANNER, IN OR ON  ANY  PREM-
 ISES  WHERE  ALCOHOLIC  BEVERAGES,  TOBACCO PRODUCTS, NICOTINE PRODUCTS,
 CANNABIS PRODUCTS OR VAPING PRODUCTS ARE MANUFACTURED OR SOLD; NOR SHALL
 HE OR SHE HAVE ANY INTEREST, DIRECT OR INDIRECT, IN ANY BUSINESS  WHOLLY
 OR PARTIALLY DEVOTED TO THE MANUFACTURE, SALE, TRANSPORTATION OR STORAGE
 OF  ALCOHOLIC  BEVERAGES,  TOBACCO PRODUCTS, NICOTINE PRODUCTS, CANNABIS
 PRODUCTS OR VAPING PRODUCTS OR OWN ANY STOCK IN  ANY  CORPORATION  WHICH
 HAS  ANY  INTEREST, PROPRIETARY OR OTHERWISE, DIRECT OR INDIRECT, IN ANY
 PREMISES WHERE ALCOHOLIC BEVERAGES, TOBACCO PRODUCTS, NICOTINE PRODUCTS,
 CANNABIS PRODUCTS OR VAPING PRODUCTS ARE MANUFACTURED OR SOLD, OR IN ANY
 BUSINESS WHOLLY OR PARTIALLY DEVOTED TO THE MANUFACTURE, SALE, TRANSPOR-
 TATION OR STORAGE OF ALCOHOLIC  BEVERAGES,  TOBACCO  PRODUCTS,  NICOTINE
 PRODUCTS, CANNABIS PRODUCTS OR VAPING PRODUCTS OR RECEIVE ANY COMMISSION
 OR  PROFIT  WHATSOEVER, DIRECT OR INDIRECT, FROM ANY PERSON APPLYING FOR
 OR RECEIVING ANY LICENSE OR PERMIT PROVIDED FOR IN THE LAWS OF THE STATE
 RELATED TO SUCH ALCOHOLIC BEVERAGES  OR  PRODUCTS,  OR  HOLD  ANY  OTHER
 PUBLIC  OFFICE  IN THE STATE OR IN ANY POLITICAL SUBDIVISION EXCEPT UPON
 THE WRITTEN PERMISSION  OF  THE  ADULT-USE  SUBSTANCES  AUTHORITY,  SUCH
 MEMBER OF THE ADULT-USE SUBSTANCES AUTHORITY OR OFFICER, DEPUTY, ASSIST-
 ANT,  INSPECTOR OR EMPLOYEE THEREOF MAY HOLD THE PUBLIC OFFICE OF NOTARY
 PUBLIC OR MEMBER OF A COMMUNITY BOARD OF EDUCATION IN  THE  CITY  SCHOOL
 DISTRICT  OF  THE  CITY  OF NEW YORK. ANY PERSON WHO VIOLATES ANY OF THE
 PROVISIONS OF THIS SECTION SHALL BE REMOVED.
   § 827-H. POWERS OF THE ADULT-USE SUBSTANCES AUTHORITY.  THE  ADULT-USE
 SUBSTANCES  AUTHORITY  SHALL  HAVE  THE  FOLLOWING FUNCTIONS, POWERS AND
 DUTIES TO:
   1. COORDINATE AND SUPERVISE THE ACTIVITIES OF  THE  TOBACCO,  NICOTINE
 AND  VAPING  AUTHORITY,  THE CANNABIS CONTROL BOARD AND THE STATE LIQUOR
 AUTHORITY.
 A. 10408                           32
 
   2. MAINTAIN LIAISON WITH OTHER PUBLIC OFFICIALS, AGENCIES OR  ENTITIES
 INVOLVED  WITH  (A)  THE  MANUFACTURE,  SALE  OR REGULATION OF ALCOHOLIC
 BEVERAGES, TOBACCO PRODUCTS, NICOTINE  PRODUCTS,  CANNABIS  PRODUCTS  OR
 VAPING PRODUCTS OR (B) EDUCATION PROGRAMS INVOLVED WITH THE ADULT-USE OF
 SUCH BEVERAGES AND PRODUCTS.
   3.  APPROVE OR REFUSE TO APPROVE THE ISSUANCE OF ANY LICENSE OR PERMIT
 PROVIDED FOR UNDER THE ALCOHOLIC BEVERAGE CONTROL LAW, THE CANNABIS  LAW
 OR THE TOBACCO, NICOTINE AND VAPING LAW.
   4.  LIMIT  IN  ITS  DISCRETION THE NUMBER OF LICENSES OR PERMITS TO BE
 ISSUED WITHIN THE STATE OR ANY POLITICAL SUBDIVISION THEREOF AS PROVIDED
 FOR UNDER THE ALCOHOLIC BEVERAGE CONTROL LAW, THE CANNABIS  LAW  OR  THE
 TOBACCO, NICOTINE AND VAPING LAW, AND IN CONNECTION THEREWITH TO PROHIB-
 IT  THE  ACCEPTANCE  OF  APPLICATIONS FOR SUCH LICENSES OR PERMITS WHICH
 HAVE BEEN SO LIMITED.
   5. REVIEW THE REVOCATION, CANCELLATION OR SUSPENSION OF ANY LICENSE OR
 PERMIT ISSUED UNDER THE ALCOHOLIC BEVERAGE CONTROL LAW, THE CANNABIS LAW
 OR THE TOBACCO, NICOTINE AND VAPING LAW.
   6. REVIEW AND ENFORCE A CIVIL PENALTY FOR CAUSE AGAINST ANY HOLDER  OF
 A  LICENSE  OR  PERMIT ISSUED PURSUANT TO THE ALCOHOLIC BEVERAGE CONTROL
 LAW, THE CANNABIS LAW OR THE TOBACCO, NICOTINE AND VAPING LAW.
   7. APPROVE OR REFUSE TO APPROVE ANY RULES AND REGULATIONS  FOR  STAND-
 ARDS  OF PRODUCTION IN ORDER TO ENSURE THE USE OF PROPER INGREDIENTS AND
 METHODS IN THE PRODUCTION OF ANY ALCOHOLIC BEVERAGES, TOBACCO  PRODUCTS,
 NICOTINE  PRODUCTS,  CANNABIS  PRODUCTS OR VAPING PRODUCTS TO BE SOLD OR
 CONSUMED IN THE STATE.
   8. HOLD HEARINGS, SUBPOENA WITNESSES, COMPEL THEIR ATTENDANCE,  ADMIN-
 ISTER  OATHS,  TO EXAMINE ANY PERSON UNDER OATH AND IN CONNECTION THERE-
 WITH TO REQUIRE THE PRODUCTION OF ANY BOOKS OR PAPERS  RELATIVE  TO  THE
 INQUIRY.  A SUBPOENA ISSUED UNDER THIS SECTION SHALL BE REGULATED BY THE
 CIVIL PRACTICE LAW AND RULES.
   9. PROHIBIT, AT ANY TIME OF PUBLIC EMERGENCY, WITHOUT PREVIOUS  NOTICE
 OR  ADVERTISEMENT,  THE  SALE OF ANY OR ALL ALCOHOLIC BEVERAGES, TOBACCO
 PRODUCTS, NICOTINE PRODUCTS, CANNABIS PRODUCTS OR  VAPING  PRODUCTS  FOR
 AND DURING THE PERIOD OF SUCH EMERGENCY.
   10.  DELEGATE  THE POWERS PROVIDED IN THIS SECTION TO THE CHAIRPERSON,
 OR TO SUCH OTHER OFFICERS OR EMPLOYEES  AS  MAY  BE  DESIGNATED  BY  THE
 CHAIRPERSON.
   11.  APPOINT SUCH ADVISORY GROUPS AND COMMITTEES AS IT DEEMS NECESSARY
 TO PROVIDE ASSISTANCE TO THE ADULT-USE SUBSTANCES AUTHORITY TO CARRY OUT
 THE PURPOSES AND OBJECTIVES OF  THIS  ARTICLE,  THE  ALCOHOLIC  BEVERAGE
 CONTROL LAW, THE CANNABIS LAW, OR THE TOBACCO, NICOTINE AND VAPING LAW.
   §  827-I.  POWERS AND DUTIES OF THE CHAIRPERSON. THE CHAIRPERSON SHALL
 HAVE THE FOLLOWING FUNCTIONS, POWERS AND DUTIES TO:
   1. EXERCISE THE POWERS AND PERFORM  THE  DUTIES  IN  RELATION  TO  THE
 ADMINISTRATION  OF  THE  ADULT-USE  SUBSTANCES  AUTHORITY  WHICH ARE NOT
 SPECIFICALLY VESTED BY THIS ARTICLE, INCLUDING BUT NOT LIMITED TO  BUDG-
 ETARY AND FISCAL MATTERS.
   2.  PRESIDE  AT ALL MEETINGS OF THE ADULT-USE SUBSTANCES AUTHORITY AND
 PERFORM THE ADMINISTRATIVE FUNCTIONS OF THE ADULT-USE SUBSTANCES AUTHOR-
 ITY.
   3. APPOINT ANY NECESSARY DEPUTIES,  COUNSELS,  ASSISTANTS,  AND  OTHER
 EMPLOYEES WITHIN THE LIMITS PROVIDED BY APPROPRIATION.
   4.  REMOVE  ANY  EMPLOYEE  OF  THE  ADULT-USE SUBSTANCES AUTHORITY FOR
 CAUSE, AFTER GIVING SUCH EMPLOYEE A COPY OF THE CHARGES AGAINST  HIM  OR
 HER  IN  WRITING,  AND  AN  OPPORTUNITY TO BE HEARD THEREON.  ANY ACTION
 A. 10408                           33
 
 TAKEN UNDER THIS SUBDIVISION SHALL BE SUBJECT TO AND IN ACCORDANCE  WITH
 THE CIVIL SERVICE LAW.
   5.  KEEP  RECORDS  IN  SUCH  FORM  AS  HE  OR SHE MAY PRESCRIBE OF ALL
 LICENSES AND PERMITS ISSUED AND REVOKED WITHIN THE STATE;  SUCH  RECORDS
 SHALL  BE  SO KEPT AS TO PROVIDE READY INFORMATION AS TO THE IDENTITY OF
 ALL LICENSEES INCLUDING THE NAMES  OF  THE  OFFICERS  AND  DIRECTORS  OF
 CORPORATE LICENSES AND THE LOCATION OF ALL LICENSED PREMISES. THE CHAIR-
 PERSON  MAY,  WITH  THE  APPROVAL  OF  THE  COMMISSIONER OF TAXATION AND
 FINANCE, CONTRACT TO FURNISH COPIES  OF  THE  RECORDS  OF  LICENSES  AND
 PERMITS  OF EACH CLASS AND TYPE ISSUED WITHIN THE STATE OR ANY POLITICAL
 SUBDIVISION THEREOF, FOR ANY LICENSE OR PERMIT YEAR OR TERM OF YEARS NOT
 EXCEEDING FIVE YEARS.
   6. INSPECT OR PROVIDE FOR THE INSPECTION OF ANY PREMISES  WHERE  ALCO-
 HOLIC  BEVERAGES, TOBACCO PRODUCTS, NICOTINE PRODUCTS, CANNABIS PRODUCTS
 OR VAPING PRODUCTS ARE MANUFACTURED OR SOLD.
   7. PRESCRIBE FORMS OF APPLICATIONS FOR LICENSES AND PERMITS UNDER THIS
 ARTICLE, THE ALCOHOLIC BEVERAGE CONTROL LAW, THE CANNABIS  LAW,  OR  THE
 TOBACCO,  NICOTINE AND VAPING LAW AND OF ALL REPORTS DEEMED NECESSARY BY
 THE ADULT-USE SUBSTANCES AUTHORITY.
   8. DELEGATE TO THE OFFICERS AND EMPLOYEES OF THE ADULT-USE  SUBSTANCES
 AUTHORITY  SUCH  OF HIS OR HER POWERS AND DUTIES AS HE OR SHE MAY DETER-
 MINE.
   9. ESTABLISH APPROPRIATE PROCEDURES TO ENSURE  THAT  HEARING  OFFICERS
 ARE  SHIELDED  FROM  EX  PARTE COMMUNICATIONS WITH ALLEGED VIOLATORS AND
 THEIR ATTORNEYS AND FROM OTHER EMPLOYEES  OF  THE  ADULT-USE  SUBSTANCES
 AUTHORITY AND SHALL TAKE SUCH OTHER STEPS AS HE OR SHE SHALL DEEM NECES-
 SARY  AND  PROPER  TO SHIELD ITS JUDICIAL PROCESSES FROM UNWARRANTED AND
 INAPPROPRIATE COMMUNICATIONS AND ATTEMPTS TO INFLUENCE.
   § 827-J. OATH OF OFFICE.  EACH  MEMBER  OF  THE  ADULT-USE  SUBSTANCES
 AUTHORITY  SHALL,  BEFORE ENTERING UPON HIS OR HER DUTIES, TAKE AND FILE
 AN OATH OF OFFICE AS PRESCRIBED BY SECTION TEN OF  THE  PUBLIC  OFFICERS
 LAW.
   §  3. Subdivision 1 of section 161 of the executive law, as amended by
 chapter 155 of the laws of 2012, is amended to read as follows:
   1. Each of the following officers, to wit: the secretary of state, the
 comptroller, the commissioner of  taxation  and  finance,  the  attorney
 general,  the public service commission, the commissioner of agriculture
 and markets, the commissioner of transportation, the industrial  commis-
 sioner, the chairman of the state labor relations board, the chairman of
 the  state  liquor  authority, the superintendent of financial services,
 the state commissioner of human  rights,  the  commissioner  of  general
 services,  THE  CHAIRPERSON  OF  THE ADULT-USE SUBSTANCES AUTHORITY, THE
 CHAIRPERSON OF THE  TOBACCO,  NICOTINE  AND  VAPING  AUTHORITY  and  the
 commissioner  of  housing and community renewal may require search to be
 made, in the office of any of the others, or of a county clerk or of the
 clerk of a court of record, for any record, document, or paper, where he
 or she deems it necessary for the  discharge  of  his  or  her  official
 duties,  and a copy thereof, or extracts therefrom, to be made and offi-
 cially certified or exemplified, without  the  payment  of  any  fee  or
 charge.
   §  4.  Section  166 of the executive law, as amended by chapter 299 of
 the laws of 1995 and as further amended by section  104  of  part  A  of
 chapter 62 of the laws of 2011, is amended to read as follows:
   § 166. Record  of  appearances.  Every  regulatory agency of the state
 shall keep a record of appearances before it or  its  appropriate  divi-
 sions  or  bureaus of attorneys, agents and representatives appearing on
 A. 10408                           34
 
 behalf of any person, firm, corporation or association  subject  to  its
 regulatory  jurisdiction,  for  which  they  receive a fee, which record
 shall be open to public inspection. Each regulatory  agency  shall  file
 the  record  with the New York temporary state commission on lobbying on
 forms prescribed by the commission. The record shall be filed  quarterly
 on  the fifteenth day of the month following the end of the quarter. The
 term "regulatory agency" as used in this section shall mean the  depart-
 ment  of  financial  services[, department of financial services], state
 liquor authority, ADULT-USE SUBSTANCES AUTHORITY, TOBACCO, NICOTINE  AND
 VAPING  AUTHORITY,  department of agriculture and markets, department of
 education,  department  of  environmental  conservation,  department  of
 health,  division of housing and community renewal, department of state,
 other than the division of corporations and state records, department of
 public service, the industrial board of appeals  in  the  department  of
 labor and the department of law, other than when the attorney general or
 his  agents  or  employees  are  performing  duties specified in section
 sixty-three of this chapter.
   § 5. Paragraph (c) of subdivision 1 of section 169  of  the  executive
 law,  as  amended  by  section  9 of part A of chapter 60 of the laws of
 2012, is amended to read as follows:
   (c) commissioner of agriculture and markets, commissioner of [alcohol-
 ism and substance abuse services] THE OFFICE OF ADDICTION  SERVICES  AND
 SUPPORTS,  adjutant  general,  commissioner and president of state civil
 service commission, commissioner of economic development, chair  of  the
 energy research and development authority, president of higher education
 services  corporation,  commissioner  of motor vehicles, member-chair of
 board of parole, chair of public employment relations  board,  secretary
 of  state, commissioner of [alcoholism and substance abuse services] THE
 OFFICE OF ADDICTION SERVICES AND SUPPORTS,  executive  director  of  the
 housing  finance  agency, commissioner of housing and community renewal,
 executive director of state insurance fund, commissioner-chair of  state
 liquor  authority, chair of the workers' compensation board, CHAIRPERSON
 OF THE ADULT-USE SUBSTANCES AUTHORITY, CHAIRPERSON OF THE TOBACCO, NICO-
 TINE AND VAPING AUTHORITY;
   § 6. The opening paragraph of section 270 of  the  executive  law,  as
 amended  by  chapter  297  of  the  laws  of 2016, is amended to read as
 follows:
   The head of the alcoholic beverage control division WITHIN THE  ADULT-
 USE  SUBSTANCES  AUTHORITY  shall  be  the  state liquor authority whose
 members shall consist of a chairman and two commissioners, who shall  be
 appointed  by  the  governor,  by and with the advice and consent of the
 senate.
   § 7. Paragraph (f) of subdivision 1 and the third  undesignated  para-
 graph  of subdivision 3-a of section 296 of the executive law, paragraph
 (f) of subdivision 1 as amended by chapter 365 of the laws of  2015  and
 the  third undesignated paragraph of subdivision 3-a as amended by chap-
 ter 296 of the laws of 1984, are amended to read as follows:
   (f) Nothing in this subdivision shall affect any restrictions upon the
 activities of persons licensed by the  state  liquor  authority  OR  THE
 TOBACCO,  NICOTINE  AND  VAPING  AUTHORITY with respect to persons under
 twenty-one years of age.
   The provisions of this subdivision shall not  affect  any  restriction
 upon the activities of persons licensed by the state liquor authority OR
 THE TOBACCO, NICOTINE AND VAPING AUTHORITY with respect to persons under
 twenty-one years of age.
 A. 10408                           35
 
   §  8. Subdivision 4 of section 296-c of the executive law, as added by
 chapter 97 of the laws of 2014, is amended to read as follows:
   4.  Nothing  in  this  section  shall affect any restrictions upon the
 activities of persons licensed by the  state  liquor  authority  OR  THE
 TOBACCO,  NICOTINE  AND  VAPING  AUTHORITY with respect to persons under
 twenty-one years of age.
   § 9. Articles 13-F and 13-G of the public health law are REPEALED.
   § 10. The public health law is amended by adding a new article 13-F to
 read as follows:
                               ARTICLE 13-F
         TOBACCO USE AND VAPING AWARENESS AND PREVENTION PROGRAMS
 SECTION 1399-AA. TOBACCO AND VAPOR PRODUCT USE  PREVENTION  AND  CONTROL
                    PROGRAM.
         1399-BB. ELECTRONIC  CIGARETTE  AND VAPING PREVENTION, AWARENESS
                    AND CONTROL PROGRAM.
   § 1399-AA. TOBACCO  AND  VAPOR  PRODUCT  USE  PREVENTION  AND  CONTROL
 PROGRAM.  1.  TO IMPROVE THE HEALTH, QUALITY OF LIFE, AND ECONOMIC WELL-
 BEING OF ALL NEW YORK STATE CITIZENS, THERE IS HEREBY ESTABLISHED WITHIN
 THE DEPARTMENT AND IN CONSULTATION AND COLLABORATION WITH  THE  TOBACCO,
 NICOTINE  AND  VAPING  AUTHORITY  A  COMPREHENSIVE STATEWIDE TOBACCO AND
 VAPOR PRODUCT USE PREVENTION AND CONTROL PROGRAM.
   2. THE BOARD SHALL SUPPORT TOBACCO AND VAPOR  PRODUCT  USE  PREVENTION
 AND CONTROL ACTIVITIES INCLUDING, BUT NOT LIMITED TO:
   (A) COMMUNITY PROGRAMS TO PREVENT AND REDUCE TOBACCO USE THROUGH LOCAL
 INVOLVEMENT AND PARTNERSHIPS;
   (B) SCHOOL-BASED PROGRAMS TO PREVENT AND REDUCE TOBACCO USE AND USE OF
 VAPOR PRODUCTS;
   (C) MARKETING AND ADVERTISING TO DISCOURAGE TOBACCO, VAPOR PRODUCT AND
 LIQUID NICOTINE USE;
   (D) NICOTINE CESSATION PROGRAMS FOR YOUTH AND ADULTS;
   (E)  SPECIAL  PROJECTS TO REDUCE THE DISPARITIES IN SMOKING PREVALENCE
 AMONG VARIOUS POPULATIONS;
   (F)  RESTRICTION  OF  YOUTH  ACCESS  TO  TOBACCO  PRODUCTS  AND  VAPOR
 PRODUCTS;
   (G) SURVEILLANCE OF SMOKING AND VAPING RATES; AND
   (H) ANY OTHER ACTIVITIES DETERMINED BY THE CHAIRPERSON TO BE NECESSARY
 TO IMPLEMENT THE PROVISIONS OF THIS SECTION.
   SUCH PROGRAMS SHALL BE SELECTED BY THE CHAIRPERSON THROUGH AN APPLICA-
 TION PROCESS WHICH TAKES INTO ACCOUNT WHETHER A PROGRAM UTILIZES METHODS
 RECOGNIZED  AS  EFFECTIVE  IN REDUCING NICOTINE USE. ELIGIBLE APPLICANTS
 MAY INCLUDE, BUT NOT BE LIMITED TO, A HEALTH CARE PROVIDER,  SCHOOLS,  A
 COLLEGE OR UNIVERSITY, A LOCAL PUBLIC HEALTH DEPARTMENT, A PUBLIC HEALTH
 ORGANIZATION, A HEALTH CARE PROVIDER ORGANIZATION, ASSOCIATION OR SOCIE-
 TY, MUNICIPAL CORPORATION, OR A PROFESSIONAL EDUCATION ORGANIZATION.
   3. (A) THERE SHALL BE ESTABLISHED A TOBACCO USE PREVENTION AND CONTROL
 ADVISORY  BOARD  TO ADVISE THE CHAIRPERSON ON TOBACCO USE PREVENTION AND
 CONTROL ISSUES AND VAPOR PRODUCT USE AMONGST PERSONS LESS  THAN  TWENTY-
 ONE YEARS OF AGE, INCLUDING METHODS TO PREVENT AND REDUCE TOBACCO USE IN
 THE STATE.
   (B)  THE  BOARD  SHALL  CONSIST  OF  SEVENTEEN  MEMBERS  WHO  SHALL BE
 APPOINTED AS FOLLOWS: NINE MEMBERS BY THE GOVERNOR; THREE MEMBERS BY THE
 SPEAKER OF THE ASSEMBLY; THREE MEMBERS BY THE TEMPORARY PRESIDENT OF THE
 SENATE AND ONE MEMBER EACH BY THE MINORITY LEADER OF THE SENATE AND  THE
 MINORITY  LEADER  OF THE ASSEMBLY. ANY VACANCY OR SUBSEQUENT APPOINTMENT
 SHALL BE FILLED IN THE SAME MANNER AND BY THE SAME APPOINTING  AUTHORITY
 A. 10408                           36
 
 AS  THE  ORIGINAL  APPOINTMENT.  THE  CHAIRPERSON  OF THE BOARD SHALL BE
 DESIGNATED BY THE GOVERNOR FROM AMONG THE MEMBERS OF THE BOARD.
   (C)  THE  MEMBERS SHALL SERVE FOR TERMS OF TWO YEARS COMMENCING ON THE
 EFFECTIVE DATE OF THIS SECTION. MEMBERS OF THE BOARD  SHALL  RECEIVE  NO
 COMPENSATION  BUT  SHALL  BE  REIMBURSED FOR REASONABLE TRAVEL AND OTHER
 EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES HEREUNDER.
   (D) THE BOARD SHALL MEET AS OFTEN AS IT DEEMS NECESSARY, BUT  NO  LESS
 THAN  FOUR  TIMES A YEAR. NO NOMINEE TO THE BOARD SHALL HAVE ANY PAST OR
 CURRENT AFFILIATION WITH THE TOBACCO INDUSTRY, VAPOR  PRODUCTS  INDUSTRY
 OR  ANY INDUSTRY, CONTRACTOR, AGENT, OR ORGANIZATION THAT ENGAGES IN THE
 MANUFACTURING, MARKETING, DISTRIBUTING, OR  SALE  OF  TOBACCO  PRODUCTS.
 THE BOARD SHALL BE APPOINTED IN FULL WITHIN NINETY DAYS OF THE EFFECTIVE
 DATE OF THIS SECTION.
   (E)  THE  DEPARTMENT  SHALL PREPARE AND SUBMIT TO THE BOARD A SPENDING
 PLAN FOR THE TOBACCO  AND  VAPOR  PRODUCT  USE  PREVENTION  AND  CONTROL
 PROGRAM AUTHORIZED PURSUANT TO THE PROVISIONS OF SUBDIVISION ONE OF THIS
 SECTION  NO LATER THAN THIRTY DAYS AFTER THE SUBMISSION OF THE BUDGET TO
 THE LEGISLATURE.
   § 1399-BB. ELECTRONIC CIGARETTE AND VAPING PREVENTION,  AWARENESS  AND
 CONTROL  PROGRAM.  THE  COMMISSIONER  SHALL, IN CONSULTATION AND COLLAB-
 ORATION WITH THE COMMISSIONER OF EDUCATION AND THE  CHAIRPERSON  OF  THE
 TOBACCO,  NICOTINE  AND VAPING AUTHORITY, ESTABLISH AND DEVELOP AN ELEC-
 TRONIC CIGARETTE AND VAPING PREVENTION, CONTROL  AND  AWARENESS  PROGRAM
 WITHIN  THE  DEPARTMENT.  SUCH  PROGRAM  SHALL  BE  DESIGNED  TO EDUCATE
 STUDENTS, PARENTS AND SCHOOL PERSONNEL ABOUT THE HEALTH RISKS ASSOCIATED
 WITH VAPOR PRODUCT USE AND CONTROL MEASURES TO REDUCE THE PREVALENCE  OF
 VAPING,  PARTICULARLY  AMONG  PERSONS LESS THAN TWENTY-ONE YEARS OF AGE.
 SUCH PROGRAM SHALL INCLUDE, BUT NOT BE LIMITED TO, THE CREATION OF  AGE-
 APPROPRIATE  INSTRUCTIONAL  TOOLS  AND MATERIALS THAT MAY BE USED BY ALL
 SCHOOLS, AND MARKETING AND ADVERTISING MATERIALS TO DISCOURAGE ELECTRON-
 IC CIGARETTE USE.
   § 11. Subdivision 1 of section 7 of the cannabis  law  is  amended  to
 read as follows:
   1.  The  cannabis control board is hereby created WITHIN THE ADULT-USE
 SUBSTANCES AUTHORITY and shall consist of a chairperson nominated by the
 governor and with the advice and consent of the senate, with  one  vote,
 and  four  other voting board members as provided for in subdivision two
 of this section.
   § 12. Section 8 of the cannabis law is amended to read as follows:
   § 8. Establishment of an office of cannabis management. There is here-
 by established, within the  [division  of  alcoholic  beverage  control]
 ADULT-USE  SUBSTANCES  AUTHORITY,  an  independent  office  of  cannabis
 management, which shall have  exclusive  jurisdiction  to  exercise  the
 powers  and  duties provided by this chapter.  The office shall exercise
 its authority by and through an executive director.
   § 13. Subdivision 1 of section 14 of the cannabis law  is  amended  to
 read as follows:
   1.  The  state  cannabis  advisory board or "advisory board" is estab-
 lished within the office of cannabis management and directed to work  in
 collaboration  with  the  ADULT-USE  SUBSTANCES  AUTHORITY, THE cannabis
 control board and the executive director to advise and issue recommenda-
 tions on the use of medical cannabis, adult-use cannabis and cannabinoid
 hemp and hemp extract in the state of New York,  and  shall  govern  and
 administer  the New York state community grants reinvestment fund pursu-
 ant to section [99-kk] NINETY-NINE-KK of the state finance law.
 A. 10408                           37
 
   § 14. Section 10 of the alcoholic beverage control law, as amended  by
 chapter 297 of the laws of 2016, is amended to read as follows:
   § 10. State liquor authority. There shall continue to be in the [exec-
 utive  department]  ADULT-USE SUBSTANCES AUTHORITY an alcoholic beverage
 control division, the head of which shall be the state liquor  authority
 whose  members shall consist of a chairman and two commissioners, all of
 whom shall be citizens and residents of  the  state.  The  terms  "state
 alcoholic beverage control board", "state board", "liquor authority", or
 "authority", wherever occurring in any of the provisions of this chapter
 or  of  any  other  law, or in any official books, records, instruments,
 rules or papers, shall hereafter mean and  refer  to  the  state  liquor
 authority provided for in this section.
   §  15.  Subdivision  2  of section 19.06 of the mental hygiene law, as
 amended by chapter 283 of the laws  of  2011,  is  amended  to  read  as
 follows:
   2.   Advisory  council  on  underage  alcohol  consumption  and  youth
 substance abuse. There is hereby created an advisory council on underage
 alcohol consumption and youth substance abuse. The council shall consist
 of twenty-one members, who are broadly  representative  of  the  various
 groups  in society which are stakeholders in the effort to combat under-
 age alcohol consumption and youth substance abuse. Seven  members  shall
 be  appointed  by the governor, seven members by the temporary president
 of the senate and seven members by  the  speaker  of  the  assembly.  In
 making such appointments, due consideration shall be given to the recom-
 mendations made by representative civic, educational, legal and advocacy
 groups  and  associations  concerned  with, or otherwise engaged in, the
 representation of the interests of the youth of New  York  state.    The
 commissioner,  the  chairman  of  the state liquor authority, THE CHAIR-
 PERSON OF THE ADULT-USE SUBSTANCES AUTHORITY,  THE  CHAIRPERSON  OF  THE
 TOBACCO,  NICOTINE  AND  VAPING  AUTHORITY,  the  commissioner of mental
 health, the attorney general, the temporary president of the senate  and
 the speaker of the assembly shall be ex-officio members of the council.
   §  16. Subparagraphs (i) and (ii) of paragraph (d) of subdivision 1 of
 section 480-a of the tax law, as added by chapter 799  of  the  laws  of
 1992, are amended to read as follows:
   (i)  The commissioner shall not register retail dealers or such regis-
 tration may be cancelled or suspended by the commissioner [upon  notifi-
 cation that the applicant or retail dealer has been convicted in a crim-
 inal  proceeding of a violation of subdivision five of section 260.20 of
 the penal law or] as directed by  an  enforcement  officer  pursuant  to
 article  [thirteen-F] THREE of the [public health] TOBACCO, NICOTINE AND
 VAPING law. [The clerk of the court shall promptly report  all  criminal
 convictions under subdivision five of section 260.20 of the penal law to
 the  commissioner,  together  with  a  direction  to the commissioner to
 cancel such registration or to suspend it  for  a  specified  period  of
 time.] Anything to the contrary in any law notwithstanding, retail deal-
 ers  shall  have no right to a hearing under this chapter and shall have
 no right to commence a court action or proceeding or to any other  legal
 recourse  against  the  commissioner with respect to any action taken by
 the commissioner under this paragraph, provided nothing herein shall  be
 construed  to  deny  retail dealers a hearing under article [thirteen-F]
 THREE of the [public health] TOBACCO, NICOTINE  AND  VAPING  law  or  to
 prohibit  retail  dealers  from  commencing a court action or proceeding
 against an enforcement officer as defined in section  [thirteen  hundred
 ninety-nine-aa]  TWO of the [public health] TOBACCO, NICOTINE AND VAPING
 law.
 A. 10408                           38
 
   (ii) Anything to the contrary in any law notwithstanding, the  commis-
 sioner  shall  provide upon request to an enforcement officer as defined
 in section [thirteen hundred ninety-nine-aa] TWO of the [public  health]
 TOBACCO,  NICOTINE  AND  VAPING  law such registration information as is
 relevant  and  necessary  for the implementation of article [thirteen-F]
 THREE of the [public health] TOBACCO, NICOTINE AND VAPING law.
   § 17. Subdivisions 1 and 2 of section 480-b of the tax law,  as  added
 by  section  1 of part J of chapter 383 of the laws of 2001, are amended
 to read as follows:
   1. Every tobacco product manufacturer as defined by section  [thirteen
 hundred  ninety-nine-oo] FIFTY-ONE of the [public health] TOBACCO, NICO-
 TINE AND VAPING law whose cigarettes are sold for  consumption  in  this
 state  shall  annually  certify under penalty of perjury that, as of the
 date of such certification, such tobacco product manufacturer: (a) is  a
 participating  manufacturer  as  defined  in  subdivision one of section
 [thirteen hundred  ninety-nine-pp]  FIFTY-TWO  of  the  [public  health]
 TOBACCO,  NICOTINE  AND  VAPING  law;  or (b) is in full compliance with
 subdivision two of section [thirteen hundred  ninety-nine-pp]  FIFTY-TWO
 of  the  [public  health] TOBACCO, NICOTINE AND VAPING law. Such certif-
 ication shall be executed and delivered to the commissioner, the  attor-
 ney  general  and  any  agent  who  affixes New York state cigarette tax
 stamps to cigarettes of such tobacco product  manufacturer,  no  earlier
 than  the  sixteenth day of April and no later than the thirtieth day of
 April of each year, and shall be accompanied by  a  list  setting  forth
 each  of  the cigarette brands of such tobacco product manufacturer sold
 for consumption in New York state.  Agents  shall  retain  such  certif-
 ications for a period of five years.
   2.  An  agent  may not affix, or cause to be affixed, a New York state
 cigarette tax stamp to a package of cigarettes if either: (a) the tobac-
 co product manufacturer of such cigarettes has not provided  such  agent
 with  the  certification required by subdivision one of this section; or
 (b) the commissioner has notified such agent that such  tobacco  product
 manufacturer  is  in violation of section [thirteen hundred ninety-nine-
 pp] FIFTY-TWO of the [public health] TOBACCO, NICOTINE AND  VAPING  law,
 or  has  filed  a  false  certification  under  subdivision  one of this
 section, and such agent has not been notified by the  commissioner  that
 such violation has ceased.
   §  18.  Subdivision  h  of  section 1607 of the tax law, as amended by
 chapter 162 of the laws of 2002 and paragraph 1 as amended by section  7
 of  part  EE  of  chapter  56 of the laws of 2020, is amended to read as
 follows:
   h. A violation of article [thirteen-F] THREE of  the  [public  health]
 TOBACCO, NICOTINE AND VAPING law as provided in this subdivision:
   1.  A license shall be suspended for a period of one year upon notifi-
 cation to the division by the commissioner of health of a lottery  sales
 agent's  accumulation  of  three  or more points pursuant to subdivision
 three of section [thirteen hundred ninety-nine-ee]  THIRTY-FOUR  of  the
 [public health] TOBACCO, NICOTINE AND VAPING law.
   2.  A  license  shall be revoked for one year upon notification to the
 division by the commissioner of health of a lottery sales agent's fourth
 violation of article [thirteen-F] THREE of the [public health]  TOBACCO,
 NICOTINE AND VAPING law within a three year period.
   §  19.  Subdivision  10 of section 1399-n of the public health law, as
 added by chapter 335 of the laws of 2017, is amended to read as follows:
 A. 10408                           39
 
   10. "Electronic cigarette" shall have the same meaning as in  subdivi-
 sion  thirteen of section [thirteen hundred ninety-nine-aa] TWO of [this
 chapter] THE TOBACCO, NICOTINE AND VAPING LAW.
   §  20.  Paragraph  b  of subdivision 5 of section 1399-o of the public
 health law, as added by chapter 102 of the laws of 2017, is  amended  to
 read as follows:
   b. "Electronic cigarette" or "e-cigarette" shall have the same meaning
 as  in  subdivision  [thirteen]  TWENTY-TWO of section [thirteen hundred
 ninety-nine-aa] TWO of [this chapter] THE TOBACCO, NICOTINE  AND  VAPING
 LAW.
   §  21.  The  opening  paragraph  of  paragraph (j) of subdivision 1 of
 section 2807-v of the public health law, as amended  by  section  14  of
 part Y of chapter 56 of the laws of 2020, is amended to read as follows:
   Funds shall be reserved and accumulated from year to year and shall be
 available,  including  income  from  invested  funds,  for  purposes  of
 services and expenses related to  the  tobacco  AND  VAPOR  PRODUCT  use
 prevention  and  control  program  established  pursuant  to  [sections]
 SECTION thirteen hundred [ninety-nine-ii and  thirteen  hundred  ninety-
 nine-jj]  NINETY-NINE-AA  of  this chapter, from the tobacco control and
 insurance initiatives pool established for the following periods in  the
 following amounts:
   §  22. Subdivision 1 of section 399-gg of the general business law, as
 added by chapter 542 of the laws of 2014, is amended to read as follows:
   1. No person, firm or corporation shall sell or  offer  for  sale  any
 electronic  liquid, as defined in paragraph [(e)] (D) of subdivision one
 of section [thirteen hundred ninety-nine-cc] THIRTY-ONE of  the  [public
 health]  TOBACCO,  NICOTINE AND VAPING law, unless the electronic liquid
 is sold or offered for  sale  in  a  child  resistant  bottle  which  is
 designed  to  prevent  accidental  exposure  of  children  to electronic
 liquids.
   § 23. Paragraph (e) of subdivision 1 of section 73 of the public offi-
 cers law, as amended by chapter 155 of the laws of 2012, is  amended  to
 read as follows:
   (e)  The  term "regulatory agency" shall mean the department of finan-
 cial services, state liquor authority, ADULT-USE  SUBSTANCES  AUTHORITY,
 TOBACCO,  NICOTINE  AND  VAPING AUTHORITY, department of agriculture and
 markets, department of education, department of environmental  conserva-
 tion,  department  of health, division of housing and community renewal,
 department of state, other than the division of corporations  and  state
 records,  department  of public service, the industrial board of appeals
 in the department of labor and the department of law,  other  than  when
 the  attorney  general  or his agents or employees are performing duties
 specified in section sixty-three of the executive law.
   § 24. This act shall take effect on  the  one  hundred  eightieth  day
 after  it shall have become a law.  Effective immediately, the addition,
 amendment and/or repeal of any rule  or  regulation  necessary  for  the
 implementation  of  this  act on its effective date are authorized to be
 made on or before such date.