S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1167
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              January 7, 2021
                                ___________
 
 Introduced  by  Sen.  RIVERA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Health
 
 AN ACT to amend the public health law and the tax law,  in  relation  to
   amending  certain  definitions  relating  to  tobacco products; and to
   amend the public health law and the tax law, in relation  to  changing
   the  minimum  pack  sizes  for tobacco products and the tax amount for
   tobacco products
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Subdivision 5 of section 1399-aa of the public health law,
 as  amended  by  chapter  152  of the laws of 2004, is amended and a new
 subdivision 19 is added to read as follows:
   5. "Tobacco products" means one or more cigarettes or  cigars,  bidis,
 chewing  tobacco,  LOOSE TOBACCO, SINGLE-UNIT TOBACCO, powdered tobacco,
 nicotine water or any other tobacco products AND ALSO INCLUDES ANY OTHER
 PRODUCT CONTAINING TOBACCO OR NICOTINE THAT IS INTENDED OR  EXPECTED  TO
 BE  CONSUMED  EXCEPT  FOR ANY SUCH PRODUCT THAT HAS BEEN APPROVED BY THE
 U.S.  FOOD AND DRUG ADMINISTRATION FOR SALE AS A TOBACCO  USE  CESSATION
 PRODUCT  OR  FOR  OTHER  MEDICAL PURPOSES AND IS BEING MARKETED AND SOLD
 SOLELY FOR THAT APPROVED PURPOSE.
   19. "CIGARETTE" MEANS ANY ROLL FOR SMOKING MADE WHOLLY OR IN  PART  OF
 TOBACCO  OR OF ANY OTHER SUBSTANCE, IRRESPECTIVE OF SIZE, SHAPE, APPEAR-
 ANCE, PACKAGING, PRICING, MARKETING OR LABELING AND WHETHER OR NOT  SUCH
 TOBACCO  OR  SUBSTANCE  IS FLAVORED, ADULTERATED OR MIXED WITH ANY OTHER
 INGREDIENT, THE WRAPPER OR COVER OF WHICH IS MADE OF PAPER OR ANY  OTHER
 SUBSTANCE  OR  MATERIAL  BUT  IS NOT MADE IN WHOLE OR IN PART OF TOBACCO
 THAT IS LIKELY TO BE OFFERED TO, PURCHASED BY, OR CONSUMED BY  CONSUMERS
 AS  A  CIGARETTE,  AS  DEFINED  ABOVE,  INCLUDING  ANY  ROLL FOR SMOKING
 CONTAINING TOBACCO WRAPPED IN A SUBSTANCE CONTAINING TOBACCO THAT WEIGHS
 NO MORE THAN FOUR AND A HALF POUNDS PER THOUSAND UNLESS IT IS WRAPPED IN
 WHOLE TOBACCO LEAF AND DOES NOT HAVE AN INTERNAL FILTER.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05348-01-1

 S. 1167                             2
 
   § 2. Subdivisions 1, 2 and 2-a of section 470 of the tax law, subdivi-
 sions 1 and 2 as amended by chapter 728 of the laws  of 2019 and  subdi-
 vision  2-a as added by chapter 552 of the laws of 2008, are amended and
 two new subdivisions 2-c and 2-d are added to read as follows:
   1. "Cigarette." Any roll for smoking made wholly or in part of tobacco
 or of any other substance, irrespective of size [or], shape, APPEARANCE,
 PACKAGING, PRICING, MARKETING OR LABELING and whether or not such tobac-
 co  or substance is flavored, adulterated or mixed with any other ingre-
 dient, the wrapper or cover of which is  made  of  paper  or  any  other
 substance  or  material  but  is not made in whole or in part of tobacco
 THAT IS LIKELY TO BE OFFERED TO, PURCHASED BY, OR CONSUMED BY  CONSUMERS
 AS  A  CIGARETTE,  AS  DEFINED  ABOVE,  INCLUDING  ANY  ROLL FOR SMOKING
 CONTAINING TOBACCO WRAPPED IN A SUBSTANCE CONTAINING TOBACCO THAT WEIGHS
 NO MORE THAN FOUR AND A HALF POUNDS PER THOUSAND UNLESS IT IS WRAPPED IN
 WHOLE TOBACCO LEAF AND DOES NOT HAVE  AN  INTERNAL  FILTER.  "Cigarette"
 shall not include a research tobacco product.
   2.  "Tobacco products." Any cigar, including a little cigar, or tobac-
 co, other than cigarettes, [intended for consumption by  smoking,  chew-
 ing, or as snuff] AND ALSO INCLUDES ANY OTHER PRODUCT CONTAINING TOBACCO
 OR  NICOTINE  THAT IS INTENDED OR EXPECTED TO BE CONSUMED EXCEPT FOR ANY
 SUCH PRODUCT THAT HAS BEEN APPROVED BY THE U.S. FOOD AND  DRUG  ADMINIS-
 TRATION FOR SALE AS A TOBACCO USE CESSATION PRODUCT OR FOR OTHER MEDICAL
 PURPOSES  AND  IS  BEING  MARKETED  AND  SOLD  SOLELY  FOR THAT APPROVED
 PURPOSE. "Tobacco products" shall not include research tobacco products.
   2-a.  "[Roll-your-own]  LOOSE  tobacco."  Any  tobacco  product  that,
 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.   LOOSE TOBACCO SHALL ALSO INCLUDE PIPE TOBACCO,
 ROLL-YOUR-OWN TOBACCO AND ANY OTHER LOOSE TOBACCO USED FOR SMOKING.
   2-C. "SINGLE-UNIT TOBACCO PRODUCTS." ANY  TOBACCO  PRODUCT,  INCLUDING
 FINELY CUT, GROUND OR POWDERED LOOSE TOBACCO OR BLEND CONTAINING TOBACCO
 INTENDED  FOR ORAL CONSUMPTION WITHOUT BEING COMBUSTED, OTHER THAN CIGA-
 RETTES OR CIGARS,  THAT  IS  OFFERED  IN  DISCRETE  SINGLE-USE  TABLETS,
 LOZENGES,  POUCHES,  PILLS, OR OTHER SINGLE-DOSE OR SINGLE-USE UNITS, OR
 IN PACKAGES OF SUCH SINGLE-USE UNITS.
   2-D. "MOIST SNUFF."  FINELY CUT, GROUND OR POWDERED LOOSE  TOBACCO  OR
 BLEND  CONTAINING  TOBACCO  INTENDED  FOR ORAL CONSUMPTION WITHOUT BEING
 COMBUSTED THAT IS NOT A SINGLE-UNIT TOBACCO PRODUCT.
   § 3. Subdivision 2 of section 1399-gg of the  public  health  law,  as
 added by chapter 513 of the laws of 2004, is amended to read as follows:
   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] LOOSE tobacco containing less than
 [six-tenths] SIXTY-FIVE HUNDREDTHS of an ounce of tobacco; [or] (c)  ANY
 PACKAGE  OF CIGARS CONTAINING FEWER THAN FIVE CIGARS; (D) ANY PACKAGE OF
 SINGLE-UNIT TOBACCO, AS DEFINED IN SUBDIVISION  TWO-C  OF  SECTION  FOUR
 HUNDRED  SEVENTY  OF THE TAX LAW, CONTAINING FEWER THAN TWENTY PIECES OF
 SINGLE-USE UNITS; (E) ANY PACKAGE OF MOIST SNUFF CONTAINING LESS THAN AN
 OUNCE OF TOBACCO; OR (F) any package or  other  container  of  cigarette
 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  smoking,
 containing fewer than twenty sheets, leaves or tubes.

 S. 1167                             3
 
   §  4.  Subdivision  1  of  section 471-b of the tax law, as amended by
 section 2 of part QQ-1 of chapter 57 of the laws of 2008, paragraphs (a)
 and (b) as amended by section 18 and paragraph (c) as added  by  section
 19  of  part D of chapter 134 of the laws of 2010, is amended to read as
 follows:
   1.  There  is  hereby  imposed  and shall be paid a tax on all tobacco
 products possessed in this state by any person for sale, except that  no
 tax  shall  be imposed on tobacco products sold under such circumstances
 that this state is without power to impose such  tax,  or  sold  to  the
 United  States, or sold to or by a voluntary unincorporated organization
 of the armed forces of the United States operating a place for the  sale
 of  goods  pursuant to regulations promulgated by the appropriate execu-
 tive agency of the United States, to the extent provided in  such  regu-
 lations  and  policy  statements  of  such  an agency applicable to such
 sales.
   (a) Such tax on tobacco products [other than snuff and little  cigars]
 shall be at the rate of [seventy-five] NINETY-FIVE percent of the whole-
 sale price OR THE MINIMUM RATES AS INDICATED IN PARAGRAPH (B), (C), (D),
 (E)  OR (F) OF THIS SUBDIVISION, WHICHEVER IS HIGHER, and is intended to
 be imposed only once upon the sale of any tobacco products  [other  than
 snuff and little cigars].
   (b)  Such  MINIMUM  tax  on  MOIST snuff shall be at the rate of [two]
 THREE dollars AND SIXTY-THREE CENTS per ounce and a  proportionate  rate
 on  any fractional parts of an ounce[, provided that cans or packages of
 snuff with a net weight of less than one ounce shall  be  taxed  at  the
 equivalent  rate of cans or packages weighing one ounce]. Such tax shall
 be computed based on the net weight as listed by the  manufacturer,  and
 is intended to be imposed only once upon the sale of any MOIST snuff.
   (c)  Such  tax  on  little cigars shall be at the same rate imposed on
 cigarettes under this article and is intended to be  imposed  only  once
 upon the sale of any little cigars.
   (D)  SUCH  MINIMUM TAX ON SINGLE-UNIT TOBACCO PRODUCTS SHALL BE AT THE
 SAME RATE IMPOSED ON CIGARETTES UNDER THIS ARTICLE AND IS INTENDED TO BE
 IMPOSED ONLY ONCE UPON THE SALE OF ANY SINGLE-DOSE OR SINGLE-UNIT TOBAC-
 CO PRODUCTS.
   (E) SUCH MINIMUM TAX ON ANY LOOSE TOBACCO MEANT FOR SMOKING  SHALL  BE
 EQUAL  TO  THE  AMOUNT  OF  THE TOTAL TAX ON A PACK OF TWENTY CIGARETTES
 UNDER THIS ARTICLE PER 0.65 OUNCES WITH A PROPORTIONATE TAX ON ANY OTHER
 WEIGHTS, BASED ON THE NET WEIGHT DETERMINED BY  THE  MANUFACTURER.  SUCH
 TAX  IS  INTENDED  TO  BE  IMPOSED  ONLY ONCE UPON THE SALE OF ANY LOOSE
 TOBACCO.
   (F) SUCH MINIMUM TAX ON CIGARS, OTHER THAN  LITTLE  CIGARS,  SHALL  BE
 EQUAL  TO  THE  AMOUNT  OF  THE TOTAL TAX ON A PACK OF TWENTY CIGARETTES
 UNDER THIS ARTICLE WITH A PROPORTIONATE TAX ON PACKAGES WITH FEWER  THAN
 FIVE CIGARS AND IS INTENDED TO BE IMPOSED ONLY ONCE UPON THE SALE OF ANY
 CIGARS.
   It  shall  be  presumed that all tobacco products within the state are
 subject to tax until the contrary is  established,  and  the  burden  of
 proof  that any tobacco products are not taxable hereunder shall be upon
 the person in possession thereof.
   § 5. This act shall take effect immediately.