S. 8559 2
(C) EVERY VAPOR PRODUCTS DEALER SHALL BE LIABLE FOR THE TAX ON ALL
VAPOR PRODUCTS IN HIS OR HER POSSESSION AT ANY TIME, UPON WHICH TAX HAS
NOT BEEN PAID OR ASSUMED BY A VAPOR PRODUCTS DISTRIBUTOR APPOINTED BY
THE COMMISSIONER OF TAXATION AND FINANCE, AND THE FAILURE OF ANY VAPOR
PRODUCTS DEALER TO PRODUCE AND EXHIBIT TO THE COMMISSIONER OF TAXATION
AND FINANCE OR HIS OR HER AUTHORIZED REPRESENTATIVE UPON DEMAND, AN
INVOICE BY A VAPOR PRODUCTS DISTRIBUTOR FOR ANY VAPOR PRODUCTS IN HIS OR
HER POSSESSION SHALL BE PRESUMPTIVE EVIDENCE THAT THE TAX THEREON HAS
NOT BEEN PAID, AND THAT SUCH DEALER IS LIABLE FOR THE TAX THEREON UNLESS
EVIDENCE OF SUCH INVOICE, PAYMENT OR ASSUMPTION SHALL LATER BE PRODUCED.
§ 3. The tax law is amended by adding a new section 1183-a to read as
follows:
§ 1183-A. VAPOR PRODUCTS DISTRIBUTOR LICENSE AND RENEWAL. (A) EVERY
PERSON WHO INTENDS TO BE A VAPOR PRODUCTS DISTRIBUTOR IN THIS STATE MUST
RECEIVE FROM THE COMMISSIONER A LICENSE PRIOR TO ENGAGING IN BUSINESS.
IN ADDITION TO THE REQUIREMENTS OF SECTION ELEVEN HUNDRED EIGHTY-THREE
OF THIS ARTICLE, A VAPOR PRODUCTS DEALER WHO PURCHASES OR RECEIVES VAPOR
PRODUCTS FROM A MANUFACTURER OR OUT-OF-STATE DISTRIBUTOR SHALL BE
REQUIRED TO OBTAIN A VAPOR PRODUCTS DISTRIBUTOR LICENSE. THE APPLICANT
FOR A VAPOR PRODUCTS DISTRIBUTOR LICENSE MUST ELECTRONICALLY SUBMIT A
PROPERLY COMPLETED APPLICATION FOR A LICENSE FOR EACH LOCATION AT WHICH
THE BUSINESS SHALL BE CONDUCTED IN THIS STATE, ON A FORM PRESCRIBED BY
THE COMMISSIONER, AND SHALL BE ACCOMPANIED BY A NON-REFUNDABLE APPLICA-
TION FEE OF THREE HUNDRED DOLLARS.
(B) A VAPOR PRODUCTS DISTRIBUTOR LICENSE SHALL BE VALID FOR THE CALEN-
DAR YEAR FOR WHICH IT IS ISSUED UNLESS EARLIER SUSPENDED OR REVOKED.
UPON THE EXPIRATION OF THE TERM STATED ON THE LICENSE, SUCH LICENSE
SHALL BE NULL AND VOID. A LICENSE SHALL NOT BE ASSIGNABLE OR TRANSFERA-
BLE AND SHALL BE DESTROYED IMMEDIATELY UPON THE VAPOR PRODUCTS DISTRIBU-
TOR CEASING TO DO BUSINESS AS SPECIFIED IN SUCH LICENSE OR IN THE EVENT
THAT SUCH BUSINESS NEVER COMMENCED.
(C) EVERY VAPOR PRODUCTS DISTRIBUTOR SHALL PUBLICLY DISPLAY IN HIS OR
HER PLACE OF BUSINESS A LICENSE FROM THE DEPARTMENT.
(D)(1) THE COMMISSIONER SHALL REFUSE TO ISSUE A LICENSE TO ANY APPLI-
CANT WHO DOES NOT POSSESS A VALID CERTIFICATE OF AUTHORITY UNDER SECTION
ELEVEN HUNDRED THIRTY-FOUR OF THIS CHAPTER. IN ADDITION, THE COMMISSION-
ER MAY REFUSE TO ISSUE A LICENSE, OR SUSPEND, CANCEL OR REVOKE A LICENSE
ISSUED TO ANY PERSON WHO:
(A) HAS A PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE
HUNDRED SEVENTY-ONE-V OF THIS CHAPTER;
(B) HAS HAD A LICENSE UNDER THIS ARTICLE OR ANY LICENSE OR REGISTRA-
TION PROVIDED FOR IN THIS CHAPTER REVOKED WITHIN ONE YEAR FROM THE DATE
ON WHICH SUCH APPLICATION WAS FILED;
(C) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN
ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED;
(D) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTI-
CLE;
(E) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO BE GIVEN A
REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTICLE WHICH
IS FALSE;
(F) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER
ANY TAX IMPOSED BY THIS ARTICLE; OR
(G) WHOSE PLACE OF BUSINESS IS AT THE SAME PREMISES AS THAT OF A
PERSON WHOSE VAPOR PRODUCTS DISTRIBUTOR LICENSE HAS BEEN REVOKED AND
WHERE SUCH REVOCATION IS STILL IN EFFECT, UNLESS THE APPLICANT OR VAPOR
PRODUCTS DISTRIBUTOR PROVIDES THE COMMISSIONER WITH ADEQUATE DOCUMENTA-
S. 8559 3
TION DEMONSTRATING THAT SUCH APPLICANT OR VAPOR PRODUCTS DISTRIBUTOR
ACQUIRED THE PREMISES OR BUSINESS THROUGH AN ARM'S LENGTH TRANSACTION AS
DEFINED IN PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED
EIGHTY-A OF THIS CHAPTER.
(2) IN ADDITION TO THE GROUNDS PROVIDED IN PARAGRAPH ONE OF THIS
SUBDIVISION, THE COMMISSIONER SHALL REFUSE TO ISSUE A LICENSE AND SHALL
CANCEL OR SUSPEND A LICENSE AS DIRECTED BY AN ENFORCEMENT OFFICER PURSU-
ANT TO ARTICLE THIRTEEN-F OF THE PUBLIC HEALTH LAW. NOTWITHSTANDING ANY
PROVISION OF LAW TO THE CONTRARY, AN APPLICANT WHOSE APPLICATION FOR A
LICENSE IS REFUSED OR A VAPOR PRODUCTS DISTRIBUTOR WHOSE LICENSE IS
CANCELLED OR SUSPENDED UNDER THIS PARAGRAPH 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 COMMIS-
SIONER WITH RESPECT TO SUCH REFUSAL, SUSPENSION OR CANCELLATION;
PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO DENY A
VAPOR PRODUCTS DISTRIBUTOR A HEARING UNDER ARTICLE THIRTEEN-F OF THE
PUBLIC HEALTH LAW OR TO PROHIBIT VAPOR PRODUCTS DISTRIBUTORS FROM
COMMENCING A COURT ACTION OR PROCEEDING AGAINST AN ENFORCEMENT OFFICER
AS DEFINED IN SECTION THIRTEEN HUNDRED NINETY-NINE-AA OF THE PUBLIC
HEALTH LAW.
(E) IF A VAPOR PRODUCTS DISTRIBUTOR LICENSE IS SUSPENDED, CANCELLED OR
REVOKED AND SUCH VAPOR PRODUCTS DISTRIBUTOR DISTRIBUTES OR SELLS VAPOR
PRODUCTS THROUGH MORE THAN ONE PLACE OF BUSINESS IN THIS STATE, THE
VAPOR PRODUCTS DISTRIBUTOR'S LICENSE ISSUED TO THAT PLACE OF BUSINESS
WHERE SUCH VIOLATION OCCURRED SHALL BE SUSPENDED, REVOKED, OR CANCELLED.
PROVIDED, HOWEVER, UPON A VAPOR PRODUCTS DISTRIBUTOR'S THIRD SUSPENSION,
CANCELLATION, OR REVOCATION WITHIN A FIVE-YEAR PERIOD FOR ANY ONE OR
MORE BUSINESSES OWNED OR OPERATED BY THE VAPOR PRODUCTS DISTRIBUTOR,
SUCH SUSPENSION, CANCELLATION, OR REVOCATION OF THE VAPOR PRODUCTS
DISTRIBUTOR'S LICENSE SHALL APPLY TO ALL PLACES OF BUSINESS WHERE HE OR
SHE DISTRIBUTES OR SELLS VAPOR PRODUCTS IN THIS STATE.
(F) EVERY HOLDER OF A LICENSE MUST NOTIFY THE COMMISSIONER OF CHANGES
TO ANY OF THE INFORMATION STATED ON THE LICENSE OR CHANGES TO ANY INFOR-
MATION CONTAINED IN THE APPLICATION FOR THE LICENSE. SUCH NOTIFICATION
MUST BE MADE ON OR BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE
OCCURS AND MUST BE MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE
COMMISSIONER.
(G) EVERY VAPOR PRODUCTS DISTRIBUTOR WHO HOLDS A LICENSE UNDER THIS
ARTICLE SHALL BE REQUIRED TO REAPPLY FOR A LICENSE FOR THE FOLLOWING
CALENDAR YEAR ON OR BEFORE THE TWENTIETH DAY OF SEPTEMBER AND SUCH REAP-
PLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND CONDITIONS,
INCLUDING GROUNDS FOR REFUSAL, AS AN INITIAL LICENSE UNDER THIS ARTICLE,
INCLUDING BUT NOT LIMITED TO THE PAYMENT OF THE THREE HUNDRED DOLLAR
APPLICATION FEE FOR EACH BUSINESS LOCATION.
(H) IN ADDITION TO ANY OTHER PENALTY IMPOSED BY THIS CHAPTER, ANY
VAPOR PRODUCTS DISTRIBUTOR WHO VIOLATES THE PROVISIONS OF THIS SECTION,
(1) FOR A FIRST VIOLATION IS LIABLE FOR A CIVIL FINE NOT LESS THAN FIVE
THOUSAND DOLLARS BUT NOT TO EXCEED TWENTY-FIVE THOUSAND DOLLARS AND SUCH
LICENSE MAY BE SUSPENDED FOR A PERIOD OF NOT MORE THAN SIX MONTHS; AND
(2) FOR A SECOND OR SUBSEQUENT VIOLATION WITHIN THREE YEARS FOLLOWING A
PRIOR VIOLATION OF THIS SECTION, IS LIABLE FOR A CIVIL FINE NOT LESS
THAN TEN THOUSAND DOLLARS BUT NOT TO EXCEED THIRTY-FIVE THOUSAND DOLLARS
AND SUCH LICENSE MAY BE SUSPENDED FOR A PERIOD OF UP TO THIRTY-SIX
MONTHS; OR (3) FOR A THIRD VIOLATION WITHIN A PERIOD OF FIVE YEARS, THE
LICENSE ISSUED TO EACH PLACE OF BUSINESS OWNED OR OPERATED BY THE VAPOR
S. 8559 4
PRODUCTS DISTRIBUTOR IN THIS STATE SHALL BE REVOKED FOR A PERIOD OF UP
TO FIVE YEARS.
§ 4. Section 1184 of the tax law, as added by section 1 of part UU of
chapter 59 of the laws of 2019, is amended to read as follows:
§ 1184. Administrative provisions. (a) [Except as otherwise provided
for in this article, the taxes imposed by this article shall be adminis-
tered and collected in a like manner as and jointly with the taxes
imposed by sections eleven hundred five and eleven hundred ten of this
chapter. In addition, except as otherwise provided in this article, all
of the provisions of article twenty-eight of this chapter (except
sections eleven hundred seven, eleven hundred eight, eleven hundred
nine, and eleven hundred forty-eight) relating to or applicable to the
administration, collection and review of the taxes imposed by such
sections eleven hundred five and eleven hundred ten, including, but not
limited to, the provisions relating to definitions, returns, exemptions,
penalties, tax secrecy, personal liability for the tax, and collection
of tax from the customer, shall apply to the taxes imposed by this arti-
cle so far as such provisions can be made applicable to the taxes
imposed by this article with such limitations as set forth in this arti-
cle and such modifications as may be necessary in order to adapt such
language to the taxes so imposed. Such provisions shall apply with the
same force and effect as if the language of those provisions had been
set forth in full in this article except to the extent that any
provision is either inconsistent with a provision of this article or is
not relevant to the taxes imposed by this article.
(b) Notwithstanding the provisions of subdivision (a) of this section,
the exemptions provided in paragraph ten of subdivision (a) of section
eleven hundred fifteen of this chapter, and the provisions of section
eleven hundred sixteen, except those provided in paragraphs one, two,
three and six of subdivision (a) of such section, shall not apply to the
taxes imposed by this article.] EVERY VAPOR PRODUCTS DISTRIBUTOR SHALL,
ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, FILE WITH THE COMMISSIONER
OF TAXATION AND FINANCE A RETURN ON FORMS TO BE PRESCRIBED AND FURNISHED
BY THE COMMISSIONER, SHOWING THE QUANTITY AND WHOLESALE PRICE OF ALL
VAPOR PRODUCTS IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE BY HIM
OR HER OR MANUFACTURED IN THE STATE BY HIM OR HER, DURING THE PRECEDING
CALENDAR MONTH. EVERY VAPOR PRODUCTS DISTRIBUTOR AUTHORIZED BY THE
COMMISSIONER TO MAKE RETURNS AND PAY THE TAX ON VAPOR PRODUCTS SOLD,
SHIPPED, OR DELIVERED BY HIM OR HER TO ANY PERSON IN THE STATE SHALL
FILE A RETURN SHOWING THE QUANTITY AND WHOLESALE PRICE OF ALL VAPOR
PRODUCTS SO SOLD, SHIPPED, OR DELIVERED DURING THE PRECEDING CALENDAR
MONTH. PROVIDED, HOWEVER, THE COMMISSIONER MAY, IF HE OR SHE DEEMS IT
NECESSARY IN ORDER TO ENSURE THE PAYMENT OF THE TAXES IMPOSED BY THIS
ARTICLE, REQUIRE RETURNS TO BE MADE AT SUCH TIMES AND COVERING SUCH
PERIODS AS HE OR SHE MAY DEEM NECESSARY, AND, BY REGULATION, MAY PERMIT
THE FILING OF RETURNS ON A QUARTERLY, SEMI-ANNUAL OR ANNUAL BASIS, OR
MAY WAIVE THE FILING OF RETURNS BY A VAPOR PRODUCTS DISTRIBUTOR FOR SUCH
TIME AND UPON SUCH TERMS AS HE OR SHE MAY DEEM PROPER IF SATISFIED THAT
NO TAX IMPOSED BY THIS ARTICLE IS OR WILL BE PAYABLE BY HIM OR HER
DURING THE TIME FOR WHICH RETURNS ARE WAIVED. SUCH RETURNS SHALL CONTAIN
SUCH FURTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
(B) EVERY VAPOR PRODUCT DISTRIBUTOR SHALL PAY TO THE COMMISSIONER WITH
THE FILING OF SUCH RETURN THE TAX ON VAPOR PRODUCTS FOR SUCH MONTH
IMPOSED UNDER THIS ARTICLE.
(c) Notwithstanding the provisions of this section or section eleven
hundred forty-six of this chapter, the commissioner may, in his or her
S. 8559 5
discretion, permit the commissioner of health or his or her authorized
representative to inspect any return related to the tax imposed by this
article and may furnish to the commissioner of health any such return or
supply him or her with information concerning an item contained in any
such return, or disclosed by any investigation of a liability under this
article.
§ 5. The tax law is amended by adding two new sections 1184-a and
1184-b to read as follows:
§ 1184-A. ENFORCEMENT. THE COMMISSIONER OR THE COMMISSIONER'S DULY
AUTHORIZED REPRESENTATIVES ARE HEREBY AUTHORIZED:
(A) TO CONDUCT REGULATORY INSPECTIONS DURING NORMAL BUSINESS HOURS OF
ANY PLACE OF BUSINESS, INCLUDING A VEHICLE USED FOR SUCH BUSINESS, WHERE
VAPOR PRODUCTS ARE DISTRIBUTED, PLACED, STORED, SOLD, OR OFFERED FOR
SALE. FOR THE PURPOSES OF THIS SECTION, "PLACE OF BUSINESS" SHALL NOT
INCLUDE A RESIDENCE OR OTHER REAL PROPERTY, OR ANY PERSONAL VEHICLE ON
OR ABOUT SUCH PROPERTY, NOT HELD OUT AS OPEN TO THE PUBLIC OR OTHERWISE
BEING UTILIZED IN A BUSINESS OR COMMERCIAL MANNER, UNLESS PROBABLE CAUSE
EXISTS TO BELIEVE THAT SUCH RESIDENCE, REAL PROPERTY OR VEHICLE IS BEING
USED IN SUCH A BUSINESS OR COMMERCIAL MANNER FOR THE BUYING OR SELLING
OF VAPOR PRODUCTS.
(B) TO EXAMINE ANY VAPOR PRODUCTS AND THE BOOKS, PAPERS, INVOICES, AND
OTHER RECORDS OF ANY PLACE OF BUSINESS OR VEHICLE WHERE VAPOR PRODUCTS
ARE DISTRIBUTED, PLACED, STORED, SOLD OR OFFERED FOR SALE. ANY PERSON IN
POSSESSION, CONTROL OR OCCUPANCY OF ANY SUCH BUSINESS IS REQUIRED TO
GIVE TO THE COMMISSIONER OR THE COMMISSIONER'S DULY AUTHORIZED REPRESEN-
TATIVES, THE MEANS, FACILITIES, AND OPPORTUNITY FOR SUCH EXAMINATIONS.
FOR THE PURPOSES OF THIS SECTION, "PLACE OF BUSINESS" SHALL NOT INCLUDE
A RESIDENCE OR OTHER REAL PROPERTY, OR ANY PERSONAL VEHICLE ON OR ABOUT
SUCH PROPERTY, NOT HELD OUT AS OPEN TO THE PUBLIC OR OTHERWISE BEING
UTILIZED IN A BUSINESS OR COMMERCIAL MANNER, UNLESS PROBABLE CAUSE
EXISTS TO BELIEVE THAT SUCH RESIDENCE, REAL PROPERTY OR VEHICLE IS BEING
USED IN SUCH A BUSINESS OR COMMERCIAL MANNER FOR THE BUYING OR SELLING
OF VAPOR PRODUCTS.
(C) IF ANY PERSON REGISTERED OR WHO HAS OBTAINED A LICENSE UNDER THIS
ARTICLE, OR THEIR AGENTS, REFUSES TO GIVE THE COMMISSIONER, OR THE
COMMISSIONER'S DULY AUTHORIZED REPRESENTATIVES, THE MEANS, FACILITIES
AND OPPORTUNITY FOR THE INSPECTIONS AND EXAMINATIONS REQUIRED BY THIS
SECTION, THE COMMISSIONER, AFTER NOTICE AND AN OPPORTUNITY FOR A HEAR-
ING, MAY REVOKE THEIR LICENSE TO DISTRIBUTE VAPOR PRODUCTS OR TO SELL
VAPOR PRODUCTS AT RETAIL:
(1) FOR A PERIOD OF ONE YEAR FOR THE FIRST SUCH FAILURE;
(2) FOR A PERIOD OF UP TO THREE YEARS FOR A SECOND SUCH FAILURE WITHIN
A PERIOD OF THREE YEARS; AND
(3) FOR A PERIOD OF UP TO SEVEN YEARS FOR A THIRD SUCH FAILURE WITHIN
FIVE YEARS.
(D) THE COMMISSIONER OR THE COMMISSIONER'S DULY AUTHORIZED REPRESEN-
TATIVES SHALL SEIZE ANY NON-TAX-PAID VAPOR PRODUCTS FOUND IN ANY PLACE
OF BUSINESS OR VEHICLE WHERE VAPOR PRODUCTS ARE DISTRIBUTED, PLACED,
STORED, SOLD OR OFFERED FOR SALE BY ANY PERSON WHO DOES NOT POSSESS A
LICENSE AS DESCRIBED IN SECTION ELEVEN HUNDRED EIGHTY-THREE-A OF THIS
ARTICLE.
(E) ALL NON-TAX-PAID VAPOR PRODUCTS SEIZED PURSUANT TO THE AUTHORITY
OF THIS CHAPTER OR ANY OTHER LAW OF THIS STATE SHALL BE TURNED OVER TO
THE DEPARTMENT OR ITS AUTHORIZED REPRESENTATIVE. SUCH SEIZED NON-TAX-
PAID VAPOR PRODUCTS SHALL, AFTER NOTICE AND AN OPPORTUNITY FOR A HEAR-
ING, BE FORFEITED TO THE STATE. IF THE DEPARTMENT DETERMINES THE NON-
S. 8559 6
TAX-PAID VAPOR PRODUCTS CANNOT BE USED FOR LAW ENFORCEMENT PURPOSES, IT
MAY, WITHIN A REASONABLE TIME AFTER THE FORFEITURE OF SUCH NON-TAX-PAID
VAPOR PRODUCTS, UPON PUBLICATION IN THE STATE REGISTRY, DESTROY SUCH
FORFEITED NON-TAX-PAID VAPOR PRODUCTS.
§ 1184-B. GENERAL POWERS OF THE TAX COMMISSION. THE POWERS CONFERRED
UPON THE TAX COMMISSION BY SECTIONS ONE HUNDRED SEVENTY-ONE AND ONE
HUNDRED SEVENTY-ONE-B OF THIS CHAPTER SHALL, SO FAR AS APPLICABLE, BE
EXERCISABLE WITH RESPECT TO THE PROVISIONS OF THIS ARTICLE. SUCH COMMIS-
SION MAY REQUIRE RETURNS TO BE FILED WITH IT AT SUCH TIMES AND CONTAIN-
ING SUCH INFORMATION AS IT MAY PRESCRIBE AND IN SUCH EVENT THE FACT THAT
A PERSON'S NAME IS SIGNED TO THE RETURN SHALL BE PRIMA FACIE EVIDENCE
FOR ALL PURPOSES THAT THE RETURN WAS ACTUALLY SIGNED BY SUCH PERSON.
NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, THE TAX COMMISSION
MAY ENTER INTO AN AGREEMENT WITH ANY CITY OF THIS STATE WHICH IS AUTHOR-
IZED TO IMPOSE A TAX SIMILAR TO THAT IMPOSED BY THIS ARTICLE TO PROVIDE
FOR THE JOINT ADMINISTRATION, IN WHOLE OR IN PART, OF SUCH TAXES.
§ 6. This act shall take effect immediately.