S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4540
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2025
                                ___________
 
 Introduced  by  M. of A. FALL -- read once and referred to the Committee
   on Health
 
 AN ACT to amend the general business law and the public health  law,  in
   relation to packaging requirements for e-liquid products; to amend the
   tax law, in relation to taxes imposed for the sale of vaping products,
   and  the  disbursement  of  such taxes; and to amend the state finance
   law, in relation to establishing a "tobacco and vaping cessation fund"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  399-gg  of the general business law, as added by
 chapter 542 of the laws of 2014, is amended to read as follows:
   § 399-gg. Packaging of electronic liquid. 1. No person, firm or corpo-
 ration shall sell or offer for sale any electronic liquid, as defined in
 paragraph (e) of subdivision one of  section  thirteen  hundred  ninety-
 nine-cc of the public health law, unless [the] SUCH 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.
   2. UPON RECEIPT OF NOTIFICATION FROM THE COMMISSIONER OF  HEALTH  MADE
 PURSUANT TO SUBDIVISION FOUR OF SECTION THIRTEEN HUNDRED NINETY-NINE-GG-
 ONE  OF  THE  PUBLIC  HEALTH LAW, A SELLER UNDER THIS SECTION SHALL HAVE
 NINETY DAYS TO BECOME COMPLIANT WITH SECTION  THIRTEEN  HUNDRED  NINETY-
 NINE-GG-ONE  OF  THE PUBLIC HEALTH LAW. AFTER SUCH DATE, NO PERSON, FIRM
 OR CORPORATION SHALL SELL OR  OFFER  FOR  SALE  ANY  ELECTRONIC  LIQUID,
 UNLESS  THE  PACKAGING  OF  SUCH ELECTRONIC LIQUID IS IN COMPLIANCE WITH
 SUCH SECTION.
   3. Any violation of this section shall be punishable by a civil penal-
 ty not to exceed one thousand dollars.
   § 2. The public  health  law  is  amended  by  adding  a  new  section
 1399-gg-1 to read as follows:
   §  1399-GG-1.  VERIFICATION OF MANUFACTURERS OF E-LIQUIDS. 1.  FOR THE
 PURPOSES OF THIS SECTION, "E-LIQUID" SHALL  HAVE  THE  SAME  MEANING  AS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08707-01-5
              

 A. 4540                             2
 
 PROVIDED BY PARAGRAPH (E) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED
 NINETY-NINE-CC OF THIS ARTICLE.
   2.  FOR  THE  PURPOSES  OF  THIS  SECTION, "SMART DEVICE" SHALL MEAN A
 CELLULAR RADIO TELEPHONE OR OTHER MOBILE  VOICE  COMMUNICATIONS  HANDSET
 DEVICE THAT INCLUDES THE FOLLOWING FEATURES:
   (A) UTILIZES A MOBILE OPERATING SYSTEM;
   (B)  POSSESSES THE CAPABILITY TO UTILIZE MOBILE SOFTWARE APPLICATIONS,
 ACCESS AND BROWSE THE INTERNET, UTILIZE TEXT MESSAGING, UTILIZE  DIGITAL
 VOICE SERVICE, AND SEND AND RECEIVE EMAIL;
   (C) HAS WIRELESS NETWORK CONNECTIVITY; AND
   (D)  IS  CAPABLE  OF  OPERATING  ON  A  LONG-TERM EVOLUTION NETWORK OR
 SUCCESSOR WIRELESS DATA NETWORK COMMUNICATION STANDARDS.
   3. WITHIN ONE HUNDRED TWENTY  DAYS  OF  THE  EFFECTIVE  DATE  OF  THIS
 SECTION, THE COMMISSIONER SHALL:
   (A) CAUSE TO BE CREATED A WEBPAGE ON THE DEPARTMENT'S INTERNET WEBSITE
 WHICH  LISTS  ALL E-LIQUID MANUFACTURERS WHO ARE IN COMPLIANCE WITH BOTH
 FEDERAL AND STATE REGULATIONS; AND
   (B) CREATE AND MAKE AVAILABLE TO MANUFACTURERS  OF  E-LIQUIDS  A  CODE
 WHICH,  WHEN  SCANNED WITH A SMART DEVICE, SHALL OPEN ON SUCH DEVICE THE
 INTERNET WEBPAGE CREATED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION.
   4. UPON COMPLETION OF THE REQUIREMENTS OF SUBDIVISION  THREE  OF  THIS
 SECTION,  THE  COMMISSIONER  SHALL  NOTIFY  SELLERS OF E-LIQUIDS OF SUCH
 COMPLETION, AND OF THE OBLIGATIONS OF SELLERS OF E-LIQUIDS  PROVIDED  BY
 SECTION THREE HUNDRED NINETY-NINE-GG OF THE GENERAL BUSINESS LAW.
   § 3. Section 1181 of the tax law, as amended by chapter 92 of the laws
 of 2021, is amended to read as follows:
   §  1181.  Imposition  of  tax. In addition to any other tax imposed by
 this chapter or other law, there is hereby imposed  a  tax  of  [twenty]
 FORTY-ONE  percent  on  receipts  from the retail sale of vapor products
 sold in this state. The tax is imposed on the purchaser and collected by
 the vapor products dealer as defined in subdivision (b) of section elev-
 en hundred eighty of this article, in trust for and on  account  of  the
 state. The taxes imposed under this section shall not apply to adult-use
 cannabis products subject to tax under article twenty-C of this chapter.
   §  4. Section 1186 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:
   § 1186. Deposit and disposition of revenue. The taxes,  interest,  and
 penalties  imposed  by  this  article  and  collected or received by the
 commissioner shall be deposited daily with such responsible banks, bank-
 ing houses or trust companies, as may be designated by the  comptroller,
 to the credit of the comptroller, WITH TWENTY-ONE PERCENT OF SUCH REVEN-
 UES  DEPOSITED  IN  THE TOBACCO AND VAPING CESSATION FUND ESTABLISHED BY
 SECTION NINETY-SEVEN-BBBBB OF THE STATE FINANCE LAW TO BE DISTRIBUTED BY
 THE COMMISSIONER OF HEALTH IN ACCORDANCE  WITH  SUCH  SECTION,  AND  THE
 REMAINING  AMOUNT  BEING  DEPOSITED in trust for the tobacco control and
 insurance initiatives pool established by section ninety-two-dd  of  the
 state  finance  law  and  distributed  by  the commissioner of health in
 accordance with section  twenty-eight  hundred  seven-v  of  the  public
 health law. Such deposits will be kept separate and apart from all other
 money  in  the  possession  of  the  comptroller.  The comptroller shall
 require adequate security from all such  depositories.    Of  the  total
 revenue  collected or received under this article, the comptroller shall
 retain such amount as the commissioner may determine to be necessary for
 refunds under this article. Provided, however that the  commissioner  is
 authorized  and  directed  to  deduct  from  the amounts [he or she] THE
 COMMISSIONER receives from the registration fees  under  section  eleven
 A. 4540                             3
 
 hundred  eighty-three  of  this article, before deposit into the tobacco
 control and insurance initiatives pool, a reasonable amount necessary to
 effectuate refunds of appropriations of the department to reimburse  the
 department  for the costs incurred to administer, collect and distribute
 the taxes imposed by this article.
   § 5. The state finance law is amended by adding a new section 97-bbbbb
 to read as follows:
   § 97-BBBBB. TOBACCO AND VAPING CESSATION  FUND.  1.  THERE  IS  HEREBY
 ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE  "TOBACCO
 AND VAPING CESSATION FUND".
   2.  SUCH  FUND SHALL CONSIST OF ALL MONEYS REQUIRED TO BE DEPOSITED IN
 THE TOBACCO AND VAPING CESSATION FUND  PURSUANT  TO  THE  PROVISIONS  OF
 SECTION  ELEVEN  HUNDRED  EIGHTY-SIX  OF THE TAX LAW, AND THE AMOUNTS OF
 MONEYS RECEIVED AND DEPOSITED INTO  THE  FUND  FROM  GRANTS,  GIFTS  AND
 BEQUESTS  DURING  THE PRECEDING CALENDAR YEAR, AS CERTIFIED BY THE COMP-
 TROLLER. NOTHING CONTAINED HEREIN SHALL PREVENT THE STATE FROM RECEIVING
 GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF THE  FUND  AS  DEFINED  IN
 THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3.  THE  MONEYS  IN  SUCH FUND SHALL BE KEPT SEPARATE AND SHALL NOT BE
 COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER.
   4. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR,  THE  COMPTROLLER
 SHALL  CERTIFY  TO  THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE,
 THE SPEAKER OF THE ASSEMBLY, THE CHAIR OF THE SENATE  FINANCE  COMMITTEE
 AND  THE  CHAIR  OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE AMOUNT OF
 MONEYS DEPOSITED IN THE TOBACCO AND VAPING  CESSATION  FUND  DURING  THE
 PRECEDING  CALENDAR  YEAR  AS  THE RESULT OF REVENUE DERIVED PURSUANT TO
 SECTION ELEVEN HUNDRED EIGHTY-ONE OF THE TAX LAW, AND FROM GRANTS, GIFTS
 AND BEQUESTS.
   5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR,  COMMENCING  WITH
 THE  FIRST  DAY  OF  FEBRUARY  ONE YEAR AFTER THE EFFECTIVE DATE OF THIS
 SECTION, THE COMMISSIONER OF HEALTH SHALL PROVIDE A  WRITTEN  REPORT  TO
 THE  TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE
 CHAIR OF THE SENATE FINANCE COMMITTEE, THE CHAIR OF  THE  ASSEMBLY  WAYS
 AND  MEANS  COMMITTEE,  THE CHAIR OF THE SENATE COMMITTEE ON HEALTH, THE
 CHAIR OF THE ASSEMBLY HEALTH COMMITTEE, THE STATE  COMPTROLLER  AND  THE
 PUBLIC.  SUCH  REPORT  SHALL  INCLUDE  HOW  THE  MONEYS OF THE FUND WERE
 UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:
   (I) THE AMOUNT OF MONEYS DISBURSED FROM THE FUND;
   (II) RECIPIENTS OF DISBURSEMENTS FROM THE FUND;
   (III) THE AMOUNT DISBURSED TO EACH RECIPIENT;
   (IV) THE PURPOSES FOR WHICH SUCH DISBURSEMENTS WERE GRANTED; AND
   (V) A SUMMARY FINANCIAL PLAN FOR SUCH MONEYS WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING FISCAL YEAR, ALONG WITH THE ACTUAL RESULTS  FROM  THE  PRIOR  FISCAL
 YEAR.
   6.  MONEYS  OF  THE FUND SHALL BE EXPENDED ONLY FOR TOBACCO AND VAPING
 CESSATION RESEARCH AND EDUCATIONAL  PROJECTS  OR  PROGRAMS  DESIGNED  TO
 ENCOURAGE  CESSATION  OF TOBACCO AND VAPING PRODUCT USE. AS USED IN THIS
 SECTION,  "TOBACCO  AND  VAPING  CESSATION  RESEARCH   AND   EDUCATIONAL
 PROJECTS"  MEANS  SCIENTIFIC  RESEARCH  OR  EDUCATIONAL  PROJECTS WHICH,
 PURSUANT TO SECTION TWENTY-FOUR HUNDRED ELEVEN OF THE PUBLIC HEALTH LAW,
 ARE APPROVED BY THE DEPARTMENT OF HEALTH, UPON THE RECOMMENDATION OF THE
 HEALTH RESEARCH SCIENCE  BOARD.  AS  USED  IN  THIS  SECTION,  "PROGRAMS
 DESIGNED TO ENCOURAGE CESSATION OF TOBACCO AND VAPING PRODUCT USE" SHALL
 MEAN PROGRAMS DESIGNED TO HELP USERS OF TOBACCO OR VAPING PRODUCTS CEASE
 A. 4540                             4
 
 THEIR USE OF SUCH PRODUCTS, INCLUDING BUT NOT LIMITED TO THE TOBACCO AND
 VAPOR PRODUCT USE PREVENTION AND CONTROL PROGRAM ESTABLISHED PURSUANT TO
 SECTION THIRTEEN HUNDRED NINETY-NINE-II OF THE PUBLIC HEALTH LAW.
   7.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
 OF HEALTH.
   8.  TO THE EXTENT PRACTICABLE, THE COMMISSIONER OF HEALTH SHALL ENSURE
 THAT ALL MONEYS RECEIVED DURING A FISCAL YEAR ARE EXPENDED PRIOR TO  THE
 END OF THAT FISCAL YEAR.
   § 6. This act shall take effect immediately.