S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4527
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 6, 2025
                                ___________
 
 Introduced by Sens. COMRIE, FERNANDEZ -- read twice and ordered printed,
   and when printed to be committed to the Committee on Budget and Reven-
   ue
 
 AN  ACT  to  amend  the  tax  law,  in relation to the taxation of vapor
   products
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 1180 of the tax law is amended by adding five new
 subdivisions (c), (d), (e), (f), and (g) to read as follows:
   (C) "FLAVORED NICOTINE ANALOGUE PRODUCT" MEANS A FLAVORED VAPOR  PROD-
 UCT THAT CONTAINS A NICOTINE ANALOGUE.
   (D)  "FLAVORED VAPOR PRODUCT" SHALL HAVE THE SAME MEANING AS DESCRIBED
 IN SECTION THIRTEEN HUNDRED NINETY-NINE-MM-1 OF THE PUBLIC HEALTH LAW.
   (E) "NICOTINE ANALOGUE" MEANS A SUBSTANCE:
   (1) (A) THE CHEMICAL STRUCTURE OF WHICH IS  SUBSTANTIALLY  SIMILAR  TO
 THE CHEMICAL STRUCTURE OF NICOTINE; OR
   (B)  WHICH HAS, PURPORTS TO HAVE, OR IS REPRESENTED TO HAVE, AN EFFECT
 ON THE CENTRAL NERVOUS SYSTEM THAT IS SIMILAR TO OR GREATER THAN  EFFECT
 ON THE CENTRAL NERVOUS SYSTEM OF NICOTINE.
   (2)  FACTORS RELEVANT TO DETERMINING WHETHER A SUBSTANCE IS A NICOTINE
 ANALOGUE INCLUDE, BUT ARE NOT LIMITED TO, THE MARKETING, ADVERTISING AND
 LABELING OF THE SUBSTANCE, AND WHETHER THE SUBSTANCE HAS  BEEN  MANUFAC-
 TURED,  FORMULATED,  SOLD,  DISTRIBUTED,  OR MARKETED WITH THE INTENT TO
 AVOID THE PROVISIONS OF THIS SUBDIVISION AND OTHER APPLICABLE PROVISIONS
 OF LAW.
   (F) "VAPOR PRODUCTS DISTRIBUTOR" MEANS ANY PERSON WHO IMPORTS OR CAUS-
 ES TO BE IMPORTED INTO THIS STATE ANY VAPOR PRODUCTS FOR  SALE,  OR  WHO
 MANUFACTURES  ANY  VAPOR PRODUCT IN THIS STATE, AND ANY PERSON WITHIN OR
 WITHOUT THE STATE WHO IS AUTHORIZED BY THE COMMISSIONER TO MAKE  RETURNS
 AND  PAY  THE  TAX ON VAPOR PRODUCTS SOLD, SHIPPED, OR DELIVERED BY SUCH
 PERSON TO ANY PERSON IN THE STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06080-03-5
              

 S. 4527                             2
 
   (G) "WHOLESALE PRICE" MEANS THE PRICE AT WHICH A VAPOR PRODUCTS DEALER
 PURCHASES VAPOR PRODUCTS FROM A VAPOR PRODUCTS DISTRIBUTOR.
   § 2. 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.  (A) In addition to any other tax imposed
 by this chapter or other law, there is hereby imposed a  tax  of  twenty
 percent  on  [receipts  from the retail sale of vapor products sold] THE
 WHOLESALE PRICE OF VAPOR PRODUCTS SOLD BY A VAPOR  PRODUCTS  DISTRIBUTOR
 TO  A  VAPOR  PRODUCTS  DEALER  in this state. The tax is imposed on the
 [purchaser] VAPOR PRODUCTS DEALER and collected by  the  vapor  products
 [dealer  as  defined in subdivision (b) of section eleven hundred eighty
 of this article] DISTRIBUTOR, in trust for and on account of the  state.
 The taxes imposed under this section shall not apply to adult-use canna-
 bis products subject to tax under article twenty-C of this chapter.
   (B)  THE VAPOR PRODUCTS DISTRIBUTOR SHALL BE LIABLE FOR THE PAYMENT OF
 THE TAX ON VAPOR PRODUCTS WHICH THE VAPOR PRODUCTS  DISTRIBUTOR  IMPORTS
 OR  CAUSES  TO  BE  IMPORTED INTO THE STATE, OR WHICH THE VAPOR PRODUCTS
 DISTRIBUTOR MANUFACTURES IN THE STATE, AND EVERY VAPOR PRODUCTS DISTRIB-
 UTOR AUTHORIZED BY THE COMMISSIONER TO MAKE RETURNS AND PAY THE  TAX  ON
 TOBACCO  PRODUCTS  SOLD,  SHIPPED  OR  DELIVERED  BY  THE VAPOR PRODUCTS
 DISTRIBUTOR TO ANY PERSON IN THE STATE SHALL BE LIABLE FOR  THE  PAYMENT
 OF THE TAX ON ALL VAPOR PRODUCTS SO SOLD, SHIPPED OR DELIVERED.
   (C)  EVERY  VAPOR  PRODUCTS  DEALER SHALL BE LIABLE FOR THE TAX ON ALL
 VAPOR PRODUCTS IN THE VAPOR PRODUCTS  DISTRIBUTOR'S  POSSESSION  AT  ANY
 TIME,  UPON  WHICH  TAX HAS NOT BEEN PAID OR ASSUMED BY A VAPOR PRODUCTS
 DISTRIBUTOR APPOINTED BY THE COMMISSIONER, AND THE FAILURE OF ANY  VAPOR
 PRODUCTS  DEALER  TO  PRODUCE  AND  EXHIBIT  TO  THE COMMISSIONER OR THE
 COMMISSIONER'S AUTHORIZED REPRESENTATIVE UPON DEMAND, AN  INVOICE  BY  A
 VAPOR  PRODUCTS DISTRIBUTOR FOR ANY VAPOR PRODUCTS IN THE VAPOR PRODUCTS
 DISTRIBUTOR'S 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 two new sections 1183-a and
 1183-b 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.
 S. 4527                             3
 
   (C)  EVERY  VAPOR  PRODUCTS  DISTRIBUTOR SHALL PUBLICLY DISPLAY IN THE
 VAPOR PRODUCTS DISTRIBUTOR'S  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-
 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  THE
 S. 4527                             4
 
 VAPOR  PRODUCTS  DISTRIBUTOR 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
 PRODUCTS DISTRIBUTOR IN THIS STATE SHALL BE REVOKED FOR A PERIOD  OF  UP
 TO FIVE YEARS.
   § 1183-B. RESTRICTIONS ON SALE.  NO PERSON, INCLUDING A VAPOR PRODUCTS
 DEALER  OR  ANY AGENT OR EMPLOYEE OF A VAPOR PRODUCTS DEALER, SHALL SELL
 OR OFFER FOR SALE AT RETAIL IN THE STATE OR TO ANY PERSON IN  THE  STATE
 ANY FLAVORED NICOTINE ANALOGUE PRODUCT.
   §  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.
 S. 4527                             5

   (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 AUTHOR-
 IZED  BY  THE  COMMISSIONER  TO  MAKE  RETURNS  AND PAY THE TAX ON VAPOR
 PRODUCTS SOLD, SHIPPED, OR DELIVERED BY THE VAPOR  PRODUCTS  DISTRIBUTOR
 TO  A  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  THE  COMMISSIONER  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  THE  COMMISSIONER  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 THE COMMISSIONER MAY DEEM  PROPER  IF  SATISFIED  THAT  NO  TAX
 IMPOSED  BY THIS ARTICLE IS OR WILL BE PAYABLE 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, LESS TWO PERCENT, TO COVER THE DISTRIBUTOR'S
 EXPENSE IN THE COLLECTION AND REMITTANCE OF THE SAID TAX.
   (c) Notwithstanding the provisions of this section or  section  eleven
 hundred forty-six of this chapter, the commissioner may, in [his or her]
 THE COMMISSIONER'S discretion, permit the commissioner of health or [his
 or  her]  SUCH  COMMISSIONER'S  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]  SUCH
 COMMISSIONER  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. (A) THE COMMISSIONER OR THE COMMISSIONER'S DULY
 AUTHORIZED REPRESENTATIVES ARE HEREBY AUTHORIZED:
   (1) TO ENFORCE THE PROVISIONS IN THIS ARTICLE AND  THE  PROVISIONS  IN
 SECTION  THIRTEEN  HUNDRED  NINETY-NINE-MM-1  OF  THE  PUBLIC HEALTH LAW
 CONCERNING FLAVORED VAPOR PRODUCTS.
   (2) 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.
   (3) 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-
 S. 4527                             6
 
 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.
   (B) 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.
   (C)  THE  COMMISSIONER OR THE COMMISSIONER'S DULY AUTHORIZED REPRESEN-
 TATIVES SHALL SEIZE ANY  NON-TAX-PAID  VAPOR  PRODUCTS,  FLAVORED  VAPOR
 PRODUCTS,  OR  FLAVORED NICOTINE ANALOGUE 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.
   (D)  ALL  NON-TAX-PAID  VAPOR  PRODUCTS,  FLAVORED  VAPOR PRODUCTS, OR
 FLAVORED NICOTINE ANALOGUE 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 HEARING, BE
 FORFEITED TO THE STATE. IF THE DEPARTMENT  DETERMINES  THE  NON-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.
   (E) 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 SUCH OFFICER'S SPECIAL
 DUTIES, SHALL DISCOVER ANY FLAVORED VAPOR PRODUCTS OR FLAVORED  NICOTINE
 ANALOGUE PRODUCTS OFFERED FOR RETAIL SALE IN VIOLATION OF THE PROVISIONS
 IN SECTION THIRTEEN HUNDRED NINETY-NINE-MM-1 OF THE PUBLIC HEALTH LAW OR
 SECTION  ELEVEN  HUNDRED  EIGHTY-THREE-B  OF THIS ARTICLE, RESPECTIVELY,
 SUCH POLICE OFFICER OR PEACE OFFICER IS HEREBY AUTHORIZED AND  EMPOWERED
 FORTHWITH  TO  SEIZE AND TAKE POSSESSION OF SUCH FLAVORED VAPOR PRODUCTS
 OR FLAVORED NICOTINE ANALOGUE PRODUCTS. SUCH FLAVORED VAPOR PRODUCTS  OR
 FLAVORED  NICOTINE ANALOGUE PRODUCTS SEIZED BY A POLICE OFFICER OR PEACE
 OFFICER SHALL BE TURNED OVER TO THE COMMISSIONER. SUCH  SEIZED  FLAVORED
 VAPOR PRODUCTS OR FLAVORED NICOTINE ANALOGUE PRODUCTS SHALL BE FORFEITED
 TO  THE  STATE.  IF  THE  DEPARTMENT  DETERMINES  THE  VAPOR PRODUCTS OR
 FLAVORED NICOTINE ANALOGUE PRODUCTS CANNOT BE USED FOR  LAW  ENFORCEMENT
 PURPOSES,  IT MAY, WITHIN A REASONABLE TIME AFTER THE FORFEITURE OF SUCH
 VAPOR PRODUCTS OR FLAVORED  NICOTINE  ANALOGUE  PRODUCTS,  DESTROY  SUCH
 FORFEITED VAPOR PRODUCTS OR FLAVORED NICOTINE ANALOGUE PRODUCTS.
 S. 4527                             7
 
   §  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.