S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1362

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2015
                               ___________

Introduced  by  M.  of  A.  CYMBROWITZ  -- read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to collecting the tax on  ciga-
  rettes; and to repeal section 471-e and subdivision 5 of section 480-a
  of such law relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 8, 9 and 11 of section 470  of  the  tax  law,
subdivision  8  as  amended  by section 1 of part K of chapter 61 of the
laws of 2005, subdivisions 9 and 11 as amended by chapter 61 of the laws
of 1989, are amended and four new subdivisions 20, 21,  22  and  23  are
added to read as follows:
  8.  "Wholesale  dealer." Any person, WHETHER LOCATED WITHIN OR OUTSIDE
OF THIS STATE, who (a) sells cigarettes or tobacco  products  to  retail
dealers  or  other persons for purposes of resale, or (b) owns, operates
or maintains one or more cigarette or tobacco product  vending  machines
in,  at  or  upon premises owned or occupied by any other person, or (c)
sells cigarettes or tobacco products to an Indian nation or tribe or  to
a  reservation  cigarette  seller on a qualified reservation.  SUCH TERM
SHALL NOT INCLUDE ANY CIGARETTE MANUFACTURER, EXPORT WAREHOUSE  PROPRIE-
TOR,  OR  IMPORTER  WITH  A VALID PERMIT UNDER 26 U.S.C. S 5712, IF SUCH
PERSON SELLS OR DISTRIBUTES CIGARETTES IN THIS STATE  ONLY  TO  LICENSED
AGENTS,  OR  TO  AN  EXPORT WAREHOUSE PROPRIETOR OR ANOTHER MANUFACTURER
WITH A VALID PERMIT UNDER 26 U.S.C. S 5712.
  9. "Retail dealer." Any person, WHETHER LOCATED WITHIN OR  OUTSIDE  OF
THIS STATE, other than a wholesale dealer, engaged in selling cigarettes
or tobacco products TO A CONSUMER IN THIS STATE.
  11. "Agent." Any [person] WHOLESALE DEALER licensed by the commission-
er  of  taxation  and  finance  to  purchase and affix adhesive or meter
stamps on packages of cigarettes under this article.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05252-01-5

              

A. 1362                             2

  20. "MANUFACTURER" MEANS  ANY  PERSON  WHO  MANUFACTURES,  FABRICATES,
ASSEMBLES, PROCESSES, OR LABELS A FINISHED CIGARETTE.
  21.  "IMPORTER"  MEANS  ANY PERSON WHO IMPORTS INTO THE UNITED STATES,
EITHER DIRECTLY OR INDIRECTLY, A FINISHED CIGARETTE FOR SALE OR DISTRIB-
UTION.
  22.  "STAMP"  OR  "STAMPS"  MEANS   THE   INDICIA,   INCLUDING   METER
IMPRESSIONS,  REQUIRED TO BE PLACED ON A CIGARETTE PACKAGE THAT EVIDENCE
PAYMENT OF THE TAX ON CIGARETTES UNDER SECTION FOUR HUNDRED  SEVENTY-ONE
OF  THIS  ARTICLE,  OR THE INDICIA, INCLUDING METER IMPRESSIONS, USED TO
INDICATE THAT THE CIGARETTES ARE INTENDED FOR A SALE OR DISTRIBUTION  IN
THIS STATE THAT IS EXEMPT FROM STATE TAX UNDER PARAGRAPH (A) OF SUBDIVI-
SION ONE OF SECTION FOUR HUNDRED SEVENTY-ONE-E OF THIS ARTICLE.
  23.  "LICENSED," WHEN USED WITH REFERENCE TO A MANUFACTURER, IMPORTER,
AGENT, WHOLESALE DEALER OR RETAIL DEALER, MEANS ONLY THOSE  PERSONS  WHO
HOLD  A  VALID  AND  CURRENT  LICENSE  ISSUED UNDER SECTION FOUR HUNDRED
EIGHTY OF THIS ARTICLE FOR THE TYPE OF BUSINESS BEING ENGAGED  IN.  WHEN
THE TERM "LICENSED" IS USED BEFORE A LIST OF ENTITIES, SUCH AS "LICENSED
MANUFACTURER,  IMPORTER, AGENT OR DEALER," SUCH TERM SHALL APPLY TO EACH
ENTITY IN SUCH LIST.
  S 2. Subdivisions 2 and 3 of section 471 of the tax law, subdivision 2
as amended by section 2 of part D of chapter 134 of the laws of 2010 and
subdivision 3 as amended by chapter 6 of the laws of 1961,  are  amended
to read as follows:
  2. It is intended that the ultimate incidence of and liability for the
tax shall be upon the consumer, and that any agent [or dealer] who shall
pay the tax to the commissioner shall collect the tax from the purchaser
or  consumer.  Except as [hereinafter] provided IN THIS SUBDIVISION, the
tax shall be advanced and paid by the agent. The agent shall  be  liable
for  the collection and payment of the tax on cigarettes imposed by this
article and shall pay the tax to the commissioner by  purchasing,  under
such  regulations  as he or she shall prescribe, adhesive stamps of such
designs and denominations as he or she shall prescribe. The tax on ciga-
rettes may also be paid by or through the use of  metering  machines  if
the  commissioner  so  prescribes. Agents, located within or without the
state, shall purchase  stamps  and  affix  such  stamps  in  the  manner
prescribed  to  packages  of cigarettes to be sold within the state[, in
which case any dealer subsequently receiving such  stamped  packages  of
cigarettes  will  not  be  required to purchase and affix stamps on such
packages of cigarettes]. All cigarettes sold by agents  and  wholesalers
to  Indian nations or tribes or reservation cigarette sellers located on
an Indian reservation must bear a tax stamp.
  3. The amount of taxes advanced and paid by the agent as [hereinabove]
provided IN THIS SECTION shall be added to and collected as part of  the
sales price of the cigarettes.
  S  3.  Section 471-a of the tax law, as amended by section 5 of part D
of chapter 134 of the laws of 2010, is amended to read as follows:
  S 471-a. Use tax on cigarettes. There is hereby imposed and  shall  be
paid  BY  ANY  CONSUMER a tax on all cigarettes used in the state by any
[person] SUCH CONSUMER, except that no tax shall be imposed (1)  if  the
tax  provided  in  section  four  hundred seventy-one of this article is
paid, (2) on the use of cigarettes which are exempt from the tax imposed
by said section, or (3) on the use of four hundred or  less  cigarettes,
brought into the state on, or in the possession of, any [person] CONSUM-
ER.  Such  tax  on  cigarettes  shall be at the rate of four dollars and
thirty-five cents  for  each  twenty  cigarettes  or  fraction  thereof,
provided,  however,  that  if a package of cigarettes contains more than

A. 1362                             3

twenty cigarettes, the rate of tax on the cigarettes in such package  in
excess  of twenty shall be one dollar and eight and three-quarters cents
for each five cigarettes or fraction thereof. Within  twenty-four  hours
after  liability  for the tax accrues, each such [person] CONSUMER shall
file with the commissioner a return in such form as the commissioner may
prescribe together with a remittance of the tax shown to be due thereon.
For purposes of this article, the word "use" means the exercise  of  any
right  or  power  actual  or  constructive  and shall include but is not
limited to the receipt, storage or any  keeping  or  retention  for  any
length  of time, but shall not include possession for sale, AND THE WORD
"CONSUMER" MEANS ANY PERSON WHO USES CIGARETTES  IN  THIS  STATE.    All
other  provisions of this article if not inconsistent shall apply to the
administration and enforcement of the tax imposed by this section in the
same manner as if the language of said provisions had been  incorporated
in  full into this section. BY FILING SUCH RETURN AND PAYING SUCH TAX, A
CONSUMER SHALL NOT BE RELIEVED OF ANY CRIMINAL OR CIVIL  PENALTIES  THAT
MAY  BE  APPLICABLE  UNDER  THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS
CHAPTER.
  S 4. Section 471-e of the tax law is REPEALED and a new section  471-e
is added to read as follows:
  S  471-E.  APPLICATION  OF TAX ON TRIBAL LANDS. 1. EXEMPTION FROM TAX.
(A) CIGARETTES SOLD TO OR RECEIVED BY MEMBERS OF A FEDERALLY  RECOGNIZED
INDIAN  TRIBE ON SUCH TRIBE'S INDIAN COUNTRY SHALL NOT BE SUBJECT TO TAX
UNDER THIS ARTICLE.
  (B) CIGARETTES EXEMPT FROM TAX UNDER 26 U.S.C. S  5701  AND  THAT  ARE
DISTRIBUTED  IN ACCORDANCE WITH FEDERAL REGULATIONS SHALL NOT BE SUBJECT
TO TAX UNDER THIS ARTICLE.
  2. TAX RATE ON SALES TO NON-TRIBAL MEMBERS ON INDIAN COUNTRY. THE  TAX
RATE  APPLICABLE TO CIGARETTES SOLD TO OR RECEIVED BY NON-TRIBAL MEMBERS
ON INDIAN LANDS SHALL BE EQUAL TO THE STATE TAX RATE PROVIDED IN SECTION
FOUR HUNDRED SEVENTY-ONE OF THIS ARTICLE MINUS ANY TRIBAL TAX  RATE,  IF
THE  RESULTING  RATE IS A POSITIVE NUMBER AND SUCH RATE SHALL BE ZERO IF
THE RESULTING RATE WOULD BE A NEGATIVE NUMBER. CIGARETTES TAXED PURSUANT
TO THIS SUBDIVISION SHALL BEAR A TAX STAMP AS REQUIRED BY  SECTION  FOUR
HUNDRED  SEVENTY-TWO  OF  THIS  ARTICLE  IN  AN  AMOUNT EQUAL TO THE TAX
IMPOSED BY SECTION FOUR HUNDRED SEVENTY-ONE OF THIS  ARTICLE;  PROVIDED,
THAT  THE  COMMISSIONER  SHALL  PERIODICALLY REBATE TO ANY INDIAN TRIBAL
ENTITY THAT IS IN COMPLIANCE WITH THIS ARTICLE AN AMOUNT  EQUAL  TO  THE
TRIBAL  TAX IMPOSED ON SALES UNDER THIS SUBDIVISION OR THE FACE VALUE OF
THE TAX STAMPS AFFIXED TO CIGARETTES UNDER THIS  SUBDIVISION,  WHICHEVER
AMOUNT IS LESS.
  S  5. Subdivision 1 of section 472 of the tax law, as amended by chap-
ter 629 of the laws of 1996 and as further amended  by  section  104  of
part A of chapter 62 of the laws of 2011, is amended, subdivisions 2 and
3  are  renumbered subdivisions 3 and 4 and a new subdivision 2 is added
to read as follows:
  1. The commissioner shall prescribe, prepare  and  furnish  stamps  of
such denominations and quantities as may be necessary for the payment of
the  tax  on  cigarettes imposed by this article, OR FOR INDICATION THAT
THE CIGARETTES ARE TAX-EXEMPT UNDER SECTION FOUR  HUNDRED  SEVENTY-ONE-E
OF  THIS  ARTICLE,  and  may from time to time and as often as he OR SHE
deems advisable provide for the issuance and exclusive use of stamps  of
a  new  design  and forbid the use of stamps of any other design, in the
manner and with the effect provided in section two hundred  seventy-four
of  this chapter. The commissioner shall make provisions for the sale of
such stamps at such places and at such times  as  he  OR  SHE  may  deem

A. 1362                             4

necessary  and may license agents for such purpose. The commissioner may
license WHOLESALE dealers in cigarettes, who maintain separate warehous-
ing facilities for the purpose of receiving and distributing  cigarettes
and conducting their business, AND who have received commitments from at
least  two  cigarette  manufacturers  whose aggregate market share is at
least forty percent of the New York state cigarette market, [and import-
ers, exporters and manufacturers of cigarettes, and other persons within
or without the state as] OR ARE THEMSELVES ALSO LICENSED AS  MANUFACTUR-
ERS,  IMPORTERS  OR  agents  to  buy [or] AND affix stamps to be used in
paying the tax [herein] imposed BY THIS ARTICLE. NO PERSON OTHER THAN  A
LICENSED AGENT MAY PURCHASE OR AFFIX STAMPS AND AGENTS SHALL NOT SELL OR
PROVIDE  SUCH STAMPS TO ANY OTHER AGENT OR PERSON, but an agent shall at
all times have the right to appoint the person in his OR HER employ  who
is  to affix the stamps to any cigarettes under the agent's control. The
fee for filing such application for an  agent's  license  shall  be  one
thousand  five hundred dollars, unless such fee has been paid during the
preceding twelve months, in which case, the fee for a new license  shall
be  one  thousand dollars. All of the provisions of section four hundred
eighty OF THIS ARTICLE relating to wholesale dealers' licenses,  includ-
ing the procedure for suspension, revocation, refusal to license and for
hearings,  except for paragraphs (c) and [(g)] (F) of subdivision one of
such section, shall be applicable to agents'  licenses  applied  for  or
granted  pursuant  to  this  section, as if such provisions had been set
forth in full in this subdivision and  had  expressly  referred  to  the
applicant  for,  or  the  holder  of,  an  agent's license. Whenever the
commissioner shall sell and deliver to any such agent any  such  stamps,
such  agent  shall be entitled to receive as compensation for his OR HER
services and expenses as  such  agent  in  [selling  or]  affixing  such
stamps,  and  to  retain  out of the moneys to be paid by him OR HER for
such stamps, a commission on the par value thereof. The commissioner  is
hereby  authorized to prescribe a schedule of commissions, not exceeding
five per centum, allowable to such agent for buying  and  affixing  such
stamps.  Such  schedule  shall  be uniform with respect to the different
types of stamps used, and may be on a graduated scale  with  respect  to
the  number  of  stamps  purchased.  The commissioner may, in his OR HER
discretion, permit an agent to pay for such stamps  within  thirty  days
after  the  date of purchase and may require any such agent to file with
the department [of taxation and finance]  a  bond  issued  by  a  surety
company  approved  by  the  superintendent  of  financial services as to
solvency and responsibility and authorized to transact business  in  the
state  or  other security acceptable to the commissioner, in such amount
as the commissioner may fix, to secure the payment of any sums due  from
such  agent  pursuant  to  this  article. If securities are deposited as
security under this subdivision, such securities shall be  kept  in  the
custody  of  the  commissioner and may be sold by the commissioner if it
becomes necessary so to do in order to recover any sums  due  from  such
agent  pursuant  to  this  article,  but no such sale shall be had until
after such agent shall have had opportunity to litigate the validity  of
any  tax if it elects so to do. Upon any such sale, the surplus, if any,
above the sums due under this article shall be returned to such agent.
  2. STAMPS SHALL BE APPLIED BY A LICENSED  AGENT  TO  EACH  PACKAGE  OF
CIGARETTES  SOLD  OR DISTRIBUTED WITHIN THIS STATE AS FOLLOWS: (A) A TAX
STAMP SHALL BE APPLIED TO ALL CIGARETTE PACKAGES  CONTAINING  CIGARETTES
SUBJECT TO STATE TAX UNDER THIS ARTICLE, INCLUDING TO CIGARETTES SUBJECT
TO  REDUCED  STATE  TAX  UNDER  SUBDIVISION  TWO OF SECTION FOUR HUNDRED
SEVENTY-ONE-E OF THIS ARTICLE.

A. 1362                             5

  (B) EXCEPT AS PROVIDED IN PARAGRAPH (C) OF THIS SUBDIVISION, A TAX-EX-
EMPT STAMP SHALL BE APPLIED TO ALL CIGARETTE PACKAGES INTENDED FOR  SALE
OR  DISTRIBUTION  TO  CONSUMERS NOT SUBJECT TO STATE TAX UNDER PARAGRAPH
(A) OF SUBDIVISION ONE OF SECTION FOUR  HUNDRED  SEVENTY-ONE-E  OF  THIS
ARTICLE.
  (C) NO STAMP SHALL BE APPLIED TO ANY CIGARETTE PACKAGE EXEMPT FROM TAX
UNDER  PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED SEVENTY-
ONE-E OF THIS ARTICLE.
  S 6. Section 473 of the tax law, as amended by chapter 489 of the laws
of 1940, is amended to read as follows:
  S 473. Affixation and cancellation of stamps; presumption. Each  agent
[shall affix] within [the time hereinafter prescribed] TEN CALENDAR DAYS
OF  RECEIPT OF ANY CIGARETTES, SHALL AFFIX to each package of SUCH ciga-
rettes, stamps evidencing the payment of the tax imposed by this article
OR STAMPS EVIDENCING THE EXEMPTION FROM PAYMENT OF THE  TAX  IMPOSED  BY
THIS  ARTICLE and shall cancel such stamps, WITH A NUMBER UNIQUE TO SUCH
AGENT THAT IS LEGIBLE AT THE POINT OF SALE, before such  cigarettes  are
offered for sale or before they are otherwise disposed of, unless stamps
have  been  affixed  to such packages of cigarettes and cancelled before
such agent received them. Each dealer, other than an agent, shall  imme-
diately  upon the receipt of any cigarettes at his OR HER place of busi-
ness mark in ink on each unopened box, carton or other container of such
cigarettes the word "received" and the year, month, day and hour of such
receipt, and shall affix his OR HER signature thereto, or in  any  other
manner prescribed.
  Each  retail  dealer  shall  open  such box, carton or other container
within twenty-four hours after such receipt and prior  to  exposing  for
sale or selling such cigarettes and examine the packages contained ther-
ein  for  the  purpose  of ascertaining whether or not the said packages
have affixed thereto the proper tax stamp; if  unstamped  or  improperly
stamped  packages  of cigarettes are discovered, the retail dealer shall
immediately notify the WHOLESALE dealer from whom said  cigarettes  were
purchased.   Upon such notification, the WHOLESALE dealer from whom said
cigarettes were purchased will  replace  such  unstamped  or  improperly
stamped  packages  of  cigarettes with those upon which stamps have been
properly affixed.
  Whenever any cigarettes are found in the place  of  business  of  such
dealer,  other  than an agent, without the stamps affixed and cancelled,
or not marked as having been received within the  preceding  twenty-four
hours, the presumption shall be that such cigarettes are kept therein in
violation  of the provisions of this article. Stamps shall be affixed to
each package of cigarettes of an aggregate denomination  not  less  than
the amount of the tax upon the contents therein, and shall be affixed in
such manner as to be visible to the purchaser.
  S  7.  The tax law is amended by adding a new section 473-c to read as
follows:
  S 473-C. DUTIES OF MANUFACTURERS, IMPORTERS, AGENTS, AND  DEALERS.  1.
AGENTS  MAY  APPLY  STAMPS  ONLY  TO  CIGARETTE  PACKAGES THAT THEY HAVE
RECEIVED DIRECTLY FROM A LICENSED  MANUFACTURER  OR  IMPORTER  OF  CIGA-
RETTES.
  2.  AGENTS  SHALL  BE  PERMITTED  TO SET ASIDE, WITHOUT APPLICATION OF
STAMPS, ONLY SUCH PART OF THE AGENT'S STOCK THAT IS IDENTIFIED FOR  SALE
OR DISTRIBUTION OUTSIDE OF THIS STATE; PROVIDED, THAT ANY SUCH UNSTAMPED
CIGARETTES  SHALL  BE STORED SEPARATELY FROM STAMPED CIGARETTE PACKAGES.
NO AGENT SHALL TRANSFER UNSTAMPED CIGARETTE PACKAGES TO ANOTHER FACILITY
OF THE AGENT WITHIN THIS STATE OR TO ANOTHER PERSON WITHIN THIS STATE.

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  3. A MANUFACTURER OR IMPORTER MAY SELL OR DISTRIBUTE CIGARETTES  TO  A
PERSON  LOCATED  OR  DOING  BUSINESS WITHIN THIS STATE (INCLUDING ON ANY
TRIBAL LANDS LOCATED WITHIN  THIS  STATE)  ONLY  IF  SUCH  PERSON  IS  A
LICENSED  IMPORTER OR AGENT. AN IMPORTER MAY OBTAIN CIGARETTES ONLY FROM
A  LICENSED  MANUFACTURER.  AN  AGENT  MAY OBTAIN CIGARETTES ONLY FROM A
LICENSED MANUFACTURER, IMPORTER OR AGENT. AN AGENT MAY SELL OR  DISTRIB-
UTE  CIGARETTES  TO A PERSON LOCATED OR DOING BUSINESS WITHIN THIS STATE
(INCLUDING ON ANY TRIBAL LANDS LOCATED WITHIN THIS STATE) ONLY  IF  SUCH
PERSON  IS A LICENSED AGENT, WHOLESALE DEALER OR RETAIL DEALER. A RETAIL
DEALER MAY OBTAIN CIGARETTES ONLY FROM A  LICENSED  AGENT  OR  WHOLESALE
DEALER.
  4.  ANY  PERSON WHO IS DOING BUSINESS BOTH AS AN AGENT AND A WHOLESALE
DEALER OR A RETAIL DEALER, SHALL MAINTAIN SEPARATE AREAS FOR STAMPED AND
UNSTAMPED PRODUCT.
  5. (A) A RETAIL DEALER SHALL REPORT TO THE  COMMISSION  EACH  SALE  OR
DISTRIBUTION OF MORE THAN ONE THOUSAND CIGARETTES TO ANY CONSUMER IN ANY
SINGLE TRANSACTION. SUCH REPORT SHALL INCLUDE:
  (I) THE NAME, ADDRESS, DESTINATION (INCLUDING STREET ADDRESS), VEHICLE
LICENSE NUMBER, DRIVER'S LICENSE NUMBER, SIGNATURE OF THE PERSON RECEIV-
ING SUCH CIGARETTES, AND THE NAME OF THE PURCHASER;
  (II)  A  DECLARATION  OF THE SPECIFIC PURPOSE OF THE RECEIPT (PERSONAL
USE, RESALE, OR DELIVERY TO ANOTHER); AND
  (III) A DECLARATION OF THE NAME AND ADDRESS OF THE RECIPIENT'S PRINCI-
PAL IN ALL CASES WHEN THE RECIPIENT IS ACTING AS AN AGENT.
  (B) A RETAIL DEALER SHALL NOT KNOWINGLY SELL MORE  THAN  ONE  THOUSAND
CIGARETTES  TO  ANY  PERSON IN ANY SERIES OF TRANSACTIONS IN ANY TWO-DAY
PERIOD WITHOUT FILING A REPORT AS REQUIRED  BY  PARAGRAPH  (A)  OF  THIS
SUBDIVISION.
  S 8. Subdivisions 1 and 4 of section 474 of the tax law, as amended by
chapter 61 of the laws of 1989, are amended to read as follows:
  1. (A) Every person who shall possess or transport any unstamped ciga-
rettes upon the public highways, roads or streets of the state, shall be
required  to  have  in his OR HER actual possession invoices or delivery
tickets for such cigarettes. Such invoices  or  delivery  tickets  shall
show  the  name  and  address  of  the consignor or seller, the name and
address of the consignee or purchaser,  the  quantity  [and  brands]  BY
BRAND  STYLE  of the cigarettes transported, and the name and address of
the person who has or shall assume the payment of the tax.  The  absence
of  such invoices or delivery tickets shall be prima facie evidence that
such person is a dealer in cigarettes in this state and subject  to  the
provisions of this article.
  (B)  ANY PERSON WHO SHIPS UNSTAMPED CIGARETTE PACKAGES INTO THIS STATE
OTHER THAN TO A LICENSED MANUFACTURER, IMPORTER  OR  AGENT  SHALL  FIRST
FILE WITH THE COMMISSIONER NOTICE OF SUCH SHIPMENT. THIS PARAGRAPH SHALL
NOT  APPLY  TO ANY COMMON OR CONTRACT CARRIER THAT IS TRANSPORTING CIGA-
RETTES THROUGH THIS STATE TO ANOTHER LOCATION UNDER  A  PROPER  BILL  OF
LADING  OR  FREIGHT  BILL,  WHICH  STATES  THE  QUANTITY BY BRAND STYLE,
SOURCE, AND DESTINATION OF SUCH CIGARETTES.
  4. At the time of delivering cigarettes to any person each MANUFACTUR-
ER, IMPORTER, agent or wholesale dealer, and at the time  of  delivering
tobacco  products  to any person each distributor or wholesale dealer of
tobacco products, shall make a true duplicate invoice showing  the  date
of  delivery,  the number of packages BY BRAND STYLE and number of ciga-
rettes contained therein, in each shipment of cigarettes delivered,  and
the items and quantity and wholesale price of each item in each shipment
of  tobacco  products  delivered,  and the name of the purchaser to whom

A. 1362                             7

delivery is made, and shall retain the same for a period of [three] FIVE
years subject to the use and inspection of the commissioner [of taxation
and finance]. Each dealer shall procure and retain invoices showing  the
number  of  packages  BY  BRAND STYLE and number of cigarettes contained
therein, in each shipment of cigarettes received by him OR HER, and  the
items  and quantity and wholesale price of each item in each shipment of
tobacco products received by him OR HER, the date thereof, and the  name
of  the  shipper, and shall retain the same for a period of [three] FIVE
years subject to the use and inspection of the commissioner [of taxation
and finance]. The commissioner [of taxation and finance]  by  regulation
may  provide  that  whenever  cigarettes or tobacco products are shipped
into the state, the railroad company, express company, trucking  company
or  other  public  carrier  transporting any shipment thereof shall file
with the commissioner [of taxation and finance] a copy  of  the  freight
bill  within  ten days after the delivery in the state of each shipment.
All dealers shall maintain and keep for a period of [three]  FIVE  years
such  other  records of cigarettes or tobacco products received, sold or
delivered within the state as may be required by  the  commissioner  [of
taxation  and  finance].  The  commissioner [of taxation and finance] is
hereby authorized to examine  the  books,  papers,  invoices  and  other
records  of  any  person  WHO HOLDS A LICENSE OR REGISTRATION UNDER THIS
ARTICLE OR WHO IS in possession, control or occupancy  of  any  premises
where cigarettes or tobacco products are placed, stored, sold or offered
for  sale, and the equipment of any such person pertaining to the stamp-
ing of cigarettes or the sale and  delivery  of  cigarettes  or  tobacco
products  taxable under this article, as well as the stock of cigarettes
or tobacco products in any such premises or vehicle. To verify the accu-
racy of the tax imposed and assessed by this article, each  such  person
is hereby directed and required to give to the commissioner [of taxation
and  finance]  or his OR HER duly authorized representatives, the means,
facilities  and  opportunity  for  such  examinations  as  are  [herein]
provided  for IN THIS SECTION and required.  ALL INVOICES REQUIRED TO BE
RETAINED BY THIS SECTION SHALL SHOW THE NAME AND ADDRESS OF  THE  SELLER
AND THE QUANTITY BY BRAND STYLE OF THE CIGARETTES INVOLVED IN THE TRANS-
ACTION  AND  SHALL  BE  ITEMIZED  FOR EACH FACILITY OF THE MANUFACTURER,
IMPORTER, AGENT OR WHOLESALE DEALER.  RECORDS REQUIRED UNDER THIS  ARTI-
CLE SHALL BE PRESERVED ON THE PREMISES DESCRIBED IN THE RELEVANT LICENSE
OR REGISTRATION IN SUCH A MANNER AS TO ENSURE PERMANENCY AND ACCESSIBIL-
ITY  FOR  INSPECTION  AT REASONABLE HOURS BY AUTHORIZED PERSONNEL OF THE
TAX COMMISSION. WITH THE PERMISSION OF THE  COMMISSIONER,  PERSONS  WITH
MULTIPLE  PLACES  OF  BUSINESS MAY RETAIN CENTRALIZED RECORDS, BUT SHALL
TRANSMIT DUPLICATES OF THE INVOICES OR THE EQUIVALENT  DOCUMENTATION  TO
EACH  PLACE OF BUSINESS WITHIN TWENTY-FOUR HOURS UPON THE REQUEST OF THE
COMMISSIONER.
  THE COMMISSIONER AND HIS OR HER DESIGNEES AND THE UNITED STATES SECRE-
TARY OF THE TREASURY OR HIS OR HER DESIGNEE, UPON  REQUEST,  SHALL  HAVE
ACCESS TO RECORDS REQUIRED UNDER THIS SECTION AND REPORTS REQUIRED UNDER
SECTION FOUR HUNDRED SEVENTY-FOUR-A OF THIS ARTICLE. THE COMMISSIONER AT
HIS OR HER SOLE DISCRETION MAY SHARE THE RECORDS AND REPORTS REQUIRED BY
THIS ARTICLE WITH OTHER LAW ENFORCEMENT OFFICIALS OF THE FEDERAL GOVERN-
MENT  OR  OTHER  STATES. PUBLIC ACCESS TO REPORTS SUBMITTED BY LICENSEES
SHALL BE PROVIDED UNDER THE PROCEDURES ESTABLISHED BY THE NEW YORK FREE-
DOM OF INFORMATION LAW. IN NO CASE,  HOWEVER,  SHALL  INFORMATION  ABOUT
QUANTITIES OF CIGARETTES BY BRAND STYLE BE RELEASED TO ANYONE OTHER THAN
THE  COMMISSIONER, THE UNITED STATES SECRETARY OF THE TREASURY, OR OTHER

A. 1362                             8

STATE AND FEDERAL LAW ENFORCEMENT OFFICIALS WITH WHOM  THE  COMMISSIONER
HAS ELECTED TO SHARE REPORTS AND RECORDS REQUIRED BY THIS ARTICLE.
  S  9.  The tax law is amended by adding a new section 474-a to read as
follows:
  S 474-A. REPORTS. 1. AGENTS AND DEALERS SHALL SUBMIT  TO  THE  COMMIS-
SIONER MONTHLY REPORTS SETTING FORTH THE FOLLOWING INFORMATION, ITEMIZED
OR  SUBMITTED  SEPARATELY  FOR EACH OF THEIR PLACES OF BUSINESS: (A) THE
QUANTITIES OF CIGARETTES, BY BRAND STYLE, ON HAND BOTH AT THE  BEGINNING
AND ENDING OF THE REPORTING PERIOD;
  (B) THE QUANTITIES OF CIGARETTES, BY BRAND STYLE AND TRANSACTION, THAT
WERE  RECEIVED  DURING  THE REPORTING PERIOD AND THE NAME AND ADDRESS OF
EACH PERSON FROM WHOM THOSE PRODUCTS WERE RECEIVED;
  (C) THE QUANTITIES OF CIGARETTES,  BY  BRAND  STYLE  AND  TRANSACTION,
DISTRIBUTED  OR  SHIPPED  INTO  THIS  STATE OR BETWEEN LOCATIONS IN THIS
STATE DURING THE REPORTING PERIOD (OTHER THAN SALES DIRECTLY TO  CONSUM-
ERS) AND THE NAME AND ADDRESS OF EACH PERSON TO WHOM THOSE PRODUCTS WERE
DISTRIBUTED OR SHIPPED;
  (D)  THE  QUANTITIES  OF  CIGARETTES,  BY BRAND STYLE AND TRANSACTION,
DISTRIBUTED OR SHIPPED TO ANY DESTINATION  WHEREVER  LOCATED,  INCLUDING
THE  QUANTITIES REPORTED UNDER PARAGRAPH (C) OF THIS SUBDIVISION, DURING
THE REPORTING PERIOD (OTHER THAN SALES DIRECTLY TO  CONSUMERS)  AND  THE
NAME  AND ADDRESS OF EACH PERSON TO WHOM THOSE PRODUCTS WERE DISTRIBUTED
OR SHIPPED; AND
  (E) THE QUANTITIES OF CIGARETTES, BY BRAND STYLE, SOLD  TO  CONSUMERS,
ITEMIZED TO SHOW SALES TO CONSUMERS IN THIS STATE AND SALES TO CONSUMERS
OUTSIDE OF THIS STATE.
  2. MANUFACTURERS AND IMPORTERS SHIPPING CIGARETTES INTO OR WITHIN THIS
STATE  SHALL  FILE A MONTHLY REPORT WITH THE COMMISSIONER CONTAINING THE
INFORMATION REGARDING SUCH CIGARETTES SET  FORTH  IN  PARAGRAPH  (C)  OF
SUBDIVISION ONE OF THIS SECTION.
  3.  INDIAN  TRIBAL ENTITIES ENGAGED IN THE RETAIL SALE OR DISTRIBUTION
OF CIGARETTES SHALL INCLUDE IN SUCH ENTITIES' REPORTS SUBMITTED PURSUANT
TO SUBDIVISION ONE OF THIS SECTION THE  NAMES  AND  ADDRESSES  OF  EVERY
TRIBAL  MEMBER THAT PURCHASED CIGARETTES DURING THE REPORTING PERIOD AND
THE QUANTITY OF CIGARETTES, BY  BRAND  STYLE,  PURCHASED  BY  EACH  SUCH
TRIBAL MEMBER.
  4.  THE  REPORTS SUBMITTED PURSUANT TO SUBDIVISION ONE OF THIS SECTION
SHALL BE FURTHER ITEMIZED TO DISCLOSE THE  QUANTITY  OF  REPORTED  CIGA-
RETTES  BEARING  TAX  STAMPS  OF  THIS  STATE, TAX EXEMPT STAMPS OF THIS
STATE, STAMPS OF ANOTHER STATE, AND UNSTAMPED CIGARETTES. AGENT  REPORTS
SHALL  INCLUDE,  IF  APPLICABLE,  THE  QUANTITY  OF NEW YORK TAX AND TAX
EXEMPT STAMPS THAT WERE NOT AFFIXED TO CIGARETTES AND THAT WERE ON  HAND
AT  THE  BEGINNING  AND  ENDING OF THE REPORTING PERIOD, THE QUANTITY OF
EACH TYPE OF NEW YORK STAMP RECEIVED DURING THE  REPORTING  PERIOD,  AND
THE QUANTITY OF EACH TYPE OF NEW YORK STAMP APPLIED DURING THE REPORTING
PERIOD.
  5.  THE  COMMISSIONER  MAY ISSUE REGULATIONS REQUIRING SUCH ADDITIONAL
INFORMATION IN THE MONTHLY REPORTS AS HE OR SHE MAY DETERMINE IS  NECES-
SARY  OR  APPROPRIATE  FOR  PURPOSES OF ENFORCING THE PROVISIONS OF THIS
ARTICLE.
  S 10. Section 475 of the tax law is amended by adding  a  new  closing
paragraph to read as follows:
  IN  ANY  CASE  WHERE  THE  COMMISSIONER  OR HIS OR HER DULY AUTHORIZED
AGENT, OR ANY POLICE OR PEACE OFFICER OF NEW YORK STATE,  HAS  KNOWLEDGE
OR  REASONABLE GROUNDS TO BELIEVE THAT ANY VEHICLE IS TRANSPORTING CIGA-
RETTES IN VIOLATION OF THIS ARTICLE, THE COMMISSIONER,  SUCH  AGENT,  OR

A. 1362                             9

SUCH  POLICE OR PEACE OFFICER, IS AUTHORIZED TO STOP SUCH VEHICLE AND TO
INSPECT THE SAME FOR CONTRABAND CIGARETTES.
  S 11. Section 476 of the tax law, as amended by chapter 61 of the laws
of 1989, is amended to read as follows:
  S  476.  Refunds;  sales of stamps. Whenever any cigarettes upon which
stamps have been placed or tobacco products upon which the tax has  been
paid have been sold and shipped into another state for sale or use there
or  have become unfit for use and consumption or unsalable, or have been
destroyed (EXCEPT FOR CIGARETTES DESTROYED PURSUANT TO SECTION  EIGHTEEN
HUNDRED  FORTY-SIX  OF  THIS  CHAPTER), or whenever the commissioner [of
taxation and finance] shall have determined that any tax imposed by this
article shall have been paid in error,  the  agent,  dealer  or  tobacco
products  distributor, as the case may be, shall be entitled to a refund
of the actual amount of tax so paid, provided  application  therefor  is
filed  with  the commissioner [of taxation and finance] within two years
after the stamps were affixed to such cigarettes or  the  tax  was  paid
upon  such tobacco products, except if an agreement under the provisions
of section four hundred seventy-eight OF  THIS  ARTICLE  (extending  the
period  for determination of tax imposed by this article) is made within
the two-year period for the filing of an application for refund provided
for in this section, the period for filing  an  application  for  refund
shall  not expire prior to six months after the expiration of the period
within which a determination may be made pursuant to  the  agreement  or
any  extension thereof. If the commissioner [of taxation and finance] is
satisfied that any AGENT OR dealer is entitled to a  refund  he  OR  SHE
shall  issue  to such [dealer] AGENT stamps of sufficient value to cover
the refund of the tax on cigarettes or may,  subject  to  audit  by  the
comptroller,  make  a  refund  of  the  tax  on cigarettes or on tobacco
products TO SUCH AGENT. No person shall sell or offer for sale any stamp
or stamps issued under this article except by written permission of  the
commissioner  [of  taxation  and finance]. The commissioner [of taxation
and finance] may redeem unused stamps  lawfully  in  possession  of  any
[person] AGENT. The commissioner [of taxation and finance] may prescribe
necessary rules and regulations concerning refunds, sales of stamps, and
redemptions under the provisions of this article.
  S  12. Subdivisions 1, 5 and paragraph (a) of subdivision 6 of section
480 of the tax law, subdivision 1 as amended by chapter 629 of the  laws
of  1996,  paragraph  (c) of subdivision 1 as further amended by section
104 of part A of chapter 62 of the laws of 2011, paragraph (k) of subdi-
vision 1 as amended by chapter 262 of the laws of 2000, subdivision 5 as
added by chapter 860 of the laws of 1987 and paragraph (a)  of  subdivi-
sion  6  as  amended  by  chapter  576 of the laws of 1994, are amended,
subdivision 3 is amended by adding a new paragraph (c) and a new  subdi-
vision 7 is added to read as follows:
  1. General. (a) [On and after July first, nineteen hundred thirty-nine
no]  NO  person  shall  be a MANUFACTURER, IMPORTER, AGENT, OR wholesale
dealer unless he OR SHE has been granted and publicly displays in his OR
HER place of business a license from the department FOR EACH SUCH ACTIV-
ITY ENGAGED IN. EACH PLACE OF BUSINESS IN THIS STATE SHALL BE SEPARATELY
LICENSED. IF THE APPLICANT DOES NOT HAVE A PLACE  OF  BUSINESS  IN  THIS
STATE,  THE LICENSE SHALL BE ISSUED FOR SUCH APPLICANT'S PRINCIPAL PLACE
OF BUSINESS, WHEREVER LOCATED.  Applications for licenses shall be  made
on  forms  prescribed by the commissioner.  EACH APPLICATION SHALL STATE
THE NAME AND ADDRESS OF THE APPLICANT; THE ADDRESS  OF  THE  APPLICANT'S
PRINCIPAL  PLACE  OF  BUSINESS;  EACH PLACE OF BUSINESS WHERE THE APPLI-
CANT'S BUSINESS WILL BE CONDUCTED  WITHIN  THIS  STATE;  AND  ANY  OTHER

A. 1362                            10

INFORMATION  SUCH  COMMISSIONER MAY REQUIRE. IF THE APPLICANT IS A FIRM,
PARTNERSHIP, OR ASSOCIATION, THE APPLICATION SHALL STATE  THE  NAME  AND
ADDRESS  OF  EACH OF ITS MEMBERS. IF THE APPLICANT IS A CORPORATION, THE
APPLICATION  SHALL STATE THE NAME AND ADDRESS OF EACH OF ITS MEMBERS. IF
THE APPLICANT IS A CORPORATION, THE APPLICATION SHALL STATE THE NAME AND
ADDRESS OF EACH OF ITS OFFICERS AND THE NAME OF  ANY  PERSON  WHO  OWNS,
DIRECTLY  OR  INDIRECTLY, IN THE AGGREGATE, MORE THAN TEN PERCENT OF THE
OWNERSHIP INTERESTS IN THE CORPORATION.
  (b) Applications shall be accompanied  by  proof  of  the  applicant's
financial  responsibility,  including,  but not limited to, satisfactory
proof of a minimum net worth of  twenty-five  thousand  dollars  if  the
applicant  is  an  individual, or net worth in the capitalization of the
business if the applicant is not an individual equal  to  a  minimum  of
twenty-five thousand dollars.
  (c)  Each  applicant shall file with the department a bond issued by a
surety company approved by the superintendent of financial  services  as
to  solvency  and  responsibility and authorized to transact business in
the state, in the face amount of ten thousand dollars, to secure payment
of any sums due for any violation of THIS article  [twenty]  or  article
twenty-A  of this chapter, or the regulations of the commissioner there-
under.
  (d) [Each applicant shall file satisfactory proof that it  will  main-
tain a secure separate warehousing facility for the purpose of receiving
and  distributing  cigarettes  or  tobacco  products  and conducting its
wholesale business. Such proof shall consist of a copy of a deed,  or  a
copy  of an executed lease for a minimum period of two years, to a sepa-
rate, secure warehouse. If the applicant carries on another business  in
conjunction  with  the warehouse facility, the other business shall also
be identified.
  (e)] Each applicant shall file satisfactory proof that it will provide
disability and workers' compensation insurance for its employees.
  [(f)] (E) Each applicant shall submit proof of United States  citizen-
ship or eligibility to obtain employment within the United States if not
a  citizen.  If  the applicant is not an individual, such proof shall be
submitted with respect to each controlling person of the applicant.
  [(g)] (F) The fee for the filing of an application for a license shall
be fifteen hundred dollars, unless such fee has  been  paid  during  the
preceding  twelve months, in which case, the fee for a new license shall
be one thousand dollars. Each application  shall  be  accompanied  by  a
certified check for the required application fee.
  [(h)]  (G)  Except  as provided in subdivision four of this section, a
license shall continue in effect [until revoked or suspended  for  cause
or  surrendered] FOR SUCH LENGTH OF TIME AS DETERMINED BY REGULATIONS OF
THE COMMISSIONER; IN NO CASE, HOWEVER, SHALL A LICENSE ISSUED UNDER THIS
SECTION REMAIN IN EFFECT FOR A PERIOD LONGER THAN THREE YEARS.
  [(i)] (H) A license shall not be assignable but an  applicant  who  is
purchasing  the business of a licensee shall file a copy of the contract
of sale and any related documents with its application.
  [(j)] (I) The commissioner may for  cause  refuse  to  issue,  or  may
suspend  or  revoke  [a wholesaler's] ANY license UNDER THIS SECTION, or
may forbid a retail dealer to continue  selling  cigarettes  or  tobacco
products  or may forbid a person required to be appointed as a distribu-
tor of tobacco products who has not been so appointed from selling ciga-
rettes or tobacco products, after an opportunity for  hearing  has  been
afforded.  A  violation of any provision of this article or of any regu-
lation issued under it shall be cause to SUSPEND  OR  REVOKE  A  LICENSE

A. 1362                            11

ISSUED UNDER THIS SECTION OR TO forbid a retail dealer to continue sell-
ing cigarettes or tobacco products.
  [(k)] (J) No agent shall sell cigarettes and no distributor shall sell
tobacco  products  to  an unlicensed wholesale dealer, or to a wholesale
dealer whose license has been suspended or revoked, or to a retail deal-
er who is not registered under section four  hundred  eighty-a  of  this
article,  or  whose  registration  has been suspended or revoked, and no
wholesale dealer shall sell cigarettes or tobacco products to  a  retail
dealer who is not registered under section four hundred eighty-a of this
article,  or  whose  registration  has been suspended or revoked, and no
retail dealer shall sell cigarettes  or  tobacco  products  unless  such
dealer  is  registered under section four hundred eighty-a of this arti-
cle.
  [(l)] (K) Paragraphs (b), (c) and [(g)] (F) of this subdivision  shall
not  apply  to the filing of an application for a license as a wholesale
dealer that is based solely upon the ownership, operation or maintenance
of one or more cigarette or tobacco products vending machines in, at  or
upon  premises  owned  or  occupied  by another person, or that is based
solely upon the sale of tobacco products for resale, or  that  is  based
upon  both  the ownership, operation or maintenance of one or more ciga-
rette or tobacco products vending machines in, at or upon premises owned
or occupied by another person and  the  sale  of  tobacco  products  for
resale.
  (C)  LICENSE  AVAILABILITY. NOTWITHSTANDING OTHER SUBDIVISIONS OF THIS
SECTION, NO LICENSE SHALL BE  GRANTED,  MAINTAINED  OR  RENEWED  IF  THE
APPLICANT OR ANY CONTROLLING PERSON:
  (I) OWES FIVE HUNDRED DOLLARS OR MORE IN DELINQUENT CIGARETTE TAXES;
  (II)  HAD  A  LICENSE UNDER THIS SECTION OR REGISTRATION UNDER SECTION
FOUR HUNDRED EIGHTY-A OF THIS ARTICLE REVOKED BY THE COMMISSIONER WITHIN
THE PAST TWO YEARS;
  (III) HAS BEEN CONVICTED OF A CRIME RELATING TO STOLEN OR  COUNTERFEIT
CIGARETTES;
  (IV)  IS  A  CIGARETTE  MANUFACTURER OR IMPORTER THAT IS NEITHER (A) A
PARTICIPATING MANUFACTURER (AS SUCH TERM IS DEFINED IN SUBSECTION II(JJ)
OF THE MASTER SETTLEMENT AGREEMENT, AS REQUIRED IN  SUBDIVISION  ONE  OF
SECTION  THIRTEEN  HUNDRED  NINETY-NINE-PP OF THE PUBLIC HEALTH LAW; NOR
(B) IN FULL COMPLIANCE WITH SECTION FOUR HUNDRED EIGHTY-B OF THIS  ARTI-
CLE  AND  SUBDIVISION  TWO OF SECTION THIRTEEN HUNDRED NINETY-NINE-PP OF
THE PUBLIC HEALTH LAW;
  (V) HAS IMPORTED, OR CAUSED TO BE IMPORTED, INTO THE UNITED STATES ANY
CIGARETTE IN VIOLATION OF 19 U.S.C. 1681A; OR
  (VI) HAS IMPORTED, OR CAUSED TO BE IMPORTED INTO THE UNITED STATES, OR
MANUFACTURED FOR SALE OR DISTRIBUTION IN THE UNITED STATES ANY CIGARETTE
THAT DOES NOT FULLY COMPLY  WITH  THE  FEDERAL  CIGARETTE  LABELING  AND
ADVERTISING ACT (15 U.S.C. 1331, ET SEQ.).
  5.  Hearing  procedure. (a) General. A notice of proposed cancellation
or suspension of a license or refusal to issue a license shall be  given
to  [the  wholesale dealer] ANY PERSON licensed pursuant to this article
or to an applicant applying for such license in  the  manner  prescribed
for a notice of deficiency of tax and all the provisions applicable to a
notice of deficiency under article twenty-seven of this chapter, includ-
ing,  but  not limited to, those provisions authorizing the [tax commis-
sion] COMMISSIONER to abate on its own motion, shall apply to  a  notice
issued  pursuant  to this subdivision, insofar as such provisions can be
made applicable to a notice authorized by this  subdivision,  with  such
modifications as may be necessary in order to adapt the language of such

A. 1362                            12

provisions  to the notice authorized by this subdivision. Such notice of
proposed cancellation or suspension or of proposed  refusal  to  license
must  be given to such person within five years from the date of the act
or  omission  referred  to  in subdivision two or three of this section,
except that in the case of acts involving falsity or fraud, such  notice
may be issued at any time. All of such notices shall contain a statement
advising  the person to whom it is issued that the cancellation, suspen-
sion or refusal to license may be challenged through a  hearing  process
and  that  the  petition  for such challenge must be filed with the [tax
commission] COMMISSIONER within ninety days after  the  giving  of  such
notice.  Where  a  license is cancelled or suspended prior to a hearing,
the cancellation or suspension may be  challenged  through  the  hearing
process  provided the petition for such challenge is filed within ninety
days after the giving of notice of such cancellation or suspension.
  (b) Refusal to license. In  the  case  of  a  person  applying  to  be
licensed  [as  a  wholesale  dealer]  UNDER  THIS  ARTICLE,  a notice of
proposed refusal to license shall be issued promptly  after  application
for  license  is  received  by the [tax commission] COMMISSIONER.   Upon
timely application therefor, a hearing shall be  scheduled,  and  within
three  months  from such application for hearing (determined with regard
to any postponements of any scheduled hearing  or  conference  or  other
delay made at the request of the applicant) the [tax commission] COMMIS-
SIONER  shall  issue a notice of refusal to license or shall license the
applicant. If the [tax commission] COMMISSIONER fails to issue a  notice
of  refusal to license within such three month period (or such period as
extended pursuant to this paragraph), the [tax commission]  COMMISSIONER
shall  license  the  applicant  immediately  upon the conclusion of such
period so long as the applicant has filed a bond or  other  security  as
required by the [tax commission] COMMISSIONER.
  (a)  An  officer,  director  or  partner  or, in the case of a limited
liability company, a member or a person  having  with  respect  to  such
limited  liability  company authority analogous to that of an officer or
director with respect to a corporation of an applicant for a  [wholesale
dealer's]  license  UNDER THIS ARTICLE or of a licensee under this arti-
cle, or
  7. MAINTENANCE OF LIST OF LICENSEES. THE COMMISSIONER SHALL CREATE AND
MAINTAIN A WEBSITE SETTING FORTH THE IDENTITY OF PERSONS  HOLDING  VALID
AND  CURRENT  LICENSES  UNDER  THIS SECTION, ITEMIZED BY TYPE OF LICENSE
POSSESSED, AND THE IDENTITY OF PERSONS HOLDING VALID AND CURRENT  REGIS-
TRATIONS  UNDER SECTION FOUR HUNDRED EIGHTY-A OF THIS ARTICLE, AND SHALL
UPDATE THE SITE NO LESS FREQUENTLY THAN ONCE PER MONTH.
  S 13. Paragraph (d) of subdivision 1, and paragraph (a) of subdivision
4 of section 480-a of the tax law, paragraph (d)  of  subdivision  1  as
added  by chapter 799 of the laws of 1992, and paragraph (a) of subdivi-
sion 4 as added by chapter 629 of the laws of 1996, are amended to  read
as follows:
  (d)  (i) The commissioner shall not register retail dealers OR VENDING
MACHINES or such registration may  be  cancelled  or  suspended  by  the
commissioner  upon  notification that the applicant or retail dealer, OR
ANY COMBINATION OF PERSONS OWNING DIRECTLY OR INDIRECTLY, IN THE  AGGRE-
GATE,  MORE THAN TEN PERCENT OF THE OWNERSHIP INTERESTS IN THE APPLICANT
OR RETAIL DEALER has been  convicted  in  a  criminal  proceeding  of  a
violation  of subdivision [five] THREE of section [260.20] 260.21 of the
penal law or as directed by an enforcement officer pursuant  to  article
thirteen-F  of  the  public  health  law.  The  clerk of the court shall
promptly report all criminal convictions under subdivision [five]  THREE

A. 1362                            13

of section [260.20] 260.21 of the penal law to the commissioner, togeth-
er  with  a direction to the commissioner to cancel such registration or
to suspend it for a specified period of time.
  (II)  THE  COMMISSIONER  SHALL  NOT REGISTER RETAIL DEALERS OR VENDING
MACHINES OR SUCH REGISTRATION SHALL BE CANCELLED  OR  SUSPENDED  BY  THE
COMMISSIONER  UPON  NOTIFICATION THAT THE APPLICANT OR RETAIL DEALER, OR
ANY COMBINATION OF PERSONS OWNING DIRECTLY OR INDIRECTLY, IN THE  AGGRE-
GATE,  MORE THAN TEN PERCENT OF THE OWNERSHIP INTERESTS IN THE APPLICANT
OR RETAIL DEALER:
  (A) OWES FIVE HUNDRED DOLLARS OR MORE IN DELINQUENT CIGARETTE TAXES;
  (B) HAD A REGISTRATION ISSUED UNDER THIS SECTION OR A  LICENSE  ISSUED
UNDER SECTION FOUR HUNDRED EIGHTY OF THIS ARTICLE REVOKED BY THE COMMIS-
SIONER WITHIN THE PAST TWO YEARS; OR
  (C) HAS BEEN CONVICTED OF A CRIME RELATING TO COUNTERFEIT CIGARETTES.
  Anything  to  the  contrary in any law notwithstanding, retail dealers
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  of
the  public  health  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 of the public health law.
  [(ii)]  (III) Anything to the contrary in any law notwithstanding, the
commissioner shall provide upon request to  an  enforcement  officer  as
defined  in section thirteen hundred ninety-nine-aa of the public health
law such registration information as is relevant and necessary  for  the
implementation of article thirteen-F of the public health law.
  (a)  If  a  retail  dealer  possesses or sells unstamped or unlawfully
stamped packages of cigarettes, [or if a retail dealer is also  licensed
as  an  agent  pursuant  to  section  four  hundred  seventy-two  and it
possesses unlawfully stamped packages of cigarettes or  sells  unstamped
or  unlawfully stamped packages of cigarettes at retail,] (i) its regis-
tration shall be suspended for a period of not more than six months,  or
(ii) for a second such possession or sale within a period of five years,
its  registration  shall  be  suspended for a period of up to thirty-six
months, or (iii) for a third such possession or sale within a period  of
five  years,  its registration may be revoked for a period of up to five
years. A retail dealer registration shall be suspended or revoked pursu-
ant to this subdivision immediately upon such dealer's receipt of  writ-
ten  notice  of  suspension  or  revocation from the commissioner. [If a
retail dealer sells cigarettes through more than one place  of  business
in  this state, the retail dealer registration shall not be suspended or
revoked pursuant to this subdivision, but the certificate  of  registra-
tion  issued  to  the  place  of  business,  cart, stand, truck or other
merchandising device where unstamped or  unlawfully  stamped  cigarettes
were  found  shall  be  suspended or cancelled for possession or sale of
unstamped or unlawfully stamped  packages  of  cigarettes,  as  if  such
certificate of registration were a retail dealer registration. A suspen-
sion  or  cancellation of a certificate of registration shall be treated
as if it were a suspension or revocation of a registration. If unstamped
or unlawfully stamped cigarettes are found in a  retail  dealer's  ware-
house,  the]  THE suspension or revocation of the retail dealer's regis-
tration pursuant to this subdivision shall be applicable to each  retail
place  of  business in this state through which such retail dealer sells
cigarettes. IF A RETAIL DEALER COMMITS ANY VIOLATION  OTHER  THAN  THOSE

A. 1362                            14

DESCRIBED  IN  THIS  SUBDIVISION OR SUBDIVISION ONE OF THIS SECTION, THE
COMMISSIONER MAY SUSPEND OR REVOKE THE RETAIL DEALER'S REGISTRATION.
  S 14. Subdivision 5 of section 480-a of the tax law is REPEALED.
  S 15. Subparagraph (v) of paragraph (a) of subdivision 1 and paragraph
(b)  of subdivision 2 of section 481 of the tax law, subparagraph (v) of
paragraph (a) of subdivision 1 as amended by chapter 65 of the  laws  of
1985  and paragraph (b) of subdivision 2 as amended by chapter 61 of the
laws of 1989, are amended, subdivision 4 is renumbered subdivision 9 and
five new subdivisions 4, 5, 6, 7 and 8 are added to read as follows:
  (v) The penalties and interest provided  for  in  this  paragraph,  IN
ADDITION  TO  ANY OTHER PENALTY IMPOSED BY THIS ARTICLE, shall be deter-
mined, assessed, collected and paid in the  same  manner  as  the  taxes
imposed  by  this  article  and  shall  be  disposed of as [hereinafter]
provided IN THIS SUBDIVISION with respect to  moneys  derived  from  the
tax. Interest under this paragraph shall be compounded daily.
  (b) Nothing in this section shall apply to common or contract carriers
or  warehousemen  while  engaged  in  lawfully transporting [or storing]
tobacco products or unstamped  packages  of  cigarettes  as  merchandise
THROUGH  THIS STATE TO ANOTHER LOCATION UNDER A PROPER BILL OF LADING OR
FREIGHT BILL, OR STORING TOBACCO PRODUCTS  OR  UNSTAMPED  CIGARETTES  ON
BEHALF OF A LICENSED AGENT, nor to any employee of such carrier or ware-
houseman acting within the scope of his OR HER employment, nor to public
officers  or  employees  in  the  performance  of  their official duties
requiring possession or control of  tobacco  products  or  unstamped  or
unlawfully  stamped  packages of cigarettes, nor to temporary incidental
possession by employees  or  agents  of  persons  lawfully  entitled  to
possession, nor to persons whose possession is for the purpose of aiding
police officers in performing their duties.
  4. WHOEVER OMITS, NEGLECTS, OR REFUSES TO COMPLY WITH ANY DUTY IMPOSED
UPON  HIM  OR HER BY THIS ARTICLE, OR TO DO, OR CAUSE TO BE DONE, ANY OF
THE THINGS REQUIRED BY THIS ARTICLE, OR DOES ANYTHING PROHIBITED BY THIS
ARTICLE, SHALL, IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS  ARTI-
CLE  OR  ARTICLE THIRTY-SEVEN OF THIS CHAPTER, BE LIABLE TO A PENALTY OF
FIVE THOUSAND DOLLARS OR FIVE TIMES THE RETAIL VALUE OF  THE  CIGARETTES
INVOLVED,  WHICHEVER IS GREATER, TO BE RECOVERED, WITH COSTS OF SUIT, IN
A CIVIL ACTION.
  5. WHOEVER FAILS TO PAY ANY TAX IMPOSED BY THIS ARTICLE  AT  THE  TIME
PRESCRIBED BY LAW OR REGULATIONS, SHALL, IN ADDITION TO ANY OTHER PENAL-
TY  PROVIDED  IN  THIS ARTICLE, BE LIABLE TO A PENALTY OF FIVE TIMES THE
TAX DUE BUT UNPAID.
  6. ALL CIGARETTES WHICH ARE HELD FOR SALE, DISTRIBUTION OR USE  WITHIN
THE BORDERS OF THIS STATE IN VIOLATION OF THE REQUIREMENTS OF THIS ARTI-
CLE SHALL BE FORFEITED TO THE STATE.
  7.  (A)  WHOEVER,  WITH  INTENT TO DEFRAUD THIS STATE, FAILS TO COMPLY
WITH ANY REQUIREMENT OF THIS ARTICLE OR REGULATIONS PRESCRIBED  PURSUANT
TO  THIS  ARTICLE SHALL, FOR EACH SUCH OFFENSE, IN ADDITION TO ANY OTHER
PENALTY PROVIDED IN THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF  THIS  CHAP-
TER,  BE  FINED  TEN THOUSAND DOLLARS OR BE IMPRISONED FOR NOT MORE THAN
FIVE YEARS, OR BOTH.
  (B) WHOEVER KNOWINGLY VIOLATES ANY PROVISION OF  THIS  ARTICLE  OR  OF
REGULATIONS  PRESCRIBED  PURSUANT  TO  THIS ARTICLE SHALL, FOR EACH SUCH
OFFENSE, IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS  ARTICLE,  BE
FINED NOT MORE THAN FIVE THOUSAND DOLLARS OR FIVE TIMES THE RETAIL VALUE
OF THE CIGARETTES INVOLVED, WHICHEVER IS GREATER, OR IMPRISONED NOT MORE
THAN ONE YEAR, OR BOTH.

A. 1362                            15

  8.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE SALE OR POSSESSION
FOR SALE OF COUNTERFEIT CIGARETTES BY A MANUFACTURER,  IMPORTER,  AGENT,
OR DEALER SHALL RESULT IN THE SEIZURE OF THE PRODUCT AND RELATED MACHIN-
ERY  BY  THE  COMMISSIONER  OR  ANY  LAW ENFORCEMENT AGENCY AND SHALL BE
PUNISHABLE  AS  FOLLOWS:  (A) A FIRST VIOLATION WITH A TOTAL QUANTITY OF
LESS THAN TWO CARTONS OF CIGARETTES SHALL BE PUNISHABLE BY A FINE OF ONE
THOUSAND DOLLARS OR FIVE  TIMES  THE  RETAIL  VALUE  OF  THE  CIGARETTES
INVOLVED,  WHICHEVER  IS  GREATER,  OR  IMPRISONMENT  NOT TO EXCEED FIVE
YEARS, OR BOTH.
  (B) A SUBSEQUENT VIOLATION WITH A TOTAL  QUANTITY  OF  LESS  THAN  TWO
CARTONS  OF  CIGARETTES  SHALL  BE PUNISHABLE BY A FINE OF FIVE THOUSAND
DOLLARS OR FIVE TIMES THE  RETAIL  VALUE  OF  THE  CIGARETTES  INVOLVED,
WHICHEVER IS GREATER, OR IMPRISONMENT NOT TO EXCEED FIVE YEARS, OR BOTH,
AND  SHALL  ALSO  RESULT  IN  THE REVOCATION BY SUCH COMMISSIONER OF THE
MANUFACTURER, IMPORTER, AGENT, OR DEALER LICENSE.
  (C) A FIRST VIOLATION WITH A TOTAL QUANTITY OF TWO  CARTONS  OF  CIGA-
RETTES  OR MORE SHALL BE PUNISHABLE BY A FINE OF TWO THOUSAND DOLLARS OR
FIVE TIMES THE RETAIL VALUE OF THE  CIGARETTES  INVOLVED,  WHICHEVER  IS
GREATER, OR IMPRISONMENT NOT TO EXCEED FIVE YEARS, OR BOTH.
  (D)  A  SUBSEQUENT  VIOLATION  WITH A QUANTITY OF TWO CARTONS OF CIGA-
RETTES OR MORE SHALL BE PUNISHABLE BY A FINE OF FIFTY  THOUSAND  DOLLARS
OR  FIVE TIMES THE RETAIL VALUE OF THE CIGARETTES INVOLVED, WHICHEVER IS
GREATER, OR IMPRISONMENT NOT TO EXCEED FIVE YEARS, OR  BOTH,  AND  SHALL
ALSO  RESULT IN THE REVOCATION BY SUCH COMMISSIONER OF THE MANUFACTURER,
IMPORTER, AGENT, OR DEALER LICENSE.
  FOR PURPOSES OF THIS SUBDIVISION, COUNTERFEIT CIGARETTES INCLUDE CIGA-
RETTES THAT HAVE FALSE MANUFACTURING LABELS OR  PACKAGES  OF  CIGARETTES
BEARING COUNTERFEIT TAX STAMPS. ANY COUNTERFEIT CIGARETTES SEIZED BY THE
COMMISSIONER SHALL BE DESTROYED.
  S  16.  Subdivision  (a) of section 1846 of the tax law, as amended by
chapter 556 of the laws of 2011, is amended to read as follows:
  (a) 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 subject to tax provided by article  twenty
of  this  chapter or by chapter thirteen of title eleven of the adminis-
trative code of the city of New York, and upon which  the  tax  has  not
been  paid or the stamps not affixed as required by such article or such
chapter thirteen, OR ANY CIGARETTES OTHERWISE BEING POSSESSED OR HELD IN
VIOLATION OF ARTICLE TWENTY OF THIS CHAPTER, they are hereby  authorized
and empowered forthwith to seize and take possession of such cigarettes,
together  with  any vending machine or receptacle in which they are held
for sale. Such cigarettes, vending machine or  receptacle  seized  by  a
police officer or such peace officer shall be turned over to the commis-
sioner.  Such  seized  cigarettes,  vending  machine  or receptacle, not
including money contained in such vending machine or  receptacle,  shall
be  forfeited  to  the  state. The commissioner may, within a reasonable
time thereafter, upon publication of a notice  to  such  effect  for  at
least  five  successive  days,  before  the  day of sale, in a newspaper
published or circulated in the county where the seizure was  made,  sell
such  forfeited  vending  machines or receptacles at public sale and pay
the proceeds into the state treasury to the credit of the general  fund.
Notwithstanding  any  other  provision of this section, the commissioner
may enter into an agreement with any city of this state which is author-
ized to impose a tax similar to that imposed by article twenty  of  this
chapter  to  provide  for the disposition between the state and any such

A. 1362                            16

city of the proceeds from any such sale.   All cigarettes  forfeited  to
the  state  shall  be  destroyed  or  used for law enforcement purposes,
except that cigarettes that violate,  or  are  suspected  of  violating,
federal trademark laws or import laws shall not be used for law enforce-
ment  purposes. If the commissioner determines the cigarettes may not be
used for law enforcement  purposes,  the  commissioner  must,  within  a
reasonable  time  after the forfeiture of such cigarettes, upon publica-
tion in the state  registry,  destroy  such  forfeited  cigarettes.  The
commissioner  may,  prior  to  any destruction of cigarettes, permit the
true holder of the trademark rights in the cigarettes  to  inspect  such
forfeited  cigarettes  in order to assist in any investigation regarding
such cigarettes.
  S 17. Section 1814 of the tax law, as amended by section  28  of  sub-
part I of part V-1 of chapter 57 of the laws of 2009, is amended to read
as follows:
  S  1814. Cigarette and tobacco products tax.--(a) Any person who will-
fully attempts in any manner to evade or defeat  the  taxes  imposed  by
article  twenty  of  this chapter or payment thereof on (i) ten thousand
cigarettes or more (ii) twenty-two thousand cigars  or  more,  or  (iii)
four  hundred  forty  pounds  of  tobacco or more or has previously been
convicted two or more times of a violation of  paragraph  [one]  (I)  of
this subdivision shall be guilty of a class [E] D felony.
  (b)  Any person, other than an agent licensed by the commissioner, who
possesses or transports for the purpose of sale any unstamped or  unlaw-
fully  stamped  packages of cigarettes subject to tax imposed by section
four hundred seventy-one of this chapter, or who  sells  or  offers  for
sale unstamped or unlawfully stamped packages of cigarettes in violation
of the provisions of article twenty of this chapter shall be guilty of a
[misdemeanor] CLASS E FELONY.  Any person who violates the provisions of
this  subdivision  after having previously been convicted of a violation
of this subdivision within the preceding five years shall be guilty of a
class [E] D felony.
  (c) (1) Any person, other than an agent licensed by the  commissioner,
who  willfully possesses or transports for the purpose of sale ten thou-
sand or more cigarettes subject to  the  tax  imposed  by  section  four
hundred  seventy-one  of  this  chapter  in  any unstamped or unlawfully
stamped packages or who willfully sells or offers for sale ten  thousand
or  more  cigarettes  in any unstamped or unlawfully stamped packages in
violation of article twenty of this chapter shall be guilty of  a  class
[E] D felony.
  (2)  Any person, other than an agent licensed by the commissioner, who
willfully possesses or transports for the purpose of sale  thirty  thou-
sand  or  more  cigarettes  subject  to  the tax imposed by section four
hundred seventy-one of this  chapter  in  any  unstamped  or  unlawfully
stamped  packages or who willfully sells or offers for sale thirty thou-
sand or more cigarettes in any unstamped or unlawfully stamped  packages
in  violation  of  article  twenty  of this chapter shall be guilty of a
class [D] C felony.
  (d) For the purposes of this section, the possession or transportation
within this state by any person, other than an agent, at any one time of
five thousand or more cigarettes  in  unstamped  or  unlawfully  stamped
packages   shall  be  presumptive  evidence  that  such  cigarettes  are
possessed or transported for the purpose of sale and are subject to  the
tax  imposed  by  section four hundred seventy-one of this chapter. With
respect to such possession or transportation any provisions  of  article
twenty  of  this  chapter providing for a time period during which a use

A. 1362                            17

tax imposed by such article may  be  paid  on  unstamped  cigarettes  or
unlawfully  or  improperly stamped cigarettes or during which such ciga-
rettes may be returned to an agent shall not apply. The possession with-
in  this  state  of  more  than  four hundred cigarettes in unstamped or
unlawfully stamped packages by any person other than an agent at any one
time shall be presumptive evidence that such cigarettes are  subject  to
tax as provided by article twenty of this chapter.
  (e) Nothing in this section shall apply to common or contract carriers
or  warehousemen  while  engaged  in  lawfully transporting [or storing]
TOBACCO PRODUCTS OR unstamped  packages  of  cigarettes  as  merchandise
THROUGH  THIS STATE TO ANOTHER LOCATION UNDER A PROPER BILL OF LADING OR
FREIGHT BILL, or [lawfully transporting or] storing tobacco products  OR
UNSTAMPED  CIGARETTES ON BEHALF OF A LICENSED AGENT, nor to any employee
of such carrier or warehouseman acting within the scope of  his  OR  HER
employment,  nor  to  public officers or employees in the performance of
their official duties requiring possession or control  of  unstamped  or
unlawfully  stamped  packages  of cigarettes or possession or control of
tobacco products, nor to temporary incidental possession by employees or
agents of persons lawfully entitled to possession, nor to persons  whose
possession  is  for  the purpose of aiding police officers in performing
their duties.
  (f) Any willful act or omission, other than those described in section
eighteen hundred one of this article or subdivision (a), (b), (c),  (d),
(e),  (g), (h) or (i) of this section, by any person which constitutes a
violation of any provision of  article  twenty  of  this  chapter  shall
constitute a [misdemeanor] CLASS E FELONY.
  (g)  Any  person who falsely or fraudulently makes, alters or counter-
feits any stamp prescribed by the [tax  commission]  COMMISSIONER  under
the  provisions of article twenty of this chapter, or causes or procures
to be falsely or fraudulently made, altered or  counterfeited  any  such
stamp,  or  knowingly and willfully utters, purchases, passes or tenders
as true any such false, altered or counterfeited stamp, or knowingly and
willfully possesses any cigarettes in packages bearing any  such  false,
altered  or  counterfeited stamp, and any person who knowingly and will-
fully makes, causes to be made, purchases or  receives  any  device  for
forging  or counterfeiting any stamp, prescribed by the [tax commission]
COMMISSIONER under the provisions of article twenty of this chapter,  or
who  knowingly  and willfully possesses any such device, shall be guilty
of a class [E] D felony. For the purposes of this subdivision, the words
"stamp prescribed by the [tax commission] COMMISSIONER" shall include  a
stamp,  impression  or imprint made by a metering machine, the design of
which has been approved by such [commission] COMMISSIONER.
  (h) (1) Any dealer, other than a distributor appointed by the  commis-
sioner  [of  taxation and finance] under article twenty of this chapter,
who shall knowingly transport or have in his OR HER custody,  possession
or under his OR HER control more than ten pounds of tobacco or more than
five  hundred  cigars  upon which the taxes imposed by article twenty of
this chapter have not been assumed or paid by a distributor appointed by
the commissioner of taxation and finance under article  twenty  of  this
chapter,  or  other  person treated as a distributor pursuant to section
four hundred seventy-one-d of this chapter, shall be guilty of a  misde-
meanor punishable by a fine of not more than five thousand dollars or by
a term of imprisonment not to exceed thirty days.
  (2)  Any person, other than a dealer or a distributor appointed by the
commissioner under article twenty of this chapter, who  shall  knowingly
transport  or have in his OR HER custody, possession or under his OR HER

A. 1362                            18

control more than fifteen pounds of tobacco or more than  seven  hundred
fifty  cigars  upon  which  the  taxes imposed by article twenty of this
chapter have not been assumed or paid by a distributor appointed by  the
commissioner  under  article  twenty  of  this  chapter, or other person
treated as a distributor pursuant to section four hundred  seventy-one-d
of this chapter shall be guilty of a misdemeanor punishable by a fine of
not  more than five thousand dollars or by a term of imprisonment not to
exceed thirty days.
  (3) Any person, other than a distributor appointed by the commissioner
under article twenty of this chapter, who shall knowingly  transport  or
have in his OR HER custody, possession or under his OR HER control twen-
ty-five  hundred  or more cigars or fifty or more pounds of tobacco upon
which the taxes imposed by article twenty of this chapter have not  been
assumed  or  paid  by  a distributor appointed by the commissioner under
article twenty of this chapter, or other person treated as a distributor
pursuant to section four hundred seventy-one-d of this chapter shall  be
guilty of a misdemeanor. Provided further, that any person who has twice
been convicted under this subdivision shall be guilty of a class E felo-
ny  for  any  subsequent  violation  of  this section, regardless of the
amount of tobacco products involved in such violation.
  (4) For purposes of this  subdivision,  such  person  shall  knowingly
transport  or have in his OR HER custody, possession or under his OR HER
control tobacco or cigars on which such taxes have not been  assumed  or
paid  by  a  distributor appointed by the commissioner where such person
has knowledge of the requirement of the tax  on  tobacco  products  and,
where  to his OR HER knowledge, such taxes have not been assumed or paid
on such tobacco products by a distributor appointed by the  commissioner
[of taxation and finance].
  (i)  Any  person who falsely or fraudulently makes, alters or counter-
feits  a  registration  certificate  or  sticker  required   under   the
provisions  of  section four hundred eighty-a of this chapter, or causes
or procures to be falsely or fraudulently made, altered or counterfeited
any such registration certificate or sticker, or knowingly and willfully
utters, purchases, passes or tenders as true any such false, altered  or
counterfeited  registration  certificate  or sticker, and any person who
knowingly and willfully makes, causes to be made, purchases or  receives
any device for forging or counterfeiting any registration certificate or
sticker  required under the provisions of such section, or who knowingly
and willfully possesses any such device, shall be guilty of a  class  [B
misdemeanor] E FELONY.
  S 18. Severability. If any provision of this act or the application of
any  provision  of  this act to any person or circumstance is held to be
invalid, the remainder of this act and the application of the provisions
of this act to any other person or circumstance shall  not  be  affected
thereby  and  shall continue to be enforced to the fullest extent possi-
ble.
  S 19. This act shall take effect on the ninetieth day after  it  shall
have become a law.