S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2609
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 19, 2021
                                ___________
 
 Introduced  by  M.  of A. FALL, TAYLOR, NIOU, COOK, GRIFFIN -- 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.
              

                                                            LBD06083-01-1

 A. 2609                             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 added by section 1 of part UU of
 chapter 59 of the laws of 2019, 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.
   § 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  receives
 from  the registration fees under section eleven hundred eighty-three of
 this article, before deposit into  the  tobacco  control  and  insurance

 A. 2609                             3
 
 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
 THEIR USE OF SUCH PRODUCTS, INCLUDING BUT NOT LIMITED TO THE TOBACCO AND

 A. 2609                             4
 
 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.