S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9857
 
                           I N  A S S E M B L Y
 
                              April 24, 2024
                                ___________
 
 Introduced  by M. of A. STERN -- read once and referred to the Committee
   on Health
 
 AN ACT to amend the public health law, in relation  to  requiring  vapor
   products  dealers  to  be registered with the department of health; to
   amend the tax law, in relation to the registration of  vapor  products
   dealers  by  municipalities,  and  the  revocation of a vapor products
   dealer certificate of registration by the commissioner of taxation and
   finance; and to amend the public health law, the tax law, the cannabis
   law and the alcoholic beverage control law, in relation to the revoca-
   tion of licenses and registrations for the knowing and  unlawful  sale
   of cannabis
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The public health law is amended by adding  a  new  section
 1399-mm-4 to read as follows:
   § 1399-MM-4. VAPOR PRODUCTS DEALER REGISTRATION. 1. ANY VAPOR PRODUCTS
 DEALER  SELLING VAPOR PRODUCTS IN THE STATE SHALL BE REGISTERED WITH THE
 DEPARTMENT. THE DEPARTMENT SHALL OVERSEE THE OPERATIONS OF  SUCH  REGIS-
 TERED VAPOR PRODUCTS DEALERS.
   2.  (A)  A  MUNICIPALITY MAY REQUIRE ADDITIONAL, MUNICIPALITY-SPECIFIC
 REGISTRATION OR LICENSING OF VAPOR PRODUCTS DEALERS.  SUCH  MUNICIPALITY
 MAY  ESTABLISH  GROUNDS FOR REVOCATION OF SUCH A REGISTRATION OR LICENSE
 WHICH MAY INCLUDE, BUT SHALL NOT BE LIMITED TO, THE KNOWING AND UNLAWFUL
 SALE OF ANY CANNABIS, CANNABIS PRODUCT AS DEFINED IN SUBDIVISION NINE OF
 SECTION THREE OF THE CANNABIS LAW, OR CONCENTRATED CANNABIS  AS  DEFINED
 IN SUBDIVISION SEVENTEEN OF SECTION THREE OF THE CANNABIS LAW.
   (B)  A  MUNICIPALITY  SHALL REVOKE THE CERTIFICATE OF OCCUPANCY OF ANY
 VAPOR PRODUCTS DEALER THAT KNOWINGLY AND UNLAWFULLY SELLS ANY  CANNABIS,
 CANNABIS  PRODUCT AS DEFINED IN SUBDIVISION NINE OF SECTION THREE OF THE
 CANNABIS LAW, OR CONCENTRATED CANNABIS AS DEFINED IN SUBDIVISION  SEVEN-
 TEEN OF SECTION THREE OF THE CANNABIS LAW.
   §  2.  The  public  health  law  is  amended  by  adding a new section
 1399-mm-5 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11877-01-3
              

 A. 9857                             2
 
   § 1399-MM-5. UNLAWFUL SALE OF CANNABIS BY VAPOR PRODUCTS DEALERS.  ANY
 VAPOR  PRODUCTS DEALER THAT KNOWINGLY AND UNLAWFULLY SELLS ANY CANNABIS,
 CANNABIS PRODUCT AS DEFINED IN SUBDIVISION NINE OF SECTION THREE OF  THE
 CANNABIS  LAW, OR CONCENTRATED CANNABIS AS DEFINED IN SUBDIVISION SEVEN-
 TEEN  OF SECTION THREE OF THE CANNABIS LAW SHALL BE SUBJECT TO A PENALTY
 OF TEN THOUSAND DOLLARS.
   § 3. Paragraph 1 of subdivision (d) of section 1183 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:
   (1)  The commissioner shall refuse to issue a certificate of registra-
 tion to any applicant who  does  not  possess  a  valid  certificate  of
 authority  under section eleven hundred thirty-four of this chapter.  In
 addition, the commissioner may refuse to issue a certificate  of  regis-
 tration,  or  suspend,  cancel  or  revoke a certificate of registration
 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 certificate of registration under this article or any  license  or
 registration  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 article; (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 dealer registration has been
 revoked and where such revocation is still in effect, unless the  appli-
 cant  or  vapor  products dealer provides the commissioner with adequate
 documentation demonstrating that such applicant or vapor products dealer
 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;  OR  (H) KNOWINGLY AND UNLAWFULLY SELLS ANY
 CANNABIS, CANNABIS PRODUCT AS DEFINED IN  SUBDIVISION  NINE  OF  SECTION
 THREE OF THE CANNABIS LAW, OR CONCENTRATED CANNABIS AS DEFINED IN SUBDI-
 VISION SEVENTEEN OF SECTION THREE OF THE CANNABIS LAW.
   §  4.  Section 1399-ee of the public health law is amended by adding a
 new subdivision 7 to read as follows:
   7. IF THE COMMISSIONER OR HIS OR  HER  DESIGNEE  DETERMINES,  AFTER  A
 HEARING,  THAT  A  RETAIL  DEALER  HAS VIOLATED SECTION THIRTEEN HUNDRED
 NINETY-NINE-MM-FIVE OF THIS ARTICLE HE OR  SHE  SHALL,  IN  ADDITION  TO
 IMPOSING ANY OTHER PENALTY REQUIRED OR PERMITTED BY THIS SECTION, DIRECT
 THE  CANNABIS  CONTROL BOARD, THE STATE LIQUOR AUTHORITY AND THE DEPART-
 MENT OF TAXATION AND FINANCE TO REVOKE ANY LICENSE  OR  REGISTRATION  OF
 THE DEALER AS PERMITTED BY LAW FOR SUCH A VIOLATION.
   §  5.  Section 1607 of the tax law is amended by adding a new subdivi-
 sion i to read as follows:
   I. A VIOLATION OF SECTION THIRTEEN HUNDRED NINETY-NINE-MM-FIVE OF  THE
 PUBLIC  HEALTH  LAW, AS PROVIDED IN THIS SUBDIVISION, A LICENSE SHALL BE
 REVOKED UPON NOTIFICATION TO THE DIVISION BY THE COMMISSIONER OF  HEALTH
 OF  A  LOTTERY SALES AGENT'S VIOLATION OF SECTION THIRTEEN HUNDRED NINE-
 TY-NINE-MM-FIVE OF THE PUBLIC HEALTH LAW.
   § 6. Subdivision 4 of section 133 of the cannabis law  is  amended  by
 adding a new paragraph (c) to read as follows:
 A. 9857                             3
 
   (C)  AS  USED IN THIS SECTION, THE TERM "FOR CAUSE" SHALL ALSO INCLUDE
 THE BOARD BEING NOTIFIED BY THE COMMISSIONER OF HEALTH OF A VIOLATION OF
 SECTION THIRTEEN HUNDRED NINETY-NINE-MM-FIVE OF THE PUBLIC HEALTH LAW.
   §  7.  Subdivision  3 of section 118 of the alcoholic beverage control
 law is amended by adding a new paragraph (d) to read as follows:
   (D) AS USED IN THIS SECTION, THE TERM "FOR CAUSE" SHALL  ALSO  INCLUDE
 THE  STATE LIQUOR AUTHORITY BEING NOTIFIED BY THE COMMISSIONER OF HEALTH
 OF A VIOLATION OF SECTION THIRTEEN HUNDRED  NINETY-NINE-MM-FIVE  OF  THE
 PUBLIC HEALTH LAW.
   § 8. This act shall take effect immediately.