S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8559
 
                             I N  S E N A T E
 
                             February 13, 2024
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 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  a  new
 subdivision (c) to read as follows:
   (C) "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 OF TAXATION AND
 FINANCE TO MAKE RETURNS AND PAY THE TAX ON VAPOR PRODUCTS SOLD, SHIPPED,
 OR DELIVERED BY HIM OR HER TO ANY PERSON IN THE STATE.
   § 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]  VAPOR
 PRODUCTS SOLD BY A VAPOR PRODUCTS DISTRIBUTOR TO A VAPOR PRODUCTS DEALER
 in  this state. The tax is imposed on the purchaser and collected by the
 vapor products dealer as defined in subdivision (b)  of  section  eleven
 hundred  eighty  of  this  article,  in  trust for and on account of the
 state. The taxes imposed under this section shall not apply to adult-use
 cannabis products subject to tax under article twenty-C of this chapter.
   (B) THE VAPOR PRODUCTS DISTRIBUTOR SHALL BE LIABLE FOR THE PAYMENT  OF
 THE  TAX  ON  VAPOR  PRODUCTS  WHICH  HE  OR SHE IMPORTS OR CAUSES TO BE
 IMPORTED INTO THE STATE, OR WHICH HE OR SHE MANUFACTURES IN  THE  STATE,
 AND  EVERY  VAPOR PRODUCTS DISTRIBUTOR AUTHORIZED BY THE COMMISSIONER OF
 TAXATION AND FINANCE TO MAKE RETURNS AND PAY THE TAX ON TOBACCO PRODUCTS
 SOLD, SHIPPED OR DELIVERED BY HIM OR HER TO  ANY  PERSON  IN  THE  STATE
 SHALL  BE  LIABLE  FOR  THE  PAYMENT OF THE TAX ON ALL VAPOR PRODUCTS SO
 SOLD, SHIPPED OR DELIVERED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14445-01-4
              

 S. 8559                             2
 
   (C) EVERY VAPOR PRODUCTS DEALER SHALL BE LIABLE FOR  THE  TAX  ON  ALL
 VAPOR  PRODUCTS IN HIS OR HER POSSESSION AT ANY TIME, UPON WHICH TAX HAS
 NOT BEEN PAID OR ASSUMED BY A VAPOR PRODUCTS  DISTRIBUTOR  APPOINTED  BY
 THE  COMMISSIONER  OF TAXATION AND FINANCE, AND THE FAILURE OF ANY VAPOR
 PRODUCTS  DEALER  TO PRODUCE AND EXHIBIT TO THE COMMISSIONER OF TAXATION
 AND FINANCE OR HIS OR HER  AUTHORIZED  REPRESENTATIVE  UPON  DEMAND,  AN
 INVOICE BY A VAPOR PRODUCTS DISTRIBUTOR FOR ANY VAPOR PRODUCTS IN HIS OR
 HER  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 a new section 1183-a 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.
   (C) EVERY VAPOR PRODUCTS DISTRIBUTOR SHALL PUBLICLY DISPLAY IN HIS  OR
 HER 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-
 S. 8559                             3
 
 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 HE OR
 SHE 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
 S. 8559                             4
 
 PRODUCTS  DISTRIBUTOR  IN THIS STATE SHALL BE REVOKED FOR A PERIOD OF UP
 TO FIVE YEARS.
   §  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.
   (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 SHALL,
 ON OR BEFORE THE TWENTIETH DAY OF EACH MONTH, FILE WITH THE COMMISSIONER
 OF TAXATION AND FINANCE A RETURN ON FORMS TO BE PRESCRIBED AND FURNISHED
 BY THE COMMISSIONER, SHOWING THE QUANTITY AND  WHOLESALE  PRICE  OF  ALL
 VAPOR  PRODUCTS  IMPORTED OR CAUSED TO BE IMPORTED INTO THE STATE BY HIM
 OR HER OR MANUFACTURED IN THE STATE BY HIM OR HER, DURING THE  PRECEDING
 CALENDAR  MONTH.  EVERY  VAPOR  PRODUCTS  DISTRIBUTOR  AUTHORIZED BY THE
 COMMISSIONER TO MAKE RETURNS AND PAY THE TAX  ON  VAPOR  PRODUCTS  SOLD,
 SHIPPED,  OR  DELIVERED  BY  HIM OR HER TO ANY 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 HE OR  SHE  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 HE OR SHE 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 HE OR SHE MAY DEEM PROPER IF SATISFIED THAT
 NO TAX IMPOSED BY THIS ARTICLE IS OR WILL  BE  PAYABLE  BY  HIM  OR  HER
 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.
   (c) Notwithstanding the provisions of this section or  section  eleven
 hundred  forty-six  of this chapter, the commissioner may, in his or her
 S. 8559                             5
 
 discretion, permit the commissioner of health or his or  her  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 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.  THE  COMMISSIONER OR THE COMMISSIONER'S DULY
 AUTHORIZED REPRESENTATIVES ARE HEREBY AUTHORIZED:
   (A) 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.
   (B) 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-
 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.
   (C) 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.
   (D)  THE  COMMISSIONER OR THE COMMISSIONER'S DULY AUTHORIZED REPRESEN-
 TATIVES SHALL SEIZE ANY NON-TAX-PAID VAPOR 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.
   (E) ALL NON-TAX-PAID VAPOR 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 HEAR-
 ING, BE FORFEITED TO THE STATE. IF THE DEPARTMENT  DETERMINES  THE  NON-
 S. 8559                             6
 
 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.
   §  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.