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

                                 8064--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 5, 2015
                               ___________

Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
  on Ways and Means  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend the tax law and the state finance law, in relation to
  the creation of the cigarette tax  enforcement  fund;  and  making  an
  appropriation therefor

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

  Section 1. Subdivision 1 of section 472 of the tax law, as amended  by
chapter  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  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, PLUS THE PAYMENT  BY  THE
AGENT  OF  A CONCURRENT EXPENSE ALLOWANCE FOR THE CIGARETTE TAX ENFORCE-
MENT FUND ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-QQQQ OF THE STATE
FINANCE LAW OF FOUR CENTS PER STAMP WHICH SHALL BE DEPOSITED PURSUANT TO
SUBDIVISION (C) OF SECTION FOUR HUNDRED EIGHTY-TWO OF THIS ARTICLE,  and
may from time to time and as often as he 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 may deem necessary and may license agents
for  such  purpose.  The commissioner may license dealers in cigarettes,
who maintain separate warehousing facilities for the purpose of  receiv-
ing  and distributing cigarettes and conducting their business, 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 importers, exporters and  manufacturers  of  ciga-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11313-06-5
              

A. 8064--A                          2

rettes,  and  other persons within or without the state as agents to buy
or affix stamps to be used in paying the  tax  herein  imposed,  but  an
agent  shall  at  all  times have the right to appoint the person in his
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  deal-
ers'  licenses,  including  the  procedure  for  suspension, revocation,
refusal to license and for hearings, except for paragraphs (c)  and  (g)
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 services and expenses as such agent in selling or
affixing such stamps, and to retain out of the moneys to be paid by  him
for such stamps, a commission on the par value thereof. The commissioner
is hereby authorized to prescribe a schedule of commissions, not exceed-
ing  five  per  centum,  allowable to such agent for buying and affixing
such stamps. Such schedule shall be uniform with respect to the  differ-
ent  types  of stamps used, and may be on a graduated scale with respect
to the  number  of  stamps  purchased.  The  commissioner  may,  in  his
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.
  S 2. Section 482 of the tax law is amended by adding a new subdivision
(c) to read as follows:
  (C)  FROM  THE AMOUNTS RECEIVED PURSUANT TO SUBDIVISION ONE OF SECTION
FOUR HUNDRED SEVENTY-TWO OF THIS ARTICLE, THE COMMISSIONER SHALL DEPOSIT
IN THE CIGARETTE TAX ENFORCEMENT FUND ESTABLISHED  PURSUANT  TO  SECTION
NINETY-SEVEN-QQQQ OF THE STATE FINANCE LAW THE CONCURRENT EXPENSE ALLOW-
ANCE FOR THE CIGARETTE TAX ENFORCEMENT FUND OF FOUR CENTS PER STAMP.
  S  3. The state finance law is amended by adding a new section 97-qqqq
to read as follows:
  S 97-QQQQ. CIGARETTE TAX ENFORCEMENT FUND. 1. THERE IS HEREBY  CREATED
IN  THE  JOINT  CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF
TAXATION AND FINANCE AN ACCOUNT OF  THE  MISCELLANEOUS  SPECIAL  REVENUE
FUND TO BE KNOWN AS THE "CIGARETTE TAX ENFORCEMENT FUND".
  2.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
THE STATE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO  RECEIVE  FOR
DEPOSIT  TO  THE  CREDIT  OF  THE  CIGARETTE TAX ENFORCEMENT FUND MONIES

A. 8064--A                          3

RECEIVED FROM THE COMMISSIONER OF TAXATION AND FINANCE FROM THE  CONCUR-
RENT  EXPENSE ALLOWANCE PAID PURSUANT TO SUBDIVISION ONE OF SECTION FOUR
HUNDRED SEVENTY-TWO OF THE TAX LAW, MONIES RECEIVED FROM THE COMMISSION-
ER OF TAXATION AND FINANCE FROM THE SALE OF FORFEITED CIGARETTES AUTHOR-
IZED  PURSUANT TO SECTION EIGHTEEN HUNDRED FORTY-SIX OF THE TAX LAW, AND
OTHER MONIES APPROPRIATED, CREDITED  OR  TRANSFERRED  THERETO  FROM  ANY
OTHER FUND OR SOURCE.
  3.  THE  PROCEEDS  OF THE CIGARETTE TAX ENFORCEMENT FUND SHALL BE USED
SOLELY TO ENFORCE (I) THE COLLECTION OF THE  CIGARETTE  TAX  IMPOSED  BY
ARTICLE  TWENTY OF THE TAX LAW OR (II) THE CIGARETTE MARKETING STANDARDS
ACT, AS ESTABLISHED BY ARTICLE TWENTY-A OF THE TAX LAW.
  4. MONIES IN THE CIGARETTE TAX ENFORCEMENT FUND SHALL BE KEPT SEPARATE
AND APART AND SHALL NOT BE COMMINGLED  WITH  ANY  OTHER  MONEYS  IN  THE
CUSTODY  OF THE COMPTROLLER AND SHALL ONLY BE EXPENDED AS PROVIDED HERE-
IN.
  5. MONIES OF THE FUND SHALL BE AVAILABLE TO THE COMMISSIONER OF  TAXA-
TION AND FINANCE FOR PURPOSES OF CARRYING OUT THE PROVISIONS OF SUBDIVI-
SION  (J)  OF SECTION EIGHTEEN HUNDRED FOURTEEN OF THE TAX LAW AND SHALL
BE PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF THE  COMPTROLLER  ON
VOUCHERS  CERTIFIED  OR  APPROVED  BY  THE  COMMISSIONER OF TAXATION AND
FINANCE.
  6. IN THE MONTH IMMEDIATELY FOLLOWING THE MONTH IN WHICH  THE  BALANCE
OF THE FUND EXCEEDS SIX MILLION FIVE HUNDRED THOUSAND DOLLARS, THE COMP-
TROLLER SHALL, UPON RECEIPT OF A CERTIFICATE OF ALLOCATION ISSUED BY THE
DIRECTOR  OF THE DIVISION OF THE BUDGET, TRANSFER SIX MILLION DOLLARS TO
THE DIVISION OF STATE POLICE TO SUPPORT THE DIVISION'S CIGARETTE TAX, AS
IMPOSED BY ARTICLE TWENTY OF THE TAX LAW, AND  THE  CIGARETTE  MARKETING
STANDARDS  ACT,  AS  ESTABLISHED  BY  ARTICLE  TWENTY-A  OF THE TAX LAW,
ENFORCEMENT ACTIVITIES. THESE FUNDS MAY BE  APPORTIONED  TO  EITHER  THE
PATROL  ACTIVITIES  OR CRIMINAL INVESTIGATION ACTIVITIES PROGRAMS OF THE
DIVISION OF STATE POLICE, MAY BE  TRANSFERRED  OR  SUBALLOCATED  TO  ANY
OTHER  STATE  AGENCY OR PUBLIC AUTHORITY FOR THEIR COSTS ASSOCIATED WITH
THE ENFORCEMENT OF THE CIGARETTE TAX OR THE CIGARETTE  MARKETING  STAND-
ARDS  ACT,  AND  MAY BE USED TO CONTRACT WITH LOCAL ENFORCEMENT AGENCIES
FOR CIGARETTE TAX AND/OR CIGARETTE MARKETING STANDARDS  ACT  ENFORCEMENT
ACTIVITIES.
  S  4. Subdivisions (a), (b) and (c) of section 1846 of the tax law, as
amended by chapter 556 of the laws of  2011,  are  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, 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 commissioner. Such seized ciga-
rettes, 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

A. 8064--A                          4

the  seizure  was made, sell such forfeited vending machines or recepta-
cles 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 authorized 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 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 enforcement purposes. If the commissioner determines the
cigarettes may not be used for law enforcement purposes], UPON  PUBLICA-
TION  IN THE STATE REGISTRY, BE AVAILABLE FOR INSPECTION BY THE MANUFAC-
TURER WHO SHALL DETERMINE WHETHER SUCH CIGARETTES ARE OF SALEABLE QUALI-
TY AND SUCH CIGARETTES SHALL BE OFFERED FOR SALE TO SUCH  MANUFACTURERS.
ANY  CIGARETTES THAT ARE EITHER NOT INSPECTED BY THE MANUFACTURER WITHIN
FIVE DAYS OF THE PUBLICATION IN THE STATE REGISTRY OR ARE NOT  PURCHASED
BY  THE  MANUFACTURER  AFTER  BEING DETERMINED TO BE OF SALEABLE QUALITY
SHALL, UPON PUBLICATION IN THE STATE REGISTRY, BE OFFERED  FOR  SALE  TO
AGENTS,  AS  SUCH  TERM IS DEFINED IN SUBDIVISION ELEVEN OF SECTION FOUR
HUNDRED SEVENTY OF THIS CHAPTER, TO A PRICE  EQUALING  TWO  DOLLARS  AND
TWENTY CENTS PER PACK OF TWENTY CIGARETTES. ANY SUCH CIGARETTES THAT ARE
EITHER  NOT  SOLD WITHIN A REASONABLE PERIOD OF TIME AFTER BEING OFFERED
FOR SALE TO AGENTS OR DEEMED UNSALEABLE BY THE MANUFACTURER SHALL,  UPON
PUBLICATION IN THE STATE REGISTRY, BE DESTROYED OR USED FOR LAW ENFORCE-
MENT  PURPOSES. IF THE COMMISSIONER DETERMINES THE CIGARETTES MAY NOT BE
OFFERED FOR SALE TO  THE  MANUFACTURERS  OR  AGENTS,  OR  USED  FOR  LAW
ENFORCEMENT  PURPOSES  BECAUSE SUCH CIGARETTES VIOLATE, OR ARE SUSPECTED
OF VIOLATING, FEDERAL TRADEMARK LAWS OR IMPORT  LAWS,  the  commissioner
must,  within a reasonable time after the forfeiture of such cigarettes,
upon publication in the state registry,  destroy  such  forfeited  ciga-
rettes.  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 investi-
gation regarding such cigarettes.  THE REVENUE FROM ALL SALES  OF  CIGA-
RETTES MADE PURSUANT TO THIS SUBDIVISION SHALL BE DEPOSITED IN THE CIGA-
RETTE  TAX ENFORCEMENT FUND, AS ESTABLISHED IN SECTION NINETY-SEVEN-QQQQ
OF THE STATE FINANCE LAW.
  (b) [In the alternative] PRIOR TO MAKING FORFEITED  CIGARETTES  AVAIL-
ABLE FOR INSPECTION OR PURCHASE BY THE MANUFACTURER, OFFERING SUCH CIGA-
RETTES  FOR SALE TO AGENTS, OR USING SUCH CIGARETTES FOR LAW ENFORCEMENT
PURPOSES IN ACCORDANCE WITH SUBDIVISION (A) OF  THIS  SECTION,  the  tax
commission,  on  reasonable  notice by mail or otherwise, may permit the
person from whom said cigarettes were seized to redeem  the  said  ciga-
rettes,  and  any vending machine or receptacle seized therewith, by the
payment of the tax due, plus a penalty of fifty per centum thereof, plus
interest on the amount of tax due for each  month  or  fraction  thereof
after such tax became due (determined without regard to any extension of
time  for  filing  or  paying) at the rate applicable under subparagraph
(ii) of paragraph (a) of subdivision one of section four hundred  eight-
y-one  of  this chapter and the costs incurred in such proceeding, which
total payment shall not be less than five  dollars;  provided,  however,
that  such seizure and sale or redemption shall not be deemed to relieve
any person from fine or imprisonment provided for in  this  article  for
violation of any provision of article twenty of this chapter.

A. 8064--A                          5

  (c)  [In  the alternative] AFTER MAKING FORFEITED CIGARETTES AVAILABLE
FOR INSPECTION OR PURCHASE BY THE MANUFACTURER AND OFFERING  SUCH  CIGA-
RETTES  FOR  SALE  TO  AGENTS IN ACCORDANCE WITH SUBDIVISION (A) OF THIS
SECTION, the tax commission may dispose of any cigarettes seized  pursu-
ant  to  this  section,  except  those that violate, or are suspected of
violating, federal trademark laws or import laws, by  transferring  them
to  the  department of corrections and community supervision for sale to
or use by inmates in such institutions.
  S 5. Subdivision (b) of section 483 of the  tax  law,  as  amended  by
chapter  860  of  the  laws of 1987, subparagraph (A) of paragraph 1 and
subparagraph (B) of paragraph 3 as amended by chapter 744 of the laws of
1990, subparagraph (B) of paragraph 1 as amended by  chapter  1  of  the
laws of 1999 and subparagraph (B) of paragraph 2 as amended by chapter 4
of the laws of 1988, is amended to read as follows:
  (b)  1.  (A) The term "cost of the agent" shall mean the basic cost of
cigarettes plus the cost of doing business by the agent as evidenced  by
the accounting standards and methods regularly employed by said agent in
his determination of costs for the purpose of federal income tax report-
ing  for  the  total  operation  of his establishment, and must include,
without limitation, labor, including salaries of  executives  and  offi-
cers,  rent,  depreciation,  selling  costs,  maintenance  of equipment,
delivery costs, interest payable, all types of licenses,  taxes,  insur-
ance  and advertising expressed as a percentage and applied to the basic
cost of cigarettes. Any fractional part of a cent in  the  cost  to  the
agent  per  carton of cigarettes shall be rounded off to the next higher
cent. In the case of sales at retail by  an  agent,  the  "cost  of  the
agent" shall be the same as the "cost of the retail dealer". In the case
of  sales  of  cigarettes to a chain store having fifteen or more retail
outlets, excluding vending machine operators, which are delivered  to  a
central  warehouse  owned and operated by such chain store and which are
delivered to its retail outlets by the chain store,  the  "cost  of  the
agent" shall be presumed to be the basic cost of cigarettes. There shall
be  determined a separate cost of the agent for sales to wholesale deal-
ers and for sales to retail dealers.
  (B) In the absence of the filing with the commissioner of satisfactory
proof of a lesser cost of doing business of the agent making  the  sale,
the  cost of doing business by the agent shall be presumed to be [seven-
eighths of one] TWO AND ONE-QUARTER percent of the basic cost  of  ciga-
rettes  for  sales to wholesale dealers plus one cent per package of ten
cigarettes, two cents per package of twenty cigarettes and in  the  case
of  a package containing more than twenty cigarettes, two cents and one-
half of a cent for each five cigarettes in excess of twenty  cigarettes,
[one  and  one-half] FIVE AND THREE-QUARTER percent of the basic cost of
cigarettes for sales to chain stores plus one cent per  package  of  ten
cigarettes,  two  cents per package of twenty cigarettes and in the case
of a package containing more than twenty cigarettes, two cents and  one-
half  of  a cent for each five cigarettes in excess of twenty cigarettes
and [three and seven-eighths] FIVE  AND  THREE-QUARTER  percent  of  the
basic  cost  of  cigarettes with respect to sales to retail dealers plus
one cent per package of ten cigarettes, two cents per package of  twenty
cigarettes  and  in  the  case  of a package containing more than twenty
cigarettes, two cents and one-half of a cent for each five cigarettes in
excess of twenty cigarettes and the foregoing cents per  pack  shall  be
included  in  the  "cost  of doing business by the agent" referred to in
paragraphs two and three of this subdivision.

A. 8064--A                          6

  2. (A) The term "cost of the wholesale dealer" shall  mean  the  basic
cost  of  cigarettes  plus  the  cost of doing business by the wholesale
dealer as evidenced by the accounting standards  and  methods  regularly
employed  by said wholesale dealer in his determination of costs for the
purpose  of  federal income tax reporting for the total operation of his
establishment, and must include, without  limitation,  labor,  including
salaries  of executives and officers, rent, depreciation, selling costs,
maintenance of equipment, delivery costs, interest payable, all types of
licenses, taxes, insurance and advertising expressed as a percentage and
applied to the basic cost of cigarettes, plus the cost of doing business
by the agent with respect to sales of cigarettes to  wholesale  dealers.
Any  fractional  part  of a cent in the cost to the wholesale dealer per
carton of cigarettes shall be rounded off to the next  higher  cent.  In
the  case  of  sales  at  retail by a wholesale dealer, the "cost of the
wholesale dealer" shall be the same as the "cost of the retail  dealer".
There  shall  be  determined a separate cost of the wholesale dealer for
sales to chain stores and for sales to retail dealers.
  (B) In the absence of the filing with the tax commission of  satisfac-
tory  proof  of  a lesser cost of doing business of the wholesale dealer
making the sale, the cost of doing business by the wholesale dealer with
respect to sales to retail dealers shall be presumed  to  be  three  AND
ONE-HALF per centum of the basic cost of cigarettes, and with respect to
sales  to chain stores, [five-eighths of one] THREE AND ONE-HALF percent
of the basic cost of cigarettes.
  3. (A) The term "cost of the retail dealer" shall mean the basic  cost
of  cigarettes  plus  the cost of doing business by the retail dealer as
evidenced by the accounting standards and methods regularly employed  by
said  retail  dealer  in  his  determination of costs for the purpose of
federal income tax reporting for the total operation of  his  establish-
ment,  and  shall include, without limitation, labor, including salaries
of executives and officers, rent, depreciation, selling  costs,  mainte-
nance  of  equipment,  delivery  costs,  interest  payable, all types of
licenses, taxes, insurance and advertising expressed as a percentage and
applied to the basic cost of cigarettes, plus the cost of doing business
by the agent with respect to sales of cigarettes to retail dealers.  Any
fractional  part  of a cent in the cost to the retail dealer per package
or per carton shall be rounded off to the next higher cent.
  (B) In the absence of the filing with the commissioner of taxation and
finance of satisfactory proof of a lesser cost of doing business by  the
retail  dealer making the sale, the cost of doing business by the retail
dealer shall be presumed to be [seven] TEN per centum of the sum of  the
basic  cost  of  cigarettes plus the cost of doing business by the agent
with respect to cigarettes sold to retail dealers.
  S 6. Section 1814 of the tax law is amended by adding a  new  subdivi-
sion (j) to read as follows:
  (J)  REWARDS.  (1) NOTWITHSTANDING ANY PROVISION OF LAW, RULE OR REGU-
LATION TO THE CONTRARY, THE COMMISSIONER SHALL ESTABLISH  A  PROGRAM  TO
ALLOW  INDIVIDUALS TO SUBMIT A SWORN STATEMENT AFFIRMING THE OBSERVATION
OF A VIOLATION OF ARTICLE TWENTY  OF THIS CHAPTER AND, WHERE THE COMMIS-
SIONER DEEMS IT APPROPRIATE, ALLOW FOR  A  REWARD  FOR  ANY  SUCH  SWORN
STATEMENT. WHERE ENFORCEMENT ACTION IS TAKEN PURSUANT TO THIS ARTICLE OR
ARTICLE  TWENTY  OF  THIS CHAPTER BASED UPON A SWORN STATEMENT BY ONE OR
MORE INDIVIDUALS AND WHERE THE COMMISSIONER DETERMINES, IN THE  EXERCISE
OF  HIS OR HER DISCRETION, THAT SUCH SWORN STATEMENT, EITHER ALONE OR IN
CONJUNCTION WITH THE TESTIMONY  OF  THE  PERSON  SUBMITTING  SUCH  SWORN
STATEMENT  CONTRIBUTES  TO THE IMPOSITION OF A CIVIL OR CRIMINAL PENALTY

A. 8064--A                          7

UPON ANY PERSON FOR A VIOLATION OF THIS ARTICLE, OR  ARTICLE  TWENTY  OF
THIS  CHAPTER, THE COMMISSIONER SHALL OFFER AS A REWARD TO SUCH INDIVID-
UAL OR INDIVIDUALS AN AMOUNT THAT, IN THE AGGREGATE, IS FIVE DOLLARS. NO
PEACE OFFICER, POLICE OFFICER OR EMPLOYEE OF THE DEPARTMENT, EMPLOYEE OF
ANY  COMPANY  UNDER  CONTRACT  WITH  THE  DEPARTMENT, OR EMPLOYEE OF ANY
GOVERNMENTAL ENTITY THAT, IN CONJUNCTION WITH THE  DEPARTMENT,  CONDUCTS
ENFORCEMENT  ACTIVITY RELATING TO A VIOLATION OF THIS ARTICLE OR ARTICLE
TWENTY OF THIS CHAPTER, SHALL BE ENTITLED TO OBTAIN THE BENEFIT  OF  ANY
SUCH REWARD WHEN ACTING IN THE DISCHARGE OF HIS OR HER OFFICIAL DUTIES.
  (2)  ALL  REWARDS PAID PURSUANT TO THIS SECTION SHALL BE PAID FROM THE
CIGARETTE TAX ENFORCEMENT FUND, AS ESTABLISHED IN SECTION  NINETY-SEVEN-
QQQQ OF THE STATE FINANCE LAW.
  S  7. Beginning the month immediately following the month in which the
cigarette tax enforcement fund, as established in section 97-qqqq of the
state finance law, is established, there is hereby appropriated  to  the
division  of state police the amount of six million dollars ($6,000,000)
from the cigarette tax enforcement fund to  support  cigarette  tax,  as
imposed  by article 20 of the tax law, and cigarette marketing standards
act, as established by article 20-A of the tax law,  enforcement  activ-
ities. This appropriation may be apportioned to either the patrol activ-
ities  or  criminal investigation activities programs of the division of
state police, may be transferred or  suballocated  to  any  other  state
agency  or public authority for their costs associated with the enforce-
ment of the cigarette tax or the cigarette marketing standards act,  and
may  be  used  to contract with local enforcement agencies for cigarette
tax and/or cigarette marketing standards act enforcement activities.  No
monies  shall  be available from this appropriation absent a certificate
of allocation from the director of the budget.
  S 8. This act shall take effect on the first  day  of  the  sales  tax
quarterly period, as described in subdivision (b) of section 1136 of the
tax  law, next succeeding the thirtieth day after it shall have become a
law and shall apply  in  accordance  with  the  applicable  transitional
provisions of sections 1106 and 1217 of the tax law.