NY State Senate Bill 2015-S5221A

Senate Bill S5221A

2015-2016 Legislative Session

Prohibits the use of coupons or use of a price reduction instrument to lower the price of certain tobacco products

download bill text pdf

Archive: Last Bill Status - In Senate Committee Health Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 20, 2016	print number 5221a
May 20, 2016	amend and recommit to health
Jan 06, 2016	referred to health
May 07, 2015	referred to health

Bill Amendments

Original

A (Active)

2015-S5221 - Details

See Assembly Version of this Bill:: A5164
Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Add §1399-bb-1, Pub Health L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S4576, A2103
2019-2020: S1148, A4365
2021-2022: S4171

2015-S5221 - Summary

Prohibits the use of coupons or use of a price reduction instrument to lower the price of certain tobacco products.

2015-S5221 - Sponsor Memo

                                BILL NUMBER:S5221

TITLE OF BILL:  An act to amend the public health law, in relation to
prohibiting the use of coupons or use of a "price reduction
instrument" to lower the price of certain tobacco products

PURPOSE OF BILL:

This legislation would prohibit the use of coupons or price reduction
instruments for the purchase of certain tobacco products.

SUMMARY OF PROVISIONS:

Section one provides legislative findings.

Section two amends the public health law by adding a new section
1399-bb-1 which prohibits the sale of discounted cigarettes and
tobacco products. Section one of 1399-bb-1 provides definitions used
in this section. Section two of section 1399-bb-1 prohibits sale of
cigarettes for less than the listed price. Section three of section
1399-bb-1 prohibits the sale of tobacco products for less than the
listed price. Section four of section 1399-bb-1 establishes a
prohibition on the sale of electronic cigarettes for less than the
listed price. Section five of section 1399-bb-1 authorizes the
commissioner to promulgate the necessary rules to carry out this
section. Section six of section 1399-bb-1 establishes enforcement and

penalties, which shall be carried out by the Attorney General. The
court may also impose civil penalties of the following amounts: one
thousand dollars for a first violation within a five year period, two
thousand dollars for a second violation within a five year period,
five thousand dollars for a third violation within a five year period.
The attorney general is authorized to take proof and make
determination of the relevant facts to issue subpoenas.

Section three of the bill establishes the effective date.

JUSTIFICATION:

Tobacco use is a leading cause of preventable premature death in the
United States and the State of New York. Given the substantial human
and economic costs associated with tobacco use, New York State has
taken numerous steps to reduce tobacco use among adults and to stop
persons under the age of eighteen from starting to use cigarettes,
e-cigarettes and other tobacco products. Although it is unlawful to
sell tobacco products to minors, tobacco use persists among adults and
even young adults under the age of eighteen.

According to a recently report issued by the Centers for Disease
Control and Prevention and the U.S. Food and Drug Administration's
Center for Tobacco Products, e-cigarette use tripled among middle and
high school students from 2013-2014. Their data further shows that
youth who had never smoked conventional cigarettes but who used
e-cigarettes were almost twice as likely to have intentions to smoke
conventional cigarettes as those who had never used e-cigarettes.
This of course raises concern that there may be young people for whom
e-cigarettes could serve as a gateway for use of conventional tobacco
products, including cigarettes. E-cigarettes may be a more enticing


entry point for nicotine use for young adults as they are marketed in
flavors such as bubble gum, pineapple and chocolate. Overall rates for
tobacco use among Americans in 2014 were 24.6 percent for high school
students and nearly 8 percent for middle school students.

As such, the state must take further action. Preventing adults and
young adults under the age of eighteen from taking up smoking is
critical as nine out of ten smokers first tried cigarettes by age
eighteen and ninety-nine percent first tried cigarettes by age
twenty-six. The legislature finds, based on numerous studies, that
high tobacco prices reduce tobacco consumption among both adults and
persons under the age of eighteen, who are especially price-sensitive.

Just as high tobacco prices decrease demand, the availability of
low-priced cigarettes, e-cigarettes and other tobacco products
increases demand and contributes to continued tobacco use. Low-priced
cigarettes, e-cigarettes and other tobacco products are widely
available in New York State through a number of sources. The use of
coupons, especially those marketed to young people, reduce prices for
tobacco products and increase smoking among youth. Discounts,
particularly those marketed to youth, entice consumers, including
price-sensitive youth, to purchase deadly and highly addictive
products.

This bill, which is based upon an existing law in New York City, will
address the widespread availability of low-priced cigarettes and
tobacco products in New York State by banning the redemption of
coupons and other price reduction instruments for the sale of
cigarettes, e-cigarettes and other tobacco products which are not
otherwise approved by the FDA for use as a tobacco cessation product
or for other medical purposes.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act will take effect on the ninetieth day after it becomes law.

2015-S5221 - Bill Text download pdf

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

                                  5221

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               May 7, 2015
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law, in relation  to  prohibiting  the
  use  of  coupons or use of a "price reduction instrument" to lower the
  price of certain tobacco products

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

  Section  1.  Legislative  findings. The legislature finds that tobacco
use is a leading cause of preventable  premature  death  in  the  United
States  and  the  state  of  New York.   Given the substantial human and
economic costs associated with tobacco use, New  York  state  has  taken
numerous  steps to reduce tobacco use among adults and to prevent minors
from taking up cigarette smoking or using other tobacco products. Howev-
er, the legislature finds that the state should take further  action  to
discourage  adults  and  young  adults  from taking up and continuing to
smoke cigarettes, use e-cigarettes, or use other tobacco products.
  Despite New York state's laws which prohibit the  sale  of  cigarettes
and  e-cigarettes  to  children  under  age  18, tobacco use among young
adults persists. According to recent findings, nine out of  ten  smokers
first  tried  cigarettes  by age eighteen, and ninety-nine percent first
tried cigarettes by age twenty-six. In addition, a recent report  issued
by  the Centers for Disease Control and Prevention and the U.S. Food and
Drug Administration's Center for Tobacco Products noted that while ciga-
rette use among high  school  students  has  declined,  it  still  is  a
substantial  share  (9.2%) of the most commonly used tobacco products by
these students. Of particular importance, the report notes that e-cigar-
ette use tripled among middle and high school  students  from  2013-2014
and  that  e-cigarette  use has surpassed the current use of every other
tobacco product overall.
  The legislature finds that the  use  of  price  reduction  promotions,
especially  coupons  targeted  in mailing, design and marketing to young

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04572-07-5

S. 5221                             2

adults, results in additional and unwanted incentives for  tobacco  use.
By   encouraging  purchase  by  price  reduction,  these  youth-directed
promotions unquestionably encourage youth use of tobacco  products,  and
should be disallowed.
  The  legislature  hereby declares that enactment of this act is neces-
sary to address the persistent availability of low-priced cigarettes and
tobacco products targeted to young people in New York  state.  This  act
will ban the redemption of coupons and other price reduction instruments
in  the  sale  of  cigarettes  and  tobacco  products to consumers. Such
actions are necessary to discourage the use of tobacco products by youn-
ger people in New York state.
  S 2. The public  health  law  is  amended  by  adding  a  new  section
1399-bb-1 to read as follows:
  S  1399-BB-1.  PROHIBITION  ON  THE  SALE OF DISCOUNTED CIGARETTES AND
TOBACCO PRODUCTS. 1. DEFINITIONS. AS USED IN THIS SECTION:
  (A) "CIGAR" MEANS ANY ROLL OF TOBACCO FOR SMOKING THAT IS  WRAPPED  IN
LEAF  TOBACCO  OR IN ANY SUBSTANCE CONTAINING TOBACCO, WITH OR WITHOUT A
TIP OR MOUTHPIECE. CIGAR DOES NOT INCLUDE A LITTLE CIGAR AS  DEFINED  IN
THIS SECTION.
  (B)  "CIGARETTE"  MEANS ANY ROLL FOR SMOKING MADE WHOLLY OR IN PART OF
TOBACCO OR ANY OTHER SUBSTANCE, IRRESPECTIVE OF SIZE OR SHAPE AND WHETH-
ER OR NOT SUCH TOBACCO OR SUBSTANCE IS FLAVORED,  ADULTERATED  OR  MIXED
WITH  ANY  OTHER  INGREDIENT,  THE  WRAPPER OR COVER OF WHICH IS MADE OF
PAPER OR ANY OTHER SUBSTANCE OR MATERIAL BUT IS NOT MADE IN WHOLE OR  IN
PART OF TOBACCO.
  (C)  "ELECTRONIC  CIGARETTE"  MEANS AN ELECTRONIC DEVICE THAT DELIVERS
VAPOR FOR INHALATION. ELECTRONIC CIGARETTE  SHALL  INCLUDE  ANY  REFILL,
CARTRIDGE, AND ANY OTHER COMPONENT OF AN ELECTRONIC CIGARETTE.  THE TERM
INCLUDES ANY SUCH DEVICE, WHETHER MANUFACTURED, DISTRIBUTED, MARKETED OR
SOLD  AS AN E-CIGARETTE, E-CIGAR, E-PIPE, E-HOOKAH OR VAPE PEN, OR UNDER
ANY OTHER PRODUCT NAME OR DESCRIPTOR.   ELECTRONIC CIGARETTE  SHALL  NOT
INCLUDE  ANY  PRODUCT  APPROVED  BY THE FOOD AND DRUG ADMINISTRATION FOR
SALE AS A DRUG OR MEDICAL DEVICE.
  (D) "LITTLE CIGAR" MEANS ANY ROLL  OF  TOBACCO  FOR  SMOKING  THAT  IS
WRAPPED  IN LEAF TOBACCO OR IN ANY SUBSTANCE CONTAINING TOBACCO AND THAT
WEIGHS NO MORE THAN FOUR POUNDS PER THOUSAND OR HAS A CELLULOSE  ACETATE
OR OTHER INTEGRATED FILTER.
  (E)  "LISTED  PRICE"  MEANS THE PRICE LISTED FOR CIGARETTES OR TOBACCO
PRODUCTS ON THEIR PACKAGES OR ON ANY RELATED SHELVING,  POSTING,  ADVER-
TISING  OR DISPLAY AT THE PLACE WHERE THE CIGARETTES OR TOBACCO PRODUCTS
ARE SOLD OR OFFERED FOR SALE, INCLUDING ALL APPLICABLE TAXES.
  (F) "PERSON" MEANS ANY NATURAL PERSON, CORPORATION, PARTNERSHIP, FIRM,
ORGANIZATION OR OTHER LEGAL ENTITY.
  (G) "PRICE REDUCTION INSTRUMENT" MEANS ANY  COUPON,  VOUCHER,  REBATE,
CARD,  PAPER,  NOTE,  FORM,  STATEMENT,  TICKET,  IMAGE, OR OTHER ISSUE,
WHETHER IN PAPER, DIGITAL,  OR  ANY  OTHER  FORM,  USED  FOR  COMMERCIAL
PURPOSES TO RECEIVE AN ARTICLE, PRODUCT, SERVICE, OR ACCOMMODATION WITH-
OUT CHARGE OR AT A DISCOUNTED PRICE.
  (H) "TOBACCO PRODUCT" MEANS ANY PRODUCT WHICH CONTAINS TOBACCO THAT IS
INTENDED FOR HUMAN CONSUMPTION, INCLUDING ANY COMPONENT, PART, OR ACCES-
SORY  OF SUCH PRODUCT. TOBACCO PRODUCT SHALL INCLUDE, BUT NOT BE LIMITED
TO,  ANY  CIGAR,  LITTLE   CIGAR,   CHEWING   TOBACCO,   PIPE   TOBACCO,
ROLL-YOUR-OWN  TOBACCO, SNUS, BIDI, SNUFF, TOBACCO-CONTAINING SHISHA, OR
DISSOLVABLE TOBACCO PRODUCT. TOBACCO PRODUCT  SHALL  NOT  INCLUDE  CIGA-
RETTES  OR  ANY PRODUCT THAT HAS BEEN APPROVED BY THE UNITED STATES FOOD
AND DRUG ADMINISTRATION FOR SALE AS A TOBACCO USE CESSATION  PRODUCT  OR

S. 5221                             3

FOR  OTHER  MEDICAL  PURPOSES AND THAT IS BEING MARKETED AND SOLD SOLELY
FOR SUCH PURPOSES.
  2.  PROHIBITION  ON  THE  SALE  OF CIGARETTES FOR LESS THAN THE LISTED
PRICE.  NO PERSON SHALL:
  (A) HONOR OR ACCEPT A COUPON OR OTHER PRICE  REDUCTION  INSTRUMENT  IN
ANY TRANSACTION RELATED TO THE SALE OF CIGARETTES TO A CONSUMER;
  (B)  SELL  OR  OFFER  FOR  SALE  CIGARETTES  TO A CONSUMER THROUGH ANY
MULTI-PACKAGE DISCOUNT OR OTHERWISE PROVIDE TO A CONSUMER ANY CIGARETTES
FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR THE PURCHASE OF ANY OTHER
CIGARETTES BY THE CONSUMER;
  (C) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER  THAN
CIGARETTES  TO A CONSUMER FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR
THE PURCHASER OF CIGARETTES BY THE CONSUMER; OR
  (D) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE CIGARETTES TO A CONSUM-
ER FOR LESS THAN THE LISTED PRICE.
  3. PROHIBITION ON THE SALE OF TOBACCO PRODUCTS FOR LESS THAN THE LIST-
ED PRICE. NO PERSON SHALL:
  (A) HONOR OR ACCEPT A COUPON OR OTHER PRICE  REDUCTION  INSTRUMENT  IN
ANY TRANSACTION RELATED TO THE SALE OF TOBACCO PRODUCTS TO A CONSUMER;
  (B)  SELL OR OFFER FOR SALE TOBACCO PRODUCTS TO A CONSUMER THROUGH ANY
MULTI-PACKAGE DISCOUNT OR OTHERWISE PROVIDE TO A  CONSUMER  ANY  TOBACCO
PRODUCT  FOR  LESS THAN THE LISTED PRICE IN EXCHANGE FOR THE PURCHASE OF
ANY OTHER TOBACCO PRODUCT BY THE CONSUMER;
  (C) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER  THAN
A  TOBACCO  PRODUCT  TO  A  CONSUMER  FOR  LESS THAN THE LISTED PRICE IN
EXCHANGE FOR THE PURCHASE OF A TOBACCO PRODUCT BY THE CONSUMER; OR
  (D) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE TOBACCO PRODUCTS  TO  A
CONSUMER FOR LESS THAN THE LISTED PRICE.
  4.  PROHIBITION ON THE SALE OF ELECTRONIC CIGARETTES FOR LESS THAN THE
LISTED PRICE. NO PERSON SHALL:
  (A) HONOR OR ACCEPT A COUPON OR OTHER PRICE  REDUCTION  INSTRUMENT  IN
ANY  TRANSACTION  RELATED  TO  THE  SALE OF AN ELECTRONIC CIGARETTE TO A
CONSUMER;
  (B) SELL OR OFFER FOR SALE ELECTRONIC CIGARETTES TO A CONSUMER THROUGH
ANY MULTI-PACKAGE DISCOUNT OR OTHERWISE PROVIDE TO A CONSUMER ANY TOBAC-
CO PRODUCT FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR  THE  PURCHASE
OF ANY OTHER ELECTRONIC CIGARETTES BY THE CONSUMER;
  (C)  SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER THAN
AN ELECTRONIC CIGARETTE TO A CONSUMER FOR LESS THAN THE LISTED PRICE  IN
EXCHANGE FOR THE PURCHASE OF AN ELECTRONIC CIGARETTE BY THE CONSUMER; OR
  (D)  SELL,  OFFER FOR SALE, OR OTHERWISE PROVIDE ELECTRONIC CIGARETTES
TO A CONSUMER FOR LESS THAN THE LISTED PRICE.
  5. RULES.  THE COMMISSIONER OR HIS OR HER  DELEGATE  SHALL  PROMULGATE
ANY  RULES  AS MAY BE NECESSARY OR DESIRABLE FOR THE PURPOSE OF CARRYING
OUT THIS SECTION.
  6. ENFORCEMENT AND PENALTIES. (A) WHENEVER THERE SHALL BE A  VIOLATION
OF  THIS  SECTION, AN APPLICATION MAY BE MADE BY THE ATTORNEY GENERAL IN
THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK, TO A COURT  OR  JUSTICE
HAVING  JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN INJUNCTION, AND
UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE DAYS, TO  ENJOIN  AND
RESTRAIN  THE  CONTINUANCE  OF SUCH VIOLATION; AND IF IT SHALL APPEAR TO
THE SATISFACTION OF THE COURT OR JUSTICE  THAT  THE  DEFENDANT  HAS,  IN
FACT, VIOLATED THIS SECTION, AN INJUNCTION MAY BE ISSUED BY THE COURT OR
JUSTICE,  ENJOINING  AND  RESTRAINING  ANY  FURTHER  VIOLATIONS, WITHOUT
REQUIRING PROOF THAT ANY PERSON HAS, IN FACT, BEEN  INJURED  OR  DAMAGED
THEREBY.  IN  ANY  SUCH PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO THE

S. 5221                             4

ATTORNEY GENERAL AS PROVIDED IN PARAGRAPH  SIX  OF  SUBDIVISION  (A)  OF
SECTION  EIGHTY-THREE HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES,
AND DIRECT RESTITUTION.  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A
VIOLATION  OF  THIS  SECTION  HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL
PENALTY IN THE FOLLOWING AMOUNTS:
  (1) ONE THOUSAND DOLLARS FOR A  FIRST  VIOLATION  WITHIN  A  FIVE-YEAR
PERIOD;
  (2)  TWO  THOUSAND  DOLLARS  FOR A SECOND VIOLATION WITHIN A FIVE-YEAR
PERIOD; AND
  (3) FIVE THOUSAND DOLLARS FOR A THIRD  VIOLATION  WITHIN  A  FIVE-YEAR
PERIOD.
  (B)  NO  PERSON  SHALL  BE LIABLE UNDER THIS SECTION FOR MORE THAN ONE
VIOLATION OF ANY OF SUBDIVISIONS TWO OR THREE OF THIS SECTION  DURING  A
SINGLE DAY.
  (C)  IN  CONNECTION WITH ANY APPLICATION AS DESCRIBED IN PARAGRAPH (A)
OF THIS SUBDIVISION, THE ATTORNEY GENERAL IS AUTHORIZED  TO  TAKE  PROOF
AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN
ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

2015-S5221A (ACTIVE) - Details

See Assembly Version of this Bill:: A5164
Current Committee:: Senate Health
Law Section:: Public Health Law
Laws Affected:: Add §1399-bb-1, Pub Health L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S4576, A2103
2019-2020: S1148, A4365
2021-2022: S4171

2015-S5221A (ACTIVE) - Summary

Prohibits the use of coupons or use of a price reduction instrument to lower the price of certain tobacco products.

2015-S5221A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5221A

 TITLE OF BILL :

An act to amend the public health law, in relation to prohibiting the
use of coupons or use of a "price reduction instrument" to lower the
price of certain tobacco products

 PURPOSE OF BILL :

This legislation would prohibit the use of coupons or price reduction
instruments for the purchase of certain tobacco products.

 SUMMARY OF PROVISIONS :

Section one provides legislative findings.

Section two amends the public health law by adding a new section
1399-bb-1 which prohibits the sale of discounted cigarettes and
tobacco products and provides definitions used in this section.
Section two of section 1399-bb-1 prohibits sale of cigarettes for less
than the listed price. Section three of section 1399-bb-1 prohibits
the sale of tobacco products for less than the listed price. Section
four of section 1399-bb-1 establishes a prohibition on the sale of
electronic cigarettes for less than the listed price.  Section five of
section 1399-bb-1 authorizes the commissioner to promulgate the

necessary rules to carry out this section. Section six of section
1399-bb-1 establishes enforcement and penalties, which shall be
carried out by the Attorney General. The court may also impose civil
penalties of the following amounts: one thousand dollars for a first
violation within a five year period, two thousand dollars for a second
violation within a five year period, five thousand dollars for a third
violation within a five year period. The attorney general is
authorized to take proof and make determination of the relevant facts
to issue subpoenas.

Section three of the bill establishes the effective date.

 JUSTIFICATION :

Tobacco use is a leading cause of preventable premature death in the
United States and the State of New York. Given the substantial human
and economic costs associated with tobacco use, New York State has
taken numerous steps to reduce tobacco use among adults and to stop
persons under the age of eighteen from starting to use cigarettes,
e-cigarettes and other tobacco products. Although it is unlawful to
sell tobacco products to minors, tobacco use persists among adults and
even young adults under the age of eighteen.

According to a recently report issued by the Centers for Disease
Control and Prevention and the U.S. Food and Drug Administration's
Center for Tobacco Products, e-cigarette use tripled among middle and
high school students from 2013-2014. Their data further shows that
youth who had never smoked conventional cigarettes but who used
e-cigarettes were almost twice as likely to have intentions to smoke
conventional cigarettes as those who had never used e-cigarettes.
This of course raises concern that there may be young people for whom
e-cigarettes could serve as a gateway for use of conventional tobacco
products, including cigarettes. E-cigarettes may be a more enticing
entry point for nicotine use for young adults as they are marketed in
flavors such as bubble gum, pineapple and chocolate. Overall rates for
tobacco use among Americans in 2014 were 24.6 percent for high school
students and nearly 8 percent for middle school students.

As such, the state must take further action. Preventing adults and
young adults under the age of eighteen from taking up smoking is
critical as nine out of ten smokers first tried cigarettes by age
eighteen and ninety-nine percent first tried cigarettes by age
twenty-six. The legislature finds, based on numerous studies, that
high tobacco prices reduce tobacco consumption among both adults and
persons under the age of eighteen, who are especially price-sensitive.

Just as high tobacco prices decrease demand, the availability of
low-priced cigarettes, e-cigarettes and other tobacco products
increases demand and contributes to continued tobacco use. Low-priced
cigarettes, e-cigarettes and other tobacco products are widely
available in New York State through a number of sources. The use of
coupons, especially those marketed to young people, reduce prices for
tobacco products and increase smoking among youth. Discounts,
particularly those marketed to youth, entice consumers, including
price-sensitive youth, to purchase deadly and highly addictive
products.

This bill, which is based upon an existing law in New York City, will
address the widespread availability of low-priced cigarettes and
tobacco products in New York State by banning the redemption of
coupons and other price reduction instruments for the sale of
cigarettes, e-cigarettes and other tobacco products which are not
otherwise approved by the FDA for use as a tobacco cessation product
or for other medical purposes.

 LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act will take effect on the ninetieth day after it becomes law.

2015-S5221A (ACTIVE) - Bill Text download pdf

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

                                 5221--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               May 7, 2015
                               ___________

Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health --  recommitted  to
  the  Committee  on  Health in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend the public health law, in relation to prohibiting the
  use of coupons or use of a "price reduction instrument" to  lower  the
  price of certain tobacco products

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

  Section 1. Legislative findings. The legislature  finds  that  tobacco
use  is  a  leading  cause  of preventable premature death in the United
States and the state of New York.    Given  the  substantial  human  and
economic  costs  associated  with  tobacco use, New York state has taken
numerous steps to reduce tobacco use among adults and to prevent  minors
from taking up cigarette smoking or using other tobacco products. Howev-
er,  the  legislature finds that the state should take further action to
discourage adults and young adults from  taking  up  and  continuing  to
smoke cigarettes, use e-cigarettes, or use other tobacco products.
  Despite  New  York  state's laws which prohibit the sale of cigarettes
and e-cigarettes to children under  age  18,  tobacco  use  among  young
adults  persists.  According to recent findings, nine out of ten smokers
first tried cigarettes by age eighteen, and  ninety-nine  percent  first
tried  cigarettes by age twenty-six. In addition, a recent report issued
by the Centers for Disease Control and Prevention and the U.S. Food  and
Drug Administration's Center for Tobacco Products noted that while ciga-
rette  use  among  high  school  students  has  declined,  it still is a
substantial share (9.2%) of the most commonly used tobacco  products  by
these students. Of particular importance, the report notes that e-cigar-
ette  use  tripled  among middle and high school students from 2013-2014

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04572-09-6

S. 5221--A                          2

and that e-cigarette use has surpassed the current use  of  every  other
tobacco product overall.
  The  legislature  finds  that  the  use of price reduction promotions,
especially coupons targeted in mailing, design and  marketing  to  young
adults,  results  in additional and unwanted incentives for tobacco use.
By  encouraging  purchase  by  price  reduction,  these   youth-directed
promotions  unquestionably  encourage youth use of tobacco products, and
should be disallowed.
  The legislature hereby declares that enactment of this act  is  neces-
sary to address the persistent availability of low-priced cigarettes and
tobacco  products  targeted  to young people in New York state. This act
will ban the redemption of coupons and other price reduction instruments
in the sale of  cigarettes  and  tobacco  products  to  consumers.  Such
actions are necessary to discourage the use of tobacco products by youn-
ger people in New York state.
  S  2.  The  public  health  law  is  amended  by  adding a new section
1399-bb-1 to read as follows:
  S 1399-BB-1. PROHIBITION ON THE  SALE  OF  DISCOUNTED  CIGARETTES  AND
TOBACCO PRODUCTS. 1. DEFINITIONS. AS USED IN THIS SECTION:
  (A)  "CIGAR"  MEANS ANY ROLL OF TOBACCO FOR SMOKING THAT IS WRAPPED IN
LEAF TOBACCO OR IN ANY SUBSTANCE CONTAINING TOBACCO, WITH OR  WITHOUT  A
TIP  OR  MOUTHPIECE. CIGAR DOES NOT INCLUDE A LITTLE CIGAR AS DEFINED IN
THIS SECTION.
  (B) "CIGARETTE" MEANS ANY ROLL FOR SMOKING MADE WHOLLY OR IN  PART  OF
TOBACCO OR ANY OTHER SUBSTANCE, IRRESPECTIVE OF SIZE OR SHAPE AND WHETH-
ER  OR  NOT  SUCH TOBACCO OR SUBSTANCE IS FLAVORED, ADULTERATED OR MIXED
WITH ANY OTHER INGREDIENT, THE WRAPPER OR COVER  OF  WHICH  IS  MADE  OF
PAPER  OR ANY OTHER SUBSTANCE OR MATERIAL BUT IS NOT MADE IN WHOLE OR IN
PART OF TOBACCO.
  (C) "ELECTRONIC CIGARETTE" MEANS AN ELECTRONIC  DEVICE  THAT  DELIVERS
VAPOR  FOR  INHALATION.  ELECTRONIC  CIGARETTE SHALL INCLUDE ANY REFILL,
CARTRIDGE, AND ANY OTHER COMPONENT OF AN ELECTRONIC CIGARETTE.  THE TERM
INCLUDES ANY SUCH DEVICE, WHETHER MANUFACTURED, DISTRIBUTED, MARKETED OR
SOLD AS AN E-CIGARETTE, E-CIGAR, E-PIPE, E-HOOKAH OR VAPE PEN, OR  UNDER
ANY  OTHER  PRODUCT  NAME OR DESCRIPTOR.  ELECTRONIC CIGARETTE SHALL NOT
INCLUDE ANY PRODUCT APPROVED BY THE FOOD  AND  DRUG  ADMINISTRATION  FOR
SALE AS A DRUG OR MEDICAL DEVICE.
  (D)  "LITTLE  CIGAR"  MEANS  ANY  ROLL  OF TOBACCO FOR SMOKING THAT IS
WRAPPED IN LEAF TOBACCO OR IN ANY SUBSTANCE CONTAINING TOBACCO AND  THAT
WEIGHS  NO MORE THAN FOUR POUNDS PER THOUSAND OR HAS A CELLULOSE ACETATE
OR OTHER INTEGRATED FILTER.
  (E) "LISTED PRICE" MEANS THE PRICE LISTED FOR  CIGARETTES  OR  TOBACCO
PRODUCTS  ON  THEIR PACKAGES OR ON ANY RELATED SHELVING, POSTING, ADVER-
TISING OR DISPLAY AT THE PLACE WHERE THE CIGARETTES OR TOBACCO  PRODUCTS
ARE SOLD OR OFFERED FOR SALE, INCLUDING ALL APPLICABLE TAXES.
  (F) "PERSON" MEANS ANY NATURAL PERSON, CORPORATION, PARTNERSHIP, FIRM,
ORGANIZATION OR OTHER LEGAL ENTITY.
  (G)  "PRICE  REDUCTION  INSTRUMENT" MEANS ANY COUPON, VOUCHER, REBATE,
CARD, PAPER, NOTE, FORM,  STATEMENT,  TICKET,  IMAGE,  OR  OTHER  ISSUE,
WHETHER  IN  PAPER,  DIGITAL,  OR  ANY  OTHER  FORM, USED FOR COMMERCIAL
PURPOSES TO RECEIVE AN ARTICLE, PRODUCT, SERVICE, OR ACCOMMODATION WITH-
OUT CHARGE OR AT A DISCOUNTED PRICE.
  (H) "TOBACCO PRODUCT" MEANS ANY PRODUCT WHICH CONTAINS TOBACCO THAT IS
INTENDED FOR HUMAN CONSUMPTION, INCLUDING ANY COMPONENT, PART, OR ACCES-
SORY OF SUCH PRODUCT. TOBACCO PRODUCT SHALL INCLUDE, BUT NOT BE  LIMITED
TO,   ANY   CIGAR,   LITTLE   CIGAR,   CHEWING  TOBACCO,  PIPE  TOBACCO,

S. 5221--A                          3

ROLL-YOUR-OWN TOBACCO, SNUS, BIDI, SNUFF, TOBACCO-CONTAINING SHISHA,  OR
DISSOLVABLE  TOBACCO  PRODUCT.  TOBACCO  PRODUCT SHALL NOT INCLUDE CIGA-
RETTES OR ANY PRODUCT THAT HAS BEEN APPROVED BY THE UNITED  STATES  FOOD
AND  DRUG  ADMINISTRATION FOR SALE AS A TOBACCO USE CESSATION PRODUCT OR
FOR OTHER MEDICAL PURPOSES AND THAT IS BEING MARKETED  AND  SOLD  SOLELY
FOR SUCH PURPOSES.
  2.  PROHIBITION  ON  THE  SALE  OF CIGARETTES FOR LESS THAN THE LISTED
PRICE.  NO PERSON SHALL:
  (A) HONOR OR ACCEPT A COUPON OR OTHER PRICE  REDUCTION  INSTRUMENT  IN
ANY TRANSACTION RELATED TO THE SALE OF CIGARETTES TO A CONSUMER;
  (B)  SELL  OR  OFFER  FOR  SALE  CIGARETTES  TO A CONSUMER THROUGH ANY
MULTI-PACKAGE DISCOUNT OR OTHERWISE PROVIDE TO A CONSUMER ANY CIGARETTES
FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR THE PURCHASE OF ANY OTHER
CIGARETTES BY THE CONSUMER;
  (C) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER  THAN
CIGARETTES  TO A CONSUMER FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR
THE PURCHASER OF CIGARETTES BY THE CONSUMER; OR
  (D) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE CIGARETTES TO A CONSUM-
ER FOR LESS THAN THE LISTED PRICE.
  3. PROHIBITION ON THE SALE OF TOBACCO PRODUCTS FOR LESS THAN THE LIST-
ED PRICE. NO PERSON SHALL:
  (A) HONOR OR ACCEPT A COUPON OR OTHER PRICE  REDUCTION  INSTRUMENT  IN
ANY TRANSACTION RELATED TO THE SALE OF TOBACCO PRODUCTS TO A CONSUMER;
  (B)  SELL OR OFFER FOR SALE TOBACCO PRODUCTS TO A CONSUMER THROUGH ANY
MULTI-PACKAGE DISCOUNT OR OTHERWISE PROVIDE TO A  CONSUMER  ANY  TOBACCO
PRODUCT  FOR  LESS THAN THE LISTED PRICE IN EXCHANGE FOR THE PURCHASE OF
ANY OTHER TOBACCO PRODUCT BY THE CONSUMER;
  (C) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER  THAN
A  TOBACCO  PRODUCT  TO  A  CONSUMER  FOR  LESS THAN THE LISTED PRICE IN
EXCHANGE FOR THE PURCHASE OF A TOBACCO PRODUCT BY THE CONSUMER; OR
  (D) SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE TOBACCO PRODUCTS  TO  A
CONSUMER FOR LESS THAN THE LISTED PRICE.
  4.  PROHIBITION ON THE SALE OF ELECTRONIC CIGARETTES FOR LESS THAN THE
LISTED PRICE. NO PERSON SHALL:
  (A) HONOR OR ACCEPT A COUPON OR OTHER PRICE  REDUCTION  INSTRUMENT  IN
ANY  TRANSACTION  RELATED  TO  THE  SALE OF AN ELECTRONIC CIGARETTE TO A
CONSUMER;
  (B) SELL OR OFFER FOR SALE ELECTRONIC CIGARETTES TO A CONSUMER THROUGH
ANY MULTI-PACKAGE DISCOUNT OR OTHERWISE PROVIDE TO A CONSUMER ANY TOBAC-
CO PRODUCT FOR LESS THAN THE LISTED PRICE IN EXCHANGE FOR  THE  PURCHASE
OF ANY OTHER ELECTRONIC CIGARETTES BY THE CONSUMER;
  (C)  SELL, OFFER FOR SALE, OR OTHERWISE PROVIDE ANY PRODUCT OTHER THAN
AN ELECTRONIC CIGARETTE TO A CONSUMER FOR LESS THAN THE LISTED PRICE  IN
EXCHANGE FOR THE PURCHASE OF AN ELECTRONIC CIGARETTE BY THE CONSUMER; OR
  (D)  SELL,  OFFER FOR SALE, OR OTHERWISE PROVIDE ELECTRONIC CIGARETTES
TO A CONSUMER FOR LESS THAN THE LISTED PRICE.
  5. RULES.  THE COMMISSIONER OR HIS OR HER  DELEGATE  SHALL  PROMULGATE
ANY  RULES  AS MAY BE NECESSARY OR DESIRABLE FOR THE PURPOSE OF CARRYING
OUT THIS SECTION.
  6. ENFORCEMENT AND PENALTIES. (A) WHENEVER THERE SHALL BE A  VIOLATION
OF  THIS  SECTION, AN APPLICATION MAY BE MADE BY THE ATTORNEY GENERAL IN
THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK, TO A COURT  OR  JUSTICE
HAVING  JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN INJUNCTION, AND
UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE DAYS, TO  ENJOIN  AND
RESTRAIN  THE  CONTINUANCE  OF SUCH VIOLATION; AND IF IT SHALL APPEAR TO
THE SATISFACTION OF THE COURT OR JUSTICE  THAT  THE  DEFENDANT  HAS,  IN

S. 5221--A                          4

FACT, VIOLATED THIS SECTION, AN INJUNCTION MAY BE ISSUED BY THE COURT OR
JUSTICE,  ENJOINING  AND  RESTRAINING  ANY  FURTHER  VIOLATIONS, WITHOUT
REQUIRING PROOF THAT ANY PERSON HAS, IN FACT, BEEN  INJURED  OR  DAMAGED
THEREBY.  IN  ANY  SUCH PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO THE
ATTORNEY GENERAL AS PROVIDED IN PARAGRAPH  SIX  OF  SUBDIVISION  (A)  OF
SECTION  EIGHTY-THREE HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES,
AND DIRECT RESTITUTION.  WHENEVER  THE  COURT  SHALL  DETERMINE  THAT  A
VIOLATION  OF  THIS  SECTION  HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL
PENALTY IN THE FOLLOWING AMOUNTS:
  (1) UP TO  ONE  THOUSAND  DOLLARS  FOR  A  FIRST  VIOLATION  WITHIN  A
FIVE-YEAR PERIOD;
  (2)  UP  TO  TWO  THOUSAND  DOLLARS  FOR  A  SECOND VIOLATION WITHIN A
FIVE-YEAR PERIOD; AND
  (3) UP TO FIVE  THOUSAND  DOLLARS  FOR  A  THIRD  VIOLATION  WITHIN  A
FIVE-YEAR PERIOD.
  (B)  NO  PERSON  SHALL  BE LIABLE UNDER THIS SECTION FOR MORE THAN ONE
VIOLATION OF ANY OF SUBDIVISIONS TWO OR THREE OF THIS SECTION  DURING  A
SINGLE DAY.
  (C)  IN  CONNECTION WITH ANY APPLICATION AS DESCRIBED IN PARAGRAPH (A)
OF THIS SUBDIVISION, THE ATTORNEY GENERAL IS AUTHORIZED  TO  TAKE  PROOF
AND MAKE A DETERMINATION OF THE RELEVANT FACTS AND TO ISSUE SUBPOENAS IN
ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.