Requires vapor products dealers to be registered with the department of health; permits municipalities to require additional registration of vapor products dealers; permits the revocation of licenses and registrations by the commissioner of health, the cannabis control board, the state liquor authority, and the department of taxation and finance as a result of the knowing and unlawful sale of cannabis.
STATE OF NEW YORK
________________________________________________________________________
7709
2025-2026 Regular Sessions
IN ASSEMBLY
April 8, 2025
___________
Introduced by M. of A. STERN, K. BROWN -- 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:
1 Section 1. The public health law is amended by adding a new section
2 1399-mm-4 to read as follows:
3 § 1399-mm-4. Vapor products dealer registration. 1. Any vapor products
4 dealer selling vapor products in the state shall be registered with the
5 department. The department shall oversee the operations of such regis-
6 tered vapor products dealers.
7 2. (a) A municipality may require additional, municipality-specific
8 registration or licensing of vapor products dealers. Such municipality
9 may establish grounds for revocation of such a registration or license
10 which may include, but shall not be limited to, the knowing and unlawful
11 sale of any cannabis, cannabis product as defined in subdivision nine of
12 section three of the cannabis law, or concentrated cannabis as defined
13 in subdivision seventeen of section three of the cannabis law.
14 (b) A municipality shall revoke the certificate of occupancy of any
15 vapor products dealer that knowingly and unlawfully sells any cannabis,
16 cannabis product as defined in subdivision nine of section three of the
17 cannabis law, or concentrated cannabis as defined in subdivision seven-
18 teen of section three of the cannabis law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05297-01-5
A. 7709 2
1 § 2. The public health law is amended by adding a new section
2 1399-mm-5 to read as follows:
3 § 1399-mm-5. Unlawful sale of cannabis by vapor products dealers. Any
4 vapor products dealer that knowingly and unlawfully sells any cannabis,
5 cannabis product as defined in subdivision nine of section three of the
6 cannabis law, or concentrated cannabis as defined in subdivision seven-
7 teen of section three of the cannabis law shall be subject to a penalty
8 of ten thousand dollars.
9 § 3. Paragraph 1 of subdivision (d) of section 1183 of the tax law, as
10 added by section 1 of part UU of chapter 59 of the laws of 2019, is
11 amended to read as follows:
12 (1) The commissioner shall refuse to issue a certificate of registra-
13 tion to any applicant who does not possess a valid certificate of
14 authority under section eleven hundred thirty-four of this chapter. In
15 addition, the commissioner may refuse to issue a certificate of regis-
16 tration, or suspend, cancel or revoke a certificate of registration
17 issued to any person who: (A) has a past-due liability as that term is
18 defined in section one hundred seventy-one-v of this chapter; (B) has
19 had a certificate of registration under this article or any license or
20 registration provided for in this chapter revoked within one year from
21 the date on which such application was filed; (C) has been convicted of
22 a crime provided for in this chapter within one year from the date on
23 which such application was filed; (D) willfully fails to file a report
24 or return required by this article; (E) willfully files, causes to be
25 filed, gives or causes to be given a report, return, certificate or
26 affidavit required by this article which is false; (F) willfully fails
27 to collect or truthfully account for or pay over any tax imposed by this
28 article; [or] (G) whose place of business is at the same premises as
29 that of a person whose vapor products dealer registration has been
30 revoked and where such revocation is still in effect, unless the appli-
31 cant or vapor products dealer provides the commissioner with adequate
32 documentation demonstrating that such applicant or vapor products dealer
33 acquired the premises or business through an arm's length transaction as
34 defined in paragraph (e) of subdivision one of section four hundred
35 eighty-a of this chapter; or (H) knowingly and unlawfully sells any
36 cannabis, cannabis product as defined in subdivision nine of section
37 three of the cannabis law, or concentrated cannabis as defined in subdi-
38 vision seventeen of section three of the cannabis law.
39 § 4. Section 1399-ee of the public health law is amended by adding a
40 new subdivision 7 to read as follows:
41 7. If the commissioner or their designee determines, after a hearing,
42 that a retail dealer has violated section thirteen hundred ninety-nine-
43 mm-five of this article the commissioner shall, in addition to imposing
44 any other penalty required or permitted by this section, direct the
45 cannabis control board, the state liquor authority and the department of
46 taxation and finance to revoke any license or registration of the dealer
47 as permitted by law for such a violation.
48 § 5. Section 1607 of the tax law is amended by adding a new subdivi-
49 sion i to read as follows:
50 i. A violation of section thirteen hundred ninety-nine-mm-five of the
51 public health law, as provided in this subdivision, a license shall be
52 revoked upon notification to the division by the commissioner of health
53 of a lottery sales agent's violation of section thirteen hundred nine-
54 ty-nine-mm-five of the public health law.
55 § 6. Subdivision 4 of section 133 of the cannabis law is amended by
56 adding a new paragraph (c) to read as follows:
A. 7709 3
1 (c) As used in this section, the term "for cause" shall also include
2 the board being notified by the commissioner of health of a violation of
3 section thirteen hundred ninety-nine-mm-five of the public health law.
4 § 7. Subdivision 3 of section 118 of the alcoholic beverage control
5 law is amended by adding a new paragraph (d) to read as follows:
6 (d) As used in this section, the term "for cause" shall also include
7 the state liquor authority being notified by the commissioner of health
8 of a violation of section thirteen hundred ninety-nine-mm-five of the
9 public health law.
10 § 8. This act shall take effect immediately.
