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§ 17-176.1 Prohibition on the sale of discounted cigarettes and tobacco products.
   a.   Definitions. For purposes of this section:
      "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.
      "Cigarette" means any roll for smoking made wholly or in part of tobacco or any other substance, irrespective of size or shape and whether 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.
      "Listed price" means the price listed for cigarettes or tobacco products on their packages or on any related shelving, posting, advertising or display at the place where the cigarettes or tobacco products are sold or offered for sale, including all applicable taxes.
      "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.
      "Loose tobacco" means any product that consists of loose leaves or pieces of tobacco that is intended for use by consumers in a pipe, roll-your-own cigarette, or similar product or device.
      "Non-tobacco shisha" means any product that does not contain tobacco or nicotine and is smoked or intended to be smoked in a hookah or water pipe.
      "Person" means any natural person, corporation, partnership, firm, organization or other legal entity.
      "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 without charge or at a discounted price.
      "Retail dealer" means retail dealer as defined in section 20-201 of the code, and any employee or other agent of such retail dealer.
      "Shisha" means any product that contains tobacco or nicotine and is smoked or intended to be smoked in a hookah or water pipe.
      "Smokeless tobacco" means any tobacco product that consists of cut, ground, powdered, or leaf tobacco and that is intended to be placed in the oral or nasal cavity.
      "Snus" means any smokeless tobacco product marketed and sold as snus, and sold in ready-to-use pouches or loose as a moist powder.
      "Tobacco product" means any product which contains tobacco that is intended for human consumption, including any component, part, or accessory 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, shisha, or dissolvable tobacco product. Tobacco product shall not include cigarettes, electronic cigarettes or e-liquid 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.
   b.   Prohibition on the sale of cigarettes for less than the listed price. No person shall:
      (1)   honor or accept a price reduction instrument in any transaction related to the sale of cigarettes to a consumer;
      (2)   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;
      (3)   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 purchase of cigarettes by the consumer; or
      (4)   sell, offer for sale, or otherwise provide cigarettes to a consumer for less than the listed price.
   c.   Prohibition on the sale of tobacco products for less than the listed price. No person shall:
      (1)   honor or accept a price reduction instrument in any transaction related to the sale of tobacco products to a consumer;
      (2)   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;
      (3)   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
      (4)   sell, offer for sale, or otherwise provide tobacco products to a consumer for less than the listed price.
   d.   Price floors for cigarettes and tobacco products. No person shall sell or offer for sale to a consumer a package of cigarettes, tobacco products, or non-tobacco shisha, as such package is described in section 17-704, for a price less than the applicable price floor described in this subdivision. Any such price floor may be modified pursuant to paragraph 9 of this subdivision.
      (1)   The cigarette price floor shall be $13 per package of cigarettes, including all applicable taxes.
      (2)   The little cigar price floor shall be $10.95, excluding all applicable taxes.
      (3)   The cigar price floor shall be $8 for any cigar sold individually, excluding all applicable taxes. Notwithstanding subdivision c of section 17-176.1, the price floor for any package of cigars that contains more than one cigar and that has been delivered to a retail dealer in a package described by subdivision a of section 17-704 shall be computed by multiplying the number of cigars in the package by $1.75 and adding $6.25 to the total, excluding all applicable taxes.
      (4)   The smokeless tobacco price floor shall be $8 per 1.2 ounce package, excluding all applicable taxes. The price floor for packages larger than 1.2 ounces shall be computed by adding $2 for each 0.3 ounces or any fraction thereof in excess of 1.2 ounces, excluding all applicable taxes.
      (5)   The snus price floor shall be $8 per 0.32 ounce package, excluding all applicable taxes. The price floor for packages larger than 0.32 ounces shall be computed by adding $2 for each 0.08 ounces or any fraction thereof in excess of 0.32 ounces, excluding all applicable taxes.
      (6)   The shisha price floor shall be $17 per 3.5 ounce package, excluding all applicable taxes. The price floor for packages larger than 3.5 ounces shall be computed by adding $3.40 for each 0.7 ounces or any fraction thereof in excess of 3.5 ounces, excluding all applicable taxes.
      (7)   The non-tobacco shisha price floor shall be $17 per 3.5 ounce package, excluding all applicable taxes. The price floor for packages larger than 3.5 ounces shall be computed by adding $3.40 for each 0.7 or any fraction thereof ounces in excess of 3.5 ounces, excluding all applicable taxes.
      (8)   The loose tobacco price floor shall be $2.55 per 1.5 ounce package, excluding all applicable taxes. The price floor for packages larger than 1.5 ounces shall be computed by adding $0.51 for each 0.3 ounces or any fraction thereof in excess of 1.5 ounces, excluding all applicable taxes.
      (9)   The department may modify by rule the price floors described in this subdivision to account for changes in the New York--northern New Jersey--Long Island consumer price index, adjusted for inflation, or changes in taxes for any of these products.
   e.   The department shall promulgate any rules as may be necessary for the purpose of carrying out this section.
   f.   Penalties.
      (1)   Any person who violates subdivision b, c, or d of this section or any rule promulgated pursuant to any of such subdivisions shall be liable for a civil penalty in the following amounts:
         (i)   one thousand dollars for a first violation within a five-year period;
         (ii)   two thousand dollars for a second violation within a five-year period; and,
         (iii)   five thousand dollars for a third violation within a five-year period.
      (2)   No person shall be liable under this section for more than one violation of any of subdivisions b, c, or d during a single day.
      (3)   A violation of subdivision b, c, or d of this section by a retail dealer shall constitute a basis, pursuant to section 20-206 of the code, for the suspension or revocation of the license issued to such retail dealer for the place of business where such violation occurred.
   g.   Enforcement. The department, the department of consumer affairs, and the department of finance shall enforce the provisions of this section at the tribunals that are authorized to hear violations issued by such departments.
(Am. L.L. 2017/145, 8/28/2017, eff. 6/1/2018; Am. L.L. 2019/228, 12/16/2019, eff. 7/1/2020)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2017/145 and L.L. 2019/228.