a. License required of electronic cigarette retail dealers.
1. It shall be unlawful for any person to engage in business as an electronic cigarette retail dealer without first having obtained a license as hereinafter prescribed for each place of business wherein such person engages in the retail sale of electronic cigarettes in the city.
2. It shall be unlawful for a person to permit any premises under such person's control to be used by any other person in violation of paragraph 1 of subdivision a of this section.
3. It shall be unlawful for a pharmacy to obtain a license to engage in business as an electronic cigarette retail dealer.
b. License application.
1. In order to obtain a license to engage in business as an electronic cigarette retail dealer, a person shall file an application with the commissioner for a license for each place of business that such person desires to have for the retail sale of electronic cigarettes in the city. The application for each license or renewal thereof shall be made upon such form as prescribed by the commissioner and shall contain such information as the commissioner shall require.
2. The commissioner shall commence accepting applications for licenses to engage in business as an electronic cigarette retail dealer on the effective date of the local law that added this section, and shall continue accepting applications for 90 days following such commencement.
(a) During the 90 day application period, the commissioner shall only accept applications for licenses to engage in business as an electronic cigarette retail dealer from persons who have been engaged in the retail sale of electronic cigarettes as of the date of enactment of this subchapter.
(b) The commissioner may require proof of such engagement from applicants during the 90 day application period.
3. The commissioner shall not accept applications after the expiration of the 90 day application period unless the commissioner determines that acceptance of such applications would not result in the issuance of a license in excess of the community district electronic cigarette retail dealer cap established pursuant to paragraph 1 of subdivision e of this section.
c. Fee and license term.
1. There shall be a biennial fee of $200 for a license to engage in the business of an electronic cigarette retail dealer at each place of business where electronic cigarettes are sold in the city.
2. All even-numbered licenses shall expire on November 30 of the even-numbered year, and all odd-numbered licenses shall expire on November 30 of the odd-numbered year, next succeeding the year in which the license is issued.
d. Issuance of license and renewal of such license.
1. A license or renewal thereof shall be issued to a person to conduct the business of an electronic cigarette retail dealer for each place of business where such person engages in the retail sale of electronic cigarettes in the city only where:
(a) an applicant for a license or renewal thereof meets all the requirements prescribed herein and any criteria in addition thereto established by the commissioner by rule as deemed necessary to effectuate the purposes of this subchapter;
(b) an applicant satisfies the commissioner that such person is fit and able to conduct the business of an electronic cigarette retail dealer;
(c) the commissioner has not received notification from the commissioner of health and mental hygiene that the applicant is not in full compliance with any provision of chapter 7 of title 17 of this code or any rules promulgated by the commissioner of health and mental hygiene to effectuate the purposes of such provisions; and
(d) the number of licenses in the community district in which the place of business of such applicant is located is lower than the community district electronic cigarette retail dealer cap.
2. An electronic cigarette retail dealer license shall not be assignable and shall be valid only for the persons in whose names it is issued and for the transaction of business in the place of business designated therein and shall at all times be conspicuously displayed at the place of business for which it is issued.
e. Community district electronic cigarette retail dealer cap.
1. After the expiration of the 90 day application period described in paragraph 2 of subdivision b of this section, the department may process applications for up to 120 days. After such 120 days, the commissioner shall establish a community district electronic cigarette retail dealer cap for each community district in the city. The initial community district electronic cigarette retail dealer cap shall be 50 percent of the total number of licenses issued to electronic cigarette retail dealers in the community district as determined by the department.
2. The department, in conjunction with the department of health and mental hygiene, shall evaluate community district electronic cigarette retail dealer caps every two years and any time community district boundaries change. Such evaluation shall include consideration of the number of electronic cigarette retail dealers and the prevalence of electronic cigarette use. If, based on the evaluation, the department of health and mental hygiene recommends further reductions to the community district electronic cigarette retail dealer cap, the department of health and mental hygiene shall advise the speaker of the city council of such recommendation.
3. Notwithstanding paragraph 3 of subdivision b, and subparagraph d of paragraph 1 of subdivision d, of this section, if:
(a) a license of an electronic cigarette retail dealer expires at the end of a license term, such retail dealer may apply for renewal of such license;
(b) a business whose owner has been issued an electronic cigarette retail dealer is sold, the succeeding owner may apply for a license for use at the same location, provided that the electronic cigarette retail dealer selling such business was in good standing at the time of such sale, and the application is received within thirty days of the applicable change of ownership;
(c) an electronic cigarette retail dealer license becomes void pursuant to section 20-110, the succeeding beneficial owners of 10 percent or more of the stock of the organization to which a license had been granted may apply for a license provided that such electronic cigarette retail dealer was in good standing at the time the license became void, and the application is received within thirty days of the change of ownership; and
(d) an electronic cigarette retail dealer license becomes void pursuant to section 20-111, the succeeding partnership may apply for a license, provided that such retail dealer was in good standing at the time the license became void and the application is received within thirty days of the change in ownership.
(L.L. 2017/144, 8/28/2017, eff. 1/25/2018)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2017/144.