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Whenever used in this subchapter:
Agent. The term "agent" means any person authorized to purchase and affix adhesive or meter stamps under chapter 13 of title 11 who is designated as an agent by the commissioner of finance.
Cigarette. The term "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.
Commissioner of finance. The term "commissioner of finance" means the commissioner of finance of the city.
Community district. The term "community district" means a community district established pursuant to of the charter.
Community district retail dealer cap. The term "community district retail dealer cap" means the maximum number of retail dealers permitted to obtain a license to sell cigarettes or tobacco products within a community district.
Dealer. The term "dealer" means any wholesale dealer or retail dealer as hereinafter defined.
Good standing. The term "good standing" means any retail dealer that has not been found to have violated subdivision a of section 20-202, subdivision a or b of section 11-1303, section 17-703, section 17-703.2, subdivision a of section 17-704, subdivision a of section 17-704.1, section 17-705, subdivision a or b of section 17-706 or section 17-715 on more than one day during the previous three consecutive years.
Person. Notwithstanding sections 1-112 and 20-102 of the code, the term "person" means any individual, partnership, society, association, joint-stock company, corporation, limited liability company, estate, receiver, trustee, assignee, referee or any other person acting in a fiduciary or representative capacity, whether appointed by a court or otherwise, and any combination of individuals.
Pharmacy. The term "pharmacy" means "pharmacy" as defined in subdivision 1 of section 6802 of the education law, and any retail store that contains a pharmacy.
Retail dealer. The term "retail dealer" means any person, other than a wholesale dealer, engaged in selling cigarettes or tobacco products. For the purposes of this chapter, the possession or transportation at any one time of more than 400 cigarettes or little cigars, or more than 50 cigars, or more than one pound of loose tobacco, smokeless tobacco, snus or shisha, or any combination thereof, by any person other than a manufacturer, an agent, a licensed wholesale dealer or a person delivering cigarettes or tobacco products in the regular course of business for a manufacturer, an agent or a licensed wholesale or retail dealer, shall be presumptive evidence that such person is a retail dealer.
Retail store. The term "retail store" means any place that, in the regular course of business, sells or rents goods directly to the public.
Sale or purchase. The term "sale or purchase" means any transfer of title or possession or both, exchange or barter, conditional or otherwise, in any manner or by any means whatsoever or any agreement therefor.
Tobacco product. The term "tobacco product" means "tobacco product" as defined in section 17-702.
Wholesale dealer. The term "wholesale dealer" means any person who sells cigarettes to retail dealers or other persons for purposes of resale only, and any person who owns, operates or maintains one or more cigarette vending machines in, at or upon premises owned or occupied by any other person.
(Am. L.L. 2017/142, 8/28/2017, eff. 2/24/2018; Am. L.L. 2017/146, 8/28/2017, eff. 2/24/2018)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2000/002, L.L. 2013/097, L.L. 2017/142 and L.L. 2017/146.
a. License required of retail dealers.
1. It shall be unlawful for any person to engage in business as a retail dealer without first having obtained a license as hereinafter prescribed for each place of business wherein such person sells cigarettes or tobacco products 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 a retail dealer.
b. License application. In order to obtain a license to engage in business as a retail dealer, a person shall file an application with the commissioner for a license for each place of business that he or she desires to have for the retail sale of cigarettes or tobacco products 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.
c. Fee and license term.
1. There shall be a biennial fee of $200 for a license to engage in the business of a retail dealer at each place of business where cigarettes or tobacco products are sold in the city.
2. All even-numbered licenses shall expire on December 31 of the even-numbered year, and all odd-numbered licenses shall expire on December 31 of the odd-numbered year, next succeeding the year in which the license is issued.
d. Issuance of license.
1. A license shall be issued to a person to conduct the business of a retail dealer for each place of business where such person engages in selling cigarettes or tobacco products 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 he or she deems 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 a retail dealer;
(C) the commissioner has not received notification from the commissioner of finance or the commissioner of the department of health and mental hygiene that such applicant is not in full compliance with any provisions of chapter 13 or chapter 40 of title 11 of this code relating to the sale of cigarettes or tobacco products, section 17-176 or section 17-176.1 or chapter 7 of title 17, or any rules promulgated by the commissioner of finance or the commissioner of the department of health and mental hygiene to effectuate the purposes of such chapters; 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 retail dealer cap.
2. A 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 designated therein and shall at all times be conspicuously displayed at the place for which it is issued.
3. Where a license for any place of business licensed pursuant to this subchapter has been revoked, the commissioner shall refuse to issue a license required under this subchapter for such place of business, unless the applicant for such license demonstrates with documentary proof, to the satisfaction of the commissioner, that the applicant acquired the premises or business through an arm's length transaction and that the applicant neither:
(A) shared in the ownership, or otherwise exercised control over the management, of the original licensee; nor
(B) employs any person who shared in the ownership, or otherwise exercised control over the management, of the original licensee.
4. For purposes of revocation of retail dealer licenses pursuant to section 17-710, any violation of section 17-703, section 17-703.2, subdivision a of 17-704, subdivision a of section 17-704.1, section 17-705 or subdivision a or b of section 17-706, or, for purposes of suspension of retail dealer licenses pursuant to section 17-716, any violation of section 17-715, by any license holder at a place of business shall be included in determining the number of violations by any subsequent license holder at the same place of business unless the subsequent license holder provides the commissioner with adequate documentation demonstrating that the subsequent license holder acquired the premises or business through an arm's length transaction and that the sale or lease was not conducted, in whole or in part, for the purpose of permitting the original licensee to avoid the effect of violations on the premises and that the subsequent license holder neither:
(A) shared in the ownership, or otherwise exercised control over the management, of the original licensee; nor
(B) employs any person who shared in the ownership, or otherwise exercised control over the management, of the original licensee.
5. For purposes of paragraphs 3 and 4 of this subdivision, "arm's length transaction" means a sale of a fee or all undivided interests in real property, or lease of any part thereof, or a sale of a business, in good faith and for valuable consideration, that reflects the fair market value of such real property or lease, or business, in the open market, between two informed and willing parties, where neither is under any compulsion to participate in the transaction, unaffected by any unusual conditions indicating a reasonable possibility that the sale or lease was made for the purpose of permitting the original licensee to avoid the effect of violations on the premises. The following sales or leases shall be presumed not to be arm's length transactions unless adequate documentation is provided demonstrating that the sale or lease was not conducted, in whole or in part, for the purpose of permitting the original licensee to avoid the effect of violations on the premises:
(1) a sale between relatives; or
(2) a sale between related companies or partners in a business; or
(3) a sale or lease affected by other facts or circumstances that would indicate that the sale or lease is entered into for the primary purpose of permitting the original licensee to avoid the effect of violations on the premises, or revocation of a license, such as a sale or lease entered into while there are violations pending against the original licensee that could result in revocation or suspension of the license.
e. Community district retail dealer cap.
1. The commissioner shall establish a community district retail dealer cap for each community district in the city. The initial community district retail dealer cap shall be 50 percent of the total number of licenses issued to retail dealers in the community district, exclusive of the number of licenses issued to retail dealers that are pharmacies, on the effective date of the local law that added this subdivision, as determined by the department.
2. The department, in conjunction with the department of health and mental hygiene, shall evaluate community district retail dealer caps every two years and any time community district boundaries change. Such evaluation shall include consideration of the number of retail dealers and the prevalence of cigarette smoking and use of other tobacco products. If, based on the evaluation, the department of health and mental hygiene recommends further reductions to the community district retail dealer cap, the department of health and mental hygiene shall advise the speaker of the city council of such recommendations.
3. The commissioner may promulgate rules governing the application process related to the issuance of new licenses after the establishment of a community district retail dealer cap.
4. Exceptions for certain licenses. Notwithstanding subparagraph (D) of paragraph 1 of subdivision d, if:
(A) a license of a retail dealer expires at the end of the license term, such retail dealer may apply for renewal of such license;
(B) a business whose owner has been issued a retail dealer license is sold, the succeeding owner may apply for a license for use at the same location, provided that the 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) a 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 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) a 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 of ownership.
(Am. L.L. 2017/142, 8/28/2017, eff. 1/1/2019; Am. L.L. 2017/143, 8/28/2017, eff. 2/24/2018; Am. L.L. 2017/146, 8/28/2017, eff. 2/24/2018)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2000/002, L.L. 2013/097, L.L. 2017/142, L.L. 2017/146 and L.L. 2018/161.
a. A retail dealer shall make and maintain such records of cigarette sales and purchases as are prescribed by the commissioner of finance pursuant to chapter thirteen of title eleven of this code.
b. Such records as are required to be kept shall be available for inspection at the place of business for which a retail dealer license is issued and such records shall be available for inspection by the commissioner of finance or such commissioner's duly authorized representatives as to the extent necessary to ascertain whether such retail dealer is in compliance with the purposes and requirements of chapter thirteen of title eleven of this code.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2000/002.
Whenever any license issued under the provisions of this subchapter is defaced, destroyed or lost, the commissioner shall issue a duplicate license to the holder of the defaced, destroyed or lost license upon the payment of a fee of fifteen dollars.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2000/002.
No agent or dealer shall sell cigarettes to an unlicensed dealer, or to a dealer whose license has been suspended or revoked. No dealer shall purchase cigarettes from any person other than a manufacturer or a licensed wholesale dealer.
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2000/002.
a. In addition to any other powers of the commissioner, and not in limitation thereof, the commissioner may, after due notice and opportunity to be heard, refuse to renew any license required under this subchapter and may suspend or revoke such license if the person holding such license, or, where applicable, any of its officers, principals, directors, members, managers, employees, or stockholders owning more than ten percent of the outstanding stock of the corporation, has been found to have:
1. made a material false statement or concealed a material fact in connection with the filing of any application pursuant to this subchapter; or
2. not paid, within the time permitted by law, any civil penalty or judgment duly imposed pursuant to the provisions of this subchapter or any rules promulgated thereunder or pursuant to chapter thirteen of title eleven of this code, or chapter forty of title eleven of this code relating to cigarette sales; or
3. violated the provisions of subdivision a or b of section 17-706 of this code or any rules promulgated thereunder; or
4. violated any provision of section 10-203 of this code or any rules promulgated thereunder.
b. In addition to the commissioner's power to refuse to renew, suspend or revoke a license as provided in subdivision a of this section, the commissioner shall be authorized to refuse to renew any license required under this subchapter and may suspend or revoke such license upon the notification by the commissioner of finance that the person holding such license, or, where applicable, any of its officers, principals, directors, employees, members, managers, or stockholders owning more than ten percent of the outstanding stock of the corporation, has been found to have violated any provision of chapter thirteen of title eleven of this code, or of chapter forty of title eleven of this code relating to cigarette sales.
c. Upon suspending or revoking any retail cigarette license, the commissioner shall direct the holder thereof to surrender to the commissioner immediately any cigarette retail license or duplicates thereof issued to such holder for such place of business and the holder shall surrender promptly all such licenses to the commissioner as directed.
(Am. L.L. 2015/095, 10/20/2015, eff. 12/19/2015; Am. L.L. 2017/191, 10/16/2017, eff. 4/14/2018)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2000/002 and L.L. 2015/095.
a. The civil penalties imposed pursuant to this section shall be in addition to any other sanctions and orders which may be imposed by the commissioner pursuant to this title including, but not limited to, such sanctions and orders which may be imposed pursuant to section 20-105 or to title 11 or title 17 of this code or pursuant to such other law the commissioner is authorized to enforce under this code. The civil penalties imposed pursuant to this section for a violation of subdivision a of section 20-202 shall be in lieu of the civil penalties imposed pursuant to section 17-703 of this code, and the civil penalties imposed pursuant to this section for a violation of section 20-205 shall be in lieu of the civil penalties imposed pursuant to subdivision b of section 17-703.2 of this code.
b. Notwithstanding the provisions of subdivision a and b of section 20-106 of this code, any person who violates any provision of this subchapter or any rules promulgated thereunder shall be subject to a civil penalty of not less than two hundred and fifty dollars but not more than two thousand dollars for each violation, to be recovered in a civil action or in an administrative tribunal with jurisdiction.
c. The commissioner, after providing notice and an opportunity to be heard, shall be authorized to order the sealing of any premises where any person has been found:
1. to have engaged in unlicensed activities in violation of this subchapter on at least two occasions within a three-year period; or
(Am. L.L. 2017/146, 8/28/2017, eff. 2/24/2018)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2000/002, L.L. 2013/097 and L.L. 2017/146.
Subchapter 2: [Repealed]
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1992/062.
(Renumbered L.L. 2021/080, 7/18/2021, eff. 3/15/2022)
Editor's note: Renumbered as Chapter 4, Subchapter 3-A. For related unconsolidated provisions, see Appendix A at L.L. 1995/072 and L.L. 2021/080.
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