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

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.