What's happening
This bill bans the use of coupons, discounts, and price reduction instruments for cigarettes, tobacco, and electronic cigarettes in New York.
Why it matters
Targets youth and price-sensitive consumers. By eliminating coupons, discounts, and all forms of price-reduction instruments for cigarettes, tobacco products, and e-cigarettes, the bill aims to make these products less accessible and appealing, especially to young people who are more likely to be influenced by lower prices.
Closes marketing loopholes. The legislation broadly defines "price reduction instruments" to include paper, digital, and any other forms of discounts, preventing tobacco companies from using creative marketing strategies to circumvent the ban and ensuring the intent of the law is upheld.
Establishes clear enforcement and significant penalties. The bill empowers the Attorney General to seek injunctions and impose escalating civil penalties (up to $5,000 for repeated violations), signaling strict enforcement and deterrence against retailers or manufacturers who violate these provisions.
Aims to reduce public health costs and tobacco use rates. By maintaining higher out-of-pocket prices for tobacco and nicotine products, the bill seeks to further drive down usage rates, reduce tobacco-related illnesses, and ultimately lower the associated healthcare and economic burdens on the state.
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Who cares
Tobacco retailers and vape shops
The bill would prohibit accepting coupons, offering multi-package discounts or selling cigarettes, tobacco products and electronic cigarettes below their listed prices.
Consumers who use tobacco or electronic cigarettes
The bill would eliminate coupon savings and other discounts on covered purchases, including discounted products offered with those purchases.
New York State attorney general
The bill would authorize investigations and court actions to stop violations, seek restitution and obtain civil penalties of up to $5,000 for a third violation within five years.
State health commissioner
The bill would require the commissioner or a delegate to issue rules needed to carry out the discount restrictions.
Headline styles
Ban Tobacco Coupons
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
3 Co-sponsors
History
- Reported and committed to rules
- Referred to health
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.191
- Referred to health
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban Tobacco Coupons and Discounts
In Assembly Committee · Health · Sponsor Linda Rosenthal
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1148
2019-2020 Regular Sessions
IN SENATE
January 11, 2019
Introduced by Sens. CARLUCCI, MAYER -- read twice and ordered printed, and when printed to be committed to the Committee on Health
AN ACT to amend the public health law, in relation to prohibiting the use of coupons or use of a "price reduction instrument" to lower the price of certain tobacco products
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative findings. The legislature finds that 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 prevent minors from taking up cigarette smoking or using other tobacco products. However, the legislature finds that the state should take further action to discourage adults and young adults from taking up and continuing to smoke cigarettes, use e-cigarettes, or use other tobacco products.
Despite New York state's laws which prohibit the sale of cigarettes and e-cigarettes to children under age 18, tobacco use among young adults persists. According to recent findings, nine out of ten smokers first tried cigarettes by age eighteen, and ninety-nine percent first tried cigarettes by age twenty-six. In addition, a recent report issued by the Centers for Disease Control and Prevention and the U.S. Food and Drug Administration's Center for Tobacco Products noted that while cigarette use among high school students has declined, it still is a substantial share (9.2%) of the most commonly used tobacco products by these students. Of particular importance, the report notes that e-cigarette use tripled among middle and high school students from 2013-2014 and that e-cigarette use has surpassed the current use of every other tobacco product overall.
The legislature finds that the use of price reduction promotions, especially coupons targeted in mailing, design and marketing to young
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06353-01-9
S. 1148 2
adults, results in additional and unwanted incentives for tobacco use. By encouraging purchase by price reduction, these youth-directed promotions unquestionably encourage youth use of tobacco products, and should be disallowed.
The legislature hereby declares that enactment of this act is necessary to address the persistent availability of low-priced cigarettes and tobacco products targeted to young people in New York state. This act will ban the redemption of coupons and other price reduction instruments in the sale of cigarettes and tobacco products to consumers. Such actions are necessary to discourage the use of tobacco products by younger people in New York state.
§ 2. The public health law is amended by adding a new section 1399-bb-1 to read as follows:
§ 1399-bb-1. Prohibition on the sale of discounted cigarettes and tobacco products. 1. Definitions. As used in this section:
(a) "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.
(b) "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.
(c) "Electronic cigarette" means an electronic device that delivers vapor for inhalation. Electronic cigarette shall include any refill, cartridge, and any other component of an electronic cigarette. The term includes any such device, whether manufactured, distributed, marketed or sold as an e-cigarette, e-cigar, e-pipe, e-hookah or vape pen, or under any other product name or descriptor. Electronic cigarette shall not include any product approved by the food and drug administration for sale as a drug or medical device.
(d) "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.
(e) "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.
(f) "Person" means any natural person, corporation, partnership, firm, organization or other legal entity.
(g) "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.
(h) "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-yourown tobacco, snus, bidi, snuff, tobacco-containing shisha, or dissolvable tobacco product. Tobacco product shall not include cigarettes 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
S. 1148 3
medical purposes and that is being marketed and sold solely for such purposes.
2. Prohibition on the sale of cigarettes for less than the listed price. No person shall:
(a) honor or accept a coupon or other price reduction instrument in any transaction related to the sale of cigarettes to a consumer;
(b) 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;
(c) 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 purchaser of cigarettes by the consumer; or
(d) sell, offer for sale, or otherwise provide cigarettes to a consumer for less than the listed price.
3. Prohibition on the sale of tobacco products for less than the listed price. No person shall:
(a) honor or accept a coupon or other price reduction instrument in any transaction related to the sale of tobacco products to a consumer;
(b) 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;
(c) 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
(d) sell, offer for sale, or otherwise provide tobacco products to a consumer for less than the listed price.
4. Prohibition on the sale of electronic cigarettes for less than the listed price. No person shall:
(a) honor or accept a coupon or other price reduction instrument in any transaction related to the sale of an electronic cigarette to a consumer;
(b) sell or offer for sale electronic cigarettes 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 electronic cigarettes by the consumer;
(c) sell, offer for sale, or otherwise provide any product other than an electronic cigarette to a consumer for less than the listed price in exchange for the purchase of an electronic cigarette by the consumer; or
(d) sell, offer for sale, or otherwise provide electronic cigarettes to a consumer for less than the listed price.
5. Rules. The commissioner or his or her delegate shall promulgate any rules as may be necessary or desirable for the purpose of carrying out this section.
6. Enforcement and penalties. (a) Whenever there shall be a violation of this section, an application may be made by the attorney general in the name of the people of the state of New York, to a court or justice having jurisdiction by a special proceeding to issue an injunction, and upon notice to the defendant of not less than five days, to enjoin and restrain the continuance of such violation; and if it shall appear to the satisfaction of the court or justice that the defendant has, in fact, violated this section, an injunction may be issued by the court or justice, enjoining and restraining any further violations, without requiring proof that any person has, in fact, been injured or damaged thereby. In any such proceeding, the court may make allowances to the
S. 1148 4
attorney general as provided in paragraph six of subdivision (a) of section eighty-three hundred three of the civil practice law and rules, and direct restitution. Whenever the court shall determine that a violation of this section has occurred, the court may impose a civil penalty in the following amounts:
(1) up to one thousand dollars for a first violation within a fiveyear period;
(2) up to two thousand dollars for a second violation within a fiveyear period; and
(3) up to five thousand dollars for a third violation within a fiveyear period.
(b) No person shall be liable under this section for more than one violation of any of subdivisions two or three of this section during a single day.
(c) In connection with any application as described in paragraph (a) of this subdivision, the attorney general is authorized to take proof and make a determination of the relevant facts and to issue subpoenas in accordance with the civil practice law and rules.
§ 3. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public health law, in relation to prohibiting the use of coupons or use of a "price reduction instrument" to lower the price of certain tobacco products
Purpose of bill
This legislation would prohibit the use of coupons or price reduction instruments for the purchase of certain tobacco products.
Summary of provisions
Section one provides legislative findings.
Read the full memo (757 words)
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 promul- gate 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 ciga- rettes 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 ciga- rettes.
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, pineap- ple 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 nine- ty-nine percent first tried cigarettes by age twenty-six. The legisla- ture finds, based on numerous studies, that high tobacco prices reduce tobacco consumption among both adults and persons under the age of eigh- teen, 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-cigar- ettes 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
2017-18: S4576 - HEALTH
Fiscal implications
To be determined.
Effective date
This act will take effect on the ninetieth day after it becomes law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.