Amendment of Consumer Protection Penalty Schedule for Violation of Provisions of Law relating to Cigarette Retailers

Adopted Rules: Closed to Comments

Effective Date: 
Sunday, August 5, 2018

Statement of Basis and Purpose of Rule

Local Law 145 of 2017 raises the minimum price of cigarettes and little cigars to $13 a pack from $10.50 and sets a first-ever price floor and tax for other tobacco products, such as cigars, smokeless tobacco, snus, loose tobacco and tobacco-containing shisha.

Local Law 146 of 2017 reduces the number of stores that can sell tobacco products by capping the tobacco retail dealer licenses in each community district at 50 percent of the number of active licenses as of February 24, 2018. No new tobacco retail dealer licenses will be issued in a community district until its total decreases through attrition below the cap. New York City has high tobacco retail density, with about 8,300 licensed cigarette retailers’ citywide, averaging almost 30 dealers per square mile. Easy access to tobacco retailers makes it harder for smokers to quit. Moreover, youth who frequent retail stores that sell tobacco every week have double the odds of trying smoking. This law also updates the New York City retail license for selling cigarettes to encompass all types of tobacco.

To implement Local Laws 145 and 146, DCA amends Section 6-12 of Subchapter B, Chapter 6, of Title 6 of the Rules of the City of New York, to update the fixed penalties for the violations of the laws and rules related to cigarette retail dealers, which are now called tobacco retail dealers.