FOR IMMEDIATE RELEASE Release #039-00
Friday, February 4, 2000
Contact: Sunny Mindel/Edward Skyler 212/788-2958
The next bill before me is Introductory Number 468-A, a bill I submitted to the Council over a year ago, and which is sponsored by Speaker Vallone and Council Member Koslowitz along with 10 of their colleagues. This legislation stiffens the penalties and increases the City's enforcement capabilities against merchants who sell tobacco products to minors.
Under this legislation, merchants who sell tobacco products to children will now be liable for a civil penalty of up to $1,000 for their first violation, and up to $2,000 for a second violation. Currently, first and second violations carry only up to $300 and $500 fines. In addition, under this bill, upon receipt of their second violation, stores will face the revocation of their license to sell tobacco. Currently, revocation or suspension of tobacco licenses occur only upon a third violation.
Intro. 468-A will also enable the Department of Consumer Affairs to prevent "flipping," the practice in which stores that have lost their licenses transfer ownership to an associate or relative in what essentially is a sham sale. Right now, nothing prevents a store that had its license revoked from reapplying for a tobacco license in the name of the associate or relative. Under this bill, when a merchant has his tobacco license revoked and sells his business, it will be necessary for the new owner, when he applies for a license to sell tobacco, to demonstrate to DCA that he acquired the business from the former licensee through an independent "arms-length" transaction. DCA will have the power to deny tobacco licenses to new applicants that are in anyway connected to a former license holder who has repeatedly broken the law.
By heavily increasing fines, we will remove any profit-based incentive that merchants now have to sell to minors. By making it easier to revoke the licenses of stores that have repeatedly broken the law, we will make it far more difficult for unscrupulous businesses to continue peddling tobacco products to our children. And by putting an end to questionable business sales we will prevent those who would sell tobacco to our children from hiding behind a so-called new owner.
This bill is an important initiative for my Administration, and we have worked very hard to see it become law. It is a strong but fair bill that will make it much easier for the City to protect children from the dangers of tobacco.
For the reasons previously stated, I will now sign the bill.