S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1926
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 13, 2015
                                      ___________
       Introduced  by  M.  of  A. DINOWITZ, JAFFEE, ROBERTS, COOK, SEPULVEDA --
         Multi-Sponsored by -- M.  of A. GOTTFRIED -- read once and referred to
         the Committee on Codes
       AN ACT to amend the criminal procedure law, the New York  city  criminal
         court  act,  the New York city charter, and the administrative code of
         the city of New York, in relation to the enforcement of the state  and
         New  York  city  cigarette taxes and other New York city taxes and the
         regulation of cigarettes and tobacco products
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Subdivision  34 of section 1.20 of the criminal procedure
    2  law is amended by adding a new paragraph (w) to read as follows:
    3    (W) THE SHERIFF, UNDERSHERIFF AND DEPUTY SHERIFFS OF NEW YORK CITY AND
    4  EMPLOYEES OF THE NEW YORK CITY DEPARTMENT OF FINANCE DESCRIBED IN SUBDI-
    5  VISION FIVE OF SECTION 2.10 OF THIS TITLE RESPONSIBLE FOR  THE  ENFORCE-
    6  MENT  OF  LAWS  RELATING  TO  THE TAX ON CIGARETTES AND TOBACCO PRODUCTS
    7  CONTAINED IN ARTICLE TWENTY AND SECTION EIGHTEEN HUNDRED FOURTEEN OF THE
    8  TAX LAW, THE NEW YORK CITY CIGARETTE TAX CONTAINED IN CHAPTERS  THIRTEEN
    9  AND  FORTY OF TITLE ELEVEN OF THE ADMINISTRATIVE CODE OF THE CITY OF NEW
   10  YORK, AND ANY OTHER LAW RELATING TO THE NEW YORK CITY CIGARETTE  TAX  OR
   11  THE TAX ON CIGARETTES AND TOBACCO PRODUCTS, FOR PURPOSES OF:
   12    A.  EXECUTING  A WARRANT OF ARREST UNDER ARTICLE ONE HUNDRED TWENTY OF
   13  THIS CHAPTER;
   14    B. PROCURING AND SERVING A SUMMONS PURSUANT  TO  ARTICLE  ONE  HUNDRED
   15  THIRTY OF THIS CHAPTER;
   16    C.  ISSUING  AND  SERVING AN APPEARANCE TICKET PURSUANT TO ARTICLE ONE
   17  HUNDRED FIFTY OF THIS CHAPTER;
   18    D. EXECUTING A BENCH WARRANT PURSUANT TO SECTION 530.70 OF THIS  CHAP-
   19  TER;
   20    E.  EXECUTING A MATERIAL WITNESS WARRANT PURSUANT TO SECTION 620.70 OF
   21  THIS CHAPTER; AND
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01856-01-5
       A. 1926                             2
    1    F. APPLYING FOR  AND  EXECUTING  SEARCH  WARRANTS  UNDER  ARTICLE  SIX
    2  HUNDRED NINETY OF THIS CHAPTER.
    3    S  2.  Subdivision 5 of section 2.10 of the criminal procedure law, as
    4  added by chapter 843 of the laws of 1980, is amended to read as follows:
    5    5. Employees of the New York city department of  finance  assigned  BY
    6  THE  COMMISSIONER  OF  FINANCE  to enforcement of [the tax on cigarettes
    7  imposed by title D of chapter forty-six of the  administrative  code  of
    8  the city of New York by the commissioner of finance]:
    9    (A)  LAWS RELATING TO NEW YORK CITY TAXES CONTAINED IN TITLE ELEVEN OF
   10  THE ADMINISTRATIVE CODE OF THE CITY OF  NEW  YORK  ADMINISTERED  BY  THE
   11  DEPARTMENT OF FINANCE; AND
   12    (B) ANY STATE OR LOCAL LAW CONCERNING CIGARETTES OR TOBACCO PRODUCTS.
   13    S  3. Subdivision 15 of section 58 of the New York city criminal court
   14  act, as amended by chapter 843 of the laws of 1980, is amended  to  read
   15  as follows:
   16    (15)  Where  an  appearance  ticket  has  been served by an officer or
   17  employee of the department of taxation and finance of the state  of  New
   18  York[, or by an employee of the New York city department of finance] who
   19  is  a peace officer under the provisions of section 2.10 of the criminal
   20  procedure law, in lieu of arrest as authorized by  article  one  hundred
   21  fifty of the criminal procedure law, in cases relating to enforcement of
   22  the  tax  on  cigarettes imposed by article twenty of the tax law [or by
   23  title D of chapter forty-six of the administrative code of the  city  of
   24  New  York],  any officer or employee of the state department of taxation
   25  and finance assigned to act in  the  capacity  of  director  of  special
   26  investigations,  principal  special  tax investigator, associate special
   27  tax investigator, supervising excise tax examiner or supervising  excise
   28  tax  investigator[,  and  in the city of New York, the assistant commis-
   29  sioner, chief of special investigations,  or  deputy  chief  of  special
   30  investigations  employed  by the New York city department of finance] is
   31  empowered, upon written authorization of the  commissioner  of  taxation
   32  and  finance [or the commissioner of finance of the city of New York], a
   33  copy of which shall be filed with the court in the  manner  provided  by
   34  rule  or  order  of  court, to administer to such officers all necessary
   35  oaths in connection with the execution of the accusatory  instrument  to
   36  be  presented  in  court  by  such  officers  in the prosecution of such
   37  offense. The total number  of  New  York  state  officers  or  employees
   38  authorized  to  administer  oaths pursuant to this subdivision shall not
   39  exceed fifteen.
   40    S 4. Section 58 of the New York city criminal court act is amended  by
   41  adding two new subdivisions 21 and 22 to read as follows:
   42    (21)  WHERE  AN  APPEARANCE  TICKET HAS BEEN SERVED BY A MEMBER OF THE
   43  OFFICE OF THE SHERIFF OF THE CITY OF NEW YORK WHO  IS  A  PEACE  OFFICER
   44  UNDER  SUBDIVISION TWO OF SECTION 2.10 OF THE CRIMINAL PROCEDURE LAW, IN
   45  LIEU OF AN ARREST IN CASES AUTHORIZED BY ARTICLE ONE  HUNDRED  FIFTY  OF
   46  THE  CRIMINAL  PROCEDURE  LAW,  A  SERGEANT DEPUTY SHERIFF, A LIEUTENANT
   47  DEPUTY SHERIFF, UNDERSHERIFF OR SHERIFF OF SUCH OFFICE IS AUTHORIZED  TO
   48  ADMINISTER  TO SUCH PEACE OFFICER ALL NECESSARY OATHS IN CONNECTION WITH
   49  THE EXECUTION OF THE ACCUSATORY INSTRUMENT TO BE PRESENTED IN  COURT  BY
   50  SUCH PEACE OFFICER IN THE PROSECUTION OF SUCH OFFENSE.
   51    (22)  WHERE AN APPEARANCE TICKET HAS BEEN SERVED BY AN EMPLOYEE OF THE
   52  NEW YORK CITY DEPARTMENT OF FINANCE WHO IS A PEACE OFFICER UNDER  SUBDI-
   53  VISION FIVE OF SECTION 2.10 OF THE CRIMINAL PROCEDURE LAW, IN LIEU OF AN
   54  ARREST  IN CASES AUTHORIZED BY ARTICLE ONE HUNDRED FIFTY OF THE CRIMINAL
   55  PROCEDURE LAW, THE DEPUTY COMMISSIONER, ASSISTANT COMMISSIONER, DIRECTOR
   56  OF TAX ENFORCEMENT  OR  ANY  OTHER  SUPERVISOR  OF  SUCH  PEACE  OFFICER
       A. 1926                             3
    1  EMPLOYED  BY  THE  DEPARTMENT  OF  FINANCE,  IS  EMPOWERED, UPON WRITTEN
    2  AUTHORIZATION OF THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK,  A
    3  COPY OF WHICH SHALL BE FILED WITH THE COURT IN A MANNER PROVIDED BY RULE
    4  OR ORDER OF THE COURT, TO ADMINISTER TO SUCH PEACE OFFICER ALL NECESSARY
    5  OATHS  IN  CONNECTION WITH THE EXECUTION OF THE ACCUSATORY INSTRUMENT TO
    6  BE PRESENTED IN COURT BY SUCH PEACE OFFICER IN THE PROSECUTION  OF  SUCH
    7  OFFENSE.
    8    S  5.    Subdivision a of section 168 of the New York city charter, as
    9  amended by local law number 59 of the city of  New  York  for  the  year
   10  2007, is amended to read as follows:
   11    a.  An  independent  tax  appeals tribunal is hereby established. Such
   12  tribunal shall be within the office of administrative tax appeals estab-
   13  lished under section one hundred fifty of  this  charter.  The  tribunal
   14  shall  have  jurisdiction  to  hear and determine cases initiated by the
   15  filing of petitions protesting notices issued  by  the  commissioner  of
   16  finance,  which give a person the right to a hearing, including, but not
   17  limited to, any notice of determination of tax due, of a tax deficiency,
   18  of a denial of a refund or credit application  [or  of  the  refusal  to
   19  grant,  the suspension or the revocation of a license issued pursuant to
   20  chapter thirteen of title eleven  of  the  administrative  code],  which
   21  notices  relate  to  nonproperty  taxes,  excise  taxes and annual vault
   22  charges imposed by the city, except those taxes and charges administered
   23  by the State of New York on behalf of the City of New York. For purposes
   24  of the preceding sentence, if the commissioner of finance fails  to  act
   25  with  respect  to a refund application before the expiration of the time
   26  period after which the taxpayer may file a petition for refund with  the
   27  tribunal  pursuant  to  subdivision (c) of section 11-529 or subdivision
   28  three of section 11-680 of the administrative code, such  failure  shall
   29  be deemed to be a notice of denial of a refund issued by the commission-
   30  er  of  finance  pursuant to such subdivision. The tribunal shall review
   31  petitions and other documents submitted to it, hold hearings, and render
   32  decisions as provided in this chapter. In  rendering  its  decisions  on
   33  claims  asserted by taxpayers or the commissioner of finance, the tribu-
   34  nal shall have the same power  and  authority  as  the  commissioner  of
   35  finance  to  impose,  modify or waive any taxes within its jurisdiction,
   36  interest thereon, and any applicable  civil  penalties.  In  appeals  in
   37  which  the rules of the commissioner of finance are at issue, the tribu-
   38  nal shall have the power and authority to rule on the legality  of  such
   39  rules.
   40    S 6. Subdivision a of section 11-124 of the administrative code of the
   41  city  of  New  York,  as  added  by  chapter 808 of the laws of 1992, is
   42  amended to read as follows:
   43    a. The commissioner of finance may establish a procedure for providing
   44  conciliation conferences for purposes  of  settling  contested  determi-
   45  nations  of  taxes  or  charges  or  denials  of refunds or credits with
   46  respect to taxes or charges imposed  under  chapter  five,  six,  seven,
   47  eight,  nine, eleven, twelve, thirteen, fourteen, [fifteen,] twenty-one,
   48  twenty-two, twenty-four, twenty-five or twenty-seven of this title[,  or
   49  for  the  purpose  of settling disputes arising from the notification of
   50  the refusal to grant, the suspension or  the  revocation  of  a  license
   51  issued  pursuant to chapter thirteen of this title]. If such a procedure
   52  is established, a conciliation  conference  shall  be  provided  at  the
   53  option  of any taxpayer or any other person subject to the provisions of
   54  any of such chapters. For purposes of this subdivision, if  the  commis-
   55  sioner  of  finance  fails  to  act with respect to a refund application
   56  before the expiration of the time period after which  the  taxpayer  may
       A. 1926                             4
    1  file  a petition for refund with the tax appeals tribunal established by
    2  section one hundred sixty-eight of the charter pursuant  to  subdivision
    3  (c)  of  section  11-529  or  subdivision three of section 11-680 of the
    4  code, such failure shall be deemed to be the denial of a refund.
    5    S  7.  Paragraphs  2  and 4 of subdivision d of section 11-1303 of the
    6  administrative code of the city of New York, as  amended  by  local  law
    7  number  2 of the city of New York for the year 2000, are amended to read
    8  as follows:
    9    (2) The commissioner of finance may also suspend or revoke a wholesale
   10  cigarette license IN ACCORDANCE  WITH  THE  REQUIREMENTS  OF  ANY  OTHER
   11  SECTION  OF  THIS CODE or any rules promulgated thereunder which author-
   12  izes the suspension or revocation of a wholesale cigarette license.
   13    (4) Upon suspending or revoking any wholesale cigarette  license,  the
   14  commissioner  of finance shall direct the holder thereof to surrender to
   15  the commissioner of finance immediately all wholesale cigarette licenses
   16  or duplicates thereof issued to such holder and the holder shall surren-
   17  der promptly all  such  licenses  to  the  commissioner  of  finance  as
   18  directed.  Before  the  commissioner  of  finance  suspends or revokes a
   19  wholesale cigarette license or notifies  the  commissioner  of  consumer
   20  affairs  of  a  finding of a violation of this chapter with respect to a
   21  retail cigarette license pursuant to paragraph (1) of this  subdivision,
   22  he or she shall notify the holder and PROVIDE the holder [shall be enti-
   23  tled  to  a  hearing, if desired, if the holder, within ninety days from
   24  the date of such notification, or, if the commissioner  of  finance  has
   25  established  a  conciliation procedure pursuant to section 11-124 of the
   26  code and the taxpayer has requested a conciliation conference in accord-
   27  ance therewith, within ninety days from the mailing  of  a  conciliation
   28  decision  or  the date of the commissioner's confirmation of the discon-
   29  tinuance of the conciliation proceeding, both (A) serves a petition upon
   30  the commissioner of finance and  (B)  files  a  petition  with  the  tax
   31  appeals  tribunal  for]  WITH a hearing. After such hearing, the commis-
   32  sioner of finance, good cause appearing therefor, may suspend or  revoke
   33  the  wholesale cigarette license, and, in the case of a retail cigarette
   34  license, notify the commissioner of consumer affairs of a  violation  of
   35  this  chapter  or  any rules promulgated thereunder. Upon such notifica-
   36  tion, the commissioner of consumer  affairs  may  suspend  or  revoke  a
   37  retail  cigarette license as provided in subdivision b of section 20-206
   38  of the code. The commissioner of  finance  may,  by  rule,  provide  for
   39  granting a similar hearing to an applicant who has been refused a whole-
   40  sale cigarette license by the commissioner of finance.
   41    S  8.  Subdivision  1 of section 11-1308 of the administrative code of
   42  the city of New York is amended to read as follows:
   43    1. To make, adopt and amend rules and regulations appropriate  to  the
   44  carrying  out of this chapter and the purposes thereof; [and] to require
   45  the filing of reports AND THE SUBMISSION OF OTHER DATA by agents  and/or
   46  WHOLESALE AND RETAIL dealers IN AN ELECTRONIC FORM; AND TO IMPOSE PENAL-
   47  TIES  OF UP TO TWO THOUSAND FIVE HUNDRED DOLLARS FOR THE FAILURE TO FILE
   48  SUCH REPORTS OR SUBMIT SUCH DATA;
   49    S 9. Section 11-1308 of the administrative code of  the  city  of  New
   50  York is amended by adding a new subdivision 12 to read as follows:
   51    12.  TO  DESIGNATE  HEARING  OFFICERS OR AN ADMINISTRATIVE TRIBUNAL TO
   52  CONDUCT ANY HEARING PROVIDED FOR UNDER THIS  CHAPTER  OR  UNDER  CHAPTER
   53  FORTY  OF THIS TITLE WITH RESPECT TO ANY MATTER FOR WHICH A TRIBUNAL HAS
   54  NOT BEEN PROVIDED UNDER THIS CODE OR ANY OTHER LAW.
   55    S 10. The administrative code of the city of New York  is  amended  by
   56  adding a new section 11-1308.1 to read as follows:
       A. 1926                             5
    1    S 11-1308.1 JUDICIAL REVIEW. A. NOTWITHSTANDING ANY OTHER PROVISION OF
    2  THIS  CHAPTER,  JUDICIAL  REVIEW  OF  ANY DECISION FOLLOWING ANY HEARING
    3  PROVIDED UNDER THIS CHAPTER SHALL BE SOUGHT WITHIN THIRTY DAYS AFTER THE
    4  GIVING OF THE NOTICE OF SUCH DECISION.
    5    B.  SUBDIVISION A OF THIS SECTION SHALL NOT APPLY TO ANY DETERMINATION
    6  MADE REGARDING:
    7    (1) ANY CIGARETTE TAX OR CIGARETTE TAX REFUND UNDER SECTION 11-1310 OR
    8  11-1311 OF THIS CHAPTER, OR
    9    (2) ANY CIGARETTE TAX PENALTY IMPOSED UNDER SECTION  11-1317  OF  THIS
   10  CHAPTER.
   11    S  11.  Subdivisions  a and b of section 11-1317 of the administrative
   12  code of the city of New York, subdivision b as amended by chapter 458 of
   13  the laws of 2006, are amended to read as follows:
   14    a. Any person failing to pay a tax payable under this chapter when due
   15  shall be subject to a penalty of [fifty] ONE HUNDRED per centum  of  the
   16  amount  of  tax  due, but the commissioner of finance, if satisfied that
   17  the delay was excusable, may remit all or any part of such penalty. Such
   18  penalty shall be paid and disposed of in the same manner as other reven-
   19  ues under this chapter. Unpaid penalties may be  enforced  in  the  same
   20  manner as the tax imposed by this chapter.
   21    b.  (1)  In addition to any other penalty imposed by this section, the
   22  commissioner of finance may (a) impose a penalty of not more than  [one]
   23  TWO  hundred dollars for each two hundred cigarettes or fraction thereof
   24  in excess of [one] FOUR HUNDRED BUT NOT MORE  THAN  TWO  thousand  ciga-
   25  rettes  in unstamped or unlawfully stamped packages in the possession or
   26  under the control of any person, AND A PENALTY OF  NOT  MORE  THAN  FIVE
   27  HUNDRED  DOLLARS  FOR EACH TWO HUNDRED CIGARETTES IN EXCESS OF TWO THOU-
   28  SAND CIGARETTES and (b) impose a penalty of not more than [two  hundred]
   29  ONE  THOUSAND dollars for each ten [affixed or] unaffixed false, altered
   30  or counterfeit cigarette tax stamps, imprints or impressions,  or  frac-
   31  tion  thereof,  [in  excess  of  one hundred affixed or unaffixed false,
   32  altered or counterfeit cigarette tax stamps, imprints or impressions] in
   33  the possession or under the control of any person. Such penalty shall be
   34  determined as provided in section 11-1310 of this chapter,  and  may  be
   35  reviewed  only pursuant to such section. Such penalty may be enforced in
   36  the same manner as the tax imposed by this chapter. The commissioner  of
   37  finance,  in his or her discretion, may remit all or part of such penal-
   38  ty. Such penalty shall be paid and disposed of in  the  same  manner  as
   39  other revenues under this chapter.
   40    (2)  The  penalties  imposed  by  this paragraph may be imposed by the
   41  commissioner of finance in addition to any other penalty imposed by this
   42  section, but in lieu of the penalties imposed  by  subparagraph  (a)  of
   43  paragraph  one  of  this  subdivision:  (a)  not  less than [thirty] TWO
   44  HUNDRED dollars but not more than [two] FIVE hundred  dollars  for  each
   45  two hundred cigarettes, or fraction thereof, in excess of [one thousand]
   46  FOUR  HUNDRED  cigarettes  but less than or equal to [five] TWO thousand
   47  cigarettes in unstamped or unlawfully stamped packages knowingly in  the
   48  possession  or  knowingly  under the control of any person; (b) not less
   49  than [seventy-five] TWO HUNDRED FIFTY dollars but  not  more  than  [two
   50  hundred]  ONE THOUSAND dollars for each two hundred cigarettes, or frac-
   51  tion thereof, in excess of [five] TWO thousand cigarettes but less  than
   52  or  equal to [twenty] TEN thousand cigarettes in unstamped or unlawfully
   53  stamped packages knowingly in the  possession  or  knowingly  under  the
   54  control  of any person; and (c) not less than [one] FIVE hundred dollars
   55  but not more than [two  hundred]  ONE  THOUSAND  dollars  for  each  two
   56  hundred  cigarettes,  or  fraction  thereof,  in excess of [twenty] FIVE
       A. 1926                             6
    1  thousand cigarettes in unstamped or unlawfully stamped  packages,  know-
    2  ingly  in  the  possession or knowingly under the control of any person.
    3  Such penalty shall be determined as provided in section 11-1310 of  this
    4  chapter, and may be reviewed only pursuant to such section. Such penalty
    5  may  be  enforced in the same manner as the tax imposed by this chapter.
    6  The commissioner of finance, in his or her discretion, may remit all  or
    7  part  of such penalty. Such penalty shall be paid and disposed of in the
    8  same manner as other revenues under this chapter.
    9    (3) A PERSON, IN THE POSSESSION OF MORE THAN FOUR  HUNDRED  CIGARETTES
   10  IN  UNSTAMPED  OR  UNLAWFULLY  STAMPED  PACKAGES,  WHO  IS  ALSO  IN THE
   11  POSSESSION OF UNAFFIXED, FALSE, ALTERED  OR  COUNTERFEIT  CIGARETTE  TAX
   12  STAMPS,  IMPRINTS  OR  IMPRESSIONS, SHALL BE PRESUMED TO KNOWINGLY BE IN
   13  THE POSSESSION OF, OR HAVE UNDER HIS, HER OR ITS CONTROL, THE  UNSTAMPED
   14  OR UNLAWFULLY STAMPED PACKAGES DESCRIBED IN PARAGRAPH TWO OF THIS SUBDI-
   15  VISION.
   16    S 12. Subdivisions (a), (c) and (d) of section 11-4012 of the adminis-
   17  trative  code  of  the  city  of New York, subdivision (a) as amended by
   18  chapter 201 of the laws of 2009, subdivision (c) as amended  by  chapter
   19  262  of  the  laws of 2000, paragraph 1 of subdivision (c) as amended by
   20  chapter 508 of the laws of 2004, and subdivision (d) as added by chapter
   21  765 of the laws of 1985, are amended to read as follows:
   22    (a) Attempt to evade or defeat tax. Any person who willfully  attempts
   23  in  any manner to evade or defeat any tax imposed by chapter thirteen of
   24  this title or payment thereof where: (1) such tax  is  unpaid  on  [ten]
   25  FIVE  thousand cigarettes or more or (2) such person has previously been
   26  convicted [two or more times] of a  crime  set  forth  in  this  chapter
   27  relating to cigarette taxes; shall be guilty of a class E felony.
   28    (c)  (1)  Any person, other than an agent so authorized by the commis-
   29  sioner of finance, who willfully possesses or transports for the purpose
   30  of sale [ten] FIVE thousand  or  more  cigarettes  subject  to  the  tax
   31  imposed by chapter thirteen of this title in any unstamped or unlawfully
   32  stamped  packages  or  who willfully sells or offers for sale [ten] FIVE
   33  thousand or more cigarettes in any unstamped or unlawfully stamped pack-
   34  ages in violation of such chapter shall be guilty of a class E felony.
   35    (2) Any person, other than an agent appointed by the  commissioner  of
   36  finance,  who  willfully possesses or transports for the purpose of sale
   37  [thirty] TEN thousand or more cigarettes subject to the tax  imposed  by
   38  chapter  thirteen  of  this title in any unstamped or unlawfully stamped
   39  packages or who willfully sells or offers for sale [thirty] TEN thousand
   40  or more cigarettes in any unstamped or unlawfully  stamped  packages  in
   41  violation of such chapter shall be guilty of a class D felony.
   42    (d) For the purposes of this section, the possession or transportation
   43  within  this city by any person, other than an agent, at any one time of
   44  [five thousand or] more THAN FOUR HUNDRED  cigarettes  in  unstamped  or
   45  unlawfully  stamped  packages  shall  be  presumptive evidence that such
   46  cigarettes are possessed or transported for the purpose of sale and  are
   47  subject  to  the  tax  imposed  by  chapter thirteen of this title. With
   48  respect to such possession or transportation, any provisions of  chapter
   49  thirteen  of  this  title providing for a time period during which a use
   50  tax imposed by such chapter may  be  paid  on  unstamped  cigarettes  or
   51  unlawfully  or  improperly stamped cigarettes or during which such ciga-
   52  rettes may be returned to an agent shall not apply. The possession with-
   53  in this city of more than four hundred cigarettes in unstamped or unlaw-
   54  fully stamped packages by any person other than an agent at any one time
   55  shall be presumptive evidence that such cigarettes are subject to tax as
   56  provided by chapter thirteen of this title.
       A. 1926                             7
    1    S 13. Subdivisions (a) and (c) of section 11-4021 of  the  administra-
    2  tive code of the city of New York, as amended by chapter 556 of the laws
    3  of 2011, are amended to read as follows:
    4    (a) Whenever a police officer designated in section 1.20 of the crimi-
    5  nal  procedure  law  or A SHERIFF, UNDERSHERIFF OR DEPUTY SHERIFF OF THE
    6  CITY OF NEW YORK DESIGNATED  A  PEACE  OFFICER  IN  SUBDIVISION  TWO  OF
    7  SECTION  2.10  OF SUCH LAW, OR a peace officer designated in subdivision
    8  five of section 2.10 of such law, acting pursuant to his special duties,
    9  shall discover any cigarettes subject to any  tax  provided  by  chapter
   10  thirteen  of this title, and upon which the tax has not been paid or the
   11  stamps not affixed as required by such chapter, they are hereby  author-
   12  ized  and empowered forthwith to seize and take possession of such ciga-
   13  rettes, together with any vending machine or receptacle  in  which  they
   14  are held for sale. Such cigarettes, vending machine or receptacle seized
   15  by  a  police  officer or such peace officer shall be turned over to the
   16  commissioner of finance.
   17    (c) The commissioner of finance may, within a  reasonable  time  after
   18  the forfeiture to the city of such vending machines or receptacles, upon
   19  publication  of  a  notice  to  such effect for at least five successive
   20  days, in a newspaper published or circulated  in  the  city,  sell  such
   21  forfeited  vending  machines  or  receptacles at public sale and pay the
   22  proceeds into the treasury of the city to  the  credit  of  the  general
   23  fund.  Such  seized vending machines or receptacles may be sold prior to
   24  forfeiture if the owner of the seized property  consents  to  the  sale.
   25  Notwithstanding any other provision of this section, the commissioner of
   26  finance  may  enter  into  an agreement with the state tax commission to
   27  provide for the disposition between the city and state of  the  proceeds
   28  from  any such sale. The commissioner of finance may [also] transfer any
   29  seized cigarettes to the state for destruction. All cigarettes forfeited
   30  to the [state] CITY shall be  destroyed  or  used  for  law  enforcement
   31  purposes,  except  that  cigarettes  that  violate,  or are suspected of
   32  violating, federal trademark laws or import laws shall not be  used  for
   33  law  enforcement purposes. If the commissioner determines the cigarettes
   34  may not be used  for  law  enforcement  purposes,  the  commissioner  of
   35  finance  must, within a reasonable time after the forfeiture to the city
   36  of such cigarettes, upon publication of a notice to such effect  for  at
   37  least  five  successive  days,  prior  to  destruction,  in  a newspaper
   38  published or circulated in the city, destroy such forfeited  cigarettes.
   39  Such  commissioner  may,  prior to any destruction of cigarettes, permit
   40  the true holder of the trademark rights in  the  cigarettes  to  inspect
   41  such  forfeited  cigarettes  in  order  to  assist  in any investigation
   42  regarding such cigarettes.
   43    S 14. This act shall take effect immediately.