2006 New York Code - Violations And Penalties.

 
    §  17-624  Violations  and  penalties.    a. Any person found to be in
  violation of section 17-618, 17-619 or 17-620  shall  be  liable  for  a
  civil  penalty  of  not  more  than  one  thousand dollars for the first
  violation, and not more than one thousand dollars  for  each  additional
  violation  found on that day; and not more than two thousand dollars for
  the second violation and each subsequent violation at the same place  of
  business  within  a two-year period. In addition, for a second violation
  occurring on a different day and all subsequent violations occurring  on
  different  days  at the same place of business within a two-year period,
  any person who engages in business as a retail dealer shall  be  subject
  to  the  mandatory  revocation  of his or her cigarette license for such
  place of business. For  purposes  of  this  section,  any  violation  of
  section  17-618,  17-619  or  17-620 by any license holder at a place of
  business shall be included in determining the number  of  violations  by
  any  subsequent  license holder at the same place of business unless the
  subsequent license holder provides the commissioner of consumer  affairs
  with  adequate  documentation  demonstrating that the subsequent license
  holder acquired  the  premises  or  business  through  an  arm's  length
  transaction  as  defined  in  subdivision e of this section and that the
  sale or lease was not conducted, in whole or in part, for the purpose or
  permitting the original licensee to avoid the effect  of  violations  on
  the  premises.  A cigarette license shall be revoked at the same hearing
  at which a retail dealer is found  liable  for  a  second  violation  or
  subsequent  violations  at  the same place of business within a two-year
  period. Any person who shall knowingly make a  false  statement  or  who
  shall  falsify or allow to be falsified any record or report required by
  section 17-621, shall be guilty of a  misdemeanor  and  upon  conviction
  thereof,  shall  be  punished  by  a  fine of not less than five hundred
  dollars  nor  more  than  one  thousand  five  hundred  dollars,  or  by
  imprisonment  not  to  exceed  six months, or both. Any person who shall
  make a false statement or who shall falsify or allow to be falsified any
  record or report required by  section  17-621,  or  who  shall  fail  to
  maintain  any  record  or  submit any report required by section 17-621,
  shall be liable for a civil penalty  of  not  less  than  three  hundred
  dollars  nor more than one thousand five hundred dollars. Any person who
  violates section 17-622 shall be liable for a civil penalty of not  more
  than fifty dollars for each violation.
    b.  A  proceeding  to recover any civil penalty authorized pursuant to
  the provisions of subdivision a of  this  section  for  a  violation  of
  section  17-618,  17-619 or 17-620 of this chapter shall be commenced by
  the service of a notice of violation which shall be  returnable  to  the
  administrative  tribunal  established  by  the board of health where the
  department of health and  mental  hygiene  issues  such  notice  or  the
  adjudication  division  of the department of consumer affairs where that
  department or a designated employee of any  authorizing  agency  or  the
  department  of  finance  issues such notice. Such notice shall contain a
  statement  that  any  hearing  for  a  second  violation  or  subsequent
  violations  of  section  17-618,  17-619  or 17-620 at the same place of
  business within a two-year period shall also constitute  a  hearing  for
  the  revocation  of a retail dealer's cigarette license where the retail
  dealer is found to be in violation  of  any  such  sections.  Where  the
  department  of  health  and  mental  hygiene finds a retail dealer to be
  liable for  a  violation  of  section  17-618,  17-619  or  17-620  that
  department shall notify the department of consumer affairs within thirty
  days  of  such finding. Where the department of consumer affairs finds a
  retail dealer to be liable for a violation of section 17-618, 17-619  or
  17-620,  that  department  shall  notify the department of health within
  thirty days of such finding. A proceeding to recover any  civil  penalty


  authorized  pursuant  to the provisions of subdivision a of this section
  for a violation of section 17-621 or authorized pursuant to  subdivision
  h  of  section 17-621 shall be returnable to the administrative tribunal
  established  by  the  board of health. A proceeding to recover any civil
  penalty authorized pursuant to the provisions of subdivision a  of  this
  section  for  a  violation  of section 17-622 shall be returnable to the
  administrative  tribunal  established  by  the  board  of  health.  Such
  tribunal  shall  have the power to impose the civil penalties prescribed
  by subdivision a of this section or subdivision h of section  17-621  of
  this  chapter.  The  adjudication division of the department of consumer
  affairs shall have the power to impose the civil penalties prescribed by
  subdivision a of this section for a violation of section 17-618,  17-619
  or 17-620 of this chapter.
    c.  The penalties provided by subdivision a of this section and subdi-
  vision h of section 17-621 of this chapter shall be in addition  to  any
  other  penalty imposed by any other provision of law or rule promulgated
  thereunder.
    d. Whenever any person has engaged in  any  acts  or  practices  which
  constitute  a  violation of any provision of this chapter or of any rule
  promulgated thereunder, the city may make  application  to  a  court  of
  competent jurisdiction for an order enjoining such acts or practices and
  for  an  order granting a temporary or permanent injunction, restraining
  order or other order enjoining such acts or practices.
    e. For purposes of this section, "arm's length  transaction"  means  a
  sale  of  a fee or all undivided interests in real property, or lease of
  any part thereof, or a sale  of  a  business,  in  good  faith  and  for
  valuable consideration, that reflects the fair market value of such real
  property or lease, or business, in the open market, between two informed
  and   willing   parties,  where  neither  is  under  any  compulsion  to
  participate in the transaction, unaffected  by  any  unusual  conditions
  indicating  a reasonable possibility that the sale or lease was made for
  the purpose of permitting the original licensee to avoid the  effect  of
  violations  on  the  premises.  The  following  sales or leases shall be
  presumed  not  to  be  arm's   length   transactions   unless   adequate
  documentation  is  provided demonstrating that the sale or lease was not
  conducted, in whole or in  part,  for  the  purpose  of  permitting  the
  original licensee to avoid the effect of violations on the premises:
    (1) a sale between relatives; or
    (2) a sale between related companies or partners in a business; or
    (3)  a  sale  or  lease  affected by other facts or circumstances that
  would indicate that the sale or lease is entered into  for  the  primary
  purpose  of  permitting  the  original  licensee  to avoid the effect of
  violations on the premises.
    f. Notwithstanding the provisions of subdivision a  of  this  section,
  the  mandatory  revocation  of  a  license for a second offense shall be
  waived if, upon the submission of satisfactory proof,  the  commissioner
  determines that the person or persons who committed the violations which
  are  the basis for the mandatory revocation acted against the licensee's
  will in committing such  violations,  the  licensee  utilized  extensive
  precautionary  measures  to  prevent  violations  of  the  provisions of
  sections 17-618, 17-619 and 17-620 of this code, and  the  licensee  has
  terminated any financial or employment relationship with each person who
  committed the violations which are the basis of the mandatory revocation
  of  its  license  or  has  taken  other  significant disciplinary action
  against such persons.  The  commissioner  shall  not  determine  that  a
  licensee utilized extensive precautionary measures to prevent violations
  of  the  provisions  of  sections 17-618, 17-619 and 17-620 of this code
  unless the licensee submits satisfactory proof  demonstrating  that  the


  licensee  had,  prior to the second violation which is the basis for the
  mandatory revocation of its license, done the following:
    (1)  implementing  a clear policy requiring all persons working in the
  place of business to strictly comply with  the  provisions  of  sections
  17-618, 17-619 and 17-620 of this code and permitting persons working in
  the  place  of  business to complete a tobacco product sales transaction
  only after establishing the age of a prospective  purchaser  of  tobacco
  products  through identification that has been verified for authenticity
  or through photographic identification as required by section 17-620  of
  this code; and
    (2)  trained  all  persons  working in the place of business to comply
  with any such policy before they are allowed to sell tobacco products to
  the public; and
    (3) monitored the performance of  persons  working  in  the  place  of
  business  to  ensure  that they adhere to such policy, or, in accordance
  with  rules  promulgated  by  the   commissioner,   conducted   periodic
  retraining of persons working in the place of business.