Bill Text: NY A03506 | 2017-2018 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts the "marihuana regulation and taxation act"; relates to the description of marihuana, and the growing of and use of marihuana by persons twenty-one years of age or older; makes technical changes regarding the definition of marihuana; relates to the qualification of certain offenses involving marihuana and exempts certain persons from prosecution for the use, consumption, display, production or distribution of marihuana; provides for the licensure of persons authorized to produce, process and sell marihuana; levies an excise tax on certain sales of marihuana; repeals certain provisions of the penal law relating to the criminal sale of marihuana and provisions of the general business law relating to drug paraphernalia; makes an appropriation therefor.

Spectrum: Partisan Bill (Democrat 32-0)

Status: (Introduced - Dead) 2018-11-16 - print number 3506c [A03506 Detail]

Download: New_York-2017-A03506-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         3506--A
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 27, 2017
                                       ___________
        Introduced  by  M.  of A. PEOPLES-STOKES, GOTTFRIED, LUPARDO, SEPULVEDA,
          WEPRIN, HUNTER, HYNDMAN, PICHARDO, BLAKE -- Multi-Sponsored by  --  M.
          of A. FARRELL, MOSLEY, SEAWRIGHT, SIMON, SKARTADOS, STECK -- read once
          and  referred  to the Committee on Codes -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee
        AN ACT to amend the public health law, in relation to the description of
          marihuana,  and the growing of and use of marihuana by persons twenty-
          one years of age or older; to amend the civil practice law and  rules,
          in  relation  to  removing certain references to marihuana relating to
          forfeiture actions; to amend the vehicle and traffic law, in  relation
          to  making technical changes regarding the definition of marihuana; to
          amend the penal law, in  relation  to  the  qualification  of  certain
          offenses involving marihuana and to exempt certain persons from prose-
          cution  for  the use, consumption, display, production or distribution
          of marihuana; to amend the alcoholic beverage control law, in relation
          to providing for the licensure of persons authorized to produce, proc-
          ess and sell marihuana; to amend the state finance law, in relation to
          establishing the marihuana control  fund  and  the  marihuana  revenue
          fund;  to  amend the tax law, in relation to providing for the levying
          of an excise tax on certain sales of marihuana; to amend the  criminal
          procedure  law, the civil practice law and rules, the general business
          law, the state finance law, the executive law, the penal law  and  the
          vehicle  and traffic law, in relation to making conforming changes; to
          repeal sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
          and 221.40 of the penal law relating to the  criminal  possession  and
          sale of marihuana; to repeal paragraph (f) of subdivision 2 of section
          850  of  the  general  business law relating to drug related parapher-
          nalia; and making an appropriation therefor
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05327-05-7

        A. 3506--A                          2
     1    Section  1. This act shall be known and may be cited as the "marihuana
     2  regulation and taxation act".
     3    §  2.  Legislative  findings  and intent.   The legislature finds that
     4  existing marihuana laws have not been beneficial to the welfare  of  the
     5  general public. Existing laws have been ineffective in reducing or curb-
     6  ing  marihuana  use  and have instead resulted in devastating collateral
     7  consequences that inhibit an otherwise law-abiding citizen's ability  to
     8  access  housing,  employment  opportunities,  and  other vital services.
     9  Existing laws have also created an illicit  market  which  represents  a
    10  threat  to  public  health and reduces the ability of the legislature to
    11  deter the accessing of marihuana by minors. Existing marihuana laws have
    12  also disproportionately impacted African-American  and  Latino  communi-
    13  ties.
    14    The intent of this act is to regulate, control, and tax marihuana in a
    15  manner  similar to alcohol, generate millions of dollars in new revenue,
    16  prevent access to marihuana by those under the age of twenty-one  years,
    17  reduce  the illegal drug market and reduce violent crime, reduce partic-
    18  ipation of otherwise law-abiding citizens in the illicit market, end the
    19  racially disparate impact of existing  marihuana  laws  and  create  new
    20  industries and increase employment.
    21    Nothing in this act is intended to limit the authority of any district
    22  government  agency  or office or employers to enact and enforce policies
    23  pertaining to marihuana in the workplace, to  allow  driving  under  the
    24  influence  of  marihuana, to allow individuals to engage in conduct that
    25  endangers others, to allow smoking marihuana in any location where smok-
    26  ing tobacco is prohibited, or to require any individual to engage in any
    27  conduct that violates federal law or to exempt anyone from any  require-
    28  ment  of  federal law or pose any obstacle to the federal enforcement of
    29  federal law.
    30    Nothing in this act is intended to limit any privileges or rights of a
    31  medical marihuana patient or medical marihuana caregiver under  the  New
    32  York Compassionate Care Act.
    33    § 3. Section 3302 of the public health law, as added by chapter 878 of
    34  the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
    35  subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23,  24,
    36  25,  26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998,
    37  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
    38  and 40 as added by chapter 178 of the laws of  2010,  paragraph  (a)  of
    39  subdivision  20, the opening paragraph of subdivision 22 and subdivision
    40  29 as amended by chapter 163 of the laws  of  1973,  subdivision  31  as
    41  amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
    42  vision  41 as added by section 6 of part A of chapter 447 of the laws of
    43  2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
    44  chapter 60 of the laws of 2014, is amended to read as follows:
    45    §  3302.  Definitions  of terms of general use in this article. Except
    46  where  different  meanings  are  expressly   specified   in   subsequent
    47  provisions of this article, the following terms have the following mean-
    48  ings:
    49    1.  "Addict" means a person who habitually uses a controlled substance
    50  for a non-legitimate or unlawful use, and who by reason of such  use  is
    51  dependent thereon.
    52    2.   "Administer"   means  the  direct  application  of  a  controlled
    53  substance, whether by injection, inhalation,  ingestion,  or  any  other
    54  means, to the body of a patient or research subject.
    55    3.  "Agent" means an authorized person who acts on behalf of or at the
    56  direction of a manufacturer, distributor, or dispenser. No person may be

        A. 3506--A                          3
     1  authorized to so act if under title  VIII  of  the  education  law  such
     2  person  would  not  be  permitted to engage in such conduct. It does not
     3  include a common or contract carrier, public warehouseman,  or  employee
     4  of  the  carrier  or  warehouseman  when  acting in the usual and lawful
     5  course of the carrier's or warehouseman's business.
     6    4. ["Concentrated Cannabis" means
     7    (a) the separated resin, whether crude or purified,  obtained  from  a
     8  plant of the genus Cannabis; or
     9    (b)  a  material,  preparation,  mixture,  compound or other substance
    10  which contains more than two and one-half percent by weight  of  delta-9
    11  tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
    12  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    13  terpene numbering system.
    14    5.] "Controlled substance" means a substance or substances  listed  in
    15  section thirty-three hundred six of this [chapter] title.
    16    [6.]  5.  "Commissioner"  means commissioner of health of the state of
    17  New York.
    18    [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
    19  attempted transfer from one person to another of a controlled substance,
    20  whether or not there is an agency relationship.
    21    [8.]  7.  "Department"  means the department of health of the state of
    22  New York.
    23    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    24  mate user or research subject by lawful means, including by means of the
    25  internet, and includes the packaging, labeling, or compounding necessary
    26  to prepare the substance for such delivery.
    27    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    28  ing by means of the internet, other than by administering or dispensing.
    29    [11.] 10. "Distributor" means a person who  distributes  a  controlled
    30  substance.
    31    [12.]  11.  "Diversion" means manufacture, possession, delivery or use
    32  of a controlled substance by a person or in a  manner  not  specifically
    33  authorized by law.
    34    [13.] 12. "Drug" means
    35    (a) substances recognized as drugs in the official United States Phar-
    36  macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
    37  official National Formulary, or any supplement to any of them;
    38    (b) substances intended for use in the  diagnosis,  cure,  mitigation,
    39  treatment, or prevention of disease in man or animals; and
    40    (c) substances (other than food) intended to affect the structure or a
    41  function  of  the  body of man or animal. It does not include devices or
    42  their components, parts, or accessories.
    43    [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
    44  United States Department of Justice, or its successor agency.
    45    [15.]  14. "Federal controlled substances act" means the Comprehensive
    46  Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
    47  any  act  or  acts  amendatory  or  supplemental  thereto or regulations
    48  promulgated thereunder.
    49    [16.] 15. "Federal registration number" means such number assigned  by
    50  the  Federal agency to any person authorized to manufacture, distribute,
    51  sell, dispense or administer controlled substances.
    52    [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
    53  repeated  use of any controlled substance for non-legitimate or unlawful
    54  use is in danger of becoming, dependent upon such substance.
    55    [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
    56  hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental

        A. 3506--A                          4
     1  hospital or similar facility approved and certified by the department as
     2  authorized to  obtain  controlled  substances  by  distribution  and  to
     3  dispense and administer such substances pursuant to the order of a prac-
     4  titioner.
     5    [19.]  18.  "License"  means  a  written  authorization  issued by the
     6  department or the New York  state  department  of  education  permitting
     7  persons  to  engage  in  a specified activity with respect to controlled
     8  substances.
     9    [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
    10  gation,   compounding,   cultivation,  conversion  or  processing  of  a
    11  controlled substance, either directly or  indirectly  or  by  extraction
    12  from substances of natural origin, or independently by means of chemical
    13  synthesis, or by a combination of extraction and chemical synthesis, and
    14  includes  any  packaging  or repackaging of the substance or labeling or
    15  relabeling of its container, except that this term does not include  the
    16  preparation,   compounding,   packaging  or  labeling  of  a  controlled
    17  substance:
    18    (a) by a practitioner as an incident to his administering or  dispens-
    19  ing  of  a  controlled substance in the course of his professional prac-
    20  tice; or
    21    (b) by a practitioner, or by his authorized  agent  under  his  super-
    22  vision, for the purpose of, or as an incident to, research, teaching, or
    23  chemical analysis and not for sale; or
    24    (c)  by  a pharmacist as an incident to his dispensing of a controlled
    25  substance in the course of his professional practice.
    26    [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
    27  whether  growing or not; the seeds thereof; the resin extracted from any
    28  part of the plant; and every compound,  manufacture,  salt,  derivative,
    29  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    30  include the mature stalks of the plant, fiber produced from the  stalks,
    31  oil  or cake made from the seeds of the plant, any other compound, manu-
    32  facture, salt, derivative, mixture, or preparation of the mature  stalks
    33  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    34  sterilized seed of the plant which is incapable of germination.
    35    22.] 20. "Narcotic drug" means any of the following, whether  produced
    36  directly  or  indirectly  by  extraction  from  substances  of vegetable
    37  origin, or independently by means of chemical synthesis, or by a  combi-
    38  nation of extraction and chemical synthesis:
    39    (a)  opium and opiate, and any salt, compound, derivative, or prepara-
    40  tion of opium or opiate;
    41    (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
    42  which  is  chemically equivalent or identical with any of the substances
    43  referred to in [subdivision] paragraph (a) of this subdivision, but  not
    44  including the isoquinoline alkaloids of opium;
    45    (c) opium poppy and poppy straw.
    46    [23.]  21. "Opiate" means any substance having an addiction-forming or
    47  addiction-sustaining liability similar to morphine or being  capable  of
    48  conversion  into a drug having addiction-forming or addiction-sustaining
    49  liability. It  does  not  include,  unless  specifically  designated  as
    50  controlled  under section [3306] thirty-three hundred six of this [arti-
    51  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
    52  its salts (dextromethorphan). It does include its racemic and  levorota-
    53  tory forms.
    54    [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
    55  somniferum L., except its seeds.

        A. 3506--A                          5
     1    [25.] 23. "Person" means individual, institution, corporation, govern-
     2  ment or governmental subdivision  or  agency,  business  trust,  estate,
     3  trust, partnership or association, or any other legal entity.
     4    [26.]  24. "Pharmacist" means any person licensed by the state depart-
     5  ment of education to practice pharmacy.
     6    [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
     7  York  state  board  of  pharmacy  and registered with the Federal agency
     8  pursuant to the federal controlled substances act.
     9    [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
    10  opium poppy, after mowing.
    11    [29.] 27. "Practitioner" means:
    12    A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
    13  gator, or other person licensed, or  otherwise  permitted  to  dispense,
    14  administer or conduct research with respect to a controlled substance in
    15  the  course  of  a  licensed  professional practice or research licensed
    16  pursuant to this article. Such person shall be deemed  a  "practitioner"
    17  only  as  to such substances, or conduct relating to such substances, as
    18  is permitted by his license, permit or otherwise permitted by law.
    19    [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
    20  prescription,  permitting an ultimate user lawfully to obtain controlled
    21  substances  from  any  person  authorized  by  law  to   dispense   such
    22  substances.
    23    [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
    24  prescription, an electronic prescription, an oral prescription[,] or  an
    25  out-of-state prescription[, or any one].
    26    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
    27  er, or offer or agree to do the same.
    28    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
    29  possesses a controlled substance for his own use or the use by a  member
    30  of  his  household  or  for an animal owned by him or in his custody. It
    31  shall also mean and include a person designated, by a practitioner on  a
    32  prescription, to obtain such substance on behalf of the patient for whom
    33  such substance is intended.
    34    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    35  cations facilities which comprise the worldwide network of networks that
    36  employ a set of industry standards and protocols, or any predecessor  or
    37  successor  protocol  to  such  protocol,  to exchange information of all
    38  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
    39  networks,  whether  private  or  public, used to transmit information by
    40  electronic means.
    41    [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
    42  distribution,  or  dispensing  of  a  controlled substance that uses the
    43  internet, is initiated by use of the internet or causes the internet  to
    44  be used.
    45    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
    46  in  the  United  States  that sells, delivers or dispenses, or offers to
    47  sell, deliver, or dispense, a  controlled  substance  by  means  of  the
    48  internet.
    49    [37.]  35.  "Electronic prescription" means a prescription issued with
    50  an electronic signature and transmitted by electronic means  in  accord-
    51  ance with regulations of the commissioner and the commissioner of educa-
    52  tion  and consistent with federal requirements. A prescription generated
    53  on an electronic system that is printed out or transmitted via facsimile
    54  is not considered  an  electronic  prescription  and  must  be  manually
    55  signed.

        A. 3506--A                          6
     1    [38.] 36. "Electronic" means of or relating to technology having elec-
     2  trical, digital, magnetic, wireless, optical, electromagnetic or similar
     3  capabilities. "Electronic" shall not include facsimile.
     4    [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
     5  created, generated, transmitted, communicated,  received  or  stored  by
     6  means  of electronic equipment and includes the preservation, retrieval,
     7  use and disposition in accordance with regulations of  the  commissioner
     8  and the commissioner of education and in compliance with federal law and
     9  regulations.
    10    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    11  process,  attached  to or logically associated with an electronic record
    12  and executed or adopted by a person with the intent to sign the  record,
    13  in  accordance with regulations of the commissioner and the commissioner
    14  of education.
    15    [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
    16  means  the prescription monitoring program registry established pursuant
    17  to section thirty-three hundred forty-three-a of this article.
    18    [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
    19  ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
    20  drug substance to create a drug with respect to an outsourcing  facility
    21  under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
    22  further defined in this section.
    23    [43.] 41. "Outsourcing facility" means a facility that:
    24    (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
    25  section sixty-eight hundred two of the education law;
    26    (b)  is  currently  registered  as an outsourcing facility pursuant to
    27  article one hundred thirty-seven of the education law; and
    28    (c) complies with all applicable requirements  of  federal  and  state
    29  law, including the Federal Food, Drug and Cosmetic Act.
    30    Notwithstanding  any  other  provision of law to the contrary, when an
    31  outsourcing facility distributes or dispenses any  drug  to  any  person
    32  pursuant to a prescription, such outsourcing facility shall be deemed to
    33  be  providing  pharmacy services and shall be subject to all laws, rules
    34  and regulations governing pharmacies and pharmacy services.
    35    § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
    36  26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
    37  section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
    38  18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
    39  1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
    40  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
    41  laws of 2006, are amended to read as follows:
    42    (13) [Marihuana.
    43    (14)] Mescaline.
    44    [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
    45  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
    46    [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
    47  fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
    48  not, the seeds thereof, any extract from any part  of  such  plant,  and
    49  every  compound, manufacture, salts, derivative, mixture, or preparation
    50  of such plant, its seeds or extracts.
    51    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    52    [(18)] (17) N-methyl-3-piperidyl benzilate.
    53    [(19)] (18) Psilocybin.
    54    [(20)] (19) Psilocyn.
    55    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
    56  derived from the cannabis plant that are equivalents of  the  substances

        A. 3506--A                          7
     1  contained  in the plant, or in the resinous extractives of cannabis, sp.
     2  and/or synthetic substances, derivatives, and their isomers with similar
     3  chemical structure and pharmacological activity such as the following:
     4    delta 1 cis or trans tetrahydrocannabinol, and their optical isomers
     5    delta 6 cis or trans tetrahydrocannabinol, and their optical isomers
     6    delta  3, 4 cis or trans tetrahydrocannabinol, and its optical isomers
     7  (since nomenclature of these substances is not internationally standard-
     8  ized, compounds of these structures, regardless of numerical designation
     9  of atomic positions covered).
    10    [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
    11  names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
    12  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    13    [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
    14  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    15    [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
    16  names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
    17  phencyclidine, TPCP, TCP.
    18    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    19    [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
    20  N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
    21  MDE, MDEA.
    22    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    23  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    24  N-hydroxy MDA.
    25    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    26  names: TCPY.
    27    [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
    28  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    29  3- (2-aminobutyl) indole; Alpha-ET or AET.
    30    [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
    31  names: DOET.
    32    [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
    33  names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
    34  DOB; 2C-B, Nexus.
    35    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    36  optical isomers, salts and salts of isomers.
    37    § 5. Section 3382 of the public health law, as added by chapter 878 of
    38  the laws of 1972, is amended to read as follows:
    39    §  3382. Growing of the plant known as Cannabis by unlicensed persons.
    40  A person who, without being licensed so to do under this article,  grows
    41  the  plant  of  the genus Cannabis or knowingly allows it to grow on his
    42  land without  destroying  the  same,  shall  be  guilty  of  a  class  A
    43  misdemeanor,  unless the person grows in accordance with sections 221.05
    44  and 221.05-a of the penal law.
    45    § 6. Paragraph (d) of subdivision 3  of  section  1311  of  the  civil
    46  practice  law and rules, as added by chapter 655 of the laws of 1990, is
    47  amended to read as follows:
    48    (d) In a forfeiture action commenced by a claiming authority against a
    49  defendant,  the  following  rebuttable  presumption  shall  apply:   all
    50  currency  or  negotiable  instruments  payable  to  the  bearer shall be
    51  presumed to be the proceeds of a pre-conviction  forfeiture  crime  when
    52  such currency or negotiable instruments are (i) found in close proximity
    53  to  a  controlled  substance unlawfully possessed by the defendant in an
    54  amount sufficient to constitute a violation of section 220.18 or  220.21
    55  of  the penal law, or (ii) found in close proximity to any quantity of a
    56  controlled  substance  [or  marihuana]  unlawfully  possessed  by   such

        A. 3506--A                          8
     1  defendant  in  a  room,  other  than a public place, under circumstances
     2  evincing an intent to unlawfully mix, compound, distribute,  package  or
     3  otherwise prepare for sale such controlled substance [or marihuana].
     4    §  7.  Subdivision  1  of  section 3397-b of the public health law, as
     5  added by chapter 810 of the laws of 1980, is amended to read as follows:
     6    1. ["Marijuana"] "Marihuana" means [marijuana] marihuana as defined in
     7  [section thirty-three hundred two of this chapter]  subdivision  six  of
     8  section  220.00 of the penal law and shall also include tetrahydrocanna-
     9  binols or a chemical derivative of tetrahydrocannabinol.
    10    § 8. Section 114-a of the vehicle and traffic law, as added by chapter
    11  163 of the laws of 1973, is amended to read as follows:
    12    § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
    13  includes any substance listed in section thirty-three hundred six of the
    14  public  health law and marihuana and concentrated cannabis as defined in
    15  section 220.00 of the penal law.
    16    § 9. Subdivisions 5, 6 and 9 of  section  220.00  of  the  penal  law,
    17  subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
    18  6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
    19  amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
    20  subdivisions 21 and 22 are added to read as follows:
    21    5.  "Controlled  substance"  means any substance listed in schedule I,
    22  II, III, IV or V of section  thirty-three  hundred  six  of  the  public
    23  health  law other than marihuana, but including concentrated cannabis as
    24  defined in [paragraph (a) of subdivision four  of  section  thirty-three
    25  hundred two of such law] subdivision twenty-one of this section.
    26    6.  "Marihuana" means ["marihuana" or "concentrated cannabis" as those
    27  terms are defined in section thirty-three  hundred  two  of  the  public
    28  health  law] all parts of the plant of the genus Cannabis, whether grow-
    29  ing or not; the seeds thereof; the resin extracted from any part of  the
    30  plant;  and  every  compound, manufacture, salt, derivative, mixture, or
    31  preparation of the plant, its seeds or resin.  It does not  include  the
    32  mature  stalks of the plant, fiber produced from the stalks, oil or cake
    33  made from the seeds of the plant, any other compound, manufacture, salt,
    34  derivative, mixture, or preparation of the  mature  stalks  (except  the
    35  resin  extracted therefrom), fiber, oil, or cake, or the sterilized seed
    36  of the plant which is incapable of germination. It does not include  all
    37  parts of the plant Cannabis sativa L., whether growing or not, having no
    38  more than three-tenths of one percent tetrahydrocannabinol (THC).
    39    9.  "Hallucinogen"  means any controlled substance listed in [schedule
    40  I(d)] paragraphs (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
    41  (19),  (20) and (21) of subdivision (d) of schedule I of section thirty-
    42  three hundred six of the public health law.
    43    21. "Concentrated cannabis" means:
    44    (a) the separated resin, whether crude or purified,  obtained  from  a
    45  plant of the genus Cannabis; or
    46    (b)  a  material,  preparation,  mixture,  compound or other substance
    47  which contains more than three percent by weight of delta-9  tetrahydro-
    48  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
    49  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
    50  numbering system.
    51    22.  "Marihuana  products" means marihuana, concentrated cannabis, and
    52  marihuana-infused products containing concentrated marihuana or cannabis
    53  and other ingredients.
    54    § 10.  Subdivision 4 of section 220.06 of the penal law, as amended by
    55  chapter 537 of the laws of 1998, is amended to read as follows:

        A. 3506--A                          9
     1    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
     2  containing  concentrated cannabis as defined in [paragraph (a) of subdi-
     3  vision four of section thirty-three hundred two  of  the  public  health
     4  law]  subdivision  twenty-one of section 220.00 of this article and said
     5  preparations,  compounds,  mixtures  or  substances  are of an aggregate
     6  weight of one-fourth ounce or more; or
     7    § 11. Subdivision 10 of section 220.09 of the penal law, as amended by
     8  chapter 537 of the laws of 1998, is amended to read as follows:
     9    10. one  or  more  preparations,  compounds,  mixtures  or  substances
    10  containing  concentrated cannabis as defined in [paragraph (a) of subdi-
    11  vision four of section thirty-three hundred two  of  the  public  health
    12  law]  subdivision  twenty-one of section 220.00 of this article and said
    13  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    14  weight of one ounce or more; or
    15    §  12. Subdivision 3 of section 220.34 of the penal law, as amended by
    16  chapter 537 of the laws of 1998, is amended to read as follows:
    17    3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
    18  four  of  section  thirty-three  hundred  two  of the public health law]
    19  subdivision twenty-one of section 220.00 of this article; or
    20    § 13. Section 220.50 of the penal law, as amended by  chapter  627  of
    21  the laws of 1990, is amended to read as follows:
    22  § 220.50 Criminally using drug paraphernalia in the second degree.
    23    A  person  is  guilty  of  criminally  using drug paraphernalia in the
    24  second degree when he knowingly possesses or sells:
    25    1. Diluents, dilutants or adulterants, including but not  limited  to,
    26  any  of the following: quinine hydrochloride, mannitol, mannite, lactose
    27  or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
    28  under  circumstances  evincing  an intent to use, or under circumstances
    29  evincing knowledge that  some  person  intends  to  use,  the  same  for
    30  purposes  of  unlawfully mixing, compounding, or otherwise preparing any
    31  narcotic drug or stimulant, other than marihuana or concentrated  canna-
    32  bis; or
    33    2. Gelatine capsules, glassine envelopes, vials, capsules or any other
    34  material suitable for the packaging of individual quantities of narcotic
    35  drugs  or  stimulants  under circumstances evincing an intent to use, or
    36  under circumstances evincing knowledge that some person intends to  use,
    37  the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
    38  dispensing of any narcotic drug or stimulant, other  than  marihuana  or
    39  concentrated cannabis; or
    40    3. Scales and balances used or designed for the purpose of weighing or
    41  measuring  controlled substances, under circumstances evincing an intent
    42  to use, or under  circumstances  evincing  knowledge  that  some  person
    43  intends  to use, the same for purpose of unlawfully manufacturing, pack-
    44  aging or dispensing of any narcotic drug or stimulant, other than  mari-
    45  huana or concentrated cannabis.
    46    Criminally  using drug paraphernalia in the second degree is a class A
    47  misdemeanor.
    48    § 14.  Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
    49  and 221.40 of the penal law are REPEALED.
    50    § 15. The penal law is amended by adding two new sections  221.05  and
    51  221.05-a to read as follows:
    52  § 221.05 Personal use of marihuana.
    53    1.  Notwithstanding any other provision of this chapter, the following
    54  acts are lawful under state and local law for persons  twenty-one  years
    55  of age and older:

        A. 3506--A                         10
     1    (a) possessing, using, being under the influence, displaying, purchas-
     2  ing,  obtaining,  or transporting up to two pounds of marihuana and four
     3  and one-half ounces of concentrated cannabis;
     4    (b)  transferring,  without remuneration, to a person twenty-one years
     5  of age and older up to two pounds of marihuana  and  four  and  one-half
     6  ounces of concentrated cannabis;
     7    (c)  possessing, planting, cultivating, harvesting, drying, processing
     8  or transporting not more than six living marihuana plants and possessing
     9  the marihuana produced by the plants;
    10    (d) smoking, ingesting or otherwise consuming marihuana products;
    11    (e) possessing, using, displaying, purchasing, obtaining,  manufactur-
    12  ing,  transporting or giving away to persons twenty-one years of age and
    13  older marihuana paraphernalia; and
    14    (f) assisting another person who is twenty-one years of age and  older
    15  or  allow property to be used in any of the acts described in paragraphs
    16  (a) through (e) of this subdivision.
    17    2. Paragraph (e) of subdivision one of this  section  is  intended  to
    18  meet  the requirements of subsection (f) of Section 863 of Title twenty-
    19  one of the United States Code (21 U.S.C.  §  863  (f))  by  authorizing,
    20  under  state law, any person in compliance with this section to manufac-
    21  ture, possess, or distribute marihuana paraphernalia.
    22    3. Marihuana products involved in any way with conduct  deemed  lawful
    23  by  this section are not contraband nor subject to seizure or forfeiture
    24  of assets under article four hundred eighty  of  this  chapter,  section
    25  thirteen  hundred  eleven  of the civil practice law and rules, or other
    26  applicable law, and no conduct  deemed  lawful  by  this  section  shall
    27  constitute  the  basis  for  approach,  search,  seizure, arrest, and/or
    28  detention.
    29    4. (a) Except as provided in subdivision five of this section, none of
    30  the following shall, individually or in  combination  with  each  other,
    31  constitute reasonable suspicion of a crime or be used as evidence in any
    32  criminal proceeding:
    33    (1) the odor of marihuana or of burnt marihuana;
    34    (2)  the  possession  of  or  the suspicion of possession of marihuana
    35  products;
    36    (3)  The  possession  of  multiple  containers  of  marihuana  without
    37  evidence  of  marihuana  quantity in excess of sixteen ounces or concen-
    38  trated cannabis quantity in excess of four and one-half ounces; or
    39    (4) the presence of cash or currency cannot be used as evidence in any
    40  cases involving criminal sale of marihuana.
    41    (b) The possession of up to two ounces of marihuana and up to  sixteen
    42  ounces  of  marihuana  products  cannot be used as evidence in any cases
    43  involving criminal sale of marihuana.
    44    5. Subdivision four of  this  section  shall  not  apply  when  a  law
    45  enforcement officer is investigating whether a person is operating or in
    46  physical control of a vehicle or watercraft while intoxicated, under the
    47  influence of, or impaired by alcohol or a drug or any combination there-
    48  of  in violation of section eleven hundred ninety-two of the vehicle and
    49  traffic law.
    50    6. Possession of greater than two pounds of marihuana and greater than
    51  four and one-half ounces of concentrated cannabis is a violation punish-
    52  able by a fine of not more than  one  hundred  twenty-five  dollars  per
    53  offense.
    54  § 221.05-a Personal cultivation of marihuana.

        A. 3506--A                         11
     1    1.  Personal  cultivation of marihuana under paragraph (c) of subdivi-
     2  sion one of section 221.05 of this article is subject to  the  following
     3  restrictions:
     4    (a)  a  person shall plant, cultivate, harvest, dry, or process plants
     5  in accordance with local ordinances, if any, adopted in accordance  with
     6  subdivision (2) of this section;
     7    (b)  the  living  plants  and  any marihuana produced by the plants in
     8  excess of two pounds are kept within the person's private residence,  or
     9  upon  the  grounds of that private residence (e.g., in an outdoor garden
    10  area), are in a locked space, and are  not  visible  by  normal  unaided
    11  vision from a public place; and
    12    (c)  not  more  than  six  living  plants  may be planted, cultivated,
    13  harvested, dried, or processed within a  single  private  residence,  or
    14  upon the grounds of that private residence, at one time.
    15    2.  (a)  A  local  jurisdiction may enact and enforce reasonable regu-
    16  lations to reasonably regulate the actions and conduct in paragraph  (c)
    17  of  subdivision  one  of section 221.05 of this article, provided that a
    18  violation of such a regulation is only  subject  to  an  infraction  and
    19  fine.
    20    (b) Notwithstanding paragraph (a) of this subdivision, no local juris-
    21  diction  may  completely  prohibit  persons  engaging in the actions and
    22  conduct under paragraph (c) of subdivision one of section 221.05 of this
    23  article.
    24    3. A violation of  subdivision  one  or  two  of  this  section  is  a
    25  violation  punishable by a fine of not more than one hundred twenty-five
    26  dollars per offense.
    27    § 16. Section 221.45 of the penal law, as amended by  chapter  265  of
    28  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
    29  laws of 1995, is amended to read as follows:
    30  § 221.45 [Criminal] Unlicensed sale of marihuana in the third degree.
    31    A person is guilty of [criminal] unlicensed sale of marihuana  in  the
    32  third  degree when he knowingly and unlawfully sells [one or more prepa-
    33  rations, compounds, mixtures or substances containing marihuana and  the
    34  preparations,  compounds,  mixtures  or  substances  are of an aggregate
    35  weight of more than twenty-five grams] not more than sixteen  ounces  of
    36  marihuana  or  not  more  than  four and one-half ounces of concentrated
    37  cannabis, not including the weight of any other ingredient combined with
    38  marihuana to prepare topical or oral administrations,  food,  drink,  or
    39  other product.
    40    [Criminal]  Unlicensed  sale  of  marihuana  in the third degree is [a
    41  class E felony] subject to the following:
    42    1. A violation punishable by a fine of not more than one hundred twen-
    43  ty-five dollars, for a first offense;
    44    2. A violation publishable by a fine of  not  more  than  two  hundred
    45  fifty dollars for a second offense;
    46    3.  A  class  B  misdemeanor  and a fine of not more than five hundred
    47  dollars for a third or subsequent offense.
    48    § 17. Section 221.50 of the penal law, as amended by  chapter  265  of
    49  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
    50  laws of 1995, is amended to read as follows:
    51  § 221.50 [Criminal] Unlicensed sale of marihuana in the second degree.
    52    A person twenty-one years of age and older  is  guilty  of  [criminal]
    53  unlicensed  sale of marihuana in the second degree when he knowingly and
    54  unlawfully sells  one  or  more  preparations,  compounds,  mixtures  or
    55  substances   containing   marihuana  and  the  preparations,  compounds,
    56  mixtures or substances are of an aggregate  weight  of  more  than  four

        A. 3506--A                         12
     1  ounces,  or  knowingly  and  unlawfully  sells one or more preparations,
     2  compounds, mixtures [or substances containing  marihuana]  to  a  person
     3  less than [eighteen] twenty-one years of age.
     4    [Criminal]  Unlicensed  sale  of  marihuana  in the second degree is a
     5  class [D] E felony.
     6    § 18. Section 221.55 of the penal law, as amended by  chapter  265  of
     7  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
     8  laws of 1995, is amended to read as follows:
     9  § 221.55 [Criminal] Unlicensed sale of marihuana in the first degree.
    10    A person is guilty of [criminal] unlicensed sale of marihuana  in  the
    11  first  degree  when  he  knowingly and unlawfully sells to a person less
    12  than twenty-one years  of  age  one  or  more  preparations,  compounds,
    13  mixtures  or  substances  containing  marihuana  and  the  preparations,
    14  compounds, mixtures or substances are of an  aggregate  weight  of  more
    15  than sixteen ounces.
    16    [Criminal] Unlicensed sale of marihuana in the first degree is a class
    17  [C] E felony.
    18    §  19. The penal law is amended by adding a new section 221.60 to read
    19  as follows:
    20  § 221.60 Licensing of marihuana production and distribution.
    21    The provisions of this article and of article two  hundred  twenty  of
    22  this  title  shall not apply to any person exempted from criminal penal-
    23  ties pursuant to the provisions of this chapter or possessing,  manufac-
    24  turing, transporting, distributing, selling or transferring marihuana or
    25  concentrated cannabis, or engaged in any other action that is in compli-
    26  ance with article eleven of the alcoholic beverage control law.
    27    §  20.  Subdivision  8  of section 1399-n of the public health law, as
    28  amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
    29  follows:
    30    8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    31  any other matter or  substance  which  contains  tobacco  or  marihuana;
    32  provided  that  it  does  not  include  the use of an electronic smoking
    33  device that creates an aerosol or vapor, unless local or state  statutes
    34  extend prohibitions on smoking to electronic smoking devices.
    35    §  21.  Section 2 of the alcoholic beverage control law, as amended by
    36  chapter 406 of the laws of 2014, is amended to read as follows:
    37    § 2. Policy of state and purpose of chapter. It is hereby declared  as
    38  the policy of the state that it is necessary to regulate and control the
    39  manufacture,  sale and distribution within the state of alcoholic bever-
    40  ages and marihuana products for the purpose of fostering  and  promoting
    41  temperance  in  their  consumption and respect for and obedience to law;
    42  for the primary purpose of promoting the health, welfare and  safety  of
    43  the  people  of  the  state,  promoting temperance in the consumption of
    44  alcoholic beverages and marihuana products; and, to the extent possible,
    45  supporting economic growth, job development, and the  state's  alcoholic
    46  beverage  production industries and its tourism and recreation industry;
    47  and which promotes the conservation and enhancement  of  state  agricul-
    48  tural  lands;  provided  that  such  activities do not conflict with the
    49  primary regulatory objectives of this chapter.  It  is  hereby  declared
    50  that  such  policies  will  best be carried out by empowering the liquor
    51  authority of the state  to  determine  whether  public  convenience  and
    52  advantage  will  be  promoted  by the issuance of licenses to traffic in
    53  alcoholic beverages and marihuana products, the increase or decrease  in
    54  the  number  thereof  and  the  location  of  premises licensed thereby,
    55  subject only to the right of judicial review provided for in this  chap-

        A. 3506--A                         13
     1  ter.  It  is  the purpose of this chapter to carry out these policies in
     2  the public interest.
     3    § 22. Subdivisions 20-a, 20-b, 20-c, 20-d and 20-e of section 3 of the
     4  alcoholic  beverage  control law are renumbered subdivisions 20-j, 20-k,
     5  20-l, 20-m and 20-n and ten new  subdivisions  7-e,  20-a,  20-b,  20-c,
     6  20-d, 20-e, 20-f, 20-g, 20-h and 20-i are added to read as follows:
     7    7-e.  "Concentrated  cannabis" means: (a) the separated resin, whether
     8  crude or purified, obtained from a plant of the genus Cannabis; or
     9    (b) a material, preparation,  mixture,  compound  or  other  substance
    10  which  contains more than three percent by weight of delta-9 tetrahydro-
    11  cannabinol, or its isomer, delta-8  dibenzopyran  numbering  system,  or
    12  delta-1  tetrahydrocannabinol  or  its  isomer,  delta 1 (6) monoterpene
    13  numbering system.
    14    20-a. "Marihuana" means all parts of the plant of the genus  Cannabis,
    15  whether  growing or not; the seeds thereof; the resin extracted from any
    16  part of the plant; and every compound,  manufacture,  salt,  derivative,
    17  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    18  include the mature stalks of the plant, fiber produced from the  stalks,
    19  oil  or cake made from the seeds of the plant, any other compound, manu-
    20  facture, salt, derivative, mixture, or preparation of the mature  stalks
    21  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    22  sterilized seed of the plant which is incapable of germination. It  does
    23  not  include  all parts of the plant Cannabis sativa L., whether growing
    24  or not, having no more than three-tenths of one percent tetrahydrocanna-
    25  binol (THC).
    26    20-b. "Marihuana consumer" means a person twenty-one years of  age  or
    27  older  who purchases marihuana or marihuana products for personal use by
    28  persons twenty-one years of age or older, but not for resale to others.
    29    20-c. "Marihuana processor" means a person licensed by the  bureau  to
    30  purchase  marihuana  and concentrated cannabis from marihuana producers,
    31  to process  marihuana,  concentrated  cannabis,  and  marihuana  infused
    32  products,  package  and label marihuana, concentrated cannabis and mari-
    33  huana infused products for sale in retail outlets, and  sell  marihuana,
    34  concentrated  cannabis  and  marihuana  infused products at wholesale to
    35  marihuana retailers.
    36    20-d. "Marihuana producer" means a person licensed by  the  bureau  to
    37  produce, process, and sell marihuana and concentrated cannabis at whole-
    38  sale  to  marihuana  processors, marihuana retailers, or other marihuana
    39  producers, but not to consumers.
    40    20-e. "Marihuana products" means marihuana, concentrated cannabis, and
    41  marihuana-infused products.
    42    20-f. "Marihuana-infused products" means products that  contain  mari-
    43  huana, marihuana extracts, or concentrated cannabis and are intended for
    44  human  use or consumption, such as, but not limited to, edible products,
    45  ointments, and tinctures.
    46    20-g. "Marihuana retailer" means a person licensed by  the  bureau  to
    47  purchase   marihuana,   concentrated   cannabis,  and  marihuana-infused
    48  products from marihuana producers  and  marihuana  processors  and  sell
    49  marihuana,  marihuana  infused  products, and concentrated cannabis in a
    50  retail outlet.
    51    20-h. "Marihuana retailer for on-premises consumption" means a  person
    52  licensed by the bureau to purchase marihuana, concentrated cannabis, and
    53  marihuana  infused  products from marihuana producers, marihuana retail-
    54  ers, and marihuana processors and sell marihuana products for a customer
    55  to consume while the customer is within a facility.

        A. 3506--A                         14
     1    20-i. "Unreasonably impracticable" means that the  measures  necessary
     2  to  comply  with the regulations require such a high investment of risk,
     3  money, time or other resource or asset that the operation of a marihuana
     4  establishment is not worthy of being carried out by a reasonably prudent
     5  businessperson.
     6    §  23.  Section 65-b of the alcoholic beverage control law, as amended
     7  by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
     8  sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
     9  paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
    10  2000, is amended to read as follows:
    11    §  65-b.  Offense for one under age of twenty-one years to purchase or
    12  attempt to purchase an alcoholic beverage or marihuana products  through
    13  fraudulent  means. 1.  As used in this section: (a) "A device capable of
    14  deciphering any electronically readable format" or "device"  shall  mean
    15  any  commercial device or combination of devices used at a point of sale
    16  or entry that is capable of  reading  the  information  encoded  on  the
    17  magnetic strip or bar code of a driver's license or non-driver identifi-
    18  cation card issued by the commissioner of motor vehicles;
    19    (b)  "Card  holder"  means any person presenting a driver's license or
    20  non-driver identification card to a licensee, or to the agent or employ-
    21  ee of such licensee under this chapter; and
    22    (c) "Transaction scan" means the process involving a device capable of
    23  deciphering any electronically readable format by which a  licensee,  or
    24  agent  or  employee  of a licensee under this chapter reviews a driver's
    25  license or non-driver identification card presented  as  a  precondition
    26  for  the  purchase  of  an  alcoholic  beverage or marihuana products as
    27  required by subdivision two of this section or  as  a  precondition  for
    28  admission to an establishment licensed for the on-premises sale of alco-
    29  holic  beverages  or marihuana products where admission is restricted to
    30  persons twenty-one years or older.
    31    2. (a) No person under the age of twenty-one years  shall  present  or
    32  offer to any licensee under this chapter, or to the agent or employee of
    33  such licensee, any written evidence of age which is false, fraudulent or
    34  not actually his or her own, for the purpose of purchasing or attempting
    35  to purchase any alcoholic beverage or marihuana products.
    36    (b) No licensee, or agent or employee of such licensee shall accept as
    37  written evidence of age by any such person for the purchase of any alco-
    38  holic  beverage or marihuana products, any documentation other than: (i)
    39  a valid driver's license or non-driver identification card issued by the
    40  commissioner of motor  vehicles,  the  federal  government,  any  United
    41  States  territory, commonwealth or possession, the District of Columbia,
    42  a state government within the United States or a  provincial  government
    43  of the dominion of Canada, or (ii) a valid passport issued by the United
    44  States  government or any other country, or (iii) an identification card
    45  issued by the armed forces of the United States. Upon  the  presentation
    46  of  such  driver's license or non-driver identification card issued by a
    47  governmental entity, such licensee or  agent  or  employee  thereof  may
    48  perform a transaction scan as a precondition to the sale of any alcohol-
    49  ic  beverage. Nothing in this section shall prohibit a licensee or agent
    50  or employee from performing such a transaction scan on any of the  other
    51  documents  listed  in  this  subdivision if such documents include a bar
    52  code or magnetic strip that [that] may be scanned by a device capable of
    53  deciphering any electronically readable format.
    54    (c) In instances where the information deciphered by  the  transaction
    55  scan  fails  to match the information printed on the driver's license or
    56  non-driver identification card presented by the card holder, or  if  the

        A. 3506--A                         15
     1  transaction  scan indicates that the information is false or fraudulent,
     2  the attempted purchase of the alcoholic beverage or  marihuana  products
     3  shall be denied.
     4    3.  A  person violating the provisions of paragraph (a) of subdivision
     5  two of this section  shall  be  guilty  of  a  violation  and  shall  be
     6  sentenced in accordance with the following:
     7    (a)  For a first violation, the court shall order payment of a fine of
     8  not more than one hundred dollars and/or an appropriate amount of commu-
     9  nity service not to exceed thirty hours.  In  addition,  the  court  may
    10  order completion of an alcohol awareness program established pursuant to
    11  section  19.25  of  the  mental  hygiene  law  or  a marihuana awareness
    12  program.
    13    (b) For a second violation, the court shall order payment of a fine of
    14  not less than fifty dollars nor more than three  hundred  fifty  dollars
    15  and/or  an  appropriate  amount of community service not to exceed sixty
    16  hours. The court also shall order completion of an alcohol or  marihuana
    17  awareness  program as referenced in paragraph (a) of this subdivision if
    18  such program has not previously been completed by the  offender,  unless
    19  the court determines that attendance at such program is not feasible due
    20  to  the  lack  of availability of such program within a reasonably close
    21  proximity to the locality in which the offender resides or matriculates,
    22  as appropriate.
    23    (c) For third and subsequent violations, the court shall order payment
    24  of a fine of not less than fifty dollars nor  more  than  seven  hundred
    25  fifty  dollars  and/or an appropriate amount of community service not to
    26  exceed ninety hours. The court also shall order that such person  submit
    27  to  an  evaluation by an appropriate agency certified or licensed by the
    28  office of alcoholism and substance abuse services to  determine  whether
    29  the person suffers from the disease of alcoholism or alcohol or marihua-
    30  na  abuse,  unless  the  court  determines  that under the circumstances
    31  presented such an evaluation is not necessary, in which case  the  court
    32  shall  state on the record the basis for such determination. Payment for
    33  such evaluation shall be made by such person. If, based on  such  evalu-
    34  ation,  a  need  for  treatment  is indicated, such person may choose to
    35  participate in a treatment plan developed  by  an  agency  certified  or
    36  licensed  by  the  office of alcoholism and substance abuse services. If
    37  such person elects to participate in recommended  treatment,  the  court
    38  shall order that payment of such fine and community service be suspended
    39  pending the completion of such treatment.
    40    (d)  Evaluation  procedures.  For  purposes  of  this subdivision, the
    41  following shall apply:
    42    (i) The contents of an evaluation pursuant to paragraph  (c)  of  this
    43  subdivision  shall  be used for the sole purpose of [determining if such
    44  person suffers from the disease of alcoholism or alcohol abuse] diagnos-
    45  ing such person with alcohol or cannabis use disorder.
    46    (ii) The agency designated by the court  to  perform  such  evaluation
    47  shall  conduct the evaluation and return the results to the court within
    48  thirty days, subject to any state or federal confidentiality  law,  rule
    49  or  regulation  governing  the  confidentiality of alcohol and substance
    50  abuse treatment records.
    51    (iii) The office of alcoholism and substance abuse services shall make
    52  available to each supreme court law library in this  state,  or,  if  no
    53  supreme court law library is available in a certain county, to the coun-
    54  ty  court  law  library  of such county, a list of agencies certified to
    55  perform evaluations as required by subdivision (f) of section  19.07  of
    56  the mental hygiene law.

        A. 3506--A                         16
     1    (iv) All evaluations required under this subdivision shall be in writ-
     2  ing  and  the  person so evaluated or his or her counsel shall receive a
     3  copy of such evaluation prior to its use by the court.
     4    (v)  A minor evaluated under this subdivision shall have, and shall be
     5  informed by the court of, the right to obtain a second opinion regarding
     6  his or her need for alcoholism or substance use disorder treatment.
     7    4. A person violating the provisions of paragraph (b)  of  subdivision
     8  two  of this section shall be guilty of a violation punishable by a fine
     9  of not more than one hundred dollars, and/or an  appropriate  amount  of
    10  community service not to exceed thirty hours. In addition, the court may
    11  order  completion  of  an  alcohol or substance abuse training awareness
    12  program established pursuant to subdivision twelve of section  seventeen
    13  of  this chapter where such program is located within a reasonably close
    14  proximity to the locality in which the offender is employed or resides.
    15    5. No determination of guilt pursuant to this section shall operate as
    16  a disqualification of  any  such  person  subsequently  to  hold  public
    17  office,  public employment, or as a forfeiture of any right or privilege
    18  or to receive any license granted  by  public  authority;  and  no  such
    19  person shall be denominated a criminal by reason of such determination.
    20    6.  In  addition  to  the  penalties otherwise provided in subdivision
    21  three of this section, if a determination is made sustaining a charge of
    22  illegally purchasing or attempting to illegally  purchase  an  alcoholic
    23  beverage  or  marihuana  products,  the  court may suspend such person's
    24  license to drive a motor vehicle and  the  privilege  of  an  unlicensed
    25  person  of  obtaining such license, in accordance with the following and
    26  for the following periods, if it is found that a  driver's  license  was
    27  used  for  the  purpose of such illegal purchase or attempt to illegally
    28  purchase; provided, however, that where a person is  sentenced  pursuant
    29  to  paragraph (b) or (c) of subdivision three of this section, the court
    30  shall impose such license suspension if it  is  found  that  a  driver's
    31  license  was used for the purpose of such illegal purchase or attempt to
    32  illegally purchase:
    33    (a) For a first violation of paragraph (a) of subdivision two of  this
    34  section, a three month suspension.
    35    (b) For a second violation of paragraph (a) of subdivision two of this
    36  section, a six month suspension.
    37    (c)  For  a third or subsequent violation of paragraph (a) of subdivi-
    38  sion two of this section, a suspension for one year or until the  holder
    39  reaches the age of twenty-one, whichever is the greater period of time.
    40    Such  person  may  thereafter apply for and be issued a restricted use
    41  license in accordance with the provisions of section five hundred thirty
    42  of the vehicle and traffic law.
    43    7. (a) In any  proceeding  pursuant  to  subdivision  one  of  section
    44  sixty-five of this article, it shall be an affirmative defense that such
    45  person had produced a driver's license or non-driver identification card
    46  apparently  issued  by a governmental entity, successfully completed the
    47  transaction scan, and that the alcoholic beverage or marihuana  products
    48  had  been sold, delivered or given to such person in reasonable reliance
    49  upon such identification and transaction scan. In evaluating the  appli-
    50  cability  of  such  affirmative defense, the liquor authority shall take
    51  into consideration any written policy adopted  and  implemented  by  the
    52  seller to carry out the provisions of this chapter. Use of a transaction
    53  scan  shall  not  excuse  any  licensee  under this chapter, or agent or
    54  employee of such licensee, from the  exercise  of  reasonable  diligence
    55  otherwise   required   by   this   section.  Notwithstanding  the  above

        A. 3506--A                         17
     1  provisions, any such affirmative defense shall not be applicable in  any
     2  other civil or criminal proceeding, or in any other forum.
     3    (b)  A  licensee or agent or employee of a licensee may electronically
     4  or mechanically record and maintain only the information from  a  trans-
     5  action  scan  necessary to effectuate the purposes of this section. Such
     6  information shall be limited to the following: (i) name,  (ii)  date  of
     7  birth,  (iii)  driver's license or non-driver identification number, and
     8  (iv) expiration date. The liquor authority and the state commissioner of
     9  motor vehicles shall jointly  promulgate  any  regulation  necessary  to
    10  govern  the  recording  and  maintenance  of these records by a licensee
    11  under this chapter. The liquor authority and the commissioner of  health
    12  shall  jointly  promulgate  any  regulations necessary to ensure quality
    13  control in the use of transaction scan devices.
    14    8. A licensee or agent or employee of such licensee shall only use the
    15  information recorded and maintained through the use of such devices  for
    16  the  purposes  contained  in  paragraph (a) of subdivision seven of this
    17  section, and shall only use such devices for the purposes  contained  in
    18  subdivision  two  of this section. No licensee or agent or employee of a
    19  licensee shall resell or disseminate  the  information  recorded  during
    20  such  scan  to any third person. Such prohibited resale or dissemination
    21  includes, but is not limited to, any advertising,  marketing  or  promo-
    22  tional  activities.  Notwithstanding  the  restrictions  imposed by this
    23  subdivision, such records may be released pursuant to  a  court  ordered
    24  subpoena  or  pursuant to any other statute that specifically authorizes
    25  the release of such information.  Each  violation  of  this  subdivision
    26  shall  be  punishable  by  a civil penalty of not more than one thousand
    27  dollars.
    28    § 24. Section 65-c of the alcoholic beverage control law, as added  by
    29  chapter  592  of  the  laws  of  1989, paragraph (a) of subdivision 2 as
    30  amended by chapter 409 of the laws of 2016 and subdivision 3 as  amended
    31  by chapter 137 of the laws of 2001, is amended to read as follows:
    32    § 65-c. Unlawful  possession  of  an  alcoholic  beverage or marihuana
    33  product with the intent to consume by persons under the age  of  twenty-
    34  one years. 1. Except as hereinafter provided, no person under the age of
    35  twenty-one years shall possess any alcoholic beverage or marihuana prod-
    36  uct,  as defined in this chapter, with the intent to consume such bever-
    37  age or marihuana product.
    38    2. A person under the age of twenty-one years may possess any alcohol-
    39  ic beverage or marihuana product with intent to consume if the alcoholic
    40  beverage or marihuana product is given:
    41    (a) to a person who is a student in a curriculum  licensed  or  regis-
    42  tered  by  the state education department and the student is required to
    43  taste or imbibe alcoholic beverages or marihuana products  in  on-campus
    44  or  off-campus  courses  which  are  a  part of the required curriculum,
    45  provided such alcoholic beverages or marihuana products  are  used  only
    46  for  instructional  purposes  during  class  conducted  pursuant to such
    47  curriculum; or
    48    (b) to the person under twenty-one  years  of  age  by  that  person's
    49  parent or guardian.
    50    3.  Any person who unlawfully possesses an alcoholic beverage or mari-
    51  huana product with intent to consume may be summoned before and examined
    52  by a court having jurisdiction of that charge; provided,  however,  that
    53  nothing  contained herein shall authorize, or be construed to authorize,
    54  a peace officer as defined in subdivision thirty-three of  section  1.20
    55  of the criminal procedure law or a police officer as defined in subdivi-
    56  sion  thirty-four  of  section  1.20  of such law to arrest a person who

        A. 3506--A                         18
     1  unlawfully possesses an alcoholic beverage  or  marihuana  product  with
     2  intent to consume. If a determination is made sustaining such charge the
     3  court may impose a fine not exceeding fifty dollars and/or completion of
     4  an  alcohol  or  drug  awareness program established pursuant to section
     5  19.25 of the mental hygiene law and/or an appropriate amount of communi-
     6  ty service not to exceed thirty hours.
     7    4. No such determination shall operate as a  disqualification  of  any
     8  such person subsequently to hold public office, public employment, or as
     9  a forfeiture of any right or privilege or to receive any license granted
    10  by  public authority; and no such person shall be denominated a criminal
    11  by reason of such determination, nor shall such determination be  deemed
    12  a conviction.
    13    5.  Whenever a peace officer as defined in subdivision thirty-three of
    14  section 1.20 of the criminal procedure law or police officer as  defined
    15  in subdivision thirty-four of section 1.20 of the criminal procedure law
    16  shall  observe  a  person  under  twenty-one  years  of  age  openly  in
    17  possession of an alcoholic beverage or marihuana product as  defined  in
    18  this  chapter,  with  the  intent to consume such beverage or product in
    19  violation of this section, said officer may seize the beverage or  prod-
    20  uct, and shall deliver it to the custody of his or her department.
    21    6.  Any alcoholic beverage or marihuana product seized in violation of
    22  this section is hereby declared a nuisance. The  official  to  whom  the
    23  beverage or product has been delivered shall, no earlier than three days
    24  following the return date for initial appearance on the summons, dispose
    25  of  or  destroy  the  alcoholic  beverage or marihuana product seized or
    26  cause it to be disposed of or destroyed.  Any person claiming  ownership
    27  of  an alcoholic beverage or marihuana product seized under this section
    28  may, on the initial return date of the summons or earlier on  five  days
    29  notice  to  the  official or department in possession of the beverage or
    30  product, apply to the court for an order preventing the  destruction  or
    31  disposal  of  the  alcoholic  beverage  or  marihuana product seized and
    32  ordering the return of that beverage or product.   The court  may  order
    33  the  beverage or product returned if it is determined that return of the
    34  beverage or product would be in the interest  of  justice  or  that  the
    35  beverage or product was improperly seized.
    36    §  25.  The  alcoholic beverage control law is amended by adding a new
    37  section 65-e to read as follows:
    38    § 65-e. Restrictions on personal consumption of marihuana. 1.  Nothing
    39  in sections 221.05 and 221.05-a of the penal law shall be  construed  to
    40  permit any person to:
    41    (a) smoke marihuana in public;
    42    (b)  smoke  marihuana  products in a location where smoking tobacco is
    43  prohibited pursuant to section thirteen  hundred  ninety-nine-o  of  the
    44  public health law;
    45    (c) possess, smoke or ingest marihuana products in or upon the grounds
    46  of  any  school  property  used for school purposes which is owned by or
    47  leased to any elementary or secondary school or school board while chil-
    48  dren are present; or
    49    (d) smoke or ingest marihuana  products  while  driving,  operating  a
    50  motor  vehicle, boat, vessel, aircraft, or other vehicle used for trans-
    51  portation.
    52    2. For purposes of this section:
    53    (a) "Smoke" means to inhale, exhale, burn, or  carry  any  lighted  or
    54  heated  device  or  pipe,  or  any  other lighted or heated marihuana or
    55  concentrated cannabis product intended for inhalation,  whether  natural
    56  or synthetic, in any manner or in any form.

        A. 3506--A                         19
     1    (b)  "Smoke"  does not include the use of an electronic smoking device
     2  that creates an aerosol or vapor, unless local or state statutes  extend
     3  prohibitions on smoking to electronic smoking devices.
     4    3.  Violations of the restrictions under this section are subject to a
     5  fine not exceeding twenty-five  dollars  or  an  appropriate  amount  of
     6  community service not to exceed twenty hours.
     7    § 26. Section 140 of the alcoholic beverage control law, as amended by
     8  chapter 810 of the laws of 1981, is amended to read as follows:
     9    § 140. Applicability  of chapter before local option.  Until such time
    10  as it shall become unlawful to sell  alcoholic  beverages  or  marihuana
    11  products  in  any town or city by the vote of the voters in such town or
    12  city in the manner provided in this article, all of  the  provisions  of
    13  this chapter shall apply throughout the entire state. This article shall
    14  not  apply  to the Whiteface mountain ski center, owned by the state and
    15  located in the town of Wilmington, county of Essex.
    16    § 27. Section 141 of the alcoholic beverage control law, as amended by
    17  chapter 319 of the laws of 2007, is amended to read as follows:
    18    § 141. Local option for towns. 1. Not less than sixty  days  nor  more
    19  than  seventy-five days before the general election in any town at which
    20  the submission of the questions hereinafter stated is authorized by this
    21  article, a petition signed by electors of the town to a number amounting
    22  to twenty-five per centum of the votes cast in the town for governor  at
    23  the  then  last  preceding  gubernatorial  election, acknowledged by the
    24  signers or authenticated by witnesses as provided in the election law in
    25  respect of a nominating petition,  requesting  the  submission  at  such
    26  election  to  the  electors  of the town of one or more of the following
    27  questions, may be filed with the town clerk:
    28    Question 1. Tavern alcoholic  beverage  license.  Shall  a  person  be
    29  allowed  to  obtain a license to operate a tavern with a limited-service
    30  menu (sandwiches, salads, soups, etc.) which permits the tavern operator
    31  to sell alcoholic beverages for a customer to drink while  the  customer
    32  is  within the tavern. In addition, unopened containers of beer (such as
    33  six-packs and kegs) may be sold "to go" for the  customer  to  open  and
    34  drink at another location (such as, for example, at his home)?
    35    Question  2. Restaurant alcoholic beverage license. Shall the operator
    36  of a full-service restaurant  be  allowed  to  obtain  a  license  which
    37  permits  the  restaurant  operator  to  sell  alcoholic  beverages for a
    38  customer to drink while the customer is within the restaurant. In  addi-
    39  tion,  unopened  containers  of beer (such as six-packs and kegs) may be
    40  sold "to go" for the customer to open  and  drink  at  another  location
    41  (such as, for example, at his home)?
    42    Question  3.  Year-round  hotel  alcoholic beverage license. Shall the
    43  operator of a year-round hotel with a full-service restaurant be allowed
    44  to obtain a license which permits the year-round hotel to sell alcoholic
    45  beverages for a customer to drink  while  the  customer  is  within  the
    46  hotel.  In  addition, unopened containers of beer (such as six-packs and
    47  kegs) may be sold "to go" for the customer to open and drink at  another
    48  location (such as, for example, at his home)?
    49    Question  4. Summer hotel alcoholic beverage license. Shall the opera-
    50  tor of a summer hotel with a full-service restaurant, open for  business
    51  only  within  the  period from May first to October thirty-first in each
    52  year, be allowed to obtain a license which permits the summer  hotel  to
    53  sell  alcoholic  beverages for a customer to drink while the customer is
    54  within the hotel. In addition, unopened  containers  of  beer  (such  as
    55  six-packs  and  kegs)  may  be sold "to go" for the customer to open and
    56  drink at another location (such as, for example, at his home)?

        A. 3506--A                         20
     1    Question 5. Retail package liquor  or  wine  store  license.  Shall  a
     2  person  be  allowed  to  obtain  a  license  to operate a retail package
     3  liquor-and-wine or wine-without-liquor store, to sell "to  go"  unopened
     4  bottles  of  liquor or wine to a customer to be taken from the store for
     5  the  customer  to open and drink at another location (such as, for exam-
     6  ple, at his home)?
     7    Question 6. Off-premises beer and wine cooler license. Shall the oper-
     8  ator of a grocery store, drugstore  or  supply  ship  operating  in  the
     9  harbors  of  Lake  Erie be allowed to obtain a license which permits the
    10  operator to sell "to go" unopened containers of beer (such as  six-packs
    11  and  kegs)  and wine coolers with not more than 6% alcohol to a customer
    12  to be taken from the store for the customer to open and drink at another
    13  location (such as, for example, at his home)?
    14    Question 7.  Baseball  park,  racetrack,  athletic  field  or  stadium
    15  license.    Shall  a person be allowed to obtain a license which permits
    16  the sale of beer for a patron's consumption while the patron is within a
    17  baseball park, racetrack, or  other  athletic  field  or  stadium  where
    18  admission fees are charged?
    19    Question  8.  Marihuana retailer license. Shall a person be allowed to
    20  obtain a license to operate a retail marihuana store, to  sell  unopened
    21  marihuana  products  to  a  customer  to be taken from the store for the
    22  customer to open and consumer at another location (such as, for example,
    23  at his home)?
    24    Question 9. On-premises marihuana retailer licenses. Shall a person be
    25  allowed to obtain a license to operate a facility where the  service  of
    26  food  is only incidental and permits the facility operator to sell mari-
    27  huana products for a customer to consumer while the customer  is  within
    28  the facility?
    29    2.  Upon  the due filing of such petition complying with the foregoing
    30  provisions, such questions shall be submitted in accordance therewith.
    31    3. The town clerk shall, within five days  from  the  filing  of  such
    32  petition  in  his office, prepare and file in the office of the board of
    33  elections, as defined by the election law, of the  county,  a  certified
    34  copy  of such petition. Such questions may be submitted only at the time
    35  of a general election. At least ten days before such  general  election,
    36  the  board of elections shall cause to be printed and posted in at least
    37  four public places in such town, a notice of the fact that  all  of  the
    38  local  option  questions  will be voted on at such general election; and
    39  the said notice shall also be published at least five  days  before  the
    40  vote is to be taken once in a newspaper published in the county in which
    41  such town is situated, which shall be a newspaper published in the town,
    42  if  there  be one. Whenever such questions are to be submitted under the
    43  provisions of this article the board of elections shall cause the proper
    44  ballot labels to be printed and placed on all voting  machines  used  in
    45  the  town  in  which  such  questions  are  to be submitted, in the form
    46  prescribed by the election law in respect of other propositions or ques-
    47  tions, upon the face of which shall be printed in full  the  said  ques-
    48  tions.  Any  elector qualified to vote for state officers shall be enti-
    49  tled to vote upon such local option questions. As soon as  the  election
    50  shall  be  held, a return of the votes cast and counted shall be made as
    51  provided by law and the returns canvassed by the inspectors of election.
    52  If a majority of the votes cast shall be in the negative on all  or  any
    53  of  the  questions, no person shall, after such election, sell alcoholic
    54  beverages or marihuana products in such town contrary to such vote or to
    55  the provisions of this chapter; provided, however, that  the  result  of
    56  such vote shall not shorten the term for which any license may have been

        A. 3506--A                         21
     1  lawfully  issued under this chapter or affect the rights of the licensee
     2  thereunder; and no person shall after such vote apply for or  receive  a
     3  license  to  sell alcoholic beverages or marihuana products at retail in
     4  such  town  contrary  to  such vote, until, by referendum as hereinafter
     5  provided for, such sale shall again become lawful.
     6    § 28. Subdivision 3 of section 142 of the alcoholic  beverage  control
     7  law is amended to read as follows:
     8    3.  If a majority of the votes cast shall be in the negative on any or
     9  all of the questions, no person shall, after such election,  sell  alco-
    10  holic beverages or marihuana products in such city contrary to such vote
    11  or to the provisions of this chapter; provided, however, that the result
    12  of  such  vote shall not shorten the term for which any license may have
    13  been lawfully issued under this chapter or  affect  the  rights  of  the
    14  licensee  thereunder;  and  no person shall after such vote apply for or
    15  receive a license to sell alcoholic beverages or marihuana  products  at
    16  retail in such city contrary to such vote, until, by referendum as here-
    17  inafter provided for, such sale shall again become lawful.
    18    §  29.  Subdivision 2 of section 147 of the alcoholic beverage control
    19  law is amended to read as follows:
    20    2. If at the time of any subsequent submission of  such  questions  it
    21  shall  be lawful to sell alcoholic beverages or marihuana products and a
    22  majority of the votes cast shall be in the negative on  such  questions,
    23  then  all  of  the  provisions  of this article applicable thereto shall
    24  become effective.
    25    § 30. Article 11 and sections 160, 161, 162, 163 and 164 of the  alco-
    26  holic  beverage  control  law, article 11 and sections 160, 161, 162 and
    27  163 as renumbered by chapter 725 of the laws  of  1954,  are  renumbered
    28  article 12 and sections 200, 201, 202, 203, 204.
    29    §  31.  The  alcoholic beverage control law is amended by adding a new
    30  article 11 to read as follows:
    31                                  ARTICLE 11
    32                      PROVISIONS RELATING TO MARIHUANA
    33  Section 165. Definitions.
    34          166. Bureau of marihuana policy.
    35          167. Administration of the bureau of marihuana policy.
    36          168. Licenses issued.
    37          169. Licensing limits.
    38          170. Actions taken pursuant to a valid license are lawful.
    39          171. General prohibitions and restrictions.
    40          172. Certain officials not to be interested in  the  manufacture
    41                 or sale of marihuana.
    42          173. Provisions governing initial rulemaking.
    43          174. Provisions governing marihuana producers.
    44          175. Provisions governing processors.
    45          176. Provisions governing marihuana retailers.
    46          177. Provisions    governing   marihuana   on-site   consumption
    47                 licenses.
    48          178. Advertising and forms of the issuance of licenses.
    49          179. Packaging of marihuana products.
    50          180. Labeling of marihuana products.
    51          181. Seed to sale tracking.
    52          182. Renewals of licenses and permits.
    53          183. Information to be provided by applicants.
    54          184. Notification to municipalities.
    55          185. Licenses, publication, general provisions.
    56          186. Revocation of licenses for cause.

        A. 3506--A                         22
     1          187. Procedure for revocation or cancellation.
     2          188. Decisions  of  the bureau of marihuana policy and review by
     3                 the courts.
     4          189. Minority and women business enterprises.
     5          190. Disposition of moneys received for license fees.
     6          191. Persons forbidden to traffic in marihuana.
     7          192. Surrender of license; notice to police officials.
     8          193. Authority to promulgate rules and regulations.
     9          194. Protections for the use of marihuana.
    10          195. Discrimination protections for  the  use  of  marihuana  or
    11                 medical marihuana.
    12          196. Employment protections.
    13          197. Protections for persons under state supervision.
    14          198. Professional and medical record keeping.
    15    §  165. Definitions. Whenever used in this chapter, unless the context
    16  requires otherwise:
    17    1. "Applicant" means an owner applying for a license pursuant to  this
    18  article.
    19    2."Bureau" means the bureau of marihuana policy within the authority.
    20    3.  "Commercial  marihuana activity" means the production, processing,
    21  possession, storing, laboratory testing, packaging, labeling,  transpor-
    22  tation,  delivery,  or  sale  of  marihuana  and  marihuana  products as
    23  provided for in this article.
    24    4. "Customer" means a natural person twenty-one years of age or older.
    25    5. "Delivery" means a licensee  that  delivers  retail  marihuana  and
    26  marihuana  products  to  customers. Retailer licensees and microbusiness
    27  licensees are  permitted  to  deliver  retail  marihuana  and  marihuana
    28  products  to  customers  without  obtaining  an  additional  distributor
    29  license.
    30    6. "Distribution" means the procurement, sale, and transport of  mari-
    31  huana  and marihuana products between entities licensed pursuant to this
    32  article.
    33    7. "Distributor" means a licensee for the  distribution  of  marihuana
    34  and  marihuana products between entities licensed pursuant to this arti-
    35  cle.  Producer licensees, processor licensees, and microbusiness  licen-
    36  sees  are  permitted  to  distribute  marihuana  and  marihuana products
    37  between entities licensed pursuant to this article without obtaining  an
    38  additional distributor license.
    39    8.  "Labeling"  means  any label or other written, printed, or graphic
    40  matter upon a marihuana product, or upon its container  or  wrapper,  or
    41  that accompanies any marihuana product.
    42    9.  "License"  means  a  state license issued under this article. Each
    43  license issued pursuant to this article corresponds to a single place of
    44  business.
    45    10. "Licensee" means any person or entity holding a license under this
    46  article.
    47    11. "Marihuana" means all parts of the plant of  the  genus  cannabis,
    48  whether  growing or not; the seeds thereof; the resin extracted from any
    49  part of the plant; and every compound,  manufacture,  salt,  derivative,
    50  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    51  include the mature stalks of the plant, fiber produced from the  stalks,
    52  oil  or cake made from the seeds of the plant, any other compound, manu-
    53  facture, salt, derivative, mixture, or preparation of the mature  stalks
    54  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    55  sterilized seed of the plant which is incapable of germination. It  does
    56  not  include  all parts of the plant Cannabis Sativa I., whether growing

        A. 3506--A                         23
     1  or not, having no more than three-tenths of one percent tetrahydrocanna-
     2  binol (THC).
     3    12.  "Marihuana  products" means marihuana, concentrated cannabis, and
     4  marihuana-infused products.
     5    13. "Marihuana-infused products" means products that contain  marihua-
     6  na,  marihuana  extracts,  or concentrated cannabis and are intended for
     7  human use or consumption, such as, but not limited to, edible  products,
     8  ointments, and tinctures.
     9    14.  "Microbusiness"  means  a  licensee  that  may act as a marihuana
    10  producer for the cultivation of marihuana on an area less than ten thou-
    11  sand square feet, a marihuana processor, and a marihuana retailer  under
    12  this  article,  provided  such  licensee  complies with all requirements
    13  imposed by this article on licensed producers, processors, and retailers
    14  to the extent the licensee engages in such activities. A "microbusiness"
    15  may distribute marihuana and marihuana products to other licensed  mari-
    16  huana  businesses  and  may  deliver marihuana and marihuana products to
    17  customers.
    18    15. "Nursery" means a licensee that  produces  only  clones,  immature
    19  plants, seeds, and other agricultural products used specifically for the
    20  planting, propagation, and cultivation of marihuana.
    21    16.  "Onsite consumption" means a marihuana retail licensee or a mari-
    22  huana microbusiness that permits the consumption of marihuana and  mari-
    23  huana products at the licensee's place of business.
    24    17.  "Owner"  means an individual with an aggregate ownership interest
    25  of twenty percent or more in a marihuana business licensed  pursuant  to
    26  this article, unless such interest is solely a security, lien, or encum-
    27  brance,  or  an  individual that will be participating in the direction,
    28  control, or management of the licensed marihuana business.
    29    18. "Package" means any container or receptacle used for holding mari-
    30  huana or marihuana products.
    31    19. "Processor" means a licensee  that  compounds,  blends,  extracts,
    32  infuses,  or otherwise makes or prepares marihuana products, but not the
    33  production of the  marihuana  contained  in  the  marihuana  product.  A
    34  "processor"  may  also  distribute  marihuana  and marihuana products to
    35  other licensed marihuana businesses.
    36    20. "Producer" means a licensee that plants, grows,  harvests,  dries,
    37  cures,  grades,  or  trims  marihuana.  A "producer" may also distribute
    38  marihuana to other licensed marihuana businesses.
    39    21. "Retailer" means a licensee  that  sells  marihuana  or  marihuana
    40  products  directly  to customers. A "retailer" may deliver marihuana and
    41  marihuana products to customers.
    42    22. "Testing facility" means a licensee that tests marihuana and mari-
    43  huana products.
    44    § 166. Bureau of marihuana policy. There is hereby established in  the
    45  authority  a bureau of marihuana policy. The members of the bureau shall
    46  be appointed by the governor by and with the advice and consent  of  the
    47  senate. Not more than two members of the bureau shall belong to the same
    48  political  party. The chairman of the bureau of marihuana policy hereto-
    49  fore appointed and designated by the governor and the remaining  members
    50  of  such  board  heretofore  appointed by the governor shall continue to
    51  serve as chairman and members of the bureau until the expiration of  the
    52  respective  terms  for which they were appointed. Upon the expiration of
    53  such respective terms the successors of such chairman and members  shall
    54  be  appointed  to  serve  for a term of three years each and until their
    55  successors have been appointed and qualified. The  commissioners,  other
    56  than  the  chairman  shall,  when  performing the work of the bureau, be

        A. 3506--A                         24
     1  compensated at a rate of two hundred sixty  dollars  per  day,  together
     2  with  an  allowance  for  actual  and necessary expenses incurred in the
     3  discharge of their duties.
     4    §  167.  Administration  of  the  bureau of marihuana policy.   1. The
     5  bureau established in section one  hundred  sixty-six  of  this  article
     6  shall  heretofore  have  the  power,  duty, purpose, responsibility, and
     7  jurisdiction to regulate commercial marihuana activity  as  provided  in
     8  the Marihuana Regulation and Taxation Act.
     9    2.  The  bureau  shall  have the exclusive authority to create, issue,
    10  renew, discipline, suspend, or revoke licenses for commercial  marihuana
    11  activities  in  accordance  with the state administrative procedure act,
    12  codified at N.Y. A.P.A. Law § 100 et seq.
    13    (a) The bureau shall consult with the department  of  agriculture  and
    14  markets  regarding  rules, regulations, and licenses for the cultivation
    15  of marihuana.
    16    (b) The bureau shall begin issuing licenses not  later  than  eighteen
    17  months  following  the  effective  date  of the Marihuana Regulation and
    18  Taxation Act.
    19    (i) The bureau shall begin accepting applications no more than fifteen
    20  months following the effective date of this act.
    21    (ii) Pursuant to section one hundred eighty-four of this article,  the
    22  bureau shall notify municipalities of any applications for license.
    23    (iii)  The  bureau  shall  issue  an  annual  license to the applicant
    24  between forty-five and ninety  days  after  receipt  of  an  application
    25  unless  the  bureau  finds the applicant is not in compliance with regu-
    26  lations enacted pursuant to section one hundred  seventy-three  of  this
    27  article  or the department is notified by the relevant municipality that
    28  the applicant is not in compliance with such regulations.
    29    (c) The bureau shall have the authority to collect fees in  connection
    30  with  activities  they regulate concerning marihuana pursuant to section
    31  one hundred ninety of this article.
    32    3. (a) Not later than ten months following the enactment of this arti-
    33  cle, each municipality may enact an ordinance or  regulation  specifying
    34  the  entity  within  the municipality that is responsible for processing
    35  applications submitted for a license to operate a  marihuana  establish-
    36  ment  within  the boundaries of the municipality and for the issuance of
    37  such licenses should the issuance by the municipality  become  necessary
    38  because  of  a  failure  by  the bureau to adopt regulations pursuant to
    39  section one hundred seventy-three of this article or because of a  fail-
    40  ure  by  the  bureau  to  process  and issue licenses as required by the
    41  subdivision two of this section.
    42    (b) A  municipality  may  enact  ordinances  or  regulations,  not  in
    43  conflict  with  this  section or with regulations or legislation enacted
    44  pursuant to this section, governing the time, place, manner  and  number
    45  of  marihuana  establishment operations; establishing procedures for the
    46  issuance, suspension, and revocation of a license issued by the  munici-
    47  pality  in  accordance  with paragraphs (c) and (d) of this subdivision,
    48  such procedures to be subject to all requirements of  state  administra-
    49  tive  procedure  act, codified as N.Y. A.P.A. Law § 100, et seq.  or any
    50  successor  provision,  establishing  a  schedule  of  annual  operating,
    51  licensing,  and application fees for marihuana establishments, provided,
    52  the application fee shall only be due if an application is submitted  to
    53  a  municipality in accordance with paragraph (d) of this subdivision and
    54  a licensing fee shall only be due if a license is issued  by  a  munici-
    55  pality  in accordance with paragraph (c) or (d) of this subdivision; and
    56  establishing civil penalties for violation of an ordinance or regulation

        A. 3506--A                         25
     1  governing the time, place, and manner of a marihuana establishment  that
     2  may  operate  in  such  a  municipality. A municipality may prohibit the
     3  operation  of  marihuana  production  facilities,  marihuana  processing
     4  facilities, marihuana retail stores, marihuana microbusinesses, or mari-
     5  huana testing facilities through the enactment of an ordinance.
     6    (c)  If  the  bureau  does  not issue a license to an applicant within
     7  ninety days of receipt of  the  application  filed  in  accordance  with
     8  subdivision two and does not notify the applicant of the specific reason
     9  for its denial, in writing and within such time period, or if the bureau
    10  has adopted regulations pursuant to section one hundred seventy-three of
    11  this  article  but has not issued any licenses within eighteen months of
    12  the effective date of this article, for any locality enacting  an  ordi-
    13  nance  providing for local processing of applications, the applicant may
    14  resubmit its application directly to the municipality pursuant to  para-
    15  graph  (a) of this subdivision, and the municipality may issue an annual
    16  license to the applicant. A municipality issuing a license to an  appli-
    17  cant shall do so within ninety days of receipt of the resubmitted appli-
    18  cation unless the municipality finds and notifies the applicant that the
    19  applicant  is not in compliance with the ordinances and regulations made
    20  pursuant to paragraph (b) of this subdivision in effect at the time  the
    21  application  is resubmitted and the municipality shall notify the bureau
    22  if an annual license has been issued to the applicant. If an application
    23  is submitted to a municipality under this paragraph,  the  bureau  shall
    24  forward to the municipality the application fee paid by the applicant to
    25  the bureau upon request by the municipality. A license issued by a muni-
    26  cipality in accordance with this paragraph shall have the same force and
    27  effect  as a license issued by the bureau in accordance with subdivision
    28  two of this section and the holder of such license shall not be  subject
    29  to  regulation  or  enforcement  by  the  bureau during the term of that
    30  license. A subsequent or renewed license may be issued under this  para-
    31  graph on an annual basis only upon resubmission to the municipality of a
    32  new  application  submitted to the bureau pursuant to subdivision two of
    33  this section.  Nothing in this paragraph shall limit such relief as  may
    34  be available to an aggrieved party under section four hundred one of the
    35  state administrative procedure act or any successor provision.
    36    (d)  If  the bureau does not adopt regulations required by section one
    37  hundred seventy-three of this article, an applicant may submit an appli-
    38  cation directly to a municipality fifteen months following the effective
    39  date of this article and the municipality may issue an annual license to
    40  the applicant. A municipality issuing a license to an applicant shall do
    41  so within ninety days of receipt of the application unless it finds  and
    42  notifies  the  applicant  that  the  applicant is not in compliance with
    43  ordinances and regulations made pursuant to paragraph (b) of this subdi-
    44  vision in effect at the time of application and shall notify the  bureau
    45  if  an annual license has been issued to the applicant. A license issued
    46  by a municipality in accordance with this paragraph shall have the  same
    47  force  and  effect  as a license issued by the bureau in accordance with
    48  subdivision two of this section and the licensee shall not be subject to
    49  regulation or enforcement by the bureau during the term of that license.
    50  A subsequent or renewed license may be issued under this paragraph on an
    51  annual basis if the bureau  has  not  adopted  regulations  required  by
    52  section  one  hundred seventy-three of this article at least ninety days
    53  prior to the date upon which such subsequent or renewed license would be
    54  effective or if the  department  has  adopted  regulations  pursuant  to
    55  section  one hundred seventy-three of this article but has not, at least

        A. 3506--A                         26
     1  ninety days after the adoption  of  such  regulations,  issued  licenses
     2  pursuant to subdivision two of this section.
     3    4.  The bureau may limit the total amount of marihuana produced in New
     4  York based on the demand for marihuana and marihuana products and in  an
     5  effort to reduce illicit marihuana markets.
     6    §  168.    Licenses  issued.  The following kinds of licenses shall be
     7  issued by the bureau for the manufacture, production, processing,  test-
     8  ing, retail sale and delivery of marihuana:
     9    1. marihuana nursery license;
    10    2. marihuana producer license;
    11    3. marihuana processor license;
    12    4. marihuana distributor license;
    13    5. marihuana retailer license;
    14    6. marihuana microbusiness license;
    15    7. marihuana on-site consumption license;
    16    8. marihuana delivery license;
    17    9. marihuana testing license; and
    18    10. any other type of licenses allowed by the bureau.
    19    §  169.  Licensing  limits.  1. All licenses issued under this article
    20  shall bear a clear  designation  indicating  that  the  license  is  for
    21  commercial  marihuana  activity as distinct from medical marihuana manu-
    22  factured, produced and sold for medical use pursuant to title five-A  of
    23  article thirty-three of the public health law.
    24    2.  An  owner  of a marihuana retail store shall not hold a license in
    25  another license category of section  one  hundred  sixty-eight  of  this
    26  article,  shall not own or have ownership interest in an entity licensed
    27  pursuant to title five-A of article thirty-three of  the  public  health
    28  law, and shall hold not more than three retail licenses.
    29    3.  An  owner of a marihuana microbusiness shall not hold a license in
    30  another license category of section  one  hundred  sixty-eight  of  this
    31  article, shall not own or have ownership interest in a facility licensed
    32  pursuant  to  title  five-A of article thirty-three of the public health
    33  law, and shall hold not more than one microbusiness license.
    34    4. An owner of a marihuana testing facility shall not hold  a  license
    35  in  another  license category of section one hundred sixty-eight of this
    36  article and shall not own or  have  ownership  interest  in  a  facility
    37  licensed  pursuant to title five-A of article thirty-three of the public
    38  health law.
    39    5. Only a marihuana  retail  licensee  or  a  marihuana  microbusiness
    40  licensee may be issued an on-site consumption license.
    41    6. Only a marihuana retail licensee, marihuana microbusiness licensee,
    42  or  marihuana  delivery  licensee  may be permitted to deliver marihuana
    43  directly to customers.
    44    7. Only a marihuana producer licensee, marihuana  processor  licensee,
    45  or marihuana distributor licensee may distribute marihuana and marihuana
    46  products to other licensed marihuana businesses.
    47    8. No marihuana delivery owner may hold more than one marihuana deliv-
    48  ery license.
    49    9.  No  marihuana  distributor  owner may hold more than one marihuana
    50  distributor license.
    51    10. The bureau shall issue a series of producer licenses distinguished
    52  by canopy size and type of lighting used, natural/outdoor light,  indoor
    53  light, or mixed-light.
    54    11.  No  marihuana  producer  owner  may  hold more than one marihuana
    55  producer and one marihuana processor license.

        A. 3506--A                         27
     1    12. No marihuana processor owner may hold more  than  three  marihuana
     2  processor licenses.
     3    §  170.  Actions  taken  pursuant  to  a  valid license are lawful. No
     4  contracts related to the operation of licenses under this chapter  shall
     5  be deemed unenforceable on the basis that the actions permitted pursuant
     6  to  the license are prohibited by federal law. The following actions are
     7  not unlawful as provided under this chapter, shall  not  be  an  offense
     8  under  New  York  law  or  the laws of any locality within New York, and
     9  shall not result in any civil fine, seizure,  or  forfeiture  of  assets
    10  against any person acting in accordance with this chapter:
    11    1.  Actions of a licensee, its employees, and its agents, as permitted
    12  by this chapter and consistent with rules and regulations of the bureau,
    13  pursuant to a valid license issued by the bureau.
    14    2. Actions of those who allow property to be used by a  licensee,  its
    15  employees,  and  its agents, as permitted by this chapter and consistent
    16  with rules and regulations of the bureau, pursuant to  a  valid  license
    17  issued by the bureau.
    18    3.  Actions  of any person or entity, their employees, or their agents
    19  providing a service to a licensee or potential licensee, as permitted by
    20  this chapter and consistent with rules and regulations  of  the  bureau,
    21  relating to the formation of a business.
    22    4. The purchase, possession, or consumption of marihuana, as permitted
    23  by this chapter and consistent with rules and regulations of the bureau,
    24  obtained from a validly licensed retailer.
    25    § 171. General prohibitions and restrictions. 1. No marihuana products
    26  may be imported or exported into New York state by a licensee from or to
    27  a jurisdiction in which possession, transport, distribution of marihuana
    28  or  other  marihuana  related  conduct remains illegal under the laws of
    29  that jurisdiction.
    30    2. (a) No person holding any license pursuant to this article to  grow
    31  or  process marihuana may employ any person who has been convicted of an
    32  offense related to the functions, or duties of the business  or  profes-
    33  sion  for which the application is made within three years of the appli-
    34  cation date, except that if the bureau  determines  that  the  owner  or
    35  licensee  is otherwise suitable to be issued a license, and granting the
    36  license would not compromise public safety, the bureau shall  conduct  a
    37  thorough  review  of the nature of the crime, conviction, circumstances,
    38  and evidence of rehabilitation of the  owner,  and  shall  evaluate  the
    39  suitability of the owner or licensee to be issued a license based on the
    40  evidence  found  through  the  review. In determining which offenses are
    41  substantially related to the qualifications, functions, or duties of the
    42  business or profession for which the application  is  made,  the  bureau
    43  shall include, but not be limited to, the following:
    44    (i)  A  felony  conviction  involving fraud and other unlawful conduct
    45  related to owning and operating a business.
    46    (ii) A felony conviction for hiring, employing, or using  a  minor  in
    47  transporting,  carrying,  selling,  giving  away, preparing for sale, or
    48  peddling, any controlled substance to a minor; or selling,  offering  to
    49  sell,  furnishing,  offering  to  furnish,  administering, or giving any
    50  controlled substance to a minor.
    51    (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
    52  sion,  if the bureau issues its written approval for the employment by a
    53  licensee, in a specified capacity, of a person previously convicted of a
    54  felony or any of the offenses above enumerated in paragraph (a) of  this
    55  subdivision,  such  person,  may,  unless  he  or  she  is  subsequently
    56  convicted of a felony or any of such offenses, thereafter be employed in

        A. 3506--A                         28
     1  the same capacity by any other  licensee  without  the  further  written
     2  approval  of the bureau unless the prior approval given by the bureau is
     3  terminated.
     4    3.  No  license of any kind may be issued to a person under the age of
     5  twenty-one years, nor shall any licensee employ anyone under the age  of
     6  twenty-one years.
     7    §  172.  Certain  officials not to be interested in the manufacture or
     8  sale of marihuana. 1.  Except  as  otherwise  provided  in  section  one
     9  hundred  twenty-eight-a  of  this  chapter, it shall be unlawful for any
    10  police commissioner, police  inspector,  captain,  sergeant,  roundsman,
    11  patrolman  or other police official or subordinate of any police depart-
    12  ment in the state, to be either directly or indirectly interested in the
    13  manufacture or sale of marihuana or to offer for sale, or  recommend  to
    14  any  licensee  any  marihuana.  A  person  may not be denied any license
    15  granted under the provisions of sections fifty-four, fifty-five,  fifty-
    16  nine,  sixty-three,  sixty-four,  seventy-nine,  eighty-one,  or article
    17  seven of this chapter solely on the grounds of being  the  spouse  of  a
    18  public servant described in this subdivision. The solicitation or recom-
    19  mendation  made to any licensee, to purchase any marihuana by any police
    20  official or subordinate as  described  in  this  subdivision,  shall  be
    21  presumptive  evidence of the interest of such official or subordinate in
    22  the manufacture or sale of marihuana.
    23    2. No elective village officer shall be subject to the limitations set
    24  forth in subdivision one of this section unless  such  elective  village
    25  officer  shall  be assigned duties directly relating to the operation or
    26  management of the police department.
    27    § 173. Provisions governing initial rulemaking. 1. Within two  hundred
    28  forty  days  after  the effective date of this article, the bureau shall
    29  perform such acts, prescribe such forms and make such rules, regulations
    30  and orders as it may deem necessary or proper to  fully  effectuate  the
    31  provisions of this article.
    32    2. The bureau shall promulgate necessary rules and regulations govern-
    33  ing the licensing of marihuana producers, marihuana processors, marihua-
    34  na retailers and marihuana retailers for consumption on-site, including:
    35    (a) prescribing forms and establishing application, reinstatement, and
    36  renewal fees;
    37    (b) the qualifications for licensure;
    38    (c)  the  books and records to be created and maintained by licensees,
    39  the reports to be made thereon to the  bureau,  and  inspection  of  the
    40  books and records;
    41    (d)  methods  of producing, processing, and packaging marihuana, mari-
    42  huana-infused products, and concentrated cannabis; conditions of sanita-
    43  tion, and standards of ingredients, quality, and identity  of  marihuana
    44  products produced, processed, packaged, or sold by licensees; and
    45    (e)  security  requirements for marihuana retailers and premises where
    46  marihuana products are produced or processed, and safety  protocols  for
    47  licensees and their employees.
    48    3.  The  bureau shall promulgate rules and regulations that are calcu-
    49  lated to:
    50    (a) prevent the distribution of marihuana to persons under  twenty-one
    51  years of age;
    52    (b) prevent the revenue from the sale of marihuana from going to crim-
    53  inal enterprises, gangs, and cartels;
    54    (c)  prevent  the  diversion  of  marihuana  from  this state to other
    55  states;

        A. 3506--A                         29
     1    (d) prevent marihuana activity that is  legal  under  state  law  from
     2  being  used  as  a cover or pretext for the trafficking of other illegal
     3  drugs or other illegal activity;
     4    (e)  prevent  violence  and the use of firearms in the cultivation and
     5  distribution of marihuana;
     6    (f) prevent drugged driving and  the  exacerbation  of  other  adverse
     7  public health consequences associated with the use of marihuana;
     8    (g) prevent the growing of marihuana on public lands and the attendant
     9  public safety and environmental dangers posed by marihuana production on
    10  public lands; and
    11    (h) prevent the possession and use of marihuana on federal property.
    12    4.  Rules and regulations promulgated by the bureau pursuant to subdi-
    13  vision three of this section shall not prohibit the operation  of  mari-
    14  huana  establishments  either expressly or through regulations that make
    15  their operation unreasonably impracticable.
    16    5. The bureau, in consultation with the department of agriculture  and
    17  markets  and the department of environmental conservation, shall promul-
    18  gate necessary rules and regulations governing the  safe  production  of
    19  marihuana, including restrictions on the use of pesticides, insecticides
    20  and herbicides.
    21    §  174. Provisions governing marihuana producers. 1. No producer shall
    22  sell, or agree to sell or deliver in the state any  marihuana  products,
    23  as the case may be, except in sealed containers containing quantities in
    24  accordance  with size standards pursuant to rules adopted by the bureau.
    25  Such containers shall  have  affixed  thereto  such  labels  as  may  be
    26  required  by  the  rules  of the bureau, together with all necessary New
    27  York state excise tax stamps, as required by law.
    28    2. No producer shall deliver any marihuana products, except  in  vehi-
    29  cles  owned and operated by such producer, or hired and operated by such
    30  producer from a trucking or transportation company registered  with  the
    31  bureau,  and  shall only make deliveries at the licensed premises of the
    32  purchaser.
    33    3. Each producer shall keep and maintain upon the  licensed  premises,
    34  adequate  books  and  records of all transactions involving the producer
    35  and sale of his or its products, which  shall  include  all  information
    36  required by rules promulgated by the bureau. Each sale shall be recorded
    37  separately  on  a numbered invoice, which shall have printed thereon the
    38  number, the name of the licensee, the address of the licensed  premises,
    39  and  the  current  license  number.  Such  producer shall deliver to the
    40  purchaser a true duplicate invoice stating the name and address  of  the
    41  purchaser,  the  quantity  purchased,  description  and the price of the
    42  product, and a true, accurate and complete statement of  the  terms  and
    43  conditions  on which such sale is made. Such books, records and invoices
    44  shall be kept for a period of two  years  and  shall  be  available  for
    45  inspection by any authorized representative of the bureau.
    46    4. No producer shall furnish or cause to be furnished to any licensee,
    47  any  exterior or interior sign, printed, painted, electric or otherwise,
    48  except as authorized by the bureau. The bureau may make such rules as it
    49  deems necessary to carry out the purpose and intent of this subdivision.
    50    § 175. Provisions governing  processors.  1.  No  processor  shall  be
    51  engaged  in  any  other  business on the premises to be licensed; except
    52  that nothing contained in this chapter shall prevent a marihuana produc-
    53  er and a marihuana processor from operating on  the  same  premises  and
    54  from a person holding both licenses.
    55    2.  No  processor shall sell, or agree to sell or deliver in the state
    56  any marihuana products, except in a sealed package containing quantities

        A. 3506--A                         30
     1  in accordance with size standards  pursuant  to  rules  adopted  by  the
     2  bureau. Such containers shall have affixed thereto such labels as may be
     3  required  by  the  rules  of the bureau, together with all necessary New
     4  York state excise tax stamps, as required by law.
     5    3.  No  processor shall deliver any products, except in vehicles owned
     6  and operated by such processor, or hired and operated by such  processor
     7  from  a  trucking  or transportation company registered with the bureau,
     8  and shall only make deliveries at the licensed premises of the  purchas-
     9  er.
    10    4.  Each processor shall keep and maintain upon the licensed premises,
    11  adequate books and records of all transactions  involving  the  business
    12  transacted  by  such processor, which shall show the amount of marihuana
    13  products, purchased by such processor together with the  names,  license
    14  numbers  and  places  of  business of the persons from whom the same was
    15  purchased and the amount involved in such  purchases,  as  well  as  the
    16  amount  of  marihuana  products sold by such processor together with the
    17  names, addresses, and license numbers  of  such  purchasers.  Each  sale
    18  shall  be  recorded  separately  on a numbered invoice, which shall have
    19  printed thereon the number, the name of the licensee, the address of the
    20  licensed premises, and the current license number. Such processor  shall
    21  deliver  to  the purchaser a true duplicate invoice stating the name and
    22  address of the purchaser, quantity purchased, description and the  price
    23  of the product, and a true, accurate and complete statement of the terms
    24  and  conditions  on  which  such  sale  is made. Such books, records and
    25  invoices shall be kept for a period of two years and shall be  available
    26  for inspection by any authorized representative of the bureau.
    27    §  176. Provisions governing marihuana retailers. 1. No retail license
    28  shall be granted for any premises, unless the  applicant  shall  be  the
    29  owner thereof, or shall be in possession of said premises under a lease,
    30  management  agreement  or  other  agreement giving the applicant control
    31  over the premises, in writing, for a term  not  less  than  the  license
    32  period.
    33    2.  No  premises  shall be licensed to sell marihuana products, unless
    34  said premises shall be located in a store,  the  principal  entrance  to
    35  which  shall  be from the street level and located on a public thorough-
    36  fare in premises which may be occupied, operated or conducted for  busi-
    37  ness,  trade  or  industry  or  on an arcade or sub-surface thoroughfare
    38  leading to a railroad terminal. There may be not  more  than  one  addi-
    39  tional  entrance which shall be from the street level and located on and
    40  giving access to and from a public or private  parking  lot  or  parking
    41  area having space for not less than five automobiles.
    42    3. No marihuana retail license shall be granted for any premises which
    43  a  license  would  not  be  allowed to sell at retail for consumption of
    44  alcohol off the premises based on its proximity to a  building  occupied
    45  exclusively  as  a  school,  church, synagogue or other place of worship
    46  pursuant to the provisions of section one hundred five of this chapter.
    47    4. No marihuana retail licensee shall offer  for  sale  any  marihuana
    48  products  in any other container, except in the original sealed package,
    49  as received from the producer, distributor or processor. Such containers
    50  shall have affixed thereto such labels as may be required by  the  rules
    51  of  the  bureau,  together with all New York state excise tax stamps, as
    52  required by law. Such containers shall not be opened  nor  its  contents
    53  consumed on the premises where sold.
    54    5.  No  marihuana  retail  licensee  shall  sell or transfer marihuana
    55  products to any person under the age of twenty-one years.

        A. 3506--A                         31
     1    6. No marihuana retail licensee shall sell alcoholic beverages on  the
     2  same premises where marihuana products are sold.
     3    7.  No  sign of any kind printed, painted or electric, advertising any
     4  brand shall be permitted on the exterior or interior of  such  premises,
     5  except by permission of the bureau.
     6    8.  No  retail licensee shall deliver any marihuana products except in
     7  vehicles owned and operated by such licensee, or hired and  operated  by
     8  such  licensee from a trucking or transportation company registered with
     9  the bureau, and shall only make such deliveries at the premises  of  the
    10  purchaser.
    11    9.  No  retail  licensee  shall  keep  or  permit  to be kept upon the
    12  licensed premises, any marihuana products in any unsealed container.
    13    10. No retail licensee shall sell or deliver any marihuana products to
    14  any person with knowledge of, or with reasonable cause to believe,  that
    15  the  person to whom such marihuana products are being sold, has acquired
    16  the same for the purpose of peddling them from place  to  place,  or  of
    17  selling or giving them away in violation of the provisions of this chap-
    18  ter or in violation of the rules and regulations of the bureau.
    19    11. No premises licensed as a marihuana retailer shall be permitted to
    20  remain open during a time when a premises licensed to sell liquor and/or
    21  wine for off-premises consumption is not permitted to remain open pursu-
    22  ant to the provisions of section one hundred five of this chapter.
    23    12.  Each  marihuana  retail licensee shall keep and maintain upon the
    24  licensed premises,  adequate  books  and  records  of  all  transactions
    25  involving the business transacted by such licensee, which shall show the
    26  amount  of  marihuana products, purchased by such licensee together with
    27  the names, license numbers and places of business of  the  persons  from
    28  whom the same were purchased, and the amount involved in such purchases,
    29  as  well as the amount of marihuana products, sold by such licensee, and
    30  the amount involved in each sale. Such books and records shall be avail-
    31  able for inspection by any authorized representative of the bureau.
    32    13. All premises licensed under  this  section  shall  be  subject  to
    33  inspection by any peace officer described in subdivision four of section
    34  2.10 of the criminal procedure law acting pursuant to his or her special
    35  duties,  or  police officer or any duly authorized representative of the
    36  bureau, during the hours when the said premises are open for the  trans-
    37  action of business.
    38    § 177. Provisions governing marihuana on-site consumption licenses. 1.
    39  No  marihuana  retailer  or  microbusiness  shall be granted a marihuana
    40  on-site consumption license for a premises located in whole or  in  part
    41  inside  the  boundaries  of  any city, village or town, unless the local
    42  legislative body of such city, village or town, by resolution, expressly
    43  authorizes the licensing of such facilities in  such  city,  village  or
    44  town.  The  local  legislative  body  may direct an appropriate officer,
    45  board or body of such city, village  or  town  as  the  local  licensing
    46  authority  to  authorize  individual marihuana facility license applica-
    47  tions. In cities of one million or  more  residents,  should  the  local
    48  legislative  body  authorize such license, no marihuana retailer license
    49  for consumption on-site shall be  granted  unless  the  community  board
    50  established  pursuant  to  section  twenty-eight hundred of the New York
    51  city charter with jurisdiction over the area in which the premises  will
    52  be located shall also authorize such license.
    53    2. No marihuana retailer or microbusiness shall be granted a marihuana
    54  on-site consumption license for any premises, unless the applicant shall
    55  be the owner thereof, or shall be in possession of said premises under a
    56  lease,  in  writing, for a term not less than the license period except,

        A. 3506--A                         32
     1  however, that  such  license  may  thereafter  be  renewed  without  the
     2  requirement  of  a  lease as herein provided. This subdivision shall not
     3  apply to premises leased from  government  agencies,  as  defined  under
     4  subdivision  twelve-c of section three of this chapter; provided, howev-
     5  er,  that  the  appropriate  administrator  of  such  government  agency
     6  provides some form of written documentation regarding the terms of occu-
     7  pancy  under  which  the  applicant  is  leasing  said premises from the
     8  government agency for presentation to the bureau  at  the  time  of  the
     9  license application. Such documentation shall include the terms of occu-
    10  pancy  between  the  applicant and the government agency, including, but
    11  not limited to, any short-term leasing agreements or  written  occupancy
    12  agreements.
    13    3. No marihuana retailer or microbusiness shall be granted a marihuana
    14  on-site  consumption  license for any premises where a license would not
    15  be allowed to sell at retail for consumption of alcohol on the  premises
    16  based  on  its proximity to a building occupied exclusively as a school,
    17  church, synagogue or other place of worship pursuant to  the  provisions
    18  of section one hundred five of this chapter.
    19    4.  The bureau may consider any or all of the following in determining
    20  whether public convenience and advantage and the public interest will be
    21  promoted by the granting of licenses and permits for a marihuana on-site
    22  consumption license at a particular unlicensed location:
    23    (a) The number, classes and character of licenses in proximity to  the
    24  location and in the particular municipality or subdivision thereof.
    25    (b)  Evidence  that  all  necessary  licenses  and  permits  have been
    26  obtained from the state and all other governing bodies.
    27    (c) Effect of the grant of the license on vehicular traffic and  park-
    28  ing in proximity to the location.
    29    (d) The existing noise level at the location and any increase in noise
    30  level that would be generated by the proposed premises.
    31    (e) The history of marihuana violations and reported criminal activity
    32  at the proposed premises.
    33    (f) Any other factors specified by law or regulation that are relevant
    34  to determine the public convenience and advantage and public interest of
    35  the community.
    36    5.  If  the  bureau  shall  disapprove an application for a license or
    37  permit, it shall state and file in its offices the reasons therefor  and
    38  shall  notify  the applicant thereof. Such applicant may thereupon apply
    39  to the bureau for a review of such action in a manner to  be  prescribed
    40  by the rules of the bureau. A hearing upon notice to the applicant shall
    41  thereupon  be  held by the bureau or by one of its members at its office
    42  most conveniently situated to the office of its duly  authorized  repre-
    43  sentative in a manner to be prescribed in its rules; and on such hearing
    44  proof  may  be taken by oral testimony or by affidavit relative thereto.
    45  After such hearing, if the bureau confirms such  disapproval,  it  shall
    46  endorse such application accordingly and shall send notice to the appli-
    47  cant  of  its  action  in  such form as the bureau may prescribe. If the
    48  bureau does not confirm the disapproval action it may grant such  appli-
    49  cation and issue such license.
    50    6. No marihuana on-site consumption licensee, except persons or corpo-
    51  rations operating a hotel, as defined in subdivision fourteen of section
    52  three  of  this  chapter,  for  exclusive  use in the furnishing of room
    53  service in the manner prescribed by rule or regulation  of  the  bureau,
    54  shall  keep  upon  the  licensed premises any marihuana products, except
    55  those purchased from a licensed producer, and in containers approved  by
    56  the  bureau.  Such  containers shall have affixed thereto such labels as

        A. 3506--A                         33
     1  may be required by the rules of the bureau, together with all  necessary
     2  excise  stamps  as  required  by  law.  No marihuana retail licensee for
     3  on-site consumption shall reuse, refill, tamper with, adulterate, dilute
     4  or  fortify  the  contents  of  any  container  of marihuana products as
     5  received from the manufacturer or wholesaler.
     6    7. No marihuana on-site consumption licensee shall  sell,  deliver  or
     7  give  away, or cause or permit or procure to be sold, delivered or given
     8  away any marihuana for consumption on  the  premises  where  sold  in  a
     9  container or package containing more than one gram of marihuana.
    10    8.  No  marihuana  on-site consumption licensee shall suffer or permit
    11  any gambling on the licensed premises, or suffer or permit such premises
    12  to become disorderly. The use of the  licensed  premises,  or  any  part
    13  thereof,  for  the sale of lottery tickets, playing of bingo or games of
    14  chance, or as a simulcast facility or simulcast theater pursuant to  the
    15  racing,  pari-mutuel wagering and breeding law, when duly authorized and
    16  lawfully conducted thereon, shall not  constitute  gambling  within  the
    17  meaning of this subdivision.
    18    (a)  No  marihuana on-site consumption licensee shall suffer or permit
    19  any person to appear on licensed premises in such manner or attire as to
    20  expose to view any portion of the pubic area, anus, vulva  or  genitals,
    21  or  any  simulation  thereof,  nor  shall suffer or permit any female to
    22  appear on licensed premises in such manner or attire  as  to  expose  to
    23  view any portion of the breast below the top of the areola, or any simu-
    24  lation thereof.
    25    (b)  No marihuana on-site consumption licensee shall suffer, permit or
    26  promote an event on its premises wherein the contestants deliver, or are
    27  not forbidden by the applicable rules  thereof  from  delivering  kicks,
    28  punches  or  blows  of any kind to the body of an opponent or opponents,
    29  whether or not the event consists of a professional match or exhibition,
    30  and whether or not the event or any such  act,  or  both,  is  done  for
    31  compensation;  provided,  however,  that  this  prohibition shall not be
    32  applied to any  professional  match  or  exhibition  which  consists  of
    33  boxing,  sparring, wrestling, or martial arts and which is excepted from
    34  the definition of the term "combative sport"  contained  in  subdivision
    35  three of section one thousand of the general business law.
    36    (c)  In  addition to any other penalty provided by law, a violation of
    37  this subdivision shall constitute an adequate ground for  instituting  a
    38  proceeding  to  suspend, cancel or revoke the license of the violator in
    39  accordance with the  applicable  procedures  specified  in  section  one
    40  hundred nineteen of this chapter.
    41    9.  Except  where  a  permit  to do so is obtained pursuant to section
    42  405.10 of the penal law, no marihuana on-site consumption licensee shall
    43  suffer, permit, or promote an event on its premises wherein  any  person
    44  shall  use,  explode,  or cause to explode, any fireworks or other pyro-
    45  technics in a building as defined in paragraph e of subdivision  one  of
    46  section  405.10  of  the  penal  law, that is covered by such license or
    47  possess such fireworks or pyrotechnics for such purpose. In addition  to
    48  any other penalty provided by law, a violation of this subdivision shall
    49  constitute  an  adequate ground for instituting a proceeding to suspend,
    50  cancel, or revoke the license of the violator  in  accordance  with  the
    51  applicable  procedures specified in section one hundred nineteen of this
    52  chapter; provided however, if more than one licensee is participating in
    53  a single event, upon approval by the  bureau,  only  one  licensee  must
    54  obtain such permit.
    55    10.  No restaurant and no premises licensed to sell marihuana products
    56  for on-site consumption  under  paragraph  (a)  of  subdivision  six  of

        A. 3506--A                         34
     1  section  sixty-four-a  of  this  chapter  shall be permitted to have any
     2  opening or means of entrance or passageway for persons or things between
     3  the licensed premises and any  other  room  or  place  in  the  building
     4  containing the licensed premises, or any adjoining or abutting premises,
     5  unless  ingress  and  egress  is restricted by an employee, agent of the
     6  licensee, or other approved method of controlling access to the  facili-
     7  ty,  or unless such premises are a bona fide restaurant with such access
     8  for patrons and guests from any part of such building  or  adjoining  or
     9  abutting  premises as shall serve public convenience in a reasonable and
    10  suitable manner; or unless such licensed  premises  are  in  a  building
    11  owned or operated by any county, town, city, village or public authority
    12  or agency, in a park or other similar place of public accommodation. All
    13  glass in any window or door on said licensed premises shall be clear and
    14  shall not be opaque, colored, stained or frosted.
    15    11.  A vessel licensed to sell marihuana products for on-site consump-
    16  tion shall not be permitted to sell any marihuana products,  while  said
    17  vessel  is  moored  to  a  pier  or dock, except that vessels sailing on
    18  established schedules shall be permitted to sell marihuana products  for
    19  a period of three hours prior to the regular advertised sailing time.
    20    12.  Each  marihuana on-site consumption licensee shall keep and main-
    21  tain upon the licensed premises, adequate records  of  all  transactions
    22  involving  the business transacted by such licensee which shall show the
    23  amount of marihuana  products,  in  an  applicable  metric  measurement,
    24  purchased  by such licensee together with the names, license numbers and
    25  places of business of the persons from whom the same were purchased, the
    26  amount involved in such purchases, as well as  the  sales  of  marihuana
    27  products  made  by  such  licensee.  The  bureau is hereby authorized to
    28  promulgate rules and regulations permitting an on-site licensee  operat-
    29  ing  two or more premises separately licensed to sell marihuana products
    30  for on-site consumption to inaugurate or retain in this state methods or
    31  practices  of  centralized  accounting,  bookkeeping,  control  records,
    32  reporting,  billing, invoicing or payment respecting purchases, sales or
    33  deliveries of marihuana products, or methods and practices  of  central-
    34  ized  receipt or storage of marihuana products within this state without
    35  segregation or earmarking for any  such  separately  licensed  premises,
    36  wherever  such  methods  and  practices assure the availability, at such
    37  licensee's central or main office in  this  state,  of  data  reasonably
    38  needed for the enforcement of this chapter. Such records shall be avail-
    39  able for inspection by any authorized representative of the bureau.
    40    13. All retail licensed premises shall be subject to inspection by any
    41  peace  officer,  acting pursuant to his or her special duties, or police
    42  officer and by the duly authorized representatives of the bureau, during
    43  the hours when the said premises are open for the transaction  of  busi-
    44  ness.
    45    14.  A  marihuana on-site consumption licensee shall not provide mari-
    46  huana products to any person under the  age  of  twenty-one  or  to  any
    47  person who is visibly impaired.
    48    §  178.  Advertising  and  forms  of  the issuance of licenses. 1. The
    49  bureau is hereby authorized to promulgate rules and regulations  govern-
    50  ing  the advertising of marihuana producers, marihuana processors, mari-
    51  huana retailers, and any marihuana related products or services.
    52    2. The bureau shall promulgate explicit rules prohibiting  advertising
    53  that:
    54    (a) is false, deceptive, or misleading;
    55    (b) promotes overconsumption;
    56    (c) depicts consumption by children or other minors;

        A. 3506--A                         35
     1    (d) is designed in any way to appeal to children or other minors;
     2    (e)  is  within two hundred feet of the perimeter of a school grounds,
     3  playground, child care center, public park, or library;
     4    (f) is in public transit vehicles and stations;
     5    (g) is in the form of an unsolicited internet pop-up; or
     6    (h) is on publicly owned or operated property.
     7    3. The bureau shall promulgate explicit rules prohibiting all  market-
     8  ing  strategies and implementation including, but not limited to, brand-
     9  ing, packaging, labeling, location of marihuana retailers and  marihuana
    10  microbusinesses, and advertisements that are designed to:
    11    (a) appeal to persons less then twenty-one years of age; or
    12    (b) disseminate false or misleading information to customers.
    13    4. The bureau shall promulgate explicit rules requiring that:
    14    (a)  all  advertisements and marketing accurately and legibly identify
    15  the licensee responsible for its content; and
    16    (b) any broadcast, cable,  radio,  print  and  digital  communications
    17  advertisements  only be placed where the audience is reasonably expected
    18  to be twenty-one years of age  or  older,  as  determined  by  reliable,
    19  up-to-date audience composition data.
    20    §  179.  Packaging  of  marihuana  products.  1.  The bureau is hereby
    21  authorized to promulgate rules and regulations governing  the  packaging
    22  of marihuana products, sold or possessed for sale in New York state.
    23    2. Such regulations shall include requiring that:
    24    (a)  packaging  meets  requirements  similar  to  the  federal "poison
    25  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    26    (b) all marihuana-infused products shall have a separate packaging for
    27  each serving;
    28    (c) prior to delivery or sale at a retailer, marihuana  and  marihuana
    29  products  shall  be  labeled and placed in a resealable, child-resistant
    30  package; and
    31    (d) packages and labels shall not be made to be  attractive  to  chil-
    32  dren.
    33    § 180. Labeling of marihuana products. 1. The bureau is hereby author-
    34  ized  to  promulgate  rules  and  regulations governing the labeling and
    35  offering of marihuana products for sale within this state.
    36    2. Such rules and regulations shall be  calculated  to:  (a)  prohibit
    37  deception of the consumer; (b) afford adequate information as to quality
    38  and identity of the product; and (c) achieve national uniformity in this
    39  business.
    40    3. The bureau may seek the assistance of the department of health when
    41  necessary before promulgating rules and regulations under this section.
    42    4.  Such  regulations shall include requiring labels warning consumers
    43  of any potential impact on human health resulting from  the  consumption
    44  of marihuana products that shall be affixed to those products when sold,
    45  if  such  labels  are  deemed warranted by the bureau after consultation
    46  with the department of health.
    47    5. All marihuana  and  marihuana  product  labels  and  inserts  shall
    48  include  the  following information prominently displayed in a clear and
    49  legible fashion in accordance  with  the  requirements,  including  font
    50  size,  prescribed  by  the  bureau or the department of health: not less
    51  than 8 point font:
    52    (a) manufacture date and source;
    53    (b) for packages continuing only dried flower, the net weight of mari-
    54  huana in the package;

        A. 3506--A                         36
     1    (c) identification of the source and date of cultivation, the type  of
     2  marihuana or marihuana product and the date of manufacturing and packag-
     3  ing;
     4    (d)  list  of pharmacologically active ingredients, including, but not
     5  limited to, tetrahydricannabinal (THC),  cannibidiol  (CBP),  and  other
     6  cannabinoid  content, the THC and other cannabinoid amount in milligrams
     7  per serving, servings per package, and the  THC  and  other  cannibinoid
     8  amount in milligrams for the package total, and the potency of the mari-
     9  huana  or marihuana product by reference to the amount of tetrahydrocan-
    10  nibinol and canibidiol in each serving;
    11    (e) for marihuana products, a list of all ingredients  and  disclosure
    12  of nutritional information in the same manner as the federal nutritional
    13  labeling requirements in 21 C.F.R. section 101.9;
    14    (f)  a  list  of  any solvents, nonorganic pesticides, herbicides, and
    15  fertilizers that were used in the cultivation, production, and  manufac-
    16  ture of such marihuana or marihuana product;
    17    (g) a warning if nuts or other known allergens are used;
    18    (h)  information  associated  with the unique identifier issued by the
    19  bureau of marihuana policy; and
    20    (i) any other requirements set by the bureau of marihuana policy.
    21    6. Only generic food names may be used to describe the ingredients  in
    22  edible marihuana products.
    23    7.  Such  rules and regulations shall establish methods and procedures
    24  for determining serving sizes  for  marihuana-infused  products,  active
    25  cannabis  concentration  per  serving  size,  and number of servings per
    26  container. Such regulations shall also require a nutritional fact  panel
    27  that incorporates data regarding serving sizes and potency thereof.
    28    8. Such rules and regulations shall require information containing the
    29  license  number of the marihuana producer and processor facilities where
    30  the marihuana was grown and processed.
    31    9. The packaging, sale, or possession by any licensee of any marihuana
    32  product not labeled or offered in conformity with rules and  regulations
    33  promulgated  in  accordance  with  this section shall be grounds for the
    34  imposition of a fine, and/or the suspension, revocation or  cancellation
    35  of the license.
    36    §  181. Seed to sale tracking. 1. No later than fifteen months follow-
    37  ing the effective date of the Marihuana Regulation and Taxation Act, the
    38  bureau shall establish a seed to sale tracking program for reporting the
    39  movement of marihuana and marihuana products throughout the distribution
    40  chain that utilizes a unique identifier  and  secure  packaging  and  is
    41  capable of providing information that captures, at a minimum, all of the
    42  following:
    43    (a) the licensee receiving the product;
    44    (b) the transaction date; and
    45    (c)  the  producer  from  which  the product originates, including the
    46  associated unique identifier.
    47    2. (a) The bureau shall create an electronic database  containing  the
    48  electronic  shipping  manifests  to facilitate the administration of the
    49  seed to sale program tracking, which shall include, but not  be  limited
    50  to, the following information:
    51    (b) the quantity, or weight, and variety of products shipped;
    52    (c) the estimated times of departure and arrival;
    53    (d) the quantity, or weight, and variety of products received;
    54    (e) the actual time of departure and arrival;
    55    (f) a categorization of the product; and

        A. 3506--A                         37
     1    (g)  the license number and unique identifier issued by the bureau for
     2  all licensees involved in  the  shipping  process,  including,  but  not
     3  limited to, producer, processor, retailer, and delivery licensees.
     4    (3)  The  database  shall  be  designed to flag irregularities for the
     5  bureau to investigate.
     6    § 182. Renewals of licenses and permits. 1. Each license  and  permit,
     7  issued pursuant to this article may be renewed upon application therefor
     8  by  the licensee or permittee and the payment of the annual fee for such
     9  license or permit as prescribed by this article. In the case of applica-
    10  tions for renewals, the bureau may dispense  with  the  requirements  of
    11  such  statements  as  it deems unnecessary in view of those contained in
    12  the application made for the original license  or  permit,  but  in  any
    13  event  the  submission  of photographs of the licensed premises shall be
    14  dispensed with, provided the applicant for such  renewal  shall  file  a
    15  statement  with  such bureau to the effect that there has been no alter-
    16  ation of such premises since the  original  license  was  issued.    The
    17  bureau  may  make  such  rules as may be necessary not inconsistent with
    18  this chapter regarding applications for renewals of licenses and permits
    19  and the time for making the same.   Each applicant must  submit  to  the
    20  bureau  documentation of the racial, ethnic, and gender diversity of the
    21  applicant's employees and owners prior to  a  license  or  permit  being
    22  renewed.
    23    2.  The  bureau  shall provide an application for renewal of a license
    24  issued under this article not less than sixty days prior to the  expira-
    25  tion of the current license.
    26    §  183.  Information  to  be provided by applicants.  1. The following
    27  shall be the information required on an application  for  a  license  or
    28  permit:
    29    (a) A statement of identity as follows:
    30    (i) If the applicant is an individual, his or her name, date and place
    31  of  birth,  citizenship,  permanent  home  address, telephone number and
    32  social security number, as well as any other names by which  he  or  she
    33  has conducted a business at any time.
    34    (ii)  If  the  applicant  is  a corporation, the corporate name of the
    35  applicant, its place of incorporation, its main business address (and if
    36  such main business address is not within the state, the address  of  its
    37  main  place  of  business within the state), other names by which it has
    38  been known or has conducted business at any time, its telephone  number,
    39  its  federal  employer identification number, and the names, ages, citi-
    40  zenship, and permanent home addresses of its directors, officers and its
    41  shareholders (except that if there be more than  ten  shareholders  then
    42  those  shareholders  holding  ten  percent  or  more of any class of its
    43  shares).
    44    (iii) If the applicant is a partnership, its name, its  main  business
    45  address  (and if such main business address is not within the state, the
    46  address of its main place of business within the state), other names  by
    47  which it has been known or has conducted business at any time, its tele-
    48  phone number, its federal employer identification number, and the names,
    49  ages, citizenship, and permanent home addresses of each of its partners.
    50    (b)  A  statement identifying the street and number of the premises to
    51  be licensed, if the premises has a street and number, and otherwise such
    52  description as will reasonably indicate  the  locality  thereof;  photo-
    53  graphs, drawings or other items related to the appearance of the interi-
    54  or or exterior of such premises, and a floor plan of the interior, shall
    55  be  required.  The  applicant  shall also state the nature of his or her
    56  interest in the premises; and the name of any other person interested as

        A. 3506--A                         38
     1  a partner, joint venturer, investor or lender with the applicant  either
     2  in the premises or in the business to be licensed.
     3    (c)  A description of any other marihuana license or permit under this
     4  article, within the past ten years, the applicant (including  any  offi-
     5  cers,  directors,  shareholders  or  partners listed in the statement of
     6  identity under paragraph (a) of this subdivision or the  spouse  of  any
     7  such person) or the applicant's spouse held or applied for.
     8    (d)  A  description  of the applicant's plan to ensure diversity among
     9  the applicant's employees, including strategies for ensuring:
    10    (i) gender diversity;
    11    (ii) racial and ethnic diversity that reflects the demographics within
    12  the municipality in which the  applicant's  proposed  business  will  be
    13  located; and
    14    (iii) that persons with prior criminal convictions are not barred from
    15  employment.
    16    (e)  A  statement  that  the location and layout of the premises to be
    17  licensed does not violate any requirement of this  chapter  relating  to
    18  location and layout of licensed premises, with a copy of the certificate
    19  of occupancy for the premises.
    20    (f)  A  statement that the applicant has control of the premises to be
    21  licensed by ownership of a fee interest or via a  leasehold,  management
    22  agreement,  or  other  agreement  giving  the applicant control over the
    23  premises, with a term at least as long as  the  license  for  which  the
    24  application  is being made, or by a binding contract to acquire the same
    25  and a statement of identity under paragraph (a) of this subdivision  for
    26  the  lessor  of  any  leasehold, manager of any management agreement, or
    27  other agreement giving the applicant control over the premises,  with  a
    28  copy  of  the  lease, contract, management agreement, or other agreement
    29  giving the applicant control over the food and beverage at the premises,
    30  or deed evidencing fee ownership of the premises.
    31    (g) A financial statement adequate to show all persons  who,  directly
    32  or indirectly have an economic interest in the establishment or acquisi-
    33  tion  of  the  business  for  which the license or permit application is
    34  being made, to identify the sources of  funds  to  be  applied  in  such
    35  establishment  or  acquisition, and to describe the terms and conditions
    36  governing such establishment with copies of such financial documents  as
    37  the bureau may reasonably require.
    38    (h)  The fingerprints of the applicants. Fingerprints submitted by the
    39  applicants shall be transmitted to  the  division  of  criminal  justice
    40  services and may be submitted to the federal bureau of investigation for
    41  state and national criminal history record checks.
    42    2. All license or permit applications shall be signed by the applicant
    43  (if an individual), by a managing partner (if a limited liability corpo-
    44  ration),  by  an  officer  (if  a corporation), or by all partners (if a
    45  partnership). Each person signing such application shall  verify  it  or
    46  affirm it as true under the penalties of perjury.
    47    3. All license or permit applications shall be accompanied by a check,
    48  draft  or  other forms of payment as the bureau may require or authorize
    49  in the amount required by this article for such license or permit.
    50    4. If there be any change, after the filing of the application or  the
    51  granting  of  a license, in any of the facts required to be set forth in
    52  such application, a supplemental statement giving notice of such change,
    53  cost and source of money involved in the change, duly verified, shall be
    54  filed with the bureau within ten days after such change. Failure  to  do
    55  so  shall,  if  willful  and  deliberate, be cause for revocation of the
    56  license.

        A. 3506--A                         39
     1    5. In giving any notice, or taking any action in reference to a licen-
     2  see of a licensed premises, the bureau may  rely  upon  the  information
     3  furnished   in  such  application  and  in  any  supplemental  statement
     4  connected therewith, and such information may be presumed to be correct,
     5  and shall be binding upon a licensee or licensed premises as if correct.
     6  All  information required to be furnished in such application or supple-
     7  mental statements shall be deemed material in any prosecution for perju-
     8  ry, any proceeding to revoke, cancel or suspend any license, and in  the
     9  bureau's determination to approve or deny the license.
    10    6.  The bureau may in its discretion waive the submission of any cate-
    11  gory of information described  in  this  section  for  any  category  of
    12  license  or permit, provided that it shall not be permitted to waive the
    13  requirement for submission of any such category  of  information  solely
    14  for an individual applicant or applicants.
    15    §  184.  Notification  to municipalities. 1. Not less than thirty days
    16  before filing any of the  following  applications,  an  applicant  shall
    17  notify  the municipality in which the premises is located of such appli-
    18  cant's intent to file such an application for a:
    19    (a) marihuana producer license;
    20    (b) marihuana processor license;
    21    (c) marihuana microbusiness license;
    22    (d) marihuana retailer license;
    23    (e) marihuana retailer license for on-site consumption;
    24    (f) marihuana delivery license;
    25    (g) marihuana testing license; and/or
    26    (h) any other type of licenses allowed by the bureau.
    27    2. Such notification shall be made to the clerk of the  village,  town
    28  or  city,  as  the  case  may  be,  wherein the premises is located. For
    29  purposes of this section:
    30    (a) notification need only be given to the clerk of a village when the
    31  premises is located within the boundaries of the village; and
    32    (b) in the city of New York, the community board established  pursuant
    33  to section twenty-eight hundred of the New York city charter with juris-
    34  diction  over the area in which the premises is located shall be consid-
    35  ered the appropriate public body to which notification shall be given.
    36    3. For purposes of this section, "substantial corporate change"  shall
    37  mean:
    38    (a) for a corporation, a change of eighty percent or more of the offi-
    39  cers  and/or directors, or a transfer of eighty percent or more of stock
    40  of such corporation, or an existing stockholder obtaining eighty percent
    41  or more of the stock of such corporation; and
    42    (b) for a limited liability company, a change  of  eighty  percent  or
    43  more  of  the  managing  members of the company, or a transfer of eighty
    44  percent or more of ownership interest in said company,  or  an  existing
    45  member obtaining a cumulative of eighty percent or more of the ownership
    46  interest in said company.
    47    4. Such notification shall be made in such form as shall be prescribed
    48  by the rules of the bureau.
    49    5.  A  municipality may express an opinion for or against the granting
    50  of such application. Any such opinion shall be deemed part of the record
    51  upon which the bureau makes its  determination  to  grant  or  deny  the
    52  application.
    53    6.  Such notification shall be made by: certified mail, return receipt
    54  requested; overnight delivery service with proof of mailing; or personal
    55  service upon the offices of the clerk or community board.

        A. 3506--A                         40
     1    7. The bureau shall require such notification to be on a  standardized
     2  form  that  can  be obtained on the internet or from the bureau and such
     3  notification to include:
     4    (a)  the trade name or "doing business as" name, if any, of the estab-
     5  lishment;
     6    (b) the full name of the applicant;
     7    (c) the street address  of  the  establishment,  including  the  floor
     8  location or room number, if applicable;
     9    (d)  the  mailing  address of the establishment, if different than the
    10  street address;
    11    (e) the name, address and telephone number of the attorney  or  repre-
    12  sentative of the applicant, if any;
    13    (f) a statement indicating whether the application is for:
    14    (i) a new establishment;
    15    (ii) a transfer of an existing licensed business;
    16    (iii) a renewal of an existing license; or
    17    (iv) an alteration of an existing licensed premises;
    18    (g)  if  the  establishment is a transfer or previously licensed prem-
    19  ises, the name of the old establishment and such establishment's license
    20  serial number;
    21    (h) in the case of a renewal or alteration  application,  the  license
    22  serial number of the applicant; and
    23    (i) the type of license.
    24    § 185. Licenses, publication, general provisions. 1. The various types
    25  of  licenses  issued  pursuant  to  this article shall be distinctive in
    26  color and design so as to be readily distinguishable from each other.
    27    2. No license shall be transferable or assignable except that notwith-
    28  standing any other provision of law, the license of  a  sole  proprietor
    29  converting  to  corporate  form,  where such proprietor becomes the sole
    30  stockholder and only officer and director of such new  corporation,  may
    31  be  transferred  to  the subject corporation if all requirements of this
    32  chapter remain the same with respect to such license as transferred and,
    33  further, the licensee shall transmit to the bureau, within ten  days  of
    34  the  transfer  of  license  allowable  under this subdivision, on a form
    35  prescribed by the bureau, notification of the transfer of such license.
    36    3. No license shall be pledged or deposited as collateral security for
    37  any loan or upon any other condition; and any such  pledge  or  deposit,
    38  and any contract providing therefor, shall be void.
    39    4.  Licenses  issued  under this article shall contain, in addition to
    40  any further information or material to be prescribed by the rules of the
    41  bureau, the following information: (a) name of person to whom license is
    42  issued; (b) kind of license and what kind of  traffic  in  marihuana  is
    43  thereby  permitted;  (c) description by street and number, or otherwise,
    44  of licensed premises; and (d) a statement in substance that such license
    45  shall not be deemed a property or vested  right,  and  that  it  may  be
    46  revoked at any time pursuant to law.
    47    5. There shall be printed and furnished by the bureau to each licensee
    48  a statement of the causes for which licenses may be revoked. Such state-
    49  ment  shall be prepared by the bureau and delivered to the licensee with
    50  his or her license or as soon thereafter  as  may  be  practicable.  Any
    51  amendments  thereto shall also be sent by the bureau to all licensees as
    52  soon as may be practicable after such amendments. Failure to  send  such
    53  statements  or  changes  therein, or failure to receive the same, or any
    54  misstatement or error contained in such statements or amendments  shall,
    55  however,  not be an excuse or justification for any violation of law, or
    56  prevent, or remit, or decrease any penalty or forfeiture therefor.

        A. 3506--A                         41
     1    6. Before commencing or doing any business for the time  for  which  a
     2  license  has  been  issued  said license shall be enclosed in a suitable
     3  wood or metal frame having a clear glass space and a substantial wood or
     4  metal back so that the whole of said license may be  seen  therein,  and
     5  shall  be posted up and at all times displayed in a conspicuous place in
     6  the room where such business is carried on, so that all persons visiting
     7  such place may readily see the same. It shall be unlawful for any person
     8  holding a license to post such license or to permit such license  to  be
     9  posted  upon premises other than the premises licensed, or upon premises
    10  where traffic in marihuana is being carried on by any person other  than
    11  the  licensee, or knowingly to deface, destroy or alter any such license
    12  in any respect. Whenever a license shall be lost  or  destroyed  without
    13  fault  on  the part of the licensee or his or her agents or employees, a
    14  duplicate license in lieu thereof may be issued by  the  bureau  in  its
    15  discretion  and  in  accordance  with such rules and regulations and the
    16  payment of such fees, not exceeding five dollars, as it may prescribe.
    17    § 186. Revocation of licenses for cause.  1.  Any  license  or  permit
    18  issued  pursuant  to  this  article may be revoked, cancelled, suspended
    19  and/or subjected to the imposition of a civil  penalty  for  cause,  and
    20  must be revoked for the following causes:
    21    (a)  Conviction  of  the  licensee,  permittee  or his or her agent or
    22  employee for selling any illegal marihuana or marihuana products on  the
    23  premises licensed.
    24    (b) For transferring, assigning or hypothecating a license or permit.
    25    2.  Notwithstanding  the  issuance  of  a  license or permit by way of
    26  renewal, the bureau may revoke, cancel or suspend such license or permit
    27  and/or may impose a civil penalty against any holder of such license  or
    28  permit,  as  prescribed by this section and section one hundred nineteen
    29  of this chapter, for causes or violations occurring during  the  license
    30  period immediately preceding the issuance of such license or permit, and
    31  may  recover, as provided in section one hundred twelve of this chapter,
    32  the penal sum of the bond on file during said period.
    33    3. As used in this section, the term "for cause"  shall  also  include
    34  the  existence  of a sustained and continuing pattern of noise, disturb-
    35  ance, misconduct, or disorder on or about the licensed premises, related
    36  to the operation of the premises or the conduct of  its  patrons,  which
    37  adversely  affects  the  health, welfare or safety of the inhabitants of
    38  the area in which such licensed premises are located.
    39    4. The existence of a  sustained  and  continuing  pattern  of  noise,
    40  disturbance,  misconduct, or disorder on or about the licensed premises,
    41  related to the operation of the premises or the conduct of its  patrons,
    42  will be presumed upon the sixth incident reported to the bureau by a law
    43  enforcement  agency of noise or disturbance or misconduct or disorder on
    44  or about the licensed premises or related to the operation of the  prem-
    45  ises  or  the  conduct  of  its patrons, in any sixty day period, absent
    46  clear and convincing evidence of either fraudulent intent on the part of
    47  any complainant or a factual error with respect to the  content  of  any
    48  report concerning such complaint relied upon by the bureau.
    49    §  187.  Procedure  for  revocation or cancellation. 1. Any license or
    50  permit issued by the bureau pursuant to this  article  may  be  revoked,
    51  cancelled  or suspended and/or be subjected to the imposition of a mone-
    52  tary penalty in the manner prescribed by this section.
    53    2. The bureau may on its own initiative or on complaint of any  person
    54  institute  proceedings  to  revoke, cancel or suspend any retail license
    55  and may impose a civil penalty against the licensee after a  hearing  at
    56  which the licensee shall be given an opportunity to be heard. Such hear-

        A. 3506--A                         42
     1  ing  shall  be  held  in  such  manner  and  upon  such notice as may be
     2  prescribed by the rules of the bureau.
     3    3.  All  other  licenses  or  permits issued under this article may be
     4  revoked, cancelled, suspended and/or made subject to the imposition of a
     5  civil penalty by the bureau after a hearing to be held in the manner  to
     6  be determined by the rules of the bureau.
     7    4.  (a) The provisions of this subdivision shall apply in all cases of
     8  licensee or permittee failure after  receiving  appropriate  notice,  to
     9  comply  with  a  summons, subpoena or warrant relating to a paternity or
    10  child support proceeding and arrears in  payment  of  child  support  or
    11  combined  child  and  spousal  support referred to the bureau by a court
    12  pursuant to the requirements of section two hundred forty-four-c of  the
    13  domestic relations law or pursuant to section four hundred fifty-eight-b
    14  or five hundred forty-eight-b of the family court act.
    15    (b)  Upon  receipt  of  an  order  from  the court based on arrears in
    16  payment of child support or combined child and spousal support  pursuant
    17  to  one of the foregoing provisions of law, the bureau, if it finds such
    18  person to have been issued a license or permit, shall within thirty days
    19  of receipt of such order from the court, provide notice to the  licensee
    20  or  permittee  of,  and initiate, a hearing which shall be held at least
    21  twenty days and no more than thirty  days  after  the  sending  of  such
    22  notice  to  the  licensee or permittee. The hearing shall be solely held
    23  for the purpose of determining whether there exists as of  the  date  of
    24  the  hearing  proof  that  full payment of all arrears of support estab-
    25  lished by the order of the court to be due from the licensee or  permit-
    26  tee  have  been  paid.  Proof of such payment shall be a certified check
    27  showing full payment of established arrears or a notice  issued  by  the
    28  court  or the support collection unit, where the order is payable to the
    29  support collection unit designated by the  appropriate  social  services
    30  district.  Such  notice  shall state that full payment of all arrears of
    31  support established by the order of the court to be due have been  paid.
    32  The  licensee  or  permittee  shall be given full opportunity to present
    33  such proof of payment at the hearing in person or by counsel.  The  only
    34  issue  to  be  determined  by  the  bureau as a result of the hearing is
    35  whether the arrears have been paid. No  evidence  with  respect  to  the
    36  appropriateness of the court order or ability of the respondent party in
    37  arrears to comply with such order shall be received or considered by the
    38  bureau.
    39    (c)  Notwithstanding  any inconsistent provision of this article or of
    40  any other provision of law to the contrary, such license or permit shall
    41  be suspended if at the hearing, provided for by paragraph  (b)  of  this
    42  subdivision, the licensee or permittee fails to present proof of payment
    43  as  required  by  such  paragraph.   Such suspension shall not be lifted
    44  unless the court or the support collection unit, where the  court  order
    45  is  payable to the support collection unit designated by the appropriate
    46  social services district, issues notice to the bureau that full  payment
    47  of  all  arrears  of support established by the order of the court to be
    48  due have been paid.
    49    (d) Upon receipt of an order from the court based on failure to comply
    50  with a summons, subpoena, or warrant relating to a  paternity  or  child
    51  support  proceeding, the bureau, if it finds such person has been issued
    52  a license or permit, shall within thirty days of receipt of  such  order
    53  from  the court, provide notice to the licensee or permittee that his or
    54  her license shall be suspended in sixty days unless  the  conditions  in
    55  paragraph (e) of this subdivision are met.

        A. 3506--A                         43
     1    (e)  Notwithstanding  any inconsistent provision of this article or of
     2  any other provision of law to the contrary, such license or permit shall
     3  be suspended in accordance with the provisions of paragraph (c) of  this
     4  subdivision unless the court terminates its order to commence suspension
     5  proceedings. Such suspension shall not be lifted unless the court issues
     6  an  order  to  the  bureau  terminating its order to commence suspension
     7  proceedings.
     8    (f) The bureau shall inform the court of all actions  taken  hereunder
     9  as required by law.
    10    (g)  This  subdivision applies to support obligations paid pursuant to
    11  any order of child support or child and  spousal  support  issued  under
    12  provisions of section two hundred thirty-six or two hundred forty of the
    13  domestic  relations  law,  or article four, five or five-A of the family
    14  court act.
    15    (h) Notwithstanding any inconsistent provision of this article  or  of
    16  any  other  provision  of  law  to  the contrary, the provisions of this
    17  subdivision shall apply to the exclusion of any  other  requirements  of
    18  this article and to the exclusion of any other requirement of law to the
    19  contrary.
    20    5.  Where  a  licensee is convicted of two or more qualifying offenses
    21  within a five year period, the bureau, upon receipt of  notification  of
    22  such  second  or  subsequent  conviction  pursuant  to the provisions of
    23  subdivision two of section one hundred six-a of this chapter, shall,  in
    24  addition  to  any  other  sanction  or civil or criminal penalty imposed
    25  pursuant to this chapter, impose on such licensee a civil penalty not to
    26  exceed five hundred dollars. For purposes of this subdivision, a  quali-
    27  fying  offense shall mean: (a) the offense defined in subdivision one of
    28  section sixty-five of this chapter; or (b) the offense defined in  para-
    29  graph  (b)  of  subdivision one of section sixty-five-b of this chapter.
    30  For purposes of this subdivision, a  conviction  of  a  licensee  or  an
    31  employee or agent of such licensee shall constitute a conviction of such
    32  licensee.
    33    §  188.  Decisions of the bureau of marihuana policy and review by the
    34  courts.  Provisions of sections one hundred twenty, one hundred  twenty-
    35  one and one hundred twenty-four of this chapter shall apply to marihuana
    36  licenses issued under this article.
    37    §  189.  Minority  and  women-owned  business  enterprises. The bureau
    38  shall:
    39    1. actively promote racial,  ethnic,  and  geographic  diversity  when
    40  licensing marihuana growers, processors, and retailers;
    41    2. encourage applicants who qualify as a minority or women-owned busi-
    42  ness  enterprise,  as defined in section three hundred ten of the execu-
    43  tive law, to apply for licenses;
    44    3. in accordance with the Official Compilation  of  Codes,  Rules  and
    45  Regulations  of  the  State  of New York Title 5, Department of Economic
    46  Development, Chapter XIV, Division  of  Minority  and  Women's  Business
    47  Development,  Part 141, submit an annual master goal plan to promote the
    48  inclusion of: (a) minority-owned business enterprises;  (b)  women-owned
    49  business  enterprises;  and (c) minority and women-owned business enter-
    50  prises with justifications for such goals; and
    51    4. actively promote and encourage applicants that promote  and  ensure
    52  racial,  ethnic,  and gender diversity in their workforce when licensing
    53  marihuana growers, processors, and retailers.
    54    § 190. Disposition of moneys received for  license  fees.  The  bureau
    55  shall  establish  a  scale  of application, licensing, and renewal fees,

        A. 3506--A                         44
     1  based upon the cost of enforcing this article and the size of the  mari-
     2  huana business being licensed, as follows:
     3    1. Each licensing authority shall charge each licensee a licensure and
     4  renewal  fee,  as  applicable.  The  licensure  and renewal fee shall be
     5  calculated to cover the costs of administering this article. The  licen-
     6  sure  fee  may  vary  depending  upon  the varying costs associated with
     7  administering the various regulatory requirements  of  this  article  as
     8  they  relate  to  the nature and scope of the different licensure activ-
     9  ities, but shall not exceed  the  reasonable  regulatory  costs  to  the
    10  licensing authority.
    11    2. The total fees assessed pursuant to this article shall be set at an
    12  amount  that  will  fairly and proportionately generate sufficient total
    13  revenue to fully cover the total costs of administering this article.
    14    3. All license fees shall be set on a  scaled  basis  by  the  bureau,
    15  dependent on the size of the business.
    16    4.  The  bureau  shall  deposit  all  fees  collected in the marihuana
    17  control fund established pursuant to section  eighty-two  of  the  state
    18  finance law.
    19    §  191.  Persons  forbidden  to traffic in marihuana. 1. The following
    20  persons are forbidden to traffic in marihuana:
    21    (a) A person under the age of twenty-one years.
    22    (b) A person who is not a citizen of the United  States  or  an  alien
    23  lawfully admitted for permanent residence in the United States.
    24    (c) A co-partnership or a corporation, unless each member of the part-
    25  nership,  or  each of the principal officers and directors of the corpo-
    26  ration, is a citizen of the United States or an alien lawfully  admitted
    27  for  permanent  residence in the United States, not less than twenty-one
    28  years of age, and has not been convicted of any felony  or  any  of  the
    29  misdemeanors, specified in section 230.20 or 230.40 of the penal law, or
    30  if  so  convicted has received, subsequent to such conviction, an execu-
    31  tive pardon therefor removing this  disability  a  certificate  of  good
    32  conduct  granted  by  the department of corrections and community super-
    33  vision, or a certificate of relief  from  disabilities  granted  by  the
    34  department  of  corrections and community supervision or a court of this
    35  state  pursuant  to  the  provisions  of  article  twenty-three  of  the
    36  correction  law  to  remove the disability under this section because of
    37  such conviction; provided however that  a  corporation  which  otherwise
    38  conforms to the requirements of this section and article may be licensed
    39  if  each  of its principal officers and more than one-half of its direc-
    40  tors are citizens of the United States or aliens lawfully  admitted  for
    41  permanent  residence  in  the United States; and provided further that a
    42  corporation organized under the not-for-profit corporation  law  or  the
    43  education  law  which  otherwise  conforms  to  the requirements of this
    44  section and article may be licensed if each of  its  principal  officers
    45  and  more  than  one-half  of its directors are not less than twenty-one
    46  years of age and none of its directors are less than eighteen  years  of
    47  age;  and  provided  further that a corporation organized under the not-
    48  for-profit corporation law or the education law and located on the prem-
    49  ises of a college as defined by section two of the education  law  which
    50  otherwise  conforms  to the requirements of this section and article may
    51  be licensed if each of its principal officers and each of its  directors
    52  are not less than eighteen years of age.
    53    (d)  (i)  A  person  who  shall have had any license issued under this
    54  chapter revoked for cause, until the expiration of two  years  from  the
    55  date of such revocation.

        A. 3506--A                         45
     1    (ii)  A  person not licensed under the provisions of this chapter, who
     2  has been convicted of a violation of this chapter, until the  expiration
     3  of two years from the date of such conviction.
     4    (e)  A  corporation  or co-partnership, if any officer and director or
     5  any partner, while not licensed under the provisions  of  this  chapter,
     6  has  been convicted of a violation of this chapter, or has had a license
     7  issued under this chapter revoked for cause, until the expiration of two
     8  years from the date of such conviction or revocation.
     9    2. An applicant shall not be denied a state license under this article
    10  if the denial is based solely on a conviction for a violation of article
    11  two hundred twenty or two hundred twenty-one of the penal law.
    12    § 192. Surrender of license; notice to police officials. Within  three
    13  days  after  a license shall have been revoked pursuant to this article,
    14  notice thereof shall be given to the licensee  by  mailing  such  notice
    15  addressed  to  him at the premises licensed. Notice shall also be mailed
    16  to the owner of the premises licensed. The holder of such license  shall
    17  thereupon  surrender  same  to  the  bureau.  The mailing thereof by the
    18  licensee to the bureau by registered mail or insured parcel  post  shall
    19  be  deemed  sufficient  compliance  with this section. The bureau, imme-
    20  diately upon giving notice of revocation, shall serve a  written  notice
    21  thereof upon the commissioner of police, chief of police or chief police
    22  officer  of  the  city,  or  village in which the premises for which the
    23  revoked license was issued is situated, or upon the sheriff of the coun-
    24  ty or a constable of the town in case the license was issued  for  prem-
    25  ises situated in a town and not within any city or village.  Such notice
    26  shall  include  a  statement of the number of such license, the name and
    27  place of residence of the holder thereof, the location of  the  licensed
    28  premises,  and  the  date  when  such  license was revoked. In case such
    29  license be not forthwith surrendered, the bureau shall issue  a  written
    30  demand  for the surrender of such license and deliver said demand to the
    31  sheriff of the county in which the licensed premises are located, or  to
    32  any  representative  of  the  bureau, and said sheriff or representative
    33  shall immediately take possession of such license and return the same to
    34  the bureau.
    35    § 193. Authority to promulgate rules and regulations. The bureau shall
    36  promulgate and implement all rules and regulations as it deems necessary
    37  to carry out the purpose and intent of this article.
    38    § 194. Protections for the use of marihuana. Individuals and  licensed
    39  entities  shall not be subject to arrest, prosecution, or penalty in any
    40  manner, or denied any right or privilege, including but not  limited  to
    41  civil  liability or disciplinary action by a business or occupational or
    42  professional licensing board or bureau,  solely  for  conduct  permitted
    43  under  this  article. For the avoidance of doubt, the appellate division
    44  of the supreme court of the state of New York, and any  disciplinary  or
    45  character  and  fitness  committees established by them are occupational
    46  and professional licensing boards within the meaning  of  this  section.
    47  State  or  local  law  enforcement  agencies shall not cooperate with or
    48  provide assistance to the government of the United States or any  agency
    49  thereof  in  enforcing the Controlled Substance Act, 21, U.S.C. S8012 et
    50  seq., solely for actions consistent with this chapter, except as  pursu-
    51  ant to a valid court order.
    52    §  195. Discrimination protections for the use of marihuana or medical
    53  marihuana. 1. No school or landlord may refuse to enroll or lease to and
    54  may not otherwise penalize a person solely  for  conduct  allowed  under
    55  sections 221.05 and 221.05-a of the penal law, except as exempted:

        A. 3506--A                         46
     1    (a)  If  failing to do so would cause the school or landlord to lose a
     2  monetary or licensing related benefit under federal law or regulations;
     3    (b) If the institution has adopted a code of conduct prohibiting mari-
     4  huana use on the basis of religious belief;
     5    (c)  If  a property is registered with the New York Smoke-Free Housing
     6  Registry, it is not required to permit the smoking of marihuana products
     7  on its premises.
     8    2. For the purposes of medical care, including  organ  transplants,  a
     9  registered qualifying patient's authorized use of medical marihuana must
    10  be  considered  the  equivalent of the use of any other medication under
    11  the direction of a practitioner and does not constitute the  use  of  an
    12  illicit  substance  or  otherwise  disqualify  a  registered  qualifying
    13  patient from medical care.
    14    3. No person may be denied custody of or visitation or parenting  time
    15  with  a minor, and there is no presumption of neglect or child endanger-
    16  ment for conduct allowed under sections 221.05 and 221.05-a of the penal
    17  law, unless the person's behavior creates an unreasonable danger to  the
    18  safety of the minor as established by clear and convincing evidence. For
    19  the  purposes  of  this  section, an "unreasonable danger" determination
    20  cannot be based solely on whether, when, and how  often  a  person  uses
    21  marihuana without separate evidence of harm.
    22    § 196. Employment protections. 1.  Unless an employer establishes by a
    23  preponderance  of  the  evidence  that  the  lawful use of marihuana has
    24  impaired the employee's ability to perform the employee's job  responsi-
    25  bilities,  it  shall  be  unlawful to take any adverse employment action
    26  against an employee based on either:
    27    (a) conduct allowed under sections 221.05 and 221.05-a  of  the  penal
    28  law; or
    29    (b)  the  employee's  positive  drug  test for marihuana components or
    30  metabolites.
    31    2. For the purposes of this  section,  an  employer  may  consider  an
    32  employee's  ability to perform the employee's job responsibilities to be
    33  impaired when the employee manifests specific articulable symptoms while
    34  working that decrease or lessen the employee's performance of the duties
    35  or tasks of the employee's job position.
    36    3. Nothing in this section shall restrict  an  employer's  ability  to
    37  prohibit  or take adverse employment action for the possession or use of
    38  intoxicating substances during work hours, or  require  an  employer  to
    39  commit  any  act  that  would  cause  the employer to be in violation of
    40  federal law, or that would result in the loss of a federal  contract  or
    41  federal funding.
    42    4. As used in this section, "adverse employment action" means refusing
    43  to  hire  or employ, barring or discharging from employment, requiring a
    44  person to retire from employment, or discriminating against  in  compen-
    45  sation or in terms, conditions, or privileges of employment.
    46    §  197.  Protections  for  persons  under  state supervision. A person
    47  currently  under  parole,  probation  or  other  state  supervision,  or
    48  released  on bail awaiting trial may not be punished or otherwise penal-
    49  ized for conduct allowed under sections 221.05 and 221.05-a of the penal
    50  law.
    51    § 198. Professional  and  medical  record  keeping.  Any  professional
    52  providing services in connection with a licensed or potentially licensed
    53  business under this chapter, or in connection with other conduct permit-
    54  ted  under  this chapter, and any medical professional providing medical
    55  care to a patient, may agree with their client or patient to maintain no
    56  record, or any reduced level of record  keeping  that  professional  and

        A. 3506--A                         47
     1  client  or  patient  may  agree.  In case of such agreement, the profes-
     2  sional's only obligation shall be to keep such records as agreed, and to
     3  keep a record of the agreement.  Such reduced record keeping is  conduct
     4  permitted  under  this  chapter,  and  shall  attract the protections of
     5  section one hundred ninety-four of this article.
     6    § 32. The state finance law is amended by adding two new  sections  82
     7  and 82-a to read as follows:
     8    §  82.  Marihuana  control fund. 1. There is hereby established in the
     9  joint custody of the commissioner of taxation and finance and the  state
    10  comptroller a special fund to be known as the "marihuana control fund".
    11    2.  The  marihuana control fund shall consist of the revenues required
    12  to be deposited pursuant to the provisions of section one hundred ninety
    13  of the alcoholic beverage control law, and all other moneys credited  or
    14  transferred thereto from any other fund or source pursuant to law.
    15    3. Moneys in the fund used solely for the purpose of administering the
    16  regulatory  requirements  of  article  eleven  of the alcoholic beverage
    17  control law. Moneys in the fund shall not be co-mingled with  any  other
    18  state funds.
    19    4.  Moneys  shall  be paid out of the fund on the audit and warrant of
    20  the comptroller on vouchers certified or approved by the chairman of the
    21  bureau of marihuana policy.
    22    § 82-a. Marihuana revenue fund. 1. There is hereby established in  the
    23  joint  custody of the commissioner of taxation and finance ant the state
    24  comptroller a special fund to be known as the "marihuana revenue fund".
    25    2. The marihuana revenue fund shall consist of the  revenues  required
    26  to be deposited pursuant to the provisions of section four hundred fifty
    27  of the tax law and all other moneys credited or transferred thereto from
    28  any  other  fund  or source pursuant to law, less any payment of refunds
    29  due to tax payers.
    30    3. Moneys in th fund used solely for the purpose of administering  the
    31  regulatory  requirements  of  article  eleven  of the alcoholic beverage
    32  control law. Moneys in the fund shall not be co-mingled with  any  other
    33  state funds.
    34    4.  Moneys  shall  be paid out of the fund on the audit and warrant of
    35  the comptroller on vouchers certified or approved by the commissioner of
    36  taxation and finance.
    37    § 33. The tax law is amended by adding a new article 18-A to  read  as
    38  follows:
    39                                ARTICLE 18-A
    40                      PROVISIONS RELATING TO MARIHUANA
    41  Section 446.   Definitions.
    42          447.   Taxes imposed.
    43          447-a. Local taxes on marihuana by a city or town.
    44          447-b.  Ordinary  and  necessary  expenses  deductible  from net
    45                   income.
    46          448.   Surety bond.
    47          449.   Collection of tax.
    48          450.   Revenue allocation.
    49    § 446. Definitions. As used in this article:
    50    1.  "Commercial market activity" includes the cultivation, possession,
    51  manufacture,  distribution,  processing,  storing,  laboratory  testing,
    52  labeling,  transportation,  delivery  or sale of marihuana and marihuana
    53  products, as provided for in article eleven of  the  alcoholic  beverage
    54  control law, but shall not include medical marihuana activities provided
    55  for in title five-A of article thirty-three of the public health law.

        A. 3506--A                         48
     1    2.    "Concentrated  cannabis"  means (a) the separated resin, whether
     2  crude or purified, obtained from a plant of the genus Cannabis; or (b) a
     3  material,  preparation,  mixture,  compound  or  other  substance  which
     4  contains more than three percent by weight of delta-9 tetrahydrocannabi-
     5  nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
     6  tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
     7  system.
     8    3.  "Marihuana"  means  all  parts of the plant of the genus Cannabis,
     9  whether growing or not; the seeds thereof; the resin extracted from  any
    10  part  of  the  plant; and every compound, manufacture, salt, derivative,
    11  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    12  include  the mature stalks of the plant, fiber produced from the stalks,
    13  oil or cake made from the seeds of the plant, any other compound,  manu-
    14  facture,  salt, derivative, mixture, or preparation of the mature stalks
    15  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    16  sterilized  seed of the plant which is incapable of germination. It does
    17  not include all parts of the plant Cannabis sativa L.,  whether  growing
    18  or not, having no more than three-tenths of one percent tetrahydrocanna-
    19  binol (THC).
    20    4.  "Marihuana  consumer"  means  a  person twenty-one years of age or
    21  older who purchased marihuana or marihuana products for personal use  by
    22  persons twenty-one years of age or older, but not for resale to others.
    23    5.  "Marihuana  flowers" shall mean the dried flowers of the marihuana
    24  plant.
    25    6. "Marihuana leaves" shall mean all  parts  of  the  marihuana  plant
    26  other than marihuana flowers that are sold or consumed.
    27    7.  "Marihuana  processor"  means  a  person licensed by the bureau of
    28  marihuana policy to purchase marihuana and  concentrated  cannabis  from
    29  marihuana  producers,  to  process marihuana, concentrated cannabis, and
    30  marihuana-infused products, package and  label  marihuana,  concentrated
    31  cannabis  and marihuana-infused products for sale in retail outlets, and
    32  sell marihuana, concentrated cannabis and marihuana infused products  at
    33  wholesale to marihuana retailers.
    34    8. "Marihuana producer" means a person licensed by the bureau of mari-
    35  huana  policy  to  produce, process, and sell marihuana and concentrated
    36  cannabis at wholesale to marihuana processors, marihuana  retailers,  or
    37  other marihuana producers, but not to consumers.
    38    9.  "Marihuana  products"  means marihuana, concentrated cannabis, and
    39  marihuana-infused products.
    40    10. "Marihuana-infused products" means products that contain  marihua-
    41  na,  marihuana  extracts,  or concentrated cannabis and are intended for
    42  human use or consumption, such as, but not limited to, edible  products,
    43  ointments, and tinctures.
    44    11. "Immature marihuana plant" means a marihuana plant with no observ-
    45  able flowers or buds.
    46    12.  "Marihuana  retailer"  means  a  person licensed by the bureau of
    47  marihuana policy to purchase marihuana, concentrated cannabis, and mari-
    48  huana-infused products from marihuana producers and marihuana processors
    49  and sell marihuana, marihuana-infused products, and concentrated  canna-
    50  bis in a retail outlet.
    51    13.  "Marihuana  retailer  for on-premises consumption" means a person
    52  licensed by the  bureau  of  marihuana  policy  to  purchase  marihuana,
    53  concentrated  cannabis,  and  marihuana  infused products from marihuana
    54  producers, marihuana retailers and marihuana processors and  sell  mari-
    55  huana  products  for  a customer to consume while the customer is within
    56  the facility.

        A. 3506--A                         49
     1    § 447. Taxes imposed.  1. (a) There is hereby  levied  and  imposed  a
     2  cultivation  tax upon all harvested marihuana that enters the commercial
     3  market upon all persons required to be licensed to  cultivate  marihuana
     4  pursuant  to  article  eleven of the alcoholic beverage control law. The
     5  tax shall be due after the marihuana is harvested.
     6    (i)  Marihuana flowers shall be taxed at a rate of sixty-two cents per
     7  dry-weight gram.
     8    (ii) Marihuana leaves shall be taxed at a rate of ten cents  per  dry-
     9  weight gram.
    10    (b) There is hereby levied and imposed a nursery tax upon all immature
    11  plants  that enter the commercial market upon all persons required to be
    12  licensed to produce immature plants pursuant to article  eleven  of  the
    13  alcoholic beverage control law. Immature plants shall be taxed at a rate
    14  of one dollar and thirty-five cents each.
    15    (c)  There  is  hereby levied and imposed a tax upon marihuana sold or
    16  otherwise transferred by a marihuana producer to a  marihuana  processor
    17  or marihuana retailer at a rate equivalent to the rate established under
    18  article twenty-eight of this chapter.
    19    (d) A marihuana excise tax is hereby levied and imposed upon customers
    20  of  nonmedical  marihuana  or nonmedical marihuana products sold in this
    21  state at the rate fifteen percent of any sale by a retailer,  microbusi-
    22  ness, or other person required to be licensed pursuant to article eleven
    23  of  the  alcoholic  beverage control law to sell marihuana and marihuana
    24  products directly to a customer.
    25    (e) The department shall establish procedures for  the  collection  al
    26  all taxes levied.
    27    (f)  No  tax  established by this section shall be levied upon medical
    28  marihuana intended for sale to a certified patient or  designated  care-
    29  giver  pursuant  to  title  five-A of article thirty-three of the public
    30  health law.
    31    2. For reporting periods beginning later than one year  following  the
    32  effective  date  of this article, the rates of tax under subdivision one
    33  of this section shall be adjusted for each  biennium  according  to  the
    34  cost-of-living adjustment for the calendar year.
    35    3.  The  department  shall regularly review the rates of the tax under
    36  subdivision one of this section and make recommendations to the legisla-
    37  ture regarding appropriate adjustments to the rates  that  will  further
    38  the purposes of:
    39    (a) maximizing net revenue;
    40    (b) minimizing the illegal marihuana industry; and
    41    (c) discouraging the use of marihuana by minors under twenty-one years
    42  of age.
    43    §  447-a. Local taxes on marihuana by a city or town. Any city or town
    44  in this state, acting through its  local  legislative  body,  is  hereby
    45  authorized  and  empowered to adopt and amend local laws imposing in any
    46  such city or town a sales tax on marihuana retailers at  a  rate  of  no
    47  more  than two percent of the sale price of marihuana products sold to a
    48  marihuana consumer. Any taxes imposed pursuant to the authority of  this
    49  section  shall  be  administered  and collected by the department in the
    50  same manner as the taxes imposed under section four  hundred  forty-nine
    51  of  this  article.  The  commissioner  is  hereby empowered to make such
    52  provisions as it  deems  necessary  for  the  joint  administration  and
    53  collection  of  the state and local taxes imposed and authorized by this
    54  article.
    55    § 447-b. Ordinary and necessary expenses deductible from  net  income.
    56  Notwithstanding  any  federal  tax law to the contrary, in computing net

        A. 3506--A                         50
     1  income for businesses exempted from criminal  penalties  under  articles
     2  two hundred twenty and two hundred twenty-one of the penal law and arti-
     3  cle eleven of the alcoholic beverage control law, there shall be allowed
     4  as  a deduction from state taxes all the ordinary and necessary expenses
     5  paid or incurred during the taxable year in carrying  on  any  trade  or
     6  business,  including  but not limited to, reasonable allowance for sala-
     7  ries or other compensation for personal services actually rendered.
     8    § 448. Surety bond. Marihuana  retailer  applicants  are  required  to
     9  submit  a  surety  bond  with  the department equal to two months of the
    10  cultivation facility's anticipated  retail  marihuana  excise  tax.  The
    11  surety bond must be issued by a company authorized to do business in the
    12  state.  Proof  of  surety  bond  is required for approval of applicant's
    13  retail license.
    14    § 449. Collection of tax. This tax shall be collected by  the  commis-
    15  sioner who shall establish a procedure for the collection of this tax.
    16    §  450. Revenue allocation. 1. Before any funds are disbursed pursuant
    17  to subdivisions three, four, five, and six of  this  section  the  state
    18  comptroller shall disburse from the marihuana revenue fund to the appro-
    19  priate account, without regard to fiscal year, the following:
    20    (a)  reasonable costs incurred by the department for administering and
    21  collecting the taxes imposed by this article;  provided,  however,  that
    22  such costs shall not exceed four percent of tax revenues received; and
    23    (b)  reasonable  costs  incurred by the bureau of marihuana policy for
    24  implementing, administering, and enforcing the Marihuana Regulation  and
    25  Taxation  Act  to  the extent those costs are not reimbursed pursuant to
    26  section one hundred ninety of the alcoholic beverage  control  law.  The
    27  provisions  of this paragraph shall remain operative through fiscal year
    28  two thousand twenty-two - two thousand twenty-three.
    29    2. For the purposes of data collection and reporting, the commissioner
    30  shall next disburse the sum of  seven  hundred  fifty  thousand  dollars
    31  annually beginning with fiscal year two thousand nineteen - two thousand
    32  twenty  until fiscal year two thousand twenty-nine - two thousand thirty
    33  to:
    34    (a) The bureau of marihuana policy to track and report data related to
    35  the  licensing  of  marihuana  businesses,  including   the   geographic
    36  location,  structure, and function of licensed marihuana businesses, and
    37  demographic data, including race,  ethnicity,  and  gender,  of  license
    38  holders.  The  bureau  of  marihuana policy shall publish reports on its
    39  findings annually and shall make the reports available to the public.
    40    (b) The department of criminal justice services to  track  and  report
    41  data  related  to  any  infractions, violations, or criminal convictions
    42  that occur under any of the remaining marihuana statutes. The department
    43  of criminal justice services shall publish reports on its findings annu-
    44  ally and shall make the reports available to the public.
    45    3. The commissioner shall next disburse the sum of one million dollars
    46  to the state university of New York annually beginning with fiscal  year
    47  two thousand nineteen - two thousand twenty until fiscal year two  thou-
    48  sand  twenty-nine  -  two  thousand  thirty to research and evaluate the
    49  implementation and effect of the Marihuana Regulation and Taxation  Act,
    50  and  shall,  if appropriate, make recommendations to the legislature and
    51  governor regarding possible amendments to the Marihuana  Regulation  and
    52  Taxation  Act.  The  recipients  of these funds shall publish reports on
    53  their findings at a minimum of  every  two  years  and  shall  make  the
    54  reports  available  to  the public. The research funded pursuant to this
    55  subdivision shall include but not necessarily be limited to:

        A. 3506--A                         51
     1    (a) impacts on public health, including health costs  associated  with
     2  marihuana  use,  as  well as whether marihuana use is associated with an
     3  increase or decrease in use of alcohol or other drugs;
     4    (b)  the  impact of treatment for cannabis use disorder and the effec-
     5  tiveness of different treatment programs;
     6    (c) public safety issues related to marihuana use, including  studying
     7  the  effectiveness of the packaging and labeling requirements and adver-
     8  tising and marketing restrictions contained in the Marihuana  Regulation
     9  and  Taxation  Act at preventing underage access to and use of marihuana
    10  and marihuana products, and studying the  health-related  effects  among
    11  users of varying potency levels of marihuana and marihuana products;
    12    (d)  marihuana  use rates, maladaptive use rates for adults and youth,
    13  and diagnosis rates of marihuana-related substance use disorders;
    14    (e) marihuana market prices, illicit market prices, tax structures and
    15  rates, including an evaluation of how to best  tax  marihuana  based  on
    16  potency,  and  the  structure  and  function of licensed marihuana busi-
    17  nesses;
    18    (f) whether additional protections  are  needed  to  prevent  unlawful
    19  monopolies or anti-competitive behavior from occurring in the nonmedical
    20  marihuana  industry and, if so, recommendations as to the most effective
    21  measures for preventing such behavior;
    22    (g) the economic impacts in the private and public sectors,  including
    23  but  not  necessarily limited to, job creation, workplace safety, reven-
    24  ues, taxes generated for state and local budgets, and  criminal  justice
    25  impacts,  including,  but  not  necessarily  limited  to, impacts on law
    26  enforcement and public resources, short and long  term  consequences  of
    27  involvement  in the criminal justice system, and state and local govern-
    28  ment agency administrative costs and revenue;
    29    (h) whether the  regulatory  agencies  tasked  with  implementing  and
    30  enforcing  the  Marihuana  Regulation  and  Taxation  Act  are  doing so
    31  consistent with the purposes of the Marihuana  Regulation  and  Taxation
    32  Act, and whether different agencies might do so more effectively; and
    33    (i) environmental issues related to marihuana production and the crim-
    34  inal prohibition of marihuana production.
    35    4. The commissioner shall next divide fifteen percent of the remaining
    36  revenue collected in the marihuana revenue fund equally between:
    37    (a)  the  division  of  criminal justice services for re-entry support
    38  services for individuals released from prison  after  serving  time  for
    39  drug related offenses;
    40    (b)  the  office  of  alcoholism and substance abuse services for drug
    41  abuse prevention and treatment programs; and
    42    (c) the department  of  labor  for  apprenticeship  and  job  training
    43  programs  targeting,  with preference given to programs targeting census
    44  tracts with a poverty rate of at least twenty percent or an unemployment
    45  rate of at least one and one quarter times the New York state  unemploy-
    46  ment rate.
    47    5. The commissioner shall, after disbursing funds pursuant to subdivi-
    48  sions  one through four of this section, disburse funds deposited in the
    49  marihuana revenue fund during  the  prior  fiscal  year  into  sub-trust
    50  accounts, which are hereby created as follows:
    51    (a)  Twenty-five percent shall be provided to the education department
    52  which shall distribute these funds in accordance with  subdivisions  two
    53  and four of section ninety-two-c of the state finance law;
    54    (b)  Twenty-five  percent shall be deposited in the drug treatment and
    55  public education fund, and disbursed by the comptroller for the  follow-
    56  ing purposes:

        A. 3506--A                         52
     1    (i)  To  develop and implement a youth-focused public health education
     2  and prevention campaign, including school-based prevention, early inter-
     3  vention, and health care services and programs to  reduce  the  risk  of
     4  marihuana and other substance use and abuse by school-aged children;
     5    (ii)  To  develop  and  implement  a  statewide public health campaign
     6  focused on the health effects of marihuana and legal use,  including  an
     7  ongoing  education  and  prevention  campaign  that educates the general
     8  public, including parents, consumers and retailers, on the legal use  of
     9  marihuana,  the importance of preventing youth access, the importance of
    10  safe storage and preventing secondhand marihuana smoke exposure,  infor-
    11  mation  for  pregnant or breastfeeding women, and the overconsumption of
    12  edibles;
    13    (iii) To provide substance use disorder treatment programs  for  youth
    14  and  adults, with an emphasis on programs that are culturally and gender
    15  competent, trauma-informed, evidence-based and provide  a  continuum  of
    16  care  that  includes screening and assessment (substance use disorder as
    17  well as mental health), early  intervention,  active  treatment,  family
    18  involvement,  case management, overdose prevention, prevention of commu-
    19  nicable diseases  related  to  substance  use,  relapse  management  for
    20  substance  use and other co-occurring behavioral health disorders, voca-
    21  tional services, literacy services, parenting  classes,  family  therapy
    22  and  counseling  services,  medication-assisted  treatments, psychiatric
    23  medication and psychotherapy;
    24    (iv) To evaluate the programs being funded to determine  their  effec-
    25  tiveness.
    26    (c) Fifty percent shall be deposited in the community grants reinvest-
    27  ment  fund by the commissioner, and disbursed by the comptroller for the
    28  establishment of a community  grants  reinvestment  program  that  shall
    29  administer  the  monies to qualified community-based nonprofit organiza-
    30  tions for the purpose of reinvesting in  communities  disproportionately
    31  affected  by past federal and state drug policies.  The grants from this
    32  program shall be used to support job placement, mental health treatment,
    33  substance use disorder  treatment,  system  navigation  services,  legal
    34  services to address barriers to reenty, and linkages to medical care and
    35  women's  health  services. The programs may include, but are not limited
    36  to, the following components:
    37    (i) The community grants reinvestment program shall periodically eval-
    38  uate the programs it is funding to determine the  effectiveness  of  the
    39  programs.
    40    (ii)  The  community grants reinvestment program shall be governed and
    41  administered by an executive steering committee of thirteen members that
    42  includes representatives of the office of children and family  services,
    43  the  department  of  labor and the department of health appointed by the
    44  governor and a representative of the department of  education  appointed
    45  by  the board of regents. In addition, the majority and minority leaders
    46  of the senate and assembly shall each appoint one member to the steering
    47  committee, the comptroller shall appoint three additional  members,  and
    48  the  attorney general shall appoint two additional members from relevant
    49  local  government  entities  and  community-based  organizations.  Every
    50  effort  should be made to ensure a balanced and diverse committee, which
    51  shall have expertise in job placement, homelessness and housing,  behav-
    52  ioral health and substance abuse treatment, and effective rehabilitative
    53  treatment for adults and juveniles, and shall include representatives of
    54  organizations  serving  communities  impacted  by past federal and state
    55  drug policies.

        A. 3506--A                         53
     1    (iii) The committee shall make recommendations regarding  the  design,
     2  efficacy, and viability of proposals.
     3    (iv)  The committee shall prioritize proposals that provide any of the
     4  following:
     5    (A) Community-based job skills services.
     6    (B) Community-based job placement services.
     7    (C) Adult education services.
     8    (D) Other community-based supportive services.
     9    6. The Community Grants Reinvestment Program shall not make any grants
    10  to municipal governments which have banned  the  cultivation,  including
    11  personal  cultivation  of  marihuana under section 221.05-a of the penal
    12  law, or retail sale of marihuana or marihuana products pursuant to arti-
    13  cle eleven of the alcoholic beverage control law.
    14    § 34. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
    15  of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
    16  ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
    17  the laws of 1977 and as relettered by chapter 192 of the laws  of  1980,
    18  are amended to read as follows:
    19    (i)  prior to the filing of an accusatory instrument in a local crimi-
    20  nal court against such person, the prosecutor elects  not  to  prosecute
    21  such  person.  In such event, the prosecutor shall serve a certification
    22  of such disposition upon the division of criminal justice  services  and
    23  upon  the appropriate police department or law enforcement agency which,
    24  upon receipt thereof, shall comply with  the  provisions  of  paragraphs
    25  (a),  (b),  (c)  and  (d) of subdivision one of this section in the same
    26  manner as is required thereunder with respect to an  order  of  a  court
    27  entered pursuant to said subdivision one[.]; or
    28    (j)  following the arrest of such person, the arresting police agency,
    29  prior to the filing of an accusatory  instrument  in  a  local  criminal
    30  court  but subsequent to the forwarding of a copy of the fingerprints of
    31  such person to the division of criminal justice services, elects not  to
    32  proceed  further. In such event, the head of the arresting police agency
    33  shall serve a certification of such disposition  upon  the  division  of
    34  criminal justice services which, upon receipt thereof, shall comply with
    35  the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
    36  this  section  in the same manner as is required thereunder with respect
    37  to an order of a court entered pursuant to said subdivision one[.]; or
    38    (k) (i) The accusatory instrument alleged a violation of  article  two
    39  hundred  twenty  or section 240.36 of the penal law, prior to the taking
    40  effect of article two hundred twenty-one of the penal  law,  or  by  the
    41  conviction  of  such person of a violation of [article two hundred twen-
    42  ty-one] section 221.45 of the penal law on or after the  effective  date
    43  of  the  chapter  of the laws of 2017 that amended this subdivision or a
    44  violation of sections 221.05, 221.10, 221.15,  221.20,  221.25,  221.30,
    45  221.35,  or  221.40  of the penal law prior to the effective date of the
    46  chapter of the laws of 2017 that amended this subdivision; and (ii)  the
    47  sole  controlled  substance involved is [marijuana; (iii) the conviction
    48  was only for a violation or violations; and (iv) at  least  three  years
    49  have  passed  since the offense occurred] marihuana.  No defendant shall
    50  be required or permitted to waive eligibility for  sealing  pursuant  to
    51  this  paragraph  as  part of a plea of guilty, sentence or any agreement
    52  related to a conviction for a violation of section 221.45 of  the  penal
    53  law. Any such waiver shall be deemed void and wholly unenforceable.
    54    §  35.  Subdivision 4 of section 160.50 of the criminal procedure law,
    55  as amended by chapter 905 of the laws of 1977 and renumbered by  chapter
    56  142 of the laws of 1991, is amended to read as follows:

        A. 3506--A                         54
     1    4.  A person in whose favor a criminal action or proceeding was termi-
     2  nated, as defined in [paragraph] paragraphs (a) through (h), (k) or  (l)
     3  of  subdivision [two] three of this section, prior to the effective date
     4  of [this section, may upon motion apply  to  the  court  in  which  such
     5  termination  occurred,  upon  not  less  than  twenty days notice to the
     6  district attorney, for an order granting to such person the  relief  set
     7  forth in subdivision one of this section, and such order shall be grant-
     8  ed  unless the district attorney demonstrates to the satisfaction of the
     9  court that the interests of justice require otherwise. A person in whose
    10  favor a criminal action or proceeding  was  terminated,  as  defined  in
    11  paragraph  (i)  or  (j) of subdivision two of this section, prior to the
    12  effective date of this section, may apply to the appropriate  prosecutor
    13  or  police agency for a certification as described in said paragraph (i)
    14  or (j) granting to such person the relief set forth  therein,  and  such
    15  certification shall be granted by such prosecutor or police agency.] the
    16  chapter of the laws of two thousand seventeen that amended this subdivi-
    17  sion, and whose records have not been sealed pursuant to subdivision one
    18  of  this  section, may apply to have the records of such criminal action
    19  or proceeding sealed at the clerk's office for the court  in  which  the
    20  criminal action or proceeding was terminated. Application may be made by
    21  the  person  or  his  or her attorney. Upon a determination by the clerk
    22  that the action or proceeding was terminated in the  person's  favor  as
    23  defined  in  subdivision  three  of this section, the clerk of the court
    24  shall immediately notify the commissioner of the  division  of  criminal
    25  justice services and the heads of all appropriate police departments and
    26  other  law  enforcement  agencies that the action has been terminated in
    27  favor of the accused and that the record of such action  or  proceedings
    28  shall  be  sealed.  Upon receipt of notification of such termination and
    29  sealing, all records relating to the criminal action shall be sealed, as
    30  required under paragraph (c) of subdivision one of this section, and all
    31  photographs, photographic plates or proofs, palmprints and  fingerprints
    32  shall be destroyed or returned as specified in paragraphs (a) and (b) of
    33  subdivision one of this section. This paragraph shall not apply to cases
    34  in  which  the  court declined to seal for reasons stated on the record,
    35  pursuant to subdivision one of this section.  When  an  applicant  under
    36  this  subdivision  presents  to the court clerk fingerprint records from
    37  New York state division of criminal justice services or a court disposi-
    38  tion which indicate that a criminal action  or  proceeding  against  the
    39  applicant  was  dismissed  but  the  supporting  court records cannot be
    40  located, have been destroyed, or do not indicate whether  the  dismissal
    41  was  a  "termination in favor of" the accused as that term is defined in
    42  subdivision three of this section, the clerk of the court  wherein  such
    43  criminal  action  or  proceeding  was terminated shall proceed as if the
    44  matter had been so terminated.
    45    § 36. Subdivisions 1 and 2 of section 170.56 of the criminal procedure
    46  law, subdivision 1 as amended by chapter 360 of the  laws  of  1977  and
    47  subdivision  2  as added by chapter 1042 of the laws of 1971, is amended
    48  to read as follows:
    49    1.  Upon or after arraignment in a local criminal court upon an infor-
    50  mation, a prosecutor's information or a misdemeanor complaint, where the
    51  sole remaining count or counts  charge  a  violation  or  violations  of
    52  section  [221.05,  221.10, 221.15, 221.35 or 221.40] 221.45 of the penal
    53  law, or upon summons for a nuisance offense under  section  sixty-five-c
    54  of  the alcoholic beverage control law and before the entry of a plea of
    55  guilty thereto or commencement of   a trial  thereof,  the  court,  upon
    56  motion  of  a defendant, may order that all proceedings be suspended and

        A. 3506--A                         55
     1  the action adjourned in contemplation of dismissal, or  upon  a  finding
     2  that  adjournment  would not be necessary or appropriate and the setting
     3  forth in the record of the reasons for such  findings,  may  dismiss  in
     4  furtherance  of  justice  the  accusatory instrument; provided, however,
     5  that the court may  not  order  such  adjournment  in  contemplation  of
     6  dismissal or dismiss the accusatory instrument if: (a) the defendant has
     7  previously  been granted such adjournment in contemplation of dismissal,
     8  or (b) the defendant has previously been granted a dismissal under  this
     9  section,  or  (c)  the  defendant  has  previously been convicted of any
    10  offense involving controlled substances, or (d) the defendant has previ-
    11  ously been convicted of a crime  and  the  district  attorney  does  not
    12  consent  or (e) the defendant has previously been adjudicated a youthful
    13  offender on the basis of any act or acts involving controlled substances
    14  and the district attorney does not consent.  Notwithstanding the limita-
    15  tions set forth in this  subdivision,  the  court  may  order  that  all
    16  proceedings  be  suspended  and the action adjourned in contemplation of
    17  dismissal  based  upon  a  finding  of  exceptional  circumstances.  For
    18  purposes  of  this  subdivision,  exceptional  circumstances exist when,
    19  regardless of the ultimate disposition of the case, the entry of a  plea
    20  of guilty is likely to result in severe collateral consequences, includ-
    21  ing,  but not limited to, those that could leave a noncitizen inadmissi-
    22  ble or removable from the United States.
    23    2.  Upon ordering the action adjourned in contemplation of  dismissal,
    24  the  court  must  set and specify such conditions for the adjournment as
    25  may be appropriate, and such conditions may include placing the  defend-
    26  ant  under the supervision of any public or private agency.  At any time
    27  prior to dismissal the court may modify  the  conditions  or  extend  or
    28  reduce  the  term  of  the  adjournment, except that the total period of
    29  adjournment shall not exceed [twelve] six months.  Upon violation of any
    30  condition fixed by the court, the court may revoke its order and restore
    31  the case to the calendar and the prosecution thereupon must proceed.  If
    32  the case is not so restored to the calendar during the period  fixed  by
    33  the court, the accusatory instrument is, at the expiration of such peri-
    34  od, deemed to have been dismissed in the furtherance of justice.
    35    §  37.  Section  210.46  of  the criminal procedure law, as amended by
    36  chapter 360 of the laws of 1977, is amended to read as follows:
    37  § 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
    38          in a superior court.
    39    Upon or after arraignment in a superior court upon an indictment where
    40  the  sole  remaining count or counts charge a violation or violations of
    41  section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
    42  law  and before the entry of a plea of guilty thereto or commencement of
    43  a  trial  thereof, the court, upon motion of a defendant, may order that
    44  all proceedings be suspended and the action adjourned  in  contemplation
    45  of dismissal or may dismiss the indictment in furtherance of justice, in
    46  accordance with the provisions of section 170.56 of this chapter.
    47    § 38. Paragraphs (h) and (i) of subdivision 1 of section 440.10 of the
    48  criminal  procedure  law, paragraph (h) as amended by chapter 332 of the
    49  laws of 2010 and paragraph (i) as amended by chapter 368 of the laws  of
    50  2015, are amended and a new paragraph (j) is added to read as follows:
    51    (h) The judgment was obtained in violation of a right of the defendant
    52  under the constitution of this state or of the United States; [or]
    53    (i)  The judgment is a conviction where the arresting charge was under
    54  section 240.37 (loitering for the purpose of engaging in a  prostitution
    55  offense, provided that the defendant was not alleged to be loitering for
    56  the  purpose of patronizing a person for prostitution or promoting pros-

        A. 3506--A                         56
     1  titution) or 230.00 (prostitution) or 230.03 (prostitution in  a  school
     2  zone) of the penal law, and the defendant's participation in the offense
     3  was  a  result  of having been a victim of sex trafficking under section
     4  230.34  of  the penal law, labor trafficking under section 135.35 of the
     5  penal law, aggravated labor trafficking  under  section  135.37  of  the
     6  penal  law,  compelling  prostitution  under section 230.33 of the penal
     7  law, or trafficking in persons under the Trafficking Victims  Protection
     8  Act (United States Code, title 22, chapter 78); provided that
     9    (i)  a  motion  under this paragraph shall be made with due diligence,
    10  after the defendant has ceased to be a victim  of  such  trafficking  or
    11  compelling prostitution crime or has sought services for victims of such
    12  trafficking  or  compelling  prostitution  crime,  subject to reasonable
    13  concerns for the safety of the defendant, family members of the  defend-
    14  ant,  or  other  victims  of such trafficking or compelling prostitution
    15  crime that may be jeopardized by the bringing of  such  motion,  or  for
    16  other reasons consistent with the purpose of this paragraph; and
    17    (ii)  official  documentation of the defendant's status as a victim of
    18  trafficking, compelling prostitution or trafficking in  persons  at  the
    19  time  of  the  offense  from a federal, state or local government agency
    20  shall create a presumption that the  defendant's  participation  in  the
    21  offense was a result of having been a victim of sex trafficking, compel-
    22  ling  prostitution  or trafficking in persons, but shall not be required
    23  for granting a motion under this paragraph[.]; or
    24    (j) The judgment occurred prior to the effective date  of  this  para-
    25  graph and is a conviction for:
    26    (i) an offense as defined by section 221.05 or 221.10 of the penal law
    27  (criminal  possession  of  marihuana  in the fifth degree), as in effect
    28  prior to the effective date of this paragraph, provided that the accusa-
    29  tory instrument that underlies the judgment does not include an  allega-
    30  tion  that  the defendant possessed more than twenty-five grams of mari-
    31  huana; or
    32    (ii) an offense as defined by former section 221.35 of the  penal  law
    33  (criminal sale of marihuana in the fifth degree).
    34    §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
    35  as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
    36  follows:
    37    6.  If  the court grants a motion under paragraph (i) or paragraph (j)
    38  of subdivision one of this section, it  must  vacate  the  judgment  and
    39  dismiss  the  accusatory instrument, and may take such additional action
    40  as is appropriate in the circumstances.
    41    § 40. The criminal procedure law is amended by adding  a  new  section
    42  440.46-a to read as follows:
    43  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    44               offenses.
    45    1.  A person currently serving a sentence for a conviction, whether by
    46  trial or by open or negotiated plea, who would not have been  guilty  of
    47  an  offense  or  who  would  have been guilty of a lesser offense on and
    48  after the effective date of this section had this section been in effect
    49  at the time of his or her  conviction  may  petition  for  a  recall  or
    50  dismissal  of  sentence before the trial court that entered the judgment
    51  of conviction in his or her case to request resentencing or dismissal in
    52  accordance with article twelve hundred twenty-one of the penal law.
    53    2. Upon receiving a motion under subdivision one of this  section  the
    54  court shall presume the movant satisfies the criteria in subdivision one
    55  of this section unless the party opposing the motion proves by clear and
    56  convincing  evidence  that  the movant does not satisfy the criteria. If

        A. 3506--A                         57
     1  the movant satisfies the criteria in subdivision one  of  this  section,
     2  the court shall grant the motion to vacate the sentence or to resentence
     3  because  it  is legally invalid. In exercising its discretion, the court
     4  may consider, but shall not be limited to, the following:
     5    (a)  The  movant's  criminal conviction history, including the type of
     6  crimes committed, the extent of injury to victims, the length  of  prior
     7  prison commitments, and the remoteness of the crimes.
     8    (b)  The  movant's  disciplinary  record  and record of rehabilitation
     9  while incarcerated.
    10    3. A person who is serving a  sentence  and  resentenced  pursuant  to
    11  subdivision  two  of  this  section  shall  be given credit for any time
    12  already served and shall be subject to supervision for one year  follow-
    13  ing  completion  of  his  or  her time in custody or shall be subject to
    14  whatever supervision time he or she would have otherwise been subject to
    15  after  release,  whichever  is  shorter,  unless  the  court,   in   its
    16  discretion,  as part of its resentencing order, releases the person from
    17  supervision. Such person is subject to parole supervision under  section
    18  60.04  of  the penal law or post-release supervision under section 70.45
    19  of the penal law by the designated agency and the  jurisdiction  of  the
    20  court  in the county in which the offender is released or resides, or in
    21  which an alleged violation of supervision has occurred, for the  purpose
    22  of hearing petitions to revoke supervision and impose a term of custody.
    23    4.  Under  no circumstances may resentencing under this section result
    24  in the imposition of a term longer than the original  sentence,  or  the
    25  reinstatement  of charges dismissed pursuant to a negotiated plea agree-
    26  ment.
    27    5. A person who has completed his or her  sentence  for  a  conviction
    28  under the former article two hundred twenty-one of the penal law, wheth-
    29  er  by  trial or open or negotiated plea, who would not have been guilty
    30  of an offense or who would have been guilty of a lesser offense  on  and
    31  after the effective date of this section had this section been in effect
    32  at the time of his or her conviction, may file an application before the
    33  trial  court  that entered the judgment of conviction in his or her case
    34  to have the conviction, in accordance with article two  hundred  twenty-
    35  one of the penal law:
    36    (a)  Dismissed because the prior conviction is now legally invalid and
    37  sealed in accordance with section 160.50 of this chapter;
    38    (b) Redesignated (or "reclassified") as  a  violation  and  sealed  in
    39  accordance with section 160.50 of this chapter; or
    40    (c) Redesignated (reclassified) as a misdemeanor.
    41    6.  The  court  shall presume the petitioner satisfies the criteria in
    42  subdivision five unless the party opposing  the  application  proves  by
    43  clear  and  convincing evidence that the petitioner does not satisfy the
    44  criteria in subdivision five. Once the applicant satisfies the  criteria
    45  in  subdivision  five, the court shall redesignate (or "reclassify") the
    46  conviction as a misdemeanor, redesignate (reclassify) the conviction  as
    47  a  violation and seal the conviction, or dismiss and seal the conviction
    48  as legally invalid under this section had this section been in effect at
    49  the time of his or her conviction.
    50    7. Unless requested by the applicant, no hearing is necessary to grant
    51  or deny an application filed under subdivision five of this section.
    52    8. Any felony conviction that is vacated and resentenced under  subdi-
    53  vision two or designated as a misdemeanor or violation under subdivision
    54  six  of  this section shall be considered a misdemeanor or violation for
    55  all purposes. Any misdemeanor conviction that is vacated and resentenced
    56  under subdivision two of this section or designated as a violation under

        A. 3506--A                         58
     1  subdivision six of this section shall be considered a violation for  all
     2  purposes.
     3    9. If the court that originally sentenced the movant is not available,
     4  the  presiding  judge shall designate another judge to rule on the peti-
     5  tion or application.
     6    10. Nothing in this section is intended to diminish  or  abrogate  any
     7  rights or remedies otherwise available to the petitioner or applicant.
     8    11.  Nothing  in  this and related sections is intended to diminish or
     9  abrogate the finality of judgements in any case not falling  within  the
    10  purview of this section.
    11    12.  The  provisions  of  this section shall apply equally to juvenile
    12  delinquency adjudications and dispositions under  section  five  hundred
    13  one-e of the executive law if the juvenile would not have been guilty of
    14  an  offense  or  would  have  been guilty of a lesser offense under this
    15  section had this section been in effect  at  the  time  of  his  or  her
    16  conviction.
    17    13.  The  office  of  court  administration  shall promulgate and make
    18  available all necessary forms to enable the filing of the petitions  and
    19  applications provided in this section no later than sixty days following
    20  the effective date of this section.
    21    § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
    22  procedure  law, as amended by chapter 37 of the laws of 2014, is amended
    23  to read as follows:
    24    (c) Criminal possession of  a  controlled  substance  in  the  seventh
    25  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
    26  possession of a controlled substance in the fifth degree as  defined  in
    27  section  220.06  of  the  penal law, criminal possession of a controlled
    28  substance in the fourth degree as defined in section 220.09 of the penal
    29  law, criminal possession of a controlled substance in the  third  degree
    30  as  defined in section 220.16 of the penal law, criminal possession of a
    31  controlled substance in the second degree as defined in  section  220.18
    32  of  the  penal law, criminal possession of a controlled substance in the
    33  first degree as defined in section 220.21 of  the  penal  law,  criminal
    34  sale of a controlled substance in the fifth degree as defined in section
    35  220.31  of the penal law, criminal sale of a controlled substance in the
    36  fourth degree as defined in section 220.34 of the  penal  law,  criminal
    37  sale of a controlled substance in the third degree as defined in section
    38  220.39  of the penal law, criminal sale of a controlled substance in the
    39  second degree as defined in section 220.41 of the  penal  law,  criminal
    40  sale of a controlled substance in the first degree as defined in section
    41  220.43  of  the penal law, criminally possessing a hypodermic instrument
    42  as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
    43  prescription  for  a controlled substance or a controlled substance by a
    44  practitioner or pharmacist as defined in section  220.65  of  the  penal
    45  law,  criminal  possession  of methamphetamine manufacturing material in
    46  the second degree as defined in section 220.70 of the penal law,  crimi-
    47  nal  possession  of  methamphetamine manufacturing material in the first
    48  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
    49  possession of precursors of methamphetamine as defined in section 220.72
    50  of  the  penal law, unlawful manufacture of methamphetamine in the third
    51  degree as defined in section 220.73 of the penal law, unlawful  manufac-
    52  ture  of  methamphetamine  in  the  second  degree as defined in section
    53  220.74 of the penal law, unlawful manufacture of methamphetamine in  the
    54  first  degree  as  defined  in section 220.75 of the penal law, unlawful
    55  disposal of methamphetamine laboratory material as  defined  in  section
    56  220.76  of  the penal law, operating as a major trafficker as defined in

        A. 3506--A                         59
     1  section 220.77 of the penal law, [criminal possession  of  marihuana  in
     2  the first degree as defined in section 221.30 of the penal law, criminal
     3  sale  of  marihuana  in the first degree as defined in section 221.55 of
     4  the  penal  law,]  promoting gambling in the second degree as defined in
     5  section 225.05 of the penal law, promoting gambling in the first  degree
     6  as  defined  in  section 225.10 of the penal law, possession of gambling
     7  records in the second degree as defined in section 225.15 of  the  penal
     8  law,  possession  of  gambling records in the first degree as defined in
     9  section 225.20 of the penal law, and possession of a gambling device  as
    10  defined in section 225.30 of the penal law;
    11    § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
    12  9  of  section  1310 of the civil practice law and rules, paragraphs (b)
    13  and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
    14  and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
    15  are amended to read as follows:
    16    (b) on three or more occasions, engaging  in  conduct  constituting  a
    17  violation  of  any  of  the  felonies defined in section 220.09, 220.16,
    18  220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] or 220.43 [or  221.55]
    19  of  the  penal law, which violations do not constitute a single criminal
    20  offense as defined in subdivision one of section 40.10 of  the  criminal
    21  procedure law, or a single criminal transaction, as defined in paragraph
    22  (a)  of  subdivision two of section 40.10 of the criminal procedure law,
    23  and at least one of which resulted in a conviction of such  offense,  or
    24  where  the  accusatory  instrument charges one or more of such felonies,
    25  conviction upon a plea of guilty to a felony  for  which  such  plea  is
    26  otherwise authorized by law; or
    27    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    28  220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
    29  nal  defendant  for  a violation of section 221.30 of the penal law,] or
    30  where the accusatory instrument charges any such felony, conviction upon
    31  a plea of guilty to a felony for which the plea is otherwise  authorized
    32  by  law,  together with evidence which: (i) provides substantial indicia
    33  that the defendant used the real property  to  engage  in  a  continual,
    34  ongoing  course  of  conduct involving the unlawful mixing, compounding,
    35  manufacturing, warehousing, or packaging of  controlled  substances  [or
    36  where  the  conviction is for a violation of section 221.30 of the penal
    37  law, marijuana,] as part of an illegal trade or business for  gain;  and
    38  (ii) establishes, where the conviction is for possession of a controlled
    39  substance  [or where the conviction is for a violation of section 221.30
    40  of the penal law, marijuana], that such possession was with  the  intent
    41  to sell it.
    42    [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
    43  article two hundred twenty or section 221.30  or  221.55  of  the  penal
    44  law.]
    45    9.  "Criminal defendant" means a person who has criminal liability for
    46  a crime defined in [subdivisions] subdivision five [and six  hereof]  of
    47  this  section.  For  purposes  of  this  article,  a person has criminal
    48  liability when [(a)] he has been convicted of a post-conviction  forfei-
    49  ture  crime[, or (b) the claiming authority proves by clear and convinc-
    50  ing evidence that such person has committed an act in violation of arti-
    51  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
    52    § 43. Subdivision 3-a and paragraphs (a) and (b) of subdivision 11  of
    53  section  1311  of  the  civil practice law and rules, subdivision 3-a as
    54  added by chapter 655 of the laws of 1990 and paragraphs (a) and  (b)  of
    55  subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the
    56  laws of 2010, are amended to read as follows:

        A. 3506--A                         60
     1    3-a.  Conviction  of  a person in a criminal action upon an accusatory
     2  instrument which includes one or  more  of  the  felonies  specified  in
     3  subdivision  four-b  of section thirteen hundred ten of this article, of
     4  any felony other than such felonies, shall not preclude a defendant,  in
     5  any subsequent proceeding under this article where that conviction is at
     6  issue, from adducing evidence that the conduct underlying the conviction
     7  would  not  establish  the  elements of any of the felonies specified in
     8  such subdivision other than the one to which the criminal defendant pled
     9  guilty. If the defendant does adduce such evidence, the burden shall  be
    10  upon  the claiming authority to prove, by clear and convincing evidence,
    11  that the conduct underlying the criminal conviction would establish  the
    12  elements  of the felony specified in such subdivision. Nothing contained
    13  in this subdivision shall affect the validity of  a  settlement  of  any
    14  forfeiture action negotiated between the claiming authority and a crimi-
    15  nal defendant contemporaneously with the taking of a plea of guilty in a
    16  criminal  action to any felony defined in article two hundred twenty [or
    17  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    18  commit the same.
    19    (a) Any stipulation or settlement agreement between the parties  to  a
    20  forfeiture  action  shall  be filed with the clerk of the court in which
    21  the forfeiture action is pending. No stipulation or settlement agreement
    22  shall be accepted for filing unless it is accompanied  by  an  affidavit
    23  from  the  claiming  authority that written notice of the stipulation or
    24  settlement agreement, including the terms of such, has been given to the
    25  office of victim  services,  the  state  division  of  criminal  justice
    26  services[,  and in the case of a forfeiture based on a felony defined in
    27  article two hundred twenty or section 221.30 or 221.55 of the penal law,
    28  to the state division of substance abuse services].
    29    (b) No judgment or order of forfeiture shall be  accepted  for  filing
    30  unless  it  is  accompanied  by an affidavit from the claiming authority
    31  that written notice of judgment or order, including the terms  of  such,
    32  has  been  given to the office of victim services, the state division of
    33  criminal justice services[, and in the case of a forfeiture based  on  a
    34  felony defined in article two hundred twenty or section 221.30 or 221.55
    35  of the penal law, to the state division of substance abuse services].
    36    §  44.  Subdivision 13 of section 89-f of the general business law, as
    37  added by chapter 336 of the laws of 1992, is amended to read as follows:
    38    13. "Serious offense" shall mean any  felony  involving  the  offenses
    39  enumerated  in  the  closing  paragraph  of this subdivision; a criminal
    40  solicitation of or a conspiracy to commit or an attempt to commit  or  a
    41  criminal  facilitation  of a felony involving the offenses enumerated in
    42  the closing paragraph of this subdivision, which criminal  solicitation,
    43  conspiracy, attempt or criminal facilitation itself constitutes a felony
    44  or  any  offense  in  any  other jurisdiction which if committed in this
    45  state would constitute a felony; any offense in any  other  jurisdiction
    46  which if committed in this state would constitute a felony provided that
    47  for the purposes of this article, none of the following shall be consid-
    48  ered  criminal  convictions  or  reported  as such: (i) a conviction for
    49  which an executive pardon has been issued pursuant to the executive law;
    50  (ii) a conviction which has been vacated  and  replaced  by  a  youthful
    51  offender  finding pursuant to article seven hundred twenty of the crimi-
    52  nal procedure law, or the applicable provisions  of  law  of  any  other
    53  jurisdiction;  or  (iii)  a  conviction  the  records of which have been
    54  sealed pursuant to the applicable provisions of the laws of  this  state
    55  or  of  any  other  jurisdiction;  and (iv) a conviction for which other

        A. 3506--A                         61
     1  evidence of successful rehabilitation to remove the disability has  been
     2  issued.
     3    Felonies involving: assault, aggravated assault and reckless endanger-
     4  ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
     5  manslaughter and murder pursuant to article one hundred twenty-five; sex
     6  offenses pursuant to article one hundred thirty; unlawful  imprisonment,
     7  kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
     8  criminal trespass and burglary pursuant to article  one  hundred  forty;
     9  criminal  mischief,  criminal  tampering  and  tampering with a consumer
    10  product pursuant to article one hundred forty-five;  arson  pursuant  to
    11  article one hundred fifty; larceny and offenses involving theft pursuant
    12  to article one hundred fifty-five; offenses involving computers pursuant
    13  to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
    14  hundred sixty; criminal possession of stolen property pursuant to  arti-
    15  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
    16  article one hundred seventy; involving false written statements pursuant
    17  to article one hundred seventy-five; commercial bribing  and  commercial
    18  bribe  receiving pursuant to article one hundred eighty; criminal imper-
    19  sonation and scheme to defraud pursuant to article one  hundred  ninety;
    20  bribery involving public servants and related offenses pursuant to arti-
    21  cle  two  hundred;  perjury and related offenses pursuant to article two
    22  hundred ten; tampering with a witness, intimidating a victim or  witness
    23  and  tampering  with  physical  evidence pursuant to article two hundred
    24  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
    25  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    26  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    27  220.41, 220.43 and 220.44; criminal sale of [marijuana] marihuana in the
    28  first degree pursuant to [sections] section 221.45[, 221.50 and 221.55];
    29  riot  in  the  first  degree, aggravated harassment in the first degree,
    30  criminal nuisance in the first degree and falsely reporting an  incident
    31  in the second or first degree pursuant to article two hundred forty; and
    32  crimes  against public safety pursuant to article two hundred sixty-five
    33  of the penal law.
    34    § 45. Paragraph (f) of subdivision 2 of section  850  of  the  general
    35  business law is REPEALED.
    36    §  46.  Paragraph  (h)  of subdivision 2 of section 850 of the general
    37  business law, as amended by chapter 812 of the laws of 1980, is  amended
    38  to read as follows:
    39    (h)  Objects, used or designed for the purpose of ingesting, inhaling,
    40  or otherwise introducing [marihuana,] cocaine, [hashish, or hashish oil]
    41  into the human body.
    42    § 47. Paragraph a of subdivision 4-a  of  section  165  of  the  state
    43  finance  law,  as added by chapter 95 of the laws of 2000, is amended to
    44  read as follows:
    45    a. In order  to  advance  specific  economic  goals,  New  York  state
    46  labelled wines, as defined in subdivision [twenty-a] twenty-j of section
    47  three  of  the alcoholic beverage control law, shall have favored source
    48  status for the purposes of procurement in accordance with the provisions
    49  of this subdivision.  Procurement of these New York state labelled wines
    50  shall be exempt from the competitive procurement provisions  of  section
    51  one  hundred  sixty-three of this article and other competitive procure-
    52  ment statutes.  Such exemption shall apply to New  York  state  labelled
    53  wines  as defined in subdivision [twenty-a] twenty-j of section three of
    54  the alcoholic beverage control law produced  by  a  licensed  winery  as
    55  defined in section seventy-six of the alcoholic beverage control law.

        A. 3506--A                         62
     1    § 48. Subdivision 7 of section 995 of the executive law, as amended by
     2  chapter 19 of the laws of 2012, is amended to read as follows:
     3    7.  "Designated  offender"  means  a  person  convicted  of any felony
     4  defined in any chapter of the laws  of  the  state  or  any  misdemeanor
     5  defined  in  the  penal  law  [except that where the person is convicted
     6  under section 221.10 of the penal law, only  a  person  convicted  under
     7  subdivision two of such section, or a person convicted under subdivision
     8  one  of  such  section  who  stands previously convicted of any crime as
     9  defined in subdivision six of section 10.00 of the penal law].
    10    § 49. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
    11  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    12  56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
    13  laws of 1990, are amended to read as follows:
    14    (b) three or more violations of any of the felonies defined in section
    15  220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
    16  220.43[,] or 220.77[, or 221.55] of this chapter,  which  violations  do
    17  not  constitute  a single criminal offense as defined in subdivision one
    18  of section 40.10 of the criminal procedure law,  or  a  single  criminal
    19  transaction,  as  defined in paragraph (a) of subdivision two of section
    20  40.10 of the criminal procedure law, and at least one of which  resulted
    21  in  a  conviction  of  such  offense, or where the accusatory instrument
    22  charges one or more of such felonies, conviction upon a plea  of  guilty
    23  to a felony for which such plea is otherwise authorized by law; or
    24    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    25  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
    26  accusatory instrument charges any such felony, conviction upon a plea of
    27  guilty  to  a  felony for which the plea is otherwise authorized by law,
    28  together with evidence which: (i) provides substantial indicia that  the
    29  defendant  used  the  real  property  to  engage in a continual, ongoing
    30  course of conduct involving the unlawful mixing,  compounding,  manufac-
    31  turing, warehousing, or packaging of controlled substances [or where the
    32  conviction  is  for a violation of section 221.30 of this chapter, mari-
    33  juana] as part of an illegal trade or business for gain; and (ii) estab-
    34  lishes, where the conviction is for possession of a controlled substance
    35  [or where the conviction is for a violation of section  221.30  of  this
    36  chapter,  marijuana],  that  such possession was with the intent to sell
    37  it.
    38    § 50. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
    39  and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
    40  amended to read as follows:
    41    (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
    42  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    43  of  this  section  that  result in disqualification for a period of five
    44  years shall include a conviction under sections 100.10, 105.13,  115.05,
    45  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    46  125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
    47  140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
    48  220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
    49  230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
    50  235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
    51  section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
    52  265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
    53  the  aforesaid  offenses  under  section 110.00 of the penal law, or any
    54  similar offenses committed under a former section of the penal  law,  or
    55  any  offenses  committed  under  a former section of the penal law which
    56  would constitute violations of the aforesaid sections of the penal  law,

        A. 3506--A                         63
     1  or  any  offenses  committed  outside  this state which would constitute
     2  violations of the aforesaid sections of the penal law.
     3    §  51. Appropriation.  The sum of five million dollars ($5,000,000) is
     4  hereby appropriated to the New York State Liquor Authority  out  of  any
     5  moneys  in  the  state treasury in the general fund to the credit of the
     6  state purposes account, not otherwise appropriated, and made immediately
     7  available, for the purpose of carrying out the provisions of  this  act.
     8  Such moneys shall be payable on the audit and warrant of the comptroller
     9  on  vouchers certified or approved by the superintendent or the chairman
    10  of the New York State Liquor Authority in the manner prescribed by law.
    11    § 52. Severability. If any provision or term of this act  is  for  any
    12  reason  declared unconstitutional or invalid or ineffective by any court
    13  of competent jurisdiction, such decision shall not affect  the  validity
    14  of  the  effectiveness of the remaining portions of this act or any part
    15  thereof.
    16    § 53. This act shall take effect immediately.
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