Bill Text: NY S00159 | 2023-2024 | General Assembly | Introduced
Bill Title: Authorizes the commissioner of taxation and finance to revoke the certificate of registration of the sale of adult-use cannabis; increases certain penalties relating to the sale of illicit cannabis; authorizes the commissioner of taxation and finance and the duly authorized representatives of the office of cannabis management to provide enforcement; makes it a class A misdemeanor for a distributor of adult-use cannabis products or a retail seller of adult-use cannabis products to sell any such products while not registered to do so.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00159 Detail]
Download: New_York-2023-S00159-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 159 2023-2024 Regular Sessions IN SENATE (Prefiled) January 4, 2023 ___________ Introduced by Sens. KRUEGER, HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to making certain technical corrections to tax on adult-use cannabis pursuant to article 20-C of such law; to amend the cannabis law, in relation to certain penalties; and to amend the penal law, in relation to clarifying the definition of selling cannabis The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (b) of section 494 of the tax law, as added by 2 chapter 92 of the laws of 2021, is amended to read as follows: 3 (b) [(1)] The commissioner shall refuse to issue a certificate of 4 registration to any applicant and shall revoke the certificate of regis- 5 tration of any such person who does not possess a valid license from the 6 office of cannabis management. (1) The commissioner may refuse to issue 7 a certificate of registration to any applicant where such applicant: 8 (i) has a past-due liability as that term is defined in section one 9 hundred seventy-one-v of this chapter; (ii) has had a certificate of 10 registration under this article, a license from the office of cannabis 11 management, or any license or registration provided for in this chapter 12 revoked or suspended where such revocation or suspension was in effect 13 on the date the application was filed or ended within one year from the 14 date on which such application was filed; (iii) has been convicted of a 15 crime provided for in this chapter within one year from the date on 16 which such application was filed or the certificate was issued, as 17 applicable; (iv) willfully fails to file a report or return required by 18 this article; (v) willfully files, causes to be filed, gives or causes 19 to be given a report, return, certificate or affidavit required by this EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01101-01-3S. 159 2 1 article which is false; or (vi) willfully fails to collect or truthfully 2 account for or pay over any tax imposed by this article. 3 (2) The commissioner may revoke the certificate of registration issued 4 to any person who: (i) has had a certificate of registration under this 5 article, or any license or registration provided for in this chapter 6 revoked or suspended; (ii) has been convicted of a crime provided for in 7 this chapter; (iii) willfully fails to file a report or return required 8 by this article; (iv) willfully files, causes to be filed, gives or 9 causes to be given a report, return, certificate or affidavit required 10 by this article which is false; or (v) willfully fails to collect or 11 truthfully account for or pay over any tax imposed by this article. 12 (3) In addition to the grounds for revocation in [paragraph (1)] para- 13 graphs one and two of this subdivision, where a person who holds a 14 certificate of registration is determined to have possessed or sold 15 illicit cannabis: [(1)] (i) such registration may be revoked for a peri- 16 od of up to one year for the first such possession or sale; [(2)] (ii) 17 for a second such possession or sale within a period of five years by 18 such person, the registration of such person may be revoked for a period 19 of up to three years; [(3)] (iii) for a third such possession or sale 20 within a period of up to five years by such person, the registration of 21 such person may be revoked for a period of five years. A certificate of 22 registration may be revoked pursuant to this paragraph immediately upon 23 such person's receipt of written notice of revocation from the commis- 24 sioner. 25 (4) Where a person who has been determined to have possessed or sold 26 illicit cannabis does not possess a certificate of registration under 27 this section, the commissioner may revoke a certificate of authority 28 issued to such person pursuant to section eleven hundred thirty-four of 29 this chapter. Such certificate may be revoked: (i) for a period of up to 30 one year for the first such possession or sale; (ii) for a second such 31 possession or sale within a period of five years by such person, the 32 registration of such person may be revoked for a period of up to three 33 years; (iii) for a third such possession or sale within a period of up 34 to five years by such person, the registration of such person may be 35 revoked for a period of five years. 36 § 2. Section 496-c of the tax law, as added by chapter 92 of the laws 37 of 2021, is amended to read as follows: 38 § 496-c. Illicit cannabis penalty. (a) In addition to any other civil 39 or criminal penalties that may apply, any person knowingly in possession 40 of or knowingly having control over illicit cannabis, as defined in 41 section four hundred ninety-two of this article, after notice and an 42 opportunity for a hearing, shall be liable for a civil penalty of not 43 less than [two] four hundred dollars per ounce of illicit cannabis flow- 44 er, [five] ten dollars per milligram of the total weight of any illicit 45 cannabis edible product, [fifty] one hundred dollars per gram of the 46 total weight of any product containing illicit cannabis concentrate, and 47 [five hundred] one thousand dollars per illicit cannabis plant, but not 48 to exceed [four] eight hundred dollars per ounce of illicit cannabis 49 flower, [ten] twenty dollars per milligram of the total weight of any 50 illicit cannabis edible product, [one] two hundred dollars per gram of 51 the total weight of any product containing illicit cannabis concentrate, 52 and [one] two thousand dollars per illicit cannabis plant for a first 53 violation, and for a second and subsequent violation within three years 54 following a prior violation shall be liable for a civil penalty of not 55 less than [four] eight hundred dollars per ounce of illicit cannabis 56 flower, [ten] twenty dollars per milligram of the total weight of anyS. 159 3 1 illicit cannabis edible product, [one] two hundred dollars per gram of 2 the total weight of any product containing illicit cannabis concentrate, 3 and [one] two thousand dollars per illicit cannabis plant, but not to 4 exceed [five hundred] one thousand dollars per ounce of illicit cannabis 5 flower, [twenty] forty dollars per milligram of the total weight of any 6 illicit cannabis edible product, [two] four hundred dollars per gram of 7 the total weight of any product containing illicit cannabis concentrate, 8 and [two] four thousand dollars per illicit cannabis plant. 9 (b) No enforcement action taken under this section shall be construed 10 to limit any other criminal or civil liability of anyone in possession 11 of illicit cannabis. 12 (c) The penalty imposed by this section shall not apply to persons 13 lawfully in possession of less than two ounces of adult-use cannabis or 14 ten grams of concentrated cannabis in accordance with the cannabis law 15 or penal law. 16 (d) The commissioner or his or her duly authorized representatives, or 17 the duly authorized representatives of the office of cannabis manage- 18 ment, shall seize any illicit cannabis found on any person engaged in 19 the cultivation, processing, distribution or sale of adult-use cannabis 20 products; or in any premises or vehicle where adult-use cannabis 21 products are cultivated, processed, distributed, placed, stored, sold or 22 offered for sale; or on any person in possession, control or occupancy 23 of such premises or vehicle. 24 § 3. The tax law is amended by adding a new section 496-d to read as 25 follows: 26 § 496-d. Enforcement. For purposes of the efficient administration of 27 the taxes imposed by this article, it is the intent of the legislature 28 that the cultivation, processing, distribution and sale of adult-use 29 cannabis products be deemed a heavily regulated industry, subject to 30 supervision by the commissioner and the office of cannabis management. 31 The commissioner or his or her duly authorized representatives, and the 32 duly authorized representatives of the office of cannabis management are 33 hereby authorized: (1) to conduct regulatory inspections in the same 34 manner as a regulatory inspection pursuant to article twenty of this 35 chapter of any person engaged in the cultivation, processing, distrib- 36 ution or sale of adult-use cannabis products, any premises or vehicle 37 where adult-use cannabis is cultivated, processed, distributed, placed, 38 stored, sold or offered for sale, and any person in possession, control 39 or occupancy of such premises or vehicle; (2) to examine the books, 40 papers, invoices and other records of any person engaged in the culti- 41 vation, processing, distribution or sale of adult-use cannabis products, 42 any premises or vehicle where adult-use cannabis products are culti- 43 vated, processed, distributed, placed, stored, sold or offered for sale 44 and any person in possession, control or occupancy of any premises where 45 adult-use cannabis products are placed, stored, sold or offered for 46 sale. Each such person is hereby directed and required upon demand to 47 give to the commissioner or his or her duly authorized representatives, 48 or the duly authorized representatives of the office of cannabis manage- 49 ment, the means, facilities and opportunity for such examinations. 50 § 4. The tax law is amended by adding a new section 1814-b to read as 51 follows: 52 § 1814-b. Penalties. Any person required to be registered pursuant to 53 article twenty-C of this chapter as a distributor of adult-use cannabis 54 products, or as a retail seller of adult-use cannabis products, who 55 sells adult-use cannabis products while not so registered, shall be 56 guilty of a class A misdemeanor. Any person who violates the provisionS. 159 4 1 of this section after having previously been convicted of a violation of 2 this section within the preceding five years shall be guilty of a class 3 E felony. For purposes of this section, the terms "adult-use cannabis 4 product" and "sale" shall have the same meaning as such terms are 5 defined in article twenty-C of this chapter. 6 § 5. Subdivision 1 of section 16 of the cannabis law is amended to 7 read as follows: 8 1. Any person who violates, disobeys or disregards any term or 9 provision of this chapter or of any lawful notice, order or regulation 10 pursuant thereto for which a civil or criminal penalty is not otherwise 11 expressly prescribed by law, shall be liable to the people of the state 12 for a civil penalty of [not to exceed five] up to fifty thousand dollars 13 for every such violation. 14 § 6. Subdivision 3 of section 222.00 of the penal law, as added by 15 chapter 92 of the laws of 2021, is amended to read as follows: 16 3. For the purposes of this article, "sell" shall mean to sell, trans- 17 fer title or possess or both, exchange or barter any commodity, object 18 or any thing of any type, rent, lease or license to use or consume 19 conditional or otherwise, in any manner or by any means whatsoever for a 20 consideration or any agreement therefor, or dispose of for compensation, 21 including through a membership program or through some other indirect 22 means. "Sell" shall not include the transfer of cannabis or concen- 23 trated cannabis between persons twenty-one years of age or older without 24 compensation in the quantities authorized in paragraph (b) of subdivi- 25 sion one of section 222.05 of this article. 26 § 7. This act shall take effect immediately.
