Bill Text: NY S01527 | 2019-2020 | General Assembly | Introduced


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 removing certain references to marihuana relating to forfeiture actions; 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; relates to the definition of smoking; 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; creates the New York state marihuana revenue fund, the New York state drug treatment public education fund, the New York state community grants reinvestment fund, and the marihuana microbusiness and marihuana license revolving loan fund; makes an appropriation therefor.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced) 2019-01-15 - REFERRED TO FINANCE [S01527 Detail]

Download: New_York-2019-S01527-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1527
                               2019-2020 Regular Sessions
                    IN SENATE
                                    January 15, 2019
                                       ___________
        Introduced by Sens. KRUEGER, BAILEY, COMRIE, GIANARIS, HOYLMAN, MONTGOM-
          ERY,  PARKER,  RAMOS,  RIVERA,  SEPULVEDA,  SERRANO  -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Finance
        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 public health law in relation to the  defi-
          nition  of  smoking;  to  amend the alcoholic beverage control law, in
          relation to providing for  the  licensure  of  persons  authorized  to
          produce,  process  and sell marihuana; to amend the state finance law,
          in relation to establishing the New York state marihuana revenue fund,
          the New York state drug treatment education  fund  and  the  New  York
          state  community  grants  reinvestment  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, the vehicle and traffic law,
          and the family court act in relation to making conforming changes;  to
          amend  the  alcoholic  beverage control law, in relation to alcohol or
          substance use disorder training awareness programs; to amend the state
          finance law, in relation to a revolving loan fund; 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 marihua-
          na; to repeal paragraph (f) of subdivision 2 of  section  850  of  the
          general business law relating to drug related paraphernalia; to repeal
          section  150.75  of  the criminal procedure law relating to appearance
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07592-01-9

        S. 1527                             2
          tickets for certain marihuana offenses; and  making  an  appropriation
          therefor
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     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    It  is  the intent of this act that no child shall be the subject of a
    34  child neglect or abuse investigation or proceeding  based  solely  on  a
    35  parent's alleged use of marihuana. A newborn child's positive toxicology
    36  result  for marihuana, is not sufficient on its own to support a finding
    37  of child neglect or abuse. Enactment of this act  shall  provide  suffi-
    38  cient  basis for New York state to favorably resolve open investigations
    39  and to amend and seal individuals' family court records and  records  of
    40  indicated  child  abuse  or  neglect  reports currently in the statewide
    41  central register of child abuse and maltreatment based solely on the use
    42  of marihuana or where the reporter of suspected abuse or neglect  was  a
    43  law  enforcement  agency or staff person and the report was based solely
    44  upon the presence of a child during a marihuana-related arrest.
    45    § 3. Section 3302 of the public health law, as added by chapter 878 of
    46  the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
    47  subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
    48  25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,
    49  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39

        S. 1527                             3
     1  and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
     2  subdivision 20, the opening paragraph of subdivision 22 and  subdivision
     3  29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
     4  amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
     5  vision  41 as added by section 6 of part A of chapter 447 of the laws of
     6  2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
     7  chapter 60 of the laws of 2014, is amended to read as follows:
     8    §  3302.  Definitions  of terms of general use in this article. Except
     9  where  different  meanings  are  expressly   specified   in   subsequent
    10  provisions of this article, the following terms have the following mean-
    11  ings:
    12    1.  "Addict" means a person who habitually uses a controlled substance
    13  for a non-legitimate or unlawful use, and who by reason of such  use  is
    14  dependent thereon.
    15    2.   "Administer"   means  the  direct  application  of  a  controlled
    16  substance, whether by injection, inhalation,  ingestion,  or  any  other
    17  means, to the body of a patient or research subject.
    18    3.  "Agent" means an authorized person who acts on behalf of or at the
    19  direction of a manufacturer, distributor, or dispenser. No person may be
    20  authorized to so act if under title  VIII  of  the  education  law  such
    21  person  would  not  be  permitted to engage in such conduct. It does not
    22  include a common or contract carrier, public warehouseman,  or  employee
    23  of  the  carrier  or  warehouseman  when  acting in the usual and lawful
    24  course of the carrier's or warehouseman's business.
    25    4. ["Concentrated Cannabis" means
    26    (a) the separated resin, whether crude or purified,  obtained  from  a
    27  plant of the genus Cannabis; or
    28    (b)  a  material,  preparation,  mixture,  compound or other substance
    29  which contains more than two and one-half percent by weight  of  delta-9
    30  tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
    31  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    32  terpene numbering system.
    33    5.] "Controlled substance" means a substance or substances  listed  in
    34  section thirty-three hundred six of this [chapter] title.
    35    [6.]  5.  "Commissioner"  means commissioner of health of the state of
    36  New York.
    37    [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
    38  attempted transfer from one person to another of a controlled substance,
    39  whether or not there is an agency relationship.
    40    [8.]  7.  "Department"  means the department of health of the state of
    41  New York.
    42    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    43  mate user or research subject by lawful means, including by means of the
    44  internet, and includes the packaging, labeling, or compounding necessary
    45  to prepare the substance for such delivery.
    46    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    47  ing by means of the internet, other than by administering or dispensing.
    48    [11.] 10. "Distributor" means a person who  distributes  a  controlled
    49  substance.
    50    [12.]  11.  "Diversion" means manufacture, possession, delivery or use
    51  of a controlled substance by a person or in a  manner  not  specifically
    52  authorized by law.
    53    [13.] 12. "Drug" means
    54    (a) substances recognized as drugs in the official United States Phar-
    55  macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
    56  official National Formulary, or any supplement to any of them;

        S. 1527                             4
     1    (b) substances intended for use in the  diagnosis,  cure,  mitigation,
     2  treatment, or prevention of disease in man or animals; and
     3    (c) substances (other than food) intended to affect the structure or a
     4  function  of  the  body of man or animal. It does not include devices or
     5  their components, parts, or accessories.
     6    [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
     7  United States Department of Justice, or its successor agency.
     8    [15.]  14. "Federal controlled substances act" means the Comprehensive
     9  Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
    10  any  act  or  acts  amendatory  or  supplemental  thereto or regulations
    11  promulgated thereunder.
    12    [16.] 15. "Federal registration number" means such number assigned  by
    13  the  Federal agency to any person authorized to manufacture, distribute,
    14  sell, dispense or administer controlled substances.
    15    [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
    16  repeated  use of any controlled substance for non-legitimate or unlawful
    17  use is in danger of becoming, dependent upon such substance.
    18    [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
    19  hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental
    20  hospital or similar facility approved and certified by the department as
    21  authorized to  obtain  controlled  substances  by  distribution  and  to
    22  dispense and administer such substances pursuant to the order of a prac-
    23  titioner.
    24    [19.]  18.  "License"  means  a  written  authorization  issued by the
    25  department or the New York  state  department  of  education  permitting
    26  persons  to  engage  in  a specified activity with respect to controlled
    27  substances.
    28    [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
    29  gation,   compounding,   cultivation,  conversion  or  processing  of  a
    30  controlled substance, either directly or  indirectly  or  by  extraction
    31  from substances of natural origin, or independently by means of chemical
    32  synthesis, or by a combination of extraction and chemical synthesis, and
    33  includes  any  packaging  or repackaging of the substance or labeling or
    34  relabeling of its container, except that this term does not include  the
    35  preparation,   compounding,   packaging  or  labeling  of  a  controlled
    36  substance:
    37    (a) by a practitioner as an incident to his administering or  dispens-
    38  ing  of  a  controlled substance in the course of his professional prac-
    39  tice; or
    40    (b) by a practitioner, or by his authorized  agent  under  his  super-
    41  vision, for the purpose of, or as an incident to, research, teaching, or
    42  chemical analysis and not for sale; or
    43    (c)  by  a pharmacist as an incident to his dispensing of a controlled
    44  substance in the course of his professional practice.
    45    [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
    46  whether  growing or not; the seeds thereof; the resin extracted from any
    47  part of the plant; and every compound,  manufacture,  salt,  derivative,
    48  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    49  include the mature stalks of the plant, fiber produced from the  stalks,
    50  oil  or cake made from the seeds of the plant, any other compound, manu-
    51  facture, salt, derivative, mixture, or preparation of the mature  stalks
    52  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    53  sterilized seed of the plant which is incapable of germination.
    54    22.] 20. "Narcotic drug" means any of the following, whether  produced
    55  directly  or  indirectly  by  extraction  from  substances  of vegetable

        S. 1527                             5
     1  origin, or independently by means of chemical synthesis, or by a  combi-
     2  nation of extraction and chemical synthesis:
     3    (a)  opium and opiate, and any salt, compound, derivative, or prepara-
     4  tion of opium or opiate;
     5    (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
     6  which  is  chemically equivalent or identical with any of the substances
     7  referred to in [subdivision] paragraph (a) of this subdivision, but  not
     8  including the isoquinoline alkaloids of opium;
     9    (c) opium poppy and poppy straw.
    10    [23.]  21. "Opiate" means any substance having an addiction-forming or
    11  addiction-sustaining liability similar to morphine or being  capable  of
    12  conversion  into a drug having addiction-forming or addiction-sustaining
    13  liability. It  does  not  include,  unless  specifically  designated  as
    14  controlled  under section [3306] thirty-three hundred six of this [arti-
    15  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
    16  its salts (dextromethorphan). It does include its racemic and  levorota-
    17  tory forms.
    18    [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
    19  somniferum L., except its seeds.
    20    [25.] 23. "Person" means individual, institution, corporation, govern-
    21  ment or governmental subdivision  or  agency,  business  trust,  estate,
    22  trust, partnership or association, or any other legal entity.
    23    [26.]  24. "Pharmacist" means any person licensed by the state depart-
    24  ment of education to practice pharmacy.
    25    [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
    26  York  state  board  of  pharmacy  and registered with the Federal agency
    27  pursuant to the federal controlled substances act.
    28    [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
    29  opium poppy, after mowing.
    30    [29.] 27. "Practitioner" means:
    31    A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
    32  gator, or other person licensed, or  otherwise  permitted  to  dispense,
    33  administer or conduct research with respect to a controlled substance in
    34  the  course  of  a  licensed  professional practice or research licensed
    35  pursuant to this article. Such person shall be deemed  a  "practitioner"
    36  only  as  to such substances, or conduct relating to such substances, as
    37  is permitted by his license, permit or otherwise permitted by law.
    38    [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
    39  prescription,  permitting an ultimate user lawfully to obtain controlled
    40  substances  from  any  person  authorized  by  law  to   dispense   such
    41  substances.
    42    [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
    43  prescription, an electronic prescription, an oral prescription[,] or  an
    44  out-of-state prescription[, or any one].
    45    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
    46  er, or offer or agree to do the same.
    47    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
    48  possesses a controlled substance for his own use or the use by a  member
    49  of  his  household  or  for an animal owned by him or in his custody. It
    50  shall also mean and include a person designated, by a practitioner on  a
    51  prescription, to obtain such substance on behalf of the patient for whom
    52  such substance is intended.
    53    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    54  cations facilities which comprise the worldwide network of networks that
    55  employ a set of industry standards and protocols, or any predecessor  or
    56  successor  protocol  to  such  protocol,  to exchange information of all

        S. 1527                             6
     1  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
     2  networks,  whether  private  or  public, used to transmit information by
     3  electronic means.
     4    [35.]  33.  "By  means  of  the  internet"  means  any sale, delivery,
     5  distribution, or dispensing of a  controlled  substance  that  uses  the
     6  internet,  is initiated by use of the internet or causes the internet to
     7  be used.
     8    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
     9  in the United States that sells, delivers or  dispenses,  or  offers  to
    10  sell,  deliver,  or  dispense,  a  controlled  substance by means of the
    11  internet.
    12    [37.] 35. "Electronic prescription" means a prescription  issued  with
    13  an  electronic  signature and transmitted by electronic means in accord-
    14  ance with regulations of the commissioner and the commissioner of educa-
    15  tion and consistent with federal requirements. A prescription  generated
    16  on an electronic system that is printed out or transmitted via facsimile
    17  is  not  considered  an  electronic  prescription  and  must be manually
    18  signed.
    19    [38.] 36. "Electronic" means of or relating to technology having elec-
    20  trical, digital, magnetic, wireless, optical, electromagnetic or similar
    21  capabilities. "Electronic" shall not include facsimile.
    22    [39.] 37.  "Electronic  record"  means  a  paperless  record  that  is
    23  created,  generated,  transmitted,  communicated,  received or stored by
    24  means of electronic equipment and includes the preservation,  retrieval,
    25  use  and  disposition in accordance with regulations of the commissioner
    26  and the commissioner of education and in compliance with federal law and
    27  regulations.
    28    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    29  process, attached to or logically associated with an  electronic  record
    30  and  executed or adopted by a person with the intent to sign the record,
    31  in accordance with regulations of the commissioner and the  commissioner
    32  of education.
    33    [41.]  39.  "Registry"  or  "prescription monitoring program registry"
    34  means the prescription monitoring program registry established  pursuant
    35  to section thirty-three hundred forty-three-a of this article.
    36    [42.]  40. "Compounding" means the combining, admixing, mixing, dilut-
    37  ing, pooling, reconstituting, or otherwise altering of a  drug  or  bulk
    38  drug  substance to create a drug with respect to an outsourcing facility
    39  under section 503B of the  federal  Food,  Drug  and  Cosmetic  Act  and
    40  further defined in this section.
    41    [43.] 41. "Outsourcing facility" means a facility that:
    42    (a)  is  engaged  in  the  compounding  of sterile drugs as defined in
    43  section sixty-eight hundred two of the education law;
    44    (b) is currently registered as an  outsourcing  facility  pursuant  to
    45  article one hundred thirty-seven of the education law; and
    46    (c)  complies  with  all  applicable requirements of federal and state
    47  law, including the Federal Food, Drug and Cosmetic Act.
    48    Notwithstanding any other provision of law to the  contrary,  when  an
    49  outsourcing  facility  distributes  or  dispenses any drug to any person
    50  pursuant to a prescription, such outsourcing facility shall be deemed to
    51  be providing pharmacy services and shall be subject to all  laws,  rules
    52  and regulations governing pharmacies and pharmacy services.
    53    §  4.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
    54  26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
    55  section  3306  of  the public health law, paragraphs 13, 14, 15, 16, 17,
    56  18, 19, 20, 21, 22, 23 and 24 as added by chapter 664  of  the  laws  of

        S. 1527                             7
     1  1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
     2  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
     3  laws of 2006, are amended to read as follows:
     4    (13) [Marihuana.
     5    (14)] Mescaline.
     6    [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
     7  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
     8    [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
     9  fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
    10  not, the seeds thereof, any extract from any part  of  such  plant,  and
    11  every  compound, manufacture, salts, derivative, mixture, or preparation
    12  of such plant, its seeds or extracts.
    13    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    14    [(18)] (17) N-methyl-3-piperidyl benzilate.
    15    [(19)] (18) Psilocybin.
    16    [(20)] (19) Psilocyn.
    17    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
    18  derived from the cannabis plant that are equivalents of  the  substances
    19  contained  in the plant, or in the resinous extractives of cannabis, sp.
    20  and/or synthetic substances, derivatives, and their isomers with similar
    21  chemical structure and pharmacological activity such as the following:
    22    [/\] delta 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
    23  isomers
    24    [/\]  delta  6  cis  or  trans tetrahydrocannabinol, and their optical
    25  isomers
    26    [/\] delta 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
    27  isomers  (since  nomenclature of these substances is not internationally
    28  standardized, compounds of these  structures,  regardless  of  numerical
    29  designation of atomic positions covered).
    30    [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
    31  names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
    32  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    33    [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
    34  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    35    [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
    36  names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
    37  phencyclidine, TPCP, TCP.
    38    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    39    [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
    40  N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
    41  MDE, MDEA.
    42    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    43  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    44  N-hydroxy MDA.
    45    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    46  names: TCPY.
    47    [(29)] (28)   Alpha-ethyltryptamine.   Some   trade  or  other  names:
    48  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    49  3- (2-aminobutyl) indole; Alpha-ET or AET.
    50    [(30)]  (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or other
    51  names: DOET.
    52    [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade  or  other
    53  names:   2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;  alpha-desmethyl
    54  DOB; 2C-B, Nexus.
    55    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    56  optical isomers, salts and salts of isomers.

        S. 1527                             8
     1    § 5. Section 3382 of the public health law, as added by chapter 878 of
     2  the laws of 1972, is amended to read as follows:
     3    §  3382. Growing of the plant known as Cannabis by unlicensed persons.
     4  A person who, without being licensed so to do under this article,  grows
     5  the  plant  of  the genus Cannabis or knowingly allows it to grow on his
     6  land without destroying the same, shall be guilty of a class A misdemea-
     7  nor, unless the person grows in  accordance  with  sections  221.05  and
     8  221.05-a of the penal law.
     9    §  6.  Paragraph  (d) of subdivision 3, subdivision 3-a and paragraphs
    10  (a) and (b) of subdivision 11 of section 1311 of the civil practice  law
    11  and  rules,  paragraph  (d)  of subdivision three and subdivision 3-a as
    12  added by chapter 655 of the laws of 1990 and paragraphs (a) and  (b)  of
    13  subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the
    14  laws of 2010, are amended to read as follows:
    15    (d) In a forfeiture action commenced by a claiming authority against a
    16  defendant, the following rebuttable presumption shall apply: all curren-
    17  cy  or negotiable instruments payable to the bearer shall be presumed to
    18  be the proceeds of a pre-conviction forfeiture crime when such  currency
    19  or  negotiable  instruments  are  (i)  found  in  close  proximity  to a
    20  controlled substance unlawfully possessed by the defendant in an  amount
    21  sufficient  to constitute a violation of section 220.18 or 220.21 of the
    22  penal law, or (ii) found  in  close  proximity  to  any  quantity  of  a
    23  controlled substance [or marihuana] unlawfully possessed by such defend-
    24  ant  in  a room, other than a public place, under circumstances evincing
    25  an intent to unlawfully mix, compound, distribute, package or  otherwise
    26  prepare for sale such controlled substance [or marihuana].
    27    3-a.  Conviction  of  a person in a criminal action upon an accusatory
    28  instrument which includes one or  more  of  the  felonies  specified  in
    29  subdivision  four-b  of section thirteen hundred ten of this article, of
    30  any felony other than such felonies, shall not preclude a defendant,  in
    31  any subsequent proceeding under this article where that conviction is at
    32  issue, from adducing evidence that the conduct underlying the conviction
    33  would  not  establish  the  elements of any of the felonies specified in
    34  such subdivision other than the one to which the criminal defendant pled
    35  guilty. If the defendant does adduce such evidence, the burden shall  be
    36  upon  the claiming authority to prove, by clear and convincing evidence,
    37  that the conduct underlying the criminal conviction would establish  the
    38  elements  of the felony specified in such subdivision. Nothing contained
    39  in this subdivision shall affect the validity of  a  settlement  of  any
    40  forfeiture action negotiated between the claiming authority and a crimi-
    41  nal defendant contemporaneously with the taking of a plea of guilty in a
    42  criminal  action to any felony defined in article two hundred twenty [or
    43  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    44  commit the same.
    45    (a) Any stipulation or settlement agreement between the parties  to  a
    46  forfeiture  action  shall  be filed with the clerk of the court in which
    47  the forfeiture action is pending. No stipulation or settlement agreement
    48  shall be accepted for filing unless it is accompanied  by  an  affidavit
    49  from  the  claiming  authority that written notice of the stipulation or
    50  settlement agreement, including the terms of such, has been given to the
    51  office of victim  services,  the  state  division  of  criminal  justice
    52  services[,  and in the case of a forfeiture based on a felony defined in
    53  article two hundred twenty or section 221.30 or 221.55 of the penal law,
    54  to the state division of substance abuse services].
    55    (b) No judgment or order of forfeiture shall be  accepted  for  filing
    56  unless  it  is  accompanied  by an affidavit from the claiming authority

        S. 1527                             9
     1  that written notice of judgment or order, including the terms  of  such,
     2  has  been  given to the office of victim services, the state division of
     3  criminal justice services[, and in the case of a forfeiture based  on  a
     4  felony defined in article two hundred twenty or section 221.30 or 221.55
     5  of the penal law, to the state division of substance abuse services].
     6    §  7.  Subdivision  1  of  section 3397-b of the public health law, as
     7  added by chapter 810 of the laws of 1980, is amended to read as follows:
     8    1. ["Marijuana"] "Marihuana" means [marijuana] marihuana as defined in
     9  [section thirty-three hundred two of this chapter]  subdivision  six  of
    10  section  220.00 of the penal law and shall also include tetrahydrocanna-
    11  binols or a chemical derivative of tetrahydrocannabinol.
    12    § 8. Section 114-a of the vehicle and traffic law, as added by chapter
    13  163 of the laws of 1973, is amended to read as follows:
    14    § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
    15  includes any substance listed in section thirty-three hundred six of the
    16  public  health law and marihuana and concentrated cannabis as defined in
    17  section 220.00 of the penal law.
    18    § 9. Subdivisions 5, 6 and 9 of  section  220.00  of  the  penal  law,
    19  subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
    20  6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
    21  amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
    22  subdivisions 21 and 22 are added to read as follows:
    23    5.  "Controlled  substance"  means any substance listed in schedule I,
    24  II, III, IV or V of section  thirty-three  hundred  six  of  the  public
    25  health  law other than marihuana, but including concentrated cannabis as
    26  defined in [paragraph (a) of subdivision four  of  section  thirty-three
    27  hundred two of such law] subdivision twenty-one of this section.
    28    6.  "Marihuana" means ["marihuana" or "concentrated cannabis" as those
    29  terms are defined in section thirty-three  hundred  two  of  the  public
    30  health  law] all parts of the plant of the genus Cannabis, whether grow-
    31  ing or not; the seeds thereof; the resin extracted from any part of  the
    32  plant;  and  every  compound, manufacture, salt, derivative, mixture, or
    33  preparation of the plant, its seeds or resin.  It does not  include  the
    34  mature  stalks of the plant, fiber produced from the stalks, oil or cake
    35  made from the seeds of the plant, any other compound, manufacture, salt,
    36  derivative, mixture, or preparation of the  mature  stalks  (except  the
    37  resin  extracted therefrom), fiber, oil, or cake, or the sterilized seed
    38  of the plant which is incapable of germination. It does not include  all
    39  parts of the plant Cannabis sativa L., whether growing or not, having no
    40  more than three-tenths of one percent tetrahydrocannabinol (THC).
    41    9.  "Hallucinogen"  means any controlled substance listed in [schedule
    42  I(d)] paragraphs (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
    43  (19),  (20) and (21) of subdivision (d) of schedule I of section thirty-
    44  three hundred six of the public health law.
    45    21. "Concentrated cannabis" means:
    46    (a) the separated resin, whether crude or purified,  obtained  from  a
    47  plant of the genus Cannabis; or
    48    (b)  a  material,  preparation,  mixture,  compound or other substance
    49  which contains more than three percent by weight of delta-9  tetrahydro-
    50  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
    51  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
    52  numbering system.
    53    22.  "Marihuana  products" means marihuana, concentrated cannabis, and
    54  marihuana-infused products containing concentrated marihuana or cannabis
    55  and other ingredients.

        S. 1527                            10
     1    § 10.  Subdivision 4 of section 220.06 of the penal law, as amended by
     2  chapter 537 of the laws of 1998, is amended to read as follows:
     3    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
     4  containing concentrated cannabis as defined in [paragraph (a) of  subdi-
     5  vision  four  of  section  thirty-three hundred two of the public health
     6  law] subdivision twenty-one of section 220.00 of this article  and  said
     7  preparations,  compounds,  mixtures  or  substances  are of an aggregate
     8  weight of one-fourth ounce or more; or
     9    § 11. Subdivision 10 of section 220.09 of the penal law, as amended by
    10  chapter 537 of the laws of 1998, is amended to read as follows:
    11    10. one  or  more  preparations,  compounds,  mixtures  or  substances
    12  containing  concentrated cannabis as defined in [paragraph (a) of subdi-
    13  vision four of section thirty-three hundred two  of  the  public  health
    14  law]  subdivision  twenty-one of section 220.00 of this article and said
    15  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    16  weight of one ounce or more; or
    17    §  12. Subdivision 3 of section 220.34 of the penal law, as amended by
    18  chapter 537 of the laws of 1998, is amended to read as follows:
    19    3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
    20  four  of  section  thirty-three  hundred  two  of the public health law]
    21  subdivision twenty-one of section 220.00 of this article; or
    22    § 13. Section 220.50 of the penal law, as amended by  chapter  627  of
    23  the laws of 1990, is amended to read as follows:
    24  § 220.50 Criminally using drug paraphernalia in the second degree.
    25    A  person  is  guilty  of  criminally  using drug paraphernalia in the
    26  second degree when he knowingly possesses or sells:
    27    1. Diluents, dilutants or adulterants, including but not  limited  to,
    28  any  of the following: quinine hydrochloride, mannitol, mannite, lactose
    29  or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
    30  under  circumstances  evincing  an intent to use, or under circumstances
    31  evincing knowledge that  some  person  intends  to  use,  the  same  for
    32  purposes  of  unlawfully mixing, compounding, or otherwise preparing any
    33  narcotic drug or stimulant, other than marihuana or concentrated  canna-
    34  bis; or
    35    2. Gelatine capsules, glassine envelopes, vials, capsules or any other
    36  material suitable for the packaging of individual quantities of narcotic
    37  drugs  or  stimulants  under circumstances evincing an intent to use, or
    38  under circumstances evincing knowledge that some person intends to  use,
    39  the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
    40  dispensing of any narcotic drug or stimulant, other  than  marihuana  or
    41  concentrated cannabis; or
    42    3. Scales and balances used or designed for the purpose of weighing or
    43  measuring  controlled substances, under circumstances evincing an intent
    44  to use, or under  circumstances  evincing  knowledge  that  some  person
    45  intends  to use, the same for purpose of unlawfully manufacturing, pack-
    46  aging or dispensing of any narcotic drug or stimulant, other than  mari-
    47  huana or concentrated cannabis.
    48    Criminally  using drug paraphernalia in the second degree is a class A
    49  misdemeanor.
    50    § 14.  Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
    51  and 221.40 of the penal law are REPEALED.
    52    § 15. The penal law is amended by adding two new sections  221.05  and
    53  221.05-a to read as follows:
    54  § 221.05 Personal use of marihuana.

        S. 1527                            11
     1    1.  Notwithstanding any other provision of this chapter, the following
     2  acts are lawful under state and local law for persons  twenty-one  years
     3  of age and older:
     4    (a) possessing, using, being under the influence, displaying, purchas-
     5  ing,  obtaining,  or transporting up to two pounds of marihuana and four
     6  and one-half ounces of concentrated cannabis;
     7    (b) transferring, without remuneration, to a person  twenty-one  years
     8  of  age  and  older  up to two pounds of marihuana and four and one-half
     9  ounces of concentrated cannabis;
    10    (c) possessing, planting, cultivating, harvesting, drying,  processing
    11  or transporting not more than six living marihuana plants and possessing
    12  the marihuana and concentrated cannabis produced by the plants;
    13    (d) smoking, ingesting or otherwise consuming marihuana products;
    14    (e)  possessing, using, displaying, purchasing, obtaining, manufactur-
    15  ing, transporting or giving away to persons twenty-one years of age  and
    16  older marihuana or concentrated cannabis paraphernalia; and
    17    (f)  assisting another person who is twenty-one years of age and older
    18  or allow property to be used in any of the acts described in  paragraphs
    19  (a) through (e) of this subdivision.
    20    2.  Paragraph  (e)  of  subdivision one of this section is intended to
    21  meet the requirements of subsection (f) of Section 863 of Title  twenty-
    22  one  of  the  United  States  Code (21 U.S.C. § 863 (f)) by authorizing,
    23  under state law, any person in compliance with this section to  manufac-
    24  ture, possess, or distribute marihuana paraphernalia.
    25    3.  Marihuana  products involved in any way with conduct deemed lawful
    26  by this section are not contraband nor subject to seizure or  forfeiture
    27  of  assets  under  article  four hundred eighty of this chapter, section
    28  thirteen hundred eleven of the civil practice law and  rules,  or  other
    29  applicable  law,  and  no  conduct  deemed  lawful by this section shall
    30  constitute the basis  for  approach,  search,  seizure,  arrest,  and/or
    31  detention.
    32    4. (a) Except as provided in subdivision five of this section, none of
    33  the  following  shall,  individually  or in combination with each other,
    34  constitute reasonable suspicion of a crime or be used as evidence in any
    35  criminal proceeding:
    36    (1) the odor of marihuana or of burnt marihuana;
    37    (2) the possession of or the  suspicion  of  possession  of  marihuana
    38  products;
    39    (3)  The  possession  of  multiple  containers  of  marihuana  without
    40  evidence of marihuana quantity in excess of sixteen  ounces  or  concen-
    41  trated cannabis quantity in excess of four and one-half ounces; or
    42    (4) the presence of cash or currency cannot be used as evidence in any
    43  cases involving unlicensed sale of marihuana.
    44    (b)  The  possession  of  not more than two pounds of marihuana or not
    45  more than four and one-half ounces of concentrated  cannabis  cannot  be
    46  used as evidence in any cases involving unlicensed sale of marihuana.
    47    5.  Subdivision  four  of  this  section  shall  not  apply when a law
    48  enforcement officer is investigating whether a person is operating or in
    49  physical control of a vehicle or watercraft while intoxicated, under the
    50  influence of, or impaired by alcohol or a drug or any combination there-
    51  of in violation of section eleven hundred ninety-two of the vehicle  and
    52  traffic law.
    53    6. Possession of greater than two pounds of marihuana and greater than
    54  four and one-half ounces of concentrated cannabis is a violation punish-
    55  able  by  a  fine  of  not more than one hundred twenty-five dollars per
    56  offense.

        S. 1527                            12
     1  § 221.05-a Personal cultivation of marihuana.
     2    1.  Personal  cultivation of marihuana under paragraph (c) of subdivi-
     3  sion one of section 221.05 of this article is subject to  the  following
     4  restrictions:
     5    (a)  a  person shall plant, cultivate, harvest, dry, or process plants
     6  in accordance with local ordinances, if any, adopted in accordance  with
     7  subdivision two of this section;
     8    (b)  the  living  plants  and  any marihuana produced by the plants in
     9  excess of two pounds are kept within the person's private residence,  or
    10  upon  the  grounds of that private residence (e.g., in an outdoor garden
    11  area), are in a locked space, and are  not  visible  by  normal  unaided
    12  vision from a public place; and
    13    (c)  not  more  than  six  living  plants  may be planted, cultivated,
    14  harvested, dried, or processed within a  single  private  residence,  or
    15  upon the grounds of that private residence, at one time.
    16    2.  (a) A town, city or village may enact and enforce reasonable regu-
    17  lations to reasonably regulate the actions and conduct in paragraph  (c)
    18  of  subdivision  one  of section 221.05 of this article, provided that a
    19  violation of such a regulation is only  subject  to  an  infraction  and
    20  fine.
    21    (b)  Notwithstanding  paragraph (a) of this subdivision, no town, city
    22  or village may completely prohibit persons engaging in the  actions  and
    23  conduct under paragraph (c) of subdivision one of section 221.05 of this
    24  article.
    25    3.  A  violation  of  subdivision  one  or  two  of  this section is a
    26  violation punishable by a fine of not more than one hundred  twenty-five
    27  dollars per offense.
    28    §  16.  Section  221.45 of the penal law, as amended by chapter 265 of
    29  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
    30  laws of 1995, is amended to read as follows:
    31  § 221.45 [Criminal] Unlicensed sale of marihuana in the third degree.
    32    A  person  is guilty of [criminal] unlicensed sale of marihuana in the
    33  third degree when he knowingly and unlawfully sells [one or more  prepa-
    34  rations,  compounds, mixtures or substances containing marihuana and the
    35  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    36  weight  of  more than twenty-five grams] with remuneration not more than
    37  two pounds of marihuana or not more than four  and  one-half  ounces  of
    38  concentrated  cannabis, not including the weight of any other ingredient
    39  combined with marihuana to  prepare  topical  or  oral  administrations,
    40  food, drink, or other product.
    41    [Criminal]  Unlicensed  sale  of  marihuana  in the third degree is [a
    42  class E felony] subject to the following:
    43    1. A violation punishable by a fine of not more than one hundred twen-
    44  ty-five dollars, for a first offense;
    45    2. A violation publishable by a fine of  not  more  than  two  hundred
    46  fifty dollars for a second offense;
    47    3.  A  class  B  misdemeanor  and a fine of not more than five hundred
    48  dollars for a third or subsequent offense.
    49    § 17. Section 221.50 of the penal law, as amended by  chapter  265  of
    50  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
    51  laws of 1995, is amended to read as follows:
    52  § 221.50 [Criminal] Unlicensed sale of marihuana in the second degree.
    53    A person twenty-one years of age and older  is  guilty  of  [criminal]
    54  unlicensed  sale of marihuana in the second degree when he knowingly and
    55  unlawfully sells  one  or  more  preparations,  compounds,  mixtures  or
    56  substances   containing   marihuana  and  the  preparations,  compounds,

        S. 1527                            13
     1  mixtures or substances are of an aggregate  weight  of  more  than  four
     2  ounces,  or  knowingly  and  unlawfully  sells one or more preparations,
     3  compounds, mixtures [or substances containing  marihuana]  to  a  person
     4  less than [eighteen] twenty-one years of age.
     5    [Criminal]  Unlicensed  sale  of  marihuana  in the second degree is a
     6  class [D] E felony.
     7    § 18. Section 221.55 of the penal law, as amended by  chapter  265  of
     8  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
     9  laws of 1995, is amended to read as follows:
    10  § 221.55 [Criminal] Unlicensed sale of marihuana in the first degree.
    11    A person is guilty of [criminal] unlicensed sale of marihuana  in  the
    12  first  degree  when  he  knowingly and unlawfully sells to a person less
    13  than twenty-one years  of  age  one  or  more  preparations,  compounds,
    14  mixtures  or  substances  containing  marihuana  and  the  preparations,
    15  compounds, mixtures or substances are of an  aggregate  weight  of  more
    16  than sixteen ounces.
    17    [Criminal] Unlicensed sale of marihuana in the first degree is a class
    18  [C] E felony.
    19    §  19. The penal law is amended by adding a new section 221.60 to read
    20  as follows:
    21  § 221.60 Licensing of marihuana production and distribution.
    22    The provisions of this article and of article two  hundred  twenty  of
    23  this  title  shall not apply to any person exempted from criminal penal-
    24  ties pursuant to the provisions of this chapter or possessing,  manufac-
    25  turing, transporting, distributing, selling or transferring marihuana or
    26  concentrated cannabis, or engaged in any other action that is in compli-
    27  ance with article eleven of the alcoholic beverage control law.
    28    §  20.  Subdivision  8  of section 1399-n of the public health law, as
    29  amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
    30  follows:
    31    8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    32  any other matter or  substance  which  contains  tobacco  or  marihuana;
    33  provided  that  it  does  not  include  the use of an electronic smoking
    34  device that creates an aerosol or vapor, unless local or state  statutes
    35  extend prohibitions on smoking to electronic smoking devices.
    36    §  21.  Section 2 of the alcoholic beverage control law, as amended by
    37  chapter 406 of the laws of 2014, is amended to read as follows:
    38    § 2. Policy of state and purpose of chapter. It is hereby declared  as
    39  the policy of the state that it is necessary to regulate and control the
    40  manufacture,  sale and distribution within the state of alcoholic bever-
    41  ages and marihuana products for the purpose of fostering  and  promoting
    42  temperance  in  their  consumption and respect for and obedience to law;
    43  for the primary purpose of promoting the health, welfare and  safety  of
    44  the  people  of  the  state,  promoting temperance in the consumption of
    45  alcoholic beverages and marihuana products; and, to the extent possible,
    46  supporting economic growth, job development, and the  state's  alcoholic
    47  beverage  production industries, marihuana production industries and its
    48  tourism and recreation industry; and which promotes the conservation and
    49  enhancement of state agricultural lands; provided that  such  activities
    50  do  not conflict with the primary regulatory objectives of this chapter.
    51  It is hereby declared that such policies will best  be  carried  out  by
    52  empowering the liquor authority of the state to determine whether public
    53  convenience  and  advantage will be promoted by the issuance of licenses
    54  to traffic in alcoholic beverages and marihuana products,  the  increase
    55  or  decrease in the number thereof and the location of premises licensed
    56  thereby, subject only to the right of judicial review  provided  for  in

        S. 1527                            14
     1  this chapter. It is the purpose of this chapter to carry out these poli-
     2  cies in the public interest.
     3    §  22.  Subdivisions  20-a,  20-b, 20-c, 20-d, 20-e, 20-f, and 20-g of
     4  section 3 of the alcoholic beverage control law are renumbered  subdivi-
     5  sions  20-j, 20-k, 20-l, 20-m, 20-n, 20-o, and 20-p and ten new subdivi-
     6  sions 7-e, 20-a, 20-b, 20-c, 20-d, 20-e, 20-f, 20-g, 20-h and  20-i  are
     7  added to read as follows:
     8    7-e.  "Concentrated  cannabis" means: (a) the separated resin, whether
     9  crude or purified, obtained from a plant of the genus Cannabis; or
    10    (b) a material, preparation,  mixture,  compound  or  other  substance
    11  which  contains more than three percent by weight of delta-9 tetrahydro-
    12  cannabinol, or its isomer, delta-8  dibenzopyran  numbering  system,  or
    13  delta-1  tetrahydrocannabinol  or  its  isomer,  delta 1 (6) monoterpene
    14  numbering system.
    15    20-a. "Marihuana" means all parts of the plant of the genus  Cannabis,
    16  whether  growing or not; the seeds thereof; the resin extracted from any
    17  part of the plant; and every compound,  manufacture,  salt,  derivative,
    18  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    19  include the mature stalks of the plant, fiber produced from the  stalks,
    20  oil  or cake made from the seeds of the plant, any other compound, manu-
    21  facture, salt, derivative, mixture, or preparation of the mature  stalks
    22  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    23  sterilized seed of the plant which is incapable of germination. It  does
    24  not  include  all parts of the plant Cannabis sativa L., whether growing
    25  or not, having no more than three-tenths of one percent tetrahydrocanna-
    26  binol (THC).
    27    20-b. "Marihuana consumer" means a person twenty-one years of  age  or
    28  older  who purchases marihuana or marihuana products for personal use by
    29  persons twenty-one years of age or older, but not for resale to others.
    30    20-c. "Marihuana processor" means a person licensed by the  bureau  to
    31  purchase  marihuana  and concentrated cannabis from marihuana producers,
    32  to process  marihuana,  concentrated  cannabis,  and  marihuana  infused
    33  products,  package  and label marihuana, concentrated cannabis and mari-
    34  huana infused products for sale in retail outlets, and  sell  marihuana,
    35  concentrated  cannabis  and  marihuana  infused products at wholesale to
    36  marihuana retailers.
    37    20-d. "Marihuana producer" means a person licensed by  the  bureau  to
    38  produce, process, and sell marihuana and concentrated cannabis at whole-
    39  sale  to  marihuana  processors, marihuana retailers, or other marihuana
    40  producers, but not to consumers.
    41    20-e. "Marihuana products" means marihuana, concentrated cannabis, and
    42  marihuana-infused products.
    43    20-f. "Marihuana-infused products" means products that  contain  mari-
    44  huana,  or  concentrated  cannabis  and  are  intended  for human use or
    45  consumption, such as, but not limited to,  edible  products,  ointments,
    46  and tinctures.
    47    20-g.  "Marihuana  retailer"  means a person licensed by the bureau to
    48  purchase  marihuana,  concentrated   cannabis,   and   marihuana-infused
    49  products  from  marihuana  producers  and  marihuana processors and sell
    50  marihuana, marihuana infused products, and concentrated  cannabis  in  a
    51  retail outlet.
    52    20-h.  "Marihuana retailer for on-premises consumption" means a person
    53  licensed by the bureau to purchase marihuana, concentrated cannabis, and
    54  marihuana infused products from marihuana producers,  marihuana  retail-
    55  ers, and marihuana processors and sell marihuana products for a customer
    56  to consume while the customer is within a facility.

        S. 1527                            15
     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

        S. 1527                            16
     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 of 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 [abuse]
    30  use disorder or cannabis use disorder, unless the court determines  that
    31  under  the  circumstances presented such an evaluation is not necessary,
    32  in which case the court shall state on the record  the  basis  for  such
    33  determination. Payment for such evaluation shall be made by such person.
    34  If,  based  on  such evaluation, a need for treatment is indicated, such
    35  person may choose to participate in a treatment  plan  developed  by  an
    36  agency  certified  or licensed by the office of alcoholism and substance
    37  abuse services. If such person  elects  to  participate  in  recommended
    38  treatment, the court shall order that payment of such fine and community
    39  service be suspended 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]  deter-
    45  mining  if such person meets the criteria for an alcohol use disorder or
    46  cannabis use disorder.
    47    (ii) The agency designated by the court  to  perform  such  evaluation
    48  shall  conduct the evaluation and return the results to the court within
    49  thirty days, subject to any state or federal confidentiality  law,  rule
    50  or  regulation  governing  the  confidentiality of alcohol and substance
    51  [abuse] use disorder treatment records.
    52    (iii) The office of alcoholism and substance abuse services shall make
    53  available to each supreme court law library in this  state,  or,  if  no
    54  supreme court law library is available in a certain county, to the coun-
    55  ty  court  law  library  of such county, a list of agencies certified to

        S. 1527                            17
     1  perform evaluations as required by subdivision (f) of section  19.07  of
     2  the mental hygiene law.
     3    (iv) All evaluations required under this subdivision shall be in writ-
     4  ing  and  the  person so evaluated or his or her counsel shall receive a
     5  copy of such evaluation prior to its use by the court.
     6    (v) A minor evaluated under this subdivision shall have, and shall  be
     7  informed by the court of, the right to obtain a second opinion regarding
     8  his  or  her  need  for  [alcoholism]  treatment  of an alcohol or other
     9  substance use disorder.
    10    4. A person violating the provisions of paragraph (b)  of  subdivision
    11  two  of this section shall be guilty of a violation punishable by a fine
    12  of not more than one hundred dollars, and/or an  appropriate  amount  of
    13  community service not to exceed thirty hours. In addition, the court may
    14  order completion of an alcohol or substance use disorder training aware-
    15  ness  program  established  pursuant  to  subdivision  twelve of section
    16  seventeen of this chapter where such program is located within a reason-
    17  ably close proximity to the locality in which the offender  is  employed
    18  or resides.
    19    5. No determination of guilt pursuant to this section shall operate as
    20  a  disqualification  of  any  such  person  subsequently  to hold public
    21  office, public employment, or as a forfeiture of any right or  privilege
    22  or  to  receive  any  license  granted  by public authority; and no such
    23  person shall be denominated a criminal by reason of such determination.
    24    6. In addition to the  penalties  otherwise  provided  in  subdivision
    25  three of this section, if a determination is made sustaining a charge of
    26  illegally  purchasing  or  attempting to illegally purchase an alcoholic
    27  beverage or marihuana products, the  court  may  suspend  such  person's
    28  license  to  drive  a  motor  vehicle and the privilege of an unlicensed
    29  person of obtaining such license, in accordance with the  following  and
    30  for  the  following  periods, if it is found that a driver's license was
    31  used for the purpose of such illegal purchase or  attempt  to  illegally
    32  purchase;  provided,  however, that where a person is sentenced pursuant
    33  to paragraph (b) or (c) of subdivision three of this section, the  court
    34  shall  impose  such  license  suspension  if it is found that a driver's
    35  license was used for the purpose of such illegal purchase or attempt  to
    36  illegally purchase:
    37    (a)  For a first violation of paragraph (a) of subdivision two of this
    38  section, a three month suspension.
    39    (b) For a second violation of paragraph (a) of subdivision two of this
    40  section, a six month suspension.
    41    (c) For a third or subsequent violation of paragraph (a)  of  subdivi-
    42  sion  two of this section, a suspension for one year or until the holder
    43  reaches the age of twenty-one, whichever is the greater period of time.
    44    Such person may thereafter apply for and be issued  a  restricted  use
    45  license in accordance with the provisions of section five hundred thirty
    46  of the vehicle and traffic law.
    47    7.  (a)  In  any  proceeding  pursuant  to  subdivision one of section
    48  sixty-five of this article, it shall be an affirmative defense that such
    49  person had produced a driver's license or non-driver identification card
    50  apparently issued by a governmental entity, successfully  completed  the
    51  transaction  scan, and that the alcoholic beverage or marihuana products
    52  had been sold, delivered or given to such person in reasonable  reliance
    53  upon  such identification and transaction scan. In evaluating the appli-
    54  cability of such affirmative defense, the liquor  authority  shall  take
    55  into  consideration  any  written  policy adopted and implemented by the
    56  seller to carry out the provisions of this chapter. Use of a transaction

        S. 1527                            18
     1  scan shall not excuse any licensee  under  this  chapter,  or  agent  or
     2  employee  of  such  licensee,  from the exercise of reasonable diligence
     3  otherwise  required  by  this   section.   Notwithstanding   the   above
     4  provisions,  any such affirmative defense shall not be applicable in any
     5  other civil or criminal proceeding, or in any other forum.
     6    (b) A licensee or agent or employee of a licensee  may  electronically
     7  or  mechanically  record and maintain only the information from a trans-
     8  action scan necessary to effectuate the purposes of this  section.  Such
     9  information  shall  be  limited to the following: (i) name, (ii) date of
    10  birth, (iii) driver's license or non-driver identification  number,  and
    11  (iv) expiration date. The liquor authority and the state commissioner of
    12  motor  vehicles  shall  jointly  promulgate  any regulation necessary to
    13  govern the recording and maintenance of  these  records  by  a  licensee
    14  under  this chapter. The liquor authority and the commissioner of health
    15  shall jointly promulgate any regulations  necessary  to  ensure  quality
    16  control in the use of transaction scan devices.
    17    8. A licensee or agent or employee of such licensee shall only use the
    18  information  recorded and maintained through the use of such devices for
    19  the purposes contained in paragraph (a) of  subdivision  seven  of  this
    20  section,  and  shall only use such devices for the purposes contained in
    21  subdivision two of this section. No licensee or agent or employee  of  a
    22  licensee  shall  resell  or  disseminate the information recorded during
    23  such scan to any third person. Such prohibited resale  or  dissemination
    24  includes,  but  is  not limited to, any advertising, marketing or promo-
    25  tional activities. Notwithstanding  the  restrictions  imposed  by  this
    26  subdivision,  such  records  may be released pursuant to a court ordered
    27  subpoena or pursuant to any other statute that  specifically  authorizes
    28  the  release  of  such  information.  Each violation of this subdivision
    29  shall be punishable by a civil penalty of not  more  than  one  thousand
    30  dollars.
    31    §  24. Section 65-c of the alcoholic beverage control law, as added by
    32  chapter 592 of the laws of 1989,  paragraph  (a)  of  subdivision  2  as
    33  amended  by chapter 409 of the laws of 2016 and subdivision 3 as amended
    34  by chapter 137 of the laws of 2001, is amended to read as follows:
    35    § 65-c. Unlawful possession of  an  alcoholic  beverage  or  marihuana
    36  product  with  the intent to consume by persons under the age of twenty-
    37  one years. 1. Except as hereinafter provided, no person under the age of
    38  twenty-one years shall possess any alcoholic beverage or marihuana prod-
    39  uct, as defined in this chapter, with the intent to consume such  bever-
    40  age or marihuana product.
    41    2. A person under the age of twenty-one years may possess any alcohol-
    42  ic beverage or marihuana product with intent to consume if the alcoholic
    43  beverage or marihuana product is given:
    44    (a)  to  a  person who is a student in a curriculum licensed or regis-
    45  tered by the state education department and the student is  required  to
    46  taste  or  imbibe alcoholic beverages or marihuana products in on-campus
    47  or off-campus courses which are  a  part  of  the  required  curriculum,
    48  provided  such  alcoholic  beverages or marihuana products are used only
    49  for instructional purposes  during  class  conducted  pursuant  to  such
    50  curriculum; or
    51    (b)  to  the  person  under  twenty-one  years of age by that person's
    52  parent or guardian.
    53    3. Any person who unlawfully possesses an alcoholic beverage or  mari-
    54  huana product with intent to consume may be summoned before and examined
    55  by  a  court having jurisdiction of that charge; provided, however, that
    56  nothing contained herein shall authorize, or be construed to  authorize,

        S. 1527                            19
     1  a  peace  officer as defined in subdivision thirty-three of section 1.20
     2  of the criminal procedure law or a police officer as defined in subdivi-
     3  sion thirty-four of section 1.20 of such law  to  arrest  a  person  who
     4  unlawfully  possesses  an  alcoholic  beverage or marihuana product with
     5  intent to consume. If a determination is made sustaining such charge the
     6  court may impose a fine not exceeding fifty dollars and/or completion of
     7  an alcohol or drug awareness program  established  pursuant  to  section
     8  19.25 of the mental hygiene law and/or an appropriate amount of communi-
     9  ty service not to exceed thirty hours.
    10    4.  No  such  determination shall operate as a disqualification of any
    11  such person subsequently to hold public office, public employment, or as
    12  a forfeiture of any right or privilege or to receive any license granted
    13  by public authority; and no such person shall be denominated a  criminal
    14  by  reason of such determination, nor shall such determination be deemed
    15  a conviction.
    16    5. Whenever a peace officer as defined in subdivision thirty-three  of
    17  section  1.20 of the criminal procedure law or police officer as defined
    18  in subdivision thirty-four of section 1.20 of the criminal procedure law
    19  shall  observe  a  person  under  twenty-one  years  of  age  openly  in
    20  possession  of  an alcoholic beverage or marihuana product as defined in
    21  this chapter, with the intent to consume such  beverage  or  product  in
    22  violation  of this section, said officer may seize the beverage or prod-
    23  uct, and shall deliver it to the custody of his or her department.
    24    6. Any alcoholic beverage or marihuana product seized in violation  of
    25  this  section  is  hereby  declared a nuisance. The official to whom the
    26  beverage or product has been delivered shall, no earlier than three days
    27  following the return date for initial appearance on the summons, dispose
    28  of or destroy the alcoholic beverage  or  marihuana  product  seized  or
    29  cause  it to be disposed of or destroyed.  Any person claiming ownership
    30  of an alcoholic beverage or marihuana product seized under this  section
    31  may,  on  the initial return date of the summons or earlier on five days
    32  notice to the official or department in possession of  the  beverage  or
    33  product,  apply  to the court for an order preventing the destruction or
    34  disposal of the alcoholic  beverage  or  marihuana  product  seized  and
    35  ordering  the  return  of that beverage or product.  The court may order
    36  the beverage or product returned if it is determined that return of  the
    37  beverage  or  product  would  be  in the interest of justice or that the
    38  beverage or product was improperly seized.
    39    § 25. The alcoholic beverage control law is amended by  adding  a  new
    40  section 65-e to read as follows:
    41    § 65-e. Restrictions on personal consumption of marihuana. 1.  Nothing
    42  in  sections  221.05 and 221.05-a of the penal law shall be construed to
    43  permit any person to:
    44    (a) smoke marihuana in public;
    45    (b) smoke marihuana products in a location where  smoking  tobacco  is
    46  prohibited  pursuant  to  section  thirteen hundred ninety-nine-o of the
    47  public health law;
    48    (c) possess, smoke or ingest marihuana products in or upon the grounds
    49  of any school property used for school purposes which  is  owned  by  or
    50  leased to any elementary or secondary school or school board while chil-
    51  dren are present; or
    52    (d)  smoke  or  ingest  marihuana  products while driving, operating a
    53  motor vehicle, boat, vessel, aircraft, or other vehicle used for  trans-
    54  portation.
    55    2. For purposes of this section:

        S. 1527                            20
     1    (a)  "Smoke"  means  to  inhale, exhale, burn, or carry any lighted or
     2  heated device or pipe, or any  other  lighted  or  heated  marihuana  or
     3  concentrated  cannabis  product intended for inhalation, whether natural
     4  or synthetic, in any manner or in any form.
     5    (b)  "Smoke"  does not include the use of an electronic smoking device
     6  that creates an aerosol or vapor, unless local or state statutes  extend
     7  prohibitions on smoking to electronic smoking devices.
     8    3.  Violations of the restrictions under this section are subject to a
     9  fine not exceeding twenty-five  dollars  or  an  appropriate  amount  of
    10  community service not to exceed twenty hours.
    11    § 26. Section 140 of the alcoholic beverage control law, as amended by
    12  chapter 810 of the laws of 1981, is amended to read as follows:
    13    § 140. Applicability  of chapter before local option.  Until such time
    14  as it shall become unlawful to sell  alcoholic  beverages  or  marihuana
    15  products  in  any town or city by the vote of the voters in such town or
    16  city in the manner provided in this article, all of  the  provisions  of
    17  this chapter shall apply throughout the entire state. This article shall
    18  not  apply  to the Whiteface mountain ski center, owned by the state and
    19  located in the town of Wilmington, county of Essex.
    20    § 27. Section 141 of the alcoholic beverage control law, as amended by
    21  chapter 319 of the laws of 2007, is amended to read as follows:
    22    § 141. Local option for towns. 1. Not less than sixty  days  nor  more
    23  than  seventy-five days before the general election in any town at which
    24  the submission of the questions hereinafter stated is authorized by this
    25  article, a petition signed by electors of the town to a number amounting
    26  to twenty-five per centum of the votes cast in the town for governor  at
    27  the  then  last  preceding  gubernatorial  election, acknowledged by the
    28  signers or authenticated by witnesses as provided in the election law in
    29  respect of a nominating petition,  requesting  the  submission  at  such
    30  election  to  the  electors  of the town of one or more of the following
    31  questions, may be filed with the town clerk:
    32    Question 1. Tavern alcoholic  beverage  license.  Shall  a  person  be
    33  allowed  to  obtain a license to operate a tavern with a limited-service
    34  menu (sandwiches, salads, soups, etc.) which permits the tavern operator
    35  to sell alcoholic beverages for a customer to drink while  the  customer
    36  is  within the tavern. In addition, unopened containers of beer (such as
    37  six-packs and kegs) may be sold "to go" for the  customer  to  open  and
    38  drink at another location (such as, for example, at his home)?
    39    Question  2. Restaurant alcoholic beverage license. Shall the operator
    40  of a full-service restaurant  be  allowed  to  obtain  a  license  which
    41  permits  the  restaurant  operator  to  sell  alcoholic  beverages for a
    42  customer to drink while the customer is within the restaurant. In  addi-
    43  tion,  unopened  containers  of beer (such as six-packs and kegs) may be
    44  sold "to go" for the customer to open  and  drink  at  another  location
    45  (such as, for example, at his home)?
    46    Question  3.  Year-round  hotel  alcoholic beverage license. Shall the
    47  operator of a year-round hotel with a full-service restaurant be allowed
    48  to obtain a license which permits the year-round hotel to sell alcoholic
    49  beverages for a customer to drink  while  the  customer  is  within  the
    50  hotel.  In  addition, unopened containers of beer (such as six-packs and
    51  kegs) may be sold "to go" for the customer to open and drink at  another
    52  location (such as, for example, at his home)?
    53    Question  4. Summer hotel alcoholic beverage license. Shall the opera-
    54  tor of a summer hotel with a full-service restaurant, open for  business
    55  only  within  the  period from May first to October thirty-first in each
    56  year, be allowed to obtain a license which permits the summer  hotel  to

        S. 1527                            21
     1  sell  alcoholic  beverages for a customer to drink while the customer is
     2  within the hotel. In addition, unopened  containers  of  beer  (such  as
     3  six-packs  and  kegs)  may  be sold "to go" for the customer to open and
     4  drink at another location (such as, for example, at his home)?
     5    Question  5.  Retail  package  liquor  or  wine store license. Shall a
     6  person be allowed to obtain  a  license  to  operate  a  retail  package
     7  liquor-and-wine  or  wine-without-liquor store, to sell "to go" unopened
     8  bottles of liquor or wine to a customer to be taken from the  store  for
     9  the  customer  to open and drink at another location (such as, for exam-
    10  ple, at his home)?
    11    Question 6. Off-premises beer and wine cooler license. Shall the oper-
    12  ator of a grocery store, drugstore  or  supply  ship  operating  in  the
    13  harbors  of  Lake  Erie be allowed to obtain a license which permits the
    14  operator to sell "to go" unopened containers of beer (such as  six-packs
    15  and  kegs)  and wine coolers with not more than 6% alcohol to a customer
    16  to be taken from the store for the customer to open and drink at another
    17  location (such as, for example, at his home)?
    18    Question 7.  Baseball  park,  racetrack,  athletic  field  or  stadium
    19  license.    Shall  a person be allowed to obtain a license which permits
    20  the sale of beer for a patron's consumption while the patron is within a
    21  baseball park, racetrack, or  other  athletic  field  or  stadium  where
    22  admission fees are charged?
    23    Question  8.  Marihuana retailer license. Shall a person be allowed to
    24  obtain a license to operate a retail marihuana store, to  sell  unopened
    25  marihuana  products  to  a  customer  to be taken from the store for the
    26  customer to open and consume at another location (such as, for  example,
    27  at his home)?
    28    Question 9. On-premises marihuana retailer licenses. Shall a person be
    29  allowed  to  obtain a license to operate a facility where the service of
    30  food is only incidental and permits the facility operator to sell  mari-
    31  huana  products  for  a customer to consume while the customer is within
    32  the facility?
    33    2. Upon the due filing of such petition complying with  the  foregoing
    34  provisions, such questions shall be submitted in accordance therewith.
    35    3.  The  town  clerk  shall,  within five days from the filing of such
    36  petition in his office, prepare and file in the office of the  board  of
    37  elections,  as  defined  by the election law, of the county, a certified
    38  copy of such petition. Such questions may be submitted only at the  time
    39  of  a  general election. At least ten days before such general election,
    40  the board of elections shall cause to be printed and posted in at  least
    41  four  public  places  in such town, a notice of the fact that all of the
    42  local option questions will be voted on at such  general  election;  and
    43  the  said  notice  shall also be published at least five days before the
    44  vote is to be taken once in a newspaper published in the county in which
    45  such town is situated, which shall be a newspaper published in the town,
    46  if there be one. Whenever such questions are to be submitted  under  the
    47  provisions of this article the board of elections shall cause the proper
    48  ballot  labels  to  be printed and placed on all voting machines used in
    49  the town in which such questions  are  to  be  submitted,  in  the  form
    50  prescribed by the election law in respect of other propositions or ques-
    51  tions,  upon  the  face of which shall be printed in full the said ques-
    52  tions. Any elector qualified to vote for state officers shall  be  enti-
    53  tled  to  vote upon such local option questions. As soon as the election
    54  shall be held, a return of the votes cast and counted shall be  made  as
    55  provided by law and the returns canvassed by the inspectors of election.
    56  If  a  majority of the votes cast shall be in the negative on all or any

        S. 1527                            22
     1  of the questions, no person shall, after such election,  sell  alcoholic
     2  beverages or marihuana products in such town contrary to such vote or to
     3  the  provisions  of  this chapter; provided, however, that the result of
     4  such vote shall not shorten the term for which any license may have been
     5  lawfully  issued under this chapter or affect the rights of the licensee
     6  thereunder; and no person shall after such vote apply for or  receive  a
     7  license  to  sell alcoholic beverages or marihuana products at retail in
     8  such town contrary to such vote, until,  by  referendum  as  hereinafter
     9  provided for, such sale shall again become lawful.
    10    §  28.  Subdivision 3 of section 142 of the alcoholic beverage control
    11  law is amended to read as follows:
    12    3. If a majority of the votes cast shall be in the negative on any  or
    13  all  of  the questions, no person shall, after such election, sell alco-
    14  holic beverages or marihuana products in such city contrary to such vote
    15  or to the provisions of this chapter; provided, however, that the result
    16  of such vote shall not shorten the term for which any license  may  have
    17  been  lawfully  issued  under  this  chapter or affect the rights of the
    18  licensee thereunder; and no person shall after such vote  apply  for  or
    19  receive  a  license to sell alcoholic beverages or marihuana products at
    20  retail in such city contrary to such vote, until, by referendum as here-
    21  inafter provided for, such sale shall again become lawful.
    22    § 29. Subdivision 2 of section 147 of the alcoholic  beverage  control
    23  law is amended to read as follows:
    24    2.  If  at  the time of any subsequent submission of such questions it
    25  shall be lawful to sell alcoholic beverages or marihuana products and  a
    26  majority  of  the votes cast shall be in the negative on such questions,
    27  then all of the provisions of  this  article  applicable  thereto  shall
    28  become effective.
    29    §  30. Article 11 and sections 160, 161, 162, 163 and 164 of the alco-
    30  holic beverage control law, article 11 and sections 160,  161,  162  and
    31  163  as  renumbered  by  chapter 725 of the laws of 1954, are renumbered
    32  article 12 and sections 200, 201, 202, 203, and 204.
    33    § 31. The alcoholic beverage control law is amended by  adding  a  new
    34  article 11 to read as follows:
    35                                 ARTICLE 11
    36                      PROVISIONS RELATING TO MARIHUANA
    37  Section 165. Definitions.
    38          166. Bureau of marihuana policy.
    39          167. Administration of the bureau of marihuana policy.
    40          168. Authority to promulgate rules and regulations.
    41          169. Licenses issued.
    42          170. Licensing limits.
    43          171. Actions taken pursuant to a valid license are lawful.
    44          172. General prohibitions and restrictions.
    45          173. Certain  officials  not to be interested in the manufacture
    46                 or sale of marihuana.
    47          174. Provisions governing initial rulemaking.
    48          175. Provisions governing marihuana producers.
    49          176. Provisions governing processors.
    50          177. Provisions governing marihuana retailers.
    51          178. Provisions   governing   marihuana   on-site    consumption
    52                 licenses.
    53          179. Advertising and forms for the issuance of licenses.
    54          180. Packaging of marihuana products.
    55          181. Labeling of marihuana products.
    56          182. Seed to sale tracking.

        S. 1527                            23
     1          183. Renewals of licenses and permits.
     2          184. Information to be provided by applicants.
     3          185. Notification to towns, cities or villages.
     4          186. Licenses, publication, general provisions.
     5          187. Revocation of licenses for cause.
     6          188. Procedure for revocation or cancellation.
     7          189. Decisions  of  the bureau of marihuana policy and review by
     8                 the courts.
     9          190. Minority and women-owned businesses and incubator program.
    10          191. Disposition of moneys received for license fees.
    11          192. Persons forbidden to traffic in marihuana.
    12          193. Surrender of license; notice to police officials.
    13          194. Protections for the use of marihuana.
    14          195. Discrimination protections for  the  use  of  marihuana  or
    15                 medical marihuana.
    16          196. Employment protections.
    17          197. Protections for persons under state supervision.
    18          198. Professional and medical record keeping.
    19    §  165. Definitions. Whenever used in this chapter, unless the context
    20  requires otherwise:
    21    1. "Applicant" means an owner applying for a license pursuant to  this
    22  article.
    23    2."Bureau" means the bureau of marihuana policy within the authority.
    24    3.  "Commercial  marihuana activity" means the production, processing,
    25  possession, storing, laboratory testing, packaging, labeling,  transpor-
    26  tation,  delivery,  or  sale  of  marihuana  and  marihuana  products as
    27  provided for in this article.
    28    4. "Customer" means a natural person twenty-one years of age or older.
    29    5. "Delivery" means a licensee  that  delivers  retail  marihuana  and
    30  marihuana  products  to  customers. Retailer licensees and microbusiness
    31  licensees are  permitted  to  deliver  retail  marihuana  and  marihuana
    32  products  to  customers  without  obtaining  an  additional  distributor
    33  license.
    34    6. "Distribution" means the procurement, sale, and transport of  mari-
    35  huana  and marihuana products between entities licensed pursuant to this
    36  article.
    37    7. "Distributor" means a licensee for the  distribution  of  marihuana
    38  and  marihuana products between entities licensed pursuant to this arti-
    39  cle.  Producer licensees, processor licensees, and microbusiness  licen-
    40  sees  are  permitted  to  distribute  marihuana  and  marihuana products
    41  between entities licensed pursuant to this article without obtaining  an
    42  additional distributor license.
    43    8.  "Labeling"  means  any label or other written, printed, or graphic
    44  matter upon a marihuana product, or upon its container  or  wrapper,  or
    45  that accompanies any marihuana product.
    46    9.  "License"  means  a  state license issued under this article. Each
    47  license issued pursuant to this article corresponds to a single place of
    48  business.
    49    10. "Licensee" means any person or entity holding a license under this
    50  article.
    51    11. "Marihuana" means all parts of the plant of  the  genus  cannabis,
    52  whether  growing or not; the seeds thereof; the resin extracted from any
    53  part of the plant; and every compound,  manufacture,  salt,  derivative,
    54  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    55  include the mature stalks of the plant, fiber produced from the  stalks,
    56  oil  or cake made from the seeds of the plant, any other compound, manu-

        S. 1527                            24
     1  facture, salt, derivative, mixture, or preparation of the mature  stalks
     2  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
     3  sterilized seed of the plant which is incapable of germination. It  does
     4  not  include  all parts of the plant Cannabis Sativa I., whether growing
     5  or not, having no more than three-tenths of one percent tetrahydrocanna-
     6  binol (THC).
     7    12. "Marihuana products" means marihuana, concentrated  cannabis,  and
     8  marihuana-infused products.
     9    13.  "Marihuana-infused products" means products that contain marihua-
    10  na, or concentrated cannabis and are intended for human use or  consump-
    11  tion, such as, but not limited to, edible products, ointments, and tinc-
    12  tures.
    13    14.  "Microbusiness"  means  a  licensee  that  may act as a marihuana
    14  producer for the cultivation of marihuana on an area less than ten thou-
    15  sand square feet, a marihuana processor, and a marihuana retailer  under
    16  this  article,  provided  such  licensee  complies with all requirements
    17  imposed by this article on licensed producers, processors, and retailers
    18  to the extent the licensee engages in such activities. A "microbusiness"
    19  may distribute marihuana and marihuana products to other licensed  mari-
    20  huana  businesses  and  may  deliver marihuana and marihuana products to
    21  customers.
    22    15. "Nursery" means a licensee that  produces  only  clones,  immature
    23  plants, seeds, and other agricultural products used specifically for the
    24  planting, propagation, and cultivation of marihuana.
    25    16.  "Onsite consumption" means a marihuana retail licensee or a mari-
    26  huana microbusiness that permits the consumption of marihuana and  mari-
    27  huana products at the licensee's place of business.
    28    17.  "Owner"  means an individual with an aggregate ownership interest
    29  of twenty percent or more in a marihuana business licensed  pursuant  to
    30  this article, unless such interest is solely a security, lien, or encum-
    31  brance,  or  an  individual that will be participating in the direction,
    32  control, or management of the licensed marihuana business.
    33    18. "Package" means any container or receptacle used for holding mari-
    34  huana or marihuana products.
    35    19. "Processor" means a licensee  that  compounds,  blends,  extracts,
    36  infuses,  or otherwise makes or prepares marihuana products, but not the
    37  production of the  marihuana  contained  in  the  marihuana  product.  A
    38  "processor"  may  also  distribute  marihuana  and marihuana products to
    39  other licensed marihuana businesses.
    40    20. "Producer" means a licensee that plants, grows,  harvests,  dries,
    41  cures,  grades,  or  trims  marihuana.  A "producer" may also distribute
    42  marihuana to other licensed marihuana businesses.
    43    21. "Retailer" means a licensee  that  sells  marihuana  or  marihuana
    44  products  directly  to customers. A "retailer" may deliver marihuana and
    45  marihuana products to customers.
    46    22. "Testing facility" means a licensee that tests marihuana and mari-
    47  huana products.
    48    § 166. Bureau of marihuana policy. There is hereby established in  the
    49  authority  a  bureau  of  marihuana  policy. The bureau shall consist of
    50  three members. The members of the  bureau  shall  be  appointed  by  the
    51  governor by and with the advice and consent of the senate. Not more than
    52  two  members of the bureau shall belong to the same political party. The
    53  chairman of the bureau of  marihuana  policy  heretofore  appointed  and
    54  designated by the governor and the remaining members of such board here-
    55  tofore appointed by the governor shall continue to serve as chairman and
    56  members  of  the bureau until the expiration of the respective terms for

        S. 1527                            25
     1  which they were appointed. Upon the expiration of such respective  terms
     2  the  successors of such chairman and members shall be appointed to serve
     3  for a term of three years each and  until  their  successors  have  been
     4  appointed  and  qualified.  The commissioners shall, when performing the
     5  work of the bureau, be compensated  at  a  rate  of  two  hundred  sixty
     6  dollars  per  day,  together  with an allowance for actual and necessary
     7  expenses incurred in the discharge of their duties.
     8    § 167. Administration of the bureau  of  marihuana  policy.    1.  The
     9  bureau  established  in  section  one  hundred sixty-six of this article
    10  shall heretofore have the  power,  duty,  purpose,  responsibility,  and
    11  jurisdiction  to  regulate  commercial marihuana activity as provided in
    12  the Marihuana Regulation and Taxation Act.
    13    2. The bureau shall have the exclusive  authority  to  create,  issue,
    14  renew,  discipline, suspend, or revoke licenses for commercial marihuana
    15  activities in accordance with the state administrative procedure act.
    16    (a) The bureau shall consult with the department  of  agriculture  and
    17  markets  regarding  rules, regulations, and licenses for the cultivation
    18  of marihuana.
    19    (b) The bureau shall notify the public  of  all  licensing  rules  and
    20  regulations  promulgated  pursuant to the Marihuana Regulation and Taxa-
    21  tion Act, which shall include instructional materials. In addition,  the
    22  bureau  shall  hold public forums in all regions of the state, as deter-
    23  mined by the department of economic  development,  to  help  the  public
    24  understand and navigate the licensing process.
    25    (c)  The  bureau  shall begin issuing licenses not later than eighteen
    26  months following the effective date  of  the  Marihuana  Regulation  and
    27  Taxation Act.
    28    (i) The bureau shall begin accepting applications no more than fifteen
    29  months  following  the  effective  date  of the Marihuana Regulation and
    30  Taxation Act.
    31    (ii) Pursuant to section one hundred eighty-five of this article,  the
    32  bureau  shall  notify  any town, city or village of any applications for
    33  license.
    34    (iii) The bureau shall  issue  an  annual  license  to  the  applicant
    35  between  forty-five  and  ninety  days  after  receipt of an application
    36  unless the bureau finds the applicant is not in  compliance  with  regu-
    37  lations  enacted  pursuant  to  section one hundred seventy-four of this
    38  article or the department is notified by  the  relevant  town,  city  or
    39  village that the applicant is not in compliance with such regulations.
    40    (d)  The bureau shall have the authority to collect fees in connection
    41  with activities they regulate concerning marihuana pursuant  to  section
    42  one hundred ninety-one of this article.
    43    3. (a) Not later than ten months following the enactment of this arti-
    44  cle,  each  town,  city  or village may enact an ordinance or regulation
    45  specifying the entity within the town, city or village that is responsi-
    46  ble for processing applications submitted for a  license  to  operate  a
    47  marihuana  establishment  within  the  boundaries  of  the town, city or
    48  village and for the issuance of such licenses should the issuance by the
    49  town, city or village become necessary  because  of  a  failure  by  the
    50  bureau to adopt regulations pursuant to section one hundred seventy-four
    51  of  this  article  or  because of a failure by the bureau to process and
    52  issue licenses as required by subdivision two of this section.
    53    (b) A town, city or village may enact ordinances or  regulations,  not
    54  in conflict with this section or with regulations or legislation enacted
    55  pursuant  to  this section, governing the time, place, manner and number
    56  of marihuana establishment operations; establishing procedures  for  the

        S. 1527                            26
     1  issuance,  suspension, and revocation of a license issued by the munici-
     2  pality in accordance with paragraphs (c) and (d)  of  this  subdivision,
     3  such  procedures to be subject to all requirements of the state adminis-
     4  trative  procedure act or any successor provision, establishing a sched-
     5  ule of annual operating, licensing, and application fees  for  marihuana
     6  establishments,  provided,  the  application fee shall only be due if an
     7  application is submitted to a town, city or village in  accordance  with
     8  paragraph  (d) of this subdivision and a licensing fee shall only be due
     9  if a license is issued by a municipality in  accordance  with  paragraph
    10  (c)  or  (d)  of  this subdivision; and establishing civil penalties for
    11  violation of an ordinance or regulation governing the time,  place,  and
    12  manner  of  a  marihuana  establishment that may operate in such a town,
    13  city or village. A town, city or village may prohibit the  operation  of
    14  marihuana  production facilities, marihuana processing facilities, mari-
    15  huana retail stores, marihuana  microbusinesses,  or  marihuana  testing
    16  facilities through the enactment of an ordinance.
    17    (c)  If  the  bureau  does  not issue a license to an applicant within
    18  ninety days of receipt of  the  application  filed  in  accordance  with
    19  subdivision two and does not notify the applicant of the specific reason
    20  for its denial, in writing and within such time period, or if the bureau
    21  has  adopted regulations pursuant to section one hundred seventy-four of
    22  this article but has not issued any licenses within eighteen  months  of
    23  the effective date of this article, for any town, city or village enact-
    24  ing  an  ordinance  providing  for local processing of applications, the
    25  applicant may resubmit its application directly to  the  town,  city  or
    26  village  pursuant  to  paragraph  (a) of this subdivision, and the town,
    27  city or village may issue an annual license to the  applicant.  A  town,
    28  city  or  village  issuing  a license to an applicant shall do so within
    29  ninety days of receipt of the resubmitted application unless  the  town,
    30  city  or  village finds and notifies the applicant that the applicant is
    31  not in compliance with the ordinances and regulations made  pursuant  to
    32  paragraph  (b) of this subdivision in effect at the time the application
    33  is resubmitted and the town, city or village shall notify the bureau  if
    34  an annual license has been issued to the applicant. If an application is
    35  submitted  to  a  town, city or village under this paragraph, the bureau
    36  shall forward to the town, city or village the application fee  paid  by
    37  the applicant to the bureau upon request by the town, city or village. A
    38  license  issued by a town, city or village in accordance with this para-
    39  graph shall have the same force and effect as a license  issued  by  the
    40  bureau in accordance with subdivision two of this section and the holder
    41  of such license shall not be subject to regulation or enforcement by the
    42  bureau  during the term of that license. A subsequent or renewed license
    43  may be issued under this paragraph on an annual basis only  upon  resub-
    44  mission  to  the town, city or village of a new application submitted to
    45  the bureau pursuant to subdivision two of this section.  Nothing in this
    46  paragraph shall limit such relief as may be available  to  an  aggrieved
    47  party  under section four hundred one of the state administrative proce-
    48  dure act or any successor provision.
    49    (d) If the bureau does not adopt regulations required by  section  one
    50  hundred  seventy-four of this article, an applicant may submit an appli-
    51  cation directly to a town, city or village fifteen months following  the
    52  effective  date  of this article and the town, city or village may issue
    53  an annual license to the applicant. A town, city or  village  issuing  a
    54  license to an applicant shall do so within ninety days of receipt of the
    55  application  unless  it finds and notifies the applicant that the appli-
    56  cant is not in compliance with ordinances and regulations made  pursuant

        S. 1527                            27
     1  to  paragraph  (b) of this subdivision in effect at the time of applica-
     2  tion and shall notify the bureau if an annual license has been issued to
     3  the applicant. A license issued by a town, city or village in accordance
     4  with  this  paragraph  shall have the same force and effect as a license
     5  issued by the bureau in accordance with subdivision two of this  section
     6  and  the  licensee  shall not be subject to regulation or enforcement by
     7  the bureau during the term of that  license.  A  subsequent  or  renewed
     8  license  may  be  issued  under this paragraph on an annual basis if the
     9  bureau has not adopted  regulations  required  by  section  one  hundred
    10  seventy-four of this article at least ninety days prior to the date upon
    11  which  such  subsequent  or renewed license would be effective or if the
    12  department has adopted  regulations  pursuant  to  section  one  hundred
    13  seventy-four of this article but has not, at least ninety days after the
    14  adoption  of  such  regulations, issued licenses pursuant to subdivision
    15  two of this section.
    16    4. The bureau may limit the total amount of marihuana produced in  New
    17  York  based on the demand for marihuana and marihuana products and in an
    18  effort to reduce illicit marihuana markets.
    19    § 168. Authority to promulgate rules and regulations. The bureau shall
    20  promulgate and implement all rules and regulations as it deems necessary
    21  to carry out the requirements, purpose and intent of this article.
    22    § 169. Licenses issued. The  following  kinds  of  licenses  shall  be
    23  issued  by the bureau for the manufacture, production, processing, test-
    24  ing, retail sale and delivery of marihuana:
    25    1. marihuana nursery license;
    26    2. marihuana producer license;
    27    3. marihuana processor license;
    28    4. marihuana distributor license;
    29    5. marihuana retailer license;
    30    6. marihuana microbusiness license;
    31    7. marihuana on-site consumption license;
    32    8. marihuana delivery license;
    33    9. marihuana testing license; and
    34    10. any other type of licenses allowed by the bureau.
    35    § 170. Licensing limits. 1. All licenses  issued  under  this  article
    36  shall  bear  a  clear  designation  indicating  that  the license is for
    37  commercial marihuana activity as distinct from medical  marihuana  manu-
    38  factured,  produced and sold for medical use pursuant to title five-A of
    39  article thirty-three of the public health law.
    40    2. An owner of a marihuana retail store shall not hold  a  license  in
    41  another license category of section one hundred sixty-nine of this arti-
    42  cle,  shall  not  own  or  have ownership interest in an entity licensed
    43  pursuant to title five-A of article thirty-three of  the  public  health
    44  law, and shall hold not more than three retail licenses.
    45    3.  An  owner of a marihuana microbusiness shall not hold a license in
    46  another license category of section one hundred sixty-nine of this arti-
    47  cle, shall not own or have ownership interest  in  a  facility  licensed
    48  pursuant  to  title  five-A of article thirty-three of the public health
    49  law, and shall hold not more than one microbusiness license.
    50    4. An owner of a marihuana testing facility shall not hold  a  license
    51  in  another  license  category of section one hundred sixty-nine of this
    52  article and shall not own or  have  ownership  interest  in  a  facility
    53  licensed  pursuant to title five-A of article thirty-three of the public
    54  health law.
    55    5. Only a marihuana retail licensee may be issued an on-site  consump-
    56  tion license.

        S. 1527                            28
     1    6. Only a marihuana retail licensee, marihuana microbusiness licensee,
     2  or  marihuana  delivery  licensee  may be permitted to deliver marihuana
     3  directly to customers.
     4    7.  Only  a marihuana producer licensee, marihuana processor licensee,
     5  marihuana microbusiness licensee, or marihuana distributor licensee  may
     6  distribute  marihuana and marihuana products to other licensed marihuana
     7  businesses.
     8    8. No marihuana delivery owner may hold more than one marihuana deliv-
     9  ery license.
    10    9. No marihuana distributor owner may hold  more  than  one  marihuana
    11  distributor license.
    12    10. The bureau shall issue a series of producer licenses distinguished
    13  by  canopy size and type of lighting used, natural/outdoor light, indoor
    14  light, or mixed-light.
    15    11. No marihuana producer owner  may  hold  more  than  one  marihuana
    16  producer and one marihuana processor license.
    17    12.  No  marihuana  processor owner may hold more than three marihuana
    18  processor licenses.
    19    13. An owner of a marihuana nursery may hold a marihuana  producer  or
    20  marihuana  processor license but shall not hold another license category
    21  of section one hundred sixty-nine of this article, shall not own or have
    22  ownership interest in a facility licensed pursuant to  title  five-A  of
    23  article  thirty-three  of the public health law, and shall hold not more
    24  than one nursery license. Licensing limits imposed by subdivisions elev-
    25  en and twelve of this section shall apply.
    26    § 171. Actions taken pursuant  to  a  valid  license  are  lawful.  No
    27  contracts  related to the operation of licenses under this chapter shall
    28  be deemed unenforceable on the basis that the actions permitted pursuant
    29  to the license are prohibited by federal law. The following actions  are
    30  not  unlawful  as  provided  under this chapter, shall not be an offense
    31  under any state or local law, and shall not result in  any  civil  fine,
    32  seizure, or forfeiture of assets against any person acting in accordance
    33  with this chapter:
    34    1.  Actions of a licensee, its employees, and its agents, as permitted
    35  by this chapter and consistent with rules and regulations of the bureau,
    36  pursuant to a valid license issued by the bureau.
    37    2. Actions of those who allow property to be used by a  licensee,  its
    38  employees,  and  its agents, as permitted by this chapter and consistent
    39  with rules and regulations of the bureau, pursuant to  a  valid  license
    40  issued by the bureau.
    41    3.  Actions  of any person or entity, their employees, or their agents
    42  providing a service to a licensee or potential licensee, as permitted by
    43  this chapter and consistent with rules and regulations  of  the  bureau,
    44  relating to the formation of a business.
    45    4. The purchase, possession, or consumption of marihuana, as permitted
    46  by this chapter and consistent with rules and regulations of the bureau,
    47  obtained from a validly licensed retailer.
    48    § 172. General prohibitions and restrictions. 1. No marihuana products
    49  may be imported into or exported from New York state.
    50    2.  No person may be issued a license under section one hundred sixty-
    51  nine of this article if they have been convicted of an  offense  related
    52  to  the  functions,  or duties of owning and operating a business within
    53  three years of the application date, except that if  the  bureau  deter-
    54  mines  that  the  owner or licensee is otherwise suitable to be issued a
    55  license, and granting the license would not  compromise  public  safety,
    56  the  bureau  shall conduct a thorough review of the nature of the crime,

        S. 1527                            29
     1  conviction, circumstances, and evidence of rehabilitation of the  owner,
     2  and shall evaluate the suitability of the owner or licensee to be issued
     3  a license based on the evidence found through the review. In determining
     4  which  offenses  are substantially related to the functions or duties of
     5  owning and operating a business, the bureau shall include,  but  not  be
     6  limited to, the following:
     7    (a) A felony conviction involving fraud, money laundering, forgery and
     8  other unlawful conduct related to owning and operating a business.
     9    (b)  A  felony  conviction  for hiring, employing, or using a minor in
    10  transporting, carrying, selling, giving away,  preparing  for  sale,  or
    11  peddling,  any  controlled substance to a minor; or selling, offering to
    12  sell, furnishing, offering to  furnish,  administering,  or  giving  any
    13  controlled substance to a minor.
    14    3.  No  license of any kind may be issued to a person under the age of
    15  twenty-one years, nor shall any licensee employ anyone under the age  of
    16  twenty-one years.
    17    §  173.  Certain  officials not to be interested in the manufacture or
    18  sale of marihuana. 1.  Except  as  otherwise  provided  in  section  one
    19  hundred  twenty-eight-a  of  this  chapter, it shall be unlawful for any
    20  police commissioner, police  inspector,  captain,  sergeant,  roundsman,
    21  patrolman  or other police official or subordinate of any police depart-
    22  ment in the state, to be either directly or indirectly interested in the
    23  manufacture or sale of marihuana or to offer for sale, or  recommend  to
    24  any  licensee  any  marihuana.  A  person  may not be denied any license
    25  granted under the provisions of sections fifty-four, fifty-five,  fifty-
    26  nine,  sixty-three,  sixty-four,  seventy-nine,  eighty-one,  or article
    27  seven of this chapter solely on the grounds of being  the  spouse  of  a
    28  public servant described in this subdivision. The solicitation or recom-
    29  mendation  made to any licensee, to purchase any marihuana by any police
    30  official or subordinate as  described  in  this  subdivision,  shall  be
    31  presumptive  evidence of the interest of such official or subordinate in
    32  the manufacture or sale of marihuana.
    33    2. No elective village officer shall be subject to the limitations set
    34  forth in subdivision one of this section unless  such  elective  village
    35  officer  shall  be assigned duties directly relating to the operation or
    36  management of the police department.
    37    § 174. Provisions governing initial rulemaking. 1. Within two  hundred
    38  forty  days  after  the effective date of this article, the bureau shall
    39  perform such acts, prescribe such forms and make such rules, regulations
    40  and orders as it may deem necessary or proper to  fully  effectuate  the
    41  provisions of this article.
    42    2. The bureau shall promulgate necessary rules and regulations govern-
    43  ing the licensing of marihuana producers, marihuana processors, marihua-
    44  na retailers and marihuana retailers for consumption on-site, including:
    45    (a) prescribing forms and establishing application, reinstatement, and
    46  renewal fees;
    47    (b) the qualifications for licensure;
    48    (c)  the  books and records to be created and maintained by licensees,
    49  the reports to be made thereon to the  bureau,  and  inspection  of  the
    50  books and records;
    51    (d)  methods  of producing, processing, and packaging marihuana, mari-
    52  huana-infused products, and concentrated cannabis; conditions of sanita-
    53  tion, and standards of ingredients, quality, and identity  of  marihuana
    54  products produced, processed, packaged, or sold by licensees; and

        S. 1527                            30
     1    (e)  security  requirements for marihuana retailers and premises where
     2  marihuana products are produced or processed, and safety  protocols  for
     3  licensees and their employees.
     4    3.  The  bureau shall promulgate rules and regulations that are calcu-
     5  lated to:
     6    (a) prevent the distribution of marihuana to persons under  twenty-one
     7  years of age;
     8    (b)  prevent  the  revenue  from  the  sale of marihuana from going to
     9  organized criminal enterprises and cartels;
    10    (c) prevent the diversion  of  marihuana  from  this  state  to  other
    11  states;
    12    (d)  prevent  marihuana  activity  that  is legal under state law from
    13  being used as a cover or pretext for the trafficking  of  other  illegal
    14  drugs or other illegal activity;
    15    (e)  prevent  violence  and the use of firearms in the cultivation and
    16  distribution of marihuana;
    17    (f) prevent impaired driving and the  exacerbation  of  other  adverse
    18  public health consequences associated with the use of marihuana;
    19    (g) prevent the growing of marihuana on public lands and the attendant
    20  public safety and environmental dangers posed by marihuana production on
    21  public lands; and
    22    (h) prevent the possession and use of marihuana on federal property.
    23    4.  Rules and regulations promulgated by the bureau pursuant to subdi-
    24  vision three of this section shall not prohibit the operation  of  mari-
    25  huana  establishments  either expressly or through regulations that make
    26  their operation unreasonably impracticable.
    27    5. The bureau, in consultation with the department of agriculture  and
    28  markets  and the department of environmental conservation, shall promul-
    29  gate necessary rules and regulations governing the  safe  production  of
    30  marihuana, including restrictions on the use of pesticides, insecticides
    31  and herbicides.
    32    §  175. Provisions governing marihuana producers. 1. No producer shall
    33  sell, or agree to sell or deliver in the state any  marihuana  products,
    34  as the case may be, except in sealed containers containing quantities in
    35  accordance  with size standards pursuant to rules adopted by the bureau.
    36  Such containers shall  have  affixed  thereto  such  labels  as  may  be
    37  required  by  the  rules  of the bureau, together with all necessary New
    38  York state excise tax stamps, as required by law.
    39    2. No producer shall deliver any marihuana products, except  in  vehi-
    40  cles  owned and operated by such producer, or hired and operated by such
    41  producer from a trucking or transportation company registered  with  the
    42  bureau,  and  shall only make deliveries at the licensed premises of the
    43  purchaser.
    44    3. Each producer shall keep and maintain upon the  licensed  premises,
    45  adequate  books  and  records of all transactions involving the producer
    46  and sale of his or its products, which  shall  include  all  information
    47  required by rules promulgated by the bureau. Each sale shall be recorded
    48  separately  on  a numbered invoice, which shall have printed thereon the
    49  number, the name of the licensee, the address of the licensed  premises,
    50  and  the  current  license  number.  Such  producer shall deliver to the
    51  purchaser a true duplicate invoice stating the name and address  of  the
    52  purchaser,  the  quantity  purchased,  description  and the price of the
    53  product, and a true, accurate and complete statement of  the  terms  and
    54  conditions  on which such sale is made. Such books, records and invoices
    55  shall be kept for a period of two  years  and  shall  be  available  for
    56  inspection by any authorized representative of the bureau.

        S. 1527                            31
     1    4. No producer shall furnish or cause to be furnished to any licensee,
     2  any  exterior or interior sign, printed, painted, electric or otherwise,
     3  except as authorized by the bureau. The bureau may make such rules as it
     4  deems necessary to carry out the purpose and intent of this subdivision.
     5    §  176.  Provisions  governing  processors.  1.  No processor shall be
     6  engaged in any other business on the premises  to  be  licensed;  except
     7  that nothing contained in this chapter shall prevent a marihuana produc-
     8  er  and  a  marihuana  processor from operating on the same premises and
     9  from a person holding both licenses.
    10    2. No processor shall sell, or agree to sell or deliver in  the  state
    11  any marihuana products, except in a sealed package containing quantities
    12  in  accordance  with  size  standards  pursuant  to rules adopted by the
    13  bureau. Such containers shall have affixed thereto such labels as may be
    14  required by the rules of the bureau, together  with  all  necessary  New
    15  York state excise tax stamps, as required by law.
    16    3.  No  processor shall deliver any products, except in vehicles owned
    17  and operated by such processor, or hired and operated by such  processor
    18  from  a  trucking  or transportation company registered with the bureau,
    19  and shall only make deliveries at the licensed premises of the  purchas-
    20  er.
    21    4.  Each processor shall keep and maintain upon the licensed premises,
    22  adequate books and records of all transactions  involving  the  business
    23  transacted  by  such processor, which shall show the amount of marihuana
    24  products, purchased by such processor together with the  names,  license
    25  numbers  and  places  of  business of the persons from whom the same was
    26  purchased and the amount involved in such  purchases,  as  well  as  the
    27  amount  of  marihuana  products sold by such processor together with the
    28  names, addresses, and license numbers  of  such  purchasers.  Each  sale
    29  shall  be  recorded  separately  on a numbered invoice, which shall have
    30  printed thereon the number, the name of the licensee, the address of the
    31  licensed premises, and the current license number. Such processor  shall
    32  deliver  to  the purchaser a true duplicate invoice stating the name and
    33  address of the purchaser, quantity purchased, description and the  price
    34  of the product, and a true, accurate and complete statement of the terms
    35  and  conditions  on  which  such  sale  is made. Such books, records and
    36  invoices shall be kept for a period of two years and shall be  available
    37  for inspection by any authorized representative of the bureau.
    38    §  177. Provisions governing marihuana retailers. 1. No retail license
    39  shall be granted for any premises, unless the  applicant  shall  be  the
    40  owner thereof, or shall be in possession of said premises under a lease,
    41  management  agreement  or  other  agreement giving the applicant control
    42  over the premises, in writing, for a term  not  less  than  the  license
    43  period.
    44    2.  No  premises  shall be licensed to sell marihuana products, unless
    45  said premises shall be located in a store,  the  principal  entrance  to
    46  which  shall  be from the street level and located on a public thorough-
    47  fare in premises which may be occupied, operated or conducted for  busi-
    48  ness,  trade  or  industry  or  on an arcade or sub-surface thoroughfare
    49  leading to a railroad terminal. There may be not  more  than  one  addi-
    50  tional  entrance which shall be from the street level and located on and
    51  giving access to and from a public or private  parking  lot  or  parking
    52  area having space for not less than five automobiles.
    53    3. No marihuana retail license shall be granted for any premises which
    54  a  license  would  not  be  allowed to sell at retail for consumption of
    55  alcohol off the premises based on its proximity to a  building  occupied

        S. 1527                            32
     1  exclusively  as  a  school,  church, synagogue or other place of worship
     2  pursuant to the provisions of section one hundred five of this chapter.
     3    4.  No  marihuana  retail  licensee shall offer for sale any marihuana
     4  products in any other container, except in the original sealed  package,
     5  as received from the producer, distributor or processor. Such containers
     6  shall  have  affixed thereto such labels as may be required by the rules
     7  of the bureau, together with all New York state excise  tax  stamps,  as
     8  required  by  law.  Such containers shall not be opened nor its contents
     9  consumed on the premises where sold.
    10    5. No marihuana retail  licensee  shall  sell  or  transfer  marihuana
    11  products to any person under the age of twenty-one years.
    12    6.  No marihuana retail licensee shall sell alcoholic beverages on the
    13  same premises where marihuana products are sold.
    14    7. No sign of any kind printed, painted or electric,  advertising  any
    15  brand  shall  be permitted on the exterior or interior of such premises,
    16  except by permission of the bureau.
    17    8. No retail licensee shall deliver any marihuana products  except  in
    18  vehicles  owned  and operated by such licensee, or hired and operated by
    19  such licensee from a trucking or transportation company registered  with
    20  the  bureau,  and shall only make such deliveries at the premises of the
    21  purchaser.
    22    9. No retail licensee shall  keep  or  permit  to  be  kept  upon  the
    23  licensed premises, any marihuana products in any unsealed container.
    24    10. No premises licensed as a marihuana retailer shall be permitted to
    25  remain open during a time when a premises licensed to sell liquor and/or
    26  wine for off-premises consumption is not permitted to remain open pursu-
    27  ant to the provisions of section one hundred five of this chapter.
    28    11.  Each  marihuana  retail licensee shall keep and maintain upon the
    29  licensed premises,  adequate  books  and  records  of  all  transactions
    30  involving the business transacted by such licensee, which shall show the
    31  amount  of  marihuana products, purchased by such licensee together with
    32  the names, license numbers and places of business of  the  persons  from
    33  whom the same were purchased, and the amount involved in such purchases,
    34  as  well as the amount of marihuana products, sold by such licensee, and
    35  the amount involved in each sale. Such books and records shall be avail-
    36  able for inspection by any authorized representative of the bureau.
    37    12. All premises licensed under  this  section  shall  be  subject  to
    38  inspection by any peace officer described in subdivision four of section
    39  2.10 of the criminal procedure law acting pursuant to his or her special
    40  duties,  or  police officer or any duly authorized representative of the
    41  bureau, during the hours when the said premises are open for the  trans-
    42  action of business.
    43    § 178. Provisions governing marihuana on-site consumption licenses. 1.
    44  No  marihuana  retailer  or  microbusiness  shall be granted a marihuana
    45  on-site consumption license for a premises located in whole or  in  part
    46  inside  the  boundaries  of  any city, village or town, unless the local
    47  legislative body of such city, village or town, by resolution, expressly
    48  authorizes the licensing of such facilities in  such  city,  village  or
    49  town.  The  local  legislative  body  may direct an appropriate officer,
    50  board or body of such city, village  or  town  as  the  local  licensing
    51  authority  to  authorize  individual marihuana facility license applica-
    52  tions. In cities of one million or  more  residents,  should  the  local
    53  legislative  body  authorize such license, no marihuana retailer license
    54  for consumption on-site shall be  granted  unless  the  community  board
    55  established  pursuant  to  section  twenty-eight hundred of the New York

        S. 1527                            33
     1  city charter with jurisdiction over the area in which the premises  will
     2  be located shall also authorize such license.
     3    2. No marihuana retailer or microbusiness shall be granted a marihuana
     4  on-site consumption license for any premises, unless the applicant shall
     5  be the owner thereof, or shall be in possession of said premises under a
     6  lease,  in  writing, for a term not less than the license period except,
     7  however, that  such  license  may  thereafter  be  renewed  without  the
     8  requirement  of  a  lease as herein provided. This subdivision shall not
     9  apply to premises leased from  government  agencies,  as  defined  under
    10  subdivision  twelve-c of section three of this chapter; provided, howev-
    11  er,  that  the  appropriate  administrator  of  such  government  agency
    12  provides some form of written documentation regarding the terms of occu-
    13  pancy  under  which  the  applicant  is  leasing  said premises from the
    14  government agency for presentation to the bureau  at  the  time  of  the
    15  license application. Such documentation shall include the terms of occu-
    16  pancy  between  the  applicant and the government agency, including, but
    17  not limited to, any short-term leasing agreements or  written  occupancy
    18  agreements.
    19    3. No marihuana retailer or microbusiness shall be granted a marihuana
    20  on-site  consumption  license for any premises where a license would not
    21  be allowed to sell at retail for consumption of alcohol on the  premises
    22  based  on  its proximity to a building occupied exclusively as a school,
    23  church, synagogue or other place of worship pursuant to  the  provisions
    24  of section one hundred five of this chapter.
    25    4.  The bureau may consider any or all of the following in determining
    26  whether public convenience and advantage and the public interest will be
    27  promoted by the granting of licenses and permits for a marihuana on-site
    28  consumption license at a particular unlicensed location:
    29    (a) The number, classes and character of licenses in proximity to  the
    30  location  and  in  the  particular  town, city or village or subdivision
    31  thereof.
    32    (b) Evidence  that  all  necessary  licenses  and  permits  have  been
    33  obtained from the state and all other governing bodies.
    34    (c)  Effect of the grant of the license on vehicular traffic and park-
    35  ing in proximity to the location.
    36    (d) The existing noise level at the location and any increase in noise
    37  level that would be generated by the proposed premises.
    38    (e) Any other factors specified by law or regulation that are relevant
    39  to determine the public convenience and advantage and public interest of
    40  the community.
    41    5. If the bureau shall disapprove an  application  for  a  license  or
    42  permit,  it shall state and file in its offices the reasons therefor and
    43  shall notify the applicant thereof. Such applicant may  thereupon  apply
    44  to  the  bureau for a review of such action in a manner to be prescribed
    45  by the rules of the bureau. A hearing upon notice to the applicant shall
    46  thereupon be held by the bureau or by one of its members at  its  office
    47  most  conveniently  situated to the office of its duly authorized repre-
    48  sentative in a manner to be prescribed in its rules; and on such hearing
    49  proof may be taken by oral testimony or by affidavit  relative  thereto.
    50  After  such  hearing,  if the bureau confirms such disapproval, it shall
    51  endorse such application accordingly and shall send notice to the appli-
    52  cant of its action in such form as the  bureau  may  prescribe.  If  the
    53  bureau  does not confirm the disapproval action it may grant such appli-
    54  cation and issue such license.
    55    6. No marihuana on-site consumption licensee, except persons or corpo-
    56  rations operating a hotel, as defined in subdivision fourteen of section

        S. 1527                            34
     1  three of this chapter, for exclusive  use  in  the  furnishing  of  room
     2  service  in  the  manner prescribed by rule or regulation of the bureau,
     3  shall keep upon the licensed premises  any  marihuana  products,  except
     4  those  purchased from a licensed producer, and in containers approved by
     5  the bureau. Such containers shall have affixed thereto  such  labels  as
     6  may  be required by the rules of the bureau, together with all necessary
     7  excise stamps as required by  law.  No  marihuana  retail  licensee  for
     8  on-site consumption shall reuse, refill, tamper with, adulterate, dilute
     9  or  fortify  the  contents  of  any  container  of marihuana products as
    10  received from the manufacturer or wholesaler.
    11    7. No marihuana on-site consumption licensee shall  sell,  deliver  or
    12  give  away, or cause or permit or procure to be sold, delivered or given
    13  away any marihuana for consumption on  the  premises  where  sold  in  a
    14  container or package containing more than one gram of marihuana.
    15    8.  Except  where  a  permit  to do so is obtained pursuant to section
    16  405.10 of the penal law, no marihuana on-site consumption licensee shall
    17  suffer, permit, or promote an event on its premises wherein  any  person
    18  shall  use,  explode,  or cause to explode, any fireworks or other pyro-
    19  technics in a building as defined in paragraph e of subdivision  one  of
    20  section  405.10  of  the  penal  law, that is covered by such license or
    21  possess such fireworks or pyrotechnics for such purpose. In addition  to
    22  any other penalty provided by law, a violation of this subdivision shall
    23  constitute  an  adequate ground for instituting a proceeding to suspend,
    24  cancel, or revoke the license of the violator  in  accordance  with  the
    25  applicable  procedures specified in section one hundred nineteen of this
    26  chapter; provided however, if more than one licensee is participating in
    27  a single event, upon approval by the  bureau,  only  one  licensee  must
    28  obtain such permit.
    29    9.  No  restaurant and no premises licensed to sell marihuana products
    30  for on-site consumption  under  paragraph  (a)  of  subdivision  six  of
    31  section  sixty-four-a  of  this  chapter  shall be permitted to have any
    32  opening or means of entrance or passageway for persons or things between
    33  the licensed premises and any  other  room  or  place  in  the  building
    34  containing the licensed premises, or any adjoining or abutting premises,
    35  unless  ingress  and  egress  is restricted by an employee, agent of the
    36  licensee, or other approved method of controlling access to the  facili-
    37  ty,  or unless such premises are a bona fide restaurant with such access
    38  for patrons and guests from any part of such building  or  adjoining  or
    39  abutting  premises as shall serve public convenience in a reasonable and
    40  suitable manner; or unless such licensed  premises  are  in  a  building
    41  owned  or  operated  by  any  town, city, village or public authority or
    42  agency, in a park or other similar place of  public  accommodation.  All
    43  glass in any window or door on said licensed premises shall be clear and
    44  shall not be opaque, colored, stained or frosted.
    45    10.  A vessel licensed to sell marihuana products for on-site consump-
    46  tion shall not be permitted to sell any marihuana products,  while  said
    47  vessel  is  moored  to  a  pier  or dock, except that vessels sailing on
    48  established schedules shall be permitted to sell marihuana products  for
    49  a period of three hours prior to the regular advertised sailing time.
    50    11.  Each  marihuana on-site consumption licensee shall keep and main-
    51  tain upon the licensed premises, adequate records  of  all  transactions
    52  involving  the business transacted by such licensee which shall show the
    53  amount of marihuana  products,  in  an  applicable  metric  measurement,
    54  purchased  by such licensee together with the names, license numbers and
    55  places of business of the persons from whom the same were purchased, the
    56  amount involved in such purchases, as well as  the  sales  of  marihuana

        S. 1527                            35
     1  products  made  by  such  licensee.  The  bureau is hereby authorized to
     2  promulgate rules and regulations permitting an on-site licensee  operat-
     3  ing  two or more premises separately licensed to sell marihuana products
     4  for on-site consumption to inaugurate or retain in this state methods or
     5  practices  of  centralized  accounting,  bookkeeping,  control  records,
     6  reporting, billing, invoicing or payment respecting purchases, sales  or
     7  deliveries  of  marihuana products, or methods and practices of central-
     8  ized receipt or storage of marihuana products within this state  without
     9  segregation  or  earmarking  for  any such separately licensed premises,
    10  wherever such methods and practices assure  the  availability,  at  such
    11  licensee's  central  or  main  office  in this state, of data reasonably
    12  needed for the enforcement of this chapter. Such records shall be avail-
    13  able for inspection by any authorized representative of the bureau.
    14    12. All retail licensed premises shall be subject to inspection by any
    15  peace officer, acting pursuant to his or her special duties,  or  police
    16  officer and by the duly authorized representatives of the bureau, during
    17  the  hours  when the said premises are open for the transaction of busi-
    18  ness.
    19    13. A marihuana on-site consumption licensee shall not  provide  mari-
    20  huana products to any person under the age of twenty-one.
    21    §  179.  Advertising  and  forms  for the issuance of licenses. 1. The
    22  bureau is hereby authorized to promulgate rules and regulations  govern-
    23  ing  the advertising of marihuana producers, marihuana processors, mari-
    24  huana retailers, and any marihuana related products or services.
    25    2. The bureau shall promulgate explicit rules prohibiting  advertising
    26  that:
    27    (a) is false, deceptive, or misleading;
    28    (b) promotes overconsumption;
    29    (c) depicts consumption by children or other minors;
    30    (d) is designed in any way to appeal to children or other minors;
    31    (e) is within two hundred feet of the perimeter of a playground, child
    32  care center, public park, library or school grounds;
    33    (f) is in public transit vehicles and stations;
    34    (g) is in the form of an unsolicited internet pop-up; or
    35    (h) is on publicly owned or operated property.
    36    3.  The bureau shall promulgate explicit rules prohibiting all market-
    37  ing strategies and implementation including, but not limited to,  brand-
    38  ing,  packaging, labeling, location of marihuana retailers and marihuana
    39  microbusinesses, and advertisements that are designed to:
    40    (a) appeal to persons less then twenty-one years of age; or
    41    (b) disseminate false or misleading information to customers.
    42    4. The bureau shall promulgate explicit rules requiring that:
    43    (a) all advertisements and marketing accurately and  legibly  identify
    44  the licensee responsible for its content; and
    45    (b)  any  broadcast,  cable,  radio,  print and digital communications
    46  advertisements only be placed where the audience is reasonably  expected
    47  to  be  twenty-one  years  of  age  or older, as determined by reliable,
    48  up-to-date audience composition data.
    49    § 180. Packaging of  marihuana  products.  1.  The  bureau  is  hereby
    50  authorized  to  promulgate rules and regulations governing the packaging
    51  of marihuana products, sold or possessed for sale in New York state.
    52    2. Such regulations shall include requiring that:
    53    (a) packaging  meets  requirements  similar  to  the  federal  "poison
    54  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    55    (b) all marihuana-infused products shall have a separate packaging for
    56  each serving;

        S. 1527                            36
     1    (c)  prior  to delivery or sale at a retailer, marihuana and marihuana
     2  products shall be labeled and placed in  a  resealable,  child-resistant
     3  package; and
     4    (d)  packages  and  labels shall not be made to be attractive to chil-
     5  dren.
     6    § 181. Labeling of marihuana products. 1. The bureau is hereby author-
     7  ized to promulgate rules and  regulations  governing  the  labeling  and
     8  offering of marihuana products for sale within this state.
     9    2.  Such  rules  and  regulations shall be calculated to: (a) prohibit
    10  deception of the consumer; (b) afford adequate information as to quality
    11  and identity of the product; and (c) achieve national uniformity in this
    12  business.
    13    3. The bureau may seek the assistance of the department of health when
    14  necessary before promulgating rules and regulations under this section.
    15    4. Such regulations shall include requiring labels  warning  consumers
    16  of  any  potential impact on human health resulting from the consumption
    17  of marihuana products that shall be affixed to those products when sold,
    18  if such labels are deemed warranted by  the  bureau  after  consultation
    19  with the department of health.
    20    5.  All  marihuana  and  marihuana  product  labels  and inserts shall
    21  include the following information prominently displayed in a  clear  and
    22  legible  fashion  in  accordance  with  the requirements, including font
    23  size, prescribed by the bureau or the department  of  health:  not  less
    24  than 8 point font:
    25    (a) manufacture date and source;
    26    (b) for packages containing only dried flower, the net weight of mari-
    27  huana in the package;
    28    (c)  identification of the source and date of cultivation, the type of
    29  marihuana or marihuana product and the date of manufacturing and packag-
    30  ing;
    31    (d) list of pharmacologically active ingredients, including,  but  not
    32  limited  to,  tetrahydrocannabinol  (THC),  cannabidiol (CBD), and other
    33  cannabinoid content, the THC and other cannabinoid amount in  milligrams
    34  per  serving,  servings  per  package, and the THC and other cannabinoid
    35  amount in milligrams for the package total, and the potency of the mari-
    36  huana or marihuana product by reference to the amount of  tetrahydrocan-
    37  nabinol and cannabidiol in each serving;
    38    (e)  for  marihuana products, a list of all ingredients and disclosure
    39  of nutritional information in the same manner as the federal nutritional
    40  labeling requirements in 21 C.F.R. section 101.9;
    41    (f) a list of any solvents,  nonorganic  pesticides,  herbicides,  and
    42  fertilizers  that were used in the cultivation, production, and manufac-
    43  ture of such marihuana or marihuana product;
    44    (g) a warning if nuts or other known allergens are used;
    45    (h) information associated with the unique identifier  issued  by  the
    46  bureau of marihuana policy; and
    47    (i) any other requirements set by the bureau of marihuana policy.
    48    6.  Only generic food names may be used to describe the ingredients in
    49  edible marihuana products.
    50    7. Such rules and regulations shall establish methods  and  procedures
    51  for  determining  serving  sizes  for marihuana-infused products, active
    52  cannabis concentration per serving size,  and  number  of  servings  per
    53  container.  Such regulations shall also require a nutritional fact panel
    54  that incorporates data regarding serving sizes and potency thereof.

        S. 1527                            37
     1    8. Such rules and regulations shall require information containing the
     2  license number of the marihuana producer and processor facilities  where
     3  the marihuana was grown and processed.
     4    9. The packaging, sale, or possession by any licensee of any marihuana
     5  product  not labeled or offered in conformity with rules and regulations
     6  promulgated in accordance with this section shall  be  grounds  for  the
     7  imposition  of a fine, and/or the suspension, revocation or cancellation
     8  of the license.
     9    § 182. Seed to sale tracking. 1. No later than fifteen months  follow-
    10  ing the effective date of the Marihuana Regulation and Taxation Act, the
    11  bureau shall establish a seed to sale tracking program for reporting the
    12  movement of marihuana and marihuana products throughout the distribution
    13  chain  that  utilizes  a  unique  identifier and secure packaging and is
    14  capable of providing information that captures, at a minimum, all of the
    15  following:
    16    (a) the licensee receiving the product;
    17    (b) the transaction date; and
    18    (c) the producer from which  the  product  originates,  including  the
    19  associated unique identifier.
    20    2.  (a)  The bureau shall create an electronic database containing the
    21  electronic shipping manifests to facilitate the  administration  of  the
    22  seed  to  sale program tracking, which shall include, but not be limited
    23  to, the following information:
    24    (b) the quantity, or weight, and variety of products shipped;
    25    (c) the estimated times of departure and arrival;
    26    (d) the quantity, or weight, and variety of products received;
    27    (e) the actual time of departure and arrival;
    28    (f) a categorization of the product; and
    29    (g) the license number and unique identifier issued by the bureau  for
    30  all  licensees  involved  in  the  shipping  process, including, but not
    31  limited to, producer, processor, retailer, and delivery licensees.
    32    3. The database shall be  designed  to  flag  irregularities  for  the
    33  bureau to investigate.
    34    §  183.  Renewals of licenses and permits. 1. Each license and permit,
    35  issued pursuant to this article may be renewed upon application therefor
    36  by the licensee or permittee and the payment of the annual fee for  such
    37  license or permit as prescribed by this article. In the case of applica-
    38  tions  for  renewals,  the  bureau may dispense with the requirements of
    39  such statements as it deems unnecessary in view of  those  contained  in
    40  the  application  made  for  the  original license or permit, but in any
    41  event the submission of photographs of the licensed  premises  shall  be
    42  dispensed  with,  provided  the  applicant for such renewal shall file a
    43  statement with such bureau to the effect that there has been  no  alter-
    44  ation  of  such  premises  since  the original license was issued.   The
    45  bureau may make such rules as may be  necessary  not  inconsistent  with
    46  this chapter regarding applications for renewals of licenses and permits
    47  and  the  time  for making the same.   Each applicant must submit to the
    48  bureau documentation of the racial, ethnic, and gender diversity of  the
    49  applicant's  employees  and  owners  prior  to a license or permit being
    50  renewed.
    51    2. The bureau shall provide an application for renewal  of  a  license
    52  issued  under this article not less than sixty days prior to the expira-
    53  tion of the current license.
    54    § 184. Information to be provided by applicants.    1.  The  following
    55  shall  be  the  information  required on an application for a license or
    56  permit:

        S. 1527                            38
     1    (a) A statement of identity as follows:
     2    (i) If the applicant is an individual, his or her name, date and place
     3  of  birth,  citizenship,  permanent  home  address, telephone number and
     4  social security number, as well as any other names by which  he  or  she
     5  has conducted a business at any time.
     6    (ii)  If  the applicant is a corporation or a limited liability corpo-
     7  ration, the corporate name of the applicant, its place of incorporation,
     8  its main business address (and if such  main  business  address  is  not
     9  within  the  state, the address of its main place of business within the
    10  state), other names by which it has been known or has conducted business
    11  at any time, its telephone number, its federal  employer  identification
    12  number,  and  the names, ages, citizenship, and permanent home addresses
    13  of its directors, officers and its shareholders (except that if there be
    14  more than ten shareholders then those shareholders holding  ten  percent
    15  or more of any class of its shares).
    16    (iii)  If  the applicant is a partnership, its name, its main business
    17  address (and if such main business address is not within the state,  the
    18  address  of its main place of business within the state), other names by
    19  which it has been known or has conducted business at any time, its tele-
    20  phone number, its federal employer identification number, and the names,
    21  ages, citizenship, and permanent home addresses of each of its partners.
    22    (b) A statement identifying the street and number of the  premises  to
    23  be licensed, if the premises has a street and number, and otherwise such
    24  description as will reasonably indicate the town, city or village there-
    25  of;  photographs,  drawings  or other items related to the appearance of
    26  the interior or exterior of such premises, and a floor plan of the inte-
    27  rior, shall be required. The applicant shall also state  the  nature  of
    28  his  or  her  interest in the premises; and the name of any other person
    29  interested as a partner, joint venturer, investor  or  lender  with  the
    30  applicant either in the premises or in the business to be licensed.
    31    (c)  A description of any other marihuana license or permit under this
    32  article, within the past ten years, the applicant (including  any  offi-
    33  cers,  directors,  shareholders  or  partners listed in the statement of
    34  identity under paragraph (a) of this subdivision or the  spouse  of  any
    35  such person) or the applicant's spouse held or applied for.
    36    (d)  A  description  of the applicant's plan to ensure diversity among
    37  the applicant's employees, including strategies for ensuring:
    38    (i) gender diversity;
    39    (ii) racial and ethnic diversity that reflects the demographics within
    40  the town, city or village in which  the  applicant's  proposed  business
    41  will be located; and
    42    (iii) that persons with prior criminal convictions are not barred from
    43  employment.
    44    (e) For an applicant with more than twenty-five employees, a statement
    45  that the applicant has entered into a labor peace agreement with a bona-
    46  fide  labor  organization  that  is  actively engaged in representing or
    47  attempting to represent the applicant's employees.  The  maintenance  of
    48  such  a  labor peace agreement shall be an ongoing material condition of
    49  certification.
    50    (f) A statement that the location and layout of  the  premises  to  be
    51  licensed  does  not  violate any requirement of this chapter relating to
    52  location and layout of licensed premises, with a copy of the certificate
    53  of occupancy for the premises.
    54    (g) A statement that the applicant has control of the premises  to  be
    55  licensed  by  ownership of a fee interest or via a leasehold, management
    56  agreement, or other agreement giving  the  applicant  control  over  the

        S. 1527                            39
     1  premises,  with  a  term  at  least as long as the license for which the
     2  application is being made, or by a binding contract to acquire the  same
     3  and  a statement of identity under paragraph (a) of this subdivision for
     4  the  lessor  of  any  leasehold, manager of any management agreement, or
     5  other agreement giving the applicant control over the premises,  with  a
     6  copy  of  the  lease, contract, management agreement, or other agreement
     7  giving the applicant control over the food and beverage at the premises,
     8  or deed evidencing fee ownership of the premises.
     9    (h) A financial statement adequate to show all persons  who,  directly
    10  or indirectly have an economic interest in the establishment or acquisi-
    11  tion  of  the  business  for  which the license or permit application is
    12  being made, to identify the sources of  funds  to  be  applied  in  such
    13  establishment  or  acquisition, and to describe the terms and conditions
    14  governing such establishment with copies of such financial documents  as
    15  the bureau may reasonably require.
    16    (i)  The fingerprints of the applicants. Fingerprints submitted by the
    17  applicants shall be transmitted to  the  division  of  criminal  justice
    18  services and may be submitted to the federal bureau of investigation for
    19  state and national criminal history record checks.
    20    2. All license or permit applications shall be signed by the applicant
    21  (if an individual), by a managing partner (if a limited liability corpo-
    22  ration),  by  an  officer  (if  a corporation), or by all partners (if a
    23  partnership). Each person signing such application shall  verify  it  or
    24  affirm it as true under the penalties of perjury.
    25    3. All license or permit applications shall be accompanied by a check,
    26  draft  or  other forms of payment as the bureau may require or authorize
    27  in the amount required by this article for such license or permit.
    28    4. If there be any change, after the filing of the application or  the
    29  granting  of  a license, in any of the facts required to be set forth in
    30  such application, a supplemental statement giving notice of such change,
    31  cost and source of money involved in the change, duly verified, shall be
    32  filed with the bureau within ten days after such change. Failure  to  do
    33  so  shall,  if  willful  and  deliberate, be cause for revocation of the
    34  license.
    35    5. In giving any notice, or taking any action in reference to a licen-
    36  see of a licensed premises, the bureau may  rely  upon  the  information
    37  furnished   in  such  application  and  in  any  supplemental  statement
    38  connected therewith, and such information may be presumed to be correct,
    39  and shall be binding upon a licensee or licensed premises as if correct.
    40  All information required to be furnished in such application or  supple-
    41  mental statements shall be deemed material in any prosecution for perju-
    42  ry,  any proceeding to revoke, cancel or suspend any license, and in the
    43  bureau's determination to approve or deny the license.
    44    6. The bureau may in its discretion waive the submission of any  cate-
    45  gory  of  information  described  in  this  section  for any category of
    46  license or permit, provided that it shall not be, except for  paragraphs
    47  (a)  and  (d) of subdivision one of this section, permitted to waive the
    48  requirement for submission of any such category  of  information  solely
    49  for an individual applicant or applicants.
    50    §  185.  Notification  to  towns, cities or villages. 1. Not less than
    51  thirty days before filing any of the following applications,  an  appli-
    52  cant  shall  notify  the  town, city or village in which the premises is
    53  located of such applicant's intent to file such an application for a:
    54    (a) marihuana producer license;
    55    (b) marihuana processor license;
    56    (c) marihuana microbusiness license;

        S. 1527                            40
     1    (d) marihuana retailer license;
     2    (e) marihuana retailer license for on-site consumption;
     3    (f) marihuana delivery license;
     4    (g) marihuana testing license; and/or
     5    (h) any other type of licenses allowed by the bureau.
     6    2.  Such  notification shall be made to the clerk of the village, town
     7  or city, as the case may  be,  wherein  the  premises  is  located.  For
     8  purposes of this section:
     9    (a) notification need only be given to the clerk of a village when the
    10  premises  is located within the boundaries of the town, city or village;
    11  and
    12    (b) in the city of New York, the community board established  pursuant
    13  to section twenty-eight hundred of the New York city charter with juris-
    14  diction  over the area in which the premises is located shall be consid-
    15  ered the appropriate public body to which notification shall be given.
    16    3. For purposes of this section, "substantial corporate change"  shall
    17  mean:
    18    (a) for a corporation, a change of eighty percent or more of the offi-
    19  cers  and/or directors, or a transfer of eighty percent or more of stock
    20  of such corporation, or an existing stockholder obtaining eighty percent
    21  or more of the stock of such corporation;
    22    (b) for a limited liability company, a change  of  eighty  percent  or
    23  more  of  the  managing  members of the company, or a transfer of eighty
    24  percent or more of ownership interest in said company,  or  an  existing
    25  member obtaining a cumulative of eighty percent or more of the ownership
    26  interest in said company; and
    27    (c) for a partnership, a change of eighty percent or more of the part-
    28  ners,  or  a transfer of eighty percent or more of ownership interest in
    29  said partnership, or an  existing  partner  obtaining  a  cumulative  of
    30  eighty percent or more of the ownership interest in said company.
    31    4. Such notification shall be made in such form as shall be prescribed
    32  by the rules of the bureau.
    33    5.  A  town, city or village may express an opinion for or against the
    34  granting of such application. Any such opinion shall be deemed  part  of
    35  the  record  upon  which  the bureau makes its determination to grant or
    36  deny the application.
    37    6. Such notification shall be made by: certified mail, return  receipt
    38  requested; overnight delivery service with proof of mailing; or personal
    39  service upon the offices of the clerk or community board.
    40    7.  The bureau shall require such notification to be on a standardized
    41  form that can be obtained on the internet or from the  bureau  and  such
    42  notification to include:
    43    (a)  the trade name or "doing business as" name, if any, of the estab-
    44  lishment;
    45    (b) the full name of the applicant;
    46    (c) the street address  of  the  establishment,  including  the  floor
    47  location or room number, if applicable;
    48    (d)  the  mailing  address of the establishment, if different than the
    49  street address;
    50    (e) the name, address and telephone number of the attorney  or  repre-
    51  sentative of the applicant, if any;
    52    (f) a statement indicating whether the application is for:
    53    (i) a new establishment;
    54    (ii) a transfer of an existing licensed business;
    55    (iii) a renewal of an existing license; or
    56    (iv) an alteration of an existing licensed premises;

        S. 1527                            41
     1    (g)  if  the  establishment is a transfer or previously licensed prem-
     2  ises, the name of the old establishment and such establishment's license
     3  serial number;
     4    (h)  in  the  case of a renewal or alteration application, the license
     5  serial number of the applicant; and
     6    (i) the type of license.
     7    § 186. Licenses, publication, general provisions. 1. The various types
     8  of licenses issued pursuant to this  article  shall  be  distinctive  in
     9  color and design so as to be readily distinguishable from each other.
    10    2. No license shall be transferable or assignable except that notwith-
    11  standing  any  other  provision of law, the license of a sole proprietor
    12  converting to corporate form, where such  proprietor  becomes  the  sole
    13  stockholder  and  only officer and director of such new corporation, may
    14  be transferred to the subject corporation if all  requirements  of  this
    15  chapter remain the same with respect to such license as transferred and,
    16  further,  the  licensee shall transmit to the bureau, within ten days of
    17  the transfer of license allowable under  this  subdivision,  on  a  form
    18  prescribed by the bureau, notification of the transfer of such license.
    19    3. No license shall be pledged or deposited as collateral security for
    20  any  loan  or  upon any other condition; and any such pledge or deposit,
    21  and any contract providing therefor, shall be void.
    22    4. Licenses issued under this article shall contain,  in  addition  to
    23  any further information or material to be prescribed by the rules of the
    24  bureau, the following information: (a) name of person to whom license is
    25  issued;  (b)  kind  of  license and what kind of traffic in marihuana is
    26  thereby permitted; (c) description by street and number,  or  otherwise,
    27  of licensed premises; and (d) a statement in substance that such license
    28  shall  not  be  deemed  a  property  or vested right, and that it may be
    29  revoked at any time pursuant to law.
    30    5. There shall be printed and furnished by the bureau to each licensee
    31  a statement of the causes for which licenses may be revoked. Such state-
    32  ment shall be prepared by the bureau and delivered to the licensee  with
    33  his  or  her  license  or  as soon thereafter as may be practicable. Any
    34  amendments thereto shall also be sent by the bureau to all licensees  as
    35  soon  as  may be practicable after such amendments. Failure to send such
    36  statements or changes therein, or failure to receive the  same,  or  any
    37  misstatement  or error contained in such statements or amendments shall,
    38  however, not be an excuse or justification for any violation of law,  or
    39  prevent, or remit, or decrease any penalty or forfeiture therefor.
    40    6.  Before  commencing  or doing any business for the time for which a
    41  license has been issued said license shall be  enclosed  in  a  suitable
    42  wood or metal frame having a clear glass space and a substantial wood or
    43  metal  back  so  that the whole of said license may be seen therein, and
    44  shall be posted up and at all times displayed in a conspicuous place  in
    45  the room where such business is carried on, so that all persons visiting
    46  such place may readily see the same. It shall be unlawful for any person
    47  holding  a  license to post such license or to permit such license to be
    48  posted upon premises other than the premises licensed, or upon  premises
    49  where  traffic in marihuana is being carried on by any person other than
    50  the licensee, or knowingly to deface, destroy or alter any such  license
    51  in  any  respect.  Whenever a license shall be lost or destroyed without
    52  fault on the part of the licensee or his or her agents or  employees,  a
    53  duplicate  license  in  lieu  thereof may be issued by the bureau in its
    54  discretion and in accordance with such rules  and  regulations  and  the
    55  payment of such fees, not exceeding five dollars, as it may prescribe.

        S. 1527                            42
     1    §  187.  Revocation  of  licenses  for cause. 1. Any license or permit
     2  issued pursuant to this article may  be  revoked,  cancelled,  suspended
     3  and/or  subjected  to  the  imposition of a civil penalty for cause, and
     4  must be revoked for the following causes:
     5    (a)  Conviction  of  the  licensee,  permittee  or his or her agent or
     6  employee for selling any illegal marihuana or marihuana products on  the
     7  premises licensed.
     8    (b) For transferring, assigning or hypothecating a license or permit.
     9    2.  Notwithstanding  the  issuance  of  a  license or permit by way of
    10  renewal, the bureau may revoke, cancel or suspend such license or permit
    11  and/or may impose a civil penalty against any holder of such license  or
    12  permit,  as  prescribed by this section and section one hundred nineteen
    13  of this chapter, for causes or violations occurring during  the  license
    14  period immediately preceding the issuance of such license or permit, and
    15  may  recover, as provided in section one hundred twelve of this chapter,
    16  the penal sum of the bond on file during said period.
    17    3. As used in this section, the term "for cause"  shall  also  include
    18  the  existence  of a sustained and continuing pattern of noise, disturb-
    19  ance, misconduct, or disorder on or about the licensed premises, related
    20  to the operation of the premises or the conduct of  its  patrons,  which
    21  adversely  affects  the  health, welfare or safety of the inhabitants of
    22  the area in which such licensed premises are located.
    23    4. The existence of a  sustained  and  continuing  pattern  of  noise,
    24  disturbance,  misconduct, or disorder on or about the licensed premises,
    25  related to the operation of the premises or the conduct of its  patrons,
    26  will be presumed upon the sixth incident reported to the bureau by a law
    27  enforcement  agency of noise or disturbance or misconduct or disorder on
    28  or about the licensed premises or related to the operation of the  prem-
    29  ises  or  the  conduct  of  its patrons, in any sixty day period, absent
    30  clear and convincing evidence of either fraudulent intent on the part of
    31  any complainant or a factual error with respect to the  content  of  any
    32  report concerning such complaint relied upon by the bureau.
    33    §  188.  Procedure  for  revocation or cancellation. 1. Any license or
    34  permit issued by the bureau pursuant to this  article  may  be  revoked,
    35  cancelled  or suspended and/or be subjected to the imposition of a mone-
    36  tary penalty in the manner prescribed by this section.
    37    2. The bureau may on its own initiative or on complaint of any  person
    38  institute  proceedings  to  revoke, cancel or suspend any retail license
    39  and may impose a civil penalty against the licensee after a  hearing  at
    40  which the licensee shall be given an opportunity to be heard. Such hear-
    41  ing  shall  be  held  in  such  manner  and  upon  such notice as may be
    42  prescribed by the rules of the bureau.
    43    § 189. Decisions of the bureau of marihuana policy and review  by  the
    44  courts.   Provisions of sections one hundred twenty, one hundred twenty-
    45  one and one hundred twenty-four of this chapter shall apply to marihuana
    46  licenses issued under this article.
    47    § 190. Minority and women-owned businesses and incubator program.  The
    48  bureau shall:
    49    1. Implement a social equity plan and actively promote racial, ethnic,
    50  and  gender diversity when issuing licenses for marihuana related activ-
    51  ities, including by prioritizing consideration of applications by appli-
    52  cants who qualify as a minority and women-owned  business.  Such  quali-
    53  fications shall be determined by the bureau.
    54    2.  The  bureau shall create a social equity plan to promote diversity
    55  in ownership and employment in the marihuana industry and ensure  inclu-
    56  sion  of: (a) minority-owned businesses; (b) women-owned businesses; and

        S. 1527                            43
     1  (c) minority and women-owned businesses, as defined in subdivision  five
     2  of this section.
     3    3.  The  social  equity plan shall consider additional criteria in its
     4  licensing determinations. Under the social  equity  plan,  extra  weight
     5  shall be given to applications that demonstrate that an applicant:
     6    (a)  is a member of a community group that has been disproportionately
     7  impacted by the enforcement of marihuana prohibition;
     8    (b) has an income lower than eighty percent of the  median  income  of
     9  the county in which the applicant resides; and
    10    (c)  was  convicted of a marihuana-related offense prior to the effec-
    11  tive date of this bill.
    12    4. The bureau shall also create an incubator program to provide direct
    13  support to  social  equity  applicants  after  they  have  been  granted
    14  licenses.  The program shall provide direct support in the form of coun-
    15  seling services, education,  small  business  coaching,  and  compliance
    16  assistance.
    17    5.  For  the purposes of this section, the following definitions shall
    18  apply:
    19    (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
    20  including  a sole proprietorship, partnership, limited liability company
    21  or corporation that is:
    22    (i) at least fifty-one percent owned by one  or  more  minority  group
    23  members;
    24    (ii)  an enterprise in which such minority ownership is real, substan-
    25  tial and continuing;
    26    (iii) an enterprise in which such minority ownership has and exercises
    27  the authority to control independently the day-to-day business decisions
    28  of the enterprise;
    29    (iv) an enterprise authorized to do business in this state  and  inde-
    30  pendently owned and operated;
    31    (v) an enterprise that is a small business.
    32    (b)  "minority  group  member"  shall  mean a United States citizen or
    33  permanent resident alien who is and can demonstrate membership in one of
    34  the following groups:
    35    (i) black persons having origins in any of the  black  african  racial
    36  groups;
    37    (ii)  hispanic  persons  of  mexican,  puerto rican, dominican, cuban,
    38  central or south american of either indian or hispanic  origin,  regard-
    39  less of race;
    40    (iii)  native american or alaskan native persons having origins in any
    41  of the original peoples of north america;
    42    (iv) asian and pacific islander persons having origins in any  of  the
    43  far  east  countries,  south  east  asia, the indian subcontinent or the
    44  pacific islands.
    45    (c) "women-owned business" shall mean a business enterprise, including
    46  a sole proprietorship, partnership, limited liability company or  corpo-
    47  ration that is:
    48    (i)  at  least  fifty-one  percent  owned by one or more United States
    49  citizens or permanent resident aliens who are women;
    50    (ii) an enterprise in which the ownership interest of  such  women  is
    51  real, substantial and continuing;
    52    (iii)  an  enterprise  in which such women ownership has and exercises
    53  the authority to control independently the day-to-day business decisions
    54  of the enterprise;
    55    (iv) an enterprise authorized to do business in this state  and  inde-
    56  pendently owned and operated;

        S. 1527                            44
     1    (v)  an  enterprise  that  is a small business pursuant to subdivision
     2  twenty of this section.
     3    (d) a firm owned by a minority group member who is also a woman may be
     4  defined as a minority-owned business, a women-owned business, or both.
     5    6.  The  bureau  shall actively promote applicants that foster racial,
     6  ethnic, and gender diversity in their workforce.
     7    7. Licenses issued to minority and women-owned businesses or under the
     8  social equity plan shall not be transferable except to qualified minori-
     9  ty and women-owned businesses or social equity applicants.
    10    8. The bureau shall collect demographic data on owners  and  employees
    11  in the marihuana industry and shall annually publish such data.
    12    §  191.  Disposition  of  moneys received for license fees. The bureau
    13  shall establish a scale of application,  licensing,  and  renewal  fees,
    14  based  upon the cost of enforcing this article and the size of the mari-
    15  huana business being licensed, as follows:
    16    1. Each licensing authority shall charge each licensee a licensure and
    17  renewal fee, as applicable. The  licensure  and  renewal  fee  shall  be
    18  calculated  to cover the costs of administering this article. The licen-
    19  sure fee may vary depending  upon  the  varying  costs  associated  with
    20  administering  the  various  regulatory  requirements of this article as
    21  they relate to the nature and scope of the  different  licensure  activ-
    22  ities,  but  shall  not  exceed  the  reasonable regulatory costs to the
    23  licensing authority.
    24    2. The total fees assessed pursuant to this article shall be set at an
    25  amount that will fairly and proportionately  generate  sufficient  total
    26  revenue to fully cover the total costs of administering this article.
    27    3.  All  license  fees  shall  be set on a scaled basis by the bureau,
    28  dependent on the size of the business.
    29    4. The bureau shall deposit all fees collected in the New  York  state
    30  marihuana revenue fund established pursuant to section ninety-nine-ff of
    31  the state finance law.
    32    §  192.  Persons  forbidden  to traffic in marihuana. 1. The following
    33  persons are forbidden to traffic in marihuana:
    34    (a) A person under the age of twenty-one years.
    35    (b) A person who is not a citizen of the United  States  or  an  alien
    36  lawfully admitted for permanent residence in the United States.
    37    (c) A co-partnership or a corporation, unless each member of the part-
    38  nership,  or  each of the principal officers and directors of the corpo-
    39  ration, is a citizen of the United States or an alien lawfully  admitted
    40  for  permanent  residence in the United States, not less than twenty-one
    41  years of age.
    42    (d) (i) A person who shall have had  any  license  issued  under  this
    43  chapter  revoked  for  cause, until the expiration of two years from the
    44  date of such revocation.
    45    (ii) A person not licensed under the provisions of this  chapter,  who
    46  has  been convicted of a violation of this chapter, until the expiration
    47  of two years from the date of such conviction.
    48    (e) A corporation or co-partnership, if any officer  and  director  or
    49  any  partner,  while  not licensed under the provisions of this chapter,
    50  has been convicted of a violation of this chapter, or has had a  license
    51  issued under this chapter revoked for cause, until the expiration of two
    52  years from the date of such conviction or revocation.
    53    2. An applicant shall not be denied a license under this article based
    54  solely  on a conviction for a violation of article two hundred twenty or
    55  section 240.36 of the penal law, prior to the date article  two  hundred
    56  twenty-one of the penal law took effect, or a conviction for a violation

        S. 1527                            45
     1  of  article  two hundred twenty-one of the penal law after the effective
     2  date of this article.
     3    §  193. Surrender of license; notice to police officials. Within three
     4  days after a license shall have been revoked pursuant to  this  article,
     5  notice  thereof  shall  be  given to the licensee by mailing such notice
     6  addressed to him at the premises licensed. Notice shall also  be  mailed
     7  to  the owner of the premises licensed. The holder of such license shall
     8  thereupon surrender same to the  bureau.  The  mailing  thereof  by  the
     9  licensee  to  the bureau by registered mail or insured parcel post shall
    10  be deemed sufficient compliance with this  section.  The  bureau,  imme-
    11  diately  upon  giving notice of revocation, shall serve a written notice
    12  thereof upon the commissioner of police, chief of police or chief police
    13  officer of the city or village in  which  the  premises  for  which  the
    14  revoked license was issued is situated, or upon the sheriff of the coun-
    15  ty  or  a constable of the town in case the license was issued for prem-
    16  ises situated in a town and not within any city or village.  Such notice
    17  shall include a statement of the number of such license,  the  name  and
    18  place  of  residence of the holder thereof, the location of the licensed
    19  premises, and the date when such  license  was  revoked.  In  case  such
    20  license  be  not forthwith surrendered, the bureau shall issue a written
    21  demand for the surrender of such license and deliver said demand to  the
    22  sheriff  of the county in which the licensed premises are located, or to
    23  any representative of the bureau, and  said  sheriff  or  representative
    24  shall immediately take possession of such license and return the same to
    25  the bureau.
    26    §  194. Protections for the use of marihuana. Individuals and licensed
    27  entities shall not be subject to arrest, prosecution, or penalty in  any
    28  manner,  or  denied any right or privilege, including but not limited to
    29  civil liability or disciplinary action by a business or occupational  or
    30  professional  licensing  board  or  bureau, solely for conduct permitted
    31  under this article. For the avoidance of doubt, the  appellate  division
    32  of  the  supreme court of the state of New York, and any disciplinary or
    33  character and fitness committees established by  them  are  occupational
    34  and  professional  licensing  boards within the meaning of this section.
    35  State or local law enforcement agencies  shall  not  cooperate  with  or
    36  provide  assistance to the government of the United States or any agency
    37  thereof in enforcing the Federal Controlled Substances Act,  21,  U.S.C.
    38  et  seq.,  solely  for  actions  consistent with this chapter, except as
    39  pursuant to a valid court order.
    40    § 195. Discrimination protections for the use of marihuana or  medical
    41  marihuana. 1. No school or landlord may refuse to enroll or lease to and
    42  may  not  otherwise  penalize  a person solely for conduct allowed under
    43  sections 221.05 and 221.05-a of the penal law or title five-A of article
    44  thirty-three of the public health law, except as exempted:
    45    (a) If failing to do so would cause the school or landlord to  lose  a
    46  monetary or licensing related benefit under federal law or regulations;
    47    (b) If the institution has adopted a code of conduct prohibiting mari-
    48  huana use on the basis of religious belief;
    49    (c)  If  a property is registered with the New York Smoke-Free Housing
    50  Registry, it is not required to permit the smoking of marihuana products
    51  on its premises.
    52    2. For the purposes of medical care, including  organ  transplants,  a
    53  registered qualifying patient's authorized use of medical marihuana must
    54  be  considered  the  equivalent of the use of any other medication under
    55  the direction of a practitioner and does not constitute the  use  of  an

        S. 1527                            46
     1  illicit  substance  or  otherwise  disqualify  a  registered  qualifying
     2  patient from medical care.
     3    3.  No person may be denied custody of or visitation or parenting time
     4  with a minor, and there is no presumption of neglect or child  endanger-
     5  ment for conduct allowed under sections 221.05 and 221.05-a of the penal
     6  law,  unless the person's behavior creates an unreasonable danger to the
     7  safety of the minor as established by clear and convincing evidence. For
     8  the purposes of this section,  an  "unreasonable  danger"  determination
     9  cannot  be  based  solely  on whether, when, and how often a person uses
    10  marihuana without separate evidence of harm.
    11    § 196. Employment protections. 1.  Unless an employer establishes by a
    12  preponderance of the evidence that  the  lawful  use  of  marihuana  has
    13  impaired  the employee's ability to perform the employee's job responsi-
    14  bilities, it shall be unlawful to take  any  adverse  employment  action
    15  against an employee based on either:
    16    (a)  conduct  allowed  under sections 221.05 and 221.05-a of the penal
    17  law; or
    18    (b) the employee's positive drug  test  for  marihuana  components  or
    19  metabolites.
    20    2.  For  the  purposes  of  this  section, an employer may consider an
    21  employee's ability to perform the employee's job responsibilities to  be
    22  impaired when the employee manifests specific articulable symptoms while
    23  working that decrease or lessen the employee's performance of the duties
    24  or tasks of the employee's job position.
    25    3.  Nothing  in  this  section shall restrict an employer's ability to
    26  prohibit or take adverse employment action for the possession or use  of
    27  intoxicating  substances  during  work  hours, or require an employer to
    28  commit any act that would cause the  employer  to  be  in  violation  of
    29  federal  law,  or that would result in the loss of a federal contract or
    30  federal funding.
    31    4. As used in this section, "adverse employment action" means refusing
    32  to hire or employ, barring or discharging from employment,  requiring  a
    33  person  to  retire from employment, or discriminating against in compen-
    34  sation or in terms, conditions, or privileges of employment.
    35    § 197. Protections for  persons  under  state  supervision.  A  person
    36  currently  under  parole,  probation  or  other  state  supervision,  or
    37  released on bail awaiting trial may not be punished or otherwise  penal-
    38  ized for conduct allowed under sections 221.05 and 221.05-a of the penal
    39  law.
    40    §  198.  Professional  and  medical  record  keeping. Any professional
    41  providing services in connection with a licensed or potentially licensed
    42  business under this chapter, or in connection with other conduct permit-
    43  ted under this chapter, and any medical professional  providing  medical
    44  care to a patient, may agree with their client or patient to maintain no
    45  record,  or  any  reduced  level of record keeping that professional and
    46  client or patient may agree. In case  of  such  agreement,  the  profes-
    47  sional's only obligation shall be to keep such records as agreed, and to
    48  keep  a record of the agreement.  Such reduced record keeping is conduct
    49  permitted under this chapter,  and  shall  attract  the  protections  of
    50  section one hundred ninety-four of this article.
    51    §  32.  The  state finance law is amended by adding three new sections
    52  99-ff, 99-gg and 99-hh to read as follows:
    53    § 99-ff. New York state marihuana revenue fund.  1.  There  is  hereby
    54  established  in  the  joint  custody  of  the  state comptroller and the
    55  commissioner of taxation and finance a special fund to be known  as  the
    56  "New York state marihuana revenue fund".

        S. 1527                            47
     1    2.  Such fund shall consist of all revenues received by the department
     2  of taxation and finance, pursuant to the  provisions  of  article  eigh-
     3  teen-A of the tax law and all other moneys appropriated thereto from any
     4  other fund or source pursuant to law.  Nothing contained in this section
     5  shall prevent the state from receiving grants, gifts or bequests for the
     6  purposes of the fund as defined in this section and depositing them into
     7  the fund according to law.
     8    3.  The  moneys  in  such  fund  shall  be  expended for the following
     9  purposes:
    10    (a) Reasonable costs  incurred  by  the  department  of  taxation  and
    11  finance for administering and collecting the taxes imposed by this part;
    12  provided,  however,  such  costs  shall  not  exceed four percent of tax
    13  revenues received.
    14    (b) Reasonable costs incurred by the bureau of  marihuana  policy  for
    15  implementing,  administering, and enforcing the marihuana regulation and
    16  taxation act to the extent those costs are not  reimbursed  pursuant  to
    17  sections one hundred eighty-nine and one hundred ninety of article elev-
    18  en  of  the  alcoholic beverage control law. This paragraph shall remain
    19  operative through the two thousand twenty-four -- two  thousand  twenty-
    20  five fiscal year.
    21    (c)  Beginning  with the two thousand twenty-one -- two thousand twen-
    22  ty-two fiscal year and continuing through the two thousand  twenty-three
    23  --  two  thousand  twenty-four fiscal year, the commissioner of taxation
    24  and finance shall annually disburse one million dollars to the marihuana
    25  microbusiness and marihuana  license  revolving  loan  fund  established
    26  pursuant to section ninety-nine-ii of the state finance law.
    27    (d)  Beginning  with the two thousand twenty-one -- two thousand twen-
    28  ty-two fiscal year and continuing through the two thousand thirty -- two
    29  thousand thirty-one  fiscal  year,  the  commissioner  of  taxation  and
    30  finance  shall  annually disburse the following sums for the purposes of
    31  data collection and reporting:
    32    (1) Seven hundred fifty thousand dollars to the  bureau  of  marihuana
    33  policy  to  track  and report data related to the licensing of marihuana
    34  businesses, including the geographic location, structure,  and  function
    35  of  licensed marihuana businesses, and demographic data, including race,
    36  ethnicity, and gender, of license holders. The bureau of marihuana poli-
    37  cy shall publish reports on its findings annually  and  shall  make  the
    38  reports available to the public.
    39    (2) Seven hundred fifty thousand dollars to the department of criminal
    40  justice  services  to  track and report data related to any infractions,
    41  violations, or criminal convictions that occur under any of the  remain-
    42  ing  marihuana  statutes.    The department of criminal justice services
    43  shall publish reports on  its  findings  annually  and  shall  make  the
    44  reports available to the public.
    45    (3)  One  million  dollars  to  the  state  university  of New York to
    46  research and evaluate the implementation and  effect  of  the  marihuana
    47  regulation  and taxation act.  No more than four percent of these monies
    48  may be used for expenses related to administrative costs  of  conducting
    49  such  research,  and  to,  if  appropriate,  make recommendations to the
    50  legislature and governor regarding possible amendments to the  marihuana
    51  regulation and taxation act. The recipients of these funds shall publish
    52  reports on their findings at a minimum of every two years and shall make
    53  the  reports  available  to  the public. The research funded pursuant to
    54  this subdivision shall include but not necessarily be limited to:

        S. 1527                            48
     1    (A) the impacts on public health, including  health  costs  associated
     2  with  marihuana use, as well as whether marihuana use is associated with
     3  an 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  act  at  preventing
     9  underage  access  to  and  use  of marihuana and marihuana products, and
    10  studying the health-related  effects  among  users  of  varying  potency
    11  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 act, and whether different  agencies
    32  might do so more effectively; and
    33    (I)  any  environmental issues related to marihuana production and the
    34  criminal prohibition of marihuana production.
    35    4. After the dispersal of moneys pursuant to subdivision three of this
    36  section, the remaining moneys in the fund  deposited  during  the  prior
    37  fiscal year shall be disbursed into the state lottery fund and two addi-
    38  tional  sub-funds created within the marihuana revenue fund known as the
    39  drug treatment and public education fund and the community grants  rein-
    40  vestment fund, as follows:
    41    (a)  twenty-five  percent shall be deposited in the state lottery fund
    42  established by section ninety-two-c of this article; provided that  such
    43  moneys shall be distributed to the department of education in accordance
    44  with  subdivisions  two and four of section ninety-two-c of this article
    45  and shall not be utilized for the purposes of subdivision three of  such
    46  section.  Monies  allocated  by  this article may enhance, but shall not
    47  supplant, existing dedicated funds to the department of education;
    48    (b) twenty-five percent shall be deposited in the drug  treatment  and
    49  public  education  fund  established  by  section ninety-nine-gg of this
    50  article; and
    51    (c) fifty percent shall be deposited in the community grants reinvest-
    52  ment fund established by section ninety-nine-hh of this article.
    53    5. On or before the first day of February each year, the  commissioner
    54  of  taxation and finance shall provide a written report to the temporary
    55  president of the senate, speaker of the assembly, chair  of  the  senate
    56  finance  committee,  chair of the assembly ways and means committee, the

        S. 1527                            49
     1  state comptroller and the public.  Such  report  shall  detail  how  the
     2  moneys of the fund were utilized during the preceding calendar year, and
     3  shall include:
     4    (i)  the amount of money dispersed from the fund and the award process
     5  used for such disbursements;
     6    (ii) recipients of awards from the fund;
     7    (iii) the amount awarded to each recipient of an award from the fund;
     8    (iv) the purposes for which such awards were granted; and
     9    (v) a summary financial plan for such monies which shall include esti-
    10  mates of all receipts and all disbursements for the current and succeed-
    11  ing fiscal years, along with the actual results from  the  prior  fiscal
    12  year.
    13    6. Moneys shall be payable directly from the marihuana revenue fund to
    14  the department.
    15    §  99-gg.  New  York  state  drug  treatment public education fund. 1.
    16  There is hereby established in the joint  custody  of  the  state  comp-
    17  troller  and  the commissioner of taxation and finance a special fund to
    18  be known as the "New York state drug treatment public education fund".
    19    2. Such fund shall  consist  of  revenues  received  pursuant  to  the
    20  provisions  of  section  ninety-nine-ff  of  this  article and all other
    21  moneys appropriated thereto from any other fund or  source  pursuant  to
    22  law.  Nothing  contained  in  this  section shall prevent the state from
    23  receiving grants, gifts or bequests for the  purposes  of  the  fund  as
    24  defined  in  this section and depositing them into the fund according to
    25  law.
    26    3. The moneys in such fund shall be expended to  the  commissioner  of
    27  the  office of alcoholism and substance abuse and disbursed in consulta-
    28  tion with the commissioner of health for the following purposes:
    29    (a) To develop and implement a youth-focused public  health  education
    30  and prevention campaign, including school-based prevention, early inter-
    31  vention,  and  health  care  services and programs to reduce the risk of
    32  marihuana and other substance use by school-aged children;
    33    (b) To develop  and  implement  a  statewide  public  health  campaign
    34  focused  on  the health effects of marihuana and legal use, including an
    35  ongoing education and prevention  campaign  that  educates  the  general
    36  public,  including parents, consumers and retailers, on the legal use of
    37  marihuana, the importance of preventing youth access, the importance  of
    38  safe  storage and preventing secondhand marihuana smoke exposure, infor-
    39  mation for pregnant or breastfeeding women, and the  overconsumption  of
    40  edibles;
    41    (c) To provide substance use disorder treatment programs for youth and
    42  adults,  with  an  emphasis  on  programs that are culturally and gender
    43  competent, trauma-informed, evidence-based and provide  a  continuum  of
    44  care  that  includes screening and assessment (substance use disorder as
    45  well as mental health), early  intervention,  active  treatment,  family
    46  involvement,  case management, overdose prevention, prevention of commu-
    47  nicable diseases  related  to  substance  use,  relapse  management  for
    48  substance  use and other co-occurring behavioral health disorders, voca-
    49  tional services, literacy services, parenting  classes,  family  therapy
    50  and  counseling  services,  medication-assisted  treatments, psychiatric
    51  medication and psychotherapy; and
    52    (d) To evaluate the programs being funded to  determine  their  effec-
    53  tiveness.
    54    4.  On or before the first day of February each year, the commissioner
    55  of the office of alcoholism and substance abuse services shall provide a
    56  written report to the temporary president of the senate, speaker of  the

        S. 1527                            50
     1  assembly,  chair  of the senate finance committee, chair of the assembly
     2  ways and means committee, chair of the senate  committee  on  alcoholism
     3  and  drug abuse, chair of the assembly alcoholism and drug abuse commit-
     4  tee,  the state comptroller and the public. Such report shall detail how
     5  the moneys of the fund were utilized during the preceding calendar year,
     6  and shall include:
     7    (a) the amount of money dispersed from the fund and the award  process
     8  used for such disbursements;
     9    (b) recipients of awards from the fund;
    10    (c) the amount awarded to each recipient of an award from the fund;
    11    (d) the purposes for which such awards were granted; and
    12    (e) a summary financial plan for such monies which shall include esti-
    13  mates of all receipts and all disbursements for the current and succeed-
    14  ing  fiscal  years,  along with the actual results from the prior fiscal
    15  year.
    16    5. Moneys shall be payable from the fund on the audit and  warrant  of
    17  the  comptroller  on vouchers approved and certified by the commissioner
    18  of education.
    19    § 99-hh. New York state community grants reinvestment fund.  1.  There
    20  is  hereby established in the joint custody of the state comptroller and
    21  the commissioner of taxation and finance a special fund to be  known  as
    22  the "New York state community grants reinvestment fund".
    23    2.  Such  fund  shall consist of all revenues received pursuant to the
    24  provisions of section ninety-nine-ff  of  this  article  and  all  other
    25  moneys  appropriated  thereto  from any other fund or source pursuant to
    26  law. Nothing contained in this section  shall  prevent  the  state  from
    27  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
    28  defined in this section and depositing them into the fund  according  to
    29  law.
    30    3.  The fund shall be governed and administered by an executive steer-
    31  ing committee of thirteen members established by the office of  children
    32  and  family  services  and including additional representatives from the
    33  labor department, and the health department appointed  by  the  governor
    34  and  a representative of the education department appointed by the board
    35  of regents. In addition, the majority and minority leaders of the senate
    36  and assembly shall each appoint one member to  the  steering  committee,
    37  the comptroller shall appoint three additional members, and the attorney
    38  general shall appoint two additional members from relevant local govern-
    39  ment  entities and community-based organizations. Every effort should be
    40  made to ensure a balanced and diverse committee, which shall have exper-
    41  tise in job placement, homelessness and housing, behavioral  health  and
    42  substance use disorder treatment, and effective rehabilitative treatment
    43  for adults and juveniles, and shall include representatives of organiza-
    44  tions  serving communities impacted by past federal and state drug poli-
    45  cies.
    46    4. The moneys in such fund shall be expended by the executive steering
    47  committee to qualified community-based nonprofit organizations  for  the
    48  purpose  of  reinvesting  in  communities disproportionately affected by
    49  past federal and state drug policies. The grants from this program shall
    50  be used to support job placement, job skills services, adult  education,
    51  mental  health treatment, substance use disorder treatment, system navi-
    52  gation services, legal services to  address  barriers  to  reentry,  and
    53  linkages  to  medical care, women's health services and other community-
    54  based supportive services.
    55    5. On or before the first day of February each year, the  commissioner
    56  of  the  office  of children and family services shall provide a written

        S. 1527                            51
     1  report to the temporary president of the senate, speaker of  the  assem-
     2  bly,  chair  of the senate finance committee, chair of the assembly ways
     3  and means committee, chair of the senate committee on children and fami-
     4  lies,  chair  of  the assembly children and families committee, chair of
     5  the senate committee on labor, chair of the  assembly  labor  committee,
     6  chair  of  the  senate committee on health, chair of the assembly health
     7  committee, chair of the senate committee  on  education,  chair  of  the
     8  assembly education committee, the state comptroller and the public. Such
     9  report  shall detail how the monies of the fund were utilized during the
    10  preceding calendar year, and shall include:
    11    (a) the amount of money dispersed from the fund and the award  process
    12  used for such disbursements;
    13    (b) recipients of awards from the fund;
    14    (c) the amount awarded to each recipient of an award from the fund;
    15    (d) the purposes for which such awards were granted; and
    16    (e) a summary financial plan for such monies which shall include esti-
    17  mates of all receipts and all disbursements for the current and succeed-
    18  ing  fiscal  years,  along with the actual results from the prior fiscal
    19  year.
    20    6. Moneys shall be payable from the fund on the audit and  warrant  of
    21  the  comptroller  on vouchers approved and certified by the commissioner
    22  of education.
    23    § 33. The tax law is amended by adding a new article 18-A to  read  as
    24  follows:
    25                                ARTICLE 18-A
    26                      PROVISIONS RELATING TO MARIHUANA
    27  Section 446.   Definitions.
    28          447.   Taxes imposed.
    29          447-a. Local taxes on marihuana by a city or town.
    30          447-b. Ordinary  and  necessary  expenses  deductible  from  net
    31                   income.
    32          448.   Surety bond.
    33          449.   Collection of tax.
    34    § 446. Definitions. As used in this article:
    35    1.  "Commercial market activity" includes the cultivation, possession,
    36  manufacture,  distribution,  processing,  storing,  laboratory  testing,
    37  labeling,  transportation,  delivery  or sale of marihuana and marihuana
    38  products, as provided for in article eleven of  the  alcoholic  beverage
    39  control law, but shall not include medical marihuana activities provided
    40  for in title five-A of article thirty-three of the public health law.
    41    2.    "Concentrated  cannabis"  means (a) the separated resin, whether
    42  crude or purified, obtained from a plant of the genus Cannabis; or (b) a
    43  material,  preparation,  mixture,  compound  or  other  substance  which
    44  contains more than three percent by weight of delta-9 tetrahydrocannabi-
    45  nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
    46  tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
    47  system.
    48    3.  "Marihuana"  means  all  parts of the plant of the genus Cannabis,
    49  whether growing or not; the seeds thereof; the resin extracted from  any
    50  part  of  the  plant; and every compound, manufacture, salt, derivative,
    51  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    52  include  the mature stalks of the plant, fiber produced from the stalks,
    53  oil or cake made from the seeds of the plant, any other compound,  manu-
    54  facture,  salt, derivative, mixture, or preparation of the mature stalks
    55  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    56  sterilized  seed of the plant which is incapable of germination. It does

        S. 1527                            52
     1  not include all parts of the plant Cannabis sativa L.,  whether  growing
     2  or not, having no more than three-tenths of one percent tetrahydrocanna-
     3  binol (THC).
     4    4.  "Marihuana  consumer"  means  a  person twenty-one years of age or
     5  older who purchased marihuana or marihuana products for personal use  by
     6  persons twenty-one years of age or older, but not for resale to others.
     7    5.  "Marihuana  flowers" shall mean the dried flowers of the marihuana
     8  plant.
     9    6. "Marihuana leaves" shall mean all  parts  of  the  marihuana  plant
    10  other than marihuana flowers that are sold or consumed.
    11    7.  "Marihuana  processor"  means  a  person licensed by the bureau of
    12  marihuana policy to purchase marihuana and  concentrated  cannabis  from
    13  marihuana  producers,  to  process marihuana, concentrated cannabis, and
    14  marihuana-infused products, package and  label  marihuana,  concentrated
    15  cannabis  and marihuana-infused products for sale in retail outlets, and
    16  sell marihuana, concentrated cannabis and marihuana infused products  at
    17  wholesale to marihuana retailers.
    18    8. "Marihuana producer" means a person licensed by the bureau of mari-
    19  huana  policy  to  produce, process, and sell marihuana and concentrated
    20  cannabis at wholesale to marihuana processors, marihuana  retailers,  or
    21  other marihuana producers, but not to consumers.
    22    9.  "Marihuana  products"  means marihuana, concentrated cannabis, and
    23  marihuana-infused products.
    24    10. "Marihuana-infused products" means products that contain marihuana
    25  or concentrated cannabis and are intended for human use or  consumption,
    26  such as, but not limited to, edible products, ointments, and tinctures.
    27    11. "Immature marihuana plant" means a marihuana plant with no observ-
    28  able flowers or buds.
    29    12.  "Marihuana  retailer"  means  a  person licensed by the bureau of
    30  marihuana policy to purchase marihuana, concentrated cannabis, and mari-
    31  huana-infused products from marihuana producers and marihuana processors
    32  and sell marihuana, marihuana-infused products, and concentrated  canna-
    33  bis in a retail outlet.
    34    13.  "Marihuana  retailer  for on-premises consumption" means a person
    35  licensed by the  bureau  of  marihuana  policy  to  purchase  marihuana,
    36  concentrated  cannabis,  and  marihuana  infused products from marihuana
    37  producers, marihuana retailers and marihuana processors and  sell  mari-
    38  huana  products  for  a customer to consume while the customer is within
    39  the facility.
    40    § 447. Taxes imposed.  1. (a) There is hereby  levied  and  imposed  a
    41  cultivation  tax upon all harvested marihuana that enters the commercial
    42  market upon all persons required to be licensed to  cultivate  marihuana
    43  pursuant  to  article  eleven of the alcoholic beverage control law. The
    44  tax shall be due after the marihuana is harvested.
    45    (i) Marihuana flowers shall be taxed at a rate of sixty-two cents  per
    46  dry-weight gram.
    47    (ii)  Marihuana  leaves shall be taxed at a rate of ten cents per dry-
    48  weight gram.
    49    (b) There is hereby levied and imposed a nursery tax upon all immature
    50  plants that enter the commercial market upon all persons required to  be
    51  licensed  to  produce  immature plants pursuant to article eleven of the
    52  alcoholic beverage control law. Immature plants shall be taxed at a rate
    53  of one dollar and thirty-five cents each.
    54    (c) There is hereby levied and imposed a tax upon  marihuana  sold  or
    55  otherwise  transferred  by a marihuana producer to a marihuana processor

        S. 1527                            53
     1  or marihuana retailer at a rate equivalent to the rate established under
     2  article twenty-eight of this chapter.
     3    (d) A marihuana excise tax is hereby levied and imposed upon customers
     4  of  nonmedical  marihuana  or nonmedical marihuana products sold in this
     5  state at the rate fifteen percent of any sale by a retailer,  microbusi-
     6  ness, or other person required to be licensed pursuant to article eleven
     7  of  the  alcoholic  beverage control law to sell marihuana and marihuana
     8  products directly to a customer.
     9    (e) The department shall establish procedures for  the  collection  of
    10  all taxes levied.
    11    (f)  No  tax  established by this section shall be levied upon medical
    12  marihuana intended for sale to a certified patient or  designated  care-
    13  giver  pursuant  to  title  five-A of article thirty-three of the public
    14  health law.
    15    2. For reporting periods beginning later than one year  following  the
    16  effective  date  of this article, the rates of tax under subdivision one
    17  of this section shall be adjusted for each  biennium  according  to  the
    18  cost-of-living adjustment for the calendar year.
    19    3.  The  department  shall regularly review the rates of the tax under
    20  subdivision one of this section and make recommendations to the legisla-
    21  ture regarding appropriate adjustments to the rates  that  will  further
    22  the purposes of:
    23    (a) maximizing net revenue;
    24    (b) minimizing the illegal marihuana industry; and
    25    (c) discouraging the use of marihuana by minors under twenty-one years
    26  of age.
    27    §  447-a. Local taxes on marihuana by a city or town. Any city or town
    28  in this state, acting through its  local  legislative  body,  is  hereby
    29  authorized  and  empowered to adopt and amend local laws imposing in any
    30  such city or town a sales tax on marihuana retailers at  a  rate  of  no
    31  more  than two percent of the sale price of marihuana products sold to a
    32  marihuana consumer. Any taxes imposed pursuant to the authority of  this
    33  section  shall  be  administered  and collected by the department in the
    34  same manner as the taxes imposed under section four  hundred  forty-nine
    35  of  this  article.  The  commissioner  is  hereby empowered to make such
    36  provisions as it  deems  necessary  for  the  joint  administration  and
    37  collection  of  the state and local taxes imposed and authorized by this
    38  article.
    39    § 447-b. Ordinary and necessary expenses deductible from  net  income.
    40  Notwithstanding  any  federal  tax law to the contrary, in computing net
    41  income for businesses exempted from criminal  penalties  under  articles
    42  two hundred twenty and two hundred twenty-one of the penal law and arti-
    43  cle eleven of the alcoholic beverage control law, there shall be allowed
    44  as  a deduction from state taxes all the ordinary and necessary expenses
    45  paid or incurred during the taxable year in carrying  on  any  trade  or
    46  business,  including  but not limited to, reasonable allowance for sala-
    47  ries or other compensation for personal services actually rendered.
    48    § 448. Surety bond. Marihuana  retailer  applicants  are  required  to
    49  submit  a  surety  bond  with  the department equal to two months of the
    50  cultivation facility's anticipated  retail  marihuana  excise  tax.  The
    51  surety bond must be issued by a company authorized to do business in the
    52  state.  Proof  of  surety  bond  is required for approval of applicant's
    53  retail license.
    54    § 449. Collection of tax. This tax shall be collected by  the  commis-
    55  sioner who shall establish a procedure for the collection of this tax.

        S. 1527                            54
     1    §  34.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
     2  of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
     3  ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
     4  the  laws  of 1977 and as relettered by chapter 192 of the laws of 1980,
     5  are amended to read as follows:
     6    (i)  prior to the filing of an accusatory instrument in a local crimi-
     7  nal court against such person, the prosecutor elects  not  to  prosecute
     8  such  person.  In such event, the prosecutor shall serve a certification
     9  of such disposition upon the division of criminal justice  services  and
    10  upon  the appropriate police department or law enforcement agency which,
    11  upon receipt thereof, shall comply with  the  provisions  of  paragraphs
    12  (a),  (b),  (c)  and  (d) of subdivision one of this section in the same
    13  manner as is required thereunder with respect to an  order  of  a  court
    14  entered pursuant to said subdivision one[.]; or
    15    (j)  following the arrest of such person, the arresting police agency,
    16  prior to the filing of an accusatory  instrument  in  a  local  criminal
    17  court  but subsequent to the forwarding of a copy of the fingerprints of
    18  such person to the division of criminal justice services, elects not  to
    19  proceed  further. In such event, the head of the arresting police agency
    20  shall serve a certification of such disposition  upon  the  division  of
    21  criminal justice services which, upon receipt thereof, shall comply with
    22  the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
    23  this  section  in the same manner as is required thereunder with respect
    24  to an order of a court entered pursuant to said subdivision one[.]; or
    25    (k) (i) The accusatory instrument alleged a violation of  article  two
    26  hundred  twenty  or section 240.36 of the penal law, prior to the taking
    27  effect of article two hundred twenty-one of the penal  law,  or  by  the
    28  conviction  of  such person of a violation of [article two hundred twen-
    29  ty-one] section 221.45 of the penal law on or after the  effective  date
    30  of  the  chapter  of the laws of two thousand nineteen that amended this
    31  subdivision or a violation of section 221.05,  221.10,  221.15,  221.20,
    32  221.25, 221.30, 221.35 or 221.40 of the penal law prior to the effective
    33  date  of  the  chapter of the laws of two thousand nineteen that amended
    34  this subdivision; and (ii) the sole  controlled  substance  involved  is
    35  [marijuana; (iii) the conviction was only for a violation or violations;
    36  and  (iv)  at  least three years have passed since the offense occurred]
    37  marihuana.  No defendant shall be required or permitted to waive  eligi-
    38  bility for sealing pursuant to this paragraph as part of a plea of guil-
    39  ty, sentence or any agreement related to a conviction for a violation of
    40  section  221.45  of  the penal law. Any such waiver shall be deemed void
    41  and wholly unenforceable.
    42    § 35. Subdivision 4 of section 160.50 of the criminal  procedure  law,
    43  as  amended by chapter 905 of the laws of 1977 and renumbered by chapter
    44  142 of the laws of 1991, is amended to read as follows:
    45    4. A person in whose favor a criminal action or proceeding was  termi-
    46  nated,  as defined in [paragraph] paragraphs (a) through (h), (k) or (l)
    47  of subdivision [two] three of this section, prior to the effective  date
    48  of  [this  section,  may  upon  motion  apply to the court in which such
    49  termination occurred, upon not less  than  twenty  days  notice  to  the
    50  district  attorney,  for an order granting to such person the relief set
    51  forth in subdivision one of this section, and such order shall be grant-
    52  ed unless the district attorney demonstrates to the satisfaction of  the
    53  court that the interests of justice require otherwise. A person in whose
    54  favor  a  criminal  action  or  proceeding was terminated, as defined in
    55  paragraph (i) or (j) of subdivision two of this section,  prior  to  the
    56  effective  date of this section, may apply to the appropriate prosecutor

        S. 1527                            55

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

        S. 1527                            56
     1  offender on the basis of any act or acts involving controlled substances
     2  and the district attorney does not consent.  Notwithstanding the limita-
     3  tions  set  forth  in  this  subdivision,  the  court may order that all
     4  proceedings  be  suspended  and the action adjourned in contemplation of
     5  dismissal  based  upon  a  finding  of  exceptional  circumstances.  For
     6  purposes  of  this  subdivision,  exceptional  circumstances exist when,
     7  regardless of the ultimate disposition of the case, the entry of a  plea
     8  of guilty is likely to result in severe collateral consequences, includ-
     9  ing,  but not limited to, those that could leave a noncitizen inadmissi-
    10  ble or removable from the United States.
    11    2.  Upon ordering the action adjourned in contemplation of  dismissal,
    12  the  court  must  set and specify such conditions for the adjournment as
    13  may be appropriate, and such conditions may include placing the  defend-
    14  ant  under the supervision of any public or private agency.  At any time
    15  prior to dismissal the court may modify  the  conditions  or  extend  or
    16  reduce  the  term  of  the  adjournment, except that the total period of
    17  adjournment shall not exceed [twelve] six months.  Upon violation of any
    18  condition fixed by the court, the court may revoke its order and restore
    19  the case to the calendar and the prosecution thereupon must proceed.  If
    20  the case is not so restored to the calendar during the period  fixed  by
    21  the court, the accusatory instrument is, at the expiration of such peri-
    22  od, deemed to have been dismissed in the furtherance of justice.
    23    §  37.  Section  210.46  of  the criminal procedure law, as amended by
    24  chapter 360 of the laws of 1977, is amended to read as follows:
    25  § 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
    26          in a superior court.
    27    Upon or after arraignment in a superior court upon an indictment where
    28  the  sole  remaining count or counts charge a violation or violations of
    29  section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
    30  law  and before the entry of a plea of guilty thereto or commencement of
    31  a  trial  thereof, the court, upon motion of a defendant, may order that
    32  all proceedings be suspended and the action adjourned  in  contemplation
    33  of dismissal or may dismiss the indictment in furtherance of justice, in
    34  accordance with the provisions of section 170.56 of this chapter.
    35    § 38. Paragraph (h) and subparagraph (ii) of paragraph (i) of subdivi-
    36  sion 1 of section 440.10 of the criminal procedure law, paragraph (h) as
    37  amended  by  chapter  332  of  the laws of 2010 and subparagraph (ii) of
    38  paragraph (i) as amended by chapter 368 of the laws of 2015, are amended
    39  and a new paragraph (j) is added to read as follows:
    40    (h) The judgment was obtained in violation of a right of the defendant
    41  under the constitution of this state or of the United States; [or]
    42    (ii) official documentation of the defendant's status as a  victim  of
    43  trafficking,  compelling  prostitution  or trafficking in persons at the
    44  time of the offense from a federal, state  or  local  government  agency
    45  shall  create  a  presumption  that the defendant's participation in the
    46  offense was a result of having been a victim of sex trafficking, compel-
    47  ling prostitution or trafficking in persons, but shall not  be  required
    48  for granting a motion under this paragraph[.]; or
    49    (j)  The  judgment  occurred prior to the effective date of this para-
    50  graph and is a conviction for:
    51    (i) an offense as defined by section 221.05 or 221.10 of the penal law
    52  (criminal possession of marihuana in the fifth  degree),  as  in  effect
    53  prior to the effective date of this paragraph, provided that the accusa-
    54  tory  instrument that underlies the judgment does not include an allega-
    55  tion that the defendant possessed more than twenty-five grams  of  mari-
    56  huana; or

        S. 1527                            57
     1    (ii)  an  offense as defined by former section 221.35 of the penal law
     2  (criminal sale of marihuana in the fifth degree).
     3    §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
     4  as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
     5  follows:
     6    6.  If  the court grants a motion under paragraph (i) or paragraph (j)
     7  of subdivision one of this section, it  must  vacate  the  judgment  and
     8  dismiss  the  accusatory instrument, and may take such additional action
     9  as is appropriate in the circumstances.
    10    § 40. The criminal procedure law is amended by adding  a  new  section
    11  440.46-a to read as follows:
    12  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    13               offenses.
    14    1.  A person currently serving a sentence for a conviction, whether by
    15  trial or by open or negotiated plea, who would not have been  guilty  of
    16  an  offense  or  who  would  have been guilty of a lesser offense on and
    17  after the effective date of this section had this section been in effect
    18  at the time of his or her  conviction  may  petition  for  a  recall  or
    19  dismissal  of  sentence before the trial court that entered the judgment
    20  of conviction in his or her case to request resentencing or dismissal in
    21  accordance with article two hundred twenty-one of the penal law.
    22    2. Upon receiving a motion under subdivision one of this  section  the
    23  court shall presume the movant satisfies the criteria in subdivision one
    24  of this section unless the party opposing the motion proves by clear and
    25  convincing  evidence  that  the movant does not satisfy the criteria. If
    26  the movant satisfies the criteria in subdivision one  of  this  section,
    27  the court shall grant the motion to vacate the sentence or to resentence
    28  because  it  is legally invalid. In exercising its discretion, the court
    29  may consider, but shall not be limited to, the following:
    30    (a) The movant's criminal conviction history, including  the  type  of
    31  crimes  committed,  the extent of injury to victims, the length of prior
    32  prison commitments, and the remoteness of the crimes.
    33    (b) The movant's disciplinary  record  and  record  of  rehabilitation
    34  while incarcerated.
    35    3.  A  person  who  is  serving a sentence and resentenced pursuant to
    36  subdivision two of this section shall  be  given  credit  for  any  time
    37  already  served and shall be subject to supervision for one year follow-
    38  ing completion of his or her time in custody  or  shall  be  subject  to
    39  whatever supervision time he or she would have otherwise been subject to
    40  after   release,   whichever  is  shorter,  unless  the  court,  in  its
    41  discretion, as part of its resentencing order, releases the person  from
    42  supervision.  Such person is subject to parole supervision under section
    43  60.04 of the penal law or post-release supervision under  section  70.45
    44  of  the  penal  law by the designated agency and the jurisdiction of the
    45  court in the county in which the offender is released or resides, or  in
    46  which  an alleged violation of supervision has occurred, for the purpose
    47  of hearing petitions to revoke supervision and impose a term of custody.
    48    4. Under no circumstances may resentencing under this  section  result
    49  in  the  imposition  of a term longer than the original sentence, or the
    50  reinstatement of charges dismissed pursuant to a negotiated plea  agree-
    51  ment.
    52    5.  A  person  who  has completed his or her sentence for a conviction
    53  under the former article two hundred twenty-one of the penal law, wheth-
    54  er by trial or open or negotiated plea, who would not have  been  guilty
    55  of  an  offense or who would have been guilty of a lesser offense on and
    56  after the effective date of this section had this section been in effect

        S. 1527                            58
     1  at the time of his or her conviction, may file an application before the
     2  trial court that entered the judgment of conviction in his or  her  case
     3  to  have  the conviction, in accordance with article two hundred twenty-
     4  one of the penal law:
     5    (a)  Dismissed because the prior conviction is now legally invalid and
     6  sealed in accordance with section 160.50 of this chapter;
     7    (b) Redesignated (or "reclassified") as  a  violation  and  sealed  in
     8  accordance with section 160.50 of this chapter; or
     9    (c) Redesignated (reclassified) as a misdemeanor.
    10    6.  The  court  shall presume the petitioner satisfies the criteria in
    11  subdivision five unless the party opposing  the  application  proves  by
    12  clear  and  convincing evidence that the petitioner does not satisfy the
    13  criteria in subdivision five. Once the applicant satisfies the  criteria
    14  in  subdivision  five, the court shall redesignate (or "reclassify") the
    15  conviction as a misdemeanor, redesignate (reclassify) the conviction  as
    16  a  violation and seal the conviction, or dismiss and seal the conviction
    17  as legally invalid under this section had this section been in effect at
    18  the time of his or her conviction.
    19    7. Unless requested by the applicant, no hearing is necessary to grant
    20  or deny an application filed under subdivision five of this section.
    21    8. Any felony conviction that is vacated and resentenced under  subdi-
    22  vision two or designated as a misdemeanor or violation under subdivision
    23  six  of  this section shall be considered a misdemeanor or violation for
    24  all purposes. Any misdemeanor conviction that is vacated and resentenced
    25  under subdivision two of this section or designated as a violation under
    26  subdivision six of this section shall be considered a violation for  all
    27  purposes.
    28    9. If the court that originally sentenced the movant is not available,
    29  the  presiding  judge shall designate another judge to rule on the peti-
    30  tion or application.
    31    10. Nothing in this section is intended to diminish  or  abrogate  any
    32  rights or remedies otherwise available to the petitioner or applicant.
    33    11.  Nothing  in  this and related sections is intended to diminish or
    34  abrogate the finality of judgements in any case not falling  within  the
    35  purview of this section.
    36    12.  The  provisions  of  this section shall apply equally to juvenile
    37  delinquency adjudications and dispositions under  section  five  hundred
    38  one-e of the executive law if the juvenile would not have been guilty of
    39  an  offense  or  would  have  been guilty of a lesser offense under this
    40  section had this section been in effect  at  the  time  of  his  or  her
    41  conviction.
    42    13.  The  office  of  court  administration  shall promulgate and make
    43  available all necessary forms to enable the filing of the petitions  and
    44  applications provided in this section no later than sixty days following
    45  the effective date of this section.
    46    § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
    47  procedure  law, as amended by chapter 37 of the laws of 2014, is amended
    48  to read as follows:
    49    (c) Criminal possession of  a  controlled  substance  in  the  seventh
    50  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
    51  possession of a controlled substance in the fifth degree as  defined  in
    52  section  220.06  of  the  penal law, criminal possession of a controlled
    53  substance in the fourth degree as defined in section 220.09 of the penal
    54  law, criminal possession of a controlled substance in the  third  degree
    55  as  defined in section 220.16 of the penal law, criminal possession of a
    56  controlled substance in the second degree as defined in  section  220.18

        S. 1527                            59
     1  of  the  penal law, criminal possession of a controlled substance in the
     2  first degree as defined in section 220.21 of  the  penal  law,  criminal
     3  sale of a controlled substance in the fifth degree as defined in section
     4  220.31  of the penal law, criminal sale of a controlled substance in the
     5  fourth degree as defined in section 220.34 of the  penal  law,  criminal
     6  sale of a controlled substance in the third degree as defined in section
     7  220.39  of the penal law, criminal sale of a controlled substance in the
     8  second degree as defined in section 220.41 of the  penal  law,  criminal
     9  sale of a controlled substance in the first degree as defined in section
    10  220.43  of  the penal law, criminally possessing a hypodermic instrument
    11  as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
    12  prescription  for  a controlled substance or a controlled substance by a
    13  practitioner or pharmacist as defined in section  220.65  of  the  penal
    14  law,  criminal  possession  of methamphetamine manufacturing material in
    15  the second degree as defined in section 220.70 of the penal law,  crimi-
    16  nal  possession  of  methamphetamine manufacturing material in the first
    17  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
    18  possession of precursors of methamphetamine as defined in section 220.72
    19  of  the  penal law, unlawful manufacture of methamphetamine in the third
    20  degree as defined in section 220.73 of the penal law, unlawful  manufac-
    21  ture  of  methamphetamine  in  the  second  degree as defined in section
    22  220.74 of the penal law, unlawful manufacture of methamphetamine in  the
    23  first  degree  as  defined  in section 220.75 of the penal law, unlawful
    24  disposal of methamphetamine laboratory material as  defined  in  section
    25  220.76  of  the penal law, operating as a major trafficker as defined in
    26  section 220.77 of the penal law, [criminal possession  of  marihuana  in
    27  the first degree as defined in section 221.30 of the penal law, criminal
    28  sale  of  marihuana  in the first degree as defined in section 221.55 of
    29  the penal law,] promoting gambling in the second degree  as  defined  in
    30  section  225.05 of the penal law, promoting gambling in the first degree
    31  as defined in section 225.10 of the penal law,  possession  of  gambling
    32  records  in  the second degree as defined in section 225.15 of the penal
    33  law, possession of gambling records in the first degree  as  defined  in
    34  section  225.20 of the penal law, and possession of a gambling device as
    35  defined in section 225.30 of the penal law;
    36    § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
    37  9 of section 1310 of the civil practice law and  rules,  paragraphs  (b)
    38  and  (c)  of subdivision 4-b as added by chapter 655 of the laws of 1990
    39  and subdivisions 6 and 9 as added by chapter 669 of the  laws  of  1984,
    40  are amended to read as follows:
    41    (b)  on  three  or  more occasions, engaging in conduct constituting a
    42  violation of any of the felonies  defined  in  section  220.09,  220.16,
    43  220.18,  220.21, 220.31, 220.34, 220.39, 220.41[,] or 220.43 [or 221.55]
    44  of the penal law, which violations do not constitute a  single  criminal
    45  offense  as  defined in subdivision one of section 40.10 of the criminal
    46  procedure law, or a single criminal transaction, as defined in paragraph
    47  (a) of subdivision two of section 40.10 of the criminal  procedure  law,
    48  and  at  least one of which resulted in a conviction of such offense, or
    49  where the accusatory instrument charges one or more  of  such  felonies,
    50  conviction  upon  a  plea  of  guilty to a felony for which such plea is
    51  otherwise authorized by law; or
    52    (c) a conviction of a  person  for  a  violation  of  section  220.09,
    53  220.16,  220.34 or 220.39 of the penal law, [or a conviction of a crimi-
    54  nal defendant for a violation of section 221.30 of the  penal  law,]  or
    55  where the accusatory instrument charges any such felony, conviction upon
    56  a  plea of guilty to a felony for which the plea is otherwise authorized

        S. 1527                            60
     1  by law, together with evidence which: (i) provides  substantial  indicia
     2  that  the  defendant  used  the  real property to engage in a continual,
     3  ongoing course of conduct involving the  unlawful  mixing,  compounding,
     4  manufacturing,  warehousing,  or  packaging of controlled substances [or
     5  where the conviction is for a violation of section 221.30 of  the  penal
     6  law,  marijuana,]  as part of an illegal trade or business for gain; and
     7  (ii) establishes, where the conviction is for possession of a controlled
     8  substance [or where the conviction is for a violation of section  221.30
     9  of  the  penal law, marijuana], that such possession was with the intent
    10  to sell it.
    11    [6. "Pre-conviction forfeiture crime" means only a felony  defined  in
    12  article  two  hundred  twenty  or  section 221.30 or 221.55 of the penal
    13  law.]
    14    9. "Criminal defendant" means a person who has criminal liability  for
    15  a  crime  defined in [subdivisions] subdivision five [and six hereof] of
    16  this section. For purposes  of  this  article,  a  person  has  criminal
    17  liability  when [(a)] he has been convicted of a post-conviction forfei-
    18  ture crime[, or (b) the claiming authority proves by clear and  convinc-
    19  ing evidence that such person has committed an act in violation of arti-
    20  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
    21    §  43.  Subdivision 13 of section 89-f of the general business law, as
    22  added by chapter 336 of the laws of 1992, is amended to read as follows:
    23    13. "Serious offense" shall mean any  felony  involving  the  offenses
    24  enumerated  in  the  closing  paragraph  of this subdivision; a criminal
    25  solicitation of or a conspiracy to commit or an attempt to commit  or  a
    26  criminal  facilitation  of a felony involving the offenses enumerated in
    27  the closing paragraph of this subdivision, which criminal  solicitation,
    28  conspiracy, attempt or criminal facilitation itself constitutes a felony
    29  or  any  offense  in  any  other jurisdiction which if committed in this
    30  state would constitute a felony; any offense in any  other  jurisdiction
    31  which if committed in this state would constitute a felony provided that
    32  for the purposes of this article, none of the following shall be consid-
    33  ered  criminal  convictions  or  reported  as such: (i) a conviction for
    34  which an executive pardon has been issued pursuant to the executive law;
    35  (ii) a conviction which has been vacated  and  replaced  by  a  youthful
    36  offender  finding pursuant to article seven hundred twenty of the crimi-
    37  nal procedure law, or the applicable provisions  of  law  of  any  other
    38  jurisdiction;  or  (iii)  a  conviction  the  records of which have been
    39  sealed pursuant to the applicable provisions of the laws of  this  state
    40  or  of  any  other  jurisdiction;  and (iv) a conviction for which other
    41  evidence of successful rehabilitation to remove the disability has  been
    42  issued.
    43    Felonies involving: assault, aggravated assault and reckless endanger-
    44  ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
    45  manslaughter and murder pursuant to article one hundred twenty-five; sex
    46  offenses pursuant to article one hundred thirty; unlawful  imprisonment,
    47  kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
    48  criminal trespass and burglary pursuant to article  one  hundred  forty;
    49  criminal  mischief,  criminal  tampering  and  tampering with a consumer
    50  product pursuant to article one hundred forty-five;  arson  pursuant  to
    51  article one hundred fifty; larceny and offenses involving theft pursuant
    52  to article one hundred fifty-five; offenses involving computers pursuant
    53  to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
    54  hundred sixty; criminal possession of stolen property pursuant to  arti-
    55  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
    56  article one hundred seventy; involving false written statements pursuant

        S. 1527                            61
     1  to article one hundred seventy-five; commercial bribing  and  commercial
     2  bribe  receiving pursuant to article one hundred eighty; criminal imper-
     3  sonation and scheme to defraud pursuant to article one  hundred  ninety;
     4  bribery involving public servants and related offenses pursuant to arti-
     5  cle  two  hundred;  perjury and related offenses pursuant to article two
     6  hundred ten; tampering with a witness, intimidating a victim or  witness
     7  and  tampering  with  physical  evidence pursuant to article two hundred
     8  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
     9  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    10  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    11  220.41,  220.43  and  220.44;  [criminal] unlicensed sale of [marijuana]
    12  marihuana in the first degree pursuant to  [sections]  section  221.45[,
    13  221.50  and  221.55]; riot in the first degree, aggravated harassment in
    14  the first degree, criminal nuisance in  the  first  degree  and  falsely
    15  reporting  an incident in the second or first degree pursuant to article
    16  two hundred forty; and crimes against public safety pursuant to  article
    17  two hundred sixty-five of the penal law.
    18    §  44.  Paragraph  (f)  of subdivision 2 of section 850 of the general
    19  business law is REPEALED.
    20    § 45. Paragraph (h) of subdivision 2 of section  850  of  the  general
    21  business  law, as amended by chapter 812 of the laws of 1980, is amended
    22  to read as follows:
    23    (h) Objects, used or designed for the purpose of ingesting,  inhaling,
    24  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
    25  into the human body.
    26    §  46.  Paragraph  a  of  subdivision  4-a of section 165 of the state
    27  finance law, as added by chapter 95 of the laws of 2000, is  amended  to
    28  read as follows:
    29    a.  In  order  to  advance  specific  economic  goals,  New York state
    30  labelled wines, as defined in subdivision [twenty-a] twenty-j of section
    31  three of the alcoholic beverage control law, shall have  favored  source
    32  status for the purposes of procurement in accordance with the provisions
    33  of this subdivision.  Procurement of these New York state labelled wines
    34  shall  be  exempt from the competitive procurement provisions of section
    35  one hundred sixty-three of this article and other  competitive  procure-
    36  ment  statutes.    Such exemption shall apply to New York state labelled
    37  wines as defined in subdivision [twenty-a] twenty-j of section three  of
    38  the  alcoholic  beverage  control  law  produced by a licensed winery as
    39  defined in section seventy-six of the alcoholic beverage control law.
    40    § 47. Subdivision 7 of section 995 of the executive law, as amended by
    41  chapter 19 of the laws of 2012, is amended to read as follows:
    42    7. "Designated offender"  means  a  person  convicted  of  any  felony
    43  defined  in  any  chapter  of  the  laws of the state or any misdemeanor
    44  defined in the penal law [except that  where  the  person  is  convicted
    45  under  section  221.10  of  the penal law, only a person convicted under
    46  subdivision two of such section, or a person convicted under subdivision
    47  one of such section who stands previously  convicted  of  any  crime  as
    48  defined in subdivision six of section 10.00 of the penal law].
    49    § 48. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
    50  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    51  56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
    52  laws of 1990, are amended to read as follows:
    53    (b) three or more violations of any of the felonies defined in section
    54  220.09,  220.16,  220.18,  220.21,  220.31,  220.34,   220.39,   220.41,
    55  220.43[,]  or  220.77[,  or 221.55] of this chapter, which violations do
    56  not constitute a single criminal offense as defined in  subdivision  one

        S. 1527                            62
     1  of  section  40.10  of  the criminal procedure law, or a single criminal
     2  transaction, as defined in paragraph (a) of subdivision two  of  section
     3  40.10  of the criminal procedure law, and at least one of which resulted
     4  in  a  conviction  of  such  offense, or where the accusatory instrument
     5  charges one or more of such felonies, conviction upon a plea  of  guilty
     6  to a felony for which such plea is otherwise authorized by law; or
     7    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
     8  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
     9  accusatory instrument charges any such felony, conviction upon a plea of
    10  guilty  to  a  felony for which the plea is otherwise authorized by law,
    11  together with evidence which: (i) provides substantial indicia that  the
    12  defendant  used  the  real  property  to  engage in a continual, ongoing
    13  course of conduct involving the unlawful mixing,  compounding,  manufac-
    14  turing, warehousing, or packaging of controlled substances [or where the
    15  conviction  is  for a violation of section 221.30 of this chapter, mari-
    16  juana] as part of an illegal trade or business for gain; and (ii) estab-
    17  lishes, where the conviction is for possession of a controlled substance
    18  [or where the conviction is for a violation of section  221.30  of  this
    19  chapter,  marijuana],  that  such possession was with the intent to sell
    20  it.
    21    § 49. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
    22  and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
    23  amended to read as follows:
    24    (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
    25  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    26  of  this  section  that  result in disqualification for a period of five
    27  years shall include a conviction under sections 100.10, 105.13,  115.05,
    28  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    29  125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
    30  140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
    31  220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
    32  230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
    33  235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
    34  section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
    35  265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
    36  the  aforesaid  offenses  under  section 110.00 of the penal law, or any
    37  similar offenses committed under a former section of the penal  law,  or
    38  any  offenses  committed  under  a former section of the penal law which
    39  would constitute violations of the aforesaid sections of the penal  law,
    40  or  any  offenses  committed  outside  this state which would constitute
    41  violations of the aforesaid sections of the penal law.
    42    § 50. The opening paragraph of  paragraph  (a)  of  subdivision  2  of
    43  section  1194  of the vehicle and traffic law, as amended by chapter 196
    44  of the laws of 1996, is amended to read as follows:
    45    When authorized. Any person who operates a motor vehicle in this state
    46  shall be deemed to have given consent to a chemical test of one or  more
    47  of  the  following:  breath, blood, urine, or saliva, for the purpose of
    48  determining the alcoholic and/or  drug  content,  other  than  marihuana
    49  content  including  but  not limited to tetrahydrocannabinol content, of
    50  the blood provided that such test is administered by or at the direction
    51  of a police officer with respect to a chemical test of breath, urine  or
    52  saliva or, with respect to a chemical test of blood, at the direction of
    53  a police officer:
    54    §  51.  Section 17 of the alcoholic beverage control law is amended by
    55  adding a new subdivision 12 to read as follows:

        S. 1527                            63
     1    12. To develop and establish minimum criteria for alcohol or substance
     2  use disorder training awareness programs which may be given and adminis-
     3  tered by schools; other  entities  including  trade  associations  whose
     4  members  are  engaged  in  or  involved  in the retail sale of alcoholic
     5  beverages;  national  and regional franchisors who have granted at least
     6  five franchises in the state which are licensed to sell beer  at  retail
     7  for  off-premises  consumption;  licensees  authorized to sell alcoholic
     8  beverages at retail for off-premises consumption operating five or  more
     9  licensed  premises;  and  persons  interested,  whether as an individual
    10  proprietor or partner or officer or member of a limited liability compa-
    11  ny, in five or more licensees authorized to sell alcoholic beverages  at
    12  retail for off-premises consumption. The authority shall provide for the
    13  issuance  of  certificates  of  approval  to  all  certified  alcohol or
    14  substance use disorder  training  awareness  programs.  Certificates  of
    15  approval  may  be  revoked by the authority for failure to adhere to the
    16  authority's rules and regulations.  Such  rules  and  regulations  shall
    17  afford  those who have been issued a certificate of approval an opportu-
    18  nity for a hearing prior to any determination of  whether  such  certif-
    19  icate should be revoked.
    20    No  licensee  shall  be  required to apply for any such certificate or
    21  renewal certificate and the licensee may voluntarily  surrender  such  a
    22  certificate  or  renewal certificate at any time. A fee in the amount of
    23  nine hundred dollars shall be paid to the authority with  each  applica-
    24  tion for a certificate of approval or renewal certificate.  The authori-
    25  ty  shall promptly refund such fee to an applicant whose application was
    26  denied. Each certificate of approval and renewal thereof shall be issued
    27  for a period of three years. To effectuate the provisions of this subdi-
    28  vision, the authority is empowered to  require  in  connection  with  an
    29  application  the  submission  of  such  information as the authority may
    30  direct; to prescribe forms of applications and of all reports  which  it
    31  deems  necessary  to  be made by any applicant or certificate holder; to
    32  conduct investigations; to require the maintenance  of  such  books  and
    33  records  as  the authority may direct; and to revoke, cancel, or suspend
    34  for cause any certificate provided for in this subdivision. Each  entity
    35  authorized  to  give and administer an alcohol or substance use disorder
    36  training awareness program shall issue certificates of completion to all
    37  licensees and employees who successfully complete such an approved alco-
    38  hol or substance use disorder training awareness  program.  Such  entity
    39  shall regularly transmit to the authority the names, addresses and dates
    40  of  attendance  of  all  the  licensees  and  employees of licensees who
    41  successfully complete an approved  alcohol  or  substance  use  disorder
    42  training  awareness  program.  Such  transmittal  shall be in a form and
    43  manner prescribed by the authority. The authority shall adopt rules  and
    44  regulations  to effectuate the provisions of this subdivision, including
    45  the minimum requirements  for  the  curriculum  of  each  such  training
    46  program  and  the  regular ongoing training of employees holding certif-
    47  icates of completion or renewal certificates.    Such  rules  and  regu-
    48  lations shall include the minimum requirements for a separate curriculum
    49  for licensees and their employees authorized to sell alcoholic beverages
    50  at retail for off-premises consumption, minimum requirements for a sepa-
    51  rate  curriculum  for  licensees  and their employees authorized to sell
    52  alcoholic beverages at retail for on-premises consumption, and the  form
    53  of  a  certificate  of  completion  or  renewal  thereof to be issued in
    54  respect to each such type of program. A  certificate  of  completion  or
    55  renewal thereof issued by an entity authorized to give and administer an
    56  alcohol or substance use disorder training awareness program pursuant to

        S. 1527                            64
     1  this  subdivision  to  licensees  and their employees authorized to sell
     2  alcoholic beverages at retail for off-premises consumption shall not  be
     3  invalidated  by  a  change  of  employment  to  another such licensee. A
     4  certificate of completion or renewal thereof issued by an entity author-
     5  ized  to give and administer an alcohol or substance use disorder train-
     6  ing awareness program pursuant to  this  subdivision  to  licensees  and
     7  their  employees  authorized  to  sell alcoholic beverages at retail for
     8  on-premises consumption shall not be invalidated by a change of  employ-
     9  ment  to  another  such  licensee.  Attendance at any course established
    10  pursuant to this section shall be in person, through  distance  learning
    11  methods, or through an internet based online program.
    12    §  52.  Subdivision 12 of section 17 of the alcoholic beverage control
    13  law, as amended by chapter 549 of the laws of 2001,  the  closing  para-
    14  graph  as amended by chapter 435 of the laws of 2010, is amended to read
    15  as follows:
    16    12. To develop and establish minimum criteria for alcohol or substance
    17  use disorder training awareness programs which may be given and adminis-
    18  tered by schools; other  entities  including  trade  associations  whose
    19  members  are  engaged  in  or  involved  in the retail sale of alcoholic
    20  beverages; national and regional franchisors who have granted  at  least
    21  five  franchises  in the state which are licensed to sell beer at retail
    22  for off-premises consumption; licensees  authorized  to  sell  alcoholic
    23  beverages  at retail for off-premises consumption operating five or more
    24  licensed premises; and persons  interested,  whether  as  an  individual
    25  proprietor or partner or officer or member of a limited liability compa-
    26  ny,  in five or more licensees authorized to sell alcoholic beverages at
    27  retail for off-premises consumption. The authority shall provide for the
    28  issuance of  certificates  of  approval  to  all  certified  alcohol  or
    29  substance  use  disorder  training  awareness  programs. Certificates of
    30  approval may be revoked by the authority for failure to  adhere  to  the
    31  authority's  rules  and  regulations.  Such  rules and regulations shall
    32  afford those who have been issued a certificate of approval an  opportu-
    33  nity  for  a  hearing prior to any determination of whether such certif-
    34  icate should be revoked.
    35    No licensee shall be required to apply for  any  such  certificate  or
    36  renewal  certificate  and  the licensee may voluntarily surrender such a
    37  certificate or renewal certificate at any time. A fee in the  amount  of
    38  nine  hundred  dollars shall be paid to the authority with each applica-
    39  tion for a certificate of approval or renewal certificate. The authority
    40  shall promptly refund such fee to an  applicant  whose  application  was
    41  denied. Each certificate of approval and renewal thereof shall be issued
    42  for a period of three years. To effectuate the provisions of this subdi-
    43  vision,  the  authority  is  empowered  to require in connection with an
    44  application the submission of such  information  as  the  authority  may
    45  direct;  to  prescribe forms of applications and of all reports which it
    46  deems necessary to be made by any applicant or  certificate  holder;  to
    47  conduct  investigations;  to  require  the maintenance of such books and
    48  records as the authority may direct; to revoke, cancel, or  suspend  for
    49  cause  any  certificate  provided  for  in this subdivision. Each entity
    50  authorized to give and administer an alcohol or substance  use  disorder
    51  training awareness program shall issue certificates of completion to all
    52  licensees and employees who successfully complete such an approved alco-
    53  hol  or  substance  use disorder training awareness program. Such entity
    54  shall regularly transmit to the authority the names, addresses and dates
    55  of attendance of all  the  licensees  and  employees  of  licensees  who
    56  successfully  complete  an  approved  alcohol  or substance use disorder

        S. 1527                            65
     1  training awareness program.  Such transmittal shall be  in  a  form  and
     2  manner  prescribed by the authority. The authority shall adopt rules and
     3  regulations to effectuate the provisions of this subdivision,  including
     4  the  minimum  requirements  for  the  curriculum  of  each such training
     5  program and the regular ongoing training of  employees  holding  certif-
     6  icates of completion or renewal certificates. Such rules and regulations
     7  shall  include  the  minimum  requirements for a separate curriculum for
     8  licensees and their employees authorized to sell alcoholic beverages  at
     9  retail for off-premises consumption, minimum requirements for a separate
    10  curriculum for licensees and their employees authorized to sell alcohol-
    11  ic  beverages  at  retail for on-premises consumption, and the form of a
    12  certificate of completion or renewal thereof to be issued in respect  to
    13  each such type of program. A certificate of completion or renewal there-
    14  of  issued  by an entity authorized to give and administer an alcohol or
    15  substance use disorder  training  awareness  program  pursuant  to  this
    16  subdivision to licensees and their employees authorized to sell alcohol-
    17  ic beverages at retail for off-premises consumption shall not be invali-
    18  dated  by a change of employment to another such licensee. A certificate
    19  of completion or renewal thereof issued by an entity authorized to  give
    20  and  administer  an alcohol or substance use disorder training awareness
    21  program pursuant to this subdivision to licensees  and  their  employees
    22  authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
    23  consumption shall not be invalidated by a change of employment to anoth-
    24  er such licensee. Attendance at any course established pursuant to  this
    25  section  shall  be  in  person,  through  distance  learning methods, or
    26  through an internet based online program.
    27    § 53. Subdivision 10 of section 18 of the alcoholic  beverage  control
    28  law,  as  amended by chapter 118 of the laws of 2012, is amended to read
    29  as follows:
    30    10. To develop and establish minimum criteria for alcohol or substance
    31  use disorder training awareness programs which may be given and adminis-
    32  tered by schools; other  entities  including  trade  associations  whose
    33  members  are  engaged  in  or  involved  in the retail sale of alcoholic
    34  beverages; national and regional franchisors who have granted  at  least
    35  five  franchises  in the state which are licensed to sell beer at retail
    36  for off-premises consumption; licensees  authorized  to  sell  alcoholic
    37  beverages  at retail for off-premises consumption operating five or more
    38  licensed premises; and persons  interested,  whether  as  an  individual
    39  proprietor or partner or officer or member of a limited liability compa-
    40  ny,  in five or more licensees authorized to sell alcoholic beverages at
    41  retail for off-premises consumption. The authority shall provide for the
    42  issuance of  certificates  of  approval  to  all  certified  alcohol  or
    43  substance  use  disorder  training  awareness  programs. Certificates of
    44  approval may be revoked by the authority for failure to  adhere  to  the
    45  authority's  rules  and  regulations.  Such  rules and regulations shall
    46  afford those who have been issued a certificate of approval an  opportu-
    47  nity  for  a  hearing prior to any determination of whether such certif-
    48  icate should be revoked.
    49    No licensee shall be required to apply for  any  such  certificate  or
    50  renewal  certificate  and  the licensee may voluntarily surrender such a
    51  certificate or renewal certificate at any time. A fee in the  amount  of
    52  nine  hundred  dollars shall be paid to the authority with each applica-
    53  tion for a certificate of approval or renewal certificate. The authority
    54  shall promptly refund such fee to an  applicant  whose  application  was
    55  denied. Each certificate of approval and renewal thereof shall be issued
    56  for a period of three years. To effectuate the provisions of this subdi-

        S. 1527                            66
     1  vision,  the  authority  is  empowered  to require in connection with an
     2  application the submission of such  information  as  the  authority  may
     3  direct;  to  prescribe forms of applications and of all reports which it
     4  deems  necessary  to  be made by any applicant or certificate holder; to
     5  conduct investigations; to require the maintenance  of  such  books  and
     6  records  as  the authority may direct; to revoke, cancel, or suspend for
     7  cause any certificate provided for  in  this  subdivision.  Each  entity
     8  authorized  to  give and administer an alcohol or substance use disorder
     9  training awareness program shall issue certificates of completion to all
    10  licensees and employees who successfully complete such an approved alco-
    11  hol or substance use disorder training awareness  program.  Such  entity
    12  shall regularly transmit to the authority the names, addresses and dates
    13  of  attendance  of  all  the  licensees  and  employees of licensees who
    14  successfully complete an approved  alcohol  or  substance  use  disorder
    15  training  awareness  program.    Such transmittal shall be in a form and
    16  manner prescribed by the authority. The authority shall adopt rules  and
    17  regulations  to effectuate the provisions of this subdivision, including
    18  the minimum requirements  for  the  curriculum  of  each  such  training
    19  program  and  the  regular ongoing training of employees holding certif-
    20  icates of completion or renewal certificates. Such rules and regulations
    21  shall include the minimum requirements for  a  separate  curriculum  for
    22  licensees  and their employees authorized to sell alcoholic beverages at
    23  retail for off-premises consumption, minimum requirements for a separate
    24  curriculum for licensees and their employees authorized to sell alcohol-
    25  ic beverages at retail for on-premises consumption, and the  form  of  a
    26  certificate  of completion or renewal thereof to be issued in respect to
    27  each such type of program. A certificate of completion or renewal there-
    28  of issued by an entity authorized to give and administer an  alcohol  or
    29  substance  use  disorder  training  awareness  program  pursuant to this
    30  subdivision to licensees and their employees authorized to sell alcohol-
    31  ic beverages at retail for off-premises consumption shall not be invali-
    32  dated by a change of employment to another such licensee. A  certificate
    33  of  completion or renewal thereof issued by an entity authorized to give
    34  and administer an alcohol or substance use disorder  training  awareness
    35  program  pursuant  to  this subdivision to licensees and their employees
    36  authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
    37  consumption shall not be invalidated by a change of employment to anoth-
    38  er  such licensee. Attendance at any course established pursuant to this
    39  section shall be  in  person,  through  distance  learning  methods,  or
    40  through an internet based online program.
    41    §  54.  Section  18 of the alcoholic beverage control law, as added by
    42  chapter 83 of the laws of 1995, is amended by adding a  new  subdivision
    43  10 to read as follows:
    44    10. To develop and establish minimum criteria for alcohol or substance
    45  use disorder training awareness programs which may be given and adminis-
    46  tered  by  schools;  other  entities  including trade associations whose
    47  members are engaged in or involved  in  the  retail  sale  of  alcoholic
    48  beverages;  national  and regional franchisors who have granted at least
    49  five franchises in the state which are licensed to sell beer  at  retail
    50  for  off-premises  consumption;  licensees  authorized to sell alcoholic
    51  beverages at retail for off-premises consumption operating five or  more
    52  licensed  premises;  and  persons  interested,  whether as an individual
    53  proprietor or partner or officer or member of a limited liability compa-
    54  ny, in five or more licensees authorized to sell alcoholic beverages  at
    55  retail for off-premises consumption. The authority shall provide for the
    56  issuance  of  certificates  of  approval  to  all  certified  alcohol or

        S. 1527                            67
     1  substance use disorder  training  awareness  programs.  Certificates  of
     2  approval  may  be  revoked by the authority for failure to adhere to the
     3  authority's rules and regulations.  Such  rules  and  regulations  shall
     4  afford  those who have been issued a certificate of approval an opportu-
     5  nity for a hearing prior to any determination of  whether  such  certif-
     6  icate should be revoked.
     7    No  licensee  shall  be  required to apply for any such certificate or
     8  renewal certificate and the licensee may voluntarily  surrender  such  a
     9  certificate  or  renewal certificate at any time. A fee in the amount of
    10  nine hundred dollars shall be paid to the authority with  each  applica-
    11  tion for a certificate of approval or renewal certificate. The authority
    12  shall  promptly  refund  such  fee to an applicant whose application was
    13  denied. Each certificate of approval and renewal thereof shall be issued
    14  for a period of three years. To effectuate the provisions of this subdi-
    15  vision, the authority is empowered to  require  in  connection  with  an
    16  application  the  submission  of  such  information as the authority may
    17  direct; to prescribe forms of applications and of all reports  which  it
    18  deems  necessary  to  be made by any applicant or certificate holder; to
    19  conduct investigations; to require the maintenance  of  such  books  and
    20  records  as  the authority may direct; to revoke, cancel, or suspend for
    21  cause any certificate provided for  in  this  subdivision.  Each  entity
    22  authorized  to  give and administer an alcohol or substance use disorder
    23  training awareness program shall issue certificates of completion to all
    24  licensees and employees who successfully complete such an approved alco-
    25  hol or substance use disorder training awareness  program.  Such  entity
    26  shall regularly transmit to the authority the names, addresses and dates
    27  of  attendance  of  all  the  licensees  and  employees of licensees who
    28  successfully complete an approved  alcohol  or  substance  use  disorder
    29  training  awareness  program.  Such  transmittal  shall be in a form and
    30  manner prescribed by the authority. The authority shall adopt rules  and
    31  regulations  to effectuate the provisions of this subdivision, including
    32  the minimum requirements  for  the  curriculum  of  each  such  training
    33  program  and  the  regular ongoing training of employees holding certif-
    34  icates of completion or renewal certificates. Such rules and regulations
    35  shall include the minimum requirements for  a  separate  curriculum  for
    36  licensees  and their employees authorized to sell alcoholic beverages at
    37  retail for off-premises consumption, minimum requirements for a separate
    38  curriculum for licensees and their employees authorized to sell alcohol-
    39  ic beverages at retail for on-premises consumption, and the  form  of  a
    40  certificate  of completion or renewal thereof to be issued in respect to
    41  each such type of program. A certificate of completion or renewal there-
    42  of issued by an entity authorized to give and administer an  alcohol  or
    43  substance  use  disorder  training  awareness  program  pursuant to this
    44  subdivision to licensees and their employees authorized to sell alcohol-
    45  ic beverages at retail for off-premises consumption shall not be invali-
    46  dated by a change of employment to another such licensee.  A certificate
    47  of completion or renewal thereof issued by an entity authorized to  give
    48  and  administer  an alcohol or substance use disorder training awareness
    49  program pursuant to this subdivision to licensees  and  their  employees
    50  authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
    51  consumption shall not be invalidated by a change of employment to anoth-
    52  er such licensee.  Attendance at any course established pursuant to this
    53  section shall be  in  person,  through  distance  learning  methods,  or
    54  through an internet based online program.
    55    § 55. Section 150.75 of the criminal procedure law is REPEALED.

        S. 1527                            68
     1    §  56.  Subdivision  (a)  of  section  712 of the family court act, as
     2  amended by section 7 of part G of chapter 58 of the  laws  of  2010,  is
     3  amended to read as follows:
     4    (a) "Person in need of supervision". A person less than eighteen years
     5  of  age  who does not attend school in accordance with the provisions of
     6  part one of article sixty-five of the education law or who is incorrigi-
     7  ble, ungovernable  or  habitually  disobedient  and  beyond  the  lawful
     8  control of a parent or other person legally responsible for such child's
     9  care,  or  other  lawful  authority,  or  who violates the provisions of
    10  section [221.05 or] 230.00 of the penal law, or  who  appears  to  be  a
    11  sexually  exploited  child  as  defined  in paragraph (a), (c) or (d) of
    12  subdivision one of section four  hundred  forty-seven-a  of  the  social
    13  services law, but only if the child consents to the filing of a petition
    14  under this article.
    15    §  57.  The state finance law is amended by adding a new section 99-ii
    16  to read as follows:
    17    § 99-ii. Marihuana microbusiness and marihuana license revolving  loan
    18  fund.  1.  There is hereby established in the joint custody of the comp-
    19  troller and the commissioner of taxation and finance a fund to be  known
    20  as  the  marihuana  microbusiness  and  marihuana license revolving loan
    21  fund.
    22    2. The fund shall consist of all monies appropriated for its  purpose,
    23  all  monies  transferred  to  such  fund  pursuant to law and all monies
    24  required by the provisions of this section or any other law to  be  paid
    25  into or credited to this fund, including all monies received by the fund
    26  or  donated  to  it. Monies in the fund shall be kept separate and shall
    27  not be commingled  with  any  other  monies  otherwise  appropriated  or
    28  received except as hereby provided.
    29    3.  Monies  of  the  fund,  when  allocated, shall be available to the
    30  bureau of marihuana policy for the purpose  of  providing  low  interest
    31  loans  to  individuals and businesses interested in establishing a mari-
    32  huana microbusiness or otherwise obtaining a license available from  the
    33  bureau of marihuana policy and participating in the marihuana industry.
    34    4.  The  bureau  of marihuana policy shall establish through rules and
    35  regulations guidelines necessary  to  administer  the  fund.  Guidelines
    36  shall  include, but not be limited to: qualifications and conditions for
    37  assistance; terms of loan or installment payments and finance charges on
    38  installment payments at rates of  interest  which,  notwithstanding  any
    39  other  provision of law, are of the lowest rate possible to maintain the
    40  fund; prioritize loans to promote racial, ethnic, and  gender  diversity
    41  in  licenses  for  marihuana related activities; and any other terms and
    42  conditions the bureau may require as necessary  to  properly  effectuate
    43  the provisions of this section.
    44    5. The bureau of marihuana policy shall make public by September first
    45  of  each year a report including, but not limited to: the current guide-
    46  lines of the fund; a complete financial  statement  including,  but  not
    47  limited  to,  monies allocated, collected, transferred or otherwise paid
    48  or credited to the fund; a projected schedule of disbursements, receipts
    49  and needs of the fund for the next fiscal year; and the names and  busi-
    50  ness addresses of each current loan recipient.
    51    6.  No monies shall be payable from this fund, except on the audit and
    52  warrant of the comptroller on vouchers certified and  submitted  by  the
    53  bureau of marihuana policy.
    54    §  58. Appropriation.  The sum of five million dollars ($5,000,000) is
    55  hereby appropriated to the New York State Liquor Authority  out  of  any
    56  moneys  in  the  state treasury in the general fund to the credit of the

        S. 1527                            69
     1  state purposes account, not otherwise appropriated, and made immediately
     2  available, for the purpose of carrying out the provisions of  this  act.
     3  Such moneys shall be payable on the audit and warrant of the comptroller
     4  on  vouchers certified or approved by the superintendent or the chairman
     5  of the New York State Liquor Authority in the manner prescribed by law.
     6    § 59. Severability. If any provision or term of this act  is  for  any
     7  reason  declared unconstitutional or invalid or ineffective by any court
     8  of competent jurisdiction, such decision shall not affect  the  validity
     9  of  the  effectiveness of the remaining portions of this act or any part
    10  thereof.
    11    § 60. This act shall take effect immediately; provided, however,  that
    12  the  amendments to section 17 of the alcoholic beverage control law made
    13  by section fifty-one of this act shall not  affect  the  expiration  and
    14  reversion of such section and shall expire and be deemed repealed there-
    15  with,  when  upon  such date the provisions of section fifty-two of this
    16  act shall take effect; provided further, however, that the amendments to
    17  section 18 of the alcoholic beverage control law made by section  fifty-
    18  three  of this act shall not affect the expiration and reversion of such
    19  section and shall expire and be deemed  repealed  therewith,  when  upon
    20  such  date  the  provisions of section fifty-four of this act shall take
    21  effect.
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