Bill Text: NY S03040 | 2017-2018 | General Assembly | Amended


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

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced) 2017-06-16 - PRINT NUMBER 3040B [S03040 Detail]

Download: New_York-2017-S03040-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         3040--B
                               2017-2018 Regular Sessions
                    IN SENATE
                                    January 19, 2017
                                       ___________
        Introduced by Sens. KRUEGER, ALCANTARA, BAILEY, COMRIE, DILAN, HAMILTON,
          HOYLMAN,  MONTGOMERY,  PARKER,  PERALTA, RIVERA, SERRANO -- read twice
          and ordered printed, and when printed to be committed to the Committee
          on Finance -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said  committee  --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee
        AN ACT to amend the public health law, in relation to the description of
          marihuana, and the growing of and use of marihuana by persons  twenty-
          one  years of age or older; to amend the civil practice law and rules,
          in relation to removing certain references to  marihuana  relating  to
          forfeiture  actions; to amend the vehicle and traffic law, in relation
          to making technical changes regarding the definition of marihuana;  to
          amend  the  penal  law,  in  relation  to the qualification of certain
          offenses involving marihuana and to exempt certain persons from prose-
          cution for the use, consumption, display, production  or  distribution
          of marihuana; to amend the alcoholic beverage control law, in relation
          to providing for the licensure of persons authorized to produce, proc-
          ess and sell marihuana; to amend the state finance law, in relation to
          establishing  the  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 provid-
          ing for the levying of an excise tax on certain sales of marihuana; to
          amend  the  criminal  procedure law, the civil practice law and rules,
          the general business law, the state finance law,  the  executive  law,
          the  penal  law and the vehicle and traffic law, in relation to making
          conforming changes; to repeal sections 221.05, 221.10, 221.15, 221.20,
          221.25, 221.30, 221.35 and 221.40 of the penal  law  relating  to  the
          criminal  possession and sale of marihuana; to repeal paragraph (f) of
          subdivision 2 of section 850 of the general business law  relating  to
          drug  related  paraphernalia; to repeal section 150.75 of the criminal
          procedure law relating to appearance  tickets  for  certain  marihuana
          offenses; and making an appropriation therefor
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05327-06-7

        S. 3040--B                          2
          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    § 3. Section 3302 of the public health law, as added by chapter 878 of
    34  the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
    35  subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
    36  25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,
    37  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
    38  and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
    39  subdivision 20, the opening paragraph of subdivision 22 and  subdivision
    40  29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
    41  amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
    42  vision 41 as added by section 6 of part A of chapter 447 of the laws  of
    43  2012,  and  subdivisions  42  and 43 as added by section 13 of part D of
    44  chapter 60 of the laws of 2014, is amended to read as follows:
    45    § 3302. Definitions of terms of general use in  this  article.  Except
    46  where   different   meanings   are  expressly  specified  in  subsequent
    47  provisions of this article, the following terms have the following mean-
    48  ings:
    49    1. "Addict" means a person who habitually uses a controlled  substance
    50  for  a  non-legitimate or unlawful use, and who by reason of such use is
    51  dependent thereon.

        S. 3040--B                          3
     1    2.  "Administer"  means  the  direct  application  of   a   controlled
     2  substance,  whether  by  injection,  inhalation, ingestion, or any other
     3  means, to the body of a patient or research subject.
     4    3.  "Agent" means an authorized person who acts on behalf of or at the
     5  direction of a manufacturer, distributor, or dispenser. No person may be
     6  authorized to so act if under title  VIII  of  the  education  law  such
     7  person  would  not  be  permitted to engage in such conduct. It does not
     8  include a common or contract carrier, public warehouseman,  or  employee
     9  of  the  carrier  or  warehouseman  when  acting in the usual and lawful
    10  course of the carrier's or warehouseman's business.
    11    4. ["Concentrated Cannabis" means
    12    (a) the separated resin, whether crude or purified,  obtained  from  a
    13  plant of the genus Cannabis; or
    14    (b)  a  material,  preparation,  mixture,  compound or other substance
    15  which contains more than two and one-half percent by weight  of  delta-9
    16  tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
    17  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    18  terpene numbering system.
    19    5.] "Controlled substance" means a substance or substances  listed  in
    20  section thirty-three hundred six of this [chapter] title.
    21    [6.]  5.  "Commissioner"  means commissioner of health of the state of
    22  New York.
    23    [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
    24  attempted transfer from one person to another of a controlled substance,
    25  whether or not there is an agency relationship.
    26    [8.]  7.  "Department"  means the department of health of the state of
    27  New York.
    28    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    29  mate user or research subject by lawful means, including by means of the
    30  internet, and includes the packaging, labeling, or compounding necessary
    31  to prepare the substance for such delivery.
    32    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    33  ing by means of the internet, other than by administering or dispensing.
    34    [11.] 10. "Distributor" means a person who  distributes  a  controlled
    35  substance.
    36    [12.]  11.  "Diversion" means manufacture, possession, delivery or use
    37  of a controlled substance by a person or in a  manner  not  specifically
    38  authorized by law.
    39    [13.] 12. "Drug" means
    40    (a) substances recognized as drugs in the official United States Phar-
    41  macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
    42  official National Formulary, or any supplement to any of them;
    43    (b) substances intended for use in the  diagnosis,  cure,  mitigation,
    44  treatment, or prevention of disease in man or animals; and
    45    (c) substances (other than food) intended to affect the structure or a
    46  function  of  the  body of man or animal. It does not include devices or
    47  their components, parts, or accessories.
    48    [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
    49  United States Department of Justice, or its successor agency.
    50    [15.]  14. "Federal controlled substances act" means the Comprehensive
    51  Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
    52  any  act  or  acts  amendatory  or  supplemental  thereto or regulations
    53  promulgated thereunder.
    54    [16.] 15. "Federal registration number" means such number assigned  by
    55  the  Federal agency to any person authorized to manufacture, distribute,
    56  sell, dispense or administer controlled substances.

        S. 3040--B                          4
     1    [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
     2  repeated  use of any controlled substance for non-legitimate or unlawful
     3  use is in danger of becoming, dependent upon such substance.
     4    [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
     5  hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
     6  hospital or similar facility approved and certified by the department as
     7  authorized  to  obtain  controlled  substances  by  distribution  and to
     8  dispense and administer such substances pursuant to the order of a prac-
     9  titioner.
    10    [19.] 18. "License"  means  a  written  authorization  issued  by  the
    11  department  or  the  New  York  state department of education permitting
    12  persons to engage in a specified activity  with  respect  to  controlled
    13  substances.
    14    [20.]  19.  "Manufacture"  means  the  production, preparation, propa-
    15  gation,  compounding,  cultivation,  conversion  or  processing   of   a
    16  controlled  substance,  either  directly  or indirectly or by extraction
    17  from substances of natural origin, or independently by means of chemical
    18  synthesis, or by a combination of extraction and chemical synthesis, and
    19  includes any packaging or repackaging of the substance  or  labeling  or
    20  relabeling  of its container, except that this term does not include the
    21  preparation,  compounding,  packaging  or  labeling  of   a   controlled
    22  substance:
    23    (a)  by a practitioner as an incident to his administering or dispens-
    24  ing of a controlled substance in the course of  his  professional  prac-
    25  tice; or
    26    (b)  by  a  practitioner,  or by his authorized agent under his super-
    27  vision, for the purpose of, or as an incident to, research, teaching, or
    28  chemical analysis and not for sale; or
    29    (c) by a pharmacist as an incident to his dispensing of  a  controlled
    30  substance in the course of his professional practice.
    31    [21.  "Marihuana"  means all parts of the plant of the genus Cannabis,
    32  whether growing or not; the seeds thereof; the resin extracted from  any
    33  part  of  the  plant; and every compound, manufacture, salt, derivative,
    34  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    35  include  the mature stalks of the plant, fiber produced from the stalks,
    36  oil or cake made from the seeds of the plant, any other compound,  manu-
    37  facture,  salt, derivative, mixture, or preparation of the mature stalks
    38  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    39  sterilized seed of the plant which is incapable of germination.
    40    22.]  20. "Narcotic drug" means any of the following, whether produced
    41  directly or  indirectly  by  extraction  from  substances  of  vegetable
    42  origin,  or independently by means of chemical synthesis, or by a combi-
    43  nation of extraction and chemical synthesis:
    44    (a) opium and opiate, and any salt, compound, derivative, or  prepara-
    45  tion of opium or opiate;
    46    (b)  any  salt,  compound,  isomer, derivative, or preparation thereof
    47  which is chemically equivalent or identical with any of  the  substances
    48  referred  to in [subdivision] paragraph (a) of this subdivision, but not
    49  including the isoquinoline alkaloids of opium;
    50    (c) opium poppy and poppy straw.
    51    [23.] 21. "Opiate" means any substance having an addiction-forming  or
    52  addiction-sustaining  liability  similar to morphine or being capable of
    53  conversion into a drug having addiction-forming or  addiction-sustaining
    54  liability.  It  does  not  include,  unless  specifically  designated as
    55  controlled under section [3306] thirty-three hundred six of this  [arti-
    56  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and

        S. 3040--B                          5
     1  its  salts (dextromethorphan). It does include its racemic and levorota-
     2  tory forms.
     3    [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
     4  somniferum L., except its seeds.
     5    [25.] 23. "Person" means individual, institution, corporation, govern-
     6  ment or governmental subdivision  or  agency,  business  trust,  estate,
     7  trust, partnership or association, or any other legal entity.
     8    [26.]  24. "Pharmacist" means any person licensed by the state depart-
     9  ment of education to practice pharmacy.
    10    [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
    11  York  state  board  of  pharmacy  and registered with the Federal agency
    12  pursuant to the federal controlled substances act.
    13    [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
    14  opium poppy, after mowing.
    15    [29.] 27. "Practitioner" means:
    16    A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
    17  gator, or other person licensed, or  otherwise  permitted  to  dispense,
    18  administer or conduct research with respect to a controlled substance in
    19  the  course  of  a  licensed  professional practice or research licensed
    20  pursuant to this article. Such person shall be deemed  a  "practitioner"
    21  only  as  to such substances, or conduct relating to such substances, as
    22  is permitted by his license, permit or otherwise permitted by law.
    23    [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
    24  prescription,  permitting an ultimate user lawfully to obtain controlled
    25  substances  from  any  person  authorized  by  law  to   dispense   such
    26  substances.
    27    [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
    28  prescription, an electronic prescription, an oral prescription[,] or  an
    29  out-of-state prescription[, or any one].
    30    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
    31  er, or offer or agree to do the same.
    32    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
    33  possesses a controlled substance for his own use or the use by a  member
    34  of  his  household  or  for an animal owned by him or in his custody. It
    35  shall also mean and include a person designated, by a practitioner on  a
    36  prescription, to obtain such substance on behalf of the patient for whom
    37  such substance is intended.
    38    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    39  cations facilities which comprise the worldwide network of networks that
    40  employ a set of industry standards and protocols, or any predecessor  or
    41  successor  protocol  to  such  protocol,  to exchange information of all
    42  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
    43  networks,  whether  private  or  public, used to transmit information by
    44  electronic means.
    45    [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
    46  distribution,  or  dispensing  of  a  controlled substance that uses the
    47  internet, is initiated by use of the internet or causes the internet  to
    48  be used.
    49    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
    50  in  the  United  States  that sells, delivers or dispenses, or offers to
    51  sell, deliver, or dispense, a  controlled  substance  by  means  of  the
    52  internet.
    53    [37.]  35.  "Electronic prescription" means a prescription issued with
    54  an electronic signature and transmitted by electronic means  in  accord-
    55  ance with regulations of the commissioner and the commissioner of educa-
    56  tion  and consistent with federal requirements. A prescription generated

        S. 3040--B                          6
     1  on an electronic system that is printed out or transmitted via facsimile
     2  is not considered  an  electronic  prescription  and  must  be  manually
     3  signed.
     4    [38.] 36. "Electronic" means of or relating to technology having elec-
     5  trical, digital, magnetic, wireless, optical, electromagnetic or similar
     6  capabilities. "Electronic" shall not include facsimile.
     7    [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
     8  created, generated, transmitted, communicated,  received  or  stored  by
     9  means  of electronic equipment and includes the preservation, retrieval,
    10  use and disposition in accordance with regulations of  the  commissioner
    11  and the commissioner of education and in compliance with federal law and
    12  regulations.
    13    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    14  process,  attached  to or logically associated with an electronic record
    15  and executed or adopted by a person with the intent to sign the  record,
    16  in  accordance with regulations of the commissioner and the commissioner
    17  of education.
    18    [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
    19  means  the prescription monitoring program registry established pursuant
    20  to section thirty-three hundred forty-three-a of this article.
    21    [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
    22  ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
    23  drug substance to create a drug with respect to an outsourcing  facility
    24  under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
    25  further defined in this section.
    26    [43.] 41. "Outsourcing facility" means a facility that:
    27    (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
    28  section sixty-eight hundred two of the education law;
    29    (b)  is  currently  registered  as an outsourcing facility pursuant to
    30  article one hundred thirty-seven of the education law; and
    31    (c) complies with all applicable requirements  of  federal  and  state
    32  law, including the Federal Food, Drug and Cosmetic Act.
    33    Notwithstanding  any  other  provision of law to the contrary, when an
    34  outsourcing facility distributes or dispenses any  drug  to  any  person
    35  pursuant to a prescription, such outsourcing facility shall be deemed to
    36  be  providing  pharmacy services and shall be subject to all laws, rules
    37  and regulations governing pharmacies and pharmacy services.
    38    § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
    39  26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
    40  section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
    41  18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
    42  1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
    43  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
    44  laws of 2006, are amended to read as follows:
    45    (13) [Marihuana.
    46    (14)] Mescaline.
    47    [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
    48  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
    49    [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
    50  fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
    51  not, the seeds thereof, any extract from any part  of  such  plant,  and
    52  every  compound, manufacture, salts, derivative, mixture, or preparation
    53  of such plant, its seeds or extracts.
    54    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    55    [(18)] (17) N-methyl-3-piperidyl benzilate.
    56    [(19)] (18) Psilocybin.

        S. 3040--B                          7
     1    [(20)] (19) Psilocyn.
     2    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
     3  derived  from  the cannabis plant that are equivalents of the substances
     4  contained in the plant, or in the resinous extractives of cannabis,  sp.
     5  and/or synthetic substances, derivatives, and their isomers with similar
     6  chemical structure and pharmacological activity such as the following:
     7    delta 1 cis or trans tetrahydrocannabinol, and their optical isomers
     8    delta 6 cis or trans tetrahydrocannabinol, and their optical isomers
     9    delta  3, 4 cis or trans tetrahydrocannabinol, and its optical isomers
    10  (since nomenclature of these substances is not internationally standard-
    11  ized, compounds of these structures, regardless of numerical designation
    12  of atomic positions covered).
    13    [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
    14  names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
    15  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    16    [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
    17  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    18    [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
    19  names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
    20  phencyclidine, TPCP, TCP.
    21    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    22    [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
    23  N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
    24  MDE, MDEA.
    25    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    26  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    27  N-hydroxy MDA.
    28    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    29  names: TCPY.
    30    [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
    31  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    32  3- (2-aminobutyl) indole; Alpha-ET or AET.
    33    [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
    34  names: DOET.
    35    [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
    36  names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
    37  DOB; 2C-B, Nexus.
    38    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    39  optical isomers, salts and salts of isomers.
    40    § 5. Section 3382 of the public health law, as added by chapter 878 of
    41  the laws of 1972, is amended to read as follows:
    42    §  3382. Growing of the plant known as Cannabis by unlicensed persons.
    43  A person who, without being licensed so to do under this article,  grows
    44  the  plant  of  the genus Cannabis or knowingly allows it to grow on his
    45  land without  destroying  the  same,  shall  be  guilty  of  a  class  A
    46  misdemeanor,  unless the person grows in accordance with sections 221.05
    47  and 221.05-a of the penal law.
    48    § 6. Paragraph (d) of subdivision 3, subdivision  3-a  and  paragraphs
    49  (a)  and (b) of subdivision 11 of section 1311 of the civil practice law
    50  and rules, paragraph (d) of subdivision three  and  subdivision  3-a  as
    51  added  by  chapter 655 of the laws of 1990 and paragraphs (a) and (b) of
    52  subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the
    53  laws of 2010, are amended to read as follows:
    54    (d) In a forfeiture action commenced by a claiming authority against a
    55  defendant,  the  following  rebuttable  presumption  shall  apply:   all
    56  currency  or  negotiable  instruments  payable  to  the  bearer shall be

        S. 3040--B                          8
     1  presumed to be the proceeds of a pre-conviction  forfeiture  crime  when
     2  such currency or negotiable instruments are (i) found in close proximity
     3  to  a  controlled  substance unlawfully possessed by the defendant in an
     4  amount  sufficient to constitute a violation of section 220.18 or 220.21
     5  of the penal law, or (ii) found in close proximity to any quantity of  a
     6  controlled substance [or marihuana] unlawfully possessed by such defend-
     7  ant  in  a room, other than a public place, under circumstances evincing
     8  an intent to unlawfully mix, compound, distribute, package or  otherwise
     9  prepare for sale such controlled substance [or marihuana].
    10    3-a.  Conviction  of  a person in a criminal action upon an accusatory
    11  instrument which includes one or  more  of  the  felonies  specified  in
    12  subdivision  four-b  of section thirteen hundred ten of this article, of
    13  any felony other than such felonies, shall not preclude a defendant,  in
    14  any subsequent proceeding under this article where that conviction is at
    15  issue, from adducing evidence that the conduct underlying the conviction
    16  would  not  establish  the  elements of any of the felonies specified in
    17  such subdivision other than the one to which the criminal defendant pled
    18  guilty. If the defendant does adduce such evidence, the burden shall  be
    19  upon  the claiming authority to prove, by clear and convincing evidence,
    20  that the conduct underlying the criminal conviction would establish  the
    21  elements  of the felony specified in such subdivision. Nothing contained
    22  in this subdivision shall affect the validity of  a  settlement  of  any
    23  forfeiture action negotiated between the claiming authority and a crimi-
    24  nal defendant contemporaneously with the taking of a plea of guilty in a
    25  criminal  action to any felony defined in article two hundred twenty [or
    26  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    27  commit the same.
    28    (a) Any stipulation or settlement agreement between the parties  to  a
    29  forfeiture  action  shall  be filed with the clerk of the court in which
    30  the forfeiture action is pending. No stipulation or settlement agreement
    31  shall be accepted for filing unless it is accompanied  by  an  affidavit
    32  from  the  claiming  authority that written notice of the stipulation or
    33  settlement agreement, including the terms of such, has been given to the
    34  office of victim  services,  the  state  division  of  criminal  justice
    35  services[,  and in the case of a forfeiture based on a felony defined in
    36  article two hundred twenty or section 221.30 or 221.55 of the penal law,
    37  to the state division of substance abuse services].
    38    (b) No judgment or order of forfeiture shall be  accepted  for  filing
    39  unless  it  is  accompanied  by an affidavit from the claiming authority
    40  that written notice of judgment or order, including the terms  of  such,
    41  has  been  given to the office of victim services, the state division of
    42  criminal justice services[, and in the case of a forfeiture based  on  a
    43  felony defined in article two hundred twenty or section 221.30 or 221.55
    44  of the penal law, to the state division of substance abuse services].
    45    §  7.  Subdivision  1  of  section 3397-b of the public health law, as
    46  added by chapter 810 of the laws of 1980, is amended to read as follows:
    47    1. ["Marijuana"] "Marihuana" means [marijuana] marihuana as defined in
    48  [section thirty-three hundred two of this chapter]  subdivision  six  of
    49  section  220.00 of the penal law and shall also include tetrahydrocanna-
    50  binols or a chemical derivative of tetrahydrocannabinol.
    51    § 8. Section 114-a of the vehicle and traffic law, as added by chapter
    52  163 of the laws of 1973, is amended to read as follows:
    53    § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
    54  includes any substance listed in section thirty-three hundred six of the
    55  public  health law and marihuana and concentrated cannabis as defined in
    56  section 220.00 of the penal law.

        S. 3040--B                          9
     1    § 9. Subdivisions 5, 6 and 9 of  section  220.00  of  the  penal  law,
     2  subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
     3  6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
     4  amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
     5  subdivisions 21 and 22 are added to read as follows:
     6    5.  "Controlled  substance"  means any substance listed in schedule I,
     7  II, III, IV or V of section  thirty-three  hundred  six  of  the  public
     8  health  law other than marihuana, but including concentrated cannabis as
     9  defined in [paragraph (a) of subdivision four  of  section  thirty-three
    10  hundred two of such law] subdivision twenty-one of this section.
    11    6.  "Marihuana" means ["marihuana" or "concentrated cannabis" as those
    12  terms are defined in section thirty-three  hundred  two  of  the  public
    13  health  law] all parts of the plant of the genus Cannabis, whether grow-
    14  ing or not; the seeds thereof; the resin extracted from any part of  the
    15  plant;  and  every  compound, manufacture, salt, derivative, mixture, or
    16  preparation of the plant, its seeds or resin.  It does not  include  the
    17  mature  stalks of the plant, fiber produced from the stalks, oil or cake
    18  made from the seeds of the plant, any other compound, manufacture, salt,
    19  derivative, mixture, or preparation of the  mature  stalks  (except  the
    20  resin  extracted therefrom), fiber, oil, or cake, or the sterilized seed
    21  of the plant which is incapable of germination. It does not include  all
    22  parts of the plant Cannabis sativa L., whether growing or not, having no
    23  more than three-tenths of one percent tetrahydrocannabinol (THC).
    24    9.  "Hallucinogen"  means any controlled substance listed in [schedule
    25  I(d)] paragraphs (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
    26  (19),  (20) and (21) of subdivision (d) of schedule I of section thirty-
    27  three hundred six of the public health law.
    28    21. "Concentrated cannabis" means:
    29    (a) the separated resin, whether crude or purified,  obtained  from  a
    30  plant of the genus Cannabis; or
    31    (b)  a  material,  preparation,  mixture,  compound or other substance
    32  which contains more than three percent by weight of delta-9  tetrahydro-
    33  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
    34  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
    35  numbering system.
    36    22.  "Marihuana  products" means marihuana, concentrated cannabis, and
    37  marihuana-infused products containing concentrated marihuana or cannabis
    38  and other ingredients.
    39    § 10.  Subdivision 4 of section 220.06 of the penal law, as amended by
    40  chapter 537 of the laws of 1998, is amended to read as follows:
    41    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
    42  containing  concentrated cannabis as defined in [paragraph (a) of subdi-
    43  vision four of section thirty-three hundred two  of  the  public  health
    44  law]  subdivision  twenty-one of section 220.00 of this article and said
    45  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    46  weight of one-fourth ounce or more; or
    47    § 11. Subdivision 10 of section 220.09 of the penal law, as amended by
    48  chapter 537 of the laws of 1998, is amended to read as follows:
    49    10.  one  or  more  preparations,  compounds,  mixtures  or substances
    50  containing concentrated cannabis as defined in [paragraph (a) of  subdi-
    51  vision  four  of  section  thirty-three hundred two of the public health
    52  law] subdivision twenty-one of section 220.00 of this article  and  said
    53  preparations,  compounds,  mixtures  or  substances  are of an aggregate
    54  weight of one ounce or more; or
    55    § 12. Subdivision 3 of section 220.34 of the penal law, as amended  by
    56  chapter 537 of the laws of 1998, is amended to read as follows:

        S. 3040--B                         10
     1    3.  concentrated  cannabis as defined in [paragraph (a) of subdivision
     2  four of section thirty-three hundred  two  of  the  public  health  law]
     3  subdivision twenty-one of section 220.00 of this article; or
     4    §  13.  Section  220.50 of the penal law, as amended by chapter 627 of
     5  the laws of 1990, is amended to read as follows:
     6  § 220.50 Criminally using drug paraphernalia in the second degree.
     7    A person is guilty of  criminally  using  drug  paraphernalia  in  the
     8  second degree when he knowingly possesses or sells:
     9    1.  Diluents,  dilutants or adulterants, including but not limited to,
    10  any of the following: quinine hydrochloride, mannitol, mannite,  lactose
    11  or  dextrose,  adapted  for the dilution of narcotic drugs or stimulants
    12  under circumstances evincing an intent to use,  or  under  circumstances
    13  evincing  knowledge  that  some  person  intends  to  use,  the same for
    14  purposes of unlawfully mixing, compounding, or otherwise  preparing  any
    15  narcotic  drug or stimulant, other than marihuana or concentrated canna-
    16  bis; or
    17    2. Gelatine capsules, glassine envelopes, vials, capsules or any other
    18  material suitable for the packaging of individual quantities of narcotic
    19  drugs or stimulants under circumstances evincing an intent  to  use,  or
    20  under  circumstances evincing knowledge that some person intends to use,
    21  the same for the  purpose  of  unlawfully  manufacturing,  packaging  or
    22  dispensing  of  any  narcotic drug or stimulant, other than marihuana or
    23  concentrated cannabis; or
    24    3. Scales and balances used or designed for the purpose of weighing or
    25  measuring controlled substances, under circumstances evincing an  intent
    26  to  use,  or  under  circumstances  evincing  knowledge that some person
    27  intends to use, the same for purpose of unlawfully manufacturing,  pack-
    28  aging  or dispensing of any narcotic drug or stimulant, other than mari-
    29  huana or concentrated cannabis.
    30    Criminally using drug paraphernalia in the second degree is a class  A
    31  misdemeanor.
    32    § 14.  Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
    33  and 221.40 of the penal law are REPEALED.
    34    §  15.  The penal law is amended by adding two new sections 221.05 and
    35  221.05-a to read as follows:
    36  § 221.05 Personal use of marihuana.
    37    1. Notwithstanding any other provision of this chapter, the  following
    38  acts  are  lawful under state and local law for persons twenty-one years
    39  of age and older:
    40    (a) possessing, using, being under the influence, displaying, purchas-
    41  ing, obtaining, or transporting up to two pounds of marihuana  and  four
    42  and one-half ounces of concentrated cannabis;
    43    (b)  transferring,  without remuneration, to a person twenty-one years
    44  of age and older up to two pounds of marihuana  and  four  and  one-half
    45  ounces of concentrated cannabis;
    46    (c)  possessing, planting, cultivating, harvesting, drying, processing
    47  or transporting not more than six living marihuana plants and possessing
    48  the marihuana produced by the plants;
    49    (d) smoking, ingesting or otherwise consuming marihuana products;
    50    (e) possessing, using, displaying, purchasing, obtaining,  manufactur-
    51  ing,  transporting or giving away to persons twenty-one years of age and
    52  older marihuana or concentrated cannabis paraphernalia; and
    53    (f) assisting another person who is twenty-one years of age and  older
    54  or  allow property to be used in any of the acts described in paragraphs
    55  (a) through (e) of this subdivision.

        S. 3040--B                         11
     1    2. Paragraph (e) of subdivision one of this  section  is  intended  to
     2  meet  the requirements of subsection (f) of Section 863 of Title twenty-
     3  one of the United States Code (21 U.S.C.  §  863  (f))  by  authorizing,
     4  under  state law, any person in compliance with this section to manufac-
     5  ture, possess, or distribute marihuana paraphernalia.
     6    3.  Marihuana  products involved in any way with conduct deemed lawful
     7  by this section are not contraband nor subject to seizure or  forfeiture
     8  of  assets  under  article  four hundred eighty of this chapter, section
     9  thirteen hundred eleven of the civil practice law and  rules,  or  other
    10  applicable  law,  and  no  conduct  deemed  lawful by this section shall
    11  constitute the basis  for  approach,  search,  seizure,  arrest,  and/or
    12  detention.
    13    4. (a) Except as provided in subdivision five of this section, none of
    14  the  following  shall,  individually  or in combination with each other,
    15  constitute reasonable suspicion of a crime or be used as evidence in any
    16  criminal proceeding:
    17    (1) the odor of marihuana or of burnt marihuana;
    18    (2) the possession of or the  suspicion  of  possession  of  marihuana
    19  products;
    20    (3)  The  possession  of  multiple  containers  of  marihuana  without
    21  evidence of marihuana quantity in excess of sixteen  ounces  or  concen-
    22  trated cannabis quantity in excess of four and one-half ounces; or
    23    (4) the presence of cash or currency cannot be used as evidence in any
    24  cases involving criminal sale of marihuana.
    25    (b)  The possession of up to two ounces of marihuana and up to sixteen
    26  ounces of marihuana products cannot be used as  evidence  in  any  cases
    27  involving criminal sale of marihuana.
    28    5.  Subdivision  four  of  this  section  shall  not  apply when a law
    29  enforcement officer is investigating whether a person is operating or in
    30  physical control of a vehicle or watercraft while intoxicated, under the
    31  influence of, or impaired by alcohol or a drug or any combination there-
    32  of in violation of section eleven hundred ninety-two of the vehicle  and
    33  traffic law.
    34    6. Possession of greater than two pounds of marihuana and greater than
    35  four and one-half ounces of concentrated cannabis is a violation punish-
    36  able  by  a  fine  of  not more than one hundred twenty-five dollars per
    37  offense.
    38  § 221.05-a Personal cultivation of marihuana.
    39    1. Personal cultivation of marihuana under paragraph (c)  of  subdivi-
    40  sion  one  of section 221.05 of this article is subject to the following
    41  restrictions:
    42    (a) a person shall plant, cultivate, harvest, dry, or  process  plants
    43  in  accordance with local ordinances, if any, adopted in accordance with
    44  subdivision (2) of this section;
    45    (b) the living plants and any marihuana  produced  by  the  plants  in
    46  excess  of two pounds are kept within the person's private residence, or
    47  upon the grounds of that private residence (e.g., in an  outdoor  garden
    48  area),  are  in  a  locked  space, and are not visible by normal unaided
    49  vision from a public place; and
    50    (c) not more than  six  living  plants  may  be  planted,  cultivated,
    51  harvested,  dried,  or  processed  within a single private residence, or
    52  upon the grounds of that private residence, at one time.
    53    2. (a) A local jurisdiction may enact  and  enforce  reasonable  regu-
    54  lations  to reasonably regulate the actions and conduct in paragraph (c)
    55  of subdivision one of section 221.05 of this article,  provided  that  a

        S. 3040--B                         12
     1  violation  of  such  a  regulation  is only subject to an infraction and
     2  fine.
     3    (b) Notwithstanding paragraph (a) of this subdivision, no local juris-
     4  diction  may  completely  prohibit  persons  engaging in the actions and
     5  conduct under paragraph (c) of subdivision one of section 221.05 of this
     6  article.
     7    3. A violation of  subdivision  one  or  two  of  this  section  is  a
     8  violation  punishable by a fine of not more than one hundred twenty-five
     9  dollars per offense.
    10    § 16. Section 221.45 of the penal law, as amended by  chapter  265  of
    11  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
    12  laws of 1995, is amended to read as follows:
    13  § 221.45 [Criminal] Unlicensed sale of marihuana in the third degree.
    14    A person is guilty of [criminal] unlicensed sale of marihuana  in  the
    15  third  degree when he knowingly and unlawfully sells [one or more prepa-
    16  rations, compounds, mixtures or substances containing marihuana and  the
    17  preparations,  compounds,  mixtures  or  substances  are of an aggregate
    18  weight of more than twenty-five grams] not more than sixteen  ounces  of
    19  marihuana  or  not  more  than  four and one-half ounces of concentrated
    20  cannabis, not including the weight of any other ingredient combined with
    21  marihuana to prepare topical or oral administrations,  food,  drink,  or
    22  other product.
    23    [Criminal]  Unlicensed  sale  of  marihuana  in the third degree is [a
    24  class E felony] subject to the following:
    25    1. A violation punishable by a fine of not more than one hundred twen-
    26  ty-five dollars, for a first offense;
    27    2. A violation publishable by a fine of  not  more  than  two  hundred
    28  fifty dollars for a second offense;
    29    3.  A  class  B  misdemeanor  and a fine of not more than five hundred
    30  dollars for a third or subsequent offense.
    31    § 17. Section 221.50 of the penal law, as amended by  chapter  265  of
    32  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
    33  laws of 1995, is amended to read as follows:
    34  § 221.50 [Criminal] Unlicensed sale of marihuana in the second degree.
    35    A person twenty-one years of age and older  is  guilty  of  [criminal]
    36  unlicensed  sale of marihuana in the second degree when he knowingly and
    37  unlawfully sells  one  or  more  preparations,  compounds,  mixtures  or
    38  substances   containing   marihuana  and  the  preparations,  compounds,
    39  mixtures or substances are of an aggregate  weight  of  more  than  four
    40  ounces,  or  knowingly  and  unlawfully  sells one or more preparations,
    41  compounds, mixtures [or substances containing  marihuana]  to  a  person
    42  less than [eighteen] twenty-one years of age.
    43    [Criminal]  Unlicensed  sale  of  marihuana  in the second degree is a
    44  class [D] E felony.
    45    § 18. Section 221.55 of the penal law, as amended by  chapter  265  of
    46  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
    47  laws of 1995, is amended to read as follows:
    48  § 221.55 [Criminal] Unlicensed sale of marihuana in the first degree.
    49    A person is guilty of [criminal] unlicensed sale of marihuana  in  the
    50  first  degree  when  he  knowingly and unlawfully sells to a person less
    51  than twenty-one years  of  age  one  or  more  preparations,  compounds,
    52  mixtures  or  substances  containing  marihuana  and  the  preparations,
    53  compounds, mixtures or substances are of an  aggregate  weight  of  more
    54  than sixteen ounces.
    55    [Criminal] Unlicensed sale of marihuana in the first degree is a class
    56  [C] E felony.

        S. 3040--B                         13
     1    §  19. The penal law is amended by adding a new section 221.60 to read
     2  as follows:
     3  § 221.60 Licensing of marihuana production and distribution.
     4    The  provisions  of  this article and of article two hundred twenty of
     5  this title shall not apply to any person exempted from  criminal  penal-
     6  ties  pursuant to the provisions of this chapter or possessing, manufac-
     7  turing, transporting, distributing, selling or transferring marihuana or
     8  concentrated cannabis, or engaged in any other action that is in compli-
     9  ance with article eleven of the alcoholic beverage control law.
    10    § 20. Subdivision 8 of section 1399-n of the  public  health  law,  as
    11  amended  by  chapter  13  of  the  laws  of  2003, is amended to read as
    12  follows:
    13    8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
    14  any  other  matter  or  substance  which  contains tobacco or marihuana;
    15  provided that it does not include  the  use  of  an  electronic  smoking
    16  device  that creates an aerosol or vapor, unless local or state statutes
    17  extend prohibitions on smoking to electronic smoking devices.
    18    § 21. Section 2 of the alcoholic beverage control law, as  amended  by
    19  chapter 406 of the laws of 2014, is amended to read as follows:
    20    §  2. Policy of state and purpose of chapter. It is hereby declared as
    21  the policy of the state that it is necessary to regulate and control the
    22  manufacture, sale and distribution within the state of alcoholic  bever-
    23  ages  and  marihuana products for the purpose of fostering and promoting
    24  temperance in their consumption and respect for and  obedience  to  law;
    25  for  the  primary purpose of promoting the health, welfare and safety of
    26  the people of the state, promoting  temperance  in  the  consumption  of
    27  alcoholic beverages and marihuana products; and, to the extent possible,
    28  supporting  economic  growth, job development, and the state's alcoholic
    29  beverage production industries and its tourism and recreation  industry;
    30  and  which  promotes  the conservation and enhancement of state agricul-
    31  tural lands; provided that such activities  do  not  conflict  with  the
    32  primary  regulatory  objectives  of  this chapter. It is hereby declared
    33  that such policies will best be carried out  by  empowering  the  liquor
    34  authority  of  the  state  to  determine  whether public convenience and
    35  advantage will be promoted by the issuance of  licenses  to  traffic  in
    36  alcoholic  beverages and marihuana products, the increase or decrease in
    37  the number thereof  and  the  location  of  premises  licensed  thereby,
    38  subject  only to the right of judicial review provided for in this chap-
    39  ter. It is the purpose of this chapter to carry out  these  policies  in
    40  the public interest.
    41    § 22. Subdivisions 20-a, 20-b, 20-c, 20-d and 20-e of section 3 of the
    42  alcoholic  beverage  control law are renumbered subdivisions 20-j, 20-k,
    43  20-l, 20-m and 20-n and ten new  subdivisions  7-e,  20-a,  20-b,  20-c,
    44  20-d, 20-e, 20-f, 20-g, 20-h and 20-i are added to read as follows:
    45    7-e.  "Concentrated  cannabis" means: (a) the separated resin, whether
    46  crude or purified, obtained from a plant of the genus Cannabis; or
    47    (b) a material, preparation,  mixture,  compound  or  other  substance
    48  which  contains more than three percent by weight of delta-9 tetrahydro-
    49  cannabinol, or its isomer, delta-8  dibenzopyran  numbering  system,  or
    50  delta-1  tetrahydrocannabinol  or  its  isomer,  delta 1 (6) monoterpene
    51  numbering system.
    52    20-a. "Marihuana" means all parts of the plant of the genus  Cannabis,
    53  whether  growing or not; the seeds thereof; the resin extracted from any
    54  part of the plant; and every compound,  manufacture,  salt,  derivative,
    55  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    56  include the mature stalks of the plant, fiber produced from the  stalks,

        S. 3040--B                         14
     1  oil  or cake made from the seeds of the plant, any other compound, manu-
     2  facture, salt, derivative, mixture, or preparation of the mature  stalks
     3  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
     4  sterilized  seed of the plant which is incapable of germination. It does
     5  not include all parts of the plant Cannabis sativa L.,  whether  growing
     6  or not, having no more than three-tenths of one percent tetrahydrocanna-
     7  binol (THC).
     8    20-b.  "Marihuana  consumer" means a person twenty-one years of age or
     9  older who purchases marihuana or marihuana products for personal use  by
    10  persons twenty-one years of age or older, but not for resale to others.
    11    20-c.  "Marihuana  processor" means a person licensed by the bureau to
    12  purchase marihuana and concentrated cannabis from  marihuana  producers,
    13  to  process  marihuana,  concentrated  cannabis,  and  marihuana infused
    14  products, package and label marihuana, concentrated cannabis  and  mari-
    15  huana  infused  products for sale in retail outlets, and sell marihuana,
    16  concentrated cannabis and marihuana infused  products  at  wholesale  to
    17  marihuana retailers.
    18    20-d.  "Marihuana  producer"  means a person licensed by the bureau to
    19  produce, process, and sell marihuana and concentrated cannabis at whole-
    20  sale to marihuana processors, marihuana retailers,  or  other  marihuana
    21  producers, but not to consumers.
    22    20-e. "Marihuana products" means marihuana, concentrated cannabis, and
    23  marihuana-infused products.
    24    20-f.  "Marihuana-infused  products" means products that contain mari-
    25  huana, marihuana extracts, or concentrated cannabis and are intended for
    26  human use or consumption, such as, but not limited to, edible  products,
    27  ointments, and tinctures.
    28    20-g.  "Marihuana  retailer"  means a person licensed by the bureau to
    29  purchase  marihuana,  concentrated   cannabis,   and   marihuana-infused
    30  products  from  marihuana  producers  and  marihuana processors and sell
    31  marihuana, marihuana infused products, and concentrated  cannabis  in  a
    32  retail outlet.
    33    20-h.  "Marihuana retailer for on-premises consumption" means a person
    34  licensed by the bureau to purchase marihuana, concentrated cannabis, and
    35  marihuana infused products from marihuana producers,  marihuana  retail-
    36  ers, and marihuana processors and sell marihuana products for a customer
    37  to consume while the customer is within a facility.
    38    20-i.  "Unreasonably  impracticable" means that the measures necessary
    39  to comply with the regulations require such a high investment  of  risk,
    40  money, time or other resource or asset that the operation of a marihuana
    41  establishment is not worthy of being carried out by a reasonably prudent
    42  businessperson.
    43    §  23.  Section 65-b of the alcoholic beverage control law, as amended
    44  by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
    45  sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
    46  paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
    47  2000, is amended to read as follows:
    48    §  65-b.  Offense for one under age of twenty-one years to purchase or
    49  attempt to purchase an alcoholic beverage or marihuana products  through
    50  fraudulent  means. 1.  As used in this section: (a) "A device capable of
    51  deciphering any electronically readable format" or "device"  shall  mean
    52  any  commercial device or combination of devices used at a point of sale
    53  or entry that is capable of  reading  the  information  encoded  on  the
    54  magnetic strip or bar code of a driver's license or non-driver identifi-
    55  cation card issued by the commissioner of motor vehicles;

        S. 3040--B                         15
     1    (b)  "Card  holder"  means any person presenting a driver's license or
     2  non-driver identification card to a licensee, or to the agent or employ-
     3  ee of such licensee under this chapter; and
     4    (c) "Transaction scan" means the process involving a device capable of
     5  deciphering  any  electronically readable format by which a licensee, or
     6  agent or employee of a licensee under this chapter  reviews  a  driver's
     7  license  or  non-driver  identification card presented as a precondition
     8  for the purchase of an  alcoholic  beverage  or  marihuana  products  as
     9  required  by  subdivision  two  of this section or as a precondition for
    10  admission to an establishment licensed for the on-premises sale of alco-
    11  holic beverages or marihuana products where admission is  restricted  to
    12  persons twenty-one years or older.
    13    2.  (a)  No  person under the age of twenty-one years shall present or
    14  offer to any licensee under this chapter, or to the agent or employee of
    15  such licensee, any written evidence of age which is false, fraudulent or
    16  not actually his or her own, for the purpose of purchasing or attempting
    17  to purchase any alcoholic beverage or marihuana products.
    18    (b) No licensee, or agent or employee of such licensee shall accept as
    19  written evidence of age by any such person for the purchase of any alco-
    20  holic beverage or marihuana products, any documentation other than:  (i)
    21  a valid driver's license or non-driver identification card issued by the
    22  commissioner  of  motor  vehicles,  the  federal  government, any United
    23  States territory, commonwealth or possession, the District of  Columbia,
    24  a  state  government within the United States or a provincial government
    25  of the dominion of Canada, or (ii) a valid passport issued by the United
    26  States government or any other country, or (iii) an identification  card
    27  issued  by  the armed forces of the United States. Upon the presentation
    28  of such driver's license or non-driver identification card issued  by  a
    29  governmental  entity,  such  licensee  or  agent or employee thereof may
    30  perform a transaction scan as a precondition to the sale of any alcohol-
    31  ic beverage. Nothing in this section shall prohibit a licensee or  agent
    32  or  employee from performing such a transaction scan on any of the other
    33  documents listed in this subdivision if such  documents  include  a  bar
    34  code or magnetic strip that [that] may be scanned by a device capable of
    35  deciphering any electronically readable format.
    36    (c)  In  instances where the information deciphered by the transaction
    37  scan fails to match the information printed on the driver's  license  or
    38  non-driver  identification  card presented by the card holder, or if the
    39  transaction scan indicates that the information is false or  fraudulent,
    40  the  attempted  purchase of the alcoholic beverage or marihuana products
    41  shall be denied.
    42    3. A person violating the provisions of paragraph (a)  of  subdivision
    43  two  of  this  section  shall  be  guilty  of  a  violation and shall be
    44  sentenced in accordance with the following:
    45    (a) For a first violation, the court shall order payment of a fine  of
    46  not more than one hundred dollars and/or an appropriate amount of commu-
    47  nity  service  not  to  exceed  thirty hours. In addition, the court may
    48  order completion of an alcohol awareness program established pursuant to
    49  section 19.25 of the mental hygiene law  or  of  a  marihuana  awareness
    50  program.
    51    (b) For a second violation, the court shall order payment of a fine of
    52  not  less  than  fifty dollars nor more than three hundred fifty dollars
    53  and/or an appropriate amount of community service not  to  exceed  sixty
    54  hours.  The court also shall order completion of an alcohol or marihuana
    55  awareness program as referenced in paragraph (a) of this subdivision  if
    56  such  program  has not previously been completed by the offender, unless

        S. 3040--B                         16
     1  the court determines that attendance at such program is not feasible due
     2  to the lack of availability of such program within  a  reasonably  close
     3  proximity to the locality in which the offender resides or matriculates,
     4  as appropriate.
     5    (c) For third and subsequent violations, the court shall order payment
     6  of  a  fine  of  not less than fifty dollars nor more than seven hundred
     7  fifty dollars and/or an appropriate amount of community service  not  to
     8  exceed  ninety hours. The court also shall order that such person submit
     9  to an evaluation by an appropriate agency certified or licensed  by  the
    10  office  of  alcoholism and substance abuse services to determine whether
    11  the person suffers from the disease of alcoholism or alcohol or marihua-
    12  na abuse, unless the  court  determines  that  under  the  circumstances
    13  presented  such  an evaluation is not necessary, in which case the court
    14  shall state on the record the basis for such determination. Payment  for
    15  such  evaluation  shall be made by such person. If, based on such evalu-
    16  ation, a need for treatment is indicated,  such  person  may  choose  to
    17  participate  in  a  treatment  plan  developed by an agency certified or
    18  licensed by the office of alcoholism and substance  abuse  services.  If
    19  such  person  elects  to participate in recommended treatment, the court
    20  shall order that payment of such fine and community service be suspended
    21  pending the completion of such treatment.
    22    (d) Evaluation procedures.  For  purposes  of  this  subdivision,  the
    23  following shall apply:
    24    (i)  The  contents  of an evaluation pursuant to paragraph (c) of this
    25  subdivision shall be used for the sole purpose of [determining  if  such
    26  person suffers from the disease of alcoholism or alcohol abuse] diagnos-
    27  ing such person with alcohol or cannabis use disorder.
    28    (ii)  The  agency  designated  by the court to perform such evaluation
    29  shall conduct the evaluation and return the results to the court  within
    30  thirty  days,  subject to any state or federal confidentiality law, rule
    31  or regulation governing the confidentiality  of  alcohol  and  substance
    32  abuse treatment records.
    33    (iii) The office of alcoholism and substance abuse services shall make
    34  available  to  each  supreme  court law library in this state, or, if no
    35  supreme court law library is available in a certain county, to the coun-
    36  ty court law library of such county, a list  of  agencies  certified  to
    37  perform  evaluations  as required by subdivision (f) of section 19.07 of
    38  the mental hygiene law.
    39    (iv) All evaluations required under this subdivision shall be in writ-
    40  ing and the person so evaluated or his or her counsel  shall  receive  a
    41  copy of such evaluation prior to its use by the court.
    42    (v)  A minor evaluated under this subdivision shall have, and shall be
    43  informed by the court of, the right to obtain a second opinion regarding
    44  his or her need for alcoholism or substance use disorder treatment.
    45    4. A person violating the provisions of paragraph (b)  of  subdivision
    46  two  of this section shall be guilty of a violation punishable by a fine
    47  of not more than one hundred dollars, and/or an  appropriate  amount  of
    48  community service not to exceed thirty hours. In addition, the court may
    49  order  completion  of  an  alcohol or substance abuse training awareness
    50  program established pursuant to subdivision twelve of section  seventeen
    51  of  this chapter where such program is located within a reasonably close
    52  proximity to the locality in which the offender is employed or resides.
    53    5. No determination of guilt pursuant to this section shall operate as
    54  a disqualification of  any  such  person  subsequently  to  hold  public
    55  office,  public employment, or as a forfeiture of any right or privilege

        S. 3040--B                         17
     1  or to receive any license granted  by  public  authority;  and  no  such
     2  person shall be denominated a criminal by reason of such determination.
     3    6.  In  addition  to  the  penalties otherwise provided in subdivision
     4  three of this section, if a determination is made sustaining a charge of
     5  illegally purchasing or attempting to illegally  purchase  an  alcoholic
     6  beverage  or  marihuana  products,  the  court may suspend such person's
     7  license to drive a motor vehicle and  the  privilege  of  an  unlicensed
     8  person  of  obtaining such license, in accordance with the following and
     9  for the following periods, if it is found that a  driver's  license  was
    10  used  for  the  purpose of such illegal purchase or attempt to illegally
    11  purchase; provided, however, that where a person is  sentenced  pursuant
    12  to  paragraph (b) or (c) of subdivision three of this section, the court
    13  shall impose such license suspension if it  is  found  that  a  driver's
    14  license  was used for the purpose of such illegal purchase or attempt to
    15  illegally purchase:
    16    (a) For a first violation of paragraph (a) of subdivision two of  this
    17  section, a three month suspension.
    18    (b) For a second violation of paragraph (a) of subdivision two of this
    19  section, a six month suspension.
    20    (c)  For  a third or subsequent violation of paragraph (a) of subdivi-
    21  sion two of this section, a suspension for one year or until the  holder
    22  reaches the age of twenty-one, whichever is the greater period of time.
    23    Such  person  may  thereafter apply for and be issued a restricted use
    24  license in accordance with the provisions of section five hundred thirty
    25  of the vehicle and traffic law.
    26    7. (a) In any  proceeding  pursuant  to  subdivision  one  of  section
    27  sixty-five of this article, it shall be an affirmative defense that such
    28  person had produced a driver's license or non-driver identification card
    29  apparently  issued  by a governmental entity, successfully completed the
    30  transaction scan, and that the alcoholic beverage or marihuana  products
    31  had  been sold, delivered or given to such person in reasonable reliance
    32  upon such identification and transaction scan. In evaluating the  appli-
    33  cability  of  such  affirmative defense, the liquor authority shall take
    34  into consideration any written policy adopted  and  implemented  by  the
    35  seller to carry out the provisions of this chapter. Use of a transaction
    36  scan  shall  not  excuse  any  licensee  under this chapter, or agent or
    37  employee of such licensee, from the  exercise  of  reasonable  diligence
    38  otherwise   required   by   this   section.  Notwithstanding  the  above
    39  provisions, any such affirmative defense shall not be applicable in  any
    40  other civil or criminal proceeding, or in any other forum.
    41    (b)  A  licensee or agent or employee of a licensee may electronically
    42  or mechanically record and maintain only the information from  a  trans-
    43  action  scan  necessary to effectuate the purposes of this section. Such
    44  information shall be limited to the following: (i) name,  (ii)  date  of
    45  birth,  (iii)  driver's license or non-driver identification number, and
    46  (iv) expiration date. The liquor authority and the state commissioner of
    47  motor vehicles shall jointly  promulgate  any  regulation  necessary  to
    48  govern  the  recording  and  maintenance  of these records by a licensee
    49  under this chapter. The liquor authority and the commissioner of  health
    50  shall  jointly  promulgate  any  regulations necessary to ensure quality
    51  control in the use of transaction scan devices.
    52    8. A licensee or agent or employee of such licensee shall only use the
    53  information recorded and maintained through the use of such devices  for
    54  the  purposes  contained  in  paragraph (a) of subdivision seven of this
    55  section, and shall only use such devices for the purposes  contained  in
    56  subdivision  two  of this section. No licensee or agent or employee of a

        S. 3040--B                         18
     1  licensee shall resell or disseminate  the  information  recorded  during
     2  such  scan  to any third person. Such prohibited resale or dissemination
     3  includes, but is not limited to, any advertising,  marketing  or  promo-
     4  tional  activities.  Notwithstanding  the  restrictions  imposed by this
     5  subdivision, such records may be released pursuant to  a  court  ordered
     6  subpoena  or  pursuant to any other statute that specifically authorizes
     7  the release of such information.  Each  violation  of  this  subdivision
     8  shall  be  punishable  by  a civil penalty of not more than one thousand
     9  dollars.
    10    § 24. Section 65-c of the alcoholic beverage control law, as added  by
    11  chapter  592  of  the  laws  of  1989, paragraph (a) of subdivision 2 as
    12  amended by chapter 409 of the laws of 2016 and subdivision 3 as  amended
    13  by chapter 137 of the laws of 2001, is amended to read as follows:
    14    § 65-c. Unlawful  possession  of  an  alcoholic  beverage or marihuana
    15  product with the intent to consume by persons under the age  of  twenty-
    16  one years. 1. Except as hereinafter provided, no person under the age of
    17  twenty-one years shall possess any alcoholic beverage or marihuana prod-
    18  uct,  as defined in this chapter, with the intent to consume such bever-
    19  age or marihuana product.
    20    2. A person under the age of twenty-one years may possess any alcohol-
    21  ic beverage or marihuana product with intent to consume if the alcoholic
    22  beverage or marihuana product is given:
    23    (a) to a person who is a student in a curriculum  licensed  or  regis-
    24  tered  by  the state education department and the student is required to
    25  taste or imbibe alcoholic beverages or marihuana products  in  on-campus
    26  or  off-campus  courses  which  are  a  part of the required curriculum,
    27  provided such alcoholic beverages or marihuana products  are  used  only
    28  for  instructional  purposes  during  class  conducted  pursuant to such
    29  curriculum; or
    30    (b) to the person under twenty-one  years  of  age  by  that  person's
    31  parent or guardian.
    32    3.  Any person who unlawfully possesses an alcoholic beverage or mari-
    33  huana product with intent to consume may be summoned before and examined
    34  by a court having jurisdiction of that charge; provided,  however,  that
    35  nothing  contained herein shall authorize, or be construed to authorize,
    36  a peace officer as defined in subdivision thirty-three of  section  1.20
    37  of the criminal procedure law or a police officer as defined in subdivi-
    38  sion  thirty-four  of  section  1.20  of such law to arrest a person who
    39  unlawfully possesses an alcoholic beverage  or  marihuana  product  with
    40  intent to consume. If a determination is made sustaining such charge the
    41  court may impose a fine not exceeding fifty dollars and/or completion of
    42  an  alcohol  or  drug  awareness program established pursuant to section
    43  19.25 of the mental hygiene law and/or an appropriate amount of communi-
    44  ty service not to exceed thirty hours.
    45    4. No such determination shall operate as a  disqualification  of  any
    46  such person subsequently to hold public office, public employment, or as
    47  a forfeiture of any right or privilege or to receive any license granted
    48  by  public authority; and no such person shall be denominated a criminal
    49  by reason of such determination, nor shall such determination be  deemed
    50  a conviction.
    51    5.  Whenever a peace officer as defined in subdivision thirty-three of
    52  section 1.20 of the criminal procedure law or police officer as  defined
    53  in subdivision thirty-four of section 1.20 of the criminal procedure law
    54  shall  observe  a  person  under  twenty-one  years  of  age  openly  in
    55  possession of an alcoholic beverage or marihuana product as  defined  in
    56  this  chapter,  with  the  intent to consume such beverage or product in

        S. 3040--B                         19
     1  violation of this section, said officer may seize the beverage or  prod-
     2  uct, and shall deliver it to the custody of his or her department.
     3    6.  Any alcoholic beverage or marihuana product seized in violation of
     4  this section is hereby declared a nuisance. The  official  to  whom  the
     5  beverage or product has been delivered shall, no earlier than three days
     6  following the return date for initial appearance on the summons, dispose
     7  of  or  destroy  the  alcoholic  beverage or marihuana product seized or
     8  cause it to be disposed of or destroyed.  Any person claiming  ownership
     9  of  an alcoholic beverage or marihuana product seized under this section
    10  may, on the initial return date of the summons or earlier on  five  days
    11  notice  to  the  official or department in possession of the beverage or
    12  product, apply to the court for an order preventing the  destruction  or
    13  disposal  of  the  alcoholic  beverage  or  marihuana product seized and
    14  ordering the return of that beverage or product.   The court  may  order
    15  the  beverage or product returned if it is determined that return of the
    16  beverage or product would be in the interest  of  justice  or  that  the
    17  beverage or product was improperly seized.
    18    §  25.  The  alcoholic beverage control law is amended by adding a new
    19  section 65-e to read as follows:
    20    § 65-e. Restrictions on personal consumption of marihuana. 1.  Nothing
    21  in sections 221.05 and 221.05-a of the penal law shall be  construed  to
    22  permit any person to:
    23    (a) smoke marihuana in public;
    24    (b)  smoke  marihuana  products in a location where smoking tobacco is
    25  prohibited pursuant to section thirteen  hundred  ninety-nine-o  of  the
    26  public health law;
    27    (c) possess, smoke or ingest marihuana products in or upon the grounds
    28  of  any  school  property  used for school purposes which is owned by or
    29  leased to any elementary or secondary school or school board while chil-
    30  dren are present; or
    31    (d) smoke or ingest marihuana  products  while  driving,  operating  a
    32  motor  vehicle, boat, vessel, aircraft, or other vehicle used for trans-
    33  portation.
    34    2. For purposes of this section:
    35    (a) "Smoke" means to inhale, exhale, burn, or  carry  any  lighted  or
    36  heated  device  or  pipe,  or  any  other lighted or heated marihuana or
    37  concentrated cannabis product intended for inhalation,  whether  natural
    38  or synthetic, in any manner or in any form.
    39    (b)  "Smoke"  does not include the use of an electronic smoking device
    40  that creates an aerosol or vapor, unless local or state statutes  extend
    41  prohibitions on smoking to electronic smoking devices.
    42    3.  Violations of the restrictions under this section are subject to a
    43  fine not exceeding twenty-five  dollars  or  an  appropriate  amount  of
    44  community service not to exceed twenty hours.
    45    § 26. Section 140 of the alcoholic beverage control law, as amended by
    46  chapter 810 of the laws of 1981, is amended to read as follows:
    47    § 140. Applicability  of chapter before local option.  Until such time
    48  as it shall become unlawful to sell  alcoholic  beverages  or  marihuana
    49  products  in  any town or city by the vote of the voters in such town or
    50  city in the manner provided in this article, all of  the  provisions  of
    51  this chapter shall apply throughout the entire state. This article shall
    52  not  apply  to the Whiteface mountain ski center, owned by the state and
    53  located in the town of Wilmington, county of Essex.
    54    § 27. Section 141 of the alcoholic beverage control law, as amended by
    55  chapter 319 of the laws of 2007, is amended to read as follows:

        S. 3040--B                         20
     1    § 141. Local option for towns. 1. Not less than sixty  days  nor  more
     2  than  seventy-five days before the general election in any town at which
     3  the submission of the questions hereinafter stated is authorized by this
     4  article, a petition signed by electors of the town to a number amounting
     5  to  twenty-five per centum of the votes cast in the town for governor at
     6  the then last preceding  gubernatorial  election,  acknowledged  by  the
     7  signers or authenticated by witnesses as provided in the election law in
     8  respect  of  a  nominating  petition,  requesting the submission at such
     9  election to the electors of the town of one or  more  of  the  following
    10  questions, may be filed with the town clerk:
    11    Question  1.  Tavern  alcoholic  beverage  license.  Shall a person be
    12  allowed to obtain a license to operate a tavern with  a  limited-service
    13  menu (sandwiches, salads, soups, etc.) which permits the tavern operator
    14  to  sell  alcoholic beverages for a customer to drink while the customer
    15  is within the tavern. In addition, unopened containers of beer (such  as
    16  six-packs  and  kegs)  may  be sold "to go" for the customer to open and
    17  drink at another location (such as, for example, at his home)?
    18    Question 2. Restaurant alcoholic beverage license. Shall the  operator
    19  of  a  full-service  restaurant  be  allowed  to  obtain a license which
    20  permits the restaurant  operator  to  sell  alcoholic  beverages  for  a
    21  customer  to drink while the customer is within the restaurant. In addi-
    22  tion, unopened containers of beer (such as six-packs and  kegs)  may  be
    23  sold  "to  go"  for  the  customer to open and drink at another location
    24  (such as, for example, at his home)?
    25    Question 3. Year-round hotel alcoholic  beverage  license.  Shall  the
    26  operator of a year-round hotel with a full-service restaurant be allowed
    27  to obtain a license which permits the year-round hotel to sell alcoholic
    28  beverages  for  a  customer  to  drink  while the customer is within the
    29  hotel. In addition, unopened containers of beer (such as  six-packs  and
    30  kegs)  may be sold "to go" for the customer to open and drink at another
    31  location (such as, for example, at his home)?
    32    Question 4. Summer hotel alcoholic beverage license. Shall the  opera-
    33  tor  of a summer hotel with a full-service restaurant, open for business
    34  only within the period from May first to October  thirty-first  in  each
    35  year,  be  allowed to obtain a license which permits the summer hotel to
    36  sell alcoholic beverages for a customer to drink while the  customer  is
    37  within  the  hotel.  In  addition,  unopened containers of beer (such as
    38  six-packs and kegs) may be sold "to go" for the  customer  to  open  and
    39  drink at another location (such as, for example, at his home)?
    40    Question  5.  Retail  package  liquor  or  wine store license. Shall a
    41  person be allowed to obtain  a  license  to  operate  a  retail  package
    42  liquor-and-wine  or  wine-without-liquor store, to sell "to go" unopened
    43  bottles of liquor or wine to a customer to be taken from the  store  for
    44  the  customer  to open and drink at another location (such as, for exam-
    45  ple, at his home)?
    46    Question 6. Off-premises beer and wine cooler license. Shall the oper-
    47  ator of a grocery store, drugstore  or  supply  ship  operating  in  the
    48  harbors  of  Lake  Erie be allowed to obtain a license which permits the
    49  operator to sell "to go" unopened containers of beer (such as  six-packs
    50  and  kegs)  and wine coolers with not more than 6% alcohol to a customer
    51  to be taken from the store for the customer to open and drink at another
    52  location (such as, for example, at his home)?
    53    Question 7.  Baseball  park,  racetrack,  athletic  field  or  stadium
    54  license.    Shall  a person be allowed to obtain a license which permits
    55  the sale of beer for a patron's consumption while the patron is within a

        S. 3040--B                         21
     1  baseball park, racetrack, or  other  athletic  field  or  stadium  where
     2  admission fees are charged?
     3    Question  8.  Marihuana retailer license. Shall a person be allowed to
     4  obtain a license to operate a retail marihuana store, to  sell  unopened
     5  marihuana  products  to  a  customer  to be taken from the store for the
     6  customer to open and consumer at another location (such as, for example,
     7  at his home)?
     8    Question 9. On-premises marihuana retailer licenses. Shall a person be
     9  allowed to obtain a license to operate a facility where the  service  of
    10  food  is only incidental and permits the facility operator to sell mari-
    11  huana products for a customer to consumer while the customer  is  within
    12  the facility?
    13    2.  Upon  the due filing of such petition complying with the foregoing
    14  provisions, such questions shall be submitted in accordance therewith.
    15    3. The town clerk shall, within five days  from  the  filing  of  such
    16  petition  in  his office, prepare and file in the office of the board of
    17  elections, as defined by the election law, of the  county,  a  certified
    18  copy  of such petition. Such questions may be submitted only at the time
    19  of a general election. At least ten days before such  general  election,
    20  the  board of elections shall cause to be printed and posted in at least
    21  four public places in such town, a notice of the fact that  all  of  the
    22  local  option  questions  will be voted on at such general election; and
    23  the said notice shall also be published at least five  days  before  the
    24  vote is to be taken once in a newspaper published in the county in which
    25  such town is situated, which shall be a newspaper published in the town,
    26  if  there  be one. Whenever such questions are to be submitted under the
    27  provisions of this article the board of elections shall cause the proper
    28  ballot labels to be printed and placed on all voting  machines  used  in
    29  the  town  in  which  such  questions  are  to be submitted, in the form
    30  prescribed by the election law in respect of other propositions or ques-
    31  tions, upon the face of which shall be printed in full  the  said  ques-
    32  tions.  Any  elector qualified to vote for state officers shall be enti-
    33  tled to vote upon such local option questions. As soon as  the  election
    34  shall  be  held, a return of the votes cast and counted shall be made as
    35  provided by law and the returns canvassed by the inspectors of election.
    36  If a majority of the votes cast shall be in the negative on all  or  any
    37  of  the  questions, no person shall, after such election, sell alcoholic
    38  beverages or marihuana products in such town contrary to such vote or to
    39  the provisions of this chapter; provided, however, that  the  result  of
    40  such vote shall not shorten the term for which any license may have been
    41  lawfully  issued under this chapter or affect the rights of the licensee
    42  thereunder; and no person shall after such vote apply for or  receive  a
    43  license  to  sell alcoholic beverages or marihuana products at retail in
    44  such town contrary to such vote, until,  by  referendum  as  hereinafter
    45  provided for, such sale shall again become lawful.
    46    §  28.  Subdivision 3 of section 142 of the alcoholic beverage control
    47  law is amended to read as follows:
    48    3. If a majority of the votes cast shall be in the negative on any  or
    49  all  of  the questions, no person shall, after such election, sell alco-
    50  holic beverages or marihuana products in such city contrary to such vote
    51  or to the provisions of this chapter; provided, however, that the result
    52  of such vote shall not shorten the term for which any license  may  have
    53  been  lawfully  issued  under  this  chapter or affect the rights of the
    54  licensee thereunder; and no person shall after such vote  apply  for  or
    55  receive  a  license to sell alcoholic beverages or marihuana products at

        S. 3040--B                         22
     1  retail in such city contrary to such vote, until, by referendum as here-
     2  inafter provided for, such sale shall again become lawful.
     3    §  29.  Subdivision 2 of section 147 of the alcoholic beverage control
     4  law is amended to read as follows:
     5    2. If at the time of any subsequent submission of  such  questions  it
     6  shall  be lawful to sell alcoholic beverages or marihuana products and a
     7  majority of the votes cast shall be in the negative on  such  questions,
     8  then  all  of  the  provisions  of this article applicable thereto shall
     9  become effective.
    10    § 30. Article 11 and sections 160, 161, 162, 163 and 164 of the  alco-
    11  holic  beverage  control  law, article 11 and sections 160, 161, 162 and
    12  163 as renumbered by chapter 725 of the laws  of  1954,  are  renumbered
    13  article 12 and sections 200, 201, 202, 203, and 204.
    14    §  31.  The  alcoholic beverage control law is amended by adding a new
    15  article 11 to read as follows:
    16                                  ARTICLE 11
    17                      PROVISIONS RELATING TO MARIHUANA
    18  Section 165. Definitions.
    19          166. Bureau of marihuana policy.
    20          167. Administration of the bureau of marihuana policy.
    21          168. Licenses issued.
    22          169. Licensing limits.
    23          170. Actions taken pursuant to a valid license are lawful.
    24          171. General prohibitions and restrictions.
    25          172. Certain officials not to be interested in  the  manufacture
    26                 or sale of marihuana.
    27          173. Provisions governing initial rulemaking.
    28          174. Provisions governing marihuana producers.
    29          175. Provisions governing processors.
    30          176. Provisions governing marihuana retailers.
    31          177. Provisions    governing   marihuana   on-site   consumption
    32                 licenses.
    33          178. Advertising and forms of the issuance of licenses.
    34          179. Packaging of marihuana products.
    35          180. Labeling of marihuana products.
    36          181. Seed to sale tracking.
    37          182. Renewals of licenses and permits.
    38          183. Information to be provided by applicants.
    39          184. Notification to municipalities.
    40          185. Licenses, publication, general provisions.
    41          186. Revocation of licenses for cause.
    42          187. Procedure for revocation or cancellation.
    43          188. Decisions of the bureau of marihuana policy and  review  by
    44                 the courts.
    45          189. Minority and women business enterprises.
    46          190. Disposition of moneys received for license fees.
    47          191. Persons forbidden to traffic in marihuana.
    48          192. Surrender of license; notice to police officials.
    49          193. Authority to promulgate rules and regulations.
    50          194. Protections for the use of marihuana.
    51          195. Discrimination  protections  for  the  use  of marihuana or
    52                 medical marihuana.
    53          196. Employment protections.
    54          197. Protections for persons under state supervision.
    55          198. Professional and medical record keeping.

        S. 3040--B                         23
     1    § 165. Definitions. Whenever used in this chapter, unless the  context
     2  requires otherwise:
     3    1.  "Applicant" means an owner applying for a license pursuant to this
     4  article.
     5    2."Bureau" means the bureau of marihuana policy within the authority.
     6    3. "Commercial marihuana activity" means the  production,  processing,
     7  possession,  storing, laboratory testing, packaging, labeling, transpor-
     8  tation, delivery,  or  sale  of  marihuana  and  marihuana  products  as
     9  provided for in this article.
    10    4. "Customer" means a natural person twenty-one years of age or older.
    11    5.  "Delivery"  means  a  licensee  that delivers retail marihuana and
    12  marihuana products to customers. Retailer  licensees  and  microbusiness
    13  licensees  are  permitted  to  deliver  retail  marihuana  and marihuana
    14  products  to  customers  without  obtaining  an  additional  distributor
    15  license.
    16    6.  "Distribution" means the procurement, sale, and transport of mari-
    17  huana and marihuana products between entities licensed pursuant to  this
    18  article.
    19    7.  "Distributor"  means  a licensee for the distribution of marihuana
    20  and marihuana products between entities licensed pursuant to this  arti-
    21  cle.   Producer licensees, processor licensees, and microbusiness licen-
    22  sees are  permitted  to  distribute  marihuana  and  marihuana  products
    23  between  entities licensed pursuant to this article without obtaining an
    24  additional distributor license.
    25    8. "Labeling" means any label or other written,  printed,  or  graphic
    26  matter  upon  a  marihuana product, or upon its container or wrapper, or
    27  that accompanies any marihuana product.
    28    9. "License" means a state license issued  under  this  article.  Each
    29  license issued pursuant to this article corresponds to a single place of
    30  business.
    31    10. "Licensee" means any person or entity holding a license under this
    32  article.
    33    11.  "Marihuana"  means  all parts of the plant of the genus cannabis,
    34  whether growing or not; the seeds thereof; the resin extracted from  any
    35  part  of  the  plant; and every compound, manufacture, salt, derivative,
    36  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    37  include  the mature stalks of the plant, fiber produced from the stalks,
    38  oil or cake made from the seeds of the plant, any other compound,  manu-
    39  facture,  salt, derivative, mixture, or preparation of the mature stalks
    40  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    41  sterilized  seed of the plant which is incapable of germination. It does
    42  not include all parts of the plant Cannabis Sativa I.,  whether  growing
    43  or not, having no more than three-tenths of one percent tetrahydrocanna-
    44  binol (THC).
    45    12.  "Marihuana  products" means marihuana, concentrated cannabis, and
    46  marihuana-infused products.
    47    13. "Marihuana-infused products" means products that contain  marihua-
    48  na,  marihuana  extracts,  or concentrated cannabis and are intended for
    49  human use or consumption, such as, but not limited to, edible  products,
    50  ointments, and tinctures.
    51    14.  "Microbusiness"  means  a  licensee  that  may act as a marihuana
    52  producer for the cultivation of marihuana on an area less than ten thou-
    53  sand square feet, a marihuana processor, and a marihuana retailer  under
    54  this  article,  provided  such  licensee  complies with all requirements
    55  imposed by this article on licensed producers, processors, and retailers
    56  to the extent the licensee engages in such activities. A "microbusiness"

        S. 3040--B                         24
     1  may distribute marihuana and marihuana products to other licensed  mari-
     2  huana  businesses  and  may  deliver marihuana and marihuana products to
     3  customers.
     4    15.  "Nursery"  means  a  licensee that produces only clones, immature
     5  plants, seeds, and other agricultural products used specifically for the
     6  planting, propagation, and cultivation of marihuana.
     7    16. "Onsite consumption" means a marihuana retail licensee or a  mari-
     8  huana  microbusiness that permits the consumption of marihuana and mari-
     9  huana products at the licensee's place of business.
    10    17. "Owner" means an individual with an aggregate  ownership  interest
    11  of  twenty  percent or more in a marihuana business licensed pursuant to
    12  this article, unless such interest is solely a security, lien, or encum-
    13  brance, or an individual that will be participating  in  the  direction,
    14  control, or management of the licensed marihuana business.
    15    18. "Package" means any container or receptacle used for holding mari-
    16  huana or marihuana products.
    17    19.  "Processor"  means  a  licensee that compounds, blends, extracts,
    18  infuses, or otherwise makes or prepares marihuana products, but not  the
    19  production  of  the  marihuana  contained  in  the  marihuana product. A
    20  "processor" may also distribute  marihuana  and  marihuana  products  to
    21  other licensed marihuana businesses.
    22    20.  "Producer"  means a licensee that plants, grows, harvests, dries,
    23  cures, grades, or trims marihuana.  A  "producer"  may  also  distribute
    24  marihuana to other licensed marihuana businesses.
    25    21.  "Retailer"  means  a  licensee  that sells marihuana or marihuana
    26  products directly to customers. A "retailer" may deliver  marihuana  and
    27  marihuana products to customers.
    28    22. "Testing facility" means a licensee that tests marihuana and mari-
    29  huana products.
    30    §  166. Bureau of marihuana policy. There is hereby established in the
    31  authority a bureau of marihuana policy.  The  bureau  shall  consist  of
    32  three  members.  The  members  of  the  bureau shall be appointed by the
    33  governor by and with the advice and consent of the senate. Not more than
    34  two members of the bureau shall belong to the same political party.  The
    35  chairman  of  the  bureau  of  marihuana policy heretofore appointed and
    36  designated by the governor and the remaining members of such board here-
    37  tofore appointed by the governor shall continue to serve as chairman and
    38  members of the bureau until the expiration of the respective  terms  for
    39  which  they were appointed. Upon the expiration of such respective terms
    40  the successors of such chairman and members shall be appointed to  serve
    41  for  a  term  of  three  years each and until their successors have been
    42  appointed and qualified. The commissioners shall,  when  performing  the
    43  work  of  the  bureau,  be  compensated  at  a rate of two hundred sixty
    44  dollars per day, together with an allowance  for  actual  and  necessary
    45  expenses incurred in the discharge of their duties.
    46    §  167.  Administration  of  the  bureau of marihuana policy.   1. The
    47  bureau established in section one  hundred  sixty-six  of  this  article
    48  shall  heretofore  have  the  power,  duty, purpose, responsibility, and
    49  jurisdiction to regulate commercial marihuana activity  as  provided  in
    50  the Marihuana Regulation and Taxation Act.
    51    2.  The  bureau  shall  have the exclusive authority to create, issue,
    52  renew, discipline, suspend, or revoke licenses for commercial  marihuana
    53  activities  in  accordance  with the state administrative procedure act,
    54  codified at N.Y. A.P.A. Law § 100 et seq.

        S. 3040--B                         25
     1    (a) The bureau shall consult with the department  of  agriculture  and
     2  markets  regarding  rules, regulations, and licenses for the cultivation
     3  of marihuana.
     4    (b)  The  bureau  shall begin issuing licenses not later than eighteen
     5  months following the effective date  of  the  Marihuana  Regulation  and
     6  Taxation Act.
     7    (i) The bureau shall begin accepting applications no more than fifteen
     8  months following the effective date of this act.
     9    (ii)  Pursuant to section one hundred eighty-four of this article, the
    10  bureau shall notify municipalities of any applications for license.
    11    (iii) The bureau shall  issue  an  annual  license  to  the  applicant
    12  between  forty-five  and  ninety  days  after  receipt of an application
    13  unless the bureau finds the applicant is not in  compliance  with  regu-
    14  lations  enacted  pursuant  to section one hundred seventy-three of this
    15  article or the department is notified by the relevant municipality  that
    16  the applicant is not in compliance with such regulations.
    17    (c)  The bureau shall have the authority to collect fees in connection
    18  with activities they regulate concerning marihuana pursuant  to  section
    19  one hundred ninety of this article.
    20    3. (a) Not later than ten months following the enactment of this arti-
    21  cle,  each  municipality may enact an ordinance or regulation specifying
    22  the entity within the municipality that is  responsible  for  processing
    23  applications  submitted  for a license to operate a marihuana establish-
    24  ment within the boundaries of the municipality and for the  issuance  of
    25  such  licenses  should the issuance by the municipality become necessary
    26  because of a failure by the bureau  to  adopt  regulations  pursuant  to
    27  section  one hundred seventy-three of this article or because of a fail-
    28  ure by the bureau to process and  issue  licenses  as  required  by  the
    29  subdivision two of this section.
    30    (b)  A  municipality  may  enact  ordinances  or  regulations,  not in
    31  conflict with this section or with regulations  or  legislation  enacted
    32  pursuant  to  this section, governing the time, place, manner and number
    33  of marihuana establishment operations; establishing procedures  for  the
    34  issuance,  suspension, and revocation of a license issued by the munici-
    35  pality in accordance with paragraphs (c) and (d)  of  this  subdivision,
    36  such  procedures  to be subject to all requirements of state administra-
    37  tive procedure act, codified as N.Y. A.P.A. Law § 100, et seq.   or  any
    38  successor  provision,  establishing  a  schedule  of  annual  operating,
    39  licensing, and application fees for marihuana establishments,  provided,
    40  the  application fee shall only be due if an application is submitted to
    41  a municipality in accordance with paragraph (d) of this subdivision  and
    42  a  licensing  fee  shall only be due if a license is issued by a munici-
    43  pality in accordance with paragraph (c) or (d) of this subdivision;  and
    44  establishing civil penalties for violation of an ordinance or regulation
    45  governing  the time, place, and manner of a marihuana establishment that
    46  may operate in such a municipality.  A  municipality  may  prohibit  the
    47  operation  of  marihuana  production  facilities,  marihuana  processing
    48  facilities, marihuana retail stores, marihuana microbusinesses, or mari-
    49  huana testing facilities through the enactment of an ordinance.
    50    (c) If the bureau does not issue a  license  to  an  applicant  within
    51  ninety  days  of  receipt  of  the  application filed in accordance with
    52  subdivision two and does not notify the applicant of the specific reason
    53  for its denial, in writing and within such time period, or if the bureau
    54  has adopted regulations pursuant to section one hundred seventy-three of
    55  this article but has not issued any licenses within eighteen  months  of
    56  the  effective  date of this article, for any locality enacting an ordi-

        S. 3040--B                         26
     1  nance providing for local processing of applications, the applicant  may
     2  resubmit  its application directly to the municipality pursuant to para-
     3  graph (a) of this subdivision, and the municipality may issue an  annual
     4  license  to the applicant. A municipality issuing a license to an appli-
     5  cant shall do so within ninety days of receipt of the resubmitted appli-
     6  cation unless the municipality finds and notifies the applicant that the
     7  applicant is not in compliance with the ordinances and regulations  made
     8  pursuant  to paragraph (b) of this subdivision in effect at the time the
     9  application is resubmitted and the municipality shall notify the  bureau
    10  if an annual license has been issued to the applicant. If an application
    11  is  submitted  to  a municipality under this paragraph, the bureau shall
    12  forward to the municipality the application fee paid by the applicant to
    13  the bureau upon request by the municipality. A license issued by a muni-
    14  cipality in accordance with this paragraph shall have the same force and
    15  effect as a license issued by the bureau in accordance with  subdivision
    16  two  of this section and the holder of such license shall not be subject
    17  to regulation or enforcement by the  bureau  during  the  term  of  that
    18  license.  A subsequent or renewed license may be issued under this para-
    19  graph on an annual basis only upon resubmission to the municipality of a
    20  new application submitted to the bureau pursuant to subdivision  two  of
    21  this  section.  Nothing in this paragraph shall limit such relief as may
    22  be available to an aggrieved party under section four hundred one of the
    23  state administrative procedure act or any successor provision.
    24    (d) If the bureau does not adopt regulations required by  section  one
    25  hundred seventy-three of this article, an applicant may submit an appli-
    26  cation directly to a municipality fifteen months following the effective
    27  date of this article and the municipality may issue an annual license to
    28  the applicant. A municipality issuing a license to an applicant shall do
    29  so  within ninety days of receipt of the application unless it finds and
    30  notifies the applicant that the applicant  is  not  in  compliance  with
    31  ordinances and regulations made pursuant to paragraph (b) of this subdi-
    32  vision  in effect at the time of application and shall notify the bureau
    33  if an annual license has been issued to the applicant. A license  issued
    34  by  a municipality in accordance with this paragraph shall have the same
    35  force and effect as a license issued by the bureau  in  accordance  with
    36  subdivision two of this section and the licensee shall not be subject to
    37  regulation or enforcement by the bureau during the term of that license.
    38  A subsequent or renewed license may be issued under this paragraph on an
    39  annual  basis  if  the  bureau  has  not adopted regulations required by
    40  section one hundred seventy-three of this article at least  ninety  days
    41  prior to the date upon which such subsequent or renewed license would be
    42  effective  or  if  the  department  has  adopted regulations pursuant to
    43  section one hundred seventy-three of this article but has not, at  least
    44  ninety  days  after  the  adoption  of such regulations, issued licenses
    45  pursuant to subdivision two of this section.
    46    4. The bureau may limit the total amount of marihuana produced in  New
    47  York  based on the demand for marihuana and marihuana products and in an
    48  effort to reduce illicit marihuana markets.
    49    § 168.   Licenses issued. The following kinds  of  licenses  shall  be
    50  issued  by the bureau for the manufacture, production, processing, test-
    51  ing, retail sale and delivery of marihuana:
    52    1. marihuana nursery license;
    53    2. marihuana producer license;
    54    3. marihuana processor license;
    55    4. marihuana distributor license;
    56    5. marihuana retailer license;

        S. 3040--B                         27
     1    6. marihuana microbusiness license;
     2    7. marihuana on-site consumption license;
     3    8. marihuana delivery license;
     4    9. marihuana testing license; and
     5    10. any other type of licenses allowed by the bureau.
     6    §  169.  Licensing  limits.  1. All licenses issued under this article
     7  shall bear a clear  designation  indicating  that  the  license  is  for
     8  commercial  marihuana  activity as distinct from medical marihuana manu-
     9  factured, produced and sold for medical use pursuant to title five-A  of
    10  article thirty-three of the public health law.
    11    2.  An  owner  of a marihuana retail store shall not hold a license in
    12  another license category of section  one  hundred  sixty-eight  of  this
    13  article,  shall not own or have ownership interest in an entity licensed
    14  pursuant to title five-A of article thirty-three of  the  public  health
    15  law, and shall hold not more than three retail licenses.
    16    3.  An  owner of a marihuana microbusiness shall not hold a license in
    17  another license category of section  one  hundred  sixty-eight  of  this
    18  article, shall not own or have ownership interest in a facility licensed
    19  pursuant  to  title  five-A of article thirty-three of the public health
    20  law, and shall hold not more than one microbusiness license.
    21    4. An owner of a marihuana testing facility shall not hold  a  license
    22  in  another  license category of section one hundred sixty-eight of this
    23  article and shall not own or  have  ownership  interest  in  a  facility
    24  licensed  pursuant to title five-A of article thirty-three of the public
    25  health law.
    26    5. Only a marihuana  retail  licensee  or  a  marihuana  microbusiness
    27  licensee may be issued an on-site consumption license.
    28    6. Only a marihuana retail licensee, marihuana microbusiness licensee,
    29  or  marihuana  delivery  licensee  may be permitted to deliver marihuana
    30  directly to customers.
    31    7. Only a marihuana producer licensee, marihuana  processor  licensee,
    32  or marihuana distributor licensee may distribute marihuana and marihuana
    33  products to other licensed marihuana businesses.
    34    8. No marihuana delivery owner may hold more than one marihuana deliv-
    35  ery license.
    36    9.  No  marihuana  distributor  owner may hold more than one marihuana
    37  distributor license.
    38    10. The bureau shall issue a series of producer licenses distinguished
    39  by canopy size and type of lighting used, natural/outdoor light,  indoor
    40  light, or mixed-light.
    41    11.  No  marihuana  producer  owner  may  hold more than one marihuana
    42  producer and one marihuana processor license.
    43    12. No marihuana processor owner may hold more  than  three  marihuana
    44  processor licenses.
    45    §  170.  Actions  taken  pursuant  to  a  valid license are lawful. No
    46  contracts related to the operation of licenses under this chapter  shall
    47  be deemed unenforceable on the basis that the actions permitted pursuant
    48  to  the license are prohibited by federal law. The following actions are
    49  not unlawful as provided under this chapter, shall  not  be  an  offense
    50  under  New  York  law  or  the laws of any locality within New York, and
    51  shall not result in any civil fine, seizure,  or  forfeiture  of  assets
    52  against any person acting in accordance with this chapter:
    53    1.  Actions of a licensee, its employees, and its agents, as permitted
    54  by this chapter and consistent with rules and regulations of the bureau,
    55  pursuant to a valid license issued by the bureau.

        S. 3040--B                         28
     1    2. Actions of those who allow property to be used by a  licensee,  its
     2  employees,  and  its agents, as permitted by this chapter and consistent
     3  with rules and regulations of the bureau, pursuant to  a  valid  license
     4  issued by the bureau.
     5    3.  Actions  of any person or entity, their employees, or their agents
     6  providing a service to a licensee or potential licensee, as permitted by
     7  this chapter and consistent with rules and regulations  of  the  bureau,
     8  relating to the formation of a business.
     9    4. The purchase, possession, or consumption of marihuana, as permitted
    10  by this chapter and consistent with rules and regulations of the bureau,
    11  obtained from a validly licensed retailer.
    12    § 171. General prohibitions and restrictions. 1. No marihuana products
    13  may be imported or exported into New York state by a licensee from or to
    14  a jurisdiction in which possession, transport, distribution of marihuana
    15  or  other  marihuana  related  conduct remains illegal under the laws of
    16  that jurisdiction.
    17    2. (a) No person holding any license pursuant to this article to  grow
    18  or  process marihuana may employ any person who has been convicted of an
    19  offense related to the functions, or duties of the business  or  profes-
    20  sion  for which the application is made within three years of the appli-
    21  cation date, except that if the bureau  determines  that  the  owner  or
    22  licensee  is otherwise suitable to be issued a license, and granting the
    23  license would not compromise public safety, the bureau shall  conduct  a
    24  thorough  review  of the nature of the crime, conviction, circumstances,
    25  and evidence of rehabilitation of the  owner,  and  shall  evaluate  the
    26  suitability of the owner or licensee to be issued a license based on the
    27  evidence  found  through  the  review. In determining which offenses are
    28  substantially related to the qualifications, functions, or duties of the
    29  business or profession for which the application  is  made,  the  bureau
    30  shall include, but not be limited to, the following:
    31    (i)  A  felony  conviction  involving fraud and other unlawful conduct
    32  related to owning and operating a business.
    33    (ii) A felony conviction for hiring, employing, or using  a  minor  in
    34  transporting,  carrying,  selling,  giving  away, preparing for sale, or
    35  peddling, any controlled substance to a minor; or selling,  offering  to
    36  sell,  furnishing,  offering  to  furnish,  administering, or giving any
    37  controlled substance to a minor.
    38    (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
    39  sion,  if the bureau issues its written approval for the employment by a
    40  licensee, in a specified capacity, of a person previously convicted of a
    41  felony or any of the offenses above enumerated in paragraph (a) of  this
    42  subdivision,  such  person,  may,  unless  he  or  she  is  subsequently
    43  convicted of a felony or any of such offenses, thereafter be employed in
    44  the same capacity by any other  licensee  without  the  further  written
    45  approval  of the bureau unless the prior approval given by the bureau is
    46  terminated.
    47    3. No license of any kind may be issued to a person under the  age  of
    48  twenty-one  years, nor shall any licensee employ anyone under the age of
    49  twenty-one years.
    50    § 172. Certain officials not to be interested in  the  manufacture  or
    51  sale  of  marihuana.  1.  Except  as  otherwise  provided in section one
    52  hundred twenty-eight-a of this chapter, it shall  be  unlawful  for  any
    53  police  commissioner,  police  inspector,  captain, sergeant, roundsman,
    54  patrolman or other police official or subordinate of any police  depart-
    55  ment in the state, to be either directly or indirectly interested in the
    56  manufacture  or  sale of marihuana or to offer for sale, or recommend to

        S. 3040--B                         29
     1  any licensee any marihuana. A person  may  not  be  denied  any  license
     2  granted  under the provisions of sections fifty-four, fifty-five, fifty-
     3  nine, sixty-three,  sixty-four,  seventy-nine,  eighty-one,  or  article
     4  seven  of  this  chapter  solely on the grounds of being the spouse of a
     5  public servant described in this subdivision. The solicitation or recom-
     6  mendation made to any licensee, to purchase any marihuana by any  police
     7  official  or  subordinate  as  described  in  this subdivision, shall be
     8  presumptive evidence of the interest of such official or subordinate  in
     9  the manufacture or sale of marihuana.
    10    2. No elective village officer shall be subject to the limitations set
    11  forth  in  subdivision  one of this section unless such elective village
    12  officer shall be assigned duties directly relating to the  operation  or
    13  management of the police department.
    14    §  173. Provisions governing initial rulemaking. 1. Within two hundred
    15  forty days after the effective date of this article,  the  bureau  shall
    16  perform such acts, prescribe such forms and make such rules, regulations
    17  and  orders  as  it may deem necessary or proper to fully effectuate the
    18  provisions of this article.
    19    2. The bureau shall promulgate necessary rules and regulations govern-
    20  ing the licensing of marihuana producers, marihuana processors, marihua-
    21  na retailers and marihuana retailers for consumption on-site, including:
    22    (a) prescribing forms and establishing application, reinstatement, and
    23  renewal fees;
    24    (b) the qualifications for licensure;
    25    (c) the books and records to be created and maintained  by  licensees,
    26  the  reports  to  be  made  thereon to the bureau, and inspection of the
    27  books and records;
    28    (d) methods of producing, processing, and packaging  marihuana,  mari-
    29  huana-infused products, and concentrated cannabis; conditions of sanita-
    30  tion,  and  standards of ingredients, quality, and identity of marihuana
    31  products produced, processed, packaged, or sold by licensees; and
    32    (e) security requirements for marihuana retailers and  premises  where
    33  marihuana  products  are produced or processed, and safety protocols for
    34  licensees and their employees.
    35    3. The bureau shall promulgate rules and regulations that  are  calcu-
    36  lated to:
    37    (a)  prevent the distribution of marihuana to persons under twenty-one
    38  years of age;
    39    (b) prevent the revenue from the sale of marihuana from going to crim-
    40  inal enterprises, gangs, and cartels;
    41    (c) prevent the diversion  of  marihuana  from  this  state  to  other
    42  states;
    43    (d)  prevent  marihuana  activity  that  is legal under state law from
    44  being used as a cover or pretext for the trafficking  of  other  illegal
    45  drugs or other illegal activity;
    46    (e)  prevent  violence  and the use of firearms in the cultivation and
    47  distribution of marihuana;
    48    (f) prevent drugged driving and  the  exacerbation  of  other  adverse
    49  public health consequences associated with the use of marihuana;
    50    (g) prevent the growing of marihuana on public lands and the attendant
    51  public safety and environmental dangers posed by marihuana production on
    52  public lands; and
    53    (h) prevent the possession and use of marihuana on federal property.
    54    4.  Rules and regulations promulgated by the bureau pursuant to subdi-
    55  vision three of this section shall not prohibit the operation  of  mari-

        S. 3040--B                         30
     1  huana  establishments  either expressly or through regulations that make
     2  their operation unreasonably impracticable.
     3    5.  The bureau, in consultation with the department of agriculture and
     4  markets and the department of environmental conservation, shall  promul-
     5  gate  necessary  rules  and regulations governing the safe production of
     6  marihuana, including restrictions on the use of pesticides, insecticides
     7  and herbicides.
     8    § 174. Provisions governing marihuana producers. 1. No producer  shall
     9  sell,  or  agree to sell or deliver in the state any marihuana products,
    10  as the case may be, except in sealed containers containing quantities in
    11  accordance with size standards pursuant to rules adopted by the  bureau.
    12  Such  containers  shall  have  affixed  thereto  such  labels  as may be
    13  required by the rules of the bureau, together  with  all  necessary  New
    14  York state excise tax stamps, as required by law.
    15    2.  No  producer shall deliver any marihuana products, except in vehi-
    16  cles owned and operated by such producer, or hired and operated by  such
    17  producer  from  a trucking or transportation company registered with the
    18  bureau, and shall only make deliveries at the licensed premises  of  the
    19  purchaser.
    20    3.  Each  producer shall keep and maintain upon the licensed premises,
    21  adequate books and records of all transactions  involving  the  producer
    22  and  sale  of  his  or its products, which shall include all information
    23  required by rules promulgated by the bureau. Each sale shall be recorded
    24  separately on a numbered invoice, which shall have printed  thereon  the
    25  number,  the name of the licensee, the address of the licensed premises,
    26  and the current license number.  Such  producer  shall  deliver  to  the
    27  purchaser  a  true duplicate invoice stating the name and address of the
    28  purchaser, the quantity purchased, description  and  the  price  of  the
    29  product,  and  a  true, accurate and complete statement of the terms and
    30  conditions on which such sale is made. Such books, records and  invoices
    31  shall  be  kept  for  a  period  of two years and shall be available for
    32  inspection by any authorized representative of the bureau.
    33    4. No producer shall furnish or cause to be furnished to any licensee,
    34  any exterior or interior sign, printed, painted, electric or  otherwise,
    35  except as authorized by the bureau. The bureau may make such rules as it
    36  deems necessary to carry out the purpose and intent of this subdivision.
    37    §  175.  Provisions  governing  processors.  1.  No processor shall be
    38  engaged in any other business on the premises  to  be  licensed;  except
    39  that nothing contained in this chapter shall prevent a marihuana produc-
    40  er  and  a  marihuana  processor from operating on the same premises and
    41  from a person holding both licenses.
    42    2. No processor shall sell, or agree to sell or deliver in  the  state
    43  any marihuana products, except in a sealed package containing quantities
    44  in  accordance  with  size  standards  pursuant  to rules adopted by the
    45  bureau. Such containers shall have affixed thereto such labels as may be
    46  required by the rules of the bureau, together  with  all  necessary  New
    47  York state excise tax stamps, as required by law.
    48    3.  No  processor shall deliver any products, except in vehicles owned
    49  and operated by such processor, or hired and operated by such  processor
    50  from  a  trucking  or transportation company registered with the bureau,
    51  and shall only make deliveries at the licensed premises of the  purchas-
    52  er.
    53    4.  Each processor shall keep and maintain upon the licensed premises,
    54  adequate books and records of all transactions  involving  the  business
    55  transacted  by  such processor, which shall show the amount of marihuana
    56  products, purchased by such processor together with the  names,  license

        S. 3040--B                         31
     1  numbers  and  places  of  business of the persons from whom the same was
     2  purchased and the amount involved in such  purchases,  as  well  as  the
     3  amount  of  marihuana  products sold by such processor together with the
     4  names,  addresses,  and  license  numbers  of such purchasers. Each sale
     5  shall be recorded separately on a numbered  invoice,  which  shall  have
     6  printed thereon the number, the name of the licensee, the address of the
     7  licensed  premises, and the current license number. Such processor shall
     8  deliver to the purchaser a true duplicate invoice stating the  name  and
     9  address  of the purchaser, quantity purchased, description and the price
    10  of the product, and a true, accurate and complete statement of the terms
    11  and conditions on which such sale  is  made.  Such  books,  records  and
    12  invoices  shall be kept for a period of two years and shall be available
    13  for inspection by any authorized representative of the bureau.
    14    § 176. Provisions governing marihuana retailers. 1. No retail  license
    15  shall  be  granted  for  any premises, unless the applicant shall be the
    16  owner thereof, or shall be in possession of said premises under a lease,
    17  management agreement or other agreement  giving  the  applicant  control
    18  over  the  premises,  in  writing,  for a term not less than the license
    19  period.
    20    2. No premises shall be licensed to sell  marihuana  products,  unless
    21  said  premises  shall  be  located in a store, the principal entrance to
    22  which shall be from the street level and located on a  public  thorough-
    23  fare  in premises which may be occupied, operated or conducted for busi-
    24  ness, trade or industry or on  an  arcade  or  sub-surface  thoroughfare
    25  leading  to  a  railroad  terminal. There may be not more than one addi-
    26  tional entrance which shall be from the street level and located on  and
    27  giving  access  to  and  from a public or private parking lot or parking
    28  area having space for not less than five automobiles.
    29    3. No marihuana retail license shall be granted for any premises which
    30  a license would not be allowed to sell  at  retail  for  consumption  of
    31  alcohol  off  the premises based on its proximity to a building occupied
    32  exclusively as a school, church, synagogue or  other  place  of  worship
    33  pursuant to the provisions of section one hundred five of this chapter.
    34    4.  No  marihuana  retail  licensee shall offer for sale any marihuana
    35  products in any other container, except in the original sealed  package,
    36  as received from the producer, distributor or processor. Such containers
    37  shall  have  affixed thereto such labels as may be required by the rules
    38  of the bureau, together with all New York state excise  tax  stamps,  as
    39  required  by  law.  Such containers shall not be opened nor its contents
    40  consumed on the premises where sold.
    41    5. No marihuana retail  licensee  shall  sell  or  transfer  marihuana
    42  products to any person under the age of twenty-one years.
    43    6.  No marihuana retail licensee shall sell alcoholic beverages on the
    44  same premises where marihuana products are sold.
    45    7. No sign of any kind printed, painted or electric,  advertising  any
    46  brand  shall  be permitted on the exterior or interior of such premises,
    47  except by permission of the bureau.
    48    8. No retail licensee shall deliver any marihuana products  except  in
    49  vehicles  owned  and operated by such licensee, or hired and operated by
    50  such licensee from a trucking or transportation company registered  with
    51  the  bureau,  and shall only make such deliveries at the premises of the
    52  purchaser.
    53    9. No retail licensee shall  keep  or  permit  to  be  kept  upon  the
    54  licensed premises, any marihuana products in any unsealed container.
    55    10. No retail licensee shall sell or deliver any marihuana products to
    56  any  person with knowledge of, or with reasonable cause to believe, that

        S. 3040--B                         32
     1  the person to whom such marihuana products are being sold, has  acquired
     2  the  same  for  the  purpose of peddling them from place to place, or of
     3  selling or giving them away in violation of the provisions of this chap-
     4  ter or in violation of the rules and regulations of the bureau.
     5    11. No premises licensed as a marihuana retailer shall be permitted to
     6  remain open during a time when a premises licensed to sell liquor and/or
     7  wine for off-premises consumption is not permitted to remain open pursu-
     8  ant to the provisions of section one hundred five of this chapter.
     9    12.  Each  marihuana  retail licensee shall keep and maintain upon the
    10  licensed premises,  adequate  books  and  records  of  all  transactions
    11  involving the business transacted by such licensee, which shall show the
    12  amount  of  marihuana products, purchased by such licensee together with
    13  the names, license numbers and places of business of  the  persons  from
    14  whom the same were purchased, and the amount involved in such purchases,
    15  as  well as the amount of marihuana products, sold by such licensee, and
    16  the amount involved in each sale. Such books and records shall be avail-
    17  able for inspection by any authorized representative of the bureau.
    18    13. All premises licensed under  this  section  shall  be  subject  to
    19  inspection by any peace officer described in subdivision four of section
    20  2.10 of the criminal procedure law acting pursuant to his or her special
    21  duties,  or  police officer or any duly authorized representative of the
    22  bureau, during the hours when the said premises are open for the  trans-
    23  action of business.
    24    § 177. Provisions governing marihuana on-site consumption licenses. 1.
    25  No  marihuana  retailer  or  microbusiness  shall be granted a marihuana
    26  on-site consumption license for a premises located in whole or  in  part
    27  inside  the  boundaries  of  any city, village or town, unless the local
    28  legislative body of such city, village or town, by resolution, expressly
    29  authorizes the licensing of such facilities in  such  city,  village  or
    30  town.  The  local  legislative  body  may direct an appropriate officer,
    31  board or body of such city, village  or  town  as  the  local  licensing
    32  authority  to  authorize  individual marihuana facility license applica-
    33  tions. In cities of one million or  more  residents,  should  the  local
    34  legislative  body  authorize such license, no marihuana retailer license
    35  for consumption on-site shall be  granted  unless  the  community  board
    36  established  pursuant  to  section  twenty-eight hundred of the New York
    37  city charter with jurisdiction over the area in which the premises  will
    38  be located shall also authorize such license.
    39    2. No marihuana retailer or microbusiness shall be granted a marihuana
    40  on-site consumption license for any premises, unless the applicant shall
    41  be the owner thereof, or shall be in possession of said premises under a
    42  lease,  in  writing, for a term not less than the license period except,
    43  however, that  such  license  may  thereafter  be  renewed  without  the
    44  requirement  of  a  lease as herein provided. This subdivision shall not
    45  apply to premises leased from  government  agencies,  as  defined  under
    46  subdivision  twelve-c of section three of this chapter; provided, howev-
    47  er,  that  the  appropriate  administrator  of  such  government  agency
    48  provides some form of written documentation regarding the terms of occu-
    49  pancy  under  which  the  applicant  is  leasing  said premises from the
    50  government agency for presentation to the bureau  at  the  time  of  the
    51  license application. Such documentation shall include the terms of occu-
    52  pancy  between  the  applicant and the government agency, including, but
    53  not limited to, any short-term leasing agreements or  written  occupancy
    54  agreements.
    55    3. No marihuana retailer or microbusiness shall be granted a marihuana
    56  on-site  consumption  license for any premises where a license would not

        S. 3040--B                         33
     1  be allowed to sell at retail for consumption of alcohol on the  premises
     2  based  on  its proximity to a building occupied exclusively as a school,
     3  church, synagogue or other place of worship pursuant to  the  provisions
     4  of section one hundred five of this chapter.
     5    4.  The bureau may consider any or all of the following in determining
     6  whether public convenience and advantage and the public interest will be
     7  promoted by the granting of licenses and permits for a marihuana on-site
     8  consumption license at a particular unlicensed location:
     9    (a) The number, classes and character of licenses in proximity to  the
    10  location and in the particular municipality or subdivision thereof.
    11    (b)  Evidence  that  all  necessary  licenses  and  permits  have been
    12  obtained from the state and all other governing bodies.
    13    (c) Effect of the grant of the license on vehicular traffic and  park-
    14  ing in proximity to the location.
    15    (d) The existing noise level at the location and any increase in noise
    16  level that would be generated by the proposed premises.
    17    (e) The history of marihuana violations and reported criminal activity
    18  at the proposed premises.
    19    (f) Any other factors specified by law or regulation that are relevant
    20  to determine the public convenience and advantage and public interest of
    21  the community.
    22    5.  If  the  bureau  shall  disapprove an application for a license or
    23  permit, it shall state and file in its offices the reasons therefor  and
    24  shall  notify  the applicant thereof. Such applicant may thereupon apply
    25  to the bureau for a review of such action in a manner to  be  prescribed
    26  by the rules of the bureau. A hearing upon notice to the applicant shall
    27  thereupon  be  held by the bureau or by one of its members at its office
    28  most conveniently situated to the office of its duly  authorized  repre-
    29  sentative in a manner to be prescribed in its rules; and on such hearing
    30  proof  may  be taken by oral testimony or by affidavit relative thereto.
    31  After such hearing, if the bureau confirms such  disapproval,  it  shall
    32  endorse such application accordingly and shall send notice to the appli-
    33  cant  of  its  action  in  such form as the bureau may prescribe. If the
    34  bureau does not confirm the disapproval action it may grant such  appli-
    35  cation and issue such license.
    36    6. No marihuana on-site consumption licensee, except persons or corpo-
    37  rations operating a hotel, as defined in subdivision fourteen of section
    38  three  of  this  chapter,  for  exclusive  use in the furnishing of room
    39  service in the manner prescribed by rule or regulation  of  the  bureau,
    40  shall  keep  upon  the  licensed premises any marihuana products, except
    41  those purchased from a licensed producer, and in containers approved  by
    42  the  bureau.  Such  containers shall have affixed thereto such labels as
    43  may be required by the rules of the bureau, together with all  necessary
    44  excise  stamps  as  required  by  law.  No marihuana retail licensee for
    45  on-site consumption shall reuse, refill, tamper with, adulterate, dilute
    46  or fortify the contents  of  any  container  of  marihuana  products  as
    47  received from the manufacturer or wholesaler.
    48    7.  No  marihuana  on-site consumption licensee shall sell, deliver or
    49  give away, or cause or permit or procure to be sold, delivered or  given
    50  away  any  marihuana  for  consumption  on  the premises where sold in a
    51  container or package containing more than one gram of marihuana.
    52    8. No marihuana on-site consumption licensee shall  suffer  or  permit
    53  any gambling on the licensed premises, or suffer or permit such premises
    54  to  become  disorderly.  The  use  of the licensed premises, or any part
    55  thereof, for the sale of lottery tickets, playing of bingo or  games  of
    56  chance,  or as a simulcast facility or simulcast theater pursuant to the

        S. 3040--B                         34
     1  racing, pari-mutuel wagering and breeding law, when duly authorized  and
     2  lawfully  conducted  thereon,  shall  not constitute gambling within the
     3  meaning of this subdivision.
     4    (a)  No  marihuana on-site consumption licensee shall suffer or permit
     5  any person to appear on licensed premises in such manner or attire as to
     6  expose to view any portion of the pubic area, anus, vulva  or  genitals,
     7  or  any  simulation  thereof,  nor  shall suffer or permit any female to
     8  appear on licensed premises in such manner or attire  as  to  expose  to
     9  view any portion of the breast below the top of the areola, or any simu-
    10  lation thereof.
    11    (b)  No marihuana on-site consumption licensee shall suffer, permit or
    12  promote an event on its premises wherein the contestants deliver, or are
    13  not forbidden by the applicable rules  thereof  from  delivering  kicks,
    14  punches  or  blows  of any kind to the body of an opponent or opponents,
    15  whether or not the event consists of a professional match or exhibition,
    16  and whether or not the event or any such  act,  or  both,  is  done  for
    17  compensation;  provided,  however,  that  this  prohibition shall not be
    18  applied to any  professional  match  or  exhibition  which  consists  of
    19  boxing,  sparring, wrestling, or martial arts and which is excepted from
    20  the definition of the term "combative sport"  contained  in  subdivision
    21  three of section one thousand of the general business law.
    22    (c)  In  addition to any other penalty provided by law, a violation of
    23  this subdivision shall constitute an adequate ground for  instituting  a
    24  proceeding  to  suspend, cancel or revoke the license of the violator in
    25  accordance with the  applicable  procedures  specified  in  section  one
    26  hundred nineteen of this chapter.
    27    9.  Except  where  a  permit  to do so is obtained pursuant to section
    28  405.10 of the penal law, no marihuana on-site consumption licensee shall
    29  suffer, permit, or promote an event on its premises wherein  any  person
    30  shall  use,  explode,  or cause to explode, any fireworks or other pyro-
    31  technics in a building as defined in paragraph e of subdivision  one  of
    32  section  405.10  of  the  penal  law, that is covered by such license or
    33  possess such fireworks or pyrotechnics for such purpose. In addition  to
    34  any other penalty provided by law, a violation of this subdivision shall
    35  constitute  an  adequate ground for instituting a proceeding to suspend,
    36  cancel, or revoke the license of the violator  in  accordance  with  the
    37  applicable  procedures specified in section one hundred nineteen of this
    38  chapter; provided however, if more than one licensee is participating in
    39  a single event, upon approval by the  bureau,  only  one  licensee  must
    40  obtain such permit.
    41    10.  No restaurant and no premises licensed to sell marihuana products
    42  for on-site consumption  under  paragraph  (a)  of  subdivision  six  of
    43  section  sixty-four-a  of  this  chapter  shall be permitted to have any
    44  opening or means of entrance or passageway for persons or things between
    45  the licensed premises and any  other  room  or  place  in  the  building
    46  containing the licensed premises, or any adjoining or abutting premises,
    47  unless  ingress  and  egress  is restricted by an employee, agent of the
    48  licensee, or other approved method of controlling access to the  facili-
    49  ty,  or unless such premises are a bona fide restaurant with such access
    50  for patrons and guests from any part of such building  or  adjoining  or
    51  abutting  premises as shall serve public convenience in a reasonable and
    52  suitable manner; or unless such licensed  premises  are  in  a  building
    53  owned or operated by any county, town, city, village or public authority
    54  or agency, in a park or other similar place of public accommodation. All
    55  glass in any window or door on said licensed premises shall be clear and
    56  shall not be opaque, colored, stained or frosted.

        S. 3040--B                         35
     1    11.  A vessel licensed to sell marihuana products for on-site consump-
     2  tion shall not be permitted to sell any marihuana products,  while  said
     3  vessel  is  moored  to  a  pier  or dock, except that vessels sailing on
     4  established schedules shall be permitted to sell marihuana products  for
     5  a period of three hours prior to the regular advertised sailing time.
     6    12.  Each  marihuana on-site consumption licensee shall keep and main-
     7  tain upon the licensed premises, adequate records  of  all  transactions
     8  involving  the business transacted by such licensee which shall show the
     9  amount of marihuana  products,  in  an  applicable  metric  measurement,
    10  purchased  by such licensee together with the names, license numbers and
    11  places of business of the persons from whom the same were purchased, the
    12  amount involved in such purchases, as well as  the  sales  of  marihuana
    13  products  made  by  such  licensee.  The  bureau is hereby authorized to
    14  promulgate rules and regulations permitting an on-site licensee  operat-
    15  ing  two or more premises separately licensed to sell marihuana products
    16  for on-site consumption to inaugurate or retain in this state methods or
    17  practices  of  centralized  accounting,  bookkeeping,  control  records,
    18  reporting,  billing, invoicing or payment respecting purchases, sales or
    19  deliveries of marihuana products, or methods and practices  of  central-
    20  ized  receipt or storage of marihuana products within this state without
    21  segregation or earmarking for any  such  separately  licensed  premises,
    22  wherever  such  methods  and  practices assure the availability, at such
    23  licensee's central or main office in  this  state,  of  data  reasonably
    24  needed for the enforcement of this chapter. Such records shall be avail-
    25  able for inspection by any authorized representative of the bureau.
    26    13. All retail licensed premises shall be subject to inspection by any
    27  peace  officer,  acting pursuant to his or her special duties, or police
    28  officer and by the duly authorized representatives of the bureau, during
    29  the hours when the said premises are open for the transaction  of  busi-
    30  ness.
    31    14.  A  marihuana on-site consumption licensee shall not provide mari-
    32  huana products to any person under the  age  of  twenty-one  or  to  any
    33  person who is visibly impaired.
    34    §  178.  Advertising  and  forms  of  the issuance of licenses. 1. The
    35  bureau is hereby authorized to promulgate rules and regulations  govern-
    36  ing  the advertising of marihuana producers, marihuana processors, mari-
    37  huana retailers, and any marihuana related products or services.
    38    2. The bureau shall promulgate explicit rules prohibiting  advertising
    39  that:
    40    (a) is false, deceptive, or misleading;
    41    (b) promotes overconsumption;
    42    (c) depicts consumption by children or other minors;
    43    (d) is designed in any way to appeal to children or other minors;
    44    (e)  is  within two hundred feet of the perimeter of a school grounds,
    45  playground, child care center, public park, or library;
    46    (f) is in public transit vehicles and stations;
    47    (g) is in the form of an unsolicited internet pop-up; or
    48    (h) is on publicly owned or operated property.
    49    3. The bureau shall promulgate explicit rules prohibiting all  market-
    50  ing  strategies and implementation including, but not limited to, brand-
    51  ing, packaging, labeling, location of marihuana retailers and  marihuana
    52  microbusinesses, and advertisements that are designed to:
    53    (a) appeal to persons less then twenty-one years of age; or
    54    (b) disseminate false or misleading information to customers.
    55    4. The bureau shall promulgate explicit rules requiring that:

        S. 3040--B                         36
     1    (a)  all  advertisements and marketing accurately and legibly identify
     2  the licensee responsible for its content; and
     3    (b)  any  broadcast,  cable,  radio,  print and digital communications
     4  advertisements only be placed where the audience is reasonably  expected
     5  to  be  twenty-one  years  of  age  or older, as determined by reliable,
     6  up-to-date audience composition data.
     7    § 179. Packaging of  marihuana  products.  1.  The  bureau  is  hereby
     8  authorized  to  promulgate rules and regulations governing the packaging
     9  of marihuana products, sold or possessed for sale in New York state.
    10    2. Such regulations shall include requiring that:
    11    (a) packaging  meets  requirements  similar  to  the  federal  "poison
    12  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    13    (b) all marihuana-infused products shall have a separate packaging for
    14  each serving;
    15    (c)  prior  to delivery or sale at a retailer, marihuana and marihuana
    16  products shall be labeled and placed in  a  resealable,  child-resistant
    17  package; and
    18    (d)  packages  and  labels shall not be made to be attractive to chil-
    19  dren.
    20    § 180. Labeling of marihuana products. 1. The bureau is hereby author-
    21  ized to promulgate rules and  regulations  governing  the  labeling  and
    22  offering of marihuana products for sale within this state.
    23    2.  Such  rules  and  regulations shall be calculated to: (a) prohibit
    24  deception of the consumer; (b) afford adequate information as to quality
    25  and identity of the product; and (c) achieve national uniformity in this
    26  business.
    27    3. The bureau may seek the assistance of the department of health when
    28  necessary before promulgating rules and regulations under this section.
    29    4. Such regulations shall include requiring labels  warning  consumers
    30  of  any  potential impact on human health resulting from the consumption
    31  of marihuana products that shall be affixed to those products when sold,
    32  if such labels are deemed warranted by  the  bureau  after  consultation
    33  with the department of health.
    34    5.  All  marihuana  and  marihuana  product  labels  and inserts shall
    35  include the following information prominently displayed in a  clear  and
    36  legible  fashion  in  accordance  with  the requirements, including font
    37  size, prescribed by the bureau or the department  of  health:  not  less
    38  than 8 point font:
    39    (a) manufacture date and source;
    40    (b) for packages continuing only dried flower, the net weight of mari-
    41  huana in the package;
    42    (c)  identification of the source and date of cultivation, the type of
    43  marihuana or marihuana product and the date of manufacturing and packag-
    44  ing;
    45    (d) list of pharmacologically active ingredients, including,  but  not
    46  limited  to,  tetrahydricannabinal  (THC),  cannibidiol (CBP), and other
    47  cannabinoid content, the THC and other cannabinoid amount in  milligrams
    48  per  serving,  servings  per  package, and the THC and other cannibinoid
    49  amount in milligrams for the package total, and the potency of the mari-
    50  huana or marihuana product by reference to the amount of  tetrahydrocan-
    51  nibinol and canibidiol in each serving;
    52    (e)  for  marihuana products, a list of all ingredients and disclosure
    53  of nutritional information in the same manner as the federal nutritional
    54  labeling requirements in 21 C.F.R. section 101.9;

        S. 3040--B                         37
     1    (f) a list of any solvents,  nonorganic  pesticides,  herbicides,  and
     2  fertilizers  that were used in the cultivation, production, and manufac-
     3  ture of such marihuana or marihuana product;
     4    (g) a warning if nuts or other known allergens are used;
     5    (h)  information  associated  with the unique identifier issued by the
     6  bureau of marihuana policy; and
     7    (i) any other requirements set by the bureau of marihuana policy.
     8    6. Only generic food names may be used to describe the ingredients  in
     9  edible marihuana products.
    10    7.  Such  rules and regulations shall establish methods and procedures
    11  for determining serving sizes  for  marihuana-infused  products,  active
    12  cannabis  concentration  per  serving  size,  and number of servings per
    13  container. Such regulations shall also require a nutritional fact  panel
    14  that incorporates data regarding serving sizes and potency thereof.
    15    8. Such rules and regulations shall require information containing the
    16  license  number of the marihuana producer and processor facilities where
    17  the marihuana was grown and processed.
    18    9. The packaging, sale, or possession by any licensee of any marihuana
    19  product not labeled or offered in conformity with rules and  regulations
    20  promulgated  in  accordance  with  this section shall be grounds for the
    21  imposition of a fine, and/or the suspension, revocation or  cancellation
    22  of the license.
    23    §  181. Seed to sale tracking. 1. No later than fifteen months follow-
    24  ing the effective date of the Marihuana Regulation and Taxation Act, the
    25  bureau shall establish a seed to sale tracking program for reporting the
    26  movement of marihuana and marihuana products throughout the distribution
    27  chain that utilizes a unique identifier  and  secure  packaging  and  is
    28  capable of providing information that captures, at a minimum, all of the
    29  following:
    30    (a) the licensee receiving the product;
    31    (b) the transaction date; and
    32    (c)  the  producer  from  which  the product originates, including the
    33  associated unique identifier.
    34    2. (a) The bureau shall create an electronic database  containing  the
    35  electronic  shipping  manifests  to facilitate the administration of the
    36  seed to sale program tracking, which shall include, but not  be  limited
    37  to, the following information:
    38    (b) the quantity, or weight, and variety of products shipped;
    39    (c) the estimated times of departure and arrival;
    40    (d) the quantity, or weight, and variety of products received;
    41    (e) the actual time of departure and arrival;
    42    (f) a categorization of the product; and
    43    (g)  the license number and unique identifier issued by the bureau for
    44  all licensees involved in  the  shipping  process,  including,  but  not
    45  limited to, producer, processor, retailer, and delivery licensees.
    46    (3)  The  database  shall  be  designed to flag irregularities for the
    47  bureau to investigate.
    48    § 182. Renewals of licenses and permits. 1. Each license  and  permit,
    49  issued pursuant to this article may be renewed upon application therefor
    50  by  the licensee or permittee and the payment of the annual fee for such
    51  license or permit as prescribed by this article. In the case of applica-
    52  tions for renewals, the bureau may dispense  with  the  requirements  of
    53  such  statements  as  it deems unnecessary in view of those contained in
    54  the application made for the original license  or  permit,  but  in  any
    55  event  the  submission  of photographs of the licensed premises shall be
    56  dispensed with, provided the applicant for such  renewal  shall  file  a

        S. 3040--B                         38
     1  statement  with  such bureau to the effect that there has been no alter-
     2  ation of such premises since the  original  license  was  issued.    The
     3  bureau  may  make  such  rules as may be necessary not inconsistent with
     4  this chapter regarding applications for renewals of licenses and permits
     5  and  the  time  for making the same.   Each applicant must submit to the
     6  bureau documentation of the racial, ethnic, and gender diversity of  the
     7  applicant's  employees  and  owners  prior  to a license or permit being
     8  renewed.
     9    2. The bureau shall provide an application for renewal  of  a  license
    10  issued  under this article not less than sixty days prior to the expira-
    11  tion of the current license.
    12    § 183. Information to be provided by applicants.    1.  The  following
    13  shall  be  the  information  required on an application for a license or
    14  permit:
    15    (a) A statement of identity as follows:
    16    (i) If the applicant is an individual, his or her name, date and place
    17  of birth, citizenship, permanent  home  address,  telephone  number  and
    18  social  security  number,  as well as any other names by which he or she
    19  has conducted a business at any time.
    20    (ii) If the applicant is a corporation or a limited  liability  corpo-
    21  ration, the corporate name of the applicant, its place of incorporation,
    22  its  main  business  address  (and  if such main business address is not
    23  within the state, the address of its main place of business  within  the
    24  state), other names by which it has been known or has conducted business
    25  at  any  time, its telephone number, its federal employer identification
    26  number, and the names, ages, citizenship, and permanent  home  addresses
    27  of its directors, officers and its shareholders (except that if there be
    28  more  than  ten shareholders then those shareholders holding ten percent
    29  or more of any class of its shares).
    30    (iii) If the applicant is a partnership, its name, its  main  business
    31  address  (and if such main business address is not within the state, the
    32  address of its main place of business within the state), other names  by
    33  which it has been known or has conducted business at any time, its tele-
    34  phone number, its federal employer identification number, and the names,
    35  ages, citizenship, and permanent home addresses of each of its partners.
    36    (b)  A  statement identifying the street and number of the premises to
    37  be licensed, if the premises has a street and number, and otherwise such
    38  description as will reasonably indicate  the  locality  thereof;  photo-
    39  graphs, drawings or other items related to the appearance of the interi-
    40  or or exterior of such premises, and a floor plan of the interior, shall
    41  be  required.  The  applicant  shall also state the nature of his or her
    42  interest in the premises; and the name of any other person interested as
    43  a partner, joint venturer, investor or lender with the applicant  either
    44  in the premises or in the business to be licensed.
    45    (c)  A description of any other marihuana license or permit under this
    46  article, within the past ten years, the applicant (including  any  offi-
    47  cers,  directors,  shareholders  or  partners listed in the statement of
    48  identity under paragraph (a) of this subdivision or the  spouse  of  any
    49  such person) or the applicant's spouse held or applied for.
    50    (d)  A  description  of the applicant's plan to ensure diversity among
    51  the applicant's employees, including strategies for ensuring:
    52    (i) gender diversity;
    53    (ii) racial and ethnic diversity that reflects the demographics within
    54  the municipality in which the  applicant's  proposed  business  will  be
    55  located; and

        S. 3040--B                         39
     1    (iii) that persons with prior criminal convictions are not barred from
     2  employment.
     3    (e)  A  statement  that  the location and layout of the premises to be
     4  licensed does not violate any requirement of this  chapter  relating  to
     5  location and layout of licensed premises, with a copy of the certificate
     6  of occupancy for the premises.
     7    (f)  A  statement that the applicant has control of the premises to be
     8  licensed by ownership of a fee interest or via a  leasehold,  management
     9  agreement,  or  other  agreement  giving  the applicant control over the
    10  premises, with a term at least as long as  the  license  for  which  the
    11  application  is being made, or by a binding contract to acquire the same
    12  and a statement of identity under paragraph (a) of this subdivision  for
    13  the  lessor  of  any  leasehold, manager of any management agreement, or
    14  other agreement giving the applicant control over the premises,  with  a
    15  copy  of  the  lease, contract, management agreement, or other agreement
    16  giving the applicant control over the food and beverage at the premises,
    17  or deed evidencing fee ownership of the premises.
    18    (g) A financial statement adequate to show all persons  who,  directly
    19  or indirectly have an economic interest in the establishment or acquisi-
    20  tion  of  the  business  for  which the license or permit application is
    21  being made, to identify the sources of  funds  to  be  applied  in  such
    22  establishment  or  acquisition, and to describe the terms and conditions
    23  governing such establishment with copies of such financial documents  as
    24  the bureau may reasonably require.
    25    (h)  The fingerprints of the applicants. Fingerprints submitted by the
    26  applicants shall be transmitted to  the  division  of  criminal  justice
    27  services and may be submitted to the federal bureau of investigation for
    28  state and national criminal history record checks.
    29    2. All license or permit applications shall be signed by the applicant
    30  (if an individual), by a managing partner (if a limited liability corpo-
    31  ration),  by  an  officer  (if  a corporation), or by all partners (if a
    32  partnership). Each person signing such application shall  verify  it  or
    33  affirm it as true under the penalties of perjury.
    34    3. All license or permit applications shall be accompanied by a check,
    35  draft  or  other forms of payment as the bureau may require or authorize
    36  in the amount required by this article for such license or permit.
    37    4. If there be any change, after the filing of the application or  the
    38  granting  of  a license, in any of the facts required to be set forth in
    39  such application, a supplemental statement giving notice of such change,
    40  cost and source of money involved in the change, duly verified, shall be
    41  filed with the bureau within ten days after such change. Failure  to  do
    42  so  shall,  if  willful  and  deliberate, be cause for revocation of the
    43  license.
    44    5. In giving any notice, or taking any action in reference to a licen-
    45  see of a licensed premises, the bureau may  rely  upon  the  information
    46  furnished   in  such  application  and  in  any  supplemental  statement
    47  connected therewith, and such information may be presumed to be correct,
    48  and shall be binding upon a licensee or licensed premises as if correct.
    49  All information required to be furnished in such application or  supple-
    50  mental statements shall be deemed material in any prosecution for perju-
    51  ry,  any proceeding to revoke, cancel or suspend any license, and in the
    52  bureau's determination to approve or deny the license.
    53    6. The bureau may in its discretion waive the submission of any  cate-
    54  gory  of  information  described  in  this  section  for any category of
    55  license or permit, provided that it shall not be permitted to waive  the

        S. 3040--B                         40
     1  requirement  for  submission  of any such category of information solely
     2  for an individual applicant or applicants.
     3    §  184.  Notification  to municipalities. 1. Not less than thirty days
     4  before filing any of the  following  applications,  an  applicant  shall
     5  notify  the municipality in which the premises is located of such appli-
     6  cant's intent to file such an application for a:
     7    (a) marihuana producer license;
     8    (b) marihuana processor license;
     9    (c) marihuana microbusiness license;
    10    (d) marihuana retailer license;
    11    (e) marihuana retailer license for on-site consumption;
    12    (f) marihuana delivery license;
    13    (g) marihuana testing license; and/or
    14    (h) any other type of licenses allowed by the bureau.
    15    2. Such notification shall be made to the clerk of the  village,  town
    16  or  city,  as  the  case  may  be,  wherein the premises is located. For
    17  purposes of this section:
    18    (a) notification need only be given to the clerk of a village when the
    19  premises is located within the boundaries of the village; and
    20    (b) in the city of New York, the community board established  pursuant
    21  to section twenty-eight hundred of the New York city charter with juris-
    22  diction  over the area in which the premises is located shall be consid-
    23  ered the appropriate public body to which notification shall be given.
    24    3. For purposes of this section, "substantial corporate change"  shall
    25  mean:
    26    (a) for a corporation, a change of eighty percent or more of the offi-
    27  cers  and/or directors, or a transfer of eighty percent or more of stock
    28  of such corporation, or an existing stockholder obtaining eighty percent
    29  or more of the stock of such corporation; and
    30    (b) for a limited liability company, a change  of  eighty  percent  or
    31  more  of  the  managing  members of the company, or a transfer of eighty
    32  percent or more of ownership interest in said company,  or  an  existing
    33  member obtaining a cumulative of eighty percent or more of the ownership
    34  interest in said company.
    35    4. Such notification shall be made in such form as shall be prescribed
    36  by the rules of the bureau.
    37    5.  A  municipality may express an opinion for or against the granting
    38  of such application. Any such opinion shall be deemed part of the record
    39  upon which the bureau makes its  determination  to  grant  or  deny  the
    40  application.
    41    6.  Such notification shall be made by: certified mail, return receipt
    42  requested; overnight delivery service with proof of mailing; or personal
    43  service upon the offices of the clerk or community board.
    44    7. The bureau shall require such notification to be on a  standardized
    45  form  that  can  be obtained on the internet or from the bureau and such
    46  notification to include:
    47    (a) the trade name or "doing business as" name, if any, of the  estab-
    48  lishment;
    49    (b) the full name of the applicant;
    50    (c)  the  street  address  of  the  establishment, including the floor
    51  location or room number, if applicable;
    52    (d) the mailing address of the establishment, if  different  than  the
    53  street address;
    54    (e)  the  name, address and telephone number of the attorney or repre-
    55  sentative of the applicant, if any;
    56    (f) a statement indicating whether the application is for:

        S. 3040--B                         41
     1    (i) a new establishment;
     2    (ii) a transfer of an existing licensed business;
     3    (iii) a renewal of an existing license; or
     4    (iv) an alteration of an existing licensed premises;
     5    (g)  if  the  establishment is a transfer or previously licensed prem-
     6  ises, the name of the old establishment and such establishment's license
     7  serial number;
     8    (h) in the case of a renewal or alteration  application,  the  license
     9  serial number of the applicant; and
    10    (i) the type of license.
    11    § 185. Licenses, publication, general provisions. 1. The various types
    12  of  licenses  issued  pursuant  to  this article shall be distinctive in
    13  color and design so as to be readily distinguishable from each other.
    14    2. No license shall be transferable or assignable except that notwith-
    15  standing any other provision of law, the license of  a  sole  proprietor
    16  converting  to  corporate  form,  where such proprietor becomes the sole
    17  stockholder and only officer and director of such new  corporation,  may
    18  be  transferred  to  the subject corporation if all requirements of this
    19  chapter remain the same with respect to such license as transferred and,
    20  further, the licensee shall transmit to the bureau, within ten  days  of
    21  the  transfer  of  license  allowable  under this subdivision, on a form
    22  prescribed by the bureau, notification of the transfer of such license.
    23    3. No license shall be pledged or deposited as collateral security for
    24  any loan or upon any other condition; and any such  pledge  or  deposit,
    25  and any contract providing therefor, shall be void.
    26    4.  Licenses  issued  under this article shall contain, in addition to
    27  any further information or material to be prescribed by the rules of the
    28  bureau, the following information: (a) name of person to whom license is
    29  issued; (b) kind of license and what kind of  traffic  in  marihuana  is
    30  thereby  permitted;  (c) description by street and number, or otherwise,
    31  of licensed premises; and (d) a statement in substance that such license
    32  shall not be deemed a property or vested  right,  and  that  it  may  be
    33  revoked at any time pursuant to law.
    34    5. There shall be printed and furnished by the bureau to each licensee
    35  a statement of the causes for which licenses may be revoked. Such state-
    36  ment  shall be prepared by the bureau and delivered to the licensee with
    37  his or her license or as soon thereafter  as  may  be  practicable.  Any
    38  amendments  thereto shall also be sent by the bureau to all licensees as
    39  soon as may be practicable after such amendments. Failure to  send  such
    40  statements  or  changes  therein, or failure to receive the same, or any
    41  misstatement or error contained in such statements or amendments  shall,
    42  however,  not be an excuse or justification for any violation of law, or
    43  prevent, or remit, or decrease any penalty or forfeiture therefor.
    44    6. Before commencing or doing any business for the time  for  which  a
    45  license  has  been  issued  said license shall be enclosed in a suitable
    46  wood or metal frame having a clear glass space and a substantial wood or
    47  metal back so that the whole of said license may be  seen  therein,  and
    48  shall  be posted up and at all times displayed in a conspicuous place in
    49  the room where such business is carried on, so that all persons visiting
    50  such place may readily see the same. It shall be unlawful for any person
    51  holding a license to post such license or to permit such license  to  be
    52  posted  upon premises other than the premises licensed, or upon premises
    53  where traffic in marihuana is being carried on by any person other  than
    54  the  licensee, or knowingly to deface, destroy or alter any such license
    55  in any respect. Whenever a license shall be lost  or  destroyed  without
    56  fault  on  the part of the licensee or his or her agents or employees, a

        S. 3040--B                         42
     1  duplicate license in lieu thereof may be issued by  the  bureau  in  its
     2  discretion  and  in  accordance  with such rules and regulations and the
     3  payment of such fees, not exceeding five dollars, as it may prescribe.
     4    §  186.  Revocation  of  licenses  for cause. 1. Any license or permit
     5  issued pursuant to this article may  be  revoked,  cancelled,  suspended
     6  and/or  subjected  to  the  imposition of a civil penalty for cause, and
     7  must be revoked for the following causes:
     8    (a) Conviction of the licensee, permittee  or  his  or  her  agent  or
     9  employee  for selling any illegal marihuana or marihuana products on the
    10  premises licensed.
    11    (b) For transferring, assigning or hypothecating a license or permit.
    12    2. Notwithstanding the issuance of a  license  or  permit  by  way  of
    13  renewal, the bureau may revoke, cancel or suspend such license or permit
    14  and/or  may impose a civil penalty against any holder of such license or
    15  permit, as prescribed by this section and section one  hundred  nineteen
    16  of  this  chapter, for causes or violations occurring during the license
    17  period immediately preceding the issuance of such license or permit, and
    18  may recover, as provided in section one hundred twelve of this  chapter,
    19  the penal sum of the bond on file during said period.
    20    3.  As  used  in this section, the term "for cause" shall also include
    21  the existence of a sustained and continuing pattern of  noise,  disturb-
    22  ance, misconduct, or disorder on or about the licensed premises, related
    23  to  the  operation  of the premises or the conduct of its patrons, which
    24  adversely affects the health, welfare or safety of  the  inhabitants  of
    25  the area in which such licensed premises are located.
    26    4.  The  existence  of  a  sustained  and continuing pattern of noise,
    27  disturbance, misconduct, or disorder on or about the licensed  premises,
    28  related  to the operation of the premises or the conduct of its patrons,
    29  will be presumed upon the sixth incident reported to the bureau by a law
    30  enforcement agency of noise or disturbance or misconduct or disorder  on
    31  or  about the licensed premises or related to the operation of the prem-
    32  ises or the conduct of its patrons, in  any  sixty  day  period,  absent
    33  clear and convincing evidence of either fraudulent intent on the part of
    34  any  complainant  or  a factual error with respect to the content of any
    35  report concerning such complaint relied upon by the bureau.
    36    § 187. Procedure for revocation or cancellation.  1.  Any  license  or
    37  permit  issued  by  the  bureau pursuant to this article may be revoked,
    38  cancelled or suspended and/or be subjected to the imposition of a  mone-
    39  tary penalty in the manner prescribed by this section.
    40    2.  The bureau may on its own initiative or on complaint of any person
    41  institute proceedings to revoke, cancel or suspend  any  retail  license
    42  and  may  impose a civil penalty against the licensee after a hearing at
    43  which the licensee shall be given an opportunity to be heard. Such hear-
    44  ing shall be held in  such  manner  and  upon  such  notice  as  may  be
    45  prescribed by the rules of the bureau.
    46    3.  All  other  licenses  or  permits issued under this article may be
    47  revoked, cancelled, suspended and/or made subject to the imposition of a
    48  civil penalty by the bureau after a hearing to be held in the manner  to
    49  be determined by the rules of the bureau.
    50    4.  (a) The provisions of this subdivision shall apply in all cases of
    51  licensee or permittee failure after  receiving  appropriate  notice,  to
    52  comply  with  a  summons, subpoena or warrant relating to a paternity or
    53  child support proceeding and arrears in  payment  of  child  support  or
    54  combined  child  and  spousal  support referred to the bureau by a court
    55  pursuant to the requirements of section two hundred forty-four-c of  the

        S. 3040--B                         43
     1  domestic relations law or pursuant to section four hundred fifty-eight-b
     2  or five hundred forty-eight-b of the family court act.
     3    (b)  Upon  receipt  of  an  order  from  the court based on arrears in
     4  payment of child support or combined child and spousal support  pursuant
     5  to  one of the foregoing provisions of law, the bureau, if it finds such
     6  person to have been issued a license or permit, shall within thirty days
     7  of receipt of such order from the court, provide notice to the  licensee
     8  or  permittee  of,  and initiate, a hearing which shall be held at least
     9  twenty days and no more than thirty  days  after  the  sending  of  such
    10  notice  to  the  licensee or permittee. The hearing shall be solely held
    11  for the purpose of determining whether there exists as of  the  date  of
    12  the  hearing  proof  that  full payment of all arrears of support estab-
    13  lished by the order of the court to be due from the licensee or  permit-
    14  tee  have  been  paid.  Proof of such payment shall be a certified check
    15  showing full payment of established arrears or a notice  issued  by  the
    16  court  or the support collection unit, where the order is payable to the
    17  support collection unit designated by the  appropriate  social  services
    18  district.  Such  notice  shall state that full payment of all arrears of
    19  support established by the order of the court to be due have been  paid.
    20  The  licensee  or  permittee  shall be given full opportunity to present
    21  such proof of payment at the hearing in person or by counsel.  The  only
    22  issue  to  be  determined  by  the  bureau as a result of the hearing is
    23  whether the arrears have been paid. No  evidence  with  respect  to  the
    24  appropriateness of the court order or ability of the respondent party in
    25  arrears to comply with such order shall be received or considered by the
    26  bureau.
    27    (c)  Notwithstanding  any inconsistent provision of this article or of
    28  any other provision of law to the contrary, such license or permit shall
    29  be suspended if at the hearing, provided for by paragraph  (b)  of  this
    30  subdivision, the licensee or permittee fails to present proof of payment
    31  as  required  by  such  paragraph.   Such suspension shall not be lifted
    32  unless the court or the support collection unit, where the  court  order
    33  is  payable to the support collection unit designated by the appropriate
    34  social services district, issues notice to the bureau that full  payment
    35  of  all  arrears  of support established by the order of the court to be
    36  due have been paid.
    37    (d) Upon receipt of an order from the court based on failure to comply
    38  with a summons, subpoena, or warrant relating to a  paternity  or  child
    39  support  proceeding, the bureau, if it finds such person has been issued
    40  a license or permit, shall within thirty days of receipt of  such  order
    41  from  the court, provide notice to the licensee or permittee that his or
    42  her license shall be suspended in sixty days unless  the  conditions  in
    43  paragraph (e) of this subdivision are met.
    44    (e)  Notwithstanding  any inconsistent provision of this article or of
    45  any other provision of law to the contrary, such license or permit shall
    46  be suspended in accordance with the provisions of paragraph (c) of  this
    47  subdivision unless the court terminates its order to commence suspension
    48  proceedings. Such suspension shall not be lifted unless the court issues
    49  an  order  to  the  bureau  terminating its order to commence suspension
    50  proceedings.
    51    (f) The bureau shall inform the court of all actions  taken  hereunder
    52  as required by law.
    53    (g)  This  subdivision applies to support obligations paid pursuant to
    54  any order of child support or child and  spousal  support  issued  under
    55  provisions of section two hundred thirty-six or two hundred forty of the

        S. 3040--B                         44
     1  domestic  relations  law,  or article four, five or five-A of the family
     2  court act.
     3    (h)  Notwithstanding  any inconsistent provision of this article or of
     4  any other provision of law to  the  contrary,  the  provisions  of  this
     5  subdivision  shall  apply  to the exclusion of any other requirements of
     6  this article and to the exclusion of any other requirement of law to the
     7  contrary.
     8    5. Where a licensee is convicted of two or  more  qualifying  offenses
     9  within  a  five year period, the bureau, upon receipt of notification of
    10  such second or subsequent  conviction  pursuant  to  the  provisions  of
    11  subdivision  two of section one hundred six-a of this chapter, shall, in
    12  addition to any other sanction or  civil  or  criminal  penalty  imposed
    13  pursuant to this chapter, impose on such licensee a civil penalty not to
    14  exceed  five hundred dollars. For purposes of this subdivision, a quali-
    15  fying offense shall mean: (a) the offense defined in subdivision one  of
    16  section  sixty-five of this chapter; or (b) the offense defined in para-
    17  graph (b) of subdivision one of section sixty-five-b  of  this  chapter.
    18  For  purposes  of  this  subdivision,  a  conviction of a licensee or an
    19  employee or agent of such licensee shall constitute a conviction of such
    20  licensee.
    21    § 188. Decisions of the bureau of marihuana policy and review  by  the
    22  courts.   Provisions of sections one hundred twenty, one hundred twenty-
    23  one and one hundred twenty-four of this chapter shall apply to marihuana
    24  licenses issued under this article.
    25    § 189. Minority  and  women-owned  business  enterprises.  The  bureau
    26  shall:
    27    1.  actively  promote  racial,  ethnic,  and geographic diversity when
    28  licensing marihuana growers, processors, and retailers;
    29    2. encourage applicants who qualify as a minority or women-owned busi-
    30  ness enterprise, as defined in section three hundred ten of  the  execu-
    31  tive law, to apply for licenses;
    32    3.  in  accordance  with  the Official Compilation of Codes, Rules and
    33  Regulations of the State of New York Title  5,  Department  of  Economic
    34  Development,  Chapter  XIV,  Division  of  Minority and Women's Business
    35  Development, Part 141, submit an annual master goal plan to promote  the
    36  inclusion  of:  (a) minority-owned business enterprises; (b) women-owned
    37  business enterprises; and (c) minority and women-owned  business  enter-
    38  prises with justifications for such goals; and
    39    4.  actively  promote and encourage applicants that promote and ensure
    40  racial, ethnic, and gender diversity in their workforce  when  licensing
    41  marihuana growers, processors, and retailers.
    42    §  190.  Disposition  of  moneys received for license fees. The bureau
    43  shall establish a scale of application,  licensing,  and  renewal  fees,
    44  based  upon the cost of enforcing this article and the size of the mari-
    45  huana business being licensed, as follows:
    46    1. Each licensing authority shall charge each licensee a licensure and
    47  renewal fee, as applicable. The  licensure  and  renewal  fee  shall  be
    48  calculated  to cover the costs of administering this article. The licen-
    49  sure fee may vary depending  upon  the  varying  costs  associated  with
    50  administering  the  various  regulatory  requirements of this article as
    51  they relate to the nature and scope of the  different  licensure  activ-
    52  ities,  but  shall  not  exceed  the  reasonable regulatory costs to the
    53  licensing authority.
    54    2. The total fees assessed pursuant to this article shall be set at an
    55  amount that will fairly and proportionately  generate  sufficient  total
    56  revenue to fully cover the total costs of administering this article.

        S. 3040--B                         45
     1    3.  All  license  fees  shall  be set on a scaled basis by the bureau,
     2  dependent on the size of the business.
     3    4.  The  bureau shall deposit all fees collected in the New York state
     4  marihuana revenue fund established pursuant to section ninety-nine-bb of
     5  the state finance law.
     6    § 191. Persons forbidden to traffic in  marihuana.  1.  The  following
     7  persons are forbidden to traffic in marihuana:
     8    (a) A person under the age of twenty-one years.
     9    (b)  A  person  who  is not a citizen of the United States or an alien
    10  lawfully admitted for permanent residence in the United States.
    11    (c) A co-partnership or a corporation, unless each member of the part-
    12  nership, or each of the principal officers and directors of  the  corpo-
    13  ration,  is a citizen of the United States or an alien lawfully admitted
    14  for permanent residence in the United States, not less  than  twenty-one
    15  years  of  age,  and  has not been convicted of any felony or any of the
    16  misdemeanors, specified in section 230.20 or 230.40 of the penal law, or
    17  if so convicted has received, subsequent to such conviction,  an  execu-
    18  tive  pardon  therefor  removing  this  disability a certificate of good
    19  conduct granted by the department of corrections  and  community  super-
    20  vision,  or  a  certificate  of  relief from disabilities granted by the
    21  department of corrections and community supervision or a court  of  this
    22  state  pursuant  to  the  provisions  of  article  twenty-three  of  the
    23  correction law to remove the disability under this  section  because  of
    24  such  conviction;  provided  however  that a corporation which otherwise
    25  conforms to the requirements of this section and article may be licensed
    26  if each of its principal officers and more than one-half of  its  direc-
    27  tors  are  citizens of the United States or aliens lawfully admitted for
    28  permanent residence in the United States; and provided  further  that  a
    29  corporation  organized  under  the not-for-profit corporation law or the
    30  education law which otherwise  conforms  to  the  requirements  of  this
    31  section  and  article  may be licensed if each of its principal officers
    32  and more than one-half of its directors are  not  less  than  twenty-one
    33  years  of  age and none of its directors are less than eighteen years of
    34  age; and provided further that a corporation organized  under  the  not-
    35  for-profit corporation law or the education law and located on the prem-
    36  ises  of  a college as defined by section two of the education law which
    37  otherwise conforms to the requirements of this section and  article  may
    38  be  licensed if each of its principal officers and each of its directors
    39  are not less than eighteen years of age.
    40    (d) (i) A person who shall have had  any  license  issued  under  this
    41  chapter  revoked  for  cause, until the expiration of two years from the
    42  date of such revocation.
    43    (ii) A person not licensed under the provisions of this  chapter,  who
    44  has  been convicted of a violation of this chapter, until the expiration
    45  of two years from the date of such conviction.
    46    (e) A corporation or co-partnership, if any officer  and  director  or
    47  any  partner,  while  not licensed under the provisions of this chapter,
    48  has been convicted of a violation of this chapter, or has had a  license
    49  issued under this chapter revoked for cause, until the expiration of two
    50  years from the date of such conviction or revocation.
    51    2. An applicant shall not be denied a state license under this article
    52  if the denial is based solely on a conviction for a violation of article
    53  two hundred twenty or two hundred twenty-one of the penal law.
    54    §  192. Surrender of license; notice to police officials. Within three
    55  days after a license shall have been revoked pursuant to  this  article,
    56  notice  thereof  shall  be  given to the licensee by mailing such notice

        S. 3040--B                         46
     1  addressed to him at the premises licensed. Notice shall also  be  mailed
     2  to  the owner of the premises licensed. The holder of such license shall
     3  thereupon surrender same to the  bureau.  The  mailing  thereof  by  the
     4  licensee  to  the bureau by registered mail or insured parcel post shall
     5  be deemed sufficient compliance with this  section.  The  bureau,  imme-
     6  diately  upon  giving notice of revocation, shall serve a written notice
     7  thereof upon the commissioner of police, chief of police or chief police
     8  officer of the city, or village in which  the  premises  for  which  the
     9  revoked license was issued is situated, or upon the sheriff of the coun-
    10  ty  or  a constable of the town in case the license was issued for prem-
    11  ises situated in a town and not within any city or village.  Such notice
    12  shall include a statement of the number of such license,  the  name  and
    13  place  of  residence of the holder thereof, the location of the licensed
    14  premises, and the date when such  license  was  revoked.  In  case  such
    15  license  be  not forthwith surrendered, the bureau shall issue a written
    16  demand for the surrender of such license and deliver said demand to  the
    17  sheriff  of the county in which the licensed premises are located, or to
    18  any representative of the bureau, and  said  sheriff  or  representative
    19  shall immediately take possession of such license and return the same to
    20  the bureau.
    21    § 193. Authority to promulgate rules and regulations. The bureau shall
    22  promulgate and implement all rules and regulations as it deems necessary
    23  to carry out the purpose and intent of this article.
    24    §  194. Protections for the use of marihuana. Individuals and licensed
    25  entities shall not be subject to arrest, prosecution, or penalty in  any
    26  manner,  or  denied any right or privilege, including but not limited to
    27  civil liability or disciplinary action by a business or occupational  or
    28  professional  licensing  board  or  bureau, solely for conduct permitted
    29  under this article. For the avoidance of doubt, the  appellate  division
    30  of  the  supreme court of the state of New York, and any disciplinary or
    31  character and fitness committees established by  them  are  occupational
    32  and  professional  licensing  boards within the meaning of this section.
    33  State or local law enforcement agencies  shall  not  cooperate  with  or
    34  provide  assistance to the government of the United States or any agency
    35  thereof in enforcing the Controlled Substance Act, 21, U.S.C.  S8012  et
    36  seq.,  solely for actions consistent with this chapter, except as pursu-
    37  ant to a valid court order.
    38    § 195. Discrimination protections for the use of marihuana or  medical
    39  marihuana. 1. No school or landlord may refuse to enroll or lease to and
    40  may  not  otherwise  penalize  a person solely for conduct allowed under
    41  sections 221.05 and 221.05-a of the penal law, except as exempted:
    42    (a) If failing to do so would cause the school or landlord to  lose  a
    43  monetary or licensing related benefit under federal law or regulations;
    44    (b) If the institution has adopted a code of conduct prohibiting mari-
    45  huana use on the basis of religious belief;
    46    (c)  If  a property is registered with the New York Smoke-Free Housing
    47  Registry, it is not required to permit the smoking of marihuana products
    48  on its premises.
    49    2. For the purposes of medical care, including  organ  transplants,  a
    50  registered qualifying patient's authorized use of medical marihuana must
    51  be  considered  the  equivalent of the use of any other medication under
    52  the direction of a practitioner and does not constitute the  use  of  an
    53  illicit  substance  or  otherwise  disqualify  a  registered  qualifying
    54  patient from medical care.
    55    3. No person may be denied custody of or visitation or parenting  time
    56  with  a minor, and there is no presumption of neglect or child endanger-

        S. 3040--B                         47
     1  ment for conduct allowed under sections 221.05 and 221.05-a of the penal
     2  law, unless the person's behavior creates an unreasonable danger to  the
     3  safety of the minor as established by clear and convincing evidence. For
     4  the  purposes  of  this  section, an "unreasonable danger" determination
     5  cannot be based solely on whether, when, and how  often  a  person  uses
     6  marihuana without separate evidence of harm.
     7    § 196. Employment protections. 1.  Unless an employer establishes by a
     8  preponderance  of  the  evidence  that  the  lawful use of marihuana has
     9  impaired the employee's ability to perform the employee's job  responsi-
    10  bilities,  it  shall  be  unlawful to take any adverse employment action
    11  against an employee based on either:
    12    (a) conduct allowed under sections 221.05 and 221.05-a  of  the  penal
    13  law; or
    14    (b)  the  employee's  positive  drug  test for marihuana components or
    15  metabolites.
    16    2. For the purposes of this  section,  an  employer  may  consider  an
    17  employee's  ability to perform the employee's job responsibilities to be
    18  impaired when the employee manifests specific articulable symptoms while
    19  working that decrease or lessen the employee's performance of the duties
    20  or tasks of the employee's job position.
    21    3. Nothing in this section shall restrict  an  employer's  ability  to
    22  prohibit  or take adverse employment action for the possession or use of
    23  intoxicating substances during work hours, or  require  an  employer  to
    24  commit  any  act  that  would  cause  the employer to be in violation of
    25  federal law, or that would result in the loss of a federal  contract  or
    26  federal funding.
    27    4. As used in this section, "adverse employment action" means refusing
    28  to  hire  or employ, barring or discharging from employment, requiring a
    29  person to retire from employment, or discriminating against  in  compen-
    30  sation or in terms, conditions, or privileges of employment.
    31    §  197.  Protections  for  persons  under  state supervision. A person
    32  currently  under  parole,  probation  or  other  state  supervision,  or
    33  released  on bail awaiting trial may not be punished or otherwise penal-
    34  ized for conduct allowed under sections 221.05 and 221.05-a of the penal
    35  law.
    36    § 198. Professional  and  medical  record  keeping.  Any  professional
    37  providing services in connection with a licensed or potentially licensed
    38  business under this chapter, or in connection with other conduct permit-
    39  ted  under  this chapter, and any medical professional providing medical
    40  care to a patient, may agree with their client or patient to maintain no
    41  record, or any reduced level of record  keeping  that  professional  and
    42  client  or  patient  may  agree.  In case of such agreement, the profes-
    43  sional's only obligation shall be to keep such records as agreed, and to
    44  keep a record of the agreement.  Such reduced record keeping is  conduct
    45  permitted  under  this  chapter,  and  shall  attract the protections of
    46  section one hundred ninety-four of this article.
    47    § 32. The state finance law is amended by adding  three  new  sections
    48  99-bb, 99-cc and 99-dd to read as follows:
    49    §  99-bb.  New  York  state marihuana revenue fund. 1. There is hereby
    50  established in the joint  custody  of  the  state  comptroller  and  the
    51  commissioner  of  taxation and finance a special fund to be known as the
    52  "New York state marihuana revenue fund".
    53    2. Such fund shall consist of all revenues received by the  department
    54  of  taxation  and  finance,  pursuant to the provisions of article eigh-
    55  teen-A of the tax law and all other moneys appropriated thereto from any
    56  other fund or source pursuant to law.  Nothing contained in this section

        S. 3040--B                         48
     1  shall prevent the state from receiving grants, gifts or bequests for the
     2  purposes of the fund as defined in this section and depositing them into
     3  the fund according to law.
     4    3.  The  moneys  in  such  fund  shall  be  expended for the following
     5  purposes:
     6    (a) Reasonable costs  incurred  by  the  department  of  taxation  and
     7  finance for administering and collecting the taxes imposed by this part;
     8  provided,  however,  such  costs  shall  not  exceed four percent of tax
     9  revenues received.
    10    (b) Reasonable costs incurred by the bureau of  marihuana  policy  for
    11  implementing,  administering, and enforcing the marihuana regulation and
    12  taxation act to the extent those costs are not  reimbursed  pursuant  to
    13  sections one hundred eighty-nine and one hundred ninety of article elev-
    14  en  of  the  alcoholic beverage control law. This paragraph shall remain
    15  operative through the two thousand twenty-two --  two  thousand  twenty-
    16  three fiscal year.
    17    (c)  Beginning  with  the two thousand nineteen -- two thousand twenty
    18  fiscal year and continuing through the two thousand twenty-nine - -  two
    19  thousand  thirty  fiscal  year, the commissioner of taxation and finance
    20  shall annually disburse the following sums  for  the  purposes  of  data
    21  collection and reporting:
    22    (1)  Seven  hundred  fifty thousand dollars to the bureau of marihuana
    23  policy to track and report data related to the  licensing  of  marihuana
    24  businesses,  including  the geographic location, structure, and function
    25  of licensed marihuana businesses, and demographic data, including  race,
    26  ethnicity, and gender, of license holders. The bureau of marihuana poli-
    27  cy  shall  publish  reports  on its findings annually and shall make the
    28  reports available to the public.
    29    (2) Seven hundred fifty thousand dollars to the department of criminal
    30  justice services to track and report data related  to  any  infractions,
    31  violations,  or criminal convictions that occur under any of the remain-
    32  ing marihuana statutes.   The department of  criminal  justice  services
    33  shall  publish  reports  on  its  findings  annually  and shall make the
    34  reports available to the public.
    35    (3) One million dollars  to  the  state  university  of  New  York  to
    36  research  and  evaluate  the  implementation and effect of the marihuana
    37  regulation and taxation act, and shall, if appropriate, make recommenda-
    38  tions to the legislature and governor regarding possible  amendments  to
    39  the marihuana regulation and taxation act. The recipients of these funds
    40  shall  publish reports on their findings at a minimum of every two years
    41  and shall make the reports available to the public. The research  funded
    42  pursuant to this subdivision shall include but not necessarily be limit-
    43  ed to:
    44    (A)  the  impacts  on public health, including health costs associated
    45  with marihuana use, as well as whether marihuana use is associated  with
    46  an increase or decrease in use of alcohol or other drugs;
    47    (B)  the  impact of treatment for cannabis use disorder and the effec-
    48  tiveness of different treatment programs;
    49    (C) public safety issues related to marihuana use, including  studying
    50  the  effectiveness of the packaging and labeling requirements and adver-
    51  tising and marketing restrictions contained in  the  act  at  preventing
    52  underage  access  to  and  use  of marihuana and marihuana products, and
    53  studying the health-related  effects  among  users  of  varying  potency
    54  levels of marihuana and marihuana products;
    55    (D)  marihuana  use rates, maladaptive use rates for adults and youth,
    56  and diagnosis rates of marihuana-related substance use disorders;

        S. 3040--B                         49
     1    (E) marihuana market prices, illicit market prices, tax structures and
     2  rates, including an evaluation of how to best  tax  marihuana  based  on
     3  potency,  and  the  structure  and  function of licensed marihuana busi-
     4  nesses;
     5    (F)  whether  additional  protections  are  needed to prevent unlawful
     6  monopolies or anti-competitive behavior from occurring in the nonmedical
     7  marihuana industry and, if so, recommendations as to the most  effective
     8  measures for preventing such behavior;
     9    (G)  the economic impacts in the private and public sectors, including
    10  but not necessarily limited to, job creation, workplace  safety,  reven-
    11  ues,  taxes  generated for state and local budgets, and criminal justice
    12  impacts, including, but not  necessarily  limited  to,  impacts  on  law
    13  enforcement  and  public  resources, short and long term consequences of
    14  involvement in the criminal justice system, and state and local  govern-
    15  ment agency administrative costs and revenue;
    16    (H)  whether  the  regulatory  agencies  tasked  with implementing and
    17  enforcing the  marihuana  regulation  and  taxation  act  are  doing  so
    18  consistent  with the purposes of the act, and whether different agencies
    19  might do so more effectively; and
    20    (I) any environmental issues related to marihuana production  and  the
    21  criminal prohibition of marihuana production.
    22    4. After the dispersal of moneys pursuant to subdivision three of this
    23  section,  the  remaining  moneys  in the fund deposited during the prior
    24  fiscal year shall be disbursed as follows:
    25    (a) twenty-five percent shall be deposited in the state  lottery  fund
    26  established  by section ninety-two-c of this article; provided that such
    27  moneys shall be distributed to the education  department  in  accordance
    28  with  subdivisions  two and four of section ninety-two-c of this article
    29  and shall not be utilized for the purposes of subdivision three of  such
    30  section;
    31    (b)  twenty-five  percent shall be deposited in the drug treatment and
    32  public education fund established  by  section  ninety-nine-cc  of  this
    33  article; and
    34    (c) fifty percent shall be deposited in the community grants reinvest-
    35  ment fund established by section ninety-nine-cc of this article.
    36    5.  On or before the first day of February each year, the commissioner
    37  of taxation and finance shall provide a written report to the  temporary
    38  president  of  the  senate, speaker of the assembly, chair of the senate
    39  finance committee, chair of the assembly ways and means  committee,  the
    40  state  comptroller  and  the  public.  Such  report shall detail how the
    41  moneys of the fund were utilized during the preceding calendar year, and
    42  shall include:
    43    (i) the amount of money dispersed from the fund and the award  process
    44  used for such disbursements;
    45    (ii) recipients of awards from the fund;
    46    (iii) the amount awarded to each recipient of an award from the fund;
    47    (iv) the purposes for which such awards were granted; and
    48    (v) a summary financial plan for such monies which shall include esti-
    49  mates of all receipts and all disbursements for the current and succeed-
    50  ing  fiscal  years,  along with the actual results from the prior fiscal
    51  year.
    52    6. Moneys shall be payable from the fund on the audit and  warrant  of
    53  the  comptroller  on vouchers approved and certified by the commissioner
    54  of education.
    55    § 99-cc. New York state  drug  treatment  public  education  fund.  1.
    56  There  is  hereby  established  in  the joint custody of the state comp-

        S. 3040--B                         50
     1  troller and the commissioner of taxation and finance a special  fund  to
     2  be known as the "New York state drug treatment public education fund".
     3    2.  Such  fund  shall  consist  of  revenues  received pursuant to the
     4  provisions of section ninety-nine-bb  of  this  article  and  all  other
     5  moneys  appropriated  thereto  from any other fund or source pursuant to
     6  law. Nothing contained in this section  shall  prevent  the  state  from
     7  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
     8  defined in this section and depositing them into the fund  according  to
     9  law.
    10    3.  The  moneys  in such fund shall be expended by the commissioner of
    11  the office of alcoholism and substance abuse in  consultation  with  the
    12  commissioner of health for the following purposes:
    13    (a)  To  develop and implement a youth-focused public health education
    14  and prevention campaign, including school-based prevention, early inter-
    15  vention, and health care services and programs to  reduce  the  risk  of
    16  marihuana and other substance use and abuse by school-aged children;
    17    (b)  To  develop  and  implement  a  statewide  public health campaign
    18  focused on the health effects of marihuana and legal use,  including  an
    19  ongoing  education  and  prevention  campaign  that educates the general
    20  public, including parents, consumers and retailers, on the legal use  of
    21  marihuana,  the importance of preventing youth access, the importance of
    22  safe storage and preventing secondhand marihuana smoke exposure,  infor-
    23  mation  for  pregnant or breastfeeding women, and the overconsumption of
    24  edibles;
    25    (c) To provide substance use disorder treatment programs for youth and
    26  adults, with an emphasis on programs  that  are  culturally  and  gender
    27  competent,  trauma-informed,  evidence-based  and provide a continuum of
    28  care that includes screening and assessment (substance use  disorder  as
    29  well  as  mental  health),  early intervention, active treatment, family
    30  involvement, case management, overdose prevention, prevention of  commu-
    31  nicable  diseases  related  to  substance  use,  relapse  management for
    32  substance use and other co-occurring behavioral health disorders,  voca-
    33  tional  services,  literacy  services, parenting classes, family therapy
    34  and counseling  services,  medication-assisted  treatments,  psychiatric
    35  medication and psychotherapy; and
    36    (d)  To  evaluate  the programs being funded to determine their effec-
    37  tiveness.
    38    4. On or before the first day of February each year, the  commissioner
    39  of the office of alcoholism and substance abuse services shall provide a
    40  written  report to the temporary president of the senate, speaker of the
    41  assembly, chair of the senate finance committee, chair of  the  assembly
    42  ways  and  means  committee, chair of the senate committee on alcoholism
    43  and drug abuse, chair of the assembly alcoholism and drug abuse  commit-
    44  tee,  the state comptroller and the public. Such report shall detail how
    45  the moneys of the fund were utilized during the preceding calendar year,
    46  and shall include:
    47    (a) the amount of money dispersed from the fund and the award  process
    48  used for such disbursements;
    49    (b) recipients of awards from the fund;
    50    (c) the amount awarded to each recipient of an award from the fund;
    51    (d) the purposes for which such awards were granted; and
    52    (e) a summary financial plan for such monies which shall include esti-
    53  mates of all receipts and all disbursements for the current and succeed-
    54  ing  fiscal  years,  along with the actual results from the prior fiscal
    55  year.

        S. 3040--B                         51
     1    5. Moneys shall be payable from the fund on the audit and  warrant  of
     2  the  comptroller  on vouchers approved and certified by the commissioner
     3  of education.
     4    §  99-dd.  New York state community grants reinvestment fund. 1. There
     5  is hereby established in the joint custody of the state comptroller  and
     6  the  commissioner  of taxation and finance a special fund to be known as
     7  the "New York state community grants reinvestment fund".
     8    2. Such fund shall consist of all revenues received  pursuant  to  the
     9  provisions  of  section  ninety-nine-bb  of  this  article and all other
    10  moneys appropriated thereto from any other fund or  source  pursuant  to
    11  law.  Nothing  contained  in  this  section shall prevent the state from
    12  receiving grants, gifts or bequests for the  purposes  of  the  fund  as
    13  defined  in  this section and depositing them into the fund according to
    14  law.
    15    3. The fund shall be governed and administered by an executive  steer-
    16  ing  committee of thirteen members established by the office of children
    17  and family services and including additional  representatives  from  the
    18  labor  department,  and  the health department appointed by the governor
    19  and a representative of the education department appointed by the  board
    20  of regents. In addition, the majority and minority leaders of the senate
    21  and  assembly  shall  each appoint one member to the steering committee,
    22  the comptroller shall appoint three additional members, and the attorney
    23  general shall appoint two additional members from relevant local govern-
    24  ment entities and community-based organizations. Every effort should  be
    25  made to ensure a balanced and diverse committee, which shall have exper-
    26  tise  in  job placement, homelessness and housing, behavioral health and
    27  substance abuse treatment, and effective  rehabilitative  treatment  for
    28  adults and juveniles, and shall include representatives of organizations
    29  serving communities impacted by past federal and state drug policies.
    30    4. The moneys in such fund shall be expended by the executive steering
    31  committee  to  qualified community-based nonprofit organizations for the
    32  purpose of reinvesting in  communities  disproportionately  affected  by
    33  past federal and state drug policies. The grants from this program shall
    34  be  used to support job placement, job skills services, adult education,
    35  mental health treatment, substance use disorder treatment, system  navi-
    36  gation  services,  legal  services  to  address barriers to reentry, and
    37  linkages to medical care, women's health services and  other  community-
    38  based supportive services.
    39    5. The community grants reinvestment program shall not make any grants
    40  in  any  municipalities  which  have  banned  the cultivation, including
    41  personal cultivation of marihuana under section 221.05-a  of  the  penal
    42  law, or retail sale of marihuana or marihuana products pursuant to arti-
    43  cle eleven of the alcoholic beverage control law.
    44    6.  On or before the first day of February each year, the commissioner
    45  of the office of children and family services shall  provide  a  written
    46  report  to  the temporary president of the senate, speaker of the assem-
    47  bly, chair of the senate finance committee, chair of the  assembly  ways
    48  and means committee, chair of the senate committee on children and fami-
    49  lies,  chair  of  the assembly children and families committee, chair of
    50  the senate committee on labor, chair of the  assembly  labor  committee,
    51  chair  of  the  senate committee on health, chair of the assembly health
    52  committee, chair of the senate committee  on  education,  chair  of  the
    53  assembly education committee, the state comptroller and the public. Such
    54  report  shall detail how the monies of the fund were utilized during the
    55  preceding calendar year, and shall include:

        S. 3040--B                         52
     1    (a) the amount of money dispersed from the fund and the award  process
     2  used for such disbursements;
     3    (b) recipients of awards from the fund;
     4    (c) the amount awarded to each recipient of an award from the fund;
     5    (d) the purposes for which such awards were granted; and
     6    (e) a summary financial plan for such monies which shall include esti-
     7  mates of all receipts and all disbursements for the current and succeed-
     8  ing  fiscal  years,  along with the actual results from the prior fiscal
     9  year.
    10    7. Moneys shall be payable from the fund on the audit and  warrant  of
    11  the  comptroller  on vouchers approved and certified by the commissioner
    12  of education.
    13    § 33. The tax law is amended by adding a new article 18-A to  read  as
    14  follows:
    15                                ARTICLE 18-A
    16                      PROVISIONS RELATING TO MARIHUANA
    17  Section 446.   Definitions.
    18          447.   Taxes imposed.
    19          447-a. Local taxes on marihuana by a city or town.
    20          447-b.  Ordinary  and  necessary  expenses  deductible  from net
    21                   income.
    22          448.   Surety bond.
    23          449.   Collection of tax.
    24    § 446. Definitions. As used in this article:
    25    1.  "Commercial market activity" includes the cultivation, possession,
    26  manufacture,  distribution,  processing,  storing,  laboratory  testing,
    27  labeling,  transportation,  delivery  or sale of marihuana and marihuana
    28  products, as provided for in article eleven of  the  alcoholic  beverage
    29  control law, but shall not include medical marihuana activities provided
    30  for in title five-A of article thirty-three of the public health law.
    31    2.    "Concentrated  cannabis"  means (a) the separated resin, whether
    32  crude or purified, obtained from a plant of the genus Cannabis; or (b) a
    33  material,  preparation,  mixture,  compound  or  other  substance  which
    34  contains more than three percent by weight of delta-9 tetrahydrocannabi-
    35  nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
    36  tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
    37  system.
    38    3.  "Marihuana"  means  all  parts of the plant of the genus Cannabis,
    39  whether growing or not; the seeds thereof; the resin extracted from  any
    40  part  of  the  plant; and every compound, manufacture, salt, derivative,
    41  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    42  include  the mature stalks of the plant, fiber produced from the stalks,
    43  oil or cake made from the seeds of the plant, any other compound,  manu-
    44  facture,  salt, derivative, mixture, or preparation of the mature stalks
    45  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    46  sterilized  seed of the plant which is incapable of germination. It does
    47  not include all parts of the plant Cannabis sativa L.,  whether  growing
    48  or not, having no more than three-tenths of one percent tetrahydrocanna-
    49  binol (THC).
    50    4.  "Marihuana  consumer"  means  a  person twenty-one years of age or
    51  older who purchased marihuana or marihuana products for personal use  by
    52  persons twenty-one years of age or older, but not for resale to others.
    53    5.  "Marihuana  flowers" shall mean the dried flowers of the marihuana
    54  plant.
    55    6. "Marihuana leaves" shall mean all  parts  of  the  marihuana  plant
    56  other than marihuana flowers that are sold or consumed.

        S. 3040--B                         53
     1    7.  "Marihuana  processor"  means  a  person licensed by the bureau of
     2  marihuana policy to purchase marihuana and  concentrated  cannabis  from
     3  marihuana  producers,  to  process marihuana, concentrated cannabis, and
     4  marihuana-infused products, package and  label  marihuana,  concentrated
     5  cannabis  and marihuana-infused products for sale in retail outlets, and
     6  sell marihuana, concentrated cannabis and marihuana infused products  at
     7  wholesale to marihuana retailers.
     8    8. "Marihuana producer" means a person licensed by the bureau of mari-
     9  huana  policy  to  produce, process, and sell marihuana and concentrated
    10  cannabis at wholesale to marihuana processors, marihuana  retailers,  or
    11  other marihuana producers, but not to consumers.
    12    9.  "Marihuana  products"  means marihuana, concentrated cannabis, and
    13  marihuana-infused products.
    14    10. "Marihuana-infused products" means products that contain  marihua-
    15  na,  marihuana  extracts,  or concentrated cannabis and are intended for
    16  human use or consumption, such as, but not limited to, edible  products,
    17  ointments, and tinctures.
    18    11. "Immature marihuana plant" means a marihuana plant with no observ-
    19  able flowers or buds.
    20    12.  "Marihuana  retailer"  means  a  person licensed by the bureau of
    21  marihuana policy to purchase marihuana, concentrated cannabis, and mari-
    22  huana-infused products from marihuana producers and marihuana processors
    23  and sell marihuana, marihuana-infused products, and concentrated  canna-
    24  bis in a retail outlet.
    25    13.  "Marihuana  retailer  for on-premises consumption" means a person
    26  licensed by the  bureau  of  marihuana  policy  to  purchase  marihuana,
    27  concentrated  cannabis,  and  marihuana  infused products from marihuana
    28  producers, marihuana retailers and marihuana processors and  sell  mari-
    29  huana  products  for  a customer to consume while the customer is within
    30  the facility.
    31    § 447. Taxes imposed.  1. (a) There is hereby  levied  and  imposed  a
    32  cultivation  tax upon all harvested marihuana that enters the commercial
    33  market upon all persons required to be licensed to  cultivate  marihuana
    34  pursuant  to  article  eleven of the alcoholic beverage control law. The
    35  tax shall be due after the marihuana is harvested.
    36    (i) Marihuana flowers shall be taxed at a rate of sixty-two cents  per
    37  dry-weight gram.
    38    (ii)  Marihuana  leaves shall be taxed at a rate of ten cents per dry-
    39  weight gram.
    40    (b) There is hereby levied and imposed a nursery tax upon all immature
    41  plants that enter the commercial market upon all persons required to  be
    42  licensed  to  produce  immature plants pursuant to article eleven of the
    43  alcoholic beverage control law. Immature plants shall be taxed at a rate
    44  of one dollar and thirty-five cents each.
    45    (c) There is hereby levied and imposed a tax upon  marihuana  sold  or
    46  otherwise  transferred  by a marihuana producer to a marihuana processor
    47  or marihuana retailer at a rate equivalent to the rate established under
    48  article twenty-eight of this chapter.
    49    (d) A marihuana excise tax is hereby levied and imposed upon customers
    50  of nonmedical marihuana or nonmedical marihuana products  sold  in  this
    51  state  at the rate fifteen percent of any sale by a retailer, microbusi-
    52  ness, or other person required to be licensed pursuant to article eleven
    53  of the alcoholic beverage control law to sell  marihuana  and  marihuana
    54  products directly to a customer.
    55    (e)  The  department  shall establish procedures for the collection of
    56  all taxes levied.

        S. 3040--B                         54
     1    (f) No tax established by this section shall be  levied  upon  medical
     2  marihuana  intended  for sale to a certified patient or designated care-
     3  giver pursuant to title five-A of article  thirty-three  of  the  public
     4  health law.
     5    2.  For  reporting periods beginning later than one year following the
     6  effective date of this article, the rates of tax under  subdivision  one
     7  of  this  section  shall  be adjusted for each biennium according to the
     8  cost-of-living adjustment for the calendar year.
     9    3. The department shall regularly review the rates of  the  tax  under
    10  subdivision one of this section and make recommendations to the legisla-
    11  ture  regarding  appropriate  adjustments to the rates that will further
    12  the purposes of:
    13    (a) maximizing net revenue;
    14    (b) minimizing the illegal marihuana industry; and
    15    (c) discouraging the use of marihuana by minors under twenty-one years
    16  of age.
    17    § 447-a. Local taxes on marihuana by a city or town. Any city or  town
    18  in  this  state,  acting  through  its local legislative body, is hereby
    19  authorized and empowered to adopt and amend local laws imposing  in  any
    20  such  city  or  town  a sales tax on marihuana retailers at a rate of no
    21  more than two percent of the sale price of marihuana products sold to  a
    22  marihuana  consumer. Any taxes imposed pursuant to the authority of this
    23  section shall be administered and collected by  the  department  in  the
    24  same  manner  as the taxes imposed under section four hundred forty-nine
    25  of this article. The commissioner  is  hereby  empowered  to  make  such
    26  provisions  as  it  deems  necessary  for  the  joint administration and
    27  collection of the state and local taxes imposed and authorized  by  this
    28  article.
    29    §  447-b.  Ordinary and necessary expenses deductible from net income.
    30  Notwithstanding any federal tax law to the contrary,  in  computing  net
    31  income  for  businesses  exempted from criminal penalties under articles
    32  two hundred twenty and two hundred twenty-one of the penal law and arti-
    33  cle eleven of the alcoholic beverage control law, there shall be allowed
    34  as a deduction from state taxes all the ordinary and necessary  expenses
    35  paid  or  incurred  during  the taxable year in carrying on any trade or
    36  business, including but not limited to, reasonable allowance  for  sala-
    37  ries or other compensation for personal services actually rendered.
    38    §  448.  Surety  bond.  Marihuana  retailer applicants are required to
    39  submit a surety bond with the department equal  to  two  months  of  the
    40  cultivation  facility's  anticipated  retail  marihuana  excise tax. The
    41  surety bond must be issued by a company authorized to do business in the
    42  state. Proof of surety bond is  required  for  approval  of  applicant's
    43  retail license.
    44    §  449.  Collection of tax. This tax shall be collected by the commis-
    45  sioner who shall establish a procedure for the collection of this tax.
    46    § 34. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
    47  of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
    48  ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
    49  the laws of 1977 and as relettered by chapter 192 of the laws  of  1980,
    50  are amended to read as follows:
    51    (i)  prior to the filing of an accusatory instrument in a local crimi-
    52  nal court against such person, the prosecutor elects  not  to  prosecute
    53  such  person.  In such event, the prosecutor shall serve a certification
    54  of such disposition upon the division of criminal justice  services  and
    55  upon  the appropriate police department or law enforcement agency which,
    56  upon receipt thereof, shall comply with  the  provisions  of  paragraphs

        S. 3040--B                         55
     1  (a),  (b),  (c)  and  (d) of subdivision one of this section in the same
     2  manner as is required thereunder with respect to an  order  of  a  court
     3  entered pursuant to said subdivision one[.]; or
     4    (j)  following the arrest of such person, the arresting police agency,
     5  prior to the filing of an accusatory  instrument  in  a  local  criminal
     6  court  but subsequent to the forwarding of a copy of the fingerprints of
     7  such person to the division of criminal justice services, elects not  to
     8  proceed  further. In such event, the head of the arresting police agency
     9  shall serve a certification of such disposition  upon  the  division  of
    10  criminal justice services which, upon receipt thereof, shall comply with
    11  the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
    12  this  section  in the same manner as is required thereunder with respect
    13  to an order of a court entered pursuant to said subdivision one[.]; or
    14    (k) (i) The accusatory instrument alleged a violation of  article  two
    15  hundred  twenty  or section 240.36 of the penal law, prior to the taking
    16  effect of article two hundred twenty-one of the penal  law,  or  by  the
    17  conviction  of  such person of a violation of [article two hundred twen-
    18  ty-one] section 221.45 of the penal law on or after the  effective  date
    19  of  the  chapter  of the laws of 2017 that amended this subdivision or a
    20  violation of sections 221.05, 221.10, 221.15,  221.20,  221.25,  221.30,
    21  221.35,  or  221.40  of the penal law prior to the effective date of the
    22  chapter of the laws of 2017 that amended this subdivision; and (ii)  the
    23  sole  controlled  substance involved is [marijuana; (iii) the conviction
    24  was only for a violation or violations; and (iv) at  least  three  years
    25  have  passed  since the offense occurred] marihuana.  No defendant shall
    26  be required or permitted to waive eligibility for  sealing  pursuant  to
    27  this  paragraph  as  part of a plea of guilty, sentence or any agreement
    28  related to a conviction for a violation of section 221.45 of  the  penal
    29  law. Any such waiver shall be deemed void and wholly unenforceable.
    30    §  35.  Subdivision 4 of section 160.50 of the criminal procedure law,
    31  as amended by chapter 905 of the laws of 1977 and renumbered by  chapter
    32  142 of the laws of 1991, is amended to read as follows:
    33    4.  A person in whose favor a criminal action or proceeding was termi-
    34  nated, as defined in [paragraph] paragraphs (a) through (h), (k) or  (l)
    35  of  subdivision [two] three of this section, prior to the effective date
    36  of [this section, may upon motion apply  to  the  court  in  which  such
    37  termination  occurred,  upon  not  less  than  twenty days notice to the
    38  district attorney, for an order granting to such person the  relief  set
    39  forth in subdivision one of this section, and such order shall be grant-
    40  ed  unless the district attorney demonstrates to the satisfaction of the
    41  court that the interests of justice require otherwise. A person in whose
    42  favor a criminal action or proceeding  was  terminated,  as  defined  in
    43  paragraph  (i)  or  (j) of subdivision two of this section, prior to the
    44  effective date of this section, may apply to the appropriate  prosecutor
    45  or  police agency for a certification as described in said paragraph (i)
    46  or (j) granting to such person the relief set forth  therein,  and  such
    47  certification shall be granted by such prosecutor or police agency.] the
    48  chapter of the laws of two thousand seventeen that amended this subdivi-
    49  sion, and whose records have not been sealed pursuant to subdivision one
    50  of  this  section, may apply to have the records of such criminal action
    51  or proceeding sealed at the clerk's office for the court  in  which  the
    52  criminal action or proceeding was terminated. Application may be made by
    53  the  person  or  his  or her attorney. Upon a determination by the clerk
    54  that the action or proceeding was terminated in the  person's  favor  as
    55  defined  in  subdivision  three  of this section, the clerk of the court
    56  shall immediately notify the commissioner of the  division  of  criminal

        S. 3040--B                         56
     1  justice services and the heads of all appropriate police departments and
     2  other  law  enforcement  agencies that the action has been terminated in
     3  favor of the accused and that the record of such action  or  proceedings
     4  shall  be  sealed.  Upon receipt of notification of such termination and
     5  sealing, all records relating to the criminal action shall be sealed, as
     6  required under paragraph (c) of subdivision one of this section, and all
     7  photographs, photographic plates or proofs, palmprints and  fingerprints
     8  shall be destroyed or returned as specified in paragraphs (a) and (b) of
     9  subdivision one of this section. This paragraph shall not apply to cases
    10  in  which  the  court declined to seal for reasons stated on the record,
    11  pursuant to subdivision one of this section.  When  an  applicant  under
    12  this  subdivision  presents  to the court clerk fingerprint records from
    13  New York state division of criminal justice services or a court disposi-
    14  tion which indicate that a criminal action  or  proceeding  against  the
    15  applicant  was  dismissed  but  the  supporting  court records cannot be
    16  located, have been destroyed, or do not indicate whether  the  dismissal
    17  was  a  "termination in favor of" the accused as that term is defined in
    18  subdivision three of this section, the clerk of the court  wherein  such
    19  criminal  action  or  proceeding  was terminated shall proceed as if the
    20  matter had been so terminated.
    21    § 36. Subdivisions 1 and 2 of section 170.56 of the criminal procedure
    22  law, subdivision 1 as amended by chapter 360 of the  laws  of  1977  and
    23  subdivision  2 as added by chapter 1042 of the laws of 1971, are amended
    24  to read as follows:
    25    1.  Upon or after arraignment in a local criminal court upon an infor-
    26  mation, a prosecutor's information or a misdemeanor complaint, where the
    27  sole remaining count or counts  charge  a  violation  or  violations  of
    28  section  [221.05,  221.10, 221.15, 221.35 or 221.40] 221.45 of the penal
    29  law, or upon summons for a nuisance offense under  section  sixty-five-c
    30  of  the alcoholic beverage control law and before the entry of a plea of
    31  guilty thereto or commencement of   a trial  thereof,  the  court,  upon
    32  motion  of  a defendant, may order that all proceedings be suspended and
    33  the action adjourned in contemplation of dismissal, or  upon  a  finding
    34  that  adjournment  would not be necessary or appropriate and the setting
    35  forth in the record of the reasons for such  findings,  may  dismiss  in
    36  furtherance  of  justice  the  accusatory instrument; provided, however,
    37  that the court may  not  order  such  adjournment  in  contemplation  of
    38  dismissal or dismiss the accusatory instrument if: (a) the defendant has
    39  previously  been granted such adjournment in contemplation of dismissal,
    40  or (b) the defendant has previously been granted a dismissal under  this
    41  section,  or  (c)  the  defendant  has  previously been convicted of any
    42  offense involving controlled substances, or (d) the defendant has previ-
    43  ously been convicted of a crime  and  the  district  attorney  does  not
    44  consent  or (e) the defendant has previously been adjudicated a youthful
    45  offender on the basis of any act or acts involving controlled substances
    46  and the district attorney does not consent.  Notwithstanding the limita-
    47  tions set forth in this  subdivision,  the  court  may  order  that  all
    48  proceedings  be  suspended  and the action adjourned in contemplation of
    49  dismissal  based  upon  a  finding  of  exceptional  circumstances.  For
    50  purposes  of  this  subdivision,  exceptional  circumstances exist when,
    51  regardless of the ultimate disposition of the case, the entry of a  plea
    52  of guilty is likely to result in severe collateral consequences, includ-
    53  ing,  but not limited to, those that could leave a noncitizen inadmissi-
    54  ble or removable from the United States.
    55    2.  Upon ordering the action adjourned in contemplation of  dismissal,
    56  the  court  must  set and specify such conditions for the adjournment as

        S. 3040--B                         57
     1  may be appropriate, and such conditions may include placing the  defend-
     2  ant  under the supervision of any public or private agency.  At any time
     3  prior to dismissal the court may modify  the  conditions  or  extend  or
     4  reduce  the  term  of  the  adjournment, except that the total period of
     5  adjournment shall not exceed [twelve] six months.  Upon violation of any
     6  condition fixed by the court, the court may revoke its order and restore
     7  the case to the calendar and the prosecution thereupon must proceed.  If
     8  the case is not so restored to the calendar during the period  fixed  by
     9  the court, the accusatory instrument is, at the expiration of such peri-
    10  od, deemed to have been dismissed in the furtherance of justice.
    11    §  37.  Section  210.46  of  the criminal procedure law, as amended by
    12  chapter 360 of the laws of 1977, is amended to read as follows:
    13  § 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
    14          in a superior court.
    15    Upon or after arraignment in a superior court upon an indictment where
    16  the  sole  remaining count or counts charge a violation or violations of
    17  section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
    18  law  and before the entry of a plea of guilty thereto or commencement of
    19  a  trial  thereof, the court, upon motion of a defendant, may order that
    20  all proceedings be suspended and the action adjourned  in  contemplation
    21  of dismissal or may dismiss the indictment in furtherance of justice, in
    22  accordance with the provisions of section 170.56 of this chapter.
    23    § 38. Paragraphs (h) and (i) of subdivision 1 of section 440.10 of the
    24  criminal  procedure  law, paragraph (h) as amended by chapter 332 of the
    25  laws of 2010 and paragraph (i) as amended by chapter 368 of the laws  of
    26  2015, are amended and a new paragraph (j) is added to read as follows:
    27    (h) The judgment was obtained in violation of a right of the defendant
    28  under the constitution of this state or of the United States; [or]
    29    (i)  The judgment is a conviction where the arresting charge was under
    30  section 240.37 (loitering for the purpose of engaging in a  prostitution
    31  offense, provided that the defendant was not alleged to be loitering for
    32  the  purpose of patronizing a person for prostitution or promoting pros-
    33  titution) or 230.00 (prostitution) or 230.03 (prostitution in  a  school
    34  zone) of the penal law, and the defendant's participation in the offense
    35  was  a  result  of having been a victim of sex trafficking under section
    36  230.34 of the penal law, labor trafficking under section 135.35  of  the
    37  penal  law,  aggravated  labor  trafficking  under section 135.37 of the
    38  penal law, compelling prostitution under section  230.33  of  the  penal
    39  law,  or trafficking in persons under the Trafficking Victims Protection
    40  Act (United States Code, title 22, chapter 78); provided that
    41    (i) a motion under this paragraph shall be made  with  due  diligence,
    42  after  the  defendant  has  ceased to be a victim of such trafficking or
    43  compelling prostitution crime or has sought services for victims of such
    44  trafficking or compelling  prostitution  crime,  subject  to  reasonable
    45  concerns  for the safety of the defendant, family members of the defend-
    46  ant, or other victims of such  trafficking  or  compelling  prostitution
    47  crime  that  may  be  jeopardized by the bringing of such motion, or for
    48  other reasons consistent with the purpose of this paragraph; and
    49    (ii) official documentation of the defendant's status as a  victim  of
    50  trafficking,  compelling  prostitution  or trafficking in persons at the
    51  time of the offense from a federal, state  or  local  government  agency
    52  shall  create  a  presumption  that the defendant's participation in the
    53  offense was a result of having been a victim of sex trafficking, compel-
    54  ling prostitution or trafficking in persons, but shall not  be  required
    55  for granting a motion under this paragraph[.]; or

        S. 3040--B                         58
     1    (j)  The  judgment  occurred prior to the effective date of this para-
     2  graph and is a conviction for:
     3    (i) an offense as defined by section 221.05 or 221.10 of the penal law
     4  (criminal  possession  of  marihuana  in the fifth degree), as in effect
     5  prior to the effective date of this paragraph, provided that the accusa-
     6  tory instrument that underlies the judgment does not include an  allega-
     7  tion  that  the defendant possessed more than twenty-five grams of mari-
     8  huana; or
     9    (ii) an offense as defined by former section 221.35 of the  penal  law
    10  (criminal sale of marihuana in the fifth degree).
    11    §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
    12  as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
    13  follows:
    14    6.  If  the court grants a motion under paragraph (i) or paragraph (j)
    15  of subdivision one of this section, it  must  vacate  the  judgment  and
    16  dismiss  the  accusatory instrument, and may take such additional action
    17  as is appropriate in the circumstances.
    18    § 40. The criminal procedure law is amended by adding  a  new  section
    19  440.46-a to read as follows:
    20  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    21               offenses.
    22    1.  A person currently serving a sentence for a conviction, whether by
    23  trial or by open or negotiated plea, who would not have been  guilty  of
    24  an  offense  or  who  would  have been guilty of a lesser offense on and
    25  after the effective date of this section had this section been in effect
    26  at the time of his or her  conviction  may  petition  for  a  recall  or
    27  dismissal  of  sentence before the trial court that entered the judgment
    28  of conviction in his or her case to request resentencing or dismissal in
    29  accordance with article twelve hundred twenty-one of the penal law.
    30    2. Upon receiving a motion under subdivision one of this  section  the
    31  court shall presume the movant satisfies the criteria in subdivision one
    32  of this section unless the party opposing the motion proves by clear and
    33  convincing  evidence  that  the movant does not satisfy the criteria. If
    34  the movant satisfies the criteria in subdivision one  of  this  section,
    35  the court shall grant the motion to vacate the sentence or to resentence
    36  because  it  is legally invalid. In exercising its discretion, the court
    37  may consider, but shall not be limited to, the following:
    38    (a) The movant's criminal conviction history, including  the  type  of
    39  crimes  committed,  the extent of injury to victims, the length of prior
    40  prison commitments, and the remoteness of the crimes.
    41    (b) The movant's disciplinary  record  and  record  of  rehabilitation
    42  while incarcerated.
    43    3.  A  person  who  is  serving a sentence and resentenced pursuant to
    44  subdivision two of this section shall  be  given  credit  for  any  time
    45  already  served and shall be subject to supervision for one year follow-
    46  ing completion of his or her time in custody  or  shall  be  subject  to
    47  whatever supervision time he or she would have otherwise been subject to
    48  after   release,   whichever  is  shorter,  unless  the  court,  in  its
    49  discretion, as part of its resentencing order, releases the person  from
    50  supervision.  Such person is subject to parole supervision under section
    51  60.04 of the penal law or post-release supervision under  section  70.45
    52  of  the  penal  law by the designated agency and the jurisdiction of the
    53  court in the county in which the offender is released or resides, or  in
    54  which  an alleged violation of supervision has occurred, for the purpose
    55  of hearing petitions to revoke supervision and impose a term of custody.

        S. 3040--B                         59
     1    4. Under no circumstances may resentencing under this  section  result
     2  in  the  imposition  of a term longer than the original sentence, or the
     3  reinstatement of charges dismissed pursuant to a negotiated plea  agree-
     4  ment.
     5    5.  A  person  who  has completed his or her sentence for a conviction
     6  under the former article two hundred twenty-one of the penal law, wheth-
     7  er by trial or open or negotiated plea, who would not have  been  guilty
     8  of  an  offense or who would have been guilty of a lesser offense on and
     9  after the effective date of this section had this section been in effect
    10  at the time of his or her conviction, may file an application before the
    11  trial court that entered the judgment of conviction in his or  her  case
    12  to  have  the conviction, in accordance with article two hundred twenty-
    13  one of the penal law:
    14    (a) Dismissed because the prior conviction is now legally invalid  and
    15  sealed in accordance with section 160.50 of this chapter;
    16    (b)  Redesignated  (or  "reclassified")  as  a violation and sealed in
    17  accordance with section 160.50 of this chapter; or
    18    (c) Redesignated (reclassified) as a misdemeanor.
    19    6. The court shall presume the petitioner satisfies  the  criteria  in
    20  subdivision  five  unless  the  party opposing the application proves by
    21  clear and convincing evidence that the petitioner does not  satisfy  the
    22  criteria  in subdivision five. Once the applicant satisfies the criteria
    23  in subdivision five, the court shall redesignate (or  "reclassify")  the
    24  conviction  as a misdemeanor, redesignate (reclassify) the conviction as
    25  a violation and seal the conviction, or dismiss and seal the  conviction
    26  as legally invalid under this section had this section been in effect at
    27  the time of his or her conviction.
    28    7. Unless requested by the applicant, no hearing is necessary to grant
    29  or deny an application filed under subdivision five of this section.
    30    8.  Any felony conviction that is vacated and resentenced under subdi-
    31  vision two or designated as a misdemeanor or violation under subdivision
    32  six of this section shall be considered a misdemeanor or  violation  for
    33  all purposes. Any misdemeanor conviction that is vacated and resentenced
    34  under subdivision two of this section or designated as a violation under
    35  subdivision  six of this section shall be considered a violation for all
    36  purposes.
    37    9. If the court that originally sentenced the movant is not available,
    38  the presiding judge shall designate another judge to rule on  the  peti-
    39  tion or application.
    40    10.  Nothing  in  this section is intended to diminish or abrogate any
    41  rights or remedies otherwise available to the petitioner or applicant.
    42    11. Nothing in this and related sections is intended  to  diminish  or
    43  abrogate  the  finality of judgements in any case not falling within the
    44  purview of this section.
    45    12. The provisions of this section shall  apply  equally  to  juvenile
    46  delinquency  adjudications  and  dispositions under section five hundred
    47  one-e of the executive law if the juvenile would not have been guilty of
    48  an offense or would have been guilty of  a  lesser  offense  under  this
    49  section  had  this  section  been  in  effect  at the time of his or her
    50  conviction.
    51    13. The office of  court  administration  shall  promulgate  and  make
    52  available  all necessary forms to enable the filing of the petitions and
    53  applications provided in this section no later than sixty days following
    54  the effective date of this section.

        S. 3040--B                         60
     1    § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
     2  procedure law, as amended by chapter 37 of the laws of 2014, is  amended
     3  to read as follows:
     4    (c)  Criminal  possession  of  a  controlled  substance in the seventh
     5  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
     6  possession  of  a controlled substance in the fifth degree as defined in
     7  section 220.06 of the penal law, criminal  possession  of  a  controlled
     8  substance in the fourth degree as defined in section 220.09 of the penal
     9  law,  criminal  possession of a controlled substance in the third degree
    10  as defined in section 220.16 of the penal law, criminal possession of  a
    11  controlled  substance  in the second degree as defined in section 220.18
    12  of the penal law, criminal possession of a controlled substance  in  the
    13  first  degree  as  defined  in section 220.21 of the penal law, criminal
    14  sale of a controlled substance in the fifth degree as defined in section
    15  220.31 of the penal law, criminal sale of a controlled substance in  the
    16  fourth  degree  as  defined in section 220.34 of the penal law, criminal
    17  sale of a controlled substance in the third degree as defined in section
    18  220.39 of the penal law, criminal sale of a controlled substance in  the
    19  second  degree  as  defined in section 220.41 of the penal law, criminal
    20  sale of a controlled substance in the first degree as defined in section
    21  220.43 of the penal law, criminally possessing a  hypodermic  instrument
    22  as  defined  in  section  220.45  of  the  penal law, criminal sale of a
    23  prescription for a controlled substance or a controlled substance  by  a
    24  practitioner  or  pharmacist  as  defined in section 220.65 of the penal
    25  law, criminal possession of methamphetamine  manufacturing  material  in
    26  the  second degree as defined in section 220.70 of the penal law, crimi-
    27  nal possession of methamphetamine manufacturing material  in  the  first
    28  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
    29  possession of precursors of methamphetamine as defined in section 220.72
    30  of the penal law, unlawful manufacture of methamphetamine in  the  third
    31  degree  as defined in section 220.73 of the penal law, unlawful manufac-
    32  ture of methamphetamine in the  second  degree  as  defined  in  section
    33  220.74  of the penal law, unlawful manufacture of methamphetamine in the
    34  first degree as defined in section 220.75 of  the  penal  law,  unlawful
    35  disposal  of  methamphetamine  laboratory material as defined in section
    36  220.76 of the penal law, operating as a major trafficker as  defined  in
    37  section  220.77  of  the penal law, [criminal possession of marihuana in
    38  the first degree as defined in section 221.30 of the penal law, criminal
    39  sale of marihuana in the first degree as defined in  section  221.55  of
    40  the  penal  law,]  promoting gambling in the second degree as defined in
    41  section 225.05 of the penal law, promoting gambling in the first  degree
    42  as  defined  in  section 225.10 of the penal law, possession of gambling
    43  records in the second degree as defined in section 225.15 of  the  penal
    44  law,  possession  of  gambling records in the first degree as defined in
    45  section 225.20 of the penal law, and possession of a gambling device  as
    46  defined in section 225.30 of the penal law;
    47    § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
    48  9  of  section  1310 of the civil practice law and rules, paragraphs (b)
    49  and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
    50  and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
    51  are amended to read as follows:
    52    (b) on three or more occasions, engaging  in  conduct  constituting  a
    53  violation  of  any  of  the  felonies defined in section 220.09, 220.16,
    54  220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] or 220.43 [or  221.55]
    55  of  the  penal law, which violations do not constitute a single criminal
    56  offense as defined in subdivision one of section 40.10 of  the  criminal

        S. 3040--B                         61
     1  procedure law, or a single criminal transaction, as defined in paragraph
     2  (a)  of  subdivision two of section 40.10 of the criminal procedure law,
     3  and at least one of which resulted in a conviction of such  offense,  or
     4  where  the  accusatory  instrument charges one or more of such felonies,
     5  conviction upon a plea of guilty to a felony  for  which  such  plea  is
     6  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 of the penal law, [or a conviction of a  crimi-
     9  nal  defendant  for  a violation of section 221.30 of the penal law,] or
    10  where the accusatory instrument charges any such felony, conviction upon
    11  a plea of guilty to a felony for which the plea is otherwise  authorized
    12  by  law,  together with evidence which: (i) provides substantial indicia
    13  that the defendant used the real property  to  engage  in  a  continual,
    14  ongoing  course  of  conduct involving the unlawful mixing, compounding,
    15  manufacturing, warehousing, or packaging of  controlled  substances  [or
    16  where  the  conviction is for a violation of section 221.30 of the penal
    17  law, marijuana,] as part of an illegal trade or business for  gain;  and
    18  (ii) establishes, where the conviction is for possession of a controlled
    19  substance  [or where the conviction is for a violation of section 221.30
    20  of the penal law, marijuana], that such possession was with  the  intent
    21  to sell it.
    22    [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
    23  article two hundred twenty or section 221.30  or  221.55  of  the  penal
    24  law.]
    25    9.  "Criminal defendant" means a person who has criminal liability for
    26  a crime defined in [subdivisions] subdivision five [and six  hereof]  of
    27  this  section.  For  purposes  of  this  article,  a person has criminal
    28  liability when [(a)] he has been convicted of a post-conviction  forfei-
    29  ture  crime[, or (b) the claiming authority proves by clear and convinc-
    30  ing evidence that such person has committed an act in violation of arti-
    31  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
    32    § 43. Subdivision 13 of section 89-f of the general business  law,  as
    33  added by chapter 336 of the laws of 1992, is amended to read as follows:
    34    13.  "Serious  offense"  shall  mean any felony involving the offenses
    35  enumerated in the closing paragraph  of  this  subdivision;  a  criminal
    36  solicitation  of  or a conspiracy to commit or an attempt to commit or a
    37  criminal facilitation of a felony involving the offenses  enumerated  in
    38  the  closing paragraph of this subdivision, which criminal solicitation,
    39  conspiracy, attempt or criminal facilitation itself constitutes a felony
    40  or any offense in any other jurisdiction  which  if  committed  in  this
    41  state  would  constitute a felony; any offense in any other jurisdiction
    42  which if committed in this state would constitute a felony provided that
    43  for the purposes of this article, none of the following shall be consid-
    44  ered criminal convictions or reported as  such:  (i)  a  conviction  for
    45  which an executive pardon has been issued pursuant to the executive law;
    46  (ii)  a  conviction  which  has  been vacated and replaced by a youthful
    47  offender finding pursuant to article seven hundred twenty of the  crimi-
    48  nal  procedure  law,  or  the  applicable provisions of law of any other
    49  jurisdiction; or (iii) a conviction  the  records  of  which  have  been
    50  sealed  pursuant  to the applicable provisions of the laws of this state
    51  or of any other jurisdiction; and (iv)  a  conviction  for  which  other
    52  evidence  of successful rehabilitation to remove the disability has been
    53  issued.
    54    Felonies involving: assault, aggravated assault and reckless endanger-
    55  ment pursuant to article one  hundred  twenty;  vehicular  manslaughter,
    56  manslaughter and murder pursuant to article one hundred twenty-five; sex

        S. 3040--B                         62
     1  offenses  pursuant to article one hundred thirty; unlawful imprisonment,
     2  kidnapping or coercion pursuant  to  article  one  hundred  thirty-five;
     3  criminal  trespass  and  burglary pursuant to article one hundred forty;
     4  criminal  mischief,  criminal  tampering  and  tampering with a consumer
     5  product pursuant to article one hundred forty-five;  arson  pursuant  to
     6  article one hundred fifty; larceny and offenses involving theft pursuant
     7  to article one hundred fifty-five; offenses involving computers pursuant
     8  to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
     9  hundred sixty; criminal possession of stolen property pursuant to  arti-
    10  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
    11  article one hundred seventy; involving false written statements pursuant
    12  to article one hundred seventy-five; commercial bribing  and  commercial
    13  bribe  receiving pursuant to article one hundred eighty; criminal imper-
    14  sonation and scheme to defraud pursuant to article one  hundred  ninety;
    15  bribery involving public servants and related offenses pursuant to arti-
    16  cle  two  hundred;  perjury and related offenses pursuant to article two
    17  hundred ten; tampering with a witness, intimidating a victim or  witness
    18  and  tampering  with  physical  evidence pursuant to article two hundred
    19  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
    20  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    21  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    22  220.41, 220.43 and 220.44; criminal sale of [marijuana] marihuana in the
    23  first degree pursuant to [sections] section 221.45[, 221.50 and 221.55];
    24  riot  in  the  first  degree, aggravated harassment in the first degree,
    25  criminal nuisance in the first degree and falsely reporting an  incident
    26  in the second or first degree pursuant to article two hundred forty; and
    27  crimes  against public safety pursuant to article two hundred sixty-five
    28  of the penal law.
    29    § 44. Paragraph (f) of subdivision 2 of section  850  of  the  general
    30  business law is REPEALED.
    31    §  45.  Paragraph  (h)  of subdivision 2 of section 850 of the general
    32  business law, as amended by chapter 812 of the laws of 1980, is  amended
    33  to read as follows:
    34    (h)  Objects, used or designed for the purpose of ingesting, inhaling,
    35  or otherwise introducing [marihuana,] cocaine, [hashish, or hashish oil]
    36  into the human body.
    37    § 46. Paragraph a of subdivision 4-a  of  section  165  of  the  state
    38  finance  law,  as added by chapter 95 of the laws of 2000, is amended to
    39  read as follows:
    40    a. In order  to  advance  specific  economic  goals,  New  York  state
    41  labelled wines, as defined in subdivision [twenty-a] twenty-j of section
    42  three  of  the alcoholic beverage control law, shall have favored source
    43  status for the purposes of procurement in accordance with the provisions
    44  of this subdivision.  Procurement of these New York state labelled wines
    45  shall be exempt from the competitive procurement provisions  of  section
    46  one  hundred  sixty-three of this article and other competitive procure-
    47  ment statutes.  Such exemption shall apply to New  York  state  labelled
    48  wines  as defined in subdivision [twenty-a] twenty-j of section three of
    49  the alcoholic beverage control law produced  by  a  licensed  winery  as
    50  defined in section seventy-six of the alcoholic beverage control law.
    51    § 47. Subdivision 7 of section 995 of the executive law, as amended by
    52  chapter 19 of the laws of 2012, is amended to read as follows:
    53    7.  "Designated  offender"  means  a  person  convicted  of any felony
    54  defined in any chapter of the laws  of  the  state  or  any  misdemeanor
    55  defined  in  the  penal  law  [except that where the person is convicted
    56  under section 221.10 of the penal law, only  a  person  convicted  under

        S. 3040--B                         63

     1  subdivision two of such section, or a person convicted under subdivision
     2  one  of  such  section  who  stands previously convicted of any crime as
     3  defined in subdivision six of section 10.00 of the penal law].
     4    § 48. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
     5  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
     6  56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
     7  laws of 1990, are amended to read as follows:
     8    (b) three or more violations of any of the felonies defined in section
     9  220.09,  220.16,  220.18,  220.21,  220.31,  220.34,   220.39,   220.41,
    10  220.43[,]  or  220.77[,  or 221.55] of this chapter, which violations do
    11  not constitute a single criminal offense as defined in  subdivision  one
    12  of  section  40.10  of  the criminal procedure law, or a single criminal
    13  transaction, as defined in paragraph (a) of subdivision two  of  section
    14  40.10  of the criminal procedure law, and at least one of which resulted
    15  in a conviction of such offense,  or  where  the  accusatory  instrument
    16  charges  one  or more of such felonies, conviction upon a plea of guilty
    17  to a felony for which such plea is otherwise authorized by law; or
    18    (c) a conviction of a  person  for  a  violation  of  section  220.09,
    19  220.16,  220.34[,]  or 220.39[, or 221.30] of this chapter, or where the
    20  accusatory instrument charges any such felony, conviction upon a plea of
    21  guilty to a felony for which the plea is otherwise  authorized  by  law,
    22  together  with evidence which: (i) provides substantial indicia that the
    23  defendant used the real property  to  engage  in  a  continual,  ongoing
    24  course  of  conduct involving the unlawful mixing, compounding, manufac-
    25  turing, warehousing, or packaging of controlled substances [or where the
    26  conviction is for a violation of section 221.30 of this  chapter,  mari-
    27  juana] as part of an illegal trade or business for gain; and (ii) estab-
    28  lishes, where the conviction is for possession of a controlled substance
    29  [or  where  the  conviction is for a violation of section 221.30 of this
    30  chapter, marijuana], that such possession was with the  intent  to  sell
    31  it.
    32    §  49. Paragraph (c) of subdivision 4 of section 509-cc of the vehicle
    33  and traffic law, as amended by chapter 368  of  the  laws  of  2015,  is
    34  amended to read as follows:
    35    (c)  The  offenses referred to in subparagraph (i) of paragraph (b) of
    36  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    37  of this section that result in disqualification for  a  period  of  five
    38  years  shall include a conviction under sections 100.10, 105.13, 115.05,
    39  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    40  125.40,  125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17,
    41  140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06,  220.09,
    42  220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
    43  230.00, 230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20,  235.05,
    44  235.06,  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision two of
    45  section 260.20 and sections  260.25,  265.02,  265.03,  265.08,  265.09,
    46  265.10,  265.12,  265.35 of the penal law or an attempt to commit any of
    47  the aforesaid offenses under section 110.00 of the  penal  law,  or  any
    48  similar  offenses  committed under a former section of the penal law, or
    49  any offenses committed under a former section of  the  penal  law  which
    50  would  constitute violations of the aforesaid sections of the penal law,
    51  or any offenses committed outside  this  state  which  would  constitute
    52  violations of the aforesaid sections of the penal law.
    53    §  50.  The  opening  paragraph  of  paragraph (a) of subdivision 2 of
    54  section 1194 of the vehicle and traffic law, as amended by  chapter  196
    55  of the laws of 1996, is amended to read as follows:

        S. 3040--B                         64
     1    When authorized. Any person who operates a motor vehicle in this state
     2  shall  be deemed to have given consent to a chemical test of one or more
     3  of the following: breath, blood, urine, or saliva, for  the  purpose  of
     4  determining  the  alcoholic  and/or  drug  content, other than marihuana
     5  content  including  but  not limited to tetrahydrocannabinol content, of
     6  the blood provided that such test is administered by or at the direction
     7  of a police officer with respect to a chemical test of breath, urine  or
     8  saliva or, with respect to a chemical test of blood, at the direction of
     9  a police officer:
    10    §  51.  Section 17 of the alcoholic beverage control law is amended by
    11  adding a new subdivision 12 to read as follows:
    12    12. To develop and establish minimum criteria for alcohol or substance
    13  abuse training awareness programs which may be given and administered by
    14  schools; other entities including trade associations whose  members  are
    15  engaged  in  or  involved  in  the  retail  sale of alcoholic beverages;
    16  national and regional franchisors who have granted at least  five  fran-
    17  chises  in  the state which are licensed to sell beer at retail for off-
    18  premises consumption; licensees authorized to sell  alcoholic  beverages
    19  at  retail  for off-premises consumption operating five or more licensed
    20  premises; and persons interested, whether as an individual proprietor or
    21  partner or officer or member of a limited liability company, in five  or
    22  more  licensees  authorized  to  sell  alcoholic beverages at retail for
    23  off-premises consumption. The authority shall provide for  the  issuance
    24  of  certificates of approval to all certified alcohol or substance abuse
    25  training awareness programs. Certificates of approval may be revoked  by
    26  the  authority  for failure to adhere to the authority's rules and regu-
    27  lations. Such rules and regulations shall afford  those  who  have  been
    28  issued  a  certificate of approval an opportunity for a hearing prior to
    29  any determination of whether such certificate should be revoked.
    30    No licensee shall be required to apply for  any  such  certificate  or
    31  renewal  certificate  and  the licensee may voluntarily surrender such a
    32  certificate or renewal certificate at any time. A fee in the  amount  of
    33  nine  hundred  dollars shall be paid to the authority with each applica-
    34  tion for a certificate of approval or renewal certificate.  The authori-
    35  ty shall promptly refund such fee to an applicant whose application  was
    36  denied. Each certificate of approval and renewal thereof shall be issued
    37  for a period of three years. To effectuate the provisions of this subdi-
    38  vision,  the  authority  is  empowered  to require in connection with an
    39  application the submission of such  information  as  the  authority  may
    40  direct;  to  prescribe forms of applications and of all reports which it
    41  deems necessary to be made by any applicant or  certificate  holder;  to
    42  conduct  investigations;  to  require  the maintenance of such books and
    43  records as the authority may direct; and to revoke, cancel,  or  suspend
    44  for  cause any certificate provided for in this subdivision. Each entity
    45  authorized to give and administer an alcohol or substance abuse training
    46  awareness program shall issue certificates of completion to  all  licen-
    47  sees and employees who successfully complete such an approved alcohol or
    48  substance  abuse training awareness program. Such entity shall regularly
    49  transmit to the authority the names, addresses and dates  of  attendance
    50  of  all  the  licensees  and  employees  of  licensees  who successfully
    51  complete an approved  alcohol  or  substance  abuse  training  awareness
    52  program.  Such  transmittal  shall be in a form and manner prescribed by
    53  the authority. The authority shall adopt rules and regulations to effec-
    54  tuate the provisions of this subdivision, including the minimum require-
    55  ments for the curriculum of each such training program and  the  regular
    56  ongoing  training  of  employees  holding  certificates of completion or

        S. 3040--B                         65
     1  renewal certificates.   Such rules and  regulations  shall  include  the
     2  minimum  requirements  for a separate curriculum for licensees and their
     3  employees authorized to sell alcoholic beverages at retail for off-prem-
     4  ises  consumption,  minimum  requirements  for a separate curriculum for
     5  licensees and their employees authorized to sell alcoholic beverages  at
     6  retail  for  on-premises  consumption,  and the form of a certificate of
     7  completion or renewal thereof to be issued in respect to each such  type
     8  of  program. A certificate of completion or renewal thereof issued by an
     9  entity authorized to give and administer an alcohol or  substance  abuse
    10  training awareness program pursuant to this subdivision to licensees and
    11  their  employees  authorized  to  sell alcoholic beverages at retail for
    12  off-premises consumption shall not be invalidated by a change of employ-
    13  ment to another such licensee. A certificate of  completion  or  renewal
    14  thereof issued by an entity authorized to give and administer an alcohol
    15  or  substance abuse training awareness program pursuant to this subdivi-
    16  sion to licensees and  their  employees  authorized  to  sell  alcoholic
    17  beverages at retail for on-premises consumption shall not be invalidated
    18  by  a  change  of employment to another such licensee. Attendance at any
    19  course established pursuant to this section shall be in person,  through
    20  distance learning methods, or through an internet based online program.
    21    §  52.  Subdivision 12 of section 17 of the alcoholic beverage control
    22  law, as amended by chapter 549 of the laws of 2001,  the  closing  para-
    23  graph  as amended by chapter 435 of the laws of 2010, is amended to read
    24  as follows:
    25    12. To develop and establish minimum criteria for alcohol or substance
    26  abuse training awareness programs which may be given and administered by
    27  schools; other entities including trade associations whose  members  are
    28  engaged  in  or  involved  in  the  retail  sale of alcoholic beverages;
    29  national and regional franchisors who have granted at least  five  fran-
    30  chises  in  the state which are licensed to sell beer at retail for off-
    31  premises consumption; licensees authorized to sell  alcoholic  beverages
    32  at  retail  for off-premises consumption operating five or more licensed
    33  premises; and persons interested, whether as an individual proprietor or
    34  partner or officer or member of a limited liability company, in five  or
    35  more  licensees  authorized  to  sell  alcoholic beverages at retail for
    36  off-premises consumption. The authority shall provide for  the  issuance
    37  of  certificates of approval to all certified alcohol or substance abuse
    38  training awareness programs. Certificates of approval may be revoked  by
    39  the  authority  for failure to adhere to the authority's rules and regu-
    40  lations. Such rules and regulations shall afford  those  who  have  been
    41  issued  a  certificate of approval an opportunity for a hearing prior to
    42  any determination of whether such certificate should be revoked.
    43    No licensee shall be required to apply for  any  such  certificate  or
    44  renewal  certificate  and  the licensee may voluntarily surrender such a
    45  certificate or renewal certificate at any time. A fee in the  amount  of
    46  nine  hundred  dollars shall be paid to the authority with each applica-
    47  tion for a certificate of approval or renewal certificate. The authority
    48  shall promptly refund such fee to an  applicant  whose  application  was
    49  denied. Each certificate of approval and renewal thereof shall be issued
    50  for a period of three years. To effectuate the provisions of this subdi-
    51  vision,  the  authority  is  empowered  to require in connection with an
    52  application the submission of such  information  as  the  authority  may
    53  direct;  to  prescribe forms of applications and of all reports which it
    54  deems necessary to be made by any applicant or  certificate  holder;  to
    55  conduct  investigations;  to  require  the maintenance of such books and
    56  records as the authority may direct; to revoke, cancel, or  suspend  for

        S. 3040--B                         66
     1  cause  any  certificate  provided  for  in this subdivision. Each entity
     2  authorized to give and administer an alcohol or substance abuse training
     3  awareness program shall issue certificates of completion to  all  licen-
     4  sees and employees who successfully complete such an approved alcohol or
     5  substance  abuse training awareness program. Such entity shall regularly
     6  transmit to the authority the names, addresses and dates  of  attendance
     7  of  all  the  licensees  and  employees  of  licensees  who successfully
     8  complete an approved  alcohol  or  substance  abuse  training  awareness
     9  program.    Such transmittal shall be in a form and manner prescribed by
    10  the authority. The authority shall adopt rules and regulations to effec-
    11  tuate the provisions of this subdivision, including the minimum require-
    12  ments for the curriculum of each such training program and  the  regular
    13  ongoing  training  of  employees  holding  certificates of completion or
    14  renewal certificates. Such rules and regulations shall include the mini-
    15  mum requirements for a  separate  curriculum  for  licensees  and  their
    16  employees authorized to sell alcoholic beverages at retail for off-prem-
    17  ises  consumption,  minimum  requirements  for a separate curriculum for
    18  licensees and their employees authorized to sell alcoholic beverages  at
    19  retail  for  on-premises  consumption,  and the form of a certificate of
    20  completion or renewal thereof to be issued in respect to each such  type
    21  of  program. A certificate of completion or renewal thereof issued by an
    22  entity authorized to give and administer an alcohol or  substance  abuse
    23  training awareness program pursuant to this subdivision to licensees and
    24  their  employees  authorized  to  sell alcoholic beverages at retail for
    25  off-premises consumption shall not be invalidated by a change of employ-
    26  ment to another such licensee. A certificate of  completion  or  renewal
    27  thereof issued by an entity authorized to give and administer an alcohol
    28  or  substance abuse training awareness program pursuant to this subdivi-
    29  sion to licensees and  their  employees  authorized  to  sell  alcoholic
    30  beverages at retail for on-premises consumption shall not be invalidated
    31  by  a  change  of employment to another such licensee. Attendance at any
    32  course established pursuant to this section shall be in person,  through
    33  distance learning methods, or through an internet based online program.
    34    § 53. Section 150.75 of the criminal procedure law is REPEALED.
    35    §  54.  Subdivision  (a)  of  section  712 of the family court act, as
    36  amended by section 7 of part G of chapter 58 of the  laws  of  2010,  is
    37  amended to read as follows:
    38    (a) "Person in need of supervision". A person less than eighteen years
    39  of  age  who does not attend school in accordance with the provisions of
    40  part one of article sixty-five of the education law or who is incorrigi-
    41  ble, ungovernable  or  habitually  disobedient  and  beyond  the  lawful
    42  control of a parent or other person legally responsible for such child's
    43  care,  or  other  lawful  authority,  or  who violates the provisions of
    44  section [221.05 or] 230.00 of the penal law, or  who  appears  to  be  a
    45  sexually  exploited  child  as  defined  in paragraph (a), (c) or (d) of
    46  subdivision one of section four  hundred  forty-seven-a  of  the  social
    47  services law, but only if the child consents to the filing of a petition
    48  under this article.
    49    §  55. Appropriation.  The sum of five million dollars ($5,000,000) is
    50  hereby appropriated to the New York State Liquor Authority  out  of  any
    51  moneys  in  the  state treasury in the general fund to the credit of the
    52  state purposes account, not otherwise appropriated, and made immediately
    53  available, for the purpose of carrying out the provisions of  this  act.
    54  Such moneys shall be payable on the audit and warrant of the comptroller
    55  on  vouchers certified or approved by the superintendent or the chairman
    56  of the New York State Liquor Authority in the manner prescribed by law.

        S. 3040--B                         67
     1    § 56. Severability. If any provision or term of this act  is  for  any
     2  reason  declared unconstitutional or invalid or ineffective by any court
     3  of competent jurisdiction, such decision shall not affect  the  validity
     4  of  the  effectiveness of the remaining portions of this act or any part
     5  thereof.
     6    §  57. This act shall take effect immediately; provided, however, that
     7  the amendments to section 17 of the alcoholic beverage control law  made
     8  by  section  fifty-one  of  this act shall not affect the expiration and
     9  reversion of such section and shall expire and be deemed repealed there-
    10  with, when upon such date the provisions of section  fifty-two  of  this
    11  act shall take effect.
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