S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8441--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             October 9, 2015
                               ___________

Introduced  by M. of A. GJONAJ, MONTESANO -- Multi-Sponsored by -- M. of
  A. BARCLAY, McDONOUGH -- read once and referred to  the  Committee  on
  Economic  Development  --  recommitted  to  the  Committee on Economic
  Development in accordance with Assembly Rule 3, sec.  2  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT to establish a statewide synthetic cannabinoid surrender program
  within the department of health; and to  amend  the  general  business
  law,  the  tax law and the alcoholic beverage control law, in relation
  to prohibiting the sale of synthetic cannabinoids

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    There  is  hereby established, within the department of
health,  a  statewide  synthetic  cannabinoid  surrender  program.  Such
program  shall, for a period of 90 days after the effective date of this
section, in  compliance  with  federal  law  operate  as  the  statewide
synthetic  cannabinoid  surrender  program  whereby  any  individual, at
multiple geographic locations  throughout  the  state,  may  anonymously
surrender  any product containing a synthetic cannabinoid, as defined in
section 399-hh of the general business law. Provided  further,  that  no
surrender  of  a synthetic cannabinoid pursuant to this section shall be
deemed to be a sale for any purpose of law, rule or regulation.
  S 2.  The general business law is amended  by  adding  a  new  section
399-hh to read as follows:
  S  399-HH.  SALE OR DISTRIBUTION OF SYNTHETIC CANNABINOID; PROHIBITED.
1. FOR THE PURPOSES OF THIS SECTION, "SYNTHETIC CANNABINOID"  MEANS  ANY
CHEMICAL  COMPOUND  THAT  IS  A  CANNABINOID  RECEPTOR AGONIST AND SHALL
INCLUDE, BUT NOT BE LIMITED TO, ANY MATERIAL, COMPOUND, MIXTURE OR PREP-
ARATION THAT IS NOT DESIGNATED AS A  CONTROLLED  SUBSTANCE  PURSUANT  TO
SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11842-03-6

              

A. 8441--A                          2

  2.  NO  PERSON,  FIRM,  CORPORATION, PARTNERSHIP, ASSOCIATION, LIMITED
LIABILITY COMPANY OR OTHER ENTITY SHALL SELL, OFFER FOR SALE, DISTRIBUTE
OR GIVE AWAY, FOR RETAIL, WHOLESALE OR PROMOTIONAL PURPOSES ANY SYNTHET-
IC CANNABINOID.
  3.  ANY  PERSON,  FIRM, CORPORATION, PARTNERSHIP, ASSOCIATION, LIMITED
LIABILITY COMPANY OR OTHER ENTITY THAT IS  FOUND  BY  A  LOCAL  CRIMINAL
COURT,  AS DEFINED IN SUBDIVISION THREE OF SECTION 10.10 OF THE CRIMINAL
PROCEDURE LAW, TO HAVE VIOLATED THE PROVISIONS  OF  SUBDIVISION  TWO  OF
THIS  SECTION  SHALL  BE  SUBJECT  TO  A  CIVIL  PENALTY OF TWO THOUSAND
DOLLARS; PROVIDED, HOWEVER, THAT UPON A FINDING OF A  SECOND  OR  SUBSE-
QUENT  VIOLATION  WITHIN ANY PERIOD OF FIVE YEARS, THE VIOLATOR SHALL BE
SUBJECT TO A CIVIL PENALTY  OF  FIVE  THOUSAND  DOLLARS;  AND  PROVIDED,
FURTHER,  THAT  UPON A FINDING OF A THIRD OR SUBSEQUENT VIOLATION WITHIN
ANY PERIOD OF FIVE YEARS, THE COURT SHALL PROVIDE NOTICE THEREOF TO  THE
COMMISSIONER  OF  TAXATION  AND FINANCE, THE DIVISION OF THE LOTTERY AND
THE STATE LIQUOR AUTHORITY, AND THE VIOLATOR SHALL  BE  PROHIBITED  FROM
SELLING  CIGARETTES AND TOBACCO PRODUCTS, LOTTERY TICKETS, AND ALCOHOLIC
BEVERAGES FOR A PERIOD OF FIVE YEARS.
  S 3. Paragraphs (e) and (f) of subdivision 2 of section 480 of the tax
law, as amended by chapter 744 of the laws of 1990, are  amended  and  a
new paragraph (g) is added to read as follows:
  (e)  Any controlling person of such applicant has committed any of the
acts specified in subdivision three of this section within the preceding
five years, [or]
  (f) Such applicant or any controlling person has been  finally  deter-
mined  to have violated any of the provisions of this article or article
twenty-A of this chapter, or any rule or regulation adopted pursuant  to
this article or article twenty-A of this chapter[.], OR
  (G)  SUCH  APPLICANT  OR ANY CONTROLLING PERSON HAS BEEN DETERMINED TO
HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF
THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A  PERIOD  OF  FIVE
YEARS;  IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 4. Subparagraphs (iii) and (iv) of paragraph (b) of subdivision 3 of
section 480 of the tax law, subparagraph (iii) as added by  chapter  860
of  the  laws  of 1987 and subparagraph (iv) as amended by chapter 61 of
the laws of 1989, are amended and a new subparagraph  (v)  is  added  to
read as follows:
  (iii) Has impersonated any person represented to be a wholesale dealer
under this article but not in fact licensed under this section, [or]
  (iv) Has knowingly aided and abetted the sale of cigarettes or tobacco
products by a person which such licensee or controlling person knows (A)
has  not  been  licensed by the commissioner of taxation and finance and
(B) is a wholesale dealer pursuant to the terms of subdivision eight  of
section four hundred seventy of this chapter[.], OR
  (V)  HAS  BEEN  DETERMINED TO HAVE VIOLATED SUBDIVISION TWO OF SECTION
THREE HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR  MORE
TIMES DURING A PERIOD OF FIVE YEARS; IN SUCH CASE THE VIOLATOR'S LICENSE
SHALL BE CANCELLED OR SUSPENDED FOR A PERIOD OF FIVE YEARS.
  S 5. Subdivision a of section 1605 of the tax law, as amended by chap-
ter 217 of the laws of 2011, is amended to read as follows:
  a.  The  division  may  license as agents to sell lottery tickets such
persons as in its opinion will best  serve  public  convenience,  except
that  no  license  shall  be  issued to any person to engage in business
exclusively as a lottery sales agent; AND  PROVIDED,  FURTHER,  THAT  NO
LICENSE  SHALL  BE  ISSUED TO ANY PERSON WHO HAS BEEN DETERMINED TO HAVE

A. 8441--A                          3

VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF  THE
GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE YEARS;
IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD OF FIVE
YEARS  AFTER  THE  LAST  SUCH  VIOLATION.  The division may license such
persons as in its opinion are suitable to participate in  video  lottery
gaming pursuant to section sixteen hundred seventeen-a of this article.
  S  6.  Section 1607 of the tax law is amended by adding a new subdivi-
sion i to read as follows:
  I. THREE OR MORE  VIOLATIONS  OF  SUBDIVISION  TWO  OF  SECTION  THREE
HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, WITHIN ANY PERIOD OF
FIVE  YEARS,  IN  WHICH  CASE, THE DIVISION SHALL SUSPEND THE VIOLATOR'S
LICENSE FOR A PERIOD OF FIVE YEARS.
  S 7. Section 105 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4 to read as follows:
  4.  NO  PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR OFF-PREMISES CONSUMPTION, WHO  HAS  BEEN  DETER-
MINED  TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-
NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD
OF FIVE YEARS; IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A
PERIOD OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 8. Section 106 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4-b to read as follows:
  4-B. NO PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR ON-PREMISES CONSUMPTION, WHO HAS BEEN DETERMINED
TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH
OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE
YEARS;  IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 9. Section 118 of the alcoholic beverage control law is  amended  by
adding a new subdivision 1-a to read as follows:
  1-A.  A  LICENSE  OR  PERMIT  ISSUED PURSUANT TO THIS CHAPTER SHALL BE
SUSPENDED FOR A PERIOD OF FIVE YEARS WHEN THE HOLDER  THEREOF  HAS  BEEN
DETERMINED  TO  HAVE  VIOLATED  SUBDIVISION TWO OF SECTION THREE HUNDRED
NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A
PERIOD OF FIVE YEARS.
  S 10. This act shall take effect on  the  one  hundred  eightieth  day
after  it  shall  have  become a law; provided, however, that, effective
immediately, any  actions  necessary  to  implement  the  provisions  of
section  one  of  this  act  on  its  effective  date are authorized and
directed to be completed on or before such date.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8441--B

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             October 9, 2015
                               ___________

Introduced  by  M.  of A. GJONAJ, MONTESANO, PICHARDO, RODRIGUEZ, MAYER,
  WALKER, COOK, BENEDETTO, RAIA, McLAUGHLIN, GRAF, RA,  GALEF,  RUSSELL,
  COLTON,  HYNDMAN,  BLAKE,  CURRAN,  HOOPER, PEOPLES-STOKES, PALMESANO,
  ARROYO, ORTIZ, STIRPE --  Multi-Sponsored  by  --  M.  of  A.  ABBATE,
  BARCLAY,  CRESPO,  CROUCH,  DUPREY,  McDONOUGH, OAKS, ROBINSON -- read
  once and referred to the Committee on Economic Development  --  recom-
  mitted  to  the  Committee  on Economic Development in accordance with
  Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered
  reprinted as amended  and  recommitted  to  said  committee  --  again
  reported  from  said  committee  with amendments, ordered reprinted as
  amended and recommitted to said committee

AN ACT to establish a statewide synthetic cannabinoid surrender  program
  within  the  department  of  health; and to amend the general business
  law, the tax law and the alcoholic beverage control law,  in  relation
  to prohibiting the sale of synthetic cannabinoids

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.   There is hereby established,  within  the  department  of
health,  a  statewide  synthetic  cannabinoid  surrender  program.  Such
program shall, for a period of 90 days after the effective date of  this
section,  in  compliance  with  federal  law  operate  as  the statewide
synthetic cannabinoid  surrender  program  whereby  any  individual,  at
multiple  geographic  locations  throughout  the  state, may anonymously
surrender to the department of health any product containing a synthetic
cannabinoid, as defined in section 399-hh of the general  business  law.
Provided  further, that no surrender of a synthetic cannabinoid pursuant
to this section shall be deemed to be a sale for  any  purpose  of  law,
rule or regulation.
  S  2.    The  general  business law is amended by adding a new section
399-hh to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11842-07-6

              

A. 8441--B                          2

  S 399-HH. SALE OR DISTRIBUTION OF SYNTHETIC  CANNABINOID;  PROHIBITED.
1.  FOR  THE PURPOSES OF THIS SECTION, "SYNTHETIC CANNABINOID" MEANS ANY
CHEMICAL COMPOUND THAT IS  A  CANNABINOID  RECEPTOR  AGONIST  AND  SHALL
INCLUDE, BUT NOT BE LIMITED TO, ANY MATERIAL, COMPOUND, MIXTURE OR PREP-
ARATION  THAT  IS  NOT  DESIGNATED AS A CONTROLLED SUBSTANCE PURSUANT TO
SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
  2. NO PERSON, FIRM,  CORPORATION,  PARTNERSHIP,  ASSOCIATION,  LIMITED
LIABILITY COMPANY OR OTHER ENTITY SHALL SELL, OFFER FOR SALE, DISTRIBUTE
OR GIVE AWAY, FOR RETAIL, WHOLESALE OR PROMOTIONAL PURPOSES ANY SYNTHET-
IC CANNABINOID.
  3.  ANY  PERSON,  FIRM, CORPORATION, PARTNERSHIP, ASSOCIATION, LIMITED
LIABILITY COMPANY OR OTHER ENTITY THAT IS  FOUND  BY  A  LOCAL  CRIMINAL
COURT,  AS DEFINED IN SUBDIVISION THREE OF SECTION 10.10 OF THE CRIMINAL
PROCEDURE LAW, TO HAVE VIOLATED THE PROVISIONS  OF  SUBDIVISION  TWO  OF
THIS  SECTION  SHALL  BE  SUBJECT  TO  A  CIVIL  PENALTY OF TWO THOUSAND
DOLLARS; PROVIDED, HOWEVER, THAT UPON A FINDING OF A  SECOND  OR  SUBSE-
QUENT  VIOLATION  WITHIN ANY PERIOD OF FIVE YEARS, THE VIOLATOR SHALL BE
SUBJECT TO A CIVIL PENALTY  OF  FIVE  THOUSAND  DOLLARS;  AND  PROVIDED,
FURTHER,  THAT  UPON A FINDING OF A THIRD OR SUBSEQUENT VIOLATION WITHIN
ANY PERIOD OF FIVE YEARS, THE COURT SHALL PROVIDE NOTICE THEREOF TO  THE
COMMISSIONER  OF  TAXATION  AND FINANCE, THE DIVISION OF THE LOTTERY AND
THE STATE LIQUOR AUTHORITY, AND THE VIOLATOR SHALL  BE  PROHIBITED  FROM
SELLING  CIGARETTES AND TOBACCO PRODUCTS, LOTTERY TICKETS, AND ALCOHOLIC
BEVERAGES FOR A PERIOD OF FIVE YEARS.
  S 3. Paragraphs (e) and (f) of subdivision 2 of section 480 of the tax
law, as amended by chapter 744 of the laws of 1990, are  amended  and  a
new paragraph (g) is added to read as follows:
  (e)  Any controlling person of such applicant has committed any of the
acts specified in subdivision three of this section within the preceding
five years, [or]
  (f) Such applicant or any controlling person has been  finally  deter-
mined  to have violated any of the provisions of this article or article
twenty-A of this chapter, or any rule or regulation adopted pursuant  to
this article or article twenty-A of this chapter[.], OR
  (G)  SUCH  APPLICANT  OR ANY CONTROLLING PERSON HAS BEEN DETERMINED TO
HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF
THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A  PERIOD  OF  FIVE
YEARS;  IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 4. Subparagraphs (iii) and (iv) of paragraph (b) of subdivision 3 of
section 480 of the tax law, subparagraph (iii) as added by  chapter  860
of  the  laws  of 1987 and subparagraph (iv) as amended by chapter 61 of
the laws of 1989, are amended and a new subparagraph  (v)  is  added  to
read as follows:
  (iii) Has impersonated any person represented to be a wholesale dealer
under this article but not in fact licensed under this section, [or]
  (iv) Has knowingly aided and abetted the sale of cigarettes or tobacco
products by a person which such licensee or controlling person knows (A)
has  not  been  licensed by the commissioner of taxation and finance and
(B) is a wholesale dealer pursuant to the terms of subdivision eight  of
section four hundred seventy of this chapter[.], OR
  (V)  HAS  BEEN  DETERMINED TO HAVE VIOLATED SUBDIVISION TWO OF SECTION
THREE HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR  MORE
TIMES DURING A PERIOD OF FIVE YEARS; IN SUCH CASE THE VIOLATOR'S LICENSE
SHALL BE CANCELLED OR SUSPENDED FOR A PERIOD OF FIVE YEARS.

A. 8441--B                          3

  S 5. Subdivision a of section 1605 of the tax law, as amended by chap-
ter 217 of the laws of 2011, is amended to read as follows:
  a.  The  division  may  license as agents to sell lottery tickets such
persons as in its opinion will best  serve  public  convenience,  except
that  no  license  shall  be  issued to any person to engage in business
exclusively as a lottery sales agent; AND  PROVIDED,  FURTHER,  THAT  NO
LICENSE  SHALL  BE  ISSUED TO ANY PERSON WHO HAS BEEN DETERMINED TO HAVE
VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF  THE
GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE YEARS;
IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD OF FIVE
YEARS  AFTER  THE  LAST  SUCH  VIOLATION.  The division may license such
persons as in its opinion are suitable to participate in  video  lottery
gaming pursuant to section sixteen hundred seventeen-a of this article.
  S  6.  Section 1607 of the tax law is amended by adding a new subdivi-
sion i to read as follows:
  I. THREE OR MORE  VIOLATIONS  OF  SUBDIVISION  TWO  OF  SECTION  THREE
HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, WITHIN ANY PERIOD OF
FIVE  YEARS,  IN  WHICH  CASE, THE DIVISION SHALL SUSPEND THE VIOLATOR'S
LICENSE FOR A PERIOD OF FIVE YEARS.
  S 7. Section 105 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4 to read as follows:
  4.  NO  PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR OFF-PREMISES CONSUMPTION, WHO  HAS  BEEN  DETER-
MINED  TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-
NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD
OF FIVE YEARS; IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A
PERIOD OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 8. Section 106 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4-b to read as follows:
  4-B. NO PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR ON-PREMISES CONSUMPTION, WHO HAS BEEN DETERMINED
TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH
OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE
YEARS;  IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 9. Section 118 of the alcoholic beverage control law is  amended  by
adding a new subdivision 1-a to read as follows:
  1-A.  A  LICENSE  OR  PERMIT  ISSUED PURSUANT TO THIS CHAPTER SHALL BE
SUSPENDED FOR A PERIOD OF FIVE YEARS WHEN THE HOLDER  THEREOF  HAS  BEEN
DETERMINED  TO  HAVE  VIOLATED  SUBDIVISION TWO OF SECTION THREE HUNDRED
NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A
PERIOD OF FIVE YEARS.
  S 10. Construction with other laws.  Nothing  in  this  act  shall  be
construed to limit or restrict any municipality from enacting or enforc-
ing  a  local  law  or ordinance governing a license issued by a munici-
pality where such business was found to  have  unlawfully  manufactured,
distributed or sold a synthetic cannabinoid or synthetic phenthylamine.
  S  11.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law;  provided,  however,  that,  effective
immediately,  any  actions  necessary  to  implement  the  provisions of
section one of this  act  on  its  effective  date  are  authorized  and
directed to be completed on or before such date.