S T A T E O F N E W Y O R K
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5619--A
Cal. No. 222
2017-2018 Regular Sessions
I N S E N A T E
April 20, 2017
___________
Introduced by Sens. KLEIN, ALCANTARA, AVELLA, VALESKY -- read twice and
ordered printed, and when printed to be committed to the Committee on
Consumer Protection -- recommitted to the Committee on Consumer
Protection in accordance with Senate Rule 6, sec. 8 -- reported favor-
ably from said committee, ordered to first and second report, ordered
to a third reading, amended and ordered reprinted, retaining its place
in the order of third reading
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.
§ 2. The general business law is amended by adding a new section 399-
hh to read as follows:
§ 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10502-02-8
S. 5619--A 2
SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW; PROVIDED,
HOWEVER, THAT THE TERM "SYNTHETIC CANNABINOID" SHALL NOT INCLUDE ANY
PRODUCT APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A
DRUG OR MEDICAL DEVICE, OR APPROVED BY THE COMMISSIONER OF HEALTH PURSU-
ANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE 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.
§ 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.
§ 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.] ARTICLE, 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.
§ 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:
S. 5619--A 3
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.
§ 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.
§ 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.
§ 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.
§ 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.
§ 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.
§ 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.
