S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7106
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 8, 2019
                                ___________
 
 Introduced  by  M.  of  A.  DenDEKKER  --  read once and referred to the
   Committee on Economic Development
 
 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
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09037-01-9

 A. 7106                             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.
   § 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:
   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. 7106                             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.
   §  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.  Effective immediately, the  addition,
 amendment  and/or  repeal  of  any  rule or regulation necessary for the
 implementation of this act on its effective date are  authorized  to  be
 made and completed on or before such effective date.