NY State Senate Bill 2023-S2177

Current Bill Status - In Senate Committee Codes Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to codes
Jan 19, 2023	referred to codes

co-Sponsors

2023-S2177 (ACTIVE) - Details

See Assembly Version of this Bill:: A4220
Current Committee:: Senate Codes
Law Section:: Penal Law
Laws Affected:: Amd §§222.50, 222.55 & 222.60, Pen L; amd §132, Cannabis L
Versions Introduced in 2021-2022 Legislative Session:: S9365, A9815

2023-S2177 (ACTIVE) - Summary

Includes certain acts and subsequent penalties in the criminal sale of cannabis.

2023-S2177 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2177

SPONSOR: O'MARA
 
TITLE OF BILL:

An act to amend the penal law and the cannabis law, in relation to
including certain acts and subsequent penalties in the criminal sale of
cannabis

 
PURPOSE:

The purpose of this bill is to define unlawful activities of persons
utilizing commercial establishments as a front to distribute cannabis in
violation of the Cannabis Control Law, and to impose civil penalties
against these entities for initial and recurrent violations.

 
SUMMARY OF PROVISIONS:

Section 1: Adds a new sub-division 3 to section 222.50 of the penal law
to prohibit "any person, while employed or operating a commercial estab-
lishment, store, club, or facility, who knowingly and unlawfully sells,
transfers, gifts or trades cannabis without appropriate license or

authority under the cannabis law. Any person convicted under this subdi-
vision shall act to preclude the person from seeking, qualifying or
receiving any permit, license or authority to perform any activities
under the cannabis law."

Section 2: Adds a new sub-division 3 to section 222.55 of the penal law
to prohibit "any person, while employed or operating a commercial estab-
lishment, store, club, or facility, who knowingly and unlawfully sells,
transfers, gifts or trades three or more ounces of cannabis without
appropriate license or authority under the cannabis law. Any person
convicted under this subdivision shall act to preclude the person from
seeking, qualifying or receiving any permit, license or authority to
perform any activity under the cannabis law".

Section 3: Adds a new sub-division 2 to section 222.60 of the penal law
to prohibit "any person,while employed or operating a commercial estab-
lishment, store, club, or facility, who knowingly and unlawfully sells,
transfers, gifts or trades sixteen or more ounces of cannabis without
appropriate license or authority under the cannabis law. Any person
convicted under this sub-division shall act to preclude the person from
seeking, qualifying or receiving any permit, license or authority to
perform any activities under the cannabis law".

Section 4: Adds a new sub-division 2 to section 132 of the cannabis law
to impose civil penalties against commercial establishments, stores,
clubs, or facilities that "knowingly and unlawfully sells, transfers,
gifts or trades any amount of cannabis without an appropriate license or
authority". The civil penalties shall be payable to the office of canna-
bis management, who shall be required to remit such payments to the
county in which the violating establishment is located.

 
JUSTIFICATION:

Since New York State has legalized the recreational use of cannabis,
certain conmiercial establishments, known as "sticker stores," have used
their businesses as a front to sell or gift cannabis without the requi-
site lawful authority, or permission from the State. Sticker stores have
taken advantage of what some consider a "loophole" in the state cannabis
law because the law's language does not expressly prohibit the "gifting"
of cannabis products to individuals. To get around this "loophole,"
these establishments sell a, number of inexpensive items, such as stick-
ers, at a substantially inflated price and then provide marijuana as a
"free gift" along with their purchase. Despite enforcement actions taken
by the Office of Cannabis Management, these stores continue to violate
the law with minimal consequences. This proposal would make clear that
no such "loophole" exists and would empower the State to prosecute these
individuals both criminally and civilly in order to deter businesses
from participating in these unlawful activities. Further, any civil
penalties collected by the Office of Cannabis Management would be remit-
ted to the county of the violating establishment.

 
LEGISLATIVE HISTORY:

2022: S9365

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2023-S2177 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2177
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced  by  Sen.  O'MARA -- read twice and ordered printed, and when
   printed to be committed to the Committee on Codes
 
 AN ACT to amend the penal law and  the  cannabis  law,  in  relation  to
   including  certain  acts and subsequent penalties in the criminal sale
   of cannabis

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 222.50 of the penal law, as added by chapter 92 of
 the laws of 2021, is amended to read as follows:
 § 222.50 Criminal sale of cannabis in the third degree.
   A person is guilty of criminal sale of cannabis in  the  third  degree
 when:
   1.  he or she knowingly and unlawfully sells more than three ounces of
 cannabis or more than twenty-four grams of concentrated cannabis; or
   2. being twenty-one years of age or older, he  or  she  knowingly  and
 unlawfully  sells  or  gives, or causes to be given or sold, cannabis or
 concentrated cannabis to a person less than  twenty-one  years  of  age;
 except  that  in any prosecution under this subdivision, it is a defense
 that the defendant was less than three years older than the person under
 the age of twenty-one at the time of the offense. This subdivision shall
 not apply to designated caregivers, practitioners, employees of a regis-
 tered organization or  employees  of  a  designated  caregiver  facility
 acting in compliance with article three of the cannabis law[.]; OR
   3. ANY PERSON, WHILE EMPLOYED OR OPERATING A COMMERCIAL ESTABLISHMENT,
 STORE, CLUB, OR FACILITY, WHO KNOWINGLY AND UNLAWFULLY SELLS, TRANSFERS,
 GIFTS  OR  TRADES  CANNABIS  WITHOUT AN APPROPRIATE LICENSE OR AUTHORITY
 UNDER THE CANNABIS LAW. ANY  PERSON  CONVICTED  UNDER  THIS  SUBDIVISION
 SHALL  ACT TO PRECLUDE SUCH PERSON FROM SEEKING, QUALIFYING OR RECEIVING
 ANY PERMIT, LICENSE OR AUTHORITY TO PERFORM  ANY  ACTIVITIES  UNDER  THE
 CANNABIS LAW.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05444-01-3
 S. 2177                             2

 
   Criminal  sale  of cannabis in the third degree is a class A misdemea-
 nor.
   §  2.  Section  222.55 of the penal law, as added by chapter 92 of the
 laws of 2021, is amended to read as follows:
 § 222.55 Criminal sale of cannabis in the second degree.
   A person is guilty of criminal sale of cannabis in the  second  degree
 when:
   1.  he  or she knowingly and unlawfully sells more than sixteen ounces
 of cannabis or more than five ounces of concentrated cannabis; or
   2. being twenty-one years of age or older, he  or  she  knowingly  and
 unlawfully  sells  or  gives,  or  causes to be given or sold, more than
 three ounces of cannabis or more than twenty-four grams of  concentrated
 cannabis  to  a person less than eighteen years of age. This subdivision
 shall not apply to designated caregivers, practitioners, employees of  a
 registered  organization or employees of a designated caregiver facility
 acting in compliance with article three of the cannabis law[.]; OR
   3. ANY PERSON, WHILE EMPLOYED OR OPERATING A COMMERCIAL ESTABLISHMENT,
 STORE, CLUB, OR FACILITY, WHO KNOWINGLY AND UNLAWFULLY SELLS, TRANSFERS,
 GIFTS OR TRADES CANNABIS WITHOUT AN  APPROPRIATE  LICENSE  OR  AUTHORITY
 UNDER  THE  CANNABIS  LAW.  ANY  PERSON CONVICTED UNDER THIS SUBDIVISION
 SHALL ACT TO PRECLUDE SUCH PERSON FROM SEEKING, QUALIFYING OR  RECEIVING
 ANY  PERMIT,  LICENSE  OR  AUTHORITY TO PERFORM ANY ACTIVITIES UNDER THE
 CANNABIS LAW.
   Criminal sale of cannabis in the second degree is a class E felony.
   § 3. Section 222.60 of the penal law, as added by chapter  92  of  the
 laws of 2021, is amended to read as follows:
 § 222.60 Criminal sale of cannabis in the first degree.
   A  person  is  guilty of criminal sale of cannabis in the first degree
 when:
   1. he or she knowingly and unlawfully sells more than five  pounds  of
 cannabis or more than two pounds of concentrated cannabis; OR
   2. ANY PERSON, WHILE EMPLOYED OR OPERATING A COMMERCIAL ESTABLISHMENT,
 STORE, CLUB, OR FACILITY, WHO KNOWINGLY AND UNLAWFULLY SELLS, TRANSFERS,
 GIFTS  OR  TRADES  CANNABIS  WITHOUT AN APPROPRIATE LICENSE OR AUTHORITY
 UNDER THE CANNABIS LAW. ANY  PERSON  CONVICTED  UNDER  THIS  SUBDIVISION
 SHALL  ACT TO PRECLUDE SUCH PERSON FROM SEEKING, QUALIFYING OR RECEIVING
 ANY PERMIT, LICENSE OR AUTHORITY TO PERFORM  ANY  ACTIVITIES  UNDER  THE
 CANNABIS LAW.
   Criminal sale of cannabis in the first degree is a class D felony.
   § 4. Section 132 of the cannabis law is amended to read as follows:
   §  132.  Penalties  for  violation  of this chapter. 1. Any person who
 cultivates for sale or sells cannabis,  cannabis  products,  or  medical
 cannabis  without  having an appropriate registration, license or permit
 therefor, or whose registration, license, or permit  has  been  revoked,
 surrendered  or  cancelled,  may be subject to prosecution in accordance
 with article two hundred twenty-two of the penal law.
   2. ANY COMMERCIAL ESTABLISHMENT, STORE, CLUB, OR FACILITY, THAT  KNOW-
 INGLY  AND  UNLAWFULLY  SELLS,  TRANSFERS, GIFTS OR TRADES ANY AMOUNT OF
 CANNABIS WITHOUT AN APPROPRIATE LICENSE OR AUTHORITY UNDER THIS  CHAPTER
 SHALL  BE  SUBJECT  TO  A  CIVIL  PENALTY  OF NOT MORE THAN TEN THOUSAND
 DOLLARS FOR A  FIRST  VIOLATION;  NOT  MORE  THAN  TWENTY-FIVE  THOUSAND
 DOLLARS FOR A SECOND VIOLATION; AND NOT MORE THAN FIFTY THOUSAND DOLLARS
 FOR  A  THIRD  VIOLATION  AND  EACH SUBSEQUENT VIOLATION THEREAFTER. THE
 CIVIL PENALTY SHALL BE PAYABLE TO THE OFFICE OF CANNABIS MANAGEMENT, WHO
 SHALL BE REQUIRED TO REMIT SUCH PAYMENTS TO  THE  COUNTY  IN  WHICH  THE
 VIOLATING ESTABLISHMENT IS LOCATED.
 S. 2177                             3
 
   3. Any registered organization or licensee, who has received notifica-
 tion  of a registration or license suspension pursuant to the provisions
 of this chapter, who sells cannabis, cannabis products, medical cannabis
 or cannabinoid hemp or hemp extract during the suspension period,  shall
 be  subject to prosecution as provided in article two hundred twenty-two
 of the penal law, and upon conviction thereof under this section may  be
 subject to a civil penalty of not more than five thousand dollars.
   [3.]  4.  Any  person  who  shall  knowingly make any materially false
 statement in the application for a registration,  license  or  a  permit
 under this chapter may be subject to license or registration suspension,
 revocation,  or  denial  subject  to  the board, and may be subject to a
 civil penalty of not more than two thousand dollars.
   [4.] 5. Any person  under  the  age  of  twenty-one  found  to  be  in
 possession  of  cannabis  or  cannabis  products  who is not a certified
 patient pursuant to article three of this chapter shall be in  violation
 of this chapter and shall be subject to the following penalty:
   (a)  (i)  The  person  shall be subject to a civil penalty of not more
 than fifty dollars. The civil penalty shall be payable to the office  of
 cannabis management.
   (ii)  Any  identifying  information provided by the enforcement agency
 for the purpose of facilitating payment of the civil penalty  shall  not
 be  shared or disclosed under any circumstances with any other agency or
 law enforcement division.
   (b) The person shall, upon payment of the required civil  penalty,  be
 provided  with  information  related  to  the dangers of underage use of
 cannabis and information related to cannabis use disorder by the office.
   (c) The issuance and subsequent payment of such civil penalty shall in
 no way qualify as a criminal accusation, admission of guilt, or a crimi-
 nal conviction and shall in no way operate as a disqualification of  any
 such  person from holding public office, attaining public employment, or
 as a forfeiture of any right or privilege.
   [5.] 6. Cannabis recovered from individuals who are  found  to  be  in
 violation of this chapter may after notice and opportunity for a hearing
 be considered a nuisance and shall be disposed of or destroyed.
   [6.]  7.  After due notice and opportunity to be heard, as established
 by rules and regulations, nothing in this  section  shall  prohibit  the
 board from suspending, revoking, or denying a license, permit, registra-
 tion,  or  application  in  addition to the penalties prescribed in this
 section.
   § 5. This act shall take effect immediately.

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Senate Bill S2177

Sponsored By

Current Bill Status - In Senate Committee Codes Committee

co-Sponsors

2023-S2177 (ACTIVE) - Details

2023-S2177 (ACTIVE) - Summary

2023-S2177 (ACTIVE) - Sponsor Memo

2023-S2177 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S2177

Share this bill

Sponsored By

Thomas F. O'Mara

Current Bill Status - In Senate Committee Codes Committee

co-Sponsors

George M. Borrello

2023-S2177 (ACTIVE) - Details

2023-S2177 (ACTIVE) - Summary

2023-S2177 (ACTIVE) - Sponsor Memo

2023-S2177 (ACTIVE) - Bill Text download pdf

Comments