NY State Senate Bill 2023-S8847

Senate Bill S8847

2023-2024 Legislative Session

Relates to the revocation of certain licenses for the possession or sale of illicit cannabis in violation of the cannabis law

download bill text pdf

Current Bill Status - In Senate Committee Budget And Revenue 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
Mar 20, 2024	referred to budget and revenue

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2023-S8847 (ACTIVE) - Details

See Assembly Version of this Bill:: A9520
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§480-a & 1607, Tax L; amd §118, ABC L

2023-S8847 (ACTIVE) - Summary

Provides for the revocation of licenses to sell cigarettes, tobacco products, alcohol and lottery tickets for the possession or sale of illicit cannabis in violation of the cannabis law.

2023-S8847 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8847

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the tax law and the alcoholic beverage control law, in
relation to the suspension or revocation of certain licenses for
violations of the cannabis law

 
PURPOSE:

This bill would permit the revocation of a tobacco, liquor or gaming
license of a business found to have sold or possessed illicit cannabis.

 
SUMMARY OF PROVISIONS:

Section 1. § 480-a(4)(a) of the tax law is amended to include if a
retailer or an agent under this article possesses illicit cannabis as
defined in § 136 of the cannabis law or found to be in violation of
subdivision 1 of § 125 of the cannabis law.

Section 2. § 118(1) of the alcohol beverage control law is amended to

include possession or sale of illicit cannabis as defined by § 136 of
the cannabis law.

Section 3. § 1607 of the tax law is amended to add a new subdivision to
include a violation of § 136 of the cannabis law provided that a license
shall be revoked upon a finding that such licensee possessed or sold
illicit cannabis, as defined by § 136 of the cannabis law.

Section 4. Effective date.

 
JUSTIFICATION:

Illicit cannabis that is sold at tobacco retailers, smoke shops, bodegas
and delis undermine the legitimate and regulated adult-use cannabis
market in New York State. The proliferation and brazenness of this ille-
gal activity has resulted in targeted inspections of businesses by law
enforcement, the imposition of fines on offenders, arrests, and the
seizure of illicit cannabis.

While additional enforcement authority under existing cannabis law
allows for emergency relief to initiate civil proceedings for a perma-
nent injunction against the owner, lessor, and lessee of a building or
premises where illicit cannabis sales have taken place, the persistence
of businesses that continue to engage in this illegal behavior, some
opening up shortly after a targeted inspection, frustrates many through-
out our communities and remains among the top quality of life problems
in New York.

This bill would permit the revocation of a tobacco, liquor or gaming
license of a business that is found to have sold or possessed illicit
cannabis. It sends a clear message to tobacco retailers, smoke shops,
bodegas and delis that the consequences for their illegal actions are
not limited to fines, arrests or seizures of illicit cannabis but also
would directly impact their privilege to possess a tobacco, liquor or
gaming license and ultimately their livelihoods.

 
LEGISLATIVE HISTORY:
New bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S8847 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8847
 
                             I N  S E N A T E
 
                              March 20, 2024
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law and the alcoholic beverage control  law,  in
   relation  to  the  suspension  or  revocation  of certain licenses for
   violations of the cannabis law
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (a) of subdivision 4 of section 480-a of the tax
 law, as amended by section 4 of part I of chapter  59  of  the  laws  of
 2020, is amended to read as follows:
   (a)  If  a  retail  dealer  possesses or sells unstamped or unlawfully
 stamped packages of cigarettes, or if a retail dealer is  also  licensed
 as an agent pursuant to section four hundred seventy-two OF THIS ARTICLE
 and  it  possesses  unlawfully  stamped  packages of cigarettes or sells
 unstamped or unlawfully stamped packages of cigarettes at retail, OR  IF
 A  RETAIL DEALER OR AN AGENT UNDER THIS ARTICLE POSSESSES ILLICIT CANNA-
 BIS AS DEFINED IN SECTION ONE HUNDRED THIRTY-SIX OF THE CANNABIS LAW  OR
 IS  IN VIOLATION OF SECTION ONE HUNDRED TWENTY-FIVE OF THE CANNABIS LAW,
 (i) its registration UNDER THIS ARTICLE shall be revoked for a period of
 one year, or (ii) for a second such possession or sale OR  VIOLATION  OF
 THE CANNABIS LAW within a period of five years by a retail dealer or any
 affiliated  person  of  such  retail dealer, the registration UNDER THIS
 ARTICLE of such retail dealer and the registration of any retail  dealer
 that  is an affiliated person of such retail dealer shall be revoked for
 a period of three years, or (iii) for a third such possession or sale OR
 VIOLATION OF THE CANNABIS LAW within a period of five years by a  retail
 dealer  or any affiliated person of such retail dealer, the registration
 UNDER THIS ARTICLE of such retail dealer and  the  registration  of  any
 retail  dealer  that is an affiliated person of such retail dealer shall
 be revoked for a period of five  years.  A  retail  dealer  registration
 shall  be  revoked  pursuant  to  this subdivision immediately upon such
 dealer's receipt of written notice of revocation from the  commissioner.
 If  unstamped or unlawfully stamped cigarettes, OR ILLICIT CANNABIS, are
 found in a retail dealer's warehouse or a warehouse  of  any  affiliated
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14872-01-4
 S. 8847                             2
 
 person  of  such  retail  dealer,  the revocation of the retail dealer's
 registration pursuant to this subdivision shall be  applicable  to  each
 retail  place of business in this state through which such retail dealer
 and any affiliated person of such retail dealer sells cigarettes.
   §  2.  Subdivision  1 of section 118 of the alcoholic beverage control
 law, as amended by chapter 536 of the laws of 1996, is amended  to  read
 as follows:
   1.  Any  license  or  permit  issued  pursuant  to this chapter may be
 revoked, cancelled, suspended and/or subjected to the  imposition  of  a
 civil penalty for cause, and must be revoked for the following causes:
   (a) Conviction of the licensee, permittee or his agent or employee for
 selling any illegal alcoholic beverages on the premises licensed.
   (b) For transferring, assigning or hypothecating a license or permit.
   (C)  A VIOLATION OF SUBDIVISION ONE OF SECTION ONE HUNDRED TWENTY-FIVE
 OF THE CANNABIS LAW, OR THE SALE OR POSSESSION OF  ILLICIT  CANNABIS  AS
 DEFINED IN SECTION ONE HUNDRED THIRTY-SIX OF SUCH LAW.
   §  3.  Section 1607 of the tax law is amended by adding a new subdivi-
 sion i to read as follows:
   I. A VIOLATION OF SECTION ONE HUNDRED TWENTY-FIVE OF THE CANNABIS LAW;
 PROVIDED THAT A LICENSE SHALL BE REVOKED UPON A FINDING THAT SUCH LICEN-
 SEE POSSESSED OR SOLD  ILLICIT  CANNABIS,  AS  DEFINED  IN  SECTION  ONE
 HUNDRED THIRTY-SIX OF THE CANNABIS LAW.
   § 4. This act shall take effect immediately.

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