S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5129
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 12, 2025
                                ___________
 
 Introduced  by  M.  of  A.  O'PHARROW  --  read once and referred to the
   Committee on Economic Development
 
 AN ACT to amend the cannabis law, in relation to prohibiting any  person
   or  applicant  from  receiving  a  license from the office of cannabis
   management in certain circumstances

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 16 of the cannabis law is amended by adding a new
 subdivision 8 to read as follows:
   8. THE BOARD OR THE OFFICE SHALL DEEM ANY  APPLICANT,  AS  DEFINED  IN
 SUBDIVISION  ONE  OF  SECTION  THREE  OF  THIS  CHAPTER, WHO IS FOUND IN
 VIOLATION OF SUBDIVISION FIVE OF SECTION ONE HUNDRED THIRTY-SIX OF  THIS
 CHAPTER, TO BE INELIGIBLE TO RECEIVE A LICENSE AS DEFINED IN SUBDIVISION
 THIRTY-ONE OF SECTION THREE OF THIS CHAPTER.
   §  2.  The  opening  paragraph  of  paragraph  (a) of subdivision 1 of
 section 132 of the cannabis law, as amended by section 13 of part  G  of
 chapter 55 of the laws of 2024, is amended to read as follows:
   Any person OR APPLICANT AS DEFINED IN SUBDIVISION ONE OF SECTION THREE
 OF    THIS  CHAPTER  who  cultivates  for sale, offers to sell, or sells
 cannabis, cannabis products, medical cannabis, or any  product  marketed
 or  labeled as such, without having an appropriate registration, license
 or permit therefor, including a person whose registration,  license,  or
 permit  has been revoked, surrendered or cancelled, where such person is
 engaging in activity for which a license would be  required  under  this
 chapter, may be subject to a civil penalty of not more than ten thousand
 dollars  for  each  day  during which such violation continues, SHALL BE
 DEEMED INELIGIBLE TO RECEIVE OR RENEW A LICENSE AS DEFINED  IN  SUBDIVI-
 SION  THIRTY-ONE  OF  SECTION  THREE  OF THIS CHAPTER, and an additional
 civil penalty in an amount of no more than five times the  revenue  from
 such  prohibited  sales or, in an amount of no more than three times the
 projected revenue for any such product found in the possession  of  such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09153-01-5
              

 A. 5129                             2
 
 person based on the retail list price of such products; provided, howev-
 er,  that  any such person who engages in such activity from a residence
 or other real property not otherwise held out as open to the  public  or
 otherwise  being  utilized  in  a  business  or commercial manner or any
 private vehicle on or about same such property, and the quantity of such
 product on such premises or  vehicle  does  not  exceed  the  limits  of
 personal  use under article two hundred twenty-two of the penal law, may
 be subject to a civil penalty of no more than five thousand dollars.
   § 3. Subdivisions 13 and 14 of section 138-a of the cannabis  law,  as
 added  by  section  14  of part G of chapter 55 of the laws of 2024, are
 amended and a new subdivision 15 is added to read as follows:
   13. upon finding a violation of this section by a holder of a  license
 issued  by  the  state  liquor  authority,  a registration issued by the
 commissioner of taxation and  finance  to  sell  cigarettes  or  tobacco
 products  at  retail, a registration issued by the commissioner of taxa-
 tion and finance to sell vapor products at retail, or  a  lottery  sales
 agent  license  issued by the division of lottery, (a) issue a notice of
 violation to the holder or an agent thereof that clearly states (i) that
 the holder's state licenses, permits, or registrations may be at risk of
 revocation or suspension and (ii) that the  holder's  business  premises
 may  be  subject to an order to seal if upon a subsequent inspection the
 office finds that the violation has not been abated, and (b) notify  the
 agency  that issued the authorization that the holder is in violation of
 this section; [and]
   14. if any penalty is not paid within six  months,  enter  the  amount
 thereof as a judgment in the office of the clerk of the county of Albany
 and  in  any  other  county  in which the person resides, has a place of
 business, or through which it operates. If such judgment  has  not  been
 satisfied  within  thirty  days thereafter, no license, registration, or
 permit shall be issued by the board to such person for three years ther-
 eafter[.]; AND
   15. REFUSE TO GRANT OR RENEW A LICENSE AS DEFINED IN SUBDIVISION THIR-
 TY-ONE OF SECTION THREE OF THIS CHAPTER WHEN A PERSON  OR  APPLICANT  IS
 FOUND IN VIOLATION OF SUBDIVISION SEVEN OF SECTION SIXTEEN OF THIS CHAP-
 TER  OR  THE OPENING PARAGRAPH OF SUBDIVISION ONE OF SECTION ONE HUNDRED
 THIRTY-TWO OF THIS ARTICLE OR ANY OTHER PROVISIONS  OF  ARTICLE  SIX  OF
 THIS CHAPTER.
   § 4. This act shall take effect immediately.