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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9520
SPONSOR: Zaccaro 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 OR GENERAL IDEA OF BILL::
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.
PRIOR LEGISLATIVE HISTORY::
New bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS::
To be determined
EFFECTIVE DATE::
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
9520
IN ASSEMBLY
March 20, 2024
___________
Introduced by M. of A. ZACCARO, CRUZ -- read once and referred to the
Committee on Economic Development
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:
1 Section 1. Paragraph (a) of subdivision 4 of section 480-a of the tax
2 law, as amended by section 4 of part I of chapter 59 of the laws of
3 2020, is amended to read as follows:
4 (a) If a retail dealer possesses or sells unstamped or unlawfully
5 stamped packages of cigarettes, or if a retail dealer is also licensed
6 as an agent pursuant to section four hundred seventy-two of this article
7 and it possesses unlawfully stamped packages of cigarettes or sells
8 unstamped or unlawfully stamped packages of cigarettes at retail, or if
9 a retail dealer or an agent under this article possesses illicit canna-
10 bis as defined in section one hundred thirty-six of the cannabis law or
11 is in violation of section one hundred twenty-five of the cannabis law,
12 (i) its registration under this article shall be revoked for a period of
13 one year, or (ii) for a second such possession or sale or violation of
14 the cannabis law within a period of five years by a retail dealer or any
15 affiliated person of such retail dealer, the registration under this
16 article of such retail dealer and the registration of any retail dealer
17 that is an affiliated person of such retail dealer shall be revoked for
18 a period of three years, or (iii) for a third such possession or sale or
19 violation of the cannabis law within a period of five years by a retail
20 dealer or any affiliated person of such retail dealer, the registration
21 under this article of such retail dealer and the registration of any
22 retail dealer that is an affiliated person of such retail dealer shall
23 be revoked for a period of five years. A retail dealer registration
24 shall be revoked pursuant to this subdivision immediately upon such
25 dealer's receipt of written notice of revocation from the commissioner.
26 If unstamped or unlawfully stamped cigarettes, or illicit cannabis, are
27 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
A. 9520 2
1 person of such retail dealer, the revocation of the retail dealer's
2 registration pursuant to this subdivision shall be applicable to each
3 retail place of business in this state through which such retail dealer
4 and any affiliated person of such retail dealer sells cigarettes.
5 § 2. Subdivision 1 of section 118 of the alcoholic beverage control
6 law, as amended by chapter 536 of the laws of 1996, is amended to read
7 as follows:
8 1. Any license or permit issued pursuant to this chapter may be
9 revoked, cancelled, suspended and/or subjected to the imposition of a
10 civil penalty for cause, and must be revoked for the following causes:
11 (a) Conviction of the licensee, permittee or his agent or employee for
12 selling any illegal alcoholic beverages on the premises licensed.
13 (b) For transferring, assigning or hypothecating a license or permit.
14 (c) A violation of subdivision one of section one hundred twenty-five
15 of the cannabis law, or the sale or possession of illicit cannabis as
16 defined in section one hundred thirty-six of such law.
17 § 3. Section 1607 of the tax law is amended by adding a new subdivi-
18 sion i to read as follows:
19 i. A violation of section one hundred twenty-five of the cannabis law;
20 provided that a license shall be revoked upon a finding that such licen-
21 see possessed or sold illicit cannabis, as defined in section one
22 hundred thirty-six of the cannabis law.
23 § 4. This act shall take effect immediately.
