A. 3506 Summary:

BILL NOA03506C
 
SAME ASSAME AS S03040-C
 
SPONSORPeoples-Stokes (MS)
 
COSPNSRGottfried, Lupardo, Sepulveda, Weprin, Hunter, Hyndman, Pichardo, Blake, Rosenthal L, Jaffee, Dinowitz, Jean-Pierre, Abinanti, Richardson, Hevesi, Walker, Jenne, Vanel, Pellegrino, Niou, Wright, Bichotte, Cahill, Lifton
 
MLTSPNSREpstein, Mosley, Seawright, Simon, Skartados, Steck, Taylor
 
Amd Various Laws, generally
 
Enacts the "marihuana regulation and taxation act"; relates to the description of marihuana, and the growing of and use of marihuana by persons twenty-one years of age or older; makes technical changes regarding the definition of marihuana; relates to the qualification of certain offenses involving marihuana and exempts certain persons from prosecution for the use, consumption, display, production or distribution of marihuana; provides for the licensure of persons authorized to produce, process and sell marihuana; levies an excise tax on certain sales of marihuana; repeals certain provisions of the penal law relating to the criminal sale of marihuana and provisions of the general business law relating to drug paraphernalia; makes an appropriation therefor.
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A. 3506 Actions:

BILL NOA03506C
 
01/27/2017referred to codes
06/13/2017amend (t) and recommit to codes
06/13/2017print number 3506a
06/19/2017amend (t) and recommit to codes
06/19/2017print number 3506b
01/03/2018referred to codes
11/16/2018amend (t) and recommit to codes
11/16/2018print number 3506c
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A. 3506 Committee Votes:

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A. 3506 Floor Votes:

There are no votes for this bill in this legislative session.
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A. 3506 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A3506C
 
SPONSOR: Peoples-Stokes (MS)
  TITLE OF BILL: An act to amend the public health law, in relation to the description of marihuana, and the growing of and use of marihuana by persons twenty-one years of age or older; to amend the civil practice law and rules, in relation to removing certain references to marihuana relating to forfei- ture actions; to amend the vehicle and traffic law, in relation to making technical changes regarding the definition of marihuana; to amend the penal law, in relation to the qualification of certain offenses involving marihuana and to exempt certain persons from prosecution for the use, consumption, display, production or distribution of marihuana; to amend the alcoholic beverage control law, in relation to providing for the licensure of persons authorized to produce, process and sell marihuana; to amend the state finance law, in relation to establishing the New York state marihuana revenue fund, the New York state drug treatment education fund and the New York state community grants rein- vestment fund; to amend the tax law, in relation to providing for the levying of an excise tax on certain sales of marihuana; to amend the criminal procedure law, the civil practice law and rules, the general business law, the state finance law, the executive law, the penal law and the vehicle and traffic law, in relation to making conforming chang- es; to amend the alcoholic beverage control law, in relation to alcohol or substance use disorder training awareness programs; to amend the state finance law, in relation to a revolving loan fund; to amend the family court act, in relation to making conforming changes; to repeal sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35 and 221.40 of the penal law relating to the criminal possession and sale of marihuana; to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; to repeal section 150.75 of the criminal procedure law relating to appear- ance tickets for certain marihuana offenses; and making an appropriation therefor   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to establish a regulated and taxed marijuana industry in New York, and to provide for various social and economic justice initiatives related thereto.   SUMMARY OF PROVISIONS: Section one of the bill is the title. Section two of the bill is comprised of legislative findings and state- ments of purpose. Section three of the bill amends section 3302 of the Public Health Law to eliminate the definitions of Concentrated Cannabis and Marihuana from the controlled substances act. Section four of the bill amends section 3306 of the Public Health Law to remove the classification of marihuana as a schedule 1 hallucinogen on the schedules of controlled substances. Section five of the bill amends section 3382 of the Public Health Law to allow home cultivation of up to 6 marihuana plants by individuals twen- ty-one years or older. Section six of the bill amends section 1311 of the Civil Practice Law and Rules to exclude marihuana possession as grounds for a currency forfeiture action. Section seven of the bill amends section 3397-b of the public health law to make conforming changes in definition of marihuana. Section eight of the bill amends section 114a of the Vehicle and Traffic Law adding marihuana and concentrated cannabis to the definition of drug for purposes of driving under the influence. Section nine of the bill amends section 220.0 of the Penal Law to update the definition of marihuana and include a definition for concentrated cannabis as a controlled substance. Sections ten to twelve of the bill update cross references to amended sections of the penal law. Section thirteen of the bill amends section 220.50 of the Penal Law to exclude marihuana paraphernalia from criminal use of drug paraphernalia. Section fourteen of the bill repeals sections 221.05, 221.10, 221.15. 221. 20, 221.25, 221.30 and 221.40 related to illegal possession and sale of marihuana. Section fifteen of the bill adds new section 221.05 and 211.05-a to the Penal Law to establish conditions for legal personal use and cultivation of marihuana and penalties for violations of those conditions. Section sixteen of the bill amends section 221.45 of the Penal Law to define unlicensed sale of marihuana in the third degree. Section seventeen of the bill amends section 221.50 of the Penal Law bill to define unlicensed sale of marihuana in the second degree. Section eighteen of the bill amends section 221.55 of the Penal Law, to define unlicensed sale of marihuana in the first degrees. Section nineteen of the bill adds a new section 221.60 to the Penal Law establishing that those acting in compliance with the Alcohol Beverage Control Law are exempt from sections § 220 and § 221 of the New York Penal Law. Section twenty of the bill amends subdivision 8 of section 1399-n of the Public Health Law to include marihuana in list of substances subject to smoking regulations. Section twenty-one of the bill amends section 2 of the Alcoholic Bever- age Control Law to include regulation of marihuana products in the purpose of this chapter. Section twenty-two of the bill amends section 3 of the Alcoholic Bever- age Control Law to include definitions of Concentrated Cannabis, Mari- huana, and Marihuana consumers, processors, producer, products, infused products, retailer and retailer for on-premises consumption, and unrea- sonably impracticable. Section twenty-three of the bill amends section 65-b of the Alcoholic Beverage Control law to ban use of fraudulent documents for the purpose of purchasing marihuana products by persons under twenty-one years of age, and establishing procedures for sellers of marihuana products to prevent such sales. Section twenty-four of the bill amends section 65-c of the Alcoholic Beverage Control law to make possession of marihuana by those under twenty-one unlawful, and to establish penalties and requirements for completion of a drug awareness program for those who violate this section. Section twenty-five of the bill adds a new section 65Le to the Alcoholic Beverage Control law establishing restrictions for personal use of mari- huana, including smoking in public or where smoking tobacco is banned, possessing, smoking or ingesting on school grounds, and smoking or ingesting while operating a motor vehicle, and establishing penalties for violations of this section. Section twenty-six of the bill amends section 140 of the Alcoholic Beverage Control Law to extend the option of any town or city to ban sale of alcoholic beverages to sales of marihuana. Section twenty-seven of the bill amends section 141 of the Alcoholic Beverage Control Law to apply the rules governing referendum procedures for banning sales of alcohol by towns to sales of marihuana. Section twenty-eight of the bill amends section 142 of the Alcoholic Beverage Control Law to establish that sale of marihuana is prohibited in any city that passes a referendum against such sales. Section twenty-nine of the bill amends section 147 of the Alcoholic Beverage Control Law to establish that if the rules regarding future referendums will also apply to marihuana sales. Section thirty of the bill renumbers article 11 of the Alcoholic Bever- age Control Law as article 12 and sections 160, 161, 162, 163 and 164 as sections 200, 201, 202, 203 and 204. Section thirty-one of the bill adds a new Article 11 to the Alcoholic Beverage Control Law providing establishment of a bureau of marihuana policy to provide for the regulation of marihuana production, process- ing, testing, distribution and sale within the State Liquor Authority, establishing licensing and permitting rules, and providing for penalties for violations. Section thirty-two of the bill adds new sections 99-ff, 99-gg, and 99-hh to the State Finance law establishing the marihuana revenue fund, the drug treatment public education fund, and the community grants reinvest- ment funds. These funds will distribute revenue generated by this legis- lation for administrative costs, data tracking and reporting, program evaluation, public education, drug treatment and health education, and grants to support community-based programs providing services including job placement, job skills, adult education, mental health, legal services addressing barriers to reentry, women's health and other commu- nity-based supportive services in communities disproportionately affected by past federal and state drug policies. Section thirty-three of the bill adds a new Article 18-A to the New York Tax Code imposing an excise tax on marihuana and concentrated cannabis, and establishing a formula for distribution of the proceeds of this tax. Proceeds from the tax will be placed in a fund established by the comp- troller known as the marihuana revenue fund. Localities would also be authorized to impose a sales tax of up to two percent on retail sales. Section thirty-four of the bill amends subdivision 3 of section 160.50 of the criminal procedure law to update references to clearing of records in criminal actions terminated in favor of the accused. Section thirty-five of the bill amends subdivision 4 of section 160.50 of the criminal procedure law to update references to provide for persons to apply for sealing of records. Section thirty-six of the bill amends section 170.56 of the criminal procedure law providing for suspension of court proceedings and adjourn- ment in contemplation of dismissal for exceptional circumstances in marihuana related violations. Section thirty-seven of the bill updates cross references in section 210.46 of the criminal procedure law. Section thirty-eight of the bill amends section 440.10 of the criminal procedure law to provide for vacating convictions based on marihuana possession in cases where the offense would no longer be a crime under this act. Section thirty-nine of the bill amends section 440.10 of the criminal procedure law to update cross references. Section forty of the bill adds a new section 440.46-a providing for motions to resentence persons convicted of marihuana offenses under penal laws prior to the passage of this legislation. Section forty-one through forty-three of the bill of the bill update cross references to amended sections of the criminal procedure law, civil practice law and rules, and general business law. Section forty-four of the bill repeals paragraph f of subdivision 2 of section 850 of the general business law. Section forty-five of the bill amends section 850 of the general busi- ness law to remove references to marihuana and hashish paraphernalia. Section forty-six of the bill updates cross references in the state finance law to amended sections in the alcoholic beverage control law. Section forty-seven through forty-nine of the bill update definitions and cross references in the executive law, penal law, and vehicle and traffic law. Section fifty of the bill updates section 1194 of the vehicle and traf- fic law to specify testing limits for marihuana content. Section fifty-one through fifty-four of the bill amends the alcoholic beverage control law to include the development of substance use disor- der training awareness programs within the powers of the authority. Section fifty-five of the bill repeals section 150.75 of the criminal procedure law. Section fifty-six of the bill updates cross references in the family court act. Section fifty-seven of the bill adds a new section 99-ii to the state finance law to establish a marihuana microbusiness and marihuana license revolving loan fund. Section fifty-eight of the bill provides for an appropriation of five million dollars to the State Liquor Authority for implementation of this act. Section fifty-nine of the bill is a severability clause. Section sixty of the bill is the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION: The amended version of the bill provides technical amendments, clarifies that personal cultivation cannot be banned by local jurisdictions, clar- ifies that regulating/prohibiting marijuana retail licenses at the local level is vested with cities, towns, and villages, provides robust public outreach and education on license opportunities and other applicable regulations, provides maintenance of efforts related to state education funding, provides a more robust social equity plan that prioritizes licenses for small minority and women owned businesses, provides labor peace requirements for businesses with more than 25 employees, and establishes a revolving loan fund to assist license applicants obtain necessary capital, with a priority to give loans to small, minority, and women owned businesses.   JUSTIFICATION: New York's marihuana policies are broken, unjust, and outdated. The Marihuana Regulation and Taxation Act (MRTA) is based on the recognition that New York's existing marihuana policies have failed to protect the welfare of our communities. Marihuana prohibition has thrust thousands of New Yorkers into the criminal justice system for non-violent offenses, inhibiting an otherwise law-abiding citizen's ability to access housing, student loans, employment opportunities, voting, and other vital services. Additionally, rather than curtailing youth-mari- huana usage, existing marihuana laws have led to an illicit market that has done little to address marihuana usage by minors. Existing marihuana laws have led to profligate spending of law enforce- ment reSources, and discriminatory police practices that have perpet- uated systematic racism and discrimination increasing the prison popu- lation with non-violent offenders. Over the past two decades, New York has become the marihuana arrest capital of the country, with nearly 800,000 marihuana arrests and summons. These arrests disproportionately impact the lives of African-American and Latino communities. African-Americans and Latinos are swept into the criminal justice system for marihuana use, while whites are afforded impunity due to the color of their skin. While government studies show that whites of all ages use marihuana at the same rate as people of color, a stark difference in arrest rates remain. Across New York City, African-Americans are arrested on low-level marihuana charges at eight times the rate of white, non-hispanic people and Hispanics are arrested at five times the rate of whites. One of the largest drivers of racial disparity in criminalization and incarceration rates is the inequity of how the law is applied in marihuana arrests. The intent of this act is to regulate, control, and tax marihuana in a manner similar to alcohol. The MRTA will generate millions of dollars in new revenue, prevent access to marihuana by those under the age of twen- ty-one, reduce the illegal drug market and violent crime, reduce partic- ipation of otherwise law-abiding citizens in an illicit market and create new industries and increase employment. With the enactment of the MRTA the New York State Legislature has an opportunity to end the racially disparate impact of existing marihuana policies. Sixty million Americans now live in states where adult-marihuana is legal. Nationwide, public perception of marihuana is growing more favor- able, with 61% of the population supporting legalization. In NYC fatal drug overdoses are now four times more common than homicides. The New York Department of Health concluded that marihuana is a far safer pain reliever than opioids, and reduces the risk of fatal overdoses that are prevalent across the state and country. In states that have legalized marihuana, opioid overdose rates were 25% lower compared with states with no legal access to marihuana. Additionally, two-thirds of Americans also view marihuana as being safer than opioids in the management of pain. There are roughly 1.5 million regular marihuana users in New York, half of which live in New York City. In May of 2018, NYC Comptroller Stringer released a report which estimates a $3.1 billion adult-use marihuana market for New York State, with $1.1 billion just in New York City. With the enactment of the MRTA New York State could realize a projected $436 million in tax revenue, while New York City could accrue an additional $336 million in tax revenue. This legislation directs 50% of the tax revenue to establish the Commu- nity Grants Reinvestment Fund, aimed at giving back to the communities that have been the most disproportionately affected by current marihuana laws. States across the country that have recently legalized marihuana, from Massachusetts to Alaska, are reinvesting in programs that offer people a new start through community re-entry programs, schools, job development, drug treatment, and legal services.   PRIOR LEGISLATIVE HISTORY: 2015-2016: A.3089 -A/S.1747 2013-2014: A.8341/S.6005   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Undetermined significant revenue will be generated for the State and local governments.   EFFECTIVE DATE: This act shall take effect immediately; provided, however, that the amendments to section 17 of the alcoholic beverage control law made by section fifty-one of this act shall not affect the expiration and rever- sion of such section and shall expire and be deemed repealed therewith, when upon such date the provisions of section fifty-two of this act shall take effect; provided further, however, that the amendments to section 18 of the alcoholic beverage control law made by section fifty- three of this act shall not affect the expiration and reversion of such section and shall expire and be deemed repealed therewith, when upon such date the provisions of section fifty-four of this act shall take effect.
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A. 3506 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         3506--C
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 27, 2017
                                       ___________
 
        Introduced by M. of A. PEOPLES-STOKES, GOTTFRIED, LUPARDO, WEPRIN, HUNT-
          ER,   HYNDMAN,   PICHARDO,   BLAKE,  L. ROSENTHAL,  JAFFEE,  DINOWITZ,
          JEAN-PIERRE,  ABINANTI,  RICHARDSON,  HEVESI,  WALKER,  JENNE,  VANEL,
          PELLEGRINO, NIOU, WRIGHT, BICHOTTE, CAHILL -- Multi-Sponsored by -- M.
          of  A.  EPSTEIN,  MOSLEY, SEAWRIGHT, SIMON, STECK, TAYLOR -- read once
          and referred to the Committee on Codes -- committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- again reported from said  committee  with  amendments,  ordered
          reprinted  as  amended  and  recommitted  to  said  committee -- again
          reported from said committee with  amendments,  ordered  reprinted  as
          amended and recommitted to said committee
 
        AN ACT to amend the public health law, in relation to the description of
          marihuana,  and the growing of and use of marihuana by persons twenty-
          one years of age or older; to amend the civil practice law and  rules,
          in  relation  to  removing certain references to marihuana relating to
          forfeiture actions; to amend the vehicle and traffic law, in  relation
          to  making technical changes regarding the definition of marihuana; to
          amend the penal law, in  relation  to  the  qualification  of  certain
          offenses involving marihuana and to exempt certain persons from prose-
          cution  for  the use, consumption, display, production or distribution
          of marihuana; to amend the alcoholic beverage control law, in relation
          to providing for the licensure of persons authorized to produce, proc-
          ess and sell marihuana; to amend the state finance law, in relation to
          establishing the New York state marihuana revenue fund, the  New  York
          state  drug  treatment education fund and the New York state community
          grants reinvestment fund; to amend the tax law, in relation to provid-
          ing for the levying of an excise tax on certain sales of marihuana; to
          amend the criminal procedure law, the civil practice  law  and  rules,
          the  general  business  law, the state finance law, the executive law,
          the penal law and the vehicle and traffic law, in relation  to  making
          conforming  changes;  to  amend the alcoholic beverage control law, in
          relation to alcohol  or  substance  use  disorder  training  awareness
          programs;  to  amend the state finance law, in relation to a revolving
          loan fund; to amend the  family  court  act,  in  relation  to  making
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
        A                                                          LBD05327-08-8

        A. 3506--C                          2
 
          conforming changes; to repeal sections 221.05, 221.10, 221.15, 221.20,
          221.25,  221.30,  221.35  and  221.40 of the penal law relating to the
          criminal possession and sale of marihuana; to repeal paragraph (f)  of
          subdivision  2  of section 850 of the general business law relating to
          drug related paraphernalia; to repeal section 150.75 of  the  criminal
          procedure  law  relating  to  appearance tickets for certain marihuana
          offenses; and making an appropriation therefor
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. This act shall be known and may be cited as the "marihuana
     2  regulation and taxation act".
     3    § 2. Legislative findings and intent.    The  legislature  finds  that
     4  existing  marihuana  laws have not been beneficial to the welfare of the
     5  general public. Existing laws have been ineffective in reducing or curb-
     6  ing marihuana use and have instead resulted  in  devastating  collateral
     7  consequences  that inhibit an otherwise law-abiding citizen's ability to
     8  access housing, employment  opportunities,  and  other  vital  services.
     9  Existing  laws  have  also  created an illicit market which represents a
    10  threat to public health and reduces the ability of  the  legislature  to
    11  deter the accessing of marihuana by minors. Existing marihuana laws have
    12  also  disproportionately  impacted  African-American and Latino communi-
    13  ties.
    14    The intent of this act is to regulate, control, and tax marihuana in a
    15  manner similar to alcohol, generate millions of dollars in new  revenue,
    16  prevent  access to marihuana by those under the age of twenty-one years,
    17  reduce the illegal drug market and reduce violent crime, reduce  partic-
    18  ipation of otherwise law-abiding citizens in the illicit market, end the
    19  racially  disparate  impact  of  existing  marihuana laws and create new
    20  industries and increase employment.
    21    Nothing in this act is intended to limit the authority of any district
    22  government agency or office or employers to enact and  enforce  policies
    23  pertaining  to  marihuana  in  the workplace, to allow driving under the
    24  influence of marihuana, to allow individuals to engage in  conduct  that
    25  endangers others, to allow smoking marihuana in any location where smok-
    26  ing tobacco is prohibited, or to require any individual to engage in any
    27  conduct  that violates federal law or to exempt anyone from any require-
    28  ment of federal law or pose any obstacle to the federal  enforcement  of
    29  federal law.
    30    Nothing in this act is intended to limit any privileges or rights of a
    31  medical  marihuana  patient or medical marihuana caregiver under the New
    32  York Compassionate Care Act.
    33    It is the intent of this act that no child shall be the subject  of  a
    34  child  neglect  or  abuse  investigation or proceeding based solely on a
    35  parent's alleged use of marihuana. A newborn child's positive toxicology
    36  result for marihuana, is not sufficient on its own to support a  finding
    37  of  child  neglect  or abuse. Enactment of this act shall provide suffi-
    38  cient basis for New York state to favorably resolve open  investigations
    39  and  to  amend and seal individuals' family court records and records of
    40  indicated child abuse or neglect  reports  currently  in  the  statewide
    41  central register of child abuse and maltreatment based solely on the use
    42  of  marihuana  or where the reporter of suspected abuse or neglect was a
    43  law enforcement agency or staff person and the report was  based  solely
    44  upon the presence of a child during a marihuana-related arrest.

        A. 3506--C                          3

     1    § 3. Section 3302 of the public health law, as added by chapter 878 of
     2  the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
     3  subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23,  24,
     4  25,  26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998,
     5  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
     6  and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
     7  subdivision 20, the opening paragraph of subdivision 22 and  subdivision
     8  29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
     9  amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
    10  vision 41 as added by section 6 of part A of chapter 447 of the laws  of
    11  2012,  and  subdivisions  42  and 43 as added by section 13 of part D of
    12  chapter 60 of the laws of 2014, is amended to read as follows:
    13    § 3302. Definitions of terms of general use in  this  article.  Except
    14  where   different   meanings   are  expressly  specified  in  subsequent
    15  provisions of this article, the following terms have the following mean-
    16  ings:
    17    1. "Addict" means a person who habitually uses a controlled  substance
    18  for  a  non-legitimate or unlawful use, and who by reason of such use is
    19  dependent thereon.
    20    2.  "Administer"  means  the  direct  application  of   a   controlled
    21  substance,  whether  by  injection,  inhalation, ingestion, or any other
    22  means, to the body of a patient or research subject.
    23    3. "Agent" means an authorized person who acts on behalf of or at  the
    24  direction of a manufacturer, distributor, or dispenser. No person may be
    25  authorized  to  so  act  if  under  title VIII of the education law such
    26  person would not be permitted to engage in such  conduct.  It  does  not
    27  include  a  common or contract carrier, public warehouseman, or employee
    28  of the carrier or warehouseman when  acting  in  the  usual  and  lawful
    29  course of the carrier's or warehouseman's business.
    30    4. ["Concentrated Cannabis" means
    31    (a)  the  separated  resin, whether crude or purified, obtained from a
    32  plant of the genus Cannabis; or
    33    (b) a material, preparation,  mixture,  compound  or  other  substance
    34  which  contains  more than two and one-half percent by weight of delta-9
    35  tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
    36  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    37  terpene numbering system.
    38    5.]  "Controlled  substance" means a substance or substances listed in
    39  section thirty-three hundred six of this [chapter] title.
    40    [6.] 5. "Commissioner" means commissioner of health of  the  state  of
    41  New York.
    42    [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
    43  attempted transfer from one person to another of a controlled substance,
    44  whether or not there is an agency relationship.
    45    [8.] 7. "Department" means the department of health of  the  state  of
    46  New York.
    47    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    48  mate user or research subject by lawful means, including by means of the
    49  internet, and includes the packaging, labeling, or compounding necessary
    50  to prepare the substance for such delivery.
    51    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    52  ing by means of the internet, other than by administering or dispensing.
    53    [11.]  10.  "Distributor"  means a person who distributes a controlled
    54  substance.

        A. 3506--C                          4
 
     1    [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
     2  of  a  controlled  substance by a person or in a manner not specifically
     3  authorized by law.
     4    [13.] 12. "Drug" means
     5    (a) substances recognized as drugs in the official United States Phar-
     6  macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
     7  official National Formulary, or any supplement to any of them;
     8    (b) substances intended for use in the  diagnosis,  cure,  mitigation,
     9  treatment, or prevention of disease in man or animals; and
    10    (c) substances (other than food) intended to affect the structure or a
    11  function  of  the  body of man or animal. It does not include devices or
    12  their components, parts, or accessories.
    13    [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
    14  United States Department of Justice, or its successor agency.
    15    [15.]  14. "Federal controlled substances act" means the Comprehensive
    16  Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
    17  any  act  or  acts  amendatory  or  supplemental  thereto or regulations
    18  promulgated thereunder.
    19    [16.] 15. "Federal registration number" means such number assigned  by
    20  the  Federal agency to any person authorized to manufacture, distribute,
    21  sell, dispense or administer controlled substances.
    22    [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
    23  repeated  use of any controlled substance for non-legitimate or unlawful
    24  use is in danger of becoming, dependent upon such substance.
    25    [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
    26  hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental
    27  hospital or similar facility approved and certified by the department as
    28  authorized to  obtain  controlled  substances  by  distribution  and  to
    29  dispense and administer such substances pursuant to the order of a prac-
    30  titioner.
    31    [19.]  18.  "License"  means  a  written  authorization  issued by the
    32  department or the New York  state  department  of  education  permitting
    33  persons  to  engage  in  a specified activity with respect to controlled
    34  substances.
    35    [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
    36  gation,   compounding,   cultivation,  conversion  or  processing  of  a
    37  controlled substance, either directly or  indirectly  or  by  extraction
    38  from substances of natural origin, or independently by means of chemical
    39  synthesis, or by a combination of extraction and chemical synthesis, and
    40  includes  any  packaging  or repackaging of the substance or labeling or
    41  relabeling of its container, except that this term does not include  the
    42  preparation,   compounding,   packaging  or  labeling  of  a  controlled
    43  substance:
    44    (a) by a practitioner as an incident to his administering or  dispens-
    45  ing  of  a  controlled substance in the course of his professional prac-
    46  tice; or
    47    (b) by a practitioner, or by his authorized  agent  under  his  super-
    48  vision, for the purpose of, or as an incident to, research, teaching, or
    49  chemical analysis and not for sale; or
    50    (c)  by  a pharmacist as an incident to his dispensing of a controlled
    51  substance in the course of his professional practice.
    52    [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
    53  whether  growing or not; the seeds thereof; the resin extracted from any
    54  part of the plant; and every compound,  manufacture,  salt,  derivative,
    55  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    56  include the mature stalks of the plant, fiber produced from the  stalks,

        A. 3506--C                          5

     1  oil  or cake made from the seeds of the plant, any other compound, manu-
     2  facture, salt, derivative, mixture, or preparation of the mature  stalks
     3  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
     4  sterilized seed of the plant which is incapable of germination.
     5    22.]  20. "Narcotic drug" means any of the following, whether produced
     6  directly or  indirectly  by  extraction  from  substances  of  vegetable
     7  origin,  or independently by means of chemical synthesis, or by a combi-
     8  nation of extraction and chemical synthesis:
     9    (a) opium and opiate, and any salt, compound, derivative, or  prepara-
    10  tion of opium or opiate;
    11    (b)  any  salt,  compound,  isomer, derivative, or preparation thereof
    12  which is chemically equivalent or identical with any of  the  substances
    13  referred  to in [subdivision] paragraph (a) of this subdivision, but not
    14  including the isoquinoline alkaloids of opium;
    15    (c) opium poppy and poppy straw.
    16    [23.] 21. "Opiate" means any substance having an addiction-forming  or
    17  addiction-sustaining  liability  similar to morphine or being capable of
    18  conversion into a drug having addiction-forming or  addiction-sustaining
    19  liability.  It  does  not  include,  unless  specifically  designated as
    20  controlled under section [3306] thirty-three hundred six of this  [arti-
    21  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
    22  its  salts (dextromethorphan). It does include its racemic and levorota-
    23  tory forms.
    24    [24.] 22. "Opium  poppy"  means  the  plant  of  the  species  Papaver
    25  somniferum L., except its seeds.
    26    [25.] 23. "Person" means individual, institution, corporation, govern-
    27  ment  or  governmental  subdivision  or  agency, business trust, estate,
    28  trust, partnership or association, or any other legal entity.
    29    [26.] 24. "Pharmacist" means any person licensed by the state  depart-
    30  ment of education to practice pharmacy.
    31    [27.]  25.  "Pharmacy"  means  any place registered as such by the New
    32  York state board of pharmacy and  registered  with  the  Federal  agency
    33  pursuant to the federal controlled substances act.
    34    [28.]  26.  "Poppy  straw"  means  all parts, except the seeds, of the
    35  opium poppy, after mowing.
    36    [29.] 27. "Practitioner" means:
    37    A physician, dentist, podiatrist,  veterinarian,  scientific  investi-
    38  gator,  or  other  person  licensed, or otherwise permitted to dispense,
    39  administer or conduct research with respect to a controlled substance in
    40  the course of a licensed  professional  practice  or  research  licensed
    41  pursuant  to  this article. Such person shall be deemed a "practitioner"
    42  only as to such substances, or conduct relating to such  substances,  as
    43  is permitted by his license, permit or otherwise permitted by law.
    44    [30.]   28.   "Prescribe"  means  a  direction  or  authorization,  by
    45  prescription, permitting an ultimate user lawfully to obtain  controlled
    46  substances   from   any  person  authorized  by  law  to  dispense  such
    47  substances.
    48    [31.] 29.  "Prescription"  shall  mean  an  official  New  York  state
    49  prescription,  an electronic prescription, an oral prescription[,] or an
    50  out-of-state prescription[, or any one].
    51    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
    52  er, or offer or agree to do the same.
    53    [33.] 31. "Ultimate user" means a  person  who  lawfully  obtains  and
    54  possesses  a controlled substance for his own use or the use by a member
    55  of his household or for an animal owned by him or  in  his  custody.  It
    56  shall  also mean and include a person designated, by a practitioner on a

        A. 3506--C                          6
 
     1  prescription, to obtain such substance on behalf of the patient for whom
     2  such substance is intended.
     3    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
     4  cations facilities which comprise the worldwide network of networks that
     5  employ a set of industry standards and protocols, or any predecessor  or
     6  successor  protocol  to  such  protocol,  to exchange information of all
     7  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
     8  networks,  whether  private  or  public, used to transmit information by
     9  electronic means.
    10    [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
    11  distribution,  or  dispensing  of  a  controlled substance that uses the
    12  internet, is initiated by use of the internet or causes the internet  to
    13  be used.
    14    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
    15  in  the  United  States  that sells, delivers or dispenses, or offers to
    16  sell, deliver, or dispense, a  controlled  substance  by  means  of  the
    17  internet.
    18    [37.]  35.  "Electronic prescription" means a prescription issued with
    19  an electronic signature and transmitted by electronic means  in  accord-
    20  ance with regulations of the commissioner and the commissioner of educa-
    21  tion  and consistent with federal requirements. A prescription generated
    22  on an electronic system that is printed out or transmitted via facsimile
    23  is not considered  an  electronic  prescription  and  must  be  manually
    24  signed.
    25    [38.] 36. "Electronic" means of or relating to technology having elec-
    26  trical, digital, magnetic, wireless, optical, electromagnetic or similar
    27  capabilities. "Electronic" shall not include facsimile.
    28    [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
    29  created, generated, transmitted, communicated,  received  or  stored  by
    30  means  of electronic equipment and includes the preservation, retrieval,
    31  use and disposition in accordance with regulations of  the  commissioner
    32  and the commissioner of education and in compliance with federal law and
    33  regulations.
    34    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    35  process,  attached  to or logically associated with an electronic record
    36  and executed or adopted by a person with the intent to sign the  record,
    37  in  accordance with regulations of the commissioner and the commissioner
    38  of education.
    39    [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
    40  means  the prescription monitoring program registry established pursuant
    41  to section thirty-three hundred forty-three-a of this article.
    42    [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
    43  ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
    44  drug substance to create a drug with respect to an outsourcing  facility
    45  under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
    46  further defined in this section.
    47    [43.] 41. "Outsourcing facility" means a facility that:
    48    (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
    49  section sixty-eight hundred two of the education law;
    50    (b)  is  currently  registered  as an outsourcing facility pursuant to
    51  article one hundred thirty-seven of the education law; and
    52    (c) complies with all applicable requirements  of  federal  and  state
    53  law, including the Federal Food, Drug and Cosmetic Act.
    54    Notwithstanding  any  other  provision of law to the contrary, when an
    55  outsourcing facility distributes or dispenses any  drug  to  any  person
    56  pursuant to a prescription, such outsourcing facility shall be deemed to

        A. 3506--C                          7
 
     1  be  providing  pharmacy services and shall be subject to all laws, rules
     2  and regulations governing pharmacies and pharmacy services.
     3    §  4.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
     4  26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
     5  section  3306  of  the public health law, paragraphs 13, 14, 15, 16, 17,
     6  18, 19, 20, 21, 22, 23 and 24 as added by chapter 664  of  the  laws  of
     7  1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
     8  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
     9  laws of 2006, are amended to read as follows:
    10    (13) [Marihuana.
    11    (14)] Mescaline.
    12    [(15)] (14) Parahexyl. Some trade or other  names:  3-Hexyl-1-hydroxy-
    13  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
    14    [(16)] (15)  Peyote.  Meaning all parts of the plant presently classi-
    15  fied botanically as Lophophora williamsii Lemaire,  whether  growing  or
    16  not,  the  seeds  thereof,  any extract from any part of such plant, and
    17  every compound, manufacture, salts, derivative, mixture, or  preparation
    18  of such plant, its seeds or extracts.
    19    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    20    [(18)] (17) N-methyl-3-piperidyl benzilate.
    21    [(19)] (18) Psilocybin.
    22    [(20)] (19) Psilocyn.
    23    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
    24  derived  from  the cannabis plant that are equivalents of the substances
    25  contained in the plant, or in the resinous extractives of cannabis,  sp.
    26  and/or synthetic substances, derivatives, and their isomers with similar
    27  chemical structure and pharmacological activity such as the following:
    28    [/\]  delta  1  cis  or  trans tetrahydrocannabinol, and their optical
    29  isomers
    30    [/\] delta 6 cis or  trans  tetrahydrocannabinol,  and  their  optical
    31  isomers
    32    [/\]  delta  3,  4  cis or trans tetrahydrocannabinol, and its optical
    33  isomers (since nomenclature of these substances is  not  internationally
    34  standardized,  compounds  of  these  structures, regardless of numerical
    35  designation of atomic positions covered).
    36    [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
    37  names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
    38  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    39    [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
    40  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    41    [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
    42  names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
    43  phencyclidine, TPCP, TCP.
    44    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    45    [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
    46  N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
    47  MDE, MDEA.
    48    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    49  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    50  N-hydroxy MDA.
    51    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    52  names: TCPY.
    53    [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
    54  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    55  3- (2-aminobutyl) indole; Alpha-ET or AET.

        A. 3506--C                          8

     1    [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
     2  names: DOET.
     3    [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
     4  names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
     5  DOB; 2C-B, Nexus.
     6    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
     7  optical isomers, salts and salts of isomers.
     8    § 5. Section 3382 of the public health law, as added by chapter 878 of
     9  the laws of 1972, is amended to read as follows:
    10    §  3382. Growing of the plant known as Cannabis by unlicensed persons.
    11  A person who, without being licensed so to do under this article,  grows
    12  the  plant  of  the genus Cannabis or knowingly allows it to grow on his
    13  land without destroying the same, shall be guilty of a class A misdemea-
    14  nor, unless the person grows in  accordance  with  sections  221.05  and
    15  221.05-a of the penal law.
    16    §  6.  Paragraph  (d) of subdivision 3, subdivision 3-a and paragraphs
    17  (a) and (b) of subdivision 11 of section 1311 of the civil practice  law
    18  and  rules,  paragraph  (d)  of subdivision three and subdivision 3-a as
    19  added by chapter 655 of the laws of 1990 and paragraphs (a) and  (b)  of
    20  subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the
    21  laws of 2010, are amended to read as follows:
    22    (d) In a forfeiture action commenced by a claiming authority against a
    23  defendant, the following rebuttable presumption shall apply: all curren-
    24  cy  or negotiable instruments payable to the bearer shall be presumed to
    25  be the proceeds of a pre-conviction forfeiture crime when such  currency
    26  or  negotiable  instruments  are  (i)  found  in  close  proximity  to a
    27  controlled substance unlawfully possessed by the defendant in an  amount
    28  sufficient  to constitute a violation of section 220.18 or 220.21 of the
    29  penal law, or (ii) found  in  close  proximity  to  any  quantity  of  a
    30  controlled substance [or marihuana] unlawfully possessed by such defend-
    31  ant  in  a room, other than a public place, under circumstances evincing
    32  an intent to unlawfully mix, compound, distribute, package or  otherwise
    33  prepare for sale such controlled substance [or marihuana].
    34    3-a.  Conviction  of  a person in a criminal action upon an accusatory
    35  instrument which includes one or  more  of  the  felonies  specified  in
    36  subdivision  four-b  of section thirteen hundred ten of this article, of
    37  any felony other than such felonies, shall not preclude a defendant,  in
    38  any subsequent proceeding under this article where that conviction is at
    39  issue, from adducing evidence that the conduct underlying the conviction
    40  would  not  establish  the  elements of any of the felonies specified in
    41  such subdivision other than the one to which the criminal defendant pled
    42  guilty. If the defendant does adduce such evidence, the burden shall  be
    43  upon  the claiming authority to prove, by clear and convincing evidence,
    44  that the conduct underlying the criminal conviction would establish  the
    45  elements  of the felony specified in such subdivision. Nothing contained
    46  in this subdivision shall affect the validity of  a  settlement  of  any
    47  forfeiture action negotiated between the claiming authority and a crimi-
    48  nal defendant contemporaneously with the taking of a plea of guilty in a
    49  criminal  action to any felony defined in article two hundred twenty [or
    50  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    51  commit the same.
    52    (a) Any stipulation or settlement agreement between the parties  to  a
    53  forfeiture  action  shall  be filed with the clerk of the court in which
    54  the forfeiture action is pending. No stipulation or settlement agreement
    55  shall be accepted for filing unless it is accompanied  by  an  affidavit
    56  from  the  claiming  authority that written notice of the stipulation or

        A. 3506--C                          9
 
     1  settlement agreement, including the terms of such, has been given to the
     2  office of victim  services,  the  state  division  of  criminal  justice
     3  services[,  and in the case of a forfeiture based on a felony defined in
     4  article two hundred twenty or section 221.30 or 221.55 of the penal law,
     5  to the state division of substance abuse services].
     6    (b)  No  judgment  or order of forfeiture shall be accepted for filing
     7  unless it is accompanied by an affidavit  from  the  claiming  authority
     8  that  written  notice of judgment or order, including the terms of such,
     9  has been given to the office of victim services, the state  division  of
    10  criminal  justice  services[, and in the case of a forfeiture based on a
    11  felony defined in article two hundred twenty or section 221.30 or 221.55
    12  of the penal law, to the state division of substance abuse services].
    13    § 7. Subdivision 1 of section 3397-b of  the  public  health  law,  as
    14  added by chapter 810 of the laws of 1980, is amended to read as follows:
    15    1. ["Marijuana"] "Marihuana" means [marijuana] marihuana as defined in
    16  [section  thirty-three  hundred  two of this chapter] subdivision six of
    17  section 220.00 of the penal law and shall also include  tetrahydrocanna-
    18  binols or a chemical derivative of tetrahydrocannabinol.
    19    § 8. Section 114-a of the vehicle and traffic law, as added by chapter
    20  163 of the laws of 1973, is amended to read as follows:
    21    § 114-a. Drug.  The  term  "drug" when used in this chapter, means and
    22  includes any substance listed in section thirty-three hundred six of the
    23  public health law and marihuana and concentrated cannabis as defined  in
    24  section 220.00 of the penal law.
    25    §  9.  Subdivisions  5,  6  and  9 of section 220.00 of the penal law,
    26  subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
    27  6 as amended by chapter 1051 of the laws of 1973 and  subdivision  9  as
    28  amended  by  chapter  664  of  the laws of 1985, are amended and two new
    29  subdivisions 21 and 22 are added to read as follows:
    30    5. "Controlled substance" means any substance listed  in  schedule  I,
    31  II,  III,  IV  or  V  of  section thirty-three hundred six of the public
    32  health law other than marihuana, but including concentrated cannabis  as
    33  defined  in  [paragraph  (a) of subdivision four of section thirty-three
    34  hundred two of such law] subdivision twenty-one of this section.
    35    6. "Marihuana" means ["marihuana" or "concentrated cannabis" as  those
    36  terms  are  defined  in  section  thirty-three hundred two of the public
    37  health law] all parts of the plant of the genus Cannabis, whether  grow-
    38  ing  or not; the seeds thereof; the resin extracted from any part of the
    39  plant; and every compound, manufacture, salt,  derivative,  mixture,  or
    40  preparation  of  the plant, its seeds or resin.  It does not include the
    41  mature stalks of the plant, fiber produced from the stalks, oil or  cake
    42  made from the seeds of the plant, any other compound, manufacture, salt,
    43  derivative,  mixture,  or  preparation  of the mature stalks (except the
    44  resin extracted therefrom), fiber, oil, or cake, or the sterilized  seed
    45  of  the plant which is incapable of germination. It does not include all
    46  parts of the plant Cannabis sativa L., whether growing or not, having no
    47  more than three-tenths of one percent tetrahydrocannabinol (THC).
    48    9. "Hallucinogen" means any controlled substance listed  in  [schedule
    49  I(d)]  paragraphs  (5),  [(18),  (19),  (20), (21) and (22)] (17), (18),
    50  (19), (20) and (21) of subdivision (d) of schedule I of section  thirty-
    51  three hundred six of the public health law.
    52    21. "Concentrated cannabis" means:
    53    (a)  the  separated  resin, whether crude or purified, obtained from a
    54  plant of the genus Cannabis; or
    55    (b) a material, preparation,  mixture,  compound  or  other  substance
    56  which  contains more than three percent by weight of delta-9 tetrahydro-

        A. 3506--C                         10
 
     1  cannabinol, or its isomer, delta-8  dibenzopyran  numbering  system,  or
     2  delta-1  tetrahydrocannabinol  or  its  isomer,  delta 1 (6) monoterpene
     3  numbering system.
     4    22.  "Marihuana  products" means marihuana, concentrated cannabis, and
     5  marihuana-infused products containing concentrated marihuana or cannabis
     6  and other ingredients.
     7    § 10.  Subdivision 4 of section 220.06 of the penal law, as amended by
     8  chapter 537 of the laws of 1998, is amended to read as follows:
     9    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
    10  containing  concentrated cannabis as defined in [paragraph (a) of subdi-
    11  vision four of section thirty-three hundred two  of  the  public  health
    12  law]  subdivision  twenty-one of section 220.00 of this article and said
    13  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    14  weight of one-fourth ounce or more; or
    15    § 11. Subdivision 10 of section 220.09 of the penal law, as amended by
    16  chapter 537 of the laws of 1998, is amended to read as follows:
    17    10.  one  or  more  preparations,  compounds,  mixtures  or substances
    18  containing concentrated cannabis as defined in [paragraph (a) of  subdi-
    19  vision  four  of  section  thirty-three hundred two of the public health
    20  law] subdivision twenty-one of section 220.00 of this article  and  said
    21  preparations,  compounds,  mixtures  or  substances  are of an aggregate
    22  weight of one ounce or more; or
    23    § 12. Subdivision 3 of section 220.34 of the penal law, as amended  by
    24  chapter 537 of the laws of 1998, is amended to read as follows:
    25    3.  concentrated  cannabis as defined in [paragraph (a) of subdivision
    26  four of section thirty-three hundred  two  of  the  public  health  law]
    27  subdivision twenty-one of section 220.00 of this article; or
    28    §  13.  Section  220.50 of the penal law, as amended by chapter 627 of
    29  the laws of 1990, is amended to read as follows:
    30  § 220.50 Criminally using drug paraphernalia in the second degree.
    31    A person is guilty of  criminally  using  drug  paraphernalia  in  the
    32  second degree when he knowingly possesses or sells:
    33    1.  Diluents,  dilutants or adulterants, including but not limited to,
    34  any of the following: quinine hydrochloride, mannitol, mannite,  lactose
    35  or  dextrose,  adapted  for the dilution of narcotic drugs or stimulants
    36  under circumstances evincing an intent to use,  or  under  circumstances
    37  evincing  knowledge  that  some  person  intends  to  use,  the same for
    38  purposes of unlawfully mixing, compounding, or otherwise  preparing  any
    39  narcotic  drug or stimulant, other than marihuana or concentrated canna-
    40  bis; or
    41    2. Gelatine capsules, glassine envelopes, vials, capsules or any other
    42  material suitable for the packaging of individual quantities of narcotic
    43  drugs or stimulants under circumstances evincing an intent  to  use,  or
    44  under  circumstances evincing knowledge that some person intends to use,
    45  the same for the  purpose  of  unlawfully  manufacturing,  packaging  or
    46  dispensing  of  any  narcotic drug or stimulant, other than marihuana or
    47  concentrated cannabis; or
    48    3. Scales and balances used or designed for the purpose of weighing or
    49  measuring controlled substances, under circumstances evincing an  intent
    50  to  use,  or  under  circumstances  evincing  knowledge that some person
    51  intends to use, the same for purpose of unlawfully manufacturing,  pack-
    52  aging  or dispensing of any narcotic drug or stimulant, other than mari-
    53  huana or concentrated cannabis.
    54    Criminally using drug paraphernalia in the second degree is a class  A
    55  misdemeanor.

        A. 3506--C                         11
 
     1    § 14.  Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
     2  and 221.40 of the penal law are REPEALED.
     3    §  15.  The penal law is amended by adding two new sections 221.05 and
     4  221.05-a to read as follows:
     5  § 221.05 Personal use of marihuana.
     6    1. Notwithstanding any other provision of this chapter, the  following
     7  acts  are  lawful under state and local law for persons twenty-one years
     8  of age and older:
     9    (a) possessing, using, being under the influence, displaying, purchas-
    10  ing, obtaining, or transporting up to two pounds of marihuana  and  four
    11  and one-half ounces of concentrated cannabis;
    12    (b)  transferring,  without remuneration, to a person twenty-one years
    13  of age and older up to two pounds of marihuana  and  four  and  one-half
    14  ounces of concentrated cannabis;
    15    (c)  possessing, planting, cultivating, harvesting, drying, processing
    16  or transporting not more than six living marihuana plants and possessing
    17  the marihuana and concentrated cannabis produced by the plants;
    18    (d) smoking, ingesting or otherwise consuming marihuana products;
    19    (e) possessing, using, displaying, purchasing, obtaining,  manufactur-
    20  ing,  transporting or giving away to persons twenty-one years of age and
    21  older marihuana or concentrated cannabis paraphernalia; and
    22    (f) assisting another person who is twenty-one years of age and  older
    23  or  allow property to be used in any of the acts described in paragraphs
    24  (a) through (e) of this subdivision.
    25    2. Paragraph (e) of subdivision one of this  section  is  intended  to
    26  meet  the requirements of subsection (f) of Section 863 of Title twenty-
    27  one of the United States Code (21 U.S.C.  §  863  (f))  by  authorizing,
    28  under  state law, any person in compliance with this section to manufac-
    29  ture, possess, or distribute marihuana paraphernalia.
    30    3. Marihuana products involved in any way with conduct  deemed  lawful
    31  by  this section are not contraband nor subject to seizure or forfeiture
    32  of assets under article four hundred eighty  of  this  chapter,  section
    33  thirteen  hundred  eleven  of the civil practice law and rules, or other
    34  applicable law, and no conduct  deemed  lawful  by  this  section  shall
    35  constitute  the  basis  for  approach,  search,  seizure, arrest, and/or
    36  detention.
    37    4. (a) Except as provided in subdivision five of this section, none of
    38  the following shall, individually or in  combination  with  each  other,
    39  constitute reasonable suspicion of a crime or be used as evidence in any
    40  criminal proceeding:
    41    (1) the odor of marihuana or of burnt marihuana;
    42    (2)  the  possession  of  or  the suspicion of possession of marihuana
    43  products;
    44    (3)  The  possession  of  multiple  containers  of  marihuana  without
    45  evidence  of  marihuana  quantity in excess of sixteen ounces or concen-
    46  trated cannabis quantity in excess of four and one-half ounces; or
    47    (4) the presence of cash or currency cannot be used as evidence in any
    48  cases involving unlicensed sale of marihuana.
    49    (b) The possession of not more than two pounds  of  marihuana  or  not
    50  more  than  four  and one-half ounces of concentrated cannabis cannot be
    51  used as evidence in any cases involving unlicensed sale of marihuana.
    52    5. Subdivision four of  this  section  shall  not  apply  when  a  law
    53  enforcement officer is investigating whether a person is operating or in
    54  physical control of a vehicle or watercraft while intoxicated, under the
    55  influence of, or impaired by alcohol or a drug or any combination there-

        A. 3506--C                         12
 
     1  of  in violation of section eleven hundred ninety-two of the vehicle and
     2  traffic law.
     3    6. Possession of greater than two pounds of marihuana and greater than
     4  four and one-half ounces of concentrated cannabis is a violation punish-
     5  able  by  a  fine  of  not more than one hundred twenty-five dollars per
     6  offense.
     7  § 221.05-a Personal cultivation of marihuana.
     8    1. Personal cultivation of marihuana under paragraph (c)  of  subdivi-
     9  sion  one  of section 221.05 of this article is subject to the following
    10  restrictions:
    11    (a) a person shall plant, cultivate, harvest, dry, or  process  plants
    12  in  accordance with local ordinances, if any, adopted in accordance with
    13  subdivision two of this section;
    14    (b) the living plants and any marihuana  produced  by  the  plants  in
    15  excess  of two pounds are kept within the person's private residence, or
    16  upon the grounds of that private residence (e.g., in an  outdoor  garden
    17  area),  are  in  a  locked  space, and are not visible by normal unaided
    18  vision from a public place; and
    19    (c) not more than  six  living  plants  may  be  planted,  cultivated,
    20  harvested,  dried,  or  processed  within a single private residence, or
    21  upon the grounds of that private residence, at one time.
    22    2. (a) A town, city or village may enact and enforce reasonable  regu-
    23  lations  to reasonably regulate the actions and conduct in paragraph (c)
    24  of subdivision one of section 221.05 of this article,  provided  that  a
    25  violation  of  such  a  regulation  is only subject to an infraction and
    26  fine.
    27    (b) Notwithstanding paragraph (a) of this subdivision, no  town,  city
    28  or  village  may completely prohibit persons engaging in the actions and
    29  conduct under paragraph (c) of subdivision one of section 221.05 of this
    30  article.
    31    3. A violation of  subdivision  one  or  two  of  this  section  is  a
    32  violation  punishable by a fine of not more than one hundred twenty-five
    33  dollars per offense.
    34    § 16. Section 221.45 of the penal law, as amended by  chapter  265  of
    35  the  laws of 1979, the opening paragraph as amended by chapter 75 of the
    36  laws of 1995, is amended to read as follows:
    37  § 221.45 [Criminal] Unlicensed sale of marihuana in the third degree.
    38    A person is guilty of [criminal] unlicensed sale of marihuana  in  the
    39  third  degree when he knowingly and unlawfully sells [one or more prepa-
    40  rations, compounds, mixtures or substances containing marihuana and  the
    41  preparations,  compounds,  mixtures  or  substances  are of an aggregate
    42  weight of more than twenty-five grams] with remuneration not  more  than
    43  two  pounds  of  marihuana  or not more than four and one-half ounces of
    44  concentrated cannabis, not including the weight of any other  ingredient
    45  combined  with  marihuana  to  prepare  topical or oral administrations,
    46  food, drink, or other product.
    47    [Criminal] Unlicensed sale of marihuana in  the  third  degree  is  [a
    48  class E felony] subject to the following:
    49    1. A violation punishable by a fine of not more than one hundred twen-
    50  ty-five dollars, for a first offense;
    51    2.  A  violation  publishable  by  a fine of not more than two hundred
    52  fifty dollars for a second offense;
    53    3. A class B misdemeanor and a fine of  not  more  than  five  hundred
    54  dollars for a third or subsequent offense.

        A. 3506--C                         13

     1    §  17.  Section  221.50 of the penal law, as amended by chapter 265 of
     2  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
     3  laws of 1995, is amended to read as follows:
     4  § 221.50 [Criminal] Unlicensed sale of marihuana in the second degree.
     5    A  person  twenty-one  years  of age and older is guilty of [criminal]
     6  unlicensed sale of marihuana in the second degree when he knowingly  and
     7  unlawfully  sells  one  or  more  preparations,  compounds,  mixtures or
     8  substances  containing  marihuana  and  the   preparations,   compounds,
     9  mixtures  or  substances  are  of  an aggregate weight of more than four
    10  ounces, or knowingly and unlawfully  sells  one  or  more  preparations,
    11  compounds,  mixtures  [or  substances  containing marihuana] to a person
    12  less than [eighteen] twenty-one years of age.
    13    [Criminal] Unlicensed sale of marihuana in  the  second  degree  is  a
    14  class [D] E felony.
    15    §  18.  Section  221.55 of the penal law, as amended by chapter 265 of
    16  the laws of 1979, the opening paragraph as amended by chapter 75 of  the
    17  laws of 1995, is amended to read as follows:
    18  § 221.55 [Criminal] Unlicensed sale of marihuana in the first degree.
    19    A  person  is guilty of [criminal] unlicensed sale of marihuana in the
    20  first degree when he knowingly and unlawfully sells  to  a  person  less
    21  than  twenty-one  years  of  age  one  or  more preparations, compounds,
    22  mixtures  or  substances  containing  marihuana  and  the  preparations,
    23  compounds,  mixtures  or  substances  are of an aggregate weight of more
    24  than sixteen ounces.
    25    [Criminal] Unlicensed sale of marihuana in the first degree is a class
    26  [C] E felony.
    27    § 19. The penal law is amended by adding a new section 221.60 to  read
    28  as follows:
    29  § 221.60 Licensing of marihuana production and distribution.
    30    The  provisions  of  this article and of article two hundred twenty of
    31  this title shall not apply to any person exempted from  criminal  penal-
    32  ties  pursuant to the provisions of this chapter or possessing, manufac-
    33  turing, transporting, distributing, selling or transferring marihuana or
    34  concentrated cannabis, or engaged in any other action that is in compli-
    35  ance with article eleven of the alcoholic beverage control law.
    36    § 20. Subdivision 8 of section 1399-n of the  public  health  law,  as
    37  amended  by  chapter  13  of  the  laws  of  2003, is amended to read as
    38  follows:
    39    8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
    40  any  other  matter  or  substance  which  contains tobacco or marihuana;
    41  provided that it does not include  the  use  of  an  electronic  smoking
    42  device  that creates an aerosol or vapor, unless local or state statutes
    43  extend prohibitions on smoking to electronic smoking devices.
    44    § 21. Section 2 of the alcoholic beverage control law, as  amended  by
    45  chapter 406 of the laws of 2014, is amended to read as follows:
    46    §  2. Policy of state and purpose of chapter. It is hereby declared as
    47  the policy of the state that it is necessary to regulate and control the
    48  manufacture, sale and distribution within the state of alcoholic  bever-
    49  ages  and  marihuana products for the purpose of fostering and promoting
    50  temperance in their consumption and respect for and  obedience  to  law;
    51  for  the  primary purpose of promoting the health, welfare and safety of
    52  the people of the state, promoting  temperance  in  the  consumption  of
    53  alcoholic beverages and marihuana products; and, to the extent possible,
    54  supporting  economic  growth, job development, and the state's alcoholic
    55  beverage production industries, marihuana production industries and  its
    56  tourism and recreation industry; and which promotes the conservation and

        A. 3506--C                         14

     1  enhancement  of  state agricultural lands; provided that such activities
     2  do not conflict with the primary regulatory objectives of this  chapter.
     3  It  is  hereby  declared  that such policies will best be carried out by
     4  empowering the liquor authority of the state to determine whether public
     5  convenience  and  advantage will be promoted by the issuance of licenses
     6  to traffic in alcoholic beverages and marihuana products,  the  increase
     7  or  decrease in the number thereof and the location of premises licensed
     8  thereby, subject only to the right of judicial review  provided  for  in
     9  this chapter. It is the purpose of this chapter to carry out these poli-
    10  cies in the public interest.
    11    § 22. Subdivisions 20-a, 20-b, 20-c, 20-d and 20-e of section 3 of the
    12  alcoholic  beverage  control law are renumbered subdivisions 20-j, 20-k,
    13  20-l, 20-m and 20-n and ten new  subdivisions  7-e,  20-a,  20-b,  20-c,
    14  20-d, 20-e, 20-f, 20-g, 20-h and 20-i are added to read as follows:
    15    7-e.  "Concentrated  cannabis" means: (a) the separated resin, whether
    16  crude or purified, obtained from a plant of the genus Cannabis; or
    17    (b) a material, preparation,  mixture,  compound  or  other  substance
    18  which  contains more than three percent by weight of delta-9 tetrahydro-
    19  cannabinol, or its isomer, delta-8  dibenzopyran  numbering  system,  or
    20  delta-1  tetrahydrocannabinol  or  its  isomer,  delta 1 (6) monoterpene
    21  numbering system.
    22    20-a. "Marihuana" means all parts of the plant of the genus  Cannabis,
    23  whether  growing or not; the seeds thereof; the resin extracted from any
    24  part of the plant; and every compound,  manufacture,  salt,  derivative,
    25  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    26  include the mature stalks of the plant, fiber produced from the  stalks,
    27  oil  or cake made from the seeds of the plant, any other compound, manu-
    28  facture, salt, derivative, mixture, or preparation of the mature  stalks
    29  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    30  sterilized seed of the plant which is incapable of germination. It  does
    31  not  include  all parts of the plant Cannabis sativa L., whether growing
    32  or not, having no more than three-tenths of one percent tetrahydrocanna-
    33  binol (THC).
    34    20-b. "Marihuana consumer" means a person twenty-one years of  age  or
    35  older  who purchases marihuana or marihuana products for personal use by
    36  persons twenty-one years of age or older, but not for resale to others.
    37    20-c. "Marihuana processor" means a person licensed by the  bureau  to
    38  purchase  marihuana  and concentrated cannabis from marihuana producers,
    39  to process  marihuana,  concentrated  cannabis,  and  marihuana  infused
    40  products,  package  and label marihuana, concentrated cannabis and mari-
    41  huana infused products for sale in retail outlets, and  sell  marihuana,
    42  concentrated  cannabis  and  marihuana  infused products at wholesale to
    43  marihuana retailers.
    44    20-d. "Marihuana producer" means a person licensed by  the  bureau  to
    45  produce, process, and sell marihuana and concentrated cannabis at whole-
    46  sale  to  marihuana  processors, marihuana retailers, or other marihuana
    47  producers, but not to consumers.
    48    20-e. "Marihuana products" means marihuana, concentrated cannabis, and
    49  marihuana-infused products.
    50    20-f. "Marihuana-infused products" means products that  contain  mari-
    51  huana,  or  concentrated  cannabis  and  are  intended  for human use or
    52  consumption, such as, but not limited to,  edible  products,  ointments,
    53  and tinctures.
    54    20-g.  "Marihuana  retailer"  means a person licensed by the bureau to
    55  purchase  marihuana,  concentrated   cannabis,   and   marihuana-infused
    56  products  from  marihuana  producers  and  marihuana processors and sell

        A. 3506--C                         15

     1  marihuana, marihuana infused products, and concentrated  cannabis  in  a
     2  retail outlet.
     3    20-h.  "Marihuana retailer for on-premises consumption" means a person
     4  licensed by the bureau to purchase marihuana, concentrated cannabis, and
     5  marihuana infused products from marihuana producers,  marihuana  retail-
     6  ers, and marihuana processors and sell marihuana products for a customer
     7  to consume while the customer is within a facility.
     8    20-i.  "Unreasonably  impracticable" means that the measures necessary
     9  to comply with the regulations require such a high investment  of  risk,
    10  money, time or other resource or asset that the operation of a marihuana
    11  establishment is not worthy of being carried out by a reasonably prudent
    12  businessperson.
    13    §  23.  Section 65-b of the alcoholic beverage control law, as amended
    14  by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
    15  sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
    16  paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
    17  2000, is amended to read as follows:
    18    §  65-b.  Offense for one under age of twenty-one years to purchase or
    19  attempt to purchase an alcoholic beverage or marihuana products  through
    20  fraudulent  means. 1.  As used in this section: (a) "A device capable of
    21  deciphering any electronically readable format" or "device"  shall  mean
    22  any  commercial device or combination of devices used at a point of sale
    23  or entry that is capable of  reading  the  information  encoded  on  the
    24  magnetic strip or bar code of a driver's license or non-driver identifi-
    25  cation card issued by the commissioner of motor vehicles;
    26    (b)  "Card  holder"  means any person presenting a driver's license or
    27  non-driver identification card to a licensee, or to the agent or employ-
    28  ee of such licensee under this chapter; and
    29    (c) "Transaction scan" means the process involving a device capable of
    30  deciphering any electronically readable format by which a  licensee,  or
    31  agent  or  employee  of a licensee under this chapter reviews a driver's
    32  license or non-driver identification card presented  as  a  precondition
    33  for  the  purchase  of  an  alcoholic  beverage or marihuana products as
    34  required by subdivision two of this section or  as  a  precondition  for
    35  admission to an establishment licensed for the on-premises sale of alco-
    36  holic  beverages  or marihuana products where admission is restricted to
    37  persons twenty-one years or older.
    38    2. (a) No person under the age of twenty-one years  shall  present  or
    39  offer to any licensee under this chapter, or to the agent or employee of
    40  such licensee, any written evidence of age which is false, fraudulent or
    41  not actually his or her own, for the purpose of purchasing or attempting
    42  to purchase any alcoholic beverage or marihuana products.
    43    (b) No licensee, or agent or employee of such licensee shall accept as
    44  written evidence of age by any such person for the purchase of any alco-
    45  holic  beverage or marihuana products, any documentation other than: (i)
    46  a valid driver's license or non-driver identification card issued by the
    47  commissioner of motor  vehicles,  the  federal  government,  any  United
    48  States  territory, commonwealth or possession, the District of Columbia,
    49  a state government within the United States or a  provincial  government
    50  of the dominion of Canada, or (ii) a valid passport issued by the United
    51  States  government or any other country, or (iii) an identification card
    52  issued by the armed forces of the United States. Upon  the  presentation
    53  of  such  driver's license or non-driver identification card issued by a
    54  governmental entity, such licensee or  agent  or  employee  thereof  may
    55  perform a transaction scan as a precondition to the sale of any alcohol-
    56  ic  beverage. Nothing in this section shall prohibit a licensee or agent

        A. 3506--C                         16
 
     1  or employee from performing such a transaction scan on any of the  other
     2  documents  listed  in  this  subdivision if such documents include a bar
     3  code or magnetic strip that [that] may be scanned by a device capable of
     4  deciphering any electronically readable format.
     5    (c)  In  instances where the information deciphered by the transaction
     6  scan fails to match the information printed on the driver's  license  or
     7  non-driver  identification  card presented by the card holder, or if the
     8  transaction scan indicates that the information is false or  fraudulent,
     9  the  attempted  purchase of the alcoholic beverage or marihuana products
    10  shall be denied.
    11    3. A person violating the provisions of paragraph (a)  of  subdivision
    12  two  of  this  section  shall  be  guilty  of  a  violation and shall be
    13  sentenced in accordance with the following:
    14    (a) For a first violation, the court shall order payment of a fine  of
    15  not more than one hundred dollars and/or an appropriate amount of commu-
    16  nity  service  not  to  exceed  thirty hours. In addition, the court may
    17  order completion of an alcohol awareness program established pursuant to
    18  section 19.25 of the mental hygiene law  or  of  a  marihuana  awareness
    19  program.
    20    (b) For a second violation, the court shall order payment of a fine of
    21  not  less  than  fifty dollars nor more than three hundred fifty dollars
    22  and/or an appropriate amount of community service not  to  exceed  sixty
    23  hours.  The court also shall order completion of an alcohol or marihuana
    24  awareness program as referenced in paragraph (a) of this subdivision  if
    25  such  program  has not previously been completed by the offender, unless
    26  the court determines that attendance at such program is not feasible due
    27  to the lack of availability of such program within  a  reasonably  close
    28  proximity to the locality in which the offender resides or matriculates,
    29  as appropriate.
    30    (c) For third and subsequent violations, the court shall order payment
    31  of  a  fine  of  not less than fifty dollars nor more than seven hundred
    32  fifty dollars and/or an appropriate amount of community service  not  to
    33  exceed  ninety hours. The court also shall order that such person submit
    34  to an evaluation by an appropriate agency certified or licensed  by  the
    35  office  of  alcoholism and substance abuse services to determine whether
    36  the person suffers from [the disease of alcoholism or]  alcohol  [abuse]
    37  use  disorder or cannabis use disorder, unless the court determines that
    38  under the circumstances presented such an evaluation is  not  necessary,
    39  in  which  case  the  court shall state on the record the basis for such
    40  determination. Payment for such evaluation shall be made by such person.
    41  If, based on such evaluation, a need for treatment  is  indicated,  such
    42  person  may  choose  to  participate in a treatment plan developed by an
    43  agency certified or licensed by the office of alcoholism  and  substance
    44  abuse  services.  If  such  person  elects to participate in recommended
    45  treatment, the court shall order that payment of such fine and community
    46  service be suspended pending the completion of such treatment.
    47    (d) Evaluation procedures.  For  purposes  of  this  subdivision,  the
    48  following shall apply:
    49    (i)  The  contents  of an evaluation pursuant to paragraph (c) of this
    50  subdivision shall be used for the sole purpose of [determining  if  such
    51  person  suffers  from the disease of alcoholism or alcohol abuse] deter-
    52  mining if such person meets the criteria for an alcohol use disorder  or
    53  cannabis use disorder.
    54    (ii)  The  agency  designated  by the court to perform such evaluation
    55  shall conduct the evaluation and return the results to the court  within
    56  thirty  days,  subject to any state or federal confidentiality law, rule

        A. 3506--C                         17
 
     1  or regulation governing the confidentiality  of  alcohol  and  substance
     2  [abuse] use disorder treatment records.
     3    (iii) The office of alcoholism and substance abuse services shall make
     4  available  to  each  supreme  court law library in this state, or, if no
     5  supreme court law library is available in a certain county, to the coun-
     6  ty court law library of such county, a list  of  agencies  certified  to
     7  perform  evaluations  as required by subdivision (f) of section 19.07 of
     8  the mental hygiene law.
     9    (iv) All evaluations required under this subdivision shall be in writ-
    10  ing and the person so evaluated or his or her counsel  shall  receive  a
    11  copy of such evaluation prior to its use by the court.
    12    (v)  A minor evaluated under this subdivision shall have, and shall be
    13  informed by the court of, the right to obtain a second opinion regarding
    14  his or her need for  [alcoholism]  treatment  of  an  alcohol  or  other
    15  substance use disorder.
    16    4.  A  person violating the provisions of paragraph (b) of subdivision
    17  two of this section shall be guilty of a violation punishable by a  fine
    18  of  not  more  than one hundred dollars, and/or an appropriate amount of
    19  community service not to exceed thirty hours. In addition, the court may
    20  order completion of an alcohol or substance use disorder training aware-
    21  ness program established  pursuant  to  subdivision  twelve  of  section
    22  seventeen of this chapter where such program is located within a reason-
    23  ably  close  proximity to the locality in which the offender is employed
    24  or resides.
    25    5. No determination of guilt pursuant to this section shall operate as
    26  a disqualification of  any  such  person  subsequently  to  hold  public
    27  office,  public employment, or as a forfeiture of any right or privilege
    28  or to receive any license granted  by  public  authority;  and  no  such
    29  person shall be denominated a criminal by reason of such determination.
    30    6.  In  addition  to  the  penalties otherwise provided in subdivision
    31  three of this section, if a determination is made sustaining a charge of
    32  illegally purchasing or attempting to illegally  purchase  an  alcoholic
    33  beverage  or  marihuana  products,  the  court may suspend such person's
    34  license to drive a motor vehicle and  the  privilege  of  an  unlicensed
    35  person  of  obtaining such license, in accordance with the following and
    36  for the following periods, if it is found that a  driver's  license  was
    37  used  for  the  purpose of such illegal purchase or attempt to illegally
    38  purchase; provided, however, that where a person is  sentenced  pursuant
    39  to  paragraph (b) or (c) of subdivision three of this section, the court
    40  shall impose such license suspension if it  is  found  that  a  driver's
    41  license  was used for the purpose of such illegal purchase or attempt to
    42  illegally purchase:
    43    (a) For a first violation of paragraph (a) of subdivision two of  this
    44  section, a three month suspension.
    45    (b) For a second violation of paragraph (a) of subdivision two of this
    46  section, a six month suspension.
    47    (c)  For  a third or subsequent violation of paragraph (a) of subdivi-
    48  sion two of this section, a suspension for one year or until the  holder
    49  reaches the age of twenty-one, whichever is the greater period of time.
    50    Such  person  may  thereafter apply for and be issued a restricted use
    51  license in accordance with the provisions of section five hundred thirty
    52  of the vehicle and traffic law.
    53    7. (a) In any  proceeding  pursuant  to  subdivision  one  of  section
    54  sixty-five of this article, it shall be an affirmative defense that such
    55  person had produced a driver's license or non-driver identification card
    56  apparently  issued  by a governmental entity, successfully completed the

        A. 3506--C                         18
 
     1  transaction scan, and that the alcoholic beverage or marihuana  products
     2  had  been sold, delivered or given to such person in reasonable reliance
     3  upon such identification and transaction scan. In evaluating the  appli-
     4  cability  of  such  affirmative defense, the liquor authority shall take
     5  into consideration any written policy adopted  and  implemented  by  the
     6  seller to carry out the provisions of this chapter. Use of a transaction
     7  scan  shall  not  excuse  any  licensee  under this chapter, or agent or
     8  employee of such licensee, from the  exercise  of  reasonable  diligence
     9  otherwise   required   by   this   section.  Notwithstanding  the  above
    10  provisions, any such affirmative defense shall not be applicable in  any
    11  other civil or criminal proceeding, or in any other forum.
    12    (b)  A  licensee or agent or employee of a licensee may electronically
    13  or mechanically record and maintain only the information from  a  trans-
    14  action  scan  necessary to effectuate the purposes of this section. Such
    15  information shall be limited to the following: (i) name,  (ii)  date  of
    16  birth,  (iii)  driver's license or non-driver identification number, and
    17  (iv) expiration date. The liquor authority and the state commissioner of
    18  motor vehicles shall jointly  promulgate  any  regulation  necessary  to
    19  govern  the  recording  and  maintenance  of these records by a licensee
    20  under this chapter. The liquor authority and the commissioner of  health
    21  shall  jointly  promulgate  any  regulations necessary to ensure quality
    22  control in the use of transaction scan devices.
    23    8. A licensee or agent or employee of such licensee shall only use the
    24  information recorded and maintained through the use of such devices  for
    25  the  purposes  contained  in  paragraph (a) of subdivision seven of this
    26  section, and shall only use such devices for the purposes  contained  in
    27  subdivision  two  of this section. No licensee or agent or employee of a
    28  licensee shall resell or disseminate  the  information  recorded  during
    29  such  scan  to any third person. Such prohibited resale or dissemination
    30  includes, but is not limited to, any advertising,  marketing  or  promo-
    31  tional  activities.  Notwithstanding  the  restrictions  imposed by this
    32  subdivision, such records may be released pursuant to  a  court  ordered
    33  subpoena  or  pursuant to any other statute that specifically authorizes
    34  the release of such information.  Each  violation  of  this  subdivision
    35  shall  be  punishable  by  a civil penalty of not more than one thousand
    36  dollars.
    37    § 24. Section 65-c of the alcoholic beverage control law, as added  by
    38  chapter  592  of  the  laws  of  1989, paragraph (a) of subdivision 2 as
    39  amended by chapter 409 of the laws of 2016 and subdivision 3 as  amended
    40  by chapter 137 of the laws of 2001, is amended to read as follows:
    41    § 65-c. Unlawful  possession  of  an  alcoholic  beverage or marihuana
    42  product with the intent to consume by persons under the age  of  twenty-
    43  one years. 1. Except as hereinafter provided, no person under the age of
    44  twenty-one years shall possess any alcoholic beverage or marihuana prod-
    45  uct,  as defined in this chapter, with the intent to consume such bever-
    46  age or marihuana product.
    47    2. A person under the age of twenty-one years may possess any alcohol-
    48  ic beverage or marihuana product with intent to consume if the alcoholic
    49  beverage or marihuana product is given:
    50    (a) to a person who is a student in a curriculum  licensed  or  regis-
    51  tered  by  the state education department and the student is required to
    52  taste or imbibe alcoholic beverages or marihuana products  in  on-campus
    53  or  off-campus  courses  which  are  a  part of the required curriculum,
    54  provided such alcoholic beverages or marihuana products  are  used  only
    55  for  instructional  purposes  during  class  conducted  pursuant to such
    56  curriculum; or

        A. 3506--C                         19
 
     1    (b) to the person under twenty-one  years  of  age  by  that  person's
     2  parent or guardian.
     3    3.  Any person who unlawfully possesses an alcoholic beverage or mari-
     4  huana product with intent to consume may be summoned before and examined
     5  by a court having jurisdiction of that charge; provided,  however,  that
     6  nothing  contained herein shall authorize, or be construed to authorize,
     7  a peace officer as defined in subdivision thirty-three of  section  1.20
     8  of the criminal procedure law or a police officer as defined in subdivi-
     9  sion  thirty-four  of  section  1.20  of such law to arrest a person who
    10  unlawfully possesses an alcoholic beverage  or  marihuana  product  with
    11  intent to consume. If a determination is made sustaining such charge the
    12  court may impose a fine not exceeding fifty dollars and/or completion of
    13  an  alcohol  or  drug  awareness program established pursuant to section
    14  19.25 of the mental hygiene law and/or an appropriate amount of communi-
    15  ty service not to exceed thirty hours.
    16    4. No such determination shall operate as a  disqualification  of  any
    17  such person subsequently to hold public office, public employment, or as
    18  a forfeiture of any right or privilege or to receive any license granted
    19  by  public authority; and no such person shall be denominated a criminal
    20  by reason of such determination, nor shall such determination be  deemed
    21  a conviction.
    22    5.  Whenever a peace officer as defined in subdivision thirty-three of
    23  section 1.20 of the criminal procedure law or police officer as  defined
    24  in subdivision thirty-four of section 1.20 of the criminal procedure law
    25  shall  observe  a  person  under  twenty-one  years  of  age  openly  in
    26  possession of an alcoholic beverage or marihuana product as  defined  in
    27  this  chapter,  with  the  intent to consume such beverage or product in
    28  violation of this section, said officer may seize the beverage or  prod-
    29  uct, and shall deliver it to the custody of his or her department.
    30    6.  Any alcoholic beverage or marihuana product seized in violation of
    31  this section is hereby declared a nuisance. The  official  to  whom  the
    32  beverage or product has been delivered shall, no earlier than three days
    33  following the return date for initial appearance on the summons, dispose
    34  of  or  destroy  the  alcoholic  beverage or marihuana product seized or
    35  cause it to be disposed of or destroyed.  Any person claiming  ownership
    36  of  an alcoholic beverage or marihuana product seized under this section
    37  may, on the initial return date of the summons or earlier on  five  days
    38  notice  to  the  official or department in possession of the beverage or
    39  product, apply to the court for an order preventing the  destruction  or
    40  disposal  of  the  alcoholic  beverage  or  marihuana product seized and
    41  ordering the return of that beverage or product.   The court  may  order
    42  the  beverage or product returned if it is determined that return of the
    43  beverage or product would be in the interest  of  justice  or  that  the
    44  beverage or product was improperly seized.
    45    §  25.  The  alcoholic beverage control law is amended by adding a new
    46  section 65-e to read as follows:
    47    § 65-e. Restrictions on personal consumption of marihuana. 1.  Nothing
    48  in sections 221.05 and 221.05-a of the penal law shall be  construed  to
    49  permit any person to:
    50    (a) smoke marihuana in public;
    51    (b)  smoke  marihuana  products in a location where smoking tobacco is
    52  prohibited pursuant to section thirteen  hundred  ninety-nine-o  of  the
    53  public health law;
    54    (c) possess, smoke or ingest marihuana products in or upon the grounds
    55  of  any  school  property  used for school purposes which is owned by or

        A. 3506--C                         20
 
     1  leased to any elementary or secondary school or school board while chil-
     2  dren are present; or
     3    (d)  smoke  or  ingest  marihuana  products while driving, operating a
     4  motor vehicle, boat, vessel, aircraft, or other vehicle used for  trans-
     5  portation.
     6    2. For purposes of this section:
     7    (a)  "Smoke"  means  to  inhale, exhale, burn, or carry any lighted or
     8  heated device or pipe, or any  other  lighted  or  heated  marihuana  or
     9  concentrated  cannabis  product intended for inhalation, whether natural
    10  or synthetic, in any manner or in any form.
    11    (b) "Smoke" does not include the use of an electronic  smoking  device
    12  that  creates an aerosol or vapor, unless local or state statutes extend
    13  prohibitions on smoking to electronic smoking devices.
    14    3. Violations of the restrictions under this section are subject to  a
    15  fine  not  exceeding  twenty-five  dollars  or  an appropriate amount of
    16  community service not to exceed twenty hours.
    17    § 26. Section 140 of the alcoholic beverage control law, as amended by
    18  chapter 810 of the laws of 1981, is amended to read as follows:
    19    § 140. Applicability of chapter before local option.  Until such  time
    20  as  it  shall  become  unlawful to sell alcoholic beverages or marihuana
    21  products in any town or city by the vote of the voters in such  town  or
    22  city  in  the  manner provided in this article, all of the provisions of
    23  this chapter shall apply throughout the entire state. This article shall
    24  not apply to the Whiteface mountain ski center, owned by the  state  and
    25  located in the town of Wilmington, county of Essex.
    26    § 27. Section 141 of the alcoholic beverage control law, as amended by
    27  chapter 319 of the laws of 2007, is amended to read as follows:
    28    §  141.  Local  option for towns. 1. Not less than sixty days nor more
    29  than seventy-five days before the general election in any town at  which
    30  the submission of the questions hereinafter stated is authorized by this
    31  article, a petition signed by electors of the town to a number amounting
    32  to  twenty-five per centum of the votes cast in the town for governor at
    33  the then last preceding  gubernatorial  election,  acknowledged  by  the
    34  signers or authenticated by witnesses as provided in the election law in
    35  respect  of  a  nominating  petition,  requesting the submission at such
    36  election to the electors of the town of one or  more  of  the  following
    37  questions, may be filed with the town clerk:
    38    Question  1.  Tavern  alcoholic  beverage  license.  Shall a person be
    39  allowed to obtain a license to operate a tavern with  a  limited-service
    40  menu (sandwiches, salads, soups, etc.) which permits the tavern operator
    41  to  sell  alcoholic beverages for a customer to drink while the customer
    42  is within the tavern. In addition, unopened containers of beer (such  as
    43  six-packs  and  kegs)  may  be sold "to go" for the customer to open and
    44  drink at another location (such as, for example, at his home)?
    45    Question 2. Restaurant alcoholic beverage license. Shall the  operator
    46  of  a  full-service  restaurant  be  allowed  to  obtain a license which
    47  permits the restaurant  operator  to  sell  alcoholic  beverages  for  a
    48  customer  to drink while the customer is within the restaurant. In addi-
    49  tion, unopened containers of beer (such as six-packs and  kegs)  may  be
    50  sold  "to  go"  for  the  customer to open and drink at another location
    51  (such as, for example, at his home)?
    52    Question 3. Year-round hotel alcoholic  beverage  license.  Shall  the
    53  operator of a year-round hotel with a full-service restaurant be allowed
    54  to obtain a license which permits the year-round hotel to sell alcoholic
    55  beverages  for  a  customer  to  drink  while the customer is within the
    56  hotel. In addition, unopened containers of beer (such as  six-packs  and

        A. 3506--C                         21
 
     1  kegs)  may be sold "to go" for the customer to open and drink at another
     2  location (such as, for example, at his home)?
     3    Question  4. Summer hotel alcoholic beverage license. Shall the opera-
     4  tor of a summer hotel with a full-service restaurant, open for  business
     5  only  within  the  period from May first to October thirty-first in each
     6  year, be allowed to obtain a license which permits the summer  hotel  to
     7  sell  alcoholic  beverages for a customer to drink while the customer is
     8  within the hotel. In addition, unopened  containers  of  beer  (such  as
     9  six-packs  and  kegs)  may  be sold "to go" for the customer to open and
    10  drink at another location (such as, for example, at his home)?
    11    Question 5. Retail package liquor  or  wine  store  license.  Shall  a
    12  person  be  allowed  to  obtain  a  license  to operate a retail package
    13  liquor-and-wine or wine-without-liquor store, to sell "to  go"  unopened
    14  bottles  of  liquor or wine to a customer to be taken from the store for
    15  the customer to open and drink at another location (such as,  for  exam-
    16  ple, at his home)?
    17    Question 6. Off-premises beer and wine cooler license. Shall the oper-
    18  ator  of  a  grocery  store,  drugstore  or supply ship operating in the
    19  harbors of Lake Erie be allowed to obtain a license  which  permits  the
    20  operator  to sell "to go" unopened containers of beer (such as six-packs
    21  and kegs) and wine coolers with not more than 6% alcohol to  a  customer
    22  to be taken from the store for the customer to open and drink at another
    23  location (such as, for example, at his home)?
    24    Question  7.  Baseball  park,  racetrack,  athletic  field  or stadium
    25  license.  Shall a person be allowed to obtain a  license  which  permits
    26  the sale of beer for a patron's consumption while the patron is within a
    27  baseball  park,  racetrack,  or  other  athletic  field or stadium where
    28  admission fees are charged?
    29    Question 8. Marihuana retailer license. Shall a person be  allowed  to
    30  obtain  a  license to operate a retail marihuana store, to sell unopened
    31  marihuana products to a customer to be taken  from  the  store  for  the
    32  customer  to open and consume at another location (such as, for example,
    33  at his home)?
    34    Question 9. On-premises marihuana retailer licenses. Shall a person be
    35  allowed to obtain a license to operate a facility where the  service  of
    36  food  is only incidental and permits the facility operator to sell mari-
    37  huana products for a customer to consume while the  customer  is  within
    38  the facility?
    39    2.  Upon  the due filing of such petition complying with the foregoing
    40  provisions, such questions shall be submitted in accordance therewith.
    41    3. The town clerk shall, within five days  from  the  filing  of  such
    42  petition  in  his office, prepare and file in the office of the board of
    43  elections, as defined by the election law, of the  county,  a  certified
    44  copy  of such petition. Such questions may be submitted only at the time
    45  of a general election. At least ten days before such  general  election,
    46  the  board of elections shall cause to be printed and posted in at least
    47  four public places in such town, a notice of the fact that  all  of  the
    48  local  option  questions  will be voted on at such general election; and
    49  the said notice shall also be published at least five  days  before  the
    50  vote is to be taken once in a newspaper published in the county in which
    51  such town is situated, which shall be a newspaper published in the town,
    52  if  there  be one. Whenever such questions are to be submitted under the
    53  provisions of this article the board of elections shall cause the proper
    54  ballot labels to be printed and placed on all voting  machines  used  in
    55  the  town  in  which  such  questions  are  to be submitted, in the form
    56  prescribed by the election law in respect of other propositions or ques-

        A. 3506--C                         22
 
     1  tions, upon the face of which shall be printed in full  the  said  ques-
     2  tions.  Any  elector qualified to vote for state officers shall be enti-
     3  tled to vote upon such local option questions. As soon as  the  election
     4  shall  be  held, a return of the votes cast and counted shall be made as
     5  provided by law and the returns canvassed by the inspectors of election.
     6  If a majority of the votes cast shall be in the negative on all  or  any
     7  of  the  questions, no person shall, after such election, sell alcoholic
     8  beverages or marihuana products in such town contrary to such vote or to
     9  the provisions of this chapter; provided, however, that  the  result  of
    10  such vote shall not shorten the term for which any license may have been
    11  lawfully  issued under this chapter or affect the rights of the licensee
    12  thereunder; and no person shall after such vote apply for or  receive  a
    13  license  to  sell alcoholic beverages or marihuana products at retail in
    14  such town contrary to such vote, until,  by  referendum  as  hereinafter
    15  provided for, such sale shall again become lawful.
    16    §  28.  Subdivision 3 of section 142 of the alcoholic beverage control
    17  law is amended to read as follows:
    18    3. If a majority of the votes cast shall be in the negative on any  or
    19  all  of  the questions, no person shall, after such election, sell alco-
    20  holic beverages or marihuana products in such city contrary to such vote
    21  or to the provisions of this chapter; provided, however, that the result
    22  of such vote shall not shorten the term for which any license  may  have
    23  been  lawfully  issued  under  this  chapter or affect the rights of the
    24  licensee thereunder; and no person shall after such vote  apply  for  or
    25  receive  a  license to sell alcoholic beverages or marihuana products at
    26  retail in such city contrary to such vote, until, by referendum as here-
    27  inafter provided for, such sale shall again become lawful.
    28    § 29. Subdivision 2 of section 147 of the alcoholic  beverage  control
    29  law is amended to read as follows:
    30    2.  If  at  the time of any subsequent submission of such questions it
    31  shall be lawful to sell alcoholic beverages or marihuana products and  a
    32  majority  of  the votes cast shall be in the negative on such questions,
    33  then all of the provisions of  this  article  applicable  thereto  shall
    34  become effective.
    35    §  30. Article 11 and sections 160, 161, 162, 163 and 164 of the alco-
    36  holic beverage control law, article 11 and sections 160,  161,  162  and
    37  163  as  renumbered  by  chapter 725 of the laws of 1954, are renumbered
    38  article 12 and sections 200, 201, 202, 203, and 204.
    39    § 31. The alcoholic beverage control law is amended by  adding  a  new
    40  article 11 to read as follows:
    41                                 ARTICLE 11
    42                      PROVISIONS RELATING TO MARIHUANA
    43  Section 165. Definitions.
    44          166. Bureau of marihuana policy.
    45          167. Administration of the bureau of marihuana policy.
    46          168. Authority to promulgate rules and regulations.
    47          169. Licenses issued.
    48          170. Licensing limits.
    49          171. Actions taken pursuant to a valid license are lawful.
    50          172. General prohibitions and restrictions.
    51          173. Certain  officials  not to be interested in the manufacture
    52                 or sale of marihuana.
    53          174. Provisions governing initial rulemaking.
    54          175. Provisions governing marihuana producers.
    55          176. Provisions governing processors.
    56          177. Provisions governing marihuana retailers.

        A. 3506--C                         23
 
     1          178. Provisions   governing   marihuana   on-site    consumption
     2                 licenses.
     3          179. Advertising and forms for the issuance of licenses.
     4          180. Packaging of marihuana products.
     5          181. Labeling of marihuana products.
     6          182. Seed to sale tracking.
     7          183. Renewals of licenses and permits.
     8          184. Information to be provided by applicants.
     9          185. Notification to towns, cities or villages.
    10          186. Licenses, publication, general provisions.
    11          187. Revocation of licenses for cause.
    12          188. Procedure for revocation or cancellation.
    13          189. Decisions  of  the bureau of marihuana policy and review by
    14                 the courts.
    15          190. Minority and women-owned businesses and incubator program.
    16          191. Disposition of moneys received for license fees.
    17          192. Persons forbidden to traffic in marihuana.
    18          193. Surrender of license; notice to police officials.
    19          194. Protections for the use of marihuana.
    20          195. Discrimination protections for  the  use  of  marihuana  or
    21                 medical marihuana.
    22          196. Employment protections.
    23          197. Protections for persons under state supervision.
    24          198. Professional and medical record keeping.
    25    §  165. Definitions. Whenever used in this chapter, unless the context
    26  requires otherwise:
    27    1. "Applicant" means an owner applying for a license pursuant to  this
    28  article.
    29    2."Bureau" means the bureau of marihuana policy within the authority.
    30    3.  "Commercial  marihuana activity" means the production, processing,
    31  possession, storing, laboratory testing, packaging, labeling,  transpor-
    32  tation,  delivery,  or  sale  of  marihuana  and  marihuana  products as
    33  provided for in this article.
    34    4. "Customer" means a natural person twenty-one years of age or older.
    35    5. "Delivery" means a licensee  that  delivers  retail  marihuana  and
    36  marihuana  products  to  customers. Retailer licensees and microbusiness
    37  licensees are  permitted  to  deliver  retail  marihuana  and  marihuana
    38  products  to  customers  without  obtaining  an  additional  distributor
    39  license.
    40    6. "Distribution" means the procurement, sale, and transport of  mari-
    41  huana  and marihuana products between entities licensed pursuant to this
    42  article.
    43    7. "Distributor" means a licensee for the  distribution  of  marihuana
    44  and  marihuana products between entities licensed pursuant to this arti-
    45  cle.  Producer licensees, processor licensees, and microbusiness  licen-
    46  sees  are  permitted  to  distribute  marihuana  and  marihuana products
    47  between entities licensed pursuant to this article without obtaining  an
    48  additional distributor license.
    49    8.  "Labeling"  means  any label or other written, printed, or graphic
    50  matter upon a marihuana product, or upon its container  or  wrapper,  or
    51  that accompanies any marihuana product.
    52    9.  "License"  means  a  state license issued under this article. Each
    53  license issued pursuant to this article corresponds to a single place of
    54  business.
    55    10. "Licensee" means any person or entity holding a license under this
    56  article.

        A. 3506--C                         24
 
     1    11. "Marihuana" means all parts of the plant of  the  genus  cannabis,
     2  whether  growing or not; the seeds thereof; the resin extracted from any
     3  part of the plant; and every compound,  manufacture,  salt,  derivative,
     4  mixture,  or  preparation  of the plant, its seeds or resin. It does not
     5  include  the mature stalks of the plant, fiber produced from the stalks,
     6  oil or cake made from the seeds of the plant, any other compound,  manu-
     7  facture,  salt, derivative, mixture, or preparation of the mature stalks
     8  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
     9  sterilized  seed of the plant which is incapable of germination. It does
    10  not include all parts of the plant Cannabis Sativa I.,  whether  growing
    11  or not, having no more than three-tenths of one percent tetrahydrocanna-
    12  binol (THC).
    13    12.  "Marihuana  products" means marihuana, concentrated cannabis, and
    14  marihuana-infused products.
    15    13. "Marihuana-infused products" means products that contain  marihua-
    16  na,  or concentrated cannabis and are intended for human use or consump-
    17  tion, such as, but not limited to, edible products, ointments, and tinc-
    18  tures.
    19    14. "Microbusiness" means a licensee  that  may  act  as  a  marihuana
    20  producer for the cultivation of marihuana on an area less than ten thou-
    21  sand  square feet, a marihuana processor, and a marihuana retailer under
    22  this article, provided such  licensee  complies  with  all  requirements
    23  imposed by this article on licensed producers, processors, and retailers
    24  to the extent the licensee engages in such activities. A "microbusiness"
    25  may  distribute marihuana and marihuana products to other licensed mari-
    26  huana businesses and may deliver marihuana  and  marihuana  products  to
    27  customers.
    28    15.  "Nursery"  means  a  licensee that produces only clones, immature
    29  plants, seeds, and other agricultural products used specifically for the
    30  planting, propagation, and cultivation of marihuana.
    31    16. "Onsite consumption" means a marihuana retail licensee or a  mari-
    32  huana  microbusiness that permits the consumption of marihuana and mari-
    33  huana products at the licensee's place of business.
    34    17. "Owner" means an individual with an aggregate  ownership  interest
    35  of  twenty  percent or more in a marihuana business licensed pursuant to
    36  this article, unless such interest is solely a security, lien, or encum-
    37  brance, or an individual that will be participating  in  the  direction,
    38  control, or management of the licensed marihuana business.
    39    18. "Package" means any container or receptacle used for holding mari-
    40  huana or marihuana products.
    41    19.  "Processor"  means  a  licensee that compounds, blends, extracts,
    42  infuses, or otherwise makes or prepares marihuana products, but not  the
    43  production  of  the  marihuana  contained  in  the  marihuana product. A
    44  "processor" may also distribute  marihuana  and  marihuana  products  to
    45  other licensed marihuana businesses.
    46    20.  "Producer"  means a licensee that plants, grows, harvests, dries,
    47  cures, grades, or trims marihuana.  A  "producer"  may  also  distribute
    48  marihuana to other licensed marihuana businesses.
    49    21.  "Retailer"  means  a  licensee  that sells marihuana or marihuana
    50  products directly to customers. A "retailer" may deliver  marihuana  and
    51  marihuana products to customers.
    52    22. "Testing facility" means a licensee that tests marihuana and mari-
    53  huana products.
    54    §  166. Bureau of marihuana policy. There is hereby established in the
    55  authority a bureau of marihuana policy.  The  bureau  shall  consist  of
    56  three  members.  The  members  of  the  bureau shall be appointed by the

        A. 3506--C                         25
 
     1  governor by and with the advice and consent of the senate. Not more than
     2  two members of the bureau shall belong to the same political party.  The
     3  chairman  of  the  bureau  of  marihuana policy heretofore appointed and
     4  designated by the governor and the remaining members of such board here-
     5  tofore appointed by the governor shall continue to serve as chairman and
     6  members  of  the bureau until the expiration of the respective terms for
     7  which they were appointed. Upon the expiration of such respective  terms
     8  the  successors of such chairman and members shall be appointed to serve
     9  for a term of three years each and  until  their  successors  have  been
    10  appointed  and  qualified.  The commissioners shall, when performing the
    11  work of the bureau, be compensated  at  a  rate  of  two  hundred  sixty
    12  dollars  per  day,  together  with an allowance for actual and necessary
    13  expenses incurred in the discharge of their duties.
    14    § 167. Administration of the bureau  of  marihuana  policy.    1.  The
    15  bureau  established  in  section  one  hundred sixty-six of this article
    16  shall heretofore have the  power,  duty,  purpose,  responsibility,  and
    17  jurisdiction  to  regulate  commercial marihuana activity as provided in
    18  the Marihuana Regulation and Taxation Act.
    19    2. The bureau shall have the exclusive  authority  to  create,  issue,
    20  renew,  discipline, suspend, or revoke licenses for commercial marihuana
    21  activities in accordance with the state administrative procedure act.
    22    (a) The bureau shall consult with the department  of  agriculture  and
    23  markets  regarding  rules, regulations, and licenses for the cultivation
    24  of marihuana.
    25    (b) The bureau shall notify the public  of  all  licensing  rules  and
    26  regulations  promulgated  pursuant to the Marihuana Regulation and Taxa-
    27  tion Act, which shall include instructional materials. In addition,  the
    28  bureau  shall  hold public forums in all regions of the state, as deter-
    29  mined by the department of economic  development,  to  help  the  public
    30  understand and navigate the licensing process.
    31    (c)  The  bureau  shall begin issuing licenses not later than eighteen
    32  months following the effective date  of  the  Marihuana  Regulation  and
    33  Taxation Act.
    34    (i) The bureau shall begin accepting applications no more than fifteen
    35  months  following  the  effective  date  of the Marihuana Regulation and
    36  Taxation Act.
    37    (ii) Pursuant to section one hundred eighty-five of this article,  the
    38  bureau  shall  notify  any town, city or village of any applications for
    39  license.
    40    (iii) The bureau shall  issue  an  annual  license  to  the  applicant
    41  between  forty-five  and  ninety  days  after  receipt of an application
    42  unless the bureau finds the applicant is not in  compliance  with  regu-
    43  lations  enacted  pursuant  to  section one hundred seventy-four of this
    44  article or the department is notified by  the  relevant  town,  city  or
    45  village that the applicant is not in compliance with such regulations.
    46    (d)  The bureau shall have the authority to collect fees in connection
    47  with activities they regulate concerning marihuana pursuant  to  section
    48  one hundred ninety-one of this article.
    49    3. (a) Not later than ten months following the enactment of this arti-
    50  cle,  each  town,  city  or village may enact an ordinance or regulation
    51  specifying the entity within the town, city or village that is responsi-
    52  ble for processing applications submitted for a  license  to  operate  a
    53  marihuana  establishment  within  the  boundaries  of  the town, city or
    54  village and for the issuance of such licenses should the issuance by the
    55  town, city or village become necessary  because  of  a  failure  by  the
    56  bureau to adopt regulations pursuant to section one hundred seventy-four

        A. 3506--C                         26
 
     1  of  this  article  or  because of a failure by the bureau to process and
     2  issue licenses as required by subdivision two of this section.
     3    (b)  A  town, city or village may enact ordinances or regulations, not
     4  in conflict with this section or with regulations or legislation enacted
     5  pursuant to this section, governing the time, place, manner  and  number
     6  of  marihuana  establishment operations; establishing procedures for the
     7  issuance, suspension, and revocation of a license issued by the  munici-
     8  pality  in  accordance  with paragraphs (c) and (d) of this subdivision,
     9  such procedures to be subject to all requirements of the state  adminis-
    10  trative  procedure act or any successor provision, establishing a sched-
    11  ule of annual operating, licensing, and application fees  for  marihuana
    12  establishments,  provided,  the  application fee shall only be due if an
    13  application is submitted to a town, city or village in  accordance  with
    14  paragraph  (d) of this subdivision and a licensing fee shall only be due
    15  if a license is issued by a municipality in  accordance  with  paragraph
    16  (c)  or  (d)  of  this subdivision; and establishing civil penalties for
    17  violation of an ordinance or regulation governing the time,  place,  and
    18  manner  of  a  marihuana  establishment that may operate in such a town,
    19  city or village. A town, city or village may prohibit the  operation  of
    20  marihuana  production facilities, marihuana processing facilities, mari-
    21  huana retail stores, marihuana  microbusinesses,  or  marihuana  testing
    22  facilities through the enactment of an ordinance.
    23    (c)  If  the  bureau  does  not issue a license to an applicant within
    24  ninety days of receipt of  the  application  filed  in  accordance  with
    25  subdivision two and does not notify the applicant of the specific reason
    26  for its denial, in writing and within such time period, or if the bureau
    27  has  adopted regulations pursuant to section one hundred seventy-four of
    28  this article but has not issued any licenses within eighteen  months  of
    29  the effective date of this article, for any town, city or village enact-
    30  ing  an  ordinance  providing  for local processing of applications, the
    31  applicant may resubmit its application directly to  the  town,  city  or
    32  village  pursuant  to  paragraph  (a) of this subdivision, and the town,
    33  city or village may issue an annual license to the  applicant.  A  town,
    34  city  or  village  issuing  a license to an applicant shall do so within
    35  ninety days of receipt of the resubmitted application unless  the  town,
    36  city  or  village finds and notifies the applicant that the applicant is
    37  not in compliance with the ordinances and regulations made  pursuant  to
    38  paragraph  (b) of this subdivision in effect at the time the application
    39  is resubmitted and the town, city or village shall notify the bureau  if
    40  an annual license has been issued to the applicant. If an application is
    41  submitted  to  a  town, city or village under this paragraph, the bureau
    42  shall forward to the town, city or village the application fee  paid  by
    43  the applicant to the bureau upon request by the town, city or village. A
    44  license  issued by a town, city or village in accordance with this para-
    45  graph shall have the same force and effect as a license  issued  by  the
    46  bureau in accordance with subdivision two of this section and the holder
    47  of such license shall not be subject to regulation or enforcement by the
    48  bureau  during the term of that license. A subsequent or renewed license
    49  may be issued under this paragraph on an annual basis only  upon  resub-
    50  mission  to  the town, city or village of a new application submitted to
    51  the bureau pursuant to subdivision two of this section.  Nothing in this
    52  paragraph shall limit such relief as may be available  to  an  aggrieved
    53  party  under section four hundred one of the state administrative proce-
    54  dure act or any successor provision.
    55    (d) If the bureau does not adopt regulations required by  section  one
    56  hundred  seventy-four of this article, an applicant may submit an appli-

        A. 3506--C                         27
 
     1  cation directly to a town, city or village fifteen months following  the
     2  effective  date  of this article and the town, city or village may issue
     3  an annual license to the applicant. A town, city or  village  issuing  a
     4  license to an applicant shall do so within ninety days of receipt of the
     5  application  unless  it finds and notifies the applicant that the appli-
     6  cant is not in compliance with ordinances and regulations made  pursuant
     7  to  paragraph  (b) of this subdivision in effect at the time of applica-
     8  tion and shall notify the bureau if an annual license has been issued to
     9  the applicant. A license issued by a town, city or village in accordance
    10  with this paragraph shall have the same force and effect  as  a  license
    11  issued  by the bureau in accordance with subdivision two of this section
    12  and the licensee shall not be subject to regulation  or  enforcement  by
    13  the  bureau  during  the  term  of that license. A subsequent or renewed
    14  license may be issued under this paragraph on an  annual  basis  if  the
    15  bureau  has  not  adopted  regulations  required  by section one hundred
    16  seventy-four of this article at least ninety days prior to the date upon
    17  which such subsequent or renewed license would be effective  or  if  the
    18  department  has  adopted  regulations  pursuant  to  section one hundred
    19  seventy-four of this article but has not, at least ninety days after the
    20  adoption of such regulations, issued licenses  pursuant  to  subdivision
    21  two of this section.
    22    4.  The bureau may limit the total amount of marihuana produced in New
    23  York based on the demand for marihuana and marihuana products and in  an
    24  effort to reduce illicit marihuana markets.
    25    § 168. Authority to promulgate rules and regulations. The bureau shall
    26  promulgate and implement all rules and regulations as it deems necessary
    27  to carry out the requirements, purpose and intent of this article.
    28    §  169.  Licenses  issued.  The  following  kinds of licenses shall be
    29  issued by the bureau for the manufacture, production, processing,  test-
    30  ing, retail sale and delivery of marihuana:
    31    1. marihuana nursery license;
    32    2. marihuana producer license;
    33    3. marihuana processor license;
    34    4. marihuana distributor license;
    35    5. marihuana retailer license;
    36    6. marihuana microbusiness license;
    37    7. marihuana on-site consumption license;
    38    8. marihuana delivery license;
    39    9. marihuana testing license; and
    40    10. any other type of licenses allowed by the bureau.
    41    §  170.  Licensing  limits.  1. All licenses issued under this article
    42  shall bear a clear  designation  indicating  that  the  license  is  for
    43  commercial  marihuana  activity as distinct from medical marihuana manu-
    44  factured, produced and sold for medical use pursuant to title five-A  of
    45  article thirty-three of the public health law.
    46    2.  An  owner  of a marihuana retail store shall not hold a license in
    47  another license category of section one hundred sixty-nine of this arti-
    48  cle, shall not own or have ownership  interest  in  an  entity  licensed
    49  pursuant  to  title  five-A of article thirty-three of the public health
    50  law, and shall hold not more than three retail licenses.
    51    3. An owner of a marihuana microbusiness shall not hold a  license  in
    52  another license category of section one hundred sixty-nine of this arti-
    53  cle,  shall  not  own  or have ownership interest in a facility licensed
    54  pursuant to title five-A of article thirty-three of  the  public  health
    55  law, and shall hold not more than one microbusiness license.

        A. 3506--C                         28
 
     1    4.  An  owner of a marihuana testing facility shall not hold a license
     2  in another license category of section one hundred  sixty-nine  of  this
     3  article  and  shall  not  own  or  have ownership interest in a facility
     4  licensed pursuant to title five-A of article thirty-three of the  public
     5  health law.
     6    5.  Only a marihuana retail licensee may be issued an on-site consump-
     7  tion license.
     8    6. Only a marihuana retail licensee, marihuana microbusiness licensee,
     9  or marihuana delivery licensee may be  permitted  to  deliver  marihuana
    10  directly to customers.
    11    7.  Only  a marihuana producer licensee, marihuana processor licensee,
    12  marihuana microbusiness licensee, or marihuana distributor licensee  may
    13  distribute  marihuana and marihuana products to other licensed marihuana
    14  businesses.
    15    8. No marihuana delivery owner may hold more than one marihuana deliv-
    16  ery license.
    17    9. No marihuana distributor owner may hold  more  than  one  marihuana
    18  distributor license.
    19    10. The bureau shall issue a series of producer licenses distinguished
    20  by  canopy size and type of lighting used, natural/outdoor light, indoor
    21  light, or mixed-light.
    22    11. No marihuana producer owner  may  hold  more  than  one  marihuana
    23  producer and one marihuana processor license.
    24    12.  No  marihuana  processor owner may hold more than three marihuana
    25  processor licenses.
    26    13. An owner of a marihuana nursery may hold a marihuana  producer  or
    27  marihuana  processor license but shall not hold another license category
    28  of section one hundred sixty-nine of this article, shall not own or have
    29  ownership interest in a facility licensed pursuant to  title  five-A  of
    30  article  thirty-three  of the public health law, and shall hold not more
    31  than one nursery license. Licensing limits imposed by subdivisions elev-
    32  en and twelve of this section shall apply.
    33    § 171. Actions taken pursuant  to  a  valid  license  are  lawful.  No
    34  contracts  related to the operation of licenses under this chapter shall
    35  be deemed unenforceable on the basis that the actions permitted pursuant
    36  to the license are prohibited by federal law. The following actions  are
    37  not  unlawful  as  provided  under this chapter, shall not be an offense
    38  under any state or local law, and shall not result in  any  civil  fine,
    39  seizure, or forfeiture of assets against any person acting in accordance
    40  with this chapter:
    41    1.  Actions of a licensee, its employees, and its agents, as permitted
    42  by this chapter and consistent with rules and regulations of the bureau,
    43  pursuant to a valid license issued by the bureau.
    44    2. Actions of those who allow property to be used by a  licensee,  its
    45  employees,  and  its agents, as permitted by this chapter and consistent
    46  with rules and regulations of the bureau, pursuant to  a  valid  license
    47  issued by the bureau.
    48    3.  Actions  of any person or entity, their employees, or their agents
    49  providing a service to a licensee or potential licensee, as permitted by
    50  this chapter and consistent with rules and regulations  of  the  bureau,
    51  relating to the formation of a business.
    52    4. The purchase, possession, or consumption of marihuana, as permitted
    53  by this chapter and consistent with rules and regulations of the bureau,
    54  obtained from a validly licensed retailer.
    55    § 172. General prohibitions and restrictions. 1. No marihuana products
    56  may be imported into or exported from New York state.

        A. 3506--C                         29
 
     1    2.  No person may be issued a license under section one hundred sixty-
     2  nine of this article if they have been convicted of an  offense  related
     3  to  the  functions,  or duties of owning and operating a business within
     4  three years of the application date, except that if  the  bureau  deter-
     5  mines  that  the  owner or licensee is otherwise suitable to be issued a
     6  license, and granting the license would not  compromise  public  safety,
     7  the  bureau  shall conduct a thorough review of the nature of the crime,
     8  conviction, circumstances, and evidence of rehabilitation of the  owner,
     9  and shall evaluate the suitability of the owner or licensee to be issued
    10  a license based on the evidence found through the review. In determining
    11  which  offenses  are substantially related to the functions or duties of
    12  owning and operating a business, the bureau shall include,  but  not  be
    13  limited to, the following:
    14    (a) A felony conviction involving fraud, money laundering, forgery and
    15  other unlawful conduct related to owning and operating a business.
    16    (b)  A  felony  conviction  for hiring, employing, or using a minor in
    17  transporting, carrying, selling, giving away,  preparing  for  sale,  or
    18  peddling,  any  controlled substance to a minor; or selling, offering to
    19  sell, furnishing, offering to  furnish,  administering,  or  giving  any
    20  controlled substance to a minor.
    21    3.  No  license of any kind may be issued to a person under the age of
    22  twenty-one years, nor shall any licensee employ anyone under the age  of
    23  twenty-one years.
    24    §  173.  Certain  officials not to be interested in the manufacture or
    25  sale of marihuana. 1.  Except  as  otherwise  provided  in  section  one
    26  hundred  twenty-eight-a  of  this  chapter, it shall be unlawful for any
    27  police commissioner, police  inspector,  captain,  sergeant,  roundsman,
    28  patrolman  or other police official or subordinate of any police depart-
    29  ment in the state, to be either directly or indirectly interested in the
    30  manufacture or sale of marihuana or to offer for sale, or  recommend  to
    31  any  licensee  any  marihuana.  A  person  may not be denied any license
    32  granted under the provisions of sections fifty-four, fifty-five,  fifty-
    33  nine,  sixty-three,  sixty-four,  seventy-nine,  eighty-one,  or article
    34  seven of this chapter solely on the grounds of being  the  spouse  of  a
    35  public servant described in this subdivision. The solicitation or recom-
    36  mendation  made to any licensee, to purchase any marihuana by any police
    37  official or subordinate as  described  in  this  subdivision,  shall  be
    38  presumptive  evidence of the interest of such official or subordinate in
    39  the manufacture or sale of marihuana.
    40    2. No elective village officer shall be subject to the limitations set
    41  forth in subdivision one of this section unless  such  elective  village
    42  officer  shall  be assigned duties directly relating to the operation or
    43  management of the police department.
    44    § 174. Provisions governing initial rulemaking. 1. Within two  hundred
    45  forty  days  after  the effective date of this article, the bureau shall
    46  perform such acts, prescribe such forms and make such rules, regulations
    47  and orders as it may deem necessary or proper to  fully  effectuate  the
    48  provisions of this article.
    49    2. The bureau shall promulgate necessary rules and regulations govern-
    50  ing the licensing of marihuana producers, marihuana processors, marihua-
    51  na retailers and marihuana retailers for consumption on-site, including:
    52    (a) prescribing forms and establishing application, reinstatement, and
    53  renewal fees;
    54    (b) the qualifications for licensure;

        A. 3506--C                         30
 
     1    (c)  the  books and records to be created and maintained by licensees,
     2  the reports to be made thereon to the  bureau,  and  inspection  of  the
     3  books and records;
     4    (d)  methods  of producing, processing, and packaging marihuana, mari-
     5  huana-infused products, and concentrated cannabis; conditions of sanita-
     6  tion, and standards of ingredients, quality, and identity  of  marihuana
     7  products produced, processed, packaged, or sold by licensees; and
     8    (e)  security  requirements for marihuana retailers and premises where
     9  marihuana products are produced or processed, and safety  protocols  for
    10  licensees and their employees.
    11    3.  The  bureau shall promulgate rules and regulations that are calcu-
    12  lated to:
    13    (a) prevent the distribution of marihuana to persons under  twenty-one
    14  years of age;
    15    (b)  prevent  the  revenue  from  the  sale of marihuana from going to
    16  organized criminal enterprises and cartels;
    17    (c) prevent the diversion  of  marihuana  from  this  state  to  other
    18  states;
    19    (d)  prevent  marihuana  activity  that  is legal under state law from
    20  being used as a cover or pretext for the trafficking  of  other  illegal
    21  drugs or other illegal activity;
    22    (e)  prevent  violence  and the use of firearms in the cultivation and
    23  distribution of marihuana;
    24    (f) prevent impaired driving and the  exacerbation  of  other  adverse
    25  public health consequences associated with the use of marihuana;
    26    (g) prevent the growing of marihuana on public lands and the attendant
    27  public safety and environmental dangers posed by marihuana production on
    28  public lands; and
    29    (h) prevent the possession and use of marihuana on federal property.
    30    4.  Rules and regulations promulgated by the bureau pursuant to subdi-
    31  vision three of this section shall not prohibit the operation  of  mari-
    32  huana  establishments  either expressly or through regulations that make
    33  their operation unreasonably impracticable.
    34    5. The bureau, in consultation with the department of agriculture  and
    35  markets  and the department of environmental conservation, shall promul-
    36  gate necessary rules and regulations governing the  safe  production  of
    37  marihuana, including restrictions on the use of pesticides, insecticides
    38  and herbicides.
    39    §  175. Provisions governing marihuana producers. 1. No producer shall
    40  sell, or agree to sell or deliver in the state any  marihuana  products,
    41  as the case may be, except in sealed containers containing quantities in
    42  accordance  with size standards pursuant to rules adopted by the bureau.
    43  Such containers shall  have  affixed  thereto  such  labels  as  may  be
    44  required  by  the  rules  of the bureau, together with all necessary New
    45  York state excise tax stamps, as required by law.
    46    2. No producer shall deliver any marihuana products, except  in  vehi-
    47  cles  owned and operated by such producer, or hired and operated by such
    48  producer from a trucking or transportation company registered  with  the
    49  bureau,  and  shall only make deliveries at the licensed premises of the
    50  purchaser.
    51    3. Each producer shall keep and maintain upon the  licensed  premises,
    52  adequate  books  and  records of all transactions involving the producer
    53  and sale of his or its products, which  shall  include  all  information
    54  required by rules promulgated by the bureau. Each sale shall be recorded
    55  separately  on  a numbered invoice, which shall have printed thereon the
    56  number, the name of the licensee, the address of the licensed  premises,

        A. 3506--C                         31
 
     1  and  the  current  license  number.  Such  producer shall deliver to the
     2  purchaser a true duplicate invoice stating the name and address  of  the
     3  purchaser,  the  quantity  purchased,  description  and the price of the
     4  product,  and  a  true, accurate and complete statement of the terms and
     5  conditions on which such sale is made. Such books, records and  invoices
     6  shall  be  kept  for  a  period  of two years and shall be available for
     7  inspection by any authorized representative of the bureau.
     8    4. No producer shall furnish or cause to be furnished to any licensee,
     9  any exterior or interior sign, printed, painted, electric or  otherwise,
    10  except as authorized by the bureau. The bureau may make such rules as it
    11  deems necessary to carry out the purpose and intent of this subdivision.
    12    §  176.  Provisions  governing  processors.  1.  No processor shall be
    13  engaged in any other business on the premises  to  be  licensed;  except
    14  that nothing contained in this chapter shall prevent a marihuana produc-
    15  er  and  a  marihuana  processor from operating on the same premises and
    16  from a person holding both licenses.
    17    2. No processor shall sell, or agree to sell or deliver in  the  state
    18  any marihuana products, except in a sealed package containing quantities
    19  in  accordance  with  size  standards  pursuant  to rules adopted by the
    20  bureau. Such containers shall have affixed thereto such labels as may be
    21  required by the rules of the bureau, together  with  all  necessary  New
    22  York state excise tax stamps, as required by law.
    23    3.  No  processor shall deliver any products, except in vehicles owned
    24  and operated by such processor, or hired and operated by such  processor
    25  from  a  trucking  or transportation company registered with the bureau,
    26  and shall only make deliveries at the licensed premises of the  purchas-
    27  er.
    28    4.  Each processor shall keep and maintain upon the licensed premises,
    29  adequate books and records of all transactions  involving  the  business
    30  transacted  by  such processor, which shall show the amount of marihuana
    31  products, purchased by such processor together with the  names,  license
    32  numbers  and  places  of  business of the persons from whom the same was
    33  purchased and the amount involved in such  purchases,  as  well  as  the
    34  amount  of  marihuana  products sold by such processor together with the
    35  names, addresses, and license numbers  of  such  purchasers.  Each  sale
    36  shall  be  recorded  separately  on a numbered invoice, which shall have
    37  printed thereon the number, the name of the licensee, the address of the
    38  licensed premises, and the current license number. Such processor  shall
    39  deliver  to  the purchaser a true duplicate invoice stating the name and
    40  address of the purchaser, quantity purchased, description and the  price
    41  of the product, and a true, accurate and complete statement of the terms
    42  and  conditions  on  which  such  sale  is made. Such books, records and
    43  invoices shall be kept for a period of two years and shall be  available
    44  for inspection by any authorized representative of the bureau.
    45    §  177. Provisions governing marihuana retailers. 1. No retail license
    46  shall be granted for any premises, unless the  applicant  shall  be  the
    47  owner thereof, or shall be in possession of said premises under a lease,
    48  management  agreement  or  other  agreement giving the applicant control
    49  over the premises, in writing, for a term  not  less  than  the  license
    50  period.
    51    2.  No  premises  shall be licensed to sell marihuana products, unless
    52  said premises shall be located in a store,  the  principal  entrance  to
    53  which  shall  be from the street level and located on a public thorough-
    54  fare in premises which may be occupied, operated or conducted for  busi-
    55  ness,  trade  or  industry  or  on an arcade or sub-surface thoroughfare
    56  leading to a railroad terminal. There may be not  more  than  one  addi-

        A. 3506--C                         32
 
     1  tional  entrance which shall be from the street level and located on and
     2  giving access to and from a public or private  parking  lot  or  parking
     3  area having space for not less than five automobiles.
     4    3. No marihuana retail license shall be granted for any premises which
     5  a  license  would  not  be  allowed to sell at retail for consumption of
     6  alcohol off the premises based on its proximity to a  building  occupied
     7  exclusively  as  a  school,  church, synagogue or other place of worship
     8  pursuant to the provisions of section one hundred five of this chapter.
     9    4. No marihuana retail licensee shall offer  for  sale  any  marihuana
    10  products  in any other container, except in the original sealed package,
    11  as received from the producer, distributor or processor. Such containers
    12  shall have affixed thereto such labels as may be required by  the  rules
    13  of  the  bureau,  together with all New York state excise tax stamps, as
    14  required by law. Such containers shall not be opened  nor  its  contents
    15  consumed on the premises where sold.
    16    5.  No  marihuana  retail  licensee  shall  sell or transfer marihuana
    17  products to any person under the age of twenty-one years.
    18    6. No marihuana retail licensee shall sell alcoholic beverages on  the
    19  same premises where marihuana products are sold.
    20    7.  No  sign of any kind printed, painted or electric, advertising any
    21  brand shall be permitted on the exterior or interior of  such  premises,
    22  except by permission of the bureau.
    23    8.  No  retail licensee shall deliver any marihuana products except in
    24  vehicles owned and operated by such licensee, or hired and  operated  by
    25  such  licensee from a trucking or transportation company registered with
    26  the bureau, and shall only make such deliveries at the premises  of  the
    27  purchaser.
    28    9.  No  retail  licensee  shall  keep  or  permit  to be kept upon the
    29  licensed premises, any marihuana products in any unsealed container.
    30    10. No premises licensed as a marihuana retailer shall be permitted to
    31  remain open during a time when a premises licensed to sell liquor and/or
    32  wine for off-premises consumption is not permitted to remain open pursu-
    33  ant to the provisions of section one hundred five of this chapter.
    34    11. Each marihuana retail licensee shall keep and  maintain  upon  the
    35  licensed  premises,  adequate  books  and  records  of  all transactions
    36  involving the business transacted by such licensee, which shall show the
    37  amount of marihuana products, purchased by such licensee  together  with
    38  the  names,  license  numbers and places of business of the persons from
    39  whom the same were purchased, and the amount involved in such purchases,
    40  as well as the amount of marihuana products, sold by such licensee,  and
    41  the amount involved in each sale. Such books and records shall be avail-
    42  able for inspection by any authorized representative of the bureau.
    43    12.  All  premises  licensed  under  this  section shall be subject to
    44  inspection by any peace officer described in subdivision four of section
    45  2.10 of the criminal procedure law acting pursuant to his or her special
    46  duties, or police officer or any duly authorized representative  of  the
    47  bureau,  during the hours when the said premises are open for the trans-
    48  action of business.
    49    § 178. Provisions governing marihuana on-site consumption licenses. 1.
    50  No marihuana retailer or microbusiness  shall  be  granted  a  marihuana
    51  on-site  consumption  license for a premises located in whole or in part
    52  inside the boundaries of any city, village or  town,  unless  the  local
    53  legislative body of such city, village or town, by resolution, expressly
    54  authorizes  the  licensing  of  such facilities in such city, village or
    55  town. The local legislative body  may  direct  an  appropriate  officer,
    56  board  or  body  of  such  city,  village or town as the local licensing

        A. 3506--C                         33
 
     1  authority to authorize individual marihuana  facility  license  applica-
     2  tions.  In  cities  of  one  million or more residents, should the local
     3  legislative body authorize such license, no marihuana  retailer  license
     4  for  consumption  on-site  shall  be  granted unless the community board
     5  established pursuant to section twenty-eight hundred  of  the  New  York
     6  city  charter with jurisdiction over the area in which the premises will
     7  be located shall also authorize such license.
     8    2. No marihuana retailer or microbusiness shall be granted a marihuana
     9  on-site consumption license for any premises, unless the applicant shall
    10  be the owner thereof, or shall be in possession of said premises under a
    11  lease, in writing, for a term not less than the license  period  except,
    12  however,  that  such  license  may  thereafter  be  renewed  without the
    13  requirement of a lease as herein provided. This  subdivision  shall  not
    14  apply  to  premises  leased  from  government agencies, as defined under
    15  subdivision twelve-c of section three of this chapter; provided,  howev-
    16  er,  that  the  appropriate  administrator  of  such  government  agency
    17  provides some form of written documentation regarding the terms of occu-
    18  pancy under which the  applicant  is  leasing  said  premises  from  the
    19  government  agency  for  presentation  to  the bureau at the time of the
    20  license application. Such documentation shall include the terms of occu-
    21  pancy between the applicant and the government  agency,  including,  but
    22  not  limited  to, any short-term leasing agreements or written occupancy
    23  agreements.
    24    3. No marihuana retailer or microbusiness shall be granted a marihuana
    25  on-site consumption license for any premises where a license  would  not
    26  be  allowed to sell at retail for consumption of alcohol on the premises
    27  based on its proximity to a building occupied exclusively as  a  school,
    28  church,  synagogue  or other place of worship pursuant to the provisions
    29  of section one hundred five of this chapter.
    30    4. The bureau may consider any or all of the following in  determining
    31  whether public convenience and advantage and the public interest will be
    32  promoted by the granting of licenses and permits for a marihuana on-site
    33  consumption license at a particular unlicensed location:
    34    (a)  The number, classes and character of licenses in proximity to the
    35  location and in the particular town,  city  or  village  or  subdivision
    36  thereof.
    37    (b)  Evidence  that  all  necessary  licenses  and  permits  have been
    38  obtained from the state and all other governing bodies.
    39    (c) Effect of the grant of the license on vehicular traffic and  park-
    40  ing in proximity to the location.
    41    (d) The existing noise level at the location and any increase in noise
    42  level that would be generated by the proposed premises.
    43    (e) Any other factors specified by law or regulation that are relevant
    44  to determine the public convenience and advantage and public interest of
    45  the community.
    46    5.  If  the  bureau  shall  disapprove an application for a license or
    47  permit, it shall state and file in its offices the reasons therefor  and
    48  shall  notify  the applicant thereof. Such applicant may thereupon apply
    49  to the bureau for a review of such action in a manner to  be  prescribed
    50  by the rules of the bureau. A hearing upon notice to the applicant shall
    51  thereupon  be  held by the bureau or by one of its members at its office
    52  most conveniently situated to the office of its duly  authorized  repre-
    53  sentative in a manner to be prescribed in its rules; and on such hearing
    54  proof  may  be taken by oral testimony or by affidavit relative thereto.
    55  After such hearing, if the bureau confirms such  disapproval,  it  shall
    56  endorse such application accordingly and shall send notice to the appli-

        A. 3506--C                         34

     1  cant  of  its  action  in  such form as the bureau may prescribe. If the
     2  bureau does not confirm the disapproval action it may grant such  appli-
     3  cation and issue such license.
     4    6. No marihuana on-site consumption licensee, except persons or corpo-
     5  rations operating a hotel, as defined in subdivision fourteen of section
     6  three  of  this  chapter,  for  exclusive  use in the furnishing of room
     7  service in the manner prescribed by rule or regulation  of  the  bureau,
     8  shall  keep  upon  the  licensed premises any marihuana products, except
     9  those purchased from a licensed producer, and in containers approved  by
    10  the  bureau.  Such  containers shall have affixed thereto such labels as
    11  may be required by the rules of the bureau, together with all  necessary
    12  excise  stamps  as  required  by  law.  No marihuana retail licensee for
    13  on-site consumption shall reuse, refill, tamper with, adulterate, dilute
    14  or fortify the contents  of  any  container  of  marihuana  products  as
    15  received from the manufacturer or wholesaler.
    16    7.  No  marihuana  on-site consumption licensee shall sell, deliver or
    17  give away, or cause or permit or procure to be sold, delivered or  given
    18  away  any  marihuana  for  consumption  on  the premises where sold in a
    19  container or package containing more than one gram of marihuana.
    20    8. Except where a permit to do so  is  obtained  pursuant  to  section
    21  405.10 of the penal law, no marihuana on-site consumption licensee shall
    22  suffer,  permit,  or promote an event on its premises wherein any person
    23  shall use, explode, or cause to explode, any fireworks  or  other  pyro-
    24  technics  in  a building as defined in paragraph e of subdivision one of
    25  section 405.10 of the penal law, that is  covered  by  such  license  or
    26  possess  such fireworks or pyrotechnics for such purpose. In addition to
    27  any other penalty provided by law, a violation of this subdivision shall
    28  constitute an adequate ground for instituting a proceeding  to  suspend,
    29  cancel,  or  revoke  the  license of the violator in accordance with the
    30  applicable procedures specified in section one hundred nineteen of  this
    31  chapter; provided however, if more than one licensee is participating in
    32  a  single  event,  upon  approval  by the bureau, only one licensee must
    33  obtain such permit.
    34    9. No restaurant and no premises licensed to sell  marihuana  products
    35  for  on-site  consumption  under  paragraph  (a)  of  subdivision six of
    36  section sixty-four-a of this chapter shall  be  permitted  to  have  any
    37  opening or means of entrance or passageway for persons or things between
    38  the  licensed  premises  and  any  other  room  or place in the building
    39  containing the licensed premises, or any adjoining or abutting premises,
    40  unless ingress and egress is restricted by an  employee,  agent  of  the
    41  licensee,  or other approved method of controlling access to the facili-
    42  ty, or unless such premises are a bona fide restaurant with such  access
    43  for  patrons  and  guests from any part of such building or adjoining or
    44  abutting premises as shall serve public convenience in a reasonable  and
    45  suitable  manner;  or  unless  such  licensed premises are in a building
    46  owned or operated by any town, city,  village  or  public  authority  or
    47  agency,  in  a  park or other similar place of public accommodation. All
    48  glass in any window or door on said licensed premises shall be clear and
    49  shall not be opaque, colored, stained or frosted.
    50    10. A vessel licensed to sell marihuana products for on-site  consump-
    51  tion  shall  not be permitted to sell any marihuana products, while said
    52  vessel is moored to a pier or  dock,  except  that  vessels  sailing  on
    53  established  schedules shall be permitted to sell marihuana products for
    54  a period of three hours prior to the regular advertised sailing time.
    55    11. Each marihuana on-site consumption licensee shall keep  and  main-
    56  tain  upon  the  licensed premises, adequate records of all transactions

        A. 3506--C                         35
 
     1  involving the business transacted by such licensee which shall show  the
     2  amount  of  marihuana  products,  in  an  applicable metric measurement,
     3  purchased by such licensee together with the names, license numbers  and
     4  places of business of the persons from whom the same were purchased, the
     5  amount  involved  in  such  purchases, as well as the sales of marihuana
     6  products made by such licensee.  The  bureau  is  hereby  authorized  to
     7  promulgate  rules and regulations permitting an on-site licensee operat-
     8  ing two or more premises separately licensed to sell marihuana  products
     9  for on-site consumption to inaugurate or retain in this state methods or
    10  practices  of  centralized  accounting,  bookkeeping,  control  records,
    11  reporting, billing, invoicing or payment respecting purchases, sales  or
    12  deliveries  of  marihuana products, or methods and practices of central-
    13  ized receipt or storage of marihuana products within this state  without
    14  segregation  or  earmarking  for  any such separately licensed premises,
    15  wherever such methods and practices assure  the  availability,  at  such
    16  licensee's  central  or  main  office  in this state, of data reasonably
    17  needed for the enforcement of this chapter. Such records shall be avail-
    18  able for inspection by any authorized representative of the bureau.
    19    12. All retail licensed premises shall be subject to inspection by any
    20  peace officer, acting pursuant to his or her special duties,  or  police
    21  officer and by the duly authorized representatives of the bureau, during
    22  the  hours  when the said premises are open for the transaction of busi-
    23  ness.
    24    13. A marihuana on-site consumption licensee shall not  provide  mari-
    25  huana products to any person under the age of twenty-one.
    26    §  179.  Advertising  and  forms  for the issuance of licenses. 1. The
    27  bureau is hereby authorized to promulgate rules and regulations  govern-
    28  ing  the advertising of marihuana producers, marihuana processors, mari-
    29  huana retailers, and any marihuana related products or services.
    30    2. The bureau shall promulgate explicit rules prohibiting  advertising
    31  that:
    32    (a) is false, deceptive, or misleading;
    33    (b) promotes overconsumption;
    34    (c) depicts consumption by children or other minors;
    35    (d) is designed in any way to appeal to children or other minors;
    36    (e) is within two hundred feet of the perimeter of a playground, child
    37  care center, public park, library or school grounds;
    38    (f) is in public transit vehicles and stations;
    39    (g) is in the form of an unsolicited internet pop-up; or
    40    (h) is on publicly owned or operated property.
    41    3.  The bureau shall promulgate explicit rules prohibiting all market-
    42  ing strategies and implementation including, but not limited to,  brand-
    43  ing,  packaging, labeling, location of marihuana retailers and marihuana
    44  microbusinesses, and advertisements that are designed to:
    45    (a) appeal to persons less then twenty-one years of age; or
    46    (b) disseminate false or misleading information to customers.
    47    4. The bureau shall promulgate explicit rules requiring that:
    48    (a) all advertisements and marketing accurately and  legibly  identify
    49  the licensee responsible for its content; and
    50    (b)  any  broadcast,  cable,  radio,  print and digital communications
    51  advertisements only be placed where the audience is reasonably  expected
    52  to  be  twenty-one  years  of  age  or older, as determined by reliable,
    53  up-to-date audience composition data.
    54    § 180. Packaging of  marihuana  products.  1.  The  bureau  is  hereby
    55  authorized  to  promulgate rules and regulations governing the packaging
    56  of marihuana products, sold or possessed for sale in New York state.

        A. 3506--C                         36
 
     1    2. Such regulations shall include requiring that:
     2    (a)  packaging  meets  requirements  similar  to  the  federal "poison
     3  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
     4    (b) all marihuana-infused products shall have a separate packaging for
     5  each serving;
     6    (c) prior to delivery or sale at a retailer, marihuana  and  marihuana
     7  products  shall  be  labeled and placed in a resealable, child-resistant
     8  package; and
     9    (d) packages and labels shall not be made to be  attractive  to  chil-
    10  dren.
    11    § 181. Labeling of marihuana products. 1. The bureau is hereby author-
    12  ized  to  promulgate  rules  and  regulations governing the labeling and
    13  offering of marihuana products for sale within this state.
    14    2. Such rules and regulations shall be  calculated  to:  (a)  prohibit
    15  deception of the consumer; (b) afford adequate information as to quality
    16  and identity of the product; and (c) achieve national uniformity in this
    17  business.
    18    3. The bureau may seek the assistance of the department of health when
    19  necessary before promulgating rules and regulations under this section.
    20    4.  Such  regulations shall include requiring labels warning consumers
    21  of any potential impact on human health resulting from  the  consumption
    22  of marihuana products that shall be affixed to those products when sold,
    23  if  such  labels  are  deemed warranted by the bureau after consultation
    24  with the department of health.
    25    5. All marihuana  and  marihuana  product  labels  and  inserts  shall
    26  include  the  following information prominently displayed in a clear and
    27  legible fashion in accordance  with  the  requirements,  including  font
    28  size,  prescribed  by  the  bureau or the department of health: not less
    29  than 8 point font:
    30    (a) manufacture date and source;
    31    (b) for packages containing only dried flower, the net weight of mari-
    32  huana in the package;
    33    (c) identification of the source and date of cultivation, the type  of
    34  marihuana or marihuana product and the date of manufacturing and packag-
    35  ing;
    36    (d)  list  of pharmacologically active ingredients, including, but not
    37  limited to, tetrahydrocannabinol (THC),  cannabidiol  (CBD),  and  other
    38  cannabinoid  content, the THC and other cannabinoid amount in milligrams
    39  per serving, servings per package, and the  THC  and  other  cannabinoid
    40  amount in milligrams for the package total, and the potency of the mari-
    41  huana  or marihuana product by reference to the amount of tetrahydrocan-
    42  nabinol and cannabidiol in each serving;
    43    (e) for marihuana products, a list of all ingredients  and  disclosure
    44  of nutritional information in the same manner as the federal nutritional
    45  labeling requirements in 21 C.F.R. section 101.9;
    46    (f)  a  list  of  any solvents, nonorganic pesticides, herbicides, and
    47  fertilizers that were used in the cultivation, production, and  manufac-
    48  ture of such marihuana or marihuana product;
    49    (g) a warning if nuts or other known allergens are used;
    50    (h)  information  associated  with the unique identifier issued by the
    51  bureau of marihuana policy; and
    52    (i) any other requirements set by the bureau of marihuana policy.
    53    6. Only generic food names may be used to describe the ingredients  in
    54  edible marihuana products.
    55    7.  Such  rules and regulations shall establish methods and procedures
    56  for determining serving sizes  for  marihuana-infused  products,  active

        A. 3506--C                         37
 
     1  cannabis  concentration  per  serving  size,  and number of servings per
     2  container. Such regulations shall also require a nutritional fact  panel
     3  that incorporates data regarding serving sizes and potency thereof.
     4    8. Such rules and regulations shall require information containing the
     5  license  number of the marihuana producer and processor facilities where
     6  the marihuana was grown and processed.
     7    9. The packaging, sale, or possession by any licensee of any marihuana
     8  product not labeled or offered in conformity with rules and  regulations
     9  promulgated  in  accordance  with  this section shall be grounds for the
    10  imposition of a fine, and/or the suspension, revocation or  cancellation
    11  of the license.
    12    §  182. Seed to sale tracking. 1. No later than fifteen months follow-
    13  ing the effective date of the Marihuana Regulation and Taxation Act, the
    14  bureau shall establish a seed to sale tracking program for reporting the
    15  movement of marihuana and marihuana products throughout the distribution
    16  chain that utilizes a unique identifier  and  secure  packaging  and  is
    17  capable of providing information that captures, at a minimum, all of the
    18  following:
    19    (a) the licensee receiving the product;
    20    (b) the transaction date; and
    21    (c)  the  producer  from  which  the product originates, including the
    22  associated unique identifier.
    23    2. (a) The bureau shall create an electronic database  containing  the
    24  electronic  shipping  manifests  to facilitate the administration of the
    25  seed to sale program tracking, which shall include, but not  be  limited
    26  to, the following information:
    27    (b) the quantity, or weight, and variety of products shipped;
    28    (c) the estimated times of departure and arrival;
    29    (d) the quantity, or weight, and variety of products received;
    30    (e) the actual time of departure and arrival;
    31    (f) a categorization of the product; and
    32    (g)  the license number and unique identifier issued by the bureau for
    33  all licensees involved in  the  shipping  process,  including,  but  not
    34  limited to, producer, processor, retailer, and delivery licensees.
    35    3.  The  database  shall  be  designed  to flag irregularities for the
    36  bureau to investigate.
    37    § 183. Renewals of licenses and permits. 1. Each license  and  permit,
    38  issued pursuant to this article may be renewed upon application therefor
    39  by  the licensee or permittee and the payment of the annual fee for such
    40  license or permit as prescribed by this article. In the case of applica-
    41  tions for renewals, the bureau may dispense  with  the  requirements  of
    42  such  statements  as  it deems unnecessary in view of those contained in
    43  the application made for the original license  or  permit,  but  in  any
    44  event  the  submission  of photographs of the licensed premises shall be
    45  dispensed with, provided the applicant for such  renewal  shall  file  a
    46  statement  with  such bureau to the effect that there has been no alter-
    47  ation of such premises since the  original  license  was  issued.    The
    48  bureau  may  make  such  rules as may be necessary not inconsistent with
    49  this chapter regarding applications for renewals of licenses and permits
    50  and the time for making the same.   Each applicant must  submit  to  the
    51  bureau  documentation of the racial, ethnic, and gender diversity of the
    52  applicant's employees and owners prior to  a  license  or  permit  being
    53  renewed.
    54    2.  The  bureau  shall provide an application for renewal of a license
    55  issued under this article not less than sixty days prior to the  expira-
    56  tion of the current license.

        A. 3506--C                         38
 
     1    §  184.  Information  to  be provided by applicants.  1. The following
     2  shall be the information required on an application  for  a  license  or
     3  permit:
     4    (a) A statement of identity as follows:
     5    (i) If the applicant is an individual, his or her name, date and place
     6  of  birth,  citizenship,  permanent  home  address, telephone number and
     7  social security number, as well as any other names by which  he  or  she
     8  has conducted a business at any time.
     9    (ii)  If  the applicant is a corporation or a limited liability corpo-
    10  ration, the corporate name of the applicant, its place of incorporation,
    11  its main business address (and if such  main  business  address  is  not
    12  within  the  state, the address of its main place of business within the
    13  state), other names by which it has been known or has conducted business
    14  at any time, its telephone number, its federal  employer  identification
    15  number,  and  the names, ages, citizenship, and permanent home addresses
    16  of its directors, officers and its shareholders (except that if there be
    17  more than ten shareholders then those shareholders holding  ten  percent
    18  or more of any class of its shares).
    19    (iii)  If  the applicant is a partnership, its name, its main business
    20  address (and if such main business address is not within the state,  the
    21  address  of its main place of business within the state), other names by
    22  which it has been known or has conducted business at any time, its tele-
    23  phone number, its federal employer identification number, and the names,
    24  ages, citizenship, and permanent home addresses of each of its partners.
    25    (b) A statement identifying the street and number of the  premises  to
    26  be licensed, if the premises has a street and number, and otherwise such
    27  description as will reasonably indicate the town, city or village there-
    28  of;  photographs,  drawings  or other items related to the appearance of
    29  the interior or exterior of such premises, and a floor plan of the inte-
    30  rior, shall be required. The applicant shall also state  the  nature  of
    31  his  or  her  interest in the premises; and the name of any other person
    32  interested as a partner, joint venturer, investor  or  lender  with  the
    33  applicant either in the premises or in the business to be licensed.
    34    (c)  A description of any other marihuana license or permit under this
    35  article, within the past ten years, the applicant (including  any  offi-
    36  cers,  directors,  shareholders  or  partners listed in the statement of
    37  identity under paragraph (a) of this subdivision or the  spouse  of  any
    38  such person) or the applicant's spouse held or applied for.
    39    (d)  A  description  of the applicant's plan to ensure diversity among
    40  the applicant's employees, including strategies for ensuring:
    41    (i) gender diversity;
    42    (ii) racial and ethnic diversity that reflects the demographics within
    43  the town, city or village in which  the  applicant's  proposed  business
    44  will be located; and
    45    (iii) that persons with prior criminal convictions are not barred from
    46  employment.
    47    (e) For an applicant with more than twenty-five employees, a statement
    48  that the applicant has entered into a labor peace agreement with a bona-
    49  fide  labor  organization  that  is  actively engaged in representing or
    50  attempting to represent the applicant's employees.  The  maintenance  of
    51  such  a  labor peace agreement shall be an ongoing material condition of
    52  certification.
    53    (f) A statement that the location and layout of  the  premises  to  be
    54  licensed  does  not  violate any requirement of this chapter relating to
    55  location and layout of licensed premises, with a copy of the certificate
    56  of occupancy for the premises.

        A. 3506--C                         39
 
     1    (g) A statement that the applicant has control of the premises  to  be
     2  licensed  by  ownership of a fee interest or via a leasehold, management
     3  agreement, or other agreement giving  the  applicant  control  over  the
     4  premises,  with  a  term  at  least as long as the license for which the
     5  application  is being made, or by a binding contract to acquire the same
     6  and a statement of identity under paragraph (a) of this subdivision  for
     7  the  lessor  of  any  leasehold, manager of any management agreement, or
     8  other agreement giving the applicant control over the premises,  with  a
     9  copy  of  the  lease, contract, management agreement, or other agreement
    10  giving the applicant control over the food and beverage at the premises,
    11  or deed evidencing fee ownership of the premises.
    12    (h) A financial statement adequate to show all persons  who,  directly
    13  or indirectly have an economic interest in the establishment or acquisi-
    14  tion  of  the  business  for  which the license or permit application is
    15  being made, to identify the sources of  funds  to  be  applied  in  such
    16  establishment  or  acquisition, and to describe the terms and conditions
    17  governing such establishment with copies of such financial documents  as
    18  the bureau may reasonably require.
    19    (i)  The fingerprints of the applicants. Fingerprints submitted by the
    20  applicants shall be transmitted to  the  division  of  criminal  justice
    21  services and may be submitted to the federal bureau of investigation for
    22  state and national criminal history record checks.
    23    2. All license or permit applications shall be signed by the applicant
    24  (if an individual), by a managing partner (if a limited liability corpo-
    25  ration),  by  an  officer  (if  a corporation), or by all partners (if a
    26  partnership). Each person signing such application shall  verify  it  or
    27  affirm it as true under the penalties of perjury.
    28    3. All license or permit applications shall be accompanied by a check,
    29  draft  or  other forms of payment as the bureau may require or authorize
    30  in the amount required by this article for such license or permit.
    31    4. If there be any change, after the filing of the application or  the
    32  granting  of  a license, in any of the facts required to be set forth in
    33  such application, a supplemental statement giving notice of such change,
    34  cost and source of money involved in the change, duly verified, shall be
    35  filed with the bureau within ten days after such change. Failure  to  do
    36  so  shall,  if  willful  and  deliberate, be cause for revocation of the
    37  license.
    38    5. In giving any notice, or taking any action in reference to a licen-
    39  see of a licensed premises, the bureau may  rely  upon  the  information
    40  furnished   in  such  application  and  in  any  supplemental  statement
    41  connected therewith, and such information may be presumed to be correct,
    42  and shall be binding upon a licensee or licensed premises as if correct.
    43  All information required to be furnished in such application or  supple-
    44  mental statements shall be deemed material in any prosecution for perju-
    45  ry,  any proceeding to revoke, cancel or suspend any license, and in the
    46  bureau's determination to approve or deny the license.
    47    6. The bureau may in its discretion waive the submission of any  cate-
    48  gory  of  information  described  in  this  section  for any category of
    49  license or permit, provided that it shall not be, except for  paragraphs
    50  (a)  and  (d) of subdivision one of this section, permitted to waive the
    51  requirement for submission of any such category  of  information  solely
    52  for an individual applicant or applicants.
    53    §  185.  Notification  to  towns, cities or villages. 1. Not less than
    54  thirty days before filing any of the following applications,  an  appli-
    55  cant  shall  notify  the  town, city or village in which the premises is
    56  located of such applicant's intent to file such an application for a:

        A. 3506--C                         40
 
     1    (a) marihuana producer license;
     2    (b) marihuana processor license;
     3    (c) marihuana microbusiness license;
     4    (d) marihuana retailer license;
     5    (e) marihuana retailer license for on-site consumption;
     6    (f) marihuana delivery license;
     7    (g) marihuana testing license; and/or
     8    (h) any other type of licenses allowed by the bureau.
     9    2.  Such  notification shall be made to the clerk of the village, town
    10  or city, as the case may  be,  wherein  the  premises  is  located.  For
    11  purposes of this section:
    12    (a) notification need only be given to the clerk of a village when the
    13  premises  is located within the boundaries of the town, city or village;
    14  and
    15    (b) in the city of New York, the community board established  pursuant
    16  to section twenty-eight hundred of the New York city charter with juris-
    17  diction  over the area in which the premises is located shall be consid-
    18  ered the appropriate public body to which notification shall be given.
    19    3. For purposes of this section, "substantial corporate change"  shall
    20  mean:
    21    (a) for a corporation, a change of eighty percent or more of the offi-
    22  cers  and/or directors, or a transfer of eighty percent or more of stock
    23  of such corporation, or an existing stockholder obtaining eighty percent
    24  or more of the stock of such corporation;
    25    (b) for a limited liability company, a change  of  eighty  percent  or
    26  more  of  the  managing  members of the company, or a transfer of eighty
    27  percent or more of ownership interest in said company,  or  an  existing
    28  member obtaining a cumulative of eighty percent or more of the ownership
    29  interest in said company; and
    30    (c) for a partnership, a change of eighty percent or more of the part-
    31  ners,  or  a transfer of eighty percent or more of ownership interest in
    32  said partnership, or an  existing  partner  obtaining  a  cumulative  of
    33  eighty percent or more of the ownership interest in said company.
    34    4. Such notification shall be made in such form as shall be prescribed
    35  by the rules of the bureau.
    36    5.  A  town, city or village may express an opinion for or against the
    37  granting of such application. Any such opinion shall be deemed  part  of
    38  the  record  upon  which  the bureau makes its determination to grant or
    39  deny the application.
    40    6. Such notification shall be made by: certified mail, return  receipt
    41  requested; overnight delivery service with proof of mailing; or personal
    42  service upon the offices of the clerk or community board.
    43    7.  The bureau shall require such notification to be on a standardized
    44  form that can be obtained on the internet or from the  bureau  and  such
    45  notification to include:
    46    (a)  the trade name or "doing business as" name, if any, of the estab-
    47  lishment;
    48    (b) the full name of the applicant;
    49    (c) the street address  of  the  establishment,  including  the  floor
    50  location or room number, if applicable;
    51    (d)  the  mailing  address of the establishment, if different than the
    52  street address;
    53    (e) the name, address and telephone number of the attorney  or  repre-
    54  sentative of the applicant, if any;
    55    (f) a statement indicating whether the application is for:
    56    (i) a new establishment;

        A. 3506--C                         41
 
     1    (ii) a transfer of an existing licensed business;
     2    (iii) a renewal of an existing license; or
     3    (iv) an alteration of an existing licensed premises;
     4    (g)  if  the  establishment is a transfer or previously licensed prem-
     5  ises, the name of the old establishment and such establishment's license
     6  serial number;
     7    (h) in the case of a renewal or alteration  application,  the  license
     8  serial number of the applicant; and
     9    (i) the type of license.
    10    § 186. Licenses, publication, general provisions. 1. The various types
    11  of  licenses  issued  pursuant  to  this article shall be distinctive in
    12  color and design so as to be readily distinguishable from each other.
    13    2. No license shall be transferable or assignable except that notwith-
    14  standing any other provision of law, the license of  a  sole  proprietor
    15  converting  to  corporate  form,  where such proprietor becomes the sole
    16  stockholder and only officer and director of such new  corporation,  may
    17  be  transferred  to  the subject corporation if all requirements of this
    18  chapter remain the same with respect to such license as transferred and,
    19  further, the licensee shall transmit to the bureau, within ten  days  of
    20  the  transfer  of  license  allowable  under this subdivision, on a form
    21  prescribed by the bureau, notification of the transfer of such license.
    22    3. No license shall be pledged or deposited as collateral security for
    23  any loan or upon any other condition; and any such  pledge  or  deposit,
    24  and any contract providing therefor, shall be void.
    25    4.  Licenses  issued  under this article shall contain, in addition to
    26  any further information or material to be prescribed by the rules of the
    27  bureau, the following information: (a) name of person to whom license is
    28  issued; (b) kind of license and what kind of  traffic  in  marihuana  is
    29  thereby  permitted;  (c) description by street and number, or otherwise,
    30  of licensed premises; and (d) a statement in substance that such license
    31  shall not be deemed a property or vested  right,  and  that  it  may  be
    32  revoked at any time pursuant to law.
    33    5. There shall be printed and furnished by the bureau to each licensee
    34  a statement of the causes for which licenses may be revoked. Such state-
    35  ment  shall be prepared by the bureau and delivered to the licensee with
    36  his or her license or as soon thereafter  as  may  be  practicable.  Any
    37  amendments  thereto shall also be sent by the bureau to all licensees as
    38  soon as may be practicable after such amendments. Failure to  send  such
    39  statements  or  changes  therein, or failure to receive the same, or any
    40  misstatement or error contained in such statements or amendments  shall,
    41  however,  not be an excuse or justification for any violation of law, or
    42  prevent, or remit, or decrease any penalty or forfeiture therefor.
    43    6. Before commencing or doing any business for the time  for  which  a
    44  license  has  been  issued  said license shall be enclosed in a suitable
    45  wood or metal frame having a clear glass space and a substantial wood or
    46  metal back so that the whole of said license may be  seen  therein,  and
    47  shall  be posted up and at all times displayed in a conspicuous place in
    48  the room where such business is carried on, so that all persons visiting
    49  such place may readily see the same. It shall be unlawful for any person
    50  holding a license to post such license or to permit such license  to  be
    51  posted  upon premises other than the premises licensed, or upon premises
    52  where traffic in marihuana is being carried on by any person other  than
    53  the  licensee, or knowingly to deface, destroy or alter any such license
    54  in any respect. Whenever a license shall be lost  or  destroyed  without
    55  fault  on  the part of the licensee or his or her agents or employees, a
    56  duplicate license in lieu thereof may be issued by  the  bureau  in  its

        A. 3506--C                         42
 
     1  discretion  and  in  accordance  with such rules and regulations and the
     2  payment of such fees, not exceeding five dollars, as it may prescribe.
     3    §  187.  Revocation  of  licenses  for cause. 1. Any license or permit
     4  issued pursuant to this article may  be  revoked,  cancelled,  suspended
     5  and/or  subjected  to  the  imposition of a civil penalty for cause, and
     6  must be revoked for the following causes:
     7    (a) Conviction of the licensee, permittee  or  his  or  her  agent  or
     8  employee  for selling any illegal marihuana or marihuana products on the
     9  premises licensed.
    10    (b) For transferring, assigning or hypothecating a license or permit.
    11    2. Notwithstanding the issuance of a  license  or  permit  by  way  of
    12  renewal, the bureau may revoke, cancel or suspend such license or permit
    13  and/or  may impose a civil penalty against any holder of such license or
    14  permit, as prescribed by this section and section one  hundred  nineteen
    15  of  this  chapter, for causes or violations occurring during the license
    16  period immediately preceding the issuance of such license or permit, and
    17  may recover, as provided in section one hundred twelve of this  chapter,
    18  the penal sum of the bond on file during said period.
    19    3.  As  used  in this section, the term "for cause" shall also include
    20  the existence of a sustained and continuing pattern of  noise,  disturb-
    21  ance, misconduct, or disorder on or about the licensed premises, related
    22  to  the  operation  of the premises or the conduct of its patrons, which
    23  adversely affects the health, welfare or safety of  the  inhabitants  of
    24  the area in which such licensed premises are located.
    25    4.  The  existence  of  a  sustained  and continuing pattern of noise,
    26  disturbance, misconduct, or disorder on or about the licensed  premises,
    27  related  to the operation of the premises or the conduct of its patrons,
    28  will be presumed upon the sixth incident reported to the bureau by a law
    29  enforcement agency of noise or disturbance or misconduct or disorder  on
    30  or  about the licensed premises or related to the operation of the prem-
    31  ises or the conduct of its patrons, in  any  sixty  day  period,  absent
    32  clear and convincing evidence of either fraudulent intent on the part of
    33  any  complainant  or  a factual error with respect to the content of any
    34  report concerning such complaint relied upon by the bureau.
    35    § 188. Procedure for revocation or cancellation.  1.  Any  license  or
    36  permit  issued  by  the  bureau pursuant to this article may be revoked,
    37  cancelled or suspended and/or be subjected to the imposition of a  mone-
    38  tary penalty in the manner prescribed by this section.
    39    2.  The bureau may on its own initiative or on complaint of any person
    40  institute proceedings to revoke, cancel or suspend  any  retail  license
    41  and  may  impose a civil penalty against the licensee after a hearing at
    42  which the licensee shall be given an opportunity to be heard. Such hear-
    43  ing shall be held in  such  manner  and  upon  such  notice  as  may  be
    44  prescribed by the rules of the bureau.
    45    §  189.  Decisions of the bureau of marihuana policy and review by the
    46  courts.  Provisions of sections one hundred twenty, one hundred  twenty-
    47  one and one hundred twenty-four of this chapter shall apply to marihuana
    48  licenses issued under this article.
    49    §  190. Minority and women-owned businesses and incubator program. The
    50  bureau shall:
    51    1. Implement a social equity plan and actively promote racial, ethnic,
    52  and gender diversity when issuing licenses for marihuana related  activ-
    53  ities, including by prioritizing consideration of applications by appli-
    54  cants  who  qualify  as a minority and women-owned business. Such quali-
    55  fications shall be determined by the bureau.

        A. 3506--C                         43
 
     1    2. The bureau shall create a social equity plan to  promote  diversity
     2  in  ownership and employment in the marihuana industry and ensure inclu-
     3  sion of: (a) minority-owned businesses; (b) women-owned businesses;  and
     4  (c)  minority and women-owned businesses, as defined in subdivision five
     5  of this section.
     6    3.  The  social  equity plan shall consider additional criteria in its
     7  licensing determinations. Under the social  equity  plan,  extra  weight
     8  shall be given to applications that demonstrate that an applicant:
     9    (a)  is a member of a community group that has been disproportionately
    10  impacted by the enforcement of marihuana prohibition;
    11    (b) has an income lower than eighty percent of the  median  income  of
    12  the county in which the applicant resides; and
    13    (c)  was  convicted of a marihuana-related offense prior to the effec-
    14  tive date of this bill.
    15    4. The bureau shall also create an incubator program to provide direct
    16  support to  social  equity  applicants  after  they  have  been  granted
    17  licenses.  The program shall provide direct support in the form of coun-
    18  seling services, education,  small  business  coaching,  and  compliance
    19  assistance.
    20    5.  For  the purposes of this section, the following definitions shall
    21  apply:
    22    (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
    23  including  a sole proprietorship, partnership, limited liability company
    24  or corporation that is:
    25    (i) at least fifty-one percent owned by one  or  more  minority  group
    26  members;
    27    (ii)  an enterprise in which such minority ownership is real, substan-
    28  tial and continuing;
    29    (iii) an enterprise in which such minority ownership has and exercises
    30  the authority to control independently the day-to-day business decisions
    31  of the enterprise;
    32    (iv) an enterprise authorized to do business in this state  and  inde-
    33  pendently owned and operated;
    34    (v) an enterprise that is a small business.
    35    (b)  "minority  group  member"  shall  mean a United States citizen or
    36  permanent resident alien who is and can demonstrate membership in one of
    37  the following groups:
    38    (i) black persons having origins in any of the  black  african  racial
    39  groups;
    40    (ii)  hispanic  persons  of  mexican,  puerto rican, dominican, cuban,
    41  central or south american of either indian or hispanic  origin,  regard-
    42  less of race;
    43    (iii)  native american or alaskan native persons having origins in any
    44  of the original peoples of north america;
    45    (iv) asian and pacific islander persons having origins in any  of  the
    46  far  east  countries,  south  east  asia, the indian subcontinent or the
    47  pacific islands.
    48    (c) "women-owned business" shall mean a business enterprise, including
    49  a sole proprietorship, partnership, limited liability company or  corpo-
    50  ration that is:
    51    (i)  at  least  fifty-one  percent  owned by one or more United States
    52  citizens or permanent resident aliens who are women;
    53    (ii) an enterprise in which the ownership interest of  such  women  is
    54  real, substantial and continuing;

        A. 3506--C                         44
 
     1    (iii)  an  enterprise  in which such women ownership has and exercises
     2  the authority to control independently the day-to-day business decisions
     3  of the enterprise;
     4    (iv)  an  enterprise authorized to do business in this state and inde-
     5  pendently owned and operated;
     6    (v) an enterprise that is a small  business  pursuant  to  subdivision
     7  twenty of this section.
     8    (d) a firm owned by a minority group member who is also a woman may be
     9  defined as a minority-owned business, a women-owned business, or both.
    10    6.  The  bureau  shall actively promote applicants that foster racial,
    11  ethnic, and gender diversity in their workforce.
    12    7. Licenses issued to minority and women-owned businesses or under the
    13  social equity plan shall not be transferable except to qualified minori-
    14  ty and women-owned businesses or social equity applicants.
    15    8. The bureau shall collect demographic data on owners  and  employees
    16  in the marihuana industry and shall annually publish such data.
    17    §  191.  Disposition  of  moneys received for license fees. The bureau
    18  shall establish a scale of application,  licensing,  and  renewal  fees,
    19  based  upon the cost of enforcing this article and the size of the mari-
    20  huana business being licensed, as follows:
    21    1. Each licensing authority shall charge each licensee a licensure and
    22  renewal fee, as applicable. The  licensure  and  renewal  fee  shall  be
    23  calculated  to cover the costs of administering this article. The licen-
    24  sure fee may vary depending  upon  the  varying  costs  associated  with
    25  administering  the  various  regulatory  requirements of this article as
    26  they relate to the nature and scope of the  different  licensure  activ-
    27  ities,  but  shall  not  exceed  the  reasonable regulatory costs to the
    28  licensing authority.
    29    2. The total fees assessed pursuant to this article shall be set at an
    30  amount that will fairly and proportionately  generate  sufficient  total
    31  revenue to fully cover the total costs of administering this article.
    32    3.  All  license  fees  shall  be set on a scaled basis by the bureau,
    33  dependent on the size of the business.
    34    4. The bureau shall deposit all fees collected in the New  York  state
    35  marihuana revenue fund established pursuant to section ninety-nine-ff of
    36  the state finance law.
    37    §  192.  Persons  forbidden  to traffic in marihuana. 1. The following
    38  persons are forbidden to traffic in marihuana:
    39    (a) A person under the age of twenty-one years.
    40    (b) A person who is not a citizen of the United  States  or  an  alien
    41  lawfully admitted for permanent residence in the United States.
    42    (c) A co-partnership or a corporation, unless each member of the part-
    43  nership,  or  each of the principal officers and directors of the corpo-
    44  ration, is a citizen of the United States or an alien lawfully  admitted
    45  for  permanent  residence in the United States, not less than twenty-one
    46  years of age.
    47    (d) (i) A person who shall have had  any  license  issued  under  this
    48  chapter  revoked  for  cause, until the expiration of two years from the
    49  date of such revocation.
    50    (ii) A person not licensed under the provisions of this  chapter,  who
    51  has  been convicted of a violation of this chapter, until the expiration
    52  of two years from the date of such conviction.
    53    (e) A corporation or co-partnership, if any officer  and  director  or
    54  any  partner,  while  not licensed under the provisions of this chapter,
    55  has been convicted of a violation of this chapter, or has had a  license

        A. 3506--C                         45
 
     1  issued under this chapter revoked for cause, until the expiration of two
     2  years from the date of such conviction or revocation.
     3    2. An applicant shall not be denied a license under this article based
     4  solely  on a conviction for a violation of article two hundred twenty or
     5  section 240.36 of the penal law, prior to the date article  two  hundred
     6  twenty-one of the penal law took effect, or a conviction for a violation
     7  of  article  two hundred twenty-one of the penal law after the effective
     8  date of this article.
     9    § 193. Surrender of license; notice to police officials. Within  three
    10  days  after  a license shall have been revoked pursuant to this article,
    11  notice thereof shall be given to the licensee  by  mailing  such  notice
    12  addressed  to  him at the premises licensed. Notice shall also be mailed
    13  to the owner of the premises licensed. The holder of such license  shall
    14  thereupon  surrender  same  to  the  bureau.  The mailing thereof by the
    15  licensee to the bureau by registered mail or insured parcel  post  shall
    16  be  deemed  sufficient  compliance  with this section. The bureau, imme-
    17  diately upon giving notice of revocation, shall serve a  written  notice
    18  thereof upon the commissioner of police, chief of police or chief police
    19  officer  of  the  city  or  village  in which the premises for which the
    20  revoked license was issued is situated, or upon the sheriff of the coun-
    21  ty or a constable of the town in case the license was issued  for  prem-
    22  ises situated in a town and not within any city or village.  Such notice
    23  shall  include  a  statement of the number of such license, the name and
    24  place of residence of the holder thereof, the location of  the  licensed
    25  premises,  and  the  date  when  such  license was revoked. In case such
    26  license be not forthwith surrendered, the bureau shall issue  a  written
    27  demand  for the surrender of such license and deliver said demand to the
    28  sheriff of the county in which the licensed premises are located, or  to
    29  any  representative  of  the  bureau, and said sheriff or representative
    30  shall immediately take possession of such license and return the same to
    31  the bureau.
    32    § 194. Protections for the use of marihuana. Individuals and  licensed
    33  entities  shall not be subject to arrest, prosecution, or penalty in any
    34  manner, or denied any right or privilege, including but not  limited  to
    35  civil  liability or disciplinary action by a business or occupational or
    36  professional licensing board or bureau,  solely  for  conduct  permitted
    37  under  this  article. For the avoidance of doubt, the appellate division
    38  of the supreme court of the state of New York, and any  disciplinary  or
    39  character  and  fitness  committees established by them are occupational
    40  and professional licensing boards within the meaning  of  this  section.
    41  State  or  local  law  enforcement  agencies shall not cooperate with or
    42  provide assistance to the government of the United States or any  agency
    43  thereof  in  enforcing the Federal Controlled Substances Act, 21, U.S.C.
    44  et seq., solely for actions consistent  with  this  chapter,  except  as
    45  pursuant to a valid court order.
    46    §  195. Discrimination protections for the use of marihuana or medical
    47  marihuana. 1. No school or landlord may refuse to enroll or lease to and
    48  may not otherwise penalize a person solely  for  conduct  allowed  under
    49  sections 221.05 and 221.05-a of the penal law or title five-A of article
    50  thirty-three of the public health law, except as exempted:
    51    (a)  If  failing to do so would cause the school or landlord to lose a
    52  monetary or licensing related benefit under federal law or regulations;
    53    (b) If the institution has adopted a code of conduct prohibiting mari-
    54  huana use on the basis of religious belief;

        A. 3506--C                         46
 
     1    (c) If a property is registered with the New York  Smoke-Free  Housing
     2  Registry, it is not required to permit the smoking of marihuana products
     3  on its premises.
     4    2.  For  the  purposes of medical care, including organ transplants, a
     5  registered qualifying patient's authorized use of medical marihuana must
     6  be considered the equivalent of the use of any  other  medication  under
     7  the  direction  of  a practitioner and does not constitute the use of an
     8  illicit  substance  or  otherwise  disqualify  a  registered  qualifying
     9  patient from medical care.
    10    3.  No person may be denied custody of or visitation or parenting time
    11  with a minor, and there is no presumption of neglect or child  endanger-
    12  ment for conduct allowed under sections 221.05 and 221.05-a of the penal
    13  law,  unless the person's behavior creates an unreasonable danger to the
    14  safety of the minor as established by clear and convincing evidence. For
    15  the purposes of this section,  an  "unreasonable  danger"  determination
    16  cannot  be  based  solely  on whether, when, and how often a person uses
    17  marihuana without separate evidence of harm.
    18    § 196. Employment protections. 1.  Unless an employer establishes by a
    19  preponderance of the evidence that  the  lawful  use  of  marihuana  has
    20  impaired  the employee's ability to perform the employee's job responsi-
    21  bilities, it shall be unlawful to take  any  adverse  employment  action
    22  against an employee based on either:
    23    (a)  conduct  allowed  under sections 221.05 and 221.05-a of the penal
    24  law; or
    25    (b) the employee's positive drug  test  for  marihuana  components  or
    26  metabolites.
    27    2.  For  the  purposes  of  this  section, an employer may consider an
    28  employee's ability to perform the employee's job responsibilities to  be
    29  impaired when the employee manifests specific articulable symptoms while
    30  working that decrease or lessen the employee's performance of the duties
    31  or tasks of the employee's job position.
    32    3.  Nothing  in  this  section shall restrict an employer's ability to
    33  prohibit or take adverse employment action for the possession or use  of
    34  intoxicating  substances  during  work  hours, or require an employer to
    35  commit any act that would cause the  employer  to  be  in  violation  of
    36  federal  law,  or that would result in the loss of a federal contract or
    37  federal funding.
    38    4. As used in this section, "adverse employment action" means refusing
    39  to hire or employ, barring or discharging from employment,  requiring  a
    40  person  to  retire from employment, or discriminating against in compen-
    41  sation or in terms, conditions, or privileges of employment.
    42    § 197. Protections for  persons  under  state  supervision.  A  person
    43  currently  under  parole,  probation  or  other  state  supervision,  or
    44  released on bail awaiting trial may not be punished or otherwise  penal-
    45  ized for conduct allowed under sections 221.05 and 221.05-a of the penal
    46  law.
    47    §  198.  Professional  and  medical  record  keeping. Any professional
    48  providing services in connection with a licensed or potentially licensed
    49  business under this chapter, or in connection with other conduct permit-
    50  ted under this chapter, and any medical professional  providing  medical
    51  care to a patient, may agree with their client or patient to maintain no
    52  record,  or  any  reduced  level of record keeping that professional and
    53  client or patient may agree. In case  of  such  agreement,  the  profes-
    54  sional's only obligation shall be to keep such records as agreed, and to
    55  keep  a record of the agreement.  Such reduced record keeping is conduct

        A. 3506--C                         47
 
     1  permitted under this chapter,  and  shall  attract  the  protections  of
     2  section one hundred ninety-four of this article.
     3    §  32.  The  state finance law is amended by adding three new sections
     4  99-ff, 99-gg and 99-hh to read as follows:
     5    § 99-ff. New York state marihuana revenue fund.  1.  There  is  hereby
     6  established  in  the  joint  custody  of  the  state comptroller and the
     7  commissioner of taxation and finance a special fund to be known  as  the
     8  "New York state marihuana revenue fund".
     9    2.  Such fund shall consist of all revenues received by the department
    10  of taxation and finance, pursuant to the  provisions  of  article  eigh-
    11  teen-A of the tax law and all other moneys appropriated thereto from any
    12  other fund or source pursuant to law.  Nothing contained in this section
    13  shall prevent the state from receiving grants, gifts or bequests for the
    14  purposes of the fund as defined in this section and depositing them into
    15  the fund according to law.
    16    3.  The  moneys  in  such  fund  shall  be  expended for the following
    17  purposes:
    18    (a) Reasonable costs  incurred  by  the  department  of  taxation  and
    19  finance for administering and collecting the taxes imposed by this part;
    20  provided,  however,  such  costs  shall  not  exceed four percent of tax
    21  revenues received.
    22    (b) Reasonable costs incurred by the bureau of  marihuana  policy  for
    23  implementing,  administering, and enforcing the marihuana regulation and
    24  taxation act to the extent those costs are not  reimbursed  pursuant  to
    25  sections one hundred eighty-nine and one hundred ninety of article elev-
    26  en  of  the  alcoholic beverage control law. This paragraph shall remain
    27  operative through the two thousand twenty-three -- two thousand  twenty-
    28  four fiscal year.
    29    (c)  Beginning with the two thousand twenty -- two thousand twenty-one
    30  fiscal year and continuing through the two thousand  twenty-two  --  two
    31  thousand  twenty-three  fiscal  year,  the  commissioner of taxation and
    32  finance shall annually disburse one million  dollars  to  the  marihuana
    33  microbusiness  and  marihuana  license  revolving  loan fund established
    34  pursuant to section ninety-nine-ii of the state finance law.
    35    (d) Beginning with the two thousand twenty -- two thousand  twenty-one
    36  fiscal  year  and continuing through the two thousand twenty-nine -- two
    37  thousand thirty fiscal year, the commissioner of  taxation  and  finance
    38  shall  annually  disburse  the  following  sums for the purposes of data
    39  collection and reporting:
    40    (1) Seven hundred fifty thousand dollars to the  bureau  of  marihuana
    41  policy  to  track  and report data related to the licensing of marihuana
    42  businesses, including the geographic location, structure,  and  function
    43  of  licensed marihuana businesses, and demographic data, including race,
    44  ethnicity, and gender, of license holders. The bureau of marihuana poli-
    45  cy shall publish reports on its findings annually  and  shall  make  the
    46  reports available to the public.
    47    (2) Seven hundred fifty thousand dollars to the department of criminal
    48  justice  services  to  track and report data related to any infractions,
    49  violations, or criminal convictions that occur under any of the  remain-
    50  ing  marihuana  statutes.    The department of criminal justice services
    51  shall publish reports on  its  findings  annually  and  shall  make  the
    52  reports available to the public.
    53    (3)  One  million  dollars  to  the  state  university  of New York to
    54  research and evaluate the implementation and  effect  of  the  marihuana
    55  regulation  and taxation act.  No more than four percent of these monies
    56  may be used for expenses related to administrative costs  of  conducting

        A. 3506--C                         48
 
     1  such  research,  and  to,  if  appropriate,  make recommendations to the
     2  legislature and governor regarding possible amendments to the  marihuana
     3  regulation and taxation act. The recipients of these funds shall publish
     4  reports on their findings at a minimum of every two years and shall make
     5  the  reports  available  to  the public. The research funded pursuant to
     6  this subdivision shall include but not necessarily be limited to:
     7    (A) the impacts on public health, including  health  costs  associated
     8  with  marihuana use, as well as whether marihuana use is associated with
     9  an increase or decrease in use of alcohol or other drugs;
    10    (B) the impact of treatment for cannabis use disorder and  the  effec-
    11  tiveness of different treatment programs;
    12    (C)  public safety issues related to marihuana use, including studying
    13  the effectiveness of the packaging and labeling requirements and  adver-
    14  tising  and  marketing  restrictions  contained in the act at preventing
    15  underage access to and use of  marihuana  and  marihuana  products,  and
    16  studying  the  health-related  effects  among  users  of varying potency
    17  levels of marihuana and marihuana products;
    18    (D) marihuana use rates, maladaptive use rates for adults  and  youth,
    19  and diagnosis rates of marihuana-related substance use disorders;
    20    (E) marihuana market prices, illicit market prices, tax structures and
    21  rates,  including  an  evaluation  of how to best tax marihuana based on
    22  potency, and the structure and  function  of  licensed  marihuana  busi-
    23  nesses;
    24    (F)  whether  additional  protections  are  needed to prevent unlawful
    25  monopolies or anti-competitive behavior from occurring in the nonmedical
    26  marihuana industry and, if so, recommendations as to the most  effective
    27  measures for preventing such behavior;
    28    (G)  the economic impacts in the private and public sectors, including
    29  but not necessarily limited to, job creation, workplace  safety,  reven-
    30  ues,  taxes  generated for state and local budgets, and criminal justice
    31  impacts, including, but not  necessarily  limited  to,  impacts  on  law
    32  enforcement  and  public  resources, short and long term consequences of
    33  involvement in the criminal justice system, and state and local  govern-
    34  ment agency administrative costs and revenue;
    35    (H)  whether  the  regulatory  agencies  tasked  with implementing and
    36  enforcing the  marihuana  regulation  and  taxation  act  are  doing  so
    37  consistent  with the purposes of the act, and whether different agencies
    38  might do so more effectively; and
    39    (I) any environmental issues related to marihuana production  and  the
    40  criminal prohibition of marihuana production.
    41    4. After the dispersal of moneys pursuant to subdivision three of this
    42  section,  the  remaining  moneys  in the fund deposited during the prior
    43  fiscal year shall be disbursed into the state lottery fund and two addi-
    44  tional sub-funds created within the marihuana revenue fund known as  the
    45  drug  treatment and public education fund and the community grants rein-
    46  vestment fund, as follows:
    47    (a) twenty-five percent shall be deposited in the state  lottery  fund
    48  established  by section ninety-two-c of this article; provided that such
    49  moneys shall be distributed to the department of education in accordance
    50  with subdivisions two and four of section ninety-two-c of  this  article
    51  and  shall not be utilized for the purposes of subdivision three of such
    52  section. Monies allocated by this article may  enhance,  but  shall  not
    53  supplant, existing dedicated funds to the department of education;
    54    (b)  twenty-five  percent shall be deposited in the drug treatment and
    55  public education fund established  by  section  ninety-nine-gg  of  this
    56  article; and

        A. 3506--C                         49
 
     1    (c) fifty percent shall be deposited in the community grants reinvest-
     2  ment fund established by section ninety-nine-hh of this article.
     3    5.  On or before the first day of February each year, the commissioner
     4  of taxation and finance shall provide a written report to the  temporary
     5  president  of  the  senate, speaker of the assembly, chair of the senate
     6  finance committee, chair of the assembly ways and means  committee,  the
     7  state  comptroller  and  the  public.  Such  report shall detail how the
     8  moneys of the fund were utilized during the preceding calendar year, and
     9  shall include:
    10    (i) the amount of money dispersed from the fund and the award  process
    11  used for such disbursements;
    12    (ii) recipients of awards from the fund;
    13    (iii) the amount awarded to each recipient of an award from the fund;
    14    (iv) the purposes for which such awards were granted; and
    15    (v) a summary financial plan for such monies which shall include esti-
    16  mates of all receipts and all disbursements for the current and succeed-
    17  ing  fiscal  years,  along with the actual results from the prior fiscal
    18  year.
    19    6. Moneys shall be payable directly from the marihuana revenue fund to
    20  the department.
    21    § 99-gg. New York state  drug  treatment  public  education  fund.  1.
    22  There  is  hereby  established  in  the joint custody of the state comp-
    23  troller and the commissioner of taxation and finance a special  fund  to
    24  be known as the "New York state drug treatment public education fund".
    25    2.  Such  fund  shall  consist  of  revenues  received pursuant to the
    26  provisions of section ninety-nine-ff  of  this  article  and  all  other
    27  moneys  appropriated  thereto  from any other fund or source pursuant to
    28  law. Nothing contained in this section  shall  prevent  the  state  from
    29  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
    30  defined in this section and depositing them into the fund  according  to
    31  law.
    32    3.  The  moneys  in such fund shall be expended to the commissioner of
    33  the office of alcoholism and substance abuse and disbursed in  consulta-
    34  tion with the commissioner of health for the following purposes:
    35    (a)  To  develop and implement a youth-focused public health education
    36  and prevention campaign, including school-based prevention, early inter-
    37  vention, and health care services and programs to  reduce  the  risk  of
    38  marihuana and other substance use by school-aged children;
    39    (b)  To  develop  and  implement  a  statewide  public health campaign
    40  focused on the health effects of marihuana and legal use,  including  an
    41  ongoing  education  and  prevention  campaign  that educates the general
    42  public, including parents, consumers and retailers, on the legal use  of
    43  marihuana,  the importance of preventing youth access, the importance of
    44  safe storage and preventing secondhand marihuana smoke exposure,  infor-
    45  mation  for  pregnant or breastfeeding women, and the overconsumption of
    46  edibles;
    47    (c) To provide substance use disorder treatment programs for youth and
    48  adults, with an emphasis on programs  that  are  culturally  and  gender
    49  competent,  trauma-informed,  evidence-based  and provide a continuum of
    50  care that includes screening and assessment (substance use  disorder  as
    51  well  as  mental  health),  early intervention, active treatment, family
    52  involvement, case management, overdose prevention, prevention of  commu-
    53  nicable  diseases  related  to  substance  use,  relapse  management for
    54  substance use and other co-occurring behavioral health disorders,  voca-
    55  tional  services,  literacy  services, parenting classes, family therapy

        A. 3506--C                         50
 
     1  and counseling  services,  medication-assisted  treatments,  psychiatric
     2  medication and psychotherapy; and
     3    (d)  To  evaluate  the programs being funded to determine their effec-
     4  tiveness.
     5    4. On or before the first day of February each year, the  commissioner
     6  of the office of alcoholism and substance abuse services shall provide a
     7  written  report to the temporary president of the senate, speaker of the
     8  assembly, chair of the senate finance committee, chair of  the  assembly
     9  ways  and  means  committee, chair of the senate committee on alcoholism
    10  and drug abuse, chair of the assembly alcoholism and drug abuse  commit-
    11  tee,  the state comptroller and the public. Such report shall detail how
    12  the moneys of the fund were utilized during the preceding calendar year,
    13  and shall include:
    14    (a) the amount of money dispersed from the fund and the award  process
    15  used for such disbursements;
    16    (b) recipients of awards from the fund;
    17    (c) the amount awarded to each recipient of an award from the fund;
    18    (d) the purposes for which such awards were granted; and
    19    (e) a summary financial plan for such monies which shall include esti-
    20  mates of all receipts and all disbursements for the current and succeed-
    21  ing  fiscal  years,  along with the actual results from the prior fiscal
    22  year.
    23    5. Moneys shall be payable from the fund on the audit and  warrant  of
    24  the  comptroller  on vouchers approved and certified by the commissioner
    25  of education.
    26    § 99-hh. New York state community grants reinvestment fund.  1.  There
    27  is  hereby established in the joint custody of the state comptroller and
    28  the commissioner of taxation and finance a special fund to be  known  as
    29  the "New York state community grants reinvestment fund".
    30    2.  Such  fund  shall consist of all revenues received pursuant to the
    31  provisions of section ninety-nine-ff  of  this  article  and  all  other
    32  moneys  appropriated  thereto  from any other fund or source pursuant to
    33  law. Nothing contained in this section  shall  prevent  the  state  from
    34  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
    35  defined in this section and depositing them into the fund  according  to
    36  law.
    37    3.  The fund shall be governed and administered by an executive steer-
    38  ing committee of thirteen members established by the office of  children
    39  and  family  services  and including additional representatives from the
    40  labor department, and the health department appointed  by  the  governor
    41  and  a representative of the education department appointed by the board
    42  of regents. In addition, the majority and minority leaders of the senate
    43  and assembly shall each appoint one member to  the  steering  committee,
    44  the comptroller shall appoint three additional members, and the attorney
    45  general shall appoint two additional members from relevant local govern-
    46  ment  entities and community-based organizations. Every effort should be
    47  made to ensure a balanced and diverse committee, which shall have exper-
    48  tise in job placement, homelessness and housing, behavioral  health  and
    49  substance use disorder treatment, and effective rehabilitative treatment
    50  for adults and juveniles, and shall include representatives of organiza-
    51  tions  serving communities impacted by past federal and state drug poli-
    52  cies.
    53    4. The moneys in such fund shall be expended by the executive steering
    54  committee to qualified community-based nonprofit organizations  for  the
    55  purpose  of  reinvesting  in  communities disproportionately affected by
    56  past federal and state drug policies. The grants from this program shall

        A. 3506--C                         51

     1  be used to support job placement, job skills services, adult  education,
     2  mental  health treatment, substance use disorder treatment, system navi-
     3  gation services, legal services to  address  barriers  to  reentry,  and
     4  linkages  to  medical care, women's health services and other community-
     5  based supportive services.
     6    5. On or before the first day of February each year, the  commissioner
     7  of  the  office  of children and family services shall provide a written
     8  report to the temporary president of the senate, speaker of  the  assem-
     9  bly,  chair  of the senate finance committee, chair of the assembly ways
    10  and means committee, chair of the senate committee on children and fami-
    11  lies, chair of the assembly children and families  committee,  chair  of
    12  the  senate  committee  on labor, chair of the assembly labor committee,
    13  chair of the senate committee on health, chair of  the  assembly  health
    14  committee,  chair  of  the  senate  committee on education, chair of the
    15  assembly education committee, the state comptroller and the public. Such
    16  report shall detail how the monies of the fund were utilized during  the
    17  preceding calendar year, and shall include:
    18    (a)  the amount of money dispersed from the fund and the award process
    19  used for such disbursements;
    20    (b) recipients of awards from the fund;
    21    (c) the amount awarded to each recipient of an award from the fund;
    22    (d) the purposes for which such awards were granted; and
    23    (e) a summary financial plan for such monies which shall include esti-
    24  mates of all receipts and all disbursements for the current and succeed-
    25  ing fiscal years, along with the actual results from  the  prior  fiscal
    26  year.
    27    6.  Moneys  shall be payable from the fund on the audit and warrant of
    28  the comptroller on vouchers approved and certified by  the  commissioner
    29  of education.
    30    §  33.  The tax law is amended by adding a new article 18-A to read as
    31  follows:
    32                                ARTICLE 18-A
    33                      PROVISIONS RELATING TO MARIHUANA
    34  Section 446.   Definitions.
    35          447.   Taxes imposed.
    36          447-a. Local taxes on marihuana by a city or town.
    37          447-b. Ordinary  and  necessary  expenses  deductible  from  net
    38                   income.
    39          448.   Surety bond.
    40          449.   Collection of tax.
    41    § 446. Definitions. As used in this article:
    42    1.  "Commercial market activity" includes the cultivation, possession,
    43  manufacture,  distribution,  processing,  storing,  laboratory  testing,
    44  labeling, transportation, delivery or sale of  marihuana  and  marihuana
    45  products,  as  provided  for in article eleven of the alcoholic beverage
    46  control law, but shall not include medical marihuana activities provided
    47  for in title five-A of article thirty-three of the public health law.
    48    2.  "Concentrated cannabis" means (a)  the  separated  resin,  whether
    49  crude or purified, obtained from a plant of the genus Cannabis; or (b) a
    50  material,  preparation,  mixture,  compound  or  other  substance  which
    51  contains more than three percent by weight of delta-9 tetrahydrocannabi-
    52  nol, or its isomer, delta-8 dibenzopyran numbering  system,  or  delta-1
    53  tetrahydrocannabinol  or  its  isomer, delta 1 (6) monoterpene numbering
    54  system.
    55    3. "Marihuana" means all parts of the plant  of  the  genus  Cannabis,
    56  whether  growing or not; the seeds thereof; the resin extracted from any

        A. 3506--C                         52
 
     1  part of the plant; and every compound,  manufacture,  salt,  derivative,
     2  mixture,  or  preparation  of the plant, its seeds or resin. It does not
     3  include the mature stalks of the plant, fiber produced from the  stalks,
     4  oil  or cake made from the seeds of the plant, any other compound, manu-
     5  facture, salt, derivative, mixture, or preparation of the mature  stalks
     6  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
     7  sterilized seed of the plant which is incapable of germination. It  does
     8  not  include  all parts of the plant Cannabis sativa L., whether growing
     9  or not, having no more than three-tenths of one percent tetrahydrocanna-
    10  binol (THC).
    11    4. "Marihuana consumer" means a person  twenty-one  years  of  age  or
    12  older  who purchased marihuana or marihuana products for personal use by
    13  persons twenty-one years of age or older, but not for resale to others.
    14    5. "Marihuana flowers" shall mean the dried flowers of  the  marihuana
    15  plant.
    16    6.  "Marihuana  leaves"  shall  mean  all parts of the marihuana plant
    17  other than marihuana flowers that are sold or consumed.
    18    7. "Marihuana processor" means a person  licensed  by  the  bureau  of
    19  marihuana  policy  to  purchase marihuana and concentrated cannabis from
    20  marihuana producers, to process marihuana,  concentrated  cannabis,  and
    21  marihuana-infused  products,  package  and label marihuana, concentrated
    22  cannabis and marihuana-infused products for sale in retail outlets,  and
    23  sell  marihuana, concentrated cannabis and marihuana infused products at
    24  wholesale to marihuana retailers.
    25    8. "Marihuana producer" means a person licensed by the bureau of mari-
    26  huana policy to produce, process, and sell  marihuana  and  concentrated
    27  cannabis  at  wholesale to marihuana processors, marihuana retailers, or
    28  other marihuana producers, but not to consumers.
    29    9. "Marihuana products" means marihuana,  concentrated  cannabis,  and
    30  marihuana-infused products.
    31    10. "Marihuana-infused products" means products that contain marihuana
    32  or  concentrated cannabis and are intended for human use or consumption,
    33  such as, but not limited to, edible products, ointments, and tinctures.
    34    11. "Immature marihuana plant" means a marihuana plant with no observ-
    35  able flowers or buds.
    36    12. "Marihuana retailer" means a person  licensed  by  the  bureau  of
    37  marihuana policy to purchase marihuana, concentrated cannabis, and mari-
    38  huana-infused products from marihuana producers and marihuana processors
    39  and  sell marihuana, marihuana-infused products, and concentrated canna-
    40  bis in a retail outlet.
    41    13. "Marihuana retailer for on-premises consumption"  means  a  person
    42  licensed  by  the  bureau  of  marihuana  policy  to purchase marihuana,
    43  concentrated cannabis, and marihuana  infused  products  from  marihuana
    44  producers,  marihuana  retailers and marihuana processors and sell mari-
    45  huana products for a customer to consume while the  customer  is  within
    46  the facility.
    47    §  447.  Taxes  imposed.   1. (a) There is hereby levied and imposed a
    48  cultivation tax upon all harvested marihuana that enters the  commercial
    49  market  upon  all persons required to be licensed to cultivate marihuana
    50  pursuant to article eleven of the alcoholic beverage  control  law.  The
    51  tax shall be due after the marihuana is harvested.
    52    (i)  Marihuana flowers shall be taxed at a rate of sixty-two cents per
    53  dry-weight gram.
    54    (ii) Marihuana leaves shall be taxed at a rate of ten cents  per  dry-
    55  weight gram.

        A. 3506--C                         53
 
     1    (b) There is hereby levied and imposed a nursery tax upon all immature
     2  plants  that enter the commercial market upon all persons required to be
     3  licensed to produce immature plants pursuant to article  eleven  of  the
     4  alcoholic beverage control law. Immature plants shall be taxed at a rate
     5  of one dollar and thirty-five cents each.
     6    (c)  There  is  hereby levied and imposed a tax upon marihuana sold or
     7  otherwise transferred by a marihuana producer to a  marihuana  processor
     8  or marihuana retailer at a rate equivalent to the rate established under
     9  article twenty-eight of this chapter.
    10    (d) A marihuana excise tax is hereby levied and imposed upon customers
    11  of  nonmedical  marihuana  or nonmedical marihuana products sold in this
    12  state at the rate fifteen percent of any sale by a retailer,  microbusi-
    13  ness, or other person required to be licensed pursuant to article eleven
    14  of  the  alcoholic  beverage control law to sell marihuana and marihuana
    15  products directly to a customer.
    16    (e) The department shall establish procedures for  the  collection  of
    17  all taxes levied.
    18    (f)  No  tax  established by this section shall be levied upon medical
    19  marihuana intended for sale to a certified patient or  designated  care-
    20  giver  pursuant  to  title  five-A of article thirty-three of the public
    21  health law.
    22    2. For reporting periods beginning later than one year  following  the
    23  effective  date  of this article, the rates of tax under subdivision one
    24  of this section shall be adjusted for each  biennium  according  to  the
    25  cost-of-living adjustment for the calendar year.
    26    3.  The  department  shall regularly review the rates of the tax under
    27  subdivision one of this section and make recommendations to the legisla-
    28  ture regarding appropriate adjustments to the rates  that  will  further
    29  the purposes of:
    30    (a) maximizing net revenue;
    31    (b) minimizing the illegal marihuana industry; and
    32    (c) discouraging the use of marihuana by minors under twenty-one years
    33  of age.
    34    §  447-a. Local taxes on marihuana by a city or town. Any city or town
    35  in this state, acting through its  local  legislative  body,  is  hereby
    36  authorized  and  empowered to adopt and amend local laws imposing in any
    37  such city or town a sales tax on marihuana retailers at  a  rate  of  no
    38  more  than two percent of the sale price of marihuana products sold to a
    39  marihuana consumer. Any taxes imposed pursuant to the authority of  this
    40  section  shall  be  administered  and collected by the department in the
    41  same manner as the taxes imposed under section four  hundred  forty-nine
    42  of  this  article.  The  commissioner  is  hereby empowered to make such
    43  provisions as it  deems  necessary  for  the  joint  administration  and
    44  collection  of  the state and local taxes imposed and authorized by this
    45  article.
    46    § 447-b. Ordinary and necessary expenses deductible from  net  income.
    47  Notwithstanding  any  federal  tax law to the contrary, in computing net
    48  income for businesses exempted from criminal  penalties  under  articles
    49  two hundred twenty and two hundred twenty-one of the penal law and arti-
    50  cle eleven of the alcoholic beverage control law, there shall be allowed
    51  as  a deduction from state taxes all the ordinary and necessary expenses
    52  paid or incurred during the taxable year in carrying  on  any  trade  or
    53  business,  including  but not limited to, reasonable allowance for sala-
    54  ries or other compensation for personal services actually rendered.
    55    § 448. Surety bond. Marihuana  retailer  applicants  are  required  to
    56  submit  a  surety  bond  with  the department equal to two months of the

        A. 3506--C                         54
 
     1  cultivation facility's anticipated  retail  marihuana  excise  tax.  The
     2  surety bond must be issued by a company authorized to do business in the
     3  state.  Proof  of  surety  bond  is required for approval of applicant's
     4  retail license.
     5    §  449.  Collection of tax. This tax shall be collected by the commis-
     6  sioner who shall establish a procedure for the collection of this tax.
     7    § 34. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
     8  of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
     9  ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
    10  the laws of 1977 and as relettered by chapter 192 of the laws  of  1980,
    11  are amended to read as follows:
    12    (i)  prior to the filing of an accusatory instrument in a local crimi-
    13  nal court against such person, the prosecutor elects  not  to  prosecute
    14  such  person.  In such event, the prosecutor shall serve a certification
    15  of such disposition upon the division of criminal justice  services  and
    16  upon  the appropriate police department or law enforcement agency which,
    17  upon receipt thereof, shall comply with  the  provisions  of  paragraphs
    18  (a),  (b),  (c)  and  (d) of subdivision one of this section in the same
    19  manner as is required thereunder with respect to an  order  of  a  court
    20  entered pursuant to said subdivision one[.]; or
    21    (j)  following the arrest of such person, the arresting police agency,
    22  prior to the filing of an accusatory  instrument  in  a  local  criminal
    23  court  but subsequent to the forwarding of a copy of the fingerprints of
    24  such person to the division of criminal justice services, elects not  to
    25  proceed  further. In such event, the head of the arresting police agency
    26  shall serve a certification of such disposition  upon  the  division  of
    27  criminal justice services which, upon receipt thereof, shall comply with
    28  the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
    29  this  section  in the same manner as is required thereunder with respect
    30  to an order of a court entered pursuant to said subdivision one[.]; or
    31    (k) (i) The accusatory instrument alleged a violation of  article  two
    32  hundred  twenty  or section 240.36 of the penal law, prior to the taking
    33  effect of article two hundred twenty-one of the penal  law,  or  by  the
    34  conviction  of  such person of a violation of [article two hundred twen-
    35  ty-one] section 221.45 of the penal law on or after the  effective  date
    36  of  the  chapter  of the laws of two thousand eighteen that amended this
    37  subdivision or a violation of section 221.05,  221.10,  221.15,  221.20,
    38  221.25,  221.30,  221.35, or 221.40 of the penal law prior to the effec-
    39  tive date of the chapter of the  laws  of  two  thousand  eighteen  that
    40  amended  this  subdivision;  and  (ii)  the  sole  controlled  substance
    41  involved is [marijuana; (iii) the conviction was only for a violation or
    42  violations; and (iv) at least three years have passed since the  offense
    43  occurred]  marihuana.    No  defendant shall be required or permitted to
    44  waive eligibility for sealing pursuant to this paragraph as  part  of  a
    45  plea  of guilty, sentence or any agreement related to a conviction for a
    46  violation of section 221.45 of the penal law. Any such waiver  shall  be
    47  deemed void and wholly unenforceable.
    48    §  35.  Subdivision 4 of section 160.50 of the criminal procedure law,
    49  as amended by chapter 905 of the laws of 1977 and renumbered by  chapter
    50  142 of the laws of 1991, is amended to read as follows:
    51    4.  A person in whose favor a criminal action or proceeding was termi-
    52  nated, as defined in [paragraph] paragraphs (a) through (h), (k) or  (l)
    53  of  subdivision [two] three of this section, prior to the effective date
    54  of [this section, may upon motion apply  to  the  court  in  which  such
    55  termination  occurred,  upon  not  less  than  twenty days notice to the
    56  district attorney, for an order granting to such person the  relief  set

        A. 3506--C                         55

     1  forth in subdivision one of this section, and such order shall be grant-
     2  ed  unless the district attorney demonstrates to the satisfaction of the
     3  court that the interests of justice require otherwise. A person in whose
     4  favor  a  criminal  action  or  proceeding was terminated, as defined in
     5  paragraph (i) or (j) of subdivision two of this section,  prior  to  the
     6  effective  date of this section, may apply to the appropriate prosecutor
     7  or police agency for a certification as described in said paragraph  (i)
     8  or  (j)  granting  to such person the relief set forth therein, and such
     9  certification shall be granted by such prosecutor or police agency.] the
    10  chapter of the laws of two thousand eighteen that amended this  subdivi-
    11  sion, and whose records have not been sealed pursuant to subdivision one
    12  of  this  section, may apply to have the records of such criminal action
    13  or proceeding sealed at the clerk's office for the court  in  which  the
    14  criminal action or proceeding was terminated. Application may be made by
    15  the  person  or  his  or her attorney. Upon a determination by the clerk
    16  that the action or proceeding was terminated in the  person's  favor  as
    17  defined  in  subdivision  three  of this section, the clerk of the court
    18  shall immediately notify the commissioner of the  division  of  criminal
    19  justice services and the heads of all appropriate police departments and
    20  other  law  enforcement  agencies that the action has been terminated in
    21  favor of the accused and that the record of such action  or  proceedings
    22  shall  be  sealed.  Upon receipt of notification of such termination and
    23  sealing, all records relating to the criminal action shall be sealed, as
    24  required under paragraph (c) of subdivision one of this section, and all
    25  photographs, photographic plates or proofs, palmprints and  fingerprints
    26  shall be destroyed or returned as specified in paragraphs (a) and (b) of
    27  subdivision one of this section. This paragraph shall not apply to cases
    28  in  which  the  court declined to seal for reasons stated on the record,
    29  pursuant to subdivision one of this section.  When  an  applicant  under
    30  this  subdivision  presents  to the court clerk fingerprint records from
    31  New York state division of criminal justice services or a court disposi-
    32  tion which indicate that a criminal action  or  proceeding  against  the
    33  applicant  was  dismissed  but  the  supporting  court records cannot be
    34  located, have been destroyed, or do not indicate whether  the  dismissal
    35  was  a  "termination in favor of" the accused as that term is defined in
    36  subdivision three of this section, the clerk of the court  wherein  such
    37  criminal  action  or  proceeding  was terminated shall proceed as if the
    38  matter had been so terminated.
    39    § 36. Subdivisions 1 and 2 of section 170.56 of the criminal procedure
    40  law, subdivision 1 as amended by chapter 360 of the  laws  of  1977  and
    41  subdivision  2 as added by chapter 1042 of the laws of 1971, are amended
    42  to read as follows:
    43    1.  Upon or after arraignment in a local criminal court upon an infor-
    44  mation, a prosecutor's information or a misdemeanor complaint, where the
    45  sole remaining count or counts  charge  a  violation  or  violations  of
    46  section  [221.05,  221.10, 221.15, 221.35 or 221.40] 221.45 of the penal
    47  law, or upon summons for a nuisance offense under  section  sixty-five-c
    48  of  the alcoholic beverage control law and before the entry of a plea of
    49  guilty thereto or commencement of   a trial  thereof,  the  court,  upon
    50  motion  of  a defendant, may order that all proceedings be suspended and
    51  the action adjourned in contemplation of dismissal, or  upon  a  finding
    52  that  adjournment  would not be necessary or appropriate and the setting
    53  forth in the record of the reasons for such  findings,  may  dismiss  in
    54  furtherance  of  justice  the  accusatory instrument; provided, however,
    55  that the court may  not  order  such  adjournment  in  contemplation  of
    56  dismissal or dismiss the accusatory instrument if: (a) the defendant has

        A. 3506--C                         56
 
     1  previously  been granted such adjournment in contemplation of dismissal,
     2  or (b) the defendant has previously been granted a dismissal under  this
     3  section,  or  (c)  the  defendant  has  previously been convicted of any
     4  offense involving controlled substances, or (d) the defendant has previ-
     5  ously  been  convicted  of  a  crime  and the district attorney does not
     6  consent or (e) the defendant has previously been adjudicated a  youthful
     7  offender on the basis of any act or acts involving controlled substances
     8  and the district attorney does not consent.  Notwithstanding the limita-
     9  tions  set  forth  in  this  subdivision,  the  court may order that all
    10  proceedings be suspended and the action adjourned  in  contemplation  of
    11  dismissal  based  upon  a  finding  of  exceptional  circumstances.  For
    12  purposes of this  subdivision,  exceptional  circumstances  exist  when,
    13  regardless  of the ultimate disposition of the case, the entry of a plea
    14  of guilty is likely to result in severe collateral consequences, includ-
    15  ing, but not limited to, those that could leave a noncitizen  inadmissi-
    16  ble or removable from the United States.
    17    2.   Upon ordering the action adjourned in contemplation of dismissal,
    18  the court must set and specify such conditions for  the  adjournment  as
    19  may  be appropriate, and such conditions may include placing the defend-
    20  ant under the supervision of any public or private agency.  At any  time
    21  prior  to  dismissal  the  court  may modify the conditions or extend or
    22  reduce the term of the adjournment, except  that  the  total  period  of
    23  adjournment shall not exceed [twelve] six months.  Upon violation of any
    24  condition fixed by the court, the court may revoke its order and restore
    25  the case to the calendar and the prosecution thereupon must proceed.  If
    26  the  case  is not so restored to the calendar during the period fixed by
    27  the court, the accusatory instrument is, at the expiration of such peri-
    28  od, deemed to have been dismissed in the furtherance of justice.
    29    § 37. Section 210.46 of the criminal  procedure  law,  as  amended  by
    30  chapter 360 of the laws of 1977, is amended to read as follows:
    31  §  210.46   Adjournment in contemplation of dismissal in marihuana cases
    32          in a superior court.
    33    Upon or after arraignment in a superior court upon an indictment where
    34  the sole remaining count or counts charge a violation or  violations  of
    35  section  [221.05,  221.10, 221.15, 221.35 or 221.40] 221.45 of the penal
    36  law  and before the entry of a plea of guilty thereto or commencement of
    37  a trial thereof, the court, upon motion of a defendant, may  order  that
    38  all  proceedings  be suspended and the action adjourned in contemplation
    39  of dismissal or may dismiss the indictment in furtherance of justice, in
    40  accordance with the provisions of section 170.56 of this chapter.
    41    § 38. Paragraph (h) and subparagraph (ii) of paragraph (i) of subdivi-
    42  sion 1 of section 440.10 of the criminal procedure law, paragraph (h) as
    43  amended by chapter 332 of the laws of  2010  and  subparagraph  (ii)  of
    44  paragraph (i) as amended by chapter 368 of the laws of 2015, are amended
    45  and a new paragraph (j) is added to read as follows:
    46    (h) The judgment was obtained in violation of a right of the defendant
    47  under the constitution of this state or of the United States; [or]
    48    (ii)  official  documentation of the defendant's status as a victim of
    49  trafficking, compelling prostitution or trafficking in  persons  at  the
    50  time  of  the  offense  from a federal, state or local government agency
    51  shall create a presumption that the  defendant's  participation  in  the
    52  offense was a result of having been a victim of sex trafficking, compel-
    53  ling  prostitution  or trafficking in persons, but shall not be required
    54  for granting a motion under this paragraph[.]; or
    55    (j) The judgment occurred prior to the effective date  of  this  para-
    56  graph and is a conviction for:

        A. 3506--C                         57
 
     1    (i) an offense as defined by section 221.05 or 221.10 of the penal law
     2  (criminal  possession  of  marihuana  in the fifth degree), as in effect
     3  prior to the effective date of this paragraph, provided that the accusa-
     4  tory instrument that underlies the judgment does not include an  allega-
     5  tion  that  the defendant possessed more than twenty-five grams of mari-
     6  huana; or
     7    (ii) an offense as defined by former section 221.35 of the  penal  law
     8  (criminal sale of marihuana in the fifth degree).
     9    §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
    10  as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
    11  follows:
    12    6.  If  the court grants a motion under paragraph (i) or paragraph (j)
    13  of subdivision one of this section, it  must  vacate  the  judgment  and
    14  dismiss  the  accusatory instrument, and may take such additional action
    15  as is appropriate in the circumstances.
    16    § 40. The criminal procedure law is amended by adding  a  new  section
    17  440.46-a to read as follows:
    18  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    19               offenses.
    20    1.  A person currently serving a sentence for a conviction, whether by
    21  trial or by open or negotiated plea, who would not have been  guilty  of
    22  an  offense  or  who  would  have been guilty of a lesser offense on and
    23  after the effective date of this section had this section been in effect
    24  at the time of his or her  conviction  may  petition  for  a  recall  or
    25  dismissal  of  sentence before the trial court that entered the judgment
    26  of conviction in his or her case to request resentencing or dismissal in
    27  accordance with article two hundred twenty-one of the penal law.
    28    2. Upon receiving a motion under subdivision one of this  section  the
    29  court shall presume the movant satisfies the criteria in subdivision one
    30  of this section unless the party opposing the motion proves by clear and
    31  convincing  evidence  that  the movant does not satisfy the criteria. If
    32  the movant satisfies the criteria in subdivision one  of  this  section,
    33  the court shall grant the motion to vacate the sentence or to resentence
    34  because  it  is legally invalid. In exercising its discretion, the court
    35  may consider, but shall not be limited to, the following:
    36    (a) The movant's criminal conviction history, including  the  type  of
    37  crimes  committed,  the extent of injury to victims, the length of prior
    38  prison commitments, and the remoteness of the crimes.
    39    (b) The movant's disciplinary  record  and  record  of  rehabilitation
    40  while incarcerated.
    41    3.  A  person  who  is  serving a sentence and resentenced pursuant to
    42  subdivision two of this section shall  be  given  credit  for  any  time
    43  already  served and shall be subject to supervision for one year follow-
    44  ing completion of his or her time in custody  or  shall  be  subject  to
    45  whatever supervision time he or she would have otherwise been subject to
    46  after   release,   whichever  is  shorter,  unless  the  court,  in  its
    47  discretion, as part of its resentencing order, releases the person  from
    48  supervision.  Such person is subject to parole supervision under section
    49  60.04 of the penal law or post-release supervision under  section  70.45
    50  of  the  penal  law by the designated agency and the jurisdiction of the
    51  court in the county in which the offender is released or resides, or  in
    52  which  an alleged violation of supervision has occurred, for the purpose
    53  of hearing petitions to revoke supervision and impose a term of custody.
    54    4. Under no circumstances may resentencing under this  section  result
    55  in  the  imposition  of a term longer than the original sentence, or the

        A. 3506--C                         58
 
     1  reinstatement of charges dismissed pursuant to a negotiated plea  agree-
     2  ment.
     3    5.  A  person  who  has completed his or her sentence for a conviction
     4  under the former article two hundred twenty-one of the penal law, wheth-
     5  er by trial or open or negotiated plea, who would not have  been  guilty
     6  of  an  offense or who would have been guilty of a lesser offense on and
     7  after the effective date of this section had this section been in effect
     8  at the time of his or her conviction, may file an application before the
     9  trial court that entered the judgment of conviction in his or  her  case
    10  to  have  the conviction, in accordance with article two hundred twenty-
    11  one of the penal law:
    12    (a) Dismissed because the prior conviction is now legally invalid  and
    13  sealed in accordance with section 160.50 of this chapter;
    14    (b)  Redesignated  (or  "reclassified")  as  a violation and sealed in
    15  accordance with section 160.50 of this chapter; or
    16    (c) Redesignated (reclassified) as a misdemeanor.
    17    6. The court shall presume the petitioner satisfies  the  criteria  in
    18  subdivision  five  unless  the  party opposing the application proves by
    19  clear and convincing evidence that the petitioner does not  satisfy  the
    20  criteria  in subdivision five. Once the applicant satisfies the criteria
    21  in subdivision five, the court shall redesignate (or  "reclassify")  the
    22  conviction  as a misdemeanor, redesignate (reclassify) the conviction as
    23  a violation and seal the conviction, or dismiss and seal the  conviction
    24  as legally invalid under this section had this section been in effect at
    25  the time of his or her conviction.
    26    7. Unless requested by the applicant, no hearing is necessary to grant
    27  or deny an application filed under subdivision five of this section.
    28    8.  Any felony conviction that is vacated and resentenced under subdi-
    29  vision two or designated as a misdemeanor or violation under subdivision
    30  six of this section shall be considered a misdemeanor or  violation  for
    31  all purposes. Any misdemeanor conviction that is vacated and resentenced
    32  under subdivision two of this section or designated as a violation under
    33  subdivision  six of this section shall be considered a violation for all
    34  purposes.
    35    9. If the court that originally sentenced the movant is not available,
    36  the presiding judge shall designate another judge to rule on  the  peti-
    37  tion or application.
    38    10.  Nothing  in  this section is intended to diminish or abrogate any
    39  rights or remedies otherwise available to the petitioner or applicant.
    40    11. Nothing in this and related sections is intended  to  diminish  or
    41  abrogate  the  finality of judgements in any case not falling within the
    42  purview of this section.
    43    12. The provisions of this section shall  apply  equally  to  juvenile
    44  delinquency  adjudications  and  dispositions under section five hundred
    45  one-e of the executive law if the juvenile would not have been guilty of
    46  an offense or would have been guilty of  a  lesser  offense  under  this
    47  section  had  this  section  been  in  effect  at the time of his or her
    48  conviction.
    49    13. The office of  court  administration  shall  promulgate  and  make
    50  available  all necessary forms to enable the filing of the petitions and
    51  applications provided in this section no later than sixty days following
    52  the effective date of this section.
    53    § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
    54  procedure law, as amended by chapter 37 of the laws of 2014, is  amended
    55  to read as follows:

        A. 3506--C                         59
 
     1    (c)  Criminal  possession  of  a  controlled  substance in the seventh
     2  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
     3  possession  of  a controlled substance in the fifth degree as defined in
     4  section 220.06 of the penal law, criminal  possession  of  a  controlled
     5  substance in the fourth degree as defined in section 220.09 of the penal
     6  law,  criminal  possession of a controlled substance in the third degree
     7  as defined in section 220.16 of the penal law, criminal possession of  a
     8  controlled  substance  in the second degree as defined in section 220.18
     9  of the penal law, criminal possession of a controlled substance  in  the
    10  first  degree  as  defined  in section 220.21 of the penal law, criminal
    11  sale of a controlled substance in the fifth degree as defined in section
    12  220.31 of the penal law, criminal sale of a controlled substance in  the
    13  fourth  degree  as  defined in section 220.34 of the penal law, criminal
    14  sale of a controlled substance in the third degree as defined in section
    15  220.39 of the penal law, criminal sale of a controlled substance in  the
    16  second  degree  as  defined in section 220.41 of the penal law, criminal
    17  sale of a controlled substance in the first degree as defined in section
    18  220.43 of the penal law, criminally possessing a  hypodermic  instrument
    19  as  defined  in  section  220.45  of  the  penal law, criminal sale of a
    20  prescription for a controlled substance or a controlled substance  by  a
    21  practitioner  or  pharmacist  as  defined in section 220.65 of the penal
    22  law, criminal possession of methamphetamine  manufacturing  material  in
    23  the  second degree as defined in section 220.70 of the penal law, crimi-
    24  nal possession of methamphetamine manufacturing material  in  the  first
    25  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
    26  possession of precursors of methamphetamine as defined in section 220.72
    27  of the penal law, unlawful manufacture of methamphetamine in  the  third
    28  degree  as defined in section 220.73 of the penal law, unlawful manufac-
    29  ture of methamphetamine in the  second  degree  as  defined  in  section
    30  220.74  of the penal law, unlawful manufacture of methamphetamine in the
    31  first degree as defined in section 220.75 of  the  penal  law,  unlawful
    32  disposal  of  methamphetamine  laboratory material as defined in section
    33  220.76 of the penal law, operating as a major trafficker as  defined  in
    34  section  220.77  of  the penal law, [criminal possession of marihuana in
    35  the first degree as defined in section 221.30 of the penal law, criminal
    36  sale of marihuana in the first degree as defined in  section  221.55  of
    37  the  penal  law,]  promoting gambling in the second degree as defined in
    38  section 225.05 of the penal law, promoting gambling in the first  degree
    39  as  defined  in  section 225.10 of the penal law, possession of gambling
    40  records in the second degree as defined in section 225.15 of  the  penal
    41  law,  possession  of  gambling records in the first degree as defined in
    42  section 225.20 of the penal law, and possession of a gambling device  as
    43  defined in section 225.30 of the penal law;
    44    § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
    45  9  of  section  1310 of the civil practice law and rules, paragraphs (b)
    46  and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
    47  and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
    48  are amended to read as follows:
    49    (b) on three or more occasions, engaging  in  conduct  constituting  a
    50  violation  of  any  of  the  felonies defined in section 220.09, 220.16,
    51  220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] or 220.43 [or  221.55]
    52  of  the  penal law, which violations do not constitute a single criminal
    53  offense as defined in subdivision one of section 40.10 of  the  criminal
    54  procedure law, or a single criminal transaction, as defined in paragraph
    55  (a)  of  subdivision two of section 40.10 of the criminal procedure law,
    56  and at least one of which resulted in a conviction of such  offense,  or

        A. 3506--C                         60
 
     1  where  the  accusatory  instrument charges one or more of such felonies,
     2  conviction upon a plea of guilty to a felony  for  which  such  plea  is
     3  otherwise authorized by law; or
     4    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
     5  220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
     6  nal  defendant  for  a violation of section 221.30 of the penal law,] or
     7  where the accusatory instrument charges any such felony, conviction upon
     8  a plea of guilty to a felony for which the plea is otherwise  authorized
     9  by  law,  together with evidence which: (i) provides substantial indicia
    10  that the defendant used the real property  to  engage  in  a  continual,
    11  ongoing  course  of  conduct involving the unlawful mixing, compounding,
    12  manufacturing, warehousing, or packaging of  controlled  substances  [or
    13  where  the  conviction is for a violation of section 221.30 of the penal
    14  law, marijuana,] as part of an illegal trade or business for  gain;  and
    15  (ii) establishes, where the conviction is for possession of a controlled
    16  substance  [or where the conviction is for a violation of section 221.30
    17  of the penal law, marijuana], that such possession was with  the  intent
    18  to sell it.
    19    [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
    20  article two hundred twenty or section 221.30  or  221.55  of  the  penal
    21  law.]
    22    9.  "Criminal defendant" means a person who has criminal liability for
    23  a crime defined in [subdivisions] subdivision five [and six  hereof]  of
    24  this  section.  For  purposes  of  this  article,  a person has criminal
    25  liability when [(a)] he has been convicted of a post-conviction  forfei-
    26  ture  crime[, or (b) the claiming authority proves by clear and convinc-
    27  ing evidence that such person has committed an act in violation of arti-
    28  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
    29    § 43. Subdivision 13 of section 89-f of the general business  law,  as
    30  added by chapter 336 of the laws of 1992, is amended to read as follows:
    31    13.  "Serious  offense"  shall  mean any felony involving the offenses
    32  enumerated in the closing paragraph  of  this  subdivision;  a  criminal
    33  solicitation  of  or a conspiracy to commit or an attempt to commit or a
    34  criminal facilitation of a felony involving the offenses  enumerated  in
    35  the  closing paragraph of this subdivision, which criminal solicitation,
    36  conspiracy, attempt or criminal facilitation itself constitutes a felony
    37  or any offense in any other jurisdiction  which  if  committed  in  this
    38  state  would  constitute a felony; any offense in any other jurisdiction
    39  which if committed in this state would constitute a felony provided that
    40  for the purposes of this article, none of the following shall be consid-
    41  ered criminal convictions or reported as  such:  (i)  a  conviction  for
    42  which an executive pardon has been issued pursuant to the executive law;
    43  (ii)  a  conviction  which  has  been vacated and replaced by a youthful
    44  offender finding pursuant to article seven hundred twenty of the  crimi-
    45  nal  procedure  law,  or  the  applicable provisions of law of any other
    46  jurisdiction; or (iii) a conviction  the  records  of  which  have  been
    47  sealed  pursuant  to the applicable provisions of the laws of this state
    48  or of any other jurisdiction; and (iv)  a  conviction  for  which  other
    49  evidence  of successful rehabilitation to remove the disability has been
    50  issued.
    51    Felonies involving: assault, aggravated assault and reckless endanger-
    52  ment pursuant to article one  hundred  twenty;  vehicular  manslaughter,
    53  manslaughter and murder pursuant to article one hundred twenty-five; sex
    54  offenses  pursuant to article one hundred thirty; unlawful imprisonment,
    55  kidnapping or coercion pursuant  to  article  one  hundred  thirty-five;
    56  criminal  trespass  and  burglary pursuant to article one hundred forty;

        A. 3506--C                         61

     1  criminal mischief, criminal tampering  and  tampering  with  a  consumer
     2  product  pursuant  to  article one hundred forty-five; arson pursuant to
     3  article one hundred fifty; larceny and offenses involving theft pursuant
     4  to article one hundred fifty-five; offenses involving computers pursuant
     5  to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
     6  hundred sixty; criminal possession of stolen property pursuant to  arti-
     7  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
     8  article one hundred seventy; involving false written statements pursuant
     9  to article one hundred seventy-five; commercial bribing  and  commercial
    10  bribe  receiving pursuant to article one hundred eighty; criminal imper-
    11  sonation and scheme to defraud pursuant to article one  hundred  ninety;
    12  bribery involving public servants and related offenses pursuant to arti-
    13  cle  two  hundred;  perjury and related offenses pursuant to article two
    14  hundred ten; tampering with a witness, intimidating a victim or  witness
    15  and  tampering  with  physical  evidence pursuant to article two hundred
    16  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
    17  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    18  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    19  220.41,  220.43  and  220.44;  [criminal] unlicensed sale of [marijuana]
    20  marihuana in the first degree pursuant to  [sections]  section  221.45[,
    21  221.50  and  221.55]; riot in the first degree, aggravated harassment in
    22  the first degree, criminal nuisance in  the  first  degree  and  falsely
    23  reporting  an incident in the second or first degree pursuant to article
    24  two hundred forty; and crimes against public safety pursuant to  article
    25  two hundred sixty-five of the penal law.
    26    §  44.  Paragraph  (f)  of subdivision 2 of section 850 of the general
    27  business law is REPEALED.
    28    § 45. Paragraph (h) of subdivision 2 of section  850  of  the  general
    29  business  law, as amended by chapter 812 of the laws of 1980, is amended
    30  to read as follows:
    31    (h) Objects, used or designed for the purpose of ingesting,  inhaling,
    32  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
    33  into the human body.
    34    §  46.  Paragraph  a  of  subdivision  4-a of section 165 of the state
    35  finance law, as added by chapter 95 of the laws of 2000, is  amended  to
    36  read as follows:
    37    a.  In  order  to  advance  specific  economic  goals,  New York state
    38  labelled wines, as defined in subdivision [twenty-a] twenty-j of section
    39  three of the alcoholic beverage control law, shall have  favored  source
    40  status for the purposes of procurement in accordance with the provisions
    41  of this subdivision.  Procurement of these New York state labelled wines
    42  shall  be  exempt from the competitive procurement provisions of section
    43  one hundred sixty-three of this article and other  competitive  procure-
    44  ment  statutes.    Such exemption shall apply to New York state labelled
    45  wines as defined in subdivision [twenty-a] twenty-j of section three  of
    46  the  alcoholic  beverage  control  law  produced by a licensed winery as
    47  defined in section seventy-six of the alcoholic beverage control law.
    48    § 47. Subdivision 7 of section 995 of the executive law, as amended by
    49  chapter 19 of the laws of 2012, is amended to read as follows:
    50    7. "Designated offender"  means  a  person  convicted  of  any  felony
    51  defined  in  any  chapter  of  the  laws of the state or any misdemeanor
    52  defined in the penal law [except that  where  the  person  is  convicted
    53  under  section  221.10  of  the penal law, only a person convicted under
    54  subdivision two of such section, or a person convicted under subdivision
    55  one of such section who stands previously  convicted  of  any  crime  as
    56  defined in subdivision six of section 10.00 of the penal law].

        A. 3506--C                         62
 
     1    § 48. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
     2  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
     3  56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
     4  laws of 1990, are amended to read as follows:
     5    (b) three or more violations of any of the felonies defined in section
     6  220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
     7  220.43[,] or 220.77[, or 221.55] of this chapter,  which  violations  do
     8  not  constitute  a single criminal offense as defined in subdivision one
     9  of section 40.10 of the criminal procedure law,  or  a  single  criminal
    10  transaction,  as  defined in paragraph (a) of subdivision two of section
    11  40.10 of the criminal procedure law, and at least one of which  resulted
    12  in  a  conviction  of  such  offense, or where the accusatory instrument
    13  charges one or more of such felonies, conviction upon a plea  of  guilty
    14  to a felony for which such plea is otherwise authorized by law; or
    15    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    16  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
    17  accusatory instrument charges any such felony, conviction upon a plea of
    18  guilty  to  a  felony for which the plea is otherwise authorized by law,
    19  together with evidence which: (i) provides substantial indicia that  the
    20  defendant  used  the  real  property  to  engage in a continual, ongoing
    21  course of conduct involving the unlawful mixing,  compounding,  manufac-
    22  turing, warehousing, or packaging of controlled substances [or where the
    23  conviction  is  for a violation of section 221.30 of this chapter, mari-
    24  juana] as part of an illegal trade or business for gain; and (ii) estab-
    25  lishes, where the conviction is for possession of a controlled substance
    26  [or where the conviction is for a violation of section  221.30  of  this
    27  chapter,  marijuana],  that  such possession was with the intent to sell
    28  it.
    29    § 49. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
    30  and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
    31  amended to read as follows:
    32    (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
    33  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    34  of  this  section  that  result in disqualification for a period of five
    35  years shall include a conviction under sections 100.10, 105.13,  115.05,
    36  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    37  125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
    38  140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
    39  220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
    40  230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
    41  235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
    42  section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
    43  265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
    44  the  aforesaid  offenses  under  section 110.00 of the penal law, or any
    45  similar offenses committed under a former section of the penal  law,  or
    46  any  offenses  committed  under  a former section of the penal law which
    47  would constitute violations of the aforesaid sections of the penal  law,
    48  or  any  offenses  committed  outside  this state which would constitute
    49  violations of the aforesaid sections of the penal law.
    50    § 50. The opening paragraph of  paragraph  (a)  of  subdivision  2  of
    51  section  1194  of the vehicle and traffic law, as amended by chapter 196
    52  of the laws of 1996, is amended to read as follows:
    53    When authorized. Any person who operates a motor vehicle in this state
    54  shall be deemed to have given consent to a chemical test of one or  more
    55  of  the  following:  breath, blood, urine, or saliva, for the purpose of
    56  determining the alcoholic and/or  drug  content,  other  than  marihuana

        A. 3506--C                         63
 
     1  content  including  but  not limited to tetrahydrocannabinol content, of
     2  the blood provided that such test is administered by or at the direction
     3  of a police officer with respect to a chemical test of breath, urine  or
     4  saliva or, with respect to a chemical test of blood, at the direction of
     5  a police officer:
     6    §  51.  Section 17 of the alcoholic beverage control law is amended by
     7  adding a new subdivision 12 to read as follows:
     8    12. To develop and establish minimum criteria for alcohol or substance
     9  use disorder training awareness programs which may be given and adminis-
    10  tered by schools; other  entities  including  trade  associations  whose
    11  members  are  engaged  in  or  involved  in the retail sale of alcoholic
    12  beverages; national and regional franchisors who have granted  at  least
    13  five  franchises  in the state which are licensed to sell beer at retail
    14  for off-premises consumption; licensees  authorized  to  sell  alcoholic
    15  beverages  at retail for off-premises consumption operating five or more
    16  licensed premises; and persons  interested,  whether  as  an  individual
    17  proprietor or partner or officer or member of a limited liability compa-
    18  ny,  in five or more licensees authorized to sell alcoholic beverages at
    19  retail for off-premises consumption. The authority shall provide for the
    20  issuance of  certificates  of  approval  to  all  certified  alcohol  or
    21  substance  use  disorder  training  awareness  programs. Certificates of
    22  approval may be revoked by the authority for failure to  adhere  to  the
    23  authority's  rules  and  regulations.  Such  rules and regulations shall
    24  afford those who have been issued a certificate of approval an  opportu-
    25  nity  for  a  hearing prior to any determination of whether such certif-
    26  icate should be revoked.
    27    No licensee shall be required to apply for  any  such  certificate  or
    28  renewal  certificate  and  the licensee may voluntarily surrender such a
    29  certificate or renewal certificate at any time. A fee in the  amount  of
    30  nine  hundred  dollars shall be paid to the authority with each applica-
    31  tion for a certificate of approval or renewal certificate.  The authori-
    32  ty shall promptly refund such fee to an applicant whose application  was
    33  denied. Each certificate of approval and renewal thereof shall be issued
    34  for a period of three years. To effectuate the provisions of this subdi-
    35  vision,  the  authority  is  empowered  to require in connection with an
    36  application the submission of such  information  as  the  authority  may
    37  direct;  to  prescribe forms of applications and of all reports which it
    38  deems necessary to be made by any applicant or  certificate  holder;  to
    39  conduct  investigations;  to  require  the maintenance of such books and
    40  records as the authority may direct; and to revoke, cancel,  or  suspend
    41  for  cause any certificate provided for in this subdivision. Each entity
    42  authorized to give and administer an alcohol or substance  use  disorder
    43  training awareness program shall issue certificates of completion to all
    44  licensees and employees who successfully complete such an approved alco-
    45  hol  or  substance  use disorder training awareness program. Such entity
    46  shall regularly transmit to the authority the names, addresses and dates
    47  of attendance of all  the  licensees  and  employees  of  licensees  who
    48  successfully  complete  an  approved  alcohol  or substance use disorder
    49  training awareness program. Such transmittal shall  be  in  a  form  and
    50  manner  prescribed by the authority. The authority shall adopt rules and
    51  regulations to effectuate the provisions of this subdivision,  including
    52  the  minimum  requirements  for  the  curriculum  of  each such training
    53  program and the regular ongoing training of  employees  holding  certif-
    54  icates  of  completion  or  renewal certificates.   Such rules and regu-
    55  lations shall include the minimum requirements for a separate curriculum
    56  for licensees and their employees authorized to sell alcoholic beverages

        A. 3506--C                         64
 
     1  at retail for off-premises consumption, minimum requirements for a sepa-
     2  rate curriculum for licensees and their  employees  authorized  to  sell
     3  alcoholic  beverages at retail for on-premises consumption, and the form
     4  of  a  certificate  of  completion  or  renewal  thereof to be issued in
     5  respect to each such type of program. A  certificate  of  completion  or
     6  renewal thereof issued by an entity authorized to give and administer an
     7  alcohol or substance use disorder training awareness program pursuant to
     8  this  subdivision  to  licensees  and their employees authorized to sell
     9  alcoholic beverages at retail for off-premises consumption shall not  be
    10  invalidated  by  a  change  of  employment  to  another such licensee. A
    11  certificate of completion or renewal thereof issued by an entity author-
    12  ized to give and administer an alcohol or substance use disorder  train-
    13  ing  awareness  program  pursuant  to  this subdivision to licensees and
    14  their employees authorized to sell alcoholic  beverages  at  retail  for
    15  on-premises  consumption shall not be invalidated by a change of employ-
    16  ment to another such licensee.  Attendance  at  any  course  established
    17  pursuant  to  this section shall be in person, through distance learning
    18  methods, or through an internet based online program.
    19    § 52. Subdivision 12 of section 17 of the alcoholic  beverage  control
    20  law,  as  amended  by chapter 549 of the laws of 2001, the closing para-
    21  graph as amended by chapter 435 of the laws of 2010, is amended to  read
    22  as follows:
    23    12. To develop and establish minimum criteria for alcohol or substance
    24  use disorder training awareness programs which may be given and adminis-
    25  tered  by  schools;  other  entities  including trade associations whose
    26  members are engaged in or involved  in  the  retail  sale  of  alcoholic
    27  beverages;  national  and regional franchisors who have granted at least
    28  five franchises in the state which are licensed to sell beer  at  retail
    29  for  off-premises  consumption;  licensees  authorized to sell alcoholic
    30  beverages at retail for off-premises consumption operating five or  more
    31  licensed  premises;  and  persons  interested,  whether as an individual
    32  proprietor or partner or officer or member of a limited liability compa-
    33  ny, in five or more licensees authorized to sell alcoholic beverages  at
    34  retail for off-premises consumption. The authority shall provide for the
    35  issuance  of  certificates  of  approval  to  all  certified  alcohol or
    36  substance use disorder  training  awareness  programs.  Certificates  of
    37  approval  may  be  revoked by the authority for failure to adhere to the
    38  authority's rules and regulations.  Such  rules  and  regulations  shall
    39  afford  those who have been issued a certificate of approval an opportu-
    40  nity for a hearing prior to any determination of  whether  such  certif-
    41  icate should be revoked.
    42    No  licensee  shall  be  required to apply for any such certificate or
    43  renewal certificate and the licensee may voluntarily  surrender  such  a
    44  certificate  or  renewal certificate at any time. A fee in the amount of
    45  nine hundred dollars shall be paid to the authority with  each  applica-
    46  tion for a certificate of approval or renewal certificate. The authority
    47  shall  promptly  refund  such  fee to an applicant whose application was
    48  denied. Each certificate of approval and renewal thereof shall be issued
    49  for a period of three years. To effectuate the provisions of this subdi-
    50  vision, the authority is empowered to  require  in  connection  with  an
    51  application  the  submission  of  such  information as the authority may
    52  direct; to prescribe forms of applications and of all reports  which  it
    53  deems  necessary  to  be made by any applicant or certificate holder; to
    54  conduct investigations; to require the maintenance  of  such  books  and
    55  records  as  the authority may direct; to revoke, cancel, or suspend for
    56  cause any certificate provided for  in  this  subdivision.  Each  entity

        A. 3506--C                         65

     1  authorized  to  give and administer an alcohol or substance use disorder
     2  training awareness program shall issue certificates of completion to all
     3  licensees and employees who successfully complete such an approved alco-
     4  hol  or  substance  use disorder training awareness program. Such entity
     5  shall regularly transmit to the authority the names, addresses and dates
     6  of attendance of all  the  licensees  and  employees  of  licensees  who
     7  successfully  complete  an  approved  alcohol  or substance use disorder
     8  training awareness program.  Such transmittal shall be  in  a  form  and
     9  manner  prescribed by the authority. The authority shall adopt rules and
    10  regulations to effectuate the provisions of this subdivision,  including
    11  the  minimum  requirements  for  the  curriculum  of  each such training
    12  program and the regular ongoing training of  employees  holding  certif-
    13  icates of completion or renewal certificates. Such rules and regulations
    14  shall  include  the  minimum  requirements for a separate curriculum for
    15  licensees and their employees authorized to sell alcoholic beverages  at
    16  retail for off-premises consumption, minimum requirements for a separate
    17  curriculum for licensees and their employees authorized to sell alcohol-
    18  ic  beverages  at  retail for on-premises consumption, and the form of a
    19  certificate of completion or renewal thereof to be issued in respect  to
    20  each such type of program. A certificate of completion or renewal there-
    21  of  issued  by an entity authorized to give and administer an alcohol or
    22  substance use disorder  training  awareness  program  pursuant  to  this
    23  subdivision to licensees and their employees authorized to sell alcohol-
    24  ic beverages at retail for off-premises consumption shall not be invali-
    25  dated  by a change of employment to another such licensee. A certificate
    26  of completion or renewal thereof issued by an entity authorized to  give
    27  and  administer  an alcohol or substance use disorder training awareness
    28  program pursuant to this subdivision to licensees  and  their  employees
    29  authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
    30  consumption shall not be invalidated by a change of employment to anoth-
    31  er such licensee. Attendance at any course established pursuant to  this
    32  section  shall  be  in  person,  through  distance  learning methods, or
    33  through an internet based online program.
    34    § 53. Subdivision 10 of section 18 of the alcoholic  beverage  control
    35  law,  as  amended by chapter 118 of the laws of 2012, is amended to read
    36  as follows:
    37    10. To develop and establish minimum criteria for alcohol or substance
    38  use disorder training awareness programs which may be given and adminis-
    39  tered by schools; other  entities  including  trade  associations  whose
    40  members  are  engaged  in  or  involved  in the retail sale of alcoholic
    41  beverages; national and regional franchisors who have granted  at  least
    42  five  franchises  in the state which are licensed to sell beer at retail
    43  for off-premises consumption; licensees  authorized  to  sell  alcoholic
    44  beverages  at retail for off-premises consumption operating five or more
    45  licensed premises; and persons  interested,  whether  as  an  individual
    46  proprietor or partner or officer or member of a limited liability compa-
    47  ny,  in five or more licensees authorized to sell alcoholic beverages at
    48  retail for off-premises consumption. The authority shall provide for the
    49  issuance of  certificates  of  approval  to  all  certified  alcohol  or
    50  substance  use  disorder  training  awareness  programs. Certificates of
    51  approval may be revoked by the authority for failure to  adhere  to  the
    52  authority's  rules  and  regulations.  Such  rules and regulations shall
    53  afford those who have been issued a certificate of approval an  opportu-
    54  nity  for  a  hearing prior to any determination of whether such certif-
    55  icate should be revoked.

        A. 3506--C                         66
 
     1    No licensee shall be required to apply for  any  such  certificate  or
     2  renewal  certificate  and  the licensee may voluntarily surrender such a
     3  certificate or renewal certificate at any time. A fee in the  amount  of
     4  nine  hundred  dollars shall be paid to the authority with each applica-
     5  tion for a certificate of approval or renewal certificate. The authority
     6  shall  promptly  refund  such  fee to an applicant whose application was
     7  denied. Each certificate of approval and renewal thereof shall be issued
     8  for a period of three years. To effectuate the provisions of this subdi-
     9  vision, the authority is empowered to  require  in  connection  with  an
    10  application  the  submission  of  such  information as the authority may
    11  direct; to prescribe forms of applications and of all reports  which  it
    12  deems  necessary  to  be made by any applicant or certificate holder; to
    13  conduct investigations; to require the maintenance  of  such  books  and
    14  records  as  the authority may direct; to revoke, cancel, or suspend for
    15  cause any certificate provided for  in  this  subdivision.  Each  entity
    16  authorized  to  give and administer an alcohol or substance use disorder
    17  training awareness program shall issue certificates of completion to all
    18  licensees and employees who successfully complete such an approved alco-
    19  hol or substance use disorder training awareness  program.  Such  entity
    20  shall regularly transmit to the authority the names, addresses and dates
    21  of  attendance  of  all  the  licensees  and  employees of licensees who
    22  successfully complete an approved  alcohol  or  substance  use  disorder
    23  training  awareness  program.    Such transmittal shall be in a form and
    24  manner prescribed by the authority. The authority shall adopt rules  and
    25  regulations  to effectuate the provisions of this subdivision, including
    26  the minimum requirements  for  the  curriculum  of  each  such  training
    27  program  and  the  regular ongoing training of employees holding certif-
    28  icates of completion or renewal certificates. Such rules and regulations
    29  shall include the minimum requirements for  a  separate  curriculum  for
    30  licensees  and their employees authorized to sell alcoholic beverages at
    31  retail for off-premises consumption, minimum requirements for a separate
    32  curriculum for licensees and their employees authorized to sell alcohol-
    33  ic beverages at retail for on-premises consumption, and the  form  of  a
    34  certificate  of completion or renewal thereof to be issued in respect to
    35  each such type of program. A certificate of completion or renewal there-
    36  of issued by an entity authorized to give and administer an  alcohol  or
    37  substance  use  disorder  training  awareness  program  pursuant to this
    38  subdivision to licensees and their employees authorized to sell alcohol-
    39  ic beverages at retail for off-premises consumption shall not be invali-
    40  dated by a change of employment to another such licensee. A  certificate
    41  of  completion or renewal thereof issued by an entity authorized to give
    42  and administer an alcohol or substance use disorder  training  awareness
    43  program  pursuant  to  this subdivision to licensees and their employees
    44  authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
    45  consumption shall not be invalidated by a change of employment to anoth-
    46  er  such licensee. Attendance at any course established pursuant to this
    47  section shall be  in  person,  through  distance  learning  methods,  or
    48  through an internet based online program.
    49    §  54.  Section  18 of the alcoholic beverage control law, as added by
    50  chapter 83 of the laws of 1995, is amended by adding a  new  subdivision
    51  10 to read as follows:
    52    10. To develop and establish minimum criteria for alcohol or substance
    53  use disorder training awareness programs which may be given and adminis-
    54  tered  by  schools;  other  entities  including trade associations whose
    55  members are engaged in or involved  in  the  retail  sale  of  alcoholic
    56  beverages;  national  and regional franchisors who have granted at least

        A. 3506--C                         67
 
     1  five franchises in the state which are licensed to sell beer  at  retail
     2  for  off-premises  consumption;  licensees  authorized to sell alcoholic
     3  beverages at retail for off-premises consumption operating five or  more
     4  licensed  premises;  and  persons  interested,  whether as an individual
     5  proprietor or partner or officer or member of a limited liability compa-
     6  ny, in five or more licensees authorized to sell alcoholic beverages  at
     7  retail for off-premises consumption. The authority shall provide for the
     8  issuance  of  certificates  of  approval  to  all  certified  alcohol or
     9  substance use disorder  training  awareness  programs.  Certificates  of
    10  approval  may  be  revoked by the authority for failure to adhere to the
    11  authority's rules and regulations.  Such  rules  and  regulations  shall
    12  afford  those who have been issued a certificate of approval an opportu-
    13  nity for a hearing prior to any determination of  whether  such  certif-
    14  icate should be revoked.
    15    No  licensee  shall  be  required to apply for any such certificate or
    16  renewal certificate and the licensee may voluntarily  surrender  such  a
    17  certificate  or  renewal certificate at any time. A fee in the amount of
    18  nine hundred dollars shall be paid to the authority with  each  applica-
    19  tion for a certificate of approval or renewal certificate. The authority
    20  shall  promptly  refund  such  fee to an applicant whose application was
    21  denied. Each certificate of approval and renewal thereof shall be issued
    22  for a period of three years. To effectuate the provisions of this subdi-
    23  vision, the authority is empowered to  require  in  connection  with  an
    24  application  the  submission  of  such  information as the authority may
    25  direct; to prescribe forms of applications and of all reports  which  it
    26  deems  necessary  to  be made by any applicant or certificate holder; to
    27  conduct investigations; to require the maintenance  of  such  books  and
    28  records  as  the authority may direct; to revoke, cancel, or suspend for
    29  cause any certificate provided for  in  this  subdivision.  Each  entity
    30  authorized  to  give and administer an alcohol or substance use disorder
    31  training awareness program shall issue certificates of completion to all
    32  licensees and employees who successfully complete such an approved alco-
    33  hol or substance use disorder training awareness  program.  Such  entity
    34  shall regularly transmit to the authority the names, addresses and dates
    35  of  attendance  of  all  the  licensees  and  employees of licensees who
    36  successfully complete an approved  alcohol  or  substance  use  disorder
    37  training  awareness  program.  Such  transmittal  shall be in a form and
    38  manner prescribed by the authority. The authority shall adopt rules  and
    39  regulations  to effectuate the provisions of this subdivision, including
    40  the minimum requirements  for  the  curriculum  of  each  such  training
    41  program  and  the  regular ongoing training of employees holding certif-
    42  icates of completion or renewal certificates. Such rules and regulations
    43  shall include the minimum requirements for  a  separate  curriculum  for
    44  licensees  and their employees authorized to sell alcoholic beverages at
    45  retail for off-premises consumption, minimum requirements for a separate
    46  curriculum for licensees and their employees authorized to sell alcohol-
    47  ic beverages at retail for on-premises consumption, and the  form  of  a
    48  certificate  of completion or renewal thereof to be issued in respect to
    49  each such type of program. A certificate of completion or renewal there-
    50  of issued by an entity authorized to give and administer an  alcohol  or
    51  substance  use  disorder  training  awareness  program  pursuant to this
    52  subdivision to licensees and their employees authorized to sell alcohol-
    53  ic beverages at retail for off-premises consumption shall not be invali-
    54  dated by a change of employment to another such licensee.  A certificate
    55  of completion or renewal thereof issued by an entity authorized to  give
    56  and  administer  an alcohol or substance use disorder training awareness

        A. 3506--C                         68
 
     1  program pursuant to this subdivision to licensees  and  their  employees
     2  authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
     3  consumption shall not be invalidated by a change of employment to anoth-
     4  er such licensee.  Attendance at any course established pursuant to this
     5  section  shall  be  in  person,  through  distance  learning methods, or
     6  through an internet based online program.
     7    § 55. Section 150.75 of the criminal procedure law is REPEALED.
     8    § 56. Subdivision (a) of section 712  of  the  family  court  act,  as
     9  amended  by  section  7  of part G of chapter 58 of the laws of 2010, is
    10  amended to read as follows:
    11    (a) "Person in need of supervision". A person less than eighteen years
    12  of age who does not attend school in accordance with the  provisions  of
    13  part one of article sixty-five of the education law or who is incorrigi-
    14  ble,  ungovernable  or  habitually  disobedient  and  beyond  the lawful
    15  control of a parent or other person legally responsible for such child's
    16  care, or other lawful authority,  or  who  violates  the  provisions  of
    17  section  [221.05  or]  230.00  of  the penal law, or who appears to be a
    18  sexually exploited child as defined in paragraph  (a),  (c)  or  (d)  of
    19  subdivision  one  of  section  four  hundred forty-seven-a of the social
    20  services law, but only if the child consents to the filing of a petition
    21  under this article.
    22    § 57. The state finance law is amended by adding a new  section  99-ii
    23  to read as follows:
    24    §  99-ii. Marihuana microbusiness and marihuana license revolving loan
    25  fund. 1. There is hereby established in the joint custody of  the  comp-
    26  troller  and the commissioner of taxation and finance a fund to be known
    27  as the marihuana microbusiness  and  marihuana  license  revolving  loan
    28  fund.
    29    2.  The fund shall consist of all monies appropriated for its purpose,
    30  all monies transferred to such fund  pursuant  to  law  and  all  monies
    31  required  by  the provisions of this section or any other law to be paid
    32  into or credited to this fund, including all monies received by the fund
    33  or donated to it. Monies in the fund shall be kept  separate  and  shall
    34  not  be  commingled  with  any  other  monies  otherwise appropriated or
    35  received except as hereby provided.
    36    3. Monies of the fund, when  allocated,  shall  be  available  to  the
    37  bureau  of  marihuana  policy  for the purpose of providing low interest
    38  loans to individuals and businesses interested in establishing  a  mari-
    39  huana  microbusiness or otherwise obtaining a license available from the
    40  bureau of marihuana policy and participating in the marihuana industry.
    41    4. The bureau of marihuana policy shall establish  through  rules  and
    42  regulations  guidelines  necessary  to  administer  the fund. Guidelines
    43  shall include, but not be limited to: qualifications and conditions  for
    44  assistance; terms of loan or installment payments and finance charges on
    45  installment  payments  at  rates  of interest which, notwithstanding any
    46  other provision of law, are of the lowest rate possible to maintain  the
    47  fund;  prioritize  loans to promote racial, ethnic, and gender diversity
    48  in licenses for marihuana related activities; and any  other  terms  and
    49  conditions  the  bureau  may require as necessary to properly effectuate
    50  the provisions of this section.
    51    5. The bureau of marihuana policy shall make public by September first
    52  of each year a report including, but not limited to: the current  guide-
    53  lines  of  the  fund;  a complete financial statement including, but not
    54  limited to, monies allocated, collected, transferred or  otherwise  paid
    55  or credited to the fund; a projected schedule of disbursements, receipts

        A. 3506--C                         69

     1  and  needs of the fund for the next fiscal year; and the names and busi-
     2  ness addresses of each current loan recipient.
     3    6.  No monies shall be payable from this fund, except on the audit and
     4  warrant of the comptroller on vouchers certified and  submitted  by  the
     5  bureau of marihuana policy.
     6    §  58. Appropriation.  The sum of five million dollars ($5,000,000) is
     7  hereby appropriated to the New York State Liquor Authority  out  of  any
     8  moneys  in  the  state treasury in the general fund to the credit of the
     9  state purposes account, not otherwise appropriated, and made immediately
    10  available, for the purpose of carrying out the provisions of  this  act.
    11  Such moneys shall be payable on the audit and warrant of the comptroller
    12  on  vouchers certified or approved by the superintendent or the chairman
    13  of the New York State Liquor Authority in the manner prescribed by law.
    14    § 59. Severability. If any provision or term of this act  is  for  any
    15  reason  declared unconstitutional or invalid or ineffective by any court
    16  of competent jurisdiction, such decision shall not affect  the  validity
    17  of  the  effectiveness of the remaining portions of this act or any part
    18  thereof.
    19    § 60. This act shall take effect immediately; provided, however,  that
    20  the  amendments to section 17 of the alcoholic beverage control law made
    21  by section fifty-one of this act shall not  affect  the  expiration  and
    22  reversion of such section and shall expire and be deemed repealed there-
    23  with,  when  upon  such date the provisions of section fifty-two of this
    24  act shall take effect; provided further, however, that the amendments to
    25  section 18 of the alcoholic beverage control law made by section  fifty-
    26  three  of this act shall not affect the expiration and reversion of such
    27  section and shall expire and be deemed  repealed  therewith,  when  upon
    28  such  date  the  provisions of section fifty-four of this act shall take
    29  effect.
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