NY State Senate Bill S6040A

Archive: Last Bill Status - Passed Senate

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed/Vetoed by Governor

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Actions

view actions (16)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 14, 2016	referred to economic development returned to assembly repassed senate
Jun 09, 2016	amended on third reading 6040b
Jun 09, 2016	vote reconsidered - restored to third reading returned to senate recalled from assembly
Jan 25, 2016	referred to economic development delivered to assembly passed senate ordered to third reading cal.54 committee discharged and committed to rules
Jan 21, 2016	print number 6040a
Jan 21, 2016	amend (t) and recommit to consumer protection
Jan 06, 2016	referred to consumer protection
Aug 26, 2015	referred to rules

Votes

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

S6040 - Details

Law Section:: General Business Law
Laws Affected:: Add §399-hh, Gen Bus L; amd §§480, 1605 & 1607, Tax L; amd §§105, 106 & 118, ABC L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5619
2019-2020: S3104

S6040 - Summary

Prohibits the sale and distribution of synthetic cannabinoids; establishes a statewide synthetic cannabinoid surrender program.

S6040 - Sponsor Memo

BILL NUMBER:S6040

TITLE OF BILL:  An act to amend the general business law, the tax law
and the alcoholic beverage control law, in relation to prohibiting the
sale of synthetic cannabinoids

PURPOSE OR GENERAL IDEA OF BILL:

The bill prohibits the sale of synthetic cannabinoids by any retailer
and provides punishment to those retailers who violate this
prohibition. The bill punishes retailers with civil fines for selling
synthetic cannabinoids and for the most egregious violators
jeopardizes their ability to sell cigarettes, alcohol, and lottery
tickets.

SUMMARY OF SPECIFIC PROVISIONS:

§ 1 - Amends the general business law to prohibit the sale of
synthetic cannabinoids. Additionally this section provides a $2,000
fine for the first violation, a $5,000 fine for the second violation,
and a third violation will result in the retailer's inability to sell
cigarettes, alcohol, or lottery tickets.

§ 2 - Amends the tax law to prohibit the issuance of a license to sell
cigarettes to retailers who have violated the synthetic cannabinoids
ban three or more times within a five year period.

§ 3 - Amends the tax law to suspend a license to sell cigarettes for
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 4 - Amends the tax law to prohibit the issuance of a license to sell
lottery tickets to retailers who have violated the synthetic
cannabinoids ban three or more times within a five year period.

§ 5 - Amends the tax law to suspend a license to sell lottery tickets
to retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 6 - Amends the alcoholic beverage control law to prohibit the
issuance of a license to sell alcohol for off-premise consumption to
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 7 - Amends the alcoholic beverage control law to prohibit the
issuance of a license to sell alcohol for on-premise consumption to
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 8- Amends the alcoholic beverage control law to empower the State
Liquor Authority to revoke a license to sell alcohol for any retailer
who has violated the synthetic cannabinoids ban three or more times
within a five year period.

§ 9 - Effective Date

JUSTIFICATION:


Over the last year, the dangers caused by synthetic cannabinoids (also
known as K2 or spice) and other synthetic drugs have come to the
forefront as localities deal with an influx of synthetic drug related
hospitalizations and related crime. The NYPD reported that over 1,900
people were admitted to hospital emergency rooms in NYC between April
1 and June 30, 2015. These drugs are being sold at local stores,
providing easy access to potential consumers.

Under federal law, the sale of synthetic marijuana is prohibited if
sold for human consumption. However, sellers of synthetic cannabinoids
have exploited a loophole in federal law by labeling packages of
synthetic cannabinoids as not intended for human consumption, instead
being sold as a type of incense. Moreover, federal law enforcement
lacks the resources to prosecute these low level drug offenses,
requiring a legislative solution under state law.

In 2012, Governor Cuomo announced an executive order in which the
sanitary code was amended to prohibit the sale, distribution or
possession of synthetic cannabinoids. Therefore, in order to curtail
the sale of synthetic cannabinoids this bill gives local authorities
the ability to target retailers who sell synthetic cannabinoids and
punish them appropriately.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

1st of January next succeeding the date on which it shall become a
law.

S6040 - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6040

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             August 26, 2015
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the general business law, the tax law and the  alcoholic
  beverage control law, in relation to prohibiting the sale of synthetic
  cannabinoids

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
399-hh to read as follows:
  S 399-HH. SALE OR DISTRIBUTION OF SYNTHETIC  CANNABINOID;  PROHIBITED.
1.  FOR  THE PURPOSES OF THIS SECTION, "SYNTHETIC CANNABINOID" MEANS ANY
CHEMICAL COMPOUND THAT IS  A  CANNABINOID  RECEPTOR  AGONIST  AND  SHALL
INCLUDE, BUT NOT BE LIMITED TO, ANY MATERIAL, COMPOUND, MIXTURE OR PREP-
ARATION  THAT  IS  NOT  DESIGNATED AS A CONTROLLED SUBSTANCE PURSUANT TO
SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
  2. NO PERSON, FIRM,  CORPORATION,  PARTNERSHIP,  ASSOCIATION,  LIMITED
LIABILITY COMPANY OR OTHER ENTITY SHALL SELL, OFFER FOR SALE, DISTRIBUTE
OR GIVE AWAY, FOR RETAIL, WHOLESALE OR PROMOTIONAL PURPOSES ANY SYNTHET-
IC CANNABINIOD.
  3.  ANY  PERSON,  FIRM, CORPORATION, PARTNERSHIP, ASSOCIATION, LIMITED
LIABILITY COMPANY OR OTHER ENTITY THAT IS  FOUND  BY  A  LOCAL  CRIMINAL
COURT,  AS DEFINED IN SUBDIVISION THREE OF SECTION 10.10 OF THE CRIMINAL
PROCEDURE LAW, TO HAVE VIOLATED THE PROVISIONS  OF  SUBDIVISION  TWO  OF
THIS  SECTION  SHALL  BE  SUBJECT  TO  A  CIVIL  PENALTY OF TWO THOUSAND
DOLLARS; PROVIDED, HOWEVER, THAT UPON A FINDING OF A  SECOND  OR  SUBSE-
QUENT  VIOLATION  WITHIN ANY PERIOD OF FIVE YEARS, THE VIOLATOR SHALL BE
SUBJECT TO A CIVIL PENALTY  OF  FIVE  THOUSAND  DOLLARS;  AND  PROVIDED,
FURTHER,  THAT  UPON A FINDING OF A THIRD OR SUBSEQUENT VIOLATION WITHIN
ANY PERIOD OF FIVE YEARS, THE COURT SHALL PROVIDE NOTICE THEREOF TO  THE
COMMISSIONER  OF  TAXATION  AND FINANCE, THE DIVISION OF THE LOTTERY AND
THE STATE LIQUOR AUTHORITY, AND THE VIOLATOR SHALL  BE  PROHIBITED  FROM

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11842-01-5

S. 6040                             2

SELLING  CIGARETTES AND TOBACCO PRODUCTS, LOTTERY TICKETS, AND ALCOHOLIC
BEVERAGES FOR A PERIOD OF FIVE YEARS.
  S 2. Paragraphs (e) and (f) of subdivision 2 of section 480 of the tax
law,  as  amended  by chapter 744 of the laws of 1990, are amended and a
new paragraph (g) is added to read as follows:
  (e) Any controlling person of such applicant has committed any of  the
acts specified in subdivision three of this section within the preceding
five years, [or]
  (f)  Such  applicant or any controlling person has been finally deter-
mined to have violated any of the provisions of this article or  article
twenty-A  of this chapter, or any rule or regulation adopted pursuant to
this article or article twenty-A of this chapter[.], OR
  (G) SUCH APPLICANT OR ANY CONTROLLING PERSON HAS  BEEN  DETERMINED  TO
HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF
THE  GENERAL  BUSINESS  LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE
YEARS, IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A  PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 3. Subparagraphs (iii) and (iv) of paragraph (b) of subdivision 3 of
section 480 of the tax law, subparagraph (iii) as amended by chapter 860
of  the  laws  of 1987 and subparagraph (iv) as amended by chapter 61 of
the laws of 1989, are amended and a new subparagraph  (v)  is  added  to
read as follows:
  (iii) Has impersonated any person represented to be a wholesale dealer
under this article but not in fact licensed under this section, [or]
  (iv) Has knowingly aided and abetted the sale of cigarettes or tobacco
products by a person which such licensee or controlling person knows (A)
has  not  been  licensed by the commissioner of taxation and finance and
(B) is a wholesale dealer pursuant to the terms of subdivision eight  of
section four hundred seventy of this chapter[.], OR
  (V)  HAS  BEEN  DETERMINED TO HAVE VIOLATED SUBDIVISION TWO OF SECTION
THREE HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR  MORE
TIMES DURING A PERIOD OF FIVE YEARS, IN SUCH CASE THE VIOLATOR'S LICENSE
SHALL BE CANCELLED OR SUSPENDED FOR A PERIOD OF FIVE YEARS.
  S 4. Subdivision a of section 1605 of the tax law, as amended by chap-
ter 217 of the laws of 2011, is amended to read as follows:
  a.  The  division  may  license as agents to sell lottery tickets such
persons as in its opinion will best  serve  public  convenience,  except
that  no  license  shall  be  issued to any person to engage in business
exclusively as a lottery sales agent; AND  PROVIDED,  FURTHER,  THAT  NO
LICENSE  SHALL  BE  ISSUED TO ANY PERSON WHO HAS BEEN DETERMINED TO HAVE
VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF  THE
GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE YEARS,
IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD OF FIVE
YEARS  AFTER  THE  LAST  SUCH  VIOLATION.  The division may license such
persons as in its opinion are suitable to participate in  video  lottery
gaming pursuant to section sixteen hundred seventeen-a of this article.
  S  5.  Section 1607 of the tax law is amended by adding a new subdivi-
sion i to read as follows:
  I. THREE OR MORE  VIOLATIONS  OF  SUBDIVISION  TWO  OF  SECTION  THREE
HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, WITHIN ANY PERIOD OF
FIVE  YEARS,  IN  WHICH  CASE, THE DIVISION SHALL SUSPEND THE VIOLATOR'S
LICENSE FOR A PERIOD OF FIVE YEARS.
  S 6. Section 105 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4 to read as follows:
  4.  NO  PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR OFF-PREMISES CONSUMPTION, WHO  HAS  BEEN  DETER-

S. 6040                             3

MINED  TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-
NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD
OF FIVE YEARS, IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A
PERIOD OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S  7.  Section 106 of the alcoholic beverage control law is amended by
adding a new subdivision 4-b to read as follows:
  4-B. NO PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR ON PREMISES CONSUMPTION, WHO HAS BEEN DETERMINED
TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH
OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE
YEARS, IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A  PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S  8.  Section 118 of the alcoholic beverage control law is amended by
adding a new subdivision 1-a to read as follows:
  1-A. A LICENSE OR PERMIT ISSUED PURSUANT  TO  THIS  CHAPTER  SHALL  BE
SUSPENDED  FOR  A  PERIOD OF FIVE YEARS WHEN THE HOLDER THEREOF HAS BEEN
DETERMINED TO HAVE VIOLATED SUBDIVISION TWO  OF  SECTION  THREE  HUNDRED
NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A
PERIOD OF FIVE YEARS.
  S  9. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.

Co-Sponsors

S6040A - Details

Law Section:: General Business Law
Laws Affected:: Add §399-hh, Gen Bus L; amd §§480, 1605 & 1607, Tax L; amd §§105, 106 & 118, ABC L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5619
2019-2020: S3104

S6040A - Summary

Prohibits the sale and distribution of synthetic cannabinoids; establishes a statewide synthetic cannabinoid surrender program.

S6040A - Sponsor Memo

 BILL NUMBER:  S6040A

 TITLE OF BILL :  An act to establish a statewide synthetic
cannabinoid surrender program within the department of health; and to
amend the general business law, the tax law and the alcoholic beverage
control law, in relation to prohibiting the sale of synthetic
cannabinoids

 PURPOSE OR GENERAL IDEA OF BILL :

The bill prohibits the sale of synthetic cannabinoids by any retailer
and provides punishment to those retailers who violate this
prohibition. The bill punishes retailers with civil fines for selling
synthetic cannabinoids and for the most egregious violators
jeopardizes their ability to sell cigarettes, alcohol, and lottery
tickets.

 SUMMARY OF SPECIFIC PROVISIONS :

§ 1 - Creates a cannabinoid surrender program.

§ 2 - Amends the general business law to prohibit the sale of
synthetic cannabinoids. Additionally this section provides a $2,000
fine for the first violation, a $5,000 fine for the second violation,
and a third violation will result in the retailer's inability to sell
cigarettes, alcohol, or lottery tickets.

§ 3 - Amends the tax law to prohibit the issuance of a license to sell
cigarettes to retailers who have violated the synthetic cannabinoids
ban three or more times within a five year period.

§ 4 - Amends the tax law to suspend a license to sell cigarettes for
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 5 - Amends the tax law to prohibit the issuance of a license to sell
lottery tickets to retailers who have violated the synthetic
cannabinoids ban three or more times within a five year period.


§ 6 - Amends the tax law to suspend a license to sell lottery tickets
to retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 7 - Amends the alcoholic beverage control law to prohibit the
issuance of a license to sell alcohol for off-premise consumption to
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 8 - Amends the alcoholic beverage control law to prohibit the
issuance of a license to sell alcohol for on-premise consumption to
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 9 - Amends the alcoholic beverage control law to empower the State
Liquor Authority to revoke a license to sell alcohol for any retailer
who has violated the synthetic cannabinoids ban three or more times
within a five year period.

§ 10 - Effective Date

 JUSTIFICATION :

Over the last year, the dangers caused by synthetic cannabinoids (also
known as K2 or spice) and other synthetic drugs have come to the
forefront as localities deal with an influx of synthetic drug related
hospitalizations and related crime. The NYPD reported that over 1,900
people were admitted to hospital emergency rooms in NYC between April
1 and June 30, 2015. These drugs are being sold at local stores,
providing easy access to potential consumers.  Under federal law, the
sale of synthetic marijuana is prohibited if sold for human
consumption. However, sellers of synthetic cannabinoids have exploited
a loophole in federal law by labeling packages of synthetic
cannabinoids as not intended for human consumption, instead being sold
as a type of incense. Moreover, federal law enforcement lacks the
resources to prosecute these low level drug offenses, requiring a
legislative solution under state law.  In 2012, Governor Cuomo
announced an executive order in which the sanitary code was amended to
prohibit the sale, distribution or possession of synthetic
cannabinoids. Therefore, in order to curtail the sale of synthetic
cannabinoids this bill gives local authorities the ability to target
retailers who sell synthetic cannabinoids and punish them
appropriately.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect on the 180th day after it shall have become
law.

S6040A - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6040--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             August 26, 2015
                               ___________

Introduced  by  Sens.  KLEIN, VALESKY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Rules  --  recom-
  mitted  to  the  Committee  on  Consumer Protection in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT to establish a statewide synthetic cannabinoid surrender program
  within the department of health; and to  amend  the  general  business
  law,  the  tax law and the alcoholic beverage control law, in relation
  to prohibiting the sale of synthetic cannabinoids

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    There  is  hereby established, within the department of
health,  a  statewide  synthetic  cannabinoid  surrender  program.  Such
program  shall, for a period of 90 days after the effective date of this
section, in  compliance  with  federal  law  operate  as  the  statewide
synthetic  cannabinoid  surrender  program  whereby  any  individual, at
multiple geographic locations  throughout  the  state,  may  anonymously
surrender  any product containing a synthetic cannabinoid, as defined in
section 399-hh of the general business law. Provided  further,  that  no
surrender  of  a synthetic cannabinoid pursuant to this section shall be
deemed to be a sale for any purpose of law, rule or regulation.
  S 2.  The general business law is amended  by  adding  a  new  section
399-hh to read as follows:
  S  399-HH.  SALE OR DISTRIBUTION OF SYNTHETIC CANNABINOID; PROHIBITED.
1. FOR THE PURPOSES OF THIS SECTION, "SYNTHETIC CANNABINOID"  MEANS  ANY
CHEMICAL  COMPOUND  THAT  IS  A  CANNABINOID  RECEPTOR AGONIST AND SHALL
INCLUDE, BUT NOT BE LIMITED TO, ANY MATERIAL, COMPOUND, MIXTURE OR PREP-
ARATION THAT IS NOT DESIGNATED AS A  CONTROLLED  SUBSTANCE  PURSUANT  TO
SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
  2.  NO  PERSON,  FIRM,  CORPORATION, PARTNERSHIP, ASSOCIATION, LIMITED
LIABILITY COMPANY OR OTHER ENTITY SHALL SELL, OFFER FOR SALE, DISTRIBUTE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11842-02-6

S. 6040--A                          2

OR GIVE AWAY, FOR RETAIL, WHOLESALE OR PROMOTIONAL PURPOSES ANY SYNTHET-
IC CANNABINOID.
  3.  ANY  PERSON,  FIRM, CORPORATION, PARTNERSHIP, ASSOCIATION, LIMITED
LIABILITY COMPANY OR OTHER ENTITY THAT IS  FOUND  BY  A  LOCAL  CRIMINAL
COURT,  AS DEFINED IN SUBDIVISION THREE OF SECTION 10.10 OF THE CRIMINAL
PROCEDURE LAW, TO HAVE VIOLATED THE PROVISIONS  OF  SUBDIVISION  TWO  OF
THIS  SECTION  SHALL  BE  SUBJECT  TO  A  CIVIL  PENALTY OF TWO THOUSAND
DOLLARS; PROVIDED, HOWEVER, THAT UPON A FINDING OF A  SECOND  OR  SUBSE-
QUENT  VIOLATION  WITHIN ANY PERIOD OF FIVE YEARS, THE VIOLATOR SHALL BE
SUBJECT TO A CIVIL PENALTY  OF  FIVE  THOUSAND  DOLLARS;  AND  PROVIDED,
FURTHER,  THAT  UPON A FINDING OF A THIRD OR SUBSEQUENT VIOLATION WITHIN
ANY PERIOD OF FIVE YEARS, THE COURT SHALL PROVIDE NOTICE THEREOF TO  THE
COMMISSIONER  OF  TAXATION  AND FINANCE, THE DIVISION OF THE LOTTERY AND
THE STATE LIQUOR AUTHORITY, AND THE VIOLATOR SHALL  BE  PROHIBITED  FROM
SELLING  CIGARETTES AND TOBACCO PRODUCTS, LOTTERY TICKETS, AND ALCOHOLIC
BEVERAGES FOR A PERIOD OF FIVE YEARS.
  S 3. Paragraphs (e) and (f) of subdivision 2 of section 480 of the tax
law, as amended by chapter 744 of the laws of 1990, are  amended  and  a
new paragraph (g) is added to read as follows:
  (e)  Any controlling person of such applicant has committed any of the
acts specified in subdivision three of this section within the preceding
five years, [or]
  (f) Such applicant or any controlling person has been  finally  deter-
mined  to have violated any of the provisions of this article or article
twenty-A of this chapter, or any rule or regulation adopted pursuant  to
this article or article twenty-A of this chapter[.], OR
  (G)  SUCH  APPLICANT  OR ANY CONTROLLING PERSON HAS BEEN DETERMINED TO
HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF
THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A  PERIOD  OF  FIVE
YEARS;  IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 4. Subparagraphs (iii) and (iv) of paragraph (b) of subdivision 3 of
section 480 of the tax law, subparagraph (iii) as added by  chapter  860
of  the  laws  of 1987 and subparagraph (iv) as amended by chapter 61 of
the laws of 1989, are amended and a new subparagraph  (v)  is  added  to
read as follows:
  (iii) Has impersonated any person represented to be a wholesale dealer
under this article but not in fact licensed under this section, [or]
  (iv) Has knowingly aided and abetted the sale of cigarettes or tobacco
products by a person which such licensee or controlling person knows (A)
has  not  been  licensed by the commissioner of taxation and finance and
(B) is a wholesale dealer pursuant to the terms of subdivision eight  of
section four hundred seventy of this chapter[.], OR
  (V)  HAS  BEEN  DETERMINED TO HAVE VIOLATED SUBDIVISION TWO OF SECTION
THREE HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR  MORE
TIMES DURING A PERIOD OF FIVE YEARS; IN SUCH CASE THE VIOLATOR'S LICENSE
SHALL BE CANCELLED OR SUSPENDED FOR A PERIOD OF FIVE YEARS.
  S 5. Subdivision a of section 1605 of the tax law, as amended by chap-
ter 217 of the laws of 2011, is amended to read as follows:
  a.  The  division  may  license as agents to sell lottery tickets such
persons as in its opinion will best  serve  public  convenience,  except
that  no  license  shall  be  issued to any person to engage in business
exclusively as a lottery sales agent; AND  PROVIDED,  FURTHER,  THAT  NO
LICENSE  SHALL  BE  ISSUED TO ANY PERSON WHO HAS BEEN DETERMINED TO HAVE
VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF  THE
GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE YEARS;

S. 6040--A                          3

IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD OF FIVE
YEARS  AFTER  THE  LAST  SUCH  VIOLATION.  The division may license such
persons as in its opinion are suitable to participate in  video  lottery
gaming pursuant to section sixteen hundred seventeen-a of this article.
  S  6.  Section 1607 of the tax law is amended by adding a new subdivi-
sion i to read as follows:
  I. THREE OR MORE  VIOLATIONS  OF  SUBDIVISION  TWO  OF  SECTION  THREE
HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, WITHIN ANY PERIOD OF
FIVE  YEARS,  IN  WHICH  CASE, THE DIVISION SHALL SUSPEND THE VIOLATOR'S
LICENSE FOR A PERIOD OF FIVE YEARS.
  S 7. Section 105 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4 to read as follows:
  4.  NO  PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR OFF-PREMISES CONSUMPTION, WHO  HAS  BEEN  DETER-
MINED  TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-
NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD
OF FIVE YEARS; IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A
PERIOD OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 8. Section 106 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4-b to read as follows:
  4-B. NO PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR ON-PREMISES CONSUMPTION, WHO HAS BEEN DETERMINED
TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH
OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE
YEARS;  IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 9. Section 118 of the alcoholic beverage control law is  amended  by
adding a new subdivision 1-a to read as follows:
  1-A.  A  LICENSE  OR  PERMIT  ISSUED PURSUANT TO THIS CHAPTER SHALL BE
SUSPENDED FOR A PERIOD OF FIVE YEARS WHEN THE HOLDER  THEREOF  HAS  BEEN
DETERMINED  TO  HAVE  VIOLATED  SUBDIVISION TWO OF SECTION THREE HUNDRED
NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A
PERIOD OF FIVE YEARS.
  S 10. This act shall take effect on  the  one  hundred  eightieth  day
after  it  shall  have  become a law; provided, however, that, effective
immediately, any  actions  necessary  to  implement  the  provisions  of
section  one  of  this  act  on  its  effective  date are authorized and
directed to be completed on or before such date.

Co-Sponsors

S6040B (ACTIVE) - Details

Law Section:: General Business Law
Laws Affected:: Add §399-hh, Gen Bus L; amd §§480, 1605 & 1607, Tax L; amd §§105, 106 & 118, ABC L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S5619
2019-2020: S3104

S6040B (ACTIVE) - Summary

Prohibits the sale and distribution of synthetic cannabinoids; establishes a statewide synthetic cannabinoid surrender program.

S6040B (ACTIVE) - Sponsor Memo

 BILL NUMBER:  S6040B

 TITLE OF BILL :

An act to establish a statewide synthetic cannabinoid surrender
program within the department of health; and to amend the general
business law, the tax law and the alcoholic beverage control law, in
relation to prohibiting the sale of synthetic cannabinoids

 PURPOSE OR GENERAL IDEA OF BILL :

The bill prohibits the sale of synthetic cannabinoids by any retailer
and provides punishment to those retailers who violate this
prohibition. The bill punishes retailers with civil fines for selling
synthetic cannabinoids and for the most egregious violators
jeopardizes their ability to sell cigarettes, alcohol, and lottery
tickets.

 SUMMARY OF SPECIFIC PROVISIONS :

§ 1 - Creates a cannabinoid surrender program.

§ 2 - Amends the general business law to prohibit the sale of
synthetic cannabinoids. Additionally this section provides a $2,000
fine for the first violation, a $5,000 fine for the second violation,
and a third violation will result in the retailer's inability to sell

cigarettes, alcohol, or lottery tickets.

§ 3 - Amends the tax law to prohibit the issuance of a license to sell
cigarettes to retailers who have violated the synthetic cannabinoids
ban three or more times within a five year period.

§ 4 - Amends the tax law to suspend a license to sell cigarettes for
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 5 - Amends the tax law to prohibit the issuance of a license to sell
lottery tickets to retailers who have violated the synthetic
cannabinoids ban three or more times within a five year period.

§ 6 - Amends the tax law to suspend a license to sell lottery tickets
to retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 7 - Amends the alcoholic beverage control law to prohibit the
issuance of a license to sell alcohol for off-premise consumption to
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 8 - Amends the alcoholic beverage control law to prohibit the
issuance of a license to sell alcohol for on-premise consumption to
retailers who have violated the synthetic cannabinoids ban three or
more times within a five year period.

§ 9 - Amends the alcoholic beverage control law to empower the State
Liquor Authority to revoke a license to sell alcohol for any retailer
who has violated the synthetic cannabinoids ban three or more times
within a five year period.

§ 10 - allows municipalities to enact their own local laws related to
license revocations for businesses that manufacture, distribute, or
sell synthetic cannabinoids.

§ 11- Act will take effect one hundred eighty days after becoming law.

 JUSTIFICATION :
Over the last year, the dangers caused by synthetic cannabinoids (also
known as K2 or spice) and other synthetic drugs have come to the
fore-front as localities deal with an influx of synthetic drug related
hospitalizations and related crime. The NYPD reported that over 1,900
people were admitted to hospital emergency rooms in NYC between April
1 and June 30, 2015. These drugs are being sold at local stores,
providing easy access to potential consumers.Under federal law, the
sale of synthetic marijuana is prohibited if sold for human
consumption. However, sellers of synthetic cannabinoids have exploited
a loophole in federal law by labeling packages of synthetic
cannabinoids as not intended for human consumption, instead being sold
as a type of incense.

Moreover, federal law enforcement lacks the resources to prosecute
these low level drug offenses, requiring a legislative solution under
state law. In 2012, Governor Cuomo announced an executive order in
which the sanitary code was amended to prohibit the sale, distribution
or possession of synthetic cannabinoids. Therefore, in order to
curtail the sale of synthetic cannabinoids this bill gives local
authorities the ability to target retailers who sell synthetic
cannabinoids and punish them appropriately.

 PRIOR LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None to the State.

 EFFECTIVE DATE :
This act shall take effect on the 180th day after it shall have become
law.

S6040B (ACTIVE) - Bill Text download pdf

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 6040--B
    Cal. No. 54

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             August 26, 2015
                               ___________

Introduced  by  Sens.  KLEIN,  MURPHY, SERINO, VALESKY -- read twice and
  ordered printed, and when printed to be committed to the Committee  on
  Rules  --  recommitted  to  the  Committee  on  Consumer Protection in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- committee discharged and said bill committed to  the  Committee
  on Rules -- reported favorably from said committee, ordered to a third
  reading,  passed  by  Senate  and delivered to the Assembly, recalled,
  vote reconsidered, restored to  third  reading,  amended  and  ordered
  reprinted, retaining its place in the order of third reading

AN  ACT to establish a statewide synthetic cannabinoid surrender program
  within the department of health; and to  amend  the  general  business
  law,  the  tax law and the alcoholic beverage control law, in relation
  to prohibiting the sale of synthetic cannabinoids

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    There  is  hereby established, within the department of
health,  a  statewide  synthetic  cannabinoid  surrender  program.  Such
program  shall, for a period of 90 days after the effective date of this
section, in  compliance  with  federal  law  operate  as  the  statewide
synthetic  cannabinoid  surrender  program  whereby  any  individual, at
multiple geographic locations  throughout  the  state,  may  anonymously
surrender to the department of health any product containing a synthetic
cannabinoid,  as  defined in section 399-hh of the general business law.
Provided further, that no surrender of a synthetic cannabinoid  pursuant
to  this  section  shall  be deemed to be a sale for any purpose of law,
rule or regulation.
  S 2.  The general business law is amended  by  adding  a  new  section
399-hh to read as follows:
  S  399-HH.  SALE OR DISTRIBUTION OF SYNTHETIC CANNABINOID; PROHIBITED.
1. FOR THE PURPOSES OF THIS SECTION, "SYNTHETIC CANNABINOID"  MEANS  ANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD11842-06-6

S. 6040--B                          2

CHEMICAL  COMPOUND  THAT  IS  A  CANNABINOID  RECEPTOR AGONIST AND SHALL
INCLUDE, BUT NOT BE LIMITED TO, ANY MATERIAL, COMPOUND, MIXTURE OR PREP-
ARATION THAT IS NOT DESIGNATED AS A  CONTROLLED  SUBSTANCE  PURSUANT  TO
SECTION THIRTY-THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
  2.  NO  PERSON,  FIRM,  CORPORATION, PARTNERSHIP, ASSOCIATION, LIMITED
LIABILITY COMPANY OR OTHER ENTITY SHALL SELL, OFFER FOR SALE, DISTRIBUTE
OR GIVE AWAY, FOR RETAIL, WHOLESALE OR PROMOTIONAL PURPOSES ANY SYNTHET-
IC CANNABINOID.
  3. ANY PERSON, FIRM, CORPORATION,  PARTNERSHIP,  ASSOCIATION,  LIMITED
LIABILITY  COMPANY  OR  OTHER  ENTITY  THAT IS FOUND BY A LOCAL CRIMINAL
COURT, AS DEFINED IN SUBDIVISION THREE OF SECTION 10.10 OF THE  CRIMINAL
PROCEDURE  LAW,  TO  HAVE  VIOLATED THE PROVISIONS OF SUBDIVISION TWO OF
THIS SECTION SHALL BE  SUBJECT  TO  A  CIVIL  PENALTY  OF  TWO  THOUSAND
DOLLARS;  PROVIDED,  HOWEVER,  THAT UPON A FINDING OF A SECOND OR SUBSE-
QUENT VIOLATION WITHIN ANY PERIOD OF FIVE YEARS, THE VIOLATOR  SHALL  BE
SUBJECT  TO  A  CIVIL  PENALTY  OF  FIVE THOUSAND DOLLARS; AND PROVIDED,
FURTHER, THAT UPON A FINDING OF A THIRD OR SUBSEQUENT  VIOLATION  WITHIN
ANY  PERIOD OF FIVE YEARS, THE COURT SHALL PROVIDE NOTICE THEREOF TO THE
COMMISSIONER OF TAXATION AND FINANCE, THE DIVISION OF  THE  LOTTERY  AND
THE  STATE  LIQUOR  AUTHORITY, AND THE VIOLATOR SHALL BE PROHIBITED FROM
SELLING CIGARETTES AND TOBACCO PRODUCTS, LOTTERY TICKETS, AND  ALCOHOLIC
BEVERAGES FOR A PERIOD OF FIVE YEARS.
  S 3. Paragraphs (e) and (f) of subdivision 2 of section 480 of the tax
law,  as  amended  by chapter 744 of the laws of 1990, are amended and a
new paragraph (g) is added to read as follows:
  (e) Any controlling person of such applicant has committed any of  the
acts specified in subdivision three of this section within the preceding
five years, [or]
  (f)  Such  applicant or any controlling person has been finally deter-
mined to have violated any of the provisions of this article or  article
twenty-A  of this chapter, or any rule or regulation adopted pursuant to
this article or article twenty-A of this chapter[.], OR
  (G) SUCH APPLICANT OR ANY CONTROLLING PERSON HAS  BEEN  DETERMINED  TO
HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF
THE  GENERAL  BUSINESS  LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE
YEARS; IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A  PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 4. Subparagraphs (iii) and (iv) of paragraph (b) of subdivision 3 of
section  480  of the tax law, subparagraph (iii) as added by chapter 860
of the laws of 1987 and subparagraph (iv) as amended by  chapter  61  of
the  laws  of  1989,  are amended and a new subparagraph (v) is added to
read as follows:
  (iii) Has impersonated any person represented to be a wholesale dealer
under this article but not in fact licensed under this section, [or]
  (iv) Has knowingly aided and abetted the sale of cigarettes or tobacco
products by a person which such licensee or controlling person knows (A)
has not been licensed by the commissioner of taxation  and  finance  and
(B)  is a wholesale dealer pursuant to the terms of subdivision eight of
section four hundred seventy of this chapter[.], OR
  (V) HAS BEEN DETERMINED TO HAVE VIOLATED SUBDIVISION  TWO  OF  SECTION
THREE  HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE
TIMES DURING A PERIOD OF FIVE YEARS; IN SUCH CASE THE VIOLATOR'S LICENSE
SHALL BE CANCELLED OR SUSPENDED FOR A PERIOD OF FIVE YEARS.
  S 5. Subdivision a of section 1605 of the tax law, as amended by chap-
ter 217 of the laws of 2011, is amended to read as follows:

S. 6040--B                          3

  a. The division may license as agents to  sell  lottery  tickets  such
persons  as  in  its  opinion will best serve public convenience, except
that no license shall be issued to any  person  to  engage  in  business
exclusively  as  a  lottery  sales agent; AND PROVIDED, FURTHER, THAT NO
LICENSE  SHALL  BE  ISSUED TO ANY PERSON WHO HAS BEEN DETERMINED TO HAVE
VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH OF  THE
GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE YEARS;
IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD OF FIVE
YEARS  AFTER  THE  LAST  SUCH  VIOLATION.  The division may license such
persons as in its opinion are suitable to participate in  video  lottery
gaming pursuant to section sixteen hundred seventeen-a of this article.
  S  6.  Section 1607 of the tax law is amended by adding a new subdivi-
sion i to read as follows:
  I. THREE OR MORE  VIOLATIONS  OF  SUBDIVISION  TWO  OF  SECTION  THREE
HUNDRED NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, WITHIN ANY PERIOD OF
FIVE  YEARS,  IN  WHICH  CASE, THE DIVISION SHALL SUSPEND THE VIOLATOR'S
LICENSE FOR A PERIOD OF FIVE YEARS.
  S 7. Section 105 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4 to read as follows:
  4.  NO  PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR OFF-PREMISES CONSUMPTION, WHO  HAS  BEEN  DETER-
MINED  TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-
NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD
OF FIVE YEARS; IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A
PERIOD OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 8. Section 106 of the alcoholic beverage control law is  amended  by
adding a new subdivision 4-b to read as follows:
  4-B. NO PERSON SHALL RECEIVE A LICENSE TO ENGAGE IN THE RETAIL SALE OF
ALCOHOLIC BEVERAGES FOR ON-PREMISES CONSUMPTION, WHO HAS BEEN DETERMINED
TO HAVE VIOLATED SUBDIVISION TWO OF SECTION THREE HUNDRED NINETY-NINE-HH
OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A PERIOD OF FIVE
YEARS;  IN SUCH CASE THE VIOLATOR SHALL BE DENIED A LICENSE FOR A PERIOD
OF FIVE YEARS AFTER THE LAST SUCH VIOLATION.
  S 9. Section 118 of the alcoholic beverage control law is  amended  by
adding a new subdivision 1-a to read as follows:
  1-A.  A  LICENSE  OR  PERMIT  ISSUED PURSUANT TO THIS CHAPTER SHALL BE
SUSPENDED FOR A PERIOD OF FIVE YEARS WHEN THE HOLDER  THEREOF  HAS  BEEN
DETERMINED  TO  HAVE  VIOLATED  SUBDIVISION TWO OF SECTION THREE HUNDRED
NINETY-NINE-HH OF THE GENERAL BUSINESS LAW, THREE OR MORE TIMES DURING A
PERIOD OF FIVE YEARS.
  S 10. Construction with other laws.  Nothing  in  this  act  shall  be
construed to limit or restrict any municipality from enacting or enforc-
ing  a  local  law  or ordinance governing a license issued by a munici-
pality where such business was found to  have  unlawfully  manufactured,
distributed or sold a synthetic cannabinoid or synthetic phenthylamine.
  S  11.  This  act  shall  take effect on the one hundred eightieth day
after it shall have become a law;  provided,  however,  that,  effective
immediately,  any  actions  necessary  to  implement  the  provisions of
section one of this  act  on  its  effective  date  are  authorized  and
directed to be completed on or before such date.

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The New York State Senate

senate Bill S6040A

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Archive: Last Bill Status - Passed Senate

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Jun 14, 2016 - floor Vote

Floor Vote: Jun 14, 2016

Jan 25, 2016 - floor Vote

Floor Vote: Jan 25, 2016

Jan 25, 2016 - Rules committee Vote

Rules Committee Vote: Jan 25, 2016

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S6040 - Details

S6040 - Summary

S6040 - Sponsor Memo

S6040 - Bill Text download pdf

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S6040A - Details

S6040A - Summary

S6040A - Sponsor Memo

S6040A - Bill Text download pdf

Co-Sponsors

S6040B (ACTIVE) - Details

S6040B (ACTIVE) - Summary

S6040B (ACTIVE) - Sponsor Memo

S6040B (ACTIVE) - Bill Text download pdf

Comments

senate Bill S6040A

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Sponsored By

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Jun 14, 2016 - floor Vote

Floor Vote: Jun 14, 2016

Jan 25, 2016 - floor Vote

Floor Vote: Jan 25, 2016

Jan 25, 2016 - Rules committee Vote

Rules Committee Vote: Jan 25, 2016

Bill Amendments

Co-Sponsors

S6040 - Details

S6040 - Summary

S6040 - Sponsor Memo

S6040 - Bill Text download pdf

Co-Sponsors

S6040A - Details

S6040A - Summary

S6040A - Sponsor Memo

S6040A - Bill Text download pdf

Co-Sponsors

S6040B (ACTIVE) - Details

S6040B (ACTIVE) - Summary

S6040B (ACTIVE) - Sponsor Memo

S6040B (ACTIVE) - Bill Text download pdf

Comments