S T A T E   O F   N E W   Y O R K
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                                  5619--A
     Cal. No. 222
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              April 20, 2017
                                ___________
 
 Introduced  by Sens. KLEIN, ALCANTARA, AVELLA, VALESKY -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Consumer  Protection  --  recommitted  to  the  Committee  on Consumer
   Protection in accordance with Senate Rule 6, sec. 8 -- reported favor-
   ably from said committee, ordered to first and second report,  ordered
   to a 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.
   § 2. The general business law is amended by adding a new section  399-
 hh to read as follows:
   §  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD10502-02-8

 S. 5619--A                          2
 
 SECTION  THIRTY-THREE  HUNDRED  SIX  OF THE PUBLIC HEALTH LAW; PROVIDED,
 HOWEVER, THAT THE TERM "SYNTHETIC CANNABINOID"  SHALL  NOT  INCLUDE  ANY
 PRODUCT  APPROVED BY THE UNITED STATES FOOD AND DRUG ADMINISTRATION AS A
 DRUG OR MEDICAL DEVICE, OR APPROVED BY THE COMMISSIONER OF HEALTH PURSU-
 ANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE 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.
   § 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.
   § 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.] ARTICLE, 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.
   § 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. 5619--A                          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.
   §  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.
   § 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.
   § 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.
   § 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.
   § 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.
   §  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.