NY State Senate Bill S3040C

Archive: Last Bill Status - In Senate Committee Finance Committee

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

Your Voice

Please enter your contact information

First Name *

Last Name *

Email Address *

A valid email address is required.

Home address search or enter your address manually *

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Leave this field blank

Actions

view actions (8)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 07, 2018	print number 3040c
Nov 07, 2018	amend (t) and recommit to finance
Jan 03, 2018	referred to finance
Jun 16, 2017	print number 3040b
Jun 16, 2017	amend (t) and recommit to finance
Jun 09, 2017	print number 3040a
Jun 09, 2017	amend (t) and recommit to finance
Jan 19, 2017	referred to finance

Bill Amendments

Original

C (Active)

Original

C (Active)

Co-Sponsors

view additional co-sponsors

S3040 - Details

See Assembly Version of this Bill:: A3506
Current Committee:: Senate Finance
Law Section:: Public Health Law
Laws Affected:: Amd Various Laws, generally
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6005, A8341
2015-2016: S1747, A3089
2019-2020: S1527, A1617
2021-2022: S854, A1248

S3040 - Summary

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… (view more) 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; creates the New York state marihuana revenue fund, the New York state community grants reinvestment fund, and the marihuana microbusiness and marihuana license revolving loan fund; makes an appropriation therefor.

S3040 - Sponsor Memo

 BILL NUMBER:  S3040

 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 eighteen years of age or older; 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 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
changes; to repeal sections 221.10, 221.25, 221.30, 221.50 and 221.55
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; and
making an appropriation therefor

 SUMMARY OF SPECIFIC PROVISIONS :

Section one of the bill is the title.

Section two of the bill is comprised of legislative findings and
statements 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 excluding home cultivation of up to 6 marihuana plants by
individuals 18 years or older from the ban on growing cannabis.

Section six of the bill amends section 3397-b of the public health law
to make conforming changes in definition of marihuana.

Section seven 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 eight of the bill amends Section 220.0 of the Penal Law to
include a definition for concentrated cannabis as a controlled
substance.

Sections nine to eleven of the bill update cross references to amended
sections of the penal law.

Section twelve of the bill amends Section 220.5 of the Penal Law to
exclude marihuana paraphernalia from criminal use of drug
paraphernalia.

Section thirteen of the bill amends Section 221.05 of the Penal Law to
make unlawful possession of marihuana applicable to persons less than
eighteen years of age or who are burning marihuana.



Section fourteen of the bill amends Section 221.15 of the Penal Law to
redefine criminal possession of marihuana in the second degree as a
Class B misdemeanor.

Section fifteen of the bill amends Section 221.20 of the Penal Law to
redefine criminal possession of marihuana in the first degree as a
Class A misdemeanor.

Section sixteen of the bill repeals sections 221.10, 221.25 and 221.3
of the Penal Law, eliminating the previous definitions of Criminal
possession of marihuana in the first and second degrees.

Section seventeen of the bill adds a new section 221.25 of the Penal
Law allowing for home cultivation of up to six marihuana plants by
persons eighteen years of age or older.

Section eighteen of the bill amends section 221.35 of the Penal Law to
redefine Criminal sale of marihuana in the third degree to apply to
persons less than eighteen years of age.

Section nineteen of the bill amends section 221.40 of the Penal Law to
redefine the criminal sale of marihuana in the second degree.

Section twenty of the bill amends section 221.45 of the Penal law to
redefine criminal sale of marihuana in the first degree.

Section twenty-one of the bill repeals section 221.5 and 221.55 of the
Penal Law, eliminating the previous definitions of criminal sale of
marihuana in the first and second degrees.

Section twenty-two of the bill adds a new section 221.6 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-three 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.

Sections twenty-four of the bill amends section 2 of the Alcoholic
Beverage Control Law to include regulation of marihuana products in
the purpose of this chapter.

Section twenty-five and of the bill amends section 3 of the Alcoholic
Beverage Control Law to include definitions of Concentrated Cannabis,
Marihuana, and Marihuana consumers, processors, producer, products,
infused products, retailer and retailer for the purposes of
on-premises consumption, and unreasonably impracticable.

Section twenty-six of the bill amends subdivision 12 of section 17 of
the Alcohol Beverage Control Law to establish minimum criteria for
alcohol and marihuana abuse training awareness programs.

Section twenty-seven 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-eight of this 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-nine 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 thirty 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 thirty-one 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-two of the bill renumbers article 11 of the Alcoholic
Beverage Control Law as article 12 and sections 160, 161, 162, 163 and
164 as sections 200, 201, 202, 203 and 204.

Section thirty-three of the bill adds a new Article 11 to the
Alcoholic Beverage Control Law providing for the regulation of
marihuana production, distribution and sale by the State Liquor
Authority, establishing licensing and permitting rules, and providing
for penalties for violations. Such regulation shall be promulgated
within 240 days of the effective date.

Section thirty-four 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 comptroller known as the marihuana revenue fund.
Fifteen percent of proceeds to be directed to re-entry programs,
substance abuse programs, and job training programs in low income,
high unemployment communities, and authorizing localities to enact a
five percent tax on marihuana sales, with the remainder of proceeds
going to the general fund. Localities would also be authorized to
impose a sales tax of up to five percent on retail sales.

Section thirty-five of the bill amends section 160.5 of the criminal
procedure law to update references to clearing of records in criminal
actions terminated in favor of the accused.

Section thirty-six of the bill amends section 170.56 of the criminal
procedure law providing for suspension of court proceedings and
adjournment 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 amends section 440.46 of the criminal
procedure law to provide for an application for resentencing for
certain marihuana related offenses.

Section forty-one through forty-four of the bill of the bill update
cross references to amended sections of the penal law.

Section forty-five and forty-six of the bill amend section 850 of the
General Business Law to remove references to marihuana from
prohibitions on the sale of drug paraphernalia.


Section forty-seven of the bill update cross references in the state
finance law to amended sections in the alcoholic beverage control law.

Section forty-eight through fifty of the bill update cross references
to amended sections of the penal law.

Section fifty-one of the bill provides for an appropriation of five
million dollars to the State Liquor Authority for implementation of
this act.

Section fifty-two is a severability clause.

Section fifty-three of the bill is the effective date.

 JUSTIFICATION :

Present law fails to prevent the trade and consumption of marihuana
and has continued to foster a violent drug market that consumes
millions of dollars in resources every year.

New York State Ranks 2nd of all 50 states in terms of Marihuana
related arrests made per 100,000 people. In 2010, the NYPD made 50,300
marihuana related arrests. This number amounted to one out of every
seven total arrests made, and $75 million was spent arresting and
jailing mostly young people simply for possessing small amounts of
marihuana.

The enforcement of present law has disproportionately effected
African-American and Latino communities; often giving first time,
non-violent offenders, an extraneous criminal record. Government
health surveys find that young whites use marihuana at higher rates
than young blacks and Latinos. But the NYPD arrests blacks for
marihuana possession at seven times the rate of whites and Latinos at
nearly four times the rate of whites.

Aside from mitigating these issues, the regulation and taxation act
will also help accrue revenue for the state; portions of which will go
back (through government agencies and programs) to communities that
have been impacted by present law.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

Increase revenue for state and local governments. Fiscal implication
assumptions for similar legislation implemented in Colorado, Amendment
64, estimated an annual revenue increase of 5-22 million dollars and
an annual spending increase of .5-1.5 million dollars.  Given the
larger population of New York State this legislation should generate
revenue substantially larger than these estimates.

 EFFECTIVE DATE :
Immediately.

S3040 - Bill Text download pdf


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

                                  3040

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                            January 19, 2017
                               ___________

Introduced by Sens. KRUEGER, BAILEY, DILAN, HOYLMAN, MONTGOMERY, PARKER,
  PERALTA,  PERKINS,  RIVERA, SERRANO -- read twice and ordered printed,
  and when printed to be committed to the Committee on Finance

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 eighteen
  years of age or older; to  amend  the  vehicle  and  traffic  law,  in
  relation to making technical changes regarding the definition of mari-
  huana;  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  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 changes; to repeal  sections  221.10,
  221.25,  221.30,  221.50  and  221.55 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; and making an appropriation therefor

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

  Section  1. This act shall be known and may be cited as the "marihuana
regulation and taxation act".
  § 2. Legislative findings  and  intent.  The  legislature  finds  that
decades of arresting marihuana users has failed to prevent marihuana use
or prevent minors from accessing marihuana. Existing marihuana laws have
created a violent, illegal drug market that consumes millions of dollars
in  criminal  justice resources each year.  Existing marihuana laws have

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

                                                           LBD05327-03-7

S. 3040                             2

also disproportionately impacted African-American  and  Latino  communi-
ties.    Regulating, controlling, and taxing marihuana like alcohol will
save criminal justice resources, reduce  violent  crime,  reduce  racial
disparities, and generate revenue.
  Additionally,  industrial  hemp is produced in at least 30 nations and
used to create thousands of products  including  paper,  textiles,  food
oils, automotive parts, and personal care products. Hundreds of millions
of  dollars  of  industrial  hemp products are sold in the United States
each year.
  The intent of this act is to regulate, control, and tax marihuana in a
manner similar to alcohol, generate millions of dollars in new  revenue,
prevent  access  to  marihuana by those under the age of eighteen years,
reduce the illegal drug market and  reduce  violent  crime,  reduce  the
racially  disparate  impact of existing marihuana laws, allow industrial
hemp to be farmed in New York  state,  and  create  new  industries  and
increase employment.
  Nothing in this act is intended to limit the authority of any district
government  agency  or office or employers to enact and enforce policies
pertaining to marihuana in the workplace, to  allow  driving  under  the
influence  of  marihuana, to allow individuals to engage in conduct that
endangers others, to allow smoking marihuana in any location where smok-
ing tobacco is prohibited, or to require any individual to engage in any
conduct that violates federal law or to exempt anyone from any  require-
ment  of  federal law or pose any obstacle to the federal enforcement of
federal law.
  Nothing in this act is intended to limit any privileges or rights of a
medical marihuana patient or medical marihuana caregiver under  the  New
York Compassionate Care Act.
  § 3. Section 3302 of the public health law, as added by chapter 878 of
the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23,  24,
25,  26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998,
subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
and 40 as added by chapter 178 of the laws of  2010,  paragraph  (a)  of
subdivision  20, the opening paragraph of subdivision 22 and subdivision
29 as amended by chapter 163 of the laws  of  1973,  subdivision  31  as
amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
vision  41 as added by section 6 of part A of chapter 447 of the laws of
2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
chapter 60 of the laws of 2014, is amended to read as follows:
  §  3302.  Definitions  of terms of general use in this article. Except
where  different  meanings  are  expressly   specified   in   subsequent
provisions of this article, the following terms have the following mean-
ings:
  1.  "Addict" means a person who habitually uses a controlled substance
for a non-legitimate or unlawful use, and who by reason of such  use  is
dependent thereon.
  2.   "Administer"   means  the  direct  application  of  a  controlled
substance, whether by injection, inhalation,  ingestion,  or  any  other
means, to the body of a patient or research subject.
  3.  "Agent" means an authorized person who acts on behalf of or at the
direction of a manufacturer, distributor, or dispenser. No person may be
authorized to so act if under title  VIII  of  the  education  law  such
person  would  not  be  permitted to engage in such conduct. It does not
include a common or contract carrier, public warehouseman,  or  employee

S. 3040                             3

of  the  carrier  or  warehouseman  when  acting in the usual and lawful
course of the carrier's or warehouseman's business.
  4. ["Concentrated Cannabis" means
  (a)  the  separated  resin, whether crude or purified, obtained from a
plant of the genus Cannabis; or
  (b) a material, preparation,  mixture,  compound  or  other  substance
which  contains  more than two and one-half percent by weight of delta-9
tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
terpene numbering system.
  5.]  "Controlled  substance" means a substance or substances listed in
section thirty-three hundred six of this [chapter] TITLE.
  [6.] 5. "Commissioner" means commissioner of health of  the  state  of
New York.
  [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
attempted transfer from one person to another of a controlled substance,
whether or not there is an agency relationship.
  [8.] 7. "Department" means the department of health of  the  state  of
New York.
  [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
mate user or research subject by lawful means, including by means of the
internet, and includes the packaging, labeling, or compounding necessary
to prepare the substance for such delivery.
  [10.] 9. "Distribute" means to deliver a controlled substance, includ-
ing by means of the internet, other than by administering or dispensing.
  [11.]  10.  "Distributor"  means a person who distributes a controlled
substance.
  [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
of  a  controlled  substance by a person or in a manner not specifically
authorized by law.
  [13.] 12. "Drug" means
  (a) substances recognized as drugs in the official United States Phar-
macopoeia, official Homeopathic Pharmacopoeia of the United  States,  or
official National Formulary, or any supplement to any of them;
  (b)  substances  intended  for use in the diagnosis, cure, mitigation,
treatment, or prevention of disease in man or animals; and
  (c) substances (other than food) intended to affect the structure or a
function of the body of man or animal. It does not  include  devices  or
their components, parts, or accessories.
  [14.]  13. "Federal agency" means the Drug Enforcement Administration,
United States Department of Justice, or its successor agency.
  [15.] 14. "Federal controlled substances act" means the  Comprehensive
Drug  Abuse  Prevention  and Control Act of 1970, Public Law 91-513, and
any act or  acts  amendatory  or  supplemental  thereto  or  regulations
promulgated thereunder.
  [16.]  15. "Federal registration number" means such number assigned by
the Federal agency to any person authorized to manufacture,  distribute,
sell, dispense or administer controlled substances.
  [17.]  16.  "Habitual  user"  means any person who is, or by reason of
repeated use of any controlled substance for non-legitimate or  unlawful
use is in danger of becoming, dependent upon such substance.
  [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
hospital or similar facility approved and certified by the department as
authorized  to  obtain  controlled  substances  by  distribution  and to

S. 3040                             4

dispense and administer such substances pursuant to the order of a prac-
titioner.
  [19.]  18.  "License"  means  a  written  authorization  issued by the
department or the New York  state  department  of  education  permitting
persons  to  engage  in  a specified activity with respect to controlled
substances.
  [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
gation,   compounding,   cultivation,  conversion  or  processing  of  a
controlled substance, either directly or  indirectly  or  by  extraction
from substances of natural origin, or independently by means of chemical
synthesis, or by a combination of extraction and chemical synthesis, and
includes  any  packaging  or repackaging of the substance or labeling or
relabeling of its container, except that this term does not include  the
preparation,   compounding,   packaging  or  labeling  of  a  controlled
substance:
  (a) by a practitioner as an incident to his administering or  dispens-
ing  of  a  controlled substance in the course of his professional prac-
tice; or
  (b) by a practitioner, or by his authorized  agent  under  his  super-
vision, for the purpose of, or as an incident to, research, teaching, or
chemical analysis and not for sale; or
  (c)  by  a pharmacist as an incident to his dispensing of a controlled
substance in the course of his professional practice.
  [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
whether  growing or not; the seeds thereof; the resin extracted from any
part of the plant; and every compound,  manufacture,  salt,  derivative,
mixture,  or  preparation  of the plant, its seeds or resin. It does not
include the mature stalks of the plant, fiber produced from the  stalks,
oil  or cake made from the seeds of the plant, any other compound, manu-
facture, salt, derivative, mixture, or preparation of the mature  stalks
(except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
sterilized seed of the plant which is incapable of germination.
  22.] 20. "Narcotic drug" means any of the following, whether  produced
directly  or  indirectly  by  extraction  from  substances  of vegetable
origin, or independently by means of chemical synthesis, or by a  combi-
nation of extraction and chemical synthesis:
  (a)  opium and opiate, and any salt, compound, derivative, or prepara-
tion of opium or opiate;
  (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
which  is  chemically equivalent or identical with any of the substances
referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but  not
including the isoquinoline alkaloids of opium;
  (c) opium poppy and poppy straw.
  [23.]  21. "Opiate" means any substance having an addiction-forming or
addiction-sustaining liability similar to morphine or being  capable  of
conversion  into a drug having addiction-forming or addiction-sustaining
liability. It  does  not  include,  unless  specifically  designated  as
controlled  under section [3306] THIRTY-THREE HUNDRED SIX of this [arti-
cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
its salts (dextromethorphan). It does include its racemic and  levorota-
tory forms.
  [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
somniferum L., except its seeds.
  [25.] 23. "Person" means individual, institution, corporation, govern-
ment or governmental subdivision  or  agency,  business  trust,  estate,
trust, partnership or association, or any other legal entity.

S. 3040                             5

  [26.]  24. "Pharmacist" means any person licensed by the state depart-
ment of education to practice pharmacy.
  [27.]  25.  "Pharmacy"  means  any place registered as such by the New
York state board of pharmacy and  registered  with  the  Federal  agency
pursuant to the federal controlled substances act.
  [28.]  26.  "Poppy  straw"  means  all parts, except the seeds, of the
opium poppy, after mowing.
  [29.] 27. "Practitioner" means:
  A physician, dentist, podiatrist,  veterinarian,  scientific  investi-
gator,  or  other  person  licensed, or otherwise permitted to dispense,
administer or conduct research with respect to a controlled substance in
the course of a licensed  professional  practice  or  research  licensed
pursuant  to  this article. Such person shall be deemed a "practitioner"
only as to such substances, or conduct relating to such  substances,  as
is permitted by his license, permit or otherwise permitted by law.
  [30.]   28.   "Prescribe"  means  a  direction  or  authorization,  by
prescription, permitting an ultimate user lawfully to obtain  controlled
substances   from   any  person  authorized  by  law  to  dispense  such
substances.
  [31.] 29.  "Prescription"  shall  mean  an  official  New  York  state
prescription,  an electronic prescription, an oral prescription[,] OR an
out-of-state prescription[, or any one].
  [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
er, or offer or agree to do the same.
  [33.] 31. "Ultimate user" means a  person  who  lawfully  obtains  and
possesses  a controlled substance for his own use or the use by a member
of his household or for an animal owned by him or  in  his  custody.  It
shall  also mean and include a person designated, by a practitioner on a
prescription, to obtain such substance on behalf of the patient for whom
such substance is intended.
  [34.] 32. "Internet"  means  collectively  computer  and  telecommuni-
cations facilities which comprise the worldwide network of networks that
employ  a set of industry standards and protocols, or any predecessor or
successor protocol to such protocol,  to  exchange  information  of  all
kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
networks, whether private or public, used  to  transmit  information  by
electronic means.
  [35.]  33.  "By  means  of  the  internet"  means  any sale, delivery,
distribution, or dispensing of a  controlled  substance  that  uses  the
internet,  is initiated by use of the internet or causes the internet to
be used.
  [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
in the United States that sells, delivers or  dispenses,  or  offers  to
sell,  deliver,  or  dispense,  a  controlled  substance by means of the
internet.
  [37.] 35. "Electronic prescription" means a prescription  issued  with
an  electronic  signature and transmitted by electronic means in accord-
ance with regulations of the commissioner and the commissioner of educa-
tion and consistent with federal requirements. A prescription  generated
on an electronic system that is printed out or transmitted via facsimile
is  not  considered  an  electronic  prescription  and  must be manually
signed.
  [38.] 36. "Electronic" means of or relating to technology having elec-
trical, digital, magnetic, wireless, optical, electromagnetic or similar
capabilities. "Electronic" shall not include facsimile.

S. 3040                             6

  [39.] 37.  "Electronic  record"  means  a  paperless  record  that  is
created,  generated,  transmitted,  communicated,  received or stored by
means of electronic equipment and includes the preservation,  retrieval,
use  and  disposition in accordance with regulations of the commissioner
and the commissioner of education and in compliance with federal law and
regulations.
  [40.] 38. "Electronic signature" means an electronic sound, symbol, or
process,  attached  to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the  record,
in  accordance with regulations of the commissioner and the commissioner
of education.
  [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
means  the prescription monitoring program registry established pursuant
to section thirty-three hundred forty-three-a of this article.
  [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
drug substance to create a drug with respect to an outsourcing  facility
under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
further defined in this section.
  [43.] 41. "Outsourcing facility" means a facility that:
  (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
section sixty-eight hundred two of the education law;
  (b)  is  currently  registered  as an outsourcing facility pursuant to
article one hundred thirty-seven of the education law; and
  (c) complies with all applicable requirements  of  federal  and  state
law, including the Federal Food, Drug and Cosmetic Act.
  Notwithstanding  any  other  provision of law to the contrary, when an
outsourcing facility distributes or dispenses any  drug  to  any  person
pursuant to a prescription, such outsourcing facility shall be deemed to
be  providing  pharmacy services and shall be subject to all laws, rules
and regulations governing pharmacies and pharmacy services.
  § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
laws of 2006, are amended to read as follows:
  (13) [Marihuana.
  (14)] Mescaline.
  [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
  [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
not, the seeds thereof, any extract from any part  of  such  plant,  and
every  compound, manufacture, salts, derivative, mixture, or preparation
of such plant, its seeds or extracts.
  [(17)] (16) N-ethyl-3-piperidyl benzilate.
  [(18)] (17) N-methyl-3-piperidyl benzilate.
  [(19)] (18) Psilocybin.
  [(20)] (19) Psilocyn.
  [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances
contained  in the plant, or in the resinous extractives of cannabis, sp.
and/or synthetic substances, derivatives, and their isomers with similar
chemical structure and pharmacological activity such as the following:

S. 3040                             7

  /\1 cis or trans tetrahydrocannabinol, and their optical isomers
  /\6 cis or trans tetrahydrocannabinol, and their optical isomers
  /\3,  4  cis  or  trans  tetrahydrocannabinol, and its optical isomers
(since nomenclature of these substances is not internationally standard-
ized, compounds of these structures, regardless of numerical designation
of atomic positions covered).
  [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
  [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
  [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
phencyclidine, TPCP, TCP.
  [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
  [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
MDE, MDEA.
  [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
N-hydroxy MDA.
  [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
names: TCPY.
  [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
3- (2-aminobutyl) indole; Alpha-ET or AET.
  [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
names: DOET.
  [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
DOB; 2C-B, Nexus.
  [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
optical isomers, salts and salts of isomers.
  § 5. Section 3382 of the public health law, as added by chapter 878 of
the laws of 1972, is amended to read as follows:
  §  3382. Growing of the plant known as Cannabis by unlicensed persons.
A person who, without being licensed so to do under this article,  grows
the  plant  of  the genus Cannabis or knowingly allows it to grow on his
land without  destroying  the  same,  shall  be  guilty  of  a  class  A
misdemeanor.  THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO A PERSON
EIGHTEEN  YEARS  OF  AGE OR OLDER WHO POSSESSES, GROWS, OR TRANSPORTS NO
MORE THAN SIX MARIHUANA  PLANTS,  WITH  THREE  OR  FEWER  BEING  MATURE,
FLOWERING  PLANTS,  PROVIDED  THAT  THE PLANTS ARE GROWN IN AN ENCLOSED,
LOCKED SPACE, NOT OPENLY OR PUBLICLY, AND  THAT  THE  MARIHUANA  IS  NOT
SOLD.
  §  6.  Subdivision  1  of  section 3397-b of the public health law, as
added by chapter 810 of the laws of 1980, is amended to read as follows:
  1. ["Marijuana"] "MARIHUANA" means [marijuana] MARIHUANA as defined in
[section thirty-three hundred two of this chapter]  SUBDIVISION  SIX  OF
SECTION   220.00   OF   THE   PENAL   LAW   and   shall   also   include
tetrahydrocannabinols or a chemical derivative of tetrahydrocannabinol.
  § 7. Section 114-a of the vehicle and traffic law, as added by chapter
163 of the laws of 1973, is amended to read as follows:
  § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
includes any substance listed in section thirty-three hundred six of the

S. 3040                             8

public  health law AND MARIHUANA AND CONCENTRATED CANNABIS AS DEFINED IN
SECTION 220.00 OF THE PENAL LAW.
  §  8.  Subdivisions  5,  6  and  9 of section 220.00 of the penal law,
subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
6 as amended by chapter 1051 of the laws of 1973 and  subdivision  9  as
amended by chapter 664 of the laws of 1985, are amended and a new subdi-
vision 21 is added to read as follows:
  5.  "Controlled  substance"  means any substance listed in schedule I,
II, III, IV or V of section  thirty-three  hundred  six  of  the  public
health  law other than marihuana, but including concentrated cannabis as
defined in [paragraph (a) of subdivision four  of  section  thirty-three
hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
  6.  "Marihuana" means ["marihuana" or "concentrated cannabis" as those
terms are defined in section thirty-three  hundred  two  of  the  public
health  law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROW-
ING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF  THE
PLANT;  AND  EVERY  COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR
PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT DOES NOT  INCLUDE  THE
MATURE  STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR CAKE
MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANUFACTURE, SALT,
DERIVATIVE, MIXTURE, OR PREPARATION OF THE  MATURE  STALKS  (EXCEPT  THE
RESIN  EXTRACTED THEREFROM), FIBER, OIL, OR CAKE, OR THE STERILIZED SEED
OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE  ALL
PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO
MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC).
  9.  "Hallucinogen"  means  any controlled substance listed in schedule
I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19),  (20)  AND
(21).
  21. "CONCENTRATED CANNABIS" MEANS:
  (A)  THE  SEPARATED  RESIN, WHETHER CRUDE OR PURIFIED, OBTAINED FROM A
PLANT OF THE GENUS CANNABIS; OR
  (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
NUMBERING SYSTEM.
  § 9.  Subdivision 4 of section 220.06 of the penal law, as amended  by
chapter 537 of the laws of 1998, is amended to read as follows:
  4.  one  or  more  preparations,  compounds,  mixtures  or  substances
containing concentrated cannabis as defined in [paragraph (a) of  subdi-
vision  four  of  section  thirty-three hundred two of the public health
law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE  and  said
preparations,  compounds,  mixtures  or  substances  are of an aggregate
weight of one-fourth ounce or more; or
  § 10. Subdivision 10 of section 220.09 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  10. one  or  more  preparations,  compounds,  mixtures  or  substances
containing  concentrated cannabis as defined in [paragraph (a) of subdi-
vision four of section thirty-three hundred two  of  the  public  health
law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
preparations, compounds, mixtures or  substances  are  of  an  aggregate
weight of one ounce or more; or
  §  11. Subdivision 3 of section 220.34 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:

S. 3040                             9

  3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
four  of  section  thirty-three  hundred  two  of the public health law]
SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
  §  12.  Section  220.50 of the penal law, as amended by chapter 627 of
the laws of 1990, is amended to read as follows:
§ 220.50 Criminally using drug paraphernalia in the second degree.
  A person is guilty of  criminally  using  drug  paraphernalia  in  the
second degree when he knowingly possesses or sells:
  1.  Diluents,  dilutants or adulterants, including but not limited to,
any of the following: quinine hydrochloride, mannitol, mannite,  lactose
or  dextrose,  adapted  for the dilution of narcotic drugs or stimulants
under circumstances evincing an intent to use,  or  under  circumstances
evincing  knowledge  that  some  person  intends  to  use,  the same for
purposes of unlawfully mixing, compounding, or otherwise  preparing  any
narcotic  drug or stimulant, OTHER THAN MARIHUANA OR CONCENTRATED CANNA-
BIS; or
  2. Gelatine capsules, glassine envelopes, vials, capsules or any other
material suitable for the packaging of individual quantities of narcotic
drugs or stimulants under circumstances evincing an intent  to  use,  or
under  circumstances evincing knowledge that some person intends to use,
the same for the  purpose  of  unlawfully  manufacturing,  packaging  or
dispensing  of  any  narcotic drug or stimulant, OTHER THAN MARIHUANA OR
CONCENTRATED CANNABIS; or
  3. Scales and balances used or designed for the purpose of weighing or
measuring controlled substances, under circumstances evincing an  intent
to  use,  or  under  circumstances  evincing  knowledge that some person
intends to use, the same for purpose of unlawfully manufacturing,  pack-
aging  or dispensing of any narcotic drug or stimulant, OTHER THAN MARI-
HUANA OR CONCENTRATED CANNABIS.
  Criminally using drug paraphernalia in the second degree is a class  A
misdemeanor.
  §  13. Section 221.05 of the penal law, as added by chapter 360 of the
laws of 1977, is amended to read as follows:
§ 221.05 Unlawful possession of marihuana.
  A person is guilty of unlawful possession of marihuana when  he  know-
ingly and unlawfully possesses [marihuana]:
  1. MARIHUANA AND IS LESS THAN EIGHTEEN YEARS OF AGE; OR
  2.  MARIHUANA  IN A PUBLIC PLACE, AS DEFINED IN SECTION 240.00 OF THIS
PART, AND SUCH MARIHUANA IS BURNING.
  Unlawful possession of marihuana is a violation punishable only  by  a
fine  of not more than one hundred dollars. However, where the defendant
has previously been convicted of an offense defined in this  article  or
article  [220]  TWO  HUNDRED  TWENTY  of this [chapter] TITLE, committed
within the three years immediately preceding such violation, it shall be
punishable (a) only by a fine of not more than two hundred  dollars,  if
the  defendant  was  previously  convicted of one such offense committed
during such period, and (b) by a fine of not more than two hundred fifty
dollars or a term of imprisonment not in excess of fifteen days or both,
if the defendant was previously convicted of two such offenses committed
during such period.
  § 14. Section 221.15 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.15 Criminal possession of marihuana in the [fourth] SECOND degree.
  A person is guilty of criminal possession of marihuana in the [fourth]
SECOND degree when he knowingly and unlawfully possesses  [one  or  more

S. 3040                            10

preparations, compounds, mixtures or substances containing marihuana and
the  preparations, compounds, mixtures or substances are of an aggregate
weight of] more than two ounces OF MARIHUANA, MORE THAN  SIXTEEN  OUNCES
FOR  ANY  MIXTURES  OR SUBSTANCES CONTAINING MARIHUANA IN SOLID FORM, OR
MORE THAN SEVENTY-TWO OUNCES FOR ANY MIXTURES OR  SUBSTANCES  CONTAINING
MARIHUANA  IN  LIQUID  FORM,  OR  MORE  THAN  ONE-FOURTH OF ONE OUNCE OF
CONCENTRATED CANNABIS.
  Criminal possession of marihuana in the [fourth] SECOND  degree  is  a
class [A] B misdemeanor.
  §  15.  Section  221.20 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of  the
laws of 1995, is amended to read as follows:
§ 221.20 Criminal possession of marihuana in the [third] FIRST degree.
  A  person is guilty of criminal possession of marihuana in the [third]
FIRST degree when he knowingly and unlawfully  possesses  [one  or  more
preparations, compounds, mixtures or substances containing marihuana and
the  preparations, compounds, mixtures or substances are of an aggregate
weight of] more than eight ounces OF  MARIHUANA,  MORE  THAN  SIXTY-FOUR
OUNCES  FOR  ANY  MIXTURES  OR  SUBSTANCES CONTAINING MARIHUANA IN SOLID
FORM, OR MORE THAN TWO GALLONS FOR ANY MIXTURES OR SUBSTANCES CONTAINING
MARIHUANA IN LIQUID FORM, OR MORE THAN ONE OUNCE OF CONCENTRATED  CANNA-
BIS.
  Criminal  possession  of  marihuana  in  the [third] FIRST degree is a
class [E felony] A MISDEMEANOR.
  § 16. Sections  221.10,  221.25  and  221.30  of  the  penal  law  are
REPEALED.
  §  17. The penal law is amended by adding a new section 221.25 to read
as follows:
§ 221.25 HOME CULTIVATION OF MARIHUANA EXCEPTION.
  THE PROVISIONS OF THIS ARTICLE SHALL NOT APPLY TO  A  PERSON  EIGHTEEN
YEARS  OF  AGE OR OLDER WHO POSSESSES, GROWS, OR TRANSPORTS NO MORE THAN
SIX MARIHUANA PLANTS,  WITH  THREE  OR  FEWER  BEING  MATURE,  FLOWERING
PLANTS, PROVIDED THAT THE PLANTS ARE GROWN IN AN ENCLOSED, LOCKED SPACE,
NOT OPENLY OR PUBLICLY, AND THAT THE MARIHUANA IS NOT SOLD.
  §  18.  Section  221.35 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of  the
laws of 1995, is amended to read as follows:
§ 221.35 Criminal sale of marihuana in the [fifth] THIRD degree.
  A person LESS THAN EIGHTEEN YEARS OF AGE is guilty of criminal sale of
marihuana  in  the [fifth] THIRD degree when he knowingly and unlawfully
sells, without  consideration,  one  or  more  preparations,  compounds,
mixtures  or  substances  containing  marihuana  and  the  preparations,
compounds, mixtures or substances are of  an  aggregate  weight  of  two
grams or less; or one cigarette containing marihuana.
  Criminal  sale  of  marihuana in the [fifth] THIRD degree is a class B
misdemeanor.
  § 19. Section 221.40 of the penal law, as added by chapter 360 of  the
laws of 1977, is amended to read as follows:
§ 221.40 Criminal sale of marihuana in the [fourth] SECOND degree.
  A  person  is  guilty  of  criminal  sale of marihuana in the [fourth]
SECOND degree when he  knowingly  and  unlawfully  sells  marihuana  FOR
CONSIDERATION except as provided in section 221.35 of this article.
  Criminal  sale of marihuana in the [fourth] SECOND degree is a class A
misdemeanor.

S. 3040                            11

  § 20. Section 221.45 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.45 Criminal sale of marihuana in the [third] FIRST degree.
  A  person is guilty of criminal sale of marihuana in the [third] FIRST
degree when he knowingly and unlawfully sells [one or more preparations,
compounds, mixtures or substances containing marihuana and the  prepara-
tions,  compounds,  mixtures or substances are of an aggregate weight of
more than twenty-five grams] TWO OUNCES OF MARIHUANA, MORE THAN  SIXTEEN
OUNCES  FOR  ANY  MIXTURES  OR  SUBSTANCES CONTAINING MARIHUANA IN SOLID
FORM, OR MORE THAN SEVENTY-TWO OUNCES FOR  ANY  MIXTURES  OR  SUBSTANCES
CONTAINING  MARIHUANA  IN  LIQUID  FORM,  OR MORE THAN ONE-FOURTH OF ONE
OUNCE OF CONCENTRATED CANNABIS.
  Criminal sale of marihuana in the [third] FIRST degree is  a  class  E
felony.
  § 21. Sections 221.50 and 221.55 of the penal law are REPEALED.
  §  22. The penal law is amended by adding a new section 221.60 to read
as follows:
§ 221.60 LICENSING OF MARIHUANA PRODUCTION AND DISTRIBUTION.
  THE PROVISIONS OF THIS ARTICLE AND OF ARTICLE TWO  HUNDRED  TWENTY  OF
THIS  TITLE  SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM CRIMINAL PENAL-
TIES PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING,  MANUFAC-
TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING MARIHUANA OR
CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
ANCE WITH ARTICLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  §  23.  Subdivision  8  of section 1399-n of the public health law, as
amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
follows:
  8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
any other matter or substance which contains tobacco OR MARIHUANA.
  § 24. Section 2 of the alcoholic beverage control law, as  amended  by
chapter 406 of the laws of 2014, is amended to read as follows:
  §  2. Policy of state and purpose of chapter. It is hereby declared as
the policy of the state that it is necessary to regulate and control the
manufacture, sale and distribution within the state of alcoholic  bever-
ages  AND  MARIHUANA PRODUCTS for the purpose of fostering and promoting
temperance in their consumption and respect for and  obedience  to  law;
for  the  primary purpose of promoting the health, welfare and safety of
the people of the state, promoting  temperance  in  the  consumption  of
alcoholic beverages AND MARIHUANA PRODUCTS; and, to the extent possible,
supporting  economic  growth, job development, and the state's alcoholic
beverage production industries and its tourism and recreation  industry;
and  which  promotes  the conservation and enhancement of state agricul-
tural lands; provided that such activities  do  not  conflict  with  the
primary  regulatory  objectives  of  this chapter. It is hereby declared
that such policies will best be carried out  by  empowering  the  liquor
authority  of  the  state  to  determine  whether public convenience and
advantage will be promoted by the issuance of  licenses  to  traffic  in
alcoholic  beverages AND MARIHUANA PRODUCTS, the increase or decrease in
the number thereof  and  the  location  of  premises  licensed  thereby,
subject  only to the right of judicial review provided for in this chap-
ter. It is the purpose of this chapter to carry out  these  policies  in
the public interest.
  § 25. Subdivisions 20-a, 20-b, 20-c, 20-d and 20-e of section 3 of the
alcoholic  beverage  control law are renumbered subdivisions 20-j, 20-k,

S. 3040                            12

20-l, 20-m and 20-n and ten new  subdivisions  7-e,  20-a,  20-b,  20-c,
20-d, 20-e, 20-f, 20-g, 20-h and 20-i are added to read as follows:
  7-E.  "CONCENTRATED  CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR
  (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
NUMBERING SYSTEM.
  20-A. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF THE GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
(EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  20-B. "MARIHUANA CONSUMER" MEANS A PERSON TWENTY-ONE YEARS OF  AGE  OR
OLDER  WHO PURCHASES MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE BY
PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
  20-C. "MARIHUANA PROCESSOR" MEANS A PERSON LICENSED BY  THE  AUTHORITY
TO  PURCHASE  MARIHUANA AND CONCENTRATED CANNABIS FROM MARIHUANA PRODUC-
ERS, TO PROCESS MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA  INFUSED
PRODUCTS,  PACKAGE  AND LABEL MARIHUANA, CONCENTRATED CANNABIS AND MARI-
HUANA INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND  SELL  MARIHUANA,
CONCENTRATED  CANNABIS  AND  MARIHUANA  INFUSED PRODUCTS AT WHOLESALE TO
MARIHUANA RETAILERS.
  20-D. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY THE AUTHORITY TO
PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED CANNABIS AT WHOLE-
SALE TO MARIHUANA PROCESSORS, MARIHUANA RETAILERS,  OR  OTHER  MARIHUANA
PRODUCERS, BUT NOT TO CONSUMERS.
  20-E. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  20-F.  "MARIHUANA-INFUSED  PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARI-
HUANA, MARIHUANA EXTRACTS, OR CONCENTRATED CANNABIS AND ARE INTENDED FOR
HUMAN USE OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE  PRODUCTS,
OINTMENTS, AND TINCTURES.
  20-G. "MARIHUANA RETAILER" MEANS A PERSON LICENSED BY THE AUTHORITY TO
PURCHASE   MARIHUANA,   CONCENTRATED   CANNABIS,  AND  MARIHUANA-INFUSED
PRODUCTS FROM MARIHUANA PRODUCERS  AND  MARIHUANA  PROCESSORS  AND  SELL
MARIHUANA,  MARIHUANA  INFUSED  PRODUCTS, AND CONCENTRATED CANNABIS IN A
RETAIL OUTLET.
  20-H. "MARIHUANA RETAILER FOR ON-PREMISES CONSUMPTION" MEANS A  PERSON
LICENSED  BY THE AUTHORITY TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS,
AND MARIHUANA  INFUSED  PRODUCTS  FROM  MARIHUANA  PRODUCERS,  MARIHUANA
RETAILERS,  AND  MARIHUANA  PROCESSORS AND SELL MARIHUANA PRODUCTS FOR A
CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN A FACILITY.
  20-I. "UNREASONABLY IMPRACTICABLE" MEANS THAT THE  MEASURES  NECESSARY
TO  COMPLY  WITH THE REGULATIONS REQUIRE SUCH A HIGH INVESTMENT OF RISK,
MONEY, TIME OR OTHER RESOURCE OR ASSET THAT THE OPERATION OF A MARIHUANA
ESTABLISHMENT IS NOT WORTHY OF BEING CARRIED OUT BY A REASONABLY PRUDENT
BUSINESSPERSON.

S. 3040                            13

  § 26. Subdivision 12 of section 17 of the alcoholic  beverage  control
law,  as  amended  by  chapter  549 of the laws of 2001, and the closing
paragraph as amended by chapter 435 of the laws of 2010, is  amended  to
read as follows:
  12. To develop and establish minimum criteria for alcohol AND MARIHUA-
NA ABUSE training awareness programs which may be given and administered
by  schools;  other  entities including trade associations whose members
are engaged in or involved in the retail sale of alcoholic beverages  OR
MARIHUANA  PRODUCTS;  national and regional franchisors who have granted
at least five franchises in the state which are licensed to sell beer at
retail for off-premises consumption; licensees authorized to sell  alco-
holic beverages at retail for off-premises consumption operating five or
more licensed premises; and persons interested, whether as an individual
proprietor or partner or officer or member of a limited liability compa-
ny,  in five or more licensees authorized to sell alcoholic beverages at
retail for off-premises consumption. The authority shall provide for the
issuance of certificates of approval to all certified alcohol AND  MARI-
HUANA ABUSE training awareness programs. Certificates of approval may be
revoked  by the authority for failure to adhere to the authority's rules
and regulations. Such rules and regulations shall afford those who  have
been issued a certificate of approval an opportunity for a hearing prior
to any determination of whether such certificate should be revoked.
  No  licensee  shall  be  required to apply for any such certificate or
renewal certificate and the licensee may voluntarily  surrender  such  a
certificate  or  renewal certificate at any time. A fee in the amount of
nine hundred dollars shall be paid to the authority with  each  applica-
tion for a certificate of approval or renewal certificate. The authority
shall  promptly  refund  such  fee to an applicant whose application was
denied. Each certificate of approval and renewal thereof shall be issued
for a period of three years. To effectuate the provisions of this subdi-
vision, the authority is empowered to  require  in  connection  with  an
application  the  submission  of  such  information as the authority may
direct; to prescribe forms of applications and of all reports  which  it
deems  necessary  to  be made by any applicant or certificate holder; to
conduct investigations; to require the maintenance  of  such  books  and
records  as  the authority may direct; to revoke, cancel, or suspend for
cause any certificate provided for  in  this  subdivision.  Each  entity
authorized to give and administer an alcohol training OR MARIHUANA ABUSE
awareness  program  shall issue certificates of completion to all licen-
sees and employees who successfully complete such  an  approved  alcohol
training  OR  MARIHUANA ABUSE awareness program. Such entity shall regu-
larly transmit to the  authority  the  names,  addresses  and  dates  of
attendance  of all the licensees and employees of licensees who success-
fully complete an approved alcohol training OR MARIHUANA ABUSE awareness
program.  Such transmittal shall be in a form and manner  prescribed  by
the authority. The authority shall adopt rules and regulations to effec-
tuate the provisions of this subdivision, including the minimum require-
ments  for  the curriculum of each such training program and the regular
ongoing training of employees  holding  certificates  of  completion  or
renewal certificates. Such rules and regulations shall include the mini-
mum  requirements  for  a  separate  curriculum  for licensees and their
employees authorized to sell alcoholic beverages at retail for off-prem-
ises consumption, minimum requirements for  a  separate  curriculum  for
licensees  and their employees authorized to sell alcoholic beverages at
retail for on-premises consumption, and the form  of  a  certificate  of
completion  or renewal thereof to be issued in respect to each such type

S. 3040                            14

of program. A certificate of completion or renewal thereof issued by  an
entity authorized to give and administer an alcohol training OR MARIHUA-
NA ABUSE awareness program pursuant to this subdivision to licensees and
their  employees  authorized  to  sell alcoholic beverages at retail for
off-premises consumption shall not be invalidated by a change of employ-
ment to another such licensee. A certificate of  completion  or  renewal
thereof issued by an entity authorized to give and administer an alcohol
training  OR MARIHUANA ABUSE awareness program pursuant to this subdivi-
sion to licensees and  their  employees  authorized  to  sell  alcoholic
beverages at retail for on-premises consumption shall not be invalidated
by  a  change  of employment to another such licensee. Attendance at any
course established pursuant to this section shall be in person,  through
distance learning methods, or through an internet based online program.
  §  27.  Section 65-b of the alcoholic beverage control law, as amended
by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
2000, is amended to read as follows:
  §  65-b.  Offense for one under age of twenty-one years to purchase or
attempt to purchase an alcoholic beverage OR MARIHUANA PRODUCTS  through
fraudulent  means. 1.  As used in this section: (a) "A device capable of
deciphering any electronically readable format" or "device"  shall  mean
any  commercial device or combination of devices used at a point of sale
or entry that is capable of  reading  the  information  encoded  on  the
magnetic strip or bar code of a driver's license or non-driver identifi-
cation card issued by the commissioner of motor vehicles;
  (b)  "Card  holder"  means any person presenting a driver's license or
non-driver identification card to a licensee, or to the agent or employ-
ee of such licensee under this chapter; and
  (c) "Transaction scan" means the process involving a device capable of
deciphering any electronically readable format by which a  licensee,  or
agent  or  employee  of a licensee under this chapter reviews a driver's
license or non-driver identification card presented  as  a  precondition
for  the  purchase  of  an  alcoholic  beverage OR MARIHUANA PRODUCTS as
required by subdivision two of this section or  as  a  precondition  for
admission to an establishment licensed for the on-premises sale of alco-
holic  beverages  OR MARIHUANA PRODUCTS where admission is restricted to
persons twenty-one years or older.
  2. (a) No person under the age of twenty-one years  shall  present  or
offer to any licensee under this chapter, or to the agent or employee of
such licensee, any written evidence of age which is false, fraudulent or
not actually his OR HER own, for the purpose of purchasing or attempting
to purchase any alcoholic beverage OR MARIHUANA PRODUCTS.
  (b) No licensee, or agent or employee of such licensee shall accept as
written evidence of age by any such person for the purchase of any alco-
holic  beverage OR MARIHUANA PRODUCTS, any documentation other than: (i)
a valid driver's license or non-driver identification card issued by the
commissioner of motor  vehicles,  the  federal  government,  any  United
States  territory, commonwealth or possession, the District of Columbia,
a state government within the United States or a  provincial  government
of the dominion of Canada, or (ii) a valid passport issued by the United
States  government or any other country, or (iii) an identification card
issued by the armed forces of the United States. Upon  the  presentation
of  such  driver's license or non-driver identification card issued by a
governmental entity, such licensee or  agent  or  employee  thereof  may
perform a transaction scan as a precondition to the sale of any alcohol-

S. 3040                            15

ic  beverage. Nothing in this section shall prohibit a licensee or agent
or employee from performing such a transaction scan on any of the  other
documents  listed  in  this  subdivision if such documents include a bar
code or magnetic strip that [that] may be scanned by a device capable of
deciphering any electronically readable format.
  (c)  In  instances where the information deciphered by the transaction
scan fails to match the information printed on the driver's  license  or
non-driver  identification  card presented by the card holder, or if the
transaction scan indicates that the information is false or  fraudulent,
the  attempted  purchase of the alcoholic beverage OR MARIHUANA PRODUCTS
shall be denied.
  3. A person violating the provisions of paragraph (a)  of  subdivision
two  of  this  section  shall  be  guilty  of  a  violation and shall be
sentenced in accordance with the following:
  (a) For a first violation, the court shall order payment of a fine  of
not more than one hundred dollars and/or an appropriate amount of commu-
nity  service  not  to  exceed  thirty hours. In addition, the court may
order completion of an alcohol awareness program established pursuant to
section 19.25 of  the  mental  hygiene  law  OR  A  MARIHUANA  AWARENESS
PROGRAM.
  (b) For a second violation, the court shall order payment of a fine of
not  less  than  fifty dollars nor more than three hundred fifty dollars
and/or an appropriate amount of community service not  to  exceed  sixty
hours.  The court also shall order completion of an alcohol OR MARIHUANA
awareness program as referenced in paragraph (a) of this subdivision  if
such  program  has not previously been completed by the offender, unless
the court determines that attendance at such program is not feasible due
to the lack of availability of such program within  a  reasonably  close
proximity to the locality in which the offender resides or matriculates,
as appropriate.
  (c) For third and subsequent violations, the court shall order payment
of  a  fine  of  not less than fifty dollars nor more than seven hundred
fifty dollars and/or an appropriate amount of community service  not  to
exceed  ninety hours. The court also shall order that such person submit
to an evaluation by an appropriate agency certified or licensed  by  the
office  of  alcoholism and substance abuse services to determine whether
the person suffers from the disease of alcoholism or alcohol OR MARIHUA-
NA abuse, unless the  court  determines  that  under  the  circumstances
presented  such  an evaluation is not necessary, in which case the court
shall state on the record the basis for such determination. Payment  for
such  evaluation  shall be made by such person. If, based on such evalu-
ation, a need for treatment is indicated,  such  person  may  choose  to
participate  in  a  treatment  plan  developed by an agency certified or
licensed by the office of alcoholism and substance  abuse  services.  If
such  person  elects  to participate in recommended treatment, the court
shall order that payment of such fine and community service be suspended
pending the completion of such treatment.
  (d) Evaluation procedures.  For  purposes  of  this  subdivision,  the
following shall apply:
  (i)  The  contents  of an evaluation pursuant to paragraph (c) of this
subdivision shall be used for the sole purpose of  determining  if  such
person  suffers  from  the disease of alcoholism or alcohol OR MARIHUANA
abuse.
  (ii) The agency designated by the court  to  perform  such  evaluation
shall  conduct the evaluation and return the results to the court within
thirty days, subject to any state or federal confidentiality  law,  rule

S. 3040                            16

or  regulation  governing  the  confidentiality of alcohol and substance
abuse treatment records.
  (iii) The office of alcoholism and substance abuse services shall make
available  to  each  supreme  court law library in this state, or, if no
supreme court law library is available in a certain county, to the coun-
ty court law library of such county, a list  of  agencies  certified  to
perform  evaluations  as required by subdivision (f) of section 19.07 of
the mental hygiene law.
  (iv) All evaluations required under this subdivision shall be in writ-
ing and the person so evaluated or his or her counsel  shall  receive  a
copy of such evaluation prior to its use by the court.
  (v)  A minor evaluated under this subdivision shall have, and shall be
informed by the court of, the right to obtain a second opinion regarding
his or her need for alcoholism OR SUBSTANCE ABUSE treatment.
  4. A person violating the provisions of paragraph (b)  of  subdivision
two  of this section shall be guilty of a violation punishable by a fine
of not more than one hundred dollars, and/or an  appropriate  amount  of
community service not to exceed thirty hours. In addition, the court may
order  completion  of  an  alcohol OR SUBSTANCE ABUSE training awareness
program established pursuant to subdivision twelve of section  seventeen
of  this chapter where such program is located within a reasonably close
proximity to the locality in which the offender is employed or resides.
  5. No determination of guilt pursuant to this section shall operate as
a disqualification of  any  such  person  subsequently  to  hold  public
office,  public employment, or as a forfeiture of any right or privilege
or to receive any license granted  by  public  authority;  and  no  such
person shall be denominated a criminal by reason of such determination.
  6.  In  addition  to  the  penalties otherwise provided in subdivision
three of this section, if a determination is made sustaining a charge of
illegally purchasing or attempting to illegally  purchase  an  alcoholic
beverage  OR  MARIHUANA  PRODUCTS,  the  court may suspend such person's
license to drive a motor vehicle and  the  privilege  of  an  unlicensed
person  of  obtaining such license, in accordance with the following and
for the following periods, if it is found that a  driver's  license  was
used  for  the  purpose of such illegal purchase or attempt to illegally
purchase; provided, however, that where a person is  sentenced  pursuant
to  paragraph (b) or (c) of subdivision three of this section, the court
shall impose such license suspension if it  is  found  that  a  driver's
license  was used for the purpose of such illegal purchase or attempt to
illegally purchase:
  (a) For a first violation of paragraph (a) of subdivision two of  this
section, a three month suspension.
  (b) For a second violation of paragraph (a) of subdivision two of this
section, a six month suspension.
  (c)  For  a third or subsequent violation of paragraph (a) of subdivi-
sion two of this section, a suspension for one year or until the  holder
reaches the age of twenty-one, whichever is the greater period of time.
  Such  person  may  thereafter apply for and be issued a restricted use
license in accordance with the provisions of section five hundred thirty
of the vehicle and traffic law.
  7. (a) In any  proceeding  pursuant  to  subdivision  one  of  section
sixty-five of this article, it shall be an affirmative defense that such
person had produced a driver's license or non-driver identification card
apparently  issued  by a governmental entity, successfully completed the
transaction scan, and that the alcoholic beverage OR MARIHUANA  PRODUCTS
had  been sold, delivered or given to such person in reasonable reliance

S. 3040                            17

upon such identification and transaction scan. In evaluating the  appli-
cability  of  such  affirmative defense, the liquor authority shall take
into consideration any written policy adopted  and  implemented  by  the
seller to carry out the provisions of this chapter. Use of a transaction
scan  shall  not  excuse  any  licensee  under this chapter, or agent or
employee of such licensee, from the  exercise  of  reasonable  diligence
otherwise   required   by   this   section.  Notwithstanding  the  above
provisions, any such affirmative defense shall not be applicable in  any
other civil or criminal proceeding, or in any other forum.
  (b)  A  licensee or agent or employee of a licensee may electronically
or mechanically record and maintain only the information from  a  trans-
action  scan  necessary to effectuate the purposes of this section. Such
information shall be limited to the following: (i) name,  (ii)  date  of
birth,  (iii)  driver's license or non-driver identification number, and
(iv) expiration date. The liquor authority and the state commissioner of
motor vehicles shall jointly  promulgate  any  regulation  necessary  to
govern  the  recording  and  maintenance  of these records by a licensee
under this chapter. The liquor authority and the commissioner of  health
shall  jointly  promulgate  any  regulations necessary to ensure quality
control in the use of transaction scan devices.
  8. A licensee or agent or employee of such licensee shall only use the
information recorded and maintained through the use of such devices  for
the  purposes  contained  in  paragraph (a) of subdivision seven of this
section, and shall only use such devices for the purposes  contained  in
subdivision  two  of this section. No licensee or agent or employee of a
licensee shall resell or disseminate  the  information  recorded  during
such  scan  to any third person. Such prohibited resale or dissemination
includes, but is not limited to, any advertising,  marketing  or  promo-
tional  activities.  Notwithstanding  the  restrictions  imposed by this
subdivision, such records may be released pursuant to  a  court  ordered
subpoena  or  pursuant to any other statute that specifically authorizes
the release of such information.  Each  violation  of  this  subdivision
shall  be  punishable  by  a civil penalty of not more than one thousand
dollars.
  § 28. Section 140 of the alcoholic beverage control law, as amended by
chapter 810 of the laws of 1981, is amended to read as follows:
  § 140. Applicability of chapter before local option.  Until such  time
as  it  shall  become  unlawful to sell alcoholic beverages OR MARIHUANA
PRODUCTS in any town or city by the vote of the voters in such  town  or
city  in  the  manner provided in this article, all of the provisions of
this chapter shall apply throughout the entire state. This article shall
not apply to the Whiteface mountain ski center, owned by the  state  and
located in the town of Wilmington, county of Essex.
  § 29. Section 141 of the alcoholic beverage control law, as amended by
chapter 319 of the laws of 2007, is amended to read as follows:
  §  141.  Local  option for towns. 1. Not less than sixty days nor more
than seventy-five days before the general election in any town at  which
the submission of the questions hereinafter stated is authorized by this
article, a petition signed by electors of the town to a number amounting
to  twenty-five per centum of the votes cast in the town for governor at
the then last preceding  gubernatorial  election,  acknowledged  by  the
signers or authenticated by witnesses as provided in the election law in
respect  of  a  nominating  petition,  requesting the submission at such
election to the electors of the town of one or  more  of  the  following
questions, may be filed with the town clerk:

S. 3040                            18

  Question  1.  Tavern  alcoholic  beverage  license.  Shall a person be
allowed to obtain a license to operate a tavern with  a  limited-service
menu (sandwiches, salads, soups, etc.) which permits the tavern operator
to  sell  alcoholic beverages for a customer to drink while the customer
is  within the tavern. In addition, unopened containers of beer (such as
six-packs and kegs) may be sold "to go" for the  customer  to  open  and
drink at another location (such as, for example, at his home)?
  Question  2. Restaurant alcoholic beverage license. Shall the operator
of a full-service restaurant  be  allowed  to  obtain  a  license  which
permits  the  restaurant  operator  to  sell  alcoholic  beverages for a
customer to drink while the customer is within the restaurant. In  addi-
tion,  unopened  containers  of beer (such as six-packs and kegs) may be
sold "to go" for the customer to open  and  drink  at  another  location
(such as, for example, at his home)?
  Question  3.  Year-round  hotel  alcoholic beverage license. Shall the
operator of a year-round hotel with a full-service restaurant be allowed
to obtain a license which permits the year-round hotel to sell alcoholic
beverages for a customer to drink  while  the  customer  is  within  the
hotel.  In  addition, unopened containers of beer (such as six-packs and
kegs) may be sold "to go" for the customer to open and drink at  another
location (such as, for example, at his home)?
  Question  4. Summer hotel alcoholic beverage license. Shall the opera-
tor of a summer hotel with a full-service restaurant, open for  business
only  within  the  period from May first to October thirty-first in each
year, be allowed to obtain a license which permits the summer  hotel  to
sell  alcoholic  beverages for a customer to drink while the customer is
within the hotel. In addition, unopened  containers  of  beer  (such  as
six-packs  and  kegs)  may  be sold "to go" for the customer to open and
drink at another location (such as, for example, at his home)?
  Question 5. Retail package liquor  or  wine  store  license.  Shall  a
person  be  allowed  to  obtain  a  license  to operate a retail package
liquor-and-wine or wine-without-liquor store, to sell "to  go"  unopened
bottles  of  liquor or wine to a customer to be taken from the store for
the customer to open and drink at another location (such as,  for  exam-
ple, at his home)?
  Question 6. Off-premises beer and wine cooler license. Shall the oper-
ator  of  a  grocery  store,  drugstore  or supply ship operating in the
harbors of Lake Erie be allowed to obtain a license  which  permits  the
operator  to sell "to go" unopened containers of beer (such as six-packs
and kegs) and wine coolers with not more than 6% alcohol to  a  customer
to be taken from the store for the customer to open and drink at another
location (such as, for example, at his home)?
  Question  7.  Baseball  park,  racetrack,  athletic  field  or stadium
license.  Shall a person be allowed to obtain a  license  which  permits
the sale of beer for a patron's consumption while the patron is within a
baseball  park,  racetrack,  or  other  athletic  field or stadium where
admission fees are charged?
  QUESTION 8. MARIHUANA RETAILER LICENSE. SHALL A PERSON BE  ALLOWED  TO
OBTAIN  A  LICENSE TO OPERATE A RETAIL MARIHUANA STORE, TO SELL UNOPENED
MARIHUANA PRODUCTS TO A CUSTOMER TO BE TAKEN  FROM  THE  STORE  FOR  THE
CUSTOMER  TO OPEN AND CONSUME AT ANOTHER LOCATION (SUCH AS, FOR EXAMPLE,
AT HIS HOME)?
  QUESTION 9. ON-PREMISES MARIHUANA RETAILER LICENSE. SHALL A PERSON  BE
ALLOWED  TO  OBTAIN A LICENSE TO OPERATE A FACILITY WHERE THE SERVICE OF
FOOD IS ONLY INCIDENTAL AND PERMITS THE FACILITY OPERATOR TO SELL  MARI-

S. 3040                            19

HUANA  PRODUCTS  FOR  A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN
THE FACILITY?
  2.  Upon  the due filing of such petition complying with the foregoing
provisions, such questions shall be submitted in accordance therewith.
  3. The town clerk shall, within five days  from  the  filing  of  such
petition  in  his office, prepare and file in the office of the board of
elections, as defined by the election law, of the  county,  a  certified
copy  of such petition. Such questions may be submitted only at the time
of a general election. At least ten days before such  general  election,
the  board of elections shall cause to be printed and posted in at least
four public places in such town, a notice of the fact that  all  of  the
local  option  questions  will be voted on at such general election; and
the said notice shall also be published at least five  days  before  the
vote is to be taken once in a newspaper published in the county in which
such town is situated, which shall be a newspaper published in the town,
if  there  be one. Whenever such questions are to be submitted under the
provisions of this article the board of elections shall cause the proper
ballot labels to be printed and placed on all voting  machines  used  in
the  town  in  which  such  questions  are  to be submitted, in the form
prescribed by the election law in respect of other propositions or ques-
tions, upon the face of which shall be printed in full  the  said  ques-
tions.  Any  elector qualified to vote for state officers shall be enti-
tled to vote upon such local option questions. As soon as  the  election
shall  be  held, a return of the votes cast and counted shall be made as
provided by law and the returns canvassed by the inspectors of election.
If a majority of the votes cast shall be in the negative on all  or  any
of  the  questions, no person shall, after such election, sell alcoholic
beverages OR MARIHUANA PRODUCTS in such town contrary to such vote or to
the provisions of this chapter; provided, however, that  the  result  of
such vote shall not shorten the term for which any license may have been
lawfully  issued under this chapter or affect the rights of the licensee
thereunder; and no person shall after such vote apply for or  receive  a
license  to  sell alcoholic beverages OR MARIHUANA PRODUCTS at retail in
such town contrary to such vote, until,  by  referendum  as  hereinafter
provided for, such sale shall again become lawful.
  §  30.  Subdivision 3 of section 142 of the alcoholic beverage control
law is amended to read as follows:
  3. If a majority of the votes cast shall be in the negative on any  or
all  of  the questions, no person shall, after such election, sell alco-
holic beverages OR MARIHUANA PRODUCTS in such city contrary to such vote
or to the provisions of this chapter; provided, however, that the result
of such vote shall not shorten the term for which any license  may  have
been  lawfully  issued  under  this  chapter or affect the rights of the
licensee thereunder; and no person shall after such vote  apply  for  or
receive  a  license to sell alcoholic beverages OR MARIHUANA PRODUCTS at
retail in such city contrary to such vote, until, by referendum as here-
inafter provided for, such sale shall again become lawful.
  § 31. Subdivision 2 of section 147 of the alcoholic  beverage  control
law is amended to read as follows:
  2.  If  at  the time of any subsequent submission of such questions it
shall be lawful to sell alcoholic beverages OR MARIHUANA PRODUCTS and  a
majority  of  the votes cast shall be in the negative on such questions,
then all of the provisions of  this  article  applicable  thereto  shall
become effective.
  §  32. Article 11 and sections 160, 161, 162, 163 and 164 of the alco-
holic beverage control law, article 11 and sections 160,  161,  162  and

S. 3040                            20

163  as  renumbered  by  chapter 725 of the laws of 1954, are renumbered
article 12 and sections 200, 201, 202, 203 and 204.
  §  33.  The  alcoholic beverage control law is amended by adding a new
article 11 to read as follows:
                                ARTICLE 11
                    PROVISIONS RELATING TO MARIHUANA
SECTION 165. LICENSES ISSUED.
        166. PRODUCERS AND PROCESSORS NOT TO BE INTERESTED IN RETAILERS.
        167. ACTIONS TAKEN PURSUANT TO A VALID LICENSE ARE LAWFUL.
        168. GENERAL PROHIBITIONS AND RESTRICTIONS.
        169. CERTAIN OFFICIALS NOT TO BE INTERESTED  IN  MANUFACTURE  OR
               SALE OF MARIHUANA.
        170. PROVISIONS GOVERNING INITIAL RULEMAKING.
        171. PROVISIONS GOVERNING MARIHUANA PRODUCERS.
        172. PROVISIONS GOVERNING PROCESSORS.
        173. PROVISIONS GOVERNING MARIHUANA RETAILERS.
        174. PROVISIONS GOVERNING MARIHUANA RETAILERS FOR CONSUMPTION ON
               PREMISES.
        175. ADVERTISING AND FORMS OF THE ISSUANCE OF LICENSES.
        176. PACKAGING OF MARIHUANA PRODUCTS.
        177. LABELING OF MARIHUANA PRODUCTS.
        178. RENEWALS OF LICENSES AND PERMITS.
        179. INFORMATION TO BE REQUESTED IN APPLICATIONS FOR LICENSES OR
               PERMITS.
        180. NOTIFICATION TO MUNICIPALITIES.
        181. LICENSES, PUBLICATION, GENERAL PROVISIONS.
        182. REVOCATION OF LICENSES FOR CAUSE.
        183. PROCEDURE FOR REVOCATION OR CANCELLATION.
        184. DECISIONS OF LIQUOR AUTHORITY AND REVIEW BY THE COURTS.
        185. MINORITY AND WOMEN BUSINESS ENTERPRISES.
        186. DISPOSITION OF MONEYS RECEIVED FOR LICENSE FEES.
        187. PERSONS FORBIDDEN TO TRAFFIC IN MARIHUANA.
        188. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS.
        189. AUTHORITY TO PROMULGATE RULES AND REGULATIONS.
        190. PROTECTIONS FOR THE USE OF MARIHUANA.
        191. CIVIL PROTECTIONS FOR THE USE OF MARIHUANA.
        192. PROFESSIONAL AND MEDICAL RECORD KEEPING.
  §  165.  LICENSES  ISSUED.  THE  FOLLOWING  KINDS OF LICENSES SHALL BE
ISSUED BY THE AUTHORITY FOR THE MANUFACTURE AND SALE OF MARIHUANA:
  1. MARIHUANA PRODUCER LICENSE;
  2. MARIHUANA PROCESSOR LICENSE;
  3. MARIHUANA RETAILER LICENSE;
  4. MARIHUANA RETAILER LICENSE FOR CONSUMPTION ON THE PREMISES; AND
  5. ANY OTHER TYPE OF LICENSES ALLOWED BY THE AUTHORITY.
  § 166. PRODUCERS AND PROCESSORS NOT TO  BE  INTERESTED  IN  RETAILERS.
NEITHER A LICENSED PRODUCER NOR A LICENSED PROCESSOR SHALL HAVE A DIRECT
OR  INDIRECT  FINANCIAL  INTEREST  IN A LICENSED MARIHUANA RETAILER OR A
MARIHUANA RETAILER LICENSE FOR CONSUMPTION ON THE PREMISES.
  § 167. ACTIONS TAKEN PURSUANT  TO  A  VALID  LICENSE  ARE  LAWFUL.  NO
CONTRACTS  RELATED TO THE OPERATION OF LICENSES UNDER THIS CHAPTER SHALL
BE DEEMED UNENFORCEABLE ON THE BASIS THAT THE ACTIONS PERMITTED PURSUANT
TO THE LICENSE ARE PROHIBITED BY FEDERAL LAW. THE FOLLOWING ACTIONS  ARE
NOT  UNLAWFUL  AS  PROVIDED  UNDER THIS CHAPTER, SHALL NOT BE AN OFFENSE
UNDER NEW YORK LAW OR THE LAWS OF ANY  LOCALITY  WITHIN  NEW  YORK,  AND
SHALL  NOT  RESULT  IN  ANY CIVIL FINE, SEIZURE, OR FORFEITURE OF ASSETS
AGAINST ANY PERSON ACTING IN ACCORDANCE WITH THIS CHAPTER:

S. 3040                            21

  1. ACTIONS OF A LICENSEE, ITS EMPLOYEES, AND ITS AGENTS, AS  PERMITTED
BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE AUTHOR-
ITY, PURSUANT TO A VALID LICENSE ISSUED BY THE AUTHORITY.
  2.  ACTIONS  OF THOSE WHO ALLOW PROPERTY TO BE USED BY A LICENSEE, ITS
EMPLOYEES, AND ITS AGENTS, AS PERMITTED BY THIS CHAPTER  AND  CONSISTENT
WITH RULES AND REGULATIONS OF THE AUTHORITY, PURSUANT TO A VALID LICENSE
ISSUED BY THE AUTHORITY.
  3.  ACTIONS  OF ANY PERSON OR ENTITY, THEIR EMPLOYEES, OR THEIR AGENTS
PROVIDING A SERVICE TO A LICENSEE OR POTENTIAL LICENSEE, AS PERMITTED BY
THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE AUTHORITY,
RELATING TO THE FORMATION OF A BUSINESS.
  4. THE PURCHASE, POSSESSION, OR CONSUMPTION OF MARIHUANA, AS PERMITTED
BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE AUTHOR-
ITY, OBTAINED FROM A VALIDLY LICENSED RETAILER.
  § 168. GENERAL PROHIBITIONS AND RESTRICTIONS. 1. NO MARIHUANA PRODUCTS
MAY BE IMPORTED OR EXPORTED INTO NEW YORK STATE BY A LICENSEE FROM OR TO
A JURISDICTION IN WHICH POSSESSION, TRANSPORT, DISTRIBUTION OF MARIHUANA
OR OTHER MARIHUANA RELATED CONDUCT REMAINS ILLEGAL  UNDER  THE  LAWS  OF
THAT JURISDICTION.
  2.  (A) NO PERSON HOLDING ANY LICENSE PURSUANT TO THIS ARTICLE TO GROW
OR PROCESS MARIHUANA MAY EMPLOY ANY PERSON WHO HAS BEEN CONVICTED  OF  A
CLASS  B  VIOLENT  FELONY  OFFENSE,  A CLASS C VIOLENT FELONY OFFENSE, A
CLASS D VIOLENT FELONY OFFENSE, OR A CLASS E VIOLENT FELONY  OFFENSE  AS
DEFINED  BY  SECTION  70.02 OF THE PENAL LAW, UNLESS, SUBSEQUENT TO SUCH
CONVICTION, THE PERSON HAS RECEIVED: (I) AN  EXECUTIVE  PARDON  THEREFOR
REMOVING  ANY CIVIL DISABILITIES INCURRED THEREBY; (II) A CERTIFICATE OF
RELIEF FROM DISABILITIES OR A CERTIFICATE OF GOOD  CONDUCT  PURSUANT  TO
ARTICLE  TWENTY-THREE  OF  THE  CORRECTION  LAW; (III) OTHER RELIEF FROM
DISABILITIES PROVIDED BY LAW; OR (IV) THE WRITTEN APPROVAL OF THE LIQUOR
AUTHORITY PERMITTING SUCH EMPLOYMENT AS PROVIDED  IN  PARAGRAPH  (B)  OF
THIS SUBDIVISION.
  (B)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, IF THE LIQUOR  AUTHORITY  ISSUES  ITS  WRITTEN  APPROVAL  FOR  THE
EMPLOYMENT BY A LICENSEE, IN A SPECIFIED CAPACITY, OF A PERSON PREVIOUS-
LY  CONVICTED  OF  A  FELONY  OR ANY OF THE OFFENSES ABOVE ENUMERATED IN
PARAGRAPH (A) OF THIS SUBDIVISION, SUCH PERSON, MAY, UNLESS HE OR SHE IS
SUBSEQUENTLY CONVICTED OF A FELONY OR ANY OF SUCH  OFFENSES,  THEREAFTER
BE  EMPLOYED  IN  THE  SAME  CAPACITY  BY ANY OTHER LICENSEE WITHOUT THE
FURTHER WRITTEN APPROVAL OF THE  AUTHORITY  UNLESS  THE  PRIOR  APPROVAL
GIVEN BY THE AUTHORITY IS TERMINATED.
  3.  NO  LICENSE OF ANY KIND MAY BE ISSUED TO A PERSON UNDER THE AGE OF
TWENTY-ONE YEARS, NOR SHALL ANY LICENSEE EMPLOY ANYONE UNDER THE AGE  OF
TWENTY-ONE YEARS.
  §  169.  CERTAIN OFFICIALS NOT TO BE INTERESTED IN MANUFACTURE OR SALE
OF MARIHUANA. 1. EXCEPT AS OTHERWISE PROVIDED  IN  SECTION  ONE  HUNDRED
TWENTY-EIGHT-A  OF  THIS  CHAPTER,  IT  SHALL BE UNLAWFUL FOR ANY POLICE
COMMISSIONER, POLICE INSPECTOR, CAPTAIN, SERGEANT, ROUNDSMAN,  PATROLMAN
OR  OTHER POLICE OFFICIAL OR SUBORDINATE OF ANY POLICE DEPARTMENT IN THE
STATE, TO BE EITHER DIRECTLY OR INDIRECTLY INTERESTED IN THE MANUFACTURE
OR SALE OF MARIHUANA OR TO OFFER FOR SALE, OR RECOMMEND TO ANY  LICENSEE
ANY  MARIHUANA. A PERSON MAY NOT BE DENIED ANY LICENSE GRANTED UNDER THE
PROVISIONS OF SECTIONS FIFTY-FOUR, FIFTY-FIVE, FIFTY-NINE,  SIXTY-THREE,
SIXTY-FOUR,  SEVENTY-NINE,  EIGHTY-ONE, OR ARTICLE SEVEN OF THIS CHAPTER
SOLELY ON THE GROUNDS OF BEING THE SPOUSE OF A PUBLIC SERVANT  DESCRIBED
IN  THIS  SUBDIVISION.  THE  SOLICITATION  OR RECOMMENDATION MADE TO ANY
LICENSEE, TO PURCHASE ANY MARIHUANA BY ANY POLICE OFFICIAL  OR  SUBORDI-

S. 3040                            22

NATE  AS  HEREINABOVE  DESCRIBED,  SHALL  BE PRESUMPTIVE EVIDENCE OF THE
INTEREST OF SUCH OFFICIAL OR SUBORDINATE IN THE MANUFACTURE OR  SALE  OF
MARIHUANA.
  2. NO ELECTIVE VILLAGE OFFICER SHALL BE SUBJECT TO THE LIMITATIONS SET
FORTH  IN  SUBDIVISION  ONE OF THIS SECTION UNLESS SUCH ELECTIVE VILLAGE
OFFICER SHALL BE ASSIGNED DUTIES DIRECTLY RELATING TO THE  OPERATION  OR
MANAGEMENT OF THE POLICE DEPARTMENT.
  §  170. PROVISIONS GOVERNING INITIAL RULEMAKING. 1. WITHIN TWO HUNDRED
FORTY DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE AUTHORITY SHALL
PERFORM SUCH ACTS, PRESCRIBE SUCH FORMS AND MAKE SUCH RULES, REGULATIONS
AND ORDERS AS IT MAY DEEM NECESSARY OR PROPER TO  FULLY  EFFECTUATE  THE
PROVISIONS OF THIS ARTICLE.
  2.  THE  AUTHORITY  SHALL  PROMULGATE  NECESSARY RULES AND REGULATIONS
GOVERNING THE LICENSING OF MARIHUANA  PRODUCERS,  MARIHUANA  PROCESSORS,
MARIHUANA RETAILERS AND MARIHUANA RETAILERS FOR CONSUMPTION ON THE PREM-
ISES, INCLUDING:
  (A) PRESCRIBING FORMS AND ESTABLISHING APPLICATION, REINSTATEMENT, AND
RENEWAL FEES;
  (B) THE QUALIFICATIONS FOR LICENSURE;
  (C)  THE  BOOKS AND RECORDS TO BE CREATED AND MAINTAINED BY LICENSEES,
THE REPORTS TO BE MADE THEREON TO THE AUTHORITY, AND INSPECTION  OF  THE
BOOKS AND RECORDS;
  (D)  METHODS  OF PRODUCING, PROCESSING, AND PACKAGING MARIHUANA, MARI-
HUANA-INFUSED PRODUCTS, AND CONCENTRATED CANNABIS; CONDITIONS OF SANITA-
TION, AND STANDARDS OF INGREDIENTS, QUALITY, AND IDENTITY  OF  MARIHUANA
PRODUCTS PRODUCED, PROCESSED, PACKAGED, OR SOLD BY LICENSEES; AND
  (E)  SECURITY  REQUIREMENTS FOR MARIHUANA RETAILERS AND PREMISES WHERE
MARIHUANA PRODUCTS ARE PRODUCED OR PROCESSED, AND SAFETY  PROTOCOLS  FOR
LICENSEES AND THEIR EMPLOYEES.
  3.  THE  LIQUOR  AUTHORITY SHALL PROMULGATE RULES AND REGULATIONS THAT
ARE CALCULATED TO:
  (A) PREVENT THE DISTRIBUTION OF MARIHUANA TO PERSONS UNDER  TWENTY-ONE
YEARS OF AGE;
  (B) PREVENT THE REVENUE FROM THE SALE OF MARIHUANA FROM GOING TO CRIM-
INAL ENTERPRISES, GANGS, AND CARTELS;
  (C)  PREVENT  THE  DIVERSION  OF  MARIHUANA  FROM  THIS STATE TO OTHER
STATES;
  (D) PREVENT MARIHUANA ACTIVITY THAT IS  LEGAL  UNDER  STATE  LAW  FROM
BEING  USED  AS  A COVER OR PRETEXT FOR THE TRAFFICKING OF OTHER ILLEGAL
DRUGS OR OTHER ILLEGAL ACTIVITY;
  (E) PREVENT VIOLENCE AND THE USE OF FIREARMS IN  THE  CULTIVATION  AND
DISTRIBUTION OF MARIHUANA;
  (F)  PREVENT  DRUGGED  DRIVING  AND  THE EXACERBATION OF OTHER ADVERSE
PUBLIC HEALTH CONSEQUENCES ASSOCIATED WITH THE USE OF MARIHUANA;
  (G) PREVENT THE GROWING OF MARIHUANA ON PUBLIC LANDS AND THE ATTENDANT
PUBLIC SAFETY AND ENVIRONMENTAL DANGERS POSED BY MARIHUANA PRODUCTION ON
PUBLIC LANDS; AND
  (H) PREVENT THE POSSESSION AND USE OF MARIHUANA ON FEDERAL PROPERTY.
  4. RULES AND REGULATIONS PROMULGATED BY THE LIQUOR AUTHORITY  PURSUANT
TO SUBDIVISION THREE OF THIS SECTION SHALL NOT PROHIBIT THE OPERATION OF
MARIHUANA  ESTABLISHMENTS  EITHER  EXPRESSLY OR THROUGH REGULATIONS THAT
MAKE THEIR OPERATION UNREASONABLY IMPRACTICABLE.
  5. THE LIQUOR AUTHORITY, IN CONSULTATION WITH THE DEPARTMENT OF  AGRI-
CULTURE  AND  MARKETS  AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION,
SHALL PROMULGATE NECESSARY RULES  AND  REGULATIONS  GOVERNING  THE  SAFE

S. 3040                            23

PRODUCTION  OF  MARIHUANA,  INCLUDING  RESTRICTIONS ON THE USE OF PESTI-
CIDES.
  §  171. PROVISIONS GOVERNING MARIHUANA PRODUCERS. 1. NO PRODUCER SHALL
SELL, OR AGREE TO SELL OR DELIVER IN THE STATE ANY  MARIHUANA  PRODUCTS,
AS THE CASE MAY BE, EXCEPT IN SEALED CONTAINERS CONTAINING QUANTITIES IN
ACCORDANCE  WITH  SIZE STANDARDS PURSUANT TO RULES ADOPTED BY THE LIQUOR
AUTHORITY. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY
BE REQUIRED BY THE RULES OF THE  LIQUOR  AUTHORITY,  TOGETHER  WITH  ALL
NECESSARY NEW YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
  2. NO PRODUCER SHALL TRANSPORT MARIHUANA PRODUCTS IN ANY VEHICLE OWNED
AND  OPERATED OR HIRED AND OPERATED BY SUCH PRODUCER, UNLESS THERE SHALL
BE ATTACHED TO OR INSCRIBED UPON BOTH SIDES  OF  SUCH  VEHICLE  A  SIGN,
SHOWING  THE NAME AND ADDRESS OF THE LICENSEE, TOGETHER WITH THE FOLLOW-
ING INSCRIPTION: "NEW YORK STATE MARIHUANA PRODUCER LICENSE NUMBER  ..,"
IN UNIFORM LETTERS NOT LESS THAN THREE AND ONE-HALF INCHES IN HEIGHT. IN
LIEU  OF  SUCH  SIGN  A  PRODUCER  MAY HAVE IN THE CAB OF SUCH VEHICLE A
PHOTOSTATIC COPY OF ITS CURRENT LICENSE ISSUED  BY  THE  AUTHORITY,  AND
SUCH COPY DULY AUTHENTICATED BY THE AUTHORITY.
  3.  NO  PRODUCER SHALL DELIVER ANY MARIHUANA PRODUCTS, EXCEPT IN VEHI-
CLES OWNED AND OPERATED BY SUCH PRODUCER, OR HIRED AND OPERATED BY  SUCH
PRODUCER  FROM  A TRUCKING OR TRANSPORTATION COMPANY REGISTERED WITH THE
LIQUOR AUTHORITY, AND SHALL ONLY MAKE DELIVERIES AT THE  LICENSED  PREM-
ISES OF THE PURCHASER.
  4.  EACH  PRODUCER SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  PRODUCER
AND  SALE  OF  HIS  OR ITS PRODUCTS, WHICH SHALL INCLUDE ALL INFORMATION
REQUIRED BY RULES PROMULGATED BY THE LIQUOR AUTHORITY. EACH  SALE  SHALL
BE  RECORDED  SEPARATELY ON A NUMBERED INVOICE, WHICH SHALL HAVE PRINTED
THEREON THE NUMBER, THE  NAME  OF  THE  LICENSEE,  THE  ADDRESS  OF  THE
LICENSED  PREMISES,  AND THE CURRENT LICENSE NUMBER. SUCH PRODUCER SHALL
DELIVER TO THE PURCHASER A TRUE DUPLICATE INVOICE STATING THE  NAME  AND
ADDRESS  OF  THE  PURCHASER, THE QUANTITY PURCHASED, DESCRIPTION AND THE
PRICE OF THE PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF THE
TERMS AND CONDITIONS ON WHICH SUCH SALE IS MADE. SUCH BOOKS, RECORDS AND
INVOICES SHALL BE KEPT FOR A PERIOD OF TWO YEARS AND SHALL BE  AVAILABLE
FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE LIQUOR AUTHORITY.
  5. NO PRODUCER SHALL FURNISH OR CAUSE TO BE FURNISHED TO ANY LICENSEE,
ANY  EXTERIOR OR INTERIOR SIGN, PRINTED, PAINTED, ELECTRIC OR OTHERWISE,
EXCEPT AS AUTHORIZED BY THE LIQUOR AUTHORITY. THE LIQUOR  AUTHORITY  MAY
MAKE  SUCH  RULES  AS  IT  DEEMS  NECESSARY TO CARRY OUT THE PURPOSE AND
INTENT OF THIS SUBDIVISION.
  § 172. PROVISIONS GOVERNING  PROCESSORS.  1.  NO  PROCESSOR  SHALL  BE
ENGAGED  IN  ANY  OTHER  BUSINESS ON THE PREMISES TO BE LICENSED; EXCEPT
THAT NOTHING CONTAINED IN THIS CHAPTER SHALL PREVENT A MARIHUANA PRODUC-
ER AND A MARIHUANA PROCESSOR FROM OPERATING ON  THE  SAME  PREMISES  AND
FROM A PERSON HOLDING BOTH LICENSES.
  2.  NO  PROCESSOR SHALL SELL, OR AGREE TO SELL OR DELIVER IN THE STATE
ANY MARIHUANA PRODUCTS, EXCEPT IN A SEALED PACKAGE CONTAINING QUANTITIES
IN ACCORDANCE WITH SIZE STANDARDS  PURSUANT  TO  RULES  ADOPTED  BY  THE
LIQUOR AUTHORITY. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS
AS  MAY  BE REQUIRED BY THE RULES OF THE LIQUOR AUTHORITY, TOGETHER WITH
ALL NECESSARY NEW YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
  3. EACH PROCESSOR SHALL HAVE  PAINTED  ON  THE  FRONT  WINDOW  OF  THE
LICENSED  PREMISES,  OR  IF THERE BE NO WINDOW, ON A SIGN AFFIXED TO THE
FRONT OF THE BUILDING CONTAINING SAID LICENSED PREMISES, THE NAME OF THE
LICENSEE TOGETHER  WITH  THE  INSCRIPTION,  "NEW  YORK  STATE  MARIHUANA

S. 3040                            24

PROCESSOR  OR  MARIHUANA  PROCESSOR LICENSE NUMBER ................"; AS
THE CASE MAY BE, IN UNIFORM LETTERS NOT LESS  THAN  THREE  AND  ONE-HALF
INCHES IN HEIGHT.
  4.  NO  PROCESSOR  SHALL  TRANSPORT  MARIHUANA PRODUCTS IN ANY VEHICLE
OWNED AND OPERATED OR HIRED AND OPERATED BY SUCH PROCESSOR, UNLESS THERE
SHALL BE ATTACHED TO OR INSCRIBED UPON BOTH  SIDES  OF  SUCH  VEHICLE  A
SIGN,  SHOWING  THE  NAME AND ADDRESS OF THE LICENSEE, TOGETHER WITH THE
FOLLOWING INSCRIPTION: "NEW YORK STATE MARIHUANA PROCESSOR OR  MARIHUANA
PROCESSOR  LICENSE  NUMBER  .................,"  AS  THE CASE MAY BE, IN
UNIFORM LETTERS NOT LESS THAN THREE AND ONE-HALF INCHES  IN  HEIGHT.  IN
LIEU  OF  SUCH  SIGN,  A PROCESSOR MAY HAVE IN THE CAB OF SUCH VEHICLE A
PHOTOSTATIC COPY OF ITS CURRENT LICENSE ISSUED  BY  THE  AUTHORITY,  AND
SUCH COPY DULY AUTHENTICATED BY THE AUTHORITY.
  5.  NO  PROCESSOR SHALL DELIVER ANY PRODUCTS, EXCEPT IN VEHICLES OWNED
AND OPERATED BY SUCH PROCESSOR, OR HIRED AND OPERATED BY SUCH  PROCESSOR
FROM  A  TRUCKING  OR  TRANSPORTATION COMPANY REGISTERED WITH THE LIQUOR
AUTHORITY, AND SHALL ONLY MAKE DELIVERIES AT THE  LICENSED  PREMISES  OF
THE PURCHASER.
  6.  EACH PROCESSOR SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  BUSINESS
TRANSACTED  BY  SUCH PROCESSOR, WHICH SHALL SHOW THE AMOUNT OF MARIHUANA
PRODUCTS, PURCHASED BY SUCH PROCESSOR TOGETHER WITH THE  NAMES,  LICENSE
NUMBERS  AND  PLACES  OF  BUSINESS OF THE PERSONS FROM WHOM THE SAME WAS
PURCHASED AND THE AMOUNT INVOLVED IN SUCH  PURCHASES,  AS  WELL  AS  THE
AMOUNT  OF  MARIHUANA  PRODUCTS SOLD BY SUCH PROCESSOR TOGETHER WITH THE
NAMES, ADDRESSES, AND LICENSE NUMBERS  OF  SUCH  PURCHASERS.  EACH  SALE
SHALL  BE  RECORDED  SEPARATELY  ON A NUMBERED INVOICE, WHICH SHALL HAVE
PRINTED THEREON THE NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE
LICENSED PREMISES, AND THE CURRENT LICENSE NUMBER. SUCH PROCESSOR  SHALL
DELIVER  TO  THE PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND
ADDRESS OF THE PURCHASER, QUANTITY PURCHASED, DESCRIPTION AND THE  PRICE
OF THE PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS
AND  CONDITIONS  ON  WHICH  SUCH  SALE  IS MADE. SUCH BOOKS, RECORDS AND
INVOICES SHALL BE KEPT FOR A PERIOD OF TWO YEARS AND SHALL BE  AVAILABLE
FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE LIQUOR AUTHORITY.
  7.  NO  PROCESSOR SHALL FURNISH OR CAUSE TO BE FURNISHED TO ANY LICEN-
SEE, ANY EXTERIOR OR INTERIOR SIGN, PRINTED, PAINTED, ELECTRIC OR OTHER-
WISE, UNLESS AUTHORIZED BY THE LIQUOR AUTHORITY.
  § 173. PROVISIONS GOVERNING MARIHUANA RETAILERS. 1. NO RETAIL  LICENSE
SHALL  BE  GRANTED  FOR  ANY PREMISES, UNLESS THE APPLICANT SHALL BE THE
OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A LEASE,
MANAGEMENT AGREEMENT OR OTHER AGREEMENT  GIVING  THE  APPLICANT  CONTROL
OVER  THE  PREMISES,  IN  WRITING,  FOR A TERM NOT LESS THAN THE LICENSE
PERIOD.
  2. NO PREMISES SHALL BE LICENSED TO SELL  MARIHUANA  PRODUCTS,  UNLESS
SAID  PREMISES  SHALL  BE  LOCATED IN A STORE, THE PRINCIPAL ENTRANCE TO
WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON A  PUBLIC  THOROUGH-
FARE  IN PREMISES WHICH MAY BE OCCUPIED, OPERATED OR CONDUCTED FOR BUSI-
NESS, TRADE OR INDUSTRY OR ON  AN  ARCADE  OR  SUB-SURFACE  THOROUGHFARE
LEADING  TO  A  RAILROAD  TERMINAL. THERE MAY BE NOT MORE THAN ONE ADDI-
TIONAL ENTRANCE WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON  AND
GIVING  ACCESS  TO  AND  FROM A PUBLIC OR PRIVATE PARKING LOT OR PARKING
AREA HAVING SPACE FOR NOT LESS THAN FIVE AUTOMOBILES.
  3. NO MARIHUANA RETAIL LICENSE SHALL BE GRANTED FOR ANY PREMISES WHICH
A LICENSE WOULD NOT BE ALLOWED TO SELL  AT  RETAIL  FOR  CONSUMPTION  OF
ALCOHOL  OFF  THE PREMISES BASED ON ITS PROXIMITY TO A BUILDING OCCUPIED

S. 3040                            25

EXCLUSIVELY AS A SCHOOL, CHURCH, SYNAGOGUE OR  OTHER  PLACE  OF  WORSHIP
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4.  NO  MARIHUANA  RETAIL  LICENSEE SHALL OFFER FOR SALE ANY MARIHUANA
PRODUCTS IN ANY OTHER CONTAINER, EXCEPT IN THE ORIGINAL SEALED  PACKAGE,
AS  RECEIVED  FROM THE PRODUCER OR PROCESSOR. SUCH CONTAINERS SHALL HAVE
AFFIXED THERETO SUCH LABELS AS MAY BE  REQUIRED  BY  THE  RULES  OF  THE
LIQUOR AUTHORITY, TOGETHER WITH ALL NEW YORK STATE EXCISE TAX STAMPS, AS
REQUIRED  BY  LAW.  SUCH CONTAINERS SHALL NOT BE OPENED NOR ITS CONTENTS
CONSUMED ON THE PREMISES WHERE SOLD.
  5. NO MARIHUANA RETAIL  LICENSEE  SHALL  SELL  OR  TRANSFER  MARIHUANA
PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
  6.  NO MARIHUANA RETAIL LICENSEE SHALL SELL ALCOHOLIC BEVERAGES ON THE
SAME PREMISES WHERE MARIHUANA PRODUCTS ARE SOLD.
  7. EACH PERSON LICENSED AS A MARIHUANA RETAILER SHALL HAVE PAINTED  ON
THE  FRONT  WINDOW  OF  THE  LICENSED PREMISES, THE NAME OF THE LICENSEE
TOGETHER WITH THE INSCRIPTION, "NEW YORK STATE  RETAIL  MARIHUANA  STORE
LICENSE  NUMBER  .........,"  AS THE CASE MAY BE, IN UNIFORM LETTERS NOT
LESS THAN THREE AND ONE-HALF INCHES IN HEIGHT.
  8. NO SIGN OF ANY KIND PRINTED, PAINTED OR ELECTRIC,  ADVERTISING  ANY
BRAND  SHALL  BE PERMITTED ON THE EXTERIOR OR INTERIOR OF SUCH PREMISES,
EXCEPT BY PERMISSION OF THE LIQUOR AUTHORITY.
  9. NO RETAIL LICENSEE SHALL TRANSPORT MARIHUANA PRODUCTS IN ANY  VEHI-
CLE  OWNED  AND  OPERATED OR HIRED AND OPERATED BY SUCH RETAIL LICENSEE,
EXCEPT PRODUCTS TRANSPORTED TO THE HOME OF A PURCHASER NOT TO BE  RESOLD
BY  THE  PURCHASER,  UNLESS THERE SHALL BE ATTACHED TO OR INSCRIBED UPON
BOTH SIDES OF SUCH VEHICLE A SIGN, SHOWING THE NAME AND ADDRESS  OF  THE
LICENSEE TOGETHER WITH THE FOLLOWING INSCRIPTION, "NEW YORK STATE RETAIL
MARIHUANA STORE LICENSE NUMBER. . . . . . . . . . ," AS THE CASE MAY BE,
IN  UNIFORM  LETTERS  NOT LESS THAN THREE AND ONE-HALF INCHES IN HEIGHT,
EXCEPT DELIVERIES MAY BE MADE IN PASSENGER TYPE VEHICLES  OWNED  BY  THE
LICENSEE  AND  OPERATED BY THE LICENSEE OR HIS OR HER AGENT, OR HIRED BY
THE LICENSEE AND OPERATED BY THE LICENSEE OR HIS OR HER AGENT,  PROVIDED
THE  PERSON  MAKING THE DELIVERY SHALL HAVE UPON HIS OR HER PERSON WHILE
SO DELIVERING A PHOTOSTATIC COPY OF THE CURRENT LICENSE  ISSUED  BY  THE
AUTHORITY.  IN  LIEU OF SUCH SIGN, A RETAIL LICENSEE MAY HAVE IN THE CAB
OF SUCH VEHICLE A PHOTOSTATIC COPY OF ITS CURRENT LICENSE ISSUED BY  THE
AUTHORITY, AND SUCH COPY DULY AUTHENTICATED BY THE AUTHORITY.
  10.  NO RETAIL LICENSEE SHALL DELIVER ANY MARIHUANA PRODUCTS EXCEPT IN
VEHICLES OWNED AND OPERATED BY SUCH LICENSEE, OR HIRED AND  OPERATED  BY
SUCH  LICENSEE FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED WITH
THE LIQUOR AUTHORITY, AND SHALL ONLY MAKE SUCH DELIVERIES AT  THE  PREM-
ISES OF THE PURCHASER.
  11.  NO  RETAIL  LICENSEE  SHALL  KEEP  OR  PERMIT TO BE KEPT UPON THE
LICENSED PREMISES, ANY MARIHUANA PRODUCTS IN ANY UNSEALED CONTAINER.
  12. NO RETAIL LICENSEE SHALL SELL OR DELIVER ANY MARIHUANA PRODUCTS TO
ANY PERSON WITH KNOWLEDGE OF, OR WITH REASONABLE CAUSE TO BELIEVE,  THAT
THE  PERSON  TO  WHOM SUCH MARIHUANA PRODUCTS, HAS ACQUIRED THE SAME FOR
THE PURPOSE OF PEDDLING THEM FROM PLACE  TO  PLACE,  OR  OF  SELLING  OR
GIVING  THEM  AWAY  IN VIOLATION OF THE PROVISIONS OF THIS CHAPTER OR IN
VIOLATION OF THE RULES AND REGULATIONS OF THE LIQUOR AUTHORITY.
  13. NO PREMISES LICENSED AS A MARIHUANA RETAILER SHALL BE PERMITTED TO
REMAIN OPEN DURING A TIME WHEN A PREMISES LICENSED TO SELL LIQUOR AND/OR
WINE FOR OFF-PREMISES CONSUMPTION IS NOT PERMITTED TO REMAIN OPEN PURSU-
ANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  14. EACH MARIHUANA RETAIL LICENSEE SHALL KEEP AND  MAINTAIN  UPON  THE
LICENSED  PREMISES,  ADEQUATE  BOOKS  AND  RECORDS  OF  ALL TRANSACTIONS

S. 3040                            26

INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE, WHICH SHALL SHOW THE
AMOUNT OF MARIHUANA PRODUCTS, PURCHASED BY SUCH LICENSEE  TOGETHER  WITH
THE  NAMES,  LICENSE  NUMBERS AND PLACES OF BUSINESS OF THE PERSONS FROM
WHOM THE SAME WERE PURCHASED, AND THE AMOUNT INVOLVED IN SUCH PURCHASES,
AS  WELL AS THE AMOUNT OF MARIHUANA PRODUCTS, SOLD BY SUCH LICENSEE, AND
THE AMOUNT INVOLVED IN EACH SALE. SUCH BOOKS AND RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY  ANY  AUTHORIZED  REPRESENTATIVE  OF  THE  LIQUOR
AUTHORITY.
  15.  NO  MARIHUANA  RETAIL  LICENSEE  SHALL BE INTERESTED, DIRECTLY OR
INDIRECTLY, IN ANY PREMISES WHERE MARIHUANA  PRODUCTS  ARE  PRODUCED  OR
PROCESSED  OR  ANY  OTHER  PREMISES WHERE MARIHUANA PRODUCTS ARE SOLD AT
RETAIL, BY STOCK OWNERSHIP, INTERLOCKING DIRECTORS, MORTGAGE OR LIEN  ON
ANY PERSONAL OR REAL PROPERTY OR BY ANY OTHER MEANS.
  16.  NO  MARIHUANA  RETAIL LICENSEE SHALL MAKE OR CAUSE TO BE MADE ANY
LOAN TO ANY PERSON ENGAGED IN THE  PRODUCTION,  PROCESSING  OR  SALE  OF
MARIHUANA PRODUCTS.
  17.  ALL  PREMISES  LICENSED  UNDER  THIS  SECTION SHALL BE SUBJECT TO
INSPECTION BY ANY PEACE OFFICER DESCRIBED IN SUBDIVISION FOUR OF SECTION
2.10 OF THE CRIMINAL PROCEDURE LAW ACTING PURSUANT TO HIS OR HER SPECIAL
DUTIES, OR POLICE OFFICER OR ANY DULY AUTHORIZED REPRESENTATIVE  OF  THE
LIQUOR  AUTHORITY,  DURING THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR
THE TRANSACTION OF BUSINESS.
  § 174. PROVISIONS GOVERNING MARIHUANA  RETAILERS  FOR  CONSUMPTION  ON
PREMISES.  1.  NO MARIHUANA RETAILER LICENSE FOR CONSUMPTION ON PREMISES
SHALL BE GRANTED FOR A PREMISES LOCATED IN WHOLE OR IN PART  INSIDE  THE
BOUNDARIES  OF  ANY  CITY, VILLAGE OR TOWN, UNLESS THE LOCAL LEGISLATIVE
BODY OF SUCH CITY, VILLAGE OR TOWN, BY RESOLUTION, EXPRESSLY  AUTHORIZES
THE  LICENSING  OF  SUCH  FACILITIES  IN SUCH CITY, VILLAGE OR TOWN. THE
LOCAL LEGISLATIVE BODY MAY DIRECT AN APPROPRIATE OFFICER, BOARD OR  BODY
OF  SUCH  CITY,  VILLAGE  OR  TOWN  AS  THE LOCAL LICENSING AUTHORITY TO
AUTHORIZE INDIVIDUAL MARIHUANA FACILITY LICENSE APPLICATIONS. IN  CITIES
OF  ONE  MILLION  OR  MORE  RESIDENTS, SHOULD THE LOCAL LEGISLATIVE BODY
AUTHORIZE SUCH LICENSE, NO MARIHUANA RETAILER LICENSE FOR CONSUMPTION ON
PREMISES SHALL BE GRANTED UNLESS THE COMMUNITY BOARD ESTABLISHED  PURSU-
ANT  TO  SECTION  TWENTY-EIGHT HUNDRED OF THE NEW YORK CITY CHARTER WITH
JURISDICTION OVER THE AREA IN WHICH THE PREMISES WILL BE  LOCATED  SHALL
ALSO AUTHORIZE SUCH LICENSE.
  2.  NO MARIHUANA RETAILER LICENSE FOR ON-PREMISES CONSUMPTION SHALL BE
GRANTED FOR ANY PREMISES, UNLESS THE APPLICANT SHALL BE THE OWNER THERE-
OF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A LEASE,  IN  WRIT-
ING,  FOR  A TERM NOT LESS THAN THE LICENSE PERIOD EXCEPT, HOWEVER, THAT
SUCH LICENSE MAY THEREAFTER BE RENEWED  WITHOUT  THE  REQUIREMENT  OF  A
LEASE  AS  HEREIN PROVIDED. THIS SUBDIVISION SHALL NOT APPLY TO PREMISES
LEASED FROM GOVERNMENT AGENCIES, AS DEFINED UNDER  SUBDIVISION  TWELVE-C
OF  SECTION THREE OF THIS CHAPTER; PROVIDED, HOWEVER, THAT THE APPROPRI-
ATE ADMINISTRATOR OF SUCH GOVERNMENT AGENCY PROVIDES SOME FORM OF  WRIT-
TEN  DOCUMENTATION  REGARDING  THE  TERMS  OF  OCCUPANCY UNDER WHICH THE
APPLICANT IS LEASING SAID PREMISES FROM THE GOVERNMENT AGENCY FOR  PRES-
ENTATION TO THE STATE LIQUOR AUTHORITY AT THE TIME OF THE LICENSE APPLI-
CATION.  SUCH DOCUMENTATION SHALL INCLUDE THE TERMS OF OCCUPANCY BETWEEN
THE APPLICANT AND THE GOVERNMENT AGENCY, INCLUDING, BUT NOT LIMITED  TO,
ANY SHORT-TERM LEASING AGREEMENTS OR WRITTEN OCCUPANCY AGREEMENTS.
  3.  NO MARIHUANA RETAILER LICENSE FOR ON-PREMISES CONSUMPTION SHALL BE
GRANTED FOR ANY PREMISES WHERE A LICENSE WOULD NOT BE ALLOWED TO SELL AT
RETAIL FOR CONSUMPTION OF ALCOHOL ON THE PREMISES BASED ON ITS PROXIMITY
TO A BUILDING OCCUPIED EXCLUSIVELY AS A  SCHOOL,  CHURCH,  SYNAGOGUE  OR

S. 3040                            27

OTHER PLACE OF WORSHIP PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED
FIVE OF THIS CHAPTER.
  4. THE AUTHORITY MAY CONSIDER ANY OR ALL OF THE FOLLOWING IN DETERMIN-
ING  WHETHER  PUBLIC  CONVENIENCE  AND ADVANTAGE AND THE PUBLIC INTEREST
WILL BE PROMOTED BY THE GRANTING OF  LICENSES  AND  PERMITS  FOR  RETAIL
LICENSE FOR ON-PREMISES CONSUMPTION AT A PARTICULAR UNLICENSED LOCATION:
  (A)  THE NUMBER, CLASSES AND CHARACTER OF LICENSES IN PROXIMITY TO THE
LOCATION AND IN THE PARTICULAR MUNICIPALITY OR SUBDIVISION THEREOF.
  (B) EVIDENCE  THAT  ALL  NECESSARY  LICENSES  AND  PERMITS  HAVE  BEEN
OBTAINED FROM THE STATE AND ALL OTHER GOVERNING BODIES.
  (C)  EFFECT OF THE GRANT OF THE LICENSE ON VEHICULAR TRAFFIC AND PARK-
ING IN PROXIMITY TO THE LOCATION.
  (D) THE EXISTING NOISE LEVEL AT THE LOCATION AND ANY INCREASE IN NOISE
LEVEL THAT WOULD BE GENERATED BY THE PROPOSED PREMISES.
  (E) THE HISTORY OF MARIHUANA VIOLATIONS AND REPORTED CRIMINAL ACTIVITY
AT THE PROPOSED PREMISES.
  (F) ANY OTHER FACTORS SPECIFIED BY LAW OR REGULATION THAT ARE RELEVANT
TO DETERMINE THE PUBLIC CONVENIENCE AND ADVANTAGE AND PUBLIC INTEREST OF
THE COMMUNITY.
  5. IF THE AUTHORITY SHALL DISAPPROVE AN APPLICATION FOR A  LICENSE  OR
PERMIT,  IT SHALL STATE AND FILE IN ITS OFFICES THE REASONS THEREFOR AND
SHALL NOTIFY THE APPLICANT THEREOF. SUCH APPLICANT MAY  THEREUPON  APPLY
TO  THE  AUTHORITY  FOR  A  REVIEW  OF  SUCH  ACTION  IN  A MANNER TO BE
PRESCRIBED BY THE RULES OF THE AUTHORITY. A HEARING UPON NOTICE  TO  THE
APPLICANT  SHALL  THEREUPON  BE  HELD  BY THE AUTHORITY OR BY ONE OF ITS
MEMBERS AT ITS OFFICE MOST CONVENIENTLY SITUATED TO THE  OFFICE  OF  ITS
DULY  AUTHORIZED  REPRESENTATIVE  IN  A  MANNER  TO BE PRESCRIBED IN ITS
RULES; AND ON SUCH HEARING PROOF MAY BE TAKEN BY ORAL  TESTIMONY  OR  BY
AFFIDAVIT  RELATIVE  THERETO.  AFTER  SUCH  HEARING,  IF  THE  AUTHORITY
CONFIRMS SUCH DISAPPROVAL, IT SHALL ENDORSE SUCH APPLICATION ACCORDINGLY
AND SHALL SEND NOTICE TO THE APPLICANT OF ITS ACTION IN SUCH FORM AS THE
AUTHORITY MAY PRESCRIBE. IF THE AUTHORITY DOES NOT  CONFIRM  THE  DISAP-
PROVAL ACTION IT MAY GRANT SUCH APPLICATION AND ISSUE SUCH LICENSE.
  6.  NO  MARIHUANA  RETAIL LICENSEE FOR ON-PREMISES CONSUMPTION, EXCEPT
PERSONS OR CORPORATIONS OPERATING A HOTEL,  AS  DEFINED  IN  SUBDIVISION
FOURTEEN  OF  SECTION  THREE  OF  THIS CHAPTER, FOR EXCLUSIVE USE IN THE
FURNISHING OF ROOM SERVICE IN THE MANNER PRESCRIBED  BY  RULE  OR  REGU-
LATION OF THE STATE LIQUOR AUTHORITY, SHALL KEEP UPON THE LICENSED PREM-
ISES  ANY  MARIHUANA  PRODUCTS,  EXCEPT  THOSE PURCHASED FROM A LICENSED
PRODUCER, AND IN CONTAINERS  APPROVED  BY  THE  LIQUOR  AUTHORITY.  SUCH
CONTAINERS  SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE REQUIRED BY
THE RULES OF THE LIQUOR AUTHORITY, TOGETHER WITH  ALL  NECESSARY  EXCISE
STAMPS  AS REQUIRED BY LAW. NO MARIHUANA RETAIL LICENSEE FOR ON-PREMISES
CONSUMPTION SHALL REUSE, REFILL,  TAMPER  WITH,  ADULTERATE,  DILUTE  OR
FORTIFY  THE CONTENTS OF ANY CONTAINER OF MARIHUANA PRODUCTS AS RECEIVED
FROM THE MANUFACTURER OR WHOLESALER.
  7. NO MARIHUANA RETAIL  LICENSEE  FOR  ON-PREMISES  CONSUMPTION  SHALL
SELL,  DELIVER  OR  GIVE AWAY, OR CAUSE OR PERMIT OR PROCURE TO BE SOLD,
DELIVERED OR GIVEN AWAY ANY MARIHUANA FOR CONSUMPTION  ON  THE  PREMISES
WHERE  SOLD  IN  A CONTAINER OR PACKAGE CONTAINING MORE THAN ONE GRAM OF
MARIHUANA.
  8. NO MARIHUANA PRODUCTS SHALL BE SOLD, OFFERED FOR SALE OR GIVEN AWAY
UPON ANY PREMISES LICENSED TO SELL MARIHUANA  PRODUCTS  FOR  ON-PREMISES
CONSUMPTION,  DURING  THE  FOLLOWING  HOURS:  (A) SUNDAY, FROM FOUR ANTE
MERIDIEM TO TWELVE NOON; OR (B) ON ANY OTHER DAY BETWEEN FOUR ANTE MERI-
DIEM AND EIGHT ANTE MERIDIEM. IF  APPROVED  BY  THE  AUTHORITY  OR  RULE

S. 3040                            28

HAVING  BEEN  ADOPTED IN A COUNTY, FURTHER RESTRICTIONS OF HOURS OF SALE
FOR MARIHUANA PRODUCTS SHALL BE ENFORCEABLE, SUCH RESTRICTED HOURS SHALL
BE THE HOURS, DURING WHICH THE SALE OF MARIHUANA PRODUCTS FOR ON-PREMIS-
ES  CONSUMPTION SHALL NOT BE PERMITTED WITHIN SUCH COUNTY. NOR SHALL ANY
PERSON BE PERMITTED TO CONSUME ANY  MARIHUANA  PRODUCTS  UPON  ANY  SUCH
PREMISES  LATER  THAN  ONE-HALF  HOUR  AFTER THE START OF THE PROHIBITED
HOURS OF SALE PROVIDED FOR IN THIS SECTION.
  9. NO PERSON LICENSED  TO  SELL  MARIHUANA  PRODUCTS  FOR  ON-PREMISES
CONSUMPTION  SHALL  SUFFER  OR PERMIT ANY GAMBLING ON THE LICENSED PREM-
ISES, OR SUFFER OR PERMIT SUCH PREMISES TO BECOME DISORDERLY. THE USE OF
THE LICENSED PREMISES, OR ANY PART THEREOF,  FOR  THE  SALE  OF  LOTTERY
TICKETS, PLAYING OF BINGO OR GAMES OF CHANCE, OR AS A SIMULCAST FACILITY
OR  SIMULCAST  THEATER  PURSUANT TO THE RACING, PARI-MUTUEL WAGERING AND
BREEDING LAW, WHEN DULY AUTHORIZED AND LAWFULLY CONDUCTED THEREON, SHALL
NOT CONSTITUTE GAMBLING WITHIN THE MEANING OF THIS SUBDIVISION.
  (A) NO MARIHUANA RETAIL LICENSEE  FOR  ON-PREMISES  CONSUMPTION  SHALL
SUFFER  OR  PERMIT  ANY  PERSON  TO  APPEAR ON LICENSED PREMISES IN SUCH
MANNER OR ATTIRE AS TO EXPOSE TO VIEW ANY PORTION  OF  THE  PUBIC  AREA,
ANUS,  VULVA OR GENITALS, OR ANY SIMULATION THEREOF, NOR SHALL SUFFER OR
PERMIT ANY FEMALE TO APPEAR ON  LICENSED  PREMISES  IN  SUCH  MANNER  OR
ATTIRE  AS  TO EXPOSE TO VIEW ANY PORTION OF THE BREAST BELOW THE TOP OF
THE AREOLA, OR ANY SIMULATION THEREOF.
  (B) NO RETAIL  LICENSEE  FOR  ON-PREMISES  CONSUMPTION  SHALL  SUFFER,
PERMIT  OR  PROMOTE  AN  EVENT  ON  ITS PREMISES WHEREIN THE CONTESTANTS
DELIVER, OR ARE NOT FORBIDDEN  BY  THE  APPLICABLE  RULES  THEREOF  FROM
DELIVERING  KICKS,  PUNCHES OR BLOWS OF ANY KIND TO THE BODY OF AN OPPO-
NENT OR OPPONENTS, WHETHER OR NOT THE EVENT CONSISTS OF  A  PROFESSIONAL
MATCH  OR  EXHIBITION,  AND WHETHER OR NOT THE EVENT OR ANY SUCH ACT, OR
BOTH, IS DONE FOR COMPENSATION; PROVIDED, HOWEVER, THAT THIS PROHIBITION
SHALL NOT BE APPLIED TO  ANY  PROFESSIONAL  MATCH  OR  EXHIBITION  WHICH
CONSISTS  OF  BOXING,  SPARRING, WRESTLING, OR MARTIAL ARTS AND WHICH IS
EXCEPTED FROM THE DEFINITION OF THE TERM "COMBATIVE SPORT" CONTAINED  IN
SUBDIVISION  ONE OF SECTION FIVE-A OF CHAPTER NINE HUNDRED TWELVE OF THE
LAWS OF NINETEEN HUNDRED TWENTY.
  (C) IN ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW, A  VIOLATION  OF
THIS  SUBDIVISION  SHALL CONSTITUTE AN ADEQUATE GROUND FOR INSTITUTING A
PROCEEDING TO SUSPEND, CANCEL OR REVOKE THE LICENSE OF THE  VIOLATOR  IN
ACCORDANCE  WITH  THE  APPLICABLE  PROCEDURES  SPECIFIED  IN SECTION ONE
HUNDRED NINETEEN OF THIS CHAPTER.
  10. EXCEPT WHERE A PERMIT TO DO SO IS  OBTAINED  PURSUANT  TO  SECTION
405.10  OF THE PENAL LAW, NO RETAIL LICENSEE FOR ON-PREMISES CONSUMPTION
SHALL SUFFER, PERMIT, OR PROMOTE AN EVENT ON ITS  PREMISES  WHEREIN  ANY
PERSON  SHALL  USE, EXPLODE, OR CAUSE TO EXPLODE, ANY FIREWORKS OR OTHER
PYROTECHNICS IN A BUILDING AS DEFINED IN PARAGRAPH E OF SUBDIVISION  ONE
OF  SECTION  405.10 OF THE PENAL LAW, THAT IS COVERED BY SUCH LICENSE OR
POSSESS SUCH FIREWORKS OR PYROTECHNICS FOR SUCH PURPOSE. IN ADDITION  TO
ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF THIS SUBDIVISION SHALL
CONSTITUTE  AN  ADEQUATE GROUND FOR INSTITUTING A PROCEEDING TO SUSPEND,
CANCEL, OR REVOKE THE LICENSE OF THE VIOLATOR  IN  ACCORDANCE  WITH  THE
APPLICABLE  PROCEDURES SPECIFIED IN SECTION ONE HUNDRED NINETEEN OF THIS
CHAPTER; PROVIDED HOWEVER, IF MORE THAN ONE LICENSEE IS PARTICIPATING IN
A SINGLE EVENT, UPON APPROVAL BY THE AUTHORITY, ONLY ONE  LICENSEE  MUST
OBTAIN SUCH PERMIT.
  11.  NO RESTAURANT AND NO PREMISES LICENSED TO SELL MARIHUANA PRODUCTS
FOR ON-PREMISES CONSUMPTION UNDER PARAGRAPH (A) OF  SUBDIVISION  SIX  OF
SECTION  SIXTY-FOUR-A  OF  THIS  CHAPTER  SHALL BE PERMITTED TO HAVE ANY

S. 3040                            29

OPENING OR MEANS OF ENTRANCE OR PASSAGEWAY FOR PERSONS OR THINGS BETWEEN
THE LICENSED PREMISES AND ANY  OTHER  ROOM  OR  PLACE  IN  THE  BUILDING
CONTAINING THE LICENSED PREMISES, OR ANY ADJOINING OR ABUTTING PREMISES,
UNLESS  INGRESS  AND  EGRESS  IS RESTRICTED BY AN EMPLOYEE, AGENT OF THE
LICENSEE, OR OTHER APPROVED METHOD OF CONTROLLING ACCESS TO THE  FACILI-
TY,  OR UNLESS SUCH PREMISES ARE A BONA FIDE RESTAURANT WITH SUCH ACCESS
FOR PATRONS AND GUESTS FROM ANY PART OF SUCH BUILDING  OR  ADJOINING  OR
ABUTTING  PREMISES AS SHALL SERVE PUBLIC CONVENIENCE IN A REASONABLE AND
SUITABLE MANNER; OR UNLESS SUCH LICENSED  PREMISES  ARE  IN  A  BUILDING
OWNED OR OPERATED BY ANY COUNTY, TOWN, CITY, VILLAGE OR PUBLIC AUTHORITY
OR AGENCY, IN A PARK OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION. ALL
GLASS IN ANY WINDOW OR DOOR ON SAID LICENSED PREMISES SHALL BE CLEAR AND
SHALL NOT BE OPAQUE, COLORED, STAINED OR FROSTED.
  12.  A  VESSEL  LICENSED  TO  SELL  MARIHUANA PRODUCTS FOR ON-PREMISES
CONSUMPTION SHALL NOT BE PERMITTED TO SELL ANY MARIHUANA PRODUCTS, WHILE
SAID VESSEL IS MOORED TO A PIER OR DOCK, EXCEPT THAT VESSELS SAILING  ON
ESTABLISHED  SCHEDULES SHALL BE PERMITTED TO SELL MARIHUANA PRODUCTS FOR
A PERIOD OF THREE HOURS PRIOR TO THE REGULAR ADVERTISED SAILING TIME.
  13. EACH RETAIL LICENSEE FOR ON-PREMISES CONSUMPTION  SHALL  KEEP  AND
MAINTAIN  UPON  THE  LICENSED  PREMISES,  ADEQUATE RECORDS OF ALL TRANS-
ACTIONS INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE  WHICH  SHALL
SHOW  THE AMOUNT OF MARIHUANA PRODUCTS, IN AN APPLICABLE METRIC MEASURE-
MENT, PURCHASED BY  SUCH  LICENSEE  TOGETHER  WITH  THE  NAMES,  LICENSE
NUMBERS  AND  PLACES  OF BUSINESS OF THE PERSONS FROM WHOM THE SAME WERE
PURCHASED, THE AMOUNT INVOLVED IN SUCH PURCHASES, AS WELL AS  THE  SALES
OF  MARIHUANA  PRODUCTS  MADE  BY SUCH LICENSEE. THE LIQUOR AUTHORITY IS
HEREBY AUTHORIZED TO PROMULGATE  RULES  AND  REGULATIONS  PERMITTING  AN
ON-PREMISES  LICENSEE OPERATING TWO OR MORE PREMISES SEPARATELY LICENSED
TO SELL MARIHUANA PRODUCTS FOR ON-PREMISES CONSUMPTION TO INAUGURATE  OR
RETAIN  IN  THIS  STATE  METHODS OR PRACTICES OF CENTRALIZED ACCOUNTING,
BOOKKEEPING, CONTROL RECORDS, REPORTING, BILLING, INVOICING  OR  PAYMENT
RESPECTING  PURCHASES,  SALES  OR  DELIVERIES  OF MARIHUANA PRODUCTS, OR
METHODS AND PRACTICES OF CENTRALIZED RECEIPT  OR  STORAGE  OF  MARIHUANA
PRODUCTS  WITHIN  THIS  STATE  WITHOUT SEGREGATION OR EARMARKING FOR ANY
SUCH SEPARATELY LICENSED PREMISES, WHEREVER SUCH METHODS  AND  PRACTICES
ASSURE  THE  AVAILABILITY,  AT SUCH LICENSEE'S CENTRAL OR MAIN OFFICE IN
THIS STATE, OF DATA REASONABLY NEEDED FOR THE ENFORCEMENT OF THIS  CHAP-
TER.  SUCH  RECORDS  SHALL BE AVAILABLE FOR INSPECTION BY ANY AUTHORIZED
REPRESENTATIVE OF THE LIQUOR AUTHORITY.
  14. NO RETAIL LICENSEE FOR ON-PREMISES  CONSUMPTION  SHALL  BE  INTER-
ESTED,  DIRECTLY OR INDIRECTLY, IN ANY PREMISES WHERE MARIHUANA PRODUCTS
ARE MANUFACTURED OR SOLD AT WHOLESALE, BY STOCK OWNERSHIP,  INTERLOCKING
DIRECTORS,  MORTGAGE  OR LIEN ON ANY PERSONAL OR REAL PROPERTY OR BY ANY
OTHER MEANS.
  15. NO RETAIL LICENSEE FOR ON-PREMISES CONSUMPTION SHALL MAKE OR CAUSE
TO BE MADE ANY LOAN TO ANY PERSON ENGAGED IN THE MANUFACTURE OR SALE  OF
MARIHUANA PRODUCTS AT WHOLESALE.
  16. ALL RETAIL LICENSED PREMISES SHALL BE SUBJECT TO INSPECTION BY ANY
PEACE  OFFICER,  ACTING PURSUANT TO HIS OR HER SPECIAL DUTIES, OR POLICE
OFFICER AND BY THE DULY AUTHORIZED REPRESENTATIVES OF THE LIQUOR AUTHOR-
ITY, DURING THE HOURS WHEN THE SAID PREMISES ARE  OPEN  FOR  THE  TRANS-
ACTION OF BUSINESS.
  17.  A  RETAIL  LICENSEE FOR ON-PREMISES CONSUMPTION SHALL NOT PROVIDE
MARIHUANA PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE OR  TO  ANY
PERSON WHO IS VISIBLY IMPAIRED.

S. 3040                            30

  §  175.  ADVERTISING  AND  FORMS  OF  THE ISSUANCE OF LICENSES. 1. THE
LIQUOR AUTHORITY IS HEREBY AUTHORIZED  TO  PROMULGATE  RULES  AND  REGU-
LATIONS  GOVERNING  THE  ADVERTISING  OF  MARIHUANA PRODUCERS, MARIHUANA
PROCESSORS, MARIHUANA RETAILERS, AND ANY MARIHUANA RELATED  PRODUCTS  OR
SERVICES.
  2.  THE  LIQUOR  AUTHORITY SHALL PROMULGATE EXPLICIT RULES PROHIBITING
ADVERTISING THAT:
  (A) IS FALSE, DECEPTIVE, OR MISLEADING;
  (B) PROMOTES OVERCONSUMPTION;
  (C) DEPICTS CONSUMPTION BY CHILDREN OR OTHER MINORS;
  (D) IS DESIGNED IN ANY WAY TO APPEAL TO CHILDREN OR OTHER MINORS;
  (E) IS WITHIN TWO HUNDRED FEET OF THE PERIMETER OF A  SCHOOL  GROUNDS,
PLAYGROUND, CHILD CARE CENTER, PUBLIC PARK, OR LIBRARY;
  (F) IS IN PUBLIC TRANSIT VEHICLES AND STATIONS;
  (G) IS IN THE FORM OF AN UNSOLICITED INTERNET POP-UP; OR
  (H) IS ON PUBLICLY OWNED OR OPERATED PROPERTY.
  §  176.  PACKAGING  OF  MARIHUANA PRODUCTS. 1. THE LIQUOR AUTHORITY IS
HEREBY AUTHORIZED TO PROMULGATE  RULES  AND  REGULATIONS  GOVERNING  THE
PACKAGING  OF MARIHUANA PRODUCTS, SOLD OR POSSESSED FOR SALE IN NEW YORK
STATE.
  2. SUCH REGULATIONS SHALL INCLUDE REQUIRING PACKAGING MEETING REQUIRE-
MENTS SIMILAR TO THE FEDERAL "POISON PREVENTION PACKAGING ACT OF  1970,"
15 U.S.C. SEC 1471 ET SEQ.
  3.  SUCH REGULATIONS SHALL REQUIRE THAT ALL MARIHUANA INFUSED PRODUCTS
SHALL HAVE SEPARATE PACKAGING FOR EACH SERVING.
  § 177. LABELING OF MARIHUANA PRODUCTS.  1.  THE  LIQUOR  AUTHORITY  IS
HEREBY  AUTHORIZED  TO  PROMULGATE  RULES  AND REGULATIONS GOVERNING THE
LABELING AND OFFERING OF MARIHUANA PRODUCTS FOR SALE WITHIN THIS STATE.
  2. SUCH RULES AND REGULATIONS SHALL BE  CALCULATED  TO:  (A)  PROHIBIT
DECEPTION OF THE CONSUMER; (B) AFFORD ADEQUATE INFORMATION AS TO QUALITY
AND IDENTITY OF THE PRODUCT; AND (C) ACHIEVE NATIONAL UNIFORMITY IN THIS
BUSINESS.
  3.  THE  LIQUOR AUTHORITY MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF
HEALTH WHEN NECESSARY BEFORE PROMULGATING RULES  AND  REGULATIONS  UNDER
THIS SECTION.
  4.  SUCH  REGULATIONS SHALL INCLUDE REQUIRING LABELS WARNING CONSUMERS
OF ANY POTENTIAL IMPACT ON HUMAN HEALTH RESULTING FROM  THE  CONSUMPTION
OF MARIHUANA PRODUCTS THAT SHALL BE AFFIXED TO THOSE PRODUCTS WHEN SOLD,
IF  SUCH LABELS ARE DEEMED WARRANTED BY THE AUTHORITY AFTER CONSULTATION
WITH THE DEPARTMENT OF HEALTH.
  5. SUCH RULES AND REGULATIONS SHALL ESTABLISH METHODS  AND  PROCEDURES
FOR  DETERMINING  SERVING  SIZES  FOR MARIHUANA-INFUSED PRODUCTS, ACTIVE
CANNABIS CONCENTRATION PER SERVING SIZE,  AND  NUMBER  OF  SERVINGS  PER
CONTAINER.  SUCH REGULATIONS SHALL ALSO REQUIRE A NUTRITIONAL FACT PANEL
THAT INCORPORATES DATA REGARDING SERVING SIZES AND POTENCY THEREOF.
  6. SUCH RULES AND REGULATIONS SHALL REQUIRE INFORMATION CONTAINING THE
LICENSE NUMBER OF THE MARIHUANA PRODUCER AND PROCESSOR FACILITIES  WHERE
THE MARIHUANA WAS GROWN AND PROCESSED.
  7.  SUCH  RULES  AND  REGULATIONS SHALL REQUIRE A COMPLETE LIST OF ALL
NONORGANIC PESTICIDES, FUNGICIDES, AND HERBICIDES USED DURING THE CULTI-
VATION OF THE MARIHUANA.
  8. SUCH RULES AND REGULATIONS  SHALL  REQUIRE  A  CANNABINOID  POTENCY
PROFILE EXPRESSED AS A RANGE OF PERCENTAGES THAT EXTENDS FROM THE LOWEST
PERCENTAGE  TO  HIGHEST PERCENTAGE OF CONCENTRATION FOR EACH CANNABINOID
LISTED FROM EVERY TEST CONDUCTED ON  THAT  STRAIN  OF  RETAIL  MARIHUANA
CULTIVATED BY THE SAME MARIHUANA PRODUCER WITHIN THE LAST THREE MONTHS.

S. 3040                            31

  9. THE PACKAGING, SALE, OR POSSESSION BY ANY LICENSEE OF ANY MARIHUANA
PRODUCT  NOT LABELED OR OFFERED IN CONFORMITY WITH RULES AND REGULATIONS
PROMULGATED IN ACCORDANCE WITH THIS SECTION SHALL  BE  GROUNDS  FOR  THE
IMPOSITION  OF A FINE, AND/OR THE SUSPENSION, REVOCATION OR CANCELLATION
OF THE LICENSE.
  §  178.  RENEWALS OF LICENSES AND PERMITS. 1. EACH LICENSE AND PERMIT,
ISSUED PURSUANT TO THIS CHAPTER MAY BE RENEWED UPON APPLICATION THEREFOR
BY THE LICENSEE OR PERMITTEE AND THE PAYMENT OF THE ANNUAL FEE FOR  SUCH
LICENSE OR PERMIT AS PRESCRIBED BY THIS CHAPTER. IN THE CASE OF APPLICA-
TIONS  FOR RENEWALS, THE LIQUOR AUTHORITY MAY DISPENSE WITH THE REQUIRE-
MENTS OF SUCH STATEMENTS AS  IT  DEEMS  UNNECESSARY  IN  VIEW  OF  THOSE
CONTAINED  IN  THE  APPLICATION MADE FOR THE ORIGINAL LICENSE OR PERMIT,
BUT IN ANY EVENT THE SUBMISSION OF PHOTOGRAPHS OF THE LICENSED  PREMISES
SHALL  BE  DISPENSED WITH, PROVIDED THE APPLICANT FOR SUCH RENEWAL SHALL
FILE A STATEMENT WITH SUCH AUTHORITY TO THE EFFECT THAT THERE  HAS  BEEN
NO  ALTERATION  OF  SUCH PREMISES SINCE THE ORIGINAL LICENSE WAS ISSUED.
THE LIQUOR AUTHORITY MAY MAKE SUCH RULES AS MAY BE NECESSARY NOT  INCON-
SISTENT  WITH  THIS  CHAPTER  REGARDING  APPLICATIONS  FOR  RENEWALS  OF
LICENSES AND PERMITS AND THE TIME FOR MAKING THE SAME.
  2. THE AUTHORITY SHALL PROVIDE AN APPLICATION FOR RENEWAL OF A LICENSE
ISSUED UNDER THIS ARTICLE NOT LESS THAN SIXTY DAYS PRIOR TO THE  EXPIRA-
TION OF THE CURRENT LICENSE.
  §  179.  INFORMATION  TO  BE REQUESTED IN APPLICATIONS FOR LICENSES OR
PERMITS. 1. THE FOLLOWING SHALL BE THE INFORMATION REQUIRED ON AN APPLI-
CATION FOR A LICENSE OR PERMIT:
  (A) A STATEMENT OF IDENTITY AS FOLLOWS:
  (I) IF THE APPLICANT IS AN INDIVIDUAL, HIS OR HER NAME, DATE AND PLACE
OF BIRTH, CITIZENSHIP, PERMANENT  HOME  ADDRESS,  TELEPHONE  NUMBER  AND
SOCIAL  SECURITY  NUMBER,  AS WELL AS ANY OTHER NAMES BY WHICH HE OR SHE
HAS CONDUCTED A BUSINESS AT ANY TIME.
  (II) IF THE APPLICANT IS A CORPORATION,  THE  CORPORATE  NAME  OF  THE
APPLICANT, ITS PLACE OF INCORPORATION, ITS MAIN BUSINESS ADDRESS (AND IF
SUCH  MAIN  BUSINESS ADDRESS IS NOT WITHIN THE STATE, THE ADDRESS OF ITS
MAIN PLACE OF BUSINESS WITHIN THE STATE), OTHER NAMES BY  WHICH  IT  HAS
BEEN  KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELEPHONE NUMBER,
ITS FEDERAL EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES,  AGES,  CITI-
ZENSHIP, AND PERMANENT HOME ADDRESSES OF ITS DIRECTORS, OFFICERS AND ITS
SHAREHOLDERS  (EXCEPT  THAT  IF THERE BE MORE THAN TEN SHAREHOLDERS THEN
THOSE SHAREHOLDERS HOLDING TEN PERCENT OR  MORE  OF  ANY  CLASS  OF  ITS
SHARES).
  (III)  IF  THE APPLICANT IS A PARTNERSHIP, ITS NAME, ITS MAIN BUSINESS
ADDRESS (AND IF SUCH MAIN BUSINESS ADDRESS IS NOT WITHIN THE STATE,  THE
ADDRESS  OF ITS MAIN PLACE OF BUSINESS WITHIN THE STATE), OTHER NAMES BY
WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELE-
PHONE NUMBER, ITS FEDERAL EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES,
AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES OF EACH OF ITS PARTNERS.
  (B) A STATEMENT IDENTIFYING THE STREET AND NUMBER OF THE  PREMISES  TO
BE LICENSED, IF THE PREMISES HAS A STREET AND NUMBER, AND OTHERWISE SUCH
DESCRIPTION  AS  WILL  REASONABLY  INDICATE THE LOCALITY THEREOF; PHOTO-
GRAPHS, DRAWINGS OR OTHER ITEMS RELATED TO THE APPEARANCE OF THE INTERI-
OR OR EXTERIOR OF SUCH PREMISES, AND A FLOOR PLAN OF THE INTERIOR, SHALL
BE REQUIRED. THE APPLICANT SHALL ALSO STATE THE NATURE  OF  HIS  OR  HER
INTEREST IN THE PREMISES; AND THE NAME OF ANY OTHER PERSON INTERESTED AS
A  PARTNER, JOINT VENTURER, INVESTOR OR LENDER WITH THE APPLICANT EITHER
IN THE PREMISES OR IN THE BUSINESS TO BE LICENSED.

S. 3040                            32

  (C) A DESCRIPTION OF ANY OTHER MARIHUANA LICENSE OR PERMIT UNDER  THIS
CHAPTER,  WITHIN  THE PAST TEN YEARS, THE APPLICANT (INCLUDING ANY OFFI-
CERS, DIRECTORS, SHAREHOLDERS OR PARTNERS LISTED  IN  THE  STATEMENT  OF
IDENTITY  UNDER  PARAGRAPH  (A) OF THIS SUBDIVISION OR THE SPOUSE OF ANY
SUCH PERSON) OR THE APPLICANT'S SPOUSE HELD OR APPLIED FOR.
  (D)  A STATEMENT THAT SUCH APPLICANT OR THE APPLICANT'S SPOUSE HAS NOT
BEEN CONVICTED OF A CRIME ADDRESSED BY THE  PROVISIONS  OF  SECTION  ONE
HUNDRED  EIGHTY-SEVEN  OF  THIS ARTICLE WHICH WOULD FORBID THE APPLICANT
(INCLUDING ANY OFFICERS, DIRECTORS, SHAREHOLDERS OR PARTNERS  LISTED  IN
THE STATEMENT OF IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION OR THE
SPOUSE  OF SUCH PERSON) OR THE APPLICANT'S SPOUSE TO TRAFFIC IN MARIHUA-
NA, A STATEMENT WHETHER OR NOT THE APPLICANT  (INCLUDING  ANY  OFFICERS,
DIRECTORS,  SHAREHOLDERS OR PARTNERS LISTED IN THE STATEMENT OF IDENTITY
UNDER PARAGRAPH (A) OF THIS  SUBDIVISION  OR  THE  SPOUSE  OF  ANY  SUCH
PERSON)  OR  THE APPLICANT'S SPOUSE IS AN OFFICIAL DESCRIBED IN SUBDIVI-
SION TWO OF SECTION ONE HUNDRED  SIXTY-EIGHT  OF  THIS  ARTICLE,  AND  A
DESCRIPTION  OF  ANY  CRIME  THAT THE APPLICANT (INCLUDING ANY OFFICERS,
DIRECTORS, SHAREHOLDERS OR PARTNERS LISTED UNDER PARAGRAPH (A)  OF  THIS
SUBDIVISION  OR THE SPOUSE OF ANY SUCH PERSON) OR THE APPLICANT'S SPOUSE
HAS BEEN CONVICTED OF AND WHETHER SUCH PERSON  HAS  RECEIVED  A  PARDON,
CERTIFICATE  OF GOOD CONDUCT OR CERTIFICATE OF RELIEF FROM DISABILITIES;
PROVIDED, HOWEVER, THAT NO PERSON SHALL BE DENIED ANY LICENSE SOLELY  ON
THE  GROUNDS  THAT  SUCH  PERSON  IS  THE  SPOUSE  OF A PERSON OTHERWISE
DISQUALIFIED FROM HOLDING A LICENSE UNDER THIS CHAPTER.
  (E) A STATEMENT THAT THE LOCATION AND LAYOUT OF  THE  PREMISES  TO  BE
LICENSED  DOES  NOT  VIOLATE ANY REQUIREMENT OF THIS CHAPTER RELATING TO
LOCATION AND LAYOUT OF LICENSED PREMISES, WITH A COPY OF THE CERTIFICATE
OF OCCUPANCY FOR THE PREMISES.
  (F) A STATEMENT THAT THE APPLICANT HAS CONTROL OF THE PREMISES  TO  BE
LICENSED  BY  OWNERSHIP OF A FEE INTEREST OR VIA A LEASEHOLD, MANAGEMENT
AGREEMENT, OR OTHER AGREEMENT GIVING  THE  APPLICANT  CONTROL  OVER  THE
PREMISES,  WITH  A  TERM  AT  LEAST AS LONG AS THE LICENSE FOR WHICH THE
APPLICATION IS BEING MADE, OR BY A BINDING CONTRACT TO ACQUIRE THE  SAME
AND  A STATEMENT OF IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION FOR
THE LESSOR OF ANY LEASEHOLD, MANAGER OF  ANY  MANAGEMENT  AGREEMENT,  OR
OTHER  AGREEMENT  GIVING THE APPLICANT CONTROL OVER THE PREMISES, WITH A
COPY OF THE LEASE, CONTRACT, MANAGEMENT AGREEMENT,  OR  OTHER  AGREEMENT
GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES,
OR DEED EVIDENCING FEE OWNERSHIP OF THE PREMISES.
  (G)  A  FINANCIAL STATEMENT ADEQUATE TO SHOW ALL PERSONS WHO, DIRECTLY
OR INDIRECTLY HAVE AN ECONOMIC INTEREST IN THE ESTABLISHMENT OR ACQUISI-
TION OF THE BUSINESS FOR WHICH THE  LICENSE  OR  PERMIT  APPLICATION  IS
BEING  MADE,  TO  IDENTIFY  THE  SOURCES  OF FUNDS TO BE APPLIED IN SUCH
ESTABLISHMENT OR ACQUISITION, AND TO DESCRIBE THE TERMS  AND  CONDITIONS
GOVERNING  SUCH ESTABLISHMENT WITH COPIES OF SUCH FINANCIAL DOCUMENTS AS
THE AUTHORITY MAY REASONABLY REQUIRE.
  (H) THE FINGERPRINTS OF THE APPLICANTS. FINGERPRINTS SUBMITTED BY  THE
APPLICANTS  SHALL  BE  TRANSMITTED  TO  THE DIVISION OF CRIMINAL JUSTICE
SERVICES AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR
STATE AND NATIONAL CRIMINAL HISTORY RECORD CHECKS.
  2. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE SIGNED BY THE APPLICANT
(IF AN INDIVIDUAL), BY AN OFFICER (IF A CORPORATION), OR BY ALL PARTNERS
(IF A PARTNERSHIP). EACH PERSON SIGNING SUCH APPLICATION SHALL VERIFY IT
OR AFFIRM IT AS TRUE UNDER THE PENALTIES OF PERJURY.

S. 3040                            33

  3. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE ACCOMPANIED BY A CHECK,
DRAFT OR OTHER FORMS OF PAYMENT AS THE AUTHORITY MAY REQUIRE OR  AUTHOR-
IZE IN THE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE OR PERMIT.
  4.  IF THERE BE ANY CHANGE, AFTER THE FILING OF THE APPLICATION OR THE
GRANTING OF A LICENSE, IN ANY OF THE FACTS REQUIRED TO BE SET  FORTH  IN
SUCH APPLICATION, A SUPPLEMENTAL STATEMENT GIVING NOTICE OF SUCH CHANGE,
COST AND SOURCE OF MONEY INVOLVED IN THE CHANGE, DULY VERIFIED, SHALL BE
FILED  WITH  THE AUTHORITY WITHIN TEN DAYS AFTER SUCH CHANGE. FAILURE TO
DO SO SHALL, IF WILLFUL AND DELIBERATE, BE CAUSE FOR REVOCATION  OF  THE
LICENSE.
  5. IN GIVING ANY NOTICE, OR TAKING ANY ACTION IN REFERENCE TO A LICEN-
SEE  OF A LICENSED PREMISES, THE AUTHORITY MAY RELY UPON THE INFORMATION
FURNISHED  IN  SUCH  APPLICATION  AND  IN  ANY  SUPPLEMENTAL   STATEMENT
CONNECTED THEREWITH, AND SUCH INFORMATION MAY BE PRESUMED TO BE CORRECT,
AND SHALL BE BINDING UPON A LICENSEE OR LICENSED PREMISES AS IF CORRECT.
ALL  INFORMATION REQUIRED TO BE FURNISHED IN SUCH APPLICATION OR SUPPLE-
MENTAL STATEMENTS SHALL BE DEEMED MATERIAL IN ANY PROSECUTION FOR PERJU-
RY, ANY PROCEEDING TO REVOKE, CANCEL OR SUSPEND ANY LICENSE, AND IN  THE
AUTHORITY'S DETERMINATION TO APPROVE OR DENY THE LICENSE.
  6.  THE  AUTHORITY  MAY  IN ITS DISCRETION WAIVE THE SUBMISSION OF ANY
CATEGORY OF INFORMATION DESCRIBED IN THIS SECTION FOR  ANY  CATEGORY  OF
LICENSE  OR PERMIT, PROVIDED THAT IT SHALL NOT BE PERMITTED TO WAIVE THE
REQUIREMENT FOR SUBMISSION OF ANY SUCH CATEGORY  OF  INFORMATION  SOLELY
FOR AN INDIVIDUAL APPLICANT OR APPLICANTS.
  §  180.  NOTIFICATION  TO MUNICIPALITIES. 1. NOT LESS THAN THIRTY DAYS
BEFORE FILING ANY OF THE  FOLLOWING  APPLICATIONS,  AN  APPLICANT  SHALL
NOTIFY  THE MUNICIPALITY IN WHICH THE PREMISES IS LOCATED OF SUCH APPLI-
CANT'S INTENT TO FILE SUCH AN APPLICATION:
  (A) FOR A MARIHUANA PRODUCER;
  (B) FOR A MARIHUANA PROCESSOR LICENSE;
  (C) FOR A MARIHUANA RETAILER LICENSE; AND/OR
  (D) FOR A MARIHUANA RETAILER LICENSE FOR ON-PREMISES CONSUMPTION.
  2. SUCH NOTIFICATION SHALL BE MADE TO THE CLERK OF THE  VILLAGE,  TOWN
OR  CITY,  AS  THE  CASE  MAY  BE,  WHEREIN THE PREMISES IS LOCATED. FOR
PURPOSES OF THIS SECTION:
  (A) NOTIFICATION NEED ONLY BE GIVEN TO THE CLERK OF A VILLAGE WHEN THE
PREMISES IS LOCATED WITHIN THE BOUNDARIES OF THE VILLAGE; AND
  (B) IN THE CITY OF NEW YORK, THE COMMUNITY BOARD ESTABLISHED  PURSUANT
TO SECTION TWENTY-EIGHT HUNDRED OF THE NEW YORK CITY CHARTER WITH JURIS-
DICTION  OVER THE AREA IN WHICH THE PREMISES IS LOCATED SHALL BE CONSID-
ERED THE APPROPRIATE PUBLIC BODY TO WHICH NOTIFICATION SHALL BE GIVEN.
  3. FOR PURPOSES OF THIS SECTION, "SUBSTANTIAL CORPORATE CHANGE"  SHALL
MEAN:
  (A) FOR A CORPORATION, A CHANGE OF EIGHTY PERCENT OR MORE OF THE OFFI-
CERS  AND/OR DIRECTORS, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF STOCK
OF SUCH CORPORATION, OR AN EXISTING STOCKHOLDER OBTAINING EIGHTY PERCENT
OR MORE OF THE STOCK OF SUCH CORPORATION; AND
  (B) FOR A LIMITED LIABILITY COMPANY, A CHANGE  OF  EIGHTY  PERCENT  OR
MORE  OF  THE  MANAGING  MEMBERS OF THE COMPANY, OR A TRANSFER OF EIGHTY
PERCENT OR MORE OF OWNERSHIP INTEREST IN SAID COMPANY,  OR  AN  EXISTING
MEMBER OBTAINING A CUMULATIVE OF EIGHTY PERCENT OR MORE OF THE OWNERSHIP
INTEREST IN SAID COMPANY.
  4. SUCH NOTIFICATION SHALL BE MADE IN SUCH FORM AS SHALL BE PRESCRIBED
BY THE RULES OF THE LIQUOR AUTHORITY.
  5.  A  MUNICIPALITY MAY EXPRESS AN OPINION FOR OR AGAINST THE GRANTING
OF SUCH APPLICATION. ANY SUCH OPINION SHALL BE DEEMED PART OF THE RECORD

S. 3040                            34

UPON WHICH THE LIQUOR AUTHORITY MAKES ITS DETERMINATION TO GRANT OR DENY
THE APPLICATION.
  6.  SUCH NOTIFICATION SHALL BE MADE BY: CERTIFIED MAIL, RETURN RECEIPT
REQUESTED; OVERNIGHT DELIVERY SERVICE WITH PROOF OF MAILING; OR PERSONAL
SERVICE UPON THE OFFICES OF THE CLERK OR COMMUNITY BOARD.
  7. THE LIQUOR AUTHORITY SHALL REQUIRE SUCH NOTIFICATION  TO  BE  ON  A
STANDARDIZED  FORM  THAT  CAN  BE  OBTAINED  ON THE INTERNET OR FROM THE
LIQUOR AUTHORITY AND SUCH NOTIFICATION TO INCLUDE:
  (A) THE TRADE NAME OR "DOING BUSINESS AS" NAME, IF ANY, OF THE  ESTAB-
LISHMENT;
  (B) THE FULL NAME OF THE APPLICANT;
  (C)  THE  STREET  ADDRESS  OF  THE  ESTABLISHMENT, INCLUDING THE FLOOR
LOCATION OR ROOM NUMBER, IF APPLICABLE;
  (D) THE MAILING ADDRESS OF THE ESTABLISHMENT, IF  DIFFERENT  THAN  THE
STREET ADDRESS;
  (E)  THE  NAME, ADDRESS AND TELEPHONE NUMBER OF THE ATTORNEY OR REPRE-
SENTATIVE OF THE APPLICANT, IF ANY;
  (F) A STATEMENT INDICATING WHETHER THE APPLICATION IS FOR:
  (I) A NEW ESTABLISHMENT;
  (II) A TRANSFER OF AN EXISTING LICENSED BUSINESS;
  (III) A RENEWAL OF AN EXISTING LICENSE; OR
  (IV) AN ALTERATION OF AN EXISTING LICENSED PREMISES;
  (G) IF THE ESTABLISHMENT IS A TRANSFER OR  PREVIOUSLY  LICENSED  PREM-
ISES, THE NAME OF THE OLD ESTABLISHMENT AND SUCH ESTABLISHMENT'S LICENSE
SERIAL NUMBER;
  (H)  IN  THE  CASE OF A RENEWAL OR ALTERATION APPLICATION, THE LICENSE
SERIAL NUMBER OF THE APPLICANT; AND
  (I) THE TYPE OF LICENSE.
  § 181. LICENSES, PUBLICATION, GENERAL PROVISIONS. 1. THE VARIOUS TYPES
OF LICENSES ISSUED PURSUANT TO THIS  CHAPTER  SHALL  BE  DISTINCTIVE  IN
COLOR AND DESIGN SO AS TO BE READILY DISTINGUISHABLE FROM EACH OTHER.
  2. NO LICENSE SHALL BE TRANSFERABLE OR ASSIGNABLE EXCEPT THAT NOTWITH-
STANDING  ANY  OTHER  PROVISION OF LAW, THE LICENSE OF A SOLE PROPRIETOR
CONVERTING TO CORPORATE FORM, WHERE SUCH  PROPRIETOR  BECOMES  THE  SOLE
STOCKHOLDER  AND  ONLY OFFICER AND DIRECTOR OF SUCH NEW CORPORATION, MAY
BE TRANSFERRED TO THE SUBJECT CORPORATION IF ALL  REQUIREMENTS  OF  THIS
CHAPTER REMAIN THE SAME WITH RESPECT TO SUCH LICENSE AS TRANSFERRED AND,
FURTHER,  THE  LICENSEE SHALL TRANSMIT TO THE AUTHORITY, WITHIN TEN DAYS
OF THE TRANSFER OF LICENSE ALLOWABLE UNDER THIS SUBDIVISION, ON  A  FORM
PRESCRIBED  BY  THE  AUTHORITY,  NOTIFICATION  OF  THE  TRANSFER OF SUCH
LICENSE.
  3. NO LICENSE SHALL BE PLEDGED OR DEPOSITED AS COLLATERAL SECURITY FOR
ANY LOAN OR UPON ANY OTHER CONDITION; AND ANY SUCH  PLEDGE  OR  DEPOSIT,
AND ANY CONTRACT PROVIDING THEREFOR, SHALL BE VOID.
  4.  LICENSES  ISSUED  UNDER THIS ARTICLE SHALL CONTAIN, IN ADDITION TO
ANY FURTHER INFORMATION OR MATERIAL TO BE PRESCRIBED BY THE RULES OF THE
LIQUOR AUTHORITY, THE FOLLOWING INFORMATION: (A) NAME OF PERSON TO  WHOM
LICENSE IS ISSUED; (B) KIND OF LICENSE AND WHAT KIND OF TRAFFIC IN MARI-
HUANA  IS  THEREBY  PERMITTED;  (C) DESCRIPTION BY STREET AND NUMBER, OR
OTHERWISE, OF LICENSED PREMISES; AND (D) A STATEMENT IN  SUBSTANCE  THAT
SUCH LICENSE SHALL NOT BE DEEMED A PROPERTY OR VESTED RIGHT, AND THAT IT
MAY BE REVOKED AT ANY TIME PURSUANT TO LAW.
  5.  THERE  SHALL  BE  PRINTED AND FURNISHED BY THE LIQUOR AUTHORITY TO
EACH LICENSEE A STATEMENT OF  THE  CAUSES  FOR  WHICH  LICENSES  MAY  BE
REVOKED.  SUCH  STATEMENT  SHALL BE PREPARED BY THE LIQUOR AUTHORITY AND
DELIVERED TO THE LICENSEE WITH HIS OR HER LICENSE OR AS SOON  THEREAFTER

S. 3040                            35

AS  MAY BE PRACTICABLE. ANY AMENDMENTS THERETO SHALL ALSO BE SENT BY THE
LIQUOR AUTHORITY TO ALL LICENSEES AS SOON AS MAY  BE  PRACTICABLE  AFTER
SUCH  AMENDMENTS. FAILURE TO SEND SUCH STATEMENTS OR CHANGES THEREIN, OR
FAILURE  TO  RECEIVE THE SAME, OR ANY MISSTATEMENT OR ERROR CONTAINED IN
SUCH STATEMENTS OR AMENDMENTS SHALL, HOWEVER, NOT BE AN EXCUSE OR JUSTI-
FICATION FOR ANY VIOLATION OF LAW, OR PREVENT, OR REMIT, OR DECREASE ANY
PENALTY OR FORFEITURE THEREFOR.
  6. BEFORE COMMENCING OR DOING ANY BUSINESS FOR THE TIME  FOR  WHICH  A
LICENSE  HAS  BEEN  ISSUED  SAID LICENSE SHALL BE ENCLOSED IN A SUITABLE
WOOD OR METAL FRAME HAVING A CLEAR GLASS SPACE AND A SUBSTANTIAL WOOD OR
METAL BACK SO THAT THE WHOLE OF SAID LICENSE MAY BE  SEEN  THEREIN,  AND
SHALL  BE POSTED UP AND AT ALL TIMES DISPLAYED IN A CONSPICUOUS PLACE IN
THE ROOM WHERE SUCH BUSINESS IS CARRIED ON, SO THAT ALL PERSONS VISITING
SUCH PLACE MAY READILY SEE THE SAME. IT SHALL BE UNLAWFUL FOR ANY PERSON
HOLDING A LICENSE TO POST SUCH LICENSE OR TO PERMIT SUCH LICENSE  TO  BE
POSTED  UPON PREMISES OTHER THAN THE PREMISES LICENSED, OR UPON PREMISES
WHERE TRAFFIC IN MARIHUANA IS BEING CARRIED ON BY ANY PERSON OTHER  THAN
THE  LICENSEE, OR KNOWINGLY TO DEFACE, DESTROY OR ALTER ANY SUCH LICENSE
IN ANY RESPECT. WHENEVER A LICENSE SHALL BE LOST  OR  DESTROYED  WITHOUT
FAULT  ON  THE PART OF THE LICENSEE OR HIS OR HER AGENTS OR EMPLOYEES, A
DUPLICATE LICENSE IN LIEU THEREOF MAY BE ISSUED BY THE LIQUOR  AUTHORITY
IN  ITS DISCRETION AND IN ACCORDANCE WITH SUCH RULES AND REGULATIONS AND
THE PAYMENT OF  SUCH  FEES,  NOT  EXCEEDING  FIVE  DOLLARS,  AS  IT  MAY
PRESCRIBE.
  §  182.  REVOCATION  OF  LICENSES  FOR CAUSE. 1. ANY LICENSE OR PERMIT
ISSUED PURSUANT TO THIS ARTICLE MAY  BE  REVOKED,  CANCELLED,  SUSPENDED
AND/OR  SUBJECTED  TO  THE  IMPOSITION OF A CIVIL PENALTY FOR CAUSE, AND
MUST BE REVOKED FOR THE FOLLOWING CAUSES:
  (A) CONVICTION OF THE LICENSEE, PERMITTEE  OR  HIS  OR  HER  AGENT  OR
EMPLOYEE FOR SELLING ANY ILLEGAL MARIHUANA ON THE PREMISES LICENSED.
  (B) FOR TRANSFERRING, ASSIGNING OR HYPOTHECATING A LICENSE OR PERMIT.
  2.  NOTWITHSTANDING  THE  ISSUANCE  OF  A  LICENSE OR PERMIT BY WAY OF
RENEWAL, THE LIQUOR AUTHORITY MAY REVOKE, CANCEL OR SUSPEND SUCH LICENSE
OR PERMIT AND/OR MAY IMPOSE A CIVIL PENALTY AGAINST ANY HOLDER  OF  SUCH
LICENSE OR PERMIT, AS PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED
NINETEEN  OF THIS CHAPTER, FOR CAUSES OR VIOLATIONS OCCURRING DURING THE
LICENSE PERIOD IMMEDIATELY PRECEDING THE ISSUANCE  OF  SUCH  LICENSE  OR
PERMIT,  AND  MAY  RECOVER, AS PROVIDED IN SECTION ONE HUNDRED TWELVE OF
THIS CHAPTER, THE PENAL SUM OF THE BOND ON FILE DURING SAID PERIOD.
  3. AS USED IN THIS SECTION, THE TERM "FOR CAUSE"  SHALL  ALSO  INCLUDE
THE  EXISTENCE  OF A SUSTAINED AND CONTINUING PATTERN OF NOISE, DISTURB-
ANCE, MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES, RELATED
TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF  ITS  PATRONS,  WHICH
ADVERSELY  AFFECTS  THE  HEALTH, WELFARE OR SAFETY OF THE INHABITANTS OF
THE AREA IN WHICH SUCH LICENSED PREMISES ARE LOCATED.
  4. THE EXISTENCE OF A  SUSTAINED  AND  CONTINUING  PATTERN  OF  NOISE,
DISTURBANCE,  MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES,
RELATED TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF ITS  PATRONS,
WILL  BE PRESUMED UPON THE SIXTH INCIDENT REPORTED TO THE AUTHORITY BY A
LAW ENFORCEMENT AGENCY OF NOISE OR DISTURBANCE OR MISCONDUCT OR DISORDER
ON OR ABOUT THE LICENSED PREMISES OR RELATED TO  THE  OPERATION  OF  THE
PREMISES  OR THE CONDUCT OF ITS PATRONS, IN ANY SIXTY DAY PERIOD, ABSENT
CLEAR AND CONVINCING EVIDENCE OF EITHER FRAUDULENT INTENT ON THE PART OF
ANY COMPLAINANT OR A FACTUAL ERROR WITH RESPECT TO THE  CONTENT  OF  ANY
REPORT CONCERNING SUCH COMPLAINT RELIED UPON BY THE AUTHORITY.

S. 3040                            36

  §  183.  PROCEDURE  FOR  REVOCATION OR CANCELLATION. 1. ANY LICENSE OR
PERMIT ISSUED BY THE LIQUOR AUTHORITY PURSUANT TO THIS  ARTICLE  MAY  BE
REVOKED, CANCELLED OR SUSPENDED AND/OR BE SUBJECTED TO THE IMPOSITION OF
A MONETARY PENALTY IN THE MANNER PRESCRIBED BY THIS SECTION.
  2.  THE  LIQUOR AUTHORITY MAY ON ITS OWN INITIATIVE OR ON COMPLAINT OF
ANY PERSON INSTITUTE PROCEEDINGS TO REVOKE, CANCEL OR SUSPEND ANY RETAIL
LICENSE AND MAY IMPOSE A CIVIL PENALTY  AGAINST  THE  LICENSEE  AFTER  A
HEARING AT WHICH THE LICENSEE SHALL BE GIVEN AN OPPORTUNITY TO BE HEARD.
SUCH HEARING SHALL BE HELD IN SUCH MANNER AND UPON SUCH NOTICE AS MAY BE
PRESCRIBED BY THE RULES OF THE LIQUOR AUTHORITY.
  3.  ALL  OTHER  LICENSES  OR  PERMITS ISSUED UNDER THIS CHAPTER MAY BE
REVOKED, CANCELLED, SUSPENDED AND/OR MADE SUBJECT TO THE IMPOSITION OF A
CIVIL PENALTY BY THE LIQUOR AUTHORITY AFTER A HEARING TO BE HELD IN  THE
MANNER TO BE DETERMINED BY THE RULES OF THE LIQUOR AUTHORITY.
  4.  (A) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY IN ALL CASES OF
LICENSEE OR PERMITTEE FAILURE AFTER  RECEIVING  APPROPRIATE  NOTICE,  TO
COMPLY  WITH  A  SUMMONS, SUBPOENA OR WARRANT RELATING TO A PATERNITY OR
CHILD SUPPORT PROCEEDING AND ARREARS IN  PAYMENT  OF  CHILD  SUPPORT  OR
COMBINED  CHILD AND SPOUSAL SUPPORT REFERRED TO THE AUTHORITY BY A COURT
PURSUANT TO THE REQUIREMENTS OF SECTION TWO HUNDRED FORTY-FOUR-C OF  THE
DOMESTIC RELATIONS LAW OR PURSUANT TO SECTION FOUR HUNDRED FIFTY-EIGHT-B
OR FIVE HUNDRED FORTY-EIGHT-B OF THE FAMILY COURT ACT.
  (B)  UPON  RECEIPT  OF  AN  ORDER  FROM  THE COURT BASED ON ARREARS IN
PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL SUPPORT  PURSUANT
TO  ONE  OF  THE FOREGOING PROVISIONS OF LAW, THE AUTHORITY, IF IT FINDS
SUCH PERSON TO HAVE BEEN ISSUED A LICENSE OR PERMIT, SHALL WITHIN THIRTY
DAYS OF RECEIPT OF SUCH ORDER FROM THE  COURT,  PROVIDE  NOTICE  TO  THE
LICENSEE OR PERMITTEE OF, AND INITIATE, A HEARING WHICH SHALL BE HELD AT
LEAST TWENTY DAYS AND NO MORE THAN THIRTY DAYS AFTER THE SENDING OF SUCH
NOTICE  TO  THE  LICENSEE OR PERMITTEE. THE HEARING SHALL BE SOLELY HELD
FOR THE PURPOSE OF DETERMINING WHETHER THERE EXISTS AS OF  THE  DATE  OF
THE  HEARING  PROOF  THAT  FULL PAYMENT OF ALL ARREARS OF SUPPORT ESTAB-
LISHED BY THE ORDER OF THE COURT TO BE DUE FROM THE LICENSEE OR  PERMIT-
TEE  HAVE  BEEN  PAID.  PROOF OF SUCH PAYMENT SHALL BE A CERTIFIED CHECK
SHOWING FULL PAYMENT OF ESTABLISHED ARREARS OR A NOTICE  ISSUED  BY  THE
COURT  OR THE SUPPORT COLLECTION UNIT, WHERE THE ORDER IS PAYABLE TO THE
SUPPORT COLLECTION UNIT DESIGNATED BY THE  APPROPRIATE  SOCIAL  SERVICES
DISTRICT.  SUCH  NOTICE  SHALL STATE THAT FULL PAYMENT OF ALL ARREARS OF
SUPPORT ESTABLISHED BY THE ORDER OF THE COURT TO BE DUE HAVE BEEN  PAID.
THE  LICENSEE  OR  PERMITTEE  SHALL BE GIVEN FULL OPPORTUNITY TO PRESENT
SUCH PROOF OF PAYMENT AT THE HEARING IN PERSON OR BY COUNSEL.  THE  ONLY
ISSUE  TO  BE  DETERMINED BY THE AUTHORITY AS A RESULT OF THE HEARING IS
WHETHER THE ARREARS HAVE BEEN PAID. NO  EVIDENCE  WITH  RESPECT  TO  THE
APPROPRIATENESS OF THE COURT ORDER OR ABILITY OF THE RESPONDENT PARTY IN
ARREARS TO COMPLY WITH SUCH ORDER SHALL BE RECEIVED OR CONSIDERED BY THE
AUTHORITY.
  (C)  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF THIS ARTICLE OR OF
ANY OTHER PROVISION OF LAW TO THE CONTRARY, SUCH LICENSE OR PERMIT SHALL
BE SUSPENDED IF AT THE HEARING, PROVIDED FOR BY PARAGRAPH  (B)  OF  THIS
SUBDIVISION, THE LICENSEE OR PERMITTEE FAILS TO PRESENT PROOF OF PAYMENT
AS  REQUIRED  BY SUCH SUBDIVISION.   SUCH SUSPENSION SHALL NOT BE LIFTED
UNLESS THE COURT OR THE SUPPORT COLLECTION UNIT, WHERE THE  COURT  ORDER
IS  PAYABLE TO THE SUPPORT COLLECTION UNIT DESIGNATED BY THE APPROPRIATE
SOCIAL SERVICES DISTRICT, ISSUES  NOTICE  TO  THE  AUTHORITY  THAT  FULL
PAYMENT  OF ALL ARREARS OF SUPPORT ESTABLISHED BY THE ORDER OF THE COURT
TO BE DUE HAVE BEEN PAID.

S. 3040                            37

  (D) UPON RECEIPT OF AN ORDER FROM THE COURT BASED ON FAILURE TO COMPLY
WITH A SUMMONS, SUBPOENA, OR WARRANT RELATING TO A  PATERNITY  OR  CHILD
SUPPORT  PROCEEDING,  THE  AUTHORITY,  IF  IT FINDS SUCH PERSON HAS BEEN
ISSUED A LICENSE OR PERMIT, SHALL WITHIN THIRTY DAYS OF RECEIPT OF  SUCH
ORDER  FROM  THE COURT, PROVIDE NOTICE TO THE LICENSEE OR PERMITTEE THAT
HIS OR HER LICENSE SHALL BE SUSPENDED IN SIXTY DAYS  UNLESS  THE  CONDI-
TIONS IN PARAGRAPH (E) OF THIS SUBDIVISION ARE MET.
  (E)  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF THIS ARTICLE OR OF
ANY OTHER PROVISION OF LAW TO THE CONTRARY, SUCH LICENSE OR PERMIT SHALL
BE SUSPENDED IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH (C) OF  THIS
SUBDIVISION UNLESS THE COURT TERMINATES ITS ORDER TO COMMENCE SUSPENSION
PROCEEDINGS. SUCH SUSPENSION SHALL NOT BE LIFTED UNLESS THE COURT ISSUES
AN  ORDER  TO THE AUTHORITY TERMINATING ITS ORDER TO COMMENCE SUSPENSION
PROCEEDINGS.
  (F) THE AUTHORITY SHALL INFORM THE COURT OF ALL  ACTIONS  TAKEN  HERE-
UNDER AS REQUIRED BY LAW.
  (G)  THIS  SUBDIVISION APPLIES TO SUPPORT OBLIGATIONS PAID PURSUANT TO
ANY ORDER OF CHILD SUPPORT OR CHILD AND  SPOUSAL  SUPPORT  ISSUED  UNDER
PROVISIONS OF SECTION TWO HUNDRED THIRTY-SIX OR TWO HUNDRED FORTY OF THE
DOMESTIC  RELATIONS  LAW,  OR ARTICLE FOUR, FIVE OR FIVE-A OF THE FAMILY
COURT ACT.
  (H) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS ARTICLE  OR  OF
ANY  OTHER  PROVISION  OF  LAW  TO  THE CONTRARY, THE PROVISIONS OF THIS
SUBDIVISION SHALL APPLY TO THE EXCLUSION OF ANY  OTHER  REQUIREMENTS  OF
THIS ARTICLE AND TO THE EXCLUSION OF ANY OTHER REQUIREMENT OF LAW TO THE
CONTRARY.
  5.  WHERE  A  LICENSEE IS CONVICTED OF TWO OR MORE QUALIFYING OFFENSES
WITHIN A FIVE YEAR PERIOD, THE AUTHORITY, UPON RECEIPT  OF  NOTIFICATION
OF  SUCH  SECOND  OR SUBSEQUENT CONVICTION PURSUANT TO THE PROVISIONS OF
SUBDIVISION TWO OF SECTION ONE HUNDRED SIX-A OF THIS CHAPTER, SHALL,  IN
ADDITION  TO  ANY  OTHER  SANCTION  OR CIVIL OR CRIMINAL PENALTY IMPOSED
PURSUANT TO THIS CHAPTER, IMPOSE ON SUCH LICENSEE A CIVIL PENALTY NOT TO
EXCEED FIVE HUNDRED DOLLARS. FOR PURPOSES OF THIS SUBDIVISION, A  QUALI-
FYING  OFFENSE SHALL MEAN: (A) THE OFFENSE DEFINED IN SUBDIVISION ONE OF
SECTION SIXTY-FIVE OF THIS CHAPTER; OR (B) THE OFFENSE DEFINED IN  PARA-
GRAPH  (B)  OF  SUBDIVISION ONE OF SECTION SIXTY-FIVE-B OF THIS CHAPTER.
FOR PURPOSES OF THIS SUBDIVISION, A  CONVICTION  OF  A  LICENSEE  OR  AN
EMPLOYEE OR AGENT OF SUCH LICENSEE SHALL CONSTITUTE A CONVICTION OF SUCH
LICENSEE.
  §  184.  DECISIONS  OF  LIQUOR  AUTHORITY  AND  REVIEW  BY THE COURTS.
PROVISIONS OF SECTIONS ONE HUNDRED TWENTY, ONE  HUNDRED  TWENTY-ONE  AND
ONE  HUNDRED  TWENTY-FOUR  OF  THIS  CHAPTER  SHALL  APPLY  TO MARIHUANA
LICENSES ISSUED UNDER THIS ARTICLE.
  § 185. MINORITY AND WOMEN BUSINESS ENTERPRISES. THE  LIQUOR  AUTHORITY
SHALL:
  1.  ACTIVELY  PROMOTE  RACIAL,  ETHNIC,  AND GEOGRAPHIC DIVERSITY WHEN
LICENSING MARIHUANA GROWERS, PROCESSORS, AND RETAILERS;
  2. ENCOURAGE APPLICANTS WHO QUALIFY AS A MINORITY AND/OR  WOMEN  BUSI-
NESS  ENTERPRISE,  AS DEFINED IN SECTION THREE HUNDRED TEN OF THE EXECU-
TIVE LAW, TO APPLY FOR LICENSES; AND
  3. IN ACCORDANCE WITH THE OFFICIAL COMPILATION  OF  CODES,  RULES  AND
REGULATIONS  OF  THE  STATE  OF NEW YORK TITLE 5, DEPARTMENT OF ECONOMIC
DEVELOPMENT, CHAPTER XIV, DIVISION  OF  MINORITY  AND  WOMEN'S  BUSINESS
DEVELOPMENT,  PART 141, SUBMIT AN ANNUAL MASTER GOAL PLAN TO PROMOTE THE
INCLUSION OF: (A) MINORITY-OWNED BUSINESS ENTERPRISES;  (B)  WOMEN-OWNED

S. 3040                            38

BUSINESS  ENTERPRISES; AND (C) MINORITY- AND WOMEN-OWNED BUSINESS ENTER-
PRISES WITH JUSTIFICATIONS FOR SUCH GOALS.
  §  186.  DISPOSITION  OF  MONEYS RECEIVED FOR LICENSE FEES. THE MONEYS
RECEIVED FOR LICENSE FEES FOR  MARIHUANA  PRODUCER  LICENSES,  MARIHUANA
PROCESSOR LICENSES, AND MARIHUANA RETAILER LICENSES PROVIDED FOR IN THIS
CHAPTER  SHALL BE TURNED OVER BY THE LIQUOR AUTHORITY TO THE STATE COMP-
TROLLER. IT SHALL BE PLACED BY THE STATE COMPTROLLER IN THE FUND DERIVED
FROM THE PROCEEDS OF THE TAXES ON  MARIHUANA  PROVIDED  FOR  IN  ARTICLE
EIGHTEEN-A  OF  THE  TAX LAW AND BECOME A PART THEREOF AND BE SUBJECT TO
ALL OF THE PROVISIONS OF LAW RELATING TO SUCH FUND.
  § 187. PERSONS  FORBIDDEN  TO  TRAFFIC  IN  MARIHUANA.  THE  FOLLOWING
PERSONS ARE FORBIDDEN TO TRAFFIC IN MARIHUANA:
  1.  EXCEPT  AS PROVIDED IN SUBDIVISION ONE-A OF THIS SECTION, A PERSON
WHO HAS BEEN CONVICTED OF A CLASS B VIOLENT FELONY OFFENSE,  A  CLASS  C
VIOLENT  FELONY  OFFENSE, A CLASS D VIOLENT FELONY OFFENSE, OR A CLASS E
VIOLENT FELONY OFFENSE AS DEFINED BY SECTION 70.02  OF  THE  PENAL  LAW,
UNLESS  SUBSEQUENT TO SUCH CONVICTION SUCH PERSON SHALL HAVE RECEIVED AN
EXECUTIVE PARDON THEREFOR REMOVING THIS  DISABILITY,  A  CERTIFICATE  OF
GOOD  CONDUCT  GRANTED  BY  THE  DEPARTMENT OF CORRECTIONS AND COMMUNITY
SUPERVISION, OR A CERTIFICATE OF RELIEF FROM DISABILITIES GRANTED BY THE
DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPERVISION OR A COURT  OF  THIS
STATE  PURSUANT  TO  THE  PROVISIONS  OF  ARTICLE  TWENTY-THREE  OF  THE
CORRECTION LAW TO REMOVE THE DISABILITY UNDER THIS  SECTION  BECAUSE  OF
SUCH CONVICTION.
  1-A. NOTWITHSTANDING THE PROVISION OF SUBDIVISION ONE OF THIS SECTION,
A  CORPORATION HOLDING A LICENSE TO TRAFFIC IN MARIHUANA SHALL NOT, UPON
CONVICTION OF A FELONY OR ANY OF THE MISDEMEANORS OR OFFENSES  DESCRIBED
IN  SUBDIVISION ONE OF THIS SECTION, BE AUTOMATICALLY FORBIDDEN TO TRAF-
FIC IN MARIHUANA, BUT THE APPLICATION FOR A LICENSE  BY  SUCH  A  CORPO-
RATION SHALL BE SUBJECT TO DENIAL, AND THE LICENSE OF SUCH A CORPORATION
SHALL  BE  SUBJECT TO REVOCATION OR SUSPENSION BY THE AUTHORITY PURSUANT
TO SECTION ONE HUNDRED EIGHTEEN OF THIS  CHAPTER,  CONSISTENT  WITH  THE
PROVISIONS  OF  ARTICLE  TWENTY-THREE-A  OF  THE CORRECTION LAW. FOR ANY
FELONY CONVICTION BY A COURT OTHER THAN  A  COURT  OF  THIS  STATE,  THE
AUTHORITY MAY REQUEST THE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPER-
VISION  TO INVESTIGATE AND REVIEW THE FACTS AND CIRCUMSTANCES CONCERNING
SUCH A CONVICTION, AND SUCH DEPARTMENT SHALL, IF  SO  REQUESTED,  SUBMIT
ITS  FINDINGS  TO  THE  AUTHORITY  AS  TO  WHETHER  THE  CORPORATION HAS
CONDUCTED ITSELF IN A MANNER  SUCH  THAT  DISCRETIONARY  REVIEW  BY  THE
AUTHORITY  WOULD  NOT  BE  INCONSISTENT  WITH  THE  PUBLIC INTEREST. THE
DEPARTMENT OF CORRECTIONS  AND  COMMUNITY  SUPERVISION  MAY  CHARGE  THE
LICENSEE OR APPLICANT A FEE EQUIVALENT TO THE EXPENSES OF AN APPROPRIATE
INVESTIGATION  UNDER  THIS SUBDIVISION. FOR ANY CONVICTION RENDERED BY A
COURT OF THIS STATE, THE AUTHORITY MAY REQUEST THE CORPORATION,  IF  THE
CORPORATION  IS  ELIGIBLE FOR A CERTIFICATE OF RELIEF FROM DISABILITIES,
TO SEEK SUCH A CERTIFICATE FROM THE COURT WHICH RENDERED THE  CONVICTION
AND  TO SUBMIT SUCH A CERTIFICATE AS PART OF THE AUTHORITY'S DISCRETION-
ARY REVIEW PROCESS.
  2. A PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
  3. A PERSON WHO IS NOT A CITIZEN OF THE  UNITED  STATES  OR  AN  ALIEN
LAWFULLY ADMITTED FOR PERMANENT RESIDENCE IN THE UNITED STATES.
  4.  A CO-PARTNERSHIP OR A CORPORATION, UNLESS EACH MEMBER OF THE PART-
NERSHIP, OR EACH OF THE PRINCIPAL OFFICERS AND DIRECTORS OF  THE  CORPO-
RATION,  IS A CITIZEN OF THE UNITED STATES OR AN ALIEN LAWFULLY ADMITTED
FOR PERMANENT RESIDENCE IN THE UNITED STATES, NOT LESS  THAN  TWENTY-ONE
YEARS  OF  AGE,  AND  HAS NOT BEEN CONVICTED OF ANY FELONY OR ANY OF THE

S. 3040                            39

MISDEMEANORS, SPECIFIED IN SECTION 230.20 OR 230.40 OF THE PENAL LAW, OR
IF SO CONVICTED HAS RECEIVED, SUBSEQUENT TO SUCH CONVICTION,  AN  EXECU-
TIVE  PARDON  THEREFOR  REMOVING  THIS  DISABILITY A CERTIFICATE OF GOOD
CONDUCT  GRANTED  BY  THE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPER-
VISION, OR A CERTIFICATE OF RELIEF  FROM  DISABILITIES  GRANTED  BY  THE
DEPARTMENT  OF  CORRECTIONS AND COMMUNITY SUPERVISION OR A COURT OF THIS
STATE  PURSUANT  TO  THE  PROVISIONS  OF  ARTICLE  TWENTY-THREE  OF  THE
CORRECTION  LAW  TO  REMOVE THE DISABILITY UNDER THIS SECTION BECAUSE OF
SUCH CONVICTION; PROVIDED HOWEVER THAT  A  CORPORATION  WHICH  OTHERWISE
CONFORMS TO THE REQUIREMENTS OF THIS SECTION AND CHAPTER MAY BE LICENSED
IF  EACH  OF ITS PRINCIPAL OFFICERS AND MORE THAN ONE-HALF OF ITS DIREC-
TORS ARE CITIZENS OF THE UNITED STATES OR ALIENS LAWFULLY  ADMITTED  FOR
PERMANENT  RESIDENCE  IN  THE UNITED STATES; AND PROVIDED FURTHER THAT A
CORPORATION ORGANIZED UNDER THE NOT-FOR-PROFIT CORPORATION  LAW  OR  THE
EDUCATION  LAW  WHICH  OTHERWISE  CONFORMS  TO  THE REQUIREMENTS OF THIS
SECTION AND CHAPTER MAY BE LICENSED IF EACH OF  ITS  PRINCIPAL  OFFICERS
AND  MORE  THAN  ONE-HALF  OF ITS DIRECTORS ARE NOT LESS THAN TWENTY-ONE
YEARS OF AGE AND NONE OF ITS DIRECTORS ARE LESS THAN EIGHTEEN  YEARS  OF
AGE;  AND  PROVIDED  FURTHER THAT A CORPORATION ORGANIZED UNDER THE NOT-
FOR-PROFIT CORPORATION LAW OR THE EDUCATION LAW AND LOCATED ON THE PREM-
ISES OF A COLLEGE AS DEFINED BY SECTION TWO OF THE EDUCATION  LAW  WHICH
OTHERWISE  CONFORMS  TO THE REQUIREMENTS OF THIS SECTION AND CHAPTER MAY
BE LICENSED IF EACH OF ITS PRINCIPAL OFFICERS AND EACH OF ITS  DIRECTORS
ARE NOT LESS THAN EIGHTEEN YEARS OF AGE.
  5. (A) A PERSON WHO SHALL HAVE HAD ANY LICENSE ISSUED UNDER THIS CHAP-
TER  REVOKED  FOR CAUSE, UNTIL THE EXPIRATION OF TWO YEARS FROM THE DATE
OF SUCH REVOCATION.
  (B) A PERSON NOT LICENSED UNDER THE PROVISIONS OF  THIS  CHAPTER,  WHO
HAS  BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, UNTIL THE EXPIRATION
OF TWO YEARS FROM THE DATE OF SUCH CONVICTION.
  6. A CORPORATION OR CO-PARTNERSHIP, IF ANY OFFICER AND DIRECTOR OR ANY
PARTNER, WHILE NOT LICENSED UNDER THE PROVISIONS OF  THIS  CHAPTER,  HAS
BEEN  CONVICTED  OF  A  VIOLATION  OF THIS CHAPTER, OR HAS HAD A LICENSE
ISSUED UNDER THIS CHAPTER REVOKED FOR CAUSE, UNTIL THE EXPIRATION OF TWO
YEARS FROM THE DATE OF SUCH CONVICTION OR REVOCATION.
  § 188. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS. WITHIN  THREE
DAYS  AFTER  A LICENSE SHALL HAVE BEEN REVOKED PURSUANT TO THIS CHAPTER,
NOTICE THEREOF SHALL BE GIVEN TO THE LICENSEE  BY  MAILING  SUCH  NOTICE
ADDRESSED  TO  HIM AT THE PREMISES LICENSED. NOTICE SHALL ALSO BE MAILED
TO THE OWNER OF THE PREMISES LICENSED. THE HOLDER OF SUCH LICENSE  SHALL
THEREUPON SURRENDER SAME TO THE LIQUOR AUTHORITY. THE MAILING THEREOF BY
THE  LICENSEE  TO  THE  LIQUOR  AUTHORITY  BY REGISTERED MAIL OR INSURED
PARCEL POST SHALL BE DEEMED SUFFICIENT COMPLIANCE WITH THIS SECTION. THE
LIQUOR AUTHORITY, IMMEDIATELY UPON GIVING NOTICE  OF  REVOCATION,  SHALL
SERVE A WRITTEN NOTICE THEREOF UPON THE COMMISSIONER OF POLICE, CHIEF OF
POLICE  OR  CHIEF  POLICE  OFFICER  OF THE CITY, OR VILLAGE IN WHICH THE
PREMISES FOR WHICH THE REVOKED LICENSE WAS ISSUED IS SITUATED,  OR  UPON
THE SHERIFF OF THE COUNTY OR A CONSTABLE OF THE TOWN IN CASE THE LICENSE
WAS  ISSUED  FOR  PREMISES SITUATED IN A TOWN AND NOT WITHIN ANY CITY OR
VILLAGE.  SUCH NOTICE SHALL INCLUDE A STATEMENT OF THE  NUMBER  OF  SUCH
LICENSE,  THE  NAME  AND  PLACE  OF RESIDENCE OF THE HOLDER THEREOF, THE
LOCATION OF THE LICENSED PREMISES, AND THE DATE WHEN  SUCH  LICENSE  WAS
REVOKED.  IN  CASE SUCH LICENSE BE NOT FORTHWITH SURRENDERED, THE LIQUOR
AUTHORITY SHALL ISSUE A WRITTEN DEMAND FOR THE SURRENDER OF SUCH LICENSE
AND DELIVER SAID DEMAND TO THE  SHERIFF  OF  THE  COUNTY  IN  WHICH  THE
LICENSED  PREMISES  ARE  LOCATED, OR TO ANY REPRESENTATIVE OF THE LIQUOR

S. 3040                            40

AUTHORITY, AND SAID SHERIFF OR  REPRESENTATIVE  SHALL  IMMEDIATELY  TAKE
POSSESSION OF SUCH LICENSE AND RETURN THE SAME TO THE LIQUOR AUTHORITY.
  §  189.  AUTHORITY  TO  PROMULGATE  RULES  AND REGULATIONS. THE LIQUOR
AUTHORITY SHALL PROMULGATE AND IMPLEMENT ALL RULES AND REGULATIONS AS IT
DEEMS NECESSARY TO CARRY OUT THE PURPOSE AND INTENT OF THIS ARTICLE.
  § 190. PROTECTIONS FOR THE USE OF MARIHUANA. INDIVIDUALS AND  LICENSED
ENTITIES  SHALL NOT BE SUBJECT TO ARREST, PROSECUTION, OR PENALTY IN ANY
MANNER, OR DENIED ANY RIGHT OR PRIVILEGE, INCLUDING BUT NOT  LIMITED  TO
CIVIL  LIABILITY OR DISCIPLINARY ACTION BY A BUSINESS OR OCCUPATIONAL OR
PROFESSIONAL LICENSING BOARD OR BUREAU,  SOLELY  FOR  CONDUCT  PERMITTED
UNDER  THIS  CHAPTER. FOR THE AVOIDANCE OF DOUBT, THE APPELLATE DIVISION
OF THE SUPREME COURT OF THE STATE OF NEW YORK, AND ANY  DISCIPLINARY  OR
CHARACTER  AND  FITNESS  COMMITTEES ESTABLISHED BY THEM ARE OCCUPATIONAL
AND PROFESSIONAL LICENSING BOARDS WITHIN THE MEANING  OF  THIS  SECTION.
STATE  OR  LOCAL  LAW  ENFORCEMENT  AGENCIES SHALL NOT COOPERATE WITH OR
PROVIDE ASSISTANCE TO THE GOVERNMENT OF THE UNITED STATES OR ANY  AGENCY
THEREOF  IN  ENFORCING THE CONTROLLED SUBSTANCE ACT, 21, U.S.C. S8012 ET
SEQ., SOLELY FOR ACTIONS CONSISTENT WITH THIS CHAPTER, EXCEPT AS  PURSU-
ANT TO A VALID COURT ORDER.
  §  191.    CIVIL  PROTECTIONS FOR THE USE OF MARIHUANA.  THE PRESENCE,
DETECTED OR ESTABLISHED BY ANY MEANS OF CANNABINOIDS, CANNABINOID  META-
BOLITES  OR  OTHER  CHEMICALS  FOUND  IN  MARIHUANA IN THE BODY, FLUIDS,
TISSUES OR OTHER BODY PARTS OF A PERSON  ENGAGED  IN  CONDUCT  PERMITTED
UNDER THIS CHAPTER BY:
  1.  A  STUDENT,  EMPLOYEE,  OR  TENANT,  SHALL  NOT FORM THE BASIS FOR
REFUSAL TO ENROLL OR EMPLOY OR  LEASE  TO  OR  OTHERWISE  PENALIZE  THAT
PERSON, UNLESS FAILING TO DO SO WOULD PUT THE SCHOOL, EMPLOYER, OR LAND-
LORD  IN VIOLATION OF FEDERAL LAW OR CAUSE IT TO LOSE A FEDERAL CONTRACT
OR FUNDING;
  2. A PATIENT, SHALL NOT CONSTITUTE THE USE  OF  AN  ILLICIT  SUBSTANCE
RESULTING  IN  DENIAL OF MEDICAL CARE, INCLUDING ORGAN TRANSPLANT, AND A
PATIENT'S USE OF MARIHUANA  MAY  ONLY  BE  CONSIDERED  WITH  RESPECT  TO
EVIDENCE-BASED CLINICAL CRITERIA; AND
  3. A PARENT OR LEGAL GUARDIAN OF A CHILD OR NEWBORN INFANT, OR A PREG-
NANT  WOMAN,  SHALL NOT FORM THE SOLE OR PRIMARY BASIS FOR ANY ACTION OR
PROCEEDING BY A CHILD WELFARE AGENCY UNDER TITLE ONE OF ARTICLE  SIX  OF
THE  SOCIAL  SERVICES  LAW,  OR  A FAMILY COURT UNDER ARTICLE TEN OF THE
FAMILY COURT ACT.
  § 192. PROFESSIONAL  AND  MEDICAL  RECORD  KEEPING.  ANY  PROFESSIONAL
PROVIDING SERVICES IN CONNECTION WITH A LICENSED OR POTENTIALLY LICENSED
BUSINESS UNDER THIS CHAPTER, OR IN CONNECTION WITH OTHER CONDUCT PERMIT-
TED  UNDER  THIS CHAPTER, AND ANY MEDICAL PROFESSIONAL PROVIDING MEDICAL
CARE TO A PATIENT, MAY AGREE WITH THEIR CLIENT OR PATIENT TO MAINTAIN NO
RECORD, OR ANY REDUCED LEVEL OF RECORD  KEEPING  THAT  PROFESSIONAL  AND
CLIENT  OR  PATIENT  MAY  AGREE.  IN CASE OF SUCH AGREEMENT, THE PROFES-
SIONAL'S ONLY OBLIGATION SHALL BE TO KEEP SUCH RECORDS AS AGREED, AND TO
KEEP A RECORD OF THE AGREEMENT.  SUCH REDUCED RECORD KEEPING IS  CONDUCT
PERMITTED  UNDER  THIS  CHAPTER,  AND  SHALL  ATTRACT THE PROTECTIONS OF
SECTION ONE HUNDRED NINETY OF THIS ARTICLE.
  § 34. The tax law is amended by adding a new article 18-A to  read  as
follows:
                              ARTICLE 18-A
                    PROVISIONS RELATING TO MARIHUANA
SECTION 446.   DEFINITIONS.
        447.   TAXES IMPOSED.
        448.   SURETY BOND.

S. 3040                            41

        449.   COLLECTION OF TAX.
        450.   FUND.
        450-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN.
        450-B. ORDINARY  AND  NECESSARY  EXPENSES  DEDUCTIBLE  FROM  NET
                 INCOME.
  § 446. DEFINITIONS. AS USED IN THIS ARTICLE:
  1. "CONCENTRATED CANNABIS" MEANS  (A)  THE  SEPARATED  RESIN,  WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
NOL, OR ITS ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING  SYSTEM,  OR  DELTA-1
TETRAHYDROCANNABINOL  OR  ITS  ISOMER, DELTA 1 (6) MONOTERPENE NUMBERING
SYSTEM.
  2. "MARIHUANA" MEANS ALL PARTS OF THE PLANT  OF  THE  GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
(EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  3. "MARIHUANA CONSUMER" MEANS A PERSON  TWENTY-ONE  YEARS  OF  AGE  OR
OLDER  WHO PURCHASED MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE BY
PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
  4. "MARIHUANA PROCESSOR" MEANS A PERSON LICENSED BY THE  STATE  LIQUOR
AUTHORITY TO PURCHASE MARIHUANA AND CONCENTRATED CANNABIS FROM MARIHUANA
PRODUCERS,  TO  PROCESS  MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA
INFUSED PRODUCTS, PACKAGE AND LABEL MARIHUANA, CONCENTRATED CANNABIS AND
MARIHUANA INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND SELL MARIHUA-
NA, CONCENTRATED CANNABIS AND MARIHUANA INFUSED PRODUCTS AT WHOLESALE TO
MARIHUANA RETAILERS.
  5. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY  THE  STATE  LIQUOR
AUTHORITY  TO  PRODUCE,  PROCESS,  AND  SELL  MARIHUANA AND CONCENTRATED
CANNABIS AT WHOLESALE TO MARIHUANA PROCESSORS, MARIHUANA  RETAILERS,  OR
OTHER MARIHUANA PRODUCERS, BUT NOT TO CONSUMERS.
  6.  "MARIHUANA  PRODUCTS"  MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA INFUSED PRODUCTS.
  7. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARIHUANA,
MARIHUANA EXTRACTS, OR CONCENTRATED CANNABIS AND ARE INTENDED FOR  HUMAN
USE  OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINT-
MENTS, AND TINCTURES.
  8. "IMMATURE MARIHUANA PLANT" MEANS A MARIHUANA PLANT WITH NO OBSERVA-
BLE FLOWERS OR BUDS.
  9. "MARIHUANA RETAILER" MEANS A PERSON LICENSED BY  THE  STATE  LIQUOR
AUTHORITY  TO  PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA-
INFUSED PRODUCTS FROM MARIHUANA PRODUCERS AND MARIHUANA  PROCESSORS  AND
SELL MARIHUANA, MARIHUANA INFUSED PRODUCTS, AND CONCENTRATED CANNABIS IN
A RETAIL OUTLET.
  10.  "MARIHUANA  RETAILER  FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
LICENSED BY THE STATE LIQUOR AUTHORITY TO  PURCHASE  MARIHUANA,  CONCEN-
TRATED  CANNABIS,  AND MARIHUANA INFUSED PRODUCTS FROM MARIHUANA PRODUC-
ERS, MARIHUANA RETAILERS AND MARIHUANA  PROCESSORS  AND  SELL  MARIHUANA

S. 3040                            42

PRODUCTS  FOR  A  CUSTOMER  TO  CONSUME WHILE THE CUSTOMER IS WITHIN THE
FACILITY.
  § 447. TAXES IMPOSED. 1. (A) AN EXCISE TAX IS HEREBY LEVIED UPON MARI-
HUANA  SOLD  OR  OTHERWISE  TRANSFERRED  FROM A MARIHUANA PROCESSOR TO A
RETAIL MARIHUANA STORE AT A RATE OF:
  (1) FIFTEEN PERCENT OF THE PRICE AT TRANSFER; AND
  (2)(A) THIRTY-FIVE DOLLARS PER OUNCE ON ALL MARIHUANA FLOWERS;
  (B) TEN DOLLARS PER OUNCE ON MARIHUANA LEAVES; AND
  (C) FIVE DOLLARS PER IMMATURE MARIHUANA PLANT.
  (B) TAXES ON CONCENTRATED CANNABIS SHALL BE CALCULATED  BASED  ON  THE
WEIGHT  OF THE PRODUCT USED TO CREATE THE CONCENTRATE. IN THE EVENT THAT
A PERSON HOLDS BOTH A MARIHUANA PRODUCER LICENSE AND A MARIHUANA PROCES-
SORS LICENSE, THE EXCISE TAX SHALL BE LEVIED AT THE TIME OF  SALE  TO  A
MARIHUANA  RETAILER OR MARIHUANA RETAILER FOR ON-PREMISES CONSUMPTION AT
THE SAME RATE BASED ON CONTENT OF  MARIHUANA  OR  CONCENTRATED  CANNABIS
CONTAINED IN THE PRODUCT SOLD.
  2.  FOR  REPORTING PERIODS BEGINNING ON OR AFTER JULY FIRST, TWO THOU-
SAND SEVENTEEN, THE RATES OF TAX UNDER SUBDIVISION ONE OF  THIS  SECTION
SHALL  BE  ADJUSTED  FOR  EACH  BIENNIUM ACCORDING TO THE COST-OF-LIVING
ADJUSTMENT FOR THE CALENDAR YEAR. THE DEPARTMENT  SHALL  RE-COMPUTE  THE
RATES  FOR  EACH  BIENNIUM  BY ADDING TO EACH RATE IN SUBDIVISION ONE OF
THIS SECTION THE PRODUCT OBTAINED BY MULTIPLYING THE RATE  BY  A  FACTOR
THAT IS EQUAL TO 0.25 MULTIPLIED BY THE PERCENTAGE (IF ANY) BY WHICH THE
MONTHLY  AVERAGED  U.S. CITY AVERAGE CONSUMER PRICE INDEX FOR THE TWELVE
CONSECUTIVE MONTHS ENDING AUGUST THIRTY-FIRST OF THE PRIOR CALENDAR YEAR
EXCEEDS THE MONTHLY AVERAGED U.S. CITY AVERAGE CONSUMER PRICE INDEX  FOR
THE  TWELVE  CONSECUTIVE MONTHS ENDING AUGUST THIRTY-FIRST, TWO THOUSAND
FIFTEEN.
  3. THE DEPARTMENT SHALL REGULARLY REVIEW THE RATES OF  THE  TAX  UNDER
SUBDIVISION ONE OF THIS SECTION AND MAKE RECOMMENDATIONS TO THE LEGISLA-
TURE  REGARDING  APPROPRIATE  ADJUSTMENTS TO THE RATES THAT WILL FURTHER
THE PURPOSES OF:
  (A) MAXIMIZING NET REVENUE;
  (B) MINIMIZING THE ILLEGAL MARIHUANA INDUSTRY; AND
  (C) DISCOURAGING THE USE OF MARIHUANA BY MINORS UNDER TWENTY-ONE YEARS
OF AGE.
  § 448. SURETY BOND. MARIHUANA  RETAILER  APPLICANTS  ARE  REQUIRED  TO
SUBMIT  A  SURETY  BOND  WITH  THE DEPARTMENT EQUAL TO TWO MONTHS OF THE
CULTIVATION FACILITY'S ANTICIPATED  RETAIL  MARIHUANA  EXCISE  TAX.  THE
SURETY BOND MUST BE ISSUED BY A COMPANY AUTHORIZED TO DO BUSINESS IN THE
STATE.  PROOF  OF  SURETY  BOND  IS REQUIRED FOR APPROVAL OF APPLICANT'S
RETAIL LICENSE.
  § 449. COLLECTION OF TAX. THIS TAX SHALL BE COLLECTED BY  THE  COMMIS-
SIONER WHO SHALL ESTABLISH A PROCEDURE FOR THE COLLECTION OF THIS TAX.
  §  450.  FUND. PROCEEDS FROM THE TAX SHALL BE GIVEN TO THE STATE COMP-
TROLLER FOR PLACEMENT IN A FUND THAT  SHALL  BE  KNOWN  AS  A  MARIHUANA
REVENUE  FUND. FIFTEEN PERCENT OF THE REVENUE COLLECTED IN THE MARIHUANA
REVENUE FUND SHALL BE DIVIDED EQUALLY BETWEEN (A) THE DIVISION OF CRIMI-
NAL JUSTICE SERVICES  FOR  RE-ENTRY  SUPPORT  SERVICES  FOR  INDIVIDUALS
RELEASED  FROM  PRISON AFTER SERVING TIME FOR DRUG RELATED OFFENSES; (B)
THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE  SERVICES  FOR  DRUG  ABUSE
PREVENTION  AND  TREATMENT PROGRAMS; AND (C) THE DEPARTMENT OF LABOR FOR
APPRENTICESHIP AND JOB  TRAINING  PROGRAMS  TARGETING,  WITH  PREFERENCE
GIVEN  TO  PROGRAMS  TARGETING  CENSUS  TRACTS WITH A POVERTY RATE OF AT
LEAST TWENTY PERCENT OR AN UNEMPLOYMENT RATE OF AT  LEAST  ONE  AND  ONE
QUARTER TIMES THE NEW YORK STATE UNEMPLOYMENT RATE. THE REMAINDER OF THE

S. 3040                            43

REVENUE COLLECTED FROM THIS TAX SHALL GO INTO THE GENERAL FUND.  FOR THE
FIRST  FIVE  YEARS  OF  THE  FUND,  TEN  PERCENT  OF THE ANNUAL PROCEEDS
COLLECTED IN THE MARIHUANA REVENUE FUND SHALL BE PROVIDED TO  THE  STATE
LIQUOR AUTHORITY FOR PROGRAM ADMINISTRATION COSTS.
  §  450-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN. ANY CITY OR TOWN
IN THIS STATE, ACTING THROUGH ITS  LOCAL  LEGISLATIVE  BODY,  IS  HEREBY
AUTHORIZED  AND  EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN ANY
SUCH CITY OR TOWN A SALES TAX ON MARIHUANA RETAILERS AT A RATE  OF  FIVE
PERCENT  OF  THE  SALE  PRICE  OF MARIHUANA PRODUCTS SOLD TO A MARIHUANA
CONSUMER. ANY TAXES IMPOSED PURSUANT TO THE AUTHORITY  OF  THIS  SECTION
SHALL  BE  ADMINISTERED  AND COLLECTED BY THE TAX COMMISSION IN THE SAME
MANNER AS THE TAXES IMPOSED UNDER SECTION  FOUR  HUNDRED  FORTY-NINE  OF
THIS  ARTICLE.  THE  COMMISSIONER  IS  HEREBY  EMPOWERED  TO  MAKE  SUCH
PROVISIONS AS IT  DEEMS  NECESSARY  FOR  THE  JOINT  ADMINISTRATION  AND
COLLECTION  OF  THE STATE AND LOCAL TAXES IMPOSED AND AUTHORIZED BY THIS
ARTICLE.
  § 450-B. ORDINARY AND NECESSARY EXPENSES DEDUCTIBLE FROM  NET  INCOME.
NOTWITHSTANDING  ANY  FEDERAL  TAX LAW TO THE CONTRARY, IN COMPUTING NET
INCOME FOR BUSINESSES EXEMPTED FROM CRIMINAL  PENALTIES  UNDER  ARTICLES
TWO HUNDRED TWENTY AND TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AND ARTI-
CLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW, THERE SHALL BE ALLOWED
AS  A DEDUCTION FROM STATE TAXES ALL THE ORDINARY AND NECESSARY EXPENSES
PAID OR INCURRED DURING THE TAXABLE YEAR IN CARRYING  ON  ANY  TRADE  OR
BUSINESS,  INCLUDING, BUT NOT LIMITED TO, REASONABLE ALLOWANCE FOR SALA-
RIES OR OTHER COMPENSATION FOR PERSONAL SERVICES ACTUALLY RENDERED.
  § 35. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
the laws of 1977 and as relettered by chapter 192 of the laws  of  1980,
are amended to read as follows:
  (i)  prior to the filing of an accusatory instrument in a local crimi-
nal court against such person, the prosecutor elects  not  to  prosecute
such  person.  In such event, the prosecutor shall serve a certification
of such disposition upon the division of criminal justice  services  and
upon  the appropriate police department or law enforcement agency which,
upon receipt thereof, shall comply with  the  provisions  of  paragraphs
(a),  (b),  (c)  and  (d) of subdivision one of this section in the same
manner as is required thereunder with respect to an  order  of  a  court
entered pursuant to said subdivision one[.]; OR
  (j)  following the arrest of such person, the arresting police agency,
prior to the filing of an accusatory  instrument  in  a  local  criminal
court  but subsequent to the forwarding of a copy of the fingerprints of
such person to the division of criminal justice services, elects not  to
proceed  further. In such event, the head of the arresting police agency
shall serve a certification of such disposition  upon  the  division  of
criminal justice services which, upon receipt thereof, shall comply with
the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
this  section  in the same manner as is required thereunder with respect
to an order of a court entered pursuant to said subdivision one[.]; OR
  (k) (i) The accusatory instrument alleged a violation of  article  two
hundred  twenty  or section 240.36 of the penal law, prior to the taking
effect of article  two  hundred  twenty-one  of  the  penal  law,  or  a
violation  of  article two hundred twenty-one of the penal law; (ii) the
sole controlled substance involved is [marijuana] MARIHUANA;  AND  (iii)
the  conviction  was  only  for  a violation or violations[; and (iv) at
least three years have passed since the offense occurred].

S. 3040                            44

  § 36. Subdivision 1 of section 170.56 of the criminal  procedure  law,
as  amended  by  chapter  360 of the laws of 1977, is amended to read as
follows:
  1.  Upon or after arraignment in a local criminal court upon an infor-
mation, a prosecutor's information or a misdemeanor complaint, where the
sole  remaining  count  or  counts  charge  a violation or violations of
section 221.05, [221.10,] 221.15, 221.35 or 221.40 of the penal law  and
before the entry of a plea of guilty thereto or commencement of  a trial
thereof,  the  court,  upon  motion  of  a defendant, may order that all
proceedings be suspended and the action adjourned  in  contemplation  of
dismissal,  or upon a finding that adjournment would not be necessary or
appropriate and the setting forth in the record of the reasons for  such
findings,  may  dismiss in furtherance of justice the accusatory instru-
ment; provided, however, that the court may not order  such  adjournment
in  contemplation  of dismissal or dismiss the accusatory instrument if:
(a) the defendant  has  previously  been  granted  such  adjournment  in
contemplation  of  dismissal,  or  (b) the defendant has previously been
granted a dismissal under this section, or (c) the defendant has  previ-
ously  been convicted of any offense involving controlled substances, or
(d) the defendant has previously been  convicted  of  a  crime  and  the
district  attorney  does not consent or (e) the defendant has previously
been adjudicated a youthful offender on the basis of  any  act  or  acts
involving  controlled  substances  and  the  district  attorney does not
consent.  NOTWITHSTANDING THE LIMITATIONS SET FORTH IN THIS SUBDIVISION,
THE COURT MAY ORDER THAT ALL PROCEEDINGS BE  SUSPENDED  AND  THE  ACTION
ADJOURNED  IN  CONTEMPLATION OF DISMISSAL BASED UPON A FINDING OF EXCEP-
TIONAL CIRCUMSTANCES. FOR  PURPOSES  OF  THIS  SUBDIVISION,  EXCEPTIONAL
CIRCUMSTANCES  EXIST WHEN, REGARDLESS OF THE ULTIMATE DISPOSITION OF THE
CASE, THE ENTRY OF A PLEA OF GUILTY IS LIKELY TO RESULT IN SEVERE COLLA-
TERAL CONSEQUENCES, INCLUDING, BUT NOT  LIMITED  TO,  THOSE  THAT  COULD
LEAVE A NONCITIZEN INADMISSIBLE OR REMOVABLE FROM THE UNITED STATES.
  §  37.  Section  210.46  of  the criminal procedure law, as amended by
chapter 360 of the laws of 1977, is amended to read as follows:
§ 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
        in a superior court.
  Upon or after arraignment in a superior court upon an indictment where
the  sole  remaining count or counts charge a violation or violations of
section 221.05, [221.10,] 221.15, 221.35 or 221.40 of the penal law  and
before the entry of a plea of guilty thereto or commencement of a  trial
thereof,  the  court,  upon  motion  of  a defendant, may order that all
proceedings be suspended and the action adjourned  in  contemplation  of
dismissal  or  may  dismiss the indictment in furtherance of justice, in
accordance with the provisions of section 170.56 of this chapter.
  § 38. Paragraphs (h) and (i) of subdivision 1 of section 440.10 of the
criminal procedure law, paragraph (h) as amended by chapter 332  of  the
laws  of 2010 and paragraph (i) as amended by chapter 368 of the laws of
2015, are amended and a new paragraph (j) is added to read as follows:
  (h) The judgment was obtained in violation of a right of the defendant
under the constitution of this state or of the United States; [or]
  (i) The judgment is a conviction where the arresting charge was  under
section  240.37 (loitering for the purpose of engaging in a prostitution
offense, provided that the defendant was not alleged to be loitering for
the purpose of patronizing a person for prostitution or promoting  pros-
titution)  or  230.00 (prostitution) or 230.03 (prostitution in a school
zone) of the penal law, and the defendant's participation in the offense
was a result of having been a victim of sex  trafficking  under  section

S. 3040                            45

230.34  of  the penal law, labor trafficking under section 135.35 of the
penal law, aggravated labor trafficking  under  section  135.37  of  the
penal  law,  compelling  prostitution  under section 230.33 of the penal
law,  or trafficking in persons under the Trafficking Victims Protection
Act (United States Code, title 22, chapter 78); provided that
  (i) a motion under this paragraph shall be made  with  due  diligence,
after  the  defendant  has  ceased to be a victim of such trafficking or
compelling prostitution crime or has sought services for victims of such
trafficking or compelling  prostitution  crime,  subject  to  reasonable
concerns  for the safety of the defendant, family members of the defend-
ant, or other victims of such  trafficking  or  compelling  prostitution
crime  that  may  be  jeopardized by the bringing of such motion, or for
other reasons consistent with the purpose of this paragraph; and
  (ii) official documentation of the defendant's status as a  victim  of
trafficking,  compelling  prostitution  or trafficking in persons at the
time of the offense from a federal, state  or  local  government  agency
shall  create  a  presumption  that the defendant's participation in the
offense was a result of having been a victim of sex trafficking, compel-
ling prostitution or trafficking in persons, but shall not  be  required
for granting a motion under this paragraph[.]; OR
  (J)  THE  JUDGMENT  OCCURRED PRIOR TO THE EFFECTIVE DATE OF THIS PARA-
GRAPH AND IS A CONVICTION FOR:
  (I) AN OFFENSE AS DEFINED BY SECTION 221.10 OF THE PENAL LAW (CRIMINAL
POSSESSION OF MARIHUANA IN THE FIFTH DEGREE), AS IN EFFECT PRIOR TO  THE
EFFECTIVE  DATE  OF THIS PARAGRAPH, PROVIDED THAT THE ACCUSATORY INSTRU-
MENT THAT UNDERLIES THE JUDGMENT DOES NOT INCLUDE AN ALLEGATION THAT THE
DEFENDANT POSSESSED MORE THAN TWENTY-FIVE GRAMS OF MARIHUANA; OR
  (II) AN OFFENSE AS DEFINED BY FORMER SECTION 221.35 OF THE  PENAL  LAW
(CRIMINAL SALE OF MARIHUANA IN THE FIFTH DEGREE).
  §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
follows:
  6.  If  the court grants a motion under paragraph (i) OR PARAGRAPH (J)
of subdivision one of this section, it  must  vacate  the  judgment  and
dismiss  the  accusatory instrument, and may take such additional action
as is appropriate in the circumstances.
  § 40. Section 440.46 of  the  criminal  procedure  law,  as  added  by
section  9  of part AAA of chapter 56 of the laws of 2009, subdivision 1
as amended by section 79 of subpart B of part C of  chapter  62  of  the
laws of 2011, is amended to read as follows:
§ 440.46 Motion for resentence; certain controlled substance offenders.
  1.  A  PERSON  MAY,  UPON NOTICE TO THE APPROPRIATE DISTRICT ATTORNEY,
APPLY FOR RESENTENCING  OR  REDESIGNATION  TO  A  DETERMINATE  SENTENCE,
SUBJECT TO THE FOLLOWING CRITERIA:
  A.  Any  person  in  the  custody of the department of corrections and
community supervision convicted of a class B felony offense  defined  in
article two hundred twenty of the penal law which was committed prior to
January  thirteenth,  two thousand five, who is serving an indeterminate
sentence with a maximum term of more than three years, may[,  except  as
provided  in subdivision five of this section, upon notice to the appro-
priate district attorney,] apply to  be  resentenced  to  a  determinate
sentence in accordance with sections 60.04 and 70.70 of the penal law in
the court which imposed the sentence.
  [2.]  (I) As part of any such application, the defendant may also move
to be resentenced to a determinate sentence in accordance  with  section
70.70  of  the  penal  law  for  any one or more class C, D, or E felony

S. 3040                            46

offenses defined in article two hundred twenty or two hundred twenty-one
of the penal law, the sentence or sentences for which  were  imposed  by
the sentencing court at the same time or were included in the same order
of commitment as such class B felony.
  (II)  THE  PROVISIONS  OF THIS PARAGRAPH SHALL NOT APPLY TO ANY PERSON
WHO IS SERVING A SENTENCE ON A CONVICTION FOR OR HAS A PREDICATE  FELONY
CONVICTION  FOR  AN EXCLUSION OFFENSE. FOR PURPOSES OF THIS SUBDIVISION,
AN "EXCLUSION OFFENSE" IS: (A) A CRIME FOR WHICH THE PERSON  WAS  PREVI-
OUSLY  CONVICTED  WITHIN  THE  PRECEDING  TEN  YEARS, EXCLUDING ANY TIME
DURING WHICH THE OFFENDER WAS INCARCERATED FOR ANY  REASON  BETWEEN  THE
TIME  OF COMMISSION OF THE PREVIOUS FELONY AND THE TIME OF COMMISSION OF
THE PRESENT FELONY, WHICH WAS: (1) A VIOLENT FELONY OFFENSE  AS  DEFINED
IN  SECTION 70.02 OF THE PENAL LAW; OR (2) ANY OTHER OFFENSE FOR WHICH A
MERIT TIME ALLOWANCE IS NOT AVAILABLE PURSUANT TO SUBPARAGRAPH  (II)  OF
PARAGRAPH  (D)  OF SUBDIVISION ONE OF SECTION EIGHT HUNDRED THREE OF THE
CORRECTION LAW; OR (B) A  SECOND  VIOLENT  FELONY  OFFENSE  PURSUANT  TO
SECTION  70.04  OF  THE PENAL LAW OR A PERSISTENT VIOLENT FELONY OFFENSE
PURSUANT TO SECTION 70.08 OF THE PENAL LAW  FOR  WHICH  THE  PERSON  HAS
PREVIOUSLY BEEN ADJUDICATED.
  B.  A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER BY
TRIAL OR BY PLEA, OF AN OFFENSE DEFINED IN THE FORMER  SECTIONS  221.25,
221.30, 221.50, OR 221.55 AND SECTIONS 221.15, 221.20, 221.35, OR 221.45
OF THE PENAL LAW PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH MAY APPLY
TO  BE RESENTENCED TO A DETERMINATE SENTENCE IN ACCORDANCE WITH SECTIONS
221.15, 221.20, 221.35, 221.40, OR 221.45 OF THE PENAL LAW, AS  AMENDED,
IN THE COURT WHICH IMPOSED THE SENTENCE.
  C.  A  PERSON  WHO HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION,
WHETHER BY TRIAL OR BY PLEA,  OF  AN  OFFENSE  IN  THE  FORMER  SECTIONS
221.25,  221.30,  221.50, OR 221.55 OF THE PENAL LAW PRIOR TO THE EFFEC-
TIVE DATE OF THIS  PARAGRAPH  MAY  APPLY  FOR  RE-DESIGNATION  OF  THEIR
CONVICTION  TO  A  DETERMINATE  CONVICTION  IN  ACCORDANCE WITH SECTIONS
221.15, 221.20, 221.35, 221.40, OR 221.45 OF THE PENAL LAW, AS  AMENDED,
IN THE COURT WHICH IMPOSED THE SENTENCE.
  [3.]  2.  The  provisions  of  section  twenty-three  of chapter seven
hundred thirty-eight of the laws of two thousand four shall  govern  the
proceedings  on  and  determination of a motion brought pursuant to this
section; provided, however that the court's consideration of the  insti-
tutional  record  of confinement of such person shall include but not be
limited to such person's participation in or willingness to  participate
in  treatment  or other programming while incarcerated and such person's
disciplinary history. The fact that a person may  have  been  unable  to
participate in treatment or other programming while incarcerated despite
such  person's  willingness  to do so shall not be considered a negative
factor in determining a motion pursuant to this section.
  [4.] 3. Subdivision one of section seven hundred seventeen and  subdi-
vision  four  of section seven hundred twenty-two of the county law, and
the related provisions of article eighteen-A of such law, shall apply to
the preparation of and proceedings on motions pursuant to this  section,
including any appeals.
  [5.  The  provisions of this section shall not apply to any person who
is serving a sentence on a conviction for  or  has  a  predicate  felony
conviction  for  an exclusion offense. For purposes of this subdivision,
an "exclusion offense" is:
  (a) a crime for which the person was previously convicted  within  the
preceding  ten  years,  excluding any time during which the offender was
incarcerated for any reason between the time of commission of the previ-

S. 3040                            47

ous felony and the time of commission of the present felony, which  was:
(i)  a  violent  felony offense as defined in section 70.02 of the penal
law; or (ii) any other offense for which a merit time allowance  is  not
available  pursuant to subparagraph (ii) of paragraph (d) of subdivision
one of section eight hundred three of the correction law; or
  (b) a second violent felony offense pursuant to section 70.04  of  the
penal  law  or  a  persistent violent felony offense pursuant to section
70.08 of the penal law for which the person has previously been  adjudi-
cated.]
  4.  UNDER  NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS SECTION RESULT
IN THE IMPOSITION OF A TERM LONGER THAN THE ORIGINAL SENTENCE.
  5. NOTHING IN THIS SECTION IS INTENDED TO  DIMINISH  OR  ABROGATE  ANY
RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
  § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
procedure  law, as amended by chapter 37 of the laws of 2014, is amended
to read as follows:
  (c) Criminal possession of  a  controlled  substance  in  the  seventh
degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
possession of a controlled substance in the fifth degree as  defined  in
section  220.06  of  the  penal law, criminal possession of a controlled
substance in the fourth degree as defined in section 220.09 of the penal
law, criminal possession of a controlled substance in the  third  degree
as  defined in section 220.16 of the penal law, criminal possession of a
controlled substance in the second degree as defined in  section  220.18
of  the  penal law, criminal possession of a controlled substance in the
first degree as defined in section 220.21 of  the  penal  law,  criminal
sale of a controlled substance in the fifth degree as defined in section
220.31  of the penal law, criminal sale of a controlled substance in the
fourth degree as defined in section 220.34 of the  penal  law,  criminal
sale of a controlled substance in the third degree as defined in section
220.39  of the penal law, criminal sale of a controlled substance in the
second degree as defined in section 220.41 of the  penal  law,  criminal
sale of a controlled substance in the first degree as defined in section
220.43  of  the penal law, criminally possessing a hypodermic instrument
as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
prescription  for  a controlled substance or a controlled substance by a
practitioner or pharmacist as defined in section  220.65  of  the  penal
law,  criminal  possession  of methamphetamine manufacturing material in
the second degree as defined in section 220.70 of the penal law,  crimi-
nal  possession  of  methamphetamine manufacturing material in the first
degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
possession of precursors of methamphetamine as defined in section 220.72
of  the  penal law, unlawful manufacture of methamphetamine in the third
degree as defined in section 220.73 of the penal law, unlawful  manufac-
ture  of  methamphetamine  in  the  second  degree as defined in section
220.74 of the penal law, unlawful manufacture of methamphetamine in  the
first  degree  as  defined  in section 220.75 of the penal law, unlawful
disposal of methamphetamine laboratory material as  defined  in  section
220.76  of  the penal law, operating as a major trafficker as defined in
section 220.77 of the penal law, [criminal possession  of  marihuana  in
the first degree as defined in section 221.30 of the penal law, criminal
sale  of  marihuana  in the first degree as defined in section 221.55 of
the penal law,] promoting gambling in the second degree  as  defined  in
section  225.05 of the penal law, promoting gambling in the first degree
as defined in section 225.10 of the penal law,  possession  of  gambling
records  in  the second degree as defined in section 225.15 of the penal

S. 3040                            48

law, possession of gambling records in the first degree  as  defined  in
section  225.20 of the penal law, and possession of a gambling device as
defined in section 225.30 of the penal law;
  § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
9  of  section  1310 of the civil practice law and rules, paragraphs (b)
and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
are amended to read as follows:
  (b) on three or more occasions, engaging  in  conduct  constituting  a
violation  of  any  of  the  felonies defined in section 220.09, 220.16,
220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] OR 220.43 [or  221.55]
of  the  penal law, which violations do not constitute a single criminal
offense as defined in subdivision one of section 40.10 of  the  criminal
procedure law, or a single criminal transaction, as defined in paragraph
(a)  of  subdivision two of section 40.10 of the criminal procedure law,
and at least one of which resulted in a conviction of such  offense,  or
where  the  accusatory  instrument charges one or more of such felonies,
conviction upon a plea of guilty to a felony  for  which  such  plea  is
otherwise authorized by law; or
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
nal  defendant  for  a violation of section 221.30 of the penal law,] or
where the accusatory instrument charges any such felony, conviction upon
a plea of guilty to a felony for which the plea is otherwise  authorized
by  law,  together with evidence which: (i) provides substantial indicia
that the defendant used the real property  to  engage  in  a  continual,
ongoing  course  of  conduct involving the unlawful mixing, compounding,
manufacturing, warehousing, or packaging of  controlled  substances  [or
where  the  conviction is for a violation of section 221.30 of the penal
law, marijuana,] as part of an illegal trade or business for  gain;  and
(ii) establishes, where the conviction is for possession of a controlled
substance  [or where the conviction is for a violation of section 221.30
of the penal law, marijuana], that such possession was with  the  intent
to sell it.
  [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
article two hundred twenty or section 221.30  or  221.55  of  the  penal
law.]
  9.  "Criminal defendant" means a person who has criminal liability for
a crime defined in subdivisions five and six [hereof] OF  THIS  SECTION.
For purposes of this article, a person has criminal liability when [(a)]
he has been convicted of a post-conviction forfeiture crime[, or (b) the
claiming  authority  proves  by  clear and convincing evidence that such
person has committed an act in violation of article two  hundred  twenty
or section 221.30 or 221.55 of the penal law].
  §  43. Subdivision 3-a and paragraphs (a) and (b) of subdivision 11 of
section 1311 of the civil practice law and  rules,  subdivision  3-a  as
added  by  chapter 655 of the laws of 1990 and paragraphs (a) and (b) of
subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the
laws of 2010, are amended to read as follows:
  3-a. Conviction of a person in a criminal action  upon  an  accusatory
instrument  which  includes  one  or  more  of the felonies specified in
subdivision four-b of section thirteen hundred ten of this  article,  of
any  felony other than such felonies, shall not preclude a defendant, in
any subsequent proceeding under this article where that conviction is at
issue, from adducing evidence that the conduct underlying the conviction
would not establish the elements of any of  the  felonies  specified  in

S. 3040                            49

such subdivision other than the one to which the criminal defendant pled
guilty.  If the defendant does adduce such evidence, the burden shall be
upon the claiming authority to prove, by clear and convincing  evidence,
that  the conduct underlying the criminal conviction would establish the
elements of the felony specified in such subdivision. Nothing  contained
in  this  subdivision  shall  affect the validity of a settlement of any
forfeiture action negotiated between the claiming authority and a crimi-
nal defendant contemporaneously with the taking of a plea of guilty in a
criminal action to any felony defined in article two hundred twenty  [or
section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
commit the same.
  (a)  Any  stipulation or settlement agreement between the parties to a
forfeiture action shall be filed with the clerk of the  court  in  which
the forfeiture action is pending. No stipulation or settlement agreement
shall  be  accepted  for filing unless it is accompanied by an affidavit
from the claiming authority that written notice of  the  stipulation  or
settlement agreement, including the terms of such, has been given to the
office  of  victim  services,  the  state  division  of criminal justice
services[, and in the case of a forfeiture based on a felony defined  in
article two hundred twenty or section 221.30 or 221.55 of the penal law,
to the state division of substance abuse services].
  (b)  No  judgment  or order of forfeiture shall be accepted for filing
unless it is accompanied by an affidavit  from  the  claiming  authority
that  written  notice of judgment or order, including the terms of such,
has been given to the office of victim services, the state  division  of
criminal  justice  services[, and in the case of a forfeiture based on a
felony defined in article two hundred twenty or section 221.30 or 221.55
of the penal law, to the state division of substance abuse services].
  § 44. Subdivision 13 of section 89-f of the general business  law,  as
added by chapter 336 of the laws of 1992, is amended to read as follows:
  13.  "Serious  offense"  shall  mean any felony involving the offenses
enumerated in the closing paragraph  of  this  subdivision;  a  criminal
solicitation  of  or a conspiracy to commit or an attempt to commit or a
criminal facilitation of a felony involving the offenses  enumerated  in
the  closing paragraph of this subdivision, which criminal solicitation,
conspiracy, attempt or criminal facilitation itself constitutes a felony
or any offense in any other jurisdiction  which  if  committed  in  this
state  would  constitute a felony; any offense in any other jurisdiction
which if committed in this state would constitute a felony provided that
for the purposes of this article, none of the following shall be consid-
ered criminal convictions or reported as  such:  (i)  a  conviction  for
which an executive pardon has been issued pursuant to the executive law;
(ii)  a  conviction  which  has  been vacated and replaced by a youthful
offender finding pursuant to article seven hundred twenty of the  crimi-
nal  procedure  law,  or  the  applicable provisions of law of any other
jurisdiction; or (iii) a conviction  the  records  of  which  have  been
sealed  pursuant  to the applicable provisions of the laws of this state
or of any other jurisdiction; and (iv)  a  conviction  for  which  other
evidence  of successful rehabilitation to remove the disability has been
issued.
  Felonies involving: assault, aggravated assault and reckless endanger-
ment pursuant to article one  hundred  twenty;  vehicular  manslaughter,
manslaughter and murder pursuant to article one hundred twenty-five; sex
offenses  pursuant to article one hundred thirty; unlawful imprisonment,
kidnapping or coercion pursuant  to  article  one  hundred  thirty-five;
criminal  trespass  and  burglary pursuant to article one hundred forty;

S. 3040                            50

criminal mischief, criminal tampering  and  tampering  with  a  consumer
product  pursuant  to  article one hundred forty-five; arson pursuant to
article one hundred fifty; larceny and offenses involving theft pursuant
to article one hundred fifty-five; offenses involving computers pursuant
to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
hundred sixty; criminal possession of stolen property pursuant to  arti-
cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
article one hundred seventy; involving false written statements pursuant
to article one hundred seventy-five; commercial bribing  and  commercial
bribe  receiving pursuant to article one hundred eighty; criminal imper-
sonation and scheme to defraud pursuant to article one  hundred  ninety;
bribery involving public servants and related offenses pursuant to arti-
cle  two  hundred;  perjury and related offenses pursuant to article two
hundred ten; tampering with a witness, intimidating a victim or  witness
and  tampering  with  physical  evidence pursuant to article two hundred
fifteen; criminal possession  of  a  controlled  substance  pursuant  to
sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
220.41, 220.43 and 220.44; criminal sale of [marijuana] MARIHUANA IN THE
FIRST DEGREE pursuant to [sections] SECTION 221.45[, 221.50 and 221.55];
riot  in  the  first  degree, aggravated harassment in the first degree,
criminal nuisance in the first degree and falsely reporting an  incident
in the second or first degree pursuant to article two hundred forty; and
crimes  against public safety pursuant to article two hundred sixty-five
of the penal law.
  § 45. Paragraph (f) of subdivision 2 of section  850  of  the  general
business law is REPEALED.
  §  46.  Paragraph  (h)  of subdivision 2 of section 850 of the general
business law, as amended by chapter 812 of the laws of 1980, is  amended
to read as follows:
  (h)  Objects, used or designed for the purpose of ingesting, inhaling,
or otherwise introducing [marihuana,] cocaine, hashish, or  hashish  oil
into the human body.
  §  47.  Paragraph  a  of  subdivision  4-a of section 165 of the state
finance law, as added by chapter 95 of the laws of 2000, is  amended  to
read as follows:
  a.  In  order  to  advance  specific  economic  goals,  New York state
labelled wines, as defined in subdivision [twenty-a] TWENTY-J of section
three of the alcoholic beverage control law, shall have  favored  source
status for the purposes of procurement in accordance with the provisions
of this subdivision.  Procurement of these New York state labelled wines
shall  be  exempt from the competitive procurement provisions of section
one hundred sixty-three of this article and other  competitive  procure-
ment  statutes.    Such exemption shall apply to New York state labelled
wines as defined in subdivision [twenty-a] TWENTY-J of section three  of
the  alcoholic  beverage  control  law  produced by a licensed winery as
defined in section seventy-six of the alcoholic beverage control law.
  § 48. Subdivision 7 of section 995 of the executive law, as amended by
chapter 19 of the laws of 2012, is amended to read as follows:
  7. "Designated offender"  means  a  person  convicted  of  any  felony
defined  in  any  chapter  of  the  laws of the state or any misdemeanor
defined in the penal law [except that  where  the  person  is  convicted
under  section  221.10  of  the penal law, only a person convicted under
subdivision two of such section, or a person convicted under subdivision
one of such section who stands previously  convicted  of  any  crime  as
defined in subdivision six of section 10.00 of the penal law].

S. 3040                            51

  § 49. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
penal law, paragraph (b) as amended by section 31 of part AAA of chapter
56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
laws of 1990, are amended to read as follows:
  (b) three or more violations of any of the felonies defined in section
220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
220.43[,] OR 220.77[, or 221.55] of this chapter,  which  violations  do
not  constitute  a single criminal offense as defined in subdivision one
of section 40.10 of the criminal procedure law,  or  a  single  criminal
transaction,  as  defined in paragraph (a) of subdivision two of section
40.10 of the criminal procedure law, and at least one of which  resulted
in  a  conviction  of  such  offense, or where the accusatory instrument
charges one or more of such felonies, conviction upon a plea  of  guilty
to a felony for which such plea is otherwise authorized by law; or
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or  where  the
accusatory instrument charges any such felony, conviction upon a plea of
guilty  to  a  felony for which the plea is otherwise authorized by law,
together with evidence which: (i) provides substantial indicia that  the
defendant  used  the  real  property  to  engage in a continual, ongoing
course of conduct involving the unlawful mixing,  compounding,  manufac-
turing, warehousing, or packaging of controlled substances [or where the
conviction  is  for a violation of section 221.30 of this chapter, mari-
juana] as part of an illegal trade or business for gain; and (ii) estab-
lishes, where the conviction is for possession of a controlled substance
[or where the conviction is for a violation of section  221.30  of  this
chapter,  marijuana],  that  such possession was with the intent to sell
it.
  § 50. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
amended to read as follows:
  (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
subdivision one and subparagraph (i) of paragraph (c) of subdivision two
of  this  section  that  result in disqualification for a period of five
years shall include a conviction under sections 100.10, 105.13,  115.05,
120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
the  aforesaid  offenses  under  section 110.00 of the penal law, or any
similar offenses committed under a former section of the penal  law,  or
any  offenses  committed  under  a former section of the penal law which
would constitute violations of the aforesaid sections of the penal  law,
or  any  offenses  committed  outside  this state which would constitute
violations of the aforesaid sections of the penal law.
  § 51. Appropriation.  The sum of five million dollars ($5,000,000)  is
hereby  appropriated  to  the New York State Liquor Authority out of any
moneys in the state treasury in the general fund to the  credit  of  the
state purposes account, not otherwise appropriated, and made immediately
available,  for  the purpose of carrying out the provisions of this act.
Such moneys shall be payable on the audit and warrant of the comptroller

S. 3040                            52

on vouchers certified or approved by the superintendent or the  chairman
of the New York State Liquor Authority in the manner prescribed by law.
  §  52.  Severability.  If any provision or term of this act is for any
reason declared unconstitutional or invalid or ineffective by any  court
of  competent  jurisdiction, such decision shall not affect the validity
of the effectiveness of the remaining portions of this act or  any  part
thereof.
  §  53.  This act shall take effect immediately; provided, however that
the amendments to subdivision 12 of section 17 of the alcoholic beverage
control law made by section twenty-six of this act shall take effect  on
the  same date as the reversion of such section as provided in section 4
of chapter 118 of the laws of 2012, as amended.

Co-Sponsors

view additional co-sponsors

S3040A - Details

See Assembly Version of this Bill:: A3506
Current Committee:: Senate Finance
Law Section:: Public Health Law
Laws Affected:: Amd Various Laws, generally
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6005, A8341
2015-2016: S1747, A3089
2019-2020: S1527, A1617
2021-2022: S854, A1248

S3040A - Summary

S3040A - Sponsor Memo

 BILL NUMBER:  S3040A

 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 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 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 marihuana control fund and the marihuana revenue 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 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;
and making an appropriation therefor

 SUMMARY OF SPECIFIC PROVISIONS :

Section one of the bill is the title.

Section two of the bill is comprised of legislative findings and
statements 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
twenty-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.

Sections twenty-one of the bill amends section 2 of the Alcoholic
Beverage 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
Beverage Control Law to include definitions of Concentrated Cannabis,
Marihuana, and Marihuana consumers, processors, producer, products,
infused products, retailer and retailer for on-premises consumption,
and unreasonably 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 65-e to the
Alcoholic Beverage Control law establishing restrictions for personal
use of marihuana, 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
Beverage 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,
processing, 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 82 and 82-a to the
State Finance law establishing the marihuana control fund and
marihuana revenue fund

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 comptroller known as the marihuana revenue fund.
Proceeds will be used to fund research, drug treatment, community
grants in communities impacted by the drug war and education.
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
adjournment 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 amends section 440.46 of the criminal
procedure law to provide for an application for resentencing for
certain marihuana related offenses.

Section forty-one through forty-four of the bill of the bill update
cross references to amended sections of the penal law.
Section forty-five and forty-six of the bill amend section 850 of the
General Business Law to remove references to marihuana from
prohibitions on the sale of drug paraphernalia.

Section forty-seven of the bill update cross references in the state
finance law to amended sections in the alcoholic beverage control law.

Section forty-eight through fifty of the bill update cross references
to amended sections of the penal law.

Section fifty-one of the bill provides for an appropriation of five
million dollars to the State Liquor Authority for implementation of
this act.

Section fifty-two is a severability clause.

Section fifty-three of the bill is the effective date.

 JUSTIFICATION :

Existing marihuana laws have not been beneficial to the welfare of the
general public. Existing laws have been ineffective in reducing or
curbing marihuana use and have instead resulted in devastating
collateral consequences that inhibit an otherwise law-abiding
citizen's ability to access housing, employment opportunities, and
other vital services. Existing laws have also created an illicit
market that represents a threat to public health and reduces the
ability of the legislature to deter the accessing of marihuana by
minors. Existing marihuana laws have also disproportionately impacted
African-American and Latino communities and cost New York governments
millions of dollars every year to enforce.

The intent of this act is to regulate, control, and tax marihuana in a
manner similar to alcohol, generate millions of dollars in new
revenue, prevent access to marihuana by those under the age of
twenty-one years, reduce the illegal drug market and reduce violent
crime, reduce participation of otherwise law-abiding citizens in the
illicit market, end the racially disparate impact of existing
marihuana laws and create new industries and increase employment.

The New York Police Department arrested 18,136 people for marijuana
possession in 2016, a 9 percent increase from 2015. The enforcement of
present law has disproportionately effected African-American and
Latino communities; often giving first time, non-violent offenders, an
extraneous criminal record. Government health surveys find that young
whites use marihuana at higher rates than young blacks and Latinos.
But in 2016, 95 percent of those charged with marijuana possession in
New York City were African-American or Latino.

Aside from mitigating these issues, the regulation and taxation act
will also help accrue revenue for the state; portions of which will go
back (through government agencies and programs) to communities that
have been impacted by present law.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

Increase revenue for state and local governments. Fiscal implication
assumptions for similar legislation implemented in Colorado, Amendment
64, estimated an annual revenue increase of 5-22 million dollars and
an annual spending increase of .5-1.5 million dollars.  Given the
larger population of New York State this legislation should generate
revenue substantially larger than these estimates.
 EFFECTIVE DATE :
Immediately.

S3040A - Bill Text download pdf


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

                                 3040--A

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                            January 19, 2017
                               ___________

Introduced by Sens. KRUEGER, ALCANTARA, BAILEY, COMRIE, DILAN, HAMILTON,
  HOYLMAN,  MONTGOMERY,  PARKER,  PERALTA, RIVERA, SERRANO -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Finance -- committee discharged, bill amended, 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  marihuana  control  fund  and the marihuana revenue
  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 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  parapher-
  nalia; and making an appropriation therefor

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05327-04-7

S. 3040--A                          2

  Section 1. This act shall be known and may be cited as the  "marihuana
regulation and taxation act".
  §  2.  Legislative  findings  and intent.   The legislature finds that
existing marihuana laws have not been beneficial to the welfare  of  the
general public. Existing laws have been ineffective in reducing or curb-
ing  marihuana  use  and have instead resulted in devastating collateral
consequences that inhibit an otherwise law-abiding citizen's ability  to
access  housing,  employment  opportunities,  and  other vital services.
Existing laws have also created an illicit  market  which  represents  a
threat  to  public  health and reduces the ability of the legislature to
deter the accessing of marihuana by minors. Existing marihuana laws have
also disproportionately impacted African-American  and  Latino  communi-
ties.
  The intent of this act is to regulate, control, and tax marihuana in a
manner  similar to alcohol, generate millions of dollars in new revenue,
prevent access to marihuana by those under the age of twenty-one  years,
reduce  the illegal drug market and reduce violent crime, reduce partic-
ipation of otherwise law-abiding citizens in the illicit market, end the
racially disparate impact of existing  marihuana  laws  and  create  new
industries and increase employment.
  Nothing in this act is intended to limit the authority of any district
government  agency  or office or employers to enact and enforce policies
pertaining to marihuana in the workplace, to  allow  driving  under  the
influence  of  marihuana, to allow individuals to engage in conduct that
endangers others, to allow smoking marihuana in any location where smok-
ing tobacco is prohibited, or to require any individual to engage in any
conduct that violates federal law or to exempt anyone from any  require-
ment  of  federal law or pose any obstacle to the federal enforcement of
federal law.
  Nothing in this act is intended to limit any privileges or rights of a
medical marihuana patient or medical marihuana caregiver under  the  New
York Compassionate Care Act.
  § 3. Section 3302 of the public health law, as added by chapter 878 of
the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23,  24,
25,  26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998,
subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
and 40 as added by chapter 178 of the laws of  2010,  paragraph  (a)  of
subdivision  20, the opening paragraph of subdivision 22 and subdivision
29 as amended by chapter 163 of the laws  of  1973,  subdivision  31  as
amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
vision  41 as added by section 6 of part A of chapter 447 of the laws of
2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
chapter 60 of the laws of 2014, is amended to read as follows:
  §  3302.  Definitions  of terms of general use in this article. Except
where  different  meanings  are  expressly   specified   in   subsequent
provisions of this article, the following terms have the following mean-
ings:
  1.  "Addict" means a person who habitually uses a controlled substance
for a non-legitimate or unlawful use, and who by reason of such  use  is
dependent thereon.
  2.   "Administer"   means  the  direct  application  of  a  controlled
substance, whether by injection, inhalation,  ingestion,  or  any  other
means, to the body of a patient or research subject.
  3.  "Agent" means an authorized person who acts on behalf of or at the
direction of a manufacturer, distributor, or dispenser. No person may be

S. 3040--A                          3

authorized to so act if under title  VIII  of  the  education  law  such
person  would  not  be  permitted to engage in such conduct. It does not
include a common or contract carrier, public warehouseman,  or  employee
of  the  carrier  or  warehouseman  when  acting in the usual and lawful
course of the carrier's or warehouseman's business.
  4. ["Concentrated Cannabis" means
  (a) the separated resin, whether crude or purified,  obtained  from  a
plant of the genus Cannabis; or
  (b)  a  material,  preparation,  mixture,  compound or other substance
which contains more than two and one-half percent by weight  of  delta-9
tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
terpene numbering system.
  5.] "Controlled substance" means a substance or substances  listed  in
section thirty-three hundred six of this [chapter] TITLE.
  [6.]  5.  "Commissioner"  means commissioner of health of the state of
New York.
  [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
attempted transfer from one person to another of a controlled substance,
whether or not there is an agency relationship.
  [8.]  7.  "Department"  means the department of health of the state of
New York.
  [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
mate user or research subject by lawful means, including by means of the
internet, and includes the packaging, labeling, or compounding necessary
to prepare the substance for such delivery.
  [10.] 9. "Distribute" means to deliver a controlled substance, includ-
ing by means of the internet, other than by administering or dispensing.
  [11.] 10. "Distributor" means a person who  distributes  a  controlled
substance.
  [12.]  11.  "Diversion" means manufacture, possession, delivery or use
of a controlled substance by a person or in a  manner  not  specifically
authorized by law.
  [13.] 12. "Drug" means
  (a) substances recognized as drugs in the official United States Phar-
macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
official National Formulary, or any supplement to any of them;
  (b) substances intended for use in the  diagnosis,  cure,  mitigation,
treatment, or prevention of disease in man or animals; and
  (c) substances (other than food) intended to affect the structure or a
function  of  the  body of man or animal. It does not include devices or
their components, parts, or accessories.
  [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
United States Department of Justice, or its successor agency.
  [15.]  14. "Federal controlled substances act" means the Comprehensive
Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
any  act  or  acts  amendatory  or  supplemental  thereto or regulations
promulgated thereunder.
  [16.] 15. "Federal registration number" means such number assigned  by
the  Federal agency to any person authorized to manufacture, distribute,
sell, dispense or administer controlled substances.
  [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
repeated  use of any controlled substance for non-legitimate or unlawful
use is in danger of becoming, dependent upon such substance.
  [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental

S. 3040--A                          4

hospital or similar facility approved and certified by the department as
authorized to  obtain  controlled  substances  by  distribution  and  to
dispense and administer such substances pursuant to the order of a prac-
titioner.
  [19.]  18.  "License"  means  a  written  authorization  issued by the
department or the New York  state  department  of  education  permitting
persons  to  engage  in  a specified activity with respect to controlled
substances.
  [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
gation,   compounding,   cultivation,  conversion  or  processing  of  a
controlled substance, either directly or  indirectly  or  by  extraction
from substances of natural origin, or independently by means of chemical
synthesis, or by a combination of extraction and chemical synthesis, and
includes  any  packaging  or repackaging of the substance or labeling or
relabeling of its container, except that this term does not include  the
preparation,   compounding,   packaging  or  labeling  of  a  controlled
substance:
  (a) by a practitioner as an incident to his administering or  dispens-
ing  of  a  controlled substance in the course of his professional prac-
tice; or
  (b) by a practitioner, or by his authorized  agent  under  his  super-
vision, for the purpose of, or as an incident to, research, teaching, or
chemical analysis and not for sale; or
  (c)  by  a pharmacist as an incident to his dispensing of a controlled
substance in the course of his professional practice.
  [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
whether  growing or not; the seeds thereof; the resin extracted from any
part of the plant; and every compound,  manufacture,  salt,  derivative,
mixture,  or  preparation  of the plant, its seeds or resin. It does not
include the mature stalks of the plant, fiber produced from the  stalks,
oil  or cake made from the seeds of the plant, any other compound, manu-
facture, salt, derivative, mixture, or preparation of the mature  stalks
(except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
sterilized seed of the plant which is incapable of germination.
  22.] 20. "Narcotic drug" means any of the following, whether  produced
directly  or  indirectly  by  extraction  from  substances  of vegetable
origin, or independently by means of chemical synthesis, or by a  combi-
nation of extraction and chemical synthesis:
  (a)  opium and opiate, and any salt, compound, derivative, or prepara-
tion of opium or opiate;
  (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
which  is  chemically equivalent or identical with any of the substances
referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but  not
including the isoquinoline alkaloids of opium;
  (c) opium poppy and poppy straw.
  [23.]  21. "Opiate" means any substance having an addiction-forming or
addiction-sustaining liability similar to morphine or being  capable  of
conversion  into a drug having addiction-forming or addiction-sustaining
liability. It  does  not  include,  unless  specifically  designated  as
controlled  under section [3306] THIRTY-THREE HUNDRED SIX of this [arti-
cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
its salts (dextromethorphan). It does include its racemic and  levorota-
tory forms.
  [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
somniferum L., except its seeds.

S. 3040--A                          5

  [25.] 23. "Person" means individual, institution, corporation, govern-
ment or governmental subdivision  or  agency,  business  trust,  estate,
trust, partnership or association, or any other legal entity.
  [26.]  24. "Pharmacist" means any person licensed by the state depart-
ment of education to practice pharmacy.
  [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
York  state  board  of  pharmacy  and registered with the Federal agency
pursuant to the federal controlled substances act.
  [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
opium poppy, after mowing.
  [29.] 27. "Practitioner" means:
  A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
gator, or other person licensed, or  otherwise  permitted  to  dispense,
administer or conduct research with respect to a controlled substance in
the  course  of  a  licensed  professional practice or research licensed
pursuant to this article. Such person shall be deemed  a  "practitioner"
only  as  to such substances, or conduct relating to such substances, as
is permitted by his license, permit or otherwise permitted by law.
  [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
prescription,  permitting an ultimate user lawfully to obtain controlled
substances  from  any  person  authorized  by  law  to   dispense   such
substances.
  [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
prescription, an electronic prescription, an oral prescription[,] OR  an
out-of-state prescription[, or any one].
  [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
er, or offer or agree to do the same.
  [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
possesses a controlled substance for his own use or the use by a  member
of  his  household  or  for an animal owned by him or in his custody. It
shall also mean and include a person designated, by a practitioner on  a
prescription, to obtain such substance on behalf of the patient for whom
such substance is intended.
  [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
cations facilities which comprise the worldwide network of networks that
employ a set of industry standards and protocols, or any predecessor  or
successor  protocol  to  such  protocol,  to exchange information of all
kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
networks,  whether  private  or  public, used to transmit information by
electronic means.
  [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
distribution,  or  dispensing  of  a  controlled substance that uses the
internet, is initiated by use of the internet or causes the internet  to
be used.
  [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
in  the  United  States  that sells, delivers or dispenses, or offers to
sell, deliver, or dispense, a  controlled  substance  by  means  of  the
internet.
  [37.]  35.  "Electronic prescription" means a prescription issued with
an electronic signature and transmitted by electronic means  in  accord-
ance with regulations of the commissioner and the commissioner of educa-
tion  and consistent with federal requirements. A prescription generated
on an electronic system that is printed out or transmitted via facsimile
is not considered  an  electronic  prescription  and  must  be  manually
signed.

S. 3040--A                          6

  [38.] 36. "Electronic" means of or relating to technology having elec-
trical, digital, magnetic, wireless, optical, electromagnetic or similar
capabilities. "Electronic" shall not include facsimile.
  [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
created, generated, transmitted, communicated,  received  or  stored  by
means  of electronic equipment and includes the preservation, retrieval,
use and disposition in accordance with regulations of  the  commissioner
and the commissioner of education and in compliance with federal law and
regulations.
  [40.] 38. "Electronic signature" means an electronic sound, symbol, or
process,  attached  to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the  record,
in  accordance with regulations of the commissioner and the commissioner
of education.
  [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
means  the prescription monitoring program registry established pursuant
to section thirty-three hundred forty-three-a of this article.
  [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
drug substance to create a drug with respect to an outsourcing  facility
under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
further defined in this section.
  [43.] 41. "Outsourcing facility" means a facility that:
  (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
section sixty-eight hundred two of the education law;
  (b)  is  currently  registered  as an outsourcing facility pursuant to
article one hundred thirty-seven of the education law; and
  (c) complies with all applicable requirements  of  federal  and  state
law, including the Federal Food, Drug and Cosmetic Act.
  Notwithstanding  any  other  provision of law to the contrary, when an
outsourcing facility distributes or dispenses any  drug  to  any  person
pursuant to a prescription, such outsourcing facility shall be deemed to
be  providing  pharmacy services and shall be subject to all laws, rules
and regulations governing pharmacies and pharmacy services.
  § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
laws of 2006, are amended to read as follows:
  (13) [Marihuana.
  (14)] Mescaline.
  [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
  [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
not, the seeds thereof, any extract from any part  of  such  plant,  and
every  compound, manufacture, salts, derivative, mixture, or preparation
of such plant, its seeds or extracts.
  [(17)] (16) N-ethyl-3-piperidyl benzilate.
  [(18)] (17) N-methyl-3-piperidyl benzilate.
  [(19)] (18) Psilocybin.
  [(20)] (19) Psilocyn.
  [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of  the  substances

S. 3040--A                          7

contained  in the plant, or in the resinous extractives of cannabis, sp.
and/or synthetic substances, derivatives, and their isomers with similar
chemical structure and pharmacological activity such as the following:
  DELTA 1 cis or trans tetrahydrocannabinol, and their optical isomers
  DELTA 6 cis or trans tetrahydrocannabinol, and their optical isomers
  DELTA  3, 4 cis or trans tetrahydrocannabinol, and its optical isomers
(since nomenclature of these substances is not internationally standard-
ized, compounds of these structures, regardless of numerical designation
of atomic positions covered).
  [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
  [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
  [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
phencyclidine, TPCP, TCP.
  [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
  [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
MDE, MDEA.
  [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
N-hydroxy MDA.
  [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
names: TCPY.
  [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
3- (2-aminobutyl) indole; Alpha-ET or AET.
  [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
names: DOET.
  [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
DOB; 2C-B, Nexus.
  [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
optical isomers, salts and salts of isomers.
  § 5. Section 3382 of the public health law, as added by chapter 878 of
the laws of 1972, is amended to read as follows:
  §  3382. Growing of the plant known as Cannabis by unlicensed persons.
A person who, without being licensed so to do under this article,  grows
the  plant  of  the genus Cannabis or knowingly allows it to grow on his
land without  destroying  the  same,  shall  be  guilty  of  a  class  A
misdemeanor,  UNLESS THE PERSON GROWS IN ACCORDANCE WITH SECTIONS 221.05
AND 221.05-A OF THE PENAL LAW.
  § 6. Paragraph (d) of subdivision 3  of  section  1311  of  the  civil
practice  law and rules, as added by chapter 655 of the laws of 1990, is
amended to read as follows:
  (d) In a forfeiture action commenced by a claiming authority against a
defendant,  the  following  rebuttable  presumption  shall  apply:   all
currency  or  negotiable  instruments  payable  to  the  bearer shall be
presumed to be the proceeds of a pre-conviction  forfeiture  crime  when
such currency or negotiable instruments are (i) found in close proximity
to  a  controlled  substance unlawfully possessed by the defendant in an
amount sufficient to constitute a violation of section 220.18 or  220.21
of  the penal law, or (ii) found in close proximity to any quantity of a
controlled  substance  [or  marihuana]  unlawfully  possessed  by   such

S. 3040--A                          8

defendant  in  a  room,  other  than a public place, under circumstances
evincing an intent to unlawfully mix, compound, distribute,  package  or
otherwise prepare for sale such controlled substance [or marihuana].
  §  7.  Subdivision  1  of  section 3397-b of the public health law, as
added by chapter 810 of the laws of 1980, is amended to read as follows:
  1. ["Marijuana"] "MARIHUANA" means [marijuana] MARIHUANA as defined in
[section thirty-three hundred two of this chapter]  SUBDIVISION  SIX  OF
SECTION  220.00 OF THE PENAL LAW and shall also include tetrahydrocanna-
binols or a chemical derivative of tetrahydrocannabinol.
  § 8. Section 114-a of the vehicle and traffic law, as added by chapter
163 of the laws of 1973, is amended to read as follows:
  § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
includes any substance listed in section thirty-three hundred six of the
public  health law AND MARIHUANA AND CONCENTRATED CANNABIS AS DEFINED IN
SECTION 220.00 OF THE PENAL LAW.
  § 9. Subdivisions 5, 6 and 9 of  section  220.00  of  the  penal  law,
subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
subdivisions 21 and 22 are added to read as follows:
  5.  "Controlled  substance"  means any substance listed in schedule I,
II, III, IV or V of section  thirty-three  hundred  six  of  the  public
health  law other than marihuana, but including concentrated cannabis as
defined in [paragraph (a) of subdivision four  of  section  thirty-three
hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
  6.  "Marihuana" means ["marihuana" or "concentrated cannabis" as those
terms are defined in section thirty-three  hundred  two  of  the  public
health  law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROW-
ING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF  THE
PLANT;  AND  EVERY  COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR
PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT DOES NOT  INCLUDE  THE
MATURE  STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR CAKE
MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANUFACTURE, SALT,
DERIVATIVE, MIXTURE, OR PREPARATION OF THE  MATURE  STALKS  (EXCEPT  THE
RESIN  EXTRACTED THEREFROM), FIBER, OIL, OR CAKE, OR THE STERILIZED SEED
OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE  ALL
PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO
MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC).
  9.  "Hallucinogen"  means any controlled substance listed in [schedule
I(d)] PARAGRAPHS (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
(19),  (20) AND (21) OF SUBDIVISION (D) OF SCHEDULE I OF SECTION THIRTY-
THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
  21. "CONCENTRATED CANNABIS" MEANS:
  (A) THE SEPARATED RESIN, WHETHER CRUDE OR PURIFIED,  OBTAINED  FROM  A
PLANT OF THE GENUS CANNABIS; OR
  (B)  A  MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND OR OTHER SUBSTANCE
WHICH CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9  TETRAHYDRO-
CANNABINOL,  OR  ITS  ISOMER,  DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR
DELTA-1 TETRAHYDROCANNABINOL OR ITS  ISOMER,  DELTA  1  (6)  MONOTERPENE
NUMBERING SYSTEM.
  22.  "MARIHUANA  PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS CONTAINING CONCENTRATED MARIHUANA OR CANNABIS
AND OTHER INGREDIENTS.
  § 10.  Subdivision 4 of section 220.06 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:

S. 3040--A                          9

  4.  one  or  more  preparations,  compounds,  mixtures  or  substances
containing  concentrated cannabis as defined in [paragraph (a) of subdi-
vision four of section thirty-three hundred two  of  the  public  health
law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
preparations,  compounds,  mixtures  or  substances  are of an aggregate
weight of one-fourth ounce or more; or
  § 11. Subdivision 10 of section 220.09 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  10. one  or  more  preparations,  compounds,  mixtures  or  substances
containing  concentrated cannabis as defined in [paragraph (a) of subdi-
vision four of section thirty-three hundred two  of  the  public  health
law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
preparations, compounds, mixtures or  substances  are  of  an  aggregate
weight of one ounce or more; or
  §  12. Subdivision 3 of section 220.34 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
four  of  section  thirty-three  hundred  two  of the public health law]
SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
  § 13. Section 220.50 of the penal law, as amended by  chapter  627  of
the laws of 1990, is amended to read as follows:
§ 220.50 Criminally using drug paraphernalia in the second degree.
  A  person  is  guilty  of  criminally  using drug paraphernalia in the
second degree when he knowingly possesses or sells:
  1. Diluents, dilutants or adulterants, including but not  limited  to,
any  of the following: quinine hydrochloride, mannitol, mannite, lactose
or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
under  circumstances  evincing  an intent to use, or under circumstances
evincing knowledge that  some  person  intends  to  use,  the  same  for
purposes  of  unlawfully mixing, compounding, or otherwise preparing any
narcotic drug or stimulant, OTHER THAN MARIHUANA OR CONCENTRATED  CANNA-
BIS; or
  2. Gelatine capsules, glassine envelopes, vials, capsules or any other
material suitable for the packaging of individual quantities of narcotic
drugs  or  stimulants  under circumstances evincing an intent to use, or
under circumstances evincing knowledge that some person intends to  use,
the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
dispensing of any narcotic drug or stimulant, OTHER  THAN  MARIHUANA  OR
CONCENTRATED CANNABIS; or
  3. Scales and balances used or designed for the purpose of weighing or
measuring  controlled substances, under circumstances evincing an intent
to use, or under  circumstances  evincing  knowledge  that  some  person
intends  to use, the same for purpose of unlawfully manufacturing, pack-
aging or dispensing of any narcotic drug or stimulant, OTHER THAN  MARI-
HUANA OR CONCENTRATED CANNABIS.
  Criminally  using drug paraphernalia in the second degree is a class A
misdemeanor.
  § 14.  Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
and 221.40 of the penal law are REPEALED.
  § 15. The penal law is amended by adding two new sections  221.05  and
221.05-a to read as follows:
§ 221.05 PERSONAL USE OF MARIHUANA.
  1.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE FOLLOWING
ACTS ARE LAWFUL UNDER STATE AND LOCAL LAW FOR PERSONS  TWENTY-ONE  YEARS
OF AGE AND OLDER:

S. 3040--A                         10

  (A) POSSESSING, USING, BEING UNDER THE INFLUENCE, DISPLAYING, PURCHAS-
ING,  OBTAINING,  OR TRANSPORTING UP TO TWO POUNDS OF MARIHUANA AND FOUR
AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS;
  (B)  TRANSFERRING,  WITHOUT REMUNERATION, TO A PERSON TWENTY-ONE YEARS
OF AGE AND OLDER UP TO TWO POUNDS OF MARIHUANA  AND  FOUR  AND  ONE-HALF
OUNCES OF CONCENTRATED CANNABIS;
  (C)  POSSESSING, PLANTING, CULTIVATING, HARVESTING, DRYING, PROCESSING
OR TRANSPORTING NOT MORE THAN SIX LIVING MARIHUANA PLANTS AND POSSESSING
THE MARIHUANA PRODUCED BY THE PLANTS;
  (D) SMOKING, INGESTING OR OTHERWISE CONSUMING MARIHUANA PRODUCTS;
  (E) POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING,  MANUFACTUR-
ING,  TRANSPORTING OR GIVING AWAY TO PERSONS TWENTY-ONE YEARS OF AGE AND
OLDER MARIHUANA PARAPHERNALIA; AND
  (F) ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE AND  OLDER
OR  ALLOW PROPERTY TO BE USED IN ANY OF THE ACTS DESCRIBED IN PARAGRAPHS
(A) THROUGH (E) OF THIS SUBDIVISION.
  2. PARAGRAPH (E) OF SUBDIVISION ONE OF THIS  SECTION  IS  INTENDED  TO
MEET  THE REQUIREMENTS OF SUBSECTION (F) OF SECTION 863 OF TITLE TWENTY-
ONE OF THE UNITED STATES CODE (21 U.S.C.  §  863  (F))  BY  AUTHORIZING,
UNDER  STATE LAW, ANY PERSON IN COMPLIANCE WITH THIS SECTION TO MANUFAC-
TURE, POSSESS, OR DISTRIBUTE MARIHUANA PARAPHERNALIA.
  3. MARIHUANA PRODUCTS INVOLVED IN ANY WAY WITH CONDUCT  DEEMED  LAWFUL
BY  THIS SECTION ARE NOT CONTRABAND NOR SUBJECT TO SEIZURE OR FORFEITURE
OF ASSETS UNDER ARTICLE FOUR HUNDRED EIGHTY  OF  THIS  CHAPTER,  SECTION
THIRTEEN  HUNDRED  ELEVEN  OF THE CIVIL PRACTICE LAW AND RULES, OR OTHER
APPLICABLE LAW, AND NO CONDUCT  DEEMED  LAWFUL  BY  THIS  SECTION  SHALL
CONSTITUTE  THE  BASIS  FOR  APPROACH,  SEARCH,  SEIZURE, ARREST, AND/OR
DETENTION.
  4. (A) EXCEPT AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION, NONE OF
THE FOLLOWING SHALL, INDIVIDUALLY OR IN  COMBINATION  WITH  EACH  OTHER,
CONSTITUTE REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE IN ANY
CRIMINAL PROCEEDING:
  (1) THE ODOR OF MARIHUANA OR OF BURNT MARIHUANA;
  (2)  THE  POSSESSION  OF  OR  THE SUSPICION OF POSSESSION OF MARIHUANA
PRODUCTS;
  (3)  THE  POSSESSION  OF  MULTIPLE  CONTAINERS  OF  MARIHUANA  WITHOUT
EVIDENCE  OF  MARIHUANA  QUANTITY IN EXCESS OF SIXTEEN OUNCES OR CONCEN-
TRATED CANNABIS QUANTITY IN EXCESS OF FOUR AND ONE-HALF OUNCES; OR
  (4) THE PRESENCE OF CASH OR CURRENCY CANNOT BE USED AS EVIDENCE IN ANY
CASES INVOLVING CRIMINAL SALE OF MARIHUANA.
  (B) THE POSSESSION OF UP TO TWO OUNCES OF MARIHUANA AND UP TO  SIXTEEN
OUNCES  OF  MARIHUANA  PRODUCTS  CANNOT BE USED AS EVIDENCE IN ANY CASES
INVOLVING CRIMINAL SALE OF MARIHUANA.
  5. SUBDIVISION FOUR OF  THIS  SECTION  SHALL  NOT  APPLY  WHEN  A  LAW
ENFORCEMENT OFFICER IS INVESTIGATING WHETHER A PERSON IS OPERATING OR IN
PHYSICAL CONTROL OF A VEHICLE OR WATERCRAFT WHILE INTOXICATED, UNDER THE
INFLUENCE OF, OR IMPAIRED BY ALCOHOL OR A DRUG OR ANY COMBINATION THERE-
OF  IN VIOLATION OF SECTION ELEVEN HUNDRED NINETY-TWO OF THE VEHICLE AND
TRAFFIC LAW.
  6. POSSESSION OF GREATER THAN TWO POUNDS OF MARIHUANA AND GREATER THAN
FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS IS A VIOLATION PUNISH-
ABLE BY A FINE OF NOT MORE THAN  ONE  HUNDRED  TWENTY-FIVE  DOLLARS  PER
OFFENSE.
§ 221.05-A PERSONAL CULTIVATION OF MARIHUANA.

S. 3040--A                         11

  1.  PERSONAL  CULTIVATION OF MARIHUANA UNDER PARAGRAPH (C) OF SUBDIVI-
SION ONE OF SECTION 221.05 OF THIS ARTICLE IS SUBJECT TO  THE  FOLLOWING
RESTRICTIONS:
  (A)  A  PERSON SHALL PLANT, CULTIVATE, HARVEST, DRY, OR PROCESS PLANTS
IN ACCORDANCE WITH LOCAL ORDINANCES, IF ANY, ADOPTED IN ACCORDANCE  WITH
SUBDIVISION (2) OF THIS SECTION;
  (B)  THE  LIVING  PLANTS  AND  ANY MARIHUANA PRODUCED BY THE PLANTS IN
EXCESS OF TWO POUNDS ARE KEPT WITHIN THE PERSON'S PRIVATE RESIDENCE,  OR
UPON  THE  GROUNDS OF THAT PRIVATE RESIDENCE (E.G., IN AN OUTDOOR GARDEN
AREA), ARE IN A LOCKED SPACE, AND ARE  NOT  VISIBLE  BY  NORMAL  UNAIDED
VISION FROM A PUBLIC PLACE; AND
  (C)  NOT  MORE  THAN  SIX  LIVING  PLANTS  MAY BE PLANTED, CULTIVATED,
HARVESTED, DRIED, OR PROCESSED WITHIN A  SINGLE  PRIVATE  RESIDENCE,  OR
UPON THE GROUNDS OF THAT PRIVATE RESIDENCE, AT ONE TIME.
  2.  (A)  A  LOCAL  JURISDICTION MAY ENACT AND ENFORCE REASONABLE REGU-
LATIONS TO REASONABLY REGULATE THE ACTIONS AND CONDUCT IN PARAGRAPH  (C)
OF  SUBDIVISION  ONE  OF SECTION 221.05 OF THIS ARTICLE, PROVIDED THAT A
VIOLATION OF SUCH A REGULATION IS ONLY  SUBJECT  TO  AN  INFRACTION  AND
FINE.
  (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, NO LOCAL JURIS-
DICTION  MAY  COMPLETELY  PROHIBIT  PERSONS  ENGAGING IN THE ACTIONS AND
CONDUCT UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION 221.05 OF THIS
ARTICLE.
  3. A VIOLATION OF  SUBDIVISION  ONE  OR  TWO  OF  THIS  SECTION  IS  A
VIOLATION  PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE
DOLLARS PER OFFENSE.
  § 16. Section 221.45 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.45 [Criminal] UNLICENSED sale of marihuana in the third degree.
  A person is guilty of [criminal] UNLICENSED sale of marihuana  in  the
third  degree when he knowingly and unlawfully sells [one or more prepa-
rations, compounds, mixtures or substances containing marihuana and  the
preparations,  compounds,  mixtures  or  substances  are of an aggregate
weight of more than twenty-five grams] NOT MORE THAN SIXTEEN  OUNCES  OF
MARIHUANA  OR  NOT  MORE  THAN  FOUR AND ONE-HALF OUNCES OF CONCENTRATED
CANNABIS, NOT INCLUDING THE WEIGHT OF ANY OTHER INGREDIENT COMBINED WITH
MARIHUANA TO PREPARE TOPICAL OR ORAL ADMINISTRATIONS,  FOOD,  DRINK,  OR
OTHER PRODUCT.
  [Criminal]  UNLICENSED  sale  of  marihuana  in the third degree is [a
class E felony] SUBJECT TO THE FOLLOWING:
  1. A VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWEN-
TY-FIVE DOLLARS, FOR A FIRST OFFENSE;
  2. A VIOLATION PUBLISHABLE BY A FINE OF  NOT  MORE  THAN  TWO  HUNDRED
FIFTY DOLLARS FOR A SECOND OFFENSE;
  3.  A  CLASS  B  MISDEMEANOR  AND A FINE OF NOT MORE THAN FIVE HUNDRED
DOLLARS FOR A THIRD OR SUBSEQUENT OFFENSE.
  § 17. Section 221.50 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.50 [Criminal] UNLICENSED sale of marihuana in the second degree.
  A person TWENTY-ONE YEARS OF AGE AND OLDER  is  guilty  of  [criminal]
UNLICENSED  sale of marihuana in the second degree when he knowingly and
unlawfully sells  one  or  more  preparations,  compounds,  mixtures  or
substances   containing   marihuana  and  the  preparations,  compounds,
mixtures or substances are of an aggregate  weight  of  more  than  four

S. 3040--A                         12

ounces,  or  knowingly  and  unlawfully  sells one or more preparations,
compounds, mixtures [or substances containing  marihuana]  to  a  person
less than [eighteen] TWENTY-ONE years of age.
  [Criminal]  UNLICENSED  sale  of  marihuana  in the second degree is a
class [D] E felony.
  § 18. Section 221.55 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.55 [Criminal] UNLICENSED sale of marihuana in the first degree.
  A person is guilty of [criminal] UNLICENSED sale of marihuana  in  the
first  degree  when  he  knowingly and unlawfully sells TO A PERSON LESS
THAN TWENTY-ONE YEARS  OF  AGE  one  or  more  preparations,  compounds,
mixtures  or  substances  containing  marihuana  and  the  preparations,
compounds, mixtures or substances are of an  aggregate  weight  of  more
than sixteen ounces.
  [Criminal] UNLICENSED sale of marihuana in the first degree is a class
[C] E felony.
  §  19. The penal law is amended by adding a new section 221.60 to read
as follows:
§ 221.60 LICENSING OF MARIHUANA PRODUCTION AND DISTRIBUTION.
  THE PROVISIONS OF THIS ARTICLE AND OF ARTICLE TWO  HUNDRED  TWENTY  OF
THIS  TITLE  SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM CRIMINAL PENAL-
TIES PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING,  MANUFAC-
TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING MARIHUANA OR
CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
ANCE WITH ARTICLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  §  20.  Subdivision  8  of section 1399-n of the public health law, as
amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
follows:
  8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
any other matter or  substance  which  contains  tobacco  OR  MARIHUANA;
PROVIDED  THAT  IT  DOES  NOT  INCLUDE  THE USE OF AN ELECTRONIC SMOKING
DEVICE THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE  STATUTES
EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
  §  21.  Section 2 of the alcoholic beverage control law, as amended by
chapter 406 of the laws of 2014, is amended to read as follows:
  § 2. Policy of state and purpose of chapter. It is hereby declared  as
the policy of the state that it is necessary to regulate and control the
manufacture,  sale and distribution within the state of alcoholic bever-
ages AND MARIHUANA PRODUCTS for the purpose of fostering  and  promoting
temperance  in  their  consumption and respect for and obedience to law;
for the primary purpose of promoting the health, welfare and  safety  of
the  people  of  the  state,  promoting temperance in the consumption of
alcoholic beverages AND MARIHUANA PRODUCTS; and, to the extent possible,
supporting economic growth, job development, and the  state's  alcoholic
beverage  production industries and its tourism and recreation industry;
and which promotes the conservation and enhancement  of  state  agricul-
tural  lands;  provided  that  such  activities do not conflict with the
primary regulatory objectives of this chapter.  It  is  hereby  declared
that  such  policies  will  best be carried out by empowering the liquor
authority of the state  to  determine  whether  public  convenience  and
advantage  will  be  promoted  by the issuance of licenses to traffic in
alcoholic beverages AND MARIHUANA PRODUCTS, the increase or decrease  in
the  number  thereof  and  the  location  of  premises licensed thereby,
subject only to the right of judicial review provided for in this  chap-

S. 3040--A                         13

ter.  It  is  the purpose of this chapter to carry out these policies in
the public interest.
  § 22. Subdivisions 20-a, 20-b, 20-c, 20-d and 20-e of section 3 of the
alcoholic  beverage  control law are renumbered subdivisions 20-j, 20-k,
20-l, 20-m and 20-n and ten new  subdivisions  7-e,  20-a,  20-b,  20-c,
20-d, 20-e, 20-f, 20-g, 20-h and 20-i are added to read as follows:
  7-E.  "CONCENTRATED  CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR
  (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
NUMBERING SYSTEM.
  20-A. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF THE GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
(EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  20-B. "MARIHUANA CONSUMER" MEANS A PERSON TWENTY-ONE YEARS OF  AGE  OR
OLDER  WHO PURCHASES MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE BY
PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
  20-C. "MARIHUANA PROCESSOR" MEANS A PERSON LICENSED BY THE  BUREAU  TO
PURCHASE  MARIHUANA  AND CONCENTRATED CANNABIS FROM MARIHUANA PRODUCERS,
TO PROCESS  MARIHUANA,  CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED
PRODUCTS,  PACKAGE  AND LABEL MARIHUANA, CONCENTRATED CANNABIS AND MARI-
HUANA INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND  SELL  MARIHUANA,
CONCENTRATED  CANNABIS  AND  MARIHUANA  INFUSED PRODUCTS AT WHOLESALE TO
MARIHUANA RETAILERS.
  20-D. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY  THE  BUREAU  TO
PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED CANNABIS AT WHOLE-
SALE  TO  MARIHUANA  PROCESSORS, MARIHUANA RETAILERS, OR OTHER MARIHUANA
PRODUCERS, BUT NOT TO CONSUMERS.
  20-E. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  20-F. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT  CONTAIN  MARI-
HUANA, MARIHUANA EXTRACTS, OR CONCENTRATED CANNABIS AND ARE INTENDED FOR
HUMAN  USE OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS,
OINTMENTS, AND TINCTURES.
  20-G. "MARIHUANA RETAILER" MEANS A PERSON LICENSED BY  THE  BUREAU  TO
PURCHASE   MARIHUANA,   CONCENTRATED   CANNABIS,  AND  MARIHUANA-INFUSED
PRODUCTS FROM MARIHUANA PRODUCERS  AND  MARIHUANA  PROCESSORS  AND  SELL
MARIHUANA,  MARIHUANA  INFUSED  PRODUCTS, AND CONCENTRATED CANNABIS IN A
RETAIL OUTLET.
  20-H. "MARIHUANA RETAILER FOR ON-PREMISES CONSUMPTION" MEANS A  PERSON
LICENSED BY THE BUREAU TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA  INFUSED  PRODUCTS FROM MARIHUANA PRODUCERS, MARIHUANA RETAIL-
ERS, AND MARIHUANA PROCESSORS AND SELL MARIHUANA PRODUCTS FOR A CUSTOMER
TO CONSUME WHILE THE CUSTOMER IS WITHIN A FACILITY.

S. 3040--A                         14

  20-I. "UNREASONABLY IMPRACTICABLE" MEANS THAT THE  MEASURES  NECESSARY
TO  COMPLY  WITH THE REGULATIONS REQUIRE SUCH A HIGH INVESTMENT OF RISK,
MONEY, TIME OR OTHER RESOURCE OR ASSET THAT THE OPERATION OF A MARIHUANA
ESTABLISHMENT IS NOT WORTHY OF BEING CARRIED OUT BY A REASONABLY PRUDENT
BUSINESSPERSON.
  §  23.  Section 65-b of the alcoholic beverage control law, as amended
by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
2000, is amended to read as follows:
  §  65-b.  Offense for one under age of twenty-one years to purchase or
attempt to purchase an alcoholic beverage OR MARIHUANA PRODUCTS  through
fraudulent  means. 1.  As used in this section: (a) "A device capable of
deciphering any electronically readable format" or "device"  shall  mean
any  commercial device or combination of devices used at a point of sale
or entry that is capable of  reading  the  information  encoded  on  the
magnetic strip or bar code of a driver's license or non-driver identifi-
cation card issued by the commissioner of motor vehicles;
  (b)  "Card  holder"  means any person presenting a driver's license or
non-driver identification card to a licensee, or to the agent or employ-
ee of such licensee under this chapter; and
  (c) "Transaction scan" means the process involving a device capable of
deciphering any electronically readable format by which a  licensee,  or
agent  or  employee  of a licensee under this chapter reviews a driver's
license or non-driver identification card presented  as  a  precondition
for  the  purchase  of  an  alcoholic  beverage OR MARIHUANA PRODUCTS as
required by subdivision two of this section or  as  a  precondition  for
admission to an establishment licensed for the on-premises sale of alco-
holic  beverages  OR MARIHUANA PRODUCTS where admission is restricted to
persons twenty-one years or older.
  2. (a) No person under the age of twenty-one years  shall  present  or
offer to any licensee under this chapter, or to the agent or employee of
such licensee, any written evidence of age which is false, fraudulent or
not actually his OR HER own, for the purpose of purchasing or attempting
to purchase any alcoholic beverage OR MARIHUANA PRODUCTS.
  (b) No licensee, or agent or employee of such licensee shall accept as
written evidence of age by any such person for the purchase of any alco-
holic  beverage OR MARIHUANA PRODUCTS, any documentation other than: (i)
a valid driver's license or non-driver identification card issued by the
commissioner of motor  vehicles,  the  federal  government,  any  United
States  territory, commonwealth or possession, the District of Columbia,
a state government within the United States or a  provincial  government
of the dominion of Canada, or (ii) a valid passport issued by the United
States  government or any other country, or (iii) an identification card
issued by the armed forces of the United States. Upon  the  presentation
of  such  driver's license or non-driver identification card issued by a
governmental entity, such licensee or  agent  or  employee  thereof  may
perform a transaction scan as a precondition to the sale of any alcohol-
ic  beverage. Nothing in this section shall prohibit a licensee or agent
or employee from performing such a transaction scan on any of the  other
documents  listed  in  this  subdivision if such documents include a bar
code or magnetic strip that [that] may be scanned by a device capable of
deciphering any electronically readable format.
  (c) In instances where the information deciphered by  the  transaction
scan  fails  to match the information printed on the driver's license or
non-driver identification card presented by the card holder, or  if  the

S. 3040--A                         15

transaction  scan indicates that the information is false or fraudulent,
the attempted purchase of the alcoholic beverage OR  MARIHUANA  PRODUCTS
shall be denied.
  3.  A  person violating the provisions of paragraph (a) of subdivision
two of this section  shall  be  guilty  of  a  violation  and  shall  be
sentenced in accordance with the following:
  (a)  For a first violation, the court shall order payment of a fine of
not more than one hundred dollars and/or an appropriate amount of commu-
nity service not to exceed thirty hours.  In  addition,  the  court  may
order completion of an alcohol awareness program established pursuant to
section  19.25  of  the  mental  hygiene  law  OR  A MARIHUANA AWARENESS
PROGRAM.
  (b) For a second violation, the court shall order payment of a fine of
not less than fifty dollars nor more than three  hundred  fifty  dollars
and/or  an  appropriate  amount of community service not to exceed sixty
hours. The court also shall order completion of an alcohol OR  MARIHUANA
awareness  program as referenced in paragraph (a) of this subdivision if
such program has not previously been completed by the  offender,  unless
the court determines that attendance at such program is not feasible due
to  the  lack  of availability of such program within a reasonably close
proximity to the locality in which the offender resides or matriculates,
as appropriate.
  (c) For third and subsequent violations, the court shall order payment
of a fine of not less than fifty dollars nor  more  than  seven  hundred
fifty  dollars  and/or an appropriate amount of community service not to
exceed ninety hours. The court also shall order that such person  submit
to  an  evaluation by an appropriate agency certified or licensed by the
office of alcoholism and substance abuse services to  determine  whether
the person suffers from the disease of alcoholism or alcohol OR MARIHUA-
NA  abuse,  unless  the  court  determines  that under the circumstances
presented such an evaluation is not necessary, in which case  the  court
shall  state on the record the basis for such determination. Payment for
such evaluation shall be made by such person. If, based on  such  evalu-
ation,  a  need  for  treatment  is indicated, such person may choose to
participate in a treatment plan developed  by  an  agency  certified  or
licensed  by  the  office of alcoholism and substance abuse services. If
such person elects to participate in recommended  treatment,  the  court
shall order that payment of such fine and community service be suspended
pending the completion of such treatment.
  (d)  Evaluation  procedures.  For  purposes  of  this subdivision, the
following shall apply:
  (i) The contents of an evaluation pursuant to paragraph  (c)  of  this
subdivision  shall  be used for the sole purpose of [determining if such
person suffers from the disease of alcoholism or alcohol abuse] DIAGNOS-
ING SUCH PERSON WITH ALCOHOL OR CANNABIS USE DISORDER.
  (ii) The agency designated by the court  to  perform  such  evaluation
shall  conduct the evaluation and return the results to the court within
thirty days, subject to any state or federal confidentiality  law,  rule
or  regulation  governing  the  confidentiality of alcohol and substance
abuse treatment records.
  (iii) The office of alcoholism and substance abuse services shall make
available to each supreme court law library in this  state,  or,  if  no
supreme court law library is available in a certain county, to the coun-
ty  court  law  library  of such county, a list of agencies certified to
perform evaluations as required by subdivision (f) of section  19.07  of
the mental hygiene law.

S. 3040--A                         16

  (iv) All evaluations required under this subdivision shall be in writ-
ing  and  the  person so evaluated or his or her counsel shall receive a
copy of such evaluation prior to its use by the court.
  (v)  A minor evaluated under this subdivision shall have, and shall be
informed by the court of, the right to obtain a second opinion regarding
his or her need for alcoholism OR SUBSTANCE USE DISORDER treatment.
  4. A person violating the provisions of paragraph (b)  of  subdivision
two  of this section shall be guilty of a violation punishable by a fine
of not more than one hundred dollars, and/or an  appropriate  amount  of
community service not to exceed thirty hours. In addition, the court may
order  completion  of  an  alcohol OR SUBSTANCE ABUSE training awareness
program established pursuant to subdivision twelve of section  seventeen
of  this chapter where such program is located within a reasonably close
proximity to the locality in which the offender is employed or resides.
  5. No determination of guilt pursuant to this section shall operate as
a disqualification of  any  such  person  subsequently  to  hold  public
office,  public employment, or as a forfeiture of any right or privilege
or to receive any license granted  by  public  authority;  and  no  such
person shall be denominated a criminal by reason of such determination.
  6.  In  addition  to  the  penalties otherwise provided in subdivision
three of this section, if a determination is made sustaining a charge of
illegally purchasing or attempting to illegally  purchase  an  alcoholic
beverage  OR  MARIHUANA  PRODUCTS,  the  court may suspend such person's
license to drive a motor vehicle and  the  privilege  of  an  unlicensed
person  of  obtaining such license, in accordance with the following and
for the following periods, if it is found that a  driver's  license  was
used  for  the  purpose of such illegal purchase or attempt to illegally
purchase; provided, however, that where a person is  sentenced  pursuant
to  paragraph (b) or (c) of subdivision three of this section, the court
shall impose such license suspension if it  is  found  that  a  driver's
license  was used for the purpose of such illegal purchase or attempt to
illegally purchase:
  (a) For a first violation of paragraph (a) of subdivision two of  this
section, a three month suspension.
  (b) For a second violation of paragraph (a) of subdivision two of this
section, a six month suspension.
  (c)  For  a third or subsequent violation of paragraph (a) of subdivi-
sion two of this section, a suspension for one year or until the  holder
reaches the age of twenty-one, whichever is the greater period of time.
  Such  person  may  thereafter apply for and be issued a restricted use
license in accordance with the provisions of section five hundred thirty
of the vehicle and traffic law.
  7. (a) In any  proceeding  pursuant  to  subdivision  one  of  section
sixty-five of this article, it shall be an affirmative defense that such
person had produced a driver's license or non-driver identification card
apparently  issued  by a governmental entity, successfully completed the
transaction scan, and that the alcoholic beverage OR MARIHUANA  PRODUCTS
had  been sold, delivered or given to such person in reasonable reliance
upon such identification and transaction scan. In evaluating the  appli-
cability  of  such  affirmative defense, the liquor authority shall take
into consideration any written policy adopted  and  implemented  by  the
seller to carry out the provisions of this chapter. Use of a transaction
scan  shall  not  excuse  any  licensee  under this chapter, or agent or
employee of such licensee, from the  exercise  of  reasonable  diligence
otherwise   required   by   this   section.  Notwithstanding  the  above

S. 3040--A                         17

provisions, any such affirmative defense shall not be applicable in  any
other civil or criminal proceeding, or in any other forum.
  (b)  A  licensee or agent or employee of a licensee may electronically
or mechanically record and maintain only the information from  a  trans-
action  scan  necessary to effectuate the purposes of this section. Such
information shall be limited to the following: (i) name,  (ii)  date  of
birth,  (iii)  driver's license or non-driver identification number, and
(iv) expiration date. The liquor authority and the state commissioner of
motor vehicles shall jointly  promulgate  any  regulation  necessary  to
govern  the  recording  and  maintenance  of these records by a licensee
under this chapter. The liquor authority and the commissioner of  health
shall  jointly  promulgate  any  regulations necessary to ensure quality
control in the use of transaction scan devices.
  8. A licensee or agent or employee of such licensee shall only use the
information recorded and maintained through the use of such devices  for
the  purposes  contained  in  paragraph (a) of subdivision seven of this
section, and shall only use such devices for the purposes  contained  in
subdivision  two  of this section. No licensee or agent or employee of a
licensee shall resell or disseminate  the  information  recorded  during
such  scan  to any third person. Such prohibited resale or dissemination
includes, but is not limited to, any advertising,  marketing  or  promo-
tional  activities.  Notwithstanding  the  restrictions  imposed by this
subdivision, such records may be released pursuant to  a  court  ordered
subpoena  or  pursuant to any other statute that specifically authorizes
the release of such information.  Each  violation  of  this  subdivision
shall  be  punishable  by  a civil penalty of not more than one thousand
dollars.
  § 24. Section 65-c of the alcoholic beverage control law, as added  by
chapter  592  of  the  laws  of  1989, paragraph (a) of subdivision 2 as
amended by chapter 409 of the laws of 2016 and subdivision 3 as  amended
by chapter 137 of the laws of 2001, is amended to read as follows:
  § 65-c. Unlawful  possession  of  an  alcoholic  beverage OR MARIHUANA
PRODUCT with the intent to consume by persons under the age  of  twenty-
one years. 1. Except as hereinafter provided, no person under the age of
twenty-one years shall possess any alcoholic beverage OR MARIHUANA PROD-
UCT,  as defined in this chapter, with the intent to consume such bever-
age OR MARIHUANA PRODUCT.
  2. A person under the age of twenty-one years may possess any alcohol-
ic beverage OR MARIHUANA PRODUCT with intent to consume if the alcoholic
beverage OR MARIHUANA PRODUCT is given:
  (a) to a person who is a student in a curriculum  licensed  or  regis-
tered  by  the state education department and the student is required to
taste or imbibe alcoholic beverages OR MARIHUANA PRODUCTS  in  on-campus
or  off-campus  courses  which  are  a  part of the required curriculum,
provided such alcoholic beverages OR MARIHUANA PRODUCTS  are  used  only
for  instructional  purposes  during  class  conducted  pursuant to such
curriculum; or
  (b) to the person under twenty-one  years  of  age  by  that  person's
parent or guardian.
  3.  Any person who unlawfully possesses an alcoholic beverage OR MARI-
HUANA PRODUCT with intent to consume may be summoned before and examined
by a court having jurisdiction of that charge; provided,  however,  that
nothing  contained herein shall authorize, or be construed to authorize,
a peace officer as defined in subdivision thirty-three of  section  1.20
of the criminal procedure law or a police officer as defined in subdivi-
sion  thirty-four  of  section  1.20  of such law to arrest a person who

S. 3040--A                         18

unlawfully possesses an alcoholic beverage  OR  MARIHUANA  PRODUCT  with
intent to consume. If a determination is made sustaining such charge the
court may impose a fine not exceeding fifty dollars and/or completion of
an  alcohol  OR  DRUG  awareness program established pursuant to section
19.25 of the mental hygiene law and/or an appropriate amount of communi-
ty service not to exceed thirty hours.
  4. No such determination shall operate as a  disqualification  of  any
such person subsequently to hold public office, public employment, or as
a forfeiture of any right or privilege or to receive any license granted
by  public authority; and no such person shall be denominated a criminal
by reason of such determination, nor shall such determination be  deemed
a conviction.
  5.  Whenever a peace officer as defined in subdivision thirty-three of
section 1.20 of the criminal procedure law or police officer as  defined
in subdivision thirty-four of section 1.20 of the criminal procedure law
shall  observe  a  person  under  twenty-one  years  of  age  openly  in
possession of an alcoholic beverage OR MARIHUANA PRODUCT as  defined  in
this  chapter,  with  the  intent to consume such beverage OR PRODUCT in
violation of this section, said officer may seize the beverage OR  PROD-
UCT, and shall deliver it to the custody of his or her department.
  6.  Any alcoholic beverage OR MARIHUANA PRODUCT seized in violation of
this section is hereby declared a nuisance. The  official  to  whom  the
beverage OR PRODUCT has been delivered shall, no earlier than three days
following the return date for initial appearance on the summons, dispose
of  or  destroy  the  alcoholic  beverage OR MARIHUANA PRODUCT seized or
cause it to be disposed of or destroyed.  Any person claiming  ownership
of  an alcoholic beverage OR MARIHUANA PRODUCT seized under this section
may, on the initial return date of the summons or earlier on  five  days
notice  to  the  official or department in possession of the beverage OR
PRODUCT, apply to the court for an order preventing the  destruction  or
disposal  of  the  alcoholic  beverage  OR  MARIHUANA PRODUCT seized and
ordering the return of that beverage OR PRODUCT.   The court  may  order
the  beverage OR PRODUCT returned if it is determined that return of the
beverage OR PRODUCT would be in the interest  of  justice  or  that  the
beverage OR PRODUCT was improperly seized.
  §  25.  The  alcoholic beverage control law is amended by adding a new
section 65-e to read as follows:
  § 65-E. RESTRICTIONS ON PERSONAL CONSUMPTION OF MARIHUANA. 1.  NOTHING
IN SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW SHALL BE  CONSTRUED  TO
PERMIT ANY PERSON TO:
  (A) SMOKE MARIHUANA IN PUBLIC;
  (B)  SMOKE  MARIHUANA  PRODUCTS IN A LOCATION WHERE SMOKING TOBACCO IS
PROHIBITED PURSUANT TO SECTION THIRTEEN  HUNDRED  NINETY-NINE-O  OF  THE
PUBLIC HEALTH LAW;
  (C) POSSESS, SMOKE OR INGEST MARIHUANA PRODUCTS IN OR UPON THE GROUNDS
OF  ANY  SCHOOL  PROPERTY  USED FOR SCHOOL PURPOSES WHICH IS OWNED BY OR
LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE CHIL-
DREN ARE PRESENT; OR
  (D) SMOKE OR INGEST MARIHUANA  PRODUCTS  WHILE  DRIVING,  OPERATING  A
MOTOR  VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR TRANS-
PORTATION.
  2. FOR PURPOSES OF THIS SECTION:
  (A) "SMOKE" MEANS TO INHALE, EXHALE, BURN, OR  CARRY  ANY  LIGHTED  OR
HEATED  DEVICE  OR  PIPE,  OR  ANY  OTHER LIGHTED OR HEATED MARIHUANA OR
CONCENTRATED CANNABIS PRODUCT INTENDED FOR INHALATION,  WHETHER  NATURAL
OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.

S. 3040--A                         19

  (B)  "SMOKE"  DOES NOT INCLUDE THE USE OF AN ELECTRONIC SMOKING DEVICE
THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES  EXTEND
PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
  3.  VIOLATIONS OF THE RESTRICTIONS UNDER THIS SECTION ARE SUBJECT TO A
FINE NOT EXCEEDING TWENTY-FIVE  DOLLARS  OR  AN  APPROPRIATE  AMOUNT  OF
COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
  § 26. Section 140 of the alcoholic beverage control law, as amended by
chapter 810 of the laws of 1981, is amended to read as follows:
  § 140. Applicability  of chapter before local option.  Until such time
as it shall become unlawful to sell  alcoholic  beverages  OR  MARIHUANA
PRODUCTS  in  any town or city by the vote of the voters in such town or
city in the manner provided in this article, all of  the  provisions  of
this chapter shall apply throughout the entire state. This article shall
not  apply  to the Whiteface mountain ski center, owned by the state and
located in the town of Wilmington, county of Essex.
  § 27. Section 141 of the alcoholic beverage control law, as amended by
chapter 319 of the laws of 2007, is amended to read as follows:
  § 141. Local option for towns. 1. Not less than sixty  days  nor  more
than  seventy-five days before the general election in any town at which
the submission of the questions hereinafter stated is authorized by this
article, a petition signed by electors of the town to a number amounting
to twenty-five per centum of the votes cast in the town for governor  at
the  then  last  preceding  gubernatorial  election, acknowledged by the
signers or authenticated by witnesses as provided in the election law in
respect of a nominating petition,  requesting  the  submission  at  such
election  to  the  electors  of the town of one or more of the following
questions, may be filed with the town clerk:
  Question 1. Tavern alcoholic  beverage  license.  Shall  a  person  be
allowed  to  obtain a license to operate a tavern with a limited-service
menu (sandwiches, salads, soups, etc.) which permits the tavern operator
to sell alcoholic beverages for a customer to drink while  the  customer
is  within the tavern. In addition, unopened containers of beer (such as
six-packs and kegs) may be sold "to go" for the  customer  to  open  and
drink at another location (such as, for example, at his home)?
  Question  2. Restaurant alcoholic beverage license. Shall the operator
of a full-service restaurant  be  allowed  to  obtain  a  license  which
permits  the  restaurant  operator  to  sell  alcoholic  beverages for a
customer to drink while the customer is within the restaurant. In  addi-
tion,  unopened  containers  of beer (such as six-packs and kegs) may be
sold "to go" for the customer to open  and  drink  at  another  location
(such as, for example, at his home)?
  Question  3.  Year-round  hotel  alcoholic beverage license. Shall the
operator of a year-round hotel with a full-service restaurant be allowed
to obtain a license which permits the year-round hotel to sell alcoholic
beverages for a customer to drink  while  the  customer  is  within  the
hotel.  In  addition, unopened containers of beer (such as six-packs and
kegs) may be sold "to go" for the customer to open and drink at  another
location (such as, for example, at his home)?
  Question  4. Summer hotel alcoholic beverage license. Shall the opera-
tor of a summer hotel with a full-service restaurant, open for  business
only  within  the  period from May first to October thirty-first in each
year, be allowed to obtain a license which permits the summer  hotel  to
sell  alcoholic  beverages for a customer to drink while the customer is
within the hotel. In addition, unopened  containers  of  beer  (such  as
six-packs  and  kegs)  may  be sold "to go" for the customer to open and
drink at another location (such as, for example, at his home)?

S. 3040--A                         20

  Question 5. Retail package liquor  or  wine  store  license.  Shall  a
person  be  allowed  to  obtain  a  license  to operate a retail package
liquor-and-wine or wine-without-liquor store, to sell "to  go"  unopened
bottles  of  liquor or wine to a customer to be taken from the store for
the  customer  to open and drink at another location (such as, for exam-
ple, at his home)?
  Question 6. Off-premises beer and wine cooler license. Shall the oper-
ator of a grocery store, drugstore  or  supply  ship  operating  in  the
harbors  of  Lake  Erie be allowed to obtain a license which permits the
operator to sell "to go" unopened containers of beer (such as  six-packs
and  kegs)  and wine coolers with not more than 6% alcohol to a customer
to be taken from the store for the customer to open and drink at another
location (such as, for example, at his home)?
  Question 7.  Baseball  park,  racetrack,  athletic  field  or  stadium
license.    Shall  a person be allowed to obtain a license which permits
the sale of beer for a patron's consumption while the patron is within a
baseball park, racetrack, or  other  athletic  field  or  stadium  where
admission fees are charged?
  QUESTION  8.  MARIHUANA RETAILER LICENSE. SHALL A PERSON BE ALLOWED TO
OBTAIN A LICENSE TO OPERATE A RETAIL MARIHUANA STORE, TO  SELL  UNOPENED
MARIHUANA  PRODUCTS  TO  A  CUSTOMER  TO BE TAKEN FROM THE STORE FOR THE
CUSTOMER TO OPEN AND CONSUMER AT ANOTHER LOCATION (SUCH AS, FOR EXAMPLE,
AT HIS HOME)?
  QUESTION 9. ON-PREMISES MARIHUANA RETAILER LICENSES. SHALL A PERSON BE
ALLOWED TO OBTAIN A LICENSE TO OPERATE A FACILITY WHERE THE  SERVICE  OF
FOOD  IS ONLY INCIDENTAL AND PERMITS THE FACILITY OPERATOR TO SELL MARI-
HUANA PRODUCTS FOR A CUSTOMER TO CONSUMER WHILE THE CUSTOMER  IS  WITHIN
THE FACILITY?
  2.  Upon  the due filing of such petition complying with the foregoing
provisions, such questions shall be submitted in accordance therewith.
  3. The town clerk shall, within five days  from  the  filing  of  such
petition  in  his office, prepare and file in the office of the board of
elections, as defined by the election law, of the  county,  a  certified
copy  of such petition. Such questions may be submitted only at the time
of a general election. At least ten days before such  general  election,
the  board of elections shall cause to be printed and posted in at least
four public places in such town, a notice of the fact that  all  of  the
local  option  questions  will be voted on at such general election; and
the said notice shall also be published at least five  days  before  the
vote is to be taken once in a newspaper published in the county in which
such town is situated, which shall be a newspaper published in the town,
if  there  be one. Whenever such questions are to be submitted under the
provisions of this article the board of elections shall cause the proper
ballot labels to be printed and placed on all voting  machines  used  in
the  town  in  which  such  questions  are  to be submitted, in the form
prescribed by the election law in respect of other propositions or ques-
tions, upon the face of which shall be printed in full  the  said  ques-
tions.  Any  elector qualified to vote for state officers shall be enti-
tled to vote upon such local option questions. As soon as  the  election
shall  be  held, a return of the votes cast and counted shall be made as
provided by law and the returns canvassed by the inspectors of election.
If a majority of the votes cast shall be in the negative on all  or  any
of  the  questions, no person shall, after such election, sell alcoholic
beverages OR MARIHUANA PRODUCTS in such town contrary to such vote or to
the provisions of this chapter; provided, however, that  the  result  of
such vote shall not shorten the term for which any license may have been

S. 3040--A                         21

lawfully  issued under this chapter or affect the rights of the licensee
thereunder; and no person shall after such vote apply for or  receive  a
license  to  sell alcoholic beverages OR MARIHUANA PRODUCTS at retail in
such  town  contrary  to  such vote, until, by referendum as hereinafter
provided for, such sale shall again become lawful.
  § 28. Subdivision 3 of section 142 of the alcoholic  beverage  control
law is amended to read as follows:
  3.  If a majority of the votes cast shall be in the negative on any or
all of the questions, no person shall, after such election,  sell  alco-
holic beverages OR MARIHUANA PRODUCTS in such city contrary to such vote
or to the provisions of this chapter; provided, however, that the result
of  such  vote shall not shorten the term for which any license may have
been lawfully issued under this chapter or  affect  the  rights  of  the
licensee  thereunder;  and  no person shall after such vote apply for or
receive a license to sell alcoholic beverages OR MARIHUANA  PRODUCTS  at
retail in such city contrary to such vote, until, by referendum as here-
inafter provided for, such sale shall again become lawful.
  §  29.  Subdivision 2 of section 147 of the alcoholic beverage control
law is amended to read as follows:
  2. If at the time of any subsequent submission of  such  questions  it
shall  be lawful to sell alcoholic beverages OR MARIHUANA PRODUCTS and a
majority of the votes cast shall be in the negative on  such  questions,
then  all  of  the  provisions  of this article applicable thereto shall
become effective.
  § 30. Article 11 and sections 160, 161, 162, 163 and 164 of the  alco-
holic  beverage  control  law, article 11 and sections 160, 161, 162 and
163 as renumbered by chapter 725 of the laws  of  1954,  are  renumbered
article 12 and sections 200, 201, 202, 203, 204.
  §  31.  The  alcoholic beverage control law is amended by adding a new
article 11 to read as follows:
                                ARTICLE 11
                    PROVISIONS RELATING TO MARIHUANA
SECTION 165. DEFINITIONS.
        166. BUREAU OF MARIHUANA POLICY.
        167. ADMINISTRATION OF THE BUREAU OF MARIHUANA POLICY.
        168. LICENSES ISSUED.
        169. LICENSING LIMITS.
        170. ACTIONS TAKEN PURSUANT TO A VALID LICENSE ARE LAWFUL.
        171. GENERAL PROHIBITIONS AND RESTRICTIONS.
        172. CERTAIN OFFICIALS NOT TO BE INTERESTED IN  THE  MANUFACTURE
               OR SALE OF MARIHUANA.
        173. PROVISIONS GOVERNING INITIAL RULEMAKING.
        174. PROVISIONS GOVERNING MARIHUANA PRODUCERS.
        175. PROVISIONS GOVERNING PROCESSORS.
        176. PROVISIONS GOVERNING MARIHUANA RETAILERS.
        177. PROVISIONS    GOVERNING   MARIHUANA   ON-SITE   CONSUMPTION
               LICENSES.
        178. ADVERTISING AND FORMS OF THE ISSUANCE OF LICENSES.
        179. PACKAGING OF MARIHUANA PRODUCTS.
        180. LABELING OF MARIHUANA PRODUCTS.
        181. SEED TO SALE TRACKING.
        182. RENEWALS OF LICENSES AND PERMITS.
        183. INFORMATION TO BE PROVIDED BY APPLICANTS.
        184. NOTIFICATION TO MUNICIPALITIES.
        185. LICENSES, PUBLICATION, GENERAL PROVISIONS.
        186. REVOCATION OF LICENSES FOR CAUSE.

S. 3040--A                         22

        187. PROCEDURE FOR REVOCATION OR CANCELLATION.
        188. DECISIONS  OF  THE BUREAU OF MARIHUANA POLICY AND REVIEW BY
               THE COURTS.
        189. MINORITY AND WOMEN BUSINESS ENTERPRISES.
        190. DISPOSITION OF MONEYS RECEIVED FOR LICENSE FEES.
        191. PERSONS FORBIDDEN TO TRAFFIC IN MARIHUANA.
        192. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS.
        193. AUTHORITY TO PROMULGATE RULES AND REGULATIONS.
        194. PROTECTIONS FOR THE USE OF MARIHUANA.
        195. DISCRIMINATION PROTECTIONS FOR  THE  USE  OF  MARIHUANA  OR
               MEDICAL MARIHUANA.
        196. EMPLOYMENT PROTECTIONS.
        197. PROTECTIONS FOR PERSONS UNDER STATE SUPERVISION.
        198. PROFESSIONAL AND MEDICAL RECORD KEEPING.
  §  165. DEFINITIONS. WHENEVER USED IN THIS CHAPTER, UNLESS THE CONTEXT
REQUIRES OTHERWISE:
  1. "APPLICANT" MEANS AN OWNER APPLYING FOR A LICENSE PURSUANT TO  THIS
ARTICLE.
  2."BUREAU" MEANS THE BUREAU OF MARIHUANA POLICY WITHIN THE AUTHORITY.
  3.  "COMMERCIAL  MARIHUANA ACTIVITY" MEANS THE PRODUCTION, PROCESSING,
POSSESSION, STORING, LABORATORY TESTING, PACKAGING, LABELING,  TRANSPOR-
TATION,  DELIVERY,  OR  SALE  OF  MARIHUANA  AND  MARIHUANA  PRODUCTS AS
PROVIDED FOR IN THIS ARTICLE.
  4. "CUSTOMER" MEANS A NATURAL PERSON TWENTY-ONE YEARS OF AGE OR OLDER.
  5. "DELIVERY" MEANS A LICENSEE  THAT  DELIVERS  RETAIL  MARIHUANA  AND
MARIHUANA  PRODUCTS  TO  CUSTOMERS. RETAILER LICENSEES AND MICROBUSINESS
LICENSEES ARE  PERMITTED  TO  DELIVER  RETAIL  MARIHUANA  AND  MARIHUANA
PRODUCTS  TO  CUSTOMERS  WITHOUT  OBTAINING  AN  ADDITIONAL  DISTRIBUTOR
LICENSE.
  6. "DISTRIBUTION" MEANS THE PROCUREMENT, SALE, AND TRANSPORT OF  MARI-
HUANA  AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS
ARTICLE.
  7. "DISTRIBUTOR" MEANS A LICENSEE FOR THE  DISTRIBUTION  OF  MARIHUANA
AND  MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTI-
CLE.  PRODUCER LICENSEES, PROCESSOR LICENSEES, AND MICROBUSINESS  LICEN-
SEES  ARE  PERMITTED  TO  DISTRIBUTE  MARIHUANA  AND  MARIHUANA PRODUCTS
BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTICLE WITHOUT OBTAINING  AN
ADDITIONAL DISTRIBUTOR LICENSE.
  8.  "LABELING"  MEANS  ANY LABEL OR OTHER WRITTEN, PRINTED, OR GRAPHIC
MATTER UPON A MARIHUANA PRODUCT, OR UPON ITS CONTAINER  OR  WRAPPER,  OR
THAT ACCOMPANIES ANY MARIHUANA PRODUCT.
  9.  "LICENSE"  MEANS  A  STATE LICENSE ISSUED UNDER THIS ARTICLE. EACH
LICENSE ISSUED PURSUANT TO THIS ARTICLE CORRESPONDS TO A SINGLE PLACE OF
BUSINESS.
  10. "LICENSEE" MEANS ANY PERSON OR ENTITY HOLDING A LICENSE UNDER THIS
ARTICLE.
  11. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF  THE  GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
(EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA I., WHETHER GROWING

S. 3040--A                         23

OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  12.  "MARIHUANA  PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  13. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN  MARIHUA-
NA,  MARIHUANA  EXTRACTS,  OR CONCENTRATED CANNABIS AND ARE INTENDED FOR
HUMAN USE OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE  PRODUCTS,
OINTMENTS, AND TINCTURES.
  14.  "MICROBUSINESS"  MEANS  A  LICENSEE  THAT  MAY ACT AS A MARIHUANA
PRODUCER FOR THE CULTIVATION OF MARIHUANA ON AN AREA LESS THAN TEN THOU-
SAND SQUARE FEET, A MARIHUANA PROCESSOR, AND A MARIHUANA RETAILER  UNDER
THIS  ARTICLE,  PROVIDED  SUCH  LICENSEE  COMPLIES WITH ALL REQUIREMENTS
IMPOSED BY THIS ARTICLE ON LICENSED PRODUCERS, PROCESSORS, AND RETAILERS
TO THE EXTENT THE LICENSEE ENGAGES IN SUCH ACTIVITIES. A "MICROBUSINESS"
MAY DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED  MARI-
HUANA  BUSINESSES  AND  MAY  DELIVER MARIHUANA AND MARIHUANA PRODUCTS TO
CUSTOMERS.
  15. "NURSERY" MEANS A LICENSEE THAT  PRODUCES  ONLY  CLONES,  IMMATURE
PLANTS, SEEDS, AND OTHER AGRICULTURAL PRODUCTS USED SPECIFICALLY FOR THE
PLANTING, PROPAGATION, AND CULTIVATION OF MARIHUANA.
  16.  "ONSITE CONSUMPTION" MEANS A MARIHUANA RETAIL LICENSEE OR A MARI-
HUANA MICROBUSINESS THAT PERMITS THE CONSUMPTION OF MARIHUANA AND  MARI-
HUANA PRODUCTS AT THE LICENSEE'S PLACE OF BUSINESS.
  17.  "OWNER"  MEANS AN INDIVIDUAL WITH AN AGGREGATE OWNERSHIP INTEREST
OF TWENTY PERCENT OR MORE IN A MARIHUANA BUSINESS LICENSED  PURSUANT  TO
THIS ARTICLE, UNLESS SUCH INTEREST IS SOLELY A SECURITY, LIEN, OR ENCUM-
BRANCE,  OR  AN  INDIVIDUAL THAT WILL BE PARTICIPATING IN THE DIRECTION,
CONTROL, OR MANAGEMENT OF THE LICENSED MARIHUANA BUSINESS.
  18. "PACKAGE" MEANS ANY CONTAINER OR RECEPTACLE USED FOR HOLDING MARI-
HUANA OR MARIHUANA PRODUCTS.
  19. "PROCESSOR" MEANS A LICENSEE  THAT  COMPOUNDS,  BLENDS,  EXTRACTS,
INFUSES,  OR OTHERWISE MAKES OR PREPARES MARIHUANA PRODUCTS, BUT NOT THE
PRODUCTION OF THE  MARIHUANA  CONTAINED  IN  THE  MARIHUANA  PRODUCT.  A
"PROCESSOR"  MAY  ALSO  DISTRIBUTE  MARIHUANA  AND MARIHUANA PRODUCTS TO
OTHER LICENSED MARIHUANA BUSINESSES.
  20. "PRODUCER" MEANS A LICENSEE THAT PLANTS, GROWS,  HARVESTS,  DRIES,
CURES,  GRADES,  OR  TRIMS  MARIHUANA.  A "PRODUCER" MAY ALSO DISTRIBUTE
MARIHUANA TO OTHER LICENSED MARIHUANA BUSINESSES.
  21. "RETAILER" MEANS A LICENSEE  THAT  SELLS  MARIHUANA  OR  MARIHUANA
PRODUCTS  DIRECTLY  TO CUSTOMERS. A "RETAILER" MAY DELIVER MARIHUANA AND
MARIHUANA PRODUCTS TO CUSTOMERS.
  22. "TESTING FACILITY" MEANS A LICENSEE THAT TESTS MARIHUANA AND MARI-
HUANA PRODUCTS.
  § 166. BUREAU OF MARIHUANA POLICY. THERE IS HEREBY ESTABLISHED IN  THE
AUTHORITY  A BUREAU OF MARIHUANA POLICY. THE MEMBERS OF THE BUREAU SHALL
BE APPOINTED BY THE GOVERNOR BY AND WITH THE ADVICE AND CONSENT  OF  THE
SENATE. NOT MORE THAN TWO MEMBERS OF THE BUREAU SHALL BELONG TO THE SAME
POLITICAL  PARTY. THE CHAIRMAN OF THE BUREAU OF MARIHUANA POLICY HERETO-
FORE APPOINTED AND DESIGNATED BY THE GOVERNOR AND THE REMAINING  MEMBERS
OF  SUCH  BOARD  HERETOFORE  APPOINTED BY THE GOVERNOR SHALL CONTINUE TO
SERVE AS CHAIRMAN AND MEMBERS OF THE BUREAU UNTIL THE EXPIRATION OF  THE
RESPECTIVE  TERMS  FOR WHICH THEY WERE APPOINTED. UPON THE EXPIRATION OF
SUCH RESPECTIVE TERMS THE SUCCESSORS OF SUCH CHAIRMAN AND MEMBERS  SHALL
BE  APPOINTED  TO  SERVE  FOR A TERM OF THREE YEARS EACH AND UNTIL THEIR
SUCCESSORS HAVE BEEN APPOINTED AND QUALIFIED. THE  COMMISSIONERS,  OTHER
THAN  THE  CHAIRMAN  SHALL,  WHEN  PERFORMING THE WORK OF THE BUREAU, BE

S. 3040--A                         24

COMPENSATED AT A RATE OF TWO HUNDRED SIXTY  DOLLARS  PER  DAY,  TOGETHER
WITH  AN  ALLOWANCE  FOR  ACTUAL  AND NECESSARY EXPENSES INCURRED IN THE
DISCHARGE OF THEIR DUTIES.
  §  167.  ADMINISTRATION  OF  THE  BUREAU OF MARIHUANA POLICY.   1. THE
BUREAU ESTABLISHED IN SECTION ONE  HUNDRED  SIXTY-SIX  OF  THIS  ARTICLE
SHALL  HERETOFORE  HAVE  THE  POWER,  DUTY, PURPOSE, RESPONSIBILITY, AND
JURISDICTION TO REGULATE COMMERCIAL MARIHUANA ACTIVITY  AS  PROVIDED  IN
THE MARIHUANA REGULATION AND TAXATION ACT.
  2.  THE  BUREAU  SHALL  HAVE THE EXCLUSIVE AUTHORITY TO CREATE, ISSUE,
RENEW, DISCIPLINE, SUSPEND, OR REVOKE LICENSES FOR COMMERCIAL  MARIHUANA
ACTIVITIES  IN  ACCORDANCE  WITH THE STATE ADMINISTRATIVE PROCEDURE ACT,
CODIFIED AT N.Y. A.P.A. LAW § 100 ET SEQ.
  (A) THE BUREAU SHALL CONSULT WITH THE DEPARTMENT  OF  AGRICULTURE  AND
MARKETS  REGARDING  RULES, REGULATIONS, AND LICENSES FOR THE CULTIVATION
OF MARIHUANA.
  (B) THE BUREAU SHALL BEGIN ISSUING LICENSES NOT  LATER  THAN  EIGHTEEN
MONTHS  FOLLOWING  THE  EFFECTIVE  DATE  OF THE MARIHUANA REGULATION AND
TAXATION ACT.
  (I) THE BUREAU SHALL BEGIN ACCEPTING APPLICATIONS NO MORE THAN FIFTEEN
MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS ACT.
  (II) PURSUANT TO SECTION ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE,  THE
BUREAU SHALL NOTIFY MUNICIPALITIES OF ANY APPLICATIONS FOR LICENSE.
  (III)  THE  BUREAU  SHALL  ISSUE  AN  ANNUAL  LICENSE TO THE APPLICANT
BETWEEN FORTY-FIVE AND NINETY  DAYS  AFTER  RECEIPT  OF  AN  APPLICATION
UNLESS  THE  BUREAU  FINDS THE APPLICANT IS NOT IN COMPLIANCE WITH REGU-
LATIONS ENACTED PURSUANT TO SECTION ONE HUNDRED  SEVENTY-THREE  OF  THIS
ARTICLE  OR THE DEPARTMENT IS NOTIFIED BY THE RELEVANT MUNICIPALITY THAT
THE APPLICANT IS NOT IN COMPLIANCE WITH SUCH REGULATIONS.
  (C) THE BUREAU SHALL HAVE THE AUTHORITY TO COLLECT FEES IN  CONNECTION
WITH  ACTIVITIES  THEY REGULATE CONCERNING MARIHUANA PURSUANT TO SECTION
ONE HUNDRED NINETY OF THIS ARTICLE.
  3. (A) NOT LATER THAN TEN MONTHS FOLLOWING THE ENACTMENT OF THIS ARTI-
CLE, EACH MUNICIPALITY MAY ENACT AN ORDINANCE OR  REGULATION  SPECIFYING
THE  ENTITY  WITHIN  THE MUNICIPALITY THAT IS RESPONSIBLE FOR PROCESSING
APPLICATIONS SUBMITTED FOR A LICENSE TO OPERATE A  MARIHUANA  ESTABLISH-
MENT  WITHIN  THE BOUNDARIES OF THE MUNICIPALITY AND FOR THE ISSUANCE OF
SUCH LICENSES SHOULD THE ISSUANCE BY THE MUNICIPALITY  BECOME  NECESSARY
BECAUSE  OF  A  FAILURE  BY  THE BUREAU TO ADOPT REGULATIONS PURSUANT TO
SECTION ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE OR BECAUSE OF A  FAIL-
URE  BY  THE  BUREAU  TO  PROCESS  AND ISSUE LICENSES AS REQUIRED BY THE
SUBDIVISION TWO OF THIS SECTION.
  (B) A  MUNICIPALITY  MAY  ENACT  ORDINANCES  OR  REGULATIONS,  NOT  IN
CONFLICT  WITH  THIS  SECTION OR WITH REGULATIONS OR LEGISLATION ENACTED
PURSUANT TO THIS SECTION, GOVERNING THE TIME, PLACE, MANNER  AND  NUMBER
OF  MARIHUANA  ESTABLISHMENT OPERATIONS; ESTABLISHING PROCEDURES FOR THE
ISSUANCE, SUSPENSION, AND REVOCATION OF A LICENSE ISSUED BY THE  MUNICI-
PALITY  IN  ACCORDANCE  WITH PARAGRAPHS (C) AND (D) OF THIS SUBDIVISION,
SUCH PROCEDURES TO BE SUBJECT TO ALL REQUIREMENTS OF  STATE  ADMINISTRA-
TIVE  PROCEDURE  ACT, CODIFIED AS N.Y. A.P.A. LAW § 100, ET SEQ.  OR ANY
SUCCESSOR  PROVISION,  ESTABLISHING  A  SCHEDULE  OF  ANNUAL  OPERATING,
LICENSING,  AND APPLICATION FEES FOR MARIHUANA ESTABLISHMENTS, PROVIDED,
THE APPLICATION FEE SHALL ONLY BE DUE IF AN APPLICATION IS SUBMITTED  TO
A  MUNICIPALITY IN ACCORDANCE WITH PARAGRAPH (D) OF THIS SUBDIVISION AND
A LICENSING FEE SHALL ONLY BE DUE IF A LICENSE IS ISSUED  BY  A  MUNICI-
PALITY  IN ACCORDANCE WITH PARAGRAPH (C) OR (D) OF THIS SUBDIVISION; AND
ESTABLISHING CIVIL PENALTIES FOR VIOLATION OF AN ORDINANCE OR REGULATION

S. 3040--A                         25

GOVERNING THE TIME, PLACE, AND MANNER OF A MARIHUANA ESTABLISHMENT  THAT
MAY  OPERATE  IN  SUCH  A  MUNICIPALITY. A MUNICIPALITY MAY PROHIBIT THE
OPERATION  OF  MARIHUANA  PRODUCTION  FACILITIES,  MARIHUANA  PROCESSING
FACILITIES, MARIHUANA RETAIL STORES, MARIHUANA MICROBUSINESSES, OR MARI-
HUANA TESTING FACILITIES THROUGH THE ENACTMENT OF AN ORDINANCE.
  (C)  IF  THE  BUREAU  DOES  NOT ISSUE A LICENSE TO AN APPLICANT WITHIN
NINETY DAYS OF RECEIPT OF  THE  APPLICATION  FILED  IN  ACCORDANCE  WITH
SUBDIVISION TWO AND DOES NOT NOTIFY THE APPLICANT OF THE SPECIFIC REASON
FOR ITS DENIAL, IN WRITING AND WITHIN SUCH TIME PERIOD, OR IF THE BUREAU
HAS ADOPTED REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-THREE OF
THIS  ARTICLE  BUT HAS NOT ISSUED ANY LICENSES WITHIN EIGHTEEN MONTHS OF
THE EFFECTIVE DATE OF THIS ARTICLE, FOR ANY LOCALITY ENACTING  AN  ORDI-
NANCE  PROVIDING FOR LOCAL PROCESSING OF APPLICATIONS, THE APPLICANT MAY
RESUBMIT ITS APPLICATION DIRECTLY TO THE MUNICIPALITY PURSUANT TO  PARA-
GRAPH  (A) OF THIS SUBDIVISION, AND THE MUNICIPALITY MAY ISSUE AN ANNUAL
LICENSE TO THE APPLICANT. A MUNICIPALITY ISSUING A LICENSE TO AN  APPLI-
CANT SHALL DO SO WITHIN NINETY DAYS OF RECEIPT OF THE RESUBMITTED APPLI-
CATION UNLESS THE MUNICIPALITY FINDS AND NOTIFIES THE APPLICANT THAT THE
APPLICANT  IS NOT IN COMPLIANCE WITH THE ORDINANCES AND REGULATIONS MADE
PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME  THE
APPLICATION  IS RESUBMITTED AND THE MUNICIPALITY SHALL NOTIFY THE BUREAU
IF AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. IF AN APPLICATION
IS SUBMITTED TO A MUNICIPALITY UNDER THIS PARAGRAPH,  THE  BUREAU  SHALL
FORWARD TO THE MUNICIPALITY THE APPLICATION FEE PAID BY THE APPLICANT TO
THE BUREAU UPON REQUEST BY THE MUNICIPALITY. A LICENSE ISSUED BY A MUNI-
CIPALITY IN ACCORDANCE WITH THIS PARAGRAPH SHALL HAVE THE SAME FORCE AND
EFFECT  AS A LICENSE ISSUED BY THE BUREAU IN ACCORDANCE WITH SUBDIVISION
TWO OF THIS SECTION AND THE HOLDER OF SUCH LICENSE SHALL NOT BE  SUBJECT
TO  REGULATION  OR  ENFORCEMENT  BY  THE  BUREAU DURING THE TERM OF THAT
LICENSE. A SUBSEQUENT OR RENEWED LICENSE MAY BE ISSUED UNDER THIS  PARA-
GRAPH ON AN ANNUAL BASIS ONLY UPON RESUBMISSION TO THE MUNICIPALITY OF A
NEW  APPLICATION  SUBMITTED TO THE BUREAU PURSUANT TO SUBDIVISION TWO OF
THIS SECTION.  NOTHING IN THIS PARAGRAPH SHALL LIMIT SUCH RELIEF AS  MAY
BE AVAILABLE TO AN AGGRIEVED PARTY UNDER SECTION FOUR HUNDRED ONE OF THE
STATE ADMINISTRATIVE PROCEDURE ACT OR ANY SUCCESSOR PROVISION.
  (D)  IF  THE BUREAU DOES NOT ADOPT REGULATIONS REQUIRED BY SECTION ONE
HUNDRED SEVENTY-THREE OF THIS ARTICLE, AN APPLICANT MAY SUBMIT AN APPLI-
CATION DIRECTLY TO A MUNICIPALITY FIFTEEN MONTHS FOLLOWING THE EFFECTIVE
DATE OF THIS ARTICLE AND THE MUNICIPALITY MAY ISSUE AN ANNUAL LICENSE TO
THE APPLICANT. A MUNICIPALITY ISSUING A LICENSE TO AN APPLICANT SHALL DO
SO WITHIN NINETY DAYS OF RECEIPT OF THE APPLICATION UNLESS IT FINDS  AND
NOTIFIES  THE  APPLICANT  THAT  THE  APPLICANT IS NOT IN COMPLIANCE WITH
ORDINANCES AND REGULATIONS MADE PURSUANT TO PARAGRAPH (B) OF THIS SUBDI-
VISION IN EFFECT AT THE TIME OF APPLICATION AND SHALL NOTIFY THE  BUREAU
IF  AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. A LICENSE ISSUED
BY A MUNICIPALITY IN ACCORDANCE WITH THIS PARAGRAPH SHALL HAVE THE  SAME
FORCE  AND  EFFECT  AS A LICENSE ISSUED BY THE BUREAU IN ACCORDANCE WITH
SUBDIVISION TWO OF THIS SECTION AND THE LICENSEE SHALL NOT BE SUBJECT TO
REGULATION OR ENFORCEMENT BY THE BUREAU DURING THE TERM OF THAT LICENSE.
A SUBSEQUENT OR RENEWED LICENSE MAY BE ISSUED UNDER THIS PARAGRAPH ON AN
ANNUAL BASIS IF THE BUREAU  HAS  NOT  ADOPTED  REGULATIONS  REQUIRED  BY
SECTION  ONE  HUNDRED SEVENTY-THREE OF THIS ARTICLE AT LEAST NINETY DAYS
PRIOR TO THE DATE UPON WHICH SUCH SUBSEQUENT OR RENEWED LICENSE WOULD BE
EFFECTIVE OR IF THE  DEPARTMENT  HAS  ADOPTED  REGULATIONS  PURSUANT  TO
SECTION  ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE BUT HAS NOT, AT LEAST

S. 3040--A                         26

NINETY DAYS AFTER THE ADOPTION  OF  SUCH  REGULATIONS,  ISSUED  LICENSES
PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
  4.  THE BUREAU MAY LIMIT THE TOTAL AMOUNT OF MARIHUANA PRODUCED IN NEW
YORK BASED ON THE DEMAND FOR MARIHUANA AND MARIHUANA PRODUCTS AND IN  AN
EFFORT TO REDUCE ILLICIT MARIHUANA MARKETS.
  §  168.    LICENSES  ISSUED.  THE FOLLOWING KINDS OF LICENSES SHALL BE
ISSUED BY THE BUREAU FOR THE MANUFACTURE, PRODUCTION, PROCESSING,  TEST-
ING, RETAIL SALE AND DELIVERY OF MARIHUANA:
  1. MARIHUANA NURSERY LICENSE;
  2. MARIHUANA PRODUCER LICENSE;
  3. MARIHUANA PROCESSOR LICENSE;
  4. MARIHUANA DISTRIBUTOR LICENSE;
  5. MARIHUANA RETAILER LICENSE;
  6. MARIHUANA MICROBUSINESS LICENSE;
  7. MARIHUANA ON-SITE CONSUMPTION LICENSE;
  8. MARIHUANA DELIVERY LICENSE;
  9. MARIHUANA TESTING LICENSE; AND
  10. ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
  §  169.  LICENSING  LIMITS.  1. ALL LICENSES ISSUED UNDER THIS ARTICLE
SHALL BEAR A CLEAR  DESIGNATION  INDICATING  THAT  THE  LICENSE  IS  FOR
COMMERCIAL  MARIHUANA  ACTIVITY AS DISTINCT FROM MEDICAL MARIHUANA MANU-
FACTURED, PRODUCED AND SOLD FOR MEDICAL USE PURSUANT TO TITLE FIVE-A  OF
ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
  2.  AN  OWNER  OF A MARIHUANA RETAIL STORE SHALL NOT HOLD A LICENSE IN
ANOTHER LICENSE CATEGORY OF SECTION  ONE  HUNDRED  SIXTY-EIGHT  OF  THIS
ARTICLE,  SHALL NOT OWN OR HAVE OWNERSHIP INTEREST IN AN ENTITY LICENSED
PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF  THE  PUBLIC  HEALTH
LAW, AND SHALL HOLD NOT MORE THAN THREE RETAIL LICENSES.
  3.  AN  OWNER OF A MARIHUANA MICROBUSINESS SHALL NOT HOLD A LICENSE IN
ANOTHER LICENSE CATEGORY OF SECTION  ONE  HUNDRED  SIXTY-EIGHT  OF  THIS
ARTICLE, SHALL NOT OWN OR HAVE OWNERSHIP INTEREST IN A FACILITY LICENSED
PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH
LAW, AND SHALL HOLD NOT MORE THAN ONE MICROBUSINESS LICENSE.
  4. AN OWNER OF A MARIHUANA TESTING FACILITY SHALL NOT HOLD  A  LICENSE
IN  ANOTHER  LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-EIGHT OF THIS
ARTICLE AND SHALL NOT OWN OR  HAVE  OWNERSHIP  INTEREST  IN  A  FACILITY
LICENSED  PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC
HEALTH LAW.
  5. ONLY A MARIHUANA  RETAIL  LICENSEE  OR  A  MARIHUANA  MICROBUSINESS
LICENSEE MAY BE ISSUED AN ON-SITE CONSUMPTION LICENSE.
  6. ONLY A MARIHUANA RETAIL LICENSEE, MARIHUANA MICROBUSINESS LICENSEE,
OR  MARIHUANA  DELIVERY  LICENSEE  MAY BE PERMITTED TO DELIVER MARIHUANA
DIRECTLY TO CUSTOMERS.
  7. ONLY A MARIHUANA PRODUCER LICENSEE, MARIHUANA  PROCESSOR  LICENSEE,
OR MARIHUANA DISTRIBUTOR LICENSEE MAY DISTRIBUTE MARIHUANA AND MARIHUANA
PRODUCTS TO OTHER LICENSED MARIHUANA BUSINESSES.
  8. NO MARIHUANA DELIVERY OWNER MAY HOLD MORE THAN ONE MARIHUANA DELIV-
ERY LICENSE.
  9.  NO  MARIHUANA  DISTRIBUTOR  OWNER MAY HOLD MORE THAN ONE MARIHUANA
DISTRIBUTOR LICENSE.
  10. THE BUREAU SHALL ISSUE A SERIES OF PRODUCER LICENSES DISTINGUISHED
BY CANOPY SIZE AND TYPE OF LIGHTING USED, NATURAL/OUTDOOR LIGHT,  INDOOR
LIGHT, OR MIXED-LIGHT.
  11.  NO  MARIHUANA  PRODUCER  OWNER  MAY  HOLD MORE THAN ONE MARIHUANA
PRODUCER AND ONE MARIHUANA PROCESSOR LICENSE.

S. 3040--A                         27

  12. NO MARIHUANA PROCESSOR OWNER MAY HOLD MORE  THAN  THREE  MARIHUANA
PROCESSOR LICENSES.
  §  170.  ACTIONS  TAKEN  PURSUANT  TO  A  VALID LICENSE ARE LAWFUL. NO
CONTRACTS RELATED TO THE OPERATION OF LICENSES UNDER THIS CHAPTER  SHALL
BE DEEMED UNENFORCEABLE ON THE BASIS THAT THE ACTIONS PERMITTED PURSUANT
TO  THE LICENSE ARE PROHIBITED BY FEDERAL LAW. THE FOLLOWING ACTIONS ARE
NOT UNLAWFUL AS PROVIDED UNDER THIS CHAPTER, SHALL  NOT  BE  AN  OFFENSE
UNDER  NEW  YORK  LAW  OR  THE LAWS OF ANY LOCALITY WITHIN NEW YORK, AND
SHALL NOT RESULT IN ANY CIVIL FINE, SEIZURE,  OR  FORFEITURE  OF  ASSETS
AGAINST ANY PERSON ACTING IN ACCORDANCE WITH THIS CHAPTER:
  1.  ACTIONS OF A LICENSEE, ITS EMPLOYEES, AND ITS AGENTS, AS PERMITTED
BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
PURSUANT TO A VALID LICENSE ISSUED BY THE BUREAU.
  2. ACTIONS OF THOSE WHO ALLOW PROPERTY TO BE USED BY A  LICENSEE,  ITS
EMPLOYEES,  AND  ITS AGENTS, AS PERMITTED BY THIS CHAPTER AND CONSISTENT
WITH RULES AND REGULATIONS OF THE BUREAU, PURSUANT TO  A  VALID  LICENSE
ISSUED BY THE BUREAU.
  3.  ACTIONS  OF ANY PERSON OR ENTITY, THEIR EMPLOYEES, OR THEIR AGENTS
PROVIDING A SERVICE TO A LICENSEE OR POTENTIAL LICENSEE, AS PERMITTED BY
THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS  OF  THE  BUREAU,
RELATING TO THE FORMATION OF A BUSINESS.
  4. THE PURCHASE, POSSESSION, OR CONSUMPTION OF MARIHUANA, AS PERMITTED
BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
OBTAINED FROM A VALIDLY LICENSED RETAILER.
  § 171. GENERAL PROHIBITIONS AND RESTRICTIONS. 1. NO MARIHUANA PRODUCTS
MAY BE IMPORTED OR EXPORTED INTO NEW YORK STATE BY A LICENSEE FROM OR TO
A JURISDICTION IN WHICH POSSESSION, TRANSPORT, DISTRIBUTION OF MARIHUANA
OR  OTHER  MARIHUANA  RELATED  CONDUCT REMAINS ILLEGAL UNDER THE LAWS OF
THAT JURISDICTION.
  2. (A) NO PERSON HOLDING ANY LICENSE PURSUANT TO THIS ARTICLE TO  GROW
OR  PROCESS MARIHUANA MAY EMPLOY ANY PERSON WHO HAS BEEN CONVICTED OF AN
OFFENSE RELATED TO THE FUNCTIONS, OR DUTIES OF THE BUSINESS  OR  PROFES-
SION  FOR WHICH THE APPLICATION IS MADE WITHIN THREE YEARS OF THE APPLI-
CATION DATE, EXCEPT THAT IF THE BUREAU  DETERMINES  THAT  THE  OWNER  OR
LICENSEE  IS OTHERWISE SUITABLE TO BE ISSUED A LICENSE, AND GRANTING THE
LICENSE WOULD NOT COMPROMISE PUBLIC SAFETY, THE BUREAU SHALL  CONDUCT  A
THOROUGH  REVIEW  OF THE NATURE OF THE CRIME, CONVICTION, CIRCUMSTANCES,
AND EVIDENCE OF REHABILITATION OF THE  OWNER,  AND  SHALL  EVALUATE  THE
SUITABILITY OF THE OWNER OR LICENSEE TO BE ISSUED A LICENSE BASED ON THE
EVIDENCE  FOUND  THROUGH  THE  REVIEW. IN DETERMINING WHICH OFFENSES ARE
SUBSTANTIALLY RELATED TO THE QUALIFICATIONS, FUNCTIONS, OR DUTIES OF THE
BUSINESS OR PROFESSION FOR WHICH THE APPLICATION  IS  MADE,  THE  BUREAU
SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
  (I)  A  FELONY  CONVICTION  INVOLVING FRAUD AND OTHER UNLAWFUL CONDUCT
RELATED TO OWNING AND OPERATING A BUSINESS.
  (II) A FELONY CONVICTION FOR HIRING, EMPLOYING, OR USING  A  MINOR  IN
TRANSPORTING,  CARRYING,  SELLING,  GIVING  AWAY, PREPARING FOR SALE, OR
PEDDLING, ANY CONTROLLED SUBSTANCE TO A MINOR; OR SELLING,  OFFERING  TO
SELL,  FURNISHING,  OFFERING  TO  FURNISH,  ADMINISTERING, OR GIVING ANY
CONTROLLED SUBSTANCE TO A MINOR.
  (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
SION,  IF THE BUREAU ISSUES ITS WRITTEN APPROVAL FOR THE EMPLOYMENT BY A
LICENSEE, IN A SPECIFIED CAPACITY, OF A PERSON PREVIOUSLY CONVICTED OF A
FELONY OR ANY OF THE OFFENSES ABOVE ENUMERATED IN PARAGRAPH (A) OF  THIS
SUBDIVISION,  SUCH  PERSON,  MAY,  UNLESS  HE  OR  SHE  IS  SUBSEQUENTLY
CONVICTED OF A FELONY OR ANY OF SUCH OFFENSES, THEREAFTER BE EMPLOYED IN

S. 3040--A                         28

THE SAME CAPACITY BY ANY OTHER  LICENSEE  WITHOUT  THE  FURTHER  WRITTEN
APPROVAL  OF THE BUREAU UNLESS THE PRIOR APPROVAL GIVEN BY THE BUREAU IS
TERMINATED.
  3.  NO  LICENSE OF ANY KIND MAY BE ISSUED TO A PERSON UNDER THE AGE OF
TWENTY-ONE YEARS, NOR SHALL ANY LICENSEE EMPLOY ANYONE UNDER THE AGE  OF
TWENTY-ONE YEARS.
  §  172.  CERTAIN  OFFICIALS NOT TO BE INTERESTED IN THE MANUFACTURE OR
SALE OF MARIHUANA. 1.  EXCEPT  AS  OTHERWISE  PROVIDED  IN  SECTION  ONE
HUNDRED  TWENTY-EIGHT-A  OF  THIS  CHAPTER, IT SHALL BE UNLAWFUL FOR ANY
POLICE COMMISSIONER, POLICE  INSPECTOR,  CAPTAIN,  SERGEANT,  ROUNDSMAN,
PATROLMAN  OR OTHER POLICE OFFICIAL OR SUBORDINATE OF ANY POLICE DEPART-
MENT IN THE STATE, TO BE EITHER DIRECTLY OR INDIRECTLY INTERESTED IN THE
MANUFACTURE OR SALE OF MARIHUANA OR TO OFFER FOR SALE, OR  RECOMMEND  TO
ANY  LICENSEE  ANY  MARIHUANA.  A  PERSON  MAY NOT BE DENIED ANY LICENSE
GRANTED UNDER THE PROVISIONS OF SECTIONS FIFTY-FOUR, FIFTY-FIVE,  FIFTY-
NINE,  SIXTY-THREE,  SIXTY-FOUR,  SEVENTY-NINE,  EIGHTY-ONE,  OR ARTICLE
SEVEN OF THIS CHAPTER SOLELY ON THE GROUNDS OF BEING  THE  SPOUSE  OF  A
PUBLIC SERVANT DESCRIBED IN THIS SUBDIVISION. THE SOLICITATION OR RECOM-
MENDATION  MADE TO ANY LICENSEE, TO PURCHASE ANY MARIHUANA BY ANY POLICE
OFFICIAL OR SUBORDINATE AS  DESCRIBED  IN  THIS  SUBDIVISION,  SHALL  BE
PRESUMPTIVE  EVIDENCE OF THE INTEREST OF SUCH OFFICIAL OR SUBORDINATE IN
THE MANUFACTURE OR SALE OF MARIHUANA.
  2. NO ELECTIVE VILLAGE OFFICER SHALL BE SUBJECT TO THE LIMITATIONS SET
FORTH IN SUBDIVISION ONE OF THIS SECTION UNLESS  SUCH  ELECTIVE  VILLAGE
OFFICER  SHALL  BE ASSIGNED DUTIES DIRECTLY RELATING TO THE OPERATION OR
MANAGEMENT OF THE POLICE DEPARTMENT.
  § 173. PROVISIONS GOVERNING INITIAL RULEMAKING. 1. WITHIN TWO  HUNDRED
FORTY  DAYS  AFTER  THE EFFECTIVE DATE OF THIS ARTICLE, THE BUREAU SHALL
PERFORM SUCH ACTS, PRESCRIBE SUCH FORMS AND MAKE SUCH RULES, REGULATIONS
AND ORDERS AS IT MAY DEEM NECESSARY OR PROPER TO  FULLY  EFFECTUATE  THE
PROVISIONS OF THIS ARTICLE.
  2. THE BUREAU SHALL PROMULGATE NECESSARY RULES AND REGULATIONS GOVERN-
ING THE LICENSING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARIHUA-
NA RETAILERS AND MARIHUANA RETAILERS FOR CONSUMPTION ON-SITE, INCLUDING:
  (A) PRESCRIBING FORMS AND ESTABLISHING APPLICATION, REINSTATEMENT, AND
RENEWAL FEES;
  (B) THE QUALIFICATIONS FOR LICENSURE;
  (C)  THE  BOOKS AND RECORDS TO BE CREATED AND MAINTAINED BY LICENSEES,
THE REPORTS TO BE MADE THEREON TO THE  BUREAU,  AND  INSPECTION  OF  THE
BOOKS AND RECORDS;
  (D)  METHODS  OF PRODUCING, PROCESSING, AND PACKAGING MARIHUANA, MARI-
HUANA-INFUSED PRODUCTS, AND CONCENTRATED CANNABIS; CONDITIONS OF SANITA-
TION, AND STANDARDS OF INGREDIENTS, QUALITY, AND IDENTITY  OF  MARIHUANA
PRODUCTS PRODUCED, PROCESSED, PACKAGED, OR SOLD BY LICENSEES; AND
  (E)  SECURITY  REQUIREMENTS FOR MARIHUANA RETAILERS AND PREMISES WHERE
MARIHUANA PRODUCTS ARE PRODUCED OR PROCESSED, AND SAFETY  PROTOCOLS  FOR
LICENSEES AND THEIR EMPLOYEES.
  3.  THE  BUREAU SHALL PROMULGATE RULES AND REGULATIONS THAT ARE CALCU-
LATED TO:
  (A) PREVENT THE DISTRIBUTION OF MARIHUANA TO PERSONS UNDER  TWENTY-ONE
YEARS OF AGE;
  (B) PREVENT THE REVENUE FROM THE SALE OF MARIHUANA FROM GOING TO CRIM-
INAL ENTERPRISES, GANGS, AND CARTELS;
  (C)  PREVENT  THE  DIVERSION  OF  MARIHUANA  FROM  THIS STATE TO OTHER
STATES;

S. 3040--A                         29

  (D) PREVENT MARIHUANA ACTIVITY THAT IS  LEGAL  UNDER  STATE  LAW  FROM
BEING  USED  AS  A COVER OR PRETEXT FOR THE TRAFFICKING OF OTHER ILLEGAL
DRUGS OR OTHER ILLEGAL ACTIVITY;
  (E)  PREVENT  VIOLENCE  AND THE USE OF FIREARMS IN THE CULTIVATION AND
DISTRIBUTION OF MARIHUANA;
  (F) PREVENT DRUGGED DRIVING AND  THE  EXACERBATION  OF  OTHER  ADVERSE
PUBLIC HEALTH CONSEQUENCES ASSOCIATED WITH THE USE OF MARIHUANA;
  (G) PREVENT THE GROWING OF MARIHUANA ON PUBLIC LANDS AND THE ATTENDANT
PUBLIC SAFETY AND ENVIRONMENTAL DANGERS POSED BY MARIHUANA PRODUCTION ON
PUBLIC LANDS; AND
  (H) PREVENT THE POSSESSION AND USE OF MARIHUANA ON FEDERAL PROPERTY.
  4.  RULES AND REGULATIONS PROMULGATED BY THE BUREAU PURSUANT TO SUBDI-
VISION THREE OF THIS SECTION SHALL NOT PROHIBIT THE OPERATION  OF  MARI-
HUANA  ESTABLISHMENTS  EITHER EXPRESSLY OR THROUGH REGULATIONS THAT MAKE
THEIR OPERATION UNREASONABLY IMPRACTICABLE.
  5. THE BUREAU, IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE  AND
MARKETS  AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, SHALL PROMUL-
GATE NECESSARY RULES AND REGULATIONS GOVERNING THE  SAFE  PRODUCTION  OF
MARIHUANA, INCLUDING RESTRICTIONS ON THE USE OF PESTICIDES, INSECTICIDES
AND HERBICIDES.
  §  174. PROVISIONS GOVERNING MARIHUANA PRODUCERS. 1. NO PRODUCER SHALL
SELL, OR AGREE TO SELL OR DELIVER IN THE STATE ANY  MARIHUANA  PRODUCTS,
AS THE CASE MAY BE, EXCEPT IN SEALED CONTAINERS CONTAINING QUANTITIES IN
ACCORDANCE  WITH SIZE STANDARDS PURSUANT TO RULES ADOPTED BY THE BUREAU.
SUCH CONTAINERS SHALL  HAVE  AFFIXED  THERETO  SUCH  LABELS  AS  MAY  BE
REQUIRED  BY  THE  RULES  OF THE BUREAU, TOGETHER WITH ALL NECESSARY NEW
YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
  2. NO PRODUCER SHALL DELIVER ANY MARIHUANA PRODUCTS, EXCEPT  IN  VEHI-
CLES  OWNED AND OPERATED BY SUCH PRODUCER, OR HIRED AND OPERATED BY SUCH
PRODUCER FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED  WITH  THE
BUREAU,  AND  SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE
PURCHASER.
  3. EACH PRODUCER SHALL KEEP AND MAINTAIN UPON THE  LICENSED  PREMISES,
ADEQUATE  BOOKS  AND  RECORDS OF ALL TRANSACTIONS INVOLVING THE PRODUCER
AND SALE OF HIS OR ITS PRODUCTS, WHICH  SHALL  INCLUDE  ALL  INFORMATION
REQUIRED BY RULES PROMULGATED BY THE BUREAU. EACH SALE SHALL BE RECORDED
SEPARATELY  ON  A NUMBERED INVOICE, WHICH SHALL HAVE PRINTED THEREON THE
NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE LICENSED  PREMISES,
AND  THE  CURRENT  LICENSE  NUMBER.  SUCH  PRODUCER SHALL DELIVER TO THE
PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND ADDRESS  OF  THE
PURCHASER,  THE  QUANTITY  PURCHASED,  DESCRIPTION  AND THE PRICE OF THE
PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF  THE  TERMS  AND
CONDITIONS  ON WHICH SUCH SALE IS MADE. SUCH BOOKS, RECORDS AND INVOICES
SHALL BE KEPT FOR A PERIOD OF TWO  YEARS  AND  SHALL  BE  AVAILABLE  FOR
INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  4. NO PRODUCER SHALL FURNISH OR CAUSE TO BE FURNISHED TO ANY LICENSEE,
ANY  EXTERIOR OR INTERIOR SIGN, PRINTED, PAINTED, ELECTRIC OR OTHERWISE,
EXCEPT AS AUTHORIZED BY THE BUREAU. THE BUREAU MAY MAKE SUCH RULES AS IT
DEEMS NECESSARY TO CARRY OUT THE PURPOSE AND INTENT OF THIS SUBDIVISION.
  § 175. PROVISIONS GOVERNING  PROCESSORS.  1.  NO  PROCESSOR  SHALL  BE
ENGAGED  IN  ANY  OTHER  BUSINESS ON THE PREMISES TO BE LICENSED; EXCEPT
THAT NOTHING CONTAINED IN THIS CHAPTER SHALL PREVENT A MARIHUANA PRODUC-
ER AND A MARIHUANA PROCESSOR FROM OPERATING ON  THE  SAME  PREMISES  AND
FROM A PERSON HOLDING BOTH LICENSES.
  2.  NO  PROCESSOR SHALL SELL, OR AGREE TO SELL OR DELIVER IN THE STATE
ANY MARIHUANA PRODUCTS, EXCEPT IN A SEALED PACKAGE CONTAINING QUANTITIES

S. 3040--A                         30

IN ACCORDANCE WITH SIZE STANDARDS  PURSUANT  TO  RULES  ADOPTED  BY  THE
BUREAU. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE
REQUIRED  BY  THE  RULES  OF THE BUREAU, TOGETHER WITH ALL NECESSARY NEW
YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
  3.  NO  PROCESSOR SHALL DELIVER ANY PRODUCTS, EXCEPT IN VEHICLES OWNED
AND OPERATED BY SUCH PROCESSOR, OR HIRED AND OPERATED BY SUCH  PROCESSOR
FROM  A  TRUCKING  OR TRANSPORTATION COMPANY REGISTERED WITH THE BUREAU,
AND SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE  PURCHAS-
ER.
  4.  EACH PROCESSOR SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  BUSINESS
TRANSACTED  BY  SUCH PROCESSOR, WHICH SHALL SHOW THE AMOUNT OF MARIHUANA
PRODUCTS, PURCHASED BY SUCH PROCESSOR TOGETHER WITH THE  NAMES,  LICENSE
NUMBERS  AND  PLACES  OF  BUSINESS OF THE PERSONS FROM WHOM THE SAME WAS
PURCHASED AND THE AMOUNT INVOLVED IN SUCH  PURCHASES,  AS  WELL  AS  THE
AMOUNT  OF  MARIHUANA  PRODUCTS SOLD BY SUCH PROCESSOR TOGETHER WITH THE
NAMES, ADDRESSES, AND LICENSE NUMBERS  OF  SUCH  PURCHASERS.  EACH  SALE
SHALL  BE  RECORDED  SEPARATELY  ON A NUMBERED INVOICE, WHICH SHALL HAVE
PRINTED THEREON THE NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE
LICENSED PREMISES, AND THE CURRENT LICENSE NUMBER. SUCH PROCESSOR  SHALL
DELIVER  TO  THE PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND
ADDRESS OF THE PURCHASER, QUANTITY PURCHASED, DESCRIPTION AND THE  PRICE
OF THE PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS
AND  CONDITIONS  ON  WHICH  SUCH  SALE  IS MADE. SUCH BOOKS, RECORDS AND
INVOICES SHALL BE KEPT FOR A PERIOD OF TWO YEARS AND SHALL BE  AVAILABLE
FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  §  176. PROVISIONS GOVERNING MARIHUANA RETAILERS. 1. NO RETAIL LICENSE
SHALL BE GRANTED FOR ANY PREMISES, UNLESS THE  APPLICANT  SHALL  BE  THE
OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A LEASE,
MANAGEMENT  AGREEMENT  OR  OTHER  AGREEMENT GIVING THE APPLICANT CONTROL
OVER THE PREMISES, IN WRITING, FOR A TERM  NOT  LESS  THAN  THE  LICENSE
PERIOD.
  2.  NO  PREMISES  SHALL BE LICENSED TO SELL MARIHUANA PRODUCTS, UNLESS
SAID PREMISES SHALL BE LOCATED IN A STORE,  THE  PRINCIPAL  ENTRANCE  TO
WHICH  SHALL  BE FROM THE STREET LEVEL AND LOCATED ON A PUBLIC THOROUGH-
FARE IN PREMISES WHICH MAY BE OCCUPIED, OPERATED OR CONDUCTED FOR  BUSI-
NESS,  TRADE  OR  INDUSTRY  OR  ON AN ARCADE OR SUB-SURFACE THOROUGHFARE
LEADING TO A RAILROAD TERMINAL. THERE MAY BE NOT  MORE  THAN  ONE  ADDI-
TIONAL  ENTRANCE WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON AND
GIVING ACCESS TO AND FROM A PUBLIC OR PRIVATE  PARKING  LOT  OR  PARKING
AREA HAVING SPACE FOR NOT LESS THAN FIVE AUTOMOBILES.
  3. NO MARIHUANA RETAIL LICENSE SHALL BE GRANTED FOR ANY PREMISES WHICH
A  LICENSE  WOULD  NOT  BE  ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF
ALCOHOL OFF THE PREMISES BASED ON ITS PROXIMITY TO A  BUILDING  OCCUPIED
EXCLUSIVELY  AS  A  SCHOOL,  CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4. NO MARIHUANA RETAIL LICENSEE SHALL OFFER  FOR  SALE  ANY  MARIHUANA
PRODUCTS  IN ANY OTHER CONTAINER, EXCEPT IN THE ORIGINAL SEALED PACKAGE,
AS RECEIVED FROM THE PRODUCER, DISTRIBUTOR OR PROCESSOR. SUCH CONTAINERS
SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE REQUIRED BY  THE  RULES
OF  THE  BUREAU,  TOGETHER WITH ALL NEW YORK STATE EXCISE TAX STAMPS, AS
REQUIRED BY LAW. SUCH CONTAINERS SHALL NOT BE OPENED  NOR  ITS  CONTENTS
CONSUMED ON THE PREMISES WHERE SOLD.
  5.  NO  MARIHUANA  RETAIL  LICENSEE  SHALL  SELL OR TRANSFER MARIHUANA
PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS.

S. 3040--A                         31

  6. NO MARIHUANA RETAIL LICENSEE SHALL SELL ALCOHOLIC BEVERAGES ON  THE
SAME PREMISES WHERE MARIHUANA PRODUCTS ARE SOLD.
  7.  NO  SIGN OF ANY KIND PRINTED, PAINTED OR ELECTRIC, ADVERTISING ANY
BRAND SHALL BE PERMITTED ON THE EXTERIOR OR INTERIOR OF  SUCH  PREMISES,
EXCEPT BY PERMISSION OF THE BUREAU.
  8.  NO  RETAIL LICENSEE SHALL DELIVER ANY MARIHUANA PRODUCTS EXCEPT IN
VEHICLES OWNED AND OPERATED BY SUCH LICENSEE, OR HIRED AND  OPERATED  BY
SUCH  LICENSEE FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED WITH
THE BUREAU, AND SHALL ONLY MAKE SUCH DELIVERIES AT THE PREMISES  OF  THE
PURCHASER.
  9.  NO  RETAIL  LICENSEE  SHALL  KEEP  OR  PERMIT  TO BE KEPT UPON THE
LICENSED PREMISES, ANY MARIHUANA PRODUCTS IN ANY UNSEALED CONTAINER.
  10. NO RETAIL LICENSEE SHALL SELL OR DELIVER ANY MARIHUANA PRODUCTS TO
ANY PERSON WITH KNOWLEDGE OF, OR WITH REASONABLE CAUSE TO BELIEVE,  THAT
THE  PERSON TO WHOM SUCH MARIHUANA PRODUCTS ARE BEING SOLD, HAS ACQUIRED
THE SAME FOR THE PURPOSE OF PEDDLING THEM FROM PLACE  TO  PLACE,  OR  OF
SELLING OR GIVING THEM AWAY IN VIOLATION OF THE PROVISIONS OF THIS CHAP-
TER OR IN VIOLATION OF THE RULES AND REGULATIONS OF THE BUREAU.
  11. NO PREMISES LICENSED AS A MARIHUANA RETAILER SHALL BE PERMITTED TO
REMAIN OPEN DURING A TIME WHEN A PREMISES LICENSED TO SELL LIQUOR AND/OR
WINE FOR OFF-PREMISES CONSUMPTION IS NOT PERMITTED TO REMAIN OPEN PURSU-
ANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  12.  EACH  MARIHUANA  RETAIL LICENSEE SHALL KEEP AND MAINTAIN UPON THE
LICENSED PREMISES,  ADEQUATE  BOOKS  AND  RECORDS  OF  ALL  TRANSACTIONS
INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE, WHICH SHALL SHOW THE
AMOUNT  OF  MARIHUANA PRODUCTS, PURCHASED BY SUCH LICENSEE TOGETHER WITH
THE NAMES, LICENSE NUMBERS AND PLACES OF BUSINESS OF  THE  PERSONS  FROM
WHOM THE SAME WERE PURCHASED, AND THE AMOUNT INVOLVED IN SUCH PURCHASES,
AS  WELL AS THE AMOUNT OF MARIHUANA PRODUCTS, SOLD BY SUCH LICENSEE, AND
THE AMOUNT INVOLVED IN EACH SALE. SUCH BOOKS AND RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  13. ALL PREMISES LICENSED UNDER  THIS  SECTION  SHALL  BE  SUBJECT  TO
INSPECTION BY ANY PEACE OFFICER DESCRIBED IN SUBDIVISION FOUR OF SECTION
2.10 OF THE CRIMINAL PROCEDURE LAW ACTING PURSUANT TO HIS OR HER SPECIAL
DUTIES,  OR  POLICE OFFICER OR ANY DULY AUTHORIZED REPRESENTATIVE OF THE
BUREAU, DURING THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR THE  TRANS-
ACTION OF BUSINESS.
  § 177. PROVISIONS GOVERNING MARIHUANA ON-SITE CONSUMPTION LICENSES. 1.
NO  MARIHUANA  RETAILER  OR  MICROBUSINESS  SHALL BE GRANTED A MARIHUANA
ON-SITE CONSUMPTION LICENSE FOR A PREMISES LOCATED IN WHOLE OR  IN  PART
INSIDE  THE  BOUNDARIES  OF  ANY CITY, VILLAGE OR TOWN, UNLESS THE LOCAL
LEGISLATIVE BODY OF SUCH CITY, VILLAGE OR TOWN, BY RESOLUTION, EXPRESSLY
AUTHORIZES THE LICENSING OF SUCH FACILITIES IN  SUCH  CITY,  VILLAGE  OR
TOWN.  THE  LOCAL  LEGISLATIVE  BODY  MAY DIRECT AN APPROPRIATE OFFICER,
BOARD OR BODY OF SUCH CITY, VILLAGE  OR  TOWN  AS  THE  LOCAL  LICENSING
AUTHORITY  TO  AUTHORIZE  INDIVIDUAL MARIHUANA FACILITY LICENSE APPLICA-
TIONS. IN CITIES OF ONE MILLION OR  MORE  RESIDENTS,  SHOULD  THE  LOCAL
LEGISLATIVE  BODY  AUTHORIZE SUCH LICENSE, NO MARIHUANA RETAILER LICENSE
FOR CONSUMPTION ON-SITE SHALL BE  GRANTED  UNLESS  THE  COMMUNITY  BOARD
ESTABLISHED  PURSUANT  TO  SECTION  TWENTY-EIGHT HUNDRED OF THE NEW YORK
CITY CHARTER WITH JURISDICTION OVER THE AREA IN WHICH THE PREMISES  WILL
BE LOCATED SHALL ALSO AUTHORIZE SUCH LICENSE.
  2. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
ON-SITE CONSUMPTION LICENSE FOR ANY PREMISES, UNLESS THE APPLICANT SHALL
BE THE OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A
LEASE,  IN  WRITING, FOR A TERM NOT LESS THAN THE LICENSE PERIOD EXCEPT,

S. 3040--A                         32

HOWEVER, THAT  SUCH  LICENSE  MAY  THEREAFTER  BE  RENEWED  WITHOUT  THE
REQUIREMENT  OF  A  LEASE AS HEREIN PROVIDED. THIS SUBDIVISION SHALL NOT
APPLY TO PREMISES LEASED FROM  GOVERNMENT  AGENCIES,  AS  DEFINED  UNDER
SUBDIVISION  TWELVE-C OF SECTION THREE OF THIS CHAPTER; PROVIDED, HOWEV-
ER,  THAT  THE  APPROPRIATE  ADMINISTRATOR  OF  SUCH  GOVERNMENT  AGENCY
PROVIDES SOME FORM OF WRITTEN DOCUMENTATION REGARDING THE TERMS OF OCCU-
PANCY  UNDER  WHICH  THE  APPLICANT  IS  LEASING  SAID PREMISES FROM THE
GOVERNMENT AGENCY FOR PRESENTATION TO THE BUREAU  AT  THE  TIME  OF  THE
LICENSE APPLICATION. SUCH DOCUMENTATION SHALL INCLUDE THE TERMS OF OCCU-
PANCY  BETWEEN  THE  APPLICANT AND THE GOVERNMENT AGENCY, INCLUDING, BUT
NOT LIMITED TO, ANY SHORT-TERM LEASING AGREEMENTS OR  WRITTEN  OCCUPANCY
AGREEMENTS.
  3. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
ON-SITE  CONSUMPTION  LICENSE FOR ANY PREMISES WHERE A LICENSE WOULD NOT
BE ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF ALCOHOL ON THE  PREMISES
BASED  ON  ITS PROXIMITY TO A BUILDING OCCUPIED EXCLUSIVELY AS A SCHOOL,
CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP PURSUANT TO  THE  PROVISIONS
OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4.  THE BUREAU MAY CONSIDER ANY OR ALL OF THE FOLLOWING IN DETERMINING
WHETHER PUBLIC CONVENIENCE AND ADVANTAGE AND THE PUBLIC INTEREST WILL BE
PROMOTED BY THE GRANTING OF LICENSES AND PERMITS FOR A MARIHUANA ON-SITE
CONSUMPTION LICENSE AT A PARTICULAR UNLICENSED LOCATION:
  (A) THE NUMBER, CLASSES AND CHARACTER OF LICENSES IN PROXIMITY TO  THE
LOCATION AND IN THE PARTICULAR MUNICIPALITY OR SUBDIVISION THEREOF.
  (B)  EVIDENCE  THAT  ALL  NECESSARY  LICENSES  AND  PERMITS  HAVE BEEN
OBTAINED FROM THE STATE AND ALL OTHER GOVERNING BODIES.
  (C) EFFECT OF THE GRANT OF THE LICENSE ON VEHICULAR TRAFFIC AND  PARK-
ING IN PROXIMITY TO THE LOCATION.
  (D) THE EXISTING NOISE LEVEL AT THE LOCATION AND ANY INCREASE IN NOISE
LEVEL THAT WOULD BE GENERATED BY THE PROPOSED PREMISES.
  (E) THE HISTORY OF MARIHUANA VIOLATIONS AND REPORTED CRIMINAL ACTIVITY
AT THE PROPOSED PREMISES.
  (F) ANY OTHER FACTORS SPECIFIED BY LAW OR REGULATION THAT ARE RELEVANT
TO DETERMINE THE PUBLIC CONVENIENCE AND ADVANTAGE AND PUBLIC INTEREST OF
THE COMMUNITY.
  5.  IF  THE  BUREAU  SHALL  DISAPPROVE AN APPLICATION FOR A LICENSE OR
PERMIT, IT SHALL STATE AND FILE IN ITS OFFICES THE REASONS THEREFOR  AND
SHALL  NOTIFY  THE APPLICANT THEREOF. SUCH APPLICANT MAY THEREUPON APPLY
TO THE BUREAU FOR A REVIEW OF SUCH ACTION IN A MANNER TO  BE  PRESCRIBED
BY THE RULES OF THE BUREAU. A HEARING UPON NOTICE TO THE APPLICANT SHALL
THEREUPON  BE  HELD BY THE BUREAU OR BY ONE OF ITS MEMBERS AT ITS OFFICE
MOST CONVENIENTLY SITUATED TO THE OFFICE OF ITS DULY  AUTHORIZED  REPRE-
SENTATIVE IN A MANNER TO BE PRESCRIBED IN ITS RULES; AND ON SUCH HEARING
PROOF  MAY  BE TAKEN BY ORAL TESTIMONY OR BY AFFIDAVIT RELATIVE THERETO.
AFTER SUCH HEARING, IF THE BUREAU CONFIRMS SUCH  DISAPPROVAL,  IT  SHALL
ENDORSE SUCH APPLICATION ACCORDINGLY AND SHALL SEND NOTICE TO THE APPLI-
CANT  OF  ITS  ACTION  IN  SUCH FORM AS THE BUREAU MAY PRESCRIBE. IF THE
BUREAU DOES NOT CONFIRM THE DISAPPROVAL ACTION IT MAY GRANT SUCH  APPLI-
CATION AND ISSUE SUCH LICENSE.
  6. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE, EXCEPT PERSONS OR CORPO-
RATIONS OPERATING A HOTEL, AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION
THREE  OF  THIS  CHAPTER,  FOR  EXCLUSIVE  USE IN THE FURNISHING OF ROOM
SERVICE IN THE MANNER PRESCRIBED BY RULE OR REGULATION  OF  THE  BUREAU,
SHALL  KEEP  UPON  THE  LICENSED PREMISES ANY MARIHUANA PRODUCTS, EXCEPT
THOSE PURCHASED FROM A LICENSED PRODUCER, AND IN CONTAINERS APPROVED  BY
THE  BUREAU.  SUCH  CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS

S. 3040--A                         33

MAY BE REQUIRED BY THE RULES OF THE BUREAU, TOGETHER WITH ALL  NECESSARY
EXCISE  STAMPS  AS  REQUIRED  BY  LAW.  NO MARIHUANA RETAIL LICENSEE FOR
ON-SITE CONSUMPTION SHALL REUSE, REFILL, TAMPER WITH, ADULTERATE, DILUTE
OR  FORTIFY  THE  CONTENTS  OF  ANY  CONTAINER  OF MARIHUANA PRODUCTS AS
RECEIVED FROM THE MANUFACTURER OR WHOLESALER.
  7. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL  SELL,  DELIVER  OR
GIVE  AWAY, OR CAUSE OR PERMIT OR PROCURE TO BE SOLD, DELIVERED OR GIVEN
AWAY ANY MARIHUANA FOR CONSUMPTION ON  THE  PREMISES  WHERE  SOLD  IN  A
CONTAINER OR PACKAGE CONTAINING MORE THAN ONE GRAM OF MARIHUANA.
  8.  NO  MARIHUANA  ON-SITE CONSUMPTION LICENSEE SHALL SUFFER OR PERMIT
ANY GAMBLING ON THE LICENSED PREMISES, OR SUFFER OR PERMIT SUCH PREMISES
TO BECOME DISORDERLY. THE USE OF THE  LICENSED  PREMISES,  OR  ANY  PART
THEREOF,  FOR  THE SALE OF LOTTERY TICKETS, PLAYING OF BINGO OR GAMES OF
CHANCE, OR AS A SIMULCAST FACILITY OR SIMULCAST THEATER PURSUANT TO  THE
RACING,  PARI-MUTUEL WAGERING AND BREEDING LAW, WHEN DULY AUTHORIZED AND
LAWFULLY CONDUCTED THEREON, SHALL NOT  CONSTITUTE  GAMBLING  WITHIN  THE
MEANING OF THIS SUBDIVISION.
  (A)  NO  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL SUFFER OR PERMIT
ANY PERSON TO APPEAR ON LICENSED PREMISES IN SUCH MANNER OR ATTIRE AS TO
EXPOSE TO VIEW ANY PORTION OF THE PUBIC AREA, ANUS, VULVA  OR  GENITALS,
OR  ANY  SIMULATION  THEREOF,  NOR  SHALL SUFFER OR PERMIT ANY FEMALE TO
APPEAR ON LICENSED PREMISES IN SUCH MANNER OR ATTIRE  AS  TO  EXPOSE  TO
VIEW ANY PORTION OF THE BREAST BELOW THE TOP OF THE AREOLA, OR ANY SIMU-
LATION THEREOF.
  (B)  NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL SUFFER, PERMIT OR
PROMOTE AN EVENT ON ITS PREMISES WHEREIN THE CONTESTANTS DELIVER, OR ARE
NOT FORBIDDEN BY THE APPLICABLE RULES  THEREOF  FROM  DELIVERING  KICKS,
PUNCHES  OR  BLOWS  OF ANY KIND TO THE BODY OF AN OPPONENT OR OPPONENTS,
WHETHER OR NOT THE EVENT CONSISTS OF A PROFESSIONAL MATCH OR EXHIBITION,
AND WHETHER OR NOT THE EVENT OR ANY SUCH  ACT,  OR  BOTH,  IS  DONE  FOR
COMPENSATION;  PROVIDED,  HOWEVER,  THAT  THIS  PROHIBITION SHALL NOT BE
APPLIED TO ANY  PROFESSIONAL  MATCH  OR  EXHIBITION  WHICH  CONSISTS  OF
BOXING,  SPARRING, WRESTLING, OR MARTIAL ARTS AND WHICH IS EXCEPTED FROM
THE DEFINITION OF THE TERM "COMBATIVE SPORT"  CONTAINED  IN  SUBDIVISION
THREE OF SECTION ONE THOUSAND OF THE GENERAL BUSINESS LAW.
  (C)  IN  ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF
THIS SUBDIVISION SHALL CONSTITUTE AN ADEQUATE GROUND FOR  INSTITUTING  A
PROCEEDING  TO  SUSPEND, CANCEL OR REVOKE THE LICENSE OF THE VIOLATOR IN
ACCORDANCE WITH THE  APPLICABLE  PROCEDURES  SPECIFIED  IN  SECTION  ONE
HUNDRED NINETEEN OF THIS CHAPTER.
  9.  EXCEPT  WHERE  A  PERMIT  TO DO SO IS OBTAINED PURSUANT TO SECTION
405.10 OF THE PENAL LAW, NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL
SUFFER, PERMIT, OR PROMOTE AN EVENT ON ITS PREMISES WHEREIN  ANY  PERSON
SHALL  USE,  EXPLODE,  OR CAUSE TO EXPLODE, ANY FIREWORKS OR OTHER PYRO-
TECHNICS IN A BUILDING AS DEFINED IN PARAGRAPH E OF SUBDIVISION  ONE  OF
SECTION  405.10  OF  THE  PENAL  LAW, THAT IS COVERED BY SUCH LICENSE OR
POSSESS SUCH FIREWORKS OR PYROTECHNICS FOR SUCH PURPOSE. IN ADDITION  TO
ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF THIS SUBDIVISION SHALL
CONSTITUTE  AN  ADEQUATE GROUND FOR INSTITUTING A PROCEEDING TO SUSPEND,
CANCEL, OR REVOKE THE LICENSE OF THE VIOLATOR  IN  ACCORDANCE  WITH  THE
APPLICABLE  PROCEDURES SPECIFIED IN SECTION ONE HUNDRED NINETEEN OF THIS
CHAPTER; PROVIDED HOWEVER, IF MORE THAN ONE LICENSEE IS PARTICIPATING IN
A SINGLE EVENT, UPON APPROVAL BY THE  BUREAU,  ONLY  ONE  LICENSEE  MUST
OBTAIN SUCH PERMIT.
  10.  NO RESTAURANT AND NO PREMISES LICENSED TO SELL MARIHUANA PRODUCTS
FOR ON-SITE CONSUMPTION  UNDER  PARAGRAPH  (A)  OF  SUBDIVISION  SIX  OF

S. 3040--A                         34

SECTION  SIXTY-FOUR-A  OF  THIS  CHAPTER  SHALL BE PERMITTED TO HAVE ANY
OPENING OR MEANS OF ENTRANCE OR PASSAGEWAY FOR PERSONS OR THINGS BETWEEN
THE LICENSED PREMISES AND ANY  OTHER  ROOM  OR  PLACE  IN  THE  BUILDING
CONTAINING THE LICENSED PREMISES, OR ANY ADJOINING OR ABUTTING PREMISES,
UNLESS  INGRESS  AND  EGRESS  IS RESTRICTED BY AN EMPLOYEE, AGENT OF THE
LICENSEE, OR OTHER APPROVED METHOD OF CONTROLLING ACCESS TO THE  FACILI-
TY,  OR UNLESS SUCH PREMISES ARE A BONA FIDE RESTAURANT WITH SUCH ACCESS
FOR PATRONS AND GUESTS FROM ANY PART OF SUCH BUILDING  OR  ADJOINING  OR
ABUTTING  PREMISES AS SHALL SERVE PUBLIC CONVENIENCE IN A REASONABLE AND
SUITABLE MANNER; OR UNLESS SUCH LICENSED  PREMISES  ARE  IN  A  BUILDING
OWNED OR OPERATED BY ANY COUNTY, TOWN, CITY, VILLAGE OR PUBLIC AUTHORITY
OR AGENCY, IN A PARK OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION. ALL
GLASS IN ANY WINDOW OR DOOR ON SAID LICENSED PREMISES SHALL BE CLEAR AND
SHALL NOT BE OPAQUE, COLORED, STAINED OR FROSTED.
  11.  A VESSEL LICENSED TO SELL MARIHUANA PRODUCTS FOR ON-SITE CONSUMP-
TION SHALL NOT BE PERMITTED TO SELL ANY MARIHUANA PRODUCTS,  WHILE  SAID
VESSEL  IS  MOORED  TO  A  PIER  OR DOCK, EXCEPT THAT VESSELS SAILING ON
ESTABLISHED SCHEDULES SHALL BE PERMITTED TO SELL MARIHUANA PRODUCTS  FOR
A PERIOD OF THREE HOURS PRIOR TO THE REGULAR ADVERTISED SAILING TIME.
  12.  EACH  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL KEEP AND MAIN-
TAIN UPON THE LICENSED PREMISES, ADEQUATE RECORDS  OF  ALL  TRANSACTIONS
INVOLVING  THE BUSINESS TRANSACTED BY SUCH LICENSEE WHICH SHALL SHOW THE
AMOUNT OF MARIHUANA  PRODUCTS,  IN  AN  APPLICABLE  METRIC  MEASUREMENT,
PURCHASED  BY SUCH LICENSEE TOGETHER WITH THE NAMES, LICENSE NUMBERS AND
PLACES OF BUSINESS OF THE PERSONS FROM WHOM THE SAME WERE PURCHASED, THE
AMOUNT INVOLVED IN SUCH PURCHASES, AS WELL AS  THE  SALES  OF  MARIHUANA
PRODUCTS  MADE  BY  SUCH  LICENSEE.  THE  BUREAU IS HEREBY AUTHORIZED TO
PROMULGATE RULES AND REGULATIONS PERMITTING AN ON-SITE LICENSEE  OPERAT-
ING  TWO OR MORE PREMISES SEPARATELY LICENSED TO SELL MARIHUANA PRODUCTS
FOR ON-SITE CONSUMPTION TO INAUGURATE OR RETAIN IN THIS STATE METHODS OR
PRACTICES  OF  CENTRALIZED  ACCOUNTING,  BOOKKEEPING,  CONTROL  RECORDS,
REPORTING,  BILLING, INVOICING OR PAYMENT RESPECTING PURCHASES, SALES OR
DELIVERIES OF MARIHUANA PRODUCTS, OR METHODS AND PRACTICES  OF  CENTRAL-
IZED  RECEIPT OR STORAGE OF MARIHUANA PRODUCTS WITHIN THIS STATE WITHOUT
SEGREGATION OR EARMARKING FOR ANY  SUCH  SEPARATELY  LICENSED  PREMISES,
WHEREVER  SUCH  METHODS  AND  PRACTICES ASSURE THE AVAILABILITY, AT SUCH
LICENSEE'S CENTRAL OR MAIN OFFICE IN  THIS  STATE,  OF  DATA  REASONABLY
NEEDED FOR THE ENFORCEMENT OF THIS CHAPTER. SUCH RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  13. ALL RETAIL LICENSED PREMISES SHALL BE SUBJECT TO INSPECTION BY ANY
PEACE  OFFICER,  ACTING PURSUANT TO HIS OR HER SPECIAL DUTIES, OR POLICE
OFFICER AND BY THE DULY AUTHORIZED REPRESENTATIVES OF THE BUREAU, DURING
THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR THE TRANSACTION  OF  BUSI-
NESS.
  14.  A  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL NOT PROVIDE MARI-
HUANA PRODUCTS TO ANY PERSON UNDER THE  AGE  OF  TWENTY-ONE  OR  TO  ANY
PERSON WHO IS VISIBLY IMPAIRED.
  §  178.  ADVERTISING  AND  FORMS  OF  THE ISSUANCE OF LICENSES. 1. THE
BUREAU IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGULATIONS  GOVERN-
ING  THE ADVERTISING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARI-
HUANA RETAILERS, AND ANY MARIHUANA RELATED PRODUCTS OR SERVICES.
  2. THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING  ADVERTISING
THAT:
  (A) IS FALSE, DECEPTIVE, OR MISLEADING;
  (B) PROMOTES OVERCONSUMPTION;
  (C) DEPICTS CONSUMPTION BY CHILDREN OR OTHER MINORS;

S. 3040--A                         35

  (D) IS DESIGNED IN ANY WAY TO APPEAL TO CHILDREN OR OTHER MINORS;
  (E)  IS  WITHIN TWO HUNDRED FEET OF THE PERIMETER OF A SCHOOL GROUNDS,
PLAYGROUND, CHILD CARE CENTER, PUBLIC PARK, OR LIBRARY;
  (F) IS IN PUBLIC TRANSIT VEHICLES AND STATIONS;
  (G) IS IN THE FORM OF AN UNSOLICITED INTERNET POP-UP; OR
  (H) IS ON PUBLICLY OWNED OR OPERATED PROPERTY.
  3. THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING ALL  MARKET-
ING  STRATEGIES AND IMPLEMENTATION INCLUDING, BUT NOT LIMITED TO, BRAND-
ING, PACKAGING, LABELING, LOCATION OF MARIHUANA RETAILERS AND  MARIHUANA
MICROBUSINESSES, AND ADVERTISEMENTS THAT ARE DESIGNED TO:
  (A) APPEAL TO PERSONS LESS THEN TWENTY-ONE YEARS OF AGE; OR
  (B) DISSEMINATE FALSE OR MISLEADING INFORMATION TO CUSTOMERS.
  4. THE BUREAU SHALL PROMULGATE EXPLICIT RULES REQUIRING THAT:
  (A)  ALL  ADVERTISEMENTS AND MARKETING ACCURATELY AND LEGIBLY IDENTIFY
THE LICENSEE RESPONSIBLE FOR ITS CONTENT; AND
  (B) ANY BROADCAST, CABLE,  RADIO,  PRINT  AND  DIGITAL  COMMUNICATIONS
ADVERTISEMENTS  ONLY BE PLACED WHERE THE AUDIENCE IS REASONABLY EXPECTED
TO BE TWENTY-ONE YEARS OF AGE  OR  OLDER,  AS  DETERMINED  BY  RELIABLE,
UP-TO-DATE AUDIENCE COMPOSITION DATA.
  §  179.  PACKAGING  OF  MARIHUANA  PRODUCTS.  1.  THE BUREAU IS HEREBY
AUTHORIZED TO PROMULGATE RULES AND REGULATIONS GOVERNING  THE  PACKAGING
OF MARIHUANA PRODUCTS, SOLD OR POSSESSED FOR SALE IN NEW YORK STATE.
  2. SUCH REGULATIONS SHALL INCLUDE REQUIRING THAT:
  (A)  PACKAGING  MEETS  REQUIREMENTS  SIMILAR  TO  THE  FEDERAL "POISON
PREVENTION PACKAGING ACT OF 1970," 15 U.S.C. SEC 1471 ET SEQ.;
  (B) ALL MARIHUANA-INFUSED PRODUCTS SHALL HAVE A SEPARATE PACKAGING FOR
EACH SERVING;
  (C) PRIOR TO DELIVERY OR SALE AT A RETAILER, MARIHUANA  AND  MARIHUANA
PRODUCTS  SHALL  BE  LABELED AND PLACED IN A RESEALABLE, CHILD-RESISTANT
PACKAGE; AND
  (D) PACKAGES AND LABELS SHALL NOT BE MADE TO BE  ATTRACTIVE  TO  CHIL-
DREN.
  § 180. LABELING OF MARIHUANA PRODUCTS. 1. THE BUREAU IS HEREBY AUTHOR-
IZED  TO  PROMULGATE  RULES  AND  REGULATIONS GOVERNING THE LABELING AND
OFFERING OF MARIHUANA PRODUCTS FOR SALE WITHIN THIS STATE.
  2. SUCH RULES AND REGULATIONS SHALL BE  CALCULATED  TO:  (A)  PROHIBIT
DECEPTION OF THE CONSUMER; (B) AFFORD ADEQUATE INFORMATION AS TO QUALITY
AND IDENTITY OF THE PRODUCT; AND (C) ACHIEVE NATIONAL UNIFORMITY IN THIS
BUSINESS.
  3. THE BUREAU MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF HEALTH WHEN
NECESSARY BEFORE PROMULGATING RULES AND REGULATIONS UNDER THIS SECTION.
  4.  SUCH  REGULATIONS SHALL INCLUDE REQUIRING LABELS WARNING CONSUMERS
OF ANY POTENTIAL IMPACT ON HUMAN HEALTH RESULTING FROM  THE  CONSUMPTION
OF MARIHUANA PRODUCTS THAT SHALL BE AFFIXED TO THOSE PRODUCTS WHEN SOLD,
IF  SUCH  LABELS  ARE  DEEMED WARRANTED BY THE BUREAU AFTER CONSULTATION
WITH THE DEPARTMENT OF HEALTH.
  5. ALL MARIHUANA  AND  MARIHUANA  PRODUCT  LABELS  AND  INSERTS  SHALL
INCLUDE  THE  FOLLOWING INFORMATION PROMINENTLY DISPLAYED IN A CLEAR AND
LEGIBLE FASHION IN ACCORDANCE  WITH  THE  REQUIREMENTS,  INCLUDING  FONT
SIZE,  PRESCRIBED  BY  THE  BUREAU OR THE DEPARTMENT OF HEALTH: NOT LESS
THAN 8 POINT FONT:
  (A) MANUFACTURE DATE AND SOURCE;
  (B) FOR PACKAGES CONTINUING ONLY DRIED FLOWER, THE NET WEIGHT OF MARI-
HUANA IN THE PACKAGE;

S. 3040--A                         36

  (C) IDENTIFICATION OF THE SOURCE AND DATE OF CULTIVATION, THE TYPE  OF
MARIHUANA OR MARIHUANA PRODUCT AND THE DATE OF MANUFACTURING AND PACKAG-
ING;
  (D)  LIST  OF PHARMACOLOGICALLY ACTIVE INGREDIENTS, INCLUDING, BUT NOT
LIMITED TO, TETRAHYDRICANNABINAL (THC),  CANNIBIDIOL  (CBP),  AND  OTHER
CANNABINOID  CONTENT, THE THC AND OTHER CANNABINOID AMOUNT IN MILLIGRAMS
PER SERVING, SERVINGS PER PACKAGE, AND THE  THC  AND  OTHER  CANNIBINOID
AMOUNT IN MILLIGRAMS FOR THE PACKAGE TOTAL, AND THE POTENCY OF THE MARI-
HUANA  OR MARIHUANA PRODUCT BY REFERENCE TO THE AMOUNT OF TETRAHYDROCAN-
NIBINOL AND CANIBIDIOL IN EACH SERVING;
  (E) FOR MARIHUANA PRODUCTS, A LIST OF ALL INGREDIENTS  AND  DISCLOSURE
OF NUTRITIONAL INFORMATION IN THE SAME MANNER AS THE FEDERAL NUTRITIONAL
LABELING REQUIREMENTS IN 21 C.F.R. SECTION 101.9;
  (F)  A  LIST  OF  ANY SOLVENTS, NONORGANIC PESTICIDES, HERBICIDES, AND
FERTILIZERS THAT WERE USED IN THE CULTIVATION, PRODUCTION, AND  MANUFAC-
TURE OF SUCH MARIHUANA OR MARIHUANA PRODUCT;
  (G) A WARNING IF NUTS OR OTHER KNOWN ALLERGENS ARE USED;
  (H)  INFORMATION  ASSOCIATED  WITH THE UNIQUE IDENTIFIER ISSUED BY THE
BUREAU OF MARIHUANA POLICY; AND
  (I) ANY OTHER REQUIREMENTS SET BY THE BUREAU OF MARIHUANA POLICY.
  6. ONLY GENERIC FOOD NAMES MAY BE USED TO DESCRIBE THE INGREDIENTS  IN
EDIBLE MARIHUANA PRODUCTS.
  7.  SUCH  RULES AND REGULATIONS SHALL ESTABLISH METHODS AND PROCEDURES
FOR DETERMINING SERVING SIZES  FOR  MARIHUANA-INFUSED  PRODUCTS,  ACTIVE
CANNABIS  CONCENTRATION  PER  SERVING  SIZE,  AND NUMBER OF SERVINGS PER
CONTAINER. SUCH REGULATIONS SHALL ALSO REQUIRE A NUTRITIONAL FACT  PANEL
THAT INCORPORATES DATA REGARDING SERVING SIZES AND POTENCY THEREOF.
  8. SUCH RULES AND REGULATIONS SHALL REQUIRE INFORMATION CONTAINING THE
LICENSE  NUMBER OF THE MARIHUANA PRODUCER AND PROCESSOR FACILITIES WHERE
THE MARIHUANA WAS GROWN AND PROCESSED.
  9. THE PACKAGING, SALE, OR POSSESSION BY ANY LICENSEE OF ANY MARIHUANA
PRODUCT NOT LABELED OR OFFERED IN CONFORMITY WITH RULES AND  REGULATIONS
PROMULGATED  IN  ACCORDANCE  WITH  THIS SECTION SHALL BE GROUNDS FOR THE
IMPOSITION OF A FINE, AND/OR THE SUSPENSION, REVOCATION OR  CANCELLATION
OF THE LICENSE.
  §  181. SEED TO SALE TRACKING. 1. NO LATER THAN FIFTEEN MONTHS FOLLOW-
ING THE EFFECTIVE DATE OF THE MARIHUANA REGULATION AND TAXATION ACT, THE
BUREAU SHALL ESTABLISH A SEED TO SALE TRACKING PROGRAM FOR REPORTING THE
MOVEMENT OF MARIHUANA AND MARIHUANA PRODUCTS THROUGHOUT THE DISTRIBUTION
CHAIN THAT UTILIZES A UNIQUE IDENTIFIER  AND  SECURE  PACKAGING  AND  IS
CAPABLE OF PROVIDING INFORMATION THAT CAPTURES, AT A MINIMUM, ALL OF THE
FOLLOWING:
  (A) THE LICENSEE RECEIVING THE PRODUCT;
  (B) THE TRANSACTION DATE; AND
  (C)  THE  PRODUCER  FROM  WHICH  THE PRODUCT ORIGINATES, INCLUDING THE
ASSOCIATED UNIQUE IDENTIFIER.
  2. (A) THE BUREAU SHALL CREATE AN ELECTRONIC DATABASE  CONTAINING  THE
ELECTRONIC  SHIPPING  MANIFESTS  TO FACILITATE THE ADMINISTRATION OF THE
SEED TO SALE PROGRAM TRACKING, WHICH SHALL INCLUDE, BUT NOT  BE  LIMITED
TO, THE FOLLOWING INFORMATION:
  (B) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS SHIPPED;
  (C) THE ESTIMATED TIMES OF DEPARTURE AND ARRIVAL;
  (D) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS RECEIVED;
  (E) THE ACTUAL TIME OF DEPARTURE AND ARRIVAL;
  (F) A CATEGORIZATION OF THE PRODUCT; AND

S. 3040--A                         37

  (G)  THE LICENSE NUMBER AND UNIQUE IDENTIFIER ISSUED BY THE BUREAU FOR
ALL LICENSEES INVOLVED IN  THE  SHIPPING  PROCESS,  INCLUDING,  BUT  NOT
LIMITED TO, PRODUCER, PROCESSOR, RETAILER, AND DELIVERY LICENSEES.
  (3)  THE  DATABASE  SHALL  BE  DESIGNED TO FLAG IRREGULARITIES FOR THE
BUREAU TO INVESTIGATE.
  § 182. RENEWALS OF LICENSES AND PERMITS. 1. EACH LICENSE  AND  PERMIT,
ISSUED PURSUANT TO THIS ARTICLE MAY BE RENEWED UPON APPLICATION THEREFOR
BY  THE LICENSEE OR PERMITTEE AND THE PAYMENT OF THE ANNUAL FEE FOR SUCH
LICENSE OR PERMIT AS PRESCRIBED BY THIS ARTICLE. IN THE CASE OF APPLICA-
TIONS FOR RENEWALS, THE BUREAU MAY DISPENSE  WITH  THE  REQUIREMENTS  OF
SUCH  STATEMENTS  AS  IT DEEMS UNNECESSARY IN VIEW OF THOSE CONTAINED IN
THE APPLICATION MADE FOR THE ORIGINAL LICENSE  OR  PERMIT,  BUT  IN  ANY
EVENT  THE  SUBMISSION  OF PHOTOGRAPHS OF THE LICENSED PREMISES SHALL BE
DISPENSED WITH, PROVIDED THE APPLICANT FOR SUCH  RENEWAL  SHALL  FILE  A
STATEMENT  WITH  SUCH BUREAU TO THE EFFECT THAT THERE HAS BEEN NO ALTER-
ATION OF SUCH PREMISES SINCE THE  ORIGINAL  LICENSE  WAS  ISSUED.    THE
BUREAU  MAY  MAKE  SUCH  RULES AS MAY BE NECESSARY NOT INCONSISTENT WITH
THIS CHAPTER REGARDING APPLICATIONS FOR RENEWALS OF LICENSES AND PERMITS
AND THE TIME FOR MAKING THE SAME.   EACH APPLICANT MUST  SUBMIT  TO  THE
BUREAU  DOCUMENTATION OF THE RACIAL, ETHNIC, AND GENDER DIVERSITY OF THE
APPLICANT'S EMPLOYEES AND OWNERS PRIOR TO  A  LICENSE  OR  PERMIT  BEING
RENEWED.
  2.  THE  BUREAU  SHALL PROVIDE AN APPLICATION FOR RENEWAL OF A LICENSE
ISSUED UNDER THIS ARTICLE NOT LESS THAN SIXTY DAYS PRIOR TO THE  EXPIRA-
TION OF THE CURRENT LICENSE.
  §  183.  INFORMATION  TO  BE PROVIDED BY APPLICANTS.  1. THE FOLLOWING
SHALL BE THE INFORMATION REQUIRED ON AN APPLICATION  FOR  A  LICENSE  OR
PERMIT:
  (A) A STATEMENT OF IDENTITY AS FOLLOWS:
  (I) IF THE APPLICANT IS AN INDIVIDUAL, HIS OR HER NAME, DATE AND PLACE
OF  BIRTH,  CITIZENSHIP,  PERMANENT  HOME  ADDRESS, TELEPHONE NUMBER AND
SOCIAL SECURITY NUMBER, AS WELL AS ANY OTHER NAMES BY WHICH  HE  OR  SHE
HAS CONDUCTED A BUSINESS AT ANY TIME.
  (II)  IF  THE  APPLICANT  IS  A CORPORATION, THE CORPORATE NAME OF THE
APPLICANT, ITS PLACE OF INCORPORATION, ITS MAIN BUSINESS ADDRESS (AND IF
SUCH MAIN BUSINESS ADDRESS IS NOT WITHIN THE STATE, THE ADDRESS  OF  ITS
MAIN  PLACE  OF  BUSINESS WITHIN THE STATE), OTHER NAMES BY WHICH IT HAS
BEEN KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELEPHONE  NUMBER,
ITS  FEDERAL  EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES, AGES, CITI-
ZENSHIP, AND PERMANENT HOME ADDRESSES OF ITS DIRECTORS, OFFICERS AND ITS
SHAREHOLDERS (EXCEPT THAT IF THERE BE MORE THAN  TEN  SHAREHOLDERS  THEN
THOSE  SHAREHOLDERS  HOLDING  TEN  PERCENT  OR  MORE OF ANY CLASS OF ITS
SHARES).
  (III) IF THE APPLICANT IS A PARTNERSHIP, ITS NAME, ITS  MAIN  BUSINESS
ADDRESS  (AND IF SUCH MAIN BUSINESS ADDRESS IS NOT WITHIN THE STATE, THE
ADDRESS OF ITS MAIN PLACE OF BUSINESS WITHIN THE STATE), OTHER NAMES  BY
WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELE-
PHONE NUMBER, ITS FEDERAL EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES,
AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES OF EACH OF ITS PARTNERS.
  (B)  A  STATEMENT IDENTIFYING THE STREET AND NUMBER OF THE PREMISES TO
BE LICENSED, IF THE PREMISES HAS A STREET AND NUMBER, AND OTHERWISE SUCH
DESCRIPTION AS WILL REASONABLY INDICATE  THE  LOCALITY  THEREOF;  PHOTO-
GRAPHS, DRAWINGS OR OTHER ITEMS RELATED TO THE APPEARANCE OF THE INTERI-
OR OR EXTERIOR OF SUCH PREMISES, AND A FLOOR PLAN OF THE INTERIOR, SHALL
BE  REQUIRED.  THE  APPLICANT  SHALL ALSO STATE THE NATURE OF HIS OR HER
INTEREST IN THE PREMISES; AND THE NAME OF ANY OTHER PERSON INTERESTED AS

S. 3040--A                         38

A PARTNER, JOINT VENTURER, INVESTOR OR LENDER WITH THE APPLICANT  EITHER
IN THE PREMISES OR IN THE BUSINESS TO BE LICENSED.
  (C)  A DESCRIPTION OF ANY OTHER MARIHUANA LICENSE OR PERMIT UNDER THIS
ARTICLE, WITHIN THE PAST TEN YEARS, THE APPLICANT (INCLUDING  ANY  OFFI-
CERS,  DIRECTORS,  SHAREHOLDERS  OR  PARTNERS LISTED IN THE STATEMENT OF
IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION OR THE  SPOUSE  OF  ANY
SUCH PERSON) OR THE APPLICANT'S SPOUSE HELD OR APPLIED FOR.
  (D)  A  DESCRIPTION  OF THE APPLICANT'S PLAN TO ENSURE DIVERSITY AMONG
THE APPLICANT'S EMPLOYEES, INCLUDING STRATEGIES FOR ENSURING:
  (I) GENDER DIVERSITY;
  (II) RACIAL AND ETHNIC DIVERSITY THAT REFLECTS THE DEMOGRAPHICS WITHIN
THE MUNICIPALITY IN WHICH THE  APPLICANT'S  PROPOSED  BUSINESS  WILL  BE
LOCATED; AND
  (III) THAT PERSONS WITH PRIOR CRIMINAL CONVICTIONS ARE NOT BARRED FROM
EMPLOYMENT.
  (E)  A  STATEMENT  THAT  THE LOCATION AND LAYOUT OF THE PREMISES TO BE
LICENSED DOES NOT VIOLATE ANY REQUIREMENT OF THIS  CHAPTER  RELATING  TO
LOCATION AND LAYOUT OF LICENSED PREMISES, WITH A COPY OF THE CERTIFICATE
OF OCCUPANCY FOR THE PREMISES.
  (F)  A  STATEMENT THAT THE APPLICANT HAS CONTROL OF THE PREMISES TO BE
LICENSED BY OWNERSHIP OF A FEE INTEREST OR VIA A  LEASEHOLD,  MANAGEMENT
AGREEMENT,  OR  OTHER  AGREEMENT  GIVING  THE APPLICANT CONTROL OVER THE
PREMISES, WITH A TERM AT LEAST AS LONG AS  THE  LICENSE  FOR  WHICH  THE
APPLICATION  IS BEING MADE, OR BY A BINDING CONTRACT TO ACQUIRE THE SAME
AND A STATEMENT OF IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION  FOR
THE  LESSOR  OF  ANY  LEASEHOLD, MANAGER OF ANY MANAGEMENT AGREEMENT, OR
OTHER AGREEMENT GIVING THE APPLICANT CONTROL OVER THE PREMISES,  WITH  A
COPY  OF  THE  LEASE, CONTRACT, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT
GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES,
OR DEED EVIDENCING FEE OWNERSHIP OF THE PREMISES.
  (G) A FINANCIAL STATEMENT ADEQUATE TO SHOW ALL PERSONS  WHO,  DIRECTLY
OR INDIRECTLY HAVE AN ECONOMIC INTEREST IN THE ESTABLISHMENT OR ACQUISI-
TION  OF  THE  BUSINESS  FOR  WHICH THE LICENSE OR PERMIT APPLICATION IS
BEING MADE, TO IDENTIFY THE SOURCES OF  FUNDS  TO  BE  APPLIED  IN  SUCH
ESTABLISHMENT  OR  ACQUISITION, AND TO DESCRIBE THE TERMS AND CONDITIONS
GOVERNING SUCH ESTABLISHMENT WITH COPIES OF SUCH FINANCIAL DOCUMENTS  AS
THE BUREAU MAY REASONABLY REQUIRE.
  (H)  THE FINGERPRINTS OF THE APPLICANTS. FINGERPRINTS SUBMITTED BY THE
APPLICANTS SHALL BE TRANSMITTED TO  THE  DIVISION  OF  CRIMINAL  JUSTICE
SERVICES AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR
STATE AND NATIONAL CRIMINAL HISTORY RECORD CHECKS.
  2. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE SIGNED BY THE APPLICANT
(IF AN INDIVIDUAL), BY A MANAGING PARTNER (IF A LIMITED LIABILITY CORPO-
RATION),  BY  AN  OFFICER  (IF  A CORPORATION), OR BY ALL PARTNERS (IF A
PARTNERSHIP). EACH PERSON SIGNING SUCH APPLICATION SHALL  VERIFY  IT  OR
AFFIRM IT AS TRUE UNDER THE PENALTIES OF PERJURY.
  3. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE ACCOMPANIED BY A CHECK,
DRAFT  OR  OTHER FORMS OF PAYMENT AS THE BUREAU MAY REQUIRE OR AUTHORIZE
IN THE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE OR PERMIT.
  4. IF THERE BE ANY CHANGE, AFTER THE FILING OF THE APPLICATION OR  THE
GRANTING  OF  A LICENSE, IN ANY OF THE FACTS REQUIRED TO BE SET FORTH IN
SUCH APPLICATION, A SUPPLEMENTAL STATEMENT GIVING NOTICE OF SUCH CHANGE,
COST AND SOURCE OF MONEY INVOLVED IN THE CHANGE, DULY VERIFIED, SHALL BE
FILED WITH THE BUREAU WITHIN TEN DAYS AFTER SUCH CHANGE. FAILURE  TO  DO
SO  SHALL,  IF  WILLFUL  AND  DELIBERATE, BE CAUSE FOR REVOCATION OF THE
LICENSE.

S. 3040--A                         39

  5. IN GIVING ANY NOTICE, OR TAKING ANY ACTION IN REFERENCE TO A LICEN-
SEE OF A LICENSED PREMISES, THE BUREAU MAY  RELY  UPON  THE  INFORMATION
FURNISHED   IN  SUCH  APPLICATION  AND  IN  ANY  SUPPLEMENTAL  STATEMENT
CONNECTED THEREWITH, AND SUCH INFORMATION MAY BE PRESUMED TO BE CORRECT,
AND SHALL BE BINDING UPON A LICENSEE OR LICENSED PREMISES AS IF CORRECT.
ALL  INFORMATION REQUIRED TO BE FURNISHED IN SUCH APPLICATION OR SUPPLE-
MENTAL STATEMENTS SHALL BE DEEMED MATERIAL IN ANY PROSECUTION FOR PERJU-
RY, ANY PROCEEDING TO REVOKE, CANCEL OR SUSPEND ANY LICENSE, AND IN  THE
BUREAU'S DETERMINATION TO APPROVE OR DENY THE LICENSE.
  6.  THE BUREAU MAY IN ITS DISCRETION WAIVE THE SUBMISSION OF ANY CATE-
GORY OF INFORMATION DESCRIBED  IN  THIS  SECTION  FOR  ANY  CATEGORY  OF
LICENSE  OR PERMIT, PROVIDED THAT IT SHALL NOT BE PERMITTED TO WAIVE THE
REQUIREMENT FOR SUBMISSION OF ANY SUCH CATEGORY  OF  INFORMATION  SOLELY
FOR AN INDIVIDUAL APPLICANT OR APPLICANTS.
  §  184.  NOTIFICATION  TO MUNICIPALITIES. 1. NOT LESS THAN THIRTY DAYS
BEFORE FILING ANY OF THE  FOLLOWING  APPLICATIONS,  AN  APPLICANT  SHALL
NOTIFY  THE MUNICIPALITY IN WHICH THE PREMISES IS LOCATED OF SUCH APPLI-
CANT'S INTENT TO FILE SUCH AN APPLICATION FOR A:
  (A) MARIHUANA PRODUCER LICENSE;
  (B) MARIHUANA PROCESSOR LICENSE;
  (C) MARIHUANA MICROBUSINESS LICENSE;
  (D) MARIHUANA RETAILER LICENSE;
  (E) MARIHUANA RETAILER LICENSE FOR ON-SITE CONSUMPTION;
  (F) MARIHUANA DELIVERY LICENSE;
  (G) MARIHUANA TESTING LICENSE; AND/OR
  (H) ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
  2. SUCH NOTIFICATION SHALL BE MADE TO THE CLERK OF THE  VILLAGE,  TOWN
OR  CITY,  AS  THE  CASE  MAY  BE,  WHEREIN THE PREMISES IS LOCATED. FOR
PURPOSES OF THIS SECTION:
  (A) NOTIFICATION NEED ONLY BE GIVEN TO THE CLERK OF A VILLAGE WHEN THE
PREMISES IS LOCATED WITHIN THE BOUNDARIES OF THE VILLAGE; AND
  (B) IN THE CITY OF NEW YORK, THE COMMUNITY BOARD ESTABLISHED  PURSUANT
TO SECTION TWENTY-EIGHT HUNDRED OF THE NEW YORK CITY CHARTER WITH JURIS-
DICTION  OVER THE AREA IN WHICH THE PREMISES IS LOCATED SHALL BE CONSID-
ERED THE APPROPRIATE PUBLIC BODY TO WHICH NOTIFICATION SHALL BE GIVEN.
  3. FOR PURPOSES OF THIS SECTION, "SUBSTANTIAL CORPORATE CHANGE"  SHALL
MEAN:
  (A) FOR A CORPORATION, A CHANGE OF EIGHTY PERCENT OR MORE OF THE OFFI-
CERS  AND/OR DIRECTORS, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF STOCK
OF SUCH CORPORATION, OR AN EXISTING STOCKHOLDER OBTAINING EIGHTY PERCENT
OR MORE OF THE STOCK OF SUCH CORPORATION; AND
  (B) FOR A LIMITED LIABILITY COMPANY, A CHANGE  OF  EIGHTY  PERCENT  OR
MORE  OF  THE  MANAGING  MEMBERS OF THE COMPANY, OR A TRANSFER OF EIGHTY
PERCENT OR MORE OF OWNERSHIP INTEREST IN SAID COMPANY,  OR  AN  EXISTING
MEMBER OBTAINING A CUMULATIVE OF EIGHTY PERCENT OR MORE OF THE OWNERSHIP
INTEREST IN SAID COMPANY.
  4. SUCH NOTIFICATION SHALL BE MADE IN SUCH FORM AS SHALL BE PRESCRIBED
BY THE RULES OF THE BUREAU.
  5.  A  MUNICIPALITY MAY EXPRESS AN OPINION FOR OR AGAINST THE GRANTING
OF SUCH APPLICATION. ANY SUCH OPINION SHALL BE DEEMED PART OF THE RECORD
UPON WHICH THE BUREAU MAKES ITS  DETERMINATION  TO  GRANT  OR  DENY  THE
APPLICATION.
  6.  SUCH NOTIFICATION SHALL BE MADE BY: CERTIFIED MAIL, RETURN RECEIPT
REQUESTED; OVERNIGHT DELIVERY SERVICE WITH PROOF OF MAILING; OR PERSONAL
SERVICE UPON THE OFFICES OF THE CLERK OR COMMUNITY BOARD.

S. 3040--A                         40

  7. THE BUREAU SHALL REQUIRE SUCH NOTIFICATION TO BE ON A  STANDARDIZED
FORM  THAT  CAN  BE OBTAINED ON THE INTERNET OR FROM THE BUREAU AND SUCH
NOTIFICATION TO INCLUDE:
  (A)  THE TRADE NAME OR "DOING BUSINESS AS" NAME, IF ANY, OF THE ESTAB-
LISHMENT;
  (B) THE FULL NAME OF THE APPLICANT;
  (C) THE STREET ADDRESS  OF  THE  ESTABLISHMENT,  INCLUDING  THE  FLOOR
LOCATION OR ROOM NUMBER, IF APPLICABLE;
  (D)  THE  MAILING  ADDRESS OF THE ESTABLISHMENT, IF DIFFERENT THAN THE
STREET ADDRESS;
  (E) THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE ATTORNEY  OR  REPRE-
SENTATIVE OF THE APPLICANT, IF ANY;
  (F) A STATEMENT INDICATING WHETHER THE APPLICATION IS FOR:
  (I) A NEW ESTABLISHMENT;
  (II) A TRANSFER OF AN EXISTING LICENSED BUSINESS;
  (III) A RENEWAL OF AN EXISTING LICENSE; OR
  (IV) AN ALTERATION OF AN EXISTING LICENSED PREMISES;
  (G)  IF  THE  ESTABLISHMENT IS A TRANSFER OR PREVIOUSLY LICENSED PREM-
ISES, THE NAME OF THE OLD ESTABLISHMENT AND SUCH ESTABLISHMENT'S LICENSE
SERIAL NUMBER;
  (H) IN THE CASE OF A RENEWAL OR ALTERATION  APPLICATION,  THE  LICENSE
SERIAL NUMBER OF THE APPLICANT; AND
  (I) THE TYPE OF LICENSE.
  § 185. LICENSES, PUBLICATION, GENERAL PROVISIONS. 1. THE VARIOUS TYPES
OF  LICENSES  ISSUED  PURSUANT  TO  THIS ARTICLE SHALL BE DISTINCTIVE IN
COLOR AND DESIGN SO AS TO BE READILY DISTINGUISHABLE FROM EACH OTHER.
  2. NO LICENSE SHALL BE TRANSFERABLE OR ASSIGNABLE EXCEPT THAT NOTWITH-
STANDING ANY OTHER PROVISION OF LAW, THE LICENSE OF  A  SOLE  PROPRIETOR
CONVERTING  TO  CORPORATE  FORM,  WHERE SUCH PROPRIETOR BECOMES THE SOLE
STOCKHOLDER AND ONLY OFFICER AND DIRECTOR OF SUCH NEW  CORPORATION,  MAY
BE  TRANSFERRED  TO  THE SUBJECT CORPORATION IF ALL REQUIREMENTS OF THIS
CHAPTER REMAIN THE SAME WITH RESPECT TO SUCH LICENSE AS TRANSFERRED AND,
FURTHER, THE LICENSEE SHALL TRANSMIT TO THE BUREAU, WITHIN TEN  DAYS  OF
THE  TRANSFER  OF  LICENSE  ALLOWABLE  UNDER THIS SUBDIVISION, ON A FORM
PRESCRIBED BY THE BUREAU, NOTIFICATION OF THE TRANSFER OF SUCH LICENSE.
  3. NO LICENSE SHALL BE PLEDGED OR DEPOSITED AS COLLATERAL SECURITY FOR
ANY LOAN OR UPON ANY OTHER CONDITION; AND ANY SUCH  PLEDGE  OR  DEPOSIT,
AND ANY CONTRACT PROVIDING THEREFOR, SHALL BE VOID.
  4.  LICENSES  ISSUED  UNDER THIS ARTICLE SHALL CONTAIN, IN ADDITION TO
ANY FURTHER INFORMATION OR MATERIAL TO BE PRESCRIBED BY THE RULES OF THE
BUREAU, THE FOLLOWING INFORMATION: (A) NAME OF PERSON TO WHOM LICENSE IS
ISSUED; (B) KIND OF LICENSE AND WHAT KIND OF  TRAFFIC  IN  MARIHUANA  IS
THEREBY  PERMITTED;  (C) DESCRIPTION BY STREET AND NUMBER, OR OTHERWISE,
OF LICENSED PREMISES; AND (D) A STATEMENT IN SUBSTANCE THAT SUCH LICENSE
SHALL NOT BE DEEMED A PROPERTY OR VESTED  RIGHT,  AND  THAT  IT  MAY  BE
REVOKED AT ANY TIME PURSUANT TO LAW.
  5. THERE SHALL BE PRINTED AND FURNISHED BY THE BUREAU TO EACH LICENSEE
A STATEMENT OF THE CAUSES FOR WHICH LICENSES MAY BE REVOKED. SUCH STATE-
MENT  SHALL BE PREPARED BY THE BUREAU AND DELIVERED TO THE LICENSEE WITH
HIS OR HER LICENSE OR AS SOON THEREAFTER  AS  MAY  BE  PRACTICABLE.  ANY
AMENDMENTS  THERETO SHALL ALSO BE SENT BY THE BUREAU TO ALL LICENSEES AS
SOON AS MAY BE PRACTICABLE AFTER SUCH AMENDMENTS. FAILURE TO  SEND  SUCH
STATEMENTS  OR  CHANGES  THEREIN, OR FAILURE TO RECEIVE THE SAME, OR ANY
MISSTATEMENT OR ERROR CONTAINED IN SUCH STATEMENTS OR AMENDMENTS  SHALL,
HOWEVER,  NOT BE AN EXCUSE OR JUSTIFICATION FOR ANY VIOLATION OF LAW, OR
PREVENT, OR REMIT, OR DECREASE ANY PENALTY OR FORFEITURE THEREFOR.

S. 3040--A                         41

  6. BEFORE COMMENCING OR DOING ANY BUSINESS FOR THE TIME  FOR  WHICH  A
LICENSE  HAS  BEEN  ISSUED  SAID LICENSE SHALL BE ENCLOSED IN A SUITABLE
WOOD OR METAL FRAME HAVING A CLEAR GLASS SPACE AND A SUBSTANTIAL WOOD OR
METAL BACK SO THAT THE WHOLE OF SAID LICENSE MAY BE  SEEN  THEREIN,  AND
SHALL  BE POSTED UP AND AT ALL TIMES DISPLAYED IN A CONSPICUOUS PLACE IN
THE ROOM WHERE SUCH BUSINESS IS CARRIED ON, SO THAT ALL PERSONS VISITING
SUCH PLACE MAY READILY SEE THE SAME. IT SHALL BE UNLAWFUL FOR ANY PERSON
HOLDING A LICENSE TO POST SUCH LICENSE OR TO PERMIT SUCH LICENSE  TO  BE
POSTED  UPON PREMISES OTHER THAN THE PREMISES LICENSED, OR UPON PREMISES
WHERE TRAFFIC IN MARIHUANA IS BEING CARRIED ON BY ANY PERSON OTHER  THAN
THE  LICENSEE, OR KNOWINGLY TO DEFACE, DESTROY OR ALTER ANY SUCH LICENSE
IN ANY RESPECT. WHENEVER A LICENSE SHALL BE LOST  OR  DESTROYED  WITHOUT
FAULT  ON  THE PART OF THE LICENSEE OR HIS OR HER AGENTS OR EMPLOYEES, A
DUPLICATE LICENSE IN LIEU THEREOF MAY BE ISSUED BY  THE  BUREAU  IN  ITS
DISCRETION  AND  IN  ACCORDANCE  WITH SUCH RULES AND REGULATIONS AND THE
PAYMENT OF SUCH FEES, NOT EXCEEDING FIVE DOLLARS, AS IT MAY PRESCRIBE.
  § 186. REVOCATION OF LICENSES FOR CAUSE.  1.  ANY  LICENSE  OR  PERMIT
ISSUED  PURSUANT  TO  THIS  ARTICLE MAY BE REVOKED, CANCELLED, SUSPENDED
AND/OR SUBJECTED TO THE IMPOSITION OF A CIVIL  PENALTY  FOR  CAUSE,  AND
MUST BE REVOKED FOR THE FOLLOWING CAUSES:
  (A)  CONVICTION  OF  THE  LICENSEE,  PERMITTEE  OR HIS OR HER AGENT OR
EMPLOYEE FOR SELLING ANY ILLEGAL MARIHUANA OR MARIHUANA PRODUCTS ON  THE
PREMISES LICENSED.
  (B) FOR TRANSFERRING, ASSIGNING OR HYPOTHECATING A LICENSE OR PERMIT.
  2.  NOTWITHSTANDING  THE  ISSUANCE  OF  A  LICENSE OR PERMIT BY WAY OF
RENEWAL, THE BUREAU MAY REVOKE, CANCEL OR SUSPEND SUCH LICENSE OR PERMIT
AND/OR MAY IMPOSE A CIVIL PENALTY AGAINST ANY HOLDER OF SUCH LICENSE  OR
PERMIT,  AS  PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED NINETEEN
OF THIS CHAPTER, FOR CAUSES OR VIOLATIONS OCCURRING DURING  THE  LICENSE
PERIOD IMMEDIATELY PRECEDING THE ISSUANCE OF SUCH LICENSE OR PERMIT, AND
MAY  RECOVER, AS PROVIDED IN SECTION ONE HUNDRED TWELVE OF THIS CHAPTER,
THE PENAL SUM OF THE BOND ON FILE DURING SAID PERIOD.
  3. AS USED IN THIS SECTION, THE TERM "FOR CAUSE"  SHALL  ALSO  INCLUDE
THE  EXISTENCE  OF A SUSTAINED AND CONTINUING PATTERN OF NOISE, DISTURB-
ANCE, MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES, RELATED
TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF  ITS  PATRONS,  WHICH
ADVERSELY  AFFECTS  THE  HEALTH, WELFARE OR SAFETY OF THE INHABITANTS OF
THE AREA IN WHICH SUCH LICENSED PREMISES ARE LOCATED.
  4. THE EXISTENCE OF A  SUSTAINED  AND  CONTINUING  PATTERN  OF  NOISE,
DISTURBANCE,  MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES,
RELATED TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF ITS  PATRONS,
WILL BE PRESUMED UPON THE SIXTH INCIDENT REPORTED TO THE BUREAU BY A LAW
ENFORCEMENT  AGENCY OF NOISE OR DISTURBANCE OR MISCONDUCT OR DISORDER ON
OR ABOUT THE LICENSED PREMISES OR RELATED TO THE OPERATION OF THE  PREM-
ISES  OR  THE  CONDUCT  OF  ITS PATRONS, IN ANY SIXTY DAY PERIOD, ABSENT
CLEAR AND CONVINCING EVIDENCE OF EITHER FRAUDULENT INTENT ON THE PART OF
ANY COMPLAINANT OR A FACTUAL ERROR WITH RESPECT TO THE  CONTENT  OF  ANY
REPORT CONCERNING SUCH COMPLAINT RELIED UPON BY THE BUREAU.
  §  187.  PROCEDURE  FOR  REVOCATION OR CANCELLATION. 1. ANY LICENSE OR
PERMIT ISSUED BY THE BUREAU PURSUANT TO THIS  ARTICLE  MAY  BE  REVOKED,
CANCELLED  OR SUSPENDED AND/OR BE SUBJECTED TO THE IMPOSITION OF A MONE-
TARY PENALTY IN THE MANNER PRESCRIBED BY THIS SECTION.
  2. THE BUREAU MAY ON ITS OWN INITIATIVE OR ON COMPLAINT OF ANY  PERSON
INSTITUTE  PROCEEDINGS  TO  REVOKE, CANCEL OR SUSPEND ANY RETAIL LICENSE
AND MAY IMPOSE A CIVIL PENALTY AGAINST THE LICENSEE AFTER A  HEARING  AT
WHICH THE LICENSEE SHALL BE GIVEN AN OPPORTUNITY TO BE HEARD. SUCH HEAR-

S. 3040--A                         42

ING  SHALL  BE  HELD  IN  SUCH  MANNER  AND  UPON  SUCH NOTICE AS MAY BE
PRESCRIBED BY THE RULES OF THE BUREAU.
  3.  ALL  OTHER  LICENSES  OR  PERMITS ISSUED UNDER THIS ARTICLE MAY BE
REVOKED, CANCELLED, SUSPENDED AND/OR MADE SUBJECT TO THE IMPOSITION OF A
CIVIL PENALTY BY THE BUREAU AFTER A HEARING TO BE HELD IN THE MANNER  TO
BE DETERMINED BY THE RULES OF THE BUREAU.
  4.  (A) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY IN ALL CASES OF
LICENSEE OR PERMITTEE FAILURE AFTER  RECEIVING  APPROPRIATE  NOTICE,  TO
COMPLY  WITH  A  SUMMONS, SUBPOENA OR WARRANT RELATING TO A PATERNITY OR
CHILD SUPPORT PROCEEDING AND ARREARS IN  PAYMENT  OF  CHILD  SUPPORT  OR
COMBINED  CHILD  AND  SPOUSAL  SUPPORT REFERRED TO THE BUREAU BY A COURT
PURSUANT TO THE REQUIREMENTS OF SECTION TWO HUNDRED FORTY-FOUR-C OF  THE
DOMESTIC RELATIONS LAW OR PURSUANT TO SECTION FOUR HUNDRED FIFTY-EIGHT-B
OR FIVE HUNDRED FORTY-EIGHT-B OF THE FAMILY COURT ACT.
  (B)  UPON  RECEIPT  OF  AN  ORDER  FROM  THE COURT BASED ON ARREARS IN
PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL SUPPORT  PURSUANT
TO  ONE OF THE FOREGOING PROVISIONS OF LAW, THE BUREAU, IF IT FINDS SUCH
PERSON TO HAVE BEEN ISSUED A LICENSE OR PERMIT, SHALL WITHIN THIRTY DAYS
OF RECEIPT OF SUCH ORDER FROM THE COURT, PROVIDE NOTICE TO THE  LICENSEE
OR  PERMITTEE  OF,  AND INITIATE, A HEARING WHICH SHALL BE HELD AT LEAST
TWENTY DAYS AND NO MORE THAN THIRTY  DAYS  AFTER  THE  SENDING  OF  SUCH
NOTICE  TO  THE  LICENSEE OR PERMITTEE. THE HEARING SHALL BE SOLELY HELD
FOR THE PURPOSE OF DETERMINING WHETHER THERE EXISTS AS OF  THE  DATE  OF
THE  HEARING  PROOF  THAT  FULL PAYMENT OF ALL ARREARS OF SUPPORT ESTAB-
LISHED BY THE ORDER OF THE COURT TO BE DUE FROM THE LICENSEE OR  PERMIT-
TEE  HAVE  BEEN  PAID.  PROOF OF SUCH PAYMENT SHALL BE A CERTIFIED CHECK
SHOWING FULL PAYMENT OF ESTABLISHED ARREARS OR A NOTICE  ISSUED  BY  THE
COURT  OR THE SUPPORT COLLECTION UNIT, WHERE THE ORDER IS PAYABLE TO THE
SUPPORT COLLECTION UNIT DESIGNATED BY THE  APPROPRIATE  SOCIAL  SERVICES
DISTRICT.  SUCH  NOTICE  SHALL STATE THAT FULL PAYMENT OF ALL ARREARS OF
SUPPORT ESTABLISHED BY THE ORDER OF THE COURT TO BE DUE HAVE BEEN  PAID.
THE  LICENSEE  OR  PERMITTEE  SHALL BE GIVEN FULL OPPORTUNITY TO PRESENT
SUCH PROOF OF PAYMENT AT THE HEARING IN PERSON OR BY COUNSEL.  THE  ONLY
ISSUE  TO  BE  DETERMINED  BY  THE  BUREAU AS A RESULT OF THE HEARING IS
WHETHER THE ARREARS HAVE BEEN PAID. NO  EVIDENCE  WITH  RESPECT  TO  THE
APPROPRIATENESS OF THE COURT ORDER OR ABILITY OF THE RESPONDENT PARTY IN
ARREARS TO COMPLY WITH SUCH ORDER SHALL BE RECEIVED OR CONSIDERED BY THE
BUREAU.
  (C)  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF THIS ARTICLE OR OF
ANY OTHER PROVISION OF LAW TO THE CONTRARY, SUCH LICENSE OR PERMIT SHALL
BE SUSPENDED IF AT THE HEARING, PROVIDED FOR BY PARAGRAPH  (B)  OF  THIS
SUBDIVISION, THE LICENSEE OR PERMITTEE FAILS TO PRESENT PROOF OF PAYMENT
AS  REQUIRED  BY  SUCH  PARAGRAPH.   SUCH SUSPENSION SHALL NOT BE LIFTED
UNLESS THE COURT OR THE SUPPORT COLLECTION UNIT, WHERE THE  COURT  ORDER
IS  PAYABLE TO THE SUPPORT COLLECTION UNIT DESIGNATED BY THE APPROPRIATE
SOCIAL SERVICES DISTRICT, ISSUES NOTICE TO THE BUREAU THAT FULL  PAYMENT
OF  ALL  ARREARS  OF SUPPORT ESTABLISHED BY THE ORDER OF THE COURT TO BE
DUE HAVE BEEN PAID.
  (D) UPON RECEIPT OF AN ORDER FROM THE COURT BASED ON FAILURE TO COMPLY
WITH A SUMMONS, SUBPOENA, OR WARRANT RELATING TO A  PATERNITY  OR  CHILD
SUPPORT  PROCEEDING, THE BUREAU, IF IT FINDS SUCH PERSON HAS BEEN ISSUED
A LICENSE OR PERMIT, SHALL WITHIN THIRTY DAYS OF RECEIPT OF  SUCH  ORDER
FROM  THE COURT, PROVIDE NOTICE TO THE LICENSEE OR PERMITTEE THAT HIS OR
HER LICENSE SHALL BE SUSPENDED IN SIXTY DAYS UNLESS  THE  CONDITIONS  IN
PARAGRAPH (E) OF THIS SUBDIVISION ARE MET.

S. 3040--A                         43

  (E)  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF THIS ARTICLE OR OF
ANY OTHER PROVISION OF LAW TO THE CONTRARY, SUCH LICENSE OR PERMIT SHALL
BE SUSPENDED IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH (C) OF  THIS
SUBDIVISION UNLESS THE COURT TERMINATES ITS ORDER TO COMMENCE SUSPENSION
PROCEEDINGS. SUCH SUSPENSION SHALL NOT BE LIFTED UNLESS THE COURT ISSUES
AN  ORDER  TO  THE  BUREAU  TERMINATING ITS ORDER TO COMMENCE SUSPENSION
PROCEEDINGS.
  (F) THE BUREAU SHALL INFORM THE COURT OF ALL ACTIONS  TAKEN  HEREUNDER
AS REQUIRED BY LAW.
  (G)  THIS  SUBDIVISION APPLIES TO SUPPORT OBLIGATIONS PAID PURSUANT TO
ANY ORDER OF CHILD SUPPORT OR CHILD AND  SPOUSAL  SUPPORT  ISSUED  UNDER
PROVISIONS OF SECTION TWO HUNDRED THIRTY-SIX OR TWO HUNDRED FORTY OF THE
DOMESTIC  RELATIONS  LAW,  OR ARTICLE FOUR, FIVE OR FIVE-A OF THE FAMILY
COURT ACT.
  (H) NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS ARTICLE  OR  OF
ANY  OTHER  PROVISION  OF  LAW  TO  THE CONTRARY, THE PROVISIONS OF THIS
SUBDIVISION SHALL APPLY TO THE EXCLUSION OF ANY  OTHER  REQUIREMENTS  OF
THIS ARTICLE AND TO THE EXCLUSION OF ANY OTHER REQUIREMENT OF LAW TO THE
CONTRARY.
  5.  WHERE  A  LICENSEE IS CONVICTED OF TWO OR MORE QUALIFYING OFFENSES
WITHIN A FIVE YEAR PERIOD, THE BUREAU, UPON RECEIPT OF  NOTIFICATION  OF
SUCH  SECOND  OR  SUBSEQUENT  CONVICTION  PURSUANT  TO THE PROVISIONS OF
SUBDIVISION TWO OF SECTION ONE HUNDRED SIX-A OF THIS CHAPTER, SHALL,  IN
ADDITION  TO  ANY  OTHER  SANCTION  OR CIVIL OR CRIMINAL PENALTY IMPOSED
PURSUANT TO THIS CHAPTER, IMPOSE ON SUCH LICENSEE A CIVIL PENALTY NOT TO
EXCEED FIVE HUNDRED DOLLARS. FOR PURPOSES OF THIS SUBDIVISION, A  QUALI-
FYING  OFFENSE SHALL MEAN: (A) THE OFFENSE DEFINED IN SUBDIVISION ONE OF
SECTION SIXTY-FIVE OF THIS CHAPTER; OR (B) THE OFFENSE DEFINED IN  PARA-
GRAPH  (B)  OF  SUBDIVISION ONE OF SECTION SIXTY-FIVE-B OF THIS CHAPTER.
FOR PURPOSES OF THIS SUBDIVISION, A  CONVICTION  OF  A  LICENSEE  OR  AN
EMPLOYEE OR AGENT OF SUCH LICENSEE SHALL CONSTITUTE A CONVICTION OF SUCH
LICENSEE.
  §  188.  DECISIONS OF THE BUREAU OF MARIHUANA POLICY AND REVIEW BY THE
COURTS.  PROVISIONS OF SECTIONS ONE HUNDRED TWENTY, ONE HUNDRED  TWENTY-
ONE AND ONE HUNDRED TWENTY-FOUR OF THIS CHAPTER SHALL APPLY TO MARIHUANA
LICENSES ISSUED UNDER THIS ARTICLE.
  §  189.  MINORITY  AND  WOMEN-OWNED  BUSINESS  ENTERPRISES. THE BUREAU
SHALL:
  1. ACTIVELY PROMOTE RACIAL,  ETHNIC,  AND  GEOGRAPHIC  DIVERSITY  WHEN
LICENSING MARIHUANA GROWERS, PROCESSORS, AND RETAILERS;
  2. ENCOURAGE APPLICANTS WHO QUALIFY AS A MINORITY OR WOMEN-OWNED BUSI-
NESS  ENTERPRISE,  AS DEFINED IN SECTION THREE HUNDRED TEN OF THE EXECU-
TIVE LAW, TO APPLY FOR LICENSES;
  3. IN ACCORDANCE WITH THE OFFICIAL COMPILATION  OF  CODES,  RULES  AND
REGULATIONS  OF  THE  STATE  OF NEW YORK TITLE 5, DEPARTMENT OF ECONOMIC
DEVELOPMENT, CHAPTER XIV, DIVISION  OF  MINORITY  AND  WOMEN'S  BUSINESS
DEVELOPMENT,  PART 141, SUBMIT AN ANNUAL MASTER GOAL PLAN TO PROMOTE THE
INCLUSION OF: (A) MINORITY-OWNED BUSINESS ENTERPRISES;  (B)  WOMEN-OWNED
BUSINESS  ENTERPRISES;  AND (C) MINORITY AND WOMEN-OWNED BUSINESS ENTER-
PRISES WITH JUSTIFICATIONS FOR SUCH GOALS; AND
  4. ACTIVELY PROMOTE AND ENCOURAGE APPLICANTS THAT PROMOTE  AND  ENSURE
RACIAL,  ETHNIC,  AND GENDER DIVERSITY IN THEIR WORKFORCE WHEN LICENSING
MARIHUANA GROWERS, PROCESSORS, AND RETAILERS.
  § 190. DISPOSITION OF MONEYS RECEIVED FOR  LICENSE  FEES.  THE  BUREAU
SHALL  ESTABLISH  A  SCALE  OF APPLICATION, LICENSING, AND RENEWAL FEES,

S. 3040--A                         44

BASED UPON THE COST OF ENFORCING THIS ARTICLE AND THE SIZE OF THE  MARI-
HUANA BUSINESS BEING LICENSED, AS FOLLOWS:
  1. EACH LICENSING AUTHORITY SHALL CHARGE EACH LICENSEE A LICENSURE AND
RENEWAL  FEE,  AS  APPLICABLE.  THE  LICENSURE  AND RENEWAL FEE SHALL BE
CALCULATED TO COVER THE COSTS OF ADMINISTERING THIS ARTICLE. THE  LICEN-
SURE  FEE  MAY  VARY  DEPENDING  UPON  THE VARYING COSTS ASSOCIATED WITH
ADMINISTERING THE VARIOUS REGULATORY REQUIREMENTS  OF  THIS  ARTICLE  AS
THEY  RELATE  TO  THE NATURE AND SCOPE OF THE DIFFERENT LICENSURE ACTIV-
ITIES, BUT SHALL NOT EXCEED  THE  REASONABLE  REGULATORY  COSTS  TO  THE
LICENSING AUTHORITY.
  2. THE TOTAL FEES ASSESSED PURSUANT TO THIS ARTICLE SHALL BE SET AT AN
AMOUNT  THAT  WILL  FAIRLY AND PROPORTIONATELY GENERATE SUFFICIENT TOTAL
REVENUE TO FULLY COVER THE TOTAL COSTS OF ADMINISTERING THIS ARTICLE.
  3. ALL LICENSE FEES SHALL BE SET ON A  SCALED  BASIS  BY  THE  BUREAU,
DEPENDENT ON THE SIZE OF THE BUSINESS.
  4.  THE  BUREAU  SHALL  DEPOSIT  ALL  FEES  COLLECTED IN THE MARIHUANA
CONTROL FUND ESTABLISHED PURSUANT TO SECTION  EIGHTY-TWO  OF  THE  STATE
FINANCE LAW.
  §  191.  PERSONS  FORBIDDEN  TO TRAFFIC IN MARIHUANA. 1. THE FOLLOWING
PERSONS ARE FORBIDDEN TO TRAFFIC IN MARIHUANA:
  (A) A PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
  (B) A PERSON WHO IS NOT A CITIZEN OF THE UNITED  STATES  OR  AN  ALIEN
LAWFULLY ADMITTED FOR PERMANENT RESIDENCE IN THE UNITED STATES.
  (C) A CO-PARTNERSHIP OR A CORPORATION, UNLESS EACH MEMBER OF THE PART-
NERSHIP,  OR  EACH OF THE PRINCIPAL OFFICERS AND DIRECTORS OF THE CORPO-
RATION, IS A CITIZEN OF THE UNITED STATES OR AN ALIEN LAWFULLY  ADMITTED
FOR  PERMANENT  RESIDENCE IN THE UNITED STATES, NOT LESS THAN TWENTY-ONE
YEARS OF AGE, AND HAS NOT BEEN CONVICTED OF ANY FELONY  OR  ANY  OF  THE
MISDEMEANORS, SPECIFIED IN SECTION 230.20 OR 230.40 OF THE PENAL LAW, OR
IF  SO  CONVICTED HAS RECEIVED, SUBSEQUENT TO SUCH CONVICTION, AN EXECU-
TIVE PARDON THEREFOR REMOVING THIS  DISABILITY  A  CERTIFICATE  OF  GOOD
CONDUCT  GRANTED  BY  THE DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPER-
VISION, OR A CERTIFICATE OF RELIEF  FROM  DISABILITIES  GRANTED  BY  THE
DEPARTMENT  OF  CORRECTIONS AND COMMUNITY SUPERVISION OR A COURT OF THIS
STATE  PURSUANT  TO  THE  PROVISIONS  OF  ARTICLE  TWENTY-THREE  OF  THE
CORRECTION  LAW  TO  REMOVE THE DISABILITY UNDER THIS SECTION BECAUSE OF
SUCH CONVICTION; PROVIDED HOWEVER THAT  A  CORPORATION  WHICH  OTHERWISE
CONFORMS TO THE REQUIREMENTS OF THIS SECTION AND ARTICLE MAY BE LICENSED
IF  EACH  OF ITS PRINCIPAL OFFICERS AND MORE THAN ONE-HALF OF ITS DIREC-
TORS ARE CITIZENS OF THE UNITED STATES OR ALIENS LAWFULLY  ADMITTED  FOR
PERMANENT  RESIDENCE  IN  THE UNITED STATES; AND PROVIDED FURTHER THAT A
CORPORATION ORGANIZED UNDER THE NOT-FOR-PROFIT CORPORATION  LAW  OR  THE
EDUCATION  LAW  WHICH  OTHERWISE  CONFORMS  TO  THE REQUIREMENTS OF THIS
SECTION AND ARTICLE MAY BE LICENSED IF EACH OF  ITS  PRINCIPAL  OFFICERS
AND  MORE  THAN  ONE-HALF  OF ITS DIRECTORS ARE NOT LESS THAN TWENTY-ONE
YEARS OF AGE AND NONE OF ITS DIRECTORS ARE LESS THAN EIGHTEEN  YEARS  OF
AGE;  AND  PROVIDED  FURTHER THAT A CORPORATION ORGANIZED UNDER THE NOT-
FOR-PROFIT CORPORATION LAW OR THE EDUCATION LAW AND LOCATED ON THE PREM-
ISES OF A COLLEGE AS DEFINED BY SECTION TWO OF THE EDUCATION  LAW  WHICH
OTHERWISE  CONFORMS  TO THE REQUIREMENTS OF THIS SECTION AND ARTICLE MAY
BE LICENSED IF EACH OF ITS PRINCIPAL OFFICERS AND EACH OF ITS  DIRECTORS
ARE NOT LESS THAN EIGHTEEN YEARS OF AGE.
  (D)  (I)  A  PERSON  WHO  SHALL HAVE HAD ANY LICENSE ISSUED UNDER THIS
CHAPTER REVOKED FOR CAUSE, UNTIL THE EXPIRATION OF TWO  YEARS  FROM  THE
DATE OF SUCH REVOCATION.

S. 3040--A                         45

  (II)  A  PERSON NOT LICENSED UNDER THE PROVISIONS OF THIS CHAPTER, WHO
HAS BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, UNTIL THE  EXPIRATION
OF TWO YEARS FROM THE DATE OF SUCH CONVICTION.
  (E)  A  CORPORATION  OR CO-PARTNERSHIP, IF ANY OFFICER AND DIRECTOR OR
ANY PARTNER, WHILE NOT LICENSED UNDER THE PROVISIONS  OF  THIS  CHAPTER,
HAS  BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, OR HAS HAD A LICENSE
ISSUED UNDER THIS CHAPTER REVOKED FOR CAUSE, UNTIL THE EXPIRATION OF TWO
YEARS FROM THE DATE OF SUCH CONVICTION OR REVOCATION.
  2. AN APPLICANT SHALL NOT BE DENIED A STATE LICENSE UNDER THIS ARTICLE
IF THE DENIAL IS BASED SOLELY ON A CONVICTION FOR A VIOLATION OF ARTICLE
TWO HUNDRED TWENTY OR TWO HUNDRED TWENTY-ONE OF THE PENAL LAW.
  § 192. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS. WITHIN  THREE
DAYS  AFTER  A LICENSE SHALL HAVE BEEN REVOKED PURSUANT TO THIS ARTICLE,
NOTICE THEREOF SHALL BE GIVEN TO THE LICENSEE  BY  MAILING  SUCH  NOTICE
ADDRESSED  TO  HIM AT THE PREMISES LICENSED. NOTICE SHALL ALSO BE MAILED
TO THE OWNER OF THE PREMISES LICENSED. THE HOLDER OF SUCH LICENSE  SHALL
THEREUPON  SURRENDER  SAME  TO  THE  BUREAU.  THE MAILING THEREOF BY THE
LICENSEE TO THE BUREAU BY REGISTERED MAIL OR INSURED PARCEL  POST  SHALL
BE  DEEMED  SUFFICIENT  COMPLIANCE  WITH THIS SECTION. THE BUREAU, IMME-
DIATELY UPON GIVING NOTICE OF REVOCATION, SHALL SERVE A  WRITTEN  NOTICE
THEREOF UPON THE COMMISSIONER OF POLICE, CHIEF OF POLICE OR CHIEF POLICE
OFFICER  OF  THE  CITY,  OR  VILLAGE IN WHICH THE PREMISES FOR WHICH THE
REVOKED LICENSE WAS ISSUED IS SITUATED, OR UPON THE SHERIFF OF THE COUN-
TY OR A CONSTABLE OF THE TOWN IN CASE THE LICENSE WAS ISSUED  FOR  PREM-
ISES SITUATED IN A TOWN AND NOT WITHIN ANY CITY OR VILLAGE.  SUCH NOTICE
SHALL  INCLUDE  A  STATEMENT OF THE NUMBER OF SUCH LICENSE, THE NAME AND
PLACE OF RESIDENCE OF THE HOLDER THEREOF, THE LOCATION OF  THE  LICENSED
PREMISES,  AND  THE  DATE  WHEN  SUCH  LICENSE WAS REVOKED. IN CASE SUCH
LICENSE BE NOT FORTHWITH SURRENDERED, THE BUREAU SHALL ISSUE  A  WRITTEN
DEMAND  FOR THE SURRENDER OF SUCH LICENSE AND DELIVER SAID DEMAND TO THE
SHERIFF OF THE COUNTY IN WHICH THE LICENSED PREMISES ARE LOCATED, OR  TO
ANY  REPRESENTATIVE  OF  THE  BUREAU, AND SAID SHERIFF OR REPRESENTATIVE
SHALL IMMEDIATELY TAKE POSSESSION OF SUCH LICENSE AND RETURN THE SAME TO
THE BUREAU.
  § 193. AUTHORITY TO PROMULGATE RULES AND REGULATIONS. THE BUREAU SHALL
PROMULGATE AND IMPLEMENT ALL RULES AND REGULATIONS AS IT DEEMS NECESSARY
TO CARRY OUT THE PURPOSE AND INTENT OF THIS ARTICLE.
  § 194. PROTECTIONS FOR THE USE OF MARIHUANA. INDIVIDUALS AND  LICENSED
ENTITIES  SHALL NOT BE SUBJECT TO ARREST, PROSECUTION, OR PENALTY IN ANY
MANNER, OR DENIED ANY RIGHT OR PRIVILEGE, INCLUDING BUT NOT  LIMITED  TO
CIVIL  LIABILITY OR DISCIPLINARY ACTION BY A BUSINESS OR OCCUPATIONAL OR
PROFESSIONAL LICENSING BOARD OR BUREAU,  SOLELY  FOR  CONDUCT  PERMITTED
UNDER  THIS  ARTICLE. FOR THE AVOIDANCE OF DOUBT, THE APPELLATE DIVISION
OF THE SUPREME COURT OF THE STATE OF NEW YORK, AND ANY  DISCIPLINARY  OR
CHARACTER  AND  FITNESS  COMMITTEES ESTABLISHED BY THEM ARE OCCUPATIONAL
AND PROFESSIONAL LICENSING BOARDS WITHIN THE MEANING  OF  THIS  SECTION.
STATE  OR  LOCAL  LAW  ENFORCEMENT  AGENCIES SHALL NOT COOPERATE WITH OR
PROVIDE ASSISTANCE TO THE GOVERNMENT OF THE UNITED STATES OR ANY  AGENCY
THEREOF  IN  ENFORCING THE CONTROLLED SUBSTANCE ACT, 21, U.S.C. S8012 ET
SEQ., SOLELY FOR ACTIONS CONSISTENT WITH THIS CHAPTER, EXCEPT AS  PURSU-
ANT TO A VALID COURT ORDER.
  §  195. DISCRIMINATION PROTECTIONS FOR THE USE OF MARIHUANA OR MEDICAL
MARIHUANA. 1. NO SCHOOL OR LANDLORD MAY REFUSE TO ENROLL OR LEASE TO AND
MAY NOT OTHERWISE PENALIZE A PERSON SOLELY  FOR  CONDUCT  ALLOWED  UNDER
SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW, EXCEPT AS EXEMPTED:

S. 3040--A                         46

  (A)  IF  FAILING TO DO SO WOULD CAUSE THE SCHOOL OR LANDLORD TO LOSE A
MONETARY OR LICENSING RELATED BENEFIT UNDER FEDERAL LAW OR REGULATIONS;
  (B) IF THE INSTITUTION HAS ADOPTED A CODE OF CONDUCT PROHIBITING MARI-
HUANA USE ON THE BASIS OF RELIGIOUS BELIEF;
  (C)  IF  A PROPERTY IS REGISTERED WITH THE NEW YORK SMOKE-FREE HOUSING
REGISTRY, IT IS NOT REQUIRED TO PERMIT THE SMOKING OF MARIHUANA PRODUCTS
ON ITS PREMISES.
  2. FOR THE PURPOSES OF MEDICAL CARE, INCLUDING  ORGAN  TRANSPLANTS,  A
REGISTERED QUALIFYING PATIENT'S AUTHORIZED USE OF MEDICAL MARIHUANA MUST
BE  CONSIDERED  THE  EQUIVALENT OF THE USE OF ANY OTHER MEDICATION UNDER
THE DIRECTION OF A PRACTITIONER AND DOES NOT CONSTITUTE THE  USE  OF  AN
ILLICIT  SUBSTANCE  OR  OTHERWISE  DISQUALIFY  A  REGISTERED  QUALIFYING
PATIENT FROM MEDICAL CARE.
  3. NO PERSON MAY BE DENIED CUSTODY OF OR VISITATION OR PARENTING  TIME
WITH  A MINOR, AND THERE IS NO PRESUMPTION OF NEGLECT OR CHILD ENDANGER-
MENT FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
LAW, UNLESS THE PERSON'S BEHAVIOR CREATES AN UNREASONABLE DANGER TO  THE
SAFETY OF THE MINOR AS ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE. FOR
THE  PURPOSES  OF  THIS  SECTION, AN "UNREASONABLE DANGER" DETERMINATION
CANNOT BE BASED SOLELY ON WHETHER, WHEN, AND HOW  OFTEN  A  PERSON  USES
MARIHUANA WITHOUT SEPARATE EVIDENCE OF HARM.
  § 196. EMPLOYMENT PROTECTIONS. 1.  UNLESS AN EMPLOYER ESTABLISHES BY A
PREPONDERANCE  OF  THE  EVIDENCE  THAT  THE  LAWFUL USE OF MARIHUANA HAS
IMPAIRED THE EMPLOYEE'S ABILITY TO PERFORM THE EMPLOYEE'S JOB  RESPONSI-
BILITIES,  IT  SHALL  BE  UNLAWFUL TO TAKE ANY ADVERSE EMPLOYMENT ACTION
AGAINST AN EMPLOYEE BASED ON EITHER:
  (A) CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A  OF  THE  PENAL
LAW; OR
  (B)  THE  EMPLOYEE'S  POSITIVE  DRUG  TEST FOR MARIHUANA COMPONENTS OR
METABOLITES.
  2. FOR THE PURPOSES OF THIS  SECTION,  AN  EMPLOYER  MAY  CONSIDER  AN
EMPLOYEE'S  ABILITY TO PERFORM THE EMPLOYEE'S JOB RESPONSIBILITIES TO BE
IMPAIRED WHEN THE EMPLOYEE MANIFESTS SPECIFIC ARTICULABLE SYMPTOMS WHILE
WORKING THAT DECREASE OR LESSEN THE EMPLOYEE'S PERFORMANCE OF THE DUTIES
OR TASKS OF THE EMPLOYEE'S JOB POSITION.
  3. NOTHING IN THIS SECTION SHALL RESTRICT  AN  EMPLOYER'S  ABILITY  TO
PROHIBIT  OR TAKE ADVERSE EMPLOYMENT ACTION FOR THE POSSESSION OR USE OF
INTOXICATING SUBSTANCES DURING WORK HOURS, OR  REQUIRE  AN  EMPLOYER  TO
COMMIT  ANY  ACT  THAT  WOULD  CAUSE  THE EMPLOYER TO BE IN VIOLATION OF
FEDERAL LAW, OR THAT WOULD RESULT IN THE LOSS OF A FEDERAL  CONTRACT  OR
FEDERAL FUNDING.
  4. AS USED IN THIS SECTION, "ADVERSE EMPLOYMENT ACTION" MEANS REFUSING
TO  HIRE  OR EMPLOY, BARRING OR DISCHARGING FROM EMPLOYMENT, REQUIRING A
PERSON TO RETIRE FROM EMPLOYMENT, OR DISCRIMINATING AGAINST  IN  COMPEN-
SATION OR IN TERMS, CONDITIONS, OR PRIVILEGES OF EMPLOYMENT.
  §  197.  PROTECTIONS  FOR  PERSONS  UNDER  STATE SUPERVISION. A PERSON
CURRENTLY  UNDER  PAROLE,  PROBATION  OR  OTHER  STATE  SUPERVISION,  OR
RELEASED  ON BAIL AWAITING TRIAL MAY NOT BE PUNISHED OR OTHERWISE PENAL-
IZED FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
LAW.
  § 198. PROFESSIONAL  AND  MEDICAL  RECORD  KEEPING.  ANY  PROFESSIONAL
PROVIDING SERVICES IN CONNECTION WITH A LICENSED OR POTENTIALLY LICENSED
BUSINESS UNDER THIS CHAPTER, OR IN CONNECTION WITH OTHER CONDUCT PERMIT-
TED  UNDER  THIS CHAPTER, AND ANY MEDICAL PROFESSIONAL PROVIDING MEDICAL
CARE TO A PATIENT, MAY AGREE WITH THEIR CLIENT OR PATIENT TO MAINTAIN NO
RECORD, OR ANY REDUCED LEVEL OF RECORD  KEEPING  THAT  PROFESSIONAL  AND

S. 3040--A                         47

CLIENT  OR  PATIENT  MAY  AGREE.  IN CASE OF SUCH AGREEMENT, THE PROFES-
SIONAL'S ONLY OBLIGATION SHALL BE TO KEEP SUCH RECORDS AS AGREED, AND TO
KEEP A RECORD OF THE AGREEMENT.  SUCH REDUCED RECORD KEEPING IS  CONDUCT
PERMITTED  UNDER  THIS  CHAPTER,  AND  SHALL  ATTRACT THE PROTECTIONS OF
SECTION ONE HUNDRED NINETY-FOUR OF THIS ARTICLE.
  § 32. The state finance law is amended by adding two new  sections  82
and 82-a to read as follows:
  §  82.  MARIHUANA  CONTROL FUND. 1. THERE IS HEREBY ESTABLISHED IN THE
JOINT CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE  STATE
COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE "MARIHUANA CONTROL FUND".
  2.  THE  MARIHUANA CONTROL FUND SHALL CONSIST OF THE REVENUES REQUIRED
TO BE DEPOSITED PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED NINETY
OF THE ALCOHOLIC BEVERAGE CONTROL LAW, AND ALL OTHER MONEYS CREDITED  OR
TRANSFERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW.
  3. MONEYS IN THE FUND USED SOLELY FOR THE PURPOSE OF ADMINISTERING THE
REGULATORY  REQUIREMENTS  OF  ARTICLE  ELEVEN  OF THE ALCOHOLIC BEVERAGE
CONTROL LAW. MONEYS IN THE FUND SHALL NOT BE CO-MINGLED WITH  ANY  OTHER
STATE FUNDS.
  4.  MONEYS  SHALL  BE PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE CHAIRMAN OF THE
BUREAU OF MARIHUANA POLICY.
  § 82-A. MARIHUANA REVENUE FUND. 1. THERE IS HEREBY ESTABLISHED IN  THE
JOINT  CUSTODY OF THE COMMISSIONER OF TAXATION AND FINANCE ANT THE STATE
COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE "MARIHUANA REVENUE FUND".
  2. THE MARIHUANA REVENUE FUND SHALL CONSIST OF THE  REVENUES  REQUIRED
TO BE DEPOSITED PURSUANT TO THE PROVISIONS OF SECTION FOUR HUNDRED FIFTY
OF THE TAX LAW AND ALL OTHER MONEYS CREDITED OR TRANSFERRED THERETO FROM
ANY  OTHER  FUND  OR SOURCE PURSUANT TO LAW, LESS ANY PAYMENT OF REFUNDS
DUE TO TAX PAYERS.
  3. MONEYS IN TH FUND USED SOLELY FOR THE PURPOSE OF ADMINISTERING  THE
REGULATORY  REQUIREMENTS  OF  ARTICLE  ELEVEN  OF THE ALCOHOLIC BEVERAGE
CONTROL LAW. MONEYS IN THE FUND SHALL NOT BE CO-MINGLED WITH  ANY  OTHER
STATE FUNDS.
  4.  MONEYS  SHALL  BE PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSIONER OF
TAXATION AND FINANCE.
  § 33. The tax law is amended by adding a new article 18-A to  read  as
follows:
                              ARTICLE 18-A
                    PROVISIONS RELATING TO MARIHUANA
SECTION 446.   DEFINITIONS.
        447.   TAXES IMPOSED.
        447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN.
        447-B.  ORDINARY  AND  NECESSARY  EXPENSES  DEDUCTIBLE  FROM NET
                 INCOME.
        448.   SURETY BOND.
        449.   COLLECTION OF TAX.
        450.   REVENUE ALLOCATION.
  § 446. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "COMMERCIAL MARKET ACTIVITY" INCLUDES THE CULTIVATION, POSSESSION,
MANUFACTURE,  DISTRIBUTION,  PROCESSING,  STORING,  LABORATORY  TESTING,
LABELING,  TRANSPORTATION,  DELIVERY  OR SALE OF MARIHUANA AND MARIHUANA
PRODUCTS, AS PROVIDED FOR IN ARTICLE ELEVEN OF  THE  ALCOHOLIC  BEVERAGE
CONTROL LAW, BUT SHALL NOT INCLUDE MEDICAL MARIHUANA ACTIVITIES PROVIDED
FOR IN TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.

S. 3040--A                         48

  2.    "CONCENTRATED  CANNABIS"  MEANS (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
NOL,  OR  ITS  ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1
TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1  (6)  MONOTERPENE  NUMBERING
SYSTEM.
  3.  "MARIHUANA"  MEANS  ALL  PARTS OF THE PLANT OF THE GENUS CANNABIS,
WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM  ANY
PART  OF  THE  PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT  DOES  NOT
INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
(EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES
NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L.,  WHETHER  GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  4.  "MARIHUANA  CONSUMER"  MEANS  A  PERSON TWENTY-ONE YEARS OF AGE OR
OLDER WHO PURCHASED MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE  BY
PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
  5.  "MARIHUANA  FLOWERS" SHALL MEAN THE DRIED FLOWERS OF THE MARIHUANA
PLANT.
  6. "MARIHUANA LEAVES" SHALL MEAN ALL  PARTS  OF  THE  MARIHUANA  PLANT
OTHER THAN MARIHUANA FLOWERS THAT ARE SOLD OR CONSUMED.
  7.  "MARIHUANA  PROCESSOR"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
MARIHUANA POLICY TO PURCHASE MARIHUANA AND  CONCENTRATED  CANNABIS  FROM
MARIHUANA  PRODUCERS,  TO  PROCESS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS, PACKAGE AND  LABEL  MARIHUANA,  CONCENTRATED
CANNABIS  AND MARIHUANA-INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND
SELL MARIHUANA, CONCENTRATED CANNABIS AND MARIHUANA INFUSED PRODUCTS  AT
WHOLESALE TO MARIHUANA RETAILERS.
  8. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY THE BUREAU OF MARI-
HUANA  POLICY  TO  PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED
CANNABIS AT WHOLESALE TO MARIHUANA PROCESSORS, MARIHUANA  RETAILERS,  OR
OTHER MARIHUANA PRODUCERS, BUT NOT TO CONSUMERS.
  9.  "MARIHUANA  PRODUCTS"  MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  10. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN  MARIHUA-
NA,  MARIHUANA  EXTRACTS,  OR CONCENTRATED CANNABIS AND ARE INTENDED FOR
HUMAN USE OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE  PRODUCTS,
OINTMENTS, AND TINCTURES.
  11. "IMMATURE MARIHUANA PLANT" MEANS A MARIHUANA PLANT WITH NO OBSERV-
ABLE FLOWERS OR BUDS.
  12.  "MARIHUANA  RETAILER"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
MARIHUANA POLICY TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND MARI-
HUANA-INFUSED PRODUCTS FROM MARIHUANA PRODUCERS AND MARIHUANA PROCESSORS
AND SELL MARIHUANA, MARIHUANA-INFUSED PRODUCTS, AND CONCENTRATED  CANNA-
BIS IN A RETAIL OUTLET.
  13.  "MARIHUANA  RETAILER  FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
LICENSED BY THE  BUREAU  OF  MARIHUANA  POLICY  TO  PURCHASE  MARIHUANA,
CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED PRODUCTS FROM MARIHUANA
PRODUCERS, MARIHUANA RETAILERS AND MARIHUANA PROCESSORS AND  SELL  MARI-
HUANA  PRODUCTS  FOR  A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN
THE FACILITY.

S. 3040--A                         49

  § 447. TAXES IMPOSED.  1. (A) THERE IS HEREBY  LEVIED  AND  IMPOSED  A
CULTIVATION  TAX UPON ALL HARVESTED MARIHUANA THAT ENTERS THE COMMERCIAL
MARKET UPON ALL PERSONS REQUIRED TO BE LICENSED TO  CULTIVATE  MARIHUANA
PURSUANT  TO  ARTICLE  ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW. THE
TAX SHALL BE DUE AFTER THE MARIHUANA IS HARVESTED.
  (I)  MARIHUANA FLOWERS SHALL BE TAXED AT A RATE OF SIXTY-TWO CENTS PER
DRY-WEIGHT GRAM.
  (II) MARIHUANA LEAVES SHALL BE TAXED AT A RATE OF TEN CENTS  PER  DRY-
WEIGHT GRAM.
  (B) THERE IS HEREBY LEVIED AND IMPOSED A NURSERY TAX UPON ALL IMMATURE
PLANTS  THAT ENTER THE COMMERCIAL MARKET UPON ALL PERSONS REQUIRED TO BE
LICENSED TO PRODUCE IMMATURE PLANTS PURSUANT TO ARTICLE  ELEVEN  OF  THE
ALCOHOLIC BEVERAGE CONTROL LAW. IMMATURE PLANTS SHALL BE TAXED AT A RATE
OF ONE DOLLAR AND THIRTY-FIVE CENTS EACH.
  (C)  THERE  IS  HEREBY LEVIED AND IMPOSED A TAX UPON MARIHUANA SOLD OR
OTHERWISE TRANSFERRED BY A MARIHUANA PRODUCER TO A  MARIHUANA  PROCESSOR
OR MARIHUANA RETAILER AT A RATE EQUIVALENT TO THE RATE ESTABLISHED UNDER
ARTICLE TWENTY-EIGHT OF THIS CHAPTER.
  (D) A MARIHUANA EXCISE TAX IS HEREBY LEVIED AND IMPOSED UPON CUSTOMERS
OF  NONMEDICAL  MARIHUANA  OR NONMEDICAL MARIHUANA PRODUCTS SOLD IN THIS
STATE AT THE RATE FIFTEEN PERCENT OF ANY SALE BY A RETAILER,  MICROBUSI-
NESS, OR OTHER PERSON REQUIRED TO BE LICENSED PURSUANT TO ARTICLE ELEVEN
OF  THE  ALCOHOLIC  BEVERAGE CONTROL LAW TO SELL MARIHUANA AND MARIHUANA
PRODUCTS DIRECTLY TO A CUSTOMER.
  (E) THE DEPARTMENT SHALL ESTABLISH PROCEDURES FOR  THE  COLLECTION  AL
ALL TAXES LEVIED.
  (F)  NO  TAX  ESTABLISHED BY THIS SECTION SHALL BE LEVIED UPON MEDICAL
MARIHUANA INTENDED FOR SALE TO A CERTIFIED PATIENT OR  DESIGNATED  CARE-
GIVER  PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC
HEALTH LAW.
  2. FOR REPORTING PERIODS BEGINNING LATER THAN ONE YEAR  FOLLOWING  THE
EFFECTIVE  DATE  OF THIS ARTICLE, THE RATES OF TAX UNDER SUBDIVISION ONE
OF THIS SECTION SHALL BE ADJUSTED FOR EACH  BIENNIUM  ACCORDING  TO  THE
COST-OF-LIVING ADJUSTMENT FOR THE CALENDAR YEAR.
  3.  THE  DEPARTMENT  SHALL REGULARLY REVIEW THE RATES OF THE TAX UNDER
SUBDIVISION ONE OF THIS SECTION AND MAKE RECOMMENDATIONS TO THE LEGISLA-
TURE REGARDING APPROPRIATE ADJUSTMENTS TO THE RATES  THAT  WILL  FURTHER
THE PURPOSES OF:
  (A) MAXIMIZING NET REVENUE;
  (B) MINIMIZING THE ILLEGAL MARIHUANA INDUSTRY; AND
  (C) DISCOURAGING THE USE OF MARIHUANA BY MINORS UNDER TWENTY-ONE YEARS
OF AGE.
  §  447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN. ANY CITY OR TOWN
IN THIS STATE, ACTING THROUGH ITS  LOCAL  LEGISLATIVE  BODY,  IS  HEREBY
AUTHORIZED  AND  EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN ANY
SUCH CITY OR TOWN A SALES TAX ON MARIHUANA RETAILERS AT  A  RATE  OF  NO
MORE  THAN TWO PERCENT OF THE SALE PRICE OF MARIHUANA PRODUCTS SOLD TO A
MARIHUANA CONSUMER. ANY TAXES IMPOSED PURSUANT TO THE AUTHORITY OF  THIS
SECTION  SHALL  BE  ADMINISTERED  AND COLLECTED BY THE DEPARTMENT IN THE
SAME MANNER AS THE TAXES IMPOSED UNDER SECTION FOUR  HUNDRED  FORTY-NINE
OF  THIS  ARTICLE.  THE  COMMISSIONER  IS  HEREBY EMPOWERED TO MAKE SUCH
PROVISIONS AS IT  DEEMS  NECESSARY  FOR  THE  JOINT  ADMINISTRATION  AND
COLLECTION  OF  THE STATE AND LOCAL TAXES IMPOSED AND AUTHORIZED BY THIS
ARTICLE.
  § 447-B. ORDINARY AND NECESSARY EXPENSES DEDUCTIBLE FROM  NET  INCOME.
NOTWITHSTANDING  ANY  FEDERAL  TAX LAW TO THE CONTRARY, IN COMPUTING NET

S. 3040--A                         50

INCOME FOR BUSINESSES EXEMPTED FROM CRIMINAL  PENALTIES  UNDER  ARTICLES
TWO HUNDRED TWENTY AND TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AND ARTI-
CLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW, THERE SHALL BE ALLOWED
AS  A DEDUCTION FROM STATE TAXES ALL THE ORDINARY AND NECESSARY EXPENSES
PAID OR INCURRED DURING THE TAXABLE YEAR IN CARRYING  ON  ANY  TRADE  OR
BUSINESS,  INCLUDING  BUT NOT LIMITED TO, REASONABLE ALLOWANCE FOR SALA-
RIES OR OTHER COMPENSATION FOR PERSONAL SERVICES ACTUALLY RENDERED.
  § 448. SURETY BOND. MARIHUANA  RETAILER  APPLICANTS  ARE  REQUIRED  TO
SUBMIT  A  SURETY  BOND  WITH  THE DEPARTMENT EQUAL TO TWO MONTHS OF THE
CULTIVATION FACILITY'S ANTICIPATED  RETAIL  MARIHUANA  EXCISE  TAX.  THE
SURETY BOND MUST BE ISSUED BY A COMPANY AUTHORIZED TO DO BUSINESS IN THE
STATE.  PROOF  OF  SURETY  BOND  IS REQUIRED FOR APPROVAL OF APPLICANT'S
RETAIL LICENSE.
  § 449. COLLECTION OF TAX. THIS TAX SHALL BE COLLECTED BY  THE  COMMIS-
SIONER WHO SHALL ESTABLISH A PROCEDURE FOR THE COLLECTION OF THIS TAX.
  §  450. REVENUE ALLOCATION. 1. BEFORE ANY FUNDS ARE DISBURSED PURSUANT
TO SUBDIVISIONS THREE, FOUR, FIVE, AND SIX OF  THIS  SECTION  THE  STATE
COMPTROLLER SHALL DISBURSE FROM THE MARIHUANA REVENUE FUND TO THE APPRO-
PRIATE ACCOUNT, WITHOUT REGARD TO FISCAL YEAR, THE FOLLOWING:
  (A)  REASONABLE COSTS INCURRED BY THE DEPARTMENT FOR ADMINISTERING AND
COLLECTING THE TAXES IMPOSED BY THIS ARTICLE;  PROVIDED,  HOWEVER,  THAT
SUCH COSTS SHALL NOT EXCEED FOUR PERCENT OF TAX REVENUES RECEIVED; AND
  (B)  REASONABLE  COSTS  INCURRED BY THE BUREAU OF MARIHUANA POLICY FOR
IMPLEMENTING, ADMINISTERING, AND ENFORCING THE MARIHUANA REGULATION  AND
TAXATION  ACT  TO  THE EXTENT THOSE COSTS ARE NOT REIMBURSED PURSUANT TO
SECTION ONE HUNDRED NINETY OF THE ALCOHOLIC BEVERAGE  CONTROL  LAW.  THE
PROVISIONS  OF THIS PARAGRAPH SHALL REMAIN OPERATIVE THROUGH FISCAL YEAR
TWO THOUSAND TWENTY-TWO - TWO THOUSAND TWENTY-THREE.
  2. FOR THE PURPOSES OF DATA COLLECTION AND REPORTING, THE COMMISSIONER
SHALL NEXT DISBURSE THE SUM OF  SEVEN  HUNDRED  FIFTY  THOUSAND  DOLLARS
ANNUALLY BEGINNING WITH FISCAL YEAR TWO THOUSAND NINETEEN - TWO THOUSAND
TWENTY  UNTIL FISCAL YEAR TWO THOUSAND TWENTY-NINE - TWO THOUSAND THIRTY
TO:
  (A) THE BUREAU OF MARIHUANA POLICY TO TRACK AND REPORT DATA RELATED TO
THE  LICENSING  OF  MARIHUANA  BUSINESSES,  INCLUDING   THE   GEOGRAPHIC
LOCATION,  STRUCTURE, AND FUNCTION OF LICENSED MARIHUANA BUSINESSES, AND
DEMOGRAPHIC DATA, INCLUDING RACE,  ETHNICITY,  AND  GENDER,  OF  LICENSE
HOLDERS.  THE  BUREAU  OF  MARIHUANA POLICY SHALL PUBLISH REPORTS ON ITS
FINDINGS ANNUALLY AND SHALL MAKE THE REPORTS AVAILABLE TO THE PUBLIC.
  (B) THE DEPARTMENT OF CRIMINAL JUSTICE SERVICES TO  TRACK  AND  REPORT
DATA  RELATED  TO  ANY  INFRACTIONS, VIOLATIONS, OR CRIMINAL CONVICTIONS
THAT OCCUR UNDER ANY OF THE REMAINING MARIHUANA STATUTES. THE DEPARTMENT
OF CRIMINAL JUSTICE SERVICES SHALL PUBLISH REPORTS ON ITS FINDINGS ANNU-
ALLY AND SHALL MAKE THE REPORTS AVAILABLE TO THE PUBLIC.
  3. THE COMMISSIONER SHALL NEXT DISBURSE THE SUM OF ONE MILLION DOLLARS
TO THE STATE UNIVERSITY OF NEW YORK ANNUALLY BEGINNING WITH FISCAL  YEAR
TWO THOUSAND NINETEEN - TWO THOUSAND TWENTY UNTIL FISCAL YEAR TWO  THOU-
SAND  TWENTY-NINE  -  TWO  THOUSAND  THIRTY TO RESEARCH AND EVALUATE THE
IMPLEMENTATION AND EFFECT OF THE MARIHUANA REGULATION AND TAXATION  ACT,
AND  SHALL,  IF APPROPRIATE, MAKE RECOMMENDATIONS TO THE LEGISLATURE AND
GOVERNOR REGARDING POSSIBLE AMENDMENTS TO THE MARIHUANA  REGULATION  AND
TAXATION  ACT.  THE  RECIPIENTS  OF THESE FUNDS SHALL PUBLISH REPORTS ON
THEIR FINDINGS AT A MINIMUM OF  EVERY  TWO  YEARS  AND  SHALL  MAKE  THE
REPORTS  AVAILABLE  TO  THE PUBLIC. THE RESEARCH FUNDED PURSUANT TO THIS
SUBDIVISION SHALL INCLUDE BUT NOT NECESSARILY BE LIMITED TO:

S. 3040--A                         51

  (A) IMPACTS ON PUBLIC HEALTH, INCLUDING HEALTH COSTS  ASSOCIATED  WITH
MARIHUANA  USE,  AS  WELL AS WHETHER MARIHUANA USE IS ASSOCIATED WITH AN
INCREASE OR DECREASE IN USE OF ALCOHOL OR OTHER DRUGS;
  (B)  THE  IMPACT OF TREATMENT FOR CANNABIS USE DISORDER AND THE EFFEC-
TIVENESS OF DIFFERENT TREATMENT PROGRAMS;
  (C) PUBLIC SAFETY ISSUES RELATED TO MARIHUANA USE, INCLUDING  STUDYING
THE  EFFECTIVENESS OF THE PACKAGING AND LABELING REQUIREMENTS AND ADVER-
TISING AND MARKETING RESTRICTIONS CONTAINED IN THE MARIHUANA  REGULATION
AND  TAXATION  ACT AT PREVENTING UNDERAGE ACCESS TO AND USE OF MARIHUANA
AND MARIHUANA PRODUCTS, AND STUDYING THE  HEALTH-RELATED  EFFECTS  AMONG
USERS OF VARYING POTENCY LEVELS OF MARIHUANA AND MARIHUANA PRODUCTS;
  (D)  MARIHUANA  USE RATES, MALADAPTIVE USE RATES FOR ADULTS AND YOUTH,
AND DIAGNOSIS RATES OF MARIHUANA-RELATED SUBSTANCE USE DISORDERS;
  (E) MARIHUANA MARKET PRICES, ILLICIT MARKET PRICES, TAX STRUCTURES AND
RATES, INCLUDING AN EVALUATION OF HOW TO BEST  TAX  MARIHUANA  BASED  ON
POTENCY,  AND  THE  STRUCTURE  AND  FUNCTION OF LICENSED MARIHUANA BUSI-
NESSES;
  (F) WHETHER ADDITIONAL PROTECTIONS  ARE  NEEDED  TO  PREVENT  UNLAWFUL
MONOPOLIES OR ANTI-COMPETITIVE BEHAVIOR FROM OCCURRING IN THE NONMEDICAL
MARIHUANA  INDUSTRY AND, IF SO, RECOMMENDATIONS AS TO THE MOST EFFECTIVE
MEASURES FOR PREVENTING SUCH BEHAVIOR;
  (G) THE ECONOMIC IMPACTS IN THE PRIVATE AND PUBLIC SECTORS,  INCLUDING
BUT  NOT  NECESSARILY LIMITED TO, JOB CREATION, WORKPLACE SAFETY, REVEN-
UES, TAXES GENERATED FOR STATE AND LOCAL BUDGETS, AND  CRIMINAL  JUSTICE
IMPACTS,  INCLUDING,  BUT  NOT  NECESSARILY  LIMITED  TO, IMPACTS ON LAW
ENFORCEMENT AND PUBLIC RESOURCES, SHORT AND LONG  TERM  CONSEQUENCES  OF
INVOLVEMENT  IN THE CRIMINAL JUSTICE SYSTEM, AND STATE AND LOCAL GOVERN-
MENT AGENCY ADMINISTRATIVE COSTS AND REVENUE;
  (H) WHETHER THE  REGULATORY  AGENCIES  TASKED  WITH  IMPLEMENTING  AND
ENFORCING  THE  MARIHUANA  REGULATION  AND  TAXATION  ACT  ARE  DOING SO
CONSISTENT WITH THE PURPOSES OF THE MARIHUANA  REGULATION  AND  TAXATION
ACT, AND WHETHER DIFFERENT AGENCIES MIGHT DO SO MORE EFFECTIVELY; AND
  (I) ENVIRONMENTAL ISSUES RELATED TO MARIHUANA PRODUCTION AND THE CRIM-
INAL PROHIBITION OF MARIHUANA PRODUCTION.
  4. THE COMMISSIONER SHALL NEXT DIVIDE FIFTEEN PERCENT OF THE REMAINING
REVENUE COLLECTED IN THE MARIHUANA REVENUE FUND EQUALLY BETWEEN:
  (A)  THE  DIVISION  OF  CRIMINAL JUSTICE SERVICES FOR RE-ENTRY SUPPORT
SERVICES FOR INDIVIDUALS RELEASED FROM PRISON  AFTER  SERVING  TIME  FOR
DRUG RELATED OFFENSES;
  (B)  THE  OFFICE  OF  ALCOHOLISM AND SUBSTANCE ABUSE SERVICES FOR DRUG
ABUSE PREVENTION AND TREATMENT PROGRAMS; AND
  (C) THE DEPARTMENT  OF  LABOR  FOR  APPRENTICESHIP  AND  JOB  TRAINING
PROGRAMS  TARGETING,  WITH PREFERENCE GIVEN TO PROGRAMS TARGETING CENSUS
TRACTS WITH A POVERTY RATE OF AT LEAST TWENTY PERCENT OR AN UNEMPLOYMENT
RATE OF AT LEAST ONE AND ONE QUARTER TIMES THE NEW YORK STATE  UNEMPLOY-
MENT RATE.
  5. THE COMMISSIONER SHALL, AFTER DISBURSING FUNDS PURSUANT TO SUBDIVI-
SIONS  ONE THROUGH FOUR OF THIS SECTION, DISBURSE FUNDS DEPOSITED IN THE
MARIHUANA REVENUE FUND DURING  THE  PRIOR  FISCAL  YEAR  INTO  SUB-TRUST
ACCOUNTS, WHICH ARE HEREBY CREATED AS FOLLOWS:
  (A)  TWENTY-FIVE PERCENT SHALL BE PROVIDED TO THE EDUCATION DEPARTMENT
WHICH SHALL DISTRIBUTE THESE FUNDS IN ACCORDANCE WITH  SUBDIVISIONS  TWO
AND FOUR OF SECTION NINETY-TWO-C OF THE STATE FINANCE LAW;
  (B)  TWENTY-FIVE  PERCENT SHALL BE DEPOSITED IN THE DRUG TREATMENT AND
PUBLIC EDUCATION FUND, AND DISBURSED BY THE COMPTROLLER FOR THE  FOLLOW-
ING PURPOSES:

S. 3040--A                         52

  (I)  TO  DEVELOP AND IMPLEMENT A YOUTH-FOCUSED PUBLIC HEALTH EDUCATION
AND PREVENTION CAMPAIGN, INCLUDING SCHOOL-BASED PREVENTION, EARLY INTER-
VENTION, AND HEALTH CARE SERVICES AND PROGRAMS TO  REDUCE  THE  RISK  OF
MARIHUANA AND OTHER SUBSTANCE USE AND ABUSE BY SCHOOL-AGED CHILDREN;
  (II)  TO  DEVELOP  AND  IMPLEMENT  A  STATEWIDE PUBLIC HEALTH CAMPAIGN
FOCUSED ON THE HEALTH EFFECTS OF MARIHUANA AND LEGAL USE,  INCLUDING  AN
ONGOING  EDUCATION  AND  PREVENTION  CAMPAIGN  THAT EDUCATES THE GENERAL
PUBLIC, INCLUDING PARENTS, CONSUMERS AND RETAILERS, ON THE LEGAL USE  OF
MARIHUANA,  THE IMPORTANCE OF PREVENTING YOUTH ACCESS, THE IMPORTANCE OF
SAFE STORAGE AND PREVENTING SECONDHAND MARIHUANA SMOKE EXPOSURE,  INFOR-
MATION  FOR  PREGNANT OR BREASTFEEDING WOMEN, AND THE OVERCONSUMPTION OF
EDIBLES;
  (III) TO PROVIDE SUBSTANCE USE DISORDER TREATMENT PROGRAMS  FOR  YOUTH
AND  ADULTS, WITH AN EMPHASIS ON PROGRAMS THAT ARE CULTURALLY AND GENDER
COMPETENT, TRAUMA-INFORMED, EVIDENCE-BASED AND PROVIDE  A  CONTINUUM  OF
CARE  THAT  INCLUDES SCREENING AND ASSESSMENT (SUBSTANCE USE DISORDER AS
WELL AS MENTAL HEALTH), EARLY  INTERVENTION,  ACTIVE  TREATMENT,  FAMILY
INVOLVEMENT,  CASE MANAGEMENT, OVERDOSE PREVENTION, PREVENTION OF COMMU-
NICABLE DISEASES  RELATED  TO  SUBSTANCE  USE,  RELAPSE  MANAGEMENT  FOR
SUBSTANCE  USE AND OTHER CO-OCCURRING BEHAVIORAL HEALTH DISORDERS, VOCA-
TIONAL SERVICES, LITERACY SERVICES, PARENTING  CLASSES,  FAMILY  THERAPY
AND  COUNSELING  SERVICES,  MEDICATION-ASSISTED  TREATMENTS, PSYCHIATRIC
MEDICATION AND PSYCHOTHERAPY;
  (IV) TO EVALUATE THE PROGRAMS BEING FUNDED TO DETERMINE  THEIR  EFFEC-
TIVENESS.
  (C) FIFTY PERCENT SHALL BE DEPOSITED IN THE COMMUNITY GRANTS REINVEST-
MENT  FUND BY THE COMMISSIONER, AND DISBURSED BY THE COMPTROLLER FOR THE
ESTABLISHMENT OF A COMMUNITY  GRANTS  REINVESTMENT  PROGRAM  THAT  SHALL
ADMINISTER  THE  MONIES TO QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZA-
TIONS FOR THE PURPOSE OF REINVESTING IN  COMMUNITIES  DISPROPORTIONATELY
AFFECTED  BY PAST FEDERAL AND STATE DRUG POLICIES.  THE GRANTS FROM THIS
PROGRAM SHALL BE USED TO SUPPORT JOB PLACEMENT, MENTAL HEALTH TREATMENT,
SUBSTANCE USE DISORDER  TREATMENT,  SYSTEM  NAVIGATION  SERVICES,  LEGAL
SERVICES TO ADDRESS BARRIERS TO REENTY, AND LINKAGES TO MEDICAL CARE AND
WOMEN'S  HEALTH  SERVICES. THE PROGRAMS MAY INCLUDE, BUT ARE NOT LIMITED
TO, THE FOLLOWING COMPONENTS:
  (I) THE COMMUNITY GRANTS REINVESTMENT PROGRAM SHALL PERIODICALLY EVAL-
UATE THE PROGRAMS IT IS FUNDING TO DETERMINE THE  EFFECTIVENESS  OF  THE
PROGRAMS.
  (II)  THE  COMMUNITY GRANTS REINVESTMENT PROGRAM SHALL BE GOVERNED AND
ADMINISTERED BY AN EXECUTIVE STEERING COMMITTEE OF THIRTEEN MEMBERS THAT
INCLUDES REPRESENTATIVES OF THE OFFICE OF CHILDREN AND FAMILY  SERVICES,
THE  DEPARTMENT  OF  LABOR AND THE DEPARTMENT OF HEALTH APPOINTED BY THE
GOVERNOR AND A REPRESENTATIVE OF THE DEPARTMENT OF  EDUCATION  APPOINTED
BY  THE BOARD OF REGENTS. IN ADDITION, THE MAJORITY AND MINORITY LEADERS
OF THE SENATE AND ASSEMBLY SHALL EACH APPOINT ONE MEMBER TO THE STEERING
COMMITTEE, THE COMPTROLLER SHALL APPOINT THREE ADDITIONAL  MEMBERS,  AND
THE  ATTORNEY GENERAL SHALL APPOINT TWO ADDITIONAL MEMBERS FROM RELEVANT
LOCAL  GOVERNMENT  ENTITIES  AND  COMMUNITY-BASED  ORGANIZATIONS.  EVERY
EFFORT  SHOULD BE MADE TO ENSURE A BALANCED AND DIVERSE COMMITTEE, WHICH
SHALL HAVE EXPERTISE IN JOB PLACEMENT, HOMELESSNESS AND HOUSING,  BEHAV-
IORAL HEALTH AND SUBSTANCE ABUSE TREATMENT, AND EFFECTIVE REHABILITATIVE
TREATMENT FOR ADULTS AND JUVENILES, AND SHALL INCLUDE REPRESENTATIVES OF
ORGANIZATIONS  SERVING  COMMUNITIES  IMPACTED  BY PAST FEDERAL AND STATE
DRUG POLICIES.

S. 3040--A                         53

  (III) THE COMMITTEE SHALL MAKE RECOMMENDATIONS REGARDING  THE  DESIGN,
EFFICACY, AND VIABILITY OF PROPOSALS.
  (IV)  THE COMMITTEE SHALL PRIORITIZE PROPOSALS THAT PROVIDE ANY OF THE
FOLLOWING:
  (A) COMMUNITY-BASED JOB SKILLS SERVICES.
  (B) COMMUNITY-BASED JOB PLACEMENT SERVICES.
  (C) ADULT EDUCATION SERVICES.
  (D) OTHER COMMUNITY-BASED SUPPORTIVE SERVICES.
  6. THE COMMUNITY GRANTS REINVESTMENT PROGRAM SHALL NOT MAKE ANY GRANTS
TO MUNICIPAL GOVERNMENTS WHICH HAVE BANNED  THE  CULTIVATION,  INCLUDING
PERSONAL  CULTIVATION  OF  MARIHUANA UNDER SECTION 221.05-A OF THE PENAL
LAW, OR RETAIL SALE OF MARIHUANA OR MARIHUANA PRODUCTS PURSUANT TO ARTI-
CLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  § 34. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
the laws of 1977 and as relettered by chapter 192 of the laws  of  1980,
are amended to read as follows:
  (i)  prior to the filing of an accusatory instrument in a local crimi-
nal court against such person, the prosecutor elects  not  to  prosecute
such  person.  In such event, the prosecutor shall serve a certification
of such disposition upon the division of criminal justice  services  and
upon  the appropriate police department or law enforcement agency which,
upon receipt thereof, shall comply with  the  provisions  of  paragraphs
(a),  (b),  (c)  and  (d) of subdivision one of this section in the same
manner as is required thereunder with respect to an  order  of  a  court
entered pursuant to said subdivision one[.]; OR
  (j)  following the arrest of such person, the arresting police agency,
prior to the filing of an accusatory  instrument  in  a  local  criminal
court  but subsequent to the forwarding of a copy of the fingerprints of
such person to the division of criminal justice services, elects not  to
proceed  further. In such event, the head of the arresting police agency
shall serve a certification of such disposition  upon  the  division  of
criminal justice services which, upon receipt thereof, shall comply with
the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
this  section  in the same manner as is required thereunder with respect
to an order of a court entered pursuant to said subdivision one[.]; OR
  (k) (i) The accusatory instrument alleged a violation of  article  two
hundred  twenty  or section 240.36 of the penal law, prior to the taking
effect of article two hundred twenty-one of the penal  law,  or  BY  THE
CONVICTION  OF  SUCH PERSON OF a violation of [article two hundred twen-
ty-one] SECTION 221.45 of the penal law ON OR AFTER THE  EFFECTIVE  DATE
OF  THE  CHAPTER  OF THE LAWS OF 2017 THAT AMENDED THIS SUBDIVISION OR A
VIOLATION OF SECTIONS 221.05, 221.10, 221.15,  221.20,  221.25,  221.30,
221.35,  OR  221.40  OF THE PENAL LAW PRIOR TO THE EFFECTIVE DATE OF THE
CHAPTER OF THE LAWS OF 2017 THAT AMENDED THIS SUBDIVISION; AND (ii)  the
sole  controlled  substance involved is [marijuana; (iii) the conviction
was only for a violation or violations; and (iv) at  least  three  years
have  passed  since the offense occurred] MARIHUANA.  NO DEFENDANT SHALL
BE REQUIRED OR PERMITTED TO WAIVE ELIGIBILITY FOR  SEALING  PURSUANT  TO
THIS  PARAGRAPH  AS  PART OF A PLEA OF GUILTY, SENTENCE OR ANY AGREEMENT
RELATED TO A CONVICTION FOR A VIOLATION OF SECTION 221.45 OF  THE  PENAL
LAW. ANY SUCH WAIVER SHALL BE DEEMED VOID AND WHOLLY UNENFORCEABLE.
  §  35.  Subdivision 4 of section 160.50 of the criminal procedure law,
as amended by chapter 905 of the laws of 1977 and renumbered by  chapter
142 of the laws of 1991, is amended to read as follows:

S. 3040--A                         54

  4.  A person in whose favor a criminal action or proceeding was termi-
nated, as defined in [paragraph] PARAGRAPHS (a) through (h), (K) OR  (L)
of  subdivision [two] THREE of this section, prior to the effective date
of [this section, may upon motion apply  to  the  court  in  which  such
termination  occurred,  upon  not  less  than  twenty days notice to the
district attorney, for an order granting to such person the  relief  set
forth in subdivision one of this section, and such order shall be grant-
ed  unless the district attorney demonstrates to the satisfaction of the
court that the interests of justice require otherwise. A person in whose
favor a criminal action or proceeding  was  terminated,  as  defined  in
paragraph  (i)  or  (j) of subdivision two of this section, prior to the
effective date of this section, may apply to the appropriate  prosecutor
or  police agency for a certification as described in said paragraph (i)
or (j) granting to such person the relief set forth  therein,  and  such
certification shall be granted by such prosecutor or police agency.] THE
CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT AMENDED THIS SUBDIVI-
SION, AND WHOSE RECORDS HAVE NOT BEEN SEALED PURSUANT TO SUBDIVISION ONE
OF  THIS  SECTION, MAY APPLY TO HAVE THE RECORDS OF SUCH CRIMINAL ACTION
OR PROCEEDING SEALED AT THE CLERK'S OFFICE FOR THE COURT  IN  WHICH  THE
CRIMINAL ACTION OR PROCEEDING WAS TERMINATED. APPLICATION MAY BE MADE BY
THE  PERSON  OR  HIS  OR HER ATTORNEY. UPON A DETERMINATION BY THE CLERK
THAT THE ACTION OR PROCEEDING WAS TERMINATED IN THE  PERSON'S  FAVOR  AS
DEFINED  IN  SUBDIVISION  THREE  OF THIS SECTION, THE CLERK OF THE COURT
SHALL IMMEDIATELY NOTIFY THE COMMISSIONER OF THE  DIVISION  OF  CRIMINAL
JUSTICE SERVICES AND THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND
OTHER  LAW  ENFORCEMENT  AGENCIES THAT THE ACTION HAS BEEN TERMINATED IN
FAVOR OF THE ACCUSED AND THAT THE RECORD OF SUCH ACTION  OR  PROCEEDINGS
SHALL  BE  SEALED.  UPON RECEIPT OF NOTIFICATION OF SUCH TERMINATION AND
SEALING, ALL RECORDS RELATING TO THE CRIMINAL ACTION SHALL BE SEALED, AS
REQUIRED UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, AND ALL
PHOTOGRAPHS, PHOTOGRAPHIC PLATES OR PROOFS, PALMPRINTS AND  FINGERPRINTS
SHALL BE DESTROYED OR RETURNED AS SPECIFIED IN PARAGRAPHS (A) AND (B) OF
SUBDIVISION ONE OF THIS SECTION. THIS PARAGRAPH SHALL NOT APPLY TO CASES
IN  WHICH  THE  COURT DECLINED TO SEAL FOR REASONS STATED ON THE RECORD,
PURSUANT TO SUBDIVISION ONE OF THIS SECTION.  WHEN  AN  APPLICANT  UNDER
THIS  SUBDIVISION  PRESENTS  TO THE COURT CLERK FINGERPRINT RECORDS FROM
NEW YORK STATE DIVISION OF CRIMINAL JUSTICE SERVICES OR A COURT DISPOSI-
TION WHICH INDICATE THAT A CRIMINAL ACTION  OR  PROCEEDING  AGAINST  THE
APPLICANT  WAS  DISMISSED  BUT  THE  SUPPORTING  COURT RECORDS CANNOT BE
LOCATED, HAVE BEEN DESTROYED, OR DO NOT INDICATE WHETHER  THE  DISMISSAL
WAS  A  "TERMINATION IN FAVOR OF" THE ACCUSED AS THAT TERM IS DEFINED IN
SUBDIVISION THREE OF THIS SECTION, THE CLERK OF THE COURT  WHEREIN  SUCH
CRIMINAL  ACTION  OR  PROCEEDING  WAS TERMINATED SHALL PROCEED AS IF THE
MATTER HAD BEEN SO TERMINATED.
  § 36. Subdivisions 1 and 2 of section 170.56 of the criminal procedure
law, subdivision 1 as amended by chapter 360 of the  laws  of  1977  and
subdivision  2  as added by chapter 1042 of the laws of 1971, is amended
to read as follows:
  1.  Upon or after arraignment in a local criminal court upon an infor-
mation, a prosecutor's information or a misdemeanor complaint, where the
sole remaining count or counts  charge  a  violation  or  violations  of
section  [221.05,  221.10, 221.15, 221.35 or 221.40] 221.45 of the penal
law, OR UPON SUMMONS FOR A NUISANCE OFFENSE UNDER  SECTION  SIXTY-FIVE-C
OF  THE ALCOHOLIC BEVERAGE CONTROL LAW and before the entry of a plea of
guilty thereto or commencement of   a trial  thereof,  the  court,  upon
motion  of  a defendant, may order that all proceedings be suspended and

S. 3040--A                         55

the action adjourned in contemplation of dismissal, or  upon  a  finding
that  adjournment  would not be necessary or appropriate and the setting
forth in the record of the reasons for such  findings,  may  dismiss  in
furtherance  of  justice  the  accusatory instrument; provided, however,
that the court may  not  order  such  adjournment  in  contemplation  of
dismissal or dismiss the accusatory instrument if: (a) the defendant has
previously  been granted such adjournment in contemplation of dismissal,
or (b) the defendant has previously been granted a dismissal under  this
section,  or  (c)  the  defendant  has  previously been convicted of any
offense involving controlled substances, or (d) the defendant has previ-
ously been convicted of a crime  and  the  district  attorney  does  not
consent  or (e) the defendant has previously been adjudicated a youthful
offender on the basis of any act or acts involving controlled substances
and the district attorney does not consent.  NOTWITHSTANDING THE LIMITA-
TIONS SET FORTH IN THIS  SUBDIVISION,  THE  COURT  MAY  ORDER  THAT  ALL
PROCEEDINGS  BE  SUSPENDED  AND THE ACTION ADJOURNED IN CONTEMPLATION OF
DISMISSAL  BASED  UPON  A  FINDING  OF  EXCEPTIONAL  CIRCUMSTANCES.  FOR
PURPOSES  OF  THIS  SUBDIVISION,  EXCEPTIONAL  CIRCUMSTANCES EXIST WHEN,
REGARDLESS OF THE ULTIMATE DISPOSITION OF THE CASE, THE ENTRY OF A  PLEA
OF GUILTY IS LIKELY TO RESULT IN SEVERE COLLATERAL CONSEQUENCES, INCLUD-
ING,  BUT NOT LIMITED TO, THOSE THAT COULD LEAVE A NONCITIZEN INADMISSI-
BLE OR REMOVABLE FROM THE UNITED STATES.
  2.  Upon ordering the action adjourned in contemplation of  dismissal,
the  court  must  set and specify such conditions for the adjournment as
may be appropriate, and such conditions may include placing the  defend-
ant  under the supervision of any public or private agency.  At any time
prior to dismissal the court may modify  the  conditions  or  extend  or
reduce  the  term  of  the  adjournment, except that the total period of
adjournment shall not exceed [twelve] SIX months.  Upon violation of any
condition fixed by the court, the court may revoke its order and restore
the case to the calendar and the prosecution thereupon must proceed.  If
the case is not so restored to the calendar during the period  fixed  by
the court, the accusatory instrument is, at the expiration of such peri-
od, deemed to have been dismissed in the furtherance of justice.
  §  37.  Section  210.46  of  the criminal procedure law, as amended by
chapter 360 of the laws of 1977, is amended to read as follows:
§ 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
        in a superior court.
  Upon or after arraignment in a superior court upon an indictment where
the  sole  remaining count or counts charge a violation or violations of
section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
law  and before the entry of a plea of guilty thereto or commencement of
a  trial  thereof, the court, upon motion of a defendant, may order that
all proceedings be suspended and the action adjourned  in  contemplation
of dismissal or may dismiss the indictment in furtherance of justice, in
accordance with the provisions of section 170.56 of this chapter.
  § 38. Paragraphs (h) and (i) of subdivision 1 of section 440.10 of the
criminal  procedure  law, paragraph (h) as amended by chapter 332 of the
laws of 2010 and paragraph (i) as amended by chapter 368 of the laws  of
2015, are amended and a new paragraph (j) is added to read as follows:
  (h) The judgment was obtained in violation of a right of the defendant
under the constitution of this state or of the United States; [or]
  (i)  The judgment is a conviction where the arresting charge was under
section 240.37 (loitering for the purpose of engaging in a  prostitution
offense, provided that the defendant was not alleged to be loitering for
the  purpose of patronizing a person for prostitution or promoting pros-

S. 3040--A                         56

titution) or 230.00 (prostitution) or 230.03 (prostitution in  a  school
zone) of the penal law, and the defendant's participation in the offense
was  a  result  of having been a victim of sex trafficking under section
230.34  of  the penal law, labor trafficking under section 135.35 of the
penal law, aggravated labor trafficking  under  section  135.37  of  the
penal  law,  compelling  prostitution  under section 230.33 of the penal
law, or trafficking in persons under the Trafficking Victims  Protection
Act (United States Code, title 22, chapter 78); provided that
  (i)  a  motion  under this paragraph shall be made with due diligence,
after the defendant has ceased to be a victim  of  such  trafficking  or
compelling prostitution crime or has sought services for victims of such
trafficking  or  compelling  prostitution  crime,  subject to reasonable
concerns for the safety of the defendant, family members of the  defend-
ant,  or  other  victims  of such trafficking or compelling prostitution
crime that may be jeopardized by the bringing of  such  motion,  or  for
other reasons consistent with the purpose of this paragraph; and
  (ii)  official  documentation of the defendant's status as a victim of
trafficking, compelling prostitution or trafficking in  persons  at  the
time  of  the  offense  from a federal, state or local government agency
shall create a presumption that the  defendant's  participation  in  the
offense was a result of having been a victim of sex trafficking, compel-
ling  prostitution  or trafficking in persons, but shall not be required
for granting a motion under this paragraph[.]; OR
  (J) THE JUDGMENT OCCURRED PRIOR TO THE EFFECTIVE DATE  OF  THIS  PARA-
GRAPH AND IS A CONVICTION FOR:
  (I) AN OFFENSE AS DEFINED BY SECTION 221.05 OR 221.10 OF THE PENAL LAW
(CRIMINAL  POSSESSION  OF  MARIHUANA  IN THE FIFTH DEGREE), AS IN EFFECT
PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH, PROVIDED THAT THE ACCUSA-
TORY INSTRUMENT THAT UNDERLIES THE JUDGMENT DOES NOT INCLUDE AN  ALLEGA-
TION  THAT  THE DEFENDANT POSSESSED MORE THAN TWENTY-FIVE GRAMS OF MARI-
HUANA; OR
  (II) AN OFFENSE AS DEFINED BY FORMER SECTION 221.35 OF THE  PENAL  LAW
(CRIMINAL SALE OF MARIHUANA IN THE FIFTH DEGREE).
  §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
follows:
  6.  If  the court grants a motion under paragraph (i) OR PARAGRAPH (J)
of subdivision one of this section, it  must  vacate  the  judgment  and
dismiss  the  accusatory instrument, and may take such additional action
as is appropriate in the circumstances.
  § 40. The criminal procedure law is amended by adding  a  new  section
440.46-a to read as follows:
§ 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
             OFFENSES.
  1.  A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER BY
TRIAL OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN  GUILTY  OF
AN  OFFENSE  OR  WHO  WOULD  HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
AT THE TIME OF HIS OR HER  CONVICTION  MAY  PETITION  FOR  A  RECALL  OR
DISMISSAL  OF  SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT
OF CONVICTION IN HIS OR HER CASE TO REQUEST RESENTENCING OR DISMISSAL IN
ACCORDANCE WITH ARTICLE TWELVE HUNDRED TWENTY-ONE OF THE PENAL LAW.
  2. UPON RECEIVING A MOTION UNDER SUBDIVISION ONE OF THIS  SECTION  THE
COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE
OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY CLEAR AND
CONVINCING  EVIDENCE  THAT  THE MOVANT DOES NOT SATISFY THE CRITERIA. IF

S. 3040--A                         57

THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE  OF  THIS  SECTION,
THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR TO RESENTENCE
BECAUSE  IT  IS LEGALLY INVALID. IN EXERCISING ITS DISCRETION, THE COURT
MAY CONSIDER, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING:
  (A)  THE  MOVANT'S  CRIMINAL CONVICTION HISTORY, INCLUDING THE TYPE OF
CRIMES COMMITTED, THE EXTENT OF INJURY TO VICTIMS, THE LENGTH  OF  PRIOR
PRISON COMMITMENTS, AND THE REMOTENESS OF THE CRIMES.
  (B)  THE  MOVANT'S  DISCIPLINARY  RECORD  AND RECORD OF REHABILITATION
WHILE INCARCERATED.
  3. A PERSON WHO IS SERVING A  SENTENCE  AND  RESENTENCED  PURSUANT  TO
SUBDIVISION  TWO  OF  THIS  SECTION  SHALL  BE GIVEN CREDIT FOR ANY TIME
ALREADY SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR  FOLLOW-
ING  COMPLETION  OF  HIS  OR  HER TIME IN CUSTODY OR SHALL BE SUBJECT TO
WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO
AFTER  RELEASE,  WHICHEVER  IS  SHORTER,  UNLESS  THE  COURT,   IN   ITS
DISCRETION,  AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON FROM
SUPERVISION. SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER  SECTION
60.04  OF  THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER SECTION 70.45
OF THE PENAL LAW BY THE DESIGNATED AGENCY AND THE  JURISDICTION  OF  THE
COURT  IN THE COUNTY IN WHICH THE OFFENDER IS RELEASED OR RESIDES, OR IN
WHICH AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE  PURPOSE
OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY.
  4.  UNDER  NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS SECTION RESULT
IN THE IMPOSITION OF A TERM LONGER THAN THE ORIGINAL  SENTENCE,  OR  THE
REINSTATEMENT  OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA AGREE-
MENT.
  5. A PERSON WHO HAS COMPLETED HIS OR HER  SENTENCE  FOR  A  CONVICTION
UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
ER  BY  TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN GUILTY
OF AN OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE  ON  AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN APPLICATION BEFORE THE
TRIAL  COURT  THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR HER CASE
TO HAVE THE CONVICTION, IN ACCORDANCE WITH ARTICLE TWO  HUNDRED  TWENTY-
ONE OF THE PENAL LAW:
  (A)  DISMISSED BECAUSE THE PRIOR CONVICTION IS NOW LEGALLY INVALID AND
SEALED IN ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER;
  (B) REDESIGNATED (OR "RECLASSIFIED") AS  A  VIOLATION  AND  SEALED  IN
ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER; OR
  (C) REDESIGNATED (RECLASSIFIED) AS A MISDEMEANOR.
  6.  THE  COURT  SHALL PRESUME THE PETITIONER SATISFIES THE CRITERIA IN
SUBDIVISION FIVE UNLESS THE PARTY OPPOSING  THE  APPLICATION  PROVES  BY
CLEAR  AND  CONVINCING EVIDENCE THAT THE PETITIONER DOES NOT SATISFY THE
CRITERIA IN SUBDIVISION FIVE. ONCE THE APPLICANT SATISFIES THE  CRITERIA
IN  SUBDIVISION  FIVE, THE COURT SHALL REDESIGNATE (OR "RECLASSIFY") THE
CONVICTION AS A MISDEMEANOR, REDESIGNATE (RECLASSIFY) THE CONVICTION  AS
A  VIOLATION AND SEAL THE CONVICTION, OR DISMISS AND SEAL THE CONVICTION
AS LEGALLY INVALID UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT
THE TIME OF HIS OR HER CONVICTION.
  7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECESSARY TO GRANT
OR DENY AN APPLICATION FILED UNDER SUBDIVISION FIVE OF THIS SECTION.
  8. ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER  SUBDI-
VISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION UNDER SUBDIVISION
SIX  OF  THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR OR VIOLATION FOR
ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT IS VACATED AND RESENTENCED
UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A VIOLATION UNDER

S. 3040--A                         58

SUBDIVISION SIX OF THIS SECTION SHALL BE CONSIDERED A VIOLATION FOR  ALL
PURPOSES.
  9. IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAILABLE,
THE  PRESIDING  JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON THE PETI-
TION OR APPLICATION.
  10. NOTHING IN THIS SECTION IS INTENDED TO DIMINISH  OR  ABROGATE  ANY
RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
  11.  NOTHING  IN  THIS AND RELATED SECTIONS IS INTENDED TO DIMINISH OR
ABROGATE THE FINALITY OF JUDGEMENTS IN ANY CASE NOT FALLING  WITHIN  THE
PURVIEW OF THIS SECTION.
  12.  THE  PROVISIONS  OF  THIS SECTION SHALL APPLY EQUALLY TO JUVENILE
DELINQUENCY ADJUDICATIONS AND DISPOSITIONS UNDER  SECTION  FIVE  HUNDRED
ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
AN  OFFENSE  OR  WOULD  HAVE  BEEN GUILTY OF A LESSER OFFENSE UNDER THIS
SECTION HAD THIS SECTION BEEN IN EFFECT  AT  THE  TIME  OF  HIS  OR  HER
CONVICTION.
  13.  THE  OFFICE  OF  COURT  ADMINISTRATION  SHALL PROMULGATE AND MAKE
AVAILABLE ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS  AND
APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
THE EFFECTIVE DATE OF THIS SECTION.
  § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
procedure  law, as amended by chapter 37 of the laws of 2014, is amended
to read as follows:
  (c) Criminal possession of  a  controlled  substance  in  the  seventh
degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
possession of a controlled substance in the fifth degree as  defined  in
section  220.06  of  the  penal law, criminal possession of a controlled
substance in the fourth degree as defined in section 220.09 of the penal
law, criminal possession of a controlled substance in the  third  degree
as  defined in section 220.16 of the penal law, criminal possession of a
controlled substance in the second degree as defined in  section  220.18
of  the  penal law, criminal possession of a controlled substance in the
first degree as defined in section 220.21 of  the  penal  law,  criminal
sale of a controlled substance in the fifth degree as defined in section
220.31  of the penal law, criminal sale of a controlled substance in the
fourth degree as defined in section 220.34 of the  penal  law,  criminal
sale of a controlled substance in the third degree as defined in section
220.39  of the penal law, criminal sale of a controlled substance in the
second degree as defined in section 220.41 of the  penal  law,  criminal
sale of a controlled substance in the first degree as defined in section
220.43  of  the penal law, criminally possessing a hypodermic instrument
as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
prescription  for  a controlled substance or a controlled substance by a
practitioner or pharmacist as defined in section  220.65  of  the  penal
law,  criminal  possession  of methamphetamine manufacturing material in
the second degree as defined in section 220.70 of the penal law,  crimi-
nal  possession  of  methamphetamine manufacturing material in the first
degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
possession of precursors of methamphetamine as defined in section 220.72
of  the  penal law, unlawful manufacture of methamphetamine in the third
degree as defined in section 220.73 of the penal law, unlawful  manufac-
ture  of  methamphetamine  in  the  second  degree as defined in section
220.74 of the penal law, unlawful manufacture of methamphetamine in  the
first  degree  as  defined  in section 220.75 of the penal law, unlawful
disposal of methamphetamine laboratory material as  defined  in  section
220.76  of  the penal law, operating as a major trafficker as defined in

S. 3040--A                         59

section 220.77 of the penal law, [criminal possession  of  marihuana  in
the first degree as defined in section 221.30 of the penal law, criminal
sale  of  marihuana  in the first degree as defined in section 221.55 of
the  penal  law,]  promoting gambling in the second degree as defined in
section 225.05 of the penal law, promoting gambling in the first  degree
as  defined  in  section 225.10 of the penal law, possession of gambling
records in the second degree as defined in section 225.15 of  the  penal
law,  possession  of  gambling records in the first degree as defined in
section 225.20 of the penal law, and possession of a gambling device  as
defined in section 225.30 of the penal law;
  § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
9  of  section  1310 of the civil practice law and rules, paragraphs (b)
and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
are amended to read as follows:
  (b) on three or more occasions, engaging  in  conduct  constituting  a
violation  of  any  of  the  felonies defined in section 220.09, 220.16,
220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] OR 220.43 [or  221.55]
of  the  penal law, which violations do not constitute a single criminal
offense as defined in subdivision one of section 40.10 of  the  criminal
procedure law, or a single criminal transaction, as defined in paragraph
(a)  of  subdivision two of section 40.10 of the criminal procedure law,
and at least one of which resulted in a conviction of such  offense,  or
where  the  accusatory  instrument charges one or more of such felonies,
conviction upon a plea of guilty to a felony  for  which  such  plea  is
otherwise authorized by law; or
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
nal  defendant  for  a violation of section 221.30 of the penal law,] or
where the accusatory instrument charges any such felony, conviction upon
a plea of guilty to a felony for which the plea is otherwise  authorized
by  law,  together with evidence which: (i) provides substantial indicia
that the defendant used the real property  to  engage  in  a  continual,
ongoing  course  of  conduct involving the unlawful mixing, compounding,
manufacturing, warehousing, or packaging of  controlled  substances  [or
where  the  conviction is for a violation of section 221.30 of the penal
law, marijuana,] as part of an illegal trade or business for  gain;  and
(ii) establishes, where the conviction is for possession of a controlled
substance  [or where the conviction is for a violation of section 221.30
of the penal law, marijuana], that such possession was with  the  intent
to sell it.
  [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
article two hundred twenty or section 221.30  or  221.55  of  the  penal
law.]
  9.  "Criminal defendant" means a person who has criminal liability for
a crime defined in [subdivisions] SUBDIVISION five [and six  hereof]  OF
THIS  SECTION.  For  purposes  of  this  article,  a person has criminal
liability when [(a)] he has been convicted of a post-conviction  forfei-
ture  crime[, or (b) the claiming authority proves by clear and convinc-
ing evidence that such person has committed an act in violation of arti-
cle two hundred twenty or section 221.30 or 221.55 of the penal law].
  § 43. Subdivision 3-a and paragraphs (a) and (b) of subdivision 11  of
section  1311  of  the  civil practice law and rules, subdivision 3-a as
added by chapter 655 of the laws of 1990 and paragraphs (a) and  (b)  of
subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the
laws of 2010, are amended to read as follows:

S. 3040--A                         60

  3-a.  Conviction  of  a person in a criminal action upon an accusatory
instrument which includes one or  more  of  the  felonies  specified  in
subdivision  four-b  of section thirteen hundred ten of this article, of
any felony other than such felonies, shall not preclude a defendant,  in
any subsequent proceeding under this article where that conviction is at
issue, from adducing evidence that the conduct underlying the conviction
would  not  establish  the  elements of any of the felonies specified in
such subdivision other than the one to which the criminal defendant pled
guilty. If the defendant does adduce such evidence, the burden shall  be
upon  the claiming authority to prove, by clear and convincing evidence,
that the conduct underlying the criminal conviction would establish  the
elements  of the felony specified in such subdivision. Nothing contained
in this subdivision shall affect the validity of  a  settlement  of  any
forfeiture action negotiated between the claiming authority and a crimi-
nal defendant contemporaneously with the taking of a plea of guilty in a
criminal  action to any felony defined in article two hundred twenty [or
section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
commit the same.
  (a) Any stipulation or settlement agreement between the parties  to  a
forfeiture  action  shall  be filed with the clerk of the court in which
the forfeiture action is pending. No stipulation or settlement agreement
shall be accepted for filing unless it is accompanied  by  an  affidavit
from  the  claiming  authority that written notice of the stipulation or
settlement agreement, including the terms of such, has been given to the
office of victim  services,  the  state  division  of  criminal  justice
services[,  and in the case of a forfeiture based on a felony defined in
article two hundred twenty or section 221.30 or 221.55 of the penal law,
to the state division of substance abuse services].
  (b) No judgment or order of forfeiture shall be  accepted  for  filing
unless  it  is  accompanied  by an affidavit from the claiming authority
that written notice of judgment or order, including the terms  of  such,
has  been  given to the office of victim services, the state division of
criminal justice services[, and in the case of a forfeiture based  on  a
felony defined in article two hundred twenty or section 221.30 or 221.55
of the penal law, to the state division of substance abuse services].
  §  44.  Subdivision 13 of section 89-f of the general business law, as
added by chapter 336 of the laws of 1992, is amended to read as follows:
  13. "Serious offense" shall mean any  felony  involving  the  offenses
enumerated  in  the  closing  paragraph  of this subdivision; a criminal
solicitation of or a conspiracy to commit or an attempt to commit  or  a
criminal  facilitation  of a felony involving the offenses enumerated in
the closing paragraph of this subdivision, which criminal  solicitation,
conspiracy, attempt or criminal facilitation itself constitutes a felony
or  any  offense  in  any  other jurisdiction which if committed in this
state would constitute a felony; any offense in any  other  jurisdiction
which if committed in this state would constitute a felony provided that
for the purposes of this article, none of the following shall be consid-
ered  criminal  convictions  or  reported  as such: (i) a conviction for
which an executive pardon has been issued pursuant to the executive law;
(ii) a conviction which has been vacated  and  replaced  by  a  youthful
offender  finding pursuant to article seven hundred twenty of the crimi-
nal procedure law, or the applicable provisions  of  law  of  any  other
jurisdiction;  or  (iii)  a  conviction  the  records of which have been
sealed pursuant to the applicable provisions of the laws of  this  state
or  of  any  other  jurisdiction;  and (iv) a conviction for which other

S. 3040--A                         61

evidence of successful rehabilitation to remove the disability has  been
issued.
  Felonies involving: assault, aggravated assault and reckless endanger-
ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
manslaughter and murder pursuant to article one hundred twenty-five; sex
offenses pursuant to article one hundred thirty; unlawful  imprisonment,
kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
criminal trespass and burglary pursuant to article  one  hundred  forty;
criminal  mischief,  criminal  tampering  and  tampering with a consumer
product pursuant to article one hundred forty-five;  arson  pursuant  to
article one hundred fifty; larceny and offenses involving theft pursuant
to article one hundred fifty-five; offenses involving computers pursuant
to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
hundred sixty; criminal possession of stolen property pursuant to  arti-
cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
article one hundred seventy; involving false written statements pursuant
to article one hundred seventy-five; commercial bribing  and  commercial
bribe  receiving pursuant to article one hundred eighty; criminal imper-
sonation and scheme to defraud pursuant to article one  hundred  ninety;
bribery involving public servants and related offenses pursuant to arti-
cle  two  hundred;  perjury and related offenses pursuant to article two
hundred ten; tampering with a witness, intimidating a victim or  witness
and  tampering  with  physical  evidence pursuant to article two hundred
fifteen; criminal possession  of  a  controlled  substance  pursuant  to
sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
220.41, 220.43 and 220.44; criminal sale of [marijuana] MARIHUANA IN THE
FIRST DEGREE pursuant to [sections] SECTION 221.45[, 221.50 and 221.55];
riot  in  the  first  degree, aggravated harassment in the first degree,
criminal nuisance in the first degree and falsely reporting an  incident
in the second or first degree pursuant to article two hundred forty; and
crimes  against public safety pursuant to article two hundred sixty-five
of the penal law.
  § 45. Paragraph (f) of subdivision 2 of section  850  of  the  general
business law is REPEALED.
  §  46.  Paragraph  (h)  of subdivision 2 of section 850 of the general
business law, as amended by chapter 812 of the laws of 1980, is  amended
to read as follows:
  (h)  Objects, used or designed for the purpose of ingesting, inhaling,
or otherwise introducing [marihuana,] cocaine, [hashish, or hashish oil]
into the human body.
  § 47. Paragraph a of subdivision 4-a  of  section  165  of  the  state
finance  law,  as added by chapter 95 of the laws of 2000, is amended to
read as follows:
  a. In order  to  advance  specific  economic  goals,  New  York  state
labelled wines, as defined in subdivision [twenty-a] TWENTY-J of section
three  of  the alcoholic beverage control law, shall have favored source
status for the purposes of procurement in accordance with the provisions
of this subdivision.  Procurement of these New York state labelled wines
shall be exempt from the competitive procurement provisions  of  section
one  hundred  sixty-three of this article and other competitive procure-
ment statutes.  Such exemption shall apply to New  York  state  labelled
wines  as defined in subdivision [twenty-a] TWENTY-J of section three of
the alcoholic beverage control law produced  by  a  licensed  winery  as
defined in section seventy-six of the alcoholic beverage control law.

S. 3040--A                         62

  § 48. Subdivision 7 of section 995 of the executive law, as amended by
chapter 19 of the laws of 2012, is amended to read as follows:
  7.  "Designated  offender"  means  a  person  convicted  of any felony
defined in any chapter of the laws  of  the  state  or  any  misdemeanor
defined  in  the  penal  law  [except that where the person is convicted
under section 221.10 of the penal law, only  a  person  convicted  under
subdivision two of such section, or a person convicted under subdivision
one  of  such  section  who  stands previously convicted of any crime as
defined in subdivision six of section 10.00 of the penal law].
  § 49. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
penal law, paragraph (b) as amended by section 31 of part AAA of chapter
56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
laws of 1990, are amended to read as follows:
  (b) three or more violations of any of the felonies defined in section
220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
220.43[,] OR 220.77[, or 221.55] of this chapter,  which  violations  do
not  constitute  a single criminal offense as defined in subdivision one
of section 40.10 of the criminal procedure law,  or  a  single  criminal
transaction,  as  defined in paragraph (a) of subdivision two of section
40.10 of the criminal procedure law, and at least one of which  resulted
in  a  conviction  of  such  offense, or where the accusatory instrument
charges one or more of such felonies, conviction upon a plea  of  guilty
to a felony for which such plea is otherwise authorized by law; or
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or  where  the
accusatory instrument charges any such felony, conviction upon a plea of
guilty  to  a  felony for which the plea is otherwise authorized by law,
together with evidence which: (i) provides substantial indicia that  the
defendant  used  the  real  property  to  engage in a continual, ongoing
course of conduct involving the unlawful mixing,  compounding,  manufac-
turing, warehousing, or packaging of controlled substances [or where the
conviction  is  for a violation of section 221.30 of this chapter, mari-
juana] as part of an illegal trade or business for gain; and (ii) estab-
lishes, where the conviction is for possession of a controlled substance
[or where the conviction is for a violation of section  221.30  of  this
chapter,  marijuana],  that  such possession was with the intent to sell
it.
  § 50. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
amended to read as follows:
  (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
subdivision one and subparagraph (i) of paragraph (c) of subdivision two
of  this  section  that  result in disqualification for a period of five
years shall include a conviction under sections 100.10, 105.13,  115.05,
120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
the  aforesaid  offenses  under  section 110.00 of the penal law, or any
similar offenses committed under a former section of the penal  law,  or
any  offenses  committed  under  a former section of the penal law which
would constitute violations of the aforesaid sections of the penal  law,

S. 3040--A                         63

or  any  offenses  committed  outside  this state which would constitute
violations of the aforesaid sections of the penal law.
  §  51. Appropriation.  The sum of five million dollars ($5,000,000) is
hereby appropriated to the New York State Liquor Authority  out  of  any
moneys  in  the  state treasury in the general fund to the credit of the
state purposes account, not otherwise appropriated, and made immediately
available, for the purpose of carrying out the provisions of  this  act.
Such moneys shall be payable on the audit and warrant of the comptroller
on  vouchers certified or approved by the superintendent or the chairman
of the New York State Liquor Authority in the manner prescribed by law.
  § 52. Severability. If any provision or term of this act  is  for  any
reason  declared unconstitutional or invalid or ineffective by any court
of competent jurisdiction, such decision shall not affect  the  validity
of  the  effectiveness of the remaining portions of this act or any part
thereof.
  § 53. This act shall take effect immediately.

Co-Sponsors

view additional co-sponsors

S3040B - Details

See Assembly Version of this Bill:: A3506
Current Committee:: Senate Finance
Law Section:: Public Health Law
Laws Affected:: Amd Various Laws, generally
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6005, A8341
2015-2016: S1747, A3089
2019-2020: S1527, A1617
2021-2022: S854, A1248

S3040B - Summary

S3040B - Sponsor Memo

 BILL NUMBER:  S3040B

 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 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 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
reinvestment 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 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

 SUMMARY OF SPECIFIC PROVISIONS :

Section one of the bill is the title.

Section two of the bill is comprised of legislative findings and
statements 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
twenty-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.

Sections twenty-one of the bill amends section 2 of the Alcoholic
Beverage 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
Beverage Control Law to include definitions of Concentrated Cannabis,
Marihuana, and Marihuana consumers, processors, producer, products,
infused products, retailer and retailer for on-premises consumption,
and unreasonably 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 65-e to the
Alcoholic Beverage Control law establishing restrictions for personal
use of marihuana, 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
Beverage 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,
processing, 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-bb, 99-cc and
99-cc to the State Finance law establishing the marihuana revenue
fund, the drug treatment public education fund, and the community
grants reinvestment funds. These funds will distribute revenue
generated by this legislation for administrative costs, data tracking
and reporting, program evaluation, public education, drug treatment
and health education, and grants to support community-based programs
providing job placement, job skills, adult education, mental health,
legal services addressing barriers to reentry, women's health and
other community-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 comptroller 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
adjournment 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 446.46-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 and forty-five of the bill amend section 850 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 to amended sections of the penal law.

Section fifty of the bill updates section 1194 of the vehicle and
traffic law to specify testing limits for marihuana content.

Section fifty-one and fifty-two of the bill amends section 12 of the
alcoholic beverage control law to include the development of substance
abuse training awareness programs within the powers of the authority.

Section fifty-three of the bill repeals section 150.75 of the criminal
procedure law.

Section fifty-four of the bill updates cross references in the family
court act.

Section fifty-five of the bill provides for an appropriation of five
million dollars to the State Liquor Authority for implementation of
this act.

Section fifty-six is a severability clause.

Section fifty-seven of the bill is the effective date.

 JUSTIFICATION :

Existing marihuana laws have not been beneficial to the welfare of the
general public. Existing laws have been ineffective in reducing or
curbing marihuana use and have instead resulted in devastating
collateral consequences that inhibit an otherwise law-abiding
citizen's ability to access housing, employment opportunities, and
other vital services. Existing laws have also created an illicit
market that represents a threat to public health and reduces the
ability of the legislature to deter the accessing of marihuana by
minors. Existing marihuana laws have also disproportionately impacted
African-American and Latino communities and cost New York governments
millions of dollars every year to enforce.

The intent of this act is to regulate, control, and tax marihuana in a
manner similar to alcohol, generate millions of dollars in new
revenue, prevent access to marihuana by those under the age of
twenty-one years, reduce the illegal drug market and reduce violent
crime, reduce participation of otherwise law-abiding citizens in the
illicit market, end the racially disparate impact of existing
marihuana laws and create new industries and increase employment.

The New York Police Department arrested 18,136 people for marijuana
possession in 2016, a 9 percent increase from 2015. The enforcement of
present law has disproportionately effected African-American and
Latino communities; often giving first time, non-violent offenders, an
extraneous criminal record. Government health surveys find that young
whites use marihuana at higher rates than young blacks and Latinos.
But in 2016, 95 percent of those charged with marijuana possession in
New York City were African-American or Latino.

Aside from mitigating these issues, the regulation and taxation act
will also help accrue revenue for the state; portions of which will go
back (through government agencies and programs) to communities that
have been impacted by present law.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

Increase revenue for state and local governments. Fiscal implication
assumptions for similar legislation implemented in Colorado, Amendment
64, estimated an annual revenue increase of 5-22 million dollars and
an annual spending increase of .5-1.5 million dollars.  Given the
larger population of New York State this legislation should generate
revenue substantially larger than these estimates.

 EFFECTIVE DATE :
Immediately.

S3040B - Bill Text download pdf


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

                                 3040--B

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                            January 19, 2017
                               ___________

Introduced by Sens. KRUEGER, ALCANTARA, BAILEY, COMRIE, DILAN, HAMILTON,
  HOYLMAN,  MONTGOMERY,  PARKER,  PERALTA, RIVERA, SERRANO -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  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 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

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

                                                           LBD05327-06-7

S. 3040--B                          2

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

  Section  1. This act shall be known and may be cited as the "marihuana
regulation and taxation act".
  § 2. Legislative findings and intent.    The  legislature  finds  that
existing  marihuana  laws have not been beneficial to the welfare of the
general public. Existing laws have been ineffective in reducing or curb-
ing marihuana use and have instead resulted  in  devastating  collateral
consequences  that inhibit an otherwise law-abiding citizen's ability to
access housing, employment  opportunities,  and  other  vital  services.
Existing  laws  have  also  created an illicit market which represents a
threat to public health and reduces the ability of  the  legislature  to
deter the accessing of marihuana by minors. Existing marihuana laws have
also  disproportionately  impacted  African-American and Latino communi-
ties.
  The intent of this act is to regulate, control, and tax marihuana in a
manner similar to alcohol, generate millions of dollars in new  revenue,
prevent  access to marihuana by those under the age of twenty-one years,
reduce the illegal drug market and reduce violent crime, reduce  partic-
ipation of otherwise law-abiding citizens in the illicit market, end the
racially  disparate  impact  of  existing  marihuana laws and create new
industries and increase employment.
  Nothing in this act is intended to limit the authority of any district
government agency or office or employers to enact and  enforce  policies
pertaining  to  marihuana  in  the workplace, to allow driving under the
influence of marihuana, to allow individuals to engage in  conduct  that
endangers others, to allow smoking marihuana in any location where smok-
ing tobacco is prohibited, or to require any individual to engage in any
conduct  that violates federal law or to exempt anyone from any require-
ment of federal law or pose any obstacle to the federal  enforcement  of
federal law.
  Nothing in this act is intended to limit any privileges or rights of a
medical  marihuana  patient or medical marihuana caregiver under the New
York Compassionate Care Act.
  § 3. Section 3302 of the public health law, as added by chapter 878 of
the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,
subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
subdivision 20, the opening paragraph of subdivision 22 and  subdivision
29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
vision 41 as added by section 6 of part A of chapter 447 of the laws  of
2012,  and  subdivisions  42  and 43 as added by section 13 of part D of
chapter 60 of the laws of 2014, is amended to read as follows:
  § 3302. Definitions of terms of general use in  this  article.  Except
where   different   meanings   are  expressly  specified  in  subsequent
provisions of this article, the following terms have the following mean-
ings:
  1. "Addict" means a person who habitually uses a controlled  substance
for  a  non-legitimate or unlawful use, and who by reason of such use is
dependent thereon.

S. 3040--B                          3

  2.  "Administer"  means  the  direct  application  of   a   controlled
substance,  whether  by  injection,  inhalation, ingestion, or any other
means, to the body of a patient or research subject.
  3.  "Agent" means an authorized person who acts on behalf of or at the
direction of a manufacturer, distributor, or dispenser. No person may be
authorized to so act if under title  VIII  of  the  education  law  such
person  would  not  be  permitted to engage in such conduct. It does not
include a common or contract carrier, public warehouseman,  or  employee
of  the  carrier  or  warehouseman  when  acting in the usual and lawful
course of the carrier's or warehouseman's business.
  4. ["Concentrated Cannabis" means
  (a) the separated resin, whether crude or purified,  obtained  from  a
plant of the genus Cannabis; or
  (b)  a  material,  preparation,  mixture,  compound or other substance
which contains more than two and one-half percent by weight  of  delta-9
tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
terpene numbering system.
  5.] "Controlled substance" means a substance or substances  listed  in
section thirty-three hundred six of this [chapter] TITLE.
  [6.]  5.  "Commissioner"  means commissioner of health of the state of
New York.
  [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
attempted transfer from one person to another of a controlled substance,
whether or not there is an agency relationship.
  [8.]  7.  "Department"  means the department of health of the state of
New York.
  [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
mate user or research subject by lawful means, including by means of the
internet, and includes the packaging, labeling, or compounding necessary
to prepare the substance for such delivery.
  [10.] 9. "Distribute" means to deliver a controlled substance, includ-
ing by means of the internet, other than by administering or dispensing.
  [11.] 10. "Distributor" means a person who  distributes  a  controlled
substance.
  [12.]  11.  "Diversion" means manufacture, possession, delivery or use
of a controlled substance by a person or in a  manner  not  specifically
authorized by law.
  [13.] 12. "Drug" means
  (a) substances recognized as drugs in the official United States Phar-
macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
official National Formulary, or any supplement to any of them;
  (b) substances intended for use in the  diagnosis,  cure,  mitigation,
treatment, or prevention of disease in man or animals; and
  (c) substances (other than food) intended to affect the structure or a
function  of  the  body of man or animal. It does not include devices or
their components, parts, or accessories.
  [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
United States Department of Justice, or its successor agency.
  [15.]  14. "Federal controlled substances act" means the Comprehensive
Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
any  act  or  acts  amendatory  or  supplemental  thereto or regulations
promulgated thereunder.
  [16.] 15. "Federal registration number" means such number assigned  by
the  Federal agency to any person authorized to manufacture, distribute,
sell, dispense or administer controlled substances.

S. 3040--B                          4

  [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
repeated  use of any controlled substance for non-legitimate or unlawful
use is in danger of becoming, dependent upon such substance.
  [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
hospital or similar facility approved and certified by the department as
authorized  to  obtain  controlled  substances  by  distribution  and to
dispense and administer such substances pursuant to the order of a prac-
titioner.
  [19.] 18. "License"  means  a  written  authorization  issued  by  the
department  or  the  New  York  state department of education permitting
persons to engage in a specified activity  with  respect  to  controlled
substances.
  [20.]  19.  "Manufacture"  means  the  production, preparation, propa-
gation,  compounding,  cultivation,  conversion  or  processing   of   a
controlled  substance,  either  directly  or indirectly or by extraction
from substances of natural origin, or independently by means of chemical
synthesis, or by a combination of extraction and chemical synthesis, and
includes any packaging or repackaging of the substance  or  labeling  or
relabeling  of its container, except that this term does not include the
preparation,  compounding,  packaging  or  labeling  of   a   controlled
substance:
  (a)  by a practitioner as an incident to his administering or dispens-
ing of a controlled substance in the course of  his  professional  prac-
tice; or
  (b)  by  a  practitioner,  or by his authorized agent under his super-
vision, for the purpose of, or as an incident to, research, teaching, or
chemical analysis and not for sale; or
  (c) by a pharmacist as an incident to his dispensing of  a  controlled
substance in the course of his professional practice.
  [21.  "Marihuana"  means all parts of the plant of the genus Cannabis,
whether growing or not; the seeds thereof; the resin extracted from  any
part  of  the  plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds or resin.  It  does  not
include  the mature stalks of the plant, fiber produced from the stalks,
oil or cake made from the seeds of the plant, any other compound,  manu-
facture,  salt, derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
sterilized seed of the plant which is incapable of germination.
  22.]  20. "Narcotic drug" means any of the following, whether produced
directly or  indirectly  by  extraction  from  substances  of  vegetable
origin,  or independently by means of chemical synthesis, or by a combi-
nation of extraction and chemical synthesis:
  (a) opium and opiate, and any salt, compound, derivative, or  prepara-
tion of opium or opiate;
  (b)  any  salt,  compound,  isomer, derivative, or preparation thereof
which is chemically equivalent or identical with any of  the  substances
referred  to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but not
including the isoquinoline alkaloids of opium;
  (c) opium poppy and poppy straw.
  [23.] 21. "Opiate" means any substance having an addiction-forming  or
addiction-sustaining  liability  similar to morphine or being capable of
conversion into a drug having addiction-forming or  addiction-sustaining
liability.  It  does  not  include,  unless  specifically  designated as
controlled under section [3306] THIRTY-THREE HUNDRED SIX of this  [arti-
cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and

S. 3040--B                          5

its  salts (dextromethorphan). It does include its racemic and levorota-
tory forms.
  [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
somniferum L., except its seeds.
  [25.] 23. "Person" means individual, institution, corporation, govern-
ment or governmental subdivision  or  agency,  business  trust,  estate,
trust, partnership or association, or any other legal entity.
  [26.]  24. "Pharmacist" means any person licensed by the state depart-
ment of education to practice pharmacy.
  [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
York  state  board  of  pharmacy  and registered with the Federal agency
pursuant to the federal controlled substances act.
  [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
opium poppy, after mowing.
  [29.] 27. "Practitioner" means:
  A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
gator, or other person licensed, or  otherwise  permitted  to  dispense,
administer or conduct research with respect to a controlled substance in
the  course  of  a  licensed  professional practice or research licensed
pursuant to this article. Such person shall be deemed  a  "practitioner"
only  as  to such substances, or conduct relating to such substances, as
is permitted by his license, permit or otherwise permitted by law.
  [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
prescription,  permitting an ultimate user lawfully to obtain controlled
substances  from  any  person  authorized  by  law  to   dispense   such
substances.
  [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
prescription, an electronic prescription, an oral prescription[,] OR  an
out-of-state prescription[, or any one].
  [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
er, or offer or agree to do the same.
  [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
possesses a controlled substance for his own use or the use by a  member
of  his  household  or  for an animal owned by him or in his custody. It
shall also mean and include a person designated, by a practitioner on  a
prescription, to obtain such substance on behalf of the patient for whom
such substance is intended.
  [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
cations facilities which comprise the worldwide network of networks that
employ a set of industry standards and protocols, or any predecessor  or
successor  protocol  to  such  protocol,  to exchange information of all
kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
networks,  whether  private  or  public, used to transmit information by
electronic means.
  [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
distribution,  or  dispensing  of  a  controlled substance that uses the
internet, is initiated by use of the internet or causes the internet  to
be used.
  [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
in  the  United  States  that sells, delivers or dispenses, or offers to
sell, deliver, or dispense, a  controlled  substance  by  means  of  the
internet.
  [37.]  35.  "Electronic prescription" means a prescription issued with
an electronic signature and transmitted by electronic means  in  accord-
ance with regulations of the commissioner and the commissioner of educa-
tion  and consistent with federal requirements. A prescription generated

S. 3040--B                          6

on an electronic system that is printed out or transmitted via facsimile
is not considered  an  electronic  prescription  and  must  be  manually
signed.
  [38.] 36. "Electronic" means of or relating to technology having elec-
trical, digital, magnetic, wireless, optical, electromagnetic or similar
capabilities. "Electronic" shall not include facsimile.
  [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
created, generated, transmitted, communicated,  received  or  stored  by
means  of electronic equipment and includes the preservation, retrieval,
use and disposition in accordance with regulations of  the  commissioner
and the commissioner of education and in compliance with federal law and
regulations.
  [40.] 38. "Electronic signature" means an electronic sound, symbol, or
process,  attached  to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the  record,
in  accordance with regulations of the commissioner and the commissioner
of education.
  [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
means  the prescription monitoring program registry established pursuant
to section thirty-three hundred forty-three-a of this article.
  [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
drug substance to create a drug with respect to an outsourcing  facility
under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
further defined in this section.
  [43.] 41. "Outsourcing facility" means a facility that:
  (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
section sixty-eight hundred two of the education law;
  (b)  is  currently  registered  as an outsourcing facility pursuant to
article one hundred thirty-seven of the education law; and
  (c) complies with all applicable requirements  of  federal  and  state
law, including the Federal Food, Drug and Cosmetic Act.
  Notwithstanding  any  other  provision of law to the contrary, when an
outsourcing facility distributes or dispenses any  drug  to  any  person
pursuant to a prescription, such outsourcing facility shall be deemed to
be  providing  pharmacy services and shall be subject to all laws, rules
and regulations governing pharmacies and pharmacy services.
  § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
laws of 2006, are amended to read as follows:
  (13) [Marihuana.
  (14)] Mescaline.
  [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
  [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
not, the seeds thereof, any extract from any part  of  such  plant,  and
every  compound, manufacture, salts, derivative, mixture, or preparation
of such plant, its seeds or extracts.
  [(17)] (16) N-ethyl-3-piperidyl benzilate.
  [(18)] (17) N-methyl-3-piperidyl benzilate.
  [(19)] (18) Psilocybin.

S. 3040--B                          7

  [(20)] (19) Psilocyn.
  [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT
DERIVED  FROM  THE CANNABIS PLANT THAT ARE equivalents of the substances
contained in the plant, or in the resinous extractives of cannabis,  sp.
and/or synthetic substances, derivatives, and their isomers with similar
chemical structure and pharmacological activity such as the following:
  DELTA 1 cis or trans tetrahydrocannabinol, and their optical isomers
  DELTA 6 cis or trans tetrahydrocannabinol, and their optical isomers
  DELTA  3, 4 cis or trans tetrahydrocannabinol, and its optical isomers
(since nomenclature of these substances is not internationally standard-
ized, compounds of these structures, regardless of numerical designation
of atomic positions covered).
  [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
  [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
  [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
phencyclidine, TPCP, TCP.
  [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
  [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
MDE, MDEA.
  [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
N-hydroxy MDA.
  [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
names: TCPY.
  [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
3- (2-aminobutyl) indole; Alpha-ET or AET.
  [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
names: DOET.
  [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
DOB; 2C-B, Nexus.
  [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
optical isomers, salts and salts of isomers.
  § 5. Section 3382 of the public health law, as added by chapter 878 of
the laws of 1972, is amended to read as follows:
  §  3382. Growing of the plant known as Cannabis by unlicensed persons.
A person who, without being licensed so to do under this article,  grows
the  plant  of  the genus Cannabis or knowingly allows it to grow on his
land without  destroying  the  same,  shall  be  guilty  of  a  class  A
misdemeanor,  UNLESS THE PERSON GROWS IN ACCORDANCE WITH SECTIONS 221.05
AND 221.05-A OF THE PENAL LAW.
  § 6. Paragraph (d) of subdivision 3, subdivision  3-a  and  paragraphs
(a)  and (b) of subdivision 11 of section 1311 of the civil practice law
and rules, paragraph (d) of subdivision three  and  subdivision  3-a  as
added  by  chapter 655 of the laws of 1990 and paragraphs (a) and (b) of
subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the
laws of 2010, are amended to read as follows:
  (d) In a forfeiture action commenced by a claiming authority against a
defendant,  the  following  rebuttable  presumption  shall  apply:   all
currency  or  negotiable  instruments  payable  to  the  bearer shall be

S. 3040--B                          8

presumed to be the proceeds of a pre-conviction  forfeiture  crime  when
such currency or negotiable instruments are (i) found in close proximity
to  a  controlled  substance unlawfully possessed by the defendant in an
amount  sufficient to constitute a violation of section 220.18 or 220.21
of the penal law, or (ii) found in close proximity to any quantity of  a
controlled substance [or marihuana] unlawfully possessed by such defend-
ant  in  a room, other than a public place, under circumstances evincing
an intent to unlawfully mix, compound, distribute, package or  otherwise
prepare for sale such controlled substance [or marihuana].
  3-a.  Conviction  of  a person in a criminal action upon an accusatory
instrument which includes one or  more  of  the  felonies  specified  in
subdivision  four-b  of section thirteen hundred ten of this article, of
any felony other than such felonies, shall not preclude a defendant,  in
any subsequent proceeding under this article where that conviction is at
issue, from adducing evidence that the conduct underlying the conviction
would  not  establish  the  elements of any of the felonies specified in
such subdivision other than the one to which the criminal defendant pled
guilty. If the defendant does adduce such evidence, the burden shall  be
upon  the claiming authority to prove, by clear and convincing evidence,
that the conduct underlying the criminal conviction would establish  the
elements  of the felony specified in such subdivision. Nothing contained
in this subdivision shall affect the validity of  a  settlement  of  any
forfeiture action negotiated between the claiming authority and a crimi-
nal defendant contemporaneously with the taking of a plea of guilty in a
criminal  action to any felony defined in article two hundred twenty [or
section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
commit the same.
  (a) Any stipulation or settlement agreement between the parties  to  a
forfeiture  action  shall  be filed with the clerk of the court in which
the forfeiture action is pending. No stipulation or settlement agreement
shall be accepted for filing unless it is accompanied  by  an  affidavit
from  the  claiming  authority that written notice of the stipulation or
settlement agreement, including the terms of such, has been given to the
office of victim  services,  the  state  division  of  criminal  justice
services[,  and in the case of a forfeiture based on a felony defined in
article two hundred twenty or section 221.30 or 221.55 of the penal law,
to the state division of substance abuse services].
  (b) No judgment or order of forfeiture shall be  accepted  for  filing
unless  it  is  accompanied  by an affidavit from the claiming authority
that written notice of judgment or order, including the terms  of  such,
has  been  given to the office of victim services, the state division of
criminal justice services[, and in the case of a forfeiture based  on  a
felony defined in article two hundred twenty or section 221.30 or 221.55
of the penal law, to the state division of substance abuse services].
  §  7.  Subdivision  1  of  section 3397-b of the public health law, as
added by chapter 810 of the laws of 1980, is amended to read as follows:
  1. ["Marijuana"] "MARIHUANA" means [marijuana] MARIHUANA as defined in
[section thirty-three hundred two of this chapter]  SUBDIVISION  SIX  OF
SECTION  220.00 OF THE PENAL LAW and shall also include tetrahydrocanna-
binols or a chemical derivative of tetrahydrocannabinol.
  § 8. Section 114-a of the vehicle and traffic law, as added by chapter
163 of the laws of 1973, is amended to read as follows:
  § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
includes any substance listed in section thirty-three hundred six of the
public  health law AND MARIHUANA AND CONCENTRATED CANNABIS AS DEFINED IN
SECTION 220.00 OF THE PENAL LAW.

S. 3040--B                          9

  § 9. Subdivisions 5, 6 and 9 of  section  220.00  of  the  penal  law,
subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
subdivisions 21 and 22 are added to read as follows:
  5.  "Controlled  substance"  means any substance listed in schedule I,
II, III, IV or V of section  thirty-three  hundred  six  of  the  public
health  law other than marihuana, but including concentrated cannabis as
defined in [paragraph (a) of subdivision four  of  section  thirty-three
hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
  6.  "Marihuana" means ["marihuana" or "concentrated cannabis" as those
terms are defined in section thirty-three  hundred  two  of  the  public
health  law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROW-
ING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF  THE
PLANT;  AND  EVERY  COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR
PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT DOES NOT  INCLUDE  THE
MATURE  STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR CAKE
MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANUFACTURE, SALT,
DERIVATIVE, MIXTURE, OR PREPARATION OF THE  MATURE  STALKS  (EXCEPT  THE
RESIN  EXTRACTED THEREFROM), FIBER, OIL, OR CAKE, OR THE STERILIZED SEED
OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE  ALL
PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO
MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC).
  9.  "Hallucinogen"  means any controlled substance listed in [schedule
I(d)] PARAGRAPHS (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
(19),  (20) AND (21) OF SUBDIVISION (D) OF SCHEDULE I OF SECTION THIRTY-
THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
  21. "CONCENTRATED CANNABIS" MEANS:
  (A) THE SEPARATED RESIN, WHETHER CRUDE OR PURIFIED,  OBTAINED  FROM  A
PLANT OF THE GENUS CANNABIS; OR
  (B)  A  MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND OR OTHER SUBSTANCE
WHICH CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9  TETRAHYDRO-
CANNABINOL,  OR  ITS  ISOMER,  DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR
DELTA-1 TETRAHYDROCANNABINOL OR ITS  ISOMER,  DELTA  1  (6)  MONOTERPENE
NUMBERING SYSTEM.
  22.  "MARIHUANA  PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS CONTAINING CONCENTRATED MARIHUANA OR CANNABIS
AND OTHER INGREDIENTS.
  § 10.  Subdivision 4 of section 220.06 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  4.  one  or  more  preparations,  compounds,  mixtures  or  substances
containing  concentrated cannabis as defined in [paragraph (a) of subdi-
vision four of section thirty-three hundred two  of  the  public  health
law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
preparations, compounds, mixtures or  substances  are  of  an  aggregate
weight of one-fourth ounce or more; or
  § 11. Subdivision 10 of section 220.09 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  10.  one  or  more  preparations,  compounds,  mixtures  or substances
containing concentrated cannabis as defined in [paragraph (a) of  subdi-
vision  four  of  section  thirty-three hundred two of the public health
law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE  and  said
preparations,  compounds,  mixtures  or  substances  are of an aggregate
weight of one ounce or more; or
  § 12. Subdivision 3 of section 220.34 of the penal law, as amended  by
chapter 537 of the laws of 1998, is amended to read as follows:

S. 3040--B                         10

  3.  concentrated  cannabis as defined in [paragraph (a) of subdivision
four of section thirty-three hundred  two  of  the  public  health  law]
SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
  §  13.  Section  220.50 of the penal law, as amended by chapter 627 of
the laws of 1990, is amended to read as follows:
§ 220.50 Criminally using drug paraphernalia in the second degree.
  A person is guilty of  criminally  using  drug  paraphernalia  in  the
second degree when he knowingly possesses or sells:
  1.  Diluents,  dilutants or adulterants, including but not limited to,
any of the following: quinine hydrochloride, mannitol, mannite,  lactose
or  dextrose,  adapted  for the dilution of narcotic drugs or stimulants
under circumstances evincing an intent to use,  or  under  circumstances
evincing  knowledge  that  some  person  intends  to  use,  the same for
purposes of unlawfully mixing, compounding, or otherwise  preparing  any
narcotic  drug or stimulant, OTHER THAN MARIHUANA OR CONCENTRATED CANNA-
BIS; or
  2. Gelatine capsules, glassine envelopes, vials, capsules or any other
material suitable for the packaging of individual quantities of narcotic
drugs or stimulants under circumstances evincing an intent  to  use,  or
under  circumstances evincing knowledge that some person intends to use,
the same for the  purpose  of  unlawfully  manufacturing,  packaging  or
dispensing  of  any  narcotic drug or stimulant, OTHER THAN MARIHUANA OR
CONCENTRATED CANNABIS; or
  3. Scales and balances used or designed for the purpose of weighing or
measuring controlled substances, under circumstances evincing an  intent
to  use,  or  under  circumstances  evincing  knowledge that some person
intends to use, the same for purpose of unlawfully manufacturing,  pack-
aging  or dispensing of any narcotic drug or stimulant, OTHER THAN MARI-
HUANA OR CONCENTRATED CANNABIS.
  Criminally using drug paraphernalia in the second degree is a class  A
misdemeanor.
  § 14.  Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
and 221.40 of the penal law are REPEALED.
  §  15.  The penal law is amended by adding two new sections 221.05 and
221.05-a to read as follows:
§ 221.05 PERSONAL USE OF MARIHUANA.
  1. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE  FOLLOWING
ACTS  ARE  LAWFUL UNDER STATE AND LOCAL LAW FOR PERSONS TWENTY-ONE YEARS
OF AGE AND OLDER:
  (A) POSSESSING, USING, BEING UNDER THE INFLUENCE, DISPLAYING, PURCHAS-
ING, OBTAINING, OR TRANSPORTING UP TO TWO POUNDS OF MARIHUANA  AND  FOUR
AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS;
  (B)  TRANSFERRING,  WITHOUT REMUNERATION, TO A PERSON TWENTY-ONE YEARS
OF AGE AND OLDER UP TO TWO POUNDS OF MARIHUANA  AND  FOUR  AND  ONE-HALF
OUNCES OF CONCENTRATED CANNABIS;
  (C)  POSSESSING, PLANTING, CULTIVATING, HARVESTING, DRYING, PROCESSING
OR TRANSPORTING NOT MORE THAN SIX LIVING MARIHUANA PLANTS AND POSSESSING
THE MARIHUANA PRODUCED BY THE PLANTS;
  (D) SMOKING, INGESTING OR OTHERWISE CONSUMING MARIHUANA PRODUCTS;
  (E) POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING,  MANUFACTUR-
ING,  TRANSPORTING OR GIVING AWAY TO PERSONS TWENTY-ONE YEARS OF AGE AND
OLDER MARIHUANA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND
  (F) ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE AND  OLDER
OR  ALLOW PROPERTY TO BE USED IN ANY OF THE ACTS DESCRIBED IN PARAGRAPHS
(A) THROUGH (E) OF THIS SUBDIVISION.

S. 3040--B                         11

  2. PARAGRAPH (E) OF SUBDIVISION ONE OF THIS  SECTION  IS  INTENDED  TO
MEET  THE REQUIREMENTS OF SUBSECTION (F) OF SECTION 863 OF TITLE TWENTY-
ONE OF THE UNITED STATES CODE (21 U.S.C.  §  863  (F))  BY  AUTHORIZING,
UNDER  STATE LAW, ANY PERSON IN COMPLIANCE WITH THIS SECTION TO MANUFAC-
TURE, POSSESS, OR DISTRIBUTE MARIHUANA PARAPHERNALIA.
  3.  MARIHUANA  PRODUCTS INVOLVED IN ANY WAY WITH CONDUCT DEEMED LAWFUL
BY THIS SECTION ARE NOT CONTRABAND NOR SUBJECT TO SEIZURE OR  FORFEITURE
OF  ASSETS  UNDER  ARTICLE  FOUR HUNDRED EIGHTY OF THIS CHAPTER, SECTION
THIRTEEN HUNDRED ELEVEN OF THE CIVIL PRACTICE LAW AND  RULES,  OR  OTHER
APPLICABLE  LAW,  AND  NO  CONDUCT  DEEMED  LAWFUL BY THIS SECTION SHALL
CONSTITUTE THE BASIS  FOR  APPROACH,  SEARCH,  SEIZURE,  ARREST,  AND/OR
DETENTION.
  4. (A) EXCEPT AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION, NONE OF
THE  FOLLOWING  SHALL,  INDIVIDUALLY  OR IN COMBINATION WITH EACH OTHER,
CONSTITUTE REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE IN ANY
CRIMINAL PROCEEDING:
  (1) THE ODOR OF MARIHUANA OR OF BURNT MARIHUANA;
  (2) THE POSSESSION OF OR THE  SUSPICION  OF  POSSESSION  OF  MARIHUANA
PRODUCTS;
  (3)  THE  POSSESSION  OF  MULTIPLE  CONTAINERS  OF  MARIHUANA  WITHOUT
EVIDENCE OF MARIHUANA QUANTITY IN EXCESS OF SIXTEEN  OUNCES  OR  CONCEN-
TRATED CANNABIS QUANTITY IN EXCESS OF FOUR AND ONE-HALF OUNCES; OR
  (4) THE PRESENCE OF CASH OR CURRENCY CANNOT BE USED AS EVIDENCE IN ANY
CASES INVOLVING CRIMINAL SALE OF MARIHUANA.
  (B)  THE POSSESSION OF UP TO TWO OUNCES OF MARIHUANA AND UP TO SIXTEEN
OUNCES OF MARIHUANA PRODUCTS CANNOT BE USED AS  EVIDENCE  IN  ANY  CASES
INVOLVING CRIMINAL SALE OF MARIHUANA.
  5.  SUBDIVISION  FOUR  OF  THIS  SECTION  SHALL  NOT  APPLY WHEN A LAW
ENFORCEMENT OFFICER IS INVESTIGATING WHETHER A PERSON IS OPERATING OR IN
PHYSICAL CONTROL OF A VEHICLE OR WATERCRAFT WHILE INTOXICATED, UNDER THE
INFLUENCE OF, OR IMPAIRED BY ALCOHOL OR A DRUG OR ANY COMBINATION THERE-
OF IN VIOLATION OF SECTION ELEVEN HUNDRED NINETY-TWO OF THE VEHICLE  AND
TRAFFIC LAW.
  6. POSSESSION OF GREATER THAN TWO POUNDS OF MARIHUANA AND GREATER THAN
FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS IS A VIOLATION PUNISH-
ABLE  BY  A  FINE  OF  NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER
OFFENSE.
§ 221.05-A PERSONAL CULTIVATION OF MARIHUANA.
  1. PERSONAL CULTIVATION OF MARIHUANA UNDER PARAGRAPH (C)  OF  SUBDIVI-
SION  ONE  OF SECTION 221.05 OF THIS ARTICLE IS SUBJECT TO THE FOLLOWING
RESTRICTIONS:
  (A) A PERSON SHALL PLANT, CULTIVATE, HARVEST, DRY, OR  PROCESS  PLANTS
IN  ACCORDANCE WITH LOCAL ORDINANCES, IF ANY, ADOPTED IN ACCORDANCE WITH
SUBDIVISION (2) OF THIS SECTION;
  (B) THE LIVING PLANTS AND ANY MARIHUANA  PRODUCED  BY  THE  PLANTS  IN
EXCESS  OF TWO POUNDS ARE KEPT WITHIN THE PERSON'S PRIVATE RESIDENCE, OR
UPON THE GROUNDS OF THAT PRIVATE RESIDENCE (E.G., IN AN  OUTDOOR  GARDEN
AREA),  ARE  IN  A  LOCKED  SPACE, AND ARE NOT VISIBLE BY NORMAL UNAIDED
VISION FROM A PUBLIC PLACE; AND
  (C) NOT MORE THAN  SIX  LIVING  PLANTS  MAY  BE  PLANTED,  CULTIVATED,
HARVESTED,  DRIED,  OR  PROCESSED  WITHIN A SINGLE PRIVATE RESIDENCE, OR
UPON THE GROUNDS OF THAT PRIVATE RESIDENCE, AT ONE TIME.
  2. (A) A LOCAL JURISDICTION MAY ENACT  AND  ENFORCE  REASONABLE  REGU-
LATIONS  TO REASONABLY REGULATE THE ACTIONS AND CONDUCT IN PARAGRAPH (C)
OF SUBDIVISION ONE OF SECTION 221.05 OF THIS ARTICLE,  PROVIDED  THAT  A

S. 3040--B                         12

VIOLATION  OF  SUCH  A  REGULATION  IS ONLY SUBJECT TO AN INFRACTION AND
FINE.
  (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, NO LOCAL JURIS-
DICTION  MAY  COMPLETELY  PROHIBIT  PERSONS  ENGAGING IN THE ACTIONS AND
CONDUCT UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION 221.05 OF THIS
ARTICLE.
  3. A VIOLATION OF  SUBDIVISION  ONE  OR  TWO  OF  THIS  SECTION  IS  A
VIOLATION  PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE
DOLLARS PER OFFENSE.
  § 16. Section 221.45 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.45 [Criminal] UNLICENSED sale of marihuana in the third degree.
  A person is guilty of [criminal] UNLICENSED sale of marihuana  in  the
third  degree when he knowingly and unlawfully sells [one or more prepa-
rations, compounds, mixtures or substances containing marihuana and  the
preparations,  compounds,  mixtures  or  substances  are of an aggregate
weight of more than twenty-five grams] NOT MORE THAN SIXTEEN  OUNCES  OF
MARIHUANA  OR  NOT  MORE  THAN  FOUR AND ONE-HALF OUNCES OF CONCENTRATED
CANNABIS, NOT INCLUDING THE WEIGHT OF ANY OTHER INGREDIENT COMBINED WITH
MARIHUANA TO PREPARE TOPICAL OR ORAL ADMINISTRATIONS,  FOOD,  DRINK,  OR
OTHER PRODUCT.
  [Criminal]  UNLICENSED  sale  of  marihuana  in the third degree is [a
class E felony] SUBJECT TO THE FOLLOWING:
  1. A VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWEN-
TY-FIVE DOLLARS, FOR A FIRST OFFENSE;
  2. A VIOLATION PUBLISHABLE BY A FINE OF  NOT  MORE  THAN  TWO  HUNDRED
FIFTY DOLLARS FOR A SECOND OFFENSE;
  3.  A  CLASS  B  MISDEMEANOR  AND A FINE OF NOT MORE THAN FIVE HUNDRED
DOLLARS FOR A THIRD OR SUBSEQUENT OFFENSE.
  § 17. Section 221.50 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.50 [Criminal] UNLICENSED sale of marihuana in the second degree.
  A person TWENTY-ONE YEARS OF AGE AND OLDER  is  guilty  of  [criminal]
UNLICENSED  sale of marihuana in the second degree when he knowingly and
unlawfully sells  one  or  more  preparations,  compounds,  mixtures  or
substances   containing   marihuana  and  the  preparations,  compounds,
mixtures or substances are of an aggregate  weight  of  more  than  four
ounces,  or  knowingly  and  unlawfully  sells one or more preparations,
compounds, mixtures [or substances containing  marihuana]  to  a  person
less than [eighteen] TWENTY-ONE years of age.
  [Criminal]  UNLICENSED  sale  of  marihuana  in the second degree is a
class [D] E felony.
  § 18. Section 221.55 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.55 [Criminal] UNLICENSED sale of marihuana in the first degree.
  A person is guilty of [criminal] UNLICENSED sale of marihuana  in  the
first  degree  when  he  knowingly and unlawfully sells TO A PERSON LESS
THAN TWENTY-ONE YEARS  OF  AGE  one  or  more  preparations,  compounds,
mixtures  or  substances  containing  marihuana  and  the  preparations,
compounds, mixtures or substances are of an  aggregate  weight  of  more
than sixteen ounces.
  [Criminal] UNLICENSED sale of marihuana in the first degree is a class
[C] E felony.

S. 3040--B                         13

  §  19. The penal law is amended by adding a new section 221.60 to read
as follows:
§ 221.60 LICENSING OF MARIHUANA PRODUCTION AND DISTRIBUTION.
  THE  PROVISIONS  OF  THIS ARTICLE AND OF ARTICLE TWO HUNDRED TWENTY OF
THIS TITLE SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM  CRIMINAL  PENAL-
TIES  PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING, MANUFAC-
TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING MARIHUANA OR
CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
ANCE WITH ARTICLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  § 20. Subdivision 8 of section 1399-n of the  public  health  law,  as
amended  by  chapter  13  of  the  laws  of  2003, is amended to read as
follows:
  8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
any  other  matter  or  substance  which  contains tobacco OR MARIHUANA;
PROVIDED THAT IT DOES NOT INCLUDE  THE  USE  OF  AN  ELECTRONIC  SMOKING
DEVICE  THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES
EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
  § 21. Section 2 of the alcoholic beverage control law, as  amended  by
chapter 406 of the laws of 2014, is amended to read as follows:
  §  2. Policy of state and purpose of chapter. It is hereby declared as
the policy of the state that it is necessary to regulate and control the
manufacture, sale and distribution within the state of alcoholic  bever-
ages  AND  MARIHUANA PRODUCTS for the purpose of fostering and promoting
temperance in their consumption and respect for and  obedience  to  law;
for  the  primary purpose of promoting the health, welfare and safety of
the people of the state, promoting  temperance  in  the  consumption  of
alcoholic beverages AND MARIHUANA PRODUCTS; and, to the extent possible,
supporting  economic  growth, job development, and the state's alcoholic
beverage production industries and its tourism and recreation  industry;
and  which  promotes  the conservation and enhancement of state agricul-
tural lands; provided that such activities  do  not  conflict  with  the
primary  regulatory  objectives  of  this chapter. It is hereby declared
that such policies will best be carried out  by  empowering  the  liquor
authority  of  the  state  to  determine  whether public convenience and
advantage will be promoted by the issuance of  licenses  to  traffic  in
alcoholic  beverages AND MARIHUANA PRODUCTS, the increase or decrease in
the number thereof  and  the  location  of  premises  licensed  thereby,
subject  only to the right of judicial review provided for in this chap-
ter. It is the purpose of this chapter to carry out  these  policies  in
the public interest.
  § 22. Subdivisions 20-a, 20-b, 20-c, 20-d and 20-e of section 3 of the
alcoholic  beverage  control law are renumbered subdivisions 20-j, 20-k,
20-l, 20-m and 20-n and ten new  subdivisions  7-e,  20-a,  20-b,  20-c,
20-d, 20-e, 20-f, 20-g, 20-h and 20-i are added to read as follows:
  7-E.  "CONCENTRATED  CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR
  (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
NUMBERING SYSTEM.
  20-A. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF THE GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,

S. 3040--B                         14

OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
(EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES
NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L.,  WHETHER  GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  20-B.  "MARIHUANA  CONSUMER" MEANS A PERSON TWENTY-ONE YEARS OF AGE OR
OLDER WHO PURCHASES MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE  BY
PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
  20-C.  "MARIHUANA  PROCESSOR" MEANS A PERSON LICENSED BY THE BUREAU TO
PURCHASE MARIHUANA AND CONCENTRATED CANNABIS FROM  MARIHUANA  PRODUCERS,
TO  PROCESS  MARIHUANA,  CONCENTRATED  CANNABIS,  AND  MARIHUANA INFUSED
PRODUCTS, PACKAGE AND LABEL MARIHUANA, CONCENTRATED CANNABIS  AND  MARI-
HUANA  INFUSED  PRODUCTS FOR SALE IN RETAIL OUTLETS, AND SELL MARIHUANA,
CONCENTRATED CANNABIS AND MARIHUANA INFUSED  PRODUCTS  AT  WHOLESALE  TO
MARIHUANA RETAILERS.
  20-D.  "MARIHUANA  PRODUCER"  MEANS A PERSON LICENSED BY THE BUREAU TO
PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED CANNABIS AT WHOLE-
SALE TO MARIHUANA PROCESSORS, MARIHUANA RETAILERS,  OR  OTHER  MARIHUANA
PRODUCERS, BUT NOT TO CONSUMERS.
  20-E. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  20-F.  "MARIHUANA-INFUSED  PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARI-
HUANA, MARIHUANA EXTRACTS, OR CONCENTRATED CANNABIS AND ARE INTENDED FOR
HUMAN USE OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE  PRODUCTS,
OINTMENTS, AND TINCTURES.
  20-G.  "MARIHUANA  RETAILER"  MEANS A PERSON LICENSED BY THE BUREAU TO
PURCHASE  MARIHUANA,  CONCENTRATED   CANNABIS,   AND   MARIHUANA-INFUSED
PRODUCTS  FROM  MARIHUANA  PRODUCERS  AND  MARIHUANA PROCESSORS AND SELL
MARIHUANA, MARIHUANA INFUSED PRODUCTS, AND CONCENTRATED  CANNABIS  IN  A
RETAIL OUTLET.
  20-H.  "MARIHUANA RETAILER FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
LICENSED BY THE BUREAU TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA INFUSED PRODUCTS FROM MARIHUANA PRODUCERS,  MARIHUANA  RETAIL-
ERS, AND MARIHUANA PROCESSORS AND SELL MARIHUANA PRODUCTS FOR A CUSTOMER
TO CONSUME WHILE THE CUSTOMER IS WITHIN A FACILITY.
  20-I.  "UNREASONABLY  IMPRACTICABLE" MEANS THAT THE MEASURES NECESSARY
TO COMPLY WITH THE REGULATIONS REQUIRE SUCH A HIGH INVESTMENT  OF  RISK,
MONEY, TIME OR OTHER RESOURCE OR ASSET THAT THE OPERATION OF A MARIHUANA
ESTABLISHMENT IS NOT WORTHY OF BEING CARRIED OUT BY A REASONABLY PRUDENT
BUSINESSPERSON.
  §  23.  Section 65-b of the alcoholic beverage control law, as amended
by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
2000, is amended to read as follows:
  §  65-b.  Offense for one under age of twenty-one years to purchase or
attempt to purchase an alcoholic beverage OR MARIHUANA PRODUCTS  through
fraudulent  means. 1.  As used in this section: (a) "A device capable of
deciphering any electronically readable format" or "device"  shall  mean
any  commercial device or combination of devices used at a point of sale
or entry that is capable of  reading  the  information  encoded  on  the
magnetic strip or bar code of a driver's license or non-driver identifi-
cation card issued by the commissioner of motor vehicles;

S. 3040--B                         15

  (b)  "Card  holder"  means any person presenting a driver's license or
non-driver identification card to a licensee, or to the agent or employ-
ee of such licensee under this chapter; and
  (c) "Transaction scan" means the process involving a device capable of
deciphering  any  electronically readable format by which a licensee, or
agent or employee of a licensee under this chapter  reviews  a  driver's
license  or  non-driver  identification card presented as a precondition
for the purchase of an  alcoholic  beverage  OR  MARIHUANA  PRODUCTS  as
required  by  subdivision  two  of this section or as a precondition for
admission to an establishment licensed for the on-premises sale of alco-
holic beverages OR MARIHUANA PRODUCTS where admission is  restricted  to
persons twenty-one years or older.
  2.  (a)  No  person under the age of twenty-one years shall present or
offer to any licensee under this chapter, or to the agent or employee of
such licensee, any written evidence of age which is false, fraudulent or
not actually his OR HER own, for the purpose of purchasing or attempting
to purchase any alcoholic beverage OR MARIHUANA PRODUCTS.
  (b) No licensee, or agent or employee of such licensee shall accept as
written evidence of age by any such person for the purchase of any alco-
holic beverage OR MARIHUANA PRODUCTS, any documentation other than:  (i)
a valid driver's license or non-driver identification card issued by the
commissioner  of  motor  vehicles,  the  federal  government, any United
States territory, commonwealth or possession, the District of  Columbia,
a  state  government within the United States or a provincial government
of the dominion of Canada, or (ii) a valid passport issued by the United
States government or any other country, or (iii) an identification  card
issued  by  the armed forces of the United States. Upon the presentation
of such driver's license or non-driver identification card issued  by  a
governmental  entity,  such  licensee  or  agent or employee thereof may
perform a transaction scan as a precondition to the sale of any alcohol-
ic beverage. Nothing in this section shall prohibit a licensee or  agent
or  employee from performing such a transaction scan on any of the other
documents listed in this subdivision if such  documents  include  a  bar
code or magnetic strip that [that] may be scanned by a device capable of
deciphering any electronically readable format.
  (c)  In  instances where the information deciphered by the transaction
scan fails to match the information printed on the driver's  license  or
non-driver  identification  card presented by the card holder, or if the
transaction scan indicates that the information is false or  fraudulent,
the  attempted  purchase of the alcoholic beverage OR MARIHUANA PRODUCTS
shall be denied.
  3. A person violating the provisions of paragraph (a)  of  subdivision
two  of  this  section  shall  be  guilty  of  a  violation and shall be
sentenced in accordance with the following:
  (a) For a first violation, the court shall order payment of a fine  of
not more than one hundred dollars and/or an appropriate amount of commu-
nity  service  not  to  exceed  thirty hours. In addition, the court may
order completion of an alcohol awareness program established pursuant to
section 19.25 of the mental hygiene law  OR  OF  A  MARIHUANA  AWARENESS
PROGRAM.
  (b) For a second violation, the court shall order payment of a fine of
not  less  than  fifty dollars nor more than three hundred fifty dollars
and/or an appropriate amount of community service not  to  exceed  sixty
hours.  The court also shall order completion of an alcohol OR MARIHUANA
awareness program as referenced in paragraph (a) of this subdivision  if
such  program  has not previously been completed by the offender, unless

S. 3040--B                         16

the court determines that attendance at such program is not feasible due
to the lack of availability of such program within  a  reasonably  close
proximity to the locality in which the offender resides or matriculates,
as appropriate.
  (c) For third and subsequent violations, the court shall order payment
of  a  fine  of  not less than fifty dollars nor more than seven hundred
fifty dollars and/or an appropriate amount of community service  not  to
exceed  ninety hours. The court also shall order that such person submit
to an evaluation by an appropriate agency certified or licensed  by  the
office  of  alcoholism and substance abuse services to determine whether
the person suffers from the disease of alcoholism or alcohol OR MARIHUA-
NA abuse, unless the  court  determines  that  under  the  circumstances
presented  such  an evaluation is not necessary, in which case the court
shall state on the record the basis for such determination. Payment  for
such  evaluation  shall be made by such person. If, based on such evalu-
ation, a need for treatment is indicated,  such  person  may  choose  to
participate  in  a  treatment  plan  developed by an agency certified or
licensed by the office of alcoholism and substance  abuse  services.  If
such  person  elects  to participate in recommended treatment, the court
shall order that payment of such fine and community service be suspended
pending the completion of such treatment.
  (d) Evaluation procedures.  For  purposes  of  this  subdivision,  the
following shall apply:
  (i)  The  contents  of an evaluation pursuant to paragraph (c) of this
subdivision shall be used for the sole purpose of [determining  if  such
person suffers from the disease of alcoholism or alcohol abuse] DIAGNOS-
ING SUCH PERSON WITH ALCOHOL OR CANNABIS USE DISORDER.
  (ii)  The  agency  designated  by the court to perform such evaluation
shall conduct the evaluation and return the results to the court  within
thirty  days,  subject to any state or federal confidentiality law, rule
or regulation governing the confidentiality  of  alcohol  and  substance
abuse treatment records.
  (iii) The office of alcoholism and substance abuse services shall make
available  to  each  supreme  court law library in this state, or, if no
supreme court law library is available in a certain county, to the coun-
ty court law library of such county, a list  of  agencies  certified  to
perform  evaluations  as required by subdivision (f) of section 19.07 of
the mental hygiene law.
  (iv) All evaluations required under this subdivision shall be in writ-
ing and the person so evaluated or his or her counsel  shall  receive  a
copy of such evaluation prior to its use by the court.
  (v)  A minor evaluated under this subdivision shall have, and shall be
informed by the court of, the right to obtain a second opinion regarding
his or her need for alcoholism OR SUBSTANCE USE DISORDER treatment.
  4. A person violating the provisions of paragraph (b)  of  subdivision
two  of this section shall be guilty of a violation punishable by a fine
of not more than one hundred dollars, and/or an  appropriate  amount  of
community service not to exceed thirty hours. In addition, the court may
order  completion  of  an  alcohol OR SUBSTANCE ABUSE training awareness
program established pursuant to subdivision twelve of section  seventeen
of  this chapter where such program is located within a reasonably close
proximity to the locality in which the offender is employed or resides.
  5. No determination of guilt pursuant to this section shall operate as
a disqualification of  any  such  person  subsequently  to  hold  public
office,  public employment, or as a forfeiture of any right or privilege

S. 3040--B                         17

or to receive any license granted  by  public  authority;  and  no  such
person shall be denominated a criminal by reason of such determination.
  6.  In  addition  to  the  penalties otherwise provided in subdivision
three of this section, if a determination is made sustaining a charge of
illegally purchasing or attempting to illegally  purchase  an  alcoholic
beverage  OR  MARIHUANA  PRODUCTS,  the  court may suspend such person's
license to drive a motor vehicle and  the  privilege  of  an  unlicensed
person  of  obtaining such license, in accordance with the following and
for the following periods, if it is found that a  driver's  license  was
used  for  the  purpose of such illegal purchase or attempt to illegally
purchase; provided, however, that where a person is  sentenced  pursuant
to  paragraph (b) or (c) of subdivision three of this section, the court
shall impose such license suspension if it  is  found  that  a  driver's
license  was used for the purpose of such illegal purchase or attempt to
illegally purchase:
  (a) For a first violation of paragraph (a) of subdivision two of  this
section, a three month suspension.
  (b) For a second violation of paragraph (a) of subdivision two of this
section, a six month suspension.
  (c)  For  a third or subsequent violation of paragraph (a) of subdivi-
sion two of this section, a suspension for one year or until the  holder
reaches the age of twenty-one, whichever is the greater period of time.
  Such  person  may  thereafter apply for and be issued a restricted use
license in accordance with the provisions of section five hundred thirty
of the vehicle and traffic law.
  7. (a) In any  proceeding  pursuant  to  subdivision  one  of  section
sixty-five of this article, it shall be an affirmative defense that such
person had produced a driver's license or non-driver identification card
apparently  issued  by a governmental entity, successfully completed the
transaction scan, and that the alcoholic beverage OR MARIHUANA  PRODUCTS
had  been sold, delivered or given to such person in reasonable reliance
upon such identification and transaction scan. In evaluating the  appli-
cability  of  such  affirmative defense, the liquor authority shall take
into consideration any written policy adopted  and  implemented  by  the
seller to carry out the provisions of this chapter. Use of a transaction
scan  shall  not  excuse  any  licensee  under this chapter, or agent or
employee of such licensee, from the  exercise  of  reasonable  diligence
otherwise   required   by   this   section.  Notwithstanding  the  above
provisions, any such affirmative defense shall not be applicable in  any
other civil or criminal proceeding, or in any other forum.
  (b)  A  licensee or agent or employee of a licensee may electronically
or mechanically record and maintain only the information from  a  trans-
action  scan  necessary to effectuate the purposes of this section. Such
information shall be limited to the following: (i) name,  (ii)  date  of
birth,  (iii)  driver's license or non-driver identification number, and
(iv) expiration date. The liquor authority and the state commissioner of
motor vehicles shall jointly  promulgate  any  regulation  necessary  to
govern  the  recording  and  maintenance  of these records by a licensee
under this chapter. The liquor authority and the commissioner of  health
shall  jointly  promulgate  any  regulations necessary to ensure quality
control in the use of transaction scan devices.
  8. A licensee or agent or employee of such licensee shall only use the
information recorded and maintained through the use of such devices  for
the  purposes  contained  in  paragraph (a) of subdivision seven of this
section, and shall only use such devices for the purposes  contained  in
subdivision  two  of this section. No licensee or agent or employee of a

S. 3040--B                         18

licensee shall resell or disseminate  the  information  recorded  during
such  scan  to any third person. Such prohibited resale or dissemination
includes, but is not limited to, any advertising,  marketing  or  promo-
tional  activities.  Notwithstanding  the  restrictions  imposed by this
subdivision, such records may be released pursuant to  a  court  ordered
subpoena  or  pursuant to any other statute that specifically authorizes
the release of such information.  Each  violation  of  this  subdivision
shall  be  punishable  by  a civil penalty of not more than one thousand
dollars.
  § 24. Section 65-c of the alcoholic beverage control law, as added  by
chapter  592  of  the  laws  of  1989, paragraph (a) of subdivision 2 as
amended by chapter 409 of the laws of 2016 and subdivision 3 as  amended
by chapter 137 of the laws of 2001, is amended to read as follows:
  § 65-c. Unlawful  possession  of  an  alcoholic  beverage OR MARIHUANA
PRODUCT with the intent to consume by persons under the age  of  twenty-
one years. 1. Except as hereinafter provided, no person under the age of
twenty-one years shall possess any alcoholic beverage OR MARIHUANA PROD-
UCT,  as defined in this chapter, with the intent to consume such bever-
age OR MARIHUANA PRODUCT.
  2. A person under the age of twenty-one years may possess any alcohol-
ic beverage OR MARIHUANA PRODUCT with intent to consume if the alcoholic
beverage OR MARIHUANA PRODUCT is given:
  (a) to a person who is a student in a curriculum  licensed  or  regis-
tered  by  the state education department and the student is required to
taste or imbibe alcoholic beverages OR MARIHUANA PRODUCTS  in  on-campus
or  off-campus  courses  which  are  a  part of the required curriculum,
provided such alcoholic beverages OR MARIHUANA PRODUCTS  are  used  only
for  instructional  purposes  during  class  conducted  pursuant to such
curriculum; or
  (b) to the person under twenty-one  years  of  age  by  that  person's
parent or guardian.
  3.  Any person who unlawfully possesses an alcoholic beverage OR MARI-
HUANA PRODUCT with intent to consume may be summoned before and examined
by a court having jurisdiction of that charge; provided,  however,  that
nothing  contained herein shall authorize, or be construed to authorize,
a peace officer as defined in subdivision thirty-three of  section  1.20
of the criminal procedure law or a police officer as defined in subdivi-
sion  thirty-four  of  section  1.20  of such law to arrest a person who
unlawfully possesses an alcoholic beverage  OR  MARIHUANA  PRODUCT  with
intent to consume. If a determination is made sustaining such charge the
court may impose a fine not exceeding fifty dollars and/or completion of
an  alcohol  OR  DRUG  awareness program established pursuant to section
19.25 of the mental hygiene law and/or an appropriate amount of communi-
ty service not to exceed thirty hours.
  4. No such determination shall operate as a  disqualification  of  any
such person subsequently to hold public office, public employment, or as
a forfeiture of any right or privilege or to receive any license granted
by  public authority; and no such person shall be denominated a criminal
by reason of such determination, nor shall such determination be  deemed
a conviction.
  5.  Whenever a peace officer as defined in subdivision thirty-three of
section 1.20 of the criminal procedure law or police officer as  defined
in subdivision thirty-four of section 1.20 of the criminal procedure law
shall  observe  a  person  under  twenty-one  years  of  age  openly  in
possession of an alcoholic beverage OR MARIHUANA PRODUCT as  defined  in
this  chapter,  with  the  intent to consume such beverage OR PRODUCT in

S. 3040--B                         19

violation of this section, said officer may seize the beverage OR  PROD-
UCT, and shall deliver it to the custody of his or her department.
  6.  Any alcoholic beverage OR MARIHUANA PRODUCT seized in violation of
this section is hereby declared a nuisance. The  official  to  whom  the
beverage OR PRODUCT has been delivered shall, no earlier than three days
following the return date for initial appearance on the summons, dispose
of  or  destroy  the  alcoholic  beverage OR MARIHUANA PRODUCT seized or
cause it to be disposed of or destroyed.  Any person claiming  ownership
of  an alcoholic beverage OR MARIHUANA PRODUCT seized under this section
may, on the initial return date of the summons or earlier on  five  days
notice  to  the  official or department in possession of the beverage OR
PRODUCT, apply to the court for an order preventing the  destruction  or
disposal  of  the  alcoholic  beverage  OR  MARIHUANA PRODUCT seized and
ordering the return of that beverage OR PRODUCT.   The court  may  order
the  beverage OR PRODUCT returned if it is determined that return of the
beverage OR PRODUCT would be in the interest  of  justice  or  that  the
beverage OR PRODUCT was improperly seized.
  §  25.  The  alcoholic beverage control law is amended by adding a new
section 65-e to read as follows:
  § 65-E. RESTRICTIONS ON PERSONAL CONSUMPTION OF MARIHUANA. 1.  NOTHING
IN SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW SHALL BE  CONSTRUED  TO
PERMIT ANY PERSON TO:
  (A) SMOKE MARIHUANA IN PUBLIC;
  (B)  SMOKE  MARIHUANA  PRODUCTS IN A LOCATION WHERE SMOKING TOBACCO IS
PROHIBITED PURSUANT TO SECTION THIRTEEN  HUNDRED  NINETY-NINE-O  OF  THE
PUBLIC HEALTH LAW;
  (C) POSSESS, SMOKE OR INGEST MARIHUANA PRODUCTS IN OR UPON THE GROUNDS
OF  ANY  SCHOOL  PROPERTY  USED FOR SCHOOL PURPOSES WHICH IS OWNED BY OR
LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE CHIL-
DREN ARE PRESENT; OR
  (D) SMOKE OR INGEST MARIHUANA  PRODUCTS  WHILE  DRIVING,  OPERATING  A
MOTOR  VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR TRANS-
PORTATION.
  2. FOR PURPOSES OF THIS SECTION:
  (A) "SMOKE" MEANS TO INHALE, EXHALE, BURN, OR  CARRY  ANY  LIGHTED  OR
HEATED  DEVICE  OR  PIPE,  OR  ANY  OTHER LIGHTED OR HEATED MARIHUANA OR
CONCENTRATED CANNABIS PRODUCT INTENDED FOR INHALATION,  WHETHER  NATURAL
OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.
  (B)  "SMOKE"  DOES NOT INCLUDE THE USE OF AN ELECTRONIC SMOKING DEVICE
THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES  EXTEND
PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
  3.  VIOLATIONS OF THE RESTRICTIONS UNDER THIS SECTION ARE SUBJECT TO A
FINE NOT EXCEEDING TWENTY-FIVE  DOLLARS  OR  AN  APPROPRIATE  AMOUNT  OF
COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
  § 26. Section 140 of the alcoholic beverage control law, as amended by
chapter 810 of the laws of 1981, is amended to read as follows:
  § 140. Applicability  of chapter before local option.  Until such time
as it shall become unlawful to sell  alcoholic  beverages  OR  MARIHUANA
PRODUCTS  in  any town or city by the vote of the voters in such town or
city in the manner provided in this article, all of  the  provisions  of
this chapter shall apply throughout the entire state. This article shall
not  apply  to the Whiteface mountain ski center, owned by the state and
located in the town of Wilmington, county of Essex.
  § 27. Section 141 of the alcoholic beverage control law, as amended by
chapter 319 of the laws of 2007, is amended to read as follows:

S. 3040--B                         20

  § 141. Local option for towns. 1. Not less than sixty  days  nor  more
than  seventy-five days before the general election in any town at which
the submission of the questions hereinafter stated is authorized by this
article, a petition signed by electors of the town to a number amounting
to  twenty-five per centum of the votes cast in the town for governor at
the then last preceding  gubernatorial  election,  acknowledged  by  the
signers or authenticated by witnesses as provided in the election law in
respect  of  a  nominating  petition,  requesting the submission at such
election to the electors of the town of one or  more  of  the  following
questions, may be filed with the town clerk:
  Question  1.  Tavern  alcoholic  beverage  license.  Shall a person be
allowed to obtain a license to operate a tavern with  a  limited-service
menu (sandwiches, salads, soups, etc.) which permits the tavern operator
to  sell  alcoholic beverages for a customer to drink while the customer
is within the tavern. In addition, unopened containers of beer (such  as
six-packs  and  kegs)  may  be sold "to go" for the customer to open and
drink at another location (such as, for example, at his home)?
  Question 2. Restaurant alcoholic beverage license. Shall the  operator
of  a  full-service  restaurant  be  allowed  to  obtain a license which
permits the restaurant  operator  to  sell  alcoholic  beverages  for  a
customer  to drink while the customer is within the restaurant. In addi-
tion, unopened containers of beer (such as six-packs and  kegs)  may  be
sold  "to  go"  for  the  customer to open and drink at another location
(such as, for example, at his home)?
  Question 3. Year-round hotel alcoholic  beverage  license.  Shall  the
operator of a year-round hotel with a full-service restaurant be allowed
to obtain a license which permits the year-round hotel to sell alcoholic
beverages  for  a  customer  to  drink  while the customer is within the
hotel. In addition, unopened containers of beer (such as  six-packs  and
kegs)  may be sold "to go" for the customer to open and drink at another
location (such as, for example, at his home)?
  Question 4. Summer hotel alcoholic beverage license. Shall the  opera-
tor  of a summer hotel with a full-service restaurant, open for business
only within the period from May first to October  thirty-first  in  each
year,  be  allowed to obtain a license which permits the summer hotel to
sell alcoholic beverages for a customer to drink while the  customer  is
within  the  hotel.  In  addition,  unopened containers of beer (such as
six-packs and kegs) may be sold "to go" for the  customer  to  open  and
drink at another location (such as, for example, at his home)?
  Question  5.  Retail  package  liquor  or  wine store license. Shall a
person be allowed to obtain  a  license  to  operate  a  retail  package
liquor-and-wine  or  wine-without-liquor store, to sell "to go" unopened
bottles of liquor or wine to a customer to be taken from the  store  for
the  customer  to open and drink at another location (such as, for exam-
ple, at his home)?
  Question 6. Off-premises beer and wine cooler license. Shall the oper-
ator of a grocery store, drugstore  or  supply  ship  operating  in  the
harbors  of  Lake  Erie be allowed to obtain a license which permits the
operator to sell "to go" unopened containers of beer (such as  six-packs
and  kegs)  and wine coolers with not more than 6% alcohol to a customer
to be taken from the store for the customer to open and drink at another
location (such as, for example, at his home)?
  Question 7.  Baseball  park,  racetrack,  athletic  field  or  stadium
license.    Shall  a person be allowed to obtain a license which permits
the sale of beer for a patron's consumption while the patron is within a

S. 3040--B                         21

baseball park, racetrack, or  other  athletic  field  or  stadium  where
admission fees are charged?
  QUESTION  8.  MARIHUANA RETAILER LICENSE. SHALL A PERSON BE ALLOWED TO
OBTAIN A LICENSE TO OPERATE A RETAIL MARIHUANA STORE, TO  SELL  UNOPENED
MARIHUANA  PRODUCTS  TO  A  CUSTOMER  TO BE TAKEN FROM THE STORE FOR THE
CUSTOMER TO OPEN AND CONSUMER AT ANOTHER LOCATION (SUCH AS, FOR EXAMPLE,
AT HIS HOME)?
  QUESTION 9. ON-PREMISES MARIHUANA RETAILER LICENSES. SHALL A PERSON BE
ALLOWED TO OBTAIN A LICENSE TO OPERATE A FACILITY WHERE THE  SERVICE  OF
FOOD  IS ONLY INCIDENTAL AND PERMITS THE FACILITY OPERATOR TO SELL MARI-
HUANA PRODUCTS FOR A CUSTOMER TO CONSUMER WHILE THE CUSTOMER  IS  WITHIN
THE FACILITY?
  2.  Upon  the due filing of such petition complying with the foregoing
provisions, such questions shall be submitted in accordance therewith.
  3. The town clerk shall, within five days  from  the  filing  of  such
petition  in  his office, prepare and file in the office of the board of
elections, as defined by the election law, of the  county,  a  certified
copy  of such petition. Such questions may be submitted only at the time
of a general election. At least ten days before such  general  election,
the  board of elections shall cause to be printed and posted in at least
four public places in such town, a notice of the fact that  all  of  the
local  option  questions  will be voted on at such general election; and
the said notice shall also be published at least five  days  before  the
vote is to be taken once in a newspaper published in the county in which
such town is situated, which shall be a newspaper published in the town,
if  there  be one. Whenever such questions are to be submitted under the
provisions of this article the board of elections shall cause the proper
ballot labels to be printed and placed on all voting  machines  used  in
the  town  in  which  such  questions  are  to be submitted, in the form
prescribed by the election law in respect of other propositions or ques-
tions, upon the face of which shall be printed in full  the  said  ques-
tions.  Any  elector qualified to vote for state officers shall be enti-
tled to vote upon such local option questions. As soon as  the  election
shall  be  held, a return of the votes cast and counted shall be made as
provided by law and the returns canvassed by the inspectors of election.
If a majority of the votes cast shall be in the negative on all  or  any
of  the  questions, no person shall, after such election, sell alcoholic
beverages OR MARIHUANA PRODUCTS in such town contrary to such vote or to
the provisions of this chapter; provided, however, that  the  result  of
such vote shall not shorten the term for which any license may have been
lawfully  issued under this chapter or affect the rights of the licensee
thereunder; and no person shall after such vote apply for or  receive  a
license  to  sell alcoholic beverages OR MARIHUANA PRODUCTS at retail in
such town contrary to such vote, until,  by  referendum  as  hereinafter
provided for, such sale shall again become lawful.
  §  28.  Subdivision 3 of section 142 of the alcoholic beverage control
law is amended to read as follows:
  3. If a majority of the votes cast shall be in the negative on any  or
all  of  the questions, no person shall, after such election, sell alco-
holic beverages OR MARIHUANA PRODUCTS in such city contrary to such vote
or to the provisions of this chapter; provided, however, that the result
of such vote shall not shorten the term for which any license  may  have
been  lawfully  issued  under  this  chapter or affect the rights of the
licensee thereunder; and no person shall after such vote  apply  for  or
receive  a  license to sell alcoholic beverages OR MARIHUANA PRODUCTS at

S. 3040--B                         22

retail in such city contrary to such vote, until, by referendum as here-
inafter provided for, such sale shall again become lawful.
  §  29.  Subdivision 2 of section 147 of the alcoholic beverage control
law is amended to read as follows:
  2. If at the time of any subsequent submission of  such  questions  it
shall  be lawful to sell alcoholic beverages OR MARIHUANA PRODUCTS and a
majority of the votes cast shall be in the negative on  such  questions,
then  all  of  the  provisions  of this article applicable thereto shall
become effective.
  § 30. Article 11 and sections 160, 161, 162, 163 and 164 of the  alco-
holic  beverage  control  law, article 11 and sections 160, 161, 162 and
163 as renumbered by chapter 725 of the laws  of  1954,  are  renumbered
article 12 and sections 200, 201, 202, 203, and 204.
  §  31.  The  alcoholic beverage control law is amended by adding a new
article 11 to read as follows:
                                ARTICLE 11
                    PROVISIONS RELATING TO MARIHUANA
SECTION 165. DEFINITIONS.
        166. BUREAU OF MARIHUANA POLICY.
        167. ADMINISTRATION OF THE BUREAU OF MARIHUANA POLICY.
        168. LICENSES ISSUED.
        169. LICENSING LIMITS.
        170. ACTIONS TAKEN PURSUANT TO A VALID LICENSE ARE LAWFUL.
        171. GENERAL PROHIBITIONS AND RESTRICTIONS.
        172. CERTAIN OFFICIALS NOT TO BE INTERESTED IN  THE  MANUFACTURE
               OR SALE OF MARIHUANA.
        173. PROVISIONS GOVERNING INITIAL RULEMAKING.
        174. PROVISIONS GOVERNING MARIHUANA PRODUCERS.
        175. PROVISIONS GOVERNING PROCESSORS.
        176. PROVISIONS GOVERNING MARIHUANA RETAILERS.
        177. PROVISIONS    GOVERNING   MARIHUANA   ON-SITE   CONSUMPTION
               LICENSES.
        178. ADVERTISING AND FORMS OF THE ISSUANCE OF LICENSES.
        179. PACKAGING OF MARIHUANA PRODUCTS.
        180. LABELING OF MARIHUANA PRODUCTS.
        181. SEED TO SALE TRACKING.
        182. RENEWALS OF LICENSES AND PERMITS.
        183. INFORMATION TO BE PROVIDED BY APPLICANTS.
        184. NOTIFICATION TO MUNICIPALITIES.
        185. LICENSES, PUBLICATION, GENERAL PROVISIONS.
        186. REVOCATION OF LICENSES FOR CAUSE.
        187. PROCEDURE FOR REVOCATION OR CANCELLATION.
        188. DECISIONS OF THE BUREAU OF MARIHUANA POLICY AND  REVIEW  BY
               THE COURTS.
        189. MINORITY AND WOMEN BUSINESS ENTERPRISES.
        190. DISPOSITION OF MONEYS RECEIVED FOR LICENSE FEES.
        191. PERSONS FORBIDDEN TO TRAFFIC IN MARIHUANA.
        192. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS.
        193. AUTHORITY TO PROMULGATE RULES AND REGULATIONS.
        194. PROTECTIONS FOR THE USE OF MARIHUANA.
        195. DISCRIMINATION  PROTECTIONS  FOR  THE  USE  OF MARIHUANA OR
               MEDICAL MARIHUANA.
        196. EMPLOYMENT PROTECTIONS.
        197. PROTECTIONS FOR PERSONS UNDER STATE SUPERVISION.
        198. PROFESSIONAL AND MEDICAL RECORD KEEPING.

S. 3040--B                         23

  § 165. DEFINITIONS. WHENEVER USED IN THIS CHAPTER, UNLESS THE  CONTEXT
REQUIRES OTHERWISE:
  1.  "APPLICANT" MEANS AN OWNER APPLYING FOR A LICENSE PURSUANT TO THIS
ARTICLE.
  2."BUREAU" MEANS THE BUREAU OF MARIHUANA POLICY WITHIN THE AUTHORITY.
  3. "COMMERCIAL MARIHUANA ACTIVITY" MEANS THE  PRODUCTION,  PROCESSING,
POSSESSION,  STORING, LABORATORY TESTING, PACKAGING, LABELING, TRANSPOR-
TATION, DELIVERY,  OR  SALE  OF  MARIHUANA  AND  MARIHUANA  PRODUCTS  AS
PROVIDED FOR IN THIS ARTICLE.
  4. "CUSTOMER" MEANS A NATURAL PERSON TWENTY-ONE YEARS OF AGE OR OLDER.
  5.  "DELIVERY"  MEANS  A  LICENSEE  THAT DELIVERS RETAIL MARIHUANA AND
MARIHUANA PRODUCTS TO CUSTOMERS. RETAILER  LICENSEES  AND  MICROBUSINESS
LICENSEES  ARE  PERMITTED  TO  DELIVER  RETAIL  MARIHUANA  AND MARIHUANA
PRODUCTS  TO  CUSTOMERS  WITHOUT  OBTAINING  AN  ADDITIONAL  DISTRIBUTOR
LICENSE.
  6.  "DISTRIBUTION" MEANS THE PROCUREMENT, SALE, AND TRANSPORT OF MARI-
HUANA AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO  THIS
ARTICLE.
  7.  "DISTRIBUTOR"  MEANS  A LICENSEE FOR THE DISTRIBUTION OF MARIHUANA
AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS  ARTI-
CLE.   PRODUCER LICENSEES, PROCESSOR LICENSEES, AND MICROBUSINESS LICEN-
SEES ARE  PERMITTED  TO  DISTRIBUTE  MARIHUANA  AND  MARIHUANA  PRODUCTS
BETWEEN  ENTITIES LICENSED PURSUANT TO THIS ARTICLE WITHOUT OBTAINING AN
ADDITIONAL DISTRIBUTOR LICENSE.
  8. "LABELING" MEANS ANY LABEL OR OTHER WRITTEN,  PRINTED,  OR  GRAPHIC
MATTER  UPON  A  MARIHUANA PRODUCT, OR UPON ITS CONTAINER OR WRAPPER, OR
THAT ACCOMPANIES ANY MARIHUANA PRODUCT.
  9. "LICENSE" MEANS A STATE LICENSE ISSUED  UNDER  THIS  ARTICLE.  EACH
LICENSE ISSUED PURSUANT TO THIS ARTICLE CORRESPONDS TO A SINGLE PLACE OF
BUSINESS.
  10. "LICENSEE" MEANS ANY PERSON OR ENTITY HOLDING A LICENSE UNDER THIS
ARTICLE.
  11.  "MARIHUANA"  MEANS  ALL PARTS OF THE PLANT OF THE GENUS CANNABIS,
WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM  ANY
PART  OF  THE  PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT  DOES  NOT
INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
(EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES
NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA I.,  WHETHER  GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  12.  "MARIHUANA  PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  13. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN  MARIHUA-
NA,  MARIHUANA  EXTRACTS,  OR CONCENTRATED CANNABIS AND ARE INTENDED FOR
HUMAN USE OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE  PRODUCTS,
OINTMENTS, AND TINCTURES.
  14.  "MICROBUSINESS"  MEANS  A  LICENSEE  THAT  MAY ACT AS A MARIHUANA
PRODUCER FOR THE CULTIVATION OF MARIHUANA ON AN AREA LESS THAN TEN THOU-
SAND SQUARE FEET, A MARIHUANA PROCESSOR, AND A MARIHUANA RETAILER  UNDER
THIS  ARTICLE,  PROVIDED  SUCH  LICENSEE  COMPLIES WITH ALL REQUIREMENTS
IMPOSED BY THIS ARTICLE ON LICENSED PRODUCERS, PROCESSORS, AND RETAILERS
TO THE EXTENT THE LICENSEE ENGAGES IN SUCH ACTIVITIES. A "MICROBUSINESS"

S. 3040--B                         24

MAY DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED  MARI-
HUANA  BUSINESSES  AND  MAY  DELIVER MARIHUANA AND MARIHUANA PRODUCTS TO
CUSTOMERS.
  15.  "NURSERY"  MEANS  A  LICENSEE THAT PRODUCES ONLY CLONES, IMMATURE
PLANTS, SEEDS, AND OTHER AGRICULTURAL PRODUCTS USED SPECIFICALLY FOR THE
PLANTING, PROPAGATION, AND CULTIVATION OF MARIHUANA.
  16. "ONSITE CONSUMPTION" MEANS A MARIHUANA RETAIL LICENSEE OR A  MARI-
HUANA  MICROBUSINESS THAT PERMITS THE CONSUMPTION OF MARIHUANA AND MARI-
HUANA PRODUCTS AT THE LICENSEE'S PLACE OF BUSINESS.
  17. "OWNER" MEANS AN INDIVIDUAL WITH AN AGGREGATE  OWNERSHIP  INTEREST
OF  TWENTY  PERCENT OR MORE IN A MARIHUANA BUSINESS LICENSED PURSUANT TO
THIS ARTICLE, UNLESS SUCH INTEREST IS SOLELY A SECURITY, LIEN, OR ENCUM-
BRANCE, OR AN INDIVIDUAL THAT WILL BE PARTICIPATING  IN  THE  DIRECTION,
CONTROL, OR MANAGEMENT OF THE LICENSED MARIHUANA BUSINESS.
  18. "PACKAGE" MEANS ANY CONTAINER OR RECEPTACLE USED FOR HOLDING MARI-
HUANA OR MARIHUANA PRODUCTS.
  19.  "PROCESSOR"  MEANS  A  LICENSEE THAT COMPOUNDS, BLENDS, EXTRACTS,
INFUSES, OR OTHERWISE MAKES OR PREPARES MARIHUANA PRODUCTS, BUT NOT  THE
PRODUCTION  OF  THE  MARIHUANA  CONTAINED  IN  THE  MARIHUANA PRODUCT. A
"PROCESSOR" MAY ALSO DISTRIBUTE  MARIHUANA  AND  MARIHUANA  PRODUCTS  TO
OTHER LICENSED MARIHUANA BUSINESSES.
  20.  "PRODUCER"  MEANS A LICENSEE THAT PLANTS, GROWS, HARVESTS, DRIES,
CURES, GRADES, OR TRIMS MARIHUANA.  A  "PRODUCER"  MAY  ALSO  DISTRIBUTE
MARIHUANA TO OTHER LICENSED MARIHUANA BUSINESSES.
  21.  "RETAILER"  MEANS  A  LICENSEE  THAT SELLS MARIHUANA OR MARIHUANA
PRODUCTS DIRECTLY TO CUSTOMERS. A "RETAILER" MAY DELIVER  MARIHUANA  AND
MARIHUANA PRODUCTS TO CUSTOMERS.
  22. "TESTING FACILITY" MEANS A LICENSEE THAT TESTS MARIHUANA AND MARI-
HUANA PRODUCTS.
  §  166. BUREAU OF MARIHUANA POLICY. THERE IS HEREBY ESTABLISHED IN THE
AUTHORITY A BUREAU OF MARIHUANA POLICY.  THE  BUREAU  SHALL  CONSIST  OF
THREE  MEMBERS.  THE  MEMBERS  OF  THE  BUREAU SHALL BE APPOINTED BY THE
GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF THE SENATE. NOT MORE THAN
TWO MEMBERS OF THE BUREAU SHALL BELONG TO THE SAME POLITICAL PARTY.  THE
CHAIRMAN  OF  THE  BUREAU  OF  MARIHUANA POLICY HERETOFORE APPOINTED AND
DESIGNATED BY THE GOVERNOR AND THE REMAINING MEMBERS OF SUCH BOARD HERE-
TOFORE APPOINTED BY THE GOVERNOR SHALL CONTINUE TO SERVE AS CHAIRMAN AND
MEMBERS OF THE BUREAU UNTIL THE EXPIRATION OF THE RESPECTIVE  TERMS  FOR
WHICH  THEY WERE APPOINTED. UPON THE EXPIRATION OF SUCH RESPECTIVE TERMS
THE SUCCESSORS OF SUCH CHAIRMAN AND MEMBERS SHALL BE APPOINTED TO  SERVE
FOR  A  TERM  OF  THREE  YEARS EACH AND UNTIL THEIR SUCCESSORS HAVE BEEN
APPOINTED AND QUALIFIED. THE COMMISSIONERS SHALL,  WHEN  PERFORMING  THE
WORK  OF  THE  BUREAU,  BE  COMPENSATED  AT  A RATE OF TWO HUNDRED SIXTY
DOLLARS PER DAY, TOGETHER WITH AN ALLOWANCE  FOR  ACTUAL  AND  NECESSARY
EXPENSES INCURRED IN THE DISCHARGE OF THEIR DUTIES.
  §  167.  ADMINISTRATION  OF  THE  BUREAU OF MARIHUANA POLICY.   1. THE
BUREAU ESTABLISHED IN SECTION ONE  HUNDRED  SIXTY-SIX  OF  THIS  ARTICLE
SHALL  HERETOFORE  HAVE  THE  POWER,  DUTY, PURPOSE, RESPONSIBILITY, AND
JURISDICTION TO REGULATE COMMERCIAL MARIHUANA ACTIVITY  AS  PROVIDED  IN
THE MARIHUANA REGULATION AND TAXATION ACT.
  2.  THE  BUREAU  SHALL  HAVE THE EXCLUSIVE AUTHORITY TO CREATE, ISSUE,
RENEW, DISCIPLINE, SUSPEND, OR REVOKE LICENSES FOR COMMERCIAL  MARIHUANA
ACTIVITIES  IN  ACCORDANCE  WITH THE STATE ADMINISTRATIVE PROCEDURE ACT,
CODIFIED AT N.Y. A.P.A. LAW § 100 ET SEQ.

S. 3040--B                         25

  (A) THE BUREAU SHALL CONSULT WITH THE DEPARTMENT  OF  AGRICULTURE  AND
MARKETS  REGARDING  RULES, REGULATIONS, AND LICENSES FOR THE CULTIVATION
OF MARIHUANA.
  (B)  THE  BUREAU  SHALL BEGIN ISSUING LICENSES NOT LATER THAN EIGHTEEN
MONTHS FOLLOWING THE EFFECTIVE DATE  OF  THE  MARIHUANA  REGULATION  AND
TAXATION ACT.
  (I) THE BUREAU SHALL BEGIN ACCEPTING APPLICATIONS NO MORE THAN FIFTEEN
MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS ACT.
  (II)  PURSUANT TO SECTION ONE HUNDRED EIGHTY-FOUR OF THIS ARTICLE, THE
BUREAU SHALL NOTIFY MUNICIPALITIES OF ANY APPLICATIONS FOR LICENSE.
  (III) THE BUREAU SHALL  ISSUE  AN  ANNUAL  LICENSE  TO  THE  APPLICANT
BETWEEN  FORTY-FIVE  AND  NINETY  DAYS  AFTER  RECEIPT OF AN APPLICATION
UNLESS THE BUREAU FINDS THE APPLICANT IS NOT IN  COMPLIANCE  WITH  REGU-
LATIONS  ENACTED  PURSUANT  TO SECTION ONE HUNDRED SEVENTY-THREE OF THIS
ARTICLE OR THE DEPARTMENT IS NOTIFIED BY THE RELEVANT MUNICIPALITY  THAT
THE APPLICANT IS NOT IN COMPLIANCE WITH SUCH REGULATIONS.
  (C)  THE BUREAU SHALL HAVE THE AUTHORITY TO COLLECT FEES IN CONNECTION
WITH ACTIVITIES THEY REGULATE CONCERNING MARIHUANA PURSUANT  TO  SECTION
ONE HUNDRED NINETY OF THIS ARTICLE.
  3. (A) NOT LATER THAN TEN MONTHS FOLLOWING THE ENACTMENT OF THIS ARTI-
CLE,  EACH  MUNICIPALITY MAY ENACT AN ORDINANCE OR REGULATION SPECIFYING
THE ENTITY WITHIN THE MUNICIPALITY THAT IS  RESPONSIBLE  FOR  PROCESSING
APPLICATIONS  SUBMITTED  FOR A LICENSE TO OPERATE A MARIHUANA ESTABLISH-
MENT WITHIN THE BOUNDARIES OF THE MUNICIPALITY AND FOR THE  ISSUANCE  OF
SUCH  LICENSES  SHOULD THE ISSUANCE BY THE MUNICIPALITY BECOME NECESSARY
BECAUSE OF A FAILURE BY THE BUREAU  TO  ADOPT  REGULATIONS  PURSUANT  TO
SECTION  ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE OR BECAUSE OF A FAIL-
URE BY THE BUREAU TO PROCESS AND  ISSUE  LICENSES  AS  REQUIRED  BY  THE
SUBDIVISION TWO OF THIS SECTION.
  (B)  A  MUNICIPALITY  MAY  ENACT  ORDINANCES  OR  REGULATIONS,  NOT IN
CONFLICT WITH THIS SECTION OR WITH REGULATIONS  OR  LEGISLATION  ENACTED
PURSUANT  TO  THIS SECTION, GOVERNING THE TIME, PLACE, MANNER AND NUMBER
OF MARIHUANA ESTABLISHMENT OPERATIONS; ESTABLISHING PROCEDURES  FOR  THE
ISSUANCE,  SUSPENSION, AND REVOCATION OF A LICENSE ISSUED BY THE MUNICI-
PALITY IN ACCORDANCE WITH PARAGRAPHS (C) AND (D)  OF  THIS  SUBDIVISION,
SUCH  PROCEDURES  TO BE SUBJECT TO ALL REQUIREMENTS OF STATE ADMINISTRA-
TIVE PROCEDURE ACT, CODIFIED AS N.Y. A.P.A. LAW § 100, ET SEQ.   OR  ANY
SUCCESSOR  PROVISION,  ESTABLISHING  A  SCHEDULE  OF  ANNUAL  OPERATING,
LICENSING, AND APPLICATION FEES FOR MARIHUANA ESTABLISHMENTS,  PROVIDED,
THE  APPLICATION FEE SHALL ONLY BE DUE IF AN APPLICATION IS SUBMITTED TO
A MUNICIPALITY IN ACCORDANCE WITH PARAGRAPH (D) OF THIS SUBDIVISION  AND
A  LICENSING  FEE  SHALL ONLY BE DUE IF A LICENSE IS ISSUED BY A MUNICI-
PALITY IN ACCORDANCE WITH PARAGRAPH (C) OR (D) OF THIS SUBDIVISION;  AND
ESTABLISHING CIVIL PENALTIES FOR VIOLATION OF AN ORDINANCE OR REGULATION
GOVERNING  THE TIME, PLACE, AND MANNER OF A MARIHUANA ESTABLISHMENT THAT
MAY OPERATE IN SUCH A MUNICIPALITY.  A  MUNICIPALITY  MAY  PROHIBIT  THE
OPERATION  OF  MARIHUANA  PRODUCTION  FACILITIES,  MARIHUANA  PROCESSING
FACILITIES, MARIHUANA RETAIL STORES, MARIHUANA MICROBUSINESSES, OR MARI-
HUANA TESTING FACILITIES THROUGH THE ENACTMENT OF AN ORDINANCE.
  (C) IF THE BUREAU DOES NOT ISSUE A  LICENSE  TO  AN  APPLICANT  WITHIN
NINETY  DAYS  OF  RECEIPT  OF  THE  APPLICATION FILED IN ACCORDANCE WITH
SUBDIVISION TWO AND DOES NOT NOTIFY THE APPLICANT OF THE SPECIFIC REASON
FOR ITS DENIAL, IN WRITING AND WITHIN SUCH TIME PERIOD, OR IF THE BUREAU
HAS ADOPTED REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-THREE OF
THIS ARTICLE BUT HAS NOT ISSUED ANY LICENSES WITHIN EIGHTEEN  MONTHS  OF
THE  EFFECTIVE  DATE OF THIS ARTICLE, FOR ANY LOCALITY ENACTING AN ORDI-

S. 3040--B                         26

NANCE PROVIDING FOR LOCAL PROCESSING OF APPLICATIONS, THE APPLICANT  MAY
RESUBMIT  ITS APPLICATION DIRECTLY TO THE MUNICIPALITY PURSUANT TO PARA-
GRAPH (A) OF THIS SUBDIVISION, AND THE MUNICIPALITY MAY ISSUE AN  ANNUAL
LICENSE  TO THE APPLICANT. A MUNICIPALITY ISSUING A LICENSE TO AN APPLI-
CANT SHALL DO SO WITHIN NINETY DAYS OF RECEIPT OF THE RESUBMITTED APPLI-
CATION UNLESS THE MUNICIPALITY FINDS AND NOTIFIES THE APPLICANT THAT THE
APPLICANT IS NOT IN COMPLIANCE WITH THE ORDINANCES AND REGULATIONS  MADE
PURSUANT  TO PARAGRAPH (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME THE
APPLICATION IS RESUBMITTED AND THE MUNICIPALITY SHALL NOTIFY THE  BUREAU
IF AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. IF AN APPLICATION
IS  SUBMITTED  TO  A MUNICIPALITY UNDER THIS PARAGRAPH, THE BUREAU SHALL
FORWARD TO THE MUNICIPALITY THE APPLICATION FEE PAID BY THE APPLICANT TO
THE BUREAU UPON REQUEST BY THE MUNICIPALITY. A LICENSE ISSUED BY A MUNI-
CIPALITY IN ACCORDANCE WITH THIS PARAGRAPH SHALL HAVE THE SAME FORCE AND
EFFECT AS A LICENSE ISSUED BY THE BUREAU IN ACCORDANCE WITH  SUBDIVISION
TWO  OF THIS SECTION AND THE HOLDER OF SUCH LICENSE SHALL NOT BE SUBJECT
TO REGULATION OR ENFORCEMENT BY THE  BUREAU  DURING  THE  TERM  OF  THAT
LICENSE.  A SUBSEQUENT OR RENEWED LICENSE MAY BE ISSUED UNDER THIS PARA-
GRAPH ON AN ANNUAL BASIS ONLY UPON RESUBMISSION TO THE MUNICIPALITY OF A
NEW APPLICATION SUBMITTED TO THE BUREAU PURSUANT TO SUBDIVISION  TWO  OF
THIS  SECTION.  NOTHING IN THIS PARAGRAPH SHALL LIMIT SUCH RELIEF AS MAY
BE AVAILABLE TO AN AGGRIEVED PARTY UNDER SECTION FOUR HUNDRED ONE OF THE
STATE ADMINISTRATIVE PROCEDURE ACT OR ANY SUCCESSOR PROVISION.
  (D) IF THE BUREAU DOES NOT ADOPT REGULATIONS REQUIRED BY  SECTION  ONE
HUNDRED SEVENTY-THREE OF THIS ARTICLE, AN APPLICANT MAY SUBMIT AN APPLI-
CATION DIRECTLY TO A MUNICIPALITY FIFTEEN MONTHS FOLLOWING THE EFFECTIVE
DATE OF THIS ARTICLE AND THE MUNICIPALITY MAY ISSUE AN ANNUAL LICENSE TO
THE APPLICANT. A MUNICIPALITY ISSUING A LICENSE TO AN APPLICANT SHALL DO
SO  WITHIN NINETY DAYS OF RECEIPT OF THE APPLICATION UNLESS IT FINDS AND
NOTIFIES THE APPLICANT THAT THE APPLICANT  IS  NOT  IN  COMPLIANCE  WITH
ORDINANCES AND REGULATIONS MADE PURSUANT TO PARAGRAPH (B) OF THIS SUBDI-
VISION  IN EFFECT AT THE TIME OF APPLICATION AND SHALL NOTIFY THE BUREAU
IF AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. A LICENSE  ISSUED
BY  A MUNICIPALITY IN ACCORDANCE WITH THIS PARAGRAPH SHALL HAVE THE SAME
FORCE AND EFFECT AS A LICENSE ISSUED BY THE BUREAU  IN  ACCORDANCE  WITH
SUBDIVISION TWO OF THIS SECTION AND THE LICENSEE SHALL NOT BE SUBJECT TO
REGULATION OR ENFORCEMENT BY THE BUREAU DURING THE TERM OF THAT LICENSE.
A SUBSEQUENT OR RENEWED LICENSE MAY BE ISSUED UNDER THIS PARAGRAPH ON AN
ANNUAL  BASIS  IF  THE  BUREAU  HAS  NOT ADOPTED REGULATIONS REQUIRED BY
SECTION ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE AT LEAST  NINETY  DAYS
PRIOR TO THE DATE UPON WHICH SUCH SUBSEQUENT OR RENEWED LICENSE WOULD BE
EFFECTIVE  OR  IF  THE  DEPARTMENT  HAS  ADOPTED REGULATIONS PURSUANT TO
SECTION ONE HUNDRED SEVENTY-THREE OF THIS ARTICLE BUT HAS NOT, AT  LEAST
NINETY  DAYS  AFTER  THE  ADOPTION  OF SUCH REGULATIONS, ISSUED LICENSES
PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
  4. THE BUREAU MAY LIMIT THE TOTAL AMOUNT OF MARIHUANA PRODUCED IN  NEW
YORK  BASED ON THE DEMAND FOR MARIHUANA AND MARIHUANA PRODUCTS AND IN AN
EFFORT TO REDUCE ILLICIT MARIHUANA MARKETS.
  § 168.   LICENSES ISSUED. THE FOLLOWING KINDS  OF  LICENSES  SHALL  BE
ISSUED  BY THE BUREAU FOR THE MANUFACTURE, PRODUCTION, PROCESSING, TEST-
ING, RETAIL SALE AND DELIVERY OF MARIHUANA:
  1. MARIHUANA NURSERY LICENSE;
  2. MARIHUANA PRODUCER LICENSE;
  3. MARIHUANA PROCESSOR LICENSE;
  4. MARIHUANA DISTRIBUTOR LICENSE;
  5. MARIHUANA RETAILER LICENSE;

S. 3040--B                         27

  6. MARIHUANA MICROBUSINESS LICENSE;
  7. MARIHUANA ON-SITE CONSUMPTION LICENSE;
  8. MARIHUANA DELIVERY LICENSE;
  9. MARIHUANA TESTING LICENSE; AND
  10. ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
  §  169.  LICENSING  LIMITS.  1. ALL LICENSES ISSUED UNDER THIS ARTICLE
SHALL BEAR A CLEAR  DESIGNATION  INDICATING  THAT  THE  LICENSE  IS  FOR
COMMERCIAL  MARIHUANA  ACTIVITY AS DISTINCT FROM MEDICAL MARIHUANA MANU-
FACTURED, PRODUCED AND SOLD FOR MEDICAL USE PURSUANT TO TITLE FIVE-A  OF
ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
  2.  AN  OWNER  OF A MARIHUANA RETAIL STORE SHALL NOT HOLD A LICENSE IN
ANOTHER LICENSE CATEGORY OF SECTION  ONE  HUNDRED  SIXTY-EIGHT  OF  THIS
ARTICLE,  SHALL NOT OWN OR HAVE OWNERSHIP INTEREST IN AN ENTITY LICENSED
PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF  THE  PUBLIC  HEALTH
LAW, AND SHALL HOLD NOT MORE THAN THREE RETAIL LICENSES.
  3.  AN  OWNER OF A MARIHUANA MICROBUSINESS SHALL NOT HOLD A LICENSE IN
ANOTHER LICENSE CATEGORY OF SECTION  ONE  HUNDRED  SIXTY-EIGHT  OF  THIS
ARTICLE, SHALL NOT OWN OR HAVE OWNERSHIP INTEREST IN A FACILITY LICENSED
PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH
LAW, AND SHALL HOLD NOT MORE THAN ONE MICROBUSINESS LICENSE.
  4. AN OWNER OF A MARIHUANA TESTING FACILITY SHALL NOT HOLD  A  LICENSE
IN  ANOTHER  LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-EIGHT OF THIS
ARTICLE AND SHALL NOT OWN OR  HAVE  OWNERSHIP  INTEREST  IN  A  FACILITY
LICENSED  PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC
HEALTH LAW.
  5. ONLY A MARIHUANA  RETAIL  LICENSEE  OR  A  MARIHUANA  MICROBUSINESS
LICENSEE MAY BE ISSUED AN ON-SITE CONSUMPTION LICENSE.
  6. ONLY A MARIHUANA RETAIL LICENSEE, MARIHUANA MICROBUSINESS LICENSEE,
OR  MARIHUANA  DELIVERY  LICENSEE  MAY BE PERMITTED TO DELIVER MARIHUANA
DIRECTLY TO CUSTOMERS.
  7. ONLY A MARIHUANA PRODUCER LICENSEE, MARIHUANA  PROCESSOR  LICENSEE,
OR MARIHUANA DISTRIBUTOR LICENSEE MAY DISTRIBUTE MARIHUANA AND MARIHUANA
PRODUCTS TO OTHER LICENSED MARIHUANA BUSINESSES.
  8. NO MARIHUANA DELIVERY OWNER MAY HOLD MORE THAN ONE MARIHUANA DELIV-
ERY LICENSE.
  9.  NO  MARIHUANA  DISTRIBUTOR  OWNER MAY HOLD MORE THAN ONE MARIHUANA
DISTRIBUTOR LICENSE.
  10. THE BUREAU SHALL ISSUE A SERIES OF PRODUCER LICENSES DISTINGUISHED
BY CANOPY SIZE AND TYPE OF LIGHTING USED, NATURAL/OUTDOOR LIGHT,  INDOOR
LIGHT, OR MIXED-LIGHT.
  11.  NO  MARIHUANA  PRODUCER  OWNER  MAY  HOLD MORE THAN ONE MARIHUANA
PRODUCER AND ONE MARIHUANA PROCESSOR LICENSE.
  12. NO MARIHUANA PROCESSOR OWNER MAY HOLD MORE  THAN  THREE  MARIHUANA
PROCESSOR LICENSES.
  §  170.  ACTIONS  TAKEN  PURSUANT  TO  A  VALID LICENSE ARE LAWFUL. NO
CONTRACTS RELATED TO THE OPERATION OF LICENSES UNDER THIS CHAPTER  SHALL
BE DEEMED UNENFORCEABLE ON THE BASIS THAT THE ACTIONS PERMITTED PURSUANT
TO  THE LICENSE ARE PROHIBITED BY FEDERAL LAW. THE FOLLOWING ACTIONS ARE
NOT UNLAWFUL AS PROVIDED UNDER THIS CHAPTER, SHALL  NOT  BE  AN  OFFENSE
UNDER  NEW  YORK  LAW  OR  THE LAWS OF ANY LOCALITY WITHIN NEW YORK, AND
SHALL NOT RESULT IN ANY CIVIL FINE, SEIZURE,  OR  FORFEITURE  OF  ASSETS
AGAINST ANY PERSON ACTING IN ACCORDANCE WITH THIS CHAPTER:
  1.  ACTIONS OF A LICENSEE, ITS EMPLOYEES, AND ITS AGENTS, AS PERMITTED
BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
PURSUANT TO A VALID LICENSE ISSUED BY THE BUREAU.

S. 3040--B                         28

  2. ACTIONS OF THOSE WHO ALLOW PROPERTY TO BE USED BY A  LICENSEE,  ITS
EMPLOYEES,  AND  ITS AGENTS, AS PERMITTED BY THIS CHAPTER AND CONSISTENT
WITH RULES AND REGULATIONS OF THE BUREAU, PURSUANT TO  A  VALID  LICENSE
ISSUED BY THE BUREAU.
  3.  ACTIONS  OF ANY PERSON OR ENTITY, THEIR EMPLOYEES, OR THEIR AGENTS
PROVIDING A SERVICE TO A LICENSEE OR POTENTIAL LICENSEE, AS PERMITTED BY
THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS  OF  THE  BUREAU,
RELATING TO THE FORMATION OF A BUSINESS.
  4. THE PURCHASE, POSSESSION, OR CONSUMPTION OF MARIHUANA, AS PERMITTED
BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
OBTAINED FROM A VALIDLY LICENSED RETAILER.
  § 171. GENERAL PROHIBITIONS AND RESTRICTIONS. 1. NO MARIHUANA PRODUCTS
MAY BE IMPORTED OR EXPORTED INTO NEW YORK STATE BY A LICENSEE FROM OR TO
A JURISDICTION IN WHICH POSSESSION, TRANSPORT, DISTRIBUTION OF MARIHUANA
OR  OTHER  MARIHUANA  RELATED  CONDUCT REMAINS ILLEGAL UNDER THE LAWS OF
THAT JURISDICTION.
  2. (A) NO PERSON HOLDING ANY LICENSE PURSUANT TO THIS ARTICLE TO  GROW
OR  PROCESS MARIHUANA MAY EMPLOY ANY PERSON WHO HAS BEEN CONVICTED OF AN
OFFENSE RELATED TO THE FUNCTIONS, OR DUTIES OF THE BUSINESS  OR  PROFES-
SION  FOR WHICH THE APPLICATION IS MADE WITHIN THREE YEARS OF THE APPLI-
CATION DATE, EXCEPT THAT IF THE BUREAU  DETERMINES  THAT  THE  OWNER  OR
LICENSEE  IS OTHERWISE SUITABLE TO BE ISSUED A LICENSE, AND GRANTING THE
LICENSE WOULD NOT COMPROMISE PUBLIC SAFETY, THE BUREAU SHALL  CONDUCT  A
THOROUGH  REVIEW  OF THE NATURE OF THE CRIME, CONVICTION, CIRCUMSTANCES,
AND EVIDENCE OF REHABILITATION OF THE  OWNER,  AND  SHALL  EVALUATE  THE
SUITABILITY OF THE OWNER OR LICENSEE TO BE ISSUED A LICENSE BASED ON THE
EVIDENCE  FOUND  THROUGH  THE  REVIEW. IN DETERMINING WHICH OFFENSES ARE
SUBSTANTIALLY RELATED TO THE QUALIFICATIONS, FUNCTIONS, OR DUTIES OF THE
BUSINESS OR PROFESSION FOR WHICH THE APPLICATION  IS  MADE,  THE  BUREAU
SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING:
  (I)  A  FELONY  CONVICTION  INVOLVING FRAUD AND OTHER UNLAWFUL CONDUCT
RELATED TO OWNING AND OPERATING A BUSINESS.
  (II) A FELONY CONVICTION FOR HIRING, EMPLOYING, OR USING  A  MINOR  IN
TRANSPORTING,  CARRYING,  SELLING,  GIVING  AWAY, PREPARING FOR SALE, OR
PEDDLING, ANY CONTROLLED SUBSTANCE TO A MINOR; OR SELLING,  OFFERING  TO
SELL,  FURNISHING,  OFFERING  TO  FURNISH,  ADMINISTERING, OR GIVING ANY
CONTROLLED SUBSTANCE TO A MINOR.
  (B) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF  THIS  SUBDIVI-
SION,  IF THE BUREAU ISSUES ITS WRITTEN APPROVAL FOR THE EMPLOYMENT BY A
LICENSEE, IN A SPECIFIED CAPACITY, OF A PERSON PREVIOUSLY CONVICTED OF A
FELONY OR ANY OF THE OFFENSES ABOVE ENUMERATED IN PARAGRAPH (A) OF  THIS
SUBDIVISION,  SUCH  PERSON,  MAY,  UNLESS  HE  OR  SHE  IS  SUBSEQUENTLY
CONVICTED OF A FELONY OR ANY OF SUCH OFFENSES, THEREAFTER BE EMPLOYED IN
THE SAME CAPACITY BY ANY OTHER  LICENSEE  WITHOUT  THE  FURTHER  WRITTEN
APPROVAL  OF THE BUREAU UNLESS THE PRIOR APPROVAL GIVEN BY THE BUREAU IS
TERMINATED.
  3. NO LICENSE OF ANY KIND MAY BE ISSUED TO A PERSON UNDER THE  AGE  OF
TWENTY-ONE  YEARS, NOR SHALL ANY LICENSEE EMPLOY ANYONE UNDER THE AGE OF
TWENTY-ONE YEARS.
  § 172. CERTAIN OFFICIALS NOT TO BE INTERESTED IN  THE  MANUFACTURE  OR
SALE  OF  MARIHUANA.  1.  EXCEPT  AS  OTHERWISE  PROVIDED IN SECTION ONE
HUNDRED TWENTY-EIGHT-A OF THIS CHAPTER, IT SHALL  BE  UNLAWFUL  FOR  ANY
POLICE  COMMISSIONER,  POLICE  INSPECTOR,  CAPTAIN, SERGEANT, ROUNDSMAN,
PATROLMAN OR OTHER POLICE OFFICIAL OR SUBORDINATE OF ANY POLICE  DEPART-
MENT IN THE STATE, TO BE EITHER DIRECTLY OR INDIRECTLY INTERESTED IN THE
MANUFACTURE  OR  SALE OF MARIHUANA OR TO OFFER FOR SALE, OR RECOMMEND TO

S. 3040--B                         29

ANY LICENSEE ANY MARIHUANA. A PERSON  MAY  NOT  BE  DENIED  ANY  LICENSE
GRANTED  UNDER THE PROVISIONS OF SECTIONS FIFTY-FOUR, FIFTY-FIVE, FIFTY-
NINE, SIXTY-THREE,  SIXTY-FOUR,  SEVENTY-NINE,  EIGHTY-ONE,  OR  ARTICLE
SEVEN  OF  THIS  CHAPTER  SOLELY ON THE GROUNDS OF BEING THE SPOUSE OF A
PUBLIC SERVANT DESCRIBED IN THIS SUBDIVISION. THE SOLICITATION OR RECOM-
MENDATION MADE TO ANY LICENSEE, TO PURCHASE ANY MARIHUANA BY ANY  POLICE
OFFICIAL  OR  SUBORDINATE  AS  DESCRIBED  IN  THIS SUBDIVISION, SHALL BE
PRESUMPTIVE EVIDENCE OF THE INTEREST OF SUCH OFFICIAL OR SUBORDINATE  IN
THE MANUFACTURE OR SALE OF MARIHUANA.
  2. NO ELECTIVE VILLAGE OFFICER SHALL BE SUBJECT TO THE LIMITATIONS SET
FORTH  IN  SUBDIVISION  ONE OF THIS SECTION UNLESS SUCH ELECTIVE VILLAGE
OFFICER SHALL BE ASSIGNED DUTIES DIRECTLY RELATING TO THE  OPERATION  OR
MANAGEMENT OF THE POLICE DEPARTMENT.
  §  173. PROVISIONS GOVERNING INITIAL RULEMAKING. 1. WITHIN TWO HUNDRED
FORTY DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE,  THE  BUREAU  SHALL
PERFORM SUCH ACTS, PRESCRIBE SUCH FORMS AND MAKE SUCH RULES, REGULATIONS
AND  ORDERS  AS  IT MAY DEEM NECESSARY OR PROPER TO FULLY EFFECTUATE THE
PROVISIONS OF THIS ARTICLE.
  2. THE BUREAU SHALL PROMULGATE NECESSARY RULES AND REGULATIONS GOVERN-
ING THE LICENSING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARIHUA-
NA RETAILERS AND MARIHUANA RETAILERS FOR CONSUMPTION ON-SITE, INCLUDING:
  (A) PRESCRIBING FORMS AND ESTABLISHING APPLICATION, REINSTATEMENT, AND
RENEWAL FEES;
  (B) THE QUALIFICATIONS FOR LICENSURE;
  (C) THE BOOKS AND RECORDS TO BE CREATED AND MAINTAINED  BY  LICENSEES,
THE  REPORTS  TO  BE  MADE  THEREON TO THE BUREAU, AND INSPECTION OF THE
BOOKS AND RECORDS;
  (D) METHODS OF PRODUCING, PROCESSING, AND PACKAGING  MARIHUANA,  MARI-
HUANA-INFUSED PRODUCTS, AND CONCENTRATED CANNABIS; CONDITIONS OF SANITA-
TION,  AND  STANDARDS OF INGREDIENTS, QUALITY, AND IDENTITY OF MARIHUANA
PRODUCTS PRODUCED, PROCESSED, PACKAGED, OR SOLD BY LICENSEES; AND
  (E) SECURITY REQUIREMENTS FOR MARIHUANA RETAILERS AND  PREMISES  WHERE
MARIHUANA  PRODUCTS  ARE PRODUCED OR PROCESSED, AND SAFETY PROTOCOLS FOR
LICENSEES AND THEIR EMPLOYEES.
  3. THE BUREAU SHALL PROMULGATE RULES AND REGULATIONS THAT  ARE  CALCU-
LATED TO:
  (A)  PREVENT THE DISTRIBUTION OF MARIHUANA TO PERSONS UNDER TWENTY-ONE
YEARS OF AGE;
  (B) PREVENT THE REVENUE FROM THE SALE OF MARIHUANA FROM GOING TO CRIM-
INAL ENTERPRISES, GANGS, AND CARTELS;
  (C) PREVENT THE DIVERSION  OF  MARIHUANA  FROM  THIS  STATE  TO  OTHER
STATES;
  (D)  PREVENT  MARIHUANA  ACTIVITY  THAT  IS LEGAL UNDER STATE LAW FROM
BEING USED AS A COVER OR PRETEXT FOR THE TRAFFICKING  OF  OTHER  ILLEGAL
DRUGS OR OTHER ILLEGAL ACTIVITY;
  (E)  PREVENT  VIOLENCE  AND THE USE OF FIREARMS IN THE CULTIVATION AND
DISTRIBUTION OF MARIHUANA;
  (F) PREVENT DRUGGED DRIVING AND  THE  EXACERBATION  OF  OTHER  ADVERSE
PUBLIC HEALTH CONSEQUENCES ASSOCIATED WITH THE USE OF MARIHUANA;
  (G) PREVENT THE GROWING OF MARIHUANA ON PUBLIC LANDS AND THE ATTENDANT
PUBLIC SAFETY AND ENVIRONMENTAL DANGERS POSED BY MARIHUANA PRODUCTION ON
PUBLIC LANDS; AND
  (H) PREVENT THE POSSESSION AND USE OF MARIHUANA ON FEDERAL PROPERTY.
  4.  RULES AND REGULATIONS PROMULGATED BY THE BUREAU PURSUANT TO SUBDI-
VISION THREE OF THIS SECTION SHALL NOT PROHIBIT THE OPERATION  OF  MARI-

S. 3040--B                         30

HUANA  ESTABLISHMENTS  EITHER EXPRESSLY OR THROUGH REGULATIONS THAT MAKE
THEIR OPERATION UNREASONABLY IMPRACTICABLE.
  5.  THE BUREAU, IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE AND
MARKETS AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, SHALL  PROMUL-
GATE  NECESSARY  RULES  AND REGULATIONS GOVERNING THE SAFE PRODUCTION OF
MARIHUANA, INCLUDING RESTRICTIONS ON THE USE OF PESTICIDES, INSECTICIDES
AND HERBICIDES.
  § 174. PROVISIONS GOVERNING MARIHUANA PRODUCERS. 1. NO PRODUCER  SHALL
SELL,  OR  AGREE TO SELL OR DELIVER IN THE STATE ANY MARIHUANA PRODUCTS,
AS THE CASE MAY BE, EXCEPT IN SEALED CONTAINERS CONTAINING QUANTITIES IN
ACCORDANCE WITH SIZE STANDARDS PURSUANT TO RULES ADOPTED BY THE  BUREAU.
SUCH  CONTAINERS  SHALL  HAVE  AFFIXED  THERETO  SUCH  LABELS  AS MAY BE
REQUIRED BY THE RULES OF THE BUREAU, TOGETHER  WITH  ALL  NECESSARY  NEW
YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
  2.  NO  PRODUCER SHALL DELIVER ANY MARIHUANA PRODUCTS, EXCEPT IN VEHI-
CLES OWNED AND OPERATED BY SUCH PRODUCER, OR HIRED AND OPERATED BY  SUCH
PRODUCER  FROM  A TRUCKING OR TRANSPORTATION COMPANY REGISTERED WITH THE
BUREAU, AND SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES  OF  THE
PURCHASER.
  3.  EACH  PRODUCER SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  PRODUCER
AND  SALE  OF  HIS  OR ITS PRODUCTS, WHICH SHALL INCLUDE ALL INFORMATION
REQUIRED BY RULES PROMULGATED BY THE BUREAU. EACH SALE SHALL BE RECORDED
SEPARATELY ON A NUMBERED INVOICE, WHICH SHALL HAVE PRINTED  THEREON  THE
NUMBER,  THE NAME OF THE LICENSEE, THE ADDRESS OF THE LICENSED PREMISES,
AND THE CURRENT LICENSE NUMBER.  SUCH  PRODUCER  SHALL  DELIVER  TO  THE
PURCHASER  A  TRUE DUPLICATE INVOICE STATING THE NAME AND ADDRESS OF THE
PURCHASER, THE QUANTITY PURCHASED, DESCRIPTION  AND  THE  PRICE  OF  THE
PRODUCT,  AND  A  TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS AND
CONDITIONS ON WHICH SUCH SALE IS MADE. SUCH BOOKS, RECORDS AND  INVOICES
SHALL  BE  KEPT  FOR  A  PERIOD  OF TWO YEARS AND SHALL BE AVAILABLE FOR
INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  4. NO PRODUCER SHALL FURNISH OR CAUSE TO BE FURNISHED TO ANY LICENSEE,
ANY EXTERIOR OR INTERIOR SIGN, PRINTED, PAINTED, ELECTRIC OR  OTHERWISE,
EXCEPT AS AUTHORIZED BY THE BUREAU. THE BUREAU MAY MAKE SUCH RULES AS IT
DEEMS NECESSARY TO CARRY OUT THE PURPOSE AND INTENT OF THIS SUBDIVISION.
  §  175.  PROVISIONS  GOVERNING  PROCESSORS.  1.  NO PROCESSOR SHALL BE
ENGAGED IN ANY OTHER BUSINESS ON THE PREMISES  TO  BE  LICENSED;  EXCEPT
THAT NOTHING CONTAINED IN THIS CHAPTER SHALL PREVENT A MARIHUANA PRODUC-
ER  AND  A  MARIHUANA  PROCESSOR FROM OPERATING ON THE SAME PREMISES AND
FROM A PERSON HOLDING BOTH LICENSES.
  2. NO PROCESSOR SHALL SELL, OR AGREE TO SELL OR DELIVER IN  THE  STATE
ANY MARIHUANA PRODUCTS, EXCEPT IN A SEALED PACKAGE CONTAINING QUANTITIES
IN  ACCORDANCE  WITH  SIZE  STANDARDS  PURSUANT  TO RULES ADOPTED BY THE
BUREAU. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE
REQUIRED BY THE RULES OF THE BUREAU, TOGETHER  WITH  ALL  NECESSARY  NEW
YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
  3.  NO  PROCESSOR SHALL DELIVER ANY PRODUCTS, EXCEPT IN VEHICLES OWNED
AND OPERATED BY SUCH PROCESSOR, OR HIRED AND OPERATED BY SUCH  PROCESSOR
FROM  A  TRUCKING  OR TRANSPORTATION COMPANY REGISTERED WITH THE BUREAU,
AND SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE  PURCHAS-
ER.
  4.  EACH PROCESSOR SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  BUSINESS
TRANSACTED  BY  SUCH PROCESSOR, WHICH SHALL SHOW THE AMOUNT OF MARIHUANA
PRODUCTS, PURCHASED BY SUCH PROCESSOR TOGETHER WITH THE  NAMES,  LICENSE

S. 3040--B                         31

NUMBERS  AND  PLACES  OF  BUSINESS OF THE PERSONS FROM WHOM THE SAME WAS
PURCHASED AND THE AMOUNT INVOLVED IN SUCH  PURCHASES,  AS  WELL  AS  THE
AMOUNT  OF  MARIHUANA  PRODUCTS SOLD BY SUCH PROCESSOR TOGETHER WITH THE
NAMES,  ADDRESSES,  AND  LICENSE  NUMBERS  OF SUCH PURCHASERS. EACH SALE
SHALL BE RECORDED SEPARATELY ON A NUMBERED  INVOICE,  WHICH  SHALL  HAVE
PRINTED THEREON THE NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE
LICENSED  PREMISES, AND THE CURRENT LICENSE NUMBER. SUCH PROCESSOR SHALL
DELIVER TO THE PURCHASER A TRUE DUPLICATE INVOICE STATING THE  NAME  AND
ADDRESS  OF THE PURCHASER, QUANTITY PURCHASED, DESCRIPTION AND THE PRICE
OF THE PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS
AND CONDITIONS ON WHICH SUCH SALE  IS  MADE.  SUCH  BOOKS,  RECORDS  AND
INVOICES  SHALL BE KEPT FOR A PERIOD OF TWO YEARS AND SHALL BE AVAILABLE
FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  § 176. PROVISIONS GOVERNING MARIHUANA RETAILERS. 1. NO RETAIL  LICENSE
SHALL  BE  GRANTED  FOR  ANY PREMISES, UNLESS THE APPLICANT SHALL BE THE
OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A LEASE,
MANAGEMENT AGREEMENT OR OTHER AGREEMENT  GIVING  THE  APPLICANT  CONTROL
OVER  THE  PREMISES,  IN  WRITING,  FOR A TERM NOT LESS THAN THE LICENSE
PERIOD.
  2. NO PREMISES SHALL BE LICENSED TO SELL  MARIHUANA  PRODUCTS,  UNLESS
SAID  PREMISES  SHALL  BE  LOCATED IN A STORE, THE PRINCIPAL ENTRANCE TO
WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON A  PUBLIC  THOROUGH-
FARE  IN PREMISES WHICH MAY BE OCCUPIED, OPERATED OR CONDUCTED FOR BUSI-
NESS, TRADE OR INDUSTRY OR ON  AN  ARCADE  OR  SUB-SURFACE  THOROUGHFARE
LEADING  TO  A  RAILROAD  TERMINAL. THERE MAY BE NOT MORE THAN ONE ADDI-
TIONAL ENTRANCE WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON  AND
GIVING  ACCESS  TO  AND  FROM A PUBLIC OR PRIVATE PARKING LOT OR PARKING
AREA HAVING SPACE FOR NOT LESS THAN FIVE AUTOMOBILES.
  3. NO MARIHUANA RETAIL LICENSE SHALL BE GRANTED FOR ANY PREMISES WHICH
A LICENSE WOULD NOT BE ALLOWED TO SELL  AT  RETAIL  FOR  CONSUMPTION  OF
ALCOHOL  OFF  THE PREMISES BASED ON ITS PROXIMITY TO A BUILDING OCCUPIED
EXCLUSIVELY AS A SCHOOL, CHURCH, SYNAGOGUE OR  OTHER  PLACE  OF  WORSHIP
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4.  NO  MARIHUANA  RETAIL  LICENSEE SHALL OFFER FOR SALE ANY MARIHUANA
PRODUCTS IN ANY OTHER CONTAINER, EXCEPT IN THE ORIGINAL SEALED  PACKAGE,
AS RECEIVED FROM THE PRODUCER, DISTRIBUTOR OR PROCESSOR. SUCH CONTAINERS
SHALL  HAVE  AFFIXED THERETO SUCH LABELS AS MAY BE REQUIRED BY THE RULES
OF THE BUREAU, TOGETHER WITH ALL NEW YORK STATE EXCISE  TAX  STAMPS,  AS
REQUIRED  BY  LAW.  SUCH CONTAINERS SHALL NOT BE OPENED NOR ITS CONTENTS
CONSUMED ON THE PREMISES WHERE SOLD.
  5. NO MARIHUANA RETAIL  LICENSEE  SHALL  SELL  OR  TRANSFER  MARIHUANA
PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
  6.  NO MARIHUANA RETAIL LICENSEE SHALL SELL ALCOHOLIC BEVERAGES ON THE
SAME PREMISES WHERE MARIHUANA PRODUCTS ARE SOLD.
  7. NO SIGN OF ANY KIND PRINTED, PAINTED OR ELECTRIC,  ADVERTISING  ANY
BRAND  SHALL  BE PERMITTED ON THE EXTERIOR OR INTERIOR OF SUCH PREMISES,
EXCEPT BY PERMISSION OF THE BUREAU.
  8. NO RETAIL LICENSEE SHALL DELIVER ANY MARIHUANA PRODUCTS  EXCEPT  IN
VEHICLES  OWNED  AND OPERATED BY SUCH LICENSEE, OR HIRED AND OPERATED BY
SUCH LICENSEE FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED  WITH
THE  BUREAU,  AND SHALL ONLY MAKE SUCH DELIVERIES AT THE PREMISES OF THE
PURCHASER.
  9. NO RETAIL LICENSEE SHALL  KEEP  OR  PERMIT  TO  BE  KEPT  UPON  THE
LICENSED PREMISES, ANY MARIHUANA PRODUCTS IN ANY UNSEALED CONTAINER.
  10. NO RETAIL LICENSEE SHALL SELL OR DELIVER ANY MARIHUANA PRODUCTS TO
ANY  PERSON WITH KNOWLEDGE OF, OR WITH REASONABLE CAUSE TO BELIEVE, THAT

S. 3040--B                         32

THE PERSON TO WHOM SUCH MARIHUANA PRODUCTS ARE BEING SOLD, HAS  ACQUIRED
THE  SAME  FOR  THE  PURPOSE OF PEDDLING THEM FROM PLACE TO PLACE, OR OF
SELLING OR GIVING THEM AWAY IN VIOLATION OF THE PROVISIONS OF THIS CHAP-
TER OR IN VIOLATION OF THE RULES AND REGULATIONS OF THE BUREAU.
  11. NO PREMISES LICENSED AS A MARIHUANA RETAILER SHALL BE PERMITTED TO
REMAIN OPEN DURING A TIME WHEN A PREMISES LICENSED TO SELL LIQUOR AND/OR
WINE FOR OFF-PREMISES CONSUMPTION IS NOT PERMITTED TO REMAIN OPEN PURSU-
ANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  12.  EACH  MARIHUANA  RETAIL LICENSEE SHALL KEEP AND MAINTAIN UPON THE
LICENSED PREMISES,  ADEQUATE  BOOKS  AND  RECORDS  OF  ALL  TRANSACTIONS
INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE, WHICH SHALL SHOW THE
AMOUNT  OF  MARIHUANA PRODUCTS, PURCHASED BY SUCH LICENSEE TOGETHER WITH
THE NAMES, LICENSE NUMBERS AND PLACES OF BUSINESS OF  THE  PERSONS  FROM
WHOM THE SAME WERE PURCHASED, AND THE AMOUNT INVOLVED IN SUCH PURCHASES,
AS  WELL AS THE AMOUNT OF MARIHUANA PRODUCTS, SOLD BY SUCH LICENSEE, AND
THE AMOUNT INVOLVED IN EACH SALE. SUCH BOOKS AND RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  13. ALL PREMISES LICENSED UNDER  THIS  SECTION  SHALL  BE  SUBJECT  TO
INSPECTION BY ANY PEACE OFFICER DESCRIBED IN SUBDIVISION FOUR OF SECTION
2.10 OF THE CRIMINAL PROCEDURE LAW ACTING PURSUANT TO HIS OR HER SPECIAL
DUTIES,  OR  POLICE OFFICER OR ANY DULY AUTHORIZED REPRESENTATIVE OF THE
BUREAU, DURING THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR THE  TRANS-
ACTION OF BUSINESS.
  § 177. PROVISIONS GOVERNING MARIHUANA ON-SITE CONSUMPTION LICENSES. 1.
NO  MARIHUANA  RETAILER  OR  MICROBUSINESS  SHALL BE GRANTED A MARIHUANA
ON-SITE CONSUMPTION LICENSE FOR A PREMISES LOCATED IN WHOLE OR  IN  PART
INSIDE  THE  BOUNDARIES  OF  ANY CITY, VILLAGE OR TOWN, UNLESS THE LOCAL
LEGISLATIVE BODY OF SUCH CITY, VILLAGE OR TOWN, BY RESOLUTION, EXPRESSLY
AUTHORIZES THE LICENSING OF SUCH FACILITIES IN  SUCH  CITY,  VILLAGE  OR
TOWN.  THE  LOCAL  LEGISLATIVE  BODY  MAY DIRECT AN APPROPRIATE OFFICER,
BOARD OR BODY OF SUCH CITY, VILLAGE  OR  TOWN  AS  THE  LOCAL  LICENSING
AUTHORITY  TO  AUTHORIZE  INDIVIDUAL MARIHUANA FACILITY LICENSE APPLICA-
TIONS. IN CITIES OF ONE MILLION OR  MORE  RESIDENTS,  SHOULD  THE  LOCAL
LEGISLATIVE  BODY  AUTHORIZE SUCH LICENSE, NO MARIHUANA RETAILER LICENSE
FOR CONSUMPTION ON-SITE SHALL BE  GRANTED  UNLESS  THE  COMMUNITY  BOARD
ESTABLISHED  PURSUANT  TO  SECTION  TWENTY-EIGHT HUNDRED OF THE NEW YORK
CITY CHARTER WITH JURISDICTION OVER THE AREA IN WHICH THE PREMISES  WILL
BE LOCATED SHALL ALSO AUTHORIZE SUCH LICENSE.
  2. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
ON-SITE CONSUMPTION LICENSE FOR ANY PREMISES, UNLESS THE APPLICANT SHALL
BE THE OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A
LEASE,  IN  WRITING, FOR A TERM NOT LESS THAN THE LICENSE PERIOD EXCEPT,
HOWEVER, THAT  SUCH  LICENSE  MAY  THEREAFTER  BE  RENEWED  WITHOUT  THE
REQUIREMENT  OF  A  LEASE AS HEREIN PROVIDED. THIS SUBDIVISION SHALL NOT
APPLY TO PREMISES LEASED FROM  GOVERNMENT  AGENCIES,  AS  DEFINED  UNDER
SUBDIVISION  TWELVE-C OF SECTION THREE OF THIS CHAPTER; PROVIDED, HOWEV-
ER,  THAT  THE  APPROPRIATE  ADMINISTRATOR  OF  SUCH  GOVERNMENT  AGENCY
PROVIDES SOME FORM OF WRITTEN DOCUMENTATION REGARDING THE TERMS OF OCCU-
PANCY  UNDER  WHICH  THE  APPLICANT  IS  LEASING  SAID PREMISES FROM THE
GOVERNMENT AGENCY FOR PRESENTATION TO THE BUREAU  AT  THE  TIME  OF  THE
LICENSE APPLICATION. SUCH DOCUMENTATION SHALL INCLUDE THE TERMS OF OCCU-
PANCY  BETWEEN  THE  APPLICANT AND THE GOVERNMENT AGENCY, INCLUDING, BUT
NOT LIMITED TO, ANY SHORT-TERM LEASING AGREEMENTS OR  WRITTEN  OCCUPANCY
AGREEMENTS.
  3. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
ON-SITE  CONSUMPTION  LICENSE FOR ANY PREMISES WHERE A LICENSE WOULD NOT

S. 3040--B                         33

BE ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF ALCOHOL ON THE  PREMISES
BASED  ON  ITS PROXIMITY TO A BUILDING OCCUPIED EXCLUSIVELY AS A SCHOOL,
CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP PURSUANT TO  THE  PROVISIONS
OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4.  THE BUREAU MAY CONSIDER ANY OR ALL OF THE FOLLOWING IN DETERMINING
WHETHER PUBLIC CONVENIENCE AND ADVANTAGE AND THE PUBLIC INTEREST WILL BE
PROMOTED BY THE GRANTING OF LICENSES AND PERMITS FOR A MARIHUANA ON-SITE
CONSUMPTION LICENSE AT A PARTICULAR UNLICENSED LOCATION:
  (A) THE NUMBER, CLASSES AND CHARACTER OF LICENSES IN PROXIMITY TO  THE
LOCATION AND IN THE PARTICULAR MUNICIPALITY OR SUBDIVISION THEREOF.
  (B)  EVIDENCE  THAT  ALL  NECESSARY  LICENSES  AND  PERMITS  HAVE BEEN
OBTAINED FROM THE STATE AND ALL OTHER GOVERNING BODIES.
  (C) EFFECT OF THE GRANT OF THE LICENSE ON VEHICULAR TRAFFIC AND  PARK-
ING IN PROXIMITY TO THE LOCATION.
  (D) THE EXISTING NOISE LEVEL AT THE LOCATION AND ANY INCREASE IN NOISE
LEVEL THAT WOULD BE GENERATED BY THE PROPOSED PREMISES.
  (E) THE HISTORY OF MARIHUANA VIOLATIONS AND REPORTED CRIMINAL ACTIVITY
AT THE PROPOSED PREMISES.
  (F) ANY OTHER FACTORS SPECIFIED BY LAW OR REGULATION THAT ARE RELEVANT
TO DETERMINE THE PUBLIC CONVENIENCE AND ADVANTAGE AND PUBLIC INTEREST OF
THE COMMUNITY.
  5.  IF  THE  BUREAU  SHALL  DISAPPROVE AN APPLICATION FOR A LICENSE OR
PERMIT, IT SHALL STATE AND FILE IN ITS OFFICES THE REASONS THEREFOR  AND
SHALL  NOTIFY  THE APPLICANT THEREOF. SUCH APPLICANT MAY THEREUPON APPLY
TO THE BUREAU FOR A REVIEW OF SUCH ACTION IN A MANNER TO  BE  PRESCRIBED
BY THE RULES OF THE BUREAU. A HEARING UPON NOTICE TO THE APPLICANT SHALL
THEREUPON  BE  HELD BY THE BUREAU OR BY ONE OF ITS MEMBERS AT ITS OFFICE
MOST CONVENIENTLY SITUATED TO THE OFFICE OF ITS DULY  AUTHORIZED  REPRE-
SENTATIVE IN A MANNER TO BE PRESCRIBED IN ITS RULES; AND ON SUCH HEARING
PROOF  MAY  BE TAKEN BY ORAL TESTIMONY OR BY AFFIDAVIT RELATIVE THERETO.
AFTER SUCH HEARING, IF THE BUREAU CONFIRMS SUCH  DISAPPROVAL,  IT  SHALL
ENDORSE SUCH APPLICATION ACCORDINGLY AND SHALL SEND NOTICE TO THE APPLI-
CANT  OF  ITS  ACTION  IN  SUCH FORM AS THE BUREAU MAY PRESCRIBE. IF THE
BUREAU DOES NOT CONFIRM THE DISAPPROVAL ACTION IT MAY GRANT SUCH  APPLI-
CATION AND ISSUE SUCH LICENSE.
  6. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE, EXCEPT PERSONS OR CORPO-
RATIONS OPERATING A HOTEL, AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION
THREE  OF  THIS  CHAPTER,  FOR  EXCLUSIVE  USE IN THE FURNISHING OF ROOM
SERVICE IN THE MANNER PRESCRIBED BY RULE OR REGULATION  OF  THE  BUREAU,
SHALL  KEEP  UPON  THE  LICENSED PREMISES ANY MARIHUANA PRODUCTS, EXCEPT
THOSE PURCHASED FROM A LICENSED PRODUCER, AND IN CONTAINERS APPROVED  BY
THE  BUREAU.  SUCH  CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS
MAY BE REQUIRED BY THE RULES OF THE BUREAU, TOGETHER WITH ALL  NECESSARY
EXCISE  STAMPS  AS  REQUIRED  BY  LAW.  NO MARIHUANA RETAIL LICENSEE FOR
ON-SITE CONSUMPTION SHALL REUSE, REFILL, TAMPER WITH, ADULTERATE, DILUTE
OR FORTIFY THE CONTENTS  OF  ANY  CONTAINER  OF  MARIHUANA  PRODUCTS  AS
RECEIVED FROM THE MANUFACTURER OR WHOLESALER.
  7.  NO  MARIHUANA  ON-SITE CONSUMPTION LICENSEE SHALL SELL, DELIVER OR
GIVE AWAY, OR CAUSE OR PERMIT OR PROCURE TO BE SOLD, DELIVERED OR  GIVEN
AWAY  ANY  MARIHUANA  FOR  CONSUMPTION  ON  THE PREMISES WHERE SOLD IN A
CONTAINER OR PACKAGE CONTAINING MORE THAN ONE GRAM OF MARIHUANA.
  8. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL  SUFFER  OR  PERMIT
ANY GAMBLING ON THE LICENSED PREMISES, OR SUFFER OR PERMIT SUCH PREMISES
TO  BECOME  DISORDERLY.  THE  USE  OF THE LICENSED PREMISES, OR ANY PART
THEREOF, FOR THE SALE OF LOTTERY TICKETS, PLAYING OF BINGO OR  GAMES  OF
CHANCE,  OR AS A SIMULCAST FACILITY OR SIMULCAST THEATER PURSUANT TO THE

S. 3040--B                         34

RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, WHEN DULY AUTHORIZED  AND
LAWFULLY  CONDUCTED  THEREON,  SHALL  NOT CONSTITUTE GAMBLING WITHIN THE
MEANING OF THIS SUBDIVISION.
  (A)  NO  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL SUFFER OR PERMIT
ANY PERSON TO APPEAR ON LICENSED PREMISES IN SUCH MANNER OR ATTIRE AS TO
EXPOSE TO VIEW ANY PORTION OF THE PUBIC AREA, ANUS, VULVA  OR  GENITALS,
OR  ANY  SIMULATION  THEREOF,  NOR  SHALL SUFFER OR PERMIT ANY FEMALE TO
APPEAR ON LICENSED PREMISES IN SUCH MANNER OR ATTIRE  AS  TO  EXPOSE  TO
VIEW ANY PORTION OF THE BREAST BELOW THE TOP OF THE AREOLA, OR ANY SIMU-
LATION THEREOF.
  (B)  NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL SUFFER, PERMIT OR
PROMOTE AN EVENT ON ITS PREMISES WHEREIN THE CONTESTANTS DELIVER, OR ARE
NOT FORBIDDEN BY THE APPLICABLE RULES  THEREOF  FROM  DELIVERING  KICKS,
PUNCHES  OR  BLOWS  OF ANY KIND TO THE BODY OF AN OPPONENT OR OPPONENTS,
WHETHER OR NOT THE EVENT CONSISTS OF A PROFESSIONAL MATCH OR EXHIBITION,
AND WHETHER OR NOT THE EVENT OR ANY SUCH  ACT,  OR  BOTH,  IS  DONE  FOR
COMPENSATION;  PROVIDED,  HOWEVER,  THAT  THIS  PROHIBITION SHALL NOT BE
APPLIED TO ANY  PROFESSIONAL  MATCH  OR  EXHIBITION  WHICH  CONSISTS  OF
BOXING,  SPARRING, WRESTLING, OR MARTIAL ARTS AND WHICH IS EXCEPTED FROM
THE DEFINITION OF THE TERM "COMBATIVE SPORT"  CONTAINED  IN  SUBDIVISION
THREE OF SECTION ONE THOUSAND OF THE GENERAL BUSINESS LAW.
  (C)  IN  ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF
THIS SUBDIVISION SHALL CONSTITUTE AN ADEQUATE GROUND FOR  INSTITUTING  A
PROCEEDING  TO  SUSPEND, CANCEL OR REVOKE THE LICENSE OF THE VIOLATOR IN
ACCORDANCE WITH THE  APPLICABLE  PROCEDURES  SPECIFIED  IN  SECTION  ONE
HUNDRED NINETEEN OF THIS CHAPTER.
  9.  EXCEPT  WHERE  A  PERMIT  TO DO SO IS OBTAINED PURSUANT TO SECTION
405.10 OF THE PENAL LAW, NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL
SUFFER, PERMIT, OR PROMOTE AN EVENT ON ITS PREMISES WHEREIN  ANY  PERSON
SHALL  USE,  EXPLODE,  OR CAUSE TO EXPLODE, ANY FIREWORKS OR OTHER PYRO-
TECHNICS IN A BUILDING AS DEFINED IN PARAGRAPH E OF SUBDIVISION  ONE  OF
SECTION  405.10  OF  THE  PENAL  LAW, THAT IS COVERED BY SUCH LICENSE OR
POSSESS SUCH FIREWORKS OR PYROTECHNICS FOR SUCH PURPOSE. IN ADDITION  TO
ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF THIS SUBDIVISION SHALL
CONSTITUTE  AN  ADEQUATE GROUND FOR INSTITUTING A PROCEEDING TO SUSPEND,
CANCEL, OR REVOKE THE LICENSE OF THE VIOLATOR  IN  ACCORDANCE  WITH  THE
APPLICABLE  PROCEDURES SPECIFIED IN SECTION ONE HUNDRED NINETEEN OF THIS
CHAPTER; PROVIDED HOWEVER, IF MORE THAN ONE LICENSEE IS PARTICIPATING IN
A SINGLE EVENT, UPON APPROVAL BY THE  BUREAU,  ONLY  ONE  LICENSEE  MUST
OBTAIN SUCH PERMIT.
  10.  NO RESTAURANT AND NO PREMISES LICENSED TO SELL MARIHUANA PRODUCTS
FOR ON-SITE CONSUMPTION  UNDER  PARAGRAPH  (A)  OF  SUBDIVISION  SIX  OF
SECTION  SIXTY-FOUR-A  OF  THIS  CHAPTER  SHALL BE PERMITTED TO HAVE ANY
OPENING OR MEANS OF ENTRANCE OR PASSAGEWAY FOR PERSONS OR THINGS BETWEEN
THE LICENSED PREMISES AND ANY  OTHER  ROOM  OR  PLACE  IN  THE  BUILDING
CONTAINING THE LICENSED PREMISES, OR ANY ADJOINING OR ABUTTING PREMISES,
UNLESS  INGRESS  AND  EGRESS  IS RESTRICTED BY AN EMPLOYEE, AGENT OF THE
LICENSEE, OR OTHER APPROVED METHOD OF CONTROLLING ACCESS TO THE  FACILI-
TY,  OR UNLESS SUCH PREMISES ARE A BONA FIDE RESTAURANT WITH SUCH ACCESS
FOR PATRONS AND GUESTS FROM ANY PART OF SUCH BUILDING  OR  ADJOINING  OR
ABUTTING  PREMISES AS SHALL SERVE PUBLIC CONVENIENCE IN A REASONABLE AND
SUITABLE MANNER; OR UNLESS SUCH LICENSED  PREMISES  ARE  IN  A  BUILDING
OWNED OR OPERATED BY ANY COUNTY, TOWN, CITY, VILLAGE OR PUBLIC AUTHORITY
OR AGENCY, IN A PARK OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION. ALL
GLASS IN ANY WINDOW OR DOOR ON SAID LICENSED PREMISES SHALL BE CLEAR AND
SHALL NOT BE OPAQUE, COLORED, STAINED OR FROSTED.

S. 3040--B                         35

  11.  A VESSEL LICENSED TO SELL MARIHUANA PRODUCTS FOR ON-SITE CONSUMP-
TION SHALL NOT BE PERMITTED TO SELL ANY MARIHUANA PRODUCTS,  WHILE  SAID
VESSEL  IS  MOORED  TO  A  PIER  OR DOCK, EXCEPT THAT VESSELS SAILING ON
ESTABLISHED SCHEDULES SHALL BE PERMITTED TO SELL MARIHUANA PRODUCTS  FOR
A PERIOD OF THREE HOURS PRIOR TO THE REGULAR ADVERTISED SAILING TIME.
  12.  EACH  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL KEEP AND MAIN-
TAIN UPON THE LICENSED PREMISES, ADEQUATE RECORDS  OF  ALL  TRANSACTIONS
INVOLVING  THE BUSINESS TRANSACTED BY SUCH LICENSEE WHICH SHALL SHOW THE
AMOUNT OF MARIHUANA  PRODUCTS,  IN  AN  APPLICABLE  METRIC  MEASUREMENT,
PURCHASED  BY SUCH LICENSEE TOGETHER WITH THE NAMES, LICENSE NUMBERS AND
PLACES OF BUSINESS OF THE PERSONS FROM WHOM THE SAME WERE PURCHASED, THE
AMOUNT INVOLVED IN SUCH PURCHASES, AS WELL AS  THE  SALES  OF  MARIHUANA
PRODUCTS  MADE  BY  SUCH  LICENSEE.  THE  BUREAU IS HEREBY AUTHORIZED TO
PROMULGATE RULES AND REGULATIONS PERMITTING AN ON-SITE LICENSEE  OPERAT-
ING  TWO OR MORE PREMISES SEPARATELY LICENSED TO SELL MARIHUANA PRODUCTS
FOR ON-SITE CONSUMPTION TO INAUGURATE OR RETAIN IN THIS STATE METHODS OR
PRACTICES  OF  CENTRALIZED  ACCOUNTING,  BOOKKEEPING,  CONTROL  RECORDS,
REPORTING,  BILLING, INVOICING OR PAYMENT RESPECTING PURCHASES, SALES OR
DELIVERIES OF MARIHUANA PRODUCTS, OR METHODS AND PRACTICES  OF  CENTRAL-
IZED  RECEIPT OR STORAGE OF MARIHUANA PRODUCTS WITHIN THIS STATE WITHOUT
SEGREGATION OR EARMARKING FOR ANY  SUCH  SEPARATELY  LICENSED  PREMISES,
WHEREVER  SUCH  METHODS  AND  PRACTICES ASSURE THE AVAILABILITY, AT SUCH
LICENSEE'S CENTRAL OR MAIN OFFICE IN  THIS  STATE,  OF  DATA  REASONABLY
NEEDED FOR THE ENFORCEMENT OF THIS CHAPTER. SUCH RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  13. ALL RETAIL LICENSED PREMISES SHALL BE SUBJECT TO INSPECTION BY ANY
PEACE  OFFICER,  ACTING PURSUANT TO HIS OR HER SPECIAL DUTIES, OR POLICE
OFFICER AND BY THE DULY AUTHORIZED REPRESENTATIVES OF THE BUREAU, DURING
THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR THE TRANSACTION  OF  BUSI-
NESS.
  14.  A  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL NOT PROVIDE MARI-
HUANA PRODUCTS TO ANY PERSON UNDER THE  AGE  OF  TWENTY-ONE  OR  TO  ANY
PERSON WHO IS VISIBLY IMPAIRED.
  §  178.  ADVERTISING  AND  FORMS  OF  THE ISSUANCE OF LICENSES. 1. THE
BUREAU IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGULATIONS  GOVERN-
ING  THE ADVERTISING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARI-
HUANA RETAILERS, AND ANY MARIHUANA RELATED PRODUCTS OR SERVICES.
  2. THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING  ADVERTISING
THAT:
  (A) IS FALSE, DECEPTIVE, OR MISLEADING;
  (B) PROMOTES OVERCONSUMPTION;
  (C) DEPICTS CONSUMPTION BY CHILDREN OR OTHER MINORS;
  (D) IS DESIGNED IN ANY WAY TO APPEAL TO CHILDREN OR OTHER MINORS;
  (E)  IS  WITHIN TWO HUNDRED FEET OF THE PERIMETER OF A SCHOOL GROUNDS,
PLAYGROUND, CHILD CARE CENTER, PUBLIC PARK, OR LIBRARY;
  (F) IS IN PUBLIC TRANSIT VEHICLES AND STATIONS;
  (G) IS IN THE FORM OF AN UNSOLICITED INTERNET POP-UP; OR
  (H) IS ON PUBLICLY OWNED OR OPERATED PROPERTY.
  3. THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING ALL  MARKET-
ING  STRATEGIES AND IMPLEMENTATION INCLUDING, BUT NOT LIMITED TO, BRAND-
ING, PACKAGING, LABELING, LOCATION OF MARIHUANA RETAILERS AND  MARIHUANA
MICROBUSINESSES, AND ADVERTISEMENTS THAT ARE DESIGNED TO:
  (A) APPEAL TO PERSONS LESS THEN TWENTY-ONE YEARS OF AGE; OR
  (B) DISSEMINATE FALSE OR MISLEADING INFORMATION TO CUSTOMERS.
  4. THE BUREAU SHALL PROMULGATE EXPLICIT RULES REQUIRING THAT:

S. 3040--B                         36

  (A)  ALL  ADVERTISEMENTS AND MARKETING ACCURATELY AND LEGIBLY IDENTIFY
THE LICENSEE RESPONSIBLE FOR ITS CONTENT; AND
  (B)  ANY  BROADCAST,  CABLE,  RADIO,  PRINT AND DIGITAL COMMUNICATIONS
ADVERTISEMENTS ONLY BE PLACED WHERE THE AUDIENCE IS REASONABLY  EXPECTED
TO  BE  TWENTY-ONE  YEARS  OF  AGE  OR OLDER, AS DETERMINED BY RELIABLE,
UP-TO-DATE AUDIENCE COMPOSITION DATA.
  § 179. PACKAGING OF  MARIHUANA  PRODUCTS.  1.  THE  BUREAU  IS  HEREBY
AUTHORIZED  TO  PROMULGATE RULES AND REGULATIONS GOVERNING THE PACKAGING
OF MARIHUANA PRODUCTS, SOLD OR POSSESSED FOR SALE IN NEW YORK STATE.
  2. SUCH REGULATIONS SHALL INCLUDE REQUIRING THAT:
  (A) PACKAGING  MEETS  REQUIREMENTS  SIMILAR  TO  THE  FEDERAL  "POISON
PREVENTION PACKAGING ACT OF 1970," 15 U.S.C. SEC 1471 ET SEQ.;
  (B) ALL MARIHUANA-INFUSED PRODUCTS SHALL HAVE A SEPARATE PACKAGING FOR
EACH SERVING;
  (C)  PRIOR  TO DELIVERY OR SALE AT A RETAILER, MARIHUANA AND MARIHUANA
PRODUCTS SHALL BE LABELED AND PLACED IN  A  RESEALABLE,  CHILD-RESISTANT
PACKAGE; AND
  (D)  PACKAGES  AND  LABELS SHALL NOT BE MADE TO BE ATTRACTIVE TO CHIL-
DREN.
  § 180. LABELING OF MARIHUANA PRODUCTS. 1. THE BUREAU IS HEREBY AUTHOR-
IZED TO PROMULGATE RULES AND  REGULATIONS  GOVERNING  THE  LABELING  AND
OFFERING OF MARIHUANA PRODUCTS FOR SALE WITHIN THIS STATE.
  2.  SUCH  RULES  AND  REGULATIONS SHALL BE CALCULATED TO: (A) PROHIBIT
DECEPTION OF THE CONSUMER; (B) AFFORD ADEQUATE INFORMATION AS TO QUALITY
AND IDENTITY OF THE PRODUCT; AND (C) ACHIEVE NATIONAL UNIFORMITY IN THIS
BUSINESS.
  3. THE BUREAU MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF HEALTH WHEN
NECESSARY BEFORE PROMULGATING RULES AND REGULATIONS UNDER THIS SECTION.
  4. SUCH REGULATIONS SHALL INCLUDE REQUIRING LABELS  WARNING  CONSUMERS
OF  ANY  POTENTIAL IMPACT ON HUMAN HEALTH RESULTING FROM THE CONSUMPTION
OF MARIHUANA PRODUCTS THAT SHALL BE AFFIXED TO THOSE PRODUCTS WHEN SOLD,
IF SUCH LABELS ARE DEEMED WARRANTED BY  THE  BUREAU  AFTER  CONSULTATION
WITH THE DEPARTMENT OF HEALTH.
  5.  ALL  MARIHUANA  AND  MARIHUANA  PRODUCT  LABELS  AND INSERTS SHALL
INCLUDE THE FOLLOWING INFORMATION PROMINENTLY DISPLAYED IN A  CLEAR  AND
LEGIBLE  FASHION  IN  ACCORDANCE  WITH  THE REQUIREMENTS, INCLUDING FONT
SIZE, PRESCRIBED BY THE BUREAU OR THE DEPARTMENT  OF  HEALTH:  NOT  LESS
THAN 8 POINT FONT:
  (A) MANUFACTURE DATE AND SOURCE;
  (B) FOR PACKAGES CONTINUING ONLY DRIED FLOWER, THE NET WEIGHT OF MARI-
HUANA IN THE PACKAGE;
  (C)  IDENTIFICATION OF THE SOURCE AND DATE OF CULTIVATION, THE TYPE OF
MARIHUANA OR MARIHUANA PRODUCT AND THE DATE OF MANUFACTURING AND PACKAG-
ING;
  (D) LIST OF PHARMACOLOGICALLY ACTIVE INGREDIENTS, INCLUDING,  BUT  NOT
LIMITED  TO,  TETRAHYDRICANNABINAL  (THC),  CANNIBIDIOL (CBP), AND OTHER
CANNABINOID CONTENT, THE THC AND OTHER CANNABINOID AMOUNT IN  MILLIGRAMS
PER  SERVING,  SERVINGS  PER  PACKAGE, AND THE THC AND OTHER CANNIBINOID
AMOUNT IN MILLIGRAMS FOR THE PACKAGE TOTAL, AND THE POTENCY OF THE MARI-
HUANA OR MARIHUANA PRODUCT BY REFERENCE TO THE AMOUNT OF  TETRAHYDROCAN-
NIBINOL AND CANIBIDIOL IN EACH SERVING;
  (E)  FOR  MARIHUANA PRODUCTS, A LIST OF ALL INGREDIENTS AND DISCLOSURE
OF NUTRITIONAL INFORMATION IN THE SAME MANNER AS THE FEDERAL NUTRITIONAL
LABELING REQUIREMENTS IN 21 C.F.R. SECTION 101.9;

S. 3040--B                         37

  (F) A LIST OF ANY SOLVENTS,  NONORGANIC  PESTICIDES,  HERBICIDES,  AND
FERTILIZERS  THAT WERE USED IN THE CULTIVATION, PRODUCTION, AND MANUFAC-
TURE OF SUCH MARIHUANA OR MARIHUANA PRODUCT;
  (G) A WARNING IF NUTS OR OTHER KNOWN ALLERGENS ARE USED;
  (H)  INFORMATION  ASSOCIATED  WITH THE UNIQUE IDENTIFIER ISSUED BY THE
BUREAU OF MARIHUANA POLICY; AND
  (I) ANY OTHER REQUIREMENTS SET BY THE BUREAU OF MARIHUANA POLICY.
  6. ONLY GENERIC FOOD NAMES MAY BE USED TO DESCRIBE THE INGREDIENTS  IN
EDIBLE MARIHUANA PRODUCTS.
  7.  SUCH  RULES AND REGULATIONS SHALL ESTABLISH METHODS AND PROCEDURES
FOR DETERMINING SERVING SIZES  FOR  MARIHUANA-INFUSED  PRODUCTS,  ACTIVE
CANNABIS  CONCENTRATION  PER  SERVING  SIZE,  AND NUMBER OF SERVINGS PER
CONTAINER. SUCH REGULATIONS SHALL ALSO REQUIRE A NUTRITIONAL FACT  PANEL
THAT INCORPORATES DATA REGARDING SERVING SIZES AND POTENCY THEREOF.
  8. SUCH RULES AND REGULATIONS SHALL REQUIRE INFORMATION CONTAINING THE
LICENSE  NUMBER OF THE MARIHUANA PRODUCER AND PROCESSOR FACILITIES WHERE
THE MARIHUANA WAS GROWN AND PROCESSED.
  9. THE PACKAGING, SALE, OR POSSESSION BY ANY LICENSEE OF ANY MARIHUANA
PRODUCT NOT LABELED OR OFFERED IN CONFORMITY WITH RULES AND  REGULATIONS
PROMULGATED  IN  ACCORDANCE  WITH  THIS SECTION SHALL BE GROUNDS FOR THE
IMPOSITION OF A FINE, AND/OR THE SUSPENSION, REVOCATION OR  CANCELLATION
OF THE LICENSE.
  §  181. SEED TO SALE TRACKING. 1. NO LATER THAN FIFTEEN MONTHS FOLLOW-
ING THE EFFECTIVE DATE OF THE MARIHUANA REGULATION AND TAXATION ACT, THE
BUREAU SHALL ESTABLISH A SEED TO SALE TRACKING PROGRAM FOR REPORTING THE
MOVEMENT OF MARIHUANA AND MARIHUANA PRODUCTS THROUGHOUT THE DISTRIBUTION
CHAIN THAT UTILIZES A UNIQUE IDENTIFIER  AND  SECURE  PACKAGING  AND  IS
CAPABLE OF PROVIDING INFORMATION THAT CAPTURES, AT A MINIMUM, ALL OF THE
FOLLOWING:
  (A) THE LICENSEE RECEIVING THE PRODUCT;
  (B) THE TRANSACTION DATE; AND
  (C)  THE  PRODUCER  FROM  WHICH  THE PRODUCT ORIGINATES, INCLUDING THE
ASSOCIATED UNIQUE IDENTIFIER.
  2. (A) THE BUREAU SHALL CREATE AN ELECTRONIC DATABASE  CONTAINING  THE
ELECTRONIC  SHIPPING  MANIFESTS  TO FACILITATE THE ADMINISTRATION OF THE
SEED TO SALE PROGRAM TRACKING, WHICH SHALL INCLUDE, BUT NOT  BE  LIMITED
TO, THE FOLLOWING INFORMATION:
  (B) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS SHIPPED;
  (C) THE ESTIMATED TIMES OF DEPARTURE AND ARRIVAL;
  (D) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS RECEIVED;
  (E) THE ACTUAL TIME OF DEPARTURE AND ARRIVAL;
  (F) A CATEGORIZATION OF THE PRODUCT; AND
  (G)  THE LICENSE NUMBER AND UNIQUE IDENTIFIER ISSUED BY THE BUREAU FOR
ALL LICENSEES INVOLVED IN  THE  SHIPPING  PROCESS,  INCLUDING,  BUT  NOT
LIMITED TO, PRODUCER, PROCESSOR, RETAILER, AND DELIVERY LICENSEES.
  (3)  THE  DATABASE  SHALL  BE  DESIGNED TO FLAG IRREGULARITIES FOR THE
BUREAU TO INVESTIGATE.
  § 182. RENEWALS OF LICENSES AND PERMITS. 1. EACH LICENSE  AND  PERMIT,
ISSUED PURSUANT TO THIS ARTICLE MAY BE RENEWED UPON APPLICATION THEREFOR
BY  THE LICENSEE OR PERMITTEE AND THE PAYMENT OF THE ANNUAL FEE FOR SUCH
LICENSE OR PERMIT AS PRESCRIBED BY THIS ARTICLE. IN THE CASE OF APPLICA-
TIONS FOR RENEWALS, THE BUREAU MAY DISPENSE  WITH  THE  REQUIREMENTS  OF
SUCH  STATEMENTS  AS  IT DEEMS UNNECESSARY IN VIEW OF THOSE CONTAINED IN
THE APPLICATION MADE FOR THE ORIGINAL LICENSE  OR  PERMIT,  BUT  IN  ANY
EVENT  THE  SUBMISSION  OF PHOTOGRAPHS OF THE LICENSED PREMISES SHALL BE
DISPENSED WITH, PROVIDED THE APPLICANT FOR SUCH  RENEWAL  SHALL  FILE  A

S. 3040--B                         38

STATEMENT  WITH  SUCH BUREAU TO THE EFFECT THAT THERE HAS BEEN NO ALTER-
ATION OF SUCH PREMISES SINCE THE  ORIGINAL  LICENSE  WAS  ISSUED.    THE
BUREAU  MAY  MAKE  SUCH  RULES AS MAY BE NECESSARY NOT INCONSISTENT WITH
THIS CHAPTER REGARDING APPLICATIONS FOR RENEWALS OF LICENSES AND PERMITS
AND  THE  TIME  FOR MAKING THE SAME.   EACH APPLICANT MUST SUBMIT TO THE
BUREAU DOCUMENTATION OF THE RACIAL, ETHNIC, AND GENDER DIVERSITY OF  THE
APPLICANT'S  EMPLOYEES  AND  OWNERS  PRIOR  TO A LICENSE OR PERMIT BEING
RENEWED.
  2. THE BUREAU SHALL PROVIDE AN APPLICATION FOR RENEWAL  OF  A  LICENSE
ISSUED  UNDER THIS ARTICLE NOT LESS THAN SIXTY DAYS PRIOR TO THE EXPIRA-
TION OF THE CURRENT LICENSE.
  § 183. INFORMATION TO BE PROVIDED BY APPLICANTS.    1.  THE  FOLLOWING
SHALL  BE  THE  INFORMATION  REQUIRED ON AN APPLICATION FOR A LICENSE OR
PERMIT:
  (A) A STATEMENT OF IDENTITY AS FOLLOWS:
  (I) IF THE APPLICANT IS AN INDIVIDUAL, HIS OR HER NAME, DATE AND PLACE
OF BIRTH, CITIZENSHIP, PERMANENT  HOME  ADDRESS,  TELEPHONE  NUMBER  AND
SOCIAL  SECURITY  NUMBER,  AS WELL AS ANY OTHER NAMES BY WHICH HE OR SHE
HAS CONDUCTED A BUSINESS AT ANY TIME.
  (II) IF THE APPLICANT IS A CORPORATION OR A LIMITED  LIABILITY  CORPO-
RATION, THE CORPORATE NAME OF THE APPLICANT, ITS PLACE OF INCORPORATION,
ITS  MAIN  BUSINESS  ADDRESS  (AND  IF SUCH MAIN BUSINESS ADDRESS IS NOT
WITHIN THE STATE, THE ADDRESS OF ITS MAIN PLACE OF BUSINESS  WITHIN  THE
STATE), OTHER NAMES BY WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS
AT  ANY  TIME, ITS TELEPHONE NUMBER, ITS FEDERAL EMPLOYER IDENTIFICATION
NUMBER, AND THE NAMES, AGES, CITIZENSHIP, AND PERMANENT  HOME  ADDRESSES
OF ITS DIRECTORS, OFFICERS AND ITS SHAREHOLDERS (EXCEPT THAT IF THERE BE
MORE  THAN  TEN SHAREHOLDERS THEN THOSE SHAREHOLDERS HOLDING TEN PERCENT
OR MORE OF ANY CLASS OF ITS SHARES).
  (III) IF THE APPLICANT IS A PARTNERSHIP, ITS NAME, ITS  MAIN  BUSINESS
ADDRESS  (AND IF SUCH MAIN BUSINESS ADDRESS IS NOT WITHIN THE STATE, THE
ADDRESS OF ITS MAIN PLACE OF BUSINESS WITHIN THE STATE), OTHER NAMES  BY
WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELE-
PHONE NUMBER, ITS FEDERAL EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES,
AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES OF EACH OF ITS PARTNERS.
  (B)  A  STATEMENT IDENTIFYING THE STREET AND NUMBER OF THE PREMISES TO
BE LICENSED, IF THE PREMISES HAS A STREET AND NUMBER, AND OTHERWISE SUCH
DESCRIPTION AS WILL REASONABLY INDICATE  THE  LOCALITY  THEREOF;  PHOTO-
GRAPHS, DRAWINGS OR OTHER ITEMS RELATED TO THE APPEARANCE OF THE INTERI-
OR OR EXTERIOR OF SUCH PREMISES, AND A FLOOR PLAN OF THE INTERIOR, SHALL
BE  REQUIRED.  THE  APPLICANT  SHALL ALSO STATE THE NATURE OF HIS OR HER
INTEREST IN THE PREMISES; AND THE NAME OF ANY OTHER PERSON INTERESTED AS
A PARTNER, JOINT VENTURER, INVESTOR OR LENDER WITH THE APPLICANT  EITHER
IN THE PREMISES OR IN THE BUSINESS TO BE LICENSED.
  (C)  A DESCRIPTION OF ANY OTHER MARIHUANA LICENSE OR PERMIT UNDER THIS
ARTICLE, WITHIN THE PAST TEN YEARS, THE APPLICANT (INCLUDING  ANY  OFFI-
CERS,  DIRECTORS,  SHAREHOLDERS  OR  PARTNERS LISTED IN THE STATEMENT OF
IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION OR THE  SPOUSE  OF  ANY
SUCH PERSON) OR THE APPLICANT'S SPOUSE HELD OR APPLIED FOR.
  (D)  A  DESCRIPTION  OF THE APPLICANT'S PLAN TO ENSURE DIVERSITY AMONG
THE APPLICANT'S EMPLOYEES, INCLUDING STRATEGIES FOR ENSURING:
  (I) GENDER DIVERSITY;
  (II) RACIAL AND ETHNIC DIVERSITY THAT REFLECTS THE DEMOGRAPHICS WITHIN
THE MUNICIPALITY IN WHICH THE  APPLICANT'S  PROPOSED  BUSINESS  WILL  BE
LOCATED; AND

S. 3040--B                         39

  (III) THAT PERSONS WITH PRIOR CRIMINAL CONVICTIONS ARE NOT BARRED FROM
EMPLOYMENT.
  (E)  A  STATEMENT  THAT  THE LOCATION AND LAYOUT OF THE PREMISES TO BE
LICENSED DOES NOT VIOLATE ANY REQUIREMENT OF THIS  CHAPTER  RELATING  TO
LOCATION AND LAYOUT OF LICENSED PREMISES, WITH A COPY OF THE CERTIFICATE
OF OCCUPANCY FOR THE PREMISES.
  (F)  A  STATEMENT THAT THE APPLICANT HAS CONTROL OF THE PREMISES TO BE
LICENSED BY OWNERSHIP OF A FEE INTEREST OR VIA A  LEASEHOLD,  MANAGEMENT
AGREEMENT,  OR  OTHER  AGREEMENT  GIVING  THE APPLICANT CONTROL OVER THE
PREMISES, WITH A TERM AT LEAST AS LONG AS  THE  LICENSE  FOR  WHICH  THE
APPLICATION  IS BEING MADE, OR BY A BINDING CONTRACT TO ACQUIRE THE SAME
AND A STATEMENT OF IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION  FOR
THE  LESSOR  OF  ANY  LEASEHOLD, MANAGER OF ANY MANAGEMENT AGREEMENT, OR
OTHER AGREEMENT GIVING THE APPLICANT CONTROL OVER THE PREMISES,  WITH  A
COPY  OF  THE  LEASE, CONTRACT, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT
GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES,
OR DEED EVIDENCING FEE OWNERSHIP OF THE PREMISES.
  (G) A FINANCIAL STATEMENT ADEQUATE TO SHOW ALL PERSONS  WHO,  DIRECTLY
OR INDIRECTLY HAVE AN ECONOMIC INTEREST IN THE ESTABLISHMENT OR ACQUISI-
TION  OF  THE  BUSINESS  FOR  WHICH THE LICENSE OR PERMIT APPLICATION IS
BEING MADE, TO IDENTIFY THE SOURCES OF  FUNDS  TO  BE  APPLIED  IN  SUCH
ESTABLISHMENT  OR  ACQUISITION, AND TO DESCRIBE THE TERMS AND CONDITIONS
GOVERNING SUCH ESTABLISHMENT WITH COPIES OF SUCH FINANCIAL DOCUMENTS  AS
THE BUREAU MAY REASONABLY REQUIRE.
  (H)  THE FINGERPRINTS OF THE APPLICANTS. FINGERPRINTS SUBMITTED BY THE
APPLICANTS SHALL BE TRANSMITTED TO  THE  DIVISION  OF  CRIMINAL  JUSTICE
SERVICES AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR
STATE AND NATIONAL CRIMINAL HISTORY RECORD CHECKS.
  2. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE SIGNED BY THE APPLICANT
(IF AN INDIVIDUAL), BY A MANAGING PARTNER (IF A LIMITED LIABILITY CORPO-
RATION),  BY  AN  OFFICER  (IF  A CORPORATION), OR BY ALL PARTNERS (IF A
PARTNERSHIP). EACH PERSON SIGNING SUCH APPLICATION SHALL  VERIFY  IT  OR
AFFIRM IT AS TRUE UNDER THE PENALTIES OF PERJURY.
  3. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE ACCOMPANIED BY A CHECK,
DRAFT  OR  OTHER FORMS OF PAYMENT AS THE BUREAU MAY REQUIRE OR AUTHORIZE
IN THE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE OR PERMIT.
  4. IF THERE BE ANY CHANGE, AFTER THE FILING OF THE APPLICATION OR  THE
GRANTING  OF  A LICENSE, IN ANY OF THE FACTS REQUIRED TO BE SET FORTH IN
SUCH APPLICATION, A SUPPLEMENTAL STATEMENT GIVING NOTICE OF SUCH CHANGE,
COST AND SOURCE OF MONEY INVOLVED IN THE CHANGE, DULY VERIFIED, SHALL BE
FILED WITH THE BUREAU WITHIN TEN DAYS AFTER SUCH CHANGE. FAILURE  TO  DO
SO  SHALL,  IF  WILLFUL  AND  DELIBERATE, BE CAUSE FOR REVOCATION OF THE
LICENSE.
  5. IN GIVING ANY NOTICE, OR TAKING ANY ACTION IN REFERENCE TO A LICEN-
SEE OF A LICENSED PREMISES, THE BUREAU MAY  RELY  UPON  THE  INFORMATION
FURNISHED   IN  SUCH  APPLICATION  AND  IN  ANY  SUPPLEMENTAL  STATEMENT
CONNECTED THEREWITH, AND SUCH INFORMATION MAY BE PRESUMED TO BE CORRECT,
AND SHALL BE BINDING UPON A LICENSEE OR LICENSED PREMISES AS IF CORRECT.
ALL INFORMATION REQUIRED TO BE FURNISHED IN SUCH APPLICATION OR  SUPPLE-
MENTAL STATEMENTS SHALL BE DEEMED MATERIAL IN ANY PROSECUTION FOR PERJU-
RY,  ANY PROCEEDING TO REVOKE, CANCEL OR SUSPEND ANY LICENSE, AND IN THE
BUREAU'S DETERMINATION TO APPROVE OR DENY THE LICENSE.
  6. THE BUREAU MAY IN ITS DISCRETION WAIVE THE SUBMISSION OF ANY  CATE-
GORY  OF  INFORMATION  DESCRIBED  IN  THIS  SECTION  FOR ANY CATEGORY OF
LICENSE OR PERMIT, PROVIDED THAT IT SHALL NOT BE PERMITTED TO WAIVE  THE

S. 3040--B                         40

REQUIREMENT  FOR  SUBMISSION  OF ANY SUCH CATEGORY OF INFORMATION SOLELY
FOR AN INDIVIDUAL APPLICANT OR APPLICANTS.
  §  184.  NOTIFICATION  TO MUNICIPALITIES. 1. NOT LESS THAN THIRTY DAYS
BEFORE FILING ANY OF THE  FOLLOWING  APPLICATIONS,  AN  APPLICANT  SHALL
NOTIFY  THE MUNICIPALITY IN WHICH THE PREMISES IS LOCATED OF SUCH APPLI-
CANT'S INTENT TO FILE SUCH AN APPLICATION FOR A:
  (A) MARIHUANA PRODUCER LICENSE;
  (B) MARIHUANA PROCESSOR LICENSE;
  (C) MARIHUANA MICROBUSINESS LICENSE;
  (D) MARIHUANA RETAILER LICENSE;
  (E) MARIHUANA RETAILER LICENSE FOR ON-SITE CONSUMPTION;
  (F) MARIHUANA DELIVERY LICENSE;
  (G) MARIHUANA TESTING LICENSE; AND/OR
  (H) ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
  2. SUCH NOTIFICATION SHALL BE MADE TO THE CLERK OF THE  VILLAGE,  TOWN
OR  CITY,  AS  THE  CASE  MAY  BE,  WHEREIN THE PREMISES IS LOCATED. FOR
PURPOSES OF THIS SECTION:
  (A) NOTIFICATION NEED ONLY BE GIVEN TO THE CLERK OF A VILLAGE WHEN THE
PREMISES IS LOCATED WITHIN THE BOUNDARIES OF THE VILLAGE; AND
  (B) IN THE CITY OF NEW YORK, THE COMMUNITY BOARD ESTABLISHED  PURSUANT
TO SECTION TWENTY-EIGHT HUNDRED OF THE NEW YORK CITY CHARTER WITH JURIS-
DICTION  OVER THE AREA IN WHICH THE PREMISES IS LOCATED SHALL BE CONSID-
ERED THE APPROPRIATE PUBLIC BODY TO WHICH NOTIFICATION SHALL BE GIVEN.
  3. FOR PURPOSES OF THIS SECTION, "SUBSTANTIAL CORPORATE CHANGE"  SHALL
MEAN:
  (A) FOR A CORPORATION, A CHANGE OF EIGHTY PERCENT OR MORE OF THE OFFI-
CERS  AND/OR DIRECTORS, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF STOCK
OF SUCH CORPORATION, OR AN EXISTING STOCKHOLDER OBTAINING EIGHTY PERCENT
OR MORE OF THE STOCK OF SUCH CORPORATION; AND
  (B) FOR A LIMITED LIABILITY COMPANY, A CHANGE  OF  EIGHTY  PERCENT  OR
MORE  OF  THE  MANAGING  MEMBERS OF THE COMPANY, OR A TRANSFER OF EIGHTY
PERCENT OR MORE OF OWNERSHIP INTEREST IN SAID COMPANY,  OR  AN  EXISTING
MEMBER OBTAINING A CUMULATIVE OF EIGHTY PERCENT OR MORE OF THE OWNERSHIP
INTEREST IN SAID COMPANY.
  4. SUCH NOTIFICATION SHALL BE MADE IN SUCH FORM AS SHALL BE PRESCRIBED
BY THE RULES OF THE BUREAU.
  5.  A  MUNICIPALITY MAY EXPRESS AN OPINION FOR OR AGAINST THE GRANTING
OF SUCH APPLICATION. ANY SUCH OPINION SHALL BE DEEMED PART OF THE RECORD
UPON WHICH THE BUREAU MAKES ITS  DETERMINATION  TO  GRANT  OR  DENY  THE
APPLICATION.
  6.  SUCH NOTIFICATION SHALL BE MADE BY: CERTIFIED MAIL, RETURN RECEIPT
REQUESTED; OVERNIGHT DELIVERY SERVICE WITH PROOF OF MAILING; OR PERSONAL
SERVICE UPON THE OFFICES OF THE CLERK OR COMMUNITY BOARD.
  7. THE BUREAU SHALL REQUIRE SUCH NOTIFICATION TO BE ON A  STANDARDIZED
FORM  THAT  CAN  BE OBTAINED ON THE INTERNET OR FROM THE BUREAU AND SUCH
NOTIFICATION TO INCLUDE:
  (A) THE TRADE NAME OR "DOING BUSINESS AS" NAME, IF ANY, OF THE  ESTAB-
LISHMENT;
  (B) THE FULL NAME OF THE APPLICANT;
  (C)  THE  STREET  ADDRESS  OF  THE  ESTABLISHMENT, INCLUDING THE FLOOR
LOCATION OR ROOM NUMBER, IF APPLICABLE;
  (D) THE MAILING ADDRESS OF THE ESTABLISHMENT, IF  DIFFERENT  THAN  THE
STREET ADDRESS;
  (E)  THE  NAME, ADDRESS AND TELEPHONE NUMBER OF THE ATTORNEY OR REPRE-
SENTATIVE OF THE APPLICANT, IF ANY;
  (F) A STATEMENT INDICATING WHETHER THE APPLICATION IS FOR:

S. 3040--B                         41

  (I) A NEW ESTABLISHMENT;
  (II) A TRANSFER OF AN EXISTING LICENSED BUSINESS;
  (III) A RENEWAL OF AN EXISTING LICENSE; OR
  (IV) AN ALTERATION OF AN EXISTING LICENSED PREMISES;
  (G)  IF  THE  ESTABLISHMENT IS A TRANSFER OR PREVIOUSLY LICENSED PREM-
ISES, THE NAME OF THE OLD ESTABLISHMENT AND SUCH ESTABLISHMENT'S LICENSE
SERIAL NUMBER;
  (H) IN THE CASE OF A RENEWAL OR ALTERATION  APPLICATION,  THE  LICENSE
SERIAL NUMBER OF THE APPLICANT; AND
  (I) THE TYPE OF LICENSE.
  § 185. LICENSES, PUBLICATION, GENERAL PROVISIONS. 1. THE VARIOUS TYPES
OF  LICENSES  ISSUED  PURSUANT  TO  THIS ARTICLE SHALL BE DISTINCTIVE IN
COLOR AND DESIGN SO AS TO BE READILY DISTINGUISHABLE FROM EACH OTHER.
  2. NO LICENSE SHALL BE TRANSFERABLE OR ASSIGNABLE EXCEPT THAT NOTWITH-
STANDING ANY OTHER PROVISION OF LAW, THE LICENSE OF  A  SOLE  PROPRIETOR
CONVERTING  TO  CORPORATE  FORM,  WHERE SUCH PROPRIETOR BECOMES THE SOLE
STOCKHOLDER AND ONLY OFFICER AND DIRECTOR OF SUCH NEW  CORPORATION,  MAY
BE  TRANSFERRED  TO  THE SUBJECT CORPORATION IF ALL REQUIREMENTS OF THIS
CHAPTER REMAIN THE SAME WITH RESPECT TO SUCH LICENSE AS TRANSFERRED AND,
FURTHER, THE LICENSEE SHALL TRANSMIT TO THE BUREAU, WITHIN TEN  DAYS  OF
THE  TRANSFER  OF  LICENSE  ALLOWABLE  UNDER THIS SUBDIVISION, ON A FORM
PRESCRIBED BY THE BUREAU, NOTIFICATION OF THE TRANSFER OF SUCH LICENSE.
  3. NO LICENSE SHALL BE PLEDGED OR DEPOSITED AS COLLATERAL SECURITY FOR
ANY LOAN OR UPON ANY OTHER CONDITION; AND ANY SUCH  PLEDGE  OR  DEPOSIT,
AND ANY CONTRACT PROVIDING THEREFOR, SHALL BE VOID.
  4.  LICENSES  ISSUED  UNDER THIS ARTICLE SHALL CONTAIN, IN ADDITION TO
ANY FURTHER INFORMATION OR MATERIAL TO BE PRESCRIBED BY THE RULES OF THE
BUREAU, THE FOLLOWING INFORMATION: (A) NAME OF PERSON TO WHOM LICENSE IS
ISSUED; (B) KIND OF LICENSE AND WHAT KIND OF  TRAFFIC  IN  MARIHUANA  IS
THEREBY  PERMITTED;  (C) DESCRIPTION BY STREET AND NUMBER, OR OTHERWISE,
OF LICENSED PREMISES; AND (D) A STATEMENT IN SUBSTANCE THAT SUCH LICENSE
SHALL NOT BE DEEMED A PROPERTY OR VESTED  RIGHT,  AND  THAT  IT  MAY  BE
REVOKED AT ANY TIME PURSUANT TO LAW.
  5. THERE SHALL BE PRINTED AND FURNISHED BY THE BUREAU TO EACH LICENSEE
A STATEMENT OF THE CAUSES FOR WHICH LICENSES MAY BE REVOKED. SUCH STATE-
MENT  SHALL BE PREPARED BY THE BUREAU AND DELIVERED TO THE LICENSEE WITH
HIS OR HER LICENSE OR AS SOON THEREAFTER  AS  MAY  BE  PRACTICABLE.  ANY
AMENDMENTS  THERETO SHALL ALSO BE SENT BY THE BUREAU TO ALL LICENSEES AS
SOON AS MAY BE PRACTICABLE AFTER SUCH AMENDMENTS. FAILURE TO  SEND  SUCH
STATEMENTS  OR  CHANGES  THEREIN, OR FAILURE TO RECEIVE THE SAME, OR ANY
MISSTATEMENT OR ERROR CONTAINED IN SUCH STATEMENTS OR AMENDMENTS  SHALL,
HOWEVER,  NOT BE AN EXCUSE OR JUSTIFICATION FOR ANY VIOLATION OF LAW, OR
PREVENT, OR REMIT, OR DECREASE ANY PENALTY OR FORFEITURE THEREFOR.
  6. BEFORE COMMENCING OR DOING ANY BUSINESS FOR THE TIME  FOR  WHICH  A
LICENSE  HAS  BEEN  ISSUED  SAID LICENSE SHALL BE ENCLOSED IN A SUITABLE
WOOD OR METAL FRAME HAVING A CLEAR GLASS SPACE AND A SUBSTANTIAL WOOD OR
METAL BACK SO THAT THE WHOLE OF SAID LICENSE MAY BE  SEEN  THEREIN,  AND
SHALL  BE POSTED UP AND AT ALL TIMES DISPLAYED IN A CONSPICUOUS PLACE IN
THE ROOM WHERE SUCH BUSINESS IS CARRIED ON, SO THAT ALL PERSONS VISITING
SUCH PLACE MAY READILY SEE THE SAME. IT SHALL BE UNLAWFUL FOR ANY PERSON
HOLDING A LICENSE TO POST SUCH LICENSE OR TO PERMIT SUCH LICENSE  TO  BE
POSTED  UPON PREMISES OTHER THAN THE PREMISES LICENSED, OR UPON PREMISES
WHERE TRAFFIC IN MARIHUANA IS BEING CARRIED ON BY ANY PERSON OTHER  THAN
THE  LICENSEE, OR KNOWINGLY TO DEFACE, DESTROY OR ALTER ANY SUCH LICENSE
IN ANY RESPECT. WHENEVER A LICENSE SHALL BE LOST  OR  DESTROYED  WITHOUT
FAULT  ON  THE PART OF THE LICENSEE OR HIS OR HER AGENTS OR EMPLOYEES, A

S. 3040--B                         42

DUPLICATE LICENSE IN LIEU THEREOF MAY BE ISSUED BY  THE  BUREAU  IN  ITS
DISCRETION  AND  IN  ACCORDANCE  WITH SUCH RULES AND REGULATIONS AND THE
PAYMENT OF SUCH FEES, NOT EXCEEDING FIVE DOLLARS, AS IT MAY PRESCRIBE.
  §  186.  REVOCATION  OF  LICENSES  FOR CAUSE. 1. ANY LICENSE OR PERMIT
ISSUED PURSUANT TO THIS ARTICLE MAY  BE  REVOKED,  CANCELLED,  SUSPENDED
AND/OR  SUBJECTED  TO  THE  IMPOSITION OF A CIVIL PENALTY FOR CAUSE, AND
MUST BE REVOKED FOR THE FOLLOWING CAUSES:
  (A) CONVICTION OF THE LICENSEE, PERMITTEE  OR  HIS  OR  HER  AGENT  OR
EMPLOYEE  FOR SELLING ANY ILLEGAL MARIHUANA OR MARIHUANA PRODUCTS ON THE
PREMISES LICENSED.
  (B) FOR TRANSFERRING, ASSIGNING OR HYPOTHECATING A LICENSE OR PERMIT.
  2. NOTWITHSTANDING THE ISSUANCE OF A  LICENSE  OR  PERMIT  BY  WAY  OF
RENEWAL, THE BUREAU MAY REVOKE, CANCEL OR SUSPEND SUCH LICENSE OR PERMIT
AND/OR  MAY IMPOSE A CIVIL PENALTY AGAINST ANY HOLDER OF SUCH LICENSE OR
PERMIT, AS PRESCRIBED BY THIS SECTION AND SECTION ONE  HUNDRED  NINETEEN
OF  THIS  CHAPTER, FOR CAUSES OR VIOLATIONS OCCURRING DURING THE LICENSE
PERIOD IMMEDIATELY PRECEDING THE ISSUANCE OF SUCH LICENSE OR PERMIT, AND
MAY RECOVER, AS PROVIDED IN SECTION ONE HUNDRED TWELVE OF THIS  CHAPTER,
THE PENAL SUM OF THE BOND ON FILE DURING SAID PERIOD.
  3.  AS  USED  IN THIS SECTION, THE TERM "FOR CAUSE" SHALL ALSO INCLUDE
THE EXISTENCE OF A SUSTAINED AND CONTINUING PATTERN OF  NOISE,  DISTURB-
ANCE, MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES, RELATED
TO  THE  OPERATION  OF THE PREMISES OR THE CONDUCT OF ITS PATRONS, WHICH
ADVERSELY AFFECTS THE HEALTH, WELFARE OR SAFETY OF  THE  INHABITANTS  OF
THE AREA IN WHICH SUCH LICENSED PREMISES ARE LOCATED.
  4.  THE  EXISTENCE  OF  A  SUSTAINED  AND CONTINUING PATTERN OF NOISE,
DISTURBANCE, MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED  PREMISES,
RELATED  TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF ITS PATRONS,
WILL BE PRESUMED UPON THE SIXTH INCIDENT REPORTED TO THE BUREAU BY A LAW
ENFORCEMENT AGENCY OF NOISE OR DISTURBANCE OR MISCONDUCT OR DISORDER  ON
OR  ABOUT THE LICENSED PREMISES OR RELATED TO THE OPERATION OF THE PREM-
ISES OR THE CONDUCT OF ITS PATRONS, IN  ANY  SIXTY  DAY  PERIOD,  ABSENT
CLEAR AND CONVINCING EVIDENCE OF EITHER FRAUDULENT INTENT ON THE PART OF
ANY  COMPLAINANT  OR  A FACTUAL ERROR WITH RESPECT TO THE CONTENT OF ANY
REPORT CONCERNING SUCH COMPLAINT RELIED UPON BY THE BUREAU.
  § 187. PROCEDURE FOR REVOCATION OR CANCELLATION.  1.  ANY  LICENSE  OR
PERMIT  ISSUED  BY  THE  BUREAU PURSUANT TO THIS ARTICLE MAY BE REVOKED,
CANCELLED OR SUSPENDED AND/OR BE SUBJECTED TO THE IMPOSITION OF A  MONE-
TARY PENALTY IN THE MANNER PRESCRIBED BY THIS SECTION.
  2.  THE BUREAU MAY ON ITS OWN INITIATIVE OR ON COMPLAINT OF ANY PERSON
INSTITUTE PROCEEDINGS TO REVOKE, CANCEL OR SUSPEND  ANY  RETAIL  LICENSE
AND  MAY  IMPOSE A CIVIL PENALTY AGAINST THE LICENSEE AFTER A HEARING AT
WHICH THE LICENSEE SHALL BE GIVEN AN OPPORTUNITY TO BE HEARD. SUCH HEAR-
ING SHALL BE HELD IN  SUCH  MANNER  AND  UPON  SUCH  NOTICE  AS  MAY  BE
PRESCRIBED BY THE RULES OF THE BUREAU.
  3.  ALL  OTHER  LICENSES  OR  PERMITS ISSUED UNDER THIS ARTICLE MAY BE
REVOKED, CANCELLED, SUSPENDED AND/OR MADE SUBJECT TO THE IMPOSITION OF A
CIVIL PENALTY BY THE BUREAU AFTER A HEARING TO BE HELD IN THE MANNER  TO
BE DETERMINED BY THE RULES OF THE BUREAU.
  4.  (A) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY IN ALL CASES OF
LICENSEE OR PERMITTEE FAILURE AFTER  RECEIVING  APPROPRIATE  NOTICE,  TO
COMPLY  WITH  A  SUMMONS, SUBPOENA OR WARRANT RELATING TO A PATERNITY OR
CHILD SUPPORT PROCEEDING AND ARREARS IN  PAYMENT  OF  CHILD  SUPPORT  OR
COMBINED  CHILD  AND  SPOUSAL  SUPPORT REFERRED TO THE BUREAU BY A COURT
PURSUANT TO THE REQUIREMENTS OF SECTION TWO HUNDRED FORTY-FOUR-C OF  THE

S. 3040--B                         43

DOMESTIC RELATIONS LAW OR PURSUANT TO SECTION FOUR HUNDRED FIFTY-EIGHT-B
OR FIVE HUNDRED FORTY-EIGHT-B OF THE FAMILY COURT ACT.
  (B)  UPON  RECEIPT  OF  AN  ORDER  FROM  THE COURT BASED ON ARREARS IN
PAYMENT OF CHILD SUPPORT OR COMBINED CHILD AND SPOUSAL SUPPORT  PURSUANT
TO  ONE OF THE FOREGOING PROVISIONS OF LAW, THE BUREAU, IF IT FINDS SUCH
PERSON TO HAVE BEEN ISSUED A LICENSE OR PERMIT, SHALL WITHIN THIRTY DAYS
OF RECEIPT OF SUCH ORDER FROM THE COURT, PROVIDE NOTICE TO THE  LICENSEE
OR  PERMITTEE  OF,  AND INITIATE, A HEARING WHICH SHALL BE HELD AT LEAST
TWENTY DAYS AND NO MORE THAN THIRTY  DAYS  AFTER  THE  SENDING  OF  SUCH
NOTICE  TO  THE  LICENSEE OR PERMITTEE. THE HEARING SHALL BE SOLELY HELD
FOR THE PURPOSE OF DETERMINING WHETHER THERE EXISTS AS OF  THE  DATE  OF
THE  HEARING  PROOF  THAT  FULL PAYMENT OF ALL ARREARS OF SUPPORT ESTAB-
LISHED BY THE ORDER OF THE COURT TO BE DUE FROM THE LICENSEE OR  PERMIT-
TEE  HAVE  BEEN  PAID.  PROOF OF SUCH PAYMENT SHALL BE A CERTIFIED CHECK
SHOWING FULL PAYMENT OF ESTABLISHED ARREARS OR A NOTICE  ISSUED  BY  THE
COURT  OR THE SUPPORT COLLECTION UNIT, WHERE THE ORDER IS PAYABLE TO THE
SUPPORT COLLECTION UNIT DESIGNATED BY THE  APPROPRIATE  SOCIAL  SERVICES
DISTRICT.  SUCH  NOTICE  SHALL STATE THAT FULL PAYMENT OF ALL ARREARS OF
SUPPORT ESTABLISHED BY THE ORDER OF THE COURT TO BE DUE HAVE BEEN  PAID.
THE  LICENSEE  OR  PERMITTEE  SHALL BE GIVEN FULL OPPORTUNITY TO PRESENT
SUCH PROOF OF PAYMENT AT THE HEARING IN PERSON OR BY COUNSEL.  THE  ONLY
ISSUE  TO  BE  DETERMINED  BY  THE  BUREAU AS A RESULT OF THE HEARING IS
WHETHER THE ARREARS HAVE BEEN PAID. NO  EVIDENCE  WITH  RESPECT  TO  THE
APPROPRIATENESS OF THE COURT ORDER OR ABILITY OF THE RESPONDENT PARTY IN
ARREARS TO COMPLY WITH SUCH ORDER SHALL BE RECEIVED OR CONSIDERED BY THE
BUREAU.
  (C)  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF THIS ARTICLE OR OF
ANY OTHER PROVISION OF LAW TO THE CONTRARY, SUCH LICENSE OR PERMIT SHALL
BE SUSPENDED IF AT THE HEARING, PROVIDED FOR BY PARAGRAPH  (B)  OF  THIS
SUBDIVISION, THE LICENSEE OR PERMITTEE FAILS TO PRESENT PROOF OF PAYMENT
AS  REQUIRED  BY  SUCH  PARAGRAPH.   SUCH SUSPENSION SHALL NOT BE LIFTED
UNLESS THE COURT OR THE SUPPORT COLLECTION UNIT, WHERE THE  COURT  ORDER
IS  PAYABLE TO THE SUPPORT COLLECTION UNIT DESIGNATED BY THE APPROPRIATE
SOCIAL SERVICES DISTRICT, ISSUES NOTICE TO THE BUREAU THAT FULL  PAYMENT
OF  ALL  ARREARS  OF SUPPORT ESTABLISHED BY THE ORDER OF THE COURT TO BE
DUE HAVE BEEN PAID.
  (D) UPON RECEIPT OF AN ORDER FROM THE COURT BASED ON FAILURE TO COMPLY
WITH A SUMMONS, SUBPOENA, OR WARRANT RELATING TO A  PATERNITY  OR  CHILD
SUPPORT  PROCEEDING, THE BUREAU, IF IT FINDS SUCH PERSON HAS BEEN ISSUED
A LICENSE OR PERMIT, SHALL WITHIN THIRTY DAYS OF RECEIPT OF  SUCH  ORDER
FROM  THE COURT, PROVIDE NOTICE TO THE LICENSEE OR PERMITTEE THAT HIS OR
HER LICENSE SHALL BE SUSPENDED IN SIXTY DAYS UNLESS  THE  CONDITIONS  IN
PARAGRAPH (E) OF THIS SUBDIVISION ARE MET.
  (E)  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF THIS ARTICLE OR OF
ANY OTHER PROVISION OF LAW TO THE CONTRARY, SUCH LICENSE OR PERMIT SHALL
BE SUSPENDED IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPH (C) OF  THIS
SUBDIVISION UNLESS THE COURT TERMINATES ITS ORDER TO COMMENCE SUSPENSION
PROCEEDINGS. SUCH SUSPENSION SHALL NOT BE LIFTED UNLESS THE COURT ISSUES
AN  ORDER  TO  THE  BUREAU  TERMINATING ITS ORDER TO COMMENCE SUSPENSION
PROCEEDINGS.
  (F) THE BUREAU SHALL INFORM THE COURT OF ALL ACTIONS  TAKEN  HEREUNDER
AS REQUIRED BY LAW.
  (G)  THIS  SUBDIVISION APPLIES TO SUPPORT OBLIGATIONS PAID PURSUANT TO
ANY ORDER OF CHILD SUPPORT OR CHILD AND  SPOUSAL  SUPPORT  ISSUED  UNDER
PROVISIONS OF SECTION TWO HUNDRED THIRTY-SIX OR TWO HUNDRED FORTY OF THE

S. 3040--B                         44

DOMESTIC  RELATIONS  LAW,  OR ARTICLE FOUR, FIVE OR FIVE-A OF THE FAMILY
COURT ACT.
  (H)  NOTWITHSTANDING  ANY INCONSISTENT PROVISION OF THIS ARTICLE OR OF
ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  THE  PROVISIONS  OF  THIS
SUBDIVISION  SHALL  APPLY  TO THE EXCLUSION OF ANY OTHER REQUIREMENTS OF
THIS ARTICLE AND TO THE EXCLUSION OF ANY OTHER REQUIREMENT OF LAW TO THE
CONTRARY.
  5. WHERE A LICENSEE IS CONVICTED OF TWO OR  MORE  QUALIFYING  OFFENSES
WITHIN  A  FIVE YEAR PERIOD, THE BUREAU, UPON RECEIPT OF NOTIFICATION OF
SUCH SECOND OR SUBSEQUENT  CONVICTION  PURSUANT  TO  THE  PROVISIONS  OF
SUBDIVISION  TWO OF SECTION ONE HUNDRED SIX-A OF THIS CHAPTER, SHALL, IN
ADDITION TO ANY OTHER SANCTION OR  CIVIL  OR  CRIMINAL  PENALTY  IMPOSED
PURSUANT TO THIS CHAPTER, IMPOSE ON SUCH LICENSEE A CIVIL PENALTY NOT TO
EXCEED  FIVE HUNDRED DOLLARS. FOR PURPOSES OF THIS SUBDIVISION, A QUALI-
FYING OFFENSE SHALL MEAN: (A) THE OFFENSE DEFINED IN SUBDIVISION ONE  OF
SECTION  SIXTY-FIVE OF THIS CHAPTER; OR (B) THE OFFENSE DEFINED IN PARA-
GRAPH (B) OF SUBDIVISION ONE OF SECTION SIXTY-FIVE-B  OF  THIS  CHAPTER.
FOR  PURPOSES  OF  THIS  SUBDIVISION,  A  CONVICTION OF A LICENSEE OR AN
EMPLOYEE OR AGENT OF SUCH LICENSEE SHALL CONSTITUTE A CONVICTION OF SUCH
LICENSEE.
  § 188. DECISIONS OF THE BUREAU OF MARIHUANA POLICY AND REVIEW  BY  THE
COURTS.   PROVISIONS OF SECTIONS ONE HUNDRED TWENTY, ONE HUNDRED TWENTY-
ONE AND ONE HUNDRED TWENTY-FOUR OF THIS CHAPTER SHALL APPLY TO MARIHUANA
LICENSES ISSUED UNDER THIS ARTICLE.
  § 189. MINORITY  AND  WOMEN-OWNED  BUSINESS  ENTERPRISES.  THE  BUREAU
SHALL:
  1.  ACTIVELY  PROMOTE  RACIAL,  ETHNIC,  AND GEOGRAPHIC DIVERSITY WHEN
LICENSING MARIHUANA GROWERS, PROCESSORS, AND RETAILERS;
  2. ENCOURAGE APPLICANTS WHO QUALIFY AS A MINORITY OR WOMEN-OWNED BUSI-
NESS ENTERPRISE, AS DEFINED IN SECTION THREE HUNDRED TEN OF  THE  EXECU-
TIVE LAW, TO APPLY FOR LICENSES;
  3.  IN  ACCORDANCE  WITH  THE OFFICIAL COMPILATION OF CODES, RULES AND
REGULATIONS OF THE STATE OF NEW YORK TITLE  5,  DEPARTMENT  OF  ECONOMIC
DEVELOPMENT,  CHAPTER  XIV,  DIVISION  OF  MINORITY AND WOMEN'S BUSINESS
DEVELOPMENT, PART 141, SUBMIT AN ANNUAL MASTER GOAL PLAN TO PROMOTE  THE
INCLUSION  OF:  (A) MINORITY-OWNED BUSINESS ENTERPRISES; (B) WOMEN-OWNED
BUSINESS ENTERPRISES; AND (C) MINORITY AND WOMEN-OWNED  BUSINESS  ENTER-
PRISES WITH JUSTIFICATIONS FOR SUCH GOALS; AND
  4.  ACTIVELY  PROMOTE AND ENCOURAGE APPLICANTS THAT PROMOTE AND ENSURE
RACIAL, ETHNIC, AND GENDER DIVERSITY IN THEIR WORKFORCE  WHEN  LICENSING
MARIHUANA GROWERS, PROCESSORS, AND RETAILERS.
  §  190.  DISPOSITION  OF  MONEYS RECEIVED FOR LICENSE FEES. THE BUREAU
SHALL ESTABLISH A SCALE OF APPLICATION,  LICENSING,  AND  RENEWAL  FEES,
BASED  UPON THE COST OF ENFORCING THIS ARTICLE AND THE SIZE OF THE MARI-
HUANA BUSINESS BEING LICENSED, AS FOLLOWS:
  1. EACH LICENSING AUTHORITY SHALL CHARGE EACH LICENSEE A LICENSURE AND
RENEWAL FEE, AS APPLICABLE. THE  LICENSURE  AND  RENEWAL  FEE  SHALL  BE
CALCULATED  TO COVER THE COSTS OF ADMINISTERING THIS ARTICLE. THE LICEN-
SURE FEE MAY VARY DEPENDING  UPON  THE  VARYING  COSTS  ASSOCIATED  WITH
ADMINISTERING  THE  VARIOUS  REGULATORY  REQUIREMENTS OF THIS ARTICLE AS
THEY RELATE TO THE NATURE AND SCOPE OF THE  DIFFERENT  LICENSURE  ACTIV-
ITIES,  BUT  SHALL  NOT  EXCEED  THE  REASONABLE REGULATORY COSTS TO THE
LICENSING AUTHORITY.
  2. THE TOTAL FEES ASSESSED PURSUANT TO THIS ARTICLE SHALL BE SET AT AN
AMOUNT THAT WILL FAIRLY AND PROPORTIONATELY  GENERATE  SUFFICIENT  TOTAL
REVENUE TO FULLY COVER THE TOTAL COSTS OF ADMINISTERING THIS ARTICLE.

S. 3040--B                         45

  3.  ALL  LICENSE  FEES  SHALL  BE SET ON A SCALED BASIS BY THE BUREAU,
DEPENDENT ON THE SIZE OF THE BUSINESS.
  4.  THE  BUREAU SHALL DEPOSIT ALL FEES COLLECTED IN THE NEW YORK STATE
MARIHUANA REVENUE FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-BB OF
THE STATE FINANCE LAW.
  § 191. PERSONS FORBIDDEN TO TRAFFIC IN  MARIHUANA.  1.  THE  FOLLOWING
PERSONS ARE FORBIDDEN TO TRAFFIC IN MARIHUANA:
  (A) A PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
  (B)  A  PERSON  WHO  IS NOT A CITIZEN OF THE UNITED STATES OR AN ALIEN
LAWFULLY ADMITTED FOR PERMANENT RESIDENCE IN THE UNITED STATES.
  (C) A CO-PARTNERSHIP OR A CORPORATION, UNLESS EACH MEMBER OF THE PART-
NERSHIP, OR EACH OF THE PRINCIPAL OFFICERS AND DIRECTORS OF  THE  CORPO-
RATION,  IS A CITIZEN OF THE UNITED STATES OR AN ALIEN LAWFULLY ADMITTED
FOR PERMANENT RESIDENCE IN THE UNITED STATES, NOT LESS  THAN  TWENTY-ONE
YEARS  OF  AGE,  AND  HAS NOT BEEN CONVICTED OF ANY FELONY OR ANY OF THE
MISDEMEANORS, SPECIFIED IN SECTION 230.20 OR 230.40 OF THE PENAL LAW, OR
IF SO CONVICTED HAS RECEIVED, SUBSEQUENT TO SUCH CONVICTION,  AN  EXECU-
TIVE  PARDON  THEREFOR  REMOVING  THIS  DISABILITY A CERTIFICATE OF GOOD
CONDUCT GRANTED BY THE DEPARTMENT OF CORRECTIONS  AND  COMMUNITY  SUPER-
VISION,  OR  A  CERTIFICATE  OF  RELIEF FROM DISABILITIES GRANTED BY THE
DEPARTMENT OF CORRECTIONS AND COMMUNITY SUPERVISION OR A COURT  OF  THIS
STATE  PURSUANT  TO  THE  PROVISIONS  OF  ARTICLE  TWENTY-THREE  OF  THE
CORRECTION LAW TO REMOVE THE DISABILITY UNDER THIS  SECTION  BECAUSE  OF
SUCH  CONVICTION;  PROVIDED  HOWEVER  THAT A CORPORATION WHICH OTHERWISE
CONFORMS TO THE REQUIREMENTS OF THIS SECTION AND ARTICLE MAY BE LICENSED
IF EACH OF ITS PRINCIPAL OFFICERS AND MORE THAN ONE-HALF OF  ITS  DIREC-
TORS  ARE  CITIZENS OF THE UNITED STATES OR ALIENS LAWFULLY ADMITTED FOR
PERMANENT RESIDENCE IN THE UNITED STATES; AND PROVIDED  FURTHER  THAT  A
CORPORATION  ORGANIZED  UNDER  THE NOT-FOR-PROFIT CORPORATION LAW OR THE
EDUCATION LAW WHICH OTHERWISE  CONFORMS  TO  THE  REQUIREMENTS  OF  THIS
SECTION  AND  ARTICLE  MAY BE LICENSED IF EACH OF ITS PRINCIPAL OFFICERS
AND MORE THAN ONE-HALF OF ITS DIRECTORS ARE  NOT  LESS  THAN  TWENTY-ONE
YEARS  OF  AGE AND NONE OF ITS DIRECTORS ARE LESS THAN EIGHTEEN YEARS OF
AGE; AND PROVIDED FURTHER THAT A CORPORATION ORGANIZED  UNDER  THE  NOT-
FOR-PROFIT CORPORATION LAW OR THE EDUCATION LAW AND LOCATED ON THE PREM-
ISES  OF  A COLLEGE AS DEFINED BY SECTION TWO OF THE EDUCATION LAW WHICH
OTHERWISE CONFORMS TO THE REQUIREMENTS OF THIS SECTION AND  ARTICLE  MAY
BE  LICENSED IF EACH OF ITS PRINCIPAL OFFICERS AND EACH OF ITS DIRECTORS
ARE NOT LESS THAN EIGHTEEN YEARS OF AGE.
  (D) (I) A PERSON WHO SHALL HAVE HAD  ANY  LICENSE  ISSUED  UNDER  THIS
CHAPTER  REVOKED  FOR  CAUSE, UNTIL THE EXPIRATION OF TWO YEARS FROM THE
DATE OF SUCH REVOCATION.
  (II) A PERSON NOT LICENSED UNDER THE PROVISIONS OF THIS  CHAPTER,  WHO
HAS  BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, UNTIL THE EXPIRATION
OF TWO YEARS FROM THE DATE OF SUCH CONVICTION.
  (E) A CORPORATION OR CO-PARTNERSHIP, IF ANY OFFICER  AND  DIRECTOR  OR
ANY  PARTNER,  WHILE  NOT LICENSED UNDER THE PROVISIONS OF THIS CHAPTER,
HAS BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, OR HAS HAD A  LICENSE
ISSUED UNDER THIS CHAPTER REVOKED FOR CAUSE, UNTIL THE EXPIRATION OF TWO
YEARS FROM THE DATE OF SUCH CONVICTION OR REVOCATION.
  2. AN APPLICANT SHALL NOT BE DENIED A STATE LICENSE UNDER THIS ARTICLE
IF THE DENIAL IS BASED SOLELY ON A CONVICTION FOR A VIOLATION OF ARTICLE
TWO HUNDRED TWENTY OR TWO HUNDRED TWENTY-ONE OF THE PENAL LAW.
  §  192. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS. WITHIN THREE
DAYS AFTER A LICENSE SHALL HAVE BEEN REVOKED PURSUANT TO  THIS  ARTICLE,
NOTICE  THEREOF  SHALL  BE  GIVEN TO THE LICENSEE BY MAILING SUCH NOTICE

S. 3040--B                         46

ADDRESSED TO HIM AT THE PREMISES LICENSED. NOTICE SHALL ALSO  BE  MAILED
TO  THE OWNER OF THE PREMISES LICENSED. THE HOLDER OF SUCH LICENSE SHALL
THEREUPON SURRENDER SAME TO THE  BUREAU.  THE  MAILING  THEREOF  BY  THE
LICENSEE  TO  THE BUREAU BY REGISTERED MAIL OR INSURED PARCEL POST SHALL
BE DEEMED SUFFICIENT COMPLIANCE WITH THIS  SECTION.  THE  BUREAU,  IMME-
DIATELY  UPON  GIVING NOTICE OF REVOCATION, SHALL SERVE A WRITTEN NOTICE
THEREOF UPON THE COMMISSIONER OF POLICE, CHIEF OF POLICE OR CHIEF POLICE
OFFICER OF THE CITY, OR VILLAGE IN WHICH  THE  PREMISES  FOR  WHICH  THE
REVOKED LICENSE WAS ISSUED IS SITUATED, OR UPON THE SHERIFF OF THE COUN-
TY  OR  A CONSTABLE OF THE TOWN IN CASE THE LICENSE WAS ISSUED FOR PREM-
ISES SITUATED IN A TOWN AND NOT WITHIN ANY CITY OR VILLAGE.  SUCH NOTICE
SHALL INCLUDE A STATEMENT OF THE NUMBER OF SUCH LICENSE,  THE  NAME  AND
PLACE  OF  RESIDENCE OF THE HOLDER THEREOF, THE LOCATION OF THE LICENSED
PREMISES, AND THE DATE WHEN SUCH  LICENSE  WAS  REVOKED.  IN  CASE  SUCH
LICENSE  BE  NOT FORTHWITH SURRENDERED, THE BUREAU SHALL ISSUE A WRITTEN
DEMAND FOR THE SURRENDER OF SUCH LICENSE AND DELIVER SAID DEMAND TO  THE
SHERIFF  OF THE COUNTY IN WHICH THE LICENSED PREMISES ARE LOCATED, OR TO
ANY REPRESENTATIVE OF THE BUREAU, AND  SAID  SHERIFF  OR  REPRESENTATIVE
SHALL IMMEDIATELY TAKE POSSESSION OF SUCH LICENSE AND RETURN THE SAME TO
THE BUREAU.
  § 193. AUTHORITY TO PROMULGATE RULES AND REGULATIONS. THE BUREAU SHALL
PROMULGATE AND IMPLEMENT ALL RULES AND REGULATIONS AS IT DEEMS NECESSARY
TO CARRY OUT THE PURPOSE AND INTENT OF THIS ARTICLE.
  §  194. PROTECTIONS FOR THE USE OF MARIHUANA. INDIVIDUALS AND LICENSED
ENTITIES SHALL NOT BE SUBJECT TO ARREST, PROSECUTION, OR PENALTY IN  ANY
MANNER,  OR  DENIED ANY RIGHT OR PRIVILEGE, INCLUDING BUT NOT LIMITED TO
CIVIL LIABILITY OR DISCIPLINARY ACTION BY A BUSINESS OR OCCUPATIONAL  OR
PROFESSIONAL  LICENSING  BOARD  OR  BUREAU, SOLELY FOR CONDUCT PERMITTED
UNDER THIS ARTICLE. FOR THE AVOIDANCE OF DOUBT, THE  APPELLATE  DIVISION
OF  THE  SUPREME COURT OF THE STATE OF NEW YORK, AND ANY DISCIPLINARY OR
CHARACTER AND FITNESS COMMITTEES ESTABLISHED BY  THEM  ARE  OCCUPATIONAL
AND  PROFESSIONAL  LICENSING  BOARDS WITHIN THE MEANING OF THIS SECTION.
STATE OR LOCAL LAW ENFORCEMENT AGENCIES  SHALL  NOT  COOPERATE  WITH  OR
PROVIDE  ASSISTANCE TO THE GOVERNMENT OF THE UNITED STATES OR ANY AGENCY
THEREOF IN ENFORCING THE CONTROLLED SUBSTANCE ACT, 21, U.S.C.  S8012  ET
SEQ.,  SOLELY FOR ACTIONS CONSISTENT WITH THIS CHAPTER, EXCEPT AS PURSU-
ANT TO A VALID COURT ORDER.
  § 195. DISCRIMINATION PROTECTIONS FOR THE USE OF MARIHUANA OR  MEDICAL
MARIHUANA. 1. NO SCHOOL OR LANDLORD MAY REFUSE TO ENROLL OR LEASE TO AND
MAY  NOT  OTHERWISE  PENALIZE  A PERSON SOLELY FOR CONDUCT ALLOWED UNDER
SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW, EXCEPT AS EXEMPTED:
  (A) IF FAILING TO DO SO WOULD CAUSE THE SCHOOL OR LANDLORD TO  LOSE  A
MONETARY OR LICENSING RELATED BENEFIT UNDER FEDERAL LAW OR REGULATIONS;
  (B) IF THE INSTITUTION HAS ADOPTED A CODE OF CONDUCT PROHIBITING MARI-
HUANA USE ON THE BASIS OF RELIGIOUS BELIEF;
  (C)  IF  A PROPERTY IS REGISTERED WITH THE NEW YORK SMOKE-FREE HOUSING
REGISTRY, IT IS NOT REQUIRED TO PERMIT THE SMOKING OF MARIHUANA PRODUCTS
ON ITS PREMISES.
  2. FOR THE PURPOSES OF MEDICAL CARE, INCLUDING  ORGAN  TRANSPLANTS,  A
REGISTERED QUALIFYING PATIENT'S AUTHORIZED USE OF MEDICAL MARIHUANA MUST
BE  CONSIDERED  THE  EQUIVALENT OF THE USE OF ANY OTHER MEDICATION UNDER
THE DIRECTION OF A PRACTITIONER AND DOES NOT CONSTITUTE THE  USE  OF  AN
ILLICIT  SUBSTANCE  OR  OTHERWISE  DISQUALIFY  A  REGISTERED  QUALIFYING
PATIENT FROM MEDICAL CARE.
  3. NO PERSON MAY BE DENIED CUSTODY OF OR VISITATION OR PARENTING  TIME
WITH  A MINOR, AND THERE IS NO PRESUMPTION OF NEGLECT OR CHILD ENDANGER-

S. 3040--B                         47

MENT FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
LAW, UNLESS THE PERSON'S BEHAVIOR CREATES AN UNREASONABLE DANGER TO  THE
SAFETY OF THE MINOR AS ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE. FOR
THE  PURPOSES  OF  THIS  SECTION, AN "UNREASONABLE DANGER" DETERMINATION
CANNOT BE BASED SOLELY ON WHETHER, WHEN, AND HOW  OFTEN  A  PERSON  USES
MARIHUANA WITHOUT SEPARATE EVIDENCE OF HARM.
  § 196. EMPLOYMENT PROTECTIONS. 1.  UNLESS AN EMPLOYER ESTABLISHES BY A
PREPONDERANCE  OF  THE  EVIDENCE  THAT  THE  LAWFUL USE OF MARIHUANA HAS
IMPAIRED THE EMPLOYEE'S ABILITY TO PERFORM THE EMPLOYEE'S JOB  RESPONSI-
BILITIES,  IT  SHALL  BE  UNLAWFUL TO TAKE ANY ADVERSE EMPLOYMENT ACTION
AGAINST AN EMPLOYEE BASED ON EITHER:
  (A) CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A  OF  THE  PENAL
LAW; OR
  (B)  THE  EMPLOYEE'S  POSITIVE  DRUG  TEST FOR MARIHUANA COMPONENTS OR
METABOLITES.
  2. FOR THE PURPOSES OF THIS  SECTION,  AN  EMPLOYER  MAY  CONSIDER  AN
EMPLOYEE'S  ABILITY TO PERFORM THE EMPLOYEE'S JOB RESPONSIBILITIES TO BE
IMPAIRED WHEN THE EMPLOYEE MANIFESTS SPECIFIC ARTICULABLE SYMPTOMS WHILE
WORKING THAT DECREASE OR LESSEN THE EMPLOYEE'S PERFORMANCE OF THE DUTIES
OR TASKS OF THE EMPLOYEE'S JOB POSITION.
  3. NOTHING IN THIS SECTION SHALL RESTRICT  AN  EMPLOYER'S  ABILITY  TO
PROHIBIT  OR TAKE ADVERSE EMPLOYMENT ACTION FOR THE POSSESSION OR USE OF
INTOXICATING SUBSTANCES DURING WORK HOURS, OR  REQUIRE  AN  EMPLOYER  TO
COMMIT  ANY  ACT  THAT  WOULD  CAUSE  THE EMPLOYER TO BE IN VIOLATION OF
FEDERAL LAW, OR THAT WOULD RESULT IN THE LOSS OF A FEDERAL  CONTRACT  OR
FEDERAL FUNDING.
  4. AS USED IN THIS SECTION, "ADVERSE EMPLOYMENT ACTION" MEANS REFUSING
TO  HIRE  OR EMPLOY, BARRING OR DISCHARGING FROM EMPLOYMENT, REQUIRING A
PERSON TO RETIRE FROM EMPLOYMENT, OR DISCRIMINATING AGAINST  IN  COMPEN-
SATION OR IN TERMS, CONDITIONS, OR PRIVILEGES OF EMPLOYMENT.
  §  197.  PROTECTIONS  FOR  PERSONS  UNDER  STATE SUPERVISION. A PERSON
CURRENTLY  UNDER  PAROLE,  PROBATION  OR  OTHER  STATE  SUPERVISION,  OR
RELEASED  ON BAIL AWAITING TRIAL MAY NOT BE PUNISHED OR OTHERWISE PENAL-
IZED FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
LAW.
  § 198. PROFESSIONAL  AND  MEDICAL  RECORD  KEEPING.  ANY  PROFESSIONAL
PROVIDING SERVICES IN CONNECTION WITH A LICENSED OR POTENTIALLY LICENSED
BUSINESS UNDER THIS CHAPTER, OR IN CONNECTION WITH OTHER CONDUCT PERMIT-
TED  UNDER  THIS CHAPTER, AND ANY MEDICAL PROFESSIONAL PROVIDING MEDICAL
CARE TO A PATIENT, MAY AGREE WITH THEIR CLIENT OR PATIENT TO MAINTAIN NO
RECORD, OR ANY REDUCED LEVEL OF RECORD  KEEPING  THAT  PROFESSIONAL  AND
CLIENT  OR  PATIENT  MAY  AGREE.  IN CASE OF SUCH AGREEMENT, THE PROFES-
SIONAL'S ONLY OBLIGATION SHALL BE TO KEEP SUCH RECORDS AS AGREED, AND TO
KEEP A RECORD OF THE AGREEMENT.  SUCH REDUCED RECORD KEEPING IS  CONDUCT
PERMITTED  UNDER  THIS  CHAPTER,  AND  SHALL  ATTRACT THE PROTECTIONS OF
SECTION ONE HUNDRED NINETY-FOUR OF THIS ARTICLE.
  § 32. The state finance law is amended by adding  three  new  sections
99-bb, 99-cc and 99-dd to read as follows:
  §  99-BB.  NEW  YORK  STATE MARIHUANA REVENUE FUND. 1. THERE IS HEREBY
ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMPTROLLER  AND  THE
COMMISSIONER  OF  TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
"NEW YORK STATE MARIHUANA REVENUE FUND".
  2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE  DEPARTMENT
OF  TAXATION  AND  FINANCE,  PURSUANT TO THE PROVISIONS OF ARTICLE EIGH-
TEEN-A OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED THERETO FROM ANY
OTHER FUND OR SOURCE PURSUANT TO LAW.  NOTHING CONTAINED IN THIS SECTION

S. 3040--B                         48

SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE FUND ACCORDING TO LAW.
  3.  THE  MONEYS  IN  SUCH  FUND  SHALL  BE  EXPENDED FOR THE FOLLOWING
PURPOSES:
  (A) REASONABLE COSTS  INCURRED  BY  THE  DEPARTMENT  OF  TAXATION  AND
FINANCE FOR ADMINISTERING AND COLLECTING THE TAXES IMPOSED BY THIS PART;
PROVIDED,  HOWEVER,  SUCH  COSTS  SHALL  NOT  EXCEED FOUR PERCENT OF TAX
REVENUES RECEIVED.
  (B) REASONABLE COSTS INCURRED BY THE BUREAU OF  MARIHUANA  POLICY  FOR
IMPLEMENTING,  ADMINISTERING, AND ENFORCING THE MARIHUANA REGULATION AND
TAXATION ACT TO THE EXTENT THOSE COSTS ARE NOT  REIMBURSED  PURSUANT  TO
SECTIONS ONE HUNDRED EIGHTY-NINE AND ONE HUNDRED NINETY OF ARTICLE ELEV-
EN  OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW. THIS PARAGRAPH SHALL REMAIN
OPERATIVE THROUGH THE TWO THOUSAND TWENTY-TWO --  TWO  THOUSAND  TWENTY-
THREE FISCAL YEAR.
  (C)  BEGINNING  WITH  THE TWO THOUSAND NINETEEN -- TWO THOUSAND TWENTY
FISCAL YEAR AND CONTINUING THROUGH THE TWO THOUSAND TWENTY-NINE - -  TWO
THOUSAND  THIRTY  FISCAL  YEAR, THE COMMISSIONER OF TAXATION AND FINANCE
SHALL ANNUALLY DISBURSE THE FOLLOWING SUMS  FOR  THE  PURPOSES  OF  DATA
COLLECTION AND REPORTING:
  (1)  SEVEN  HUNDRED  FIFTY THOUSAND DOLLARS TO THE BUREAU OF MARIHUANA
POLICY TO TRACK AND REPORT DATA RELATED TO THE  LICENSING  OF  MARIHUANA
BUSINESSES,  INCLUDING  THE GEOGRAPHIC LOCATION, STRUCTURE, AND FUNCTION
OF LICENSED MARIHUANA BUSINESSES, AND DEMOGRAPHIC DATA, INCLUDING  RACE,
ETHNICITY, AND GENDER, OF LICENSE HOLDERS. THE BUREAU OF MARIHUANA POLI-
CY  SHALL  PUBLISH  REPORTS  ON ITS FINDINGS ANNUALLY AND SHALL MAKE THE
REPORTS AVAILABLE TO THE PUBLIC.
  (2) SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE DEPARTMENT OF CRIMINAL
JUSTICE SERVICES TO TRACK AND REPORT DATA RELATED  TO  ANY  INFRACTIONS,
VIOLATIONS,  OR CRIMINAL CONVICTIONS THAT OCCUR UNDER ANY OF THE REMAIN-
ING MARIHUANA STATUTES.   THE DEPARTMENT OF  CRIMINAL  JUSTICE  SERVICES
SHALL  PUBLISH  REPORTS  ON  ITS  FINDINGS  ANNUALLY  AND SHALL MAKE THE
REPORTS AVAILABLE TO THE PUBLIC.
  (3) ONE MILLION DOLLARS  TO  THE  STATE  UNIVERSITY  OF  NEW  YORK  TO
RESEARCH  AND  EVALUATE  THE  IMPLEMENTATION AND EFFECT OF THE MARIHUANA
REGULATION AND TAXATION ACT, AND SHALL, IF APPROPRIATE, MAKE RECOMMENDA-
TIONS TO THE LEGISLATURE AND GOVERNOR REGARDING POSSIBLE  AMENDMENTS  TO
THE MARIHUANA REGULATION AND TAXATION ACT. THE RECIPIENTS OF THESE FUNDS
SHALL  PUBLISH REPORTS ON THEIR FINDINGS AT A MINIMUM OF EVERY TWO YEARS
AND SHALL MAKE THE REPORTS AVAILABLE TO THE PUBLIC. THE RESEARCH  FUNDED
PURSUANT TO THIS SUBDIVISION SHALL INCLUDE BUT NOT NECESSARILY BE LIMIT-
ED TO:
  (A)  THE  IMPACTS  ON PUBLIC HEALTH, INCLUDING HEALTH COSTS ASSOCIATED
WITH MARIHUANA USE, AS WELL AS WHETHER MARIHUANA USE IS ASSOCIATED  WITH
AN INCREASE OR DECREASE IN USE OF ALCOHOL OR OTHER DRUGS;
  (B)  THE  IMPACT OF TREATMENT FOR CANNABIS USE DISORDER AND THE EFFEC-
TIVENESS OF DIFFERENT TREATMENT PROGRAMS;
  (C) PUBLIC SAFETY ISSUES RELATED TO MARIHUANA USE, INCLUDING  STUDYING
THE  EFFECTIVENESS OF THE PACKAGING AND LABELING REQUIREMENTS AND ADVER-
TISING AND MARKETING RESTRICTIONS CONTAINED IN  THE  ACT  AT  PREVENTING
UNDERAGE  ACCESS  TO  AND  USE  OF MARIHUANA AND MARIHUANA PRODUCTS, AND
STUDYING THE HEALTH-RELATED  EFFECTS  AMONG  USERS  OF  VARYING  POTENCY
LEVELS OF MARIHUANA AND MARIHUANA PRODUCTS;
  (D)  MARIHUANA  USE RATES, MALADAPTIVE USE RATES FOR ADULTS AND YOUTH,
AND DIAGNOSIS RATES OF MARIHUANA-RELATED SUBSTANCE USE DISORDERS;

S. 3040--B                         49

  (E) MARIHUANA MARKET PRICES, ILLICIT MARKET PRICES, TAX STRUCTURES AND
RATES, INCLUDING AN EVALUATION OF HOW TO BEST  TAX  MARIHUANA  BASED  ON
POTENCY,  AND  THE  STRUCTURE  AND  FUNCTION OF LICENSED MARIHUANA BUSI-
NESSES;
  (F)  WHETHER  ADDITIONAL  PROTECTIONS  ARE  NEEDED TO PREVENT UNLAWFUL
MONOPOLIES OR ANTI-COMPETITIVE BEHAVIOR FROM OCCURRING IN THE NONMEDICAL
MARIHUANA INDUSTRY AND, IF SO, RECOMMENDATIONS AS TO THE MOST  EFFECTIVE
MEASURES FOR PREVENTING SUCH BEHAVIOR;
  (G)  THE ECONOMIC IMPACTS IN THE PRIVATE AND PUBLIC SECTORS, INCLUDING
BUT NOT NECESSARILY LIMITED TO, JOB CREATION, WORKPLACE  SAFETY,  REVEN-
UES,  TAXES  GENERATED FOR STATE AND LOCAL BUDGETS, AND CRIMINAL JUSTICE
IMPACTS, INCLUDING, BUT NOT  NECESSARILY  LIMITED  TO,  IMPACTS  ON  LAW
ENFORCEMENT  AND  PUBLIC  RESOURCES, SHORT AND LONG TERM CONSEQUENCES OF
INVOLVEMENT IN THE CRIMINAL JUSTICE SYSTEM, AND STATE AND LOCAL  GOVERN-
MENT AGENCY ADMINISTRATIVE COSTS AND REVENUE;
  (H)  WHETHER  THE  REGULATORY  AGENCIES  TASKED  WITH IMPLEMENTING AND
ENFORCING THE  MARIHUANA  REGULATION  AND  TAXATION  ACT  ARE  DOING  SO
CONSISTENT  WITH THE PURPOSES OF THE ACT, AND WHETHER DIFFERENT AGENCIES
MIGHT DO SO MORE EFFECTIVELY; AND
  (I) ANY ENVIRONMENTAL ISSUES RELATED TO MARIHUANA PRODUCTION  AND  THE
CRIMINAL PROHIBITION OF MARIHUANA PRODUCTION.
  4. AFTER THE DISPERSAL OF MONEYS PURSUANT TO SUBDIVISION THREE OF THIS
SECTION,  THE  REMAINING  MONEYS  IN THE FUND DEPOSITED DURING THE PRIOR
FISCAL YEAR SHALL BE DISBURSED AS FOLLOWS:
  (A) TWENTY-FIVE PERCENT SHALL BE DEPOSITED IN THE STATE  LOTTERY  FUND
ESTABLISHED  BY SECTION NINETY-TWO-C OF THIS ARTICLE; PROVIDED THAT SUCH
MONEYS SHALL BE DISTRIBUTED TO THE EDUCATION  DEPARTMENT  IN  ACCORDANCE
WITH  SUBDIVISIONS  TWO AND FOUR OF SECTION NINETY-TWO-C OF THIS ARTICLE
AND SHALL NOT BE UTILIZED FOR THE PURPOSES OF SUBDIVISION THREE OF  SUCH
SECTION;
  (B)  TWENTY-FIVE  PERCENT SHALL BE DEPOSITED IN THE DRUG TREATMENT AND
PUBLIC EDUCATION FUND ESTABLISHED  BY  SECTION  NINETY-NINE-CC  OF  THIS
ARTICLE; AND
  (C) FIFTY PERCENT SHALL BE DEPOSITED IN THE COMMUNITY GRANTS REINVEST-
MENT FUND ESTABLISHED BY SECTION NINETY-NINE-CC OF THIS ARTICLE.
  5.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
OF TAXATION AND FINANCE SHALL PROVIDE A WRITTEN REPORT TO THE  TEMPORARY
PRESIDENT  OF  THE  SENATE, SPEAKER OF THE ASSEMBLY, CHAIR OF THE SENATE
FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS AND MEANS  COMMITTEE,  THE
STATE  COMPTROLLER  AND  THE  PUBLIC.  SUCH  REPORT SHALL DETAIL HOW THE
MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND
SHALL INCLUDE:
  (I) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
USED FOR SUCH DISBURSEMENTS;
  (II) RECIPIENTS OF AWARDS FROM THE FUND;
  (III) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (IV) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (V) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
YEAR.
  6. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
  § 99-CC. NEW YORK STATE  DRUG  TREATMENT  PUBLIC  EDUCATION  FUND.  1.
THERE  IS  HEREBY  ESTABLISHED  IN  THE JOINT CUSTODY OF THE STATE COMP-

S. 3040--B                         50

TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL  FUND  TO
BE KNOWN AS THE "NEW YORK STATE DRUG TREATMENT PUBLIC EDUCATION FUND".
  2.  SUCH  FUND  SHALL  CONSIST  OF  REVENUES  RECEIVED PURSUANT TO THE
PROVISIONS OF SECTION NINETY-NINE-BB  OF  THIS  ARTICLE  AND  ALL  OTHER
MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND  ACCORDING  TO
LAW.
  3.  THE  MONEYS  IN SUCH FUND SHALL BE EXPENDED BY THE COMMISSIONER OF
THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE IN  CONSULTATION  WITH  THE
COMMISSIONER OF HEALTH FOR THE FOLLOWING PURPOSES:
  (A)  TO  DEVELOP AND IMPLEMENT A YOUTH-FOCUSED PUBLIC HEALTH EDUCATION
AND PREVENTION CAMPAIGN, INCLUDING SCHOOL-BASED PREVENTION, EARLY INTER-
VENTION, AND HEALTH CARE SERVICES AND PROGRAMS TO  REDUCE  THE  RISK  OF
MARIHUANA AND OTHER SUBSTANCE USE AND ABUSE BY SCHOOL-AGED CHILDREN;
  (B)  TO  DEVELOP  AND  IMPLEMENT  A  STATEWIDE  PUBLIC HEALTH CAMPAIGN
FOCUSED ON THE HEALTH EFFECTS OF MARIHUANA AND LEGAL USE,  INCLUDING  AN
ONGOING  EDUCATION  AND  PREVENTION  CAMPAIGN  THAT EDUCATES THE GENERAL
PUBLIC, INCLUDING PARENTS, CONSUMERS AND RETAILERS, ON THE LEGAL USE  OF
MARIHUANA,  THE IMPORTANCE OF PREVENTING YOUTH ACCESS, THE IMPORTANCE OF
SAFE STORAGE AND PREVENTING SECONDHAND MARIHUANA SMOKE EXPOSURE,  INFOR-
MATION  FOR  PREGNANT OR BREASTFEEDING WOMEN, AND THE OVERCONSUMPTION OF
EDIBLES;
  (C) TO PROVIDE SUBSTANCE USE DISORDER TREATMENT PROGRAMS FOR YOUTH AND
ADULTS, WITH AN EMPHASIS ON PROGRAMS  THAT  ARE  CULTURALLY  AND  GENDER
COMPETENT,  TRAUMA-INFORMED,  EVIDENCE-BASED  AND PROVIDE A CONTINUUM OF
CARE THAT INCLUDES SCREENING AND ASSESSMENT (SUBSTANCE USE  DISORDER  AS
WELL  AS  MENTAL  HEALTH),  EARLY INTERVENTION, ACTIVE TREATMENT, FAMILY
INVOLVEMENT, CASE MANAGEMENT, OVERDOSE PREVENTION, PREVENTION OF  COMMU-
NICABLE  DISEASES  RELATED  TO  SUBSTANCE  USE,  RELAPSE  MANAGEMENT FOR
SUBSTANCE USE AND OTHER CO-OCCURRING BEHAVIORAL HEALTH DISORDERS,  VOCA-
TIONAL  SERVICES,  LITERACY  SERVICES, PARENTING CLASSES, FAMILY THERAPY
AND COUNSELING  SERVICES,  MEDICATION-ASSISTED  TREATMENTS,  PSYCHIATRIC
MEDICATION AND PSYCHOTHERAPY; AND
  (D)  TO  EVALUATE  THE PROGRAMS BEING FUNDED TO DETERMINE THEIR EFFEC-
TIVENESS.
  4. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL PROVIDE A
WRITTEN  REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE
ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE, CHAIR OF  THE  ASSEMBLY
WAYS  AND  MEANS  COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON ALCOHOLISM
AND DRUG ABUSE, CHAIR OF THE ASSEMBLY ALCOHOLISM AND DRUG ABUSE  COMMIT-
TEE,  THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL DETAIL HOW
THE MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR,
AND SHALL INCLUDE:
  (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
USED FOR SUCH DISBURSEMENTS;
  (B) RECIPIENTS OF AWARDS FROM THE FUND;
  (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
YEAR.

S. 3040--B                         51

  5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
  §  99-DD.  NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND. 1. THERE
IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER  AND
THE  COMMISSIONER  OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS
THE "NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND".
  2. SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED  PURSUANT  TO  THE
PROVISIONS  OF  SECTION  NINETY-NINE-BB  OF  THIS  ARTICLE AND ALL OTHER
MONEYS APPROPRIATED THERETO FROM ANY OTHER FUND OR  SOURCE  PURSUANT  TO
LAW.  NOTHING  CONTAINED  IN  THIS  SECTION SHALL PREVENT THE STATE FROM
RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE  PURPOSES  OF  THE  FUND  AS
DEFINED  IN  THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO
LAW.
  3. THE FUND SHALL BE GOVERNED AND ADMINISTERED BY AN EXECUTIVE  STEER-
ING  COMMITTEE OF THIRTEEN MEMBERS ESTABLISHED BY THE OFFICE OF CHILDREN
AND FAMILY SERVICES AND INCLUDING ADDITIONAL  REPRESENTATIVES  FROM  THE
LABOR  DEPARTMENT,  AND  THE HEALTH DEPARTMENT APPOINTED BY THE GOVERNOR
AND A REPRESENTATIVE OF THE EDUCATION DEPARTMENT APPOINTED BY THE  BOARD
OF REGENTS. IN ADDITION, THE MAJORITY AND MINORITY LEADERS OF THE SENATE
AND  ASSEMBLY  SHALL  EACH APPOINT ONE MEMBER TO THE STEERING COMMITTEE,
THE COMPTROLLER SHALL APPOINT THREE ADDITIONAL MEMBERS, AND THE ATTORNEY
GENERAL SHALL APPOINT TWO ADDITIONAL MEMBERS FROM RELEVANT LOCAL GOVERN-
MENT ENTITIES AND COMMUNITY-BASED ORGANIZATIONS. EVERY EFFORT SHOULD  BE
MADE TO ENSURE A BALANCED AND DIVERSE COMMITTEE, WHICH SHALL HAVE EXPER-
TISE  IN  JOB PLACEMENT, HOMELESSNESS AND HOUSING, BEHAVIORAL HEALTH AND
SUBSTANCE ABUSE TREATMENT, AND EFFECTIVE  REHABILITATIVE  TREATMENT  FOR
ADULTS AND JUVENILES, AND SHALL INCLUDE REPRESENTATIVES OF ORGANIZATIONS
SERVING COMMUNITIES IMPACTED BY PAST FEDERAL AND STATE DRUG POLICIES.
  4. THE MONEYS IN SUCH FUND SHALL BE EXPENDED BY THE EXECUTIVE STEERING
COMMITTEE  TO  QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZATIONS FOR THE
PURPOSE OF REINVESTING IN  COMMUNITIES  DISPROPORTIONATELY  AFFECTED  BY
PAST FEDERAL AND STATE DRUG POLICIES. THE GRANTS FROM THIS PROGRAM SHALL
BE  USED TO SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT EDUCATION,
MENTAL HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT, SYSTEM  NAVI-
GATION  SERVICES,  LEGAL  SERVICES  TO  ADDRESS BARRIERS TO REENTRY, AND
LINKAGES TO MEDICAL CARE, WOMEN'S HEALTH SERVICES AND  OTHER  COMMUNITY-
BASED SUPPORTIVE SERVICES.
  5. THE COMMUNITY GRANTS REINVESTMENT PROGRAM SHALL NOT MAKE ANY GRANTS
IN  ANY  MUNICIPALITIES  WHICH  HAVE  BANNED  THE CULTIVATION, INCLUDING
PERSONAL CULTIVATION OF MARIHUANA UNDER SECTION 221.05-A  OF  THE  PENAL
LAW, OR RETAIL SALE OF MARIHUANA OR MARIHUANA PRODUCTS PURSUANT TO ARTI-
CLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  6.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
OF THE OFFICE OF CHILDREN AND FAMILY SERVICES SHALL  PROVIDE  A  WRITTEN
REPORT  TO  THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEM-
BLY, CHAIR OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE  ASSEMBLY  WAYS
AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON CHILDREN AND FAMI-
LIES,  CHAIR  OF  THE ASSEMBLY CHILDREN AND FAMILIES COMMITTEE, CHAIR OF
THE SENATE COMMITTEE ON LABOR, CHAIR OF THE  ASSEMBLY  LABOR  COMMITTEE,
CHAIR  OF  THE  SENATE COMMITTEE ON HEALTH, CHAIR OF THE ASSEMBLY HEALTH
COMMITTEE, CHAIR OF THE SENATE COMMITTEE  ON  EDUCATION,  CHAIR  OF  THE
ASSEMBLY EDUCATION COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH
REPORT  SHALL DETAIL HOW THE MONIES OF THE FUND WERE UTILIZED DURING THE
PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:

S. 3040--B                         52

  (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
USED FOR SUCH DISBURSEMENTS;
  (B) RECIPIENTS OF AWARDS FROM THE FUND;
  (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
YEAR.
  7. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
  § 33. The tax law is amended by adding a new article 18-A to  read  as
follows:
                              ARTICLE 18-A
                    PROVISIONS RELATING TO MARIHUANA
SECTION 446.   DEFINITIONS.
        447.   TAXES IMPOSED.
        447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN.
        447-B.  ORDINARY  AND  NECESSARY  EXPENSES  DEDUCTIBLE  FROM NET
                 INCOME.
        448.   SURETY BOND.
        449.   COLLECTION OF TAX.
  § 446. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "COMMERCIAL MARKET ACTIVITY" INCLUDES THE CULTIVATION, POSSESSION,
MANUFACTURE,  DISTRIBUTION,  PROCESSING,  STORING,  LABORATORY  TESTING,
LABELING,  TRANSPORTATION,  DELIVERY  OR SALE OF MARIHUANA AND MARIHUANA
PRODUCTS, AS PROVIDED FOR IN ARTICLE ELEVEN OF  THE  ALCOHOLIC  BEVERAGE
CONTROL LAW, BUT SHALL NOT INCLUDE MEDICAL MARIHUANA ACTIVITIES PROVIDED
FOR IN TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
  2.    "CONCENTRATED  CANNABIS"  MEANS (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
NOL,  OR  ITS  ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1
TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1  (6)  MONOTERPENE  NUMBERING
SYSTEM.
  3.  "MARIHUANA"  MEANS  ALL  PARTS OF THE PLANT OF THE GENUS CANNABIS,
WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM  ANY
PART  OF  THE  PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT  DOES  NOT
INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
(EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES
NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L.,  WHETHER  GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  4.  "MARIHUANA  CONSUMER"  MEANS  A  PERSON TWENTY-ONE YEARS OF AGE OR
OLDER WHO PURCHASED MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE  BY
PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
  5.  "MARIHUANA  FLOWERS" SHALL MEAN THE DRIED FLOWERS OF THE MARIHUANA
PLANT.
  6. "MARIHUANA LEAVES" SHALL MEAN ALL  PARTS  OF  THE  MARIHUANA  PLANT
OTHER THAN MARIHUANA FLOWERS THAT ARE SOLD OR CONSUMED.

S. 3040--B                         53

  7.  "MARIHUANA  PROCESSOR"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
MARIHUANA POLICY TO PURCHASE MARIHUANA AND  CONCENTRATED  CANNABIS  FROM
MARIHUANA  PRODUCERS,  TO  PROCESS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS, PACKAGE AND  LABEL  MARIHUANA,  CONCENTRATED
CANNABIS  AND MARIHUANA-INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND
SELL MARIHUANA, CONCENTRATED CANNABIS AND MARIHUANA INFUSED PRODUCTS  AT
WHOLESALE TO MARIHUANA RETAILERS.
  8. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY THE BUREAU OF MARI-
HUANA  POLICY  TO  PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED
CANNABIS AT WHOLESALE TO MARIHUANA PROCESSORS, MARIHUANA  RETAILERS,  OR
OTHER MARIHUANA PRODUCERS, BUT NOT TO CONSUMERS.
  9.  "MARIHUANA  PRODUCTS"  MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  10. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN  MARIHUA-
NA,  MARIHUANA  EXTRACTS,  OR CONCENTRATED CANNABIS AND ARE INTENDED FOR
HUMAN USE OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE  PRODUCTS,
OINTMENTS, AND TINCTURES.
  11. "IMMATURE MARIHUANA PLANT" MEANS A MARIHUANA PLANT WITH NO OBSERV-
ABLE FLOWERS OR BUDS.
  12.  "MARIHUANA  RETAILER"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
MARIHUANA POLICY TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND MARI-
HUANA-INFUSED PRODUCTS FROM MARIHUANA PRODUCERS AND MARIHUANA PROCESSORS
AND SELL MARIHUANA, MARIHUANA-INFUSED PRODUCTS, AND CONCENTRATED  CANNA-
BIS IN A RETAIL OUTLET.
  13.  "MARIHUANA  RETAILER  FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
LICENSED BY THE  BUREAU  OF  MARIHUANA  POLICY  TO  PURCHASE  MARIHUANA,
CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED PRODUCTS FROM MARIHUANA
PRODUCERS, MARIHUANA RETAILERS AND MARIHUANA PROCESSORS AND  SELL  MARI-
HUANA  PRODUCTS  FOR  A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN
THE FACILITY.
  § 447. TAXES IMPOSED.  1. (A) THERE IS HEREBY  LEVIED  AND  IMPOSED  A
CULTIVATION  TAX UPON ALL HARVESTED MARIHUANA THAT ENTERS THE COMMERCIAL
MARKET UPON ALL PERSONS REQUIRED TO BE LICENSED TO  CULTIVATE  MARIHUANA
PURSUANT  TO  ARTICLE  ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW. THE
TAX SHALL BE DUE AFTER THE MARIHUANA IS HARVESTED.
  (I) MARIHUANA FLOWERS SHALL BE TAXED AT A RATE OF SIXTY-TWO CENTS  PER
DRY-WEIGHT GRAM.
  (II)  MARIHUANA  LEAVES SHALL BE TAXED AT A RATE OF TEN CENTS PER DRY-
WEIGHT GRAM.
  (B) THERE IS HEREBY LEVIED AND IMPOSED A NURSERY TAX UPON ALL IMMATURE
PLANTS THAT ENTER THE COMMERCIAL MARKET UPON ALL PERSONS REQUIRED TO  BE
LICENSED  TO  PRODUCE  IMMATURE PLANTS PURSUANT TO ARTICLE ELEVEN OF THE
ALCOHOLIC BEVERAGE CONTROL LAW. IMMATURE PLANTS SHALL BE TAXED AT A RATE
OF ONE DOLLAR AND THIRTY-FIVE CENTS EACH.
  (C) THERE IS HEREBY LEVIED AND IMPOSED A TAX UPON  MARIHUANA  SOLD  OR
OTHERWISE  TRANSFERRED  BY A MARIHUANA PRODUCER TO A MARIHUANA PROCESSOR
OR MARIHUANA RETAILER AT A RATE EQUIVALENT TO THE RATE ESTABLISHED UNDER
ARTICLE TWENTY-EIGHT OF THIS CHAPTER.
  (D) A MARIHUANA EXCISE TAX IS HEREBY LEVIED AND IMPOSED UPON CUSTOMERS
OF NONMEDICAL MARIHUANA OR NONMEDICAL MARIHUANA PRODUCTS  SOLD  IN  THIS
STATE  AT THE RATE FIFTEEN PERCENT OF ANY SALE BY A RETAILER, MICROBUSI-
NESS, OR OTHER PERSON REQUIRED TO BE LICENSED PURSUANT TO ARTICLE ELEVEN
OF THE ALCOHOLIC BEVERAGE CONTROL LAW TO SELL  MARIHUANA  AND  MARIHUANA
PRODUCTS DIRECTLY TO A CUSTOMER.
  (E)  THE  DEPARTMENT  SHALL ESTABLISH PROCEDURES FOR THE COLLECTION OF
ALL TAXES LEVIED.

S. 3040--B                         54

  (F) NO TAX ESTABLISHED BY THIS SECTION SHALL BE  LEVIED  UPON  MEDICAL
MARIHUANA  INTENDED  FOR SALE TO A CERTIFIED PATIENT OR DESIGNATED CARE-
GIVER PURSUANT TO TITLE FIVE-A OF ARTICLE  THIRTY-THREE  OF  THE  PUBLIC
HEALTH LAW.
  2.  FOR  REPORTING PERIODS BEGINNING LATER THAN ONE YEAR FOLLOWING THE
EFFECTIVE DATE OF THIS ARTICLE, THE RATES OF TAX UNDER  SUBDIVISION  ONE
OF  THIS  SECTION  SHALL  BE ADJUSTED FOR EACH BIENNIUM ACCORDING TO THE
COST-OF-LIVING ADJUSTMENT FOR THE CALENDAR YEAR.
  3. THE DEPARTMENT SHALL REGULARLY REVIEW THE RATES OF  THE  TAX  UNDER
SUBDIVISION ONE OF THIS SECTION AND MAKE RECOMMENDATIONS TO THE LEGISLA-
TURE  REGARDING  APPROPRIATE  ADJUSTMENTS TO THE RATES THAT WILL FURTHER
THE PURPOSES OF:
  (A) MAXIMIZING NET REVENUE;
  (B) MINIMIZING THE ILLEGAL MARIHUANA INDUSTRY; AND
  (C) DISCOURAGING THE USE OF MARIHUANA BY MINORS UNDER TWENTY-ONE YEARS
OF AGE.
  § 447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN. ANY CITY OR  TOWN
IN  THIS  STATE,  ACTING  THROUGH  ITS LOCAL LEGISLATIVE BODY, IS HEREBY
AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING  IN  ANY
SUCH  CITY  OR  TOWN  A SALES TAX ON MARIHUANA RETAILERS AT A RATE OF NO
MORE THAN TWO PERCENT OF THE SALE PRICE OF MARIHUANA PRODUCTS SOLD TO  A
MARIHUANA  CONSUMER. ANY TAXES IMPOSED PURSUANT TO THE AUTHORITY OF THIS
SECTION SHALL BE ADMINISTERED AND COLLECTED BY  THE  DEPARTMENT  IN  THE
SAME  MANNER  AS THE TAXES IMPOSED UNDER SECTION FOUR HUNDRED FORTY-NINE
OF THIS ARTICLE. THE COMMISSIONER  IS  HEREBY  EMPOWERED  TO  MAKE  SUCH
PROVISIONS  AS  IT  DEEMS  NECESSARY  FOR  THE  JOINT ADMINISTRATION AND
COLLECTION OF THE STATE AND LOCAL TAXES IMPOSED AND AUTHORIZED  BY  THIS
ARTICLE.
  §  447-B.  ORDINARY AND NECESSARY EXPENSES DEDUCTIBLE FROM NET INCOME.
NOTWITHSTANDING ANY FEDERAL TAX LAW TO THE CONTRARY,  IN  COMPUTING  NET
INCOME  FOR  BUSINESSES  EXEMPTED FROM CRIMINAL PENALTIES UNDER ARTICLES
TWO HUNDRED TWENTY AND TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AND ARTI-
CLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW, THERE SHALL BE ALLOWED
AS A DEDUCTION FROM STATE TAXES ALL THE ORDINARY AND NECESSARY  EXPENSES
PAID  OR  INCURRED  DURING  THE TAXABLE YEAR IN CARRYING ON ANY TRADE OR
BUSINESS, INCLUDING BUT NOT LIMITED TO, REASONABLE ALLOWANCE  FOR  SALA-
RIES OR OTHER COMPENSATION FOR PERSONAL SERVICES ACTUALLY RENDERED.
  §  448.  SURETY  BOND.  MARIHUANA  RETAILER APPLICANTS ARE REQUIRED TO
SUBMIT A SURETY BOND WITH THE DEPARTMENT EQUAL  TO  TWO  MONTHS  OF  THE
CULTIVATION  FACILITY'S  ANTICIPATED  RETAIL  MARIHUANA  EXCISE TAX. THE
SURETY BOND MUST BE ISSUED BY A COMPANY AUTHORIZED TO DO BUSINESS IN THE
STATE. PROOF OF SURETY BOND IS  REQUIRED  FOR  APPROVAL  OF  APPLICANT'S
RETAIL LICENSE.
  §  449.  COLLECTION OF TAX. THIS TAX SHALL BE COLLECTED BY THE COMMIS-
SIONER WHO SHALL ESTABLISH A PROCEDURE FOR THE COLLECTION OF THIS TAX.
  § 34. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
the laws of 1977 and as relettered by chapter 192 of the laws  of  1980,
are amended to read as follows:
  (i)  prior to the filing of an accusatory instrument in a local crimi-
nal court against such person, the prosecutor elects  not  to  prosecute
such  person.  In such event, the prosecutor shall serve a certification
of such disposition upon the division of criminal justice  services  and
upon  the appropriate police department or law enforcement agency which,
upon receipt thereof, shall comply with  the  provisions  of  paragraphs

S. 3040--B                         55

(a),  (b),  (c)  and  (d) of subdivision one of this section in the same
manner as is required thereunder with respect to an  order  of  a  court
entered pursuant to said subdivision one[.]; OR
  (j)  following the arrest of such person, the arresting police agency,
prior to the filing of an accusatory  instrument  in  a  local  criminal
court  but subsequent to the forwarding of a copy of the fingerprints of
such person to the division of criminal justice services, elects not  to
proceed  further. In such event, the head of the arresting police agency
shall serve a certification of such disposition  upon  the  division  of
criminal justice services which, upon receipt thereof, shall comply with
the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
this  section  in the same manner as is required thereunder with respect
to an order of a court entered pursuant to said subdivision one[.]; OR
  (k) (i) The accusatory instrument alleged a violation of  article  two
hundred  twenty  or section 240.36 of the penal law, prior to the taking
effect of article two hundred twenty-one of the penal  law,  or  BY  THE
CONVICTION  OF  SUCH PERSON OF a violation of [article two hundred twen-
ty-one] SECTION 221.45 of the penal law ON OR AFTER THE  EFFECTIVE  DATE
OF  THE  CHAPTER  OF THE LAWS OF 2017 THAT AMENDED THIS SUBDIVISION OR A
VIOLATION OF SECTIONS 221.05, 221.10, 221.15,  221.20,  221.25,  221.30,
221.35,  OR  221.40  OF THE PENAL LAW PRIOR TO THE EFFECTIVE DATE OF THE
CHAPTER OF THE LAWS OF 2017 THAT AMENDED THIS SUBDIVISION; AND (ii)  the
sole  controlled  substance involved is [marijuana; (iii) the conviction
was only for a violation or violations; and (iv) at  least  three  years
have  passed  since the offense occurred] MARIHUANA.  NO DEFENDANT SHALL
BE REQUIRED OR PERMITTED TO WAIVE ELIGIBILITY FOR  SEALING  PURSUANT  TO
THIS  PARAGRAPH  AS  PART OF A PLEA OF GUILTY, SENTENCE OR ANY AGREEMENT
RELATED TO A CONVICTION FOR A VIOLATION OF SECTION 221.45 OF  THE  PENAL
LAW. ANY SUCH WAIVER SHALL BE DEEMED VOID AND WHOLLY UNENFORCEABLE.
  §  35.  Subdivision 4 of section 160.50 of the criminal procedure law,
as amended by chapter 905 of the laws of 1977 and renumbered by  chapter
142 of the laws of 1991, is amended to read as follows:
  4.  A person in whose favor a criminal action or proceeding was termi-
nated, as defined in [paragraph] PARAGRAPHS (a) through (h), (K) OR  (L)
of  subdivision [two] THREE of this section, prior to the effective date
of [this section, may upon motion apply  to  the  court  in  which  such
termination  occurred,  upon  not  less  than  twenty days notice to the
district attorney, for an order granting to such person the  relief  set
forth in subdivision one of this section, and such order shall be grant-
ed  unless the district attorney demonstrates to the satisfaction of the
court that the interests of justice require otherwise. A person in whose
favor a criminal action or proceeding  was  terminated,  as  defined  in
paragraph  (i)  or  (j) of subdivision two of this section, prior to the
effective date of this section, may apply to the appropriate  prosecutor
or  police agency for a certification as described in said paragraph (i)
or (j) granting to such person the relief set forth  therein,  and  such
certification shall be granted by such prosecutor or police agency.] THE
CHAPTER OF THE LAWS OF TWO THOUSAND SEVENTEEN THAT AMENDED THIS SUBDIVI-
SION, AND WHOSE RECORDS HAVE NOT BEEN SEALED PURSUANT TO SUBDIVISION ONE
OF  THIS  SECTION, MAY APPLY TO HAVE THE RECORDS OF SUCH CRIMINAL ACTION
OR PROCEEDING SEALED AT THE CLERK'S OFFICE FOR THE COURT  IN  WHICH  THE
CRIMINAL ACTION OR PROCEEDING WAS TERMINATED. APPLICATION MAY BE MADE BY
THE  PERSON  OR  HIS  OR HER ATTORNEY. UPON A DETERMINATION BY THE CLERK
THAT THE ACTION OR PROCEEDING WAS TERMINATED IN THE  PERSON'S  FAVOR  AS
DEFINED  IN  SUBDIVISION  THREE  OF THIS SECTION, THE CLERK OF THE COURT
SHALL IMMEDIATELY NOTIFY THE COMMISSIONER OF THE  DIVISION  OF  CRIMINAL

S. 3040--B                         56

JUSTICE SERVICES AND THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND
OTHER  LAW  ENFORCEMENT  AGENCIES THAT THE ACTION HAS BEEN TERMINATED IN
FAVOR OF THE ACCUSED AND THAT THE RECORD OF SUCH ACTION  OR  PROCEEDINGS
SHALL  BE  SEALED.  UPON RECEIPT OF NOTIFICATION OF SUCH TERMINATION AND
SEALING, ALL RECORDS RELATING TO THE CRIMINAL ACTION SHALL BE SEALED, AS
REQUIRED UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, AND ALL
PHOTOGRAPHS, PHOTOGRAPHIC PLATES OR PROOFS, PALMPRINTS AND  FINGERPRINTS
SHALL BE DESTROYED OR RETURNED AS SPECIFIED IN PARAGRAPHS (A) AND (B) OF
SUBDIVISION ONE OF THIS SECTION. THIS PARAGRAPH SHALL NOT APPLY TO CASES
IN  WHICH  THE  COURT DECLINED TO SEAL FOR REASONS STATED ON THE RECORD,
PURSUANT TO SUBDIVISION ONE OF THIS SECTION.  WHEN  AN  APPLICANT  UNDER
THIS  SUBDIVISION  PRESENTS  TO THE COURT CLERK FINGERPRINT RECORDS FROM
NEW YORK STATE DIVISION OF CRIMINAL JUSTICE SERVICES OR A COURT DISPOSI-
TION WHICH INDICATE THAT A CRIMINAL ACTION  OR  PROCEEDING  AGAINST  THE
APPLICANT  WAS  DISMISSED  BUT  THE  SUPPORTING  COURT RECORDS CANNOT BE
LOCATED, HAVE BEEN DESTROYED, OR DO NOT INDICATE WHETHER  THE  DISMISSAL
WAS  A  "TERMINATION IN FAVOR OF" THE ACCUSED AS THAT TERM IS DEFINED IN
SUBDIVISION THREE OF THIS SECTION, THE CLERK OF THE COURT  WHEREIN  SUCH
CRIMINAL  ACTION  OR  PROCEEDING  WAS TERMINATED SHALL PROCEED AS IF THE
MATTER HAD BEEN SO TERMINATED.
  § 36. Subdivisions 1 and 2 of section 170.56 of the criminal procedure
law, subdivision 1 as amended by chapter 360 of the  laws  of  1977  and
subdivision  2 as added by chapter 1042 of the laws of 1971, are amended
to read as follows:
  1.  Upon or after arraignment in a local criminal court upon an infor-
mation, a prosecutor's information or a misdemeanor complaint, where the
sole remaining count or counts  charge  a  violation  or  violations  of
section  [221.05,  221.10, 221.15, 221.35 or 221.40] 221.45 of the penal
law, OR UPON SUMMONS FOR A NUISANCE OFFENSE UNDER  SECTION  SIXTY-FIVE-C
OF  THE ALCOHOLIC BEVERAGE CONTROL LAW and before the entry of a plea of
guilty thereto or commencement of   a trial  thereof,  the  court,  upon
motion  of  a defendant, may order that all proceedings be suspended and
the action adjourned in contemplation of dismissal, or  upon  a  finding
that  adjournment  would not be necessary or appropriate and the setting
forth in the record of the reasons for such  findings,  may  dismiss  in
furtherance  of  justice  the  accusatory instrument; provided, however,
that the court may  not  order  such  adjournment  in  contemplation  of
dismissal or dismiss the accusatory instrument if: (a) the defendant has
previously  been granted such adjournment in contemplation of dismissal,
or (b) the defendant has previously been granted a dismissal under  this
section,  or  (c)  the  defendant  has  previously been convicted of any
offense involving controlled substances, or (d) the defendant has previ-
ously been convicted of a crime  and  the  district  attorney  does  not
consent  or (e) the defendant has previously been adjudicated a youthful
offender on the basis of any act or acts involving controlled substances
and the district attorney does not consent.  NOTWITHSTANDING THE LIMITA-
TIONS SET FORTH IN THIS  SUBDIVISION,  THE  COURT  MAY  ORDER  THAT  ALL
PROCEEDINGS  BE  SUSPENDED  AND THE ACTION ADJOURNED IN CONTEMPLATION OF
DISMISSAL  BASED  UPON  A  FINDING  OF  EXCEPTIONAL  CIRCUMSTANCES.  FOR
PURPOSES  OF  THIS  SUBDIVISION,  EXCEPTIONAL  CIRCUMSTANCES EXIST WHEN,
REGARDLESS OF THE ULTIMATE DISPOSITION OF THE CASE, THE ENTRY OF A  PLEA
OF GUILTY IS LIKELY TO RESULT IN SEVERE COLLATERAL CONSEQUENCES, INCLUD-
ING,  BUT NOT LIMITED TO, THOSE THAT COULD LEAVE A NONCITIZEN INADMISSI-
BLE OR REMOVABLE FROM THE UNITED STATES.
  2.  Upon ordering the action adjourned in contemplation of  dismissal,
the  court  must  set and specify such conditions for the adjournment as

S. 3040--B                         57

may be appropriate, and such conditions may include placing the  defend-
ant  under the supervision of any public or private agency.  At any time
prior to dismissal the court may modify  the  conditions  or  extend  or
reduce  the  term  of  the  adjournment, except that the total period of
adjournment shall not exceed [twelve] SIX months.  Upon violation of any
condition fixed by the court, the court may revoke its order and restore
the case to the calendar and the prosecution thereupon must proceed.  If
the case is not so restored to the calendar during the period  fixed  by
the court, the accusatory instrument is, at the expiration of such peri-
od, deemed to have been dismissed in the furtherance of justice.
  §  37.  Section  210.46  of  the criminal procedure law, as amended by
chapter 360 of the laws of 1977, is amended to read as follows:
§ 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
        in a superior court.
  Upon or after arraignment in a superior court upon an indictment where
the  sole  remaining count or counts charge a violation or violations of
section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
law  and before the entry of a plea of guilty thereto or commencement of
a  trial  thereof, the court, upon motion of a defendant, may order that
all proceedings be suspended and the action adjourned  in  contemplation
of dismissal or may dismiss the indictment in furtherance of justice, in
accordance with the provisions of section 170.56 of this chapter.
  § 38. Paragraphs (h) and (i) of subdivision 1 of section 440.10 of the
criminal  procedure  law, paragraph (h) as amended by chapter 332 of the
laws of 2010 and paragraph (i) as amended by chapter 368 of the laws  of
2015, are amended and a new paragraph (j) is added to read as follows:
  (h) The judgment was obtained in violation of a right of the defendant
under the constitution of this state or of the United States; [or]
  (i)  The judgment is a conviction where the arresting charge was under
section 240.37 (loitering for the purpose of engaging in a  prostitution
offense, provided that the defendant was not alleged to be loitering for
the  purpose of patronizing a person for prostitution or promoting pros-
titution) or 230.00 (prostitution) or 230.03 (prostitution in  a  school
zone) of the penal law, and the defendant's participation in the offense
was  a  result  of having been a victim of sex trafficking under section
230.34 of the penal law, labor trafficking under section 135.35  of  the
penal  law,  aggravated  labor  trafficking  under section 135.37 of the
penal law, compelling prostitution under section  230.33  of  the  penal
law,  or trafficking in persons under the Trafficking Victims Protection
Act (United States Code, title 22, chapter 78); provided that
  (i) a motion under this paragraph shall be made  with  due  diligence,
after  the  defendant  has  ceased to be a victim of such trafficking or
compelling prostitution crime or has sought services for victims of such
trafficking or compelling  prostitution  crime,  subject  to  reasonable
concerns  for the safety of the defendant, family members of the defend-
ant, or other victims of such  trafficking  or  compelling  prostitution
crime  that  may  be  jeopardized by the bringing of such motion, or for
other reasons consistent with the purpose of this paragraph; and
  (ii) official documentation of the defendant's status as a  victim  of
trafficking,  compelling  prostitution  or trafficking in persons at the
time of the offense from a federal, state  or  local  government  agency
shall  create  a  presumption  that the defendant's participation in the
offense was a result of having been a victim of sex trafficking, compel-
ling prostitution or trafficking in persons, but shall not  be  required
for granting a motion under this paragraph[.]; OR

S. 3040--B                         58

  (J)  THE  JUDGMENT  OCCURRED PRIOR TO THE EFFECTIVE DATE OF THIS PARA-
GRAPH AND IS A CONVICTION FOR:
  (I) AN OFFENSE AS DEFINED BY SECTION 221.05 OR 221.10 OF THE PENAL LAW
(CRIMINAL  POSSESSION  OF  MARIHUANA  IN THE FIFTH DEGREE), AS IN EFFECT
PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH, PROVIDED THAT THE ACCUSA-
TORY INSTRUMENT THAT UNDERLIES THE JUDGMENT DOES NOT INCLUDE AN  ALLEGA-
TION  THAT  THE DEFENDANT POSSESSED MORE THAN TWENTY-FIVE GRAMS OF MARI-
HUANA; OR
  (II) AN OFFENSE AS DEFINED BY FORMER SECTION 221.35 OF THE  PENAL  LAW
(CRIMINAL SALE OF MARIHUANA IN THE FIFTH DEGREE).
  §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
follows:
  6.  If  the court grants a motion under paragraph (i) OR PARAGRAPH (J)
of subdivision one of this section, it  must  vacate  the  judgment  and
dismiss  the  accusatory instrument, and may take such additional action
as is appropriate in the circumstances.
  § 40. The criminal procedure law is amended by adding  a  new  section
440.46-a to read as follows:
§ 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
             OFFENSES.
  1.  A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER BY
TRIAL OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN  GUILTY  OF
AN  OFFENSE  OR  WHO  WOULD  HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
AT THE TIME OF HIS OR HER  CONVICTION  MAY  PETITION  FOR  A  RECALL  OR
DISMISSAL  OF  SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT
OF CONVICTION IN HIS OR HER CASE TO REQUEST RESENTENCING OR DISMISSAL IN
ACCORDANCE WITH ARTICLE TWELVE HUNDRED TWENTY-ONE OF THE PENAL LAW.
  2. UPON RECEIVING A MOTION UNDER SUBDIVISION ONE OF THIS  SECTION  THE
COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE
OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY CLEAR AND
CONVINCING  EVIDENCE  THAT  THE MOVANT DOES NOT SATISFY THE CRITERIA. IF
THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE  OF  THIS  SECTION,
THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR TO RESENTENCE
BECAUSE  IT  IS LEGALLY INVALID. IN EXERCISING ITS DISCRETION, THE COURT
MAY CONSIDER, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING:
  (A) THE MOVANT'S CRIMINAL CONVICTION HISTORY, INCLUDING  THE  TYPE  OF
CRIMES  COMMITTED,  THE EXTENT OF INJURY TO VICTIMS, THE LENGTH OF PRIOR
PRISON COMMITMENTS, AND THE REMOTENESS OF THE CRIMES.
  (B) THE MOVANT'S DISCIPLINARY  RECORD  AND  RECORD  OF  REHABILITATION
WHILE INCARCERATED.
  3.  A  PERSON  WHO  IS  SERVING A SENTENCE AND RESENTENCED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION SHALL  BE  GIVEN  CREDIT  FOR  ANY  TIME
ALREADY  SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR FOLLOW-
ING COMPLETION OF HIS OR HER TIME IN CUSTODY  OR  SHALL  BE  SUBJECT  TO
WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO
AFTER   RELEASE,   WHICHEVER  IS  SHORTER,  UNLESS  THE  COURT,  IN  ITS
DISCRETION, AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON  FROM
SUPERVISION.  SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER SECTION
60.04 OF THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER  SECTION  70.45
OF  THE  PENAL  LAW BY THE DESIGNATED AGENCY AND THE JURISDICTION OF THE
COURT IN THE COUNTY IN WHICH THE OFFENDER IS RELEASED OR RESIDES, OR  IN
WHICH  AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE PURPOSE
OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY.

S. 3040--B                         59

  4. UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS  SECTION  RESULT
IN  THE  IMPOSITION  OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE
REINSTATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA  AGREE-
MENT.
  5.  A  PERSON  WHO  HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
ER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE  BEEN  GUILTY
OF  AN  OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN APPLICATION BEFORE THE
TRIAL COURT THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR  HER  CASE
TO  HAVE  THE CONVICTION, IN ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-
ONE OF THE PENAL LAW:
  (A) DISMISSED BECAUSE THE PRIOR CONVICTION IS NOW LEGALLY INVALID  AND
SEALED IN ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER;
  (B)  REDESIGNATED  (OR  "RECLASSIFIED")  AS  A VIOLATION AND SEALED IN
ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER; OR
  (C) REDESIGNATED (RECLASSIFIED) AS A MISDEMEANOR.
  6. THE COURT SHALL PRESUME THE PETITIONER SATISFIES  THE  CRITERIA  IN
SUBDIVISION  FIVE  UNLESS  THE  PARTY OPPOSING THE APPLICATION PROVES BY
CLEAR AND CONVINCING EVIDENCE THAT THE PETITIONER DOES NOT  SATISFY  THE
CRITERIA  IN SUBDIVISION FIVE. ONCE THE APPLICANT SATISFIES THE CRITERIA
IN SUBDIVISION FIVE, THE COURT SHALL REDESIGNATE (OR  "RECLASSIFY")  THE
CONVICTION  AS A MISDEMEANOR, REDESIGNATE (RECLASSIFY) THE CONVICTION AS
A VIOLATION AND SEAL THE CONVICTION, OR DISMISS AND SEAL THE  CONVICTION
AS LEGALLY INVALID UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT
THE TIME OF HIS OR HER CONVICTION.
  7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECESSARY TO GRANT
OR DENY AN APPLICATION FILED UNDER SUBDIVISION FIVE OF THIS SECTION.
  8.  ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER SUBDI-
VISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION UNDER SUBDIVISION
SIX OF THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR OR  VIOLATION  FOR
ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT IS VACATED AND RESENTENCED
UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A VIOLATION UNDER
SUBDIVISION  SIX OF THIS SECTION SHALL BE CONSIDERED A VIOLATION FOR ALL
PURPOSES.
  9. IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAILABLE,
THE PRESIDING JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON  THE  PETI-
TION OR APPLICATION.
  10.  NOTHING  IN  THIS SECTION IS INTENDED TO DIMINISH OR ABROGATE ANY
RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
  11. NOTHING IN THIS AND RELATED SECTIONS IS INTENDED  TO  DIMINISH  OR
ABROGATE  THE  FINALITY OF JUDGEMENTS IN ANY CASE NOT FALLING WITHIN THE
PURVIEW OF THIS SECTION.
  12. THE PROVISIONS OF THIS SECTION SHALL  APPLY  EQUALLY  TO  JUVENILE
DELINQUENCY  ADJUDICATIONS  AND  DISPOSITIONS UNDER SECTION FIVE HUNDRED
ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
AN OFFENSE OR WOULD HAVE BEEN GUILTY OF  A  LESSER  OFFENSE  UNDER  THIS
SECTION  HAD  THIS  SECTION  BEEN  IN  EFFECT  AT THE TIME OF HIS OR HER
CONVICTION.
  13. THE OFFICE OF  COURT  ADMINISTRATION  SHALL  PROMULGATE  AND  MAKE
AVAILABLE  ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS AND
APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
THE EFFECTIVE DATE OF THIS SECTION.

S. 3040--B                         60

  § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
procedure law, as amended by chapter 37 of the laws of 2014, is  amended
to read as follows:
  (c)  Criminal  possession  of  a  controlled  substance in the seventh
degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
possession  of  a controlled substance in the fifth degree as defined in
section 220.06 of the penal law, criminal  possession  of  a  controlled
substance in the fourth degree as defined in section 220.09 of the penal
law,  criminal  possession of a controlled substance in the third degree
as defined in section 220.16 of the penal law, criminal possession of  a
controlled  substance  in the second degree as defined in section 220.18
of the penal law, criminal possession of a controlled substance  in  the
first  degree  as  defined  in section 220.21 of the penal law, criminal
sale of a controlled substance in the fifth degree as defined in section
220.31 of the penal law, criminal sale of a controlled substance in  the
fourth  degree  as  defined in section 220.34 of the penal law, criminal
sale of a controlled substance in the third degree as defined in section
220.39 of the penal law, criminal sale of a controlled substance in  the
second  degree  as  defined in section 220.41 of the penal law, criminal
sale of a controlled substance in the first degree as defined in section
220.43 of the penal law, criminally possessing a  hypodermic  instrument
as  defined  in  section  220.45  of  the  penal law, criminal sale of a
prescription for a controlled substance or a controlled substance  by  a
practitioner  or  pharmacist  as  defined in section 220.65 of the penal
law, criminal possession of methamphetamine  manufacturing  material  in
the  second degree as defined in section 220.70 of the penal law, crimi-
nal possession of methamphetamine manufacturing material  in  the  first
degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
possession of precursors of methamphetamine as defined in section 220.72
of the penal law, unlawful manufacture of methamphetamine in  the  third
degree  as defined in section 220.73 of the penal law, unlawful manufac-
ture of methamphetamine in the  second  degree  as  defined  in  section
220.74  of the penal law, unlawful manufacture of methamphetamine in the
first degree as defined in section 220.75 of  the  penal  law,  unlawful
disposal  of  methamphetamine  laboratory material as defined in section
220.76 of the penal law, operating as a major trafficker as  defined  in
section  220.77  of  the penal law, [criminal possession of marihuana in
the first degree as defined in section 221.30 of the penal law, criminal
sale of marihuana in the first degree as defined in  section  221.55  of
the  penal  law,]  promoting gambling in the second degree as defined in
section 225.05 of the penal law, promoting gambling in the first  degree
as  defined  in  section 225.10 of the penal law, possession of gambling
records in the second degree as defined in section 225.15 of  the  penal
law,  possession  of  gambling records in the first degree as defined in
section 225.20 of the penal law, and possession of a gambling device  as
defined in section 225.30 of the penal law;
  § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
9  of  section  1310 of the civil practice law and rules, paragraphs (b)
and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
are amended to read as follows:
  (b) on three or more occasions, engaging  in  conduct  constituting  a
violation  of  any  of  the  felonies defined in section 220.09, 220.16,
220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] OR 220.43 [or  221.55]
of  the  penal law, which violations do not constitute a single criminal
offense as defined in subdivision one of section 40.10 of  the  criminal

S. 3040--B                         61

procedure law, or a single criminal transaction, as defined in paragraph
(a)  of  subdivision two of section 40.10 of the criminal procedure law,
and at least one of which resulted in a conviction of such  offense,  or
where  the  accusatory  instrument charges one or more of such felonies,
conviction upon a plea of guilty to a felony  for  which  such  plea  is
otherwise authorized by law; or
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
nal  defendant  for  a violation of section 221.30 of the penal law,] or
where the accusatory instrument charges any such felony, conviction upon
a plea of guilty to a felony for which the plea is otherwise  authorized
by  law,  together with evidence which: (i) provides substantial indicia
that the defendant used the real property  to  engage  in  a  continual,
ongoing  course  of  conduct involving the unlawful mixing, compounding,
manufacturing, warehousing, or packaging of  controlled  substances  [or
where  the  conviction is for a violation of section 221.30 of the penal
law, marijuana,] as part of an illegal trade or business for  gain;  and
(ii) establishes, where the conviction is for possession of a controlled
substance  [or where the conviction is for a violation of section 221.30
of the penal law, marijuana], that such possession was with  the  intent
to sell it.
  [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
article two hundred twenty or section 221.30  or  221.55  of  the  penal
law.]
  9.  "Criminal defendant" means a person who has criminal liability for
a crime defined in [subdivisions] SUBDIVISION five [and six  hereof]  OF
THIS  SECTION.  For  purposes  of  this  article,  a person has criminal
liability when [(a)] he has been convicted of a post-conviction  forfei-
ture  crime[, or (b) the claiming authority proves by clear and convinc-
ing evidence that such person has committed an act in violation of arti-
cle two hundred twenty or section 221.30 or 221.55 of the penal law].
  § 43. Subdivision 13 of section 89-f of the general business  law,  as
added by chapter 336 of the laws of 1992, is amended to read as follows:
  13.  "Serious  offense"  shall  mean any felony involving the offenses
enumerated in the closing paragraph  of  this  subdivision;  a  criminal
solicitation  of  or a conspiracy to commit or an attempt to commit or a
criminal facilitation of a felony involving the offenses  enumerated  in
the  closing paragraph of this subdivision, which criminal solicitation,
conspiracy, attempt or criminal facilitation itself constitutes a felony
or any offense in any other jurisdiction  which  if  committed  in  this
state  would  constitute a felony; any offense in any other jurisdiction
which if committed in this state would constitute a felony provided that
for the purposes of this article, none of the following shall be consid-
ered criminal convictions or reported as  such:  (i)  a  conviction  for
which an executive pardon has been issued pursuant to the executive law;
(ii)  a  conviction  which  has  been vacated and replaced by a youthful
offender finding pursuant to article seven hundred twenty of the  crimi-
nal  procedure  law,  or  the  applicable provisions of law of any other
jurisdiction; or (iii) a conviction  the  records  of  which  have  been
sealed  pursuant  to the applicable provisions of the laws of this state
or of any other jurisdiction; and (iv)  a  conviction  for  which  other
evidence  of successful rehabilitation to remove the disability has been
issued.
  Felonies involving: assault, aggravated assault and reckless endanger-
ment pursuant to article one  hundred  twenty;  vehicular  manslaughter,
manslaughter and murder pursuant to article one hundred twenty-five; sex

S. 3040--B                         62

offenses  pursuant to article one hundred thirty; unlawful imprisonment,
kidnapping or coercion pursuant  to  article  one  hundred  thirty-five;
criminal  trespass  and  burglary pursuant to article one hundred forty;
criminal  mischief,  criminal  tampering  and  tampering with a consumer
product pursuant to article one hundred forty-five;  arson  pursuant  to
article one hundred fifty; larceny and offenses involving theft pursuant
to article one hundred fifty-five; offenses involving computers pursuant
to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
hundred sixty; criminal possession of stolen property pursuant to  arti-
cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
article one hundred seventy; involving false written statements pursuant
to article one hundred seventy-five; commercial bribing  and  commercial
bribe  receiving pursuant to article one hundred eighty; criminal imper-
sonation and scheme to defraud pursuant to article one  hundred  ninety;
bribery involving public servants and related offenses pursuant to arti-
cle  two  hundred;  perjury and related offenses pursuant to article two
hundred ten; tampering with a witness, intimidating a victim or  witness
and  tampering  with  physical  evidence pursuant to article two hundred
fifteen; criminal possession  of  a  controlled  substance  pursuant  to
sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
220.41, 220.43 and 220.44; criminal sale of [marijuana] MARIHUANA IN THE
FIRST DEGREE pursuant to [sections] SECTION 221.45[, 221.50 and 221.55];
riot  in  the  first  degree, aggravated harassment in the first degree,
criminal nuisance in the first degree and falsely reporting an  incident
in the second or first degree pursuant to article two hundred forty; and
crimes  against public safety pursuant to article two hundred sixty-five
of the penal law.
  § 44. Paragraph (f) of subdivision 2 of section  850  of  the  general
business law is REPEALED.
  §  45.  Paragraph  (h)  of subdivision 2 of section 850 of the general
business law, as amended by chapter 812 of the laws of 1980, is  amended
to read as follows:
  (h)  Objects, used or designed for the purpose of ingesting, inhaling,
or otherwise introducing [marihuana,] cocaine, [hashish, or hashish oil]
into the human body.
  § 46. Paragraph a of subdivision 4-a  of  section  165  of  the  state
finance  law,  as added by chapter 95 of the laws of 2000, is amended to
read as follows:
  a. In order  to  advance  specific  economic  goals,  New  York  state
labelled wines, as defined in subdivision [twenty-a] TWENTY-J of section
three  of  the alcoholic beverage control law, shall have favored source
status for the purposes of procurement in accordance with the provisions
of this subdivision.  Procurement of these New York state labelled wines
shall be exempt from the competitive procurement provisions  of  section
one  hundred  sixty-three of this article and other competitive procure-
ment statutes.  Such exemption shall apply to New  York  state  labelled
wines  as defined in subdivision [twenty-a] TWENTY-J of section three of
the alcoholic beverage control law produced  by  a  licensed  winery  as
defined in section seventy-six of the alcoholic beverage control law.
  § 47. Subdivision 7 of section 995 of the executive law, as amended by
chapter 19 of the laws of 2012, is amended to read as follows:
  7.  "Designated  offender"  means  a  person  convicted  of any felony
defined in any chapter of the laws  of  the  state  or  any  misdemeanor
defined  in  the  penal  law  [except that where the person is convicted
under section 221.10 of the penal law, only  a  person  convicted  under

S. 3040--B                         63

subdivision two of such section, or a person convicted under subdivision
one  of  such  section  who  stands previously convicted of any crime as
defined in subdivision six of section 10.00 of the penal law].
  § 48. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
penal law, paragraph (b) as amended by section 31 of part AAA of chapter
56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
laws of 1990, are amended to read as follows:
  (b) three or more violations of any of the felonies defined in section
220.09,  220.16,  220.18,  220.21,  220.31,  220.34,   220.39,   220.41,
220.43[,]  OR  220.77[,  or 221.55] of this chapter, which violations do
not constitute a single criminal offense as defined in  subdivision  one
of  section  40.10  of  the criminal procedure law, or a single criminal
transaction, as defined in paragraph (a) of subdivision two  of  section
40.10  of the criminal procedure law, and at least one of which resulted
in a conviction of such offense,  or  where  the  accusatory  instrument
charges  one  or more of such felonies, conviction upon a plea of guilty
to a felony for which such plea is otherwise authorized by law; or
  (c) a conviction of a  person  for  a  violation  of  section  220.09,
220.16,  220.34[,]  OR 220.39[, or 221.30] of this chapter, or where the
accusatory instrument charges any such felony, conviction upon a plea of
guilty to a felony for which the plea is otherwise  authorized  by  law,
together  with evidence which: (i) provides substantial indicia that the
defendant used the real property  to  engage  in  a  continual,  ongoing
course  of  conduct involving the unlawful mixing, compounding, manufac-
turing, warehousing, or packaging of controlled substances [or where the
conviction is for a violation of section 221.30 of this  chapter,  mari-
juana] as part of an illegal trade or business for gain; and (ii) estab-
lishes, where the conviction is for possession of a controlled substance
[or  where  the  conviction is for a violation of section 221.30 of this
chapter, marijuana], that such possession was with the  intent  to  sell
it.
  §  49. Paragraph (c) of subdivision 4 of section 509-cc of the vehicle
and traffic law, as amended by chapter 368  of  the  laws  of  2015,  is
amended to read as follows:
  (c)  The  offenses referred to in subparagraph (i) of paragraph (b) of
subdivision one and subparagraph (i) of paragraph (c) of subdivision two
of this section that result in disqualification for  a  period  of  five
years  shall include a conviction under sections 100.10, 105.13, 115.05,
120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
125.40,  125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17,
140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06,  220.09,
220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
230.00, 230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20,  235.05,
235.06,  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision two of
section 260.20 and sections  260.25,  265.02,  265.03,  265.08,  265.09,
265.10,  265.12,  265.35 of the penal law or an attempt to commit any of
the aforesaid offenses under section 110.00 of the  penal  law,  or  any
similar  offenses  committed under a former section of the penal law, or
any offenses committed under a former section of  the  penal  law  which
would  constitute violations of the aforesaid sections of the penal law,
or any offenses committed outside  this  state  which  would  constitute
violations of the aforesaid sections of the penal law.
  §  50.  The  opening  paragraph  of  paragraph (a) of subdivision 2 of
section 1194 of the vehicle and traffic law, as amended by  chapter  196
of the laws of 1996, is amended to read as follows:

S. 3040--B                         64

  When authorized. Any person who operates a motor vehicle in this state
shall  be deemed to have given consent to a chemical test of one or more
of the following: breath, blood, urine, or saliva, for  the  purpose  of
determining  the  alcoholic  and/or  drug  content, OTHER THAN MARIHUANA
CONTENT  INCLUDING  BUT  NOT LIMITED TO TETRAHYDROCANNABINOL CONTENT, of
the blood provided that such test is administered by or at the direction
of a police officer with respect to a chemical test of breath, urine  or
saliva or, with respect to a chemical test of blood, at the direction of
a police officer:
  §  51.  Section 17 of the alcoholic beverage control law is amended by
adding a new subdivision 12 to read as follows:
  12. TO DEVELOP AND ESTABLISH MINIMUM CRITERIA FOR ALCOHOL OR SUBSTANCE
ABUSE TRAINING AWARENESS PROGRAMS WHICH MAY BE GIVEN AND ADMINISTERED BY
SCHOOLS; OTHER ENTITIES INCLUDING TRADE ASSOCIATIONS WHOSE  MEMBERS  ARE
ENGAGED  IN  OR  INVOLVED  IN  THE  RETAIL  SALE OF ALCOHOLIC BEVERAGES;
NATIONAL AND REGIONAL FRANCHISORS WHO HAVE GRANTED AT LEAST  FIVE  FRAN-
CHISES  IN  THE STATE WHICH ARE LICENSED TO SELL BEER AT RETAIL FOR OFF-
PREMISES CONSUMPTION; LICENSEES AUTHORIZED TO SELL  ALCOHOLIC  BEVERAGES
AT  RETAIL  FOR OFF-PREMISES CONSUMPTION OPERATING FIVE OR MORE LICENSED
PREMISES; AND PERSONS INTERESTED, WHETHER AS AN INDIVIDUAL PROPRIETOR OR
PARTNER OR OFFICER OR MEMBER OF A LIMITED LIABILITY COMPANY, IN FIVE  OR
MORE  LICENSEES  AUTHORIZED  TO  SELL  ALCOHOLIC BEVERAGES AT RETAIL FOR
OFF-PREMISES CONSUMPTION. THE AUTHORITY SHALL PROVIDE FOR  THE  ISSUANCE
OF  CERTIFICATES OF APPROVAL TO ALL CERTIFIED ALCOHOL OR SUBSTANCE ABUSE
TRAINING AWARENESS PROGRAMS. CERTIFICATES OF APPROVAL MAY BE REVOKED  BY
THE  AUTHORITY  FOR FAILURE TO ADHERE TO THE AUTHORITY'S RULES AND REGU-
LATIONS. SUCH RULES AND REGULATIONS SHALL AFFORD  THOSE  WHO  HAVE  BEEN
ISSUED  A  CERTIFICATE OF APPROVAL AN OPPORTUNITY FOR A HEARING PRIOR TO
ANY DETERMINATION OF WHETHER SUCH CERTIFICATE SHOULD BE REVOKED.
  NO LICENSEE SHALL BE REQUIRED TO APPLY FOR  ANY  SUCH  CERTIFICATE  OR
RENEWAL  CERTIFICATE  AND  THE LICENSEE MAY VOLUNTARILY SURRENDER SUCH A
CERTIFICATE OR RENEWAL CERTIFICATE AT ANY TIME. A FEE IN THE  AMOUNT  OF
NINE  HUNDRED  DOLLARS SHALL BE PAID TO THE AUTHORITY WITH EACH APPLICA-
TION FOR A CERTIFICATE OF APPROVAL OR RENEWAL CERTIFICATE.  THE AUTHORI-
TY SHALL PROMPTLY REFUND SUCH FEE TO AN APPLICANT WHOSE APPLICATION  WAS
DENIED. EACH CERTIFICATE OF APPROVAL AND RENEWAL THEREOF SHALL BE ISSUED
FOR A PERIOD OF THREE YEARS. TO EFFECTUATE THE PROVISIONS OF THIS SUBDI-
VISION,  THE  AUTHORITY  IS  EMPOWERED  TO REQUIRE IN CONNECTION WITH AN
APPLICATION THE SUBMISSION OF SUCH  INFORMATION  AS  THE  AUTHORITY  MAY
DIRECT;  TO  PRESCRIBE FORMS OF APPLICATIONS AND OF ALL REPORTS WHICH IT
DEEMS NECESSARY TO BE MADE BY ANY APPLICANT OR  CERTIFICATE  HOLDER;  TO
CONDUCT  INVESTIGATIONS;  TO  REQUIRE  THE MAINTENANCE OF SUCH BOOKS AND
RECORDS AS THE AUTHORITY MAY DIRECT; AND TO REVOKE, CANCEL,  OR  SUSPEND
FOR  CAUSE ANY CERTIFICATE PROVIDED FOR IN THIS SUBDIVISION. EACH ENTITY
AUTHORIZED TO GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE ABUSE TRAINING
AWARENESS PROGRAM SHALL ISSUE CERTIFICATES OF COMPLETION TO  ALL  LICEN-
SEES AND EMPLOYEES WHO SUCCESSFULLY COMPLETE SUCH AN APPROVED ALCOHOL OR
SUBSTANCE  ABUSE TRAINING AWARENESS PROGRAM. SUCH ENTITY SHALL REGULARLY
TRANSMIT TO THE AUTHORITY THE NAMES, ADDRESSES AND DATES  OF  ATTENDANCE
OF  ALL  THE  LICENSEES  AND  EMPLOYEES  OF  LICENSEES  WHO SUCCESSFULLY
COMPLETE AN APPROVED  ALCOHOL  OR  SUBSTANCE  ABUSE  TRAINING  AWARENESS
PROGRAM.  SUCH  TRANSMITTAL  SHALL BE IN A FORM AND MANNER PRESCRIBED BY
THE AUTHORITY. THE AUTHORITY SHALL ADOPT RULES AND REGULATIONS TO EFFEC-
TUATE THE PROVISIONS OF THIS SUBDIVISION, INCLUDING THE MINIMUM REQUIRE-
MENTS FOR THE CURRICULUM OF EACH SUCH TRAINING PROGRAM AND  THE  REGULAR
ONGOING  TRAINING  OF  EMPLOYEES  HOLDING  CERTIFICATES OF COMPLETION OR

S. 3040--B                         65

RENEWAL CERTIFICATES.   SUCH RULES AND  REGULATIONS  SHALL  INCLUDE  THE
MINIMUM  REQUIREMENTS  FOR A SEPARATE CURRICULUM FOR LICENSEES AND THEIR
EMPLOYEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES AT RETAIL FOR OFF-PREM-
ISES  CONSUMPTION,  MINIMUM  REQUIREMENTS  FOR A SEPARATE CURRICULUM FOR
LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES  AT
RETAIL  FOR  ON-PREMISES  CONSUMPTION,  AND THE FORM OF A CERTIFICATE OF
COMPLETION OR RENEWAL THEREOF TO BE ISSUED IN RESPECT TO EACH SUCH  TYPE
OF  PROGRAM. A CERTIFICATE OF COMPLETION OR RENEWAL THEREOF ISSUED BY AN
ENTITY AUTHORIZED TO GIVE AND ADMINISTER AN ALCOHOL OR  SUBSTANCE  ABUSE
TRAINING AWARENESS PROGRAM PURSUANT TO THIS SUBDIVISION TO LICENSEES AND
THEIR  EMPLOYEES  AUTHORIZED  TO  SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
OFF-PREMISES CONSUMPTION SHALL NOT BE INVALIDATED BY A CHANGE OF EMPLOY-
MENT TO ANOTHER SUCH LICENSEE. A CERTIFICATE OF  COMPLETION  OR  RENEWAL
THEREOF ISSUED BY AN ENTITY AUTHORIZED TO GIVE AND ADMINISTER AN ALCOHOL
OR  SUBSTANCE ABUSE TRAINING AWARENESS PROGRAM PURSUANT TO THIS SUBDIVI-
SION TO LICENSEES AND  THEIR  EMPLOYEES  AUTHORIZED  TO  SELL  ALCOHOLIC
BEVERAGES AT RETAIL FOR ON-PREMISES CONSUMPTION SHALL NOT BE INVALIDATED
BY  A  CHANGE  OF EMPLOYMENT TO ANOTHER SUCH LICENSEE. ATTENDANCE AT ANY
COURSE ESTABLISHED PURSUANT TO THIS SECTION SHALL BE IN PERSON,  THROUGH
DISTANCE LEARNING METHODS, OR THROUGH AN INTERNET BASED ONLINE PROGRAM.
  §  52.  Subdivision 12 of section 17 of the alcoholic beverage control
law, as amended by chapter 549 of the laws of 2001,  the  closing  para-
graph  as amended by chapter 435 of the laws of 2010, is amended to read
as follows:
  12. To develop and establish minimum criteria for alcohol OR SUBSTANCE
ABUSE training awareness programs which may be given and administered by
schools; other entities including trade associations whose  members  are
engaged  in  or  involved  in  the  retail  sale of alcoholic beverages;
national and regional franchisors who have granted at least  five  fran-
chises  in  the state which are licensed to sell beer at retail for off-
premises consumption; licensees authorized to sell  alcoholic  beverages
at  retail  for off-premises consumption operating five or more licensed
premises; and persons interested, whether as an individual proprietor or
partner or officer or member of a limited liability company, in five  or
more  licensees  authorized  to  sell  alcoholic beverages at retail for
off-premises consumption. The authority shall provide for  the  issuance
of  certificates of approval to all certified alcohol OR SUBSTANCE ABUSE
training awareness programs. Certificates of approval may be revoked  by
the  authority  for failure to adhere to the authority's rules and regu-
lations. Such rules and regulations shall afford  those  who  have  been
issued  a  certificate of approval an opportunity for a hearing prior to
any determination of whether such certificate should be revoked.
  No licensee shall be required to apply for  any  such  certificate  or
renewal  certificate  and  the licensee may voluntarily surrender such a
certificate or renewal certificate at any time. A fee in the  amount  of
nine  hundred  dollars shall be paid to the authority with each applica-
tion for a certificate of approval or renewal certificate. The authority
shall promptly refund such fee to an  applicant  whose  application  was
denied. Each certificate of approval and renewal thereof shall be issued
for a period of three years. To effectuate the provisions of this subdi-
vision,  the  authority  is  empowered  to require in connection with an
application the submission of such  information  as  the  authority  may
direct;  to  prescribe forms of applications and of all reports which it
deems necessary to be made by any applicant or  certificate  holder;  to
conduct  investigations;  to  require  the maintenance of such books and
records as the authority may direct; to revoke, cancel, or  suspend  for

S. 3040--B                         66

cause  any  certificate  provided  for  in this subdivision. Each entity
authorized to give and administer an alcohol OR SUBSTANCE ABUSE training
awareness program shall issue certificates of completion to  all  licen-
sees and employees who successfully complete such an approved alcohol OR
SUBSTANCE  ABUSE training awareness program. Such entity shall regularly
transmit to the authority the names, addresses and dates  of  attendance
of  all  the  licensees  and  employees  of  licensees  who successfully
complete an approved  alcohol  OR  SUBSTANCE  ABUSE  training  awareness
program.    Such transmittal shall be in a form and manner prescribed by
the authority. The authority shall adopt rules and regulations to effec-
tuate the provisions of this subdivision, including the minimum require-
ments for the curriculum of each such training program and  the  regular
ongoing  training  of  employees  holding  certificates of completion or
renewal certificates. Such rules and regulations shall include the mini-
mum requirements for a  separate  curriculum  for  licensees  and  their
employees authorized to sell alcoholic beverages at retail for off-prem-
ises  consumption,  minimum  requirements  for a separate curriculum for
licensees and their employees authorized to sell alcoholic beverages  at
retail  for  on-premises  consumption,  and the form of a certificate of
completion or renewal thereof to be issued in respect to each such  type
of  program. A certificate of completion or renewal thereof issued by an
entity authorized to give and administer an alcohol OR  SUBSTANCE  ABUSE
training awareness program pursuant to this subdivision to licensees and
their  employees  authorized  to  sell alcoholic beverages at retail for
off-premises consumption shall not be invalidated by a change of employ-
ment to another such licensee. A certificate of  completion  or  renewal
thereof issued by an entity authorized to give and administer an alcohol
OR  SUBSTANCE ABUSE training awareness program pursuant to this subdivi-
sion to licensees and  their  employees  authorized  to  sell  alcoholic
beverages at retail for on-premises consumption shall not be invalidated
by  a  change  of employment to another such licensee. Attendance at any
course established pursuant to this section shall be in person,  through
distance learning methods, or through an internet based online program.
  § 53. Section 150.75 of the criminal procedure law is REPEALED.
  §  54.  Subdivision  (a)  of  section  712 of the family court act, as
amended by section 7 of part G of chapter 58 of the  laws  of  2010,  is
amended to read as follows:
  (a) "Person in need of supervision". A person less than eighteen years
of  age  who does not attend school in accordance with the provisions of
part one of article sixty-five of the education law or who is incorrigi-
ble, ungovernable  or  habitually  disobedient  and  beyond  the  lawful
control of a parent or other person legally responsible for such child's
care,  or  other  lawful  authority,  or  who violates the provisions of
section [221.05 or] 230.00 of the penal law, or  who  appears  to  be  a
sexually  exploited  child  as  defined  in paragraph (a), (c) or (d) of
subdivision one of section four  hundred  forty-seven-a  of  the  social
services law, but only if the child consents to the filing of a petition
under this article.
  §  55. Appropriation.  The sum of five million dollars ($5,000,000) is
hereby appropriated to the New York State Liquor Authority  out  of  any
moneys  in  the  state treasury in the general fund to the credit of the
state purposes account, not otherwise appropriated, and made immediately
available, for the purpose of carrying out the provisions of  this  act.
Such moneys shall be payable on the audit and warrant of the comptroller
on  vouchers certified or approved by the superintendent or the chairman
of the New York State Liquor Authority in the manner prescribed by law.

S. 3040--B                         67

  § 56. Severability. If any provision or term of this act  is  for  any
reason  declared unconstitutional or invalid or ineffective by any court
of competent jurisdiction, such decision shall not affect  the  validity
of  the  effectiveness of the remaining portions of this act or any part
thereof.
  §  57. 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
reversion of such section and shall expire and be deemed repealed there-
with, when upon such date the provisions of section  fifty-two  of  this
act shall take effect.

Co-Sponsors

view additional co-sponsors

S3040C (ACTIVE) - Details

See Assembly Version of this Bill:: A3506
Current Committee:: Senate Finance
Law Section:: Public Health Law
Laws Affected:: Amd Various Laws, generally
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6005, A8341
2015-2016: S1747, A3089
2019-2020: S1527, A1617
2021-2022: S854, A1248

S3040C (ACTIVE) - Summary

S3040C (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S3040C              Revised 12/13/18

SPONSOR: KRUEGER
 
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 65-e 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:

2017-2018: S.3040C - Health/A.3506C Peoples-Stokes Codes
2015-2016:  S.1747 - Health/A.3089A Peoples-Stokes Codes
2013-2014: S.6005 - Health/A.8341 Peoples-Stokes Codes

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Increase revenue for state and local governments. Fiscal implication
assumptions for similar legislation implemented in Colorado, Amendment
64, estimated an annual revenue increase of 5-22 million dollars and an
annual spending increase of .5-1.5 million dollars.  Given the larger
population of New York State this legislation should generate revenue
substantially larger than these estimates.

 
EFFECTIVE DATE:
Immediately.

S3040C (ACTIVE) - Bill Text download pdf


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

                                 3040--C

                       2017-2018 Regular Sessions

                            I N  S E N A T E

                            January 19, 2017
                               ___________

Introduced by Sens. KRUEGER, ALCANTARA, BAILEY, COMRIE, DILAN, GIANARIS,
  HAMILTON,  HOYLMAN,  MONTGOMERY,  PARKER,  PERALTA, RIVERA, SEPULVEDA,
  SERRANO -- read twice and ordered printed,  and  when  printed  to  be
  committed  to  the  Committee on Finance -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee  --  committee  discharged,  bill  amended,  ordered  reprinted as
  amended and recommitted  to  said  committee  --  recommitted  to  the
  Committee  on  Finance  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, 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
  conforming changes; to repeal sections 221.05, 221.10, 221.15, 221.20,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD05327-10-8

S. 3040--C                          2

  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:

  Section 1. This act shall be known and may be cited as the  "marihuana
regulation and taxation act".
  §  2.  Legislative  findings  and intent.   The legislature finds that
existing marihuana laws have not been beneficial to the welfare  of  the
general public. Existing laws have been ineffective in reducing or curb-
ing  marihuana  use  and have instead resulted in devastating collateral
consequences that inhibit an otherwise law-abiding citizen's ability  to
access  housing,  employment  opportunities,  and  other vital services.
Existing laws have also created an illicit  market  which  represents  a
threat  to  public  health and reduces the ability of the legislature to
deter the accessing of marihuana by minors. Existing marihuana laws have
also disproportionately impacted African-American  and  Latino  communi-
ties.
  The intent of this act is to regulate, control, and tax marihuana in a
manner  similar to alcohol, generate millions of dollars in new revenue,
prevent access to marihuana by those under the age of twenty-one  years,
reduce  the illegal drug market and reduce violent crime, reduce partic-
ipation of otherwise law-abiding citizens in the illicit market, end the
racially disparate impact of existing  marihuana  laws  and  create  new
industries and increase employment.
  Nothing in this act is intended to limit the authority of any district
government  agency  or office or employers to enact and enforce policies
pertaining to marihuana in the workplace, to  allow  driving  under  the
influence  of  marihuana, to allow individuals to engage in conduct that
endangers others, to allow smoking marihuana in any location where smok-
ing tobacco is prohibited, or to require any individual to engage in any
conduct that violates federal law or to exempt anyone from any  require-
ment  of  federal law or pose any obstacle to the federal enforcement of
federal law.
  Nothing in this act is intended to limit any privileges or rights of a
medical marihuana patient or medical marihuana caregiver under  the  New
York Compassionate Care Act.
  It  is  the intent of this act that no child shall be the subject of a
child neglect or abuse investigation or proceeding  based  solely  on  a
parent's alleged use of marihuana. A newborn child's positive toxicology
result  for marihuana, is not sufficient on its own to support a finding
of child neglect or abuse. Enactment of this act  shall  provide  suffi-
cient  basis for New York state to favorably resolve open investigations
and to amend and seal individuals' family court records and  records  of
indicated  child  abuse  or  neglect  reports currently in the statewide
central register of child abuse and maltreatment based solely on the use
of marihuana or where the reporter of suspected abuse or neglect  was  a
law  enforcement  agency or staff person and the report was based solely
upon the presence of a child during a marihuana-related arrest.

S. 3040--C                          3

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

S. 3040--C                          4

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

S. 3040--C                          5

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

S. 3040--C                          6

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

S. 3040--C                          7

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

S. 3040--C                          8

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

S. 3040--C                          9

settlement agreement, including the terms of such, has been given to the
office of victim  services,  the  state  division  of  criminal  justice
services[,  and in the case of a forfeiture based on a felony defined in
article two hundred twenty or section 221.30 or 221.55 of the penal law,
to the state division of substance abuse services].
  (b)  No  judgment  or order of forfeiture shall be accepted for filing
unless it is accompanied by an affidavit  from  the  claiming  authority
that  written  notice of judgment or order, including the terms of such,
has been given to the office of victim services, the state  division  of
criminal  justice  services[, and in the case of a forfeiture based on a
felony defined in article two hundred twenty or section 221.30 or 221.55
of the penal law, to the state division of substance abuse services].
  § 7. Subdivision 1 of section 3397-b of  the  public  health  law,  as
added by chapter 810 of the laws of 1980, is amended to read as follows:
  1. ["Marijuana"] "MARIHUANA" means [marijuana] MARIHUANA as defined in
[section  thirty-three  hundred  two of this chapter] SUBDIVISION SIX OF
SECTION 220.00 OF THE PENAL LAW and shall also include  tetrahydrocanna-
binols or a chemical derivative of tetrahydrocannabinol.
  § 8. Section 114-a of the vehicle and traffic law, as added by chapter
163 of the laws of 1973, is amended to read as follows:
  § 114-a. Drug.  The  term  "drug" when used in this chapter, means and
includes any substance listed in section thirty-three hundred six of the
public health law AND MARIHUANA AND CONCENTRATED CANNABIS AS DEFINED  IN
SECTION 220.00 OF THE PENAL LAW.
  §  9.  Subdivisions  5,  6  and  9 of section 220.00 of the penal law,
subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
6 as amended by chapter 1051 of the laws of 1973 and  subdivision  9  as
amended  by  chapter  664  of  the laws of 1985, are amended and two new
subdivisions 21 and 22 are added to read as follows:
  5. "Controlled substance" means any substance listed  in  schedule  I,
II,  III,  IV  or  V  of  section thirty-three hundred six of the public
health law other than marihuana, but including concentrated cannabis  as
defined  in  [paragraph  (a) of subdivision four of section thirty-three
hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION.
  6. "Marihuana" means ["marihuana" or "concentrated cannabis" as  those
terms  are  defined  in  section  thirty-three hundred two of the public
health law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER  GROW-
ING  OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY PART OF THE
PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT,  DERIVATIVE,  MIXTURE,  OR
PREPARATION  OF  THE PLANT, ITS SEEDS OR RESIN.  IT DOES NOT INCLUDE THE
MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS, OIL OR  CAKE
MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANUFACTURE, SALT,
DERIVATIVE,  MIXTURE,  OR  PREPARATION  OF THE MATURE STALKS (EXCEPT THE
RESIN EXTRACTED THEREFROM), FIBER, OIL, OR CAKE, OR THE STERILIZED  SEED
OF  THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES NOT INCLUDE ALL
PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO
MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC).
  9. "Hallucinogen" means any controlled substance listed  in  [schedule
I(d)]  PARAGRAPHS  (5),  [(18),  (19),  (20), (21) and (22)] (17), (18),
(19), (20) AND (21) OF SUBDIVISION (D) OF SCHEDULE I OF SECTION  THIRTY-
THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW.
  21. "CONCENTRATED CANNABIS" MEANS:
  (A)  THE  SEPARATED  RESIN, WHETHER CRUDE OR PURIFIED, OBTAINED FROM A
PLANT OF THE GENUS CANNABIS; OR
  (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-

S. 3040--C                         10

CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
NUMBERING SYSTEM.
  22.  "MARIHUANA  PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS CONTAINING CONCENTRATED MARIHUANA OR CANNABIS
AND OTHER INGREDIENTS.
  § 10.  Subdivision 4 of section 220.06 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  4.  one  or  more  preparations,  compounds,  mixtures  or  substances
containing  concentrated cannabis as defined in [paragraph (a) of subdi-
vision four of section thirty-three hundred two  of  the  public  health
law]  SUBDIVISION  TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said
preparations, compounds, mixtures or  substances  are  of  an  aggregate
weight of one-fourth ounce or more; or
  § 11. Subdivision 10 of section 220.09 of the penal law, as amended by
chapter 537 of the laws of 1998, is amended to read as follows:
  10.  one  or  more  preparations,  compounds,  mixtures  or substances
containing concentrated cannabis as defined in [paragraph (a) of  subdi-
vision  four  of  section  thirty-three hundred two of the public health
law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE  and  said
preparations,  compounds,  mixtures  or  substances  are of an aggregate
weight of one ounce or more; or
  § 12. Subdivision 3 of section 220.34 of the penal law, as amended  by
chapter 537 of the laws of 1998, is amended to read as follows:
  3.  concentrated  cannabis as defined in [paragraph (a) of subdivision
four of section thirty-three hundred  two  of  the  public  health  law]
SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or
  §  13.  Section  220.50 of the penal law, as amended by chapter 627 of
the laws of 1990, is amended to read as follows:
§ 220.50 Criminally using drug paraphernalia in the second degree.
  A person is guilty of  criminally  using  drug  paraphernalia  in  the
second degree when he knowingly possesses or sells:
  1.  Diluents,  dilutants or adulterants, including but not limited to,
any of the following: quinine hydrochloride, mannitol, mannite,  lactose
or  dextrose,  adapted  for the dilution of narcotic drugs or stimulants
under circumstances evincing an intent to use,  or  under  circumstances
evincing  knowledge  that  some  person  intends  to  use,  the same for
purposes of unlawfully mixing, compounding, or otherwise  preparing  any
narcotic  drug or stimulant, OTHER THAN MARIHUANA OR CONCENTRATED CANNA-
BIS; or
  2. Gelatine capsules, glassine envelopes, vials, capsules or any other
material suitable for the packaging of individual quantities of narcotic
drugs or stimulants under circumstances evincing an intent  to  use,  or
under  circumstances evincing knowledge that some person intends to use,
the same for the  purpose  of  unlawfully  manufacturing,  packaging  or
dispensing  of  any  narcotic drug or stimulant, OTHER THAN MARIHUANA OR
CONCENTRATED CANNABIS; or
  3. Scales and balances used or designed for the purpose of weighing or
measuring controlled substances, under circumstances evincing an  intent
to  use,  or  under  circumstances  evincing  knowledge that some person
intends to use, the same for purpose of unlawfully manufacturing,  pack-
aging  or dispensing of any narcotic drug or stimulant, OTHER THAN MARI-
HUANA OR CONCENTRATED CANNABIS.
  Criminally using drug paraphernalia in the second degree is a class  A
misdemeanor.

S. 3040--C                         11

  § 14.  Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35
and 221.40 of the penal law are REPEALED.
  §  15.  The penal law is amended by adding two new sections 221.05 and
221.05-a to read as follows:
§ 221.05 PERSONAL USE OF MARIHUANA.
  1. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE  FOLLOWING
ACTS  ARE  LAWFUL UNDER STATE AND LOCAL LAW FOR PERSONS TWENTY-ONE YEARS
OF AGE AND OLDER:
  (A) POSSESSING, USING, BEING UNDER THE INFLUENCE, DISPLAYING, PURCHAS-
ING, OBTAINING, OR TRANSPORTING UP TO TWO POUNDS OF MARIHUANA  AND  FOUR
AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS;
  (B)  TRANSFERRING,  WITHOUT REMUNERATION, TO A PERSON TWENTY-ONE YEARS
OF AGE AND OLDER UP TO TWO POUNDS OF MARIHUANA  AND  FOUR  AND  ONE-HALF
OUNCES OF CONCENTRATED CANNABIS;
  (C)  POSSESSING, PLANTING, CULTIVATING, HARVESTING, DRYING, PROCESSING
OR TRANSPORTING NOT MORE THAN SIX LIVING MARIHUANA PLANTS AND POSSESSING
THE MARIHUANA AND CONCENTRATED CANNABIS PRODUCED BY THE PLANTS;
  (D) SMOKING, INGESTING OR OTHERWISE CONSUMING MARIHUANA PRODUCTS;
  (E) POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING,  MANUFACTUR-
ING,  TRANSPORTING OR GIVING AWAY TO PERSONS TWENTY-ONE YEARS OF AGE AND
OLDER MARIHUANA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND
  (F) ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE AND  OLDER
OR  ALLOW PROPERTY TO BE USED IN ANY OF THE ACTS DESCRIBED IN PARAGRAPHS
(A) THROUGH (E) OF THIS SUBDIVISION.
  2. PARAGRAPH (E) OF SUBDIVISION ONE OF THIS  SECTION  IS  INTENDED  TO
MEET  THE REQUIREMENTS OF SUBSECTION (F) OF SECTION 863 OF TITLE TWENTY-
ONE OF THE UNITED STATES CODE (21 U.S.C.  §  863  (F))  BY  AUTHORIZING,
UNDER  STATE LAW, ANY PERSON IN COMPLIANCE WITH THIS SECTION TO MANUFAC-
TURE, POSSESS, OR DISTRIBUTE MARIHUANA PARAPHERNALIA.
  3. MARIHUANA PRODUCTS INVOLVED IN ANY WAY WITH CONDUCT  DEEMED  LAWFUL
BY  THIS SECTION ARE NOT CONTRABAND NOR SUBJECT TO SEIZURE OR FORFEITURE
OF ASSETS UNDER ARTICLE FOUR HUNDRED EIGHTY  OF  THIS  CHAPTER,  SECTION
THIRTEEN  HUNDRED  ELEVEN  OF THE CIVIL PRACTICE LAW AND RULES, OR OTHER
APPLICABLE LAW, AND NO CONDUCT  DEEMED  LAWFUL  BY  THIS  SECTION  SHALL
CONSTITUTE  THE  BASIS  FOR  APPROACH,  SEARCH,  SEIZURE, ARREST, AND/OR
DETENTION.
  4. (A) EXCEPT AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION, NONE OF
THE FOLLOWING SHALL, INDIVIDUALLY OR IN  COMBINATION  WITH  EACH  OTHER,
CONSTITUTE REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE IN ANY
CRIMINAL PROCEEDING:
  (1) THE ODOR OF MARIHUANA OR OF BURNT MARIHUANA;
  (2)  THE  POSSESSION  OF  OR  THE SUSPICION OF POSSESSION OF MARIHUANA
PRODUCTS;
  (3)  THE  POSSESSION  OF  MULTIPLE  CONTAINERS  OF  MARIHUANA  WITHOUT
EVIDENCE  OF  MARIHUANA  QUANTITY IN EXCESS OF SIXTEEN OUNCES OR CONCEN-
TRATED CANNABIS QUANTITY IN EXCESS OF FOUR AND ONE-HALF OUNCES; OR
  (4) THE PRESENCE OF CASH OR CURRENCY CANNOT BE USED AS EVIDENCE IN ANY
CASES INVOLVING UNLICENSED SALE OF MARIHUANA.
  (B) THE POSSESSION OF NOT MORE THAN TWO POUNDS  OF  MARIHUANA  OR  NOT
MORE  THAN  FOUR  AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS CANNOT BE
USED AS EVIDENCE IN ANY CASES INVOLVING UNLICENSED SALE OF MARIHUANA.
  5. SUBDIVISION FOUR OF  THIS  SECTION  SHALL  NOT  APPLY  WHEN  A  LAW
ENFORCEMENT OFFICER IS INVESTIGATING WHETHER A PERSON IS OPERATING OR IN
PHYSICAL CONTROL OF A VEHICLE OR WATERCRAFT WHILE INTOXICATED, UNDER THE
INFLUENCE OF, OR IMPAIRED BY ALCOHOL OR A DRUG OR ANY COMBINATION THERE-

S. 3040--C                         12

OF  IN VIOLATION OF SECTION ELEVEN HUNDRED NINETY-TWO OF THE VEHICLE AND
TRAFFIC LAW.
  6. POSSESSION OF GREATER THAN TWO POUNDS OF MARIHUANA AND GREATER THAN
FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS IS A VIOLATION PUNISH-
ABLE  BY  A  FINE  OF  NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER
OFFENSE.
§ 221.05-A PERSONAL CULTIVATION OF MARIHUANA.
  1. PERSONAL CULTIVATION OF MARIHUANA UNDER PARAGRAPH (C)  OF  SUBDIVI-
SION  ONE  OF SECTION 221.05 OF THIS ARTICLE IS SUBJECT TO THE FOLLOWING
RESTRICTIONS:
  (A) A PERSON SHALL PLANT, CULTIVATE, HARVEST, DRY, OR  PROCESS  PLANTS
IN  ACCORDANCE WITH LOCAL ORDINANCES, IF ANY, ADOPTED IN ACCORDANCE WITH
SUBDIVISION TWO OF THIS SECTION;
  (B) THE LIVING PLANTS AND ANY MARIHUANA  PRODUCED  BY  THE  PLANTS  IN
EXCESS  OF TWO POUNDS ARE KEPT WITHIN THE PERSON'S PRIVATE RESIDENCE, OR
UPON THE GROUNDS OF THAT PRIVATE RESIDENCE (E.G., IN AN  OUTDOOR  GARDEN
AREA),  ARE  IN  A  LOCKED  SPACE, AND ARE NOT VISIBLE BY NORMAL UNAIDED
VISION FROM A PUBLIC PLACE; AND
  (C) NOT MORE THAN  SIX  LIVING  PLANTS  MAY  BE  PLANTED,  CULTIVATED,
HARVESTED,  DRIED,  OR  PROCESSED  WITHIN A SINGLE PRIVATE RESIDENCE, OR
UPON THE GROUNDS OF THAT PRIVATE RESIDENCE, AT ONE TIME.
  2. (A) A TOWN, CITY OR VILLAGE MAY ENACT AND ENFORCE REASONABLE  REGU-
LATIONS  TO REASONABLY REGULATE THE ACTIONS AND CONDUCT IN PARAGRAPH (C)
OF SUBDIVISION ONE OF SECTION 221.05 OF THIS ARTICLE,  PROVIDED  THAT  A
VIOLATION  OF  SUCH  A  REGULATION  IS ONLY SUBJECT TO AN INFRACTION AND
FINE.
  (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, NO  TOWN,  CITY
OR  VILLAGE  MAY COMPLETELY PROHIBIT PERSONS ENGAGING IN THE ACTIONS AND
CONDUCT UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION 221.05 OF THIS
ARTICLE.
  3. A VIOLATION OF  SUBDIVISION  ONE  OR  TWO  OF  THIS  SECTION  IS  A
VIOLATION  PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE
DOLLARS PER OFFENSE.
  § 16. Section 221.45 of the penal law, as amended by  chapter  265  of
the  laws of 1979, the opening paragraph as amended by chapter 75 of the
laws of 1995, is amended to read as follows:
§ 221.45 [Criminal] UNLICENSED sale of marihuana in the third degree.
  A person is guilty of [criminal] UNLICENSED sale of marihuana  in  the
third  degree when he knowingly and unlawfully sells [one or more prepa-
rations, compounds, mixtures or substances containing marihuana and  the
preparations,  compounds,  mixtures  or  substances  are of an aggregate
weight of more than twenty-five grams] WITH REMUNERATION NOT  MORE  THAN
TWO  POUNDS  OF  MARIHUANA  OR NOT MORE THAN FOUR AND ONE-HALF OUNCES OF
CONCENTRATED CANNABIS, NOT INCLUDING THE WEIGHT OF ANY OTHER  INGREDIENT
COMBINED  WITH  MARIHUANA  TO  PREPARE  TOPICAL OR ORAL ADMINISTRATIONS,
FOOD, DRINK, OR OTHER PRODUCT.
  [Criminal] UNLICENSED sale of marihuana in  the  third  degree  is  [a
class E felony] SUBJECT TO THE FOLLOWING:
  1. A VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWEN-
TY-FIVE DOLLARS, FOR A FIRST OFFENSE;
  2.  A  VIOLATION  PUBLISHABLE  BY  A FINE OF NOT MORE THAN TWO HUNDRED
FIFTY DOLLARS FOR A SECOND OFFENSE;
  3. A CLASS B MISDEMEANOR AND A FINE OF  NOT  MORE  THAN  FIVE  HUNDRED
DOLLARS FOR A THIRD OR SUBSEQUENT OFFENSE.

S. 3040--C                         13

  §  17.  Section  221.50 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of  the
laws of 1995, is amended to read as follows:
§ 221.50 [Criminal] UNLICENSED sale of marihuana in the second degree.
  A  person  TWENTY-ONE  YEARS  OF AGE AND OLDER is guilty of [criminal]
UNLICENSED sale of marihuana in the second degree when he knowingly  and
unlawfully  sells  one  or  more  preparations,  compounds,  mixtures or
substances  containing  marihuana  and  the   preparations,   compounds,
mixtures  or  substances  are  of  an aggregate weight of more than four
ounces, or knowingly and unlawfully  sells  one  or  more  preparations,
compounds,  mixtures  [or  substances  containing marihuana] to a person
less than [eighteen] TWENTY-ONE years of age.
  [Criminal] UNLICENSED sale of marihuana in  the  second  degree  is  a
class [D] E felony.
  §  18.  Section  221.55 of the penal law, as amended by chapter 265 of
the laws of 1979, the opening paragraph as amended by chapter 75 of  the
laws of 1995, is amended to read as follows:
§ 221.55 [Criminal] UNLICENSED sale of marihuana in the first degree.
  A  person  is guilty of [criminal] UNLICENSED sale of marihuana in the
first degree when he knowingly and unlawfully sells  TO  A  PERSON  LESS
THAN  TWENTY-ONE  YEARS  OF  AGE  one  or  more preparations, compounds,
mixtures  or  substances  containing  marihuana  and  the  preparations,
compounds,  mixtures  or  substances  are of an aggregate weight of more
than sixteen ounces.
  [Criminal] UNLICENSED sale of marihuana in the first degree is a class
[C] E felony.
  § 19. The penal law is amended by adding a new section 221.60 to  read
as follows:
§ 221.60 LICENSING OF MARIHUANA PRODUCTION AND DISTRIBUTION.
  THE  PROVISIONS  OF  THIS ARTICLE AND OF ARTICLE TWO HUNDRED TWENTY OF
THIS TITLE SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM  CRIMINAL  PENAL-
TIES  PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING, MANUFAC-
TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING MARIHUANA OR
CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI-
ANCE WITH ARTICLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW.
  § 20. Subdivision 8 of section 1399-n of the  public  health  law,  as
amended  by  chapter  13  of  the  laws  of  2003, is amended to read as
follows:
  8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
any  other  matter  or  substance  which  contains tobacco OR MARIHUANA;
PROVIDED THAT IT DOES NOT INCLUDE  THE  USE  OF  AN  ELECTRONIC  SMOKING
DEVICE  THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES
EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
  § 21. Section 2 of the alcoholic beverage control law, as  amended  by
chapter 406 of the laws of 2014, is amended to read as follows:
  §  2. Policy of state and purpose of chapter. It is hereby declared as
the policy of the state that it is necessary to regulate and control the
manufacture, sale and distribution within the state of alcoholic  bever-
ages  AND  MARIHUANA PRODUCTS for the purpose of fostering and promoting
temperance in their consumption and respect for and  obedience  to  law;
for  the  primary purpose of promoting the health, welfare and safety of
the people of the state, promoting  temperance  in  the  consumption  of
alcoholic beverages AND MARIHUANA PRODUCTS; and, to the extent possible,
supporting  economic  growth, job development, and the state's alcoholic
beverage production industries, MARIHUANA PRODUCTION INDUSTRIES and  its
tourism and recreation industry; and which promotes the conservation and

S. 3040--C                         14

enhancement  of  state agricultural lands; provided that such activities
do not conflict with the primary regulatory objectives of this  chapter.
It  is  hereby  declared  that such policies will best be carried out by
empowering the liquor authority of the state to determine whether public
convenience  and  advantage will be promoted by the issuance of licenses
to traffic in alcoholic beverages AND MARIHUANA PRODUCTS,  the  increase
or  decrease in the number thereof and the location of premises licensed
thereby, subject only to the right of judicial review  provided  for  in
this chapter. It is the purpose of this chapter to carry out these poli-
cies in the public interest.
  § 22. Subdivisions 20-a, 20-b, 20-c, 20-d and 20-e of section 3 of the
alcoholic  beverage  control law are renumbered subdivisions 20-j, 20-k,
20-l, 20-m and 20-n and ten new  subdivisions  7-e,  20-a,  20-b,  20-c,
20-d, 20-e, 20-f, 20-g, 20-h and 20-i are added to read as follows:
  7-E.  "CONCENTRATED  CANNABIS" MEANS: (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR
  (B) A MATERIAL, PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE
WHICH  CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDRO-
CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
NUMBERING SYSTEM.
  20-A. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF THE GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
(EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT  DOES
NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  20-B. "MARIHUANA CONSUMER" MEANS A PERSON TWENTY-ONE YEARS OF  AGE  OR
OLDER  WHO PURCHASES MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE BY
PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
  20-C. "MARIHUANA PROCESSOR" MEANS A PERSON LICENSED BY THE  BUREAU  TO
PURCHASE  MARIHUANA  AND CONCENTRATED CANNABIS FROM MARIHUANA PRODUCERS,
TO PROCESS  MARIHUANA,  CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED
PRODUCTS,  PACKAGE  AND LABEL MARIHUANA, CONCENTRATED CANNABIS AND MARI-
HUANA INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND  SELL  MARIHUANA,
CONCENTRATED  CANNABIS  AND  MARIHUANA  INFUSED PRODUCTS AT WHOLESALE TO
MARIHUANA RETAILERS.
  20-D. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY  THE  BUREAU  TO
PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED CANNABIS AT WHOLE-
SALE  TO  MARIHUANA  PROCESSORS, MARIHUANA RETAILERS, OR OTHER MARIHUANA
PRODUCERS, BUT NOT TO CONSUMERS.
  20-E. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  20-F. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT  CONTAIN  MARI-
HUANA,  OR  CONCENTRATED  CANNABIS  AND  ARE  INTENDED  FOR HUMAN USE OR
CONSUMPTION, SUCH AS, BUT NOT LIMITED TO,  EDIBLE  PRODUCTS,  OINTMENTS,
AND TINCTURES.
  20-G.  "MARIHUANA  RETAILER"  MEANS A PERSON LICENSED BY THE BUREAU TO
PURCHASE  MARIHUANA,  CONCENTRATED   CANNABIS,   AND   MARIHUANA-INFUSED
PRODUCTS  FROM  MARIHUANA  PRODUCERS  AND  MARIHUANA PROCESSORS AND SELL

S. 3040--C                         15

MARIHUANA, MARIHUANA INFUSED PRODUCTS, AND CONCENTRATED  CANNABIS  IN  A
RETAIL OUTLET.
  20-H.  "MARIHUANA RETAILER FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
LICENSED BY THE BUREAU TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA INFUSED PRODUCTS FROM MARIHUANA PRODUCERS,  MARIHUANA  RETAIL-
ERS, AND MARIHUANA PROCESSORS AND SELL MARIHUANA PRODUCTS FOR A CUSTOMER
TO CONSUME WHILE THE CUSTOMER IS WITHIN A FACILITY.
  20-I.  "UNREASONABLY  IMPRACTICABLE" MEANS THAT THE MEASURES NECESSARY
TO COMPLY WITH THE REGULATIONS REQUIRE SUCH A HIGH INVESTMENT  OF  RISK,
MONEY, TIME OR OTHER RESOURCE OR ASSET THAT THE OPERATION OF A MARIHUANA
ESTABLISHMENT IS NOT WORTHY OF BEING CARRIED OUT BY A REASONABLY PRUDENT
BUSINESSPERSON.
  §  23.  Section 65-b of the alcoholic beverage control law, as amended
by chapter 519 of the laws of 1999, paragraphs (b) and (c)  of  subdivi-
sion  3  as  amended  by chapter 257 of the laws of 2013 and the opening
paragraph of subdivision 6 as amended by chapter  503  of  the  laws  of
2000, is amended to read as follows:
  §  65-b.  Offense for one under age of twenty-one years to purchase or
attempt to purchase an alcoholic beverage OR MARIHUANA PRODUCTS  through
fraudulent  means. 1.  As used in this section: (a) "A device capable of
deciphering any electronically readable format" or "device"  shall  mean
any  commercial device or combination of devices used at a point of sale
or entry that is capable of  reading  the  information  encoded  on  the
magnetic strip or bar code of a driver's license or non-driver identifi-
cation card issued by the commissioner of motor vehicles;
  (b)  "Card  holder"  means any person presenting a driver's license or
non-driver identification card to a licensee, or to the agent or employ-
ee of such licensee under this chapter; and
  (c) "Transaction scan" means the process involving a device capable of
deciphering any electronically readable format by which a  licensee,  or
agent  or  employee  of a licensee under this chapter reviews a driver's
license or non-driver identification card presented  as  a  precondition
for  the  purchase  of  an  alcoholic  beverage OR MARIHUANA PRODUCTS as
required by subdivision two of this section or  as  a  precondition  for
admission to an establishment licensed for the on-premises sale of alco-
holic  beverages  OR MARIHUANA PRODUCTS where admission is restricted to
persons twenty-one years or older.
  2. (a) No person under the age of twenty-one years  shall  present  or
offer to any licensee under this chapter, or to the agent or employee of
such licensee, any written evidence of age which is false, fraudulent or
not actually his OR HER own, for the purpose of purchasing or attempting
to purchase any alcoholic beverage OR MARIHUANA PRODUCTS.
  (b) No licensee, or agent or employee of such licensee shall accept as
written evidence of age by any such person for the purchase of any alco-
holic  beverage OR MARIHUANA PRODUCTS, any documentation other than: (i)
a valid driver's license or non-driver identification card issued by the
commissioner of motor  vehicles,  the  federal  government,  any  United
States  territory, commonwealth or possession, the District of Columbia,
a state government within the United States or a  provincial  government
of the dominion of Canada, or (ii) a valid passport issued by the United
States  government or any other country, or (iii) an identification card
issued by the armed forces of the United States. Upon  the  presentation
of  such  driver's license or non-driver identification card issued by a
governmental entity, such licensee or  agent  or  employee  thereof  may
perform a transaction scan as a precondition to the sale of any alcohol-
ic  beverage. Nothing in this section shall prohibit a licensee or agent

S. 3040--C                         16

or employee from performing such a transaction scan on any of the  other
documents  listed  in  this  subdivision if such documents include a bar
code or magnetic strip that [that] may be scanned by a device capable of
deciphering any electronically readable format.
  (c)  In  instances where the information deciphered by the transaction
scan fails to match the information printed on the driver's  license  or
non-driver  identification  card presented by the card holder, or if the
transaction scan indicates that the information is false or  fraudulent,
the  attempted  purchase of the alcoholic beverage OR MARIHUANA PRODUCTS
shall be denied.
  3. A person violating the provisions of paragraph (a)  of  subdivision
two  of  this  section  shall  be  guilty  of  a  violation and shall be
sentenced in accordance with the following:
  (a) For a first violation, the court shall order payment of a fine  of
not more than one hundred dollars and/or an appropriate amount of commu-
nity  service  not  to  exceed  thirty hours. In addition, the court may
order completion of an alcohol awareness program established pursuant to
section 19.25 of the mental hygiene law  OR  OF  A  MARIHUANA  AWARENESS
PROGRAM.
  (b) For a second violation, the court shall order payment of a fine of
not  less  than  fifty dollars nor more than three hundred fifty dollars
and/or an appropriate amount of community service not  to  exceed  sixty
hours.  The court also shall order completion of an alcohol OR MARIHUANA
awareness program as referenced in paragraph (a) of this subdivision  if
such  program  has not previously been completed by the offender, unless
the court determines that attendance at such program is not feasible due
to the lack of availability of such program within  a  reasonably  close
proximity to the locality in which the offender resides or matriculates,
as appropriate.
  (c) For third and subsequent violations, the court shall order payment
of  a  fine  of  not less than fifty dollars nor more than seven hundred
fifty dollars and/or an appropriate amount of community service  not  to
exceed  ninety hours. The court also shall order that such person submit
to an evaluation by an appropriate agency certified or licensed  by  the
office  of  alcoholism and substance abuse services to determine whether
the person suffers from [the disease of alcoholism or]  alcohol  [abuse]
USE  DISORDER OR CANNABIS USE DISORDER, unless the court determines that
under the circumstances presented such an evaluation is  not  necessary,
in  which  case  the  court shall state on the record the basis for such
determination. Payment for such evaluation shall be made by such person.
If, based on such evaluation, a need for treatment  is  indicated,  such
person  may  choose  to  participate in a treatment plan developed by an
agency certified or licensed by the office of alcoholism  and  substance
abuse  services.  If  such  person  elects to participate in recommended
treatment, the court shall order that payment of such fine and community
service be suspended pending the completion of such treatment.
  (d) Evaluation procedures.  For  purposes  of  this  subdivision,  the
following shall apply:
  (i)  The  contents  of an evaluation pursuant to paragraph (c) of this
subdivision shall be used for the sole purpose of [determining  if  such
person  suffers  from the disease of alcoholism or alcohol abuse] DETER-
MINING IF SUCH PERSON MEETS THE CRITERIA FOR AN ALCOHOL USE DISORDER  OR
CANNABIS USE DISORDER.
  (ii)  The  agency  designated  by the court to perform such evaluation
shall conduct the evaluation and return the results to the court  within
thirty  days,  subject to any state or federal confidentiality law, rule

S. 3040--C                         17

or regulation governing the confidentiality  of  alcohol  and  substance
[abuse] USE DISORDER treatment records.
  (iii) The office of alcoholism and substance abuse services shall make
available  to  each  supreme  court law library in this state, or, if no
supreme court law library is available in a certain county, to the coun-
ty court law library of such county, a list  of  agencies  certified  to
perform  evaluations  as required by subdivision (f) of section 19.07 of
the mental hygiene law.
  (iv) All evaluations required under this subdivision shall be in writ-
ing and the person so evaluated or his or her counsel  shall  receive  a
copy of such evaluation prior to its use by the court.
  (v)  A minor evaluated under this subdivision shall have, and shall be
informed by the court of, the right to obtain a second opinion regarding
his or her need for  [alcoholism]  treatment  OF  AN  ALCOHOL  OR  OTHER
SUBSTANCE USE DISORDER.
  4.  A  person violating the provisions of paragraph (b) of subdivision
two of this section shall be guilty of a violation punishable by a  fine
of  not  more  than one hundred dollars, and/or an appropriate amount of
community service not to exceed thirty hours. In addition, the court may
order completion of an alcohol OR SUBSTANCE USE DISORDER training aware-
ness program established  pursuant  to  subdivision  twelve  of  section
seventeen of this chapter where such program is located within a reason-
ably  close  proximity to the locality in which the offender is employed
or resides.
  5. No determination of guilt pursuant to this section shall operate as
a disqualification of  any  such  person  subsequently  to  hold  public
office,  public employment, or as a forfeiture of any right or privilege
or to receive any license granted  by  public  authority;  and  no  such
person shall be denominated a criminal by reason of such determination.
  6.  In  addition  to  the  penalties otherwise provided in subdivision
three of this section, if a determination is made sustaining a charge of
illegally purchasing or attempting to illegally  purchase  an  alcoholic
beverage  OR  MARIHUANA  PRODUCTS,  the  court may suspend such person's
license to drive a motor vehicle and  the  privilege  of  an  unlicensed
person  of  obtaining such license, in accordance with the following and
for the following periods, if it is found that a  driver's  license  was
used  for  the  purpose of such illegal purchase or attempt to illegally
purchase; provided, however, that where a person is  sentenced  pursuant
to  paragraph (b) or (c) of subdivision three of this section, the court
shall impose such license suspension if it  is  found  that  a  driver's
license  was used for the purpose of such illegal purchase or attempt to
illegally purchase:
  (a) For a first violation of paragraph (a) of subdivision two of  this
section, a three month suspension.
  (b) For a second violation of paragraph (a) of subdivision two of this
section, a six month suspension.
  (c)  For  a third or subsequent violation of paragraph (a) of subdivi-
sion two of this section, a suspension for one year or until the  holder
reaches the age of twenty-one, whichever is the greater period of time.
  Such  person  may  thereafter apply for and be issued a restricted use
license in accordance with the provisions of section five hundred thirty
of the vehicle and traffic law.
  7. (a) In any  proceeding  pursuant  to  subdivision  one  of  section
sixty-five of this article, it shall be an affirmative defense that such
person had produced a driver's license or non-driver identification card
apparently  issued  by a governmental entity, successfully completed the

S. 3040--C                         18

transaction scan, and that the alcoholic beverage OR MARIHUANA  PRODUCTS
had  been sold, delivered or given to such person in reasonable reliance
upon such identification and transaction scan. In evaluating the  appli-
cability  of  such  affirmative defense, the liquor authority shall take
into consideration any written policy adopted  and  implemented  by  the
seller to carry out the provisions of this chapter. Use of a transaction
scan  shall  not  excuse  any  licensee  under this chapter, or agent or
employee of such licensee, from the  exercise  of  reasonable  diligence
otherwise   required   by   this   section.  Notwithstanding  the  above
provisions, any such affirmative defense shall not be applicable in  any
other civil or criminal proceeding, or in any other forum.
  (b)  A  licensee or agent or employee of a licensee may electronically
or mechanically record and maintain only the information from  a  trans-
action  scan  necessary to effectuate the purposes of this section. Such
information shall be limited to the following: (i) name,  (ii)  date  of
birth,  (iii)  driver's license or non-driver identification number, and
(iv) expiration date. The liquor authority and the state commissioner of
motor vehicles shall jointly  promulgate  any  regulation  necessary  to
govern  the  recording  and  maintenance  of these records by a licensee
under this chapter. The liquor authority and the commissioner of  health
shall  jointly  promulgate  any  regulations necessary to ensure quality
control in the use of transaction scan devices.
  8. A licensee or agent or employee of such licensee shall only use the
information recorded and maintained through the use of such devices  for
the  purposes  contained  in  paragraph (a) of subdivision seven of this
section, and shall only use such devices for the purposes  contained  in
subdivision  two  of this section. No licensee or agent or employee of a
licensee shall resell or disseminate  the  information  recorded  during
such  scan  to any third person. Such prohibited resale or dissemination
includes, but is not limited to, any advertising,  marketing  or  promo-
tional  activities.  Notwithstanding  the  restrictions  imposed by this
subdivision, such records may be released pursuant to  a  court  ordered
subpoena  or  pursuant to any other statute that specifically authorizes
the release of such information.  Each  violation  of  this  subdivision
shall  be  punishable  by  a civil penalty of not more than one thousand
dollars.
  § 24. Section 65-c of the alcoholic beverage control law, as added  by
chapter  592  of  the  laws  of  1989, paragraph (a) of subdivision 2 as
amended by chapter 409 of the laws of 2016 and subdivision 3 as  amended
by chapter 137 of the laws of 2001, is amended to read as follows:
  § 65-c. Unlawful  possession  of  an  alcoholic  beverage OR MARIHUANA
PRODUCT with the intent to consume by persons under the age  of  twenty-
one years. 1. Except as hereinafter provided, no person under the age of
twenty-one years shall possess any alcoholic beverage OR MARIHUANA PROD-
UCT,  as defined in this chapter, with the intent to consume such bever-
age OR MARIHUANA PRODUCT.
  2. A person under the age of twenty-one years may possess any alcohol-
ic beverage OR MARIHUANA PRODUCT with intent to consume if the alcoholic
beverage OR MARIHUANA PRODUCT is given:
  (a) to a person who is a student in a curriculum  licensed  or  regis-
tered  by  the state education department and the student is required to
taste or imbibe alcoholic beverages OR MARIHUANA PRODUCTS  in  on-campus
or  off-campus  courses  which  are  a  part of the required curriculum,
provided such alcoholic beverages OR MARIHUANA PRODUCTS  are  used  only
for  instructional  purposes  during  class  conducted  pursuant to such
curriculum; or

S. 3040--C                         19

  (b) to the person under twenty-one  years  of  age  by  that  person's
parent or guardian.
  3.  Any person who unlawfully possesses an alcoholic beverage OR MARI-
HUANA PRODUCT with intent to consume may be summoned before and examined
by a court having jurisdiction of that charge; provided,  however,  that
nothing  contained herein shall authorize, or be construed to authorize,
a peace officer as defined in subdivision thirty-three of  section  1.20
of the criminal procedure law or a police officer as defined in subdivi-
sion  thirty-four  of  section  1.20  of such law to arrest a person who
unlawfully possesses an alcoholic beverage  OR  MARIHUANA  PRODUCT  with
intent to consume. If a determination is made sustaining such charge the
court may impose a fine not exceeding fifty dollars and/or completion of
an  alcohol  OR  DRUG  awareness program established pursuant to section
19.25 of the mental hygiene law and/or an appropriate amount of communi-
ty service not to exceed thirty hours.
  4. No such determination shall operate as a  disqualification  of  any
such person subsequently to hold public office, public employment, or as
a forfeiture of any right or privilege or to receive any license granted
by  public authority; and no such person shall be denominated a criminal
by reason of such determination, nor shall such determination be  deemed
a conviction.
  5.  Whenever a peace officer as defined in subdivision thirty-three of
section 1.20 of the criminal procedure law or police officer as  defined
in subdivision thirty-four of section 1.20 of the criminal procedure law
shall  observe  a  person  under  twenty-one  years  of  age  openly  in
possession of an alcoholic beverage OR MARIHUANA PRODUCT as  defined  in
this  chapter,  with  the  intent to consume such beverage OR PRODUCT in
violation of this section, said officer may seize the beverage OR  PROD-
UCT, and shall deliver it to the custody of his or her department.
  6.  Any alcoholic beverage OR MARIHUANA PRODUCT seized in violation of
this section is hereby declared a nuisance. The  official  to  whom  the
beverage OR PRODUCT has been delivered shall, no earlier than three days
following the return date for initial appearance on the summons, dispose
of  or  destroy  the  alcoholic  beverage OR MARIHUANA PRODUCT seized or
cause it to be disposed of or destroyed.  Any person claiming  ownership
of  an alcoholic beverage OR MARIHUANA PRODUCT seized under this section
may, on the initial return date of the summons or earlier on  five  days
notice  to  the  official or department in possession of the beverage OR
PRODUCT, apply to the court for an order preventing the  destruction  or
disposal  of  the  alcoholic  beverage  OR  MARIHUANA PRODUCT seized and
ordering the return of that beverage OR PRODUCT.   The court  may  order
the  beverage OR PRODUCT returned if it is determined that return of the
beverage OR PRODUCT would be in the interest  of  justice  or  that  the
beverage OR PRODUCT was improperly seized.
  §  25.  The  alcoholic beverage control law is amended by adding a new
section 65-e to read as follows:
  § 65-E. RESTRICTIONS ON PERSONAL CONSUMPTION OF MARIHUANA. 1.  NOTHING
IN SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW SHALL BE  CONSTRUED  TO
PERMIT ANY PERSON TO:
  (A) SMOKE MARIHUANA IN PUBLIC;
  (B)  SMOKE  MARIHUANA  PRODUCTS IN A LOCATION WHERE SMOKING TOBACCO IS
PROHIBITED PURSUANT TO SECTION THIRTEEN  HUNDRED  NINETY-NINE-O  OF  THE
PUBLIC HEALTH LAW;
  (C) POSSESS, SMOKE OR INGEST MARIHUANA PRODUCTS IN OR UPON THE GROUNDS
OF  ANY  SCHOOL  PROPERTY  USED FOR SCHOOL PURPOSES WHICH IS OWNED BY OR

S. 3040--C                         20

LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE CHIL-
DREN ARE PRESENT; OR
  (D)  SMOKE  OR  INGEST  MARIHUANA  PRODUCTS WHILE DRIVING, OPERATING A
MOTOR VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR  TRANS-
PORTATION.
  2. FOR PURPOSES OF THIS SECTION:
  (A)  "SMOKE"  MEANS  TO  INHALE, EXHALE, BURN, OR CARRY ANY LIGHTED OR
HEATED DEVICE OR PIPE, OR ANY  OTHER  LIGHTED  OR  HEATED  MARIHUANA  OR
CONCENTRATED  CANNABIS  PRODUCT INTENDED FOR INHALATION, WHETHER NATURAL
OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.
  (B) "SMOKE" DOES NOT INCLUDE THE USE OF AN ELECTRONIC  SMOKING  DEVICE
THAT  CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES EXTEND
PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES.
  3. VIOLATIONS OF THE RESTRICTIONS UNDER THIS SECTION ARE SUBJECT TO  A
FINE  NOT  EXCEEDING  TWENTY-FIVE  DOLLARS  OR  AN APPROPRIATE AMOUNT OF
COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
  § 26. Section 140 of the alcoholic beverage control law, as amended by
chapter 810 of the laws of 1981, is amended to read as follows:
  § 140. Applicability of chapter before local option.  Until such  time
as  it  shall  become  unlawful to sell alcoholic beverages OR MARIHUANA
PRODUCTS in any town or city by the vote of the voters in such  town  or
city  in  the  manner provided in this article, all of the provisions of
this chapter shall apply throughout the entire state. This article shall
not apply to the Whiteface mountain ski center, owned by the  state  and
located in the town of Wilmington, county of Essex.
  § 27. Section 141 of the alcoholic beverage control law, as amended by
chapter 319 of the laws of 2007, is amended to read as follows:
  §  141.  Local  option for towns. 1. Not less than sixty days nor more
than seventy-five days before the general election in any town at  which
the submission of the questions hereinafter stated is authorized by this
article, a petition signed by electors of the town to a number amounting
to  twenty-five per centum of the votes cast in the town for governor at
the then last preceding  gubernatorial  election,  acknowledged  by  the
signers or authenticated by witnesses as provided in the election law in
respect  of  a  nominating  petition,  requesting the submission at such
election to the electors of the town of one or  more  of  the  following
questions, may be filed with the town clerk:
  Question  1.  Tavern  alcoholic  beverage  license.  Shall a person be
allowed to obtain a license to operate a tavern with  a  limited-service
menu (sandwiches, salads, soups, etc.) which permits the tavern operator
to  sell  alcoholic beverages for a customer to drink while the customer
is within the tavern. In addition, unopened containers of beer (such  as
six-packs  and  kegs)  may  be sold "to go" for the customer to open and
drink at another location (such as, for example, at his home)?
  Question 2. Restaurant alcoholic beverage license. Shall the  operator
of  a  full-service  restaurant  be  allowed  to  obtain a license which
permits the restaurant  operator  to  sell  alcoholic  beverages  for  a
customer  to drink while the customer is within the restaurant. In addi-
tion, unopened containers of beer (such as six-packs and  kegs)  may  be
sold  "to  go"  for  the  customer to open and drink at another location
(such as, for example, at his home)?
  Question 3. Year-round hotel alcoholic  beverage  license.  Shall  the
operator of a year-round hotel with a full-service restaurant be allowed
to obtain a license which permits the year-round hotel to sell alcoholic
beverages  for  a  customer  to  drink  while the customer is within the
hotel. In addition, unopened containers of beer (such as  six-packs  and

S. 3040--C                         21

kegs)  may be sold "to go" for the customer to open and drink at another
location (such as, for example, at his home)?
  Question  4. Summer hotel alcoholic beverage license. Shall the opera-
tor of a summer hotel with a full-service restaurant, open for  business
only  within  the  period from May first to October thirty-first in each
year, be allowed to obtain a license which permits the summer  hotel  to
sell  alcoholic  beverages for a customer to drink while the customer is
within the hotel. In addition, unopened  containers  of  beer  (such  as
six-packs  and  kegs)  may  be sold "to go" for the customer to open and
drink at another location (such as, for example, at his home)?
  Question 5. Retail package liquor  or  wine  store  license.  Shall  a
person  be  allowed  to  obtain  a  license  to operate a retail package
liquor-and-wine or wine-without-liquor store, to sell "to  go"  unopened
bottles  of  liquor or wine to a customer to be taken from the store for
the customer to open and drink at another location (such as,  for  exam-
ple, at his home)?
  Question 6. Off-premises beer and wine cooler license. Shall the oper-
ator  of  a  grocery  store,  drugstore  or supply ship operating in the
harbors of Lake Erie be allowed to obtain a license  which  permits  the
operator  to sell "to go" unopened containers of beer (such as six-packs
and kegs) and wine coolers with not more than 6% alcohol to  a  customer
to be taken from the store for the customer to open and drink at another
location (such as, for example, at his home)?
  Question  7.  Baseball  park,  racetrack,  athletic  field  or stadium
license.  Shall a person be allowed to obtain a  license  which  permits
the sale of beer for a patron's consumption while the patron is within a
baseball  park,  racetrack,  or  other  athletic  field or stadium where
admission fees are charged?
  QUESTION 8. MARIHUANA RETAILER LICENSE. SHALL A PERSON BE  ALLOWED  TO
OBTAIN  A  LICENSE TO OPERATE A RETAIL MARIHUANA STORE, TO SELL UNOPENED
MARIHUANA PRODUCTS TO A CUSTOMER TO BE TAKEN  FROM  THE  STORE  FOR  THE
CUSTOMER  TO OPEN AND CONSUME AT ANOTHER LOCATION (SUCH AS, FOR EXAMPLE,
AT HIS HOME)?
  QUESTION 9. ON-PREMISES MARIHUANA RETAILER LICENSES. SHALL A PERSON BE
ALLOWED TO OBTAIN A LICENSE TO OPERATE A FACILITY WHERE THE  SERVICE  OF
FOOD  IS ONLY INCIDENTAL AND PERMITS THE FACILITY OPERATOR TO SELL MARI-
HUANA PRODUCTS FOR A CUSTOMER TO CONSUME WHILE THE  CUSTOMER  IS  WITHIN
THE FACILITY?
  2.  Upon  the due filing of such petition complying with the foregoing
provisions, such questions shall be submitted in accordance therewith.
  3. The town clerk shall, within five days  from  the  filing  of  such
petition  in  his office, prepare and file in the office of the board of
elections, as defined by the election law, of the  county,  a  certified
copy  of such petition. Such questions may be submitted only at the time
of a general election. At least ten days before such  general  election,
the  board of elections shall cause to be printed and posted in at least
four public places in such town, a notice of the fact that  all  of  the
local  option  questions  will be voted on at such general election; and
the said notice shall also be published at least five  days  before  the
vote is to be taken once in a newspaper published in the county in which
such town is situated, which shall be a newspaper published in the town,
if  there  be one. Whenever such questions are to be submitted under the
provisions of this article the board of elections shall cause the proper
ballot labels to be printed and placed on all voting  machines  used  in
the  town  in  which  such  questions  are  to be submitted, in the form
prescribed by the election law in respect of other propositions or ques-

S. 3040--C                         22

tions, upon the face of which shall be printed in full  the  said  ques-
tions.  Any  elector qualified to vote for state officers shall be enti-
tled to vote upon such local option questions. As soon as  the  election
shall  be  held, a return of the votes cast and counted shall be made as
provided by law and the returns canvassed by the inspectors of election.
If a majority of the votes cast shall be in the negative on all  or  any
of  the  questions, no person shall, after such election, sell alcoholic
beverages OR MARIHUANA PRODUCTS in such town contrary to such vote or to
the provisions of this chapter; provided, however, that  the  result  of
such vote shall not shorten the term for which any license may have been
lawfully  issued under this chapter or affect the rights of the licensee
thereunder; and no person shall after such vote apply for or  receive  a
license  to  sell alcoholic beverages OR MARIHUANA PRODUCTS at retail in
such town contrary to such vote, until,  by  referendum  as  hereinafter
provided for, such sale shall again become lawful.
  §  28.  Subdivision 3 of section 142 of the alcoholic beverage control
law is amended to read as follows:
  3. If a majority of the votes cast shall be in the negative on any  or
all  of  the questions, no person shall, after such election, sell alco-
holic beverages OR MARIHUANA PRODUCTS in such city contrary to such vote
or to the provisions of this chapter; provided, however, that the result
of such vote shall not shorten the term for which any license  may  have
been  lawfully  issued  under  this  chapter or affect the rights of the
licensee thereunder; and no person shall after such vote  apply  for  or
receive  a  license to sell alcoholic beverages OR MARIHUANA PRODUCTS at
retail in such city contrary to such vote, until, by referendum as here-
inafter provided for, such sale shall again become lawful.
  § 29. Subdivision 2 of section 147 of the alcoholic  beverage  control
law is amended to read as follows:
  2.  If  at  the time of any subsequent submission of such questions it
shall be lawful to sell alcoholic beverages OR MARIHUANA PRODUCTS and  a
majority  of  the votes cast shall be in the negative on such questions,
then all of the provisions of  this  article  applicable  thereto  shall
become effective.
  §  30. Article 11 and sections 160, 161, 162, 163 and 164 of the alco-
holic beverage control law, article 11 and sections 160,  161,  162  and
163  as  renumbered  by  chapter 725 of the laws of 1954, are renumbered
article 12 and sections 200, 201, 202, 203, and 204.
  § 31. The alcoholic beverage control law is amended by  adding  a  new
article 11 to read as follows:
                               ARTICLE 11
                    PROVISIONS RELATING TO MARIHUANA
SECTION 165. DEFINITIONS.
        166. BUREAU OF MARIHUANA POLICY.
        167. ADMINISTRATION OF THE BUREAU OF MARIHUANA POLICY.
        168. AUTHORITY TO PROMULGATE RULES AND REGULATIONS.
        169. LICENSES ISSUED.
        170. LICENSING LIMITS.
        171. ACTIONS TAKEN PURSUANT TO A VALID LICENSE ARE LAWFUL.
        172. GENERAL PROHIBITIONS AND RESTRICTIONS.
        173. CERTAIN  OFFICIALS  NOT TO BE INTERESTED IN THE MANUFACTURE
               OR SALE OF MARIHUANA.
        174. PROVISIONS GOVERNING INITIAL RULEMAKING.
        175. PROVISIONS GOVERNING MARIHUANA PRODUCERS.
        176. PROVISIONS GOVERNING PROCESSORS.
        177. PROVISIONS GOVERNING MARIHUANA RETAILERS.

S. 3040--C                         23

        178. PROVISIONS   GOVERNING   MARIHUANA   ON-SITE    CONSUMPTION
               LICENSES.
        179. ADVERTISING AND FORMS FOR THE ISSUANCE OF LICENSES.
        180. PACKAGING OF MARIHUANA PRODUCTS.
        181. LABELING OF MARIHUANA PRODUCTS.
        182. SEED TO SALE TRACKING.
        183. RENEWALS OF LICENSES AND PERMITS.
        184. INFORMATION TO BE PROVIDED BY APPLICANTS.
        185. NOTIFICATION TO TOWNS, CITIES OR VILLAGES.
        186. LICENSES, PUBLICATION, GENERAL PROVISIONS.
        187. REVOCATION OF LICENSES FOR CAUSE.
        188. PROCEDURE FOR REVOCATION OR CANCELLATION.
        189. DECISIONS  OF  THE BUREAU OF MARIHUANA POLICY AND REVIEW BY
               THE COURTS.
        190. MINORITY AND WOMEN-OWNED BUSINESSES AND INCUBATOR PROGRAM.
        191. DISPOSITION OF MONEYS RECEIVED FOR LICENSE FEES.
        192. PERSONS FORBIDDEN TO TRAFFIC IN MARIHUANA.
        193. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS.
        194. PROTECTIONS FOR THE USE OF MARIHUANA.
        195. DISCRIMINATION PROTECTIONS FOR  THE  USE  OF  MARIHUANA  OR
               MEDICAL MARIHUANA.
        196. EMPLOYMENT PROTECTIONS.
        197. PROTECTIONS FOR PERSONS UNDER STATE SUPERVISION.
        198. PROFESSIONAL AND MEDICAL RECORD KEEPING.
  §  165. DEFINITIONS. WHENEVER USED IN THIS CHAPTER, UNLESS THE CONTEXT
REQUIRES OTHERWISE:
  1. "APPLICANT" MEANS AN OWNER APPLYING FOR A LICENSE PURSUANT TO  THIS
ARTICLE.
  2."BUREAU" MEANS THE BUREAU OF MARIHUANA POLICY WITHIN THE AUTHORITY.
  3.  "COMMERCIAL  MARIHUANA ACTIVITY" MEANS THE PRODUCTION, PROCESSING,
POSSESSION, STORING, LABORATORY TESTING, PACKAGING, LABELING,  TRANSPOR-
TATION,  DELIVERY,  OR  SALE  OF  MARIHUANA  AND  MARIHUANA  PRODUCTS AS
PROVIDED FOR IN THIS ARTICLE.
  4. "CUSTOMER" MEANS A NATURAL PERSON TWENTY-ONE YEARS OF AGE OR OLDER.
  5. "DELIVERY" MEANS A LICENSEE  THAT  DELIVERS  RETAIL  MARIHUANA  AND
MARIHUANA  PRODUCTS  TO  CUSTOMERS. RETAILER LICENSEES AND MICROBUSINESS
LICENSEES ARE  PERMITTED  TO  DELIVER  RETAIL  MARIHUANA  AND  MARIHUANA
PRODUCTS  TO  CUSTOMERS  WITHOUT  OBTAINING  AN  ADDITIONAL  DISTRIBUTOR
LICENSE.
  6. "DISTRIBUTION" MEANS THE PROCUREMENT, SALE, AND TRANSPORT OF  MARI-
HUANA  AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS
ARTICLE.
  7. "DISTRIBUTOR" MEANS A LICENSEE FOR THE  DISTRIBUTION  OF  MARIHUANA
AND  MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTI-
CLE.  PRODUCER LICENSEES, PROCESSOR LICENSEES, AND MICROBUSINESS  LICEN-
SEES  ARE  PERMITTED  TO  DISTRIBUTE  MARIHUANA  AND  MARIHUANA PRODUCTS
BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTICLE WITHOUT OBTAINING  AN
ADDITIONAL DISTRIBUTOR LICENSE.
  8.  "LABELING"  MEANS  ANY LABEL OR OTHER WRITTEN, PRINTED, OR GRAPHIC
MATTER UPON A MARIHUANA PRODUCT, OR UPON ITS CONTAINER  OR  WRAPPER,  OR
THAT ACCOMPANIES ANY MARIHUANA PRODUCT.
  9.  "LICENSE"  MEANS  A  STATE LICENSE ISSUED UNDER THIS ARTICLE. EACH
LICENSE ISSUED PURSUANT TO THIS ARTICLE CORRESPONDS TO A SINGLE PLACE OF
BUSINESS.
  10. "LICENSEE" MEANS ANY PERSON OR ENTITY HOLDING A LICENSE UNDER THIS
ARTICLE.

S. 3040--C                         24

  11. "MARIHUANA" MEANS ALL PARTS OF THE PLANT OF  THE  GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
(EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
STERILIZED  SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION. IT DOES
NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA I.,  WHETHER  GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  12.  "MARIHUANA  PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  13. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN  MARIHUA-
NA,  OR CONCENTRATED CANNABIS AND ARE INTENDED FOR HUMAN USE OR CONSUMP-
TION, SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINTMENTS, AND TINC-
TURES.
  14. "MICROBUSINESS" MEANS A LICENSEE  THAT  MAY  ACT  AS  A  MARIHUANA
PRODUCER FOR THE CULTIVATION OF MARIHUANA ON AN AREA LESS THAN TEN THOU-
SAND  SQUARE FEET, A MARIHUANA PROCESSOR, AND A MARIHUANA RETAILER UNDER
THIS ARTICLE, PROVIDED SUCH  LICENSEE  COMPLIES  WITH  ALL  REQUIREMENTS
IMPOSED BY THIS ARTICLE ON LICENSED PRODUCERS, PROCESSORS, AND RETAILERS
TO THE EXTENT THE LICENSEE ENGAGES IN SUCH ACTIVITIES. A "MICROBUSINESS"
MAY  DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED MARI-
HUANA BUSINESSES AND MAY DELIVER MARIHUANA  AND  MARIHUANA  PRODUCTS  TO
CUSTOMERS.
  15.  "NURSERY"  MEANS  A  LICENSEE THAT PRODUCES ONLY CLONES, IMMATURE
PLANTS, SEEDS, AND OTHER AGRICULTURAL PRODUCTS USED SPECIFICALLY FOR THE
PLANTING, PROPAGATION, AND CULTIVATION OF MARIHUANA.
  16. "ONSITE CONSUMPTION" MEANS A MARIHUANA RETAIL LICENSEE OR A  MARI-
HUANA  MICROBUSINESS THAT PERMITS THE CONSUMPTION OF MARIHUANA AND MARI-
HUANA PRODUCTS AT THE LICENSEE'S PLACE OF BUSINESS.
  17. "OWNER" MEANS AN INDIVIDUAL WITH AN AGGREGATE  OWNERSHIP  INTEREST
OF  TWENTY  PERCENT OR MORE IN A MARIHUANA BUSINESS LICENSED PURSUANT TO
THIS ARTICLE, UNLESS SUCH INTEREST IS SOLELY A SECURITY, LIEN, OR ENCUM-
BRANCE, OR AN INDIVIDUAL THAT WILL BE PARTICIPATING  IN  THE  DIRECTION,
CONTROL, OR MANAGEMENT OF THE LICENSED MARIHUANA BUSINESS.
  18. "PACKAGE" MEANS ANY CONTAINER OR RECEPTACLE USED FOR HOLDING MARI-
HUANA OR MARIHUANA PRODUCTS.
  19.  "PROCESSOR"  MEANS  A  LICENSEE THAT COMPOUNDS, BLENDS, EXTRACTS,
INFUSES, OR OTHERWISE MAKES OR PREPARES MARIHUANA PRODUCTS, BUT NOT  THE
PRODUCTION  OF  THE  MARIHUANA  CONTAINED  IN  THE  MARIHUANA PRODUCT. A
"PROCESSOR" MAY ALSO DISTRIBUTE  MARIHUANA  AND  MARIHUANA  PRODUCTS  TO
OTHER LICENSED MARIHUANA BUSINESSES.
  20.  "PRODUCER"  MEANS A LICENSEE THAT PLANTS, GROWS, HARVESTS, DRIES,
CURES, GRADES, OR TRIMS MARIHUANA.  A  "PRODUCER"  MAY  ALSO  DISTRIBUTE
MARIHUANA TO OTHER LICENSED MARIHUANA BUSINESSES.
  21.  "RETAILER"  MEANS  A  LICENSEE  THAT SELLS MARIHUANA OR MARIHUANA
PRODUCTS DIRECTLY TO CUSTOMERS. A "RETAILER" MAY DELIVER  MARIHUANA  AND
MARIHUANA PRODUCTS TO CUSTOMERS.
  22. "TESTING FACILITY" MEANS A LICENSEE THAT TESTS MARIHUANA AND MARI-
HUANA PRODUCTS.
  §  166. BUREAU OF MARIHUANA POLICY. THERE IS HEREBY ESTABLISHED IN THE
AUTHORITY A BUREAU OF MARIHUANA POLICY.  THE  BUREAU  SHALL  CONSIST  OF
THREE  MEMBERS.  THE  MEMBERS  OF  THE  BUREAU SHALL BE APPOINTED BY THE

S. 3040--C                         25

GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF THE SENATE. NOT MORE THAN
TWO MEMBERS OF THE BUREAU SHALL BELONG TO THE SAME POLITICAL PARTY.  THE
CHAIRMAN  OF  THE  BUREAU  OF  MARIHUANA POLICY HERETOFORE APPOINTED AND
DESIGNATED BY THE GOVERNOR AND THE REMAINING MEMBERS OF SUCH BOARD HERE-
TOFORE APPOINTED BY THE GOVERNOR SHALL CONTINUE TO SERVE AS CHAIRMAN AND
MEMBERS  OF  THE BUREAU UNTIL THE EXPIRATION OF THE RESPECTIVE TERMS FOR
WHICH THEY WERE APPOINTED. UPON THE EXPIRATION OF SUCH RESPECTIVE  TERMS
THE  SUCCESSORS OF SUCH CHAIRMAN AND MEMBERS SHALL BE APPOINTED TO SERVE
FOR A TERM OF THREE YEARS EACH AND  UNTIL  THEIR  SUCCESSORS  HAVE  BEEN
APPOINTED  AND  QUALIFIED.  THE COMMISSIONERS SHALL, WHEN PERFORMING THE
WORK OF THE BUREAU, BE COMPENSATED  AT  A  RATE  OF  TWO  HUNDRED  SIXTY
DOLLARS  PER  DAY,  TOGETHER  WITH AN ALLOWANCE FOR ACTUAL AND NECESSARY
EXPENSES INCURRED IN THE DISCHARGE OF THEIR DUTIES.
  § 167. ADMINISTRATION OF THE BUREAU  OF  MARIHUANA  POLICY.    1.  THE
BUREAU  ESTABLISHED  IN  SECTION  ONE  HUNDRED SIXTY-SIX OF THIS ARTICLE
SHALL HERETOFORE HAVE THE  POWER,  DUTY,  PURPOSE,  RESPONSIBILITY,  AND
JURISDICTION  TO  REGULATE  COMMERCIAL MARIHUANA ACTIVITY AS PROVIDED IN
THE MARIHUANA REGULATION AND TAXATION ACT.
  2. THE BUREAU SHALL HAVE THE EXCLUSIVE  AUTHORITY  TO  CREATE,  ISSUE,
RENEW,  DISCIPLINE, SUSPEND, OR REVOKE LICENSES FOR COMMERCIAL MARIHUANA
ACTIVITIES IN ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT.
  (A) THE BUREAU SHALL CONSULT WITH THE DEPARTMENT  OF  AGRICULTURE  AND
MARKETS  REGARDING  RULES, REGULATIONS, AND LICENSES FOR THE CULTIVATION
OF MARIHUANA.
  (B) THE BUREAU SHALL NOTIFY THE PUBLIC  OF  ALL  LICENSING  RULES  AND
REGULATIONS  PROMULGATED  PURSUANT TO THE MARIHUANA REGULATION AND TAXA-
TION ACT, WHICH SHALL INCLUDE INSTRUCTIONAL MATERIALS. IN ADDITION,  THE
BUREAU  SHALL  HOLD PUBLIC FORUMS IN ALL REGIONS OF THE STATE, AS DETER-
MINED BY THE DEPARTMENT OF ECONOMIC  DEVELOPMENT,  TO  HELP  THE  PUBLIC
UNDERSTAND AND NAVIGATE THE LICENSING PROCESS.
  (C)  THE  BUREAU  SHALL BEGIN ISSUING LICENSES NOT LATER THAN EIGHTEEN
MONTHS FOLLOWING THE EFFECTIVE DATE  OF  THE  MARIHUANA  REGULATION  AND
TAXATION ACT.
  (I) THE BUREAU SHALL BEGIN ACCEPTING APPLICATIONS NO MORE THAN FIFTEEN
MONTHS  FOLLOWING  THE  EFFECTIVE  DATE  OF THE MARIHUANA REGULATION AND
TAXATION ACT.
  (II) PURSUANT TO SECTION ONE HUNDRED EIGHTY-FIVE OF THIS ARTICLE,  THE
BUREAU  SHALL  NOTIFY  ANY TOWN, CITY OR VILLAGE OF ANY APPLICATIONS FOR
LICENSE.
  (III) THE BUREAU SHALL  ISSUE  AN  ANNUAL  LICENSE  TO  THE  APPLICANT
BETWEEN  FORTY-FIVE  AND  NINETY  DAYS  AFTER  RECEIPT OF AN APPLICATION
UNLESS THE BUREAU FINDS THE APPLICANT IS NOT IN  COMPLIANCE  WITH  REGU-
LATIONS  ENACTED  PURSUANT  TO  SECTION ONE HUNDRED SEVENTY-FOUR OF THIS
ARTICLE OR THE DEPARTMENT IS NOTIFIED BY  THE  RELEVANT  TOWN,  CITY  OR
VILLAGE THAT THE APPLICANT IS NOT IN COMPLIANCE WITH SUCH REGULATIONS.
  (D)  THE BUREAU SHALL HAVE THE AUTHORITY TO COLLECT FEES IN CONNECTION
WITH ACTIVITIES THEY REGULATE CONCERNING MARIHUANA PURSUANT  TO  SECTION
ONE HUNDRED NINETY-ONE OF THIS ARTICLE.
  3. (A) NOT LATER THAN TEN MONTHS FOLLOWING THE ENACTMENT OF THIS ARTI-
CLE,  EACH  TOWN,  CITY  OR VILLAGE MAY ENACT AN ORDINANCE OR REGULATION
SPECIFYING THE ENTITY WITHIN THE TOWN, CITY OR VILLAGE THAT IS RESPONSI-
BLE FOR PROCESSING APPLICATIONS SUBMITTED FOR A  LICENSE  TO  OPERATE  A
MARIHUANA  ESTABLISHMENT  WITHIN  THE  BOUNDARIES  OF  THE TOWN, CITY OR
VILLAGE AND FOR THE ISSUANCE OF SUCH LICENSES SHOULD THE ISSUANCE BY THE
TOWN, CITY OR VILLAGE BECOME NECESSARY  BECAUSE  OF  A  FAILURE  BY  THE
BUREAU TO ADOPT REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR

S. 3040--C                         26

OF  THIS  ARTICLE  OR  BECAUSE OF A FAILURE BY THE BUREAU TO PROCESS AND
ISSUE LICENSES AS REQUIRED BY SUBDIVISION TWO OF THIS SECTION.
  (B)  A  TOWN, CITY OR VILLAGE MAY ENACT ORDINANCES OR REGULATIONS, NOT
IN CONFLICT WITH THIS SECTION OR WITH REGULATIONS OR LEGISLATION ENACTED
PURSUANT TO THIS SECTION, GOVERNING THE TIME, PLACE, MANNER  AND  NUMBER
OF  MARIHUANA  ESTABLISHMENT OPERATIONS; ESTABLISHING PROCEDURES FOR THE
ISSUANCE, SUSPENSION, AND REVOCATION OF A LICENSE ISSUED BY THE  MUNICI-
PALITY  IN  ACCORDANCE  WITH PARAGRAPHS (C) AND (D) OF THIS SUBDIVISION,
SUCH PROCEDURES TO BE SUBJECT TO ALL REQUIREMENTS OF THE STATE  ADMINIS-
TRATIVE  PROCEDURE ACT OR ANY SUCCESSOR PROVISION, ESTABLISHING A SCHED-
ULE OF ANNUAL OPERATING, LICENSING, AND APPLICATION FEES  FOR  MARIHUANA
ESTABLISHMENTS,  PROVIDED,  THE  APPLICATION FEE SHALL ONLY BE DUE IF AN
APPLICATION IS SUBMITTED TO A TOWN, CITY OR VILLAGE IN  ACCORDANCE  WITH
PARAGRAPH  (D) OF THIS SUBDIVISION AND A LICENSING FEE SHALL ONLY BE DUE
IF A LICENSE IS ISSUED BY A MUNICIPALITY IN  ACCORDANCE  WITH  PARAGRAPH
(C)  OR  (D)  OF  THIS SUBDIVISION; AND ESTABLISHING CIVIL PENALTIES FOR
VIOLATION OF AN ORDINANCE OR REGULATION GOVERNING THE TIME,  PLACE,  AND
MANNER  OF  A  MARIHUANA  ESTABLISHMENT THAT MAY OPERATE IN SUCH A TOWN,
CITY OR VILLAGE. A TOWN, CITY OR VILLAGE MAY PROHIBIT THE  OPERATION  OF
MARIHUANA  PRODUCTION FACILITIES, MARIHUANA PROCESSING FACILITIES, MARI-
HUANA RETAIL STORES, MARIHUANA  MICROBUSINESSES,  OR  MARIHUANA  TESTING
FACILITIES THROUGH THE ENACTMENT OF AN ORDINANCE.
  (C)  IF  THE  BUREAU  DOES  NOT ISSUE A LICENSE TO AN APPLICANT WITHIN
NINETY DAYS OF RECEIPT OF  THE  APPLICATION  FILED  IN  ACCORDANCE  WITH
SUBDIVISION TWO AND DOES NOT NOTIFY THE APPLICANT OF THE SPECIFIC REASON
FOR ITS DENIAL, IN WRITING AND WITHIN SUCH TIME PERIOD, OR IF THE BUREAU
HAS  ADOPTED REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF
THIS ARTICLE BUT HAS NOT ISSUED ANY LICENSES WITHIN EIGHTEEN  MONTHS  OF
THE EFFECTIVE DATE OF THIS ARTICLE, FOR ANY TOWN, CITY OR VILLAGE ENACT-
ING  AN  ORDINANCE  PROVIDING  FOR LOCAL PROCESSING OF APPLICATIONS, THE
APPLICANT MAY RESUBMIT ITS APPLICATION DIRECTLY TO  THE  TOWN,  CITY  OR
VILLAGE  PURSUANT  TO  PARAGRAPH  (A) OF THIS SUBDIVISION, AND THE TOWN,
CITY OR VILLAGE MAY ISSUE AN ANNUAL LICENSE TO THE  APPLICANT.  A  TOWN,
CITY  OR  VILLAGE  ISSUING  A LICENSE TO AN APPLICANT SHALL DO SO WITHIN
NINETY DAYS OF RECEIPT OF THE RESUBMITTED APPLICATION UNLESS  THE  TOWN,
CITY  OR  VILLAGE FINDS AND NOTIFIES THE APPLICANT THAT THE APPLICANT IS
NOT IN COMPLIANCE WITH THE ORDINANCES AND REGULATIONS MADE  PURSUANT  TO
PARAGRAPH  (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME THE APPLICATION
IS RESUBMITTED AND THE TOWN, CITY OR VILLAGE SHALL NOTIFY THE BUREAU  IF
AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. IF AN APPLICATION IS
SUBMITTED  TO  A  TOWN, CITY OR VILLAGE UNDER THIS PARAGRAPH, THE BUREAU
SHALL FORWARD TO THE TOWN, CITY OR VILLAGE THE APPLICATION FEE  PAID  BY
THE APPLICANT TO THE BUREAU UPON REQUEST BY THE TOWN, CITY OR VILLAGE. A
LICENSE  ISSUED BY A TOWN, CITY OR VILLAGE IN ACCORDANCE WITH THIS PARA-
GRAPH SHALL HAVE THE SAME FORCE AND EFFECT AS A LICENSE  ISSUED  BY  THE
BUREAU IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION AND THE HOLDER
OF SUCH LICENSE SHALL NOT BE SUBJECT TO REGULATION OR ENFORCEMENT BY THE
BUREAU  DURING THE TERM OF THAT LICENSE. A SUBSEQUENT OR RENEWED LICENSE
MAY BE ISSUED UNDER THIS PARAGRAPH ON AN ANNUAL BASIS ONLY  UPON  RESUB-
MISSION  TO  THE TOWN, CITY OR VILLAGE OF A NEW APPLICATION SUBMITTED TO
THE BUREAU PURSUANT TO SUBDIVISION TWO OF THIS SECTION.  NOTHING IN THIS
PARAGRAPH SHALL LIMIT SUCH RELIEF AS MAY BE AVAILABLE  TO  AN  AGGRIEVED
PARTY  UNDER SECTION FOUR HUNDRED ONE OF THE STATE ADMINISTRATIVE PROCE-
DURE ACT OR ANY SUCCESSOR PROVISION.
  (D) IF THE BUREAU DOES NOT ADOPT REGULATIONS REQUIRED BY  SECTION  ONE
HUNDRED  SEVENTY-FOUR OF THIS ARTICLE, AN APPLICANT MAY SUBMIT AN APPLI-

S. 3040--C                         27

CATION DIRECTLY TO A TOWN, CITY OR VILLAGE FIFTEEN MONTHS FOLLOWING  THE
EFFECTIVE  DATE  OF THIS ARTICLE AND THE TOWN, CITY OR VILLAGE MAY ISSUE
AN ANNUAL LICENSE TO THE APPLICANT. A TOWN, CITY OR  VILLAGE  ISSUING  A
LICENSE TO AN APPLICANT SHALL DO SO WITHIN NINETY DAYS OF RECEIPT OF THE
APPLICATION  UNLESS  IT FINDS AND NOTIFIES THE APPLICANT THAT THE APPLI-
CANT IS NOT IN COMPLIANCE WITH ORDINANCES AND REGULATIONS MADE  PURSUANT
TO  PARAGRAPH  (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME OF APPLICA-
TION AND SHALL NOTIFY THE BUREAU IF AN ANNUAL LICENSE HAS BEEN ISSUED TO
THE APPLICANT. A LICENSE ISSUED BY A TOWN, CITY OR VILLAGE IN ACCORDANCE
WITH THIS PARAGRAPH SHALL HAVE THE SAME FORCE AND EFFECT  AS  A  LICENSE
ISSUED  BY THE BUREAU IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION
AND THE LICENSEE SHALL NOT BE SUBJECT TO REGULATION  OR  ENFORCEMENT  BY
THE  BUREAU  DURING  THE  TERM  OF THAT LICENSE. A SUBSEQUENT OR RENEWED
LICENSE MAY BE ISSUED UNDER THIS PARAGRAPH ON AN  ANNUAL  BASIS  IF  THE
BUREAU  HAS  NOT  ADOPTED  REGULATIONS  REQUIRED  BY SECTION ONE HUNDRED
SEVENTY-FOUR OF THIS ARTICLE AT LEAST NINETY DAYS PRIOR TO THE DATE UPON
WHICH SUCH SUBSEQUENT OR RENEWED LICENSE WOULD BE EFFECTIVE  OR  IF  THE
DEPARTMENT  HAS  ADOPTED  REGULATIONS  PURSUANT  TO  SECTION ONE HUNDRED
SEVENTY-FOUR OF THIS ARTICLE BUT HAS NOT, AT LEAST NINETY DAYS AFTER THE
ADOPTION OF SUCH REGULATIONS, ISSUED LICENSES  PURSUANT  TO  SUBDIVISION
TWO OF THIS SECTION.
  4.  THE BUREAU MAY LIMIT THE TOTAL AMOUNT OF MARIHUANA PRODUCED IN NEW
YORK BASED ON THE DEMAND FOR MARIHUANA AND MARIHUANA PRODUCTS AND IN  AN
EFFORT TO REDUCE ILLICIT MARIHUANA MARKETS.
  § 168. AUTHORITY TO PROMULGATE RULES AND REGULATIONS. THE BUREAU SHALL
PROMULGATE AND IMPLEMENT ALL RULES AND REGULATIONS AS IT DEEMS NECESSARY
TO CARRY OUT THE REQUIREMENTS, PURPOSE AND INTENT OF THIS ARTICLE.
  §  169.  LICENSES  ISSUED.  THE  FOLLOWING  KINDS OF LICENSES SHALL BE
ISSUED BY THE BUREAU FOR THE MANUFACTURE, PRODUCTION, PROCESSING,  TEST-
ING, RETAIL SALE AND DELIVERY OF MARIHUANA:
  1. MARIHUANA NURSERY LICENSE;
  2. MARIHUANA PRODUCER LICENSE;
  3. MARIHUANA PROCESSOR LICENSE;
  4. MARIHUANA DISTRIBUTOR LICENSE;
  5. MARIHUANA RETAILER LICENSE;
  6. MARIHUANA MICROBUSINESS LICENSE;
  7. MARIHUANA ON-SITE CONSUMPTION LICENSE;
  8. MARIHUANA DELIVERY LICENSE;
  9. MARIHUANA TESTING LICENSE; AND
  10. ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
  §  170.  LICENSING  LIMITS.  1. ALL LICENSES ISSUED UNDER THIS ARTICLE
SHALL BEAR A CLEAR  DESIGNATION  INDICATING  THAT  THE  LICENSE  IS  FOR
COMMERCIAL  MARIHUANA  ACTIVITY AS DISTINCT FROM MEDICAL MARIHUANA MANU-
FACTURED, PRODUCED AND SOLD FOR MEDICAL USE PURSUANT TO TITLE FIVE-A  OF
ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
  2.  AN  OWNER  OF A MARIHUANA RETAIL STORE SHALL NOT HOLD A LICENSE IN
ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTI-
CLE, SHALL NOT OWN OR HAVE OWNERSHIP  INTEREST  IN  AN  ENTITY  LICENSED
PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH
LAW, AND SHALL HOLD NOT MORE THAN THREE RETAIL LICENSES.
  3. AN OWNER OF A MARIHUANA MICROBUSINESS SHALL NOT HOLD A  LICENSE  IN
ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTI-
CLE,  SHALL  NOT  OWN  OR HAVE OWNERSHIP INTEREST IN A FACILITY LICENSED
PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF  THE  PUBLIC  HEALTH
LAW, AND SHALL HOLD NOT MORE THAN ONE MICROBUSINESS LICENSE.

S. 3040--C                         28

  4.  AN  OWNER OF A MARIHUANA TESTING FACILITY SHALL NOT HOLD A LICENSE
IN ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED  SIXTY-NINE  OF  THIS
ARTICLE  AND  SHALL  NOT  OWN  OR  HAVE OWNERSHIP INTEREST IN A FACILITY
LICENSED PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE  PUBLIC
HEALTH LAW.
  5.  ONLY A MARIHUANA RETAIL LICENSEE MAY BE ISSUED AN ON-SITE CONSUMP-
TION LICENSE.
  6. ONLY A MARIHUANA RETAIL LICENSEE, MARIHUANA MICROBUSINESS LICENSEE,
OR MARIHUANA DELIVERY LICENSEE MAY BE  PERMITTED  TO  DELIVER  MARIHUANA
DIRECTLY TO CUSTOMERS.
  7.  ONLY  A MARIHUANA PRODUCER LICENSEE, MARIHUANA PROCESSOR LICENSEE,
MARIHUANA MICROBUSINESS LICENSEE, OR MARIHUANA DISTRIBUTOR LICENSEE  MAY
DISTRIBUTE  MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED MARIHUANA
BUSINESSES.
  8. NO MARIHUANA DELIVERY OWNER MAY HOLD MORE THAN ONE MARIHUANA DELIV-
ERY LICENSE.
  9. NO MARIHUANA DISTRIBUTOR OWNER MAY HOLD  MORE  THAN  ONE  MARIHUANA
DISTRIBUTOR LICENSE.
  10. THE BUREAU SHALL ISSUE A SERIES OF PRODUCER LICENSES DISTINGUISHED
BY  CANOPY SIZE AND TYPE OF LIGHTING USED, NATURAL/OUTDOOR LIGHT, INDOOR
LIGHT, OR MIXED-LIGHT.
  11. NO MARIHUANA PRODUCER OWNER  MAY  HOLD  MORE  THAN  ONE  MARIHUANA
PRODUCER AND ONE MARIHUANA PROCESSOR LICENSE.
  12.  NO  MARIHUANA  PROCESSOR OWNER MAY HOLD MORE THAN THREE MARIHUANA
PROCESSOR LICENSES.
  13. AN OWNER OF A MARIHUANA NURSERY MAY HOLD A MARIHUANA  PRODUCER  OR
MARIHUANA  PROCESSOR LICENSE BUT SHALL NOT HOLD ANOTHER LICENSE CATEGORY
OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTICLE, SHALL NOT OWN OR HAVE
OWNERSHIP INTEREST IN A FACILITY LICENSED PURSUANT TO  TITLE  FIVE-A  OF
ARTICLE  THIRTY-THREE  OF THE PUBLIC HEALTH LAW, AND SHALL HOLD NOT MORE
THAN ONE NURSERY LICENSE. LICENSING LIMITS IMPOSED BY SUBDIVISIONS ELEV-
EN AND TWELVE OF THIS SECTION SHALL APPLY.
  § 171. ACTIONS TAKEN PURSUANT  TO  A  VALID  LICENSE  ARE  LAWFUL.  NO
CONTRACTS  RELATED TO THE OPERATION OF LICENSES UNDER THIS CHAPTER SHALL
BE DEEMED UNENFORCEABLE ON THE BASIS THAT THE ACTIONS PERMITTED PURSUANT
TO THE LICENSE ARE PROHIBITED BY FEDERAL LAW. THE FOLLOWING ACTIONS  ARE
NOT  UNLAWFUL  AS  PROVIDED  UNDER THIS CHAPTER, SHALL NOT BE AN OFFENSE
UNDER ANY STATE OR LOCAL LAW, AND SHALL NOT RESULT IN  ANY  CIVIL  FINE,
SEIZURE, OR FORFEITURE OF ASSETS AGAINST ANY PERSON ACTING IN ACCORDANCE
WITH THIS CHAPTER:
  1.  ACTIONS OF A LICENSEE, ITS EMPLOYEES, AND ITS AGENTS, AS PERMITTED
BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
PURSUANT TO A VALID LICENSE ISSUED BY THE BUREAU.
  2. ACTIONS OF THOSE WHO ALLOW PROPERTY TO BE USED BY A  LICENSEE,  ITS
EMPLOYEES,  AND  ITS AGENTS, AS PERMITTED BY THIS CHAPTER AND CONSISTENT
WITH RULES AND REGULATIONS OF THE BUREAU, PURSUANT TO  A  VALID  LICENSE
ISSUED BY THE BUREAU.
  3.  ACTIONS  OF ANY PERSON OR ENTITY, THEIR EMPLOYEES, OR THEIR AGENTS
PROVIDING A SERVICE TO A LICENSEE OR POTENTIAL LICENSEE, AS PERMITTED BY
THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS  OF  THE  BUREAU,
RELATING TO THE FORMATION OF A BUSINESS.
  4. THE PURCHASE, POSSESSION, OR CONSUMPTION OF MARIHUANA, AS PERMITTED
BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU,
OBTAINED FROM A VALIDLY LICENSED RETAILER.
  § 172. GENERAL PROHIBITIONS AND RESTRICTIONS. 1. NO MARIHUANA PRODUCTS
MAY BE IMPORTED INTO OR EXPORTED FROM NEW YORK STATE.

S. 3040--C                         29

  2.  NO PERSON MAY BE ISSUED A LICENSE UNDER SECTION ONE HUNDRED SIXTY-
NINE OF THIS ARTICLE IF THEY HAVE BEEN CONVICTED OF AN  OFFENSE  RELATED
TO  THE  FUNCTIONS,  OR DUTIES OF OWNING AND OPERATING A BUSINESS WITHIN
THREE YEARS OF THE APPLICATION DATE, EXCEPT THAT IF  THE  BUREAU  DETER-
MINES  THAT  THE  OWNER OR LICENSEE IS OTHERWISE SUITABLE TO BE ISSUED A
LICENSE, AND GRANTING THE LICENSE WOULD NOT  COMPROMISE  PUBLIC  SAFETY,
THE  BUREAU  SHALL CONDUCT A THOROUGH REVIEW OF THE NATURE OF THE CRIME,
CONVICTION, CIRCUMSTANCES, AND EVIDENCE OF REHABILITATION OF THE  OWNER,
AND SHALL EVALUATE THE SUITABILITY OF THE OWNER OR LICENSEE TO BE ISSUED
A LICENSE BASED ON THE EVIDENCE FOUND THROUGH THE REVIEW. IN DETERMINING
WHICH  OFFENSES  ARE SUBSTANTIALLY RELATED TO THE FUNCTIONS OR DUTIES OF
OWNING AND OPERATING A BUSINESS, THE BUREAU SHALL INCLUDE,  BUT  NOT  BE
LIMITED TO, THE FOLLOWING:
  (A) A FELONY CONVICTION INVOLVING FRAUD, MONEY LAUNDERING, FORGERY AND
OTHER UNLAWFUL CONDUCT RELATED TO OWNING AND OPERATING A BUSINESS.
  (B)  A  FELONY  CONVICTION  FOR HIRING, EMPLOYING, OR USING A MINOR IN
TRANSPORTING, CARRYING, SELLING, GIVING AWAY,  PREPARING  FOR  SALE,  OR
PEDDLING,  ANY  CONTROLLED SUBSTANCE TO A MINOR; OR SELLING, OFFERING TO
SELL, FURNISHING, OFFERING TO  FURNISH,  ADMINISTERING,  OR  GIVING  ANY
CONTROLLED SUBSTANCE TO A MINOR.
  3.  NO  LICENSE OF ANY KIND MAY BE ISSUED TO A PERSON UNDER THE AGE OF
TWENTY-ONE YEARS, NOR SHALL ANY LICENSEE EMPLOY ANYONE UNDER THE AGE  OF
TWENTY-ONE YEARS.
  §  173.  CERTAIN  OFFICIALS NOT TO BE INTERESTED IN THE MANUFACTURE OR
SALE OF MARIHUANA. 1.  EXCEPT  AS  OTHERWISE  PROVIDED  IN  SECTION  ONE
HUNDRED  TWENTY-EIGHT-A  OF  THIS  CHAPTER, IT SHALL BE UNLAWFUL FOR ANY
POLICE COMMISSIONER, POLICE  INSPECTOR,  CAPTAIN,  SERGEANT,  ROUNDSMAN,
PATROLMAN  OR OTHER POLICE OFFICIAL OR SUBORDINATE OF ANY POLICE DEPART-
MENT IN THE STATE, TO BE EITHER DIRECTLY OR INDIRECTLY INTERESTED IN THE
MANUFACTURE OR SALE OF MARIHUANA OR TO OFFER FOR SALE, OR  RECOMMEND  TO
ANY  LICENSEE  ANY  MARIHUANA.  A  PERSON  MAY NOT BE DENIED ANY LICENSE
GRANTED UNDER THE PROVISIONS OF SECTIONS FIFTY-FOUR, FIFTY-FIVE,  FIFTY-
NINE,  SIXTY-THREE,  SIXTY-FOUR,  SEVENTY-NINE,  EIGHTY-ONE,  OR ARTICLE
SEVEN OF THIS CHAPTER SOLELY ON THE GROUNDS OF BEING  THE  SPOUSE  OF  A
PUBLIC SERVANT DESCRIBED IN THIS SUBDIVISION. THE SOLICITATION OR RECOM-
MENDATION  MADE TO ANY LICENSEE, TO PURCHASE ANY MARIHUANA BY ANY POLICE
OFFICIAL OR SUBORDINATE AS  DESCRIBED  IN  THIS  SUBDIVISION,  SHALL  BE
PRESUMPTIVE  EVIDENCE OF THE INTEREST OF SUCH OFFICIAL OR SUBORDINATE IN
THE MANUFACTURE OR SALE OF MARIHUANA.
  2. NO ELECTIVE VILLAGE OFFICER SHALL BE SUBJECT TO THE LIMITATIONS SET
FORTH IN SUBDIVISION ONE OF THIS SECTION UNLESS  SUCH  ELECTIVE  VILLAGE
OFFICER  SHALL  BE ASSIGNED DUTIES DIRECTLY RELATING TO THE OPERATION OR
MANAGEMENT OF THE POLICE DEPARTMENT.
  § 174. PROVISIONS GOVERNING INITIAL RULEMAKING. 1. WITHIN TWO  HUNDRED
FORTY  DAYS  AFTER  THE EFFECTIVE DATE OF THIS ARTICLE, THE BUREAU SHALL
PERFORM SUCH ACTS, PRESCRIBE SUCH FORMS AND MAKE SUCH RULES, REGULATIONS
AND ORDERS AS IT MAY DEEM NECESSARY OR PROPER TO  FULLY  EFFECTUATE  THE
PROVISIONS OF THIS ARTICLE.
  2. THE BUREAU SHALL PROMULGATE NECESSARY RULES AND REGULATIONS GOVERN-
ING THE LICENSING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARIHUA-
NA RETAILERS AND MARIHUANA RETAILERS FOR CONSUMPTION ON-SITE, INCLUDING:
  (A) PRESCRIBING FORMS AND ESTABLISHING APPLICATION, REINSTATEMENT, AND
RENEWAL FEES;
  (B) THE QUALIFICATIONS FOR LICENSURE;

S. 3040--C                         30

  (C)  THE  BOOKS AND RECORDS TO BE CREATED AND MAINTAINED BY LICENSEES,
THE REPORTS TO BE MADE THEREON TO THE  BUREAU,  AND  INSPECTION  OF  THE
BOOKS AND RECORDS;
  (D)  METHODS  OF PRODUCING, PROCESSING, AND PACKAGING MARIHUANA, MARI-
HUANA-INFUSED PRODUCTS, AND CONCENTRATED CANNABIS; CONDITIONS OF SANITA-
TION, AND STANDARDS OF INGREDIENTS, QUALITY, AND IDENTITY  OF  MARIHUANA
PRODUCTS PRODUCED, PROCESSED, PACKAGED, OR SOLD BY LICENSEES; AND
  (E)  SECURITY  REQUIREMENTS FOR MARIHUANA RETAILERS AND PREMISES WHERE
MARIHUANA PRODUCTS ARE PRODUCED OR PROCESSED, AND SAFETY  PROTOCOLS  FOR
LICENSEES AND THEIR EMPLOYEES.
  3.  THE  BUREAU SHALL PROMULGATE RULES AND REGULATIONS THAT ARE CALCU-
LATED TO:
  (A) PREVENT THE DISTRIBUTION OF MARIHUANA TO PERSONS UNDER  TWENTY-ONE
YEARS OF AGE;
  (B)  PREVENT  THE  REVENUE  FROM  THE  SALE OF MARIHUANA FROM GOING TO
ORGANIZED CRIMINAL ENTERPRISES AND CARTELS;
  (C) PREVENT THE DIVERSION  OF  MARIHUANA  FROM  THIS  STATE  TO  OTHER
STATES;
  (D)  PREVENT  MARIHUANA  ACTIVITY  THAT  IS LEGAL UNDER STATE LAW FROM
BEING USED AS A COVER OR PRETEXT FOR THE TRAFFICKING  OF  OTHER  ILLEGAL
DRUGS OR OTHER ILLEGAL ACTIVITY;
  (E)  PREVENT  VIOLENCE  AND THE USE OF FIREARMS IN THE CULTIVATION AND
DISTRIBUTION OF MARIHUANA;
  (F) PREVENT IMPAIRED DRIVING AND THE  EXACERBATION  OF  OTHER  ADVERSE
PUBLIC HEALTH CONSEQUENCES ASSOCIATED WITH THE USE OF MARIHUANA;
  (G) PREVENT THE GROWING OF MARIHUANA ON PUBLIC LANDS AND THE ATTENDANT
PUBLIC SAFETY AND ENVIRONMENTAL DANGERS POSED BY MARIHUANA PRODUCTION ON
PUBLIC LANDS; AND
  (H) PREVENT THE POSSESSION AND USE OF MARIHUANA ON FEDERAL PROPERTY.
  4.  RULES AND REGULATIONS PROMULGATED BY THE BUREAU PURSUANT TO SUBDI-
VISION THREE OF THIS SECTION SHALL NOT PROHIBIT THE OPERATION  OF  MARI-
HUANA  ESTABLISHMENTS  EITHER EXPRESSLY OR THROUGH REGULATIONS THAT MAKE
THEIR OPERATION UNREASONABLY IMPRACTICABLE.
  5. THE BUREAU, IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE  AND
MARKETS  AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, SHALL PROMUL-
GATE NECESSARY RULES AND REGULATIONS GOVERNING THE  SAFE  PRODUCTION  OF
MARIHUANA, INCLUDING RESTRICTIONS ON THE USE OF PESTICIDES, INSECTICIDES
AND HERBICIDES.
  §  175. PROVISIONS GOVERNING MARIHUANA PRODUCERS. 1. NO PRODUCER SHALL
SELL, OR AGREE TO SELL OR DELIVER IN THE STATE ANY  MARIHUANA  PRODUCTS,
AS THE CASE MAY BE, EXCEPT IN SEALED CONTAINERS CONTAINING QUANTITIES IN
ACCORDANCE  WITH SIZE STANDARDS PURSUANT TO RULES ADOPTED BY THE BUREAU.
SUCH CONTAINERS SHALL  HAVE  AFFIXED  THERETO  SUCH  LABELS  AS  MAY  BE
REQUIRED  BY  THE  RULES  OF THE BUREAU, TOGETHER WITH ALL NECESSARY NEW
YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
  2. NO PRODUCER SHALL DELIVER ANY MARIHUANA PRODUCTS, EXCEPT  IN  VEHI-
CLES  OWNED AND OPERATED BY SUCH PRODUCER, OR HIRED AND OPERATED BY SUCH
PRODUCER FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED  WITH  THE
BUREAU,  AND  SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE
PURCHASER.
  3. EACH PRODUCER SHALL KEEP AND MAINTAIN UPON THE  LICENSED  PREMISES,
ADEQUATE  BOOKS  AND  RECORDS OF ALL TRANSACTIONS INVOLVING THE PRODUCER
AND SALE OF HIS OR ITS PRODUCTS, WHICH  SHALL  INCLUDE  ALL  INFORMATION
REQUIRED BY RULES PROMULGATED BY THE BUREAU. EACH SALE SHALL BE RECORDED
SEPARATELY  ON  A NUMBERED INVOICE, WHICH SHALL HAVE PRINTED THEREON THE
NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE LICENSED  PREMISES,

S. 3040--C                         31

AND  THE  CURRENT  LICENSE  NUMBER.  SUCH  PRODUCER SHALL DELIVER TO THE
PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND ADDRESS  OF  THE
PURCHASER,  THE  QUANTITY  PURCHASED,  DESCRIPTION  AND THE PRICE OF THE
PRODUCT,  AND  A  TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS AND
CONDITIONS ON WHICH SUCH SALE IS MADE. SUCH BOOKS, RECORDS AND  INVOICES
SHALL  BE  KEPT  FOR  A  PERIOD  OF TWO YEARS AND SHALL BE AVAILABLE FOR
INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  4. NO PRODUCER SHALL FURNISH OR CAUSE TO BE FURNISHED TO ANY LICENSEE,
ANY EXTERIOR OR INTERIOR SIGN, PRINTED, PAINTED, ELECTRIC OR  OTHERWISE,
EXCEPT AS AUTHORIZED BY THE BUREAU. THE BUREAU MAY MAKE SUCH RULES AS IT
DEEMS NECESSARY TO CARRY OUT THE PURPOSE AND INTENT OF THIS SUBDIVISION.
  §  176.  PROVISIONS  GOVERNING  PROCESSORS.  1.  NO PROCESSOR SHALL BE
ENGAGED IN ANY OTHER BUSINESS ON THE PREMISES  TO  BE  LICENSED;  EXCEPT
THAT NOTHING CONTAINED IN THIS CHAPTER SHALL PREVENT A MARIHUANA PRODUC-
ER  AND  A  MARIHUANA  PROCESSOR FROM OPERATING ON THE SAME PREMISES AND
FROM A PERSON HOLDING BOTH LICENSES.
  2. NO PROCESSOR SHALL SELL, OR AGREE TO SELL OR DELIVER IN  THE  STATE
ANY MARIHUANA PRODUCTS, EXCEPT IN A SEALED PACKAGE CONTAINING QUANTITIES
IN  ACCORDANCE  WITH  SIZE  STANDARDS  PURSUANT  TO RULES ADOPTED BY THE
BUREAU. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE
REQUIRED BY THE RULES OF THE BUREAU, TOGETHER  WITH  ALL  NECESSARY  NEW
YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW.
  3.  NO  PROCESSOR SHALL DELIVER ANY PRODUCTS, EXCEPT IN VEHICLES OWNED
AND OPERATED BY SUCH PROCESSOR, OR HIRED AND OPERATED BY SUCH  PROCESSOR
FROM  A  TRUCKING  OR TRANSPORTATION COMPANY REGISTERED WITH THE BUREAU,
AND SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE  PURCHAS-
ER.
  4.  EACH PROCESSOR SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  BUSINESS
TRANSACTED  BY  SUCH PROCESSOR, WHICH SHALL SHOW THE AMOUNT OF MARIHUANA
PRODUCTS, PURCHASED BY SUCH PROCESSOR TOGETHER WITH THE  NAMES,  LICENSE
NUMBERS  AND  PLACES  OF  BUSINESS OF THE PERSONS FROM WHOM THE SAME WAS
PURCHASED AND THE AMOUNT INVOLVED IN SUCH  PURCHASES,  AS  WELL  AS  THE
AMOUNT  OF  MARIHUANA  PRODUCTS SOLD BY SUCH PROCESSOR TOGETHER WITH THE
NAMES, ADDRESSES, AND LICENSE NUMBERS  OF  SUCH  PURCHASERS.  EACH  SALE
SHALL  BE  RECORDED  SEPARATELY  ON A NUMBERED INVOICE, WHICH SHALL HAVE
PRINTED THEREON THE NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE
LICENSED PREMISES, AND THE CURRENT LICENSE NUMBER. SUCH PROCESSOR  SHALL
DELIVER  TO  THE PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND
ADDRESS OF THE PURCHASER, QUANTITY PURCHASED, DESCRIPTION AND THE  PRICE
OF THE PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS
AND  CONDITIONS  ON  WHICH  SUCH  SALE  IS MADE. SUCH BOOKS, RECORDS AND
INVOICES SHALL BE KEPT FOR A PERIOD OF TWO YEARS AND SHALL BE  AVAILABLE
FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  §  177. PROVISIONS GOVERNING MARIHUANA RETAILERS. 1. NO RETAIL LICENSE
SHALL BE GRANTED FOR ANY PREMISES, UNLESS THE  APPLICANT  SHALL  BE  THE
OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A LEASE,
MANAGEMENT  AGREEMENT  OR  OTHER  AGREEMENT GIVING THE APPLICANT CONTROL
OVER THE PREMISES, IN WRITING, FOR A TERM  NOT  LESS  THAN  THE  LICENSE
PERIOD.
  2.  NO  PREMISES  SHALL BE LICENSED TO SELL MARIHUANA PRODUCTS, UNLESS
SAID PREMISES SHALL BE LOCATED IN A STORE,  THE  PRINCIPAL  ENTRANCE  TO
WHICH  SHALL  BE FROM THE STREET LEVEL AND LOCATED ON A PUBLIC THOROUGH-
FARE IN PREMISES WHICH MAY BE OCCUPIED, OPERATED OR CONDUCTED FOR  BUSI-
NESS,  TRADE  OR  INDUSTRY  OR  ON AN ARCADE OR SUB-SURFACE THOROUGHFARE
LEADING TO A RAILROAD TERMINAL. THERE MAY BE NOT  MORE  THAN  ONE  ADDI-

S. 3040--C                         32

TIONAL  ENTRANCE WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON AND
GIVING ACCESS TO AND FROM A PUBLIC OR PRIVATE  PARKING  LOT  OR  PARKING
AREA HAVING SPACE FOR NOT LESS THAN FIVE AUTOMOBILES.
  3. NO MARIHUANA RETAIL LICENSE SHALL BE GRANTED FOR ANY PREMISES WHICH
A  LICENSE  WOULD  NOT  BE  ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF
ALCOHOL OFF THE PREMISES BASED ON ITS PROXIMITY TO A  BUILDING  OCCUPIED
EXCLUSIVELY  AS  A  SCHOOL,  CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4. NO MARIHUANA RETAIL LICENSEE SHALL OFFER  FOR  SALE  ANY  MARIHUANA
PRODUCTS  IN ANY OTHER CONTAINER, EXCEPT IN THE ORIGINAL SEALED PACKAGE,
AS RECEIVED FROM THE PRODUCER, DISTRIBUTOR OR PROCESSOR. SUCH CONTAINERS
SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE REQUIRED BY  THE  RULES
OF  THE  BUREAU,  TOGETHER WITH ALL NEW YORK STATE EXCISE TAX STAMPS, AS
REQUIRED BY LAW. SUCH CONTAINERS SHALL NOT BE OPENED  NOR  ITS  CONTENTS
CONSUMED ON THE PREMISES WHERE SOLD.
  5.  NO  MARIHUANA  RETAIL  LICENSEE  SHALL  SELL OR TRANSFER MARIHUANA
PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
  6. NO MARIHUANA RETAIL LICENSEE SHALL SELL ALCOHOLIC BEVERAGES ON  THE
SAME PREMISES WHERE MARIHUANA PRODUCTS ARE SOLD.
  7.  NO  SIGN OF ANY KIND PRINTED, PAINTED OR ELECTRIC, ADVERTISING ANY
BRAND SHALL BE PERMITTED ON THE EXTERIOR OR INTERIOR OF  SUCH  PREMISES,
EXCEPT BY PERMISSION OF THE BUREAU.
  8.  NO  RETAIL LICENSEE SHALL DELIVER ANY MARIHUANA PRODUCTS EXCEPT IN
VEHICLES OWNED AND OPERATED BY SUCH LICENSEE, OR HIRED AND  OPERATED  BY
SUCH  LICENSEE FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED WITH
THE BUREAU, AND SHALL ONLY MAKE SUCH DELIVERIES AT THE PREMISES  OF  THE
PURCHASER.
  9.  NO  RETAIL  LICENSEE  SHALL  KEEP  OR  PERMIT  TO BE KEPT UPON THE
LICENSED PREMISES, ANY MARIHUANA PRODUCTS IN ANY UNSEALED CONTAINER.
  10. NO PREMISES LICENSED AS A MARIHUANA RETAILER SHALL BE PERMITTED TO
REMAIN OPEN DURING A TIME WHEN A PREMISES LICENSED TO SELL LIQUOR AND/OR
WINE FOR OFF-PREMISES CONSUMPTION IS NOT PERMITTED TO REMAIN OPEN PURSU-
ANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  11. EACH MARIHUANA RETAIL LICENSEE SHALL KEEP AND  MAINTAIN  UPON  THE
LICENSED  PREMISES,  ADEQUATE  BOOKS  AND  RECORDS  OF  ALL TRANSACTIONS
INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE, WHICH SHALL SHOW THE
AMOUNT OF MARIHUANA PRODUCTS, PURCHASED BY SUCH LICENSEE  TOGETHER  WITH
THE  NAMES,  LICENSE  NUMBERS AND PLACES OF BUSINESS OF THE PERSONS FROM
WHOM THE SAME WERE PURCHASED, AND THE AMOUNT INVOLVED IN SUCH PURCHASES,
AS WELL AS THE AMOUNT OF MARIHUANA PRODUCTS, SOLD BY SUCH LICENSEE,  AND
THE AMOUNT INVOLVED IN EACH SALE. SUCH BOOKS AND RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  12.  ALL  PREMISES  LICENSED  UNDER  THIS  SECTION SHALL BE SUBJECT TO
INSPECTION BY ANY PEACE OFFICER DESCRIBED IN SUBDIVISION FOUR OF SECTION
2.10 OF THE CRIMINAL PROCEDURE LAW ACTING PURSUANT TO HIS OR HER SPECIAL
DUTIES, OR POLICE OFFICER OR ANY DULY AUTHORIZED REPRESENTATIVE  OF  THE
BUREAU,  DURING THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR THE TRANS-
ACTION OF BUSINESS.
  § 178. PROVISIONS GOVERNING MARIHUANA ON-SITE CONSUMPTION LICENSES. 1.
NO MARIHUANA RETAILER OR MICROBUSINESS  SHALL  BE  GRANTED  A  MARIHUANA
ON-SITE  CONSUMPTION  LICENSE FOR A PREMISES LOCATED IN WHOLE OR IN PART
INSIDE THE BOUNDARIES OF ANY CITY, VILLAGE OR  TOWN,  UNLESS  THE  LOCAL
LEGISLATIVE BODY OF SUCH CITY, VILLAGE OR TOWN, BY RESOLUTION, EXPRESSLY
AUTHORIZES  THE  LICENSING  OF  SUCH FACILITIES IN SUCH CITY, VILLAGE OR
TOWN. THE LOCAL LEGISLATIVE BODY  MAY  DIRECT  AN  APPROPRIATE  OFFICER,
BOARD  OR  BODY  OF  SUCH  CITY,  VILLAGE OR TOWN AS THE LOCAL LICENSING

S. 3040--C                         33

AUTHORITY TO AUTHORIZE INDIVIDUAL MARIHUANA  FACILITY  LICENSE  APPLICA-
TIONS.  IN  CITIES  OF  ONE  MILLION OR MORE RESIDENTS, SHOULD THE LOCAL
LEGISLATIVE BODY AUTHORIZE SUCH LICENSE, NO MARIHUANA  RETAILER  LICENSE
FOR  CONSUMPTION  ON-SITE  SHALL  BE  GRANTED UNLESS THE COMMUNITY BOARD
ESTABLISHED PURSUANT TO SECTION TWENTY-EIGHT HUNDRED  OF  THE  NEW  YORK
CITY  CHARTER WITH JURISDICTION OVER THE AREA IN WHICH THE PREMISES WILL
BE LOCATED SHALL ALSO AUTHORIZE SUCH LICENSE.
  2. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
ON-SITE CONSUMPTION LICENSE FOR ANY PREMISES, UNLESS THE APPLICANT SHALL
BE THE OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A
LEASE, IN WRITING, FOR A TERM NOT LESS THAN THE LICENSE  PERIOD  EXCEPT,
HOWEVER,  THAT  SUCH  LICENSE  MAY  THEREAFTER  BE  RENEWED  WITHOUT THE
REQUIREMENT OF A LEASE AS HEREIN PROVIDED. THIS  SUBDIVISION  SHALL  NOT
APPLY  TO  PREMISES  LEASED  FROM  GOVERNMENT AGENCIES, AS DEFINED UNDER
SUBDIVISION TWELVE-C OF SECTION THREE OF THIS CHAPTER; PROVIDED,  HOWEV-
ER,  THAT  THE  APPROPRIATE  ADMINISTRATOR  OF  SUCH  GOVERNMENT  AGENCY
PROVIDES SOME FORM OF WRITTEN DOCUMENTATION REGARDING THE TERMS OF OCCU-
PANCY UNDER WHICH THE  APPLICANT  IS  LEASING  SAID  PREMISES  FROM  THE
GOVERNMENT  AGENCY  FOR  PRESENTATION  TO  THE BUREAU AT THE TIME OF THE
LICENSE APPLICATION. SUCH DOCUMENTATION SHALL INCLUDE THE TERMS OF OCCU-
PANCY BETWEEN THE APPLICANT AND THE GOVERNMENT  AGENCY,  INCLUDING,  BUT
NOT  LIMITED  TO, ANY SHORT-TERM LEASING AGREEMENTS OR WRITTEN OCCUPANCY
AGREEMENTS.
  3. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
ON-SITE CONSUMPTION LICENSE FOR ANY PREMISES WHERE A LICENSE  WOULD  NOT
BE  ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF ALCOHOL ON THE PREMISES
BASED ON ITS PROXIMITY TO A BUILDING OCCUPIED EXCLUSIVELY AS  A  SCHOOL,
CHURCH,  SYNAGOGUE  OR OTHER PLACE OF WORSHIP PURSUANT TO THE PROVISIONS
OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4. THE BUREAU MAY CONSIDER ANY OR ALL OF THE FOLLOWING IN  DETERMINING
WHETHER PUBLIC CONVENIENCE AND ADVANTAGE AND THE PUBLIC INTEREST WILL BE
PROMOTED BY THE GRANTING OF LICENSES AND PERMITS FOR A MARIHUANA ON-SITE
CONSUMPTION LICENSE AT A PARTICULAR UNLICENSED LOCATION:
  (A)  THE NUMBER, CLASSES AND CHARACTER OF LICENSES IN PROXIMITY TO THE
LOCATION AND IN THE PARTICULAR TOWN,  CITY  OR  VILLAGE  OR  SUBDIVISION
THEREOF.
  (B)  EVIDENCE  THAT  ALL  NECESSARY  LICENSES  AND  PERMITS  HAVE BEEN
OBTAINED FROM THE STATE AND ALL OTHER GOVERNING BODIES.
  (C) EFFECT OF THE GRANT OF THE LICENSE ON VEHICULAR TRAFFIC AND  PARK-
ING IN PROXIMITY TO THE LOCATION.
  (D) THE EXISTING NOISE LEVEL AT THE LOCATION AND ANY INCREASE IN NOISE
LEVEL THAT WOULD BE GENERATED BY THE PROPOSED PREMISES.
  (E) ANY OTHER FACTORS SPECIFIED BY LAW OR REGULATION THAT ARE RELEVANT
TO DETERMINE THE PUBLIC CONVENIENCE AND ADVANTAGE AND PUBLIC INTEREST OF
THE COMMUNITY.
  5.  IF  THE  BUREAU  SHALL  DISAPPROVE AN APPLICATION FOR A LICENSE OR
PERMIT, IT SHALL STATE AND FILE IN ITS OFFICES THE REASONS THEREFOR  AND
SHALL  NOTIFY  THE APPLICANT THEREOF. SUCH APPLICANT MAY THEREUPON APPLY
TO THE BUREAU FOR A REVIEW OF SUCH ACTION IN A MANNER TO  BE  PRESCRIBED
BY THE RULES OF THE BUREAU. A HEARING UPON NOTICE TO THE APPLICANT SHALL
THEREUPON  BE  HELD BY THE BUREAU OR BY ONE OF ITS MEMBERS AT ITS OFFICE
MOST CONVENIENTLY SITUATED TO THE OFFICE OF ITS DULY  AUTHORIZED  REPRE-
SENTATIVE IN A MANNER TO BE PRESCRIBED IN ITS RULES; AND ON SUCH HEARING
PROOF  MAY  BE TAKEN BY ORAL TESTIMONY OR BY AFFIDAVIT RELATIVE THERETO.
AFTER SUCH HEARING, IF THE BUREAU CONFIRMS SUCH  DISAPPROVAL,  IT  SHALL
ENDORSE SUCH APPLICATION ACCORDINGLY AND SHALL SEND NOTICE TO THE APPLI-

S. 3040--C                         34

CANT  OF  ITS  ACTION  IN  SUCH FORM AS THE BUREAU MAY PRESCRIBE. IF THE
BUREAU DOES NOT CONFIRM THE DISAPPROVAL ACTION IT MAY GRANT SUCH  APPLI-
CATION AND ISSUE SUCH LICENSE.
  6. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE, EXCEPT PERSONS OR CORPO-
RATIONS OPERATING A HOTEL, AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION
THREE  OF  THIS  CHAPTER,  FOR  EXCLUSIVE  USE IN THE FURNISHING OF ROOM
SERVICE IN THE MANNER PRESCRIBED BY RULE OR REGULATION  OF  THE  BUREAU,
SHALL  KEEP  UPON  THE  LICENSED PREMISES ANY MARIHUANA PRODUCTS, EXCEPT
THOSE PURCHASED FROM A LICENSED PRODUCER, AND IN CONTAINERS APPROVED  BY
THE  BUREAU.  SUCH  CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS
MAY BE REQUIRED BY THE RULES OF THE BUREAU, TOGETHER WITH ALL  NECESSARY
EXCISE  STAMPS  AS  REQUIRED  BY  LAW.  NO MARIHUANA RETAIL LICENSEE FOR
ON-SITE CONSUMPTION SHALL REUSE, REFILL, TAMPER WITH, ADULTERATE, DILUTE
OR FORTIFY THE CONTENTS  OF  ANY  CONTAINER  OF  MARIHUANA  PRODUCTS  AS
RECEIVED FROM THE MANUFACTURER OR WHOLESALER.
  7.  NO  MARIHUANA  ON-SITE CONSUMPTION LICENSEE SHALL SELL, DELIVER OR
GIVE AWAY, OR CAUSE OR PERMIT OR PROCURE TO BE SOLD, DELIVERED OR  GIVEN
AWAY  ANY  MARIHUANA  FOR  CONSUMPTION  ON  THE PREMISES WHERE SOLD IN A
CONTAINER OR PACKAGE CONTAINING MORE THAN ONE GRAM OF MARIHUANA.
  8. EXCEPT WHERE A PERMIT TO DO SO  IS  OBTAINED  PURSUANT  TO  SECTION
405.10 OF THE PENAL LAW, NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL
SUFFER,  PERMIT,  OR PROMOTE AN EVENT ON ITS PREMISES WHEREIN ANY PERSON
SHALL USE, EXPLODE, OR CAUSE TO EXPLODE, ANY FIREWORKS  OR  OTHER  PYRO-
TECHNICS  IN  A BUILDING AS DEFINED IN PARAGRAPH E OF SUBDIVISION ONE OF
SECTION 405.10 OF THE PENAL LAW, THAT IS  COVERED  BY  SUCH  LICENSE  OR
POSSESS  SUCH FIREWORKS OR PYROTECHNICS FOR SUCH PURPOSE. IN ADDITION TO
ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF THIS SUBDIVISION SHALL
CONSTITUTE AN ADEQUATE GROUND FOR INSTITUTING A PROCEEDING  TO  SUSPEND,
CANCEL,  OR  REVOKE  THE  LICENSE OF THE VIOLATOR IN ACCORDANCE WITH THE
APPLICABLE PROCEDURES SPECIFIED IN SECTION ONE HUNDRED NINETEEN OF  THIS
CHAPTER; PROVIDED HOWEVER, IF MORE THAN ONE LICENSEE IS PARTICIPATING IN
A  SINGLE  EVENT,  UPON  APPROVAL  BY THE BUREAU, ONLY ONE LICENSEE MUST
OBTAIN SUCH PERMIT.
  9. NO RESTAURANT AND NO PREMISES LICENSED TO SELL  MARIHUANA  PRODUCTS
FOR  ON-SITE  CONSUMPTION  UNDER  PARAGRAPH  (A)  OF  SUBDIVISION SIX OF
SECTION SIXTY-FOUR-A OF THIS CHAPTER SHALL  BE  PERMITTED  TO  HAVE  ANY
OPENING OR MEANS OF ENTRANCE OR PASSAGEWAY FOR PERSONS OR THINGS BETWEEN
THE  LICENSED  PREMISES  AND  ANY  OTHER  ROOM  OR PLACE IN THE BUILDING
CONTAINING THE LICENSED PREMISES, OR ANY ADJOINING OR ABUTTING PREMISES,
UNLESS INGRESS AND EGRESS IS RESTRICTED BY AN  EMPLOYEE,  AGENT  OF  THE
LICENSEE,  OR OTHER APPROVED METHOD OF CONTROLLING ACCESS TO THE FACILI-
TY, OR UNLESS SUCH PREMISES ARE A BONA FIDE RESTAURANT WITH SUCH  ACCESS
FOR  PATRONS  AND  GUESTS FROM ANY PART OF SUCH BUILDING OR ADJOINING OR
ABUTTING PREMISES AS SHALL SERVE PUBLIC CONVENIENCE IN A REASONABLE  AND
SUITABLE  MANNER;  OR  UNLESS  SUCH  LICENSED PREMISES ARE IN A BUILDING
OWNED OR OPERATED BY ANY TOWN, CITY,  VILLAGE  OR  PUBLIC  AUTHORITY  OR
AGENCY,  IN  A  PARK OR OTHER SIMILAR PLACE OF PUBLIC ACCOMMODATION. ALL
GLASS IN ANY WINDOW OR DOOR ON SAID LICENSED PREMISES SHALL BE CLEAR AND
SHALL NOT BE OPAQUE, COLORED, STAINED OR FROSTED.
  10. A VESSEL LICENSED TO SELL MARIHUANA PRODUCTS FOR ON-SITE  CONSUMP-
TION  SHALL  NOT BE PERMITTED TO SELL ANY MARIHUANA PRODUCTS, WHILE SAID
VESSEL IS MOORED TO A PIER OR  DOCK,  EXCEPT  THAT  VESSELS  SAILING  ON
ESTABLISHED  SCHEDULES SHALL BE PERMITTED TO SELL MARIHUANA PRODUCTS FOR
A PERIOD OF THREE HOURS PRIOR TO THE REGULAR ADVERTISED SAILING TIME.
  11. EACH MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL KEEP  AND  MAIN-
TAIN  UPON  THE  LICENSED PREMISES, ADEQUATE RECORDS OF ALL TRANSACTIONS

S. 3040--C                         35

INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE WHICH SHALL SHOW  THE
AMOUNT  OF  MARIHUANA  PRODUCTS,  IN  AN  APPLICABLE METRIC MEASUREMENT,
PURCHASED BY SUCH LICENSEE TOGETHER WITH THE NAMES, LICENSE NUMBERS  AND
PLACES OF BUSINESS OF THE PERSONS FROM WHOM THE SAME WERE PURCHASED, THE
AMOUNT  INVOLVED  IN  SUCH  PURCHASES, AS WELL AS THE SALES OF MARIHUANA
PRODUCTS MADE BY SUCH LICENSEE.  THE  BUREAU  IS  HEREBY  AUTHORIZED  TO
PROMULGATE  RULES AND REGULATIONS PERMITTING AN ON-SITE LICENSEE OPERAT-
ING TWO OR MORE PREMISES SEPARATELY LICENSED TO SELL MARIHUANA  PRODUCTS
FOR ON-SITE CONSUMPTION TO INAUGURATE OR RETAIN IN THIS STATE METHODS OR
PRACTICES  OF  CENTRALIZED  ACCOUNTING,  BOOKKEEPING,  CONTROL  RECORDS,
REPORTING, BILLING, INVOICING OR PAYMENT RESPECTING PURCHASES, SALES  OR
DELIVERIES  OF  MARIHUANA PRODUCTS, OR METHODS AND PRACTICES OF CENTRAL-
IZED RECEIPT OR STORAGE OF MARIHUANA PRODUCTS WITHIN THIS STATE  WITHOUT
SEGREGATION  OR  EARMARKING  FOR  ANY SUCH SEPARATELY LICENSED PREMISES,
WHEREVER SUCH METHODS AND PRACTICES ASSURE  THE  AVAILABILITY,  AT  SUCH
LICENSEE'S  CENTRAL  OR  MAIN  OFFICE  IN THIS STATE, OF DATA REASONABLY
NEEDED FOR THE ENFORCEMENT OF THIS CHAPTER. SUCH RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  12. ALL RETAIL LICENSED PREMISES SHALL BE SUBJECT TO INSPECTION BY ANY
PEACE OFFICER, ACTING PURSUANT TO HIS OR HER SPECIAL DUTIES,  OR  POLICE
OFFICER AND BY THE DULY AUTHORIZED REPRESENTATIVES OF THE BUREAU, DURING
THE  HOURS  WHEN THE SAID PREMISES ARE OPEN FOR THE TRANSACTION OF BUSI-
NESS.
  13. A MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL NOT  PROVIDE  MARI-
HUANA PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE.
  §  179.  ADVERTISING  AND  FORMS  FOR THE ISSUANCE OF LICENSES. 1. THE
BUREAU IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGULATIONS  GOVERN-
ING  THE ADVERTISING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARI-
HUANA RETAILERS, AND ANY MARIHUANA RELATED PRODUCTS OR SERVICES.
  2. THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING  ADVERTISING
THAT:
  (A) IS FALSE, DECEPTIVE, OR MISLEADING;
  (B) PROMOTES OVERCONSUMPTION;
  (C) DEPICTS CONSUMPTION BY CHILDREN OR OTHER MINORS;
  (D) IS DESIGNED IN ANY WAY TO APPEAL TO CHILDREN OR OTHER MINORS;
  (E) IS WITHIN TWO HUNDRED FEET OF THE PERIMETER OF A PLAYGROUND, CHILD
CARE CENTER, PUBLIC PARK, LIBRARY OR SCHOOL GROUNDS;
  (F) IS IN PUBLIC TRANSIT VEHICLES AND STATIONS;
  (G) IS IN THE FORM OF AN UNSOLICITED INTERNET POP-UP; OR
  (H) IS ON PUBLICLY OWNED OR OPERATED PROPERTY.
  3.  THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING ALL MARKET-
ING STRATEGIES AND IMPLEMENTATION INCLUDING, BUT NOT LIMITED TO,  BRAND-
ING,  PACKAGING, LABELING, LOCATION OF MARIHUANA RETAILERS AND MARIHUANA
MICROBUSINESSES, AND ADVERTISEMENTS THAT ARE DESIGNED TO:
  (A) APPEAL TO PERSONS LESS THEN TWENTY-ONE YEARS OF AGE; OR
  (B) DISSEMINATE FALSE OR MISLEADING INFORMATION TO CUSTOMERS.
  4. THE BUREAU SHALL PROMULGATE EXPLICIT RULES REQUIRING THAT:
  (A) ALL ADVERTISEMENTS AND MARKETING ACCURATELY AND  LEGIBLY  IDENTIFY
THE LICENSEE RESPONSIBLE FOR ITS CONTENT; AND
  (B)  ANY  BROADCAST,  CABLE,  RADIO,  PRINT AND DIGITAL COMMUNICATIONS
ADVERTISEMENTS ONLY BE PLACED WHERE THE AUDIENCE IS REASONABLY  EXPECTED
TO  BE  TWENTY-ONE  YEARS  OF  AGE  OR OLDER, AS DETERMINED BY RELIABLE,
UP-TO-DATE AUDIENCE COMPOSITION DATA.
  § 180. PACKAGING OF  MARIHUANA  PRODUCTS.  1.  THE  BUREAU  IS  HEREBY
AUTHORIZED  TO  PROMULGATE RULES AND REGULATIONS GOVERNING THE PACKAGING
OF MARIHUANA PRODUCTS, SOLD OR POSSESSED FOR SALE IN NEW YORK STATE.

S. 3040--C                         36

  2. SUCH REGULATIONS SHALL INCLUDE REQUIRING THAT:
  (A)  PACKAGING  MEETS  REQUIREMENTS  SIMILAR  TO  THE  FEDERAL "POISON
PREVENTION PACKAGING ACT OF 1970," 15 U.S.C. SEC 1471 ET SEQ.;
  (B) ALL MARIHUANA-INFUSED PRODUCTS SHALL HAVE A SEPARATE PACKAGING FOR
EACH SERVING;
  (C) PRIOR TO DELIVERY OR SALE AT A RETAILER, MARIHUANA  AND  MARIHUANA
PRODUCTS  SHALL  BE  LABELED AND PLACED IN A RESEALABLE, CHILD-RESISTANT
PACKAGE; AND
  (D) PACKAGES AND LABELS SHALL NOT BE MADE TO BE  ATTRACTIVE  TO  CHIL-
DREN.
  § 181. LABELING OF MARIHUANA PRODUCTS. 1. THE BUREAU IS HEREBY AUTHOR-
IZED  TO  PROMULGATE  RULES  AND  REGULATIONS GOVERNING THE LABELING AND
OFFERING OF MARIHUANA PRODUCTS FOR SALE WITHIN THIS STATE.
  2. SUCH RULES AND REGULATIONS SHALL BE  CALCULATED  TO:  (A)  PROHIBIT
DECEPTION OF THE CONSUMER; (B) AFFORD ADEQUATE INFORMATION AS TO QUALITY
AND IDENTITY OF THE PRODUCT; AND (C) ACHIEVE NATIONAL UNIFORMITY IN THIS
BUSINESS.
  3. THE BUREAU MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF HEALTH WHEN
NECESSARY BEFORE PROMULGATING RULES AND REGULATIONS UNDER THIS SECTION.
  4.  SUCH  REGULATIONS SHALL INCLUDE REQUIRING LABELS WARNING CONSUMERS
OF ANY POTENTIAL IMPACT ON HUMAN HEALTH RESULTING FROM  THE  CONSUMPTION
OF MARIHUANA PRODUCTS THAT SHALL BE AFFIXED TO THOSE PRODUCTS WHEN SOLD,
IF  SUCH  LABELS  ARE  DEEMED WARRANTED BY THE BUREAU AFTER CONSULTATION
WITH THE DEPARTMENT OF HEALTH.
  5. ALL MARIHUANA  AND  MARIHUANA  PRODUCT  LABELS  AND  INSERTS  SHALL
INCLUDE  THE  FOLLOWING INFORMATION PROMINENTLY DISPLAYED IN A CLEAR AND
LEGIBLE FASHION IN ACCORDANCE  WITH  THE  REQUIREMENTS,  INCLUDING  FONT
SIZE,  PRESCRIBED  BY  THE  BUREAU OR THE DEPARTMENT OF HEALTH: NOT LESS
THAN 8 POINT FONT:
  (A) MANUFACTURE DATE AND SOURCE;
  (B) FOR PACKAGES CONTAINING ONLY DRIED FLOWER, THE NET WEIGHT OF MARI-
HUANA IN THE PACKAGE;
  (C) IDENTIFICATION OF THE SOURCE AND DATE OF CULTIVATION, THE TYPE  OF
MARIHUANA OR MARIHUANA PRODUCT AND THE DATE OF MANUFACTURING AND PACKAG-
ING;
  (D)  LIST  OF PHARMACOLOGICALLY ACTIVE INGREDIENTS, INCLUDING, BUT NOT
LIMITED TO, TETRAHYDROCANNABINOL (THC),  CANNABIDIOL  (CBD),  AND  OTHER
CANNABINOID  CONTENT, THE THC AND OTHER CANNABINOID AMOUNT IN MILLIGRAMS
PER SERVING, SERVINGS PER PACKAGE, AND THE  THC  AND  OTHER  CANNABINOID
AMOUNT IN MILLIGRAMS FOR THE PACKAGE TOTAL, AND THE POTENCY OF THE MARI-
HUANA  OR MARIHUANA PRODUCT BY REFERENCE TO THE AMOUNT OF TETRAHYDROCAN-
NABINOL AND CANNABIDIOL IN EACH SERVING;
  (E) FOR MARIHUANA PRODUCTS, A LIST OF ALL INGREDIENTS  AND  DISCLOSURE
OF NUTRITIONAL INFORMATION IN THE SAME MANNER AS THE FEDERAL NUTRITIONAL
LABELING REQUIREMENTS IN 21 C.F.R. SECTION 101.9;
  (F)  A  LIST  OF  ANY SOLVENTS, NONORGANIC PESTICIDES, HERBICIDES, AND
FERTILIZERS THAT WERE USED IN THE CULTIVATION, PRODUCTION, AND  MANUFAC-
TURE OF SUCH MARIHUANA OR MARIHUANA PRODUCT;
  (G) A WARNING IF NUTS OR OTHER KNOWN ALLERGENS ARE USED;
  (H)  INFORMATION  ASSOCIATED  WITH THE UNIQUE IDENTIFIER ISSUED BY THE
BUREAU OF MARIHUANA POLICY; AND
  (I) ANY OTHER REQUIREMENTS SET BY THE BUREAU OF MARIHUANA POLICY.
  6. ONLY GENERIC FOOD NAMES MAY BE USED TO DESCRIBE THE INGREDIENTS  IN
EDIBLE MARIHUANA PRODUCTS.
  7.  SUCH  RULES AND REGULATIONS SHALL ESTABLISH METHODS AND PROCEDURES
FOR DETERMINING SERVING SIZES  FOR  MARIHUANA-INFUSED  PRODUCTS,  ACTIVE

S. 3040--C                         37

CANNABIS  CONCENTRATION  PER  SERVING  SIZE,  AND NUMBER OF SERVINGS PER
CONTAINER. SUCH REGULATIONS SHALL ALSO REQUIRE A NUTRITIONAL FACT  PANEL
THAT INCORPORATES DATA REGARDING SERVING SIZES AND POTENCY THEREOF.
  8. SUCH RULES AND REGULATIONS SHALL REQUIRE INFORMATION CONTAINING THE
LICENSE  NUMBER OF THE MARIHUANA PRODUCER AND PROCESSOR FACILITIES WHERE
THE MARIHUANA WAS GROWN AND PROCESSED.
  9. THE PACKAGING, SALE, OR POSSESSION BY ANY LICENSEE OF ANY MARIHUANA
PRODUCT NOT LABELED OR OFFERED IN CONFORMITY WITH RULES AND  REGULATIONS
PROMULGATED  IN  ACCORDANCE  WITH  THIS SECTION SHALL BE GROUNDS FOR THE
IMPOSITION OF A FINE, AND/OR THE SUSPENSION, REVOCATION OR  CANCELLATION
OF THE LICENSE.
  §  182. SEED TO SALE TRACKING. 1. NO LATER THAN FIFTEEN MONTHS FOLLOW-
ING THE EFFECTIVE DATE OF THE MARIHUANA REGULATION AND TAXATION ACT, THE
BUREAU SHALL ESTABLISH A SEED TO SALE TRACKING PROGRAM FOR REPORTING THE
MOVEMENT OF MARIHUANA AND MARIHUANA PRODUCTS THROUGHOUT THE DISTRIBUTION
CHAIN THAT UTILIZES A UNIQUE IDENTIFIER  AND  SECURE  PACKAGING  AND  IS
CAPABLE OF PROVIDING INFORMATION THAT CAPTURES, AT A MINIMUM, ALL OF THE
FOLLOWING:
  (A) THE LICENSEE RECEIVING THE PRODUCT;
  (B) THE TRANSACTION DATE; AND
  (C)  THE  PRODUCER  FROM  WHICH  THE PRODUCT ORIGINATES, INCLUDING THE
ASSOCIATED UNIQUE IDENTIFIER.
  2. (A) THE BUREAU SHALL CREATE AN ELECTRONIC DATABASE  CONTAINING  THE
ELECTRONIC  SHIPPING  MANIFESTS  TO FACILITATE THE ADMINISTRATION OF THE
SEED TO SALE PROGRAM TRACKING, WHICH SHALL INCLUDE, BUT NOT  BE  LIMITED
TO, THE FOLLOWING INFORMATION:
  (B) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS SHIPPED;
  (C) THE ESTIMATED TIMES OF DEPARTURE AND ARRIVAL;
  (D) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS RECEIVED;
  (E) THE ACTUAL TIME OF DEPARTURE AND ARRIVAL;
  (F) A CATEGORIZATION OF THE PRODUCT; AND
  (G)  THE LICENSE NUMBER AND UNIQUE IDENTIFIER ISSUED BY THE BUREAU FOR
ALL LICENSEES INVOLVED IN  THE  SHIPPING  PROCESS,  INCLUDING,  BUT  NOT
LIMITED TO, PRODUCER, PROCESSOR, RETAILER, AND DELIVERY LICENSEES.
  3.  THE  DATABASE  SHALL  BE  DESIGNED  TO FLAG IRREGULARITIES FOR THE
BUREAU TO INVESTIGATE.
  § 183. RENEWALS OF LICENSES AND PERMITS. 1. EACH LICENSE  AND  PERMIT,
ISSUED PURSUANT TO THIS ARTICLE MAY BE RENEWED UPON APPLICATION THEREFOR
BY  THE LICENSEE OR PERMITTEE AND THE PAYMENT OF THE ANNUAL FEE FOR SUCH
LICENSE OR PERMIT AS PRESCRIBED BY THIS ARTICLE. IN THE CASE OF APPLICA-
TIONS FOR RENEWALS, THE BUREAU MAY DISPENSE  WITH  THE  REQUIREMENTS  OF
SUCH  STATEMENTS  AS  IT DEEMS UNNECESSARY IN VIEW OF THOSE CONTAINED IN
THE APPLICATION MADE FOR THE ORIGINAL LICENSE  OR  PERMIT,  BUT  IN  ANY
EVENT  THE  SUBMISSION  OF PHOTOGRAPHS OF THE LICENSED PREMISES SHALL BE
DISPENSED WITH, PROVIDED THE APPLICANT FOR SUCH  RENEWAL  SHALL  FILE  A
STATEMENT  WITH  SUCH BUREAU TO THE EFFECT THAT THERE HAS BEEN NO ALTER-
ATION OF SUCH PREMISES SINCE THE  ORIGINAL  LICENSE  WAS  ISSUED.    THE
BUREAU  MAY  MAKE  SUCH  RULES AS MAY BE NECESSARY NOT INCONSISTENT WITH
THIS CHAPTER REGARDING APPLICATIONS FOR RENEWALS OF LICENSES AND PERMITS
AND THE TIME FOR MAKING THE SAME.   EACH APPLICANT MUST  SUBMIT  TO  THE
BUREAU  DOCUMENTATION OF THE RACIAL, ETHNIC, AND GENDER DIVERSITY OF THE
APPLICANT'S EMPLOYEES AND OWNERS PRIOR TO  A  LICENSE  OR  PERMIT  BEING
RENEWED.
  2.  THE  BUREAU  SHALL PROVIDE AN APPLICATION FOR RENEWAL OF A LICENSE
ISSUED UNDER THIS ARTICLE NOT LESS THAN SIXTY DAYS PRIOR TO THE  EXPIRA-
TION OF THE CURRENT LICENSE.

S. 3040--C                         38

  §  184.  INFORMATION  TO  BE PROVIDED BY APPLICANTS.  1. THE FOLLOWING
SHALL BE THE INFORMATION REQUIRED ON AN APPLICATION  FOR  A  LICENSE  OR
PERMIT:
  (A) A STATEMENT OF IDENTITY AS FOLLOWS:
  (I) IF THE APPLICANT IS AN INDIVIDUAL, HIS OR HER NAME, DATE AND PLACE
OF  BIRTH,  CITIZENSHIP,  PERMANENT  HOME  ADDRESS, TELEPHONE NUMBER AND
SOCIAL SECURITY NUMBER, AS WELL AS ANY OTHER NAMES BY WHICH  HE  OR  SHE
HAS CONDUCTED A BUSINESS AT ANY TIME.
  (II)  IF  THE APPLICANT IS A CORPORATION OR A LIMITED LIABILITY CORPO-
RATION, THE CORPORATE NAME OF THE APPLICANT, ITS PLACE OF INCORPORATION,
ITS MAIN BUSINESS ADDRESS (AND IF SUCH  MAIN  BUSINESS  ADDRESS  IS  NOT
WITHIN  THE  STATE, THE ADDRESS OF ITS MAIN PLACE OF BUSINESS WITHIN THE
STATE), OTHER NAMES BY WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS
AT ANY TIME, ITS TELEPHONE NUMBER, ITS FEDERAL  EMPLOYER  IDENTIFICATION
NUMBER,  AND  THE NAMES, AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES
OF ITS DIRECTORS, OFFICERS AND ITS SHAREHOLDERS (EXCEPT THAT IF THERE BE
MORE THAN TEN SHAREHOLDERS THEN THOSE SHAREHOLDERS HOLDING  TEN  PERCENT
OR MORE OF ANY CLASS OF ITS SHARES).
  (III)  IF  THE APPLICANT IS A PARTNERSHIP, ITS NAME, ITS MAIN BUSINESS
ADDRESS (AND IF SUCH MAIN BUSINESS ADDRESS IS NOT WITHIN THE STATE,  THE
ADDRESS  OF ITS MAIN PLACE OF BUSINESS WITHIN THE STATE), OTHER NAMES BY
WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELE-
PHONE NUMBER, ITS FEDERAL EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES,
AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES OF EACH OF ITS PARTNERS.
  (B) A STATEMENT IDENTIFYING THE STREET AND NUMBER OF THE  PREMISES  TO
BE LICENSED, IF THE PREMISES HAS A STREET AND NUMBER, AND OTHERWISE SUCH
DESCRIPTION AS WILL REASONABLY INDICATE THE TOWN, CITY OR VILLAGE THERE-
OF;  PHOTOGRAPHS,  DRAWINGS  OR OTHER ITEMS RELATED TO THE APPEARANCE OF
THE INTERIOR OR EXTERIOR OF SUCH PREMISES, AND A FLOOR PLAN OF THE INTE-
RIOR, SHALL BE REQUIRED. THE APPLICANT SHALL ALSO STATE  THE  NATURE  OF
HIS  OR  HER  INTEREST IN THE PREMISES; AND THE NAME OF ANY OTHER PERSON
INTERESTED AS A PARTNER, JOINT VENTURER, INVESTOR  OR  LENDER  WITH  THE
APPLICANT EITHER IN THE PREMISES OR IN THE BUSINESS TO BE LICENSED.
  (C)  A DESCRIPTION OF ANY OTHER MARIHUANA LICENSE OR PERMIT UNDER THIS
ARTICLE, WITHIN THE PAST TEN YEARS, THE APPLICANT (INCLUDING  ANY  OFFI-
CERS,  DIRECTORS,  SHAREHOLDERS  OR  PARTNERS LISTED IN THE STATEMENT OF
IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION OR THE  SPOUSE  OF  ANY
SUCH PERSON) OR THE APPLICANT'S SPOUSE HELD OR APPLIED FOR.
  (D)  A  DESCRIPTION  OF THE APPLICANT'S PLAN TO ENSURE DIVERSITY AMONG
THE APPLICANT'S EMPLOYEES, INCLUDING STRATEGIES FOR ENSURING:
  (I) GENDER DIVERSITY;
  (II) RACIAL AND ETHNIC DIVERSITY THAT REFLECTS THE DEMOGRAPHICS WITHIN
THE TOWN, CITY OR VILLAGE IN WHICH  THE  APPLICANT'S  PROPOSED  BUSINESS
WILL BE LOCATED; AND
  (III) THAT PERSONS WITH PRIOR CRIMINAL CONVICTIONS ARE NOT BARRED FROM
EMPLOYMENT.
  (E) FOR AN APPLICANT WITH MORE THAN TWENTY-FIVE EMPLOYEES, A STATEMENT
THAT THE APPLICANT HAS ENTERED INTO A LABOR PEACE AGREEMENT WITH A BONA-
FIDE  LABOR  ORGANIZATION  THAT  IS  ACTIVELY ENGAGED IN REPRESENTING OR
ATTEMPTING TO REPRESENT THE APPLICANT'S EMPLOYEES.  THE  MAINTENANCE  OF
SUCH  A  LABOR PEACE AGREEMENT SHALL BE AN ONGOING MATERIAL CONDITION OF
CERTIFICATION.
  (F) A STATEMENT THAT THE LOCATION AND LAYOUT OF  THE  PREMISES  TO  BE
LICENSED  DOES  NOT  VIOLATE ANY REQUIREMENT OF THIS CHAPTER RELATING TO
LOCATION AND LAYOUT OF LICENSED PREMISES, WITH A COPY OF THE CERTIFICATE
OF OCCUPANCY FOR THE PREMISES.

S. 3040--C                         39

  (G) A STATEMENT THAT THE APPLICANT HAS CONTROL OF THE PREMISES  TO  BE
LICENSED  BY  OWNERSHIP OF A FEE INTEREST OR VIA A LEASEHOLD, MANAGEMENT
AGREEMENT, OR OTHER AGREEMENT GIVING  THE  APPLICANT  CONTROL  OVER  THE
PREMISES,  WITH  A  TERM  AT  LEAST AS LONG AS THE LICENSE FOR WHICH THE
APPLICATION  IS BEING MADE, OR BY A BINDING CONTRACT TO ACQUIRE THE SAME
AND A STATEMENT OF IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION  FOR
THE  LESSOR  OF  ANY  LEASEHOLD, MANAGER OF ANY MANAGEMENT AGREEMENT, OR
OTHER AGREEMENT GIVING THE APPLICANT CONTROL OVER THE PREMISES,  WITH  A
COPY  OF  THE  LEASE, CONTRACT, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT
GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES,
OR DEED EVIDENCING FEE OWNERSHIP OF THE PREMISES.
  (H) A FINANCIAL STATEMENT ADEQUATE TO SHOW ALL PERSONS  WHO,  DIRECTLY
OR INDIRECTLY HAVE AN ECONOMIC INTEREST IN THE ESTABLISHMENT OR ACQUISI-
TION  OF  THE  BUSINESS  FOR  WHICH THE LICENSE OR PERMIT APPLICATION IS
BEING MADE, TO IDENTIFY THE SOURCES OF  FUNDS  TO  BE  APPLIED  IN  SUCH
ESTABLISHMENT  OR  ACQUISITION, AND

The New York State Senate

senate Bill S3040C

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

Your Voice

Actions

Bill Amendments

Co-Sponsors

S3040 - Details

S3040 - Summary

S3040 - Sponsor Memo

S3040 - Bill Text download pdf

Co-Sponsors

S3040A - Details

S3040A - Summary

S3040A - Sponsor Memo

S3040A - Bill Text download pdf

Co-Sponsors

S3040B - Details

S3040B - Summary

S3040B - Sponsor Memo

S3040B - Bill Text download pdf

Co-Sponsors

S3040C (ACTIVE) - Details

S3040C (ACTIVE) - Summary

S3040C (ACTIVE) - Sponsor Memo

S3040C (ACTIVE) - Bill Text download pdf

senate Bill S3040C

Share this bill

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

Your Voice

Actions

Bill Amendments

Co-Sponsors

S3040 - Details

S3040 - Summary

S3040 - Sponsor Memo

S3040 - Bill Text download pdf

Co-Sponsors

S3040A - Details

S3040A - Summary

S3040A - Sponsor Memo

S3040A - Bill Text download pdf

Co-Sponsors

S3040B - Details

S3040B - Summary

S3040B - Sponsor Memo

S3040B - Bill Text download pdf

Co-Sponsors

S3040C (ACTIVE) - Details

S3040C (ACTIVE) - Summary

S3040C (ACTIVE) - Sponsor Memo

S3040C (ACTIVE) - Bill Text download pdf