NY State Senate Bill S9452

Archive: Last Bill Status - Passed Senate

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

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Actions

view actions (6)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 01, 2022	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1801 committee discharged and committed to rules
May 29, 2022	referred to investigations and government operations

Votes

Co-Sponsors

S9452 (ACTIVE) - Details

Law Section:: Tax Law
Laws Affected:: Amd §§494 & 496-c, add §§496-d & 1814-b, Tax L; amd §16, Cannabis L; amd §222.00, Pen L
Versions Introduced in 2023-2024 Legislative Session:: S159

S9452 (ACTIVE) - Summary

Authorizes the commissioner of taxation and finance to revoke the certificate of registration of the sale of adult-use cannabis; increases certain penalties relating to the sale of illicit cannabis; authorizes the commissioner of taxation and finance and the duly authorized representatives of the office of cannabis management to provide enforcement; makes it a class A misdemeanor for a distributor of adult-use cannabis products or a retail seller of adult-use cannabis products to sell any such products while not registered to do so.

S9452 (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S9452

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the tax law, in relation to making certain technical
corrections to tax on adult-use cannabis pursuant to article 20-C of
such law; to amend the cannabis law, in relation to certain penalties;
and to amend the penal law, in relation to clarifying the definition of
selling cannabis

 
SUMMARY OF PROVISIONS:

Section 1: Amends subdivisions (b) and (f) of section 494 of the Tax Law
to give the Tax department the power to revoke the certificate to
collect the adult use cannabis tax if: An individual has another canna-
bis tax registration suspended or revoked, are convicted of a crime
under the Tax Law, or if they willfully fail to collect tax, fail to
file a required report, or file a false report or other instrument. The
Tax Department is also granted the authority to revoke the certificate
of authority to collect sales taxes from anyone found possessing or
selling illicit cannabis

Section 2: Amends section 496-c of the Tax Law, to double the current
civil penalties for possessing illicit cannabis. This section also gives
the Tax Department and the Office of Cannabis Management (OCM) the power
to seize illicit cannabis from any person engaged in the cultivation,
processing, distribution, storage or sale of adult-use cannabis, or from
any vehicle, or location, or person in control of such vehicle or
location, that is connected to the cultivation, processing, distrib-
ution, storage or sale of adult-use cannabis.

Section 3: Article 20-c of the Tax Law is amended by adding new section
496-d, an Enforcement section. This section declares that it is the
intent of the legislature for the adult cannabis industry to be a highly
regulated industry and gives the Tax Department or OCM the power to
conduct regulatory inspections of places or vehicles connected to the
cultivation, processing, distribution, storage or sale of adult-use
cannabis, or inspect the books and records of any person involved in the
cultivation, processing, distribution, storage or sale of adult-use
cannabis.

Section 4: Article 37 of the Tax Law is amended by adding new section
1814-3 that makes selling illicit cannabis by someone who is not regis-
tered and should have been registered under the Tax law a class A misde-
meanor. Someone who violates this provision within five years of having
previously been convicted of it would be guilty of an E felony.

Section 5: Amends subdivision 1 of section 16 of the Cannabis Law, to
increase the possible civil penalty allowed for anyone who violates,
disobeys or disregards any portion of the Cannabis Law or a lawful
notice provided to them in a case where another civil or criminal penal-
ty is not already laid out in statute. Currently the civil penalty
cannot exceed $5,000. This would amend that to say such a penalty can be
up to $50,000.

Section 6: Amends Subdivision 3 of section 222.00 of the Penal Law,
changing the definition of what it means to sell cannabis in order to
capture situations in which cannabis is exchanged or bartered for
commodity, object or anything of any type, rent, lease or license to use
or consume conditional or otherwise, in any manner or by any means what-
soever for a consideration or any agreement therefore, or dispose of the
cannabis for compensation, including through a membership program or
through some other indirect means.

 
JUSTIFICATION:

This legislation is necessary to improve the enforcement of prohibitions
against selling untaxed adult-use cannabis, including by entities lack-
ing the appropriate registration necessary from the Department of Tax
and Finance, and to provide the Tax Department and the Office of Canna-
bis Management with the ability to safeguard the upcoming legal adult-
use cannabis market.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately.

S9452 (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9452
 
                             I N  S E N A T E
 
                               May 29, 2022
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law, in relation  to  making  certain  technical
   corrections  to  tax on adult-use cannabis pursuant to article 20-C of
   such law; to amend the cannabis law, in relation to certain penalties;
   and to amend the penal law, in relation to clarifying  the  definition
   of selling cannabis
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (b) of section 494 of the tax law, as added  by
 chapter 92 of the laws of 2021, is amended to read as follows:
   (b)  [(1)]  The  commissioner  shall  refuse to issue a certificate of
 registration to any applicant and shall revoke the certificate of regis-
 tration of any such person who does not possess a valid license from the
 office of cannabis management. (1) The commissioner may refuse to  issue
 a  certificate  of  registration  to any applicant where such applicant:
 (i) has a past-due liability as that term  is  defined  in  section  one
 hundred  seventy-one-v  of  this  chapter; (ii) has had a certificate of
 registration under this article, a license from the office  of  cannabis
 management,  or any license or registration provided for in this chapter
 revoked or suspended where such revocation or suspension was  in  effect
 on  the date the application was filed or ended within one year from the
 date on which such application was filed; (iii) has been convicted of  a
 crime  provided  for  in  this  chapter within one year from the date on
 which such application was filed  or  the  certificate  was  issued,  as
 applicable;  (iv) willfully fails to file a report or return required by
 this article; (v) willfully files, causes to be filed, gives  or  causes
 to  be given a report, return, certificate or affidavit required by this
 article which is false; or (vi) willfully fails to collect or truthfully
 account for or pay over any tax imposed by this article.
   (2) THE COMMISSIONER MAY REVOKE THE CERTIFICATE OF REGISTRATION ISSUED
 TO ANY PERSON WHO:  (I) HAS HAD A CERTIFICATE OF REGISTRATION UNDER THIS
 ARTICLE, OR ANY LICENSE OR REGISTRATION PROVIDED  FOR  IN  THIS  CHAPTER
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16016-01-2
 S. 9452                             2
 
 REVOKED OR SUSPENDED; (II) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN
 THIS  CHAPTER; (III) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED
 BY THIS ARTICLE; (IV) WILLFULLY FILES, CAUSES  TO  BE  FILED,  GIVES  OR
 CAUSES  TO  BE GIVEN A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED
 BY THIS ARTICLE WHICH IS FALSE; OR (V) WILLFULLY  FAILS  TO  COLLECT  OR
 TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE.
   (3) In addition to the grounds for revocation in [paragraph (1)] PARA-
 GRAPHS  ONE  AND  TWO  of  this  subdivision, where a person who holds a
 certificate of registration is determined  to  have  possessed  or  sold
 illicit cannabis: [(1)] (I) such registration may be revoked for a peri-
 od  of  up to one year for the first such possession or sale; [(2)] (II)
 for a second such possession or sale within a period of  five  years  by
 such person, the registration of such person may be revoked for a period
 of  up  to  three years; [(3)] (III) for a third such possession or sale
 within a period of up to five years by such person, the registration  of
 such  person may be revoked for a period of five years. A certificate of
 registration may be revoked pursuant to this paragraph immediately  upon
 such  person's  receipt of written notice of revocation from the commis-
 sioner.
   (4) WHERE A PERSON WHO HAS BEEN DETERMINED TO HAVE POSSESSED  OR  SOLD
 ILLICIT  CANNABIS  DOES  NOT POSSESS A CERTIFICATE OF REGISTRATION UNDER
 THIS SECTION, THE COMMISSIONER MAY REVOKE  A  CERTIFICATE  OF  AUTHORITY
 ISSUED  TO SUCH PERSON PURSUANT TO SECTION ELEVEN HUNDRED THIRTY-FOUR OF
 THIS CHAPTER. SUCH CERTIFICATE MAY BE REVOKED: (I) FOR A PERIOD OF UP TO
 ONE YEAR FOR THE FIRST SUCH POSSESSION OR SALE; (II) FOR A  SECOND  SUCH
 POSSESSION  OR  SALE  WITHIN  A PERIOD OF FIVE YEARS BY SUCH PERSON, THE
 REGISTRATION OF SUCH PERSON MAY BE REVOKED FOR A PERIOD OF UP  TO  THREE
 YEARS;  (III)  FOR A THIRD SUCH POSSESSION OR SALE WITHIN A PERIOD OF UP
 TO FIVE YEARS BY SUCH PERSON, THE REGISTRATION OF  SUCH  PERSON  MAY  BE
 REVOKED FOR A PERIOD OF FIVE YEARS.
   §  2. Section 496-c of the tax law, as added by chapter 92 of the laws
 of 2021, is amended to read as follows:
   § 496-c. Illicit cannabis penalty. (a) In addition to any other  civil
 or criminal penalties that may apply, any person knowingly in possession
 of  or  knowingly  having  control  over illicit cannabis, as defined in
 section four hundred ninety-two of this article,  after  notice  and  an
 opportunity  for  a  hearing, shall be liable for a civil penalty of not
 less than [two] FOUR hundred dollars per ounce of illicit cannabis flow-
 er, [five] TEN dollars per milligram of the total weight of any  illicit
 cannabis  edible  product,  [fifty]  ONE HUNDRED dollars per gram of the
 total weight of any product containing illicit cannabis concentrate, and
 [five hundred] ONE THOUSAND dollars per illicit cannabis plant, but  not
 to  exceed  [four]  EIGHT  hundred dollars per ounce of illicit cannabis
 flower, [ten] TWENTY dollars per milligram of the total  weight  of  any
 illicit  cannabis  edible product, [one] TWO hundred dollars per gram of
 the total weight of any product containing illicit cannabis concentrate,
 and [one] TWO thousand dollars per illicit cannabis plant  for  a  first
 violation,  and for a second and subsequent violation within three years
 following a prior violation shall be liable for a civil penalty  of  not
 less  than  [four]  EIGHT  hundred dollars per ounce of illicit cannabis
 flower, [ten] TWENTY dollars per milligram of the total  weight  of  any
 illicit  cannabis  edible product, [one] TWO hundred dollars per gram of
 the total weight of any product containing illicit cannabis concentrate,
 and [one] TWO thousand dollars per illicit cannabis plant,  but  not  to
 exceed [five hundred] ONE THOUSAND dollars per ounce of illicit cannabis
 flower,  [twenty] FORTY dollars per milligram of the total weight of any
 S. 9452                             3
 
 illicit cannabis edible product, [two] FOUR hundred dollars per gram  of
 the total weight of any product containing illicit cannabis concentrate,
 and [two] FOUR thousand dollars per illicit cannabis plant.
   (b)  No enforcement action taken under this section shall be construed
 to limit any other criminal or civil liability of anyone  in  possession
 of illicit cannabis.
   (c)  The  penalty  imposed  by this section shall not apply to persons
 lawfully in possession of less than two ounces of adult-use cannabis  or
 ten  grams  of concentrated cannabis in accordance with the cannabis law
 or penal law.
   (D) THE COMMISSIONER OR HIS OR HER DULY AUTHORIZED REPRESENTATIVES, OR
 THE DULY AUTHORIZED REPRESENTATIVES OF THE OFFICE  OF  CANNABIS  MANAGE-
 MENT,  SHALL  SEIZE  ANY ILLICIT CANNABIS FOUND ON ANY PERSON ENGAGED IN
 THE CULTIVATION, PROCESSING, DISTRIBUTION OR SALE OF ADULT-USE  CANNABIS
 PRODUCTS;  OR  IN  ANY  PREMISES  OR  VEHICLE  WHERE  ADULT-USE CANNABIS
 PRODUCTS ARE CULTIVATED, PROCESSED, DISTRIBUTED, PLACED, STORED, SOLD OR
 OFFERED FOR SALE; OR ON ANY PERSON IN POSSESSION, CONTROL  OR  OCCUPANCY
 OF SUCH PREMISES OR VEHICLE.
   §  3.  The tax law is amended by adding a new section 496-d to read as
 follows:
   § 496-D. ENFORCEMENT. FOR PURPOSES OF THE EFFICIENT ADMINISTRATION  OF
 THE  TAXES  IMPOSED BY THIS ARTICLE, IT IS THE INTENT OF THE LEGISLATURE
 THAT THE CULTIVATION, PROCESSING, DISTRIBUTION  AND  SALE  OF  ADULT-USE
 CANNABIS  PRODUCTS  BE  DEEMED  A HEAVILY REGULATED INDUSTRY, SUBJECT TO
 SUPERVISION BY THE COMMISSIONER AND THE OFFICE OF  CANNABIS  MANAGEMENT.
 THE  COMMISSIONER OR HIS OR HER DULY AUTHORIZED REPRESENTATIVES, AND THE
 DULY AUTHORIZED REPRESENTATIVES OF THE OFFICE OF CANNABIS MANAGEMENT ARE
 HEREBY AUTHORIZED: (1) TO CONDUCT REGULATORY  INSPECTIONS  IN  THE  SAME
 MANNER  AS  A  REGULATORY  INSPECTION PURSUANT TO ARTICLE TWENTY OF THIS
 CHAPTER OF ANY PERSON ENGAGED IN THE CULTIVATION,  PROCESSING,  DISTRIB-
 UTION  OR  SALE  OF ADULT-USE CANNABIS PRODUCTS, ANY PREMISES OR VEHICLE
 WHERE ADULT-USE CANNABIS IS CULTIVATED, PROCESSED, DISTRIBUTED,  PLACED,
 STORED,  SOLD OR OFFERED FOR SALE, AND ANY PERSON IN POSSESSION, CONTROL
 OR OCCUPANCY OF SUCH PREMISES OR VEHICLE;  (2)  TO  EXAMINE  THE  BOOKS,
 PAPERS,  INVOICES  AND OTHER RECORDS OF ANY PERSON ENGAGED IN THE CULTI-
 VATION, PROCESSING, DISTRIBUTION OR SALE OF ADULT-USE CANNABIS PRODUCTS,
 ANY PREMISES OR VEHICLE WHERE ADULT-USE  CANNABIS  PRODUCTS  ARE  CULTI-
 VATED,  PROCESSED, DISTRIBUTED, PLACED, STORED, SOLD OR OFFERED FOR SALE
 AND ANY PERSON IN POSSESSION, CONTROL OR OCCUPANCY OF ANY PREMISES WHERE
 ADULT-USE CANNABIS PRODUCTS ARE PLACED,  STORED,  SOLD  OR  OFFERED  FOR
 SALE.  EACH  SUCH  PERSON IS HEREBY DIRECTED AND REQUIRED UPON DEMAND TO
 GIVE TO THE COMMISSIONER OR HIS OR HER DULY AUTHORIZED  REPRESENTATIVES,
 OR THE DULY AUTHORIZED REPRESENTATIVES OF THE OFFICE OF CANNABIS MANAGE-
 MENT, THE MEANS, FACILITIES AND OPPORTUNITY FOR SUCH EXAMINATIONS.
   §  4. The tax law is amended by adding a new section 1814-b to read as
 follows:
   § 1814-B. PENALTIES. ANY PERSON REQUIRED TO BE REGISTERED PURSUANT  TO
 ARTICLE  TWENTY-C OF THIS CHAPTER AS A DISTRIBUTOR OF ADULT-USE CANNABIS
 PRODUCTS, OR AS A RETAIL SELLER  OF  ADULT-USE  CANNABIS  PRODUCTS,  WHO
 SELLS  ADULT-USE  CANNABIS  PRODUCTS  WHILE  NOT SO REGISTERED, SHALL BE
 GUILTY OF A CLASS A MISDEMEANOR. ANY PERSON WHO VIOLATES  THE  PROVISION
 OF THIS SECTION AFTER HAVING PREVIOUSLY BEEN CONVICTED OF A VIOLATION OF
 THIS  SECTION WITHIN THE PRECEDING FIVE YEARS SHALL BE GUILTY OF A CLASS
 E FELONY. FOR PURPOSES OF THIS SECTION, THE  TERMS  "ADULT-USE  CANNABIS
 PRODUCT"  AND  "SALE"  SHALL  HAVE  THE  SAME  MEANING AS SUCH TERMS ARE
 DEFINED IN ARTICLE TWENTY-C OF THIS CHAPTER.
 S. 9452                             4
 
   § 5. Subdivision 1 of section 16 of the cannabis  law  is  amended  to
 read as follows:
   1.  Any  person  who  violates,  disobeys  or  disregards  any term or
 provision of this chapter or of any lawful notice, order  or  regulation
 pursuant  thereto for which a civil or criminal penalty is not otherwise
 expressly prescribed by law, shall be liable to the people of the  state
 for a civil penalty of [not to exceed five] UP TO FIFTY thousand dollars
 for every such violation.
   §  6.  Subdivision  3  of section 222.00 of the penal law, as added by
 chapter 92 of the laws of 2021, is amended to read as follows:
   3. For the purposes of this article, "sell" shall mean to sell, TRANS-
 FER TITLE OR POSSESS OR BOTH, exchange OR BARTER ANY  COMMODITY,  OBJECT
 OR  ANY  THING  OF  ANY  TYPE,  RENT, LEASE OR LICENSE TO USE OR CONSUME
 CONDITIONAL OR OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A
 CONSIDERATION OR ANY AGREEMENT THEREFOR, or dispose of for compensation,
 INCLUDING THROUGH A MEMBERSHIP PROGRAM OR THROUGH  SOME  OTHER  INDIRECT
 MEANS.    "Sell"  shall  not include the transfer of cannabis or concen-
 trated cannabis between persons twenty-one years of age or older without
 compensation in the quantities authorized in paragraph (b)  of  subdivi-
 sion one of section 222.05 of this article.
   § 7. This act shall take effect immediately.

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The New York State Senate

senate Bill S9452

Sponsored By

Archive: Last Bill Status - Passed Senate

Your Voice

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Votes

Jun 1, 2022 - floor Vote

Floor Vote: Jun 1, 2022

Jun 1, 2022 - Rules committee Vote

Rules Committee Vote: Jun 1, 2022

Co-Sponsors

S9452 (ACTIVE) - Details

S9452 (ACTIVE) - Summary

S9452 (ACTIVE) - Sponsor Memo

S9452 (ACTIVE) - Bill Text download pdf

Comments

senate Bill S9452

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Sponsored By

Liz Krueger

Archive: Last Bill Status - Passed Senate

Your Voice

Actions

Votes

Jun 1, 2022 - floor Vote

Floor Vote: Jun 1, 2022

Jun 1, 2022 - Rules committee Vote

Rules Committee Vote: Jun 1, 2022

Co-Sponsors

Brad Hoylman-Sigal

S9452 (ACTIVE) - Details

S9452 (ACTIVE) - Summary

S9452 (ACTIVE) - Sponsor Memo

S9452 (ACTIVE) - Bill Text download pdf

Comments