Assembly Bill A10659

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10659
 
                           I N  A S S E M B L Y
 
                              March 19, 2026
                                ___________
 
 Introduced  by M. of A. STECK, K. BROWN -- read once and referred to the
   Committee on Governmental Operations
 
 AN ACT to amend the cannabis law, the state finance law and  the  execu-
   tive  law,  in  relation  to  requiring  the state comptroller and the
   attorney general to conduct an annual audit of the office of  cannabis
   management

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The cannabis law is amended by adding a new section 140  to
 read as follows:
   §  140. INDEPENDENT AUDIT OF THE OFFICE OF CANNABIS MANAGEMENT.  1. AT
 LEAST ONCE EVERY YEAR, THE COMPTROLLER, THE  ATTORNEY  GENERAL  AND  THE
 INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANTS  SELECTED  PURSUANT  TO THIS
 SECTION SHALL CONDUCT AUDITS OF THE INTERNAL CONTROLS OF THE  OFFICE  OF
 CANNABIS  MANAGEMENT.  SUCH AUDITS SHALL BE PERFORMED IN ACCORDANCE WITH
 GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS  AND  SHALL  INCLUDE  A
 REPORT  ON  WHETHER  THE  OFFICE'S INTERNAL CONTROLS ARE ESTABLISHED AND
 FUNCTIONING IN A MANNER THAT PROVIDES  REASONABLE  ASSURANCE  THAT  THEY
 MEET  THE  OBJECTIVES  OF  INTERNAL  CONTROL  AS DEFINED IN SECTION NINE
 HUNDRED FIFTY OF THE EXECUTIVE LAW. THE REPORT SHALL IDENTIFY THE INTER-
 NAL CONTROLS BOTH EVALUATED AND NOT EVALUATED AND SHALL IDENTIFY  INTER-
 NAL CONTROL WEAKNESSES THAT HAVE NOT BEEN CORRECTED AND ACTIONS THAT ARE
 RECOMMENDED  TO  CORRECT  THESE WEAKNESSES. IF ANY SUCH INTERNAL CONTROL
 WEAKNESSES ARE SIGNIFICANT OR MATERIAL WITH RESPECT TO SUCH DEPARTMENTS,
 THE INDEPENDENT AUDITORS SHALL SO STATE. THE COMPTROLLER AND THE  ATTOR-
 NEY  GENERAL  SHALL  MAKE  AVAILABLE  TO  THE PUBLIC THE RESULTS OF SUCH
 AUDITS, INCLUDING ANY RELATED MANAGEMENT LETTERS.  THE  COMPTROLLER  AND
 ATTORNEY  GENERAL  AND ANY OFFICER OR EMPLOYEE OF SUCH DEPARTMENTS SHALL
 MAKE  AVAILABLE  UPON  REQUEST  TO  SUCH  INDEPENDENT  CERTIFIED  PUBLIC
 ACCOUNTANTS ALL BOOKS AND RECORDS RELEVANT TO SUCH INDEPENDENT AUDITS.
   2.  THE  COMPTROLLER  AND THE ATTORNEY GENERAL SHALL REQUEST PROPOSALS
 FROM INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS FOR AUDITS OF THE INTERNAL
 CONTROLS OF THEIR RESPECTIVE DEPARTMENTS.  THE  REQUESTS  FOR  PROPOSALS
 SHALL  INCLUDE  A  REFERENCE  TO  THE  REQUIREMENTS FOR AUDITS CONDUCTED
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03093-02-6
 A. 10659                            2

 PURSUANT TO SUBDIVISION ONE OF THIS SECTION. THE COMPTROLLER AND  ATTOR-
 NEY  GENERAL SHALL SELECT SUCH INDEPENDENT AUDITORS IN ACCORDANCE WITH A
 COMPETITIVE PROCEDURE INCLUDING AN  EVALUATION,  BASED  ON  QUALITY  AND
 PRICE  FACTORS, OF THOSE PROPOSALS RECEIVED IN RESPONSE TO SUCH REQUESTS
 FOR PROPOSALS.
   3. WHENEVER THE COMPTROLLER OR THE COMPTROLLER'S APPOINTEE IS A MEMBER
 OF ANY BOARD, COMMISSION,  COMMITTEE,  COUNCIL,  OR  CORPORATION,  WHICH
 CONSTITUTES  A  STATE  AGENCY, THE GOVERNING BODY OF SUCH BOARD, COMMIS-
 SION, COMMITTEE, COUNCIL, OR CORPORATION  SHALL  SELECT  AN  INDEPENDENT
 AUDITOR  FOR  THE  PURPOSE  OF CONDUCTING AUDITS OF INTERNAL CONTROLS IN
 ACCORDANCE WITH THIS SECTION.
   § 2. Section 10 of the cannabis law is amended by adding a new  subdi-
 vision 17-a to read as follows:
   17-A.  SHALL MAKE AVAILABLE UPON REQUEST TO THE STATE COMPTROLLER, THE
 ATTORNEY  GENERAL  AND  THE  INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANTS
 COMPLETING  ANNUAL  AUDITS PURSUANT TO SECTION ONE HUNDRED FORTY OF THIS
 CHAPTER ALL BOOKS AND RECORDS RELEVANT TO SUCH INDEPENDENT AUDITS.
   § 3. Paragraph a of subdivision 2-b of section 8 of the state  finance
 law,  as added by chapter 510 of the laws of 1999, is amended to read as
 follows:
   a. Either as part of one or more  audits,  or  separately,  conducting
 periodic  audits  of  internal controls and operations of state agencies
 (other than those state agencies for which an audit is required pursuant
 to sections nine hundred fifty-three and nine hundred fifty-four of  the
 executive  law)  and  of  covered authorities.   AUDITS OF THE OFFICE OF
 CANNABIS MANAGEMENT SHALL BE CONDUCTED ANNUALLY PURSUANT TO SECTION  ONE
 HUNDRED FORTY OF THE CANNABIS LAW. All such audits shall be performed in
 accordance  with generally accepted government auditing standards. Noth-
 ing in the New York state governmental accountability, audit and  inter-
 nal  control act shall be deemed to diminish or impair the comptroller's
 power to audit and authority to supervise accounts under articles V  and
 X  of the state constitution and this chapter. The audits shall identify
 internal control weaknesses that have not  been  corrected  and  actions
 that  are  recommended to correct these weaknesses. If any such internal
 control weaknesses are significant or material with respect to the oper-
 ations of the agency that is the subject of the audit,  the  comptroller
 shall  so  state. The comptroller shall make available to the public the
 results of any such audits.
   § 4. Section 63 of the executive law is amended by adding a new subdi-
 vision 19 to read as follows:
   19. CONDUCT AN ANNUAL AUDIT  OF  THE  OFFICE  OF  CANNABIS  MANAGEMENT
 PURSUANT  TO THE PROVISIONS OF SECTION ONE HUNDRED FORTY OF THE CANNABIS
 LAW.
   § 5. This act shall take effect immediately.