Assembly Bill A2580

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2580
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2025
                                ___________
 
 Introduced by M. of A. K. BROWN -- read once and referred to the Commit-
   tee 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03093-01-5
 A. 2580                             2
              

 
   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
 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 18 to read as follows:
   18.  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.