Senate Bill S5641

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5641
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 26, 2025
                                ___________
 
 Introduced   by   Sens.  BAILEY,  ADDABBO,  COMRIE,  COONEY,  FERNANDEZ,
   GOUNARDES, HARCKHAM, HINCHEY, HOYLMAN-SIGAL, KAVANAGH, KRUEGER, MYRIE,
   SALAZAR, SANDERS,  SCARCELLA-SPANTON,  SEPULVEDA  --  read  twice  and
   ordered  printed, and when printed to be committed to the Committee on
   Budget and Revenue

 AN ACT to amend the tax law and the alcoholic beverage control  law,  in
   relation  to  the  suspension  or  revocation  of certain licenses for
   violations of the cannabis law
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Paragraph (a) of subdivision 4 of section 480-a of the tax
 law, as amended by section 4 of part I of chapter  59  of  the  laws  of
 2020, is amended to read as follows:
   (a)  If  a  retail  dealer  possesses or sells unstamped or unlawfully
 stamped packages of cigarettes, or if a retail dealer is  also  licensed
 as an agent pursuant to section four hundred seventy-two OF THIS ARTICLE
 and  it  possesses  unlawfully  stamped  packages of cigarettes or sells
 unstamped or unlawfully stamped packages of cigarettes at retail, OR  IF
 A  RETAIL DEALER OR AN AGENT UNDER THIS ARTICLE POSSESSES ILLICIT CANNA-
 BIS AS DEFINED IN SECTION ONE HUNDRED THIRTY-SIX OF THE CANNABIS LAW  OR
 IS  IN VIOLATION OF SECTION ONE HUNDRED TWENTY-FIVE OF THE CANNABIS LAW,
 (i) its registration UNDER THIS ARTICLE shall be revoked for a period of
 one year, or (ii) for a second such possession or sale OR  VIOLATION  OF
 THE CANNABIS LAW within a period of five years by a retail dealer or any
 affiliated  person  of  such  retail dealer, the registration UNDER THIS
 ARTICLE of such retail dealer and the registration of any retail  dealer
 that  is an affiliated person of such retail dealer shall be revoked for
 a period of three years, or (iii) for a third such possession or sale OR
 VIOLATION OF THE CANNABIS LAW within a period of five years by a  retail
 dealer  or any affiliated person of such retail dealer, the registration
 UNDER THIS ARTICLE of such retail dealer and  the  registration  of  any
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10253-01-5
              

 S. 5641                             2
 
 retail  dealer  that is an affiliated person of such retail dealer shall
 be revoked for a period of five  years.  A  retail  dealer  registration
 shall  be  revoked  pursuant  to  this subdivision immediately upon such
 dealer's  receipt of written notice of revocation from the commissioner.
 If unstamped or unlawfully stamped cigarettes, OR ILLICIT CANNABIS,  are
 found  in  a  retail dealer's warehouse or a warehouse of any affiliated
 person of such retail dealer, the  revocation  of  the  retail  dealer's
 registration  pursuant  to  this subdivision shall be applicable to each
 retail place of business in this state through which such retail  dealer
 and any affiliated person of such retail dealer sells cigarettes.
   §  2.  Subdivision  1 of section 118 of the alcoholic beverage control
 law, as amended by chapter 536 of the laws of 1996, is amended  to  read
 as follows:
   1.  Any  license  or  permit  issued  pursuant  to this chapter 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] THEIR agent or
 employee for selling any illegal alcoholic  beverages  on  the  premises
 licensed.
   (b) For transferring, assigning or hypothecating a license or permit.
   (C)  A VIOLATION OF SUBDIVISION ONE OF SECTION ONE HUNDRED TWENTY-FIVE
 OF THE CANNABIS LAW, OR THE SALE OR POSSESSION OF  ILLICIT  CANNABIS  AS
 DEFINED IN SECTION ONE HUNDRED THIRTY-SIX OF SUCH LAW.
   §  3.  Section 1607 of the tax law is amended by adding a new subdivi-
 sion i to read as follows:
   I. A VIOLATION OF SECTION ONE HUNDRED TWENTY-FIVE OF THE CANNABIS LAW;
 PROVIDED THAT A LICENSE SHALL BE REVOKED UPON A FINDING THAT SUCH LICEN-
 SEE POSSESSED OR SOLD  ILLICIT  CANNABIS,  AS  DEFINED  IN  SECTION  ONE
 HUNDRED THIRTY-SIX OF THE CANNABIS LAW.
   § 4. This act shall take effect immediately.