BEVERAGES NOR INCLUDE A RATIO OF ANY NON-THC CANNABINOID, INCLUDING BUT
NOT LIMITED TO CANNABIDIOL (CBD), TO THC PER SERVING OR CONTAINER.
§ 4. The cannabis law is amended by adding a new section 93-a to read
as follows:
§ 93-A. CANNABINOID HEMP BEVERAGE RETAILER LICENSE. 1. RETAILERS SELL-
ING CANNABINOID HEMP BEVERAGES, IN FINAL FORM TO CONSUMERS WITHIN THE
STATE, SHALL BE REQUIRED TO OBTAIN A CANNABINOID HEMP BEVERAGE RETAILER
LICENSE FROM THE BOARD.
2. RETAIL SALES SHALL BE RESTRICTED TO THE PREMISES OF THE CANNABINOID
HEMP BEVERAGE RETAILER LICENSEE. INDIRECT OR DIRECT DELIVERY OF CANNABI-
NOID HEMP BEVERAGES TO A CONSUMER IS PROHIBITED, UNLESS SUCH LICENSEE
ALSO POSSESSES AN ADULT-USE RETAIL DISPENSARY LICENSE AS PROVIDED UNDER
SECTION SEVENTY-TWO OF THIS CHAPTER.
3. LICENSES ISSUED UNDER THIS SECTION MAY BE ISSUED TO RETAILERS
LICENSED UNDER SECTIONS FIFTY-THREE AND SIXTY-THREE OF THE ALCOHOLIC
BEVERAGE CONTROL LAW, AND LICENSED ADULT-USE CANNABIS RETAILERS.
4. THE BOARD SHALL HAVE THE AUTHORITY TO SET REASONABLE FEES FOR SUCH
LICENSE, TO ESTABLISH THE PERIOD DURING WHICH SUCH LICENSE IS AUTHOR-
IZED, WHICH SHALL BE ONE YEAR OR MORE, AND TO MAKE RULES AND REGULATIONS
NECESSARY TO IMPLEMENT THIS SECTION.
5. CANNABINOID HEMP BEVERAGE RETAILERS SHALL ONLY SELL CANNABINOID
HEMP BEVERAGES MANUFACTURED, PACKAGED, LABELED AND TESTED IN ACCORDANCE
WITH THIS ARTICLE.
6. CANNABINOID HEMP BEVERAGE RETAILERS SHALL POST, VISIBLE TO CONSUM-
ERS, ALL SIGNS OR POSTED PLACARDS REQUIRED BY THE OFFICE, INCLUDING
POSTING OF THE CANNABINOID HEMP BEVERAGE RETAIL LICENSE ISSUED BY THE
OFFICE, IN A CONSPICUOUS LOCATION ON THE PREMISES OF EACH RETAIL
LOCATION.
7. CANNABINOID HEMP BEVERAGES SHALL BE DISPLAYED IN A MANNER THAT
DISTINGUISHES THEM FROM ANY AND ALL NON-CANNABINOID HEMP PRODUCTS, TO
AID CONSUMERS IN LOCATING CANNABINOID HEMP BEVERAGES AND AVOID ACCI-
DENTAL PURCHASE OR CONSUMPTION.
8. CANNABINOID HEMP BEVERAGE RETAILERS SHALL MAINTAIN SUFFICIENT
RECORDS OF WHERE CANNABINOID HEMP BEVERAGES WERE PURCHASED FOR THE
LICENSE PERIOD, INCLUDING THE NAME OF THE CANNABINOID HEMP BEVERAGE
PROCESSOR IF APPLICABLE, AND THE WHOLESALER OR PERMITTED DISTRIBUTOR IF
APPLICABLE.
9. THE OFFICE MAY INSPECT ANY RETAIL LOCATION OFFERING CANNABINOID
HEMP BEVERAGES. SUCH INSPECTION MAY INCLUDE, BUT NOT BE LIMITED TO,
TAKING SAMPLES OF CANNABINOID HEMP BEVERAGES TO ENSURE COMPLIANCE WITH
ALL THE REQUIREMENTS OF THIS ARTICLE.
§ 5. The cannabis law is amended by adding a new section 93-b to read
as follows:
§ 93-B. CANNABINOID HEMP BEVERAGE DISTRIBUTION LICENSE. 1. THE BOARD
SHALL HAVE THE AUTHORITY TO ISSUE LICENSES TO:
(A) DISTRIBUTE CANNABINOID HEMP BEVERAGES TO CANNABINOID HEMP BEVERAGE
RETAILERS WITHIN NEW YORK STATE; AND
(B) ANY OTHER ACTIVITY AS DETERMINED BY THE BOARD.
2. THE BOARD SHALL ISSUE A LICENSE TO ANY WHOLESALER LICENSED BY THE
STATE LIQUOR AUTHORITY, PURSUANT TO SECTION SIXTY-TWO OF THE ALCOHOLIC
BEVERAGE CONTROL LAW, TO DISTRIBUTE CANNABINOID HEMP BEVERAGES TO LICEN-
SEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES AT RETAIL PURSUANT TO
SECTION FIFTY-THREE AND SIXTY-THREE OF THE ALCOHOLIC BEVERAGE CONTROL
LAW, PROVIDED THAT SUCH RETAIL LICENSEE HAS BEEN ISSUED A CANNABINOID
HEMP BEVERAGE RETAILER LICENSE BY THE BOARD.
S. 8575 3
3. THE FEE FOR A PERMIT TO DISTRIBUTE CANNABINOID HEMP BEVERAGES SHALL
BE SEVEN THOUSAND DOLLARS FOR A PERIOD OF TWO YEARS TO BE RENEWED ON
OCTOBER FIRST OF EVERY OTHER YEAR.
4. THE BOARD MAY PROMULGATE RULES AND REGULATIONS TO IMPLEMENT THIS
SECTION.
§ 6. The cannabis law is amended by adding a new section 103-a to read
as follows:
§ 103-A. PACKAGING AND LABELING OF CANNABINOID HEMP AND HEMP BEVERAGE.
1. ALL CANNABINOID HEMP BEVERAGES DISTRIBUTED OR OFFERED FOR RETAIL
SALE IN NEW YORK STATE SHALL INCLUDE THE FOLLOWING INFORMATION ON THE
PRODUCT LABEL OR PACKAGING:
(A) COMPLIANCE WITH THE REQUIREMENTS IN TITLE 21 CODE OF FEDERAL REGU-
LATIONS PART 101 AND INCLUDE A NUTRITIONAL OR SUPPLEMENT FACT PANEL THAT
IS BASED ON THE NUMBER OF SERVINGS WITHIN THE CONTAINER;
(B) A LIST OF ALL INGREDIENTS IN DESCENDING ORDER OF PREDOMINANCE BY
WEIGHT IN THE PRODUCT;
(C) AN EXPIRATION OR BEST BY DATE IF APPLICABLE;
(D) A LOT OR BATCH NUMBER;
(E) THE NAME OF THE CANNABINOID HEMP PROCESSOR OR OUT OF STATE
MANUFACTURER, PACKER OR DISTRIBUTOR;
(F) A SCANNABLE BAR CODE OR QR CODE LINKED TO A DOWNLOADABLE CERTIF-
ICATE OF ANALYSIS, OR LINKED TO A WEBSITE WHERE THE CERTIFICATE OF ANAL-
YSIS CAN BE DOWNLOADED;
(G) A MEANS FOR REPORTING SERIOUS ADVERSE EVENTS OR SIDE EFFECTS; AND
(H) ANY OTHER MARKING, STATEMENT OR SYMBOL AS REQUIRED BY THE OFFICE.
2. NO CANNABINOID HEMP BEVERAGES OFFERED FOR RETAIL SALE SHALL BE MADE
ATTRACTIVE TO INDIVIDUALS UNDER TWENTY-ONE YEARS OF AGE, IMITATE A CANDY
LABEL, OR USE CARTOONS OR OTHER IMAGES POPULARLY USED TO ADVERTISE TO
CHILDREN OR OTHERWISE BE MARKETED TO INDIVIDUALS UNDER TWENTY-ONE YEARS
OF AGE.
3. ALL CANNABINOID HEMP BEVERAGES SHALL BE PACKAGED IN TAMPER-EVIDENT
PACKAGING THAT MINIMIZES OXYGEN AND LIGHT EXPOSURE TO PREVENT DEGRADA-
TION OF THE PRODUCT AND CANNABINOIDS.
4. ALL CANNABINOID HEMP BEVERAGES OFFERED FOR RETAIL SALE SHALL
INCLUDE THE FOLLOWING WARNINGS ON THE PRODUCT LABEL OR PACKAGING, IN A
MANNER THAT IS CLEAR AND CONSPICUOUS THAT:
(A) MUST BE KEPT OUT OF THE REACH OF CHILDREN AND PETS;
(B) THIS PRODUCT IS DERIVED FROM HEMP AND MAY CONTAIN THC WHICH COULD
RESULT IN A FAILED DRUG TEST;
(C) THIS PRODUCT HAS NOT BEEN EVALUATED BY THE FOOD AND DRUG ADMINIS-
TRATION FOR SAFETY OR EFFICACY; AND
(D) IF YOU ARE PREGNANT OR NURSING YOU SHOULD CONSULT YOUR HEALTH CARE
PROVIDER BEFORE USE.
5. NO CANNABINOID HEMP BEVERAGE PACKAGING SHALL DISPLAY ANY CONTENT,
OR BE LABELED IN ANY MANNER THAT:
(A) IS ATTRACTIVE TO INDIVIDUALS UNDER TWENTY-ONE YEARS OF AGE;
(B) INCLUDES ANY FALSE OR MISLEADING STATEMENTS, IMAGES, OR OTHER
CONTENT INCLUDING, BUT NOT LIMITED TO, ANY HEALTH CLAIMS;
(C) INCLUDES THE TERM ORGANIC UNLESS DESCRIBING THE PRODUCT'S INGREDI-
ENTS AND IN COMPLIANCE WITH 128 NYCRR 128.6;
(D) INCLUDES THE TERM GLUTEN-FREE UNLESS THE PRODUCT MEETS THE TERM AS
DEFINED IN TITLE 21, AS IT RELATES TO FOOD AND DRUGS, OF THE CODES OF
FEDERAL REGULATIONS SECTION 101.91;
(E) INCLUDES THE TERM VEGAN UNLESS THE PRODUCT CONTAINS NO ANIMAL
PRODUCTS;
S. 8575 4
(F) INCLUDES THE TERM KOSHER UNLESS THE PRODUCT IS PACKAGED AND
LABELED IN COMPLIANCE WITH 128 NYCRR 128.6;
(G) CAUSES A REASONABLE CONSUMER CONFUSION AS TO WHETHER THE CANNABI-
NOID HEMP BEVERAGE IS TRADEMARKED, MARKED OR LABELED IN A MANNER THAT
VIOLATES ANY FEDERAL TRADEMARK LAW OR REGULATION;
(H) CAUSES A REASONABLE CONSUMER TO BELIEVE THAT A CANNABINOID HEMP
BEVERAGE IS CANNABIS, OR MEDICAL CANNABIS, OR THAT A LICENSEE IS AUTHOR-
IZED TO SELL OR DISPENSE CANNABIS, OR MEDICAL CANNABIS, AS SUCH TERMS
ARE DEFINED IN SECTION THREE OF THIS CHAPTER;
(I) DEPICTS CANNABIS PRODUCTS OR PARAPHERNALIA;
(J) PROMOTES OVERCONSUMPTION; OR
(K) VIOLATES ANY OTHER PROHIBITIONS AS SET OUT BY THE OFFICE.
§ 7. Section 107 of the cannabis law is amended to read as follows:
§ 107. Penalties. 1. Notwithstanding the provision of any law to the
contrary, the failure to comply with a requirement of this article, or a
regulation thereunder, may be punishable by a civil penalty of not more
than one thousand dollars for a first violation; not more than five
thousand dollars for a second violation within three years; and not more
than ten thousand dollars for a third violation and each subsequent
violation thereafter, within three years.
2. WHERE A LICENSEE WILLFULLY VIOLATES, REFUSES OR NEGLECTS TO COMPLY
WITH ONE OR MORE SECTIONS OF THIS ARTICLE THE OFFICE MAY LIMIT, SUSPEND,
REVOKE OR ANNUL THE LICENSE AFTER PROVIDING NOTICE AND AN OPPORTUNITY
FOR A HEARING TO THE LICENSEE. HOWEVER, A LICENSE MAY BE TEMPORARILY
LIMITED, SUSPENDED, REVOKED OR ANNULLED WITHOUT HEARING FOR A PERIOD NOT
TO EXCEED THIRTY DAYS, UPON NOTICE TO THE LICENSEE, FOLLOWING A FINDING
BY THE OFFICE THAT PUBLIC HEALTH, SAFETY OR WELFARE IS IN IMMINENT
DANGER.
3. A LICENSEE WHO NEGLIGENTLY VIOLATES THIS ARTICLE THREE TIMES IN A
FIVE-YEAR PERIOD SHALL BE INELIGIBLE TO PROCESS OR SELL CANNABINOID HEMP
BEVERAGES, OR ADULT-USE CANNABIS, FOR A PERIOD OF FIVE YEARS BEGINNING
ON THE DATE OF THE THIRD VIOLATION. THE OFFICE, FOR GOOD CAUSE SHOWN,
MAY CHOOSE TO IMPOSE A LESSER PENALTY.
§ 8. Section 109 of the cannabis law is amended to read as follows:
§ 109. Prohibitions. 1. Except as authorized by the United States food
and drug administration, the processing of cannabinoid hemp or hemp
extract used for human consumption is prohibited within the state unless
the processor is licensed under this article.
(A) NO CANNABINOID HEMP BEVERAGE PROCESSOR MAY TRANSFER A LICENSE
ISSUED UNDER THIS ARTICLE WITHOUT PRIOR WRITTEN APPROVAL FROM THE
OFFICE.
(B) NO CANNABINOID HEMP BEVERAGE PROCESSOR SHALL MANUFACTURE A CANNA-
BINOID HEMP BEVERAGE THAT IS POTENTIALLY HAZARDOUS FOOD, AS DEFINED IN
10 NYCRR 14-1.31.
(C) NO CANNABINOID HEMP BEVERAGE PROCESSOR MAY CONDUCT FINAL PRODUCT
TESTING FOR THE LICENSEE'S OWN PRODUCTS TO MEET THE TESTING REQUIREMENTS
OF THIS ARTICLE. NOTHING IN THIS SECTION PROHIBITS A CANNABINOID HEMP
BEVERAGE PROCESSOR FROM PERFORMING INTERNAL TESTING FOR RESEARCH AND
PRODUCT DEVELOPMENT OR FOR QUALITY ASSURANCE PRIOR TO FINAL PRODUCT
TESTING BY A THIRD-PARTY LABORATORY.
(D) NO CANNABINOID HEMP BEVERAGE PROCESSOR MAY SELL CANNABINOID HEMP
PRODUCTS TO CONSUMERS FOR FINAL RETAIL SALE WITHOUT FIRST OBTAINING A
CANNABINOID HEMP BEVERAGE RETAIL LICENSE.
(E) NO CANNABINOID HEMP BEVERAGE PROCESSOR SHALL PROCESS ANY FINAL
CANNABINOID HEMP BEVERAGES FOR RETAIL SALE WHICH EXCEEDS THE MAXIMUM
S. 8575 5
TOTAL THC LIMITS PER SERVING AND PER PACKAGE AS SET FORTH IN THIS ARTI-
CLE.
2. Cannabinoid hemp and hemp extracts used for human consumption and
grown or processed outside the state shall not be distributed or sold at
retail within the state, unless they meet all standards established for
cannabinoid hemp under state law and regulations.
3. The retail sale of cannabinoid hemp is prohibited in this state
unless the retailer is licensed under this article.
4. THE DIRECT OR INDIRECT SHIPMENT OF A CANNABINOID HEMP BEVERAGE TO A
CONSUMER FROM A CANNABINOID HEMP BEVERAGE PROCESSOR OR CANNABINOID HEMP
BEVERAGE RETAILER LICENSEE IS PROHIBITED IN THIS STATE.
5. (A) NO CANNABINOID HEMP BEVERAGES SHALL BE SHIPPED INTO THE STATE
UNLESS THE SAME SHALL BE CONSIGNED TO A PERSON DULY LICENSED OR PERMIT-
TED HEREUNDER TO TRAFFIC IN CANNABINOID HEMP BEVERAGES. THIS PROHIBITION
SHALL APPLY TO ALL SHIPMENTS OF CANNABINOID HEMP BEVERAGES INTO NEW YORK
STATE AND INCLUDES IMPORTATION OR DISTRIBUTION FOR COMMERCIAL PURPOSES,
FOR PERSONAL USE, OR OTHERWISE, AND IRRESPECTIVE OF WHETHER SUCH CANNA-
BINOID HEMP BEVERAGES WERE PURCHASED WITHIN OR OUT OF THE STATE.
(B) NO COMMON CARRIER OR OTHER PERSON SHALL BRING OR CARRY INTO THE
STATE ANY CANNABINOID HEMP BEVERAGES, UNLESS THE SAME SHALL BE CONSIGNED
TO A PERSON DULY LICENSED OR PERMITTED HEREUNDER TO TRAFFIC IN CANNABI-
NOID BEVERAGES.
(C) NOTHING IN THIS CHAPTER SHALL BE DEEMED TO EXEMPT FROM TAXATION
THE SALE OR USE OF ANY CANNABINOID HEMP BEVERAGES SUBJECT TO ANY TAX
IMPOSED UNDER OR PURSUANT TO THE AUTHORITY OF THE TAX LAW OR TO GRANT
ANY OTHER EXEMPTION FROM THE PROVISIONS OF SUCH LAW.
6. NO CANNABINOID HEMP BEVERAGE SHALL BE RELEASED FOR DELIVERY FROM
ANY WAREHOUSE LOCATED WITHIN THE STATE, EXCEPT UPON A PERMIT HAVING
FIRST BEEN OBTAINED AS PROVIDED BY THIS CHAPTER. APPLICATIONS FOR SUCH
PERMITS MAY BE FILED AT THE OFFICE AND SHALL BE MADE UPON A FORM
PREPARED BY THE BOARD. THIS PROVISION SHALL NOT APPLY TO CANNABINOID
HEMP BEVERAGES, WHICH ARE TO BE RELEASED FOR SHIPMENT OUTSIDE OF THE
STATE.
§ 9. The cannabis law is amended by adding a new section 109-a to read
as follows:
§ 109-A. PROHIBITED SALES. 1. NO LICENSEE OR AGENT OR EMPLOYEE OF SUCH
LICENSEE SHALL SELL, DELIVER OR GIVE AWAY OR CAUSE OR PERMIT OR PROCURE
TO BE SOLD, DELIVERED OR GIVEN AWAY ANY CANNABINOID HEMP BEVERAGES TO:
(A) ANY PERSON, ACTUALLY OR APPARENTLY, UNDER THE AGE OF TWENTY-ONE
YEARS; OR
(B) ANY VISIBLY INTOXICATED PERSON.
2. NO LICENSEE OR AGENT OR EMPLOYEE OF SUCH LICENSEE SHALL ACCEPT AS
EVIDENCE OF AGE BY ANY SUCH PERSON FOR THE PURCHASE OF ANY CANNABINOID
HEMP BEVERAGE, ANY DOCUMENTATION OTHER THAN:
(A) 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
(B) A VALID PASSPORT ISSUED BY THE UNITED STATES GOVERNMENT OR ANY
OTHER COUNTRY; OR
(C) AN IDENTIFICATION CARD ISSUED BY THE ARMED FORCES OF THE UNITED
STATES.
3. IN ANY PROCEEDING PURSUANT TO SUBDIVISION SEVEN OR EIGHT OF SECTION
ONE HUNDRED THIRTY-THREE OF THIS CHAPTER TO REVOKE, CANCEL OR SUSPEND A
LICENSE TO SELL CANNABINOID HEMP BEVERAGES, IN WHICH PROCEEDING IT IS
S. 8575 6
ALLEGED THAT A PERSON VIOLATED SUBDIVISION ONE OF THIS SECTION, IT SHALL
BE AN AFFIRMATIVE DEFENSE THAT SUCH PERSON HAD PRODUCED A PHOTOGRAPHIC
IDENTIFICATION CARD APPARENTLY ISSUED BY A GOVERNMENTAL ENTITY AND THAT
THE CANNABINOID HEMP BEVERAGE HAD BEEN SOLD, DELIVERED OR GIVEN TO SUCH
PERSON IN REASONABLE RELIANCE UPON SUCH IDENTIFICATION.
§ 10. The cannabis law is amended by adding a new section 109-b to
read as follows:
§ 109-B. OFFENSE FOR PERSONS UNDER THE AGE OF TWENTY-ONE TO PURCHASE
OR ATTEMPT TO PURCHASE A CANNABINOID HEMP BEVERAGE THROUGH FRAUDULENT
MEANS. 1. NO PERSON UNDER THE AGE OF TWENTY-ONE SHALL PRESENT OR OFFER
TO ANY LICENSEE UNDER THIS CHAPTER, OR TO THE AGENT OR EMPLOYEE OF SUCH
LICENSEE, ANY EVIDENCE OF AGE WHICH IS FALSE, FRAUDULENT OR NOT ACTUALLY
THEIR OWN, FOR THE PURPOSE OF PURCHASING OR ATTEMPTING TO PURCHASE ANY
CANNABINOID HEMP BEVERAGE.
2. ANY PERSON UNDER THE AGE OF TWENTY-ONE FOUND TO PURCHASE OR ATTEMPT
TO PURCHASE A CANNABINOID HEMP BEVERAGE THROUGH FRAUDULENT MEANS SHALL
BE SUBJECT TO THE SAME PENALTY AS FOUND UNDER SUBPARAGRAPH (I) OF PARA-
GRAPH (A) OF SUBDIVISION FOUR OF SECTION ONE HUNDRED THIRTY-TWO OF THIS
CHAPTER.
§ 11. The cannabis law is amended by adding a new section 109-c to
read as follows:
§ 109-C. PROCURING CANNABINOID HEMP BEVERAGES FOR PERSONS UNDER THE
AGE OF TWENTY-ONE. ANY PERSON WHO MISREPRESENTS THE AGE OF A PERSON
UNDER THE AGE OF TWENTY-ONE FOR THE PURPOSE OF INDUCING THE SALE OF ANY
CANNABINOID HEMP BEVERAGE, AS DEFINED IN THIS CHAPTER, TO SUCH PERSON,
IS GUILTY OF AN OFFENSE AND UPON CONVICTION THEREOF SHALL BE PUNISHED BY
A FINE OF NOT MORE THAN FIFTY DOLLARS.
§ 12. Section 110 of the cannabis law is amended to read as follows:
§ 110. Special use permits. 1. The board shall have the authority to
issue temporary permits for carrying on any activity related to cannabi-
noid hemp, hemp extract and products derived therefrom, licensed under
this article. The board may set reasonable fees for such permits, to
establish the periods during which such permits are valid, and to make
rules and regulations to implement this section.
2. THE OFFICE IS HEREBY AUTHORIZED TO ISSUE TEMPORARY PERMITS EFFEC-
TIVE FOR A PERIOD NOT TO EXCEED TWENTY-FOUR CONSECUTIVE HOURS TO AUTHOR-
IZE THE SALE OF CANNABINOID HEMP BEVERAGES AT OUTDOOR OR INDOOR GATH-
ERINGS, FUNCTIONS, OCCASIONS OR EVENTS, WITHIN THE HOURS FIXED BY OR
PURSUANT TO SUBDIVISION FIVE OF SECTION ONE HUNDRED SIX OF THE ALCOHOLIC
BEVERAGE CONTROL LAW, DURING WHICH HEMP BEVERAGES MAY LAWFULLY BE SOLD
OR SERVED UPON PREMISES LICENSED TO SELL ALCOHOLIC BEVERAGES AT RETAIL
FOR ON-PREMISES CONSUMPTION IN THE COMMUNITY IN WHICH IT IS LOCATED
AND THE PREMISES IN WHICH SUCH GATHERING, FUNCTION, OCCASION OR EVENT IS
HELD. THE FEE FOR SUCH PERMIT SHALL BE TWENTY-SIX DOLLARS. SUCH PERMIT
AND THE EXERCISE OF THE PRIVILEGE GRANTED THEREBY SHALL BE SUBJECT TO
SUCH RULES THE OFFICE OF CANNABIS MANAGEMENT DEEMS NECESSARY.
§ 13. Section 111 of the cannabis law is renumbered section 112 and a
new section 111 is added to read as follows:
§ 111. ADVERTISING REQUIREMENTS. AN ADVERTISEMENT FOR A CANNABINOID
HEMP BEVERAGE, CANNABINOID HEMP BEVERAGE PROCESSOR OR CANNABINOID HEMP
BEVERAGE RETAILER SHALL NOT:
1. INCLUDE ANY FALSE OR MISLEADING STATEMENTS, IMAGES, OR OTHER
CONTENT INCLUDING, BUT NOT LIMITED TO, ANY HEALTH CLAIMS;
2. CONTAIN CLAIMS THAT CANNABINOID HEMP BEVERAGES CAN, OR IS INTENDED
TO, DIAGNOSE, CURE, MITIGATE, TREAT, OR PREVENT DISEASE;
S. 8575 7
3. LEAD A REASONABLE CONSUMER TO BELIEVE THAT A CANNABINOID HEMP
BEVERAGE IS ADULT-USE CANNABIS, OR MEDICAL CANNABIS, OR THAT A LICENSEE
IS AUTHORIZED TO SELL OR DISPENSE CANNABIS OR MEDICAL CANNABIS, AS SUCH
TERMS ARE DEFINED IN SECTION THREE OF THIS CHAPTER, UNLESS SUCH LICENSEE
IS SO AUTHORIZED; OR
4. HAVE THE PURPOSE OR EFFECT OF TARGETING OR BEING ATTRACTIVE TO
INDIVIDUALS UNDER TWENTY-ONE YEARS OF AGE. THE USE OF IMAGES OF CHILDREN
OR MINORS CONSUMING CANNABINOID HEMP BEVERAGES AND THE USE OF WORDS,
DESIGNS, OR BRANDS THAT RESEMBLE PRODUCTS COMMONLY ASSOCIATED WITH CHIL-
DREN, MINORS, OR MARKETED TO CHILDREN OR MINORS, IS PROHIBITED.
§ 14. The tax law is amended by adding a new article 20-E to read as
follows:
ARTICLE 20-E
TAX ON CANNABINOID HEMP PRODUCTS
SECTION 500. DEFINITIONS.
500-A. IMPOSITION OF TAX.
500-B. REGISTRATION AND RENEWAL.
500-C. RETURNS AND PAYMENT OF TAX.
500-D. RECORDS TO BE KEPT; PENALTIES.
500-E. ADMINISTRATIVE PROVISIONS.
500-F. NOTIFICATION OF ENFORCEMENT ACTIONS.
§ 500. DEFINITIONS. 1. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS: "CANNABINOID HEMP BEVERAGE" AND
"LICENSED HEMP BEVERAGE RETAILER" SHALL HAVE THE SAME MEANING AS SUCH
TERMS ARE DEFINED IN SECTION NINETY OF THE CANNABIS LAW.
2. "DISTRIBUTOR" WHEN USED WITH RESPECT TO CANNABINOID HEMP BEVERAGES,
MEANS ANY PERSON WHO IMPORTS OR CAUSES TO BE IMPORTED INTO THIS STATE
ANY SUCH CANNABINOID HEMP BEVERAGES WHICH ARE OR WILL BE OFFERED FOR
SALE OR USED FOR ANY COMMERCIAL PURPOSE; ANY PURCHASER OF WAREHOUSE
RECEIPTS FOR SUCH CANNABINOID HEMP BEVERAGES STORED IN A WAREHOUSE IN
THIS STATE WHO CAUSES SUCH BEVERAGES TO BE REMOVED FROM SUCH WAREHOUSE;
AND ANY PERSON WHO PRODUCES, DISTILLS, MANUFACTURES, BREWS, COMPOUNDS,
MIXES OR FERMENTS ANY SUCH CANNABINOID HEMP BEVERAGES WITHIN THIS STATE
FOR SALE, EXCEPT (A) A PERSON WHO MANUFACTURES, MIXES OR COMPOUNDS SUCH
CANNABINOID HEMP BEVERAGES ON WHICH THE TAXES IMPOSED BY THIS ARTICLE
HAVE BEEN PAID; AND (B) A PERSON WHO MIXES OR COMPOUNDS SUCH CANNABINOID
HEMP BEVERAGES WITH NON-CANNABINOID HEMP BEVERAGES INGREDIENTS FOR SALE
AND IMMEDIATE CONSUMPTION ON THE PREMISES, WHO SHALL BE A DISTRIBUTOR
ONLY WITH RESPECT TO THE INGREDIENTS WHICH CONSIST OF CANNABINOID HEMP
BEVERAGES UPON WHICH THE TAXES IMPOSED BY THIS ARTICLE HAVE NOT BEEN
PAID.
3. "LICENSED HEMP BEVERAGE RETAILER" SHALL MEAN A RETAILER LICENSED
PURSUANT TO SECTION NINETY-THREE-A OF THE CANNABIS LAW.
4. "PERSON" SHALL MEAN EVERY INDIVIDUAL, PARTNERSHIP, LIMITED LIABIL-
ITY COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION,
ESTATE, RECEIVER, TRUSTEE, ASSIGNEE, REFEREE, AND ANY OTHER PERSON
ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY, WHETHER APPOINTED BY A
COURT OR OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
5. "SALE" MEANS ANY TRANSFER OF TITLE, POSSESSION OR BOTH, EXCHANGE OR
BARTER, RENTAL, LEASE OR LICENSE TO USE OR CONSUME, CONDITIONAL, OR
OTHERWISE, IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A CONSIDERATION
OR ANY AGREEMENT, THEREFORE.
§ 500-A. IMPOSITION OF TAX. THERE IS HEREBY IMPOSED A TAX ON CANNABI-
NOID HEMP BEVERAGES SOLD BY A DISTRIBUTOR TO A LICENSED HEMP RETAILER AT
A RATE OF TEN PERCENT OF THE AMOUNT CHARGED FOR THE SALE OR TRANSFER OF
CANNABINOID HEMP BEVERAGE TO A LICENSED HEMP BEVERAGE RETAILER. SUCH TAX
S. 8575 8
IS IMPOSED ON THE DISTRIBUTOR AND SHALL ACCRUE AT THE TIME OF SUCH SALE
OR TRANSFER.
§ 500-B. REGISTRATION AND RENEWAL. 1. EVERY DISTRIBUTOR ON WHOM TAX IS
IMPOSED UNDER THIS ARTICLE MUST FILE WITH THE COMMISSIONER A PROPERLY
COMPLETED APPLICATION FOR A CERTIFICATE OF REGISTRATION AND OBTAIN SUCH
CERTIFICATE BEFORE ENGAGING IN BUSINESS. AN APPLICATION FOR A CERTIF-
ICATE OF REGISTRATION SHALL BE SUBMITTED ELECTRONICALLY, ON A FORM
PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY A NON-REFUND-
ABLE APPLICATION FEE OF TWO HUNDRED FIFTY DOLLARS. A CERTIFICATE OF
REGISTRATION SHALL NOT BE ASSIGNABLE OR TRANSFERABLE AND SHALL BE
DESTROYED IMMEDIATELY UPON SUCH PERSON CEASING TO DO BUSINESS AS SPECI-
FIED IN SUCH CERTIFICATE, OR IN THE EVENT THAT SUCH BUSINESS NEVER
COMMENCED.
2. (A) THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGIS-
TRATION TO ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE OF REGISTRA-
TION OF ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE OR PERMIT
FROM THE OFFICE OF CANNABIS MANAGEMENT.
(B) THE COMMISSIONER MAY REFUSE TO ISSUE A CERTIFICATE OF REGISTRATION
TO ANY APPLICANT WHERE SUCH APPLICANT: (I) HAS HAD A CERTIFICATE OF
REGISTRATION UNDER THIS ARTICLE, A LICENSE OR PERMIT 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; (II) 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; (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; AND (V) WILLFULLY FAILS TO
COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS
ARTICLE.
3. THE COMMISSIONER MAY REVOKE THE CERTIFICATE OF REGISTRATION ISSUED
TO ANY PERSON WHO: (A) HAS HAD ANY LICENSE OR REGISTRATION PROVIDED FOR
IN THIS CHAPTER REVOKED OR SUSPENDED;
(B) HAS BEEN CONVICTED OF A CRIME PROVIDED FOR IN THIS CHAPTER WHERE
SUCH CONVICTION OCCURRED NOT MORE THAN ONE YEAR PRIOR TO THE DATE OF
REVOCATION;
(C) WILLFULLY FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS ARTI-
CLE;
(D) 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
(E) WILLFULLY FAILS TO COLLECT OR TRUTHFULLY ACCOUNT FOR OR PAY OVER
ANY TAX IMPOSED BY THIS ARTICLE.
4. A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI-
FIED THEREON, UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION
OF THE TERM STATED ON A CERTIFICATE OF REGISTRATION, SUCH CERTIFICATE
SHALL BE NULL AND VOID.
5. EVERY HOLDER OF A CERTIFICATE OF REGISTRATION MUST NOTIFY THE
COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE CERTIF-
ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR
THE CERTIFICATE OF REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR
BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS AND MUST BE
MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
S. 8575 9
§ 500-C. RETURNS AND PAYMENT OF TAX. 1. EVERY PERSON ON WHOM TAX IS
IMPOSED UNDER THIS ARTICLE SHALL, ON OR BEFORE THE TWENTIETH DAY OF THE
MONTH FOLLOWING EACH QUARTERLY PERIOD ENDING ON THE LAST DAY OF FEBRU-
ARY, MAY, AUGUST, AND NOVEMBER, RESPECTIVELY, FILE ELECTRONICALLY WITH
THE COMMISSIONER A RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER,
SHOWING THE TOTAL AMOUNT OF TAX DUE IN SUCH QUARTERLY PERIOD, AND
INCLUDING SUCH OTHER INFORMATION AS THE COMMISSIONER MAY REQUIRE.
2. EVERY PERSON REQUIRED TO FILE A RETURN UNDER THIS SECTION SHALL, AT
THE TIME OF FILING SUCH RETURN, PAY ELECTRONICALLY TO THE COMMISSIONER
THE TOTAL AMOUNT OF TAX DUE FOR THE PERIOD COVERED BY SUCH RETURN. IF A
RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY ON WHICH
THE RETURN IS REQUIRED TO BE FILED.
§ 500-D. RECORDS TO BE KEPT; PENALTIES. 1. EVERY DISTRIBUTOR ON WHOM
TAX IS IMPOSED UNDER THIS ARTICLE SHALL MAINTAIN COMPLETE AND ACCURATE
RECORDS IN SUCH FORM AS THE COMMISSIONER MAY REQUIRE. SUCH RECORDS MUST
BE PRESERVED FOR A PERIOD OF THREE YEARS AFTER THE FILING OF THE RETURN
TO WHICH SUCH RECORDS RELATE AND MUST BE PROVIDED TO THE COMMISSIONER
UPON REQUEST.
2. IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS ARTICLE OR OTHER-
WISE IMPOSED BY LAW, EVERY DISTRIBUTOR ON WHOM TAX IS IMPOSED UNDER THIS
ARTICLE WHO FAILS TO MAINTAIN OR MAKE AVAILABLE TO THE COMMISSIONER THE
RECORDS REQUIRED BY THIS SECTION IS SUBJECT TO A PENALTY NOT TO EXCEED
FIVE HUNDRED DOLLARS FOR EACH MONTH OR PART THEREOF FOR WHICH THE FAIL-
URE OCCURS. SUCH PENALTY MAY NOT BE IMPOSED MORE THAN ONCE FOR FAILURES
FOR THE SAME MONTHLY PERIOD OR PART THEREOF. IF THE COMMISSIONER DETER-
MINES THAT A FAILURE TO MAINTAIN OR MAKE AVAILABLE RECORDS IN ANY MONTH
WAS ENTIRELY DUE TO REASONABLE CAUSE AND NOT TO WILLFUL NEGLECT, THE
COMMISSIONER SHALL REMIT THE PENALTY FOR THAT MONTH.
3. IF BOOKS AND RECORDS ARE NOT PROVIDED OR ARE DETERMINED TO BE
INSUFFICIENT, THE AMOUNT OF THE TAX DUE SHALL BE DETERMINED BY THE
COMMISSIONER FROM SUCH INFORMATION AS MAY BE AVAILABLE. IN THE ABSENCE
OF EVIDENCE OF THE WHOLESALE PRICE FOR THE TAX IMPOSED BY SECTION FIVE
HUNDRED-A OF THIS ARTICLE, THE TAX MAY BE DETERMINED BASED ON THE RETAIL
PRICE OF SUCH CANNABINOID HEMP BEVERAGE.
§ 500-E. ADMINISTRATIVE PROVISIONS. 1. THE PROVISIONS OF PART FOUR OF
ARTICLE TWENTY-EIGHT OF THIS CHAPTER SHALL APPLY TO THE TAXES IMPOSED BY
SECTION FIVE HUNDRED-A OF THIS ARTICLE IN THE SAME MANNER AND WITH THE
SAME FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE HAD BEEN INCOR-
PORATED IN FULL INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX
IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS ARTICLE OR IS
NOT RELEVANT TO THIS ARTICLE.
2. ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE
COMMISSIONER UNDER THIS ARTICLE SHALL BE DEPOSITED AND DISPOSED OF
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF THIS
CHAPTER, PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED
UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO BE
RESERVED BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID
BY THE COMPTROLLER TO THE CREDIT OF THE CANNABIS REVENUE FUND ESTAB-
LISHED BY SECTION NINETY-NINE-II OF THE STATE FINANCE LAW. OF THE TOTAL
REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER SHALL
RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
REFUNDS. THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
REGISTRATION FEES UNDER SUBDIVISION ONE OF SECTION FIVE HUNDRED-B OF
THIS ARTICLE, BEFORE DEPOSIT INTO THE CANNABIS REVENUE FUND DESIGNATED
BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTUATE REFUNDS
S. 8575 10
OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPARTMENT FOR THE
COSTS INCURRED TO ADMINISTER, COLLECT, AND DISTRIBUTE THE TAXES IMPOSED
BY THIS ARTICLE.
§ 500-F. NOTIFICATION OF ENFORCEMENT ACTIONS. THE COMMISSIONER SHALL
NOTIFY THE CANNABIS CONTROL BOARD AND THE OFFICE OF CANNABIS MANAGEMENT
OF THE COMMENCEMENT OF ANY ENFORCEMENT ACTIONS TAKEN UNDER THIS ARTICLE
AS WELL AS THE CONCLUSION, OUTCOMES, AND THE AMOUNT OF PENALTIES
COLLECTED AS A RESULT OF SUCH ACTIONS.
§ 15. Subdivision 2 of section 99-ii of the state finance law, as
added by chapter 92 of the laws of 2021, is amended and a new subdivi-
sion 2-b is added to read as follows:
2. Such fund shall consist of all revenues received by the department
of taxation and finance, pursuant to the provisions of [article] ARTI-
CLES twenty-C AND TWENTY-E of the tax law and all other moneys credited
or transferred 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.
2-B. REVENUES DEPOSITED INTO THIS FUND PURSUANT TO ARTICLE TWENTY-E OF
THE TAX LAW SHALL BE EXPENDED FOR THE FOLLOWING PURPOSES:
(A) THE RENEGOTIATION AND PROVISION OF ZERO INTEREST LOANS TO CONDI-
TIONAL ADULT-USE RETAIL DISPENSARY LICENSEES APPROVED BY THE CANNABIS
CONTROL BOARD ON OR BEFORE APRIL FIRST, TWO THOUSAND TWENTY-FIVE.
(B) SUBJECT TO AVAILABLE APPROPRIATIONS AND PROVIDING THAT NO MORE
THAN TWENTY-FIVE MILLION DOLLARS IN FUNDING, SHALL BE MADE AVAILABLE TO
CULTIVATOR LICENSEES THAT POSSESSED A CONDITIONAL CULTIVATOR LICENSE AS
DEFINED IN SECTION SIXTY-EIGHT OF THE CANNABIS LAW FROM APRIL FIRST, TWO
THOUSAND TWENTY-ONE THROUGH JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, FOR
THE MITIGATION OF THE EFFECTS OF ACTUAL LOSSES RESULTING FROM THE LIMIT-
ED NUMBER OF LICENSED AND OPERATIONAL RETAIL DISPENSARIES.
(C) SUBJECT TO AVAILABLE APPROPRIATIONS AND PROVIDING THAT NO MORE
THAN TWENTY-FIVE MILLION DOLLARS IN FUNDING, SHALL BE MADE AVAILABLE TO
PROCESSOR LICENSEES THAT POSSESSED A CONDITIONAL PROCESSOR LICENSE AS
DEFINED IN SECTION SIXTY-NINE OF THE CANNABIS LAW FROM APRIL FIRST, TWO
THOUSAND TWENTY-ONE THROUGH JANUARY FIRST, TWO THOUSAND TWENTY-FOUR, FOR
THE MITIGATION OF THE EFFECTS OF ACTUAL LOSSES RESULTING FROM THE LIMIT-
ED NUMBER OF LICENSED AND OPERATIONAL RETAIL DISPENSARIES.
§ 16. Subparagraph (A) of paragraph 1 of subsection (a) of section
1115 of the tax law, as amended by section 1 of part CCC of chapter 59
of the laws of 2019, is amended to read as follows:
(A) Food, food products, beverages, dietary foods and health supple-
ments, sold for human consumption but not including (i) candy and
confectionery, (ii) fruit drinks which contain less than seventy percent
of natural fruit juice, (iii) soft drinks, sodas and beverages such as
are ordinarily dispensed at soda fountains or in connection therewith
(other than coffee, tea and cocoa) [and], (iv) beer, wine or other alco-
holic beverages AND (V) HEMP OR HEMP DERIVED BEVERAGES, all of which
shall be subject to the retail sales and compensating use taxes, whether
or not the item is sold in liquid form. Nothing in this subparagraph
shall be construed as exempting food or drink from the tax imposed under
subdivision (d) of section eleven hundred five of this article.
§ 17. This act shall take effect immediately.
