Enacts the "marihuana regulation and taxation act"; repealer; appropriation

Section two of the bill is comprised of legislative findings and statements of purpose.

Section three of the bill amends Section 3302 of the Public Health Law to eliminate the definitions of Concentrated Cannabis and Marihuana from the controlled substances act.

Section four of the bill amends Section 3306 of the Public Health Law to remove the classification of marihuana as a schedule 1 hallucinogen on the schedules of controlled substances.

Section five of the bill amends Section 3382 of the Public Health Law to excluding home cultivation of up to 6 marihuana plants by individuals 18 years or older from the ban on growing cannabis.

Section six of the bill amends section 3397-b of the public health law to make conforming changes in definition of marihuana.

Section seven of the bill amends Section 114a of the Vehicle and Traffic Law adding marihuana and concentrated cannabis to the definition of drug for purposes of driving under the influence.

Section eight of the bill amends Section 220.0 of the Penal Law to include a definition for concentrated cannabis as a controlled substance.

Sections nine to eleven of the bill update cross references to amended sections of the penal law.

Section twelve of the bill amends Section 220.5 of the Penal Law to exclude marihuana paraphernalia from criminal use of drug paraphernalia.

Section thirteen of the bill amends Section 221.05 of the Penal Law to make unlawful possession of marihuana applicable to persons less than eighteen years of age or who are burning marihuana.

Section fourteen of the bill amends Section 221.15 of the Penal Law to redefine criminal possession of marihuana in the second degree as a Class B misdemeanor.

Section fifteen of the bill amends Section 221.20 of the Penal Law to redefine criminal possession of marihuana in the first degree as a Class A misdemeanor.

Section sixteen of the bill repeals sections 221.10, 221.25 and 221.3 of the Penal Law, eliminating the previous definitions of Criminal possession of marihuana in the first and second degrees.

Section seventeen of the bill adds a new section 221.25 of the Penal Law allowing for home cultivation of up to six marihuana plants by persons eighteen years of age or older.

Section eighteen of the bill amends section 221.35 of the Penal Law to redefine Criminal sale of marihuana in the third degree to apply to persons less than eighteen years of age.

Section nineteen of the bill amends section 221.40 of the Penal Law to redefine the criminal sale of marihuana in the second degree.

Section twenty of the bill amends section 221.45 of the Penal law to redefine criminal sale of marihuana in the first degree.

Section twenty-one of the bill repeals section 221.5 and 221.55 of the Penal Law, eliminating the previous definitions of criminal sale of marihuana in the first and second degrees.

Section twenty-two of the bill adds a new section 221.6 to the Penal Law establishing that those acting in compliance with the Alcohol Beverage Control Law are exempt from sections § 220 and § 221 of the New York Penal Law.

Section twenty-three of the bill amends subdivision 8 of section 1399-n of the Public Health Law to include marihuana in list of substances subject to smoking regulations.

Sections twenty-four and twenty-five of the bill amends section 2 of the Alcoholic Beverage Control Law to include regulation of marihuana products in the purpose of this chapter.

Section twenty-six and of the bill amends section 3 of the Alcoholic Beverage Control Law to include definitions of Concentrated Cannabis, Marihuana, and Marihuana consumers, processors, producer, products, infused products, retailer and retailer for the purposes of on-premises consumption, and unreasonably impracticable.

Section twenty-seven of the bill amends section 65-b of the Alcoholic Beverage Control law to ban use of fraudulent documents for the purpose of purchasing marihuana products by persons under twenty-one years of age, and establishing procedures for sellers of marihuana products to prevent such sales.

Section twenty-eight of this bill amends section 140 of the Alcoholic Beverage Control Law to extend the option of any town or city to ban sale of alcoholic beverages to sales of marihuana.

Section twenty-nine of the bill amends section 141 of the Alcoholic Beverage Control Law to apply the rules governing referendum procedures for banning sales of alcohol by towns to sales of marihuana.

Section thirty of the bill amends section 142 of the Alcoholic Beverage Control Law to establish that sale of marihuana is prohibited in any city that passes a referendum against such sales.

Section thirty-one of the bill amends section 147 of the Alcoholic Beverage Control Law to establish that if the rules regarding future referendums will also apply to marihuana sales.

Section thirty-two of the bill renumbers article 11 of the Alcoholic Beverage Control Law as article 12 and sections 160, 161, 162, 163 and 164 as sections 200, 201, 202, 203 and 204.

Section thirty-three of the bill adds a new Article 11 to the Alcoholic Beverage Control Law providing for the regulation of marihuana production, distribution and sale by the State Liquor Authority, establishing licensing and permitting rules, and providing for penalties for violations. Such regulation shall be promulgated within 240 days of the effective date.

Section thirty-four of the bill adds a new Article 18-A to the New York Tax Code imposing an excise tax on marihuana and concentrated cannabis, and establishing a formula for distribution of the proceeds of this tax. Proceeds from the tax will be placed in a fund established by the comptroller known as the marihuana revenue fund. Fifteen percent of proceeds to be directed to re-entry programs, substance abuse programs, and job training programs in low income, high unemployment communities, and authorizing localities to enact a five percent tax on marihuana sales, with the remainder of proceeds going to the general fund. Localities would also be authorized to impose a sales tax of up to five percent on retail sales.

Section thirty-five of the bill amends section 160.5 of the criminal procedure law to update references to clearing of records in criminal acitons terminated in favor of the accused.

Section thirty-six of the bill amends section 170.56 of the criminal procedure law providing for suspension of court proceedings and adjournment in contemplation of dismissal for exceptional circumstances in marihuana related violations.

Section thirty-seven of the bill updates cross references in section 210.46 of the criminal procedure law.

Section thirty-eight of the bill amends section 440.10 of the criminal procedure law to provide for vacating convictions based on marihuana possession in cases where the offense would no longer be a crime under this act.

Section thirty-nine of the bill amends section 440.10 of the criminal procedure law to update cross references.

Section forty of the bill amends section 440.46 of the criminal procedure law to provide for an application for resentencing for certain marihuana related offenses.

Section forty-one through forty-four of the bill of the bill update cross references to amended sections of the penal law.

Section forty-five and forty-six of the bill amend section 850 of the General Business Law to remove references to marihuana from prohibitions on the sale of drug paraphernalia.

Section forty-seven of the bill update cross references in the state finance law to amended sections in the alcoholic beverage control law.

Section forty-eight through fifty of the bill update cross references to amended sections of the penal law.

Section fifty-one of the bill provides for an appropriation of five million dollars to the State Liquor Authority for implementation of this act.

Section fifty-two is a severability clause.

Section fifty-three of the bill is the effective date.

Justification

Present law fails to prevent the trade and consumption of marihuana and has continued to foster a violent drug market that consumes millions of dollars in resources every year.

New York State Ranks 2nd of all 50 states in terms of Marihuana related arrests made per 100,000 people. In 2010, the NYPD made 50,300 marihuana related arrests. This number amounted to one out of every seven total arrests made, and $75 million was spent arresting and jailing mostly young people simply for possessing small amounts of marihuana.

The enforcement of present law has disproportionately effected African-American and Latino communities; often giving first time, non-violent offenders, an extraneous criminal record. Government health surveys find that young whites use marihuana at higher rates than young blacks and Latinos. But the NYPD arrests blacks for marihuana possession at seven times the rate of whites and Latinos at nearly four times the rate of whites.

Aside from mitigating these issues, the regulation and taxation act will also help accrue revenue for the state; portions of which will go

back (through government agencies and programs) to communities that have been impacted by present law.

Prior legislative history

New Bill

Fiscal implications for state and local governments

Increase revenue for state and local governments. Fiscal implication assumptions for similar legislation implemented in Colorado, Amendment 64, estimated an annual revenue increase of 5-22 million dollars and an annual spending increase of .5-1.5 million dollars. Given the larger population of New York State this legislation should generate revenue substantially larger than these estimates.

Effective date

Immediately.