What's happening
This bill legalizes, regulates, and taxes cannabis for adults 21+, creates an Office of Cannabis Management, and establishes licensing, equity, and public health provisions.
Why it matters
Social and Economic Justice Focus. The bill directly addresses the historic harms of marijuana criminalization, especially the disproportionate impact on Black and Latinx communities. It sets ambitious equity goals, including awarding at least 50% of adult-use cannabis licenses to social/economic equity applicants (such as those from impacted communities, minority- and women-owned businesses, disadvantaged farmers, and service-disabled veterans), and creates an incubator program to support these groups.
Extensive Regulatory Framework. The legislation creates a new Office of Cannabis Management and a Cannabis Control Board with broad powers to license, regulate, and oversee all aspects of cannabis cultivation, processing, distribution, retail, and testing. This includes setting public health standards, preventing underage access, limiting market dominance, and ensuring transparency and accountability across the industry.
Protections for Individuals and Workers. The bill provides explicit protections so that individuals cannot be denied housing, employment, education, or parental rights solely for legal cannabis use. For workers, employers generally cannot take adverse actions for off-duty cannabis use unless it directly affects workplace safety or violates other laws/contracts.
Public Health and Community Investment. Significant new revenue generated from cannabis taxes and licensing will be directed to reinvestment in communities most harmed by past prohibition, as well as to public education and substance use treatment. The law also mandates robust data collection, public health monitoring, and annual reporting to guide ongoing policy and protect public safety.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Cannabis growers, processors and retailers
The bill would create adult-use business licenses, restrict ownership across industry tiers and impose testing, packaging and recordkeeping requirements.
Minority- and women-owned businesses, disadvantaged farmers and service-disabled veterans
The bill would prioritize eligible equity applicants, set a goal of awarding them fifty percent of adult-use licenses and provide reduced fees and business support.
Medical cannabis patients and caregivers
The bill would permit a sixty-day supply and allow certified patients and designated caregivers aged twenty-one or older to cultivate up to six mature plants, subject to storage and security requirements.
Town, city and village governments
The bill would allow them to prohibit adult-use retail dispensaries through a local law following a mandatory referendum, while limiting other local regulation of cannabis businesses.
Headline styles
Legalize and Tax Marijuana
Plain English, a few words. Used as the page title.
Sponsors
21 Co-sponsors
- Jamaal Bailey
- Alessandra Biaggi
- David Carlucci
- Leroy Comrie
- Michael Gianaris
- Brad Hoylman-Sigal
- Robert Jackson
- Timothy M. Kennedy
- John Liu
- Rachel May
- Jen Metzger
- Velmanette Montgomery
- Zellnor Myrie
- Kevin S. Parker
- Jessica Ramos
- Gustavo Rivera
- Julia Salazar
- James Sanders Jr.
- Diane J. Savino
- Luis R. Sepúlveda
- José M. Serrano
History
- Print number 1527c
- Amend and recommit to finance
- Referred to finance
- Print number 1527b
- Amend and recommit to finance
- Print number 1527a
- Amend (t) and recommit to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Legalize and Tax Marijuana
In Assembly Committee · Codes · Sponsor Crystal Peoples-Stokes
Full text
116 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1527--C
2019-2020 Regular Sessions
IN SENATE
January 15, 2019
Introduced by Sens. KRUEGER, BAILEY, BIAGGI, CARLUCCI, COMRIE, GIANARIS, HOYLMAN, JACKSON, KENNEDY, LIU, MAY, METZGER, MONTGOMERY, MYRIE, PARK- ER, RAMOS, RIVERA, SALAZAR, SANDERS, SAVINO, SEPULVEDA, SERRANO -read twice and ordered printed, and when printed… Show allHide
Introduced by Sens. KRUEGER, BAILEY, BIAGGI, CARLUCCI, COMRIE, GIANARIS, HOYLMAN, JACKSON, KENNEDY, LIU, MAY, METZGER, MONTGOMERY, MYRIE, PARK- ER, RAMOS, RIVERA, SALAZAR, SANDERS, SAVINO, SEPULVEDA, SERRANO -read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Finance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT in relation to constituting chapter 7-A of the consolidated laws, in relation to the creation of a new office of cannabis management, as an independent entity within the division of alcoholic beverage control, providing for the licensure of persons… Show allHide
AN ACT in relation to constituting chapter 7-A of the consolidated laws, in relation to the creation of a new office of cannabis management, as an independent entity within the division of alcoholic beverage control, providing for the licensure of persons authorized to cultivate, process, distribute and sell cannabis and the use of cannabis by persons aged twenty-one or older; to amend the public health law, in relation to the description of cannabis; to amend the penal law, in relation to the growing and use of cannabis by persons twenty-one years of age or older; to amend the tax law, in relation to providing for the levying of taxes on cannabis; to amend the criminal procedure law, the civil practice law and rules, the general business law, the state finance law, the executive law, the penal law, the alcoholic beverage control law, the general obligations law, the social services law, the agriculture and markets law and the vehicle and traffic law, in relation to making conforming changes; to amend the public health law, in relation to the definition of smoking; to amend the state finance law, in relation to establishing the New York state cannabis revenue fund, the New York state drug treatment and public education fund and the New York state community grants reinvestment fund; to amend chapter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general business law, the penal law and the criminal procedure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal certain [ ] is old law to be omitted.
S. 1527--C 2 provisions of the public health law relating to growing of cannabis and medical use of marihuana; to repeal article 221 of the penal law relating to offenses involving marihuana; to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; to repeal certain provisions of the criminal procedure law relating to certain criminal actions; and to repeal certain provisions of the agriculture and markets law relating to industrial hemp
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. This act shall be known and may be cited as the "marihuana regulation and taxation act".
§ 2. Chapter 7-A of the consolidated laws is enacted, to read as follows:
CHAPTER 7-A OF THE CONSOLIDATED LAWS
CANNABIS LAW
ARTICLE 1
SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT;
DEFINITIONS Section 1. Short title.
2. Legislative findings and intent.
3. Definitions.
Section 1. Short title. This chapter shall be known and may be cited and referred to as the "cannabis law".
§ 2. Legislative findings and intent. The legislature finds that existing marihuana laws have not been beneficial to the welfare of the general public. Existing laws have been ineffective in reducing or curbing marihuana use and have instead resulted in devastating collateral consequences including mass incarceration and other complex generational trauma, that inhibit an otherwise law-abiding citizen's ability to access housing, employment opportunities, and other vital services. Existing laws have also created an illicit market which represents a threat to public health and reduces the ability of the legislature to deter the accessing of marihuana by minors. Existing marihuana laws have disproportionately impacted African-American and Latinx communities.
The intent of this act is to regulate, control, and tax marihuana, heretofore known as cannabis, generate significant new revenue, make substantial investments in communities and people most impacted by marihuana criminalization to address the collateral consequences of such criminalization, prevent access to cannabis by those under the age of twenty-one years, reduce the illegal drug market and reduce violent crime, reduce participation of otherwise law-abiding citizens in the illicit market, end the racially disparate impact of existing cannabis laws, create new industries and increase employment and strengthen New York's agriculture sector.
Nothing in this act is intended to limit the authority of any district government agency or office or employers to enact and enforce policies pertaining to cannabis in the workplace, to allow driving under the influence of cannabis, to allow individuals to engage in conduct that endangers others, to allow smoking cannabis in any location where smoking tobacco is prohibited, or to require any individual to engage in any conduct that violates federal law or to exempt anyone from any require-
S. 1527--C 3
ment of federal law or pose any obstacle to the federal enforcement of federal law.
The legislature further finds and declares that it is in the best interest of the state to regulate medical cannabis, adult-use cannabis, cannabinoid hemp and hemp extracts under independent entities, known as the cannabis control board and the office of cannabis management.
§ 3. Definitions. Whenever used in this chapter, unless otherwise expressly stated or unless the context or subject matter requires a different meaning, the following terms shall have the representative meanings hereinafter set forth or indicated:
1. "Applicant" means a resident of New York state who is a citizen of the United States or a person lawfully admitted for permanent residency in the United States aged twenty-one years or older applying for any cannabis or hemp licenses or special use permits issued by the New York state cannabis control board pursuant to this chapter; provided, however applicants for hemp licenses may be aged eighteen years or older.
2. "Cannabinoid" means the phytocannabinoids found in hemp and does not include synthetic cannabinoids as that term is defined in subdivision (g) of schedule I of section thirty-three hundred six of the public health law.
3. "Cannabinoid hemp" means any hemp and any product processed or derived from hemp, that is used for human consumption provided that when such product is packaged or offered for retail sale to a consumer, it shall not have a concentration of more than three tenths of a percent delta-9 tetrahydrocannabinol.
4. "Cannabinoid hemp processor license" means a license granted by the department to process, extract, pack or manufacture cannabinoid hemp or hemp extract into products, whether in intermediate or final form, used for human consumption.
5. "Cannabis" means all parts of the plant of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. It does not include hemp, cannabinoid hemp or hemp extract as defined by this section.
6. "Cannabis consumer" means a person twenty-one years of age or older acting in accordance with any provision of this chapter.
7. "Cannabis control board" means the New York state cannabis control board created pursuant to article two of this chapter.
8. "Cannabis flower" means the flower of a plant of the genus Cannabis that has been harvested, dried, and cured, prior to any processing whereby the plant material is transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. Cannabis flower excludes leaves and stem.
9. "Cannabis product" or "adult-use cannabis product" means cannabis, concentrated cannabis, and cannabis-infused products for use by a cannabis consumer.
10. "Cannabis-infused products" means products that have been manufactured and contain either cannabis or concentrated cannabis and other ingredients that are intended for use or consumption.
S. 1527--C 4
11. "Cannabis trim" means all parts of the plant of the genus Cannabis other than cannabis flower that have been harvested, dried, and cured, but prior to any further processing.
12. "Caring for" means treating a patient, in the course of which the practitioner has completed a full assessment of the patient's medical history and current medical condition.
13. "Certification" means a certification made under this chapter.
14. "Certified medical use" includes the acquisition, administration, cultivation, manufacture, delivery, harvest, possession, preparation, transfer, transportation, or use of cannabis or paraphernalia relating to the administration of cannabis to treat or alleviate a certified patient's medical condition or symptoms associated with the patient's medical condition.
15. "Certified patient" means a patient who is a resident of New York state or receiving care and treatment in New York state as determined by the board in regulation, and is certified under this chapter.
16. "Chief equity officer" means the chief equity officer of the office of cannabis management.
17. "Commercial cannabis activity" means the production, cultivation, manufacturing, processing, possession, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this chapter.
18. "Concentrated cannabis" means: (a) the separated resin, whether crude or purified, obtained from a plant of the genus Cannabis; or (b) a material, preparation, mixture, compound or other substance which contains more than three percent by weight of delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) monoterpene numbering system.
19. "Condition" means having one of the following conditions: cancer, positive status for human immunodeficiency virus or acquired immune deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease, multiple sclerosis, damage to the nervous tissue of the spinal cord with objective neurological indication of intractable spasticity, epilepsy, inflammatory bowel disease, neuropathies, Huntington's disease, posttraumatic stress disorder, pain that degrades health and functional capability where the use of medical cannabis is an alternative to opioid use, substance use disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthritis, autism or any other condition certified by the practitioner.
20. "Cultivation" means growing, cloning, harvesting, drying, curing, grading, and trimming of cannabis plants for sale to certain other categories of cannabis license- and permit-holders.
21. "Delivery" means the direct delivery of cannabis products by a retail licensee, microbusiness licensee, or delivery license holder to a cannabis consumer.
22. "Designated caregiver facility" means a general hospital or residential health care facility operating pursuant to article twenty-eight of the public health law; an adult care facility operating pursuant to title two of article seven of the social services law; a community mental health residence established pursuant to section 41.44 of the mental hygiene law; a hospital operating pursuant to section 7.17 of the mental hygiene law; a mental hygiene facility operating pursuant to article thirty-one of the mental hygiene law; an inpatient or residential treatment program certified pursuant to article thirty-two of the mental hygiene law; a residential facility for the care and treatment of
S. 1527--C 5
persons with developmental disabilities operating pursuant to article sixteen of the mental hygiene law; a residential treatment facility for children and youth operating pursuant to article thirty-one of the mental hygiene law; a private or public school; research institution with an internal review board; or any other facility as determined by the board in regulation; that registers with the office to assist one or more certified patients with the acquisition, possession, delivery, transportation or administration of medical cannabis.
23. "Designated caregiver" means an individual designated by a certified patient in a registry application. A certified patient may designate up to five designated caregivers not counting designated caregiver facilities or designated caregiver facilities' employees.
24. "Designated caregiver facility employee" means an employee of a designated caregiver facility.
25. "Distributor" means any person who sells at wholesale any cannabis product, except medical cannabis, for the sale of which a license is required under the provisions of this chapter.
26. "Executive director" means the executive director of the office of cannabis management.
27. "Form of medical cannabis" means characteristics of the medical cannabis recommended or limited for a particular certified patient, including the method of consumption and any particular strain, variety, and quantity or percentage of cannabis or particular active ingredient.
28. "Hemp" means the plant Cannabis sativa L. and any part of such plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more than three-tenths of a percent on a dry weight basis. It shall not include "medical cannabis" as defined in this section.
29. "Hemp extract" means all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers derived from hemp, used or intended for human consumption, for its cannabinoid content, with a delta-9 tetrahydrocannabinol concentration of not more than an amount determined by the department in regulation. For the purpose of this article, hemp extract excludes (a) any food, food ingredient or food additive that is generally recognized as safe pursuant to federal law; or (b) any hemp extract that is not used for human consumption. Such excluded substances shall not be regulated pursuant to the provisions of this article but are subject to other provisions of applicable state law, rules and regulations.
30. "Labor peace agreement" means an agreement between an entity and a labor organization that, at a minimum, protects the state's proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the entity.
31. "Laboratory testing facility" means any independent laboratory capable of testing cannabis and cannabis products for adult-use and medical-use; cannabinoid hemp and hemp extract; or for all categories of cannabis and cannabis products as per regulations set forth by the state cannabis control board.
32. "License" means a written authorization as provided under this chapter permitting persons to engage in a specified activity authorized pursuant to this chapter.
33. "Licensee" means an individual or an entity who has been granted a license under this chapter.
S. 1527--C 6
34. "Medical cannabis" means cannabis as defined in this section, intended for a certified medical use, as determined by the board in consultation with the commissioner of health.
35. "Microbusiness" means a licensee that may act as a cannabis producer for the cultivation of cannabis, a cannabis processor, a cannabis distributor and a cannabis retailer under this article; provided such licensee complies with all requirements imposed by this article on licensed producers, processors, distributors and retailers to the extent the licensee engages in such activities.
36. "Nursery" means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.
37. "Office" or "office of cannabis management" means the New York state office of cannabis management.
38. "On-site consumption" means the consumption of cannabis in an area licensed as provided for in this chapter.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act in relation to constituting chapter 7-A of the consolidated laws, in relation to the creation of a new office of cannabis management, as an independent entity within the division of alcoholic beverage control, providing for the licensure of persons authorized to cultivate, process, distribute and sell cannabis and the use of cannabis by persons aged twenty-one or older; to amend the public health law, in relation to the description of cannabis; to amend the penal law, in relation to the growing and use of cannabis by persons twenty-one years of age or older; to amend the tax law, in relation to providing for the levying of taxes on cannabis; to amend the criminal procedure law, the civil practice law and rules, the general business law, the state finance law, the execu- tive law, the penal law, the alcoholic beverage control law, the general obligations law, the social services law, the agriculture and markets law and the vehicle and traffic law, in relation to making conforming changes; to amend the public health law, in relation to the definition of smoking; to amend the state finance law, in relation to establishing the New York state cannabis revenue fund, the New York state drug treat- ment and public education fund and the New York state community grants reinvestment fund; to amend chapter 90 of the laws of 2014 amending the public health law, the tax law, the state finance law, the general busi- ness law, the penal law and the criminal procedure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal certain provisions of the public health law relating to growing of cannabis and medical use of marihuana; to repeal article 221 of the penal law relating to offenses involving marihuana; to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; to repeal certain provisions of the crim- inal procedure law relating to certain criminal actions; and to repeal certain provisions of the agriculture and markets law relating to indus- trial hemp
Purpose or general idea of bill
The purpose of this bill is to establish a new office for the regulation of cannabis, to create a regulated and taxed cannabis industry in New York, and to provide for various social and economic justice initiatives related thereto.
Summary of provisions
Section 1 of the bill establishes the title.
Read the full memo (3,503 words)
Section 2 establishes a new Chapter 7-A of the consolidated laws enti- tled "Cannabis Law".
Article 1 of the Cannabis Law provides legislative findings and intent and offers definitions of terms.
Article 2 of the Cannabis Law establishes the Office of Cannabis Manage- ment; defines the powers of the cannabis control board, executive direc- tor, chief diversity officer, and state cannabis advisory board; estab- lishes rulemaking authority and procedures for the office; and provides for the distribution of licensing fees.
Article 3 of the Cannabis Law provides for the regulation of medical cannabis within the Office of Cannabis Management. Allows patients to be certified on the basis of their practitioner's professional opinion. Provides for regulation of registered organizations that produce, proc- ess and dispense medical cannabis. Provides for registered organizations to open additional dispensaries, for a total of eight, provided the first two additional dispensaries are located in an area to ensure access to medical cannabis in unserved and underserved areas of the state. Authorizes the Board to register additional medical cannabis organizations whose ownership reflects the demographics of the state. Promotes increased access to medical cannabis. Provides for Cannabis research license to encourage the study of medical uses of cannabis. Provides for registered organizations' participation in the adult-use market as specifically demarcated in Article 4 of cannabis law. Permits home cultivation of medical cannabis by participants in the medical cannabis program. Provides legal protections for participants in the medical cannabis program.
Article 4 of the Cannabis Law provides for the regulation of adult-use cannabis in the Office of Cannabis Management. Authorizes the Board and Executive Director to establish regulations, fees and criteria for licenses. Creates license categories, including cultivation, processing, cooperative, distribution, retail dispensary, on-site consumption, micro-business delivery, nursery, and registered organization adult-use. Authorizes the office to establish advertising and packaging regulations to promote public health and discourage use by those under 21. Requires laboratory testing of adult-use cannabis products. Requires creation and implementation of a social and economic equity plan to ensure diver- sity in ownership and employment. Provides for an incubator program to be part of the equity plan to promote success among equity licensees.
Article 5 of the Cannabis Law provides for the regulation of cannabinoid hemp and hemp extract. Authorizes the issuance of cannabinoid hemp processor and retailer licenses and provides for regulation of packaging and labeling. Requires laboratory testing of cannabinoid hemp products. Authorizes the creation of a New York State Hemp Workgroup. Grants the Board authority to issue special use permits. Subjects hemp-based food or food ingredients to the agriculture and markets law.
Article 6 of the Cannabis Law establishes general provisions. Prohibits unlicensed cannabis cultivation, processing, distribution or sale. Provides protections from discrimination against legal use of cannabis by adults aged 21 and older. Provides for the issuance of independent laboratory testing permits and special use permits. Provides for local opt-out at the town, city or village level through referendum. Permits home cultivation of adult-use cannabis for personal use. Authorizes penalties, including license revocation, for trafficking in cannabis on which no tax has been paid.
Section 3 of the bill updates definitions in the public health law.
Section 4 of the bill removes marihuana from the schedule of controlled substances.
Section 5 of the bill amends section 1399-n of the public health law.
Section 5-a of the bill amends section 1399-q of the public health law.
Section 6 of the bill repeals title 5-A of article 33 of the public health law.
Section 6-a of the bill repeals article 33-B of the public health law.
Section 6-b of the bill provides for transfer of oversight of the medical cannabis program from DOH to OCM.
Section 7 of the bill amends section 1311 of the civil practice law and rules to remove references to marihuana from the forfeiture statute.
Section 8 of the bill amends section 3397-b of the public health law to replace references to marihuana with the term "cannabis."
Section 9 of the bill amends Section 114-a of the vehicle and traffic law to include cannabis in the definition of drug.
Section 9-a of the bill makes conforming changes to the vehicle and traffic law.
Sections 9-b and 9-c make conforming changes to the navigation law.
Section 9-d of the bill makes conforming changes to the parks, recre- ation and historic preservation law.
Sections 10 and 10-a of the bill make conforming changes in Section 220.00 of the penal law.
Section 11 of the bill repeals subdivision 4 of section 220.06 of the penal law.
Section 12 of the bill repeals subdivision 10 of section 220.09 of the penal law.
Section 13 of the bill repeals subdivision 3 of section 220.34 of the penal law.
Section 14 of the bill repeals subdivision 6 of section 220.00 of the penal law.
Section 15 of the bill repeals article 221 of the penal law.
Section 16 of the bill adds a new article 222 to the penal law defining legal use of, and legal and unlicensed sale of, cannabis.
Sections 17 and 18 of the bill make conforming changes to the criminal procedure law.
Sections 19 to 21 are intentionally omitted.
Section 22 of the bill amends section 170.56 of the criminal procedure law to update references to cannabis-related offenses in the penal law and the alcohol beverage control law and providing for adjournment in contemplation of dismissal based upon a finding of exceptional circum- stances.
Section 23 is intentionally omitted.
Section 24 of the bill adds a new section 440.46-a to the criminal procedure law establishing a motion for resentence for convictions for marijuana related offense for acts that are no longer offenses under the provisions of this bill.
Section 25 of the bill amends section 700.05 of the criminal procedure law to remove references to certain marihuana offenses.
Section 26 of the bill amends section 1310 of the civil practice and rules to remove references to certain marihuana offenses.
Section 27 of the bill amends section 89-f of the general business law to remove references to certain marihuana offenses.
Section 28 of the bill repeals subdivision 2 of section 850 of the general business law to remove references to marihuana and hashish paraphernalia.
Section 29 of the bill amends section 850 of the general business law to remove references to marihuana and hashish paraphernalia.
Section 30 of the bill amends section 995 of the executive law to remove references to certain marihuana offenses.
Section 31 of the bill amends section 480.00 of the penal law to remove references to certain marihuana offenses.
Section 32 of the bill amends section 509-cc of the vehicle and traffic law to remove references to certain marihuana offenses.
Section 33 of the bill updates section 1194 of the vehicle and traffic law to specify testing limits for cannabis content.
Sections 34 and 35 of the bill amend article 20-b and section 171-a of the tax law to update terminology and cross references.
Section 36 is intentionally omitted.
Sections 37 and 38 of the bill amend section 490 and section 491 of the tax law to update terminology and cross references.
Section 39 of the bill adds a new Article 20-C to tax law titled "Tax on Adult-use Cannabis Products". Article 20-C imposes the following taxes at the time of wholesale-to-retail transfer of cannabis products: 18% excise tax; 1% in trust for counties or cities with a population of one million or more; and 3% in trust for municipalities. Requires licensees to file for a certificate of registration and to maintain complete and accurate tax records.
Section 40 of the bill amends section 1115 of the tax law to exempt adult use cannabis products from sales tax.
Section 41 of the bill updates the expiration dates in section 12 of chapter 90 of the laws of 2014 related to the medical use of cannabis.
Section 42 of the bill requires the cannabis control board to issue a report to the legislature and the governor on the impacts of this legis- lation no later than October 1, 2022. Section 43 of the bill amends section 102 of the alcoholic beverage control law to prohibit sale of cannabis on the same premises where alcoholic beverages are sold.
Section 44 of the bill amends section 12-102 of the general obligations law to remove references to certain marihuana offenses.
Section 45 of the bill amends section 488 of the social services law to exclude medical cannabis from the definition of unlawful use or adminis- tration of a controlled substance.
Section 46 of the bill amends section 490 of the social services law to require adoption of policies for the safe storage of medical cannabis by agencies overseen by the justice center.
Sections 47 to 49 make conforming changes to penal law by replacing references to marihuana with the term "cannabis" and updating cross references.
Section 50 of the bill amends section 89-h of the state finance law to replace references to marihuana with the term "cannabis."
Section 51 of the bill amends the state finance law by establishing a formula for distribution of the proceeds of cannabis taxes with three new sections: 99-hh, "New York state cannabis revenue fund"; 99-ii, "New York state drug treatment and public education fund"; and 99-jj, "New York state Community Grants Reinvestment Fund."
Sections 52 to 55 make conforming changes to the social services law.
Section 56 is intentionally omitted.
Section 57 of the bill makes conforming changes to section 712 of the family court act regarding PINS.
Section 58 of the bill amends section 1046 of the family court act clar- ifying that the legal use of cannabis by an adult is not prima facie evidence of child neglect.
Section 59 of the bill authorizes the New York state urban development corporation to provide low- or zero-interest loans to qualified social and economic equity applicants on the recommendation of the state canna- bis control board.
Section 60 of the bill authorizes the division of state police to increase DREs. Directs the division to submit a report on impairment technologies to the governor and the legislature by March 1, 2021.
Section 61 of the bill authorizes the commissioner of education to establish a grant program for school districts for certain school-based programs.
Section 62 of the bill authorizes the commissioner of OASAS to execute its activities as described in section fifty-one of this act.
Section 63 of the bill is the severability clause. Section 64 of the bill is the effective date.
Difference between original and amended version
The amendments include:
*Creation of a new Cannabis Control Board, which would be responsible for issuing adult-use cannabis licenses;
*Changes to the role of the Office of Cannabis Management (OCM);
*Changes to the structure of the State Cannabis Advisory Board;
*Clarifying that permits and licenses be issued in a manner that prior- itizes: social and economic equity applicants with a goal of 50% receiv- ing licenses; small business opportunities; avoiding market dominance in any industry sector; and reflecting state demographics;
*Establishing within the Office of Cannabis Management a separate Chief Equity Officer charged with the responsibilities of establishing a to social and economic equity plan; promoting equity applicants; and over- seeing equity plan compliance by ED and board.
*Clarifying how registered organizations can be granted adult-use licenses;
*Increasing the number of dispensing sites a registered organization may operate from four to eight, provided that the first two opened after the initial four are located in underserved or unserved geographic regions;
*Clarifying the adult-use license structure maintains a three tier license system of cultivator/producer/processor, distributor, and retailer;
*Establishing two new separate registered organization (RO) adult-use licenses: a vertically integrated adult-use license, limited to no more than 3 co-located dispensaries that must be at the same location as the medical dispensary, with a special one-time fee; and an RO adult-use cultivator license, not to be combined with any other adult-use license;
*Clarifying how delivery licensees may operate;
*Clarifying how on-site consumption licensees may operate;
*Strengthening and clarifying how the social equity plan and incubator programs function;
*Updating provisions related to hemp/CBD to reflect changes in the current law;
*Clarifying how cannabis in the workplace is treated;
*Modifying penalties to limit the proliferation of the illegal market;
*Expanding expungement, vacatur, and resentencing opportunities;
*Clarifying violations of operating a motor vehicle, vessel, or snowmo- bile while impaired by cannabis or concentrated cannabis; Updating the tax structure for adult-use cannabis by lowering the overall tax rate;
*Updating how adult-use cannabis revenue would be distributed; *Providing an authorization for appropriations for immediate spending on: school-based drug awareness and anti-vaping education program; expanded state police drug recognition expert training; and Drug Treat- ment and Public Education Fund purposes;
*Various technical corrections.
Justification
New York's marihuana policies are broken, unjust, and outdated. The Marihuana Regulation and Taxation Act (MRTA) is based on the recognition that New York's existing marihuana policies have failed to protect the welfare of our communities. Marihuana prohibition has thrust thousands of New Yorkers into the criminal justice system for non-violent offenses, denying many the fundamental right to participate in the demo- cratic process of voting and inhibiting otherwise law-abiding citizens' ability to access housing, student loans, employment opportunities, and other vital services. Additionally, rather than curtailing youth-mari- huana usage, existing marihuana laws have led to an illicit market that has done little to address marihuana usage by minors.
Existing marihuana laws have led to profligate spending of law enforce- ment resources and discriminatory police practices that have perpetuated systematic racism and discrimination increasing the prison population with non-violent offenders. Over the past two decades, New York has become the marihuana arrest capital of the country, with nearly 800,000 marihuana arrests and summons.
These arrests disproportionately impact the lives of African-American and Latinx communities. Black and Brown New Yorkers are swept into the criminal justice system for marihuana use while white New Yorkers have generally been afforded impunity due to the color of their skin. While government studies show that whites of all ages use marihuana at the same rate as People of Color, a stark difference in arrest rates remains. Across New York City, African-Americans are arrested on low- level marihuana charges at eight times the rate of white, non-Hispanic people and Latinxs are arrested at five times the rate of whites. Thus, one of the largest drivers of racial disparity in criminalization and incarceration rates is the inequity of how the law is applied in mari- huana arrests.
The intent of this act is to regulate, control, and tax cannabis. The MRTA will generate millions of dollars in new revenue, prevent access to marihuana by those under the age of twenty-one, reduce the illegal drug market and violent crime, help transition otherwise law-abiding citizens engaged in the Legacy market to the legal market, and create new indus- tries and increase employment. With the enactment of the MRTA, the New York State Legislature has an opportunity to end the racially disparate impact of existing marihuana policies and their enforcement.
Sixty million Americans now live in states where adult-use cannabis is legal. Nationwide, public perception of cannabis is growing more favora- ble, with 61% of the population supporting legalization. In NYC fatal drug overdoses are now four times more common than homicides. The New York Department of Health concluded that marihuana is a far safer pain reliever than opioids, and reduces the risk of fatal overdoses that are prevalent across the state and country. In states that have legalized cannabis, opioid overdose rates were 25% lower compared with states with no legal access to cannabis. Additionally, two-thirds of Americans also view cannabis as being safer than opioids in the management of pain.
There are roughly 1.5 million regular cannabis users -in New York, half of whom live in New York City. In May of 2018, NYC Comptroller Stringer released a report which estimates a $3.1 billion adult-use cannabis market for New York State, with $1.1 billion just in New York City. With the enactment of the MRTA New York State could realize a projected $436 million in tax revenue, while New York City could accrue an additional $336 million in tax revenue.
The need to repair the harms wrought on communities of color by the war on drugs requires a definitive framework, in statute, for reinvestment. This legislation directs 50% of the tax revenue to establish the Commu- nity Grants Reinvestment Fund, aimed at giving back to the communities that have been the most disproportionately affected by current marihuana laws. States across the country that have recently legalized marihuana, from Massachusetts to Alaska, are reinvesting in programs that offer people a new start through community re-entry programs, schools, job development, drug treatment, and legal services. New York has the oppor- tunity to become a leading example in sustainable reinvestment with this explicitly dedicated revenue percentage and type of fund.
Prior legislative history
2017-2018: A.3506C Peoples-Stokes/S.3040C 2015-2016: A.3089A Peoples-Stokes/S.1747 2013-2014: A.8341 Peoples-Stokes /S.6005
Fiscal implications for state and local governments
Significant increase of revenue for state and local governments.
Effective date
This act shall take effect immediately; provided, however, that sections six and six-a of this act shall take effect six months after the full cannabis control board created by article two of the cannabis law has been appointed and provided that the governor shall notify the legislative bill drafting commission upon such full appoint- ment in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law; provided, further that the expungement of marihuana convictions under section 160.50 of the criminal procedure law, added by the amendment in section seventeen of this act, shall occur promptly and in any event no later than one year after the effective date of this act; and provided, further, that sections thirty-nine and forty of this act shall take effect April 1, 2021, and shall apply on and after such date to the sale or transfer of adult-use cannabis products to a retail dispensary; provided, further, that the amendments to article 179 of the penal law made by section forty-seven of this act shall not affect the repeal of such article and shall be deemed to be repealed therewith; provided, further, that the amendments to section 89-h of the state finance law made by section fifty of this act shall not affect the repeal of such section and shall be deemed repealed therewith.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.