BILL NUMBER: S7998A
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the cannabis law and the penal law, in relation to
forfeiture of property involved in the unlawful sale of cannabis
 
PURPOSE OR GENERAL IDEA OF BILL:
To authorize all municipalities to stop operations of unlicensed canna-
bis retailers and seize merchandise.
 
SUMMARY OF PROVISIONS:
Section 1 is the short title.
Section 2 amends Subdivision 8 of section 132 of the cannabis law, as
added by section 17 of part UU of chapter 56 of the laws of 2023, to
make unlawfully selling cannabis in connection with a business a class a
misdemeanor, and grants municipalities the authority to order the imme-
diate closure of such business and seize all merchandise.
Section 3 amends the title heading of title W of part 4 of the penal
law, as amended by chapter 920 of the laws of 1969, to add cannabis.
Section 4 amends the penal law by adding a new section 455 providing for
the seizure and forfeiture of property involved in the unlawful sale of
cannabis, and the permitted sale of property other than cannabis and
cannabis-infused products.
Section 5 is the effective date.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
The A-print amends Section 2 to clarify the terms to order closure.
 
JUSTIFICATION:
The Marihuana Regulation and Taxation Act of 2021 established a licen-
sure process for retail dispensaries legally to sell recreational adult
use cannabis. It vested a Cannabis Control Board with the authority to
issue stop work orders and direct seizure of merchandise from unlawful
retailers. The lack of authority for municipalities to interdict unlaw-
ful retailers, combined with limited resources from the Board, has
resulted in the proliferation of so-called "smoke shops" openly selling
illegal, unregulated cannabis and other contraband with near total impu-
nity. In New York City alone, there are an estimated 1,500 illegal smoke
shops. Mayor Eric Adams remarked, "I could clear up the smoke shops
problem in 30 days. They haven't given us the power."
The vast amount of contraband and loose cash in these smoke shops have
made them tantalizing targets for robberies and hotbeds of crime. This
has put communities, shop employees, and their customers in extreme
danger. Robberies of smoke shops in New York City increased from 137 in
2021 to 593 in 2022. At least five people were fatally shot in smoke
shops in 2023. These shops are also unfair competition to licensed
dispensaries, who cannot afford to sell their rigorously tested and
regulated cannabis at the prices smoke shops offer.
The Stop Marijuana Over-proliferation and Keep Empty Operators of Unli-
censed Transactions (SMOKEOUT) Act grants all municipalities across our
Great State the authority to order the closure of unlicensed cannabis
retailers and seize all merchandise, swiftly ending the blight of ille-
gal smoke shops once and for all.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S7998: 132 cannabis law, 132(8) cannabis law
S7998A: 132 cannabis law, 132(8) cannabis law