BILL NUMBER: S8847
SPONSOR: BAILEY
 
TITLE OF BILL:
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
 
PURPOSE:
This bill would permit the revocation of a tobacco, liquor or gaming
license of a business found to have sold or possessed illicit cannabis.
 
SUMMARY OF PROVISIONS:
Section 1. § 480-a(4)(a) of the tax law is amended to include if a
retailer or an agent under this article possesses illicit cannabis as
defined in § 136 of the cannabis law or found to be in violation of
subdivision 1 of § 125 of the cannabis law.
Section 2. § 118(1) of the alcohol beverage control law is amended to
include possession or sale of illicit cannabis as defined by § 136 of
the cannabis law.
Section 3. § 1607 of the tax law is amended to add a new subdivision to
include a violation of § 136 of the cannabis law provided that a license
shall be revoked upon a finding that such licensee possessed or sold
illicit cannabis, as defined by § 136 of the cannabis law.
Section 4. Effective date.
 
JUSTIFICATION:
Illicit cannabis that is sold at tobacco retailers, smoke shops, bodegas
and delis undermine the legitimate and regulated adult-use cannabis
market in New York State. The proliferation and brazenness of this ille-
gal activity has resulted in targeted inspections of businesses by law
enforcement, the imposition of fines on offenders, arrests, and the
seizure of illicit cannabis.
While additional enforcement authority under existing cannabis law
allows for emergency relief to initiate civil proceedings for a perma-
nent injunction against the owner, lessor, and lessee of a building or
premises where illicit cannabis sales have taken place, the persistence
of businesses that continue to engage in this illegal behavior, some
opening up shortly after a targeted inspection, frustrates many through-
out our communities and remains among the top quality of life problems
in New York.
This bill would permit the revocation of a tobacco, liquor or gaming
license of a business that is found to have sold or possessed illicit
cannabis. It sends a clear message to tobacco retailers, smoke shops,
bodegas and delis that the consequences for their illegal actions are
not limited to fines, arrests or seizures of illicit cannabis but also
would directly impact their privilege to possess a tobacco, liquor or
gaming license and ultimately their livelihoods.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S8847: 480-a tax law, 480-a(4) tax law, 118 alcoholic beverage control law, 118(1) alcoholic beverage control law, 1607 tax law