BILL NUMBER: S1488
SPONSOR: O'MARA
 
TITLE OF BILL:
An act to amend the penal law and the cannabis law, in relation to
including certain acts and subsequent penalties in the criminal sale of
cannabis
 
PURPOSE:
The purpose of this bill is to define unlawful activities of persons
utilizing commercial establishments as a front to distribute cannabis in
violation of the Cannabis Control Law, and to impose civil penalties
against these entities for initial and recurrent violations.
 
SUMMARY OF PROVISIONS:
Section 1: Adds a new sub-division 3 to section 222.50 of the penal law
to prohibit "any person, while employed or operating a commercial estab-
lishment, store, club, or facility, who knowingly and unlawfully sells,
transfers, gifts or trades cannabis without appropriate license or
authority under the cannabis law. Any person convicted under this subdi-
vision shall act to preclude the person from seeking, qualifying or
receiving any permit, license or authority to perform any activities
under the cannabis law."
Section 2: Adds a new sub-division 3 to section 222.55 of the penal law
to prohibit "any person, while employed or operating a commercial estab-
lishment, store, club, or facility, who knowingly and unlawfully sells,
transfers, gifts or trades three or more ounces of cannabis without
appropriate license or authority under the cannabis law. Any person
convicted under this subdivision shall act to preclude the person from
seeking, qualifying or receiving any permit, license or authority to
perform any activity under the cannabis law".
Section 3: Adds a new sub-division 2 to section 222.60 of the penal law
to prohibit "any person, while employed or operating a commercial estab-
lishment, store, club, or facility, who knowingly and unlawfully sells,
transfers, gifts or trades sixteen or more ounces of cannabis without
appropriate license or authority under the cannabis law. Any person
convicted under this sub-division shall act to preclude the person from
seeking, qualifying or receiving any permit, license or authority to
perform any activities under the cannabis law".
Section 4: Adds a new sub-division 2 to section 132 of the cannabis law
to impose civil penalties against commercial establishments, stores,
clubs, or facilities that "knowingly and unlawfully sells, transfers,
gifts or trades any amount of cannabis without an appropriate license or
authority". The civil penalties shall be payable to the office of canna-
bis management, who shall be required to remit such payments to the
county in which the violating establishment is located.
 
JUSTIFICATION:
Since New York State has legalized the recreational use of cannabis,
certain commercial establishments, known as "sticker stores," have used
their businesses as a front to sell or gift cannabis without the requi-
site lawful authority, or permission from the State. Sticker stores have
taken advantage of what some consider a "loophole" in the state cannabis
law because the law's language does not expressly prohibit the "gifting"
of cannabis products to individuals. To get around this "loophole,"
these establishments sell a number of inexpensive items, such as stick-
ers, at a substantially inflated price and then provide marijuana as a
"free gift" along with their purchase. Despite enforcement actions taken
by the Office of Cannabis Management, these stores continue to violate
the law with minimal consequences. This proposal would make clear that
no such "loophole" exists and would empower the State to prosecute these
individuals both criminally and civilly in order to deter businesses
from participating in these unlawful activities. Further, any civil
penalties collected by the Office of Cannabis Management would be remit-
ted to the county of the violating establishment.
 
LEGISLATIVE HISTORY:
2022: 59365
2023: 52177
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S1488: 222.50 penal law, 222.55 penal law, 222.60 penal law, 132 cannabis law