BILL NUMBER: S5641
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:
To 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.
 
JUSTIFICATION:
Illicit cannabis sold at tobacco retailers, smoke shops, bodegas and
delis undermines the legitimate and regulated adult-use cannabis market
in New York State. The proliferation and brazenness of this illegal
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 in 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, and seizures of illicit cannabis; it will
also directly impact their privilege to possess a tobacco, liquor, or
gaming license and ultimately their livelihoods.
 
LEGISLATIVE HISTORY:
2023-24: S8847 - Referred to Budget and Revenue
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Immediately.

Statutes affected:
S5641: 480-a tax law, 480-a(4) tax law, 118 alcoholic beverage control law, 118(1) alcoholic beverage control law, 1607 tax law