NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6844
SPONSOR: Palmesano 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:
A.4220; 2024 - held in Codes
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
6844
2025-2026 Regular Sessions
IN ASSEMBLY
March 14, 2025
___________
Introduced by M. of A. PALMESANO, ANGELINO, K. BROWN, FRIEND, GALLAHAN,
McDONOUGH, MIKULIN -- read once and referred to the Committee on Codes
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
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 222.50 of the penal law, as added by chapter 92 of
2 the laws of 2021, is amended to read as follows:
3 § 222.50 Criminal sale of cannabis in the third degree.
4 A person is guilty of criminal sale of cannabis in the third degree
5 when:
6 1. [he or she] such person knowingly and unlawfully sells more than
7 three ounces of cannabis or more than twenty-four grams of concentrated
8 cannabis; or
9 2. being twenty-one years of age or older, [he or she] such person
10 knowingly and unlawfully sells or gives, or causes to be given or sold,
11 cannabis or concentrated cannabis to a person less than twenty-one years
12 of age; except that in any prosecution under this subdivision, it is a
13 defense that the defendant was less than three years older than the
14 person under the age of twenty-one at the time of the offense. This
15 subdivision shall not apply to designated caregivers, practitioners,
16 employees of a registered organization or employees of a designated
17 caregiver facility acting in compliance with article three of the canna-
18 bis law[.]; or
19 3. any person, while employed or operating a commercial establishment,
20 store, club, or facility, who knowingly and unlawfully sells, transfers,
21 gifts or trades cannabis without an appropriate license or authority
22 under the cannabis law. Any person convicted under this subdivision
23 shall act to preclude such person from seeking, qualifying or receiving
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01895-01-5
A. 6844 2
1 any permit, license or authority to perform any activities under the
2 cannabis law.
3 Criminal sale of cannabis in the third degree is a class A misdemea-
4 nor.
5 § 2. Section 222.55 of the penal law, as added by chapter 92 of the
6 laws of 2021, is amended to read as follows:
7 § 222.55 Criminal sale of cannabis in the second degree.
8 A person is guilty of criminal sale of cannabis in the second degree
9 when:
10 1. [he or she] such person knowingly and unlawfully sells more than
11 sixteen ounces of cannabis or more than five ounces of concentrated
12 cannabis; or
13 2. being twenty-one years of age or older, [he or she] such person
14 knowingly and unlawfully sells or gives, or causes to be given or sold,
15 more than three ounces of cannabis or more than twenty-four grams of
16 concentrated cannabis to a person less than eighteen years of age. This
17 subdivision shall not apply to designated caregivers, practitioners,
18 employees of a registered organization or employees of a designated
19 caregiver facility acting in compliance with article three of the canna-
20 bis law[.]; or
21 3. any person, while employed or operating a commercial establishment,
22 store, club, or facility, who knowingly and unlawfully sells, transfers,
23 gifts or trades cannabis without an appropriate license or authority
24 under the cannabis law. Any person convicted under this subdivision
25 shall act to preclude such person from seeking, qualifying or receiving
26 any permit, license or authority to perform any activities under the
27 cannabis law.
28 Criminal sale of cannabis in the second degree is a class E felony.
29 § 3. Section 222.60 of the penal law, as added by chapter 92 of the
30 laws of 2021, is amended to read as follows:
31 § 222.60 Criminal sale of cannabis in the first degree.
32 A person is guilty of criminal sale of cannabis in the first degree
33 when [he or she]:
34 1. such person knowingly and unlawfully sells more than five pounds of
35 cannabis or more than two pounds of concentrated cannabis; or
36 2. any person, while employed or operating a commercial establishment,
37 store, club, or facility, who knowingly and unlawfully sells, transfers,
38 gifts or trades cannabis without an appropriate license or authority
39 under the cannabis law. Any person convicted under this subdivision
40 shall act to preclude such person from seeking, qualifying or receiving
41 any permit, license or authority to perform any activities under the
42 cannabis law.
43 Criminal sale of cannabis in the first degree is a class D felony.
44 § 4. Section 132 of the cannabis law is amended by adding a new subdi-
45 vision 1-b to read as follows:
46 1-b. Any commercial establishment, store, club, or facility, that
47 knowingly and unlawfully sells, transfers, gifts or trades any amount of
48 cannabis without an appropriate license or authority under this chapter
49 shall be subject to a civil penalty of not more than ten thousand
50 dollars for a first violation; not more than twenty-five thousand
51 dollars for a second violation; and not more than fifty thousand dollars
52 for a third violation and each subsequent violation thereafter. The
53 civil penalty shall be payable to the office of cannabis management, who
54 shall be required to remit such payments to the county in which the
55 violating establishment is located.
56 § 5. This act shall take effect immediately.
