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A08670 Summary:

BILL NOA08670
 
SAME ASSAME AS S06345
 
SPONSORGunther
 
COSPNSR
 
MLTSPNSR
 
Add 399-hh, Gen Bus L; amd 480, 1605 & 1607, Tax L; amd 105, 106 & 118, ABC L
 
Prohibits the sale or distribution of kratom.
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A08670 Actions:

BILL NOA08670
 
01/12/2016referred to economic development
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A08670 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8670
 
SPONSOR: Gunther
  TITLE OF BILL: An act to amend the general business law, the tax law and the alcoholic beverage control law, in relation to prohibiting the sale or distribution of kratom   PURPOSE: Prohibits the sale and distribution of Kratom   SUMMARY OF PROVISIONS: Section 1 amends the general business law by adding a new Section 399-hh of the public health law to prohibit the sale and distribution of Kratom and any of its derivatives including, but not limited to any material, compound, mixture and preparation containing Mitragnya Speciosa. This section further includes fines and penalties including but not limited to the prohibition of selling cigarettes and tobacco products, lottery tickets and alcoholic beverages for a period of five years. Section 2 amends the tax law and states that any offender who violates this law more than three times in five years is subject to having their tobacco, lottery and alcohol licenses denied for a period of five years. Section 3 amends the tax law and states that any offender that violates the Kratom ban more than three times in a five year period will have their license to sell cigarettes suspended. Section 4 amends the tax law and states that any offender that violates the Kratom ban more than three times in a five year period will have their license to sell lottery tickets suspended. Section 5 amends the tax law and state that any offender that violates the Kratom ban more than three times in a five year period will have their license to sell alcoholic beverages suspended. Section 6 amends the alcoholic beverage control law and bans retailers from being issued a license to sell alcohol for off-premise consumption if they have violated the Kratom ban more than three times in a five year period. Section 7 amends the alcoholic beverage control law and bans retailers from being issues a license to sell alcohol for on-premise consumption if they have violated the Kratom ban more than three times in a five year period. Section 8 amends the alcoholic beverage control law and gives the State Liquor Authority power to revoke a license to sell alcohol to any retailer that has violated the Kratom ban more than three times in a five year period. Section 9 provides for an effective date of the first of January next succeeding the date on which is shall have become law.   JUSTIFICATION: Kratom was first introduced to abusers of heroin and opioids in the United States as a substance meant to end cravings and withdrawal symptoms. However, recent reports have shown that it has led to the opposite, and individuals are taking Kratom to get a high similar to that of heroin and opioids. Reports have also mentioned countless instances of individuals taking Kratom and becoming suicidal, which led them to return to heroin. The United States Food and Drug Administration banned the import of Kratom in 2014, however there is no federal law that bans Kratom in its entirety. Banning the sale and distribution of this potent substance is crucial to ensuring the safety and welfare of New Yorkers, especially those who are battling substance abuse.   LEGISLATIVE HISTORY: New Bill.   FISCAL IMPLICATIONS: None   EFFECTIVE DATE: This act shall take effect on the first of January next succeeding the date on which it shall have become law
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A08670 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8670
 
                   IN ASSEMBLY
 
                                    January 12, 2016
                                       ___________
 
        Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
          tee on Economic Development
 
        AN ACT to amend the general business law, the tax law and the  alcoholic
          beverage  control law, in relation to prohibiting the sale or distrib-
          ution of kratom
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  399-hh to read as follows:
     3    §  399-hh.  Sale  or  distribution  of  kratom; prohibited. 1. For the
     4  purposes of this section, "kratom" means  any  form  or  derivatives  of
     5  mitragyna speciosa and shall include, but not be limited to, any materi-
     6  al,  compound,  mixture  or  preparation  that  is  not  designated as a
     7  controlled substance pursuant to section thirty-three hundred six of the
     8  public health law.
     9    2. No person, firm,  corporation,  partnership,  association,  limited
    10  liability company or other entity shall sell, offer for sale, distribute
    11  or give away, for retail, wholesale or promotional purposes any kratom.
    12    3.  Any  person,  firm, corporation, partnership, association, limited
    13  liability company or other entity that is  found  by  a  local  criminal
    14  court,  as defined in subdivision three of section 10.10 of the criminal
    15  procedure law, to have violated the provisions  of  subdivision  two  of
    16  this  section  shall  be  subject  to  a  civil  penalty of two thousand
    17  dollars; provided, however, that upon a finding of a  second  or  subse-
    18  quent  violation  within any period of five years, the violator shall be
    19  subject to a civil penalty  of  five  thousand  dollars;  and  provided,
    20  further,  that  upon a finding of a third or subsequent violation within
    21  any period of five years, the court shall provide notice thereof to  the
    22  commissioner  of  taxation  and finance, the division of the lottery and
    23  the state liquor authority, and the violator shall  be  prohibited  from
    24  selling  cigarettes and tobacco products, lottery tickets, and alcoholic
    25  beverages for a period of five years.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13483-01-6

        A. 8670                             2
 
     1    § 2. Paragraphs (e) and (f) of subdivision 2 of section 480 of the tax
     2  law, as amended by chapter 744 of the laws of 1990, are  amended  and  a
     3  new paragraph (g) is added to read as follows:
     4    (e)  Any controlling person of such applicant has committed any of the
     5  acts specified in subdivision three of this section within the preceding
     6  five years, [or]
     7    (f) Such applicant or any controlling person has been  finally  deter-
     8  mined  to have violated any of the provisions of this article or article
     9  twenty-A of this chapter, or any rule or regulation adopted pursuant  to
    10  this article or article twenty-A of this chapter[.], or
    11    (g)  Such  applicant  or any controlling person has been determined to
    12  have violated subdivision two of section three hundred ninety-nine-hh of
    13  the general business law three or more times during  a  period  of  five
    14  years, in which case the violator shall be denied a license for a period
    15  of five years after the last such violation.
    16    § 3. Subparagraphs (iii) and (iv) of paragraph (b) of subdivision 3 of
    17  section  480  of the tax law, subparagraph (iii) as added by chapter 860
    18  of the laws of 1987 and subparagraph (iv) as amended by  chapter  61  of
    19  the  laws  of  1989,  are amended and a new subparagraph (v) is added to
    20  read as follows:
    21    (iii) Has impersonated any person represented to be a wholesale dealer
    22  under this article but not in fact licensed under this section, [or]
    23    (iv) Has knowingly aided and abetted the sale of cigarettes or tobacco
    24  products by a person which such licensee or controlling person knows (A)
    25  has not been licensed by the commissioner of taxation  and  finance  and
    26  (B)  is a wholesale dealer pursuant to the terms of subdivision eight of
    27  section four hundred seventy of this chapter[.], or
    28    (v) Has been determined to have violated subdivision  two  of  section
    29  three  hundred  ninety-nine-hh of the general business law three or more
    30  times during a period of  five  years,  in  which  case  the  violator's
    31  license shall be cancelled or suspended for a period of five years.
    32    § 4. Subdivision a of section 1605 of the tax law, as amended by chap-
    33  ter 217 of the laws of 2011, is amended to read as follows:
    34    a.  The  division  may  license as agents to sell lottery tickets such
    35  persons as in its opinion will best  serve  public  convenience,  except
    36  that  no  license  shall  be  issued to any person to engage in business
    37  exclusively as a lottery sales agent; and  provided,  further,  that  no
    38  license  shall  be  issued to any person who has been determined to have
    39  violated subdivision two of section three hundred ninety-nine-hh of  the
    40  general  business law three or more times during a period of five years,
    41  in which case the violator shall be denied a license  for  a  period  of
    42  five years after the last such violation.  The division may license such
    43  persons  as  in its opinion are suitable to participate in video lottery
    44  gaming pursuant to section sixteen hundred seventeen-a of this article.
    45    § 5. Section 1607 of the tax law is amended by adding a  new  subdivi-
    46  sion i to read as follows:
    47    i.  Three  or  more  violations  of  subdivision  two of section three
    48  hundred ninety-nine-hh of the general business law within any period  of
    49  five  years,  in  which  case, the division shall suspend the violator's
    50  license for a period of five years.
    51    § 6. Section 105 of the alcoholic beverage control law is  amended  by
    52  adding a new subdivision 4 to read as follows:
    53    4.  No  person shall receive a license to engage in the retail sale of
    54  alcoholic beverages for off-premises consumption, who  has  been  deter-
    55  mined  to have violated subdivision two of section three hundred ninety-
    56  nine-hh of the general business law three or more times during a  period

        A. 8670                             3
 
     1  of  five years, in which case the violator shall be denied a license for
     2  a period of five years after the last such violation.
     3    §  7.  Section 106 of the alcoholic beverage control law is amended by
     4  adding a new subdivision 4-b to read as follows:
     5    4-b. No person shall receive a license to engage in the retail sale of
     6  alcoholic beverages for on premises consumption, who has been determined
     7  to have violated subdivision two of section three hundred ninety-nine-hh
     8  of the general business law three or more times during a period of  five
     9  years, in which case the violator shall be denied a license for a period
    10  of five years after the last such violation.
    11    §  8.  Section 118 of the alcoholic beverage control law is amended by
    12  adding a new subdivision 1-a to read as follows:
    13    1-a. A license or permit issued pursuant  to  this  chapter  shall  be
    14  suspended  for  a  period of five years when the holder thereof has been
    15  determined to have violated subdivision two  of  section  three  hundred
    16  ninety-nine-hh  of the general business law three or more times during a
    17  period of five years.
    18    § 9. This act shall take effect on the first of January next  succeed-
    19  ing the date on which it shall have become a law.
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