Epstein, Mosley, Seawright, Simon, Skartados, Steck, Taylor
Amd Various Laws, generally
Enacts the "marihuana regulation and taxation act"; relates to the description of marihuana, and the growing of and use of marihuana by persons twenty-one years of age or older; makes technical changes regarding the definition of marihuana; relates to the qualification of certain offenses involving marihuana and exempts certain persons from prosecution for the use, consumption, display, production or distribution of marihuana; provides for the licensure of persons authorized to produce, process and sell marihuana; levies an excise tax on certain sales of marihuana; repeals certain provisions of the penal law relating to the criminal sale of marihuana and provisions of the general business law relating to drug paraphernalia; makes an appropriation therefor.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A3506C
SPONSOR: Peoples-Stokes (MS) TITLE OF BILL:
An act to amend the public health law, in relation to the description of
marihuana, and the growing of and use of marihuana by persons twenty-one
years of age or older; to amend the civil practice law and rules, in
relation to removing certain references to marihuana relating to forfei-
ture actions; to amend the vehicle and traffic law, in relation to
making technical changes regarding the definition of marihuana; to amend
the penal law, in relation to the qualification of certain offenses
involving marihuana and to exempt certain persons from prosecution for
the use, consumption, display, production or distribution of marihuana;
to amend the alcoholic beverage control law, in relation to providing
for the licensure of persons authorized to produce, process and sell
marihuana; to amend the state finance law, in relation to establishing
the New York state marihuana revenue fund, the New York state drug
treatment education fund and the New York state community grants rein-
vestment fund; to amend the tax law, in relation to providing for the
levying of an excise tax on certain sales of marihuana; to amend the
criminal procedure law, the civil practice law and rules, the general
business law, the state finance law, the executive law, the penal law
and the vehicle and traffic law, in relation to making conforming chang-
es; to amend the alcoholic beverage control law, in relation to alcohol
or substance use disorder training awareness programs; to amend the
state finance law, in relation to a revolving loan fund; to amend the
family court act, in relation to making conforming changes; to repeal
sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35 and
221.40 of the penal law relating to the criminal possession and sale of
marihuana; to repeal paragraph (f) of subdivision 2 of section 850 of
the general business law relating to drug related paraphernalia; to
repeal section 150.75 of the criminal procedure law relating to appear-
ance tickets for certain marihuana offenses; and making an appropriation
therefor
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to establish a regulated and taxed marijuana
industry in New York, and to provide for various social and economic
justice initiatives related thereto.
SUMMARY OF PROVISIONS:
Section one of the bill is the title.
Section two of the bill is comprised of legislative findings and state-
ments of purpose.
Section three of the bill amends section 3302 of the Public Health Law
to eliminate the definitions of Concentrated Cannabis and Marihuana from
the controlled substances act.
Section four of the bill amends section 3306 of the Public Health Law to
remove the classification of marihuana as a schedule 1 hallucinogen on
the schedules of controlled substances.
Section five of the bill amends section 3382 of the Public Health Law to
allow home cultivation of up to 6 marihuana plants by individuals twen-
ty-one years or older.
Section six of the bill amends section 1311 of the Civil Practice Law
and Rules to exclude marihuana possession as grounds for a currency
forfeiture action.
Section seven of the bill amends section 3397-b of the public health law
to make conforming changes in definition of marihuana.
Section eight of the bill amends section 114a of the Vehicle and Traffic
Law adding marihuana and concentrated cannabis to the definition of drug
for purposes of driving under the influence.
Section nine of the bill amends section 220.0 of the Penal Law to update
the definition of marihuana and include a definition for concentrated
cannabis as a controlled substance.
Sections ten to twelve of the bill update cross references to amended
sections of the penal law.
Section thirteen of the bill amends section 220.50 of the Penal Law to
exclude marihuana paraphernalia from criminal use of drug paraphernalia.
Section fourteen of the bill repeals sections 221.05, 221.10, 221.15.
221. 20, 221.25, 221.30 and 221.40 related to illegal possession and
sale of marihuana.
Section fifteen of the bill adds new section 221.05 and 211.05-a to the
Penal Law to establish conditions for legal personal use and cultivation
of marihuana and penalties for violations of those conditions.
Section sixteen of the bill amends section 221.45 of the Penal Law to
define unlicensed sale of marihuana in the third degree.
Section seventeen of the bill amends section 221.50 of the Penal Law
bill to define unlicensed sale of marihuana in the second degree.
Section eighteen of the bill amends section 221.55 of the Penal Law, to
define unlicensed sale of marihuana in the first degrees.
Section nineteen of the bill adds a new section 221.60 to the Penal Law
establishing that those acting in compliance with the Alcohol Beverage
Control Law are exempt from sections § 220 and § 221 of the New York
Penal Law.
Section twenty of the bill amends subdivision 8 of section 1399-n of the
Public Health Law to include marihuana in list of substances subject to
smoking regulations.
Section twenty-one of the bill amends section 2 of the Alcoholic Bever-
age Control Law to include regulation of marihuana products in the
purpose of this chapter.
Section twenty-two of the bill amends section 3 of the Alcoholic Bever-
age Control Law to include definitions of Concentrated Cannabis, Mari-
huana, and Marihuana consumers, processors, producer, products, infused
products, retailer and retailer for on-premises consumption, and unrea-
sonably impracticable.
Section twenty-three of the bill amends section 65-b of the Alcoholic
Beverage Control law to ban use of fraudulent documents for the purpose
of purchasing marihuana products by persons under twenty-one years of
age, and establishing procedures for sellers of marihuana products to
prevent such sales.
Section twenty-four of the bill amends section 65-c of the Alcoholic
Beverage Control law to make possession of marihuana by those under
twenty-one unlawful, and to establish penalties and requirements for
completion of a drug awareness program for those who violate this
section.
Section twenty-five of the bill adds a new section 65Le to the Alcoholic
Beverage Control law establishing restrictions for personal use of mari-
huana, including smoking in public or where smoking tobacco is banned,
possessing, smoking or ingesting on school grounds, and smoking or
ingesting while operating a motor vehicle, and establishing penalties
for violations of this section.
Section twenty-six of the bill amends section 140 of the Alcoholic
Beverage Control Law to extend the option of any town or city to ban
sale of alcoholic beverages to sales of marihuana.
Section twenty-seven of the bill amends section 141 of the Alcoholic
Beverage Control Law to apply the rules governing referendum procedures
for banning sales of alcohol by towns to sales of marihuana.
Section twenty-eight of the bill amends section 142 of the Alcoholic
Beverage Control Law to establish that sale of marihuana is prohibited
in any city that passes a referendum against such sales.
Section twenty-nine of the bill amends section 147 of the Alcoholic
Beverage Control Law to establish that if the rules regarding future
referendums will also apply to marihuana sales.
Section thirty of the bill renumbers article 11 of the Alcoholic Bever-
age Control Law as article 12 and sections 160, 161, 162, 163 and 164 as
sections 200, 201, 202, 203 and 204.
Section thirty-one of the bill adds a new Article 11 to the Alcoholic
Beverage Control Law providing establishment of a bureau of marihuana
policy to provide for the regulation of marihuana production, process-
ing, testing, distribution and sale within the State Liquor Authority,
establishing licensing and permitting rules, and providing for penalties
for violations.
Section thirty-two of the bill adds new sections 99-ff, 99-gg, and 99-hh
to the State Finance law establishing the marihuana revenue fund, the
drug treatment public education fund, and the community grants reinvest-
ment funds. These funds will distribute revenue generated by this legis-
lation for administrative costs, data tracking and reporting, program
evaluation, public education, drug treatment and health education, and
grants to support community-based programs providing services including
job placement, job skills, adult education, mental health, legal
services addressing barriers to reentry, women's health and other commu-
nity-based supportive services in communities disproportionately
affected by past federal and state drug policies.
Section thirty-three of the bill adds a new Article 18-A to the New York
Tax Code imposing an excise tax on marihuana and concentrated cannabis,
and establishing a formula for distribution of the proceeds of this tax.
Proceeds from the tax will be placed in a fund established by the comp-
troller known as the marihuana revenue fund. Localities would also be
authorized to impose a sales tax of up to two percent on retail sales.
Section thirty-four of the bill amends subdivision 3 of section 160.50
of the criminal procedure law to update references to clearing of
records in criminal actions terminated in favor of the accused.
Section thirty-five of the bill amends subdivision 4 of section 160.50
of the criminal procedure law to update references to provide for
persons to apply for sealing of records.
Section thirty-six of the bill amends section 170.56 of the criminal
procedure law providing for suspension of court proceedings and adjourn-
ment in contemplation of dismissal for exceptional circumstances in
marihuana related violations.
Section thirty-seven of the bill updates cross references in section
210.46 of the criminal procedure law.
Section thirty-eight of the bill amends section 440.10 of the criminal
procedure law to provide for vacating convictions based on marihuana
possession in cases where the offense would no longer be a crime under
this act.
Section thirty-nine of the bill amends section 440.10 of the criminal
procedure law to update cross references.
Section forty of the bill adds a new section 440.46-a providing for
motions to resentence persons convicted of marihuana offenses under
penal laws prior to the passage of this legislation.
Section forty-one through forty-three of the bill of the bill update
cross references to amended sections of the criminal procedure law,
civil practice law and rules, and general business law.
Section forty-four of the bill repeals paragraph f of subdivision 2 of
section 850 of the general business law.
Section forty-five of the bill amends section 850 of the general busi-
ness law to remove references to marihuana and hashish paraphernalia.
Section forty-six of the bill updates cross references in the state
finance law to amended sections in the alcoholic beverage control law.
Section forty-seven through forty-nine of the bill update definitions
and cross references in the executive law, penal law, and vehicle and
traffic law.
Section fifty of the bill updates section 1194 of the vehicle and traf-
fic law to specify testing limits for marihuana content.
Section fifty-one through fifty-four of the bill amends the alcoholic
beverage control law to include the development of substance use disor-
der training awareness programs within the powers of the authority.
Section fifty-five of the bill repeals section 150.75 of the criminal
procedure law.
Section fifty-six of the bill updates cross references in the family
court act.
Section fifty-seven of the bill adds a new section 99-ii to the state
finance law to establish a marihuana microbusiness and marihuana license
revolving loan fund.
Section fifty-eight of the bill provides for an appropriation of five
million dollars to the State Liquor Authority for implementation of this
act.
Section fifty-nine of the bill is a severability clause.
Section sixty of the bill is the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
The amended version of the bill provides technical amendments, clarifies
that personal cultivation cannot be banned by local jurisdictions, clar-
ifies that regulating/prohibiting marijuana retail licenses at the local
level is vested with cities, towns, and villages, provides robust public
outreach and education on license opportunities and other applicable
regulations, provides maintenance of efforts related to state education
funding, provides a more robust social equity plan that prioritizes
licenses for small minority and women owned businesses, provides labor
peace requirements for businesses with more than 25 employees, and
establishes a revolving loan fund to assist license applicants obtain
necessary capital, with a priority to give loans to small, minority, and
women owned businesses.
JUSTIFICATION:
New York's marihuana policies are broken, unjust, and outdated. The
Marihuana Regulation and Taxation Act (MRTA) is based on the recognition
that New York's existing marihuana policies have failed to protect the
welfare of our communities. Marihuana prohibition has thrust thousands
of New Yorkers into the criminal justice system for non-violent
offenses, inhibiting an otherwise law-abiding citizen's ability to
access housing, student loans, employment opportunities, voting, and
other vital services. Additionally, rather than curtailing youth-mari-
huana usage, existing marihuana laws have led to an illicit market that
has done little to address marihuana usage by minors.
Existing marihuana laws have led to profligate spending of law enforce-
ment reSources, and discriminatory police practices that have perpet-
uated systematic racism and discrimination increasing the prison popu-
lation with non-violent offenders. Over the past two decades, New York
has become the marihuana arrest capital of the country, with nearly
800,000 marihuana arrests and summons.
These arrests disproportionately impact the lives of African-American
and Latino communities. African-Americans and Latinos are swept into the
criminal justice system for marihuana use, while whites are afforded
impunity due to the color of their skin. While government studies show
that whites of all ages use marihuana at the same rate as people of
color, a stark difference in arrest rates remain. Across New York City,
African-Americans are arrested on low-level marihuana charges at eight
times the rate of white, non-hispanic people and Hispanics are arrested
at five times the rate of whites. One of the largest drivers of racial
disparity in criminalization and incarceration rates is the inequity of
how the law is applied in marihuana arrests.
The intent of this act is to regulate, control, and tax marihuana in a
manner similar to alcohol. The MRTA will generate millions of dollars in
new revenue, prevent access to marihuana by those under the age of twen-
ty-one, reduce the illegal drug market and violent crime, reduce partic-
ipation of otherwise law-abiding citizens in an illicit market and
create new industries and increase employment. With the enactment of the
MRTA the New York State Legislature has an opportunity to end the
racially disparate impact of existing marihuana policies.
Sixty million Americans now live in states where adult-marihuana is
legal. Nationwide, public perception of marihuana is growing more favor-
able, with 61% of the population supporting legalization. In NYC fatal
drug overdoses are now four times more common than homicides. The New
York Department of Health concluded that marihuana is a far safer pain
reliever than opioids, and reduces the risk of fatal overdoses that are
prevalent across the state and country. In states that have legalized
marihuana, opioid overdose rates were 25% lower compared with states
with no legal access to marihuana. Additionally, two-thirds of Americans
also view marihuana as being safer than opioids in the management of
pain.
There are roughly 1.5 million regular marihuana users in New York, half
of which live in New York City. In May of 2018, NYC Comptroller Stringer
released a report which estimates a $3.1 billion adult-use marihuana
market for New York State, with $1.1 billion just in New York City. With
the enactment of the MRTA New York State could realize a projected $436
million in tax revenue, while New York City could accrue an additional
$336 million in tax revenue.
This legislation directs 50% of the tax revenue to establish the Commu-
nity Grants Reinvestment Fund, aimed at giving back to the communities
that have been the most disproportionately affected by current marihuana
laws. States across the country that have recently legalized marihuana,
from Massachusetts to Alaska, are reinvesting in programs that offer
people a new start through community re-entry programs, schools, job
development, drug treatment, and legal services.
PRIOR LEGISLATIVE HISTORY:
2015-2016: A.3089 -A/S.1747
2013-2014: A.8341/S.6005
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined significant revenue will be generated for the State and
local governments.
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that the
amendments to section 17 of the alcoholic beverage control law made by
section fifty-one of this act shall not affect the expiration and rever-
sion of such section and shall expire and be deemed repealed therewith,
when upon such date the provisions of section fifty-two of this act
shall take effect; provided further, however, that the amendments to
section 18 of the alcoholic beverage control law made by section fifty-
three of this act shall not affect the expiration and reversion of such
section and shall expire and be deemed repealed therewith, when upon
such date the provisions of section fifty-four of this act shall take
effect.
