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Legislation: Bill memo for S.854A, legalizing marijuana.
NYSNYS News
NEW YORK STATE SENATE
INTRODUCER'S MEMORANDUM IN SUPPORT
submitted in accordance with Senate Rule VI. Sec 1


BILL NUMBER: S854A

SPONSOR: KRUEGER


TITLE OF BILL:

An act in relation to constituting chapter 7-A of the consolidated laws,
in relation to the creation of a new office of cannabis management, as
an independent entity within the division of alcoholic beverage control,
providing for the licensure of persons authorized to cultivate, process,
distribute and sell cannabis and the use of cannabis by persons aged
twenty-one or older; to amend the public health law, in relation to the
description of cannabis; to amend the penal law, in relation to the
growing and use of cannabis by persons twenty-one years of age or older;
to amend the tax law, in relation to providing for the levying of taxes
on cannabis; to amend the criminal procedure law, the civil practice law
and rules, the general business law, the state finance law, the execu-
tive law, the penal law, the alcoholic beverage control law, the general
obligations law, the social services law, the labor law, the family
court act, and the vehicle and traffic law, in relation to making
conforming changes; to amend the public health law, in relation to the
definition of smoking; to amend the state finance law, in relation to
establishing the New York state cannabis revenue fund, the New York
state drug treatment and public education fund and the New York state
community grants reinvestment fund; to amend chapter 90 of the laws of
2014 amending the public health law, the tax law, the state finance law,
the general business law, the penal law and the criminal procedure law
relating to medical use of marihuana, in relation to the effectiveness
thereof; to amend chapter 174 of the laws of 1968 constituting the urban
development corporation act, in relation to loans to social and economic
equity applicants, providing increased drug recognition awareness and
Advanced Roadside Impaired Driver Enforcement training, directing a
study designed to evaluate methodologies and technologies for the
detection of cannabis-impaired driving, providing for the transfer of
employees and functions from the department of health to the office of
cannabis management; to repeal certain provisions of the public health
law relating to growing of cannabis and medical use of marihuana; to
repeal article 221 of the penal law relating to offenses involving mari-
huana; to repeal paragraph (f) of subdivision 2 of section 850 of the
general business law relating to drug related paraphernalia; and to
repeal certain provisions of the penal law relating to making conforming
changes


PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to establish a new Office of Cannabis
Management for the regulation of cannabis, to create a regulated and
taxed cannabis industry in New York, and to provide for various social
and economic justice initiatives related thereto.


SUMMARY OF PROVISIONS:

Section 1 of the bill establishes the title.

Section 2 establishes a new Chapter 7-A of the consolidated laws enti-
tled "Cannabis Law' as follows: Article 1 of the Cannabis Law provides
legislative findings and intent and offers definitions of terms. Article
2 of the Cannabis Law establishes the Office of Cannabis Management;
defines the powers of the cannabis control board, executive director,

chief equity officer, and state cannabis advisory board; and establishes
rulemaking authority and procedures for the office.

Article 3 of the Cannabis Law provides for the regulation of medical
cannabis by the Office of Cannabis Management.

Article 4 of the Cannabis Law provides for the regulation of adult-use
cannabis by the Office of Cannabis Management.

Article 5 of the Cannabis Law provides for the regulation of cannabinoid
hemp and hemp extract by the Office of Cannabis Management. Article 6 of
the Cannabis Law establishes general provisions for the Cannabis Law.

Sections 3 through 62-h of the bill amend various sections of law to
conform New York State law as it relates to the Cannabis Law and the
purposes of this act, including to:

*remove marihuana from the schedule of controlled substances;

*provide for the lawful possession, use, and personal growth of canna-
bis;

*expand sealing and expungement opportunities for past marijuana
convictions;

*establish parameters related to cannabis and probation, parole, and
Family Court matters;

*provide for the taxation of cannabis;

*provide for the distribution of tax revenues, including:

*40% to the community grants reinvestment fund;

*40% to education in order to add to the State's current investment in
education;

*20% for mental health services; youth cannabis use prevention; public
health campaigns; and drug treatment, prevention, and harm reduction
services; and

*certain administrative costs to implement this act.

*provide for vehicle and traffic, and other public safety measures;

*clarify workplace standards and employee/employer rights and
protections related to cannabis;

* research potential technologies to assist in detecting motorist canna-
bis impairment; and

* transfer certain functions and employees from various state agencies
to the Office of Cannabis Management.

Section 63 is the severability clause. Section 64 is the effective date.


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, denying many the fundamental right to participate in the demo-
cratic process of voting and inhibiting otherwise law-abiding citizens'
ability to access housing, student loans, employment opportunities, 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 costly overuse of law enforcement
resources and in some instances discriminatory police practices that
have perpetuated systematic racism and discrimination increasing the
prison population 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 dispropor-
tionately impact the lives of African-American and Latinx communities.
Black and Brown New Yorkers are swept into the criminal justice system
for marihuana use while white New Yorkers have generally been evaded
prosecution 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 remains. Across New York City, African-Americans are
arrested on low-level marihuana charges at eight times the rate of
white, non-Hispanic people and Latinxs are arrested at five times the
rate of whites. Thus, 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 cannabis. 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, help transi-
tion otherwise law-abiding citizens engaged in the Legacy market to the
legal market, and create new industries and increase employment. With
the enactment of the MRTA, the New York State Legislature has an oppor-
tunity to end the racially disparate impact of existing marihuana poli-
cies and their enforcement.

Sixty million Americans now live in states where adult-use cannabis is
legal. Nationwide, public perception of cannabis is growing more favora-
ble, 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 over-
doses that are prevalent across the state and country. In states that
have legalized cannabis, opioid overdose rates were 25% lower compared
with states with no legal access to cannabis. Additionally, two-thirds
of Americans also view cannabis as being safer than opioids in the
management of pain. There are roughly 1.5 million regular cannabis users
-in New York, half of whom live in New York City. In May of 2018, NYC
Comptroller Stringer released a report which estimates a $3.1 billion
adult-use cannabis market for New York State, with $1.1 billion just in
New York City. With the enactment of the MRTA New York State could real-
ize a projected $436 million in tax revenue, while New York City could
accrue an additional $336 million in tax revenue. The need to repair the
harms wrought on communities of color by the war on drugs requires a
definitive framework, in statute, for reinvestment. This legislation
directs 50% of the tax revenue to establish the Community Grants Rein-
vestment 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 Massa-
chusetts 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. New York has the opportunity to
become a leading example in sustainable reinvestment with this explicit-
ly dedicated revenue percentage and type of fund.


PRIOR LEGISLATIVE HISTORY:

2019-2020:S.1527C/A.1617C
2017-2018:S.3040C/A.3506C
2015-2016:S.1747/A.3089A
2013-2014:S.6005/A.8341


FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

The increase of revenue for state and local governments will be deter-
mined.


EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that sections
six and six-a of this act shall take effect six months after the full
cannabis control board created by article two of the cannabis law has
been appointed and provided that the governor shall notify the legisla-
tive bill drafting commission upon such full appointment in order that
the commission may maintain an accurate and timely effective data base
of the official text of the laws of the state of New York in furtherance
of effectuating the provisions of section 44 of the legislative law and
section 70-b of the public officers law; provided, further that the
expungement of marihuana convictions under section 160.50 of the crimi-
nal procedure law, added by the amendment in section seventeen of this
act, shall occur promptly and in any event no later than two years after
the effective date of this act; the amendments to article 20-B of the
tax law made by sections thirty-four, thirty-seven and thirty-eight of
this act shall not affect the repeal of such article and shall be deemed
repealed therewith; and provided, further, that sections thirty nine and
forty of this act shall take effect April 1, 2022, and shall apply on
and after such date to the sale or transfer of adult-use cannabis
products to a retail dispensary; provided, further, that the amendments
to article 179 of the penal law made by section forty-seven of this act
shall not affect the repeal of such article and shall be deemed to be
repealed therewith; provided, further, that the amendments to section
89-h of the state finance law made by section fifty of this act shall
not affect the repeal of such section and shall be deemed repealed
03/27/21 255 65156-02-1 therewith; provided, further, that the amend-
ments to subdivision 3 of section 853 of the general business law made
by section fifty-six-a of this act shall not affect the repeal of such
section and shall be deemed repealed therewith; and provided, further,
that the amendments to subdivision 2 of section 3371 of the public
health law made by section fifty-six-b of this act shall not affect the
expiration of such subdivision and shall be deemed to expire therewith.

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