S 3479: Allows municipalities to regulate public places where cannabis can be consumed.

  
  STATE OF NEW YORK ________________________________________________________________________ 3479 2025-2026 Regular Sessions  IN SENATE January 27, 2025 ___________ Introduced by Sens. HELMING, BORRELLO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the cannabis law, in relation to allowing municipalities to regulate public places where cannabis can be consumed The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 131 of the cannabis law, subdivision 3 as added by 2 section 10 of the part G of chapter 55 of laws of 2024, is amended to 3 read as follows: 4 § 131. Local opt-out; municipal control and preemption. 1. (a) The 5 licensure and establishment of a retail dispensary license and/or 6 on-site consumption license under the provisions of article four of this 7 chapter authorizing the retail sale of adult-use cannabis to cannabis 8 consumers shall not be applicable to a town, city or village which, 9 after the effective date of this chapter, and, on or before the later of 10 December thirty-first, two thousand twenty-one or nine months after the 11 effective date of this section, adopts a local law, subject to permis- 12 sive referendum governed by section twenty-four of the municipal home 13 rule law, requesting the cannabis control board to prohibit the estab- 14 lishment of such retail dispensary licenses and/or on-site consumption 15 licenses contained in article four of this chapter, within the jurisdic- 16 tion of the town, city or village. Provided, however, that any town law 17 shall apply to the area of the town outside of any village within such 18 town. No local law may be adopted after the later of December thirty- 19 first, two thousand twenty-one or nine months after the effective date 20 of this section prohibiting the establishment of retail dispensary 21 licenses and/or on-site consumption licenses; provided, however, that a 22 local law repealing such prohibition may be adopted after such date. 23 [2.] (b) Except as provided for in [subdivision one] paragraph (a) of 24 this [section] subdivision, all county, town, city and village governing EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07395-01-5 
 S. 3479 2 1 bodies are hereby preempted from adopting any law, rule, ordinance, 2 regulation or prohibition pertaining to the operation or licensure of 3 registered organizations, adult-use cannabis licenses or cannabinoid 4 hemp licenses. However, towns, cities and villages may pass local laws 5 and regulations governing the time, place and manner of the operation of 6 licensed adult-use cannabis retail dispensaries and/or on-site consump- 7 tion site, provided such law or regulation does not make the operation 8 of such licensed retail dispensaries or on-site consumption sites unrea- 9 sonably impracticable as determined by the board. 10 2. Any county, town, city or village may adopt a local law, rule, 11 ordinance, regulation or prohibition regarding public places where 12 adult-use cannabis may be consumed within such county, town, city or 13 village. 14 3. (a) As used in this subdivision and for purposes of any local law 15 adopted pursuant to it, the following terms shall have the following 16 meanings: "person" shall have the meaning provided for in subdivision 17 forty-a of section three of this chapter; "unlicensed activity" shall 18 refer only to unlawfully selling cannabis, cannabis product, or any 19 product marketed or labeled as such without obtaining the appropriate 20 registration, license, or permit therefor, or engaging in an indirect 21 retail sale; "indirect retail sale" shall have the meaning provided for 22 in subdivision forty-six-a of section three of this chapter, except that 23 it shall not include cannabinoid hemp or hemp extract product; "place of 24 business" shall not include a residence or other real property not 25 otherwise held out as open to the public or otherwise being utilized in 26 a business or commercial manner, or any vehicle associated with the 27 business, unless probable cause exists to believe that such residence, 28 real property, or vehicle, is being used in such business or commercial 29 manner for the unlicensed activity. 30 (b) Any county or city may adopt a local law authorizing an officer or 31 agency to conduct regulatory inspections of any place of business 32 located within the county or city, including a vehicle used for such 33 business, not listed on the directory maintained by the office pursuant 34 to subdivision thirteen of section eleven of this chapter. Any such 35 regulatory inspection shall only occur during the operating hours of a 36 place of business and be conducted for purposes of civil administrative 37 enforcement with respect to premises lacking applicable registrations, 38 licenses or permits issued pursuant to this chapter, and in furtherance 39 of its purposes, provided that nothing herein shall limit any enforce- 40 ment action under law when illegal activity is observed or occurs during 41 such inspection. 42 (c) A local law adopted by a county authorizing regulatory inspections 43 shall not apply in any city included within the boundaries of such coun- 44 ty that adopts a local law authorizing regulatory inspections within 45 such city. 46 (d) The local law adopted by a county or a city pursuant to this 47 subdivision shall also: 48 (i) require procedures sufficient to ensure that any regulatory 49 inspections are conducted in a reasonable manner, are administrative in 50 nature, designed to detect administrative violations, in furtherance of 51 the regulatory scheme established pursuant to this section, and designed 52 to guarantee certainty and regularity of application; 53 (ii) designate a local official who shall serve as the liaison to the 54 office and who shall: (1) be required to ensure that updates to the 55 directory are immediately incorporated into the local inspection proc- 56 ess, coordinate with the office on efforts to inspect such unlicensed 
 S. 3479 3 1 businesses and related local enforcement efforts; (2) send bi-weekly 2 reports to the office in a manner and format prescribed by the office 3 detailing recent enforcement efforts, including information regarding 4 the number and location of inspections conducted, notices of violation 5 issued, and orders to seal issued and executed, and the amount and 6 nature of the cannabis, cannabis products, or products marketed as such 7 seized; and (3) serve as the primary contact for the office in 8 connection with the office's training program and the sharing of materi- 9 als made available to counties and cities with regard to the inspection 10 and enforcement of unlicensed cannabis businesses; 11 (iii) be filed with the office, as well as any procedures or regu- 12 lations promulgated pursuant to the local law. Notwithstanding the 13 effective date of any such local law, the local law shall not become 14 effective until ten days after it is filed with the office; 15 (iv) establish a system for receiving complaints of such unlicensed 16 activity by any business within the county or city, as the case may be; 17 (v) provide that any person who engages in the unlawful sale of canna- 18 bis, cannabis product, or any product marketed or labeled as such, or in 19 indirect retail sales, shall be subject to a civil penalty of not less 20 than one hundred dollars and not more than ten thousand dollars for each 21 day during which such violation continues, with a maximum penalty of no 22 more than twenty-five thousand dollars. The penalty provided for in this 23 subparagraph may be recovered by an action or proceeding in a court of 24 competent jurisdiction brought by the county or city to enforce the 25 notice of violation referred to in clause one of subparagraph (vi) of 26 this paragraph; and 27 (vi) provide that the officer or agency designated to conduct regula- 28 tory inspections of any place of business not listed on the directory 29 maintained by the office shall have the authority to: 30 (1) issue a notice of violation and order to cease unlicensed activity 31 setting forth the nature of the unlawful conduct along with any fines or 32 penalties for such conduct in amounts not to exceed the fines set forth 33 in subparagraph (v) of this paragraph and order any person who is unlaw- 34 fully selling cannabis, cannabis product, or any product marketed or 35 labeled as such without obtaining the appropriate registration, license, 36 or permit therefor, or engaging in indirect retail sale, to cease such 37 prohibited conduct, provided that any such notice of violation and order 38 to cease unlicensed activity may only be issued against the business 39 that is conducting the unlicensed activity or an individual owner of the 40 business. Any notice of violation and order to cease unlicensed activity 41 shall be served by delivery of the order to the owner of the business or 42 other person of suitable age or discretion in actual or apparent control 43 of the premises at the time of the inspection and shall be posted at the 44 building or premises that have been sealed, secured and closed. A copy 45 of the order shall also be mailed to any address for the owner of the 46 business at any address provided by the person to whom such order was 47 delivered pursuant to this paragraph; 48 (2) seize any cannabis, cannabis product, or any product marketed or 49 labeled as such, found in the possession of a person engaged in the 50 conduct described in clause one of this subparagraph and in their place 51 of business, including a vehicle used for such business, providing that 52 the business that is conducting the unlicensed activity or an individual 53 owner of the business, maintain documentation of the chain of custody of 54 such seized products, and ensure that such products are properly stored, 55 catalogued, and safeguarded until such time as they may properly be 56 destroyed by the county or the city; 
 S. 3479 4 1 (3) issue an order to seal the building or premises of any business 2 engaged in unlicensed activity, when such activity is conducted, main- 3 tained, or permitted in such building or premises, occupied as a place 4 of business subject to the procedures and requirements set forth in this 5 subparagraph: 6 A. The officer or agency may issue an order to seal with an immediate 7 effective date if such order is based upon a finding by the officer or 8 agency of an imminent threat to the public health, safety, and welfare. 9 B. Any order to seal shall be served by delivery of the order to the 10 owner of the business or other person of suitable age or discretion in 11 actual or apparent control of the premises at the time of the inspection 12 and shall be posted at the building or premises that have been sealed, 13 secured and closed. A copy of the order shall also be mailed to any 14 address for the owner of the business provided by the person to whom 15 such order was delivered pursuant to this paragraph. The order shall 16 remain in effect pending a hearing and final determination of a court, 17 or until such order is vacated by the officer or agency pursuant to the 18 local law adopted pursuant to this subdivision. An order to seal shall 19 explicitly state that a request for a hearing may be submitted in writ- 20 ing to the corporation counsel or to the county attorney as applicable 21 within seven days. Upon receiving such a request for a hearing, the 22 corporation counsel or county attorney shall file a copy of the request 23 with the clerk of the city court or county court in the city or county 24 where the building or premises is located. 25 C. The court that receives notice of a request for a hearing from a 26 corporation counsel or a county attorney shall fix the date of such 27 hearing no later than three business days from the date such notice is 28 received by the court and provide notice to the parties of the date, 29 time, and location of the hearing. Upon such date, or upon such other 30 date to which the proceeding may be adjourned by agreement of the 31 parties, the court shall hear testimony and receive evidence presented 32 by the parties. The city or county, as applicable, and the person that 33 requested the hearing shall be parties to the proceeding. Within four 34 business days of the conclusion of the hearing, the court shall make a 35 determination as to: (i) whether the person upon which the order to seal 36 was issued was engaged in unlicensed activity, (ii) if the person is 37 found to have engaged in unlicensed activity, then whether such unli- 38 censed activity presents an imminent threat to public health, safety and 39 welfare according to subdivision four of section one hundred thirty- 40 eight-b of this article, and (iii) whether the unlicensed activity as 41 described in this section is more than a de minimis part of the business 42 activity on the premises or in the building to be sealed pursuant to the 43 order. However, when an order to seal has been issued upon a second or 44 subsequent inspection in which unlicensed activity is confirmed to be 45 continuing more than ten calendar days after a notice of violation and 46 order to cease unlicensed activity was previously issued, the court need 47 only determine: (i) whether the person upon which the order to seal was 48 issued was engaged in unlicensed activity; (ii) whether a notice of 49 violation and order to cease unlicensed activity had been issued eleven 50 or more days prior to the issuance of the order to seal; and (iii) 51 whether the order to seal was issued in compliance with paragraph (a) of 52 subdivision six of section one hundred thirty-eight-b of this article. 53 If the court determines that an order to seal was not properly issued, 54 the court shall vacate such order. If the court is satisfied that an 55 order to seal was properly issued, the court may render a judgment 56 affirming the issuance of an order to seal, and direct the closing of 
 S. 3479 5 1 the building or premises by any police officer or peace officer with 2 jurisdiction to the extent necessary to abate the unlicensed activity 3 and shall direct any police officer or peace officer with jurisdiction 4 to post a copy of the judgment and a printed notice of such closing 5 conforming to the requirements of this chapter. The closing directed by 6 the judgment shall be for such period as the court may direct but in no 7 event shall the closing be for a period of more than one year from the 8 posting of the judgment provided for in this section. Failure of a 9 party that requested a hearing to appear at the hearing will result in a 10 default and order of sealing to remain in effect for such period as the 11 court may direct but in no event shall the order be in effect for a 12 period of more than one year from the posting of the judgment unless 13 otherwise vacated pursuant to the local law adopted pursuant to this 14 subdivision. 15 D. The local law adopted pursuant to this subdivision shall include, 16 without alteration the provisions of subdivisions four through twelve of 17 section one hundred thirty-eight-b of this article. Any provisions 18 adopted by a local law to the contrary shall be considered specifically 19 preempted by this paragraph, provided however that a county or city 20 shall be permitted to substitute the officer or agency authorized by the 21 county or city to conduct regulatory inspections pursuant to this 22 subsection for any reference to the office or board; 23 (4) seek injunctive relief against any person engaging in conduct in 24 violation of this section, including through an action pursuant to 25 section sixteen-a of this chapter. 26 (e) Upon a demand by the county or city, a respondent or defendant 27 shall provide to the county or city prior to a hearing pursuant to 28 subparagraph (v) of paragraph (d) of this subdivision or an order to 29 seal pursuant to clause three of subparagraph (vi) of paragraph (d) of 30 this subdivision, within five days after a demand or sooner if a hearing 31 is scheduled less than five days from the date of demand, a verified 32 statement setting forth: 33 (i) If the responding party is a natural person, such party's: (1) 34 full legal name; (2) date of birth; (3) current home or business street 35 address; and (4) a unique identifying number from: (A) an unexpired 36 passport; (B) an unexpired state driver's license; or (C) an unexpired 37 identification card or document issued by a state or local government 38 agency or tribal authority for the purpose of identification of that 39 individual; 40 (ii) If the responding party is a partnership, limited liability part- 41 nership, limited liability company, or other unincorporated association, 42 including a for profit or not-for-profit membership organization or 43 club, the information required pursuant to subparagraph (i) of this 44 paragraph for all of its partners or members, as well as the state or 45 other jurisdiction of its formation; 46 (iii) If the responding party is a corporation, its state or other 47 jurisdiction of incorporation, principal place of business, and any 48 state or other jurisdiction of which that party is a citizen; 49 (iv) If the responding party is not an individual, in addition to any 50 information provided pursuant to subparagraphs (ii) and (iii) of this 51 paragraph, and to the extent not previously provided, each beneficial 52 owner of the responding party by: (A) full legal name; (B) date of 53 birth; (C) current home or business street address; and (D) a unique 54 identifying number from: (1) an unexpired passport; (2) an unexpired 55 state driver's license; or (3) an unexpired identification card or docu- 56 ment issued by a state or local government agency or tribal authority 
 S. 3479 6 1 for the purpose of identification of that individual. As used in this 2 section, the term "beneficial owner" shall have the same meaning as 3 defined in 31 U.S.C. § 5336(a)(3), as amended, and any regulations 4 promulgated thereunder. 5 (f) Notwithstanding any provision to the contrary in this section, a 6 city with a population of more than one million may enforce any 7 violations, orders to cease, and orders to seal related to unlicensed 8 activity through an administrative hearing process. 9 § 2. This act shall take effect immediately.