STATE OF NEW YORK
________________________________________________________________________
8428
2023-2024 Regular Sessions
IN ASSEMBLY
December 29, 2023
___________
Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
tee on Economic Development
AN ACT to amend the cannabis law and the penal law, in relation to
forfeiture of property involved in the unlawful sale of cannabis
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "stop mari-
2 juana over-proliferation and keep empty operators of unlicensed trans-
3 actions (SMOKEOUT) act".
4 § 2. Subdivision 8 of section 132 of the cannabis law, as added by
5 section 17 of part UU of chapter 56 of the laws of 2023, is amended to
6 read as follows:
7 8. Any person who knowingly and unlawfully sells, gives, or causes to
8 be sold or given, in connection with the operation of a business or at
9 the business location, any cannabis or cannabis products for which the
10 sale of such products requires a license, permit, or registration under
11 this chapter [where such person owns and/or is principally responsible
12 for the operation of a business where such products were sold, given, or
13 caused to be sold or given] without having obtained a valid license,
14 permit or registration therefor shall be guilty of a class A misdemea-
15 nor. A municipality shall have the authority to order the immediate
16 closure of any business which is found to have violated the provisions
17 of this section and to seize any merchandise related to such unlawful
18 sale including cannabis, cannabis related products, tobacco, tobacco
19 related products and any proceeds relating thereto pursuant to the
20 provisions of article four hundred fifty-five of the penal law. For the
21 purposes of this section, "operation of a business" shall mean engaging
22 in the sale of, or otherwise offering for sale, goods and services to
23 the general public, including through indirect retail sales.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13780-02-3
A. 8428 2
1 § 3. The title heading of title W of part 4 of the penal law, as
2 amended by chapter 920 of the laws of 1969, is amended to read as
3 follows:
4 PROVISIONS RELATING TO FIREARMS, FIREWORKS, PORNOGRAPHY
5 EQUIPMENT, CANNABIS AND VEHICLES USED IN THE
6 TRANSPORTATION OF GAMBLING RECORDS
7 § 4. The penal law is amended by adding a new article 455 to read as
8 follows:
9 ARTICLE 455
10 SEIZURE AND FORFEITURE OF PROPERTY INVOLVED IN THE UNLAWFUL SALE OF
11 CANNABIS
12 Section 455.00 Seizure and forfeiture of property involved in the unlaw-
13 ful sale of cannabis.
14 § 455.00 Seizure and forfeiture of property involved in the unlawful
15 sale of cannabis.
16 1. Any property constituting the proceeds or substituted proceeds of
17 an offense involving the unlawful or unlicensed sale of cannabis; and
18 any property constituting an instrumentality of such offense, including
19 real property, is subject to forfeiture pursuant to this article. Any
20 peace officer, acting pursuant to the special duties of the peace offi-
21 cer, or police officer of this state may seize any property involved in
22 the unlawful or unlicensed sale of cannabis.
23 2. The seized property shall be delivered by the police officer or
24 peace officer having made the seizure to the custody of the district
25 attorney of the county wherein the seizure was made, except that in the
26 cities of New York, Yonkers and Buffalo, the seized property shall be
27 delivered to the custody of the police department of such cities togeth-
28 er with a report of all the facts and circumstances of the seizure.
29 3. It shall be the duty of the district attorney of the county wherein
30 the seizure was made, if elsewhere than in the cities of New York or
31 Buffalo, and where the seizure is made in either such city it shall be
32 the duty of the corporation counsel of the city, to inquire into the
33 facts of the seizure so reported to him or her and if it appears proba-
34 ble that a forfeiture has been incurred, for the determination of which
35 the institution of proceedings in the supreme court is necessary, to
36 cause the proper proceedings to be commenced and prosecuted, at any time
37 after thirty days from the date of seizure, to declare such forfeiture,
38 unless, upon inquiry and examination such district attorney or corpo-
39 ration counsel decides that such proceedings cannot probably be
40 sustained or that the ends of public justice do not require that they
41 should be instituted or prosecuted, in which case, the district attorney
42 or corporation counsel shall cause such seized property to be returned
43 to the owner thereof.
44 4. Notice of the institution of the forfeiture proceeding shall be
45 served either (a) personally on the owners of the seized property or (b)
46 by registered mail to the owners' last known address and by publication
47 of the notice once a week for two successive weeks in a newspaper
48 published or circulated in the county wherein the seizure was made.
49 5. Forfeiture shall not be adjudged where the owners established by
50 preponderance of the evidence that the use of such seized property was
51 not intentional on the part of any owner.
52 6. The district attorney or the police department having custody of
53 the seized property, after such judicial determination of forfeiture,
54 shall, by a public notice of at least five days, sell such forfeited
55 property at public sale; provided, however, that cannabis and cannabis-
A. 8428 3
1 infused products shall not be sold. Any cannabis or cannabis-infused
2 products which have been determined to be subject to forfeiture shall be
3 destroyed in accordance with regulations to be established by the divi-
4 sion of the state police. The net proceeds of any permitted sale, after
5 deduction of the lawful expenses incurred, shall be paid into the gener-
6 al fund of the county wherein the seizure was made except that the net
7 proceeds of the permitted sale of property seized in the cities of New
8 York and Buffalo shall be paid into the respective general funds of such
9 cities.
10 7. Whenever any person interested in any property which is seized and
11 declared forfeited under the provisions of this section files with a
12 justice of the supreme court a petition for the recovery of such
13 forfeited property, the justice of the supreme court may restore said
14 forfeited property upon such terms and conditions as he or she deems
15 reasonable and just, if the petitioner establishes the defense set forth
16 in subdivision five of this section and that the petitioner was without
17 personal or actual knowledge of the forfeiture proceeding. If the peti-
18 tion be filed after the sale of the forfeited property, any judgment in
19 favor of the petitioner shall be limited to the net proceeds of such
20 sale, after deduction of the lawful expenses and costs incurred by the
21 district attorney, police department or corporation counsel.
22 8. No suit or action under this section for wrongful seizure shall be
23 instituted unless such suit or action is commenced within two years
24 after the time when the property was seized.
25 § 5. This act shall take effect immediately.