2023 New York Laws › TAX - Tax › Article 20-C - Tax on Adult-Use Cannabis Products › 496-C - Additional Penalties.

§  496-c.  Additional penalties. (a) In addition to any other civil or
criminal penalties that may apply, any person knowingly in possession of
or knowingly having control  over  any  type  of  illicit  cannabis,  as
defined in section four hundred ninety-two of this article, after notice
and an opportunity for a hearing, shall be liable for a civil penalty in
an  amount  up  to  two times the amount of tax otherwise required to be
paid for such product for  a  first  violation,  and  for  a  second  or
subsequent  violation within three years following a prior violation may
be liable for a civil penalty in an amount up to three times the  amount
of tax otherwise required to be paid for such product.
(b) In addition to any other penalty authorized by this chapter or any
other law:
(1)  Any  person  who  knowingly  possesses  for sale, as such term is
defined in section four hundred ninety-two of this  article,  more  than
five pounds but less than twelve pounds of illicit cannabis or more than
one  pound but less than four pounds of illicit concentrated cannabis or
illicit cannabis edible product, after notice and an opportunity  for  a
hearing, may be liable for a civil penalty of up to twenty-five thousand
dollars  for  a first violation and may be liable for a civil penalty of
up to fifty thousand dollars for a second or subsequent violation within
three years following a prior violation.
(2) Any person who knowingly possesses  for  sale,  as  such  term  is
defined  in section four hundred ninety-two of this article, over twelve
or more pounds of illicit cannabis or four or  more  pounds  of  illicit
concentrated  cannabis  or illicit cannabis edible product, after notice
and an opportunity for a hearing, may be liable for a civil  penalty  of
up  to  seventy-five  thousand  dollars for a first violation and may be
liable for a civil penalty of up to one hundred thousand dollars  for  a
second  or  subsequent  violation  within  three years following a prior
violation.
(3) In addition to any penalty imposed pursuant to paragraphs  one  or
two of this subdivision, any person who knowingly possesses for sale, as
such term is defined in section four hundred ninety-two of this article,
more  than  five  pounds  of illicit cannabis, or more than one pound of
illicit concentrated cannabis or illicit cannabis edible product,  in  a
commercial  location, after notice and an opportunity for a hearing, may
be subject to an additional  civil  penalty  of  up  to  fifty  thousand
dollars  for  a first violation and may be liable for a civil penalty of
up to one hundred thousand dollars for a second or subsequent  violation
within  three  years  following  a prior violation. For purposes of this
paragraph, "commercial location" means real property or a  vehicle  held
out  as  open to the public or otherwise being used to conduct wholesale
or retail transactions, including a storage area in or adjacent to  such
property  or  vehicle.  Such  term  shall  not  include a residence or a
personally-owned vehicle located at such residence.
(c) Any distributor on whom tax is imposed  under  this  article  that
knowingly  sells  any adult-use cannabis product to any person who sells
at retail adult-use  cannabis  products  who  is  not  registered  under
section  four hundred ninety-four of this article, or whose registration
has been suspended or revoked, may, after notice and an opportunity  for
a hearing, be liable for a civil penalty of up to fifty thousand dollars
for  a  first  violation  and  up  to one hundred thousand dollars for a
second or subsequent violation within  three  years  following  a  prior
violation.
(d)  No enforcement action taken under this section shall be construed
to limit any other criminal or civil liability of anyone  in  possession
of illicit cannabis.
(e)  The  penalties imposed by this section shall not apply to natural
persons lawfully in possession of  adult-use  cannabis  or  concentrated
cannabis  for personal use as provided in article two hundred twenty-two
of the penal law.