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Proposal Would Criminalize ‘Gifting’ Of Cannabis

A marijuana plant is grown under lights at the Boulder County Caregivers in Boulder, Colo. AP photo

The New York Office of Cannabis Management has made clear that shops currently selling or gifting marijuana are breaking the law.

Assemblyman Phil Palmesano, R-Corning, wants to make the state’s law on the issue clearer with A.9815, introduced earlier this week and referred to the Assembly Codes Committee. Palmesano wants to better define unlawful activities of those using businesses as a front to sell cannabis in violation of the state’s Cannabis Control Law and to impose civil penalties.

Palmesano wants to change the state Penal Law to state anyone employed by or operating a business, store, club or facility who sells, transfers, gifts or trades cannabis without the appropriate licenses, with the severity of the charge varying depending on the amount of cannabis involved.

“Since New York state has legalized the recreational use of cannabis, certain commercial establishments, known as ‘sticker stores,’ have used their businesses as a front to sell or gift cannabis without the requisite lawful authority, or permission from the state,” Palmesano wrote in his legislative justification. “Sticker stores have taken advantage of what some consider a ‘loophole’ in the state Cannabis Law because the law’s language does not expressly prohibit the ‘gifting’ of cannabis products to individuals. To get around this ‘loophole,’ these establishments sell a, number of inexpensive items, such as stickers, at a substantially inflated price and then provide marijuana as a ‘free gift’ along with their purchase. Despite enforcement actions taken by the Office of Cannabis Management, these stores continue to violate the law with minimal consequences.”

In February, the state Office of Cannabis Management sent letters to more than two dozen enterprises it suspected of illegally selling marijuana, telling them to stop or face fines, potential criminal charges and risk to their prospects of getting a license once they are available. Before that, the office had warned that promotional gifts of marijuana or cannabis were illegal, though that didn’t stop many shops using such enticements.

All of the actions threatened by the Office of Cannabis Management are also listed as penalties under Palmesano’s bill. Palmesano also proposes to have fines paid to the Office of Cannabis Management and returned to the county where the violation happens.

“This proposal would make clear that no such “loophole” exists and would empower the state to prosecute these individuals both criminally and civilly in order to deter businesses from participating in these unlawful activities,” Palmesano wrote.

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