N.Y. Tax Law § 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.