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A02580 Summary:

BILL NOA02580
 
SAME ASNo Same As
 
SPONSORBrown K
 
COSPNSRBrown E, Manktelow, McDonough, Hawley, DeStefano
 
MLTSPNSR
 
Add §140, amd §10, Cannabis L; amd §8, St Fin L; amd §63, Exec L
 
Requires the state comptroller, the attorney general and independent certified public accountants to conduct an annual audit of the office of cannabis management.
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A02580 Actions:

BILL NOA02580
 
01/17/2025referred to governmental operations
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A02580 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2580
 
SPONSOR: Brown K
  TITLE OF BILL: An act to amend the cannabis law, the state finance law and the execu- tive law, in relation to requiring the state comptroller and the attor- ney general to conduct an annual audit of the office of cannabis manage- ment   PURPOSE OR GENERAL IDEA OF BILL: Requires the State Comptroller and the Attorney General to conduct an annual audit of the Office of Cannabis Management.   SUMMARY OF PROVISIONS: Section 1: The cannabis law is amended by adding a new section 140. Section 2: Section 10 of the cannabis* is amended by adding a new subdi- vision 17-a. Section 3: Paragraph a of subdivision 2-b of section 8 of the state finance law, as added by chapter 510 of the laws of' 1999, is amended. Section 4: Section 63 of the executive law is amended by adding a new subdivision 17. Section 5: Identifies effective date.   JUSTIFICATION: This bill would require an independent audit of the newly created Office of Cannabis Management. At least once every year, the Comptroller, the Attorney General and the independent certified public accountants will conduct audits of the internal controls of the Office of Cannabis Management and forwarded to the members of the Senate and Assembly via electronic mail. These audits will be performed in accordance with generally accepted government auditing standards and include a report on whether the office's internal controls are established and functioning in a manner that provides reasonable assurance that they meet the objec- tives of internal control as defined in the executive law. The report will identify the internal controls both evaluated and not evaluated and identify internal control weaknesses that have not been corrected and actions that are recommended to correct these weaknesses. If any such internal control weaknesses are significant or material with respect to such departments, the independent auditors will highlight this in their reports. The Comptroller and the Attorney General will ensure that these audit reports are made available to the public the results of such, including any related management letters. The legalization of recre- ational use of cannabis and subsequent creation of the Office of Canna- bis Management gives New York an opportunity to be open and transparent to the public. This bill will ensure transparency and allow for the opportunity to identify needed changes and improvements.   PRIOR LEGISLATIVE HISTORY: 2021-22: A.10246 2023-24: A.05561   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None   EFFECTIVE DATE: This act shall take effect immediately.
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A02580 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2580
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 17, 2025
                                       ___________
 
        Introduced by M. of A. K. BROWN -- read once and referred to the Commit-
          tee on Governmental Operations
 
        AN  ACT  to amend the cannabis law, the state finance law and the execu-
          tive law, in relation to  requiring  the  state  comptroller  and  the
          attorney  general to conduct an annual audit of the office of cannabis
          management

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The cannabis law is amended by adding a new section 140 to
     2  read as follows:
     3    § 140. Independent audit of the office of cannabis management.  1.  At
     4  least  once  every  year,  the comptroller, the attorney general and the
     5  independent certified  public  accountants  selected  pursuant  to  this
     6  section  shall  conduct audits of the internal controls of the office of
     7  cannabis management. Such audits shall be performed in  accordance  with
     8  generally  accepted  government  auditing  standards and shall include a
     9  report on whether the office's internal  controls  are  established  and
    10  functioning  in  a  manner  that provides reasonable assurance that they
    11  meet the objectives of internal  control  as  defined  in  section  nine
    12  hundred fifty of the executive law. The report shall identify the inter-
    13  nal  controls both evaluated and not evaluated and shall identify inter-
    14  nal control weaknesses that have not been corrected and actions that are
    15  recommended to correct these weaknesses. If any  such  internal  control
    16  weaknesses are significant or material with respect to such departments,
    17  the  independent auditors shall so state. The comptroller and the attor-
    18  ney general shall make available to  the  public  the  results  of  such
    19  audits,  including  any  related management letters. The comptroller and
    20  attorney general and any officer or employee of such  departments  shall
    21  make  available  upon  request  to  such  independent  certified  public
    22  accountants all books and records relevant to such independent audits.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03093-01-5

        A. 2580                             2
 
     1    2. The comptroller and the attorney general  shall  request  proposals
     2  from independent certified public accountants for audits of the internal
     3  controls  of  their  respective  departments. The requests for proposals
     4  shall include a reference  to  the  requirements  for  audits  conducted
     5  pursuant  to subdivision one of this section. The comptroller and attor-
     6  ney general shall select such independent auditors in accordance with  a
     7  competitive  procedure  including  an  evaluation,  based on quality and
     8  price factors, of those proposals received in response to such  requests
     9  for proposals.
    10    3. Whenever the comptroller or the comptroller's appointee is a member
    11  of  any  board,  commission,  committee,  council, or corporation, which
    12  constitutes a state agency, the governing body of  such  board,  commis-
    13  sion,  committee,  council,  or  corporation shall select an independent
    14  auditor for the purpose of conducting audits  of  internal  controls  in
    15  accordance with this section.
    16    §  2. Section 10 of the cannabis law is amended by adding a new subdi-
    17  vision 17-a to read as follows:
    18    17-a. Shall make available upon request to the state comptroller,  the
    19  attorney  general  and  the  independent  certified  public  accountants
    20  completing annual audits pursuant to section one hundred forty  of  this
    21  chapter all books and records relevant to such independent audits.
    22    §  3. Paragraph a of subdivision 2-b of section 8 of the state finance
    23  law, as added by chapter 510 of the laws of 1999, is amended to read  as
    24  follows:
    25    a.  Either  as  part  of one or more audits, or separately, conducting
    26  periodic audits of internal controls and operations  of  state  agencies
    27  (other than those state agencies for which an audit is required pursuant
    28  to  sections nine hundred fifty-three and nine hundred fifty-four of the
    29  executive law) and of covered authorities.   Audits  of  the  office  of
    30  cannabis  management shall be conducted annually pursuant to section one
    31  hundred forty of the cannabis law. All such audits shall be performed in
    32  accordance with generally accepted government auditing standards.  Noth-
    33  ing  in the New York state governmental accountability, audit and inter-
    34  nal control act shall be deemed to diminish or impair the  comptroller's
    35  power  to audit and authority to supervise accounts under articles V and
    36  X of the state constitution and this chapter. The audits shall  identify
    37  internal  control  weaknesses  that  have not been corrected and actions
    38  that are recommended to correct these weaknesses. If any  such  internal
    39  control weaknesses are significant or material with respect to the oper-
    40  ations  of  the agency that is the subject of the audit, the comptroller
    41  shall so state. The comptroller shall make available to the  public  the
    42  results of any such audits.
    43    § 4. Section 63 of the executive law is amended by adding a new subdi-
    44  vision 18 to read as follows:
    45    18.  Conduct  an  annual  audit  of  the office of cannabis management
    46  pursuant to the provisions of section one hundred forty of the  cannabis
    47  law.
    48    § 5. This act shall take effect immediately.
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