Bill Text: NY A01617 | 2019-2020 | General Assembly | Amended


Bill Title: Enacts the "marihuana regulation and taxation act"; relates to the description of cannabis, and the growing of and use of cannabis by persons twenty-one years of age or older; makes technical changes regarding the definition of cannabis; relates to removing certain references to marijuana relating to forfeiture actions; relates to the qualification of certain offenses involving cannabis and exempts certain persons from prosecution for the use, consumption, display, production or distribution of cannabis; relates to the definition of smoking; provides for the licensure of persons authorized to produce, process and sell marihuana; levies an excise tax on certain sales of cannabis; repeals certain provisions of the penal law relating to the criminal sale of cannabis and provisions of the general business law relating to drug paraphernalia; creates the New York state cannabis revenue fund, the New York state drug treatment public education fund and the New York state community grants reinvestment fund.

Spectrum: Partisan Bill (Democrat 48-0)

Status: (Introduced) 2019-06-12 - print number 1617b [A01617 Detail]

Download: New_York-2019-A01617-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         1617--B

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    January 16, 2019
                                       ___________

        Introduced  by  M.  of  A.  PEOPLES-STOKES,  GOTTFRIED, LUPARDO, WRIGHT,
          WEPRIN, HUNTER, HYNDMAN, PICHARDO, BLAKE, L. ROSENTHAL, JAFFEE, DINOW-
          ITZ, JEAN-PIERRE, ABINANTI, RICHARDSON, HEVESI, WALKER,  VANEL,  NIOU,
          BICHOTTE, CAHILL, LIFTON, EPSTEIN, QUART, ORTIZ, REYES, DICKENS, FRON-
          TUS,  CRUZ,  SOLAGES,  RAYNOR,  RODRIGUEZ, FERNANDEZ, ARROYO, BRONSON,
          DE LA ROSA, FALL, CARROLL, LENTOL, DenDEKKER, RAMOS, BENEDETTO,  SIMO-
          TAS -- Multi-Sponsored by -- M. of A. MOSLEY, SEAWRIGHT, SIMON, STECK,
          TAYLOR  -- read once and referred to the Committee on Codes -- commit-
          tee discharged, bill amended, ordered reprinted as amended and  recom-
          mitted  to  said  committee -- again reported from said committee with
          amendments, ordered reprinted  as  amended  and  recommitted  to  said
          committee

        AN ACT in relation to constituting chapter 7-A of the consolidated laws,
          in relation to the creation of a new office of cannabis management, as
          an  independent  entity  within  the  division  of  alcoholic beverage
          control, providing for the licensure of persons authorized  to  culti-
          vate, process, distribute and sell cannabis and the use of cannabis by
          persons  aged  twenty-one or older; to amend the public health law, in
          relation to the description of cannabis; to amend the  penal  law,  in
          relation  to  the  growing  and  use of cannabis by persons twenty-one
          years of age or older; to amend the tax law, in relation to  providing
          for  the levying of taxes on cannabis; to amend the criminal procedure
          law, the civil practice law and rules, the general business  law,  the
          state  finance  law,  the  executive law, the penal law, the alcoholic
          beverage control law, the general obligations law, the social services
          law, the agriculture and markets law and the vehicle and traffic  law,
          in  relation  to making conforming changes; to amend the public health
          law, in relation to the definition of  smoking;  to  amend  the  state
          finance  law,  in relation to establishing the New York state cannabis
          revenue fund, the New York state drug treatment and  public  education
          fund  and  the  New  York state community grants reinvestment fund; to
          amend chapter 90 of the laws of 2014 amending the public  health  law,
          the  tax  law,  the  state  finance law, the general business law, the
          penal law and the criminal procedure law relating to  medical  use  of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07592-10-9

        A. 1617--B                          2

          marihuana, in relation to the effectiveness thereof; to repeal certain
          provisions  of  the  public health law relating to growing of cannabis
          and medical use of marihuana; to repeal article 221 of the  penal  law
          relating  to  offenses involving marihuana; to repeal paragraph (f) of
          subdivision 2 of section 850 of the general business law  relating  to
          drug related paraphernalia; to repeal certain provisions of the crimi-
          nal  procedure law relating to certain criminal actions; and to repeal
          certain provisions of the agriculture  and  markets  law  relating  to
          industrial hemp

          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  "marihuana
     2  regulation and taxation act".
     3    §  2.  Chapter  7-A  of  the  consolidated laws is enacted, to read as
     4  follows:

     5                    CHAPTER 7-A OF THE CONSOLIDATED LAWS
     6                                CANNABIS LAW
     7                                  ARTICLE 1
     8                SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT;
     9                                 DEFINITIONS

    10  Section 1. Short title.
    11          2. Legislative findings and intent
    12          3. Definitions.

    13    Section 1. Short title.  This chapter shall be known and may be  cited
    14  and referred to as the "cannabis law".
    15    §  2.  Legislative  findings  and  intent.  The legislature finds that
    16  existing marihuana laws have not been beneficial to the welfare  of  the
    17  general public. Existing laws have been ineffective in reducing or curb-
    18  ing  marihuana  use  and have instead resulted in devastating collateral
    19  consequences that inhibit an otherwise law-abiding citizen's ability  to
    20  access  housing,  employment  opportunities,  and  other vital services.
    21  Existing laws have also created an illicit  market  which  represents  a
    22  threat  to  public  health and reduces the ability of the legislature to
    23  deter the accessing of marihuana by minors. Existing marihuana laws have
    24  also disproportionately impacted African-American  and  Latino  communi-
    25  ties.
    26    The  intent  of  this  act is to regulate, control, and tax marihuana,
    27  heretofore known as cannabis, generate millions of dollars in new reven-
    28  ue, prevent access to cannabis by those  under  the  age  of  twenty-one
    29  years,  reduce  the illegal drug market and reduce violent crime, reduce
    30  participation of otherwise law-abiding citizens in the  illicit  market,
    31  end  the  racially disparate impact of existing cannabis laws and create
    32  new industries and increase employment.
    33    Nothing in this act is intended to limit the authority of any district
    34  government agency or office or employers to enact and  enforce  policies
    35  pertaining  to  cannabis  in  the  workplace, to allow driving under the
    36  influence of cannabis, to allow individuals to engage  in  conduct  that
    37  endangers  others, to allow smoking cannabis in any location where smok-
    38  ing tobacco is prohibited, or to require any individual to engage in any
    39  conduct that violates federal law or to exempt anyone from any  require-

        A. 1617--B                          3

     1  ment  of  federal law or pose any obstacle to the federal enforcement of
     2  federal law.
     3    It  is  the intent of this act that no child shall be the subject of a
     4  child neglect or abuse investigation or proceeding  based  solely  on  a
     5  parent's  alleged  cannabis use, or activity made lawful by this act.  A
     6  newborn child's positive toxicology result for cannabis, is  not  suffi-
     7  cient  on its own to support a finding of child neglect or abuse. Enact-
     8  ment of this act shall provide sufficient basis for New  York  state  to
     9  favorably resolve open investigations and to amend and seal individuals'
    10  family  court  records  and  records of indicated child abuse or neglect
    11  reports currently in the statewide central register of child  abuse  and
    12  maltreatment  based  solely on the use of cannabis or where the reporter
    13  of suspected abuse or neglect was a  law  enforcement  agency  or  staff
    14  person  and  the  report  was  based solely upon the presence of a child
    15  during a cannabis-related arrest.
    16    The legislature further finds and declares that  it  is  in  the  best
    17  interest  of the state to regulate medical cannabis, adult-use cannabis,
    18  and hemp extracts under one independent agency, known as the  office  of
    19  cannabis management.
    20    §  3.  Definitions.  Whenever  used  in this chapter, unless otherwise
    21  expressly stated or unless the context  or  subject  matter  requires  a
    22  different  meaning,  the  following  terms shall have the representative
    23  meanings hereinafter set forth or indicated:
    24    1. "Applicant" means a resident of  New  York  state  aged  twenty-one
    25  years  or older applying for any cannabis or hemp license or special use
    26  permit issued by the office of cannabis management.
    27    2. "Cannabinoid extractor" means a person licensed by  the  office  to
    28  acquire,  possess,  extract  and  manufacture hemp extract from licensed
    29  cannabinoid growers  for  the  manufacture  and  sale  of  hemp  extract
    30  products marketed for cannabinoid content and used or intended for human
    31  or animal consumption or use.
    32    3.  "Cannabinoid grower" means a person licensed by the office, and in
    33  compliance with article twenty-nine of the agriculture and markets  law,
    34  to  acquire,  possess, cultivate, and sell hemp extract for its cannabi-
    35  noid content.
    36    4. "Cannabis" means all parts of the  plant  of  the  genus  Cannabis,
    37  whether  growing or not; the seeds thereof; the resin extracted from any
    38  part of the plant; and every compound,  manufacture,  salt,  derivative,
    39  mixture,  or  preparation of the plant, its seeds or resin.  It does not
    40  include the mature stalks of the plant, fiber produced from the  stalks,
    41  oil  or cake made from the seeds of the plant, any other compound, manu-
    42  facture, salt, derivative, mixture, or preparation of the mature  stalks
    43  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    44  sterilized seed of the plant which is incapable of germination.  It does
    45  not include hemp extract as defined by this section.
    46    5. "Cannabis consumer" means a person twenty-one years of age or older
    47  acting in accordance with any provision of this chapter.
    48    6. "Cannabis flower" means the flower of a plant of the genus Cannabis
    49  that has been harvested, dried, and cured, and prior to  any  processing
    50  whereby the plant material is transformed into a concentrate, including,
    51  but not limited to, concentrated cannabis, or an edible or topical prod-
    52  uct  containing cannabis or concentrated cannabis and other ingredients.
    53  Cannabis flower excludes leaves and stem.
    54    7. "Cannabis product" or "adult-use cannabis" means cannabis,  concen-
    55  trated  cannabis,  and  cannabis-infused  products for use by a cannabis
    56  consumer.

        A. 1617--B                          4

     1    8. "Cannabis-infused products" means products that have been  manufac-
     2  tured  and  contain  either  cannabis or concentrated cannabis and other
     3  ingredients that are intended for use or consumption.
     4    9.  "Cannabis trim" means all parts of the plant of the genus Cannabis
     5  other than cannabis flower that have been harvested, dried,  and  cured,
     6  but prior to any further processing.
     7    10.  "Caring for" means treating a patient, in the course of which the
     8  practitioner has completed a full assessment of  the  patient's  medical
     9  history and current medical condition.
    10    11. "Certification" means a certification made under this chapter.
    11    12.  "Certified medical use" includes the acquisition, administration,
    12  cultivation, manufacture, delivery,  harvest,  possession,  preparation,
    13  transfer,  transportation,  or use of cannabis or paraphernalia relating
    14  to the administration of cannabis to  treat  or  alleviate  a  certified
    15  patient's  medical  condition  or symptoms associated with the patient's
    16  medical condition.
    17    13. "Certified patient" means a patient who is a resident of New  York
    18  state or receiving care and treatment in New York state as determined by
    19  the  executive director in regulation, and is certified under this chap-
    20  ter.
    21    14. "Commercial cannabis activity" means the production,  cultivation,
    22  manufacturing,  processing,  possession,  storing,  laboratory  testing,
    23  packaging, labeling, transportation, delivery, or sale of  cannabis  and
    24  cannabis products as provided for in this chapter.
    25    15.  "Concentrated  cannabis"  means: (a) the separated resin, whether
    26  crude or purified, obtained from a plant of the genus Cannabis; or (b) a
    27  material,  preparation,  mixture,  compound  or  other  substance  which
    28  contains more than three percent by weight of delta-9 tetrahydrocannabi-
    29  nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
    30  tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
    31  system.
    32    16.  "Condition" means having one of the following conditions: cancer,
    33  positive status for human  immunodeficiency  virus  or  acquired  immune
    34  deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease,
    35  multiple sclerosis, damage to the nervous tissue of the spinal cord with
    36  objective  neurological  indication of intractable spasticity, epilepsy,
    37  inflammatory bowel disease, neuropathies,  Huntington's  disease,  post-
    38  traumatic  stress  disorder,  pain  that  degrades health and functional
    39  capability where the use of medical cannabis is an alternative to opioid
    40  use, substance use disorder, Alzheimer's, muscular dystrophy,  dystonia,
    41  rheumatoid  arthritis,  autism  or  any other condition certified by the
    42  practitioner.
    43    17. "Cultivation" means growing, cloning, harvesting, drying,  curing,
    44  grading, and trimming of cannabis plants for sale to certain other cate-
    45  gories of cannabis license- and permit-holders.
    46    18.  "Delivery"  means  the  direct delivery of cannabis products by a
    47  retail licensee, microbusiness licensee, or delivery license holder to a
    48  cannabis consumer.
    49    19. "Designated caregiver facility" means a general hospital or  resi-
    50  dential  health care facility operating pursuant to article twenty-eight
    51  of the public health law; an adult care facility operating  pursuant  to
    52  title  two  of  article  seven  of  the social services law; a community
    53  mental health residence established pursuant to  section  41.44  of  the
    54  mental hygiene law; a hospital operating pursuant to section 7.17 of the
    55  mental  hygiene  law;  a  mental  hygiene facility operating pursuant to
    56  article thirty-one of the mental hygiene law; an inpatient  or  residen-

        A. 1617--B                          5

     1  tial  treatment  program certified pursuant to article thirty-two of the
     2  mental hygiene law; a residential facility for the care and treatment of
     3  persons with developmental disabilities operating  pursuant  to  article
     4  sixteen  of the mental hygiene law; a residential treatment facility for
     5  children and youth operating  pursuant  to  article  thirty-one  of  the
     6  mental  hygiene  law;  a  private or public school; research institution
     7  with an internal review board; or any other facility  as  determined  by
     8  the  executive director in regulation; that registers with the office to
     9  assist one or more certified patients with the acquisition,  possession,
    10  delivery, transportation or administration of medical cannabis.
    11    20.  "Designated caregiver" means an individual designated by a certi-
    12  fied patient in a registry application. A certified patient  may  desig-
    13  nate  up to five designated caregivers not counting designated caregiver
    14  facilities or designated caregiver facilities' employees.
    15    21. "Designated caregiver facility employee" means an  employee  of  a
    16  designated caregiver facility.
    17    22. "Distributor" means any person who sells at wholesale any cannabis
    18  product,  except  medical  cannabis,  for the sale of which a license is
    19  required under the provisions of this chapter.
    20    23. "Executive director" means the executive director of the office of
    21  cannabis management.
    22    24. "Form of medical cannabis" means characteristics  of  the  medical
    23  cannabis  recommended  or  limited  for  a particular certified patient,
    24  including the method of consumption and any particular strain,  variety,
    25  and quantity or percentage of cannabis or particular active ingredient.
    26    25.  "Hemp  extract" means any product made or derived from industrial
    27  hemp, including the seeds thereof and all derivatives, extracts,  canna-
    28  binoids, isomers, acids, salts, and salts of isomers, whether growing or
    29  not,  with a delta-9 tetrahydrocannabinol concentration of not more than
    30  an amount determined by the office in regulation, used or  intended  for
    31  human  or  animal  consumption  or  use  for its cannabinoid content, as
    32  determined  by  the  executive  director  in  regulation.  Hemp  extract
    33  excludes  industrial hemp used or intended exclusively for an industrial
    34  purpose.
    35    26. "Industrial hemp" means the plant Cannabis sativa L. and any  part
    36  of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
    37  extracts, cannabinoids, isomers, acids, salts,  and  salts  of  isomers,
    38  whether  growing  or  not,  with  a delta-9 tetrahydrocannabinol concen-
    39  tration of not more than three-tenths of one percent  on  a  dry  weight
    40  basis, used or intended for an industrial purpose.
    41    27. "Labor peace agreement" means an agreement between an entity and a
    42  labor  organization that, at a minimum, protects the state's proprietary
    43  interests by prohibiting labor organizations and members  from  engaging
    44  in picketing, work stoppages, boycotts, and any other economic interfer-
    45  ence with the entity.
    46    28.  "Laboratory  testing  facility"  means any independent laboratory
    47  capable of testing cannabis and  cannabis  products  for  adult-use  and
    48  medical-use;  hemp extract; or for all categories of cannabis and canna-
    49  bis products as per regulations set forth by the office.
    50    29. "License" means a written authorization issued by  the  office  of
    51  cannabis management permitting persons to engage in a specified activity
    52  with respect to cannabis or cannabis products.
    53    30.  "Medical  cannabis"  means  cannabis  as defined in this section,
    54  intended for a certified medical use, as  determined  by  the  executive
    55  director in consultation with the commissioner of health.

        A. 1617--B                          6

     1    31.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
     2  producer for the cultivation of cannabis, a cannabis  processor,  and  a
     3  cannabis  retailer  under  this article; provided such licensee complies
     4  with all requirements imposed by this  article  on  licensed  producers,
     5  processors,  and  retailers  to  the extent the licensee engages in such
     6  activities. A "microbusiness" may distribute its cannabis  and  cannabis
     7  products  to other licensed cannabis businesses and may deliver cannabis
     8  and cannabis products to customers.
     9    32. "Nursery" means a licensee that  produces  only  clones,  immature
    10  plants, seeds, and other agricultural products used specifically for the
    11  planting, propagation, and cultivation of cannabis.
    12    33.  "Office"  or  "office  of cannabis management" means the New York
    13  state office of cannabis management.
    14    34. "On-site consumption" means the consumption of cannabis in an area
    15  licensed for such activity by the office.
    16    35. "Owner" means an individual with an aggregate  ownership  interest
    17  of  twenty  percent  or more in a cannabis business licensed pursuant to
    18  this chapter, unless such interest is solely a security, lien, or encum-
    19  brance, or an individual that will be participating  in  the  direction,
    20  control, or management of the licensed cannabis business.
    21    36.  "Package"  means  any  container  or  receptacle used for holding
    22  cannabis or cannabis products.
    23    37. "Permit" means a permit issued pursuant to this chapter.
    24    38. "Permittee" means any person to whom  a  permit  has  been  issued
    25  pursuant to this chapter.
    26    39.  "Practitioner"  means  a  practitioner  who: (i) is authorized to
    27  prescribe controlled substances within the state, (ii)  by  training  or
    28  experience  is  qualified  to  treat patients; and (iii) completes, at a
    29  minimum, a two-hour course as determined by the  executive  director  in
    30  regulation.    A person's status as a practitioner under this chapter is
    31  deemed to be a "license" for purposes of  section  thirty-three  hundred
    32  ninety of the public health law and shall be subject to the same revoca-
    33  tion process.
    34    40.  "Processor"  means a licensee that extracts concentrated cannabis
    35  and/or compounds, blends, extracts, infuses, or  otherwise  manufactures
    36  concentrated  cannabis  or cannabis products, but not the cultivation of
    37  the cannabis contained in the cannabis product.
    38    41. "Registered organization" means an organization  registered  under
    39  article three of this chapter.
    40    42. "Registry application" means an application properly completed and
    41  filed  with  the  office  of  cannabis management by a certified patient
    42  under article three of this chapter.
    43    43. "Registry identification card" means a document that identifies  a
    44  certified  patient or designated caregiver, as provided under this chap-
    45  ter.
    46    44. "Retail sale" means to solicit or receive an order for, to keep or
    47  expose for sale, and to keep with intent to sell, made  by  any  person,
    48  whether  principal,  proprietor,  agent,  or  employee, of any cannabis,
    49  cannabis product, or hemp extract product to a cannabis consumer for any
    50  purpose other than resale.
    51    45. "Retailer" means any person who sells at retail any cannabis prod-
    52  uct, the sale of which a license is required  under  the  provisions  of
    53  this chapter.
    54    46. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    55  any  other  matter  or  substance  which  contains  tobacco  or cannabis
    56  provided that it does not include  the  use  of  an  electronic  smoking

        A. 1617--B                          7

     1  device that creates an aerosol or vapor, unless local laws or ordinances
     2  or  state  statutes extend prohibitions on smoking to electronic smoking
     3  devices.
     4    47.  "Terminally ill" means an individual has a medical prognosis that
     5  the individual's life expectancy is approximately one year  or  less  if
     6  the illness runs its normal course.
     7    48.  "Warehouse" means and includes a place in which cannabis products
     8  are housed or stored.
     9    49. "Wholesale" means to solicit or receive an order for, to  keep  or
    10  expose  for  sale,  and to keep with intent to sell, made by any person,
    11  whether principal, proprietor, agent,  or  employee  of  any  adult-use,
    12  medical-use, or hemp extract product for purposes of resale.

    13                                  ARTICLE 2
    14                NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT

    15  Section 9. Establishment of an office of cannabis management.
    16          10. Executive director.
    17          11. Functions,  powers  and  duties  of the office and executive
    18                director.
    19          12. Rulemaking authority.
    20          13. State cannabis advisory board.
    21          14. Disposition of moneys received for license fees.
    22          15. Legal presumptions.
    23          16. Violations of cannabis laws or  regulations;  penalties  and
    24                injunctions.
    25          17. Formal hearings; notice and procedure.
    26          18. Ethics, transparency and accountability.
    27    § 9. Establishment of an office of cannabis management. There is here-
    28  by  established,  within  the division of alcoholic beverage control, an
    29  independent office of cannabis management, which  shall  have  exclusive
    30  jurisdiction to exercise the powers and duties provided by this chapter.
    31  The  office  shall  exercise  its  authority by and through an executive
    32  director.
    33    § 10. Executive director.  The executive director shall  be  appointed
    34  by  the  governor and confirmed by the senate. The executive director of
    35  the state office of cannabis management shall receive an  annual  salary
    36  not to exceed an amount appropriated therefor by the legislature and his
    37  or  her expenses actually and necessarily incurred in the performance of
    38  official duties, unless otherwise provided by the legislature.
    39    § 11. Functions, powers and duties of the office and executive  direc-
    40  tor.    The  office of cannabis management, by and through its executive
    41  director, shall have the following powers and duties:
    42    1. To issue or refuse to issue any  registration,  license  or  permit
    43  provided  for  in  this  chapter,  and to issue temporary or provisional
    44  licenses.
    45    2. To issue or refuse to issue registrations, licenses,  permits,  and
    46  temporary  or  provisional  licenses in a manner that prioritizes social
    47  equity applicants, and small business opportunities and concerns, avoids
    48  market dominance in sectors of the industry, and reflects the demograph-
    49  ics of the state.
    50    3. To limit, or not to limit, in the executive director's  discretion,
    51  the  number  of  registrations, licenses and permits of each class to be
    52  issued within the state or any political  subdivision  thereof,  and  in
    53  connection therewith to prohibit the acceptance of applications for such

        A. 1617--B                          8

     1  classes  which  have  been so limited.   Such limitations shall consider
     2  consumer access, market demand, and geographic diversity.
     3    4.  To  develop  testing standards and certify testing laboratories in
     4  the state.
     5    5. To regulate advertising, marketing, branding, packaging, and label-
     6  ing, including regulating the accuracy of information about cannabis and
     7  cannabis products and restricting marketing and advertising to youth.
     8    6. To revoke, cancel or suspend for cause any  registration,  license,
     9  or permit issued under this chapter and/or to impose a civil penalty for
    10  cause  against  any  holder of a registration, license, or permit issued
    11  pursuant to this chapter.
    12    7. To fix by rule the  standards  of  cultivation  and  processing  of
    13  medical cannabis, adult use cannabis and hemp extract, including but not
    14  limited  to,  the  ability to regulate potency and the types of products
    15  which may be manufactured and/or  processed,  in  order  to  ensure  the
    16  health  and  safety  of the public and the use of proper ingredients and
    17  methods in the manufacture of all medical cannabis, adult use  cannabis,
    18  and hemp extract to be sold or consumed in the state.
    19    8.  To  hold  hearings,  subpoena  witnesses, compel their attendance,
    20  administer oaths, to examine any person under  oath  and  in  connection
    21  therewith  to require the production of any books or records relative to
    22  the inquiry. A subpoena issued under this section shall be regulated  by
    23  the civil practice law and rules.
    24    9. To appoint any necessary directors, deputies, counsels, assistants,
    25  investigators,  and other employees within the limits provided by appro-
    26  priation.  Investigators so employed by the office shall be deemed to be
    27  peace officers for the purpose of enforcing the provisions of the canna-
    28  bis control law or judgements or orders obtained for violation  thereof,
    29  with  all the powers set forth in section 2.20 of the criminal procedure
    30  law.  Directors, deputies, and counsels shall be in the exempt class  of
    31  the  civil service. The other assistants, investigators and employees of
    32  the office shall all be in the competitive class of the  civil  service.
    33  Employees transferred to the office shall be transferred without further
    34  examination  or  qualification  to  the same or similar titles and shall
    35  remain in the same collective bargaining units and  shall  retain  their
    36  respective  civil service classifications, status and rights pursuant to
    37  their collective bargaining units and collective bargaining  agreements.
    38  Employees serving in positions in newly created titles shall be assigned
    39  to the appropriate collective bargaining unit.
    40    10.  To remove any employee of the office for cause, after giving such
    41  employee a copy of the charges against him or her  in  writing,  and  an
    42  opportunity to be heard thereon. Any action taken under this subdivision
    43  shall be subject to and in accordance with the civil service law.
    44    11.  To inspect or provide for the inspection at any time of any prem-
    45  ises where medical cannabis, adult use  cannabis,  or  hemp  extract  is
    46  cultivated, processed, stored, distributed or sold.
    47    12. To prescribe forms of applications for registrations, licenses and
    48  permits  under  this  chapter and of all reports deemed necessary by the
    49  office.
    50    13. To delegate the powers provided in  this  section  to  such  other
    51  officers or employees or other state agencies as may be deemed appropri-
    52  ate by the executive director.
    53    14.  To  appoint  such advisory groups and committees as the executive
    54  director deems necessary to provide assistance to the  office  to  carry
    55  out the purposes and objectives of this chapter.

        A. 1617--B                          9

     1    15.  To  exercise the powers and perform the duties in relation to the
     2  administration of the office as are necessary but not specifically vest-
     3  ed by this chapter, including but not limited to  budgetary  and  fiscal
     4  matters in consultation with the cannabis advisory board.
     5    16. To develop and establish minimum criteria for certifying employees
     6  to  work  in  the  cannabis  industry,  including the establishment of a
     7  cannabis workers certification program.
     8    17. To enter into contracts, memoranda of  understanding,  and  agree-
     9  ments  as deemed appropriate by the executive director to effectuate the
    10  policy and purpose of this chapter.
    11    18. To issue and administer low interest or  zero-interest  loans  and
    12  other assistance to qualified social equity applicants.
    13    19.  If  the  executive  director finds that public health, safety, or
    14  welfare imperatively requires emergency action, and incorporates a find-
    15  ing to that effect in an order, summary suspension of a license  may  be
    16  ordered,  effective  on the date specified in such order or upon service
    17  of a certified copy of such order on the licensee,  whichever  shall  be
    18  later,  pending  proceedings  for  revocation  or  other  action.  These
    19  proceedings shall be promptly instituted and  determined.  In  addition,
    20  the  executive director may order the administrative seizure of product,
    21  issue a stop order, or take any other action necessary to effectuate and
    22  enforce the policy and purpose of this chapter.
    23    20. To issue regulations, declaratory rulings, guidance  and  industry
    24  advisories.
    25    §  12.  Rulemaking authority.   1. The office shall perform such acts,
    26  prescribe such forms and propose such rules, regulations and  orders  as
    27  it  may  deem  necessary or proper to fully effectuate the provisions of
    28  this chapter.
    29    2. The office shall have the power to promulgate any and all necessary
    30  rules and regulations governing the cultivation,  manufacture,  process-
    31  ing,  transportation,  distribution,  testing,  delivery,  and  sale  of
    32  medical cannabis, adult-use cannabis, and hemp  extract,  including  but
    33  not  limited  to  the  registration  of organizations authorized to sell
    34  medical cannabis, the licensing and/or permitting of adult-use  cannabis
    35  cultivators,  processors,  cooperatives, distributors, laboratories, and
    36  retailers, and the licensing of hemp extract  producers  and  processors
    37  pursuant to this chapter, including, but not limited to:
    38    (a) prescribing forms and establishing application, reinstatement, and
    39  renewal fees;
    40    (b)  the  qualifications  and  selection  criteria  for  registration,
    41  licensing, or permitting;
    42    (c) the books and records to be created and maintained  by  registered
    43  organizations,  licensees,  and  permittees, including the reports to be
    44  made thereon to the office, and inspection of  any  and  all  books  and
    45  records maintained by any registered organization, licensee, or permitee
    46  and  on the premise of any registered organization, licensee, or permit-
    47  tee;
    48    (d) methods of producing, processing, and packaging cannabis,  medical
    49  cannabis,  cannabis-infused  products,  concentrated  cannabis, and hemp
    50  extract; conditions of sanitation, and standards of ingredients,  quali-
    51  ty,  and  identity of cannabis products cultivated, processed, packaged,
    52  or sold by registered organizations and licensees;
    53    (e) security requirements for adult-use cannabis  retail  dispensaries
    54  and  premises  where  cannabis  products,  medical  cannabis,  and  hemp
    55  extract, are cultivated, produced,  processed,  or  stored,  and  safety

        A. 1617--B                         10

     1  protocols  for  registered organizations, licensees and their employees;
     2  and
     3    (f) hearing procedures and additional causes for cancellation, revoca-
     4  tion, and/or civil penalties against any person registered, licensed, or
     5  permitted by the authority.
     6    3. The office shall promulgate rules and regulations that are designed
     7  to:
     8    (a)  prevent  the  distribution of adult-use cannabis to persons under
     9  twenty-one years of age;
    10    (b) prevent the revenue from the sale of cannabis from going to crimi-
    11  nal enterprises, gangs, and cartels;
    12    (c) prevent the diversion of cannabis from this state to other states;
    13    (d) prevent cannabis activity that is legal under state law from being
    14  used as a cover or pretext for the trafficking of other illegal drugs or
    15  other illegal activity;
    16    (e) prevent drugged driving and  the  exacerbation  of  other  adverse
    17  public health consequences associated with the use of cannabis;
    18    (f) prevent the growing of cannabis on public lands; and
    19    (g) prevent the possession and use of cannabis on federal property.
    20    4.  The office, in consultation with the department of agriculture and
    21  markets and the department of environmental conservation, shall  promul-
    22  gate  necessary  rules  and regulations governing the safe production of
    23  cannabis, including environmental and energy standards and  restrictions
    24  on the use of pesticides.
    25    §  13. State cannabis advisory board.  1. The executive director shall
    26  establish within the office a state cannabis  advisory  board  prior  to
    27  engaging  in  rulemaking, which may consider all matters submitted to it
    28  by the executive director, and advise the office and the legislature  on
    29  cannabis cultivation, processing, distribution, transport, equity in the
    30  cannabis  industry,  public  health concerns related to cannabis, and on
    31  the testing and sale of cannabis and cannabis products.
    32    2. The executive director of the office shall serve as the chairperson
    33  of the board. The vice chairperson  shall  be  elected  from  among  the
    34  members  of  the board by the members of such board, and shall represent
    35  the board in the absence of the chairperson at all official board  func-
    36  tions.
    37    3. The members of the board shall be appointed by the temporary presi-
    38  dent  of the senate and the speaker of the assembly and shall receive no
    39  compensation for their services but shall be allowed  their  actual  and
    40  necessary  expenses incurred in the performance of their duties as board
    41  members.
    42    4. The executive director shall  promulgate  regulations  establishing
    43  the  number  of  members on the board, the term of the board members and
    44  any other terms or conditions  regarding  the  state  cannabis  advisory
    45  board,  including  that  such  board  shall  include  members  from  the
    46  geographic regions of the state.
    47    5. Every effort shall be made to ensure a balanced and diverse  board,
    48  which  shall  have  expertise in public and behavioral health, substance
    49  use disorder treatment, effective rehabilitative  treatment  for  adults
    50  and  juveniles,  economic  development,  environmental conservation, job
    51  training and placement, criminal justice, and drug policy. Further,  the
    52  board shall include residents from communities most impacted by cannabis
    53  prohibition,  people with prior drug convictions, the formerly incarcer-
    54  ated, and representatives of organizations serving communities  impacted
    55  by past federal and state drug policies.

        A. 1617--B                         11

     1    §  14.  Disposition  of  moneys received for license fees.  The office
     2  shall establish a scale of application,  licensing,  and  renewal  fees,
     3  based upon the cost of enforcing this chapter and the size of the canna-
     4  bis business being licensed, as follows:
     5    1.  The office shall charge each registered organization, licensee and
     6  permittee a registration, licensure or permit fee, and renewal  fee,  as
     7  applicable.    The  fees may vary depending upon the nature and scope of
     8  the different registration, licensure and permit activities.
     9    2. The total fees assessed pursuant to this chapter shall be set at an
    10  amount that will generate sufficient total revenue  to,  at  a  minimum,
    11  fully cover the total costs of administering this chapter.
    12    3.  All registration and licensure fees shall be set on a scaled basis
    13  by the office, dependent on the size and capacity of the business.
    14    4. The office shall deposit all fees collected in the New  York  state
    15  cannabis  revenue fund established pursuant to section ninety-nine-hh of
    16  the state finance law.
    17    § 15. Legal presumptions.   The action,  proceedings,  authority,  and
    18  orders of the office in enforcing the provisions of the cannabis law and
    19  applying  them  to  specific  cases shall at all times be regarded as in
    20  their nature judicial, and shall be treated  as  prima  facie  just  and
    21  legal.
    22    §  16.  Violations  of  cannabis  laws  or  regulations; penalties and
    23  injunctions.  1. A person who willfully violates any provision  of  this
    24  chapter,  or  any  regulation lawfully made or established by any public
    25  officer under authority of this chapter, the  punishment  for  violating
    26  which  is  not otherwise prescribed by this chapter or any other law, is
    27  punishable by imprisonment not exceeding one year,  or  by  a  fine  not
    28  exceeding five thousand dollars or by both.
    29    2.  Any  person  who  violates,  disobeys  or  disregards  any term or
    30  provision of this chapter or of any lawful notice, order  or  regulation
    31  pursuant  thereto for which a civil or criminal penalty is not otherwise
    32  expressly prescribed by law, shall be liable to the people of the  state
    33  for  a  civil  penalty  of not to exceed five thousand dollars for every
    34  such violation.
    35    3. The penalty provided for in subdivision one of this section may  be
    36  recovered by an action brought by the executive director in any court of
    37  competent jurisdiction.
    38    4.  Such civil penalty may be released or compromised by the executive
    39  director before the matter has been referred to  the  attorney  general,
    40  and  where  such  matter  has been referred to the attorney general, any
    41  such penalty may be released or compromised and any action commenced  to
    42  recover the same may be settled and discontinued by the attorney general
    43  with the consent of the executive director.
    44    5.  It  shall  be the duty of the attorney general upon the request of
    45  the executive director to bring an action for an injunction against  any
    46  person  who  violates,  disobeys  or disregards any term or provision of
    47  this chapter or of any lawful notice, order or regulation pursuant ther-
    48  eto; provided, however, that the executive director  shall  furnish  the
    49  attorney  general with such material, evidentiary matter or proof as may
    50  be requested by the attorney general for  the  prosecution  of  such  an
    51  action.
    52    6. It is the purpose of this section to provide additional and cumula-
    53  tive  remedies,  and  nothing  herein  contained  shall abridge or alter
    54  rights of action or remedies now or hereafter existing,  nor  shall  any
    55  provision  of  this  section,  nor  any  action  done  by virtue of this

        A. 1617--B                         12

     1  section, be construed as estopping the state, persons or  municipalities
     2  in the exercising of their respective rights.
     3    §  17. Formal hearings; notice and procedure.  1. The executive direc-
     4  tor, or any person designated by him or her for this purpose, may  issue
     5  subpoenas  and administer oaths in connection with any hearing or inves-
     6  tigation under or pursuant to this chapter, and it shall be the duty  of
     7  the executive director and any persons designated by him or her for such
     8  purpose  to  issue  subpoenas  at  the request of and upon behalf of the
     9  respondent.
    10    2. The executive director and those designated by him or her shall not
    11  be bound by the laws of evidence in the conduct of hearing  proceedings,
    12  but  the  determination  shall  be  founded  upon sufficient evidence to
    13  sustain it.
    14    3. Notice of hearing shall be served at least fifteen  days  prior  to
    15  the  date  of  the hearing, provided that, whenever because of danger to
    16  the public health, safety or  welfare  it  appears  prejudicial  to  the
    17  interests  of  the people of the state to delay action for fifteen days,
    18  the executive director may serve the respondent with an order  requiring
    19  certain  action  or  the  cessation of certain activities immediately or
    20  within a specified period of less than fifteen days.
    21    4. Service of notice of hearing or order shall  be  made  by  personal
    22  service  or  by  registered or certified mail. Where service, whether by
    23  personal service or by registered or certified mail,  is  made  upon  an
    24  incompetent,  partnership,  or  corporation,  it  shall be made upon the
    25  person or persons designated to  receive  personal  service  by  article
    26  three of the civil practice law and rules.
    27    5.  At a hearing, the respondent may appear personally, shall have the
    28  right of counsel, and may cross-examine witnesses against him or her and
    29  produce evidence and witnesses in his or her behalf.
    30    6. Following a hearing, the executive director  may  make  appropriate
    31  determinations and issue a final order in accordance therewith.
    32    7.  The  executive director may adopt, amend and repeal administrative
    33  rules and regulations governing  the  procedures  to  be  followed  with
    34  respect  to  hearings,  such  rules to be consistent with the policy and
    35  purpose of this chapter and the effective and fair  enforcement  of  its
    36  provisions.
    37    8.  The provisions of this section shall be applicable to all hearings
    38  held pursuant to this chapter, except where  other  provisions  of  this
    39  chapter  applicable  thereto  are inconsistent therewith, in which event
    40  such other provisions shall apply.
    41    § 18. Ethics, transparency and  accountability.    No  member  of  the
    42  office  or any officer, deputy, assistant, inspector or employee thereof
    43  shall have any interest, direct or indirect, either  proprietary  or  by
    44  means  of  any  loan, mortgage or lien, or in any other manner, in or on
    45  any premises where adult use cannabis, medical cannabis or hemp  extract
    46  is  cultivated, processed, distributed or sold; nor shall he or she have
    47  any interest, direct or indirect, in any business  wholly  or  partially
    48  devoted  to the cultivation, processing, distribution, sale, transporta-
    49  tion or storage of adult use cannabis, medical cannabis or hemp extract,
    50  or own any stock in any corporation which has any interest,  proprietary
    51  or otherwise, direct or indirect, in any premises where adult use canna-
    52  bis, medical cannabis or hemp extract is cultivated, processed, distrib-
    53  uted  or  sold,  or  in  any business wholly or partially devoted to the
    54  cultivation, processing, distribution, sale, transportation  or  storage
    55  of  adult use cannabis, medical cannabis or hemp extract, or receive any
    56  commission or profit whatsoever, direct or  indirect,  from  any  person

        A. 1617--B                         13

     1  applying  for  or  receiving  any license or permit provided for in this
     2  chapter, or hold any other elected or appointed  public  office  in  the
     3  state  or  in  any political subdivision. Anyone who violates any of the
     4  provisions of this section shall be removed and shall divulge themselves
     5  of  such  direct or indirect interests, in addition to any other penalty
     6  provided by law.

     7                                  ARTICLE 3
     8                              MEDICAL CANNABIS

     9  Section 30. Certification of patients.
    10          31. Lawful medical use.
    11          32. Registry identification cards.
    12          33. Registration as a designated caregiver facility.
    13          34. Registered organizations.
    14          35. Registering of registered organizations.
    15          36. Reports of registered organizations.
    16          37. Evaluation; research programs; report by office.
    17          38. Cannabis research license.
    18          39. Registered organizations and adult-use cannabis.
    19          40. Relation to other laws.
    20          41. Protections for the medical use of cannabis.
    21          42. Regulations.
    22          43. Suspend; terminate.
    23          44. Pricing.
    24    § 30. Certification of patients.  1. A patient certification may  only
    25  be issued if:
    26    (a)  the  patient  has  a  condition,  which shall be specified in the
    27  patient's health care record;
    28    (b) the practitioner by training or experience is qualified  to  treat
    29  the condition;
    30    (c)  the  patient  is under the practitioner's continuing care for the
    31  condition; and
    32    (d) in the practitioner's professional  opinion  and  review  of  past
    33  treatments,  the  patient is likely to receive therapeutic or palliative
    34  benefit from the primary or adjunctive treatment  with  medical  use  of
    35  cannabis for the condition.
    36    2.  The  certification  shall include: (a) the name, date of birth and
    37  address of the patient; (b) a statement that the patient has a condition
    38  and the patient is under the practitioner's care for the condition;  (c)
    39  a  statement  attesting that all requirements of subdivision one of this
    40  section have been satisfied; (d) the date; and (e)  the  name,  address,
    41  telephone  number, and the signature of the certifying practitioner. The
    42  executive director may require  by  regulation  that  the  certification
    43  shall be on a form provided by the office. The practitioner may state in
    44  the  certification that, in the practitioner's professional opinion, the
    45  patient would benefit from medical cannabis only until a specified date.
    46  The practitioner may state in the certification that, in the practition-
    47  er's professional opinion, the patient is terminally ill  and  that  the
    48  certification shall not expire until the patient dies.
    49    3.  In  making a certification, the practitioner may consider the form
    50  of medical cannabis the patient should consume, including the method  of
    51  consumption and any particular strain, variety, and quantity or percent-
    52  age of cannabis or particular active ingredient, and appropriate dosage.
    53  The  practitioner  may  state in the certification any recommendation or

        A. 1617--B                         14

     1  limitation the practitioner makes, in his or her  professional  opinion,
     2  concerning the appropriate form or forms of medical cannabis and dosage.
     3    4.  Every  practitioner  shall  consult  the  prescription  monitoring
     4  program registry prior to making or issuing  a  certification,  for  the
     5  purpose  of  reviewing  a  patient's  controlled  substance history. For
     6  purposes of this section, a practitioner may  authorize  a  designee  to
     7  consult  the  prescription  monitoring  program  registry  on his or her
     8  behalf, provided that such designation is  in  accordance  with  section
     9  thirty-three hundred forty-three-a of the public health law.
    10    5.  The  practitioner  shall  give  the certification to the certified
    11  patient, and place a copy in the patient's health care record.
    12    6. No practitioner shall issue a certification under this section  for
    13  themselves.
    14    7.  A  registry  identification  card  based  on a certification shall
    15  expire one year after the date the certification is signed by the  prac-
    16  titioner.
    17    8.  (a)  If  the practitioner states in the certification that, in the
    18  practitioner's professional opinion,  the  patient  would  benefit  from
    19  medical  cannabis only until a specified earlier date, then the registry
    20  identification card shall expire on that date; (b) if  the  practitioner
    21  states  in  the  certification  that  in the practitioner's professional
    22  opinion the patient is terminally ill and that the  certification  shall
    23  not expire until the patient dies, then the registry identification card
    24  shall state that the patient is terminally ill and that the registration
    25  card  shall  not  expire until the patient dies; (c) if the practitioner
    26  re-issues the certification to terminate the certification on an earlier
    27  date, then the registry identification card shall expire  on  that  date
    28  and  shall  be  promptly  destroyed by the certified patient; (d) if the
    29  certification so provides, the registry identification card shall  state
    30  any  recommendation  or limitation by the practitioner as to the form or
    31  forms of medical cannabis or dosage for the certified patient;  and  (e)
    32  the executive director shall make regulations to implement this subdivi-
    33  sion.
    34    §  31. Lawful medical use. The possession, acquisition, use, delivery,
    35  transfer, transportation, or administration of  medical  cannabis  by  a
    36  certified patient, designated caregiver or the employees of a designated
    37  caregiver  facility,  for  certified  medical use, shall be lawful under
    38  this article provided that:
    39    1. the cannabis that may be possessed by a certified patient shall not
    40  exceed a sixty-day supply of the dosage if determined by the practition-
    41  er, consistent with any guidance and regulations issued by the executive
    42  director, provided that during the last  seven  days  of  any  sixty-day
    43  period, the certified patient may also possess up to such amount for the
    44  next sixty-day period;
    45    2.  the  cannabis  that may be possessed by designated caregivers does
    46  not exceed the quantities referred to in subdivision one of this section
    47  for each certified patient for whom  the  caregiver  possesses  a  valid
    48  registry identification card, up to five certified patients;
    49    3.  the cannabis that may be possessed by designated caregiver facili-
    50  ties does not exceed the quantities referred to in  subdivision  one  of
    51  this  section  for each certified patient under the care or treatment of
    52  the facility;
    53    4. the form or forms of medical cannabis that may be possessed by  the
    54  certified patient, designated caregiver or designated caregiver facility
    55  pursuant  to a certification shall be in compliance with any recommenda-
    56  tion or limitation by the practitioner  as  to  the  form  or  forms  of

        A. 1617--B                         15

     1  medical  cannabis  or  dosage  for  the certified patient in the certif-
     2  ication;
     3    5. the medical cannabis shall be kept in the original package in which
     4  it  was dispensed under this article, except for the portion removed for
     5  immediate  consumption  for  certified  medical  use  by  the  certified
     6  patient; and
     7    6.  in  the  case  of  a  designated  caregiver facility, the employee
     8  assisting the patient has been designated  as  such  by  the  designated
     9  caregiver facility.
    10    §  32. Registry identification cards.  1. Upon approval of the certif-
    11  ication, the office shall issue registry identification cards for certi-
    12  fied patients and designated caregivers. A registry identification  card
    13  shall  expire  as  provided  in this article or as otherwise provided in
    14  this section.  The office shall begin  issuing  registry  identification
    15  cards  as  soon as practicable after the certifications required by this
    16  chapter are granted. The office may specify a form for a registry appli-
    17  cation, in which case the office shall  provide  the  form  on  request,
    18  reproductions  of  the form may be used, and the form shall be available
    19  for downloading from the office's website.
    20    2. To obtain, amend or renew a registry identification card, a  certi-
    21  fied  patient  or designated caregiver shall file a registry application
    22  with the office, unless otherwise exempted by the executive director  in
    23  regulation.  The  registry  application  or  renewal  application  shall
    24  include:
    25    (a) in the case of a certified patient:
    26    (i) the patient's certification, a new written certification shall  be
    27  provided with a renewal application;
    28    (ii) the name, address, and date of birth of the patient;
    29    (iii) the date of the certification;
    30    (iv)  if  the  patient  has  a registry identification card based on a
    31  current valid certification,  the  registry  identification  number  and
    32  expiration date of that registry identification card;
    33    (v)  the  specified  date  until  which the patient would benefit from
    34  medical cannabis, if the certification states such a date;
    35    (vi) the name, address, and telephone number of the certifying practi-
    36  tioner;
    37    (vii) any recommendation or limitation by the practitioner as  to  the
    38  form or forms of medical cannabis or dosage for the certified patient;
    39    (viii) if the certified patient designates a designated caregiver, the
    40  name,  address, and date of birth of the designated caregiver, and other
    41  individual identifying information required by the office;
    42    (ix) if the designated caregiver is a cannabis research license holder
    43  under  this  chapter,  the  name  of  the  organization  conducting  the
    44  research,  the address, phone number, name of the individual leading the
    45  research or appropriate  designee,  and  other  identifying  information
    46  required by the executive director; and
    47    (x) other individual identifying information required by the office;
    48    (b) in the case of a designated caregiver:
    49    (i) the name, address, and date of birth of the designated caregiver;
    50    (ii)  if  the designated caregiver has a registry identification card,
    51  the registry identification number and expiration date of that  registry
    52  identification card; and
    53    (iii) other individual identifying information required by the office;
    54    (c)  a  statement  that  a  false statement made in the application is
    55  punishable under section 210.45 of the penal law;

        A. 1617--B                         16

     1    (d) the date of the application and the  signature  of  the  certified
     2  patient or designated caregiver, as the case may be;
     3    (e) any other requirements determined by the executive director.
     4    3. Where a certified patient is under the age of eighteen or otherwise
     5  incapable of consent:
     6    (a)  The  application for a registry identification card shall be made
     7  by the person responsible for  making  health  care  decisions  for  the
     8  patient.
     9    (b)  The designated caregiver shall be: (i) a parent or legal guardian
    10  of the certified patient; (ii) a person designated by a parent or  legal
    11  guardian;  (iii) an employee of a designated caregiver facility, includ-
    12  ing a cannabis research license holder; or (iv)  an  appropriate  person
    13  approved by the office upon a sufficient showing that no parent or legal
    14  guardian is appropriate or available.
    15    4.  No  person  may  be  a designated caregiver if the person is under
    16  twenty-one years of age unless a  sufficient  showing  is  made  to  the
    17  office  that  the  person  should  be permitted to serve as a designated
    18  caregiver. The requirements for such a showing shall  be  determined  by
    19  the executive director.
    20    5.  No  person may be a designated caregiver for more than five certi-
    21  fied patients at one time; provided, however, that this limitation shall
    22  not apply to a  designated  caregiver  facility,  or  cannabis  research
    23  license holder as defined by this chapter.
    24    6.  If  a  certified  patient wishes to change or terminate his or her
    25  designated caregiver, for whatever reason, the certified  patient  shall
    26  notify  the  office  as  soon  as  practicable. The office shall issue a
    27  notification to the designated caregiver that their registration card is
    28  invalid and must be promptly destroyed. The newly  designated  caregiver
    29  must comply with all requirements set forth in this section.
    30    7.  If the certification so provides, the registry identification card
    31  shall contain any recommendation or limitation by the practitioner as to
    32  the form or forms of  medical  cannabis  or  dosage  for  the  certified
    33  patient.
    34    8.  The  office shall issue separate registry identification cards for
    35  certified patients and designated caregivers as soon as reasonably prac-
    36  ticable after receiving  a  complete  application  under  this  section,
    37  unless  it  determines  that  the application is incomplete or factually
    38  inaccurate, in which case it shall promptly notify the applicant.
    39    9. If the application of a certified patient designates an  individual
    40  as a designated caregiver who is not authorized to be a designated care-
    41  giver, that portion of the application shall be denied by the office but
    42  that shall not affect the approval of the balance of the application.
    43    10. A registry identification card shall:
    44    (a)  contain the name of the certified patient or the designated care-
    45  giver as the case may be;
    46    (b) contain the date of issuance and expiration date of  the  registry
    47  identification card;
    48    (c) contain a registry identification number for the certified patient
    49  or  designated  caregiver, as the case may be and a registry identifica-
    50  tion number;
    51    (d) contain a photograph of the individual to whom the registry  iden-
    52  tification  card  is being issued, which shall be obtained by the office
    53  in  a  manner  specified  by  the  executive  director  in  regulations;
    54  provided,  however,  that  if  the office requires certified patients to
    55  submit photographs for this purpose, there shall be a reasonable  accom-
    56  modation  of  certified  patients who are confined to their homes due to

        A. 1617--B                         17

     1  their medical conditions and may  therefore  have  difficulty  procuring
     2  photographs;
     3    (e) be a secure document as determined by the office;
     4    (f) plainly state any recommendation or limitation by the practitioner
     5  as  to the form or forms of medical cannabis or dosage for the certified
     6  patient; and
     7    (g) any other requirements determined by the executive director.
     8    11. A certified patient or designated caregiver who has been issued  a
     9  registry  identification  card  shall notify the office of any change in
    10  his or her name or address or, with respect to the patient, if he or she
    11  ceases to have the condition noted on the certification within ten  days
    12  of such change. The certified patient's or designated caregiver's regis-
    13  try  identification  card  shall be deemed invalid and shall be promptly
    14  destroyed.
    15    12. If a certified patient or designated caregiver loses  his  or  her
    16  registry  identification  card, he or she shall notify the office within
    17  ten days of losing the card. The office shall issue a new registry iden-
    18  tification card as soon as practicable, which may contain a new registry
    19  identification number, to the certified patient or designated caregiver,
    20  as the case may be.
    21    13. The office shall maintain a confidential list of  the  persons  to
    22  whom it has issued registry identification cards. Individual identifying
    23  information obtained by the office under this article shall be confiden-
    24  tial and exempt from disclosure under article six of the public officers
    25  law.  Notwithstanding this subdivision, the office may notify any appro-
    26  priate  law  enforcement agency of information relating to any violation
    27  or suspected violation of this article.
    28    14. The office shall verify to law enforcement personnel in an  appro-
    29  priate case whether a registry identification card is valid.
    30    15.  If a certified patient or designated caregiver willfully violates
    31  any provision of this article as determined by the  executive  director,
    32  his  or  her  certification  and  registry  identification  card  may be
    33  suspended or revoked. This is in addition to any other penalty that  may
    34  apply.
    35    §  33. Registration as a designated caregiver facility.  1. To obtain,
    36  amend or renew a registration as a designated  caregiver  facility,  the
    37  facility shall file a registry application with the office. The registry
    38  application or renewal application shall include:
    39    (a) the facility's full name and address;
    40    (b) operating certificate or license number where appropriate;
    41    (c)  printed  name,  title,  and  signature  of an authorized facility
    42  representative;
    43    (d) a statement that the facility agrees to secure and  ensure  proper
    44  handling of all medical cannabis products;
    45    (e)  an  acknowledgement  that a false statement in the application is
    46  punishable under section 210.45 of the penal law; and
    47    (f) any other information that may be required by the executive direc-
    48  tor.
    49    2. Prior to issuing or renewing a designated caregiver facility regis-
    50  tration, the office may verify the information submitted by  the  appli-
    51  cant.  The applicant shall provide, at the office's request, such infor-
    52  mation and documentation, including any consents or authorizations  that
    53  may be necessary for the office to verify the information.
    54    3.  The  office shall approve, deny or determine incomplete or inaccu-
    55  rate an initial or renewal application within thirty days of receipt  of
    56  the  application.  If  the application is approved within the thirty-day

        A. 1617--B                         18

     1  period, the office shall issue a registration as soon as  is  reasonably
     2  practicable.
     3    4. An applicant shall have thirty days from the date of a notification
     4  of an incomplete or factually inaccurate application to submit the mate-
     5  rials  required  to  complete, revise or substantiate information in the
     6  application. If the applicant fails to  submit  the  required  materials
     7  within  such  thirty-day time period, the application shall be denied by
     8  the office.
     9    5. Registrations issued under this section shall remain valid for  two
    10  years from the date of issuance.
    11    § 34. Registered organizations.  1. A registered organization shall be
    12  a for-profit business entity or not-for-profit corporation organized for
    13  the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
    14  ing, transporting, distributing or  dispensing  cannabis  for  certified
    15  medical use.
    16    2.  The acquiring, possession, manufacture, sale, delivery, transport-
    17  ing, distributing or dispensing of  medical  cannabis  by  a  registered
    18  organization  under  this  article  in  accordance with its registration
    19  under this article or a renewal thereof shall be lawful under this chap-
    20  ter.
    21    3. Each registered organization shall  contract  with  an  independent
    22  laboratory permitted by the office to test the medical cannabis produced
    23  by the registered organization. The executive director shall approve the
    24  laboratory  used by the registered organization and may require that the
    25  registered organization use a particular testing laboratory.  The execu-
    26  tive director is authorized to issue regulations requiring the laborato-
    27  ry to perform certain tests and services.
    28    4. (a) A registered organization may lawfully, in  good  faith,  sell,
    29  deliver,  distribute or dispense medical cannabis to a certified patient
    30  or designated caregiver upon presentation to the registered organization
    31  of a valid registry identification card for that  certified  patient  or
    32  designated  caregiver.   When presented with the registry identification
    33  card, the registered organization shall provide to the certified patient
    34  or designated caregiver a receipt, which shall state: the name, address,
    35  and registry identification number of the registered  organization;  the
    36  name and registry identification number of the certified patient and the
    37  designated caregiver, if any; the date the cannabis was sold; any recom-
    38  mendation  or  limitation by the practitioner as to the form or forms of
    39  medical cannabis or dosage for the certified patient; and the  form  and
    40  the quantity of medical cannabis sold. The registered organization shall
    41  retain  a  copy  of the registry identification card and the receipt for
    42  six years.
    43    (b) The proprietor of a registered organization shall file or cause to
    44  be filed any receipt and certification information with  the  office  by
    45  electronic  means  on  a real-time basis as the executive director shall
    46  require by regulation. When filing receipt and certification information
    47  electronically pursuant to this paragraph, the proprietor of the  regis-
    48  tered   organization   shall  dispose  of  any  electronically  recorded
    49  prescription information in such manner as the executive director  shall
    50  by regulation require.
    51    5.  (a)  No  registered  organization may sell, deliver, distribute or
    52  dispense to any certified patient or designated caregiver a quantity  of
    53  medical cannabis larger than that individual would be allowed to possess
    54  under this chapter.
    55    (b)  When dispensing medical cannabis to a certified patient or desig-
    56  nated caregiver, the registered organization:  (i) shall not dispense an

        A. 1617--B                         19

     1  amount greater than a sixty-day supply to a certified patient until  the
     2  certified  patient  has  exhausted  all  but a seven day supply provided
     3  pursuant to a previously issued certification; and (ii) shall verify the
     4  information  in  subparagraph  (i)  of  this paragraph by consulting the
     5  prescription monitoring program registry under this article.
     6    (c) Medical cannabis dispensed to a certified  patient  or  designated
     7  caregiver  by a registered organization shall conform to any recommenda-
     8  tion or limitation by the practitioner  as  to  the  form  or  forms  of
     9  medical cannabis or dosage for the certified patient.
    10    6.  When  a  registered  organization  sells, delivers, distributes or
    11  dispenses medical cannabis to a certified patient or designated caregiv-
    12  er, it shall provide to that individual a safety insert, which  will  be
    13  developed  by  the registered organization and approved by the executive
    14  director and include, but not be limited to, information on:
    15    (a) methods for administering medical cannabis,
    16    (b) any potential dangers stemming from the use of medical cannabis,
    17    (c) how to recognize what may be problematic usage of medical cannabis
    18  and obtain appropriate services or treatment for problematic usage, and
    19    (d) other information as determined by the executive director.
    20    7.  Registered organizations shall not be managed by or employ  anyone
    21  who  has  been  convicted within three years of the date of hire, of any
    22  felony related to the functions  or  duties  of  operating  a  business,
    23  except  that  if  the  executive director determines that the manager or
    24  employee is otherwise suitable to be hired, and hiring  the  manager  or
    25  employee  would  not  compromise  public  safety, the executive director
    26  shall conduct a thorough review of the nature of the crime,  conviction,
    27  circumstances,  and evidence of rehabilitation of the manager or employ-
    28  ee, and shall evaluate the suitability of the manager or employee  based
    29  on  the evidence found through the review. In determining which offenses
    30  are substantially related to the functions  or  duties  of  operating  a
    31  business,  the  executive director shall include, but not be limited to,
    32  the following:
    33    (a) a felony conviction involving fraud, money laundering, forgery and
    34  other unlawful conduct related to owning and operating a business; and
    35    (b) a felony conviction for hiring, employing  or  using  a  minor  in
    36  transporting,  carrying,  selling,  giving  away, preparing for sale, or
    37  peddling, any  controlled  substance,  or  selling,  offering  to  sell,
    38  furnishing, offering to furnish, administering, or giving any controlled
    39  substance to a minor.
    40    A felony conviction for the sale or possession of drugs, narcotics, or
    41  controlled  substances  is  not  substantially related. This subdivision
    42  shall only apply to managers or employees who come into contact with  or
    43  handle medical cannabis.
    44    8.  Manufacturing  of  medical  cannabis  by a registered organization
    45  shall only be done in an indoor, enclosed, secure  facility  located  in
    46  New  York  state, which may include a greenhouse. The executive director
    47  shall promulgate regulations establishing requirements for such  facili-
    48  ties.
    49    9.  Dispensing  of medical cannabis by a registered organization shall
    50  only be done in an indoor, enclosed, secure facility located in New York
    51  state, which may include a  greenhouse.  The  executive  director  shall
    52  promulgate regulations establishing requirements for such facilities.
    53    10.  A registered organization may contract with a person or entity to
    54  provide facilities, equipment or services  that  are  ancillary  to  the
    55  registered  organization's  functions  or  activities under this article
    56  including, but not  limited  to,  shipping,  maintenance,  construction,

        A. 1617--B                         20

     1  repair,  and  security,  provided  that  the  person or entity shall not
     2  perform any function or activity directly involving the planting,  grow-
     3  ing,  tending,  harvesting, processing, or packaging of cannabis plants,
     4  medical  cannabis,  or  medical  cannabis products being produced by the
     5  registered organization; or any other function directly involving  manu-
     6  facturing  or  retailing  of  medical cannabis. All laws and regulations
     7  applicable to such facilities, equipment, or services shall apply to the
     8  contract. The registered organization and other parties to the  contract
     9  shall  each be responsible for compliance with such laws and regulations
    10  under the contract. The executive director may make regulations consist-
    11  ent with this article relating to contracts  and  parties  to  contracts
    12  under this subdivision.
    13    11. A registered organization shall, based on the findings of an inde-
    14  pendent  laboratory,  provide  documentation  of the quality, safety and
    15  clinical strength of the medical cannabis manufactured or  dispensed  by
    16  the registered organization to the office and to any person or entity to
    17  which the medical cannabis is sold or dispensed.
    18    12.  A  registered  organization  shall be deemed to be a "health care
    19  provider" for the purposes of title two-D of article two of  the  public
    20  health law.
    21    13.  Medical  cannabis  shall  be  dispensed to a certified patient or
    22  designated caregiver in a  sealed  and  properly  labeled  package.  The
    23  labeling  shall  contain: (a) the information required to be included in
    24  the receipt provided to the certified patient or designated caregiver by
    25  the registered organization; (b) the packaging date; (c) any  applicable
    26  date  by  which the medical cannabis should be used; (d) a warning stat-
    27  ing, "This product is for medicinal use only. Women should  not  consume
    28  during  pregnancy  or  while  breastfeeding  except on the advice of the
    29  certifying health care practitioner, and in the  case  of  breastfeeding
    30  mothers,  including the infant's pediatrician. This product might impair
    31  the ability to drive. Keep out of reach of children."; (e) the amount of
    32  individual doses contained within; and (f) a warning  that  the  medical
    33  cannabis  must  be  kept  in  the  original  container  in  which it was
    34  dispensed.
    35    14. The executive director is authorized to make rules and regulations
    36  restricting the advertising and marketing of medical cannabis.
    37    § 35. Registering of registered organizations.   1. (a)  An  applicant
    38  for  registration as a registered organization under section thirty-four
    39  of this article shall include such information prepared in  such  manner
    40  and  detail  as  the  executive  director may require, including but not
    41  limited to:
    42    (i) a description of the activities in which it intends to engage as a
    43  registered organization;
    44    (ii) that the applicant:
    45    (A) is of good moral character;
    46    (B) possesses or has the right to use sufficient land, buildings,  and
    47  other  premises, which shall be specified in the application, and equip-
    48  ment to properly carry on the activity described in the application,  or
    49  in the alternative posts a bond of not less than two million dollars;
    50    (C)  is  able  to  maintain  effective security and control to prevent
    51  diversion, abuse, and other illegal conduct relating  to  the  cannabis;
    52  and
    53    (D)  is  able to comply with all applicable state laws and regulations
    54  relating to the activities in which  it  intends  to  engage  under  the
    55  registration;

        A. 1617--B                         21

     1    (iii) that the applicant has entered into a labor peace agreement with
     2  a  bona fide labor organization that is actively engaged in representing
     3  or attempting to represent the applicant's employees and the maintenance
     4  of such a labor peace agreement shall be an ongoing  material  condition
     5  of certification;
     6    (iv)  the  applicant's  status as a for-profit business entity or not-
     7  for-profit corporation; and
     8    (v) the application shall include  the  name,  residence  address  and
     9  title  of  each of the officers and directors and the name and residence
    10  address of any person or entity that is a member of the applicant.  Each
    11  such person, if an individual, or lawful representative if a legal enti-
    12  ty, shall submit an affidavit with the application setting forth:
    13    (A)  any  position of management or ownership during the preceding ten
    14  years of a twenty per centum or greater interest in any other  business,
    15  located in or outside this state, manufacturing or distributing drugs;
    16    (B)  whether  such person or any such business has been convicted of a
    17  felony or had a registration or license  suspended  or  revoked  in  any
    18  administrative or judicial proceeding; and
    19    (C)  such  other  information as the executive director may reasonably
    20  require.
    21    2. The applicant shall be under a continuing duty  to  report  to  the
    22  office any change in facts or circumstances reflected in the application
    23  or  any  newly  discovered  or  occurring  fact or circumstance which is
    24  required to be included in the application.
    25    3. (a) The executive director shall grant a registration or  amendment
    26  to a registration under this section if he or she is satisfied that:
    27    (i)  the  applicant will be able to maintain effective control against
    28  diversion of cannabis;
    29    (ii) the applicant will be able to comply with  all  applicable  state
    30  laws;
    31    (iii)  the  applicant  and its officers are ready, willing and able to
    32  properly carry on the manufacturing or distributing activity for which a
    33  registration is sought;
    34    (iv) the applicant possesses or has the right to use sufficient  land,
    35  buildings  and  equipment to properly carry on the activity described in
    36  the application;
    37    (v) it is in the public interest that such  registration  be  granted,
    38  including but not limited to:
    39    (A)  whether the number of registered organizations in an area will be
    40  adequate or excessive to reasonably serve the area;
    41    (B) whether the registered organization is  a  minority  and/or  woman
    42  owned business enterprise or a service-disabled veteran-owned business;
    43    (C)   whether  the  registered  organization  provides  education  and
    44  outreach to practitioners;
    45    (D) whether the registered  organization  promotes  the  research  and
    46  development of medical cannabis and patient outreach; and
    47    (E)  the  affordability  of  medical  cannabis products offered by the
    48  registered organization;
    49    (vi) the applicant and its managing officers are of good moral charac-
    50  ter;
    51    (vii) the applicant has entered into a labor peace  agreement  with  a
    52  bona fide labor organization that is actively engaged in representing or
    53  attempting  to  represent the applicant's employees; and the maintenance
    54  of such a labor peace agreement shall be an ongoing  material  condition
    55  of registration; and

        A. 1617--B                         22

     1    (viii)  the  applicant satisfies any other conditions as determined by
     2  the executive director.
     3    (b)  If  the  executive  director  is not satisfied that the applicant
     4  should be issued a registration, he or she shall notify the applicant in
     5  writing of those factors upon which the denial is based.  Within  thirty
     6  days  of  the  receipt  of such notification, the applicant may submit a
     7  written request to the executive director to appeal the decision.
     8    (c) The fee for a registration under this section shall be  an  amount
     9  determined  by  the  office  in  regulations;  provided, however, if the
    10  registration is issued for a period greater than two years the fee shall
    11  be increased, pro rata, for each additional month of validity.
    12    (d) Registrations issued under this section shall  be  effective  only
    13  for the registered organization and shall specify:
    14    (i) the name and address of the registered organization;
    15    (ii)  which  activities  of a registered organization are permitted by
    16  the registration;
    17    (iii) the land, buildings and facilities that  may  be  used  for  the
    18  permitted activities of the registered organization; and
    19    (iv) such other information as the executive director shall reasonably
    20  provide to assure compliance with this article.
    21    (e)  Upon application of a registered organization, a registration may
    22  be amended to allow the registered organization to relocate  within  the
    23  state  or  to add or delete permitted registered organization activities
    24  or facilities. The fee for such amendment shall  be  two  hundred  fifty
    25  dollars.
    26    4.  A  registration  issued  under this section shall be valid for two
    27  years from the date of issue, except that in  order  to  facilitate  the
    28  renewals  of  such  registrations,  the  executive director may upon the
    29  initial application for a registration, issue some  registrations  which
    30  may  remain  valid  for  a period of time greater than two years but not
    31  exceeding an additional eleven months.
    32    5.  (a) An application for the  renewal  of  any  registration  issued
    33  under  this  section  shall  be  filed with the office not more than six
    34  months nor less than four months prior  to  the  expiration  thereof.  A
    35  late-filed  application  for  the  renewal of a registration may, in the
    36  discretion of the executive director, be treated as an  application  for
    37  an initial license.
    38    (b)  The  application  for  renewal  shall  include  such  information
    39  prepared in the manner and detail as the executive director may require,
    40  including but not limited to:
    41    (i) any material change in the  circumstances  or  factors  listed  in
    42  subdivision one of this section; and
    43    (ii)  every known charge or investigation, pending or concluded during
    44  the period of the registration, by any  governmental  or  administrative
    45  agency with respect to:
    46    (A)  each  incident  or alleged incident involving the theft, loss, or
    47  possible diversion of medical cannabis manufactured  or  distributed  by
    48  the applicant; and
    49    (B)  compliance  by  the  applicant  with  the  laws of the state with
    50  respect to any substance listed in section thirty-three hundred  six  of
    51  the public health law.
    52    (c)  An  applicant  for  renewal  shall  be under a continuing duty to
    53  report to the office any change in facts or circumstances  reflected  in
    54  the  application  or  any  newly discovered or occurring fact or circum-
    55  stance which is required to be included in the application.

        A. 1617--B                         23

     1    (d) If the executive director is not  satisfied  that  the  registered
     2  organization  applicant is entitled to a renewal of the registration, he
     3  or she shall within a reasonably practicable time as determined  by  the
     4  executive director, serve upon the registered organization or its attor-
     5  ney  of  record  in  person  or by registered or certified mail an order
     6  directing the registered organization to show cause why its  application
     7  for  renewal should not be denied. The order shall specify in detail the
     8  respects in which the applicant has not satisfied the executive director
     9  that the registration should be renewed.
    10    6. (a) The executive director shall renew a registration unless he  or
    11  she determines and finds that:
    12    (i)  the  applicant  is  unlikely  to  maintain or be able to maintain
    13  effective control against diversion;
    14    (ii) the applicant is unlikely to comply with all state laws  applica-
    15  ble to the activities in which it may engage under the registration;
    16    (iii)  it  is  not  in  the  public interest to renew the registration
    17  because the number of registered organizations in an area  is  excessive
    18  to reasonably serve the area; or
    19    (iv)  the  applicant has either violated or terminated its labor peace
    20  agreement.
    21    (b) For purposes of this section, proof that  a  registered  organiza-
    22  tion,  during  the  period  of  its registration, has failed to maintain
    23  effective control against diversion,  violates  any  provision  of  this
    24  article,  or has knowingly or negligently failed to comply with applica-
    25  ble state laws relating to the activities in which it engages under  the
    26  registration,  shall  constitute  grounds for suspension, termination or
    27  limitation of the registered organization's registration  or  as  deter-
    28  mined  by the executive director. The registered organization shall also
    29  be under a continuing duty to  report  to  the  authority  any  material
    30  change or fact or circumstance to the information provided in the regis-
    31  tered organization's application.
    32    7.  The  office  may suspend or terminate the registration of a regis-
    33  tered organization, on grounds and using procedures under  this  article
    34  relating  to a license, to the extent consistent with this article.  The
    35  authority shall suspend or terminate the registration in the event  that
    36  a  registered  organization  violates or terminates the applicable labor
    37  peace agreement. Conduct in  compliance  with  this  article  which  may
    38  violate  conflicting  federal  law,  shall  not be grounds to suspend or
    39  terminate a registration.
    40    8. A registered organization that manufactures  medical  cannabis  may
    41  have  no  more  than  four dispensing sites wholly owned and operated by
    42  such registered organization. The executive director shall  ensure  that
    43  such  registered  organizations  and dispensing sites are geographically
    44  distributed across the state and that their ownership reflects the demo-
    45  graphics of the state. The executive director shall register  additional
    46  registered organizations reflecting the demographics of the state.
    47    §  36. Reports of registered organizations.  1. The executive director
    48  shall, by regulation,  require  each  registered  organization  to  file
    49  reports  by  the registered organization during a particular period. The
    50  executive director shall determine the information to  be  reported  and
    51  the forms, time, and manner of the reporting.
    52    2.  The  executive  director shall, by regulation, require each regis-
    53  tered organization to adopt  and  maintain  security,  tracking,  record
    54  keeping,  record  retention  and  surveillance  systems, relating to all
    55  medical cannabis at every stage of acquiring,  possession,  manufacture,

        A. 1617--B                         24

     1  sale,  delivery, transporting, distributing, or dispensing by the regis-
     2  tered organization, subject to regulations of the executive director.
     3    §  37. Evaluation; research programs; report by office.  1. The execu-
     4  tive director may provide for the analysis and evaluation of the  opera-
     5  tion  of this article.  The executive director may enter into agreements
     6  with one or more persons, not-for-profit corporations or other organiza-
     7  tions, for the performance of an evaluation of  the  implementation  and
     8  effectiveness of this article.
     9    2.  The  office  may develop, seek any necessary federal approval for,
    10  and carry out research programs relating to  medical  use  of  cannabis.
    11  Participation  in  any  such  research program shall be voluntary on the
    12  part of practitioners, patients, and designated caregivers.
    13    3. The office shall report every two years, beginning two years  after
    14  the  effective date of this chapter, to the governor and the legislature
    15  on the medical use of cannabis under this article and  make  appropriate
    16  recommendations.
    17    §  38.  Cannabis  research  license.   1. The executive director shall
    18  establish a  cannabis  research  license  that  permits  a  licensee  to
    19  produce, process, purchase and possess cannabis for the following limit-
    20  ed research purposes:
    21    (a) to test chemical potency and composition levels;
    22    (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
    23  products;
    24    (c) to conduct research on the efficacy and  safety  of  administering
    25  cannabis as part of medical treatment; and
    26    (d) to conduct genomic or agricultural research.
    27    2. As part of the application process for a cannabis research license,
    28  an  applicant  must  submit  to the office a description of the research
    29  that is intended to be conducted as well as the amount of cannabis to be
    30  grown or purchased. The office  shall  review  an  applicant's  research
    31  project  and  determine whether it meets the requirements of subdivision
    32  one of this section. In addition, the office shall assess  the  applica-
    33  tion based on the following criteria:
    34    (a) project quality, study design, value, and impact;
    35    (b)  whether  the  applicant has the appropriate personnel, expertise,
    36  facilities and infrastructure, funding,  and  human,  animal,  or  other
    37  approvals in place to successfully conduct the project; and
    38    (c)  whether  the  amount  of cannabis to be grown or purchased by the
    39  applicant is consistent with the  project's  scope  and  goals.  If  the
    40  office  determines  that the research project does not meet the require-
    41  ments of subdivision one  of  this  section,  the  application  must  be
    42  denied.
    43    3. A cannabis research licensee may only sell cannabis grown or within
    44  its  operation  to  other  cannabis  research  licensees. The office may
    45  revoke a cannabis research license for violations of this subsection.
    46    4. A cannabis research licensee may contract with the higher education
    47  institutions to perform research in conjunction with the university. All
    48  research projects, entered into under this section must be  approved  by
    49  the office and meet the requirements of subdivision one of this section.
    50    5. In establishing a cannabis research license, the executive director
    51  may adopt regulations on the following:
    52    (a) application requirements;
    53    (b)  cannabis research license renewal requirements, including whether
    54  additional research projects may be added or considered;
    55    (c) conditions for license revocation;

        A. 1617--B                         25

     1    (d) security measures to ensure cannabis is not diverted  to  purposes
     2  other than research;
     3    (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
     4  cannabis-infused products a licensee may have on its premises;
     5    (f) licensee reporting requirements;
     6    (g) conditions under which cannabis grown by licensed cannabis produc-
     7  ers and other product types from licensed  cannabis  processors  may  be
     8  donated to cannabis research licensees; and
     9    (h) any additional requirements deemed necessary by the office.
    10    6. A cannabis research license issued pursuant to this section must be
    11  issued  in  the  name of the applicant and specify the location at which
    12  the cannabis researcher intends to operate, which  must  be  within  the
    13  state of New York.
    14    7. The application fee for a cannabis research license shall be deter-
    15  mined by the executive director on an annual basis.
    16    8. Each cannabis research licensee shall issue an annual report to the
    17  office.  The office shall review such report and make a determination as
    18  to whether the research project continues to meet  the  research  quali-
    19  fications under this section.
    20    §  39. Registered organizations and adult-use cannabis.  1. The execu-
    21  tive director shall have the authority to  grant  some  or  all  of  the
    22  registered  organizations  registered  with the department of health and
    23  currently registered and in good standing with the office,  the  ability
    24  to  be  licensed  to  cultivate, process, or sell adult-use cannabis and
    25  cannabis products, pursuant to any fees, rules or conditions  prescribed
    26  by  the executive director in regulation and subject to the restrictions
    27  on licensed adult-use cultivators and processors on having any ownership
    28  interest in a licensed adult-use  retail  dispensary  pursuant  to  this
    29  chapter.
    30    2.  Prior to granting the licenses provided by subdivision one of this
    31  section, the office shall assess a  registered  organization  registered
    32  prior to the enactment of this chapter with a one-time special licensing
    33  fee  so  that  they  may become authorized to bypass the restrictions on
    34  having any ownership interest in a licensed adult-use retail dispensary,
    35  provided that the fees generated from such assessment shall be  used  to
    36  administer  incubators  and low or zero-interest loans and other assist-
    37  ance to qualified social equity applicants. The  timing  and  manner  in
    38  which  registered  organizations  may be granted such authority shall be
    39  determined by the executive director in regulation.
    40    § 40. Relation to other laws.  1. The provisions of this article shall
    41  apply, except that where a provision  of  this  article  conflicts  with
    42  another provision of this chapter, this article shall apply.
    43    2. Medical cannabis shall not be deemed to be a "drug" for purposes of
    44  article one hundred thirty-seven of the education law.
    45    §  41.  Protections  for  the  medical use of cannabis.   1. Certified
    46  patients, designated caregivers, designated caregiver facilities,  prac-
    47  titioners,  registered  organizations  and  the  employees of registered
    48  organizations, and cannabis researchers shall not be subject to  arrest,
    49  prosecution, or penalty in any manner, or denied any right or privilege,
    50  including  but  not limited to civil penalty or disciplinary action by a
    51  business or occupational or  professional  licensing  board  or  bureau,
    52  solely  for the certified medical use or manufacture of cannabis, or for
    53  any other action or conduct in accordance with this article.
    54    2. Being a certified patient shall be deemed to be having a "disabili-
    55  ty" under article fifteen of the executive law, section forty-c  of  the
    56  civil  rights law, sections 240.00, 485.00, and 485.05 of the penal law,

        A. 1617--B                         26

     1  and section 200.50 of the criminal procedure law. This subdivision shall
     2  not bar the  enforcement  of  a  policy  prohibiting  an  employee  from
     3  performing  his  or her employment duties while impaired by a controlled
     4  substance. This subdivision shall not require any person or entity to do
     5  any  act  that  would  put  the  person or entity in direct violation of
     6  federal law or cause it to lose a federal contract or funding.
     7    3. The fact that a person is a  certified  patient  and/or  acting  in
     8  accordance with this article, shall not be a consideration in a proceed-
     9  ing  pursuant  to applicable sections of the domestic relations law, the
    10  social services law and the family court act.
    11    4. (a) Certification applications, certification forms, any  certified
    12  patient  information contained within a database, and copies of registry
    13  identification cards shall be deemed exempt from public disclosure under
    14  sections eighty-seven and eighty-nine of the public officers law.
    15    (b) The name, contact information, and other information  relating  to
    16  practitioners  registered  with  the  office under this article shall be
    17  public information and shall be maintained by the executive director  on
    18  the office's website accessible to the public in searchable form. Howev-
    19  er, if a practitioner notifies the office in writing that he or she does
    20  not  want  his or her name and other information disclosed, that practi-
    21  tioner's name and other  information  shall  thereafter  not  be  public
    22  information  or  maintained  on the office's website, unless the practi-
    23  tioner cancels the request.
    24    § 42. Regulations.   The executive  director  shall  promulgate  regu-
    25  lations  in  consultation  with the cannabis advisory board to implement
    26  this article.
    27    § 43. Suspend; terminate.  Based upon the recommendation of the execu-
    28  tive director and/or the superintendent of state police that there is  a
    29  risk to the public health or safety, the governor may immediately termi-
    30  nate all licenses issued to registered organizations.
    31    § 44. Pricing.  Registered organizations shall submit documentation to
    32  the executive director of any change in pricing per dose for any medical
    33  cannabis  product  within fifteen days of such change. Prior approval by
    34  the executive director shall  not  be  required  for  any  such  change;
    35  provided however that the executive director is authorized to modify the
    36  price per dose for any medical cannabis product if necessary to maintain
    37  public access to appropriate medication.

    38                                  ARTICLE 4
    39                             ADULT-USE CANNABIS
    40  Section 60. Licenses issued.
    41          61. License application.
    42          62. Information to be requested in applications for licenses.
    43          63. Fees.
    44          64. Selection criteria.
    45          65. Limitations of licensure; duration.
    46          66. License renewal.
    47          67. Amendments;  changes  in ownership and organizational struc-
    48                ture.
    49          68. Adult-use cultivator license.
    50          69. Adult-use processor license.
    51          70. Adult-use cooperative license.
    52          71. Adult-use distributor license.
    53          72. Adult-use retail dispensary license.
    54          73. Micro business license.

        A. 1617--B                         27

     1          74. Notification to municipalities of adult-use  retail  dispen-
     2                sary.
     3          75. On-site  consumption  license;  provisions governing on-site
     4                consumption licenses.
     5          76. Record keeping and tracking.
     6          77. Inspections and ongoing requirements.
     7          78. Adult-use cultivators, processors or distributors not to  be
     8                interested in retail dispensaries.
     9          79. Packaging and labeling of adult-use cannabis products.
    10          80. Laboratory testing.
    11          81. Provisions  governing  the  cultivation  and  processing  of
    12                adult-use cannabis.
    13          82. Provisions governing the distribution of adult-use cannabis.
    14          83. Provisions governing adult-use cannabis retail dispensaries.
    15          84. Adult-use cannabis advertising.
    16          85. Social and  economic  equity,  minority,  women-owned  busi-
    17                nesses, and disadvantaged farmers; incubator program.
    18          86. Regulations.
    19    §  60.  Licenses  issued.    The  following kinds of licenses shall be
    20  issued by  the  executive  director  for  the  cultivation,  processing,
    21  distribution  and sale of cannabis, cannabis producers, and concentrated
    22  cannabis to cannabis consumers:
    23    1. Adult-use cultivator license;
    24    2. Adult-use processor license;
    25    3. Adult-use cooperative license;
    26    4. Adult-use distributor license;
    27    5. Adult-use retail dispensary license;
    28    6. On-site consumption license;
    29    7. Microbusiness license;
    30    8. Delivery license;
    31    9. Nursery license; and
    32    10. Any other type of license as prescribed by the executive  director
    33  in regulation.
    34    §  61. License Application.  1. Any person may apply to the office for
    35  a license to cultivate, process, distribute or dispense cannabis  within
    36  this  state  for sale. Such application shall be in writing and verified
    37  and shall contain such information as the  office  shall  require.  Such
    38  application  shall  be  accompanied  by  a check or draft for the amount
    39  required by this article for such license. If the office  shall  approve
    40  the  application,  it  shall  issue  a  license in such form as shall be
    41  determined by its rules. Such license shall contain a description of the
    42  licensed premises and in form and in substance shall be a license to the
    43  person therein specifically designated to cultivate, process, distribute
    44  or dispense cannabis in the premises therein specifically licensed.
    45    2. Except as otherwise provided in this article,  a  separate  license
    46  shall  be  required  for each facility at which cultivation, processing,
    47  distribution or retail dispensing is conducted.
    48    3. An applicant shall not be denied a license under this article based
    49  solely on a conviction for a violation of article two hundred twenty  or
    50  section  240.36  of the penal law, prior to the date article two hundred
    51  twenty-two of the penal law took effect, or a conviction for a violation
    52  of article two hundred twenty-two of the penal law after  the  effective
    53  date of this chapter.
    54    §  62.  Information  to be requested in applications for licenses.  1.
    55  The office shall have the authority to prescribe the manner and form  in

        A. 1617--B                         28

     1  which an application must be submitted to the office for licensure under
     2  this article.
     3    2.  The executive director is authorized to adopt regulations, includ-
     4  ing by emergency rule, establishing information which must  be  included
     5  on an application for licensure under this article. Such information may
     6  include, but is not limited to:  information about the applicant's iden-
     7  tity,  including  racial  and ethnic diversity; ownership and investment
     8  information, including the corporate structure; evidence of  good  moral
     9  character,  including the submission of fingerprints by the applicant to
    10  the division of criminal justice services; information about  the  prem-
    11  ises  to  be  licensed;  financial statements; and any other information
    12  prescribed by regulation.
    13    3. All license applications shall be signed by the  applicant  (if  an
    14  individual),  by  a managing member (if a limited liability company), by
    15  an officer (if a corporation), or by all partners  (if  a  partnership).
    16  Each  person  signing  such  application shall verify it or affirm it as
    17  true under the penalties of perjury.
    18    4. All license or permit applications shall be accompanied by a check,
    19  draft or other forms of payment as the office may require  or  authorize
    20  in the amount required by this article for such license or permit.
    21    5.  If there be any change, after the filing of the application or the
    22  granting of a license, in any of the facts required to be set  forth  in
    23  such application, a supplemental statement giving notice of such change,
    24  cost and source of money involved in the change, duly verified, shall be
    25  filed  with  the office within ten days after such change. Failure to do
    26  so shall, if willful and deliberate, be cause for denial  or  revocation
    27  of the license.
    28    6. In giving any notice, or taking any action in reference to a regis-
    29  tered  organization  or  licensee of a licensed premises, the office may
    30  rely upon the information furnished  in  such  application  and  in  any
    31  supplemental  statement connected therewith, and such information may be
    32  presumed to be correct, and shall be binding upon a registered organiza-
    33  tions, licensee or licensed premises  as  if  correct.  All  information
    34  required  to be furnished in such application or supplemental statements
    35  shall be deemed material in any prosecution for perjury, any  proceeding
    36  to  revoke,  cancel or suspend any license, and in the office's determi-
    37  nation to approve or deny the license.
    38    § 63. Fees. 1. The office shall have the authority  to  charge  appli-
    39  cants for licensure under this article a non-refundable application fee.
    40  Such  fee  may  be  based  on  the type of licensure sought, cultivation
    41  and/or production volume, or any other  factors  deemed  reasonable  and
    42  appropriate  by  the  office  to  achieve the policy and purpose of this
    43  chapter.
    44    2. The office shall have the authority to charge licensees a  biennial
    45  license  fee.  Such  fee  shall be based on the amount of cannabis to be
    46  cultivated, processed, distributed and/or dispensed by the  licensee  or
    47  the gross annual receipts of the licensee for the previous license peri-
    48  od,  and  any  other  factors  deemed  reasonable and appropriate by the
    49  office.
    50    3. The office shall have the authority to waive  or  reduce  fees  for
    51  social and economic equity applicants.
    52    §  64.  Selection  criteria.   1. The executive director shall develop
    53  regulations for determining whether or not an applicant should be grant-
    54  ed the privilege of an adult-use cannabis license,  based  on,  but  not
    55  limited to, the following criteria:

        A. 1617--B                         29

     1    (a)  the  applicant will be able to maintain effective control against
     2  the illegal diversion of cannabis;
     3    (b)  the  applicant  will  be able to comply with all applicable state
     4  laws and regulations;
     5    (c) the applicant and its officers are ready,  willing,  and  able  to
     6  properly carry on the activities for which a license is sought;
     7    (d)  the  applicant possesses or has the right to use sufficient land,
     8  buildings, and equipment to properly carry on the activity described  in
     9  the application;
    10    (e) the applicant qualifies as a social equity applicant or sets out a
    11  plan for benefiting communities and people disproportionally impacted by
    12  cannabis law enforcement;
    13    (f)  it is in the public interest that such license be granted, taking
    14  into consideration, but not limited to, the following criteria:
    15    (i) that it is a privilege, and not a right,  to  cultivate,  process,
    16  distribute, and sell cannabis;
    17    (ii) the number, classes, and character of other licenses in proximity
    18  to the location and in the particular municipality or subdivision there-
    19  of;
    20    (iii)  evidence  that  all  necessary  licenses  and permits have been
    21  obtained from the state and all other governing bodies;
    22    (iv) effect of the grant of the license  on  pedestrian  or  vehicular
    23  traffic, and parking, in proximity to the location;
    24    (v) the existing noise level at the location and any increase in noise
    25  level that would be generated by the proposed premises;
    26    (vi)  the ability to mitigate adverse environmental impacts, including
    27  but not limited to energy usage and carbon emissions;
    28    (vii) the effect on the production and availability  of  cannabis  and
    29  cannabis products; and
    30    (viii) any other factors specified by law or regulation that are rele-
    31  vant  to  determine that granting a license would promote public conven-
    32  ience and advantage and the public interest of the community;
    33    (g) the applicant and its managing officers are of good moral  charac-
    34  ter  and  do  not  have  an  ownership  or  controlling interest in more
    35  licenses or permits than allowed by this chapter;
    36    (h) the applicant has entered into a  labor  peace  agreement  with  a
    37  bona-fide labor organization that is actively engaged in representing or
    38  attempting  to  represent the applicant's employees, and the maintenance
    39  of such a labor peace agreement shall be an ongoing  material  condition
    40  of  licensure. In evaluating applications from entities with twenty-five
    41  or more employees, the office shall give priority to applicants that are
    42  a party to a collective bargaining  agreement  with  a  bona-fide  labor
    43  organization  in  New  York or in another state, and uses union labor to
    44  construct its licensed facility;
    45    (i) the applicant will contribute to communities and people dispropor-
    46  tionately harmed by cannabis law enforcement and report  these  contrib-
    47  utions to the office;
    48    (j)  if  the  application  is for an adult-use cultivator or processor
    49  license, the environmental impact of the facility to be licensed; and
    50    (k) the applicant satisfies any other conditions as determined by  the
    51  executive director.
    52    2.  If  the  executive  director  is  not satisfied that the applicant
    53  should be issued a license, the  executive  director  shall  notify  the
    54  applicant in writing of the specific reason or reasons for denial.

        A. 1617--B                         30

     1    3. The executive director shall have the authority to, in consultation
     2  with  the  cannabis  advisory  board,  determine  the number of licenses
     3  issued pursuant to this article.
     4    §  65.  Limitations of licensure; duration.  1. No license of any kind
     5  may be issued to a person under the age of twenty-one years,  nor  shall
     6  any licensee employ anyone under the age of twenty-one years.
     7    2. No licensee shall sell, deliver, or give away or cause or permit or
     8  procure  to be sold, delivered or given away any cannabis to any person,
     9  actually or apparently, under the age of  twenty-one  years  unless  the
    10  person  under twenty-one is also a certified patient and the licensee is
    11  appropriately licensed under article three of this chapter.
    12    3. The office shall have the authority  to  limit,  by  canopy,  plant
    13  count,  square footage or other means, the amount of cannabis allowed to
    14  be grown, processed, distributed or sold by a licensee.
    15    4. All licenses under this article shall expire two  years  after  the
    16  date of issue.
    17    § 66. License renewal.  1. Each license, issued pursuant to this arti-
    18  cle,  may  be renewed upon application therefore by the licensee and the
    19  payment of the fee for such license as prescribed by  this  article.  In
    20  the  case of applications for renewals, the office may dispense with the
    21  requirements of such statements as it deems unnecessary in view of those
    22  contained in the application made for the original license, but  in  any
    23  event  the  submission  of photographs of the licensed premises shall be
    24  dispensed with, provided the applicant for such  renewal  shall  file  a
    25  statement  with  the  office to the effect that there has been no alter-
    26  ation of such premises since the original license was issued. The office
    27  may make such rules as it deems necessary, not  inconsistent  with  this
    28  chapter, regarding applications for renewals of licenses and permits and
    29  the time for making the same.
    30    2.  Each  applicant  must  submit  to  the office documentation of the
    31  racial, ethnic, and gender diversity of the  applicant's  employees  and
    32  owners  prior  to  a  license being renewed. In addition, the office may
    33  create a social responsibility framework agreement and make  the  adher-
    34  ence to such agreement a conditional requirement of license renewal.
    35    3.  The  office  shall provide an application for renewal of a license
    36  issued under this article not less than ninety days prior to the expira-
    37  tion of the current license.
    38    4. The office may only issue a renewal license  upon  receipt  of  the
    39  prescribed  renewal  application  and renewal fee from a licensee if, in
    40  addition to the criteria in this section, the licensee's license is  not
    41  under suspension and has not been revoked.
    42    5.  Each  applicant must maintain a labor peace agreement with a bona-
    43  fide labor organization that is  actively  engaged  in  representing  or
    44  attempting to represent the applicant's employees and the maintenance of
    45  such  a  labor peace agreement shall be an ongoing material condition of
    46  licensure. Each applicant must provide  evidence  of  the  execution  of
    47  their  plan  for benefitting communities and people required for initial
    48  licensing pursuant to section sixty-four of this article.
    49    § 67. Amendments; changes in ownership and  organizational  structure.
    50  1. Licenses issued pursuant to this article shall specify:
    51    (a) the name and address of the licensee;
    52    (b) the activities permitted by the license;
    53    (c)  the  land,  buildings  and  facilities  that  may be used for the
    54  licensed activities of the licensee;
    55    (d) a unique license number issued by the office to the licensee; and

        A. 1617--B                         31

     1    (e) such other information as the executive director shall deem neces-
     2  sary to assure compliance with this chapter.
     3    2.  Upon  application  of  a  licensee to the office, a license may be
     4  amended to allow the licensee to relocate within the state,  to  add  or
     5  delete  licensed  activities or facilities, or to amend the ownership or
     6  organizational structure of the entity that is the licensee. The  execu-
     7  tive director shall establish a fee for such amendments.
     8    3.  A  license shall become void by a change in ownership, substantial
     9  corporate change or location without prior written approval of the exec-
    10  utive director. The executive director may promulgate regulations allow-
    11  ing for certain types of changes in ownership without the need for prior
    12  written approval.
    13    4. For purposes of this section, "substantial corporate change"  shall
    14  mean:
    15    (a) for a corporation, a change of eighty percent or more of the offi-
    16  cers  and/or directors, or a transfer of eighty percent or more of stock
    17  of such corporation, or an existing stockholder obtaining eighty percent
    18  or more of the stock of such corporation; or
    19    (b) for a limited liability company, a change  of  eighty  percent  or
    20  more  of  the  managing  members of the company, or a transfer of eighty
    21  percent or more of ownership interest in said company,  or  an  existing
    22  member obtaining a cumulative of eighty percent or more of the ownership
    23  interest in said company.
    24    §  68.  Adult-use  cultivator  license.   1. An adult-use cultivator's
    25  license shall authorize the  acquisition,  possession,  cultivation  and
    26  sale  of cannabis from the licensed premises of the adult-use cultivator
    27  by such licensee to duly licensed processors in this state.  The  execu-
    28  tive  director  may  establish  regulations  allowing licensed adult-use
    29  cultivators to perform certain types of minimal processing  without  the
    30  need for an adult-use processor license.
    31    2. For purposes of this section, cultivation shall include, but not be
    32  limited  to, the planting, growing, cloning, harvesting, drying, curing,
    33  grading and trimming of cannabis.
    34    3. A person holding an adult-use cultivator's license may  apply  for,
    35  and  obtain,  one processor's license and one distributor's license that
    36  may only be used to distribute their own cannabis and cannabis products.
    37    4. A person holding an adult-use cultivator's  license  may  not  also
    38  hold  a retail dispensary license pursuant to this article and no adult-
    39  use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
    40  including  by stock ownership, interlocking directors, mortgage or lien,
    41  personal or real property, or any other means, in any premises  licensed
    42  as  an  adult-use cannabis retail dispensary or in any business licensed
    43  as an adult-use cannabis retail dispensary pursuant to this article.
    44    5. A person holding an adult-use cultivator's license may not  hold  a
    45  license  to  distribute  cannabis under this article unless the licensed
    46  cultivator is also licensed as a processor under this article.
    47    6. No person may have a direct or indirect  financial  or  controlling
    48  interest  in  more than one adult-use cultivator license issued pursuant
    49  to this chapter.
    50    § 69. Adult-use processor license.   1. A  processor's  license  shall
    51  authorize  the  acquisition, possession, processing and sale of cannabis
    52  from the licensed premises of the adult-use cultivator by such  licensee
    53  to duly licensed distributors.
    54    2.  For purposes of this section, processing shall include, but not be
    55  limited to, blending, extracting, infusing, packaging, labeling,  brand-

        A. 1617--B                         32

     1  ing  and  otherwise  making  or  preparing cannabis products. Processing
     2  shall not include the cultivation of cannabis.
     3    3. No processor shall be engaged in any other business on the premises
     4  to  be  licensed;  except  that  nothing contained in this chapter shall
     5  prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
     6  utor from operating on the same premises and from a person  holding  all
     7  three licenses.
     8    4.  No  cannabis  processor licensee may hold more than three cannabis
     9  processor licenses.
    10    5. No adult-use cannabis processor shall have  a  direct  or  indirect
    11  interest, including by stock ownership, interlocking directors, mortgage
    12  or  lien, personal or real property, or any other means, in any premises
    13  licensed as an adult-use cannabis retail dispensary or in  any  business
    14  licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
    15  article.
    16    § 70. Adult-use cooperative license.  1. A cooperative  license  shall
    17  authorize  the acquisition, possession, cultivation, processing and sale
    18  from the licensed premises of the adult-use cooperative by such licensee
    19  to duly licensed distributors, on-site consumption sites, and/or  retail
    20  dispensaries; but not directly to cannabis consumers.
    21    2. To be licensed as an adult-use cooperative, the cooperative must:
    22    (i)  be  comprised  of residents of the state of New York as a limited
    23  liability company or limited liability partnership under the laws of the
    24  state, or an appropriate business structure as determined by the  execu-
    25  tive director;
    26    (ii) subordinate capital, both as regards control over the cooperative
    27  undertaking,  and  as  regards  the  ownership of the pecuniary benefits
    28  arising therefrom;
    29    (iii) be democratically controlled by the members  themselves  on  the
    30  basis of one vote per member;
    31    (iv)  vest  in  and allocate with priority to and among the members of
    32  all increases arising from their cooperative endeavor in  proportion  to
    33  the members' active participation in the cooperative endeavor; and
    34    (v)  the  cooperative  must operate according to the seven cooperative
    35  principles published by the International Cooperative Alliance in  nine-
    36  teen hundred ninety-five.
    37    3.  No  natural  person  shall  be a member of more than one adult-use
    38  cooperative licensed pursuant to this section.
    39    4. No natural person or member of an adult-use cooperative license may
    40  have a direct or indirect financial or controlling interest in any other
    41  adult-use cannabis license issued pursuant to this chapter.
    42    5. No adult-use cannabis cooperative shall have a direct  or  indirect
    43  interest, including by stock ownership, interlocking directors, mortgage
    44  or  lien, personal or real property, or any other means, in any premises
    45  licensed as an adult-use cannabis retail dispensary or in  any  business
    46  licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
    47  chapter.
    48    6. The executive director shall promulgate regulations governing coop-
    49  erative licenses, including, but not limited to,  the  establishment  of
    50  canopy  limits on the size and scope of cooperative licensees, and other
    51  measures designed to incentivize the use and licensure of cooperatives.
    52    § 71. Adult-use distributor license.  1. A distributor's license shall
    53  authorize the acquisition, possession, distribution and sale of cannabis
    54  from the licensed premises of a licensed adult-use processor, microbusi-
    55  ness or registered organization authorized pursuant to this  chapter  to
    56  sell adult-use cannabis, to duly licensed retail dispensaries.

        A. 1617--B                         33

     1    2. No distributor shall have a direct or indirect economic interest in
     2  any adult-use retail dispensary licensed pursuant to this article, or in
     3  any registered organization registered pursuant to article three of this
     4  chapter.  This  restriction shall not prohibit a registered organization
     5  authorized  pursuant  to section thirty-nine of this chapter, from being
     6  granted  licensure  by  the  office  to  distribute  adult-use  cannabis
     7  products cultivated and processed by the registered organization only to
     8  the  registered  organization's own licensed adult-use retail dispensar-
     9  ies.
    10    3. Nothing in subdivision two of this section shall prevent a distrib-
    11  utor from charging an appropriate fee for the distribution of  cannabis,
    12  including based on the volume of cannabis distributed.
    13    §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
    14  license shall authorize the acquisition, possession and sale of cannabis
    15  from the licensed premises of the retail dispensary by such licensee  to
    16  cannabis consumers.
    17    2.  No  person  may have a direct or indirect financial or controlling
    18  interest in more than three retail dispensary licenses  issued  pursuant
    19  to this chapter.
    20    3.  No  person  holding  a  retail dispensary license may also hold an
    21  adult-use cultivation, processor, microbusiness, cooperative or distrib-
    22  utor license pursuant to this article.
    23    4. No retail license shall be granted for  any  premises,  unless  the
    24  applicant  shall  be  the owner thereof, or shall be able to demonstrate
    25  possession of the premises within thirty days of initial approval of the
    26  license through a lease, management agreement or other agreement  giving
    27  the applicant control over the premises, in writing, for a term not less
    28  than the license period.
    29    5. With the exception of microbusiness licensees, no premises shall be
    30  licensed  to  sell  cannabis  products,  unless  said  premises shall be
    31  located in a store, the principal entrance to which shall  be  from  the
    32  street  level and located on a public thoroughfare in premises which may
    33  be occupied, operated or conducted for business, trade or industry or on
    34  an arcade or sub-surface thoroughfare leading to a railroad terminal.
    35    6. No cannabis retail license shall be granted for any premises within
    36  two hundred feet of a school grounds as such  term  is  defined  in  the
    37  education law.
    38    §  73. Microbusiness license. 1. A microbusiness license shall author-
    39  ize the limited cultivation, processing, distribution and dispensing  of
    40  adult use cannabis and cannabis products.
    41    2. A microbusiness licensee may not hold interest in any other license
    42  and  may  only  distribute  its  own  cannabis  and cannabis products to
    43  dispensaries.
    44    3. The size and scope of a microbusiness shall be determined by  regu-
    45  lation by the executive director in consultation with the cannabis advi-
    46  sory board.
    47    §  74.  Notification to municipalities of adult-use retail dispensary.
    48  1. Not less than thirty days nor more  than  two  hundred  seventy  days
    49  before  filing  an  application  for  licensure as an adult-use cannabis
    50  retail dispensary, an applicant shall notify the municipality  in  which
    51  the  premises  is  located  of  such  applicant's intent to file such an
    52  application.
    53    2. Such notification shall be made to the clerk of the  village,  town
    54  or  city,  as  the  case  may  be,  wherein the premises is located. For
    55  purposes of this section:

        A. 1617--B                         34

     1    (a) notification need only be given to the clerk of a village when the
     2  premises is located within the boundaries of the village; and
     3    (b)  in the city of New York, the community board established pursuant
     4  to section twenty-eight hundred of the New York city charter with juris-
     5  diction over the area in which the premises is located shall be  consid-
     6  ered the appropriate public body to which notification shall be given.
     7    3. Such notification shall be made in such form as shall be prescribed
     8  by the rules of the office.
     9    4.  A  municipality may express an opinion for or against the granting
    10  of such application. Any such opinion shall be deemed part of the record
    11  upon which the office makes its  determination  to  grant  or  deny  the
    12  application.
    13    5.  Such  notification  shall  be  made by: (a) certified mail, return
    14  receipt requested; (b) overnight delivery service with proof of mailing;
    15  or (c) personal service upon the  offices  of  the  clerk  or  community
    16  board.
    17    6.  The office shall require such notification to be on a standardized
    18  form that can be obtained on the internet or from the  office  and  such
    19  notification to include:
    20    (a)  the trade name or "doing business as" name, if any, of the estab-
    21  lishment;
    22    (b) the full name of the applicant;
    23    (c) the street address  of  the  establishment,  including  the  floor
    24  location or room number, if applicable;
    25    (d)  the  mailing  address of the establishment, if different than the
    26  street address;
    27    (e) the name, address and telephone number of the attorney  or  repre-
    28  sentative of the applicant, if any;
    29    (f) a statement indicating whether the application is for:
    30    (i) a new establishment;
    31    (ii) a transfer of an existing licensed business;
    32    (iii) a renewal of an existing license; or
    33    (iv) an alteration of an existing licensed premises;
    34    (g)  if  the  establishment is a transfer or previously licensed prem-
    35  ises, the name of the old establishment and such establishment's  regis-
    36  tration or license number;
    37    (h)  in the case of a renewal or alteration application, the registra-
    38  tion or license number of the applicant; and
    39    (i) the type of license.
    40    §  75.  On-site  consumption  license;  provisions  governing  on-site
    41  consumption  licenses.  1. No licensed adult-use cannabis retail dispen-
    42  sary shall be granted a cannabis on-site  consumption  license  for  any
    43  premises,  unless  the applicant shall be the owner thereof, or shall be
    44  in possession of said premises under a lease, in writing, for a term not
    45  less than the license period except,  however,  that  such  license  may
    46  thereafter  be renewed without the requirement of a lease as provided in
    47  this section. This subdivision shall not apply to premises  leased  from
    48  government agencies; provided, however, that the appropriate administra-
    49  tor  of  such government agency provides some form of written documenta-
    50  tion regarding the terms of occupancy under which the applicant is leas-
    51  ing said premises from the government agency  for  presentation  to  the
    52  office  at the time of the license application. Such documentation shall
    53  include the terms of occupancy between the applicant and the  government
    54  agency, including, but not limited to, any short-term leasing agreements
    55  or written occupancy agreements.

        A. 1617--B                         35

     1    2. No adult-use cannabis retail dispensary shall be granted a cannabis
     2  on-site  consumption license for any premises within two hundred feet of
     3  school grounds as such term is defined in the education law.
     4    3.  The office may consider any or all of the following in determining
     5  whether public convenience and advantage and the public interest will be
     6  promoted by the granting of a license for an on-site  cannabis  consump-
     7  tion at a particular location:
     8    (a)  that  it  is a privilege, and not a right, to cultivate, process,
     9  distribute, and sell cannabis;
    10    (b) the number, classes, and character of other licenses in  proximity
    11  to the location and in the particular municipality or subdivision there-
    12  of;
    13    (c)  evidence  that  all  necessary  licenses  and  permits  have been
    14  obtained from the state and all other governing bodies;
    15    (d) whether there is a demonstrated need for spaces to consume  canna-
    16  bis;
    17    (e)  effect  of  the  grant  of the license on pedestrian or vehicular
    18  traffic, and parking, in proximity to the location;
    19    (f) the existing noise level at the location and any increase in noise
    20  level that would be generated by the proposed premises; and
    21    (g) any other factors specified by law or regulation that are relevant
    22  to determine that granting a license would  promote  public  convenience
    23  and advantage and the public interest of the community.
    24    4.  If  the  office  shall  disapprove  an  application for an on-site
    25  consumption license, it shall state and file in its offices the  reasons
    26  therefor  and  shall  notify  the  applicant thereof. Such applicant may
    27  thereupon apply to the office for a review of such action in a manner to
    28  be prescribed by the rules of the office.
    29    5. No adult-use cannabis on-site consumption licensee shall keep  upon
    30  the  licensed  premises  any  adult-use  cannabis  products except those
    31  purchased from a licensed distributor, adult-use cooperative, or  micro-
    32  business  authorized  to sell adult-use cannabis, and only in containers
    33  approved by the office. Such containers shall have affixed thereto  such
    34  labels  as  may  be  required  by the rules of the office.   No cannabis
    35  retail licensee for on-site  consumption  shall  reuse,  refill,  tamper
    36  with,  adulterate,  dilute  or  fortify the contents of any container of
    37  cannabis products as received from the manufacturer or distributor.
    38    6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
    39  give  away, or cause or permit or procure to be sold, delivered or given
    40  away any cannabis for consumption  on  the  premises  where  sold  in  a
    41  container or package containing more than one gram of cannabis flower or
    42  one serving of cannabis infused product.
    43    7.  Except  where  a  permit  to do so is obtained pursuant to section
    44  405.10 of the penal law, no cannabis on-site consumption licensee  shall
    45  suffer,  permit,  or promote an event on its premises wherein any person
    46  shall use, explode, or cause to explode, any fireworks  or  other  pyro-
    47  technics  in  a building as defined in paragraph e of subdivision one of
    48  section 405.10 of the penal law, that is  covered  by  such  license  or
    49  possess  such fireworks or pyrotechnics for such purpose. In addition to
    50  any other penalty provided by law, a violation of this subdivision shall
    51  constitute an adequate ground for instituting a proceeding  to  suspend,
    52  cancel,  or  revoke  the  license of the violator in accordance with the
    53  applicable procedures specified in this chapter;  provided  however,  if
    54  more than one licensee is participating in a single event, upon approval
    55  by the office, only one licensee must obtain such permit.

        A. 1617--B                         36

     1    8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
     2  consumption under this chapter shall be permitted to have any opening or
     3  means of entrance or  passageway  for  persons  or  things  between  the
     4  licensed premises and any other room or place in the building containing
     5  the  licensed  premises,  or  any adjoining or abutting premises, unless
     6  ingress and egress is restricted by an employee, agent of the  licensee,
     7  or  other  method  approved  by  the office of controlling access to the
     8  facility.
     9    9. Each cannabis on-site consumption licensee shall keep and  maintain
    10  upon the licensed premises, adequate records of all transactions involv-
    11  ing the business transacted by such licensee which shall show the amount
    12  of  cannabis products, in an applicable metric measurement, purchased by
    13  such licensee together with the names, license  numbers  and  places  of
    14  business  of  the  persons from whom the same were purchased, the amount
    15  involved in such purchases, as well as the sales  of  cannabis  products
    16  made  by  such  licensee.  The office is hereby authorized to promulgate
    17  rules and regulations permitting an on-site licensee  operating  two  or
    18  more  premises separately licensed to sell cannabis products for on-site
    19  consumption to inaugurate or retain in this state methods  or  practices
    20  of  centralized  accounting,  bookkeeping,  control  records, reporting,
    21  billing, invoicing or payment respecting purchases, sales or  deliveries
    22  of cannabis products, or methods and practices of centralized receipt or
    23  storage  of  cannabis  products within this state without segregation or
    24  earmarking for any such  separately  licensed  premises,  wherever  such
    25  methods  and  practices  assure  the  availability,  at  such licensee's
    26  central or main office in this state, of data reasonably needed for  the
    27  enforcement  of  this  chapter.  Such  records  shall  be  available for
    28  inspection by any authorized representative of the office.
    29    10. All retail licensed premises shall be subject to inspection by any
    30  peace officer, acting pursuant to his or her special duties,  or  police
    31  officer and by the duly authorized representatives of the office, during
    32  the  hours  when the said premises are open for the transaction of busi-
    33  ness.
    34    11. A cannabis on-site consumption licensee shall not provide cannabis
    35  products to any person under the age of twenty-one.
    36    § 76. Record keeping and tracking. 1. The executive director shall, by
    37  regulation, require each licensee pursuant to this article to adopt  and
    38  maintain  security,  tracking,  record  keeping,  record  retention  and
    39  surveillance systems, relating to all cannabis at every stage of acquir-
    40  ing, possession, manufacture, sale, delivery, transporting,  testing  or
    41  distributing  by  the  licensee, subject to regulations of the executive
    42  director.
    43    2. Every licensee shall keep and maintain upon the  licensed  premises
    44  adequate  books  and  records of all transactions involving the licensee
    45  and sale of its products, which shall include, but is  not  limited  to,
    46  all information required by any rules promulgated by the office.
    47    3. Each sale shall be recorded separately on a numbered invoice, which
    48  shall  have  printed  thereon  the number, the name of the licensee, the
    49  address of the  licensed  premises,  and  the  current  license  number.
    50  Licensed  producers  shall  deliver  to  the licensed distributor a true
    51  duplicate invoice stating the name and address  of  the  purchaser,  the
    52  quantity  purchased,  description  and  the  price of the product, and a
    53  true, accurate and complete statement of the  terms  and  conditions  on
    54  which such sale is made.

        A. 1617--B                         37

     1    4. Such books, records and invoices shall be kept for a period of five
     2  years  and shall be available for inspection by any authorized represen-
     3  tative of the office.
     4    5.  Each  adult-use  cannabis  retail  dispensary,  microbusiness, and
     5  on-site consumption licensee shall keep and maintain upon  the  licensed
     6  premises,  adequate  records  of all transactions involving the business
     7  transacted by such licensee which shall show the amount of cannabis,  in
     8  weight,  purchased  by  such  licensee  together with the names, license
     9  numbers and places of business of the persons from whom  the  same  were
    10  purchased,  the  amount involved in such purchases, as well as the sales
    11  of cannabis made by such licensee.
    12    § 77. Inspections and ongoing requirements. All licensed or  permitted
    13  premises,  regardless  of  the  type  of  premises,  shall be subject to
    14  inspection by the office, by the duly authorized representatives of  the
    15  office,  by  any  peace  officer  acting  pursuant to his or her special
    16  duties, or by a police officer, during the hours when the said  premises
    17  are  open for the transaction of business. The office shall make reason-
    18  able accommodations so that ordinary business  is  not  interrupted  and
    19  safety  and security procedures are not compromised by the inspection. A
    20  person who holds a license or permit must make himself or herself, or an
    21  agent thereof, available and present for any inspection required by  the
    22  office.    Such  inspection may include, but is not limited to, ensuring
    23  compliance by the licensee or permittee with all other applicable build-
    24  ing codes, fire, health, safety, and governmental regulations, including
    25  at the municipal, county, and state level.
    26    § 78. Adult-use cultivators, processors  or  distributors  not  to  be
    27  interested in retail dispensaries.  1. It shall be unlawful for a culti-
    28  vator, processor, cooperative or distributor licensed under this article
    29  to:
    30    (a)  be  interested  directly  or indirectly in any premises where any
    31  cannabis product is sold at retail; or in any business devoted wholly or
    32  partially to the sale of any cannabis product at retail by stock  owner-
    33  ship,  interlocking  directors, mortgage or lien or any personal or real
    34  property, or by any other means.
    35    (b) make, or cause to be made, any loan to any person engaged  in  the
    36  manufacture or sale of any cannabis product at wholesale or retail.
    37    (c)  make  any  gift  or  render  any  service of any kind whatsoever,
    38  directly or indirectly, to any person licensed under this chapter  which
    39  in  the  judgment  of  the office may tend to influence such licensee to
    40  purchase the product of such cultivator or processor or distributor.
    41    (d) enter into any contract with  any  retail  licensee  whereby  such
    42  licensee  agrees  to confine his sales to cannabis products manufactured
    43  or sold by one or more such cultivator or  processors  or  distributors.
    44  Any  such contract shall be void and subject the licenses of all parties
    45  concerned to revocation for cause.
    46    2. The provisions of this section  shall  not  prohibit  a  registered
    47  organization authorized pursuant to section thirty-nine of this chapter,
    48  from  cultivating,  processing, or selling adult-use cannabis under this
    49  article, at facilities wholly owned  and  operated  by  such  registered
    50  organization,  subject  to  any  conditions, limitations or restrictions
    51  established by the office and this chapter.
    52    3. The office shall have the power to create rules and regulations  in
    53  regard to this section.
    54    §  79.  Packaging  and labeling of adult-use cannabis products. 1. The
    55  office is hereby authorized to promulgate rules and regulations  govern-
    56  ing  the  advertising,  branding,  marketing,  packaging and labeling of

        A. 1617--B                         38

     1  cannabis products, sold or possessed for sale in New York state, includ-
     2  ing rules pertaining to the accuracy of information and rules  restrict-
     3  ing marketing and advertising to youth.
     4    2.  Such  regulations  shall include, but not be limited to, requiring
     5  that:
     6    (a) packaging  meets  requirements  similar  to  the  federal  "poison
     7  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
     8    (b)  all cannabis-infused products shall have a separate packaging for
     9  each serving;
    10    (c) prior to delivery or sale at a  retailer,  cannabis  and  cannabis
    11  products  shall  be  labeled and placed in a resealable, child-resistant
    12  package; and
    13    (d) packages and labels shall not be made to be attractive to minors.
    14    3. Such regulations shall include requiring labels  warning  consumers
    15  of  any  potential impact on human health resulting from the consumption
    16  of cannabis products that shall be affixed to those products when  sold,
    17  if such labels are deemed warranted by the office.
    18    4.  Such  rules and regulations shall establish methods and procedures
    19  for determining serving sizes for cannabis-infused products  and  active
    20  cannabis  concentration  per  serving  size. Such regulations shall also
    21  require a nutritional fact panel that incorporates data regarding  serv-
    22  ing sizes and potency thereof.
    23    5.  The packaging, sale, marketing, branding, advertising, labeling or
    24  possession by any licensee  of  any  cannabis  product  not  labeled  or
    25  offered  in conformity with rules and regulations promulgated in accord-
    26  ance with this section shall be grounds for the imposition  of  a  fine,
    27  and/or the suspension, revocation or cancellation of a license.
    28    §  80.  Laboratory  testing.  1. Every processor of adult-use cannabis
    29  shall contract with an  independent  laboratory  permitted  pursuant  to
    30  section  one  hundred  twenty-nine of this chapter, to test the cannabis
    31  products it produces pursuant to rules and regulations prescribed by the
    32  office.  The executive director may assign an approved testing laborato-
    33  ry, which the processor of adult-use cannabis must use.
    34    2. Adult-use cannabis processors shall make  laboratory  test  reports
    35  available  to  licensed  distributors  and  retail  dispensaries for all
    36  cannabis products manufactured by the processor.
    37    3. Licensed retail dispensaries shall maintain accurate  documentation
    38  of laboratory test reports for each cannabis product offered for sale to
    39  cannabis  consumers. Such documentation shall be made publicly available
    40  by the licensed retail dispensary.
    41    4. Onsite laboratory testing by  licensees  is  permissible;  however,
    42  such  testing  shall  not be certified by the office and does not exempt
    43  the licensee from the requirements of quality  assurance  testing  at  a
    44  testing laboratory pursuant to this section.
    45    5.  An  owner of a cannabis laboratory testing permit shall not hold a
    46  license in any other category within this article and shall not  own  or
    47  have ownership interest in a registered organization registered pursuant
    48  to article three of this chapter.
    49    6.  The  office shall have the authority to require any licensee under
    50  this article to submit cannabis or cannabis  products  to  one  or  more
    51  independent laboratories for testing.
    52    § 81. Provisions governing the cultivation and processing of adult-use
    53  cannabis.  1.  Cultivation of cannabis must not be visible from a public
    54  place by normal unaided vision.
    55    2. No cultivator or processor of adult-use  cannabis  shall  sell,  or
    56  agree to sell or deliver in the state any cannabis products, as the case

        A. 1617--B                         39

     1  may  be, except in sealed containers containing quantities in accordance
     2  with size standards pursuant  to  rules  adopted  by  the  office.  Such
     3  containers  shall have affixed thereto such labels as may be required by
     4  the rules of the office.
     5    3.  No  cultivator or processor of adult-use cannabis shall furnish or
     6  cause to be furnished to any licensee, any exterior  or  interior  sign,
     7  printed,  painted,  electric  or  otherwise, except as authorized by the
     8  office. The office may make such rules as it deems  necessary  to  carry
     9  out the purpose and intent of this subdivision.
    10    4.  Cultivators  of  adult-use cannabis shall comply with plant culti-
    11  vation regulations, standards, and guidelines issued by the  office,  in
    12  consultation  with  the  department  of environmental conservation. Such
    13  regulations, standards, and guidelines shall be  guided  by  sustainable
    14  farming  principles  and  practices  such  as organic, regenerative, and
    15  integrated pest management models, and shall restrict whenever possible,
    16  the use of pesticides, herbicides, and fungicides  to  those  which  are
    17  botanical and/or biological.
    18    5.  No  cultivator  or  processor  of adult-use cannabis, including an
    19  adult-use cannabis cooperative or microbusiness may offer any incentive,
    20  payment or other benefit to a licensed  cannabis  retail  dispensary  in
    21  return for carrying the cultivator, processor, cooperative or microbusi-
    22  ness products, or preferential shelf placement.
    23    6.  All  cannabis  products shall be processed in accordance with good
    24  manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
    25  Federal Regulations, as may be modified by  the  executive  director  in
    26  regulation.
    27    7. No processor of adult-use cannabis shall produce any product which,
    28  in  the  discretion of the office, is designed to appeal to anyone under
    29  the age of twenty-one years.
    30    8. The use or integration of alcohol or nicotine in cannabis  products
    31  is strictly prohibited.
    32    § 82. Provisions governing the distribution of adult-use cannabis.  1.
    33  No  distributor  shall  sell,  or  agree to sell or deliver any cannabis
    34  products, as the case may be, in any container, except in a sealed pack-
    35  age. Such containers shall have affixed thereto such labels  as  may  be
    36  required by the rules of the office.
    37    2. No distributor shall deliver any cannabis products, except in vehi-
    38  cles  owned  and  operated by such distributor, or hired and operated by
    39  such distributor from a trucking or  transportation  company  registered
    40  with the office, and shall only make deliveries at the licensed premises
    41  of the purchaser.
    42    3.  Each  distributor  shall keep and maintain upon the licensed prem-
    43  ises, adequate books and records of all transactions involving the busi-
    44  ness transacted by such distributor, which  shall  show  the  amount  of
    45  cannabis products purchased by such distributor together with the names,
    46  license numbers and places of business of the persons from whom the same
    47  was  purchased and the amount involved in such purchases, as well as the
    48  amount of cannabis products sold by such distributor together  with  the
    49  names,  addresses,  and  license  numbers  of such purchasers. Each sale
    50  shall be recorded separately on a numbered  invoice,  which  shall  have
    51  printed thereon the number, the name of the licensee, the address of the
    52  licensed  premises,  and  the  current  license number. Such distributor
    53  shall deliver to the purchaser a true duplicate invoice stating the name
    54  and address  of  the  purchaser,  the  quantity  of  cannabis  products,
    55  description  by  brands  and  the price of such cannabis products, and a
    56  true, accurate and complete statement of the  terms  and  conditions  on

        A. 1617--B                         40

     1  which  such sale is made. Such books, records and invoices shall be kept
     2  for a period of five years and shall be available for inspection by  any
     3  authorized representative of the office.
     4    4. No distributor shall furnish or cause to be furnished to any licen-
     5  see, any exterior or interior sign, printed, painted, electric or other-
     6  wise, unless authorized by the office.
     7    5.  No  distributor  shall  provide  any  discount, rebate or customer
     8  loyalty program to any licensed retailer, except as otherwise allowed by
     9  the office.
    10    6. The executive director  is  authorized  to  promulgate  regulations
    11  establishing  a  maximum  margin  for  which a distributor may mark up a
    12  cannabis product for sale to a retail dispensary. Any adult-use cannabis
    13  product sold by a distributor for more than the maximum  markup  allowed
    14  in regulation, shall be unlawful.
    15    7.  Each  distributor  shall keep and maintain upon the licensed prem-
    16  ises, adequate books and records to demonstrate the distributor's actual
    17  cost of doing business, using accounting standards and methods regularly
    18  employed in the determination of costs for the purpose of federal income
    19  tax reporting, for the total operation  of  the  licensee.  Such  books,
    20  records  and invoices shall be kept for a period of five years and shall
    21  be available for inspection by  any  authorized  representative  of  the
    22  office  for  use in determining the maximum markup allowed in regulation
    23  pursuant to subdivision six of this section.
    24    § 83. Provisions governing adult-use cannabis retail dispensaries.  1.
    25  No cannabis retail licensee shall sell, deliver, or give away  or  cause
    26  or permit or procure to be sold, delivered or given away any cannabis to
    27  any person, actually or apparently, under the age of twenty-one years.
    28    2.  No  cannabis  retail  licensee shall sell alcoholic beverages, nor
    29  have or possess a license or permit to sell alcoholic beverages, on  the
    30  same premises where cannabis products are sold.
    31    3.  No  sign of any kind printed, painted or electric, advertising any
    32  brand shall be permitted on the exterior or interior of  such  premises,
    33  except by permission of the office.
    34    4.  No  cannabis  retail  licensee  shall sell or deliver any cannabis
    35  products to any person with knowledge of, or with  reasonable  cause  to
    36  believe,  that the person to whom such cannabis products are being sold,
    37  has acquired the same for the purpose of selling or giving them away  in
    38  violation of the provisions of this chapter or in violation of the rules
    39  and regulations of the office.
    40    5.  All  premises  licensed  under  this  section  shall be subject to
    41  inspection by any peace officer described in subdivision four of section
    42  2.10 of the criminal procedure law acting pursuant to his or her special
    43  duties, or police officer or any duly authorized representative  of  the
    44  office,  during the hours when the said premises are open for the trans-
    45  action of business.
    46    6. No cannabis retail licensee shall be interested, directly or  indi-
    47  rectly, in any cultivator, processor, distributor or microbusiness oper-
    48  ator licensed pursuant to this article, by stock ownership, interlocking
    49  directors,  mortgage  or lien on any personal or real property or by any
    50  other means. Any lien, mortgage or other interest  or  estate,  however,
    51  now held by such retailer on or in the personal or real property of such
    52  manufacturer  or  distributor,  which mortgage, lien, interest or estate
    53  was acquired on or before December thirty-first, two thousand  eighteen,
    54  shall  not  be  included  within  the  provisions  of  this subdivision;
    55  provided, however, the burden of establishing the time of the accrual of
    56  the interest comprehended by this subdivision, shall be upon the  person

        A. 1617--B                         41

     1  who claims to be entitled to the protection and exemption afforded here-
     2  by.
     3    7. No cannabis retail licensee shall make or cause to be made any loan
     4  to  any person engaged in the cultivation, processing or distribution of
     5  cannabis pursuant to this article.
     6    8. Each cannabis retail licensee shall designate  the  price  of  each
     7  item  of  cannabis  by  attaching to or otherwise displaying immediately
     8  adjacent to each such item displayed in the  interior  of  the  licensed
     9  premises where sales are made a price tag, sign or placard setting forth
    10  the price at which each such item is offered for sale therein.
    11    9. No person licensed to sell cannabis products at retail, shall allow
    12  or  permit any gambling, or offer any gambling on the licensed premises,
    13  or allow or permit illicit drug activity on the licensed  premises.  The
    14  use of the licensed premises or any part thereof for the sale of lottery
    15  tickets,  when duly authorized and lawfully conducted thereon, shall not
    16  constitute gambling within the meaning of this subdivision.
    17    10. If an employee of a  cannabis  retail  licensee  suspects  that  a
    18  cannabis  consumer  may  be  abusing  cannabis,  such  an employee shall
    19  encourage such cannabis consumer to  seek  help  from  a  substance  use
    20  disorder  program  or harm reduction services. Cannabis retail licensees
    21  shall develop standard operating procedures and  written  materials  for
    22  employees  to  utilize  when  consulting  consumers for purposes of this
    23  subdivision.
    24    11. The executive director is  authorized  to  promulgate  regulations
    25  governing  licensed  adult-use  dispensing facilities, including but not
    26  limited to, the hours of operation, size and location  of  the  licensed
    27  facility, potency and types of products offered and establishing a mini-
    28  mum  margin for which a retail dispensary must markup a cannabis product
    29  or products before selling to a cannabis consumer. Any adult-use  canna-
    30  bis product sold by a retail dispensary for less than the minimum markup
    31  allowed in regulation, shall be unlawful.
    32    § 84. Adult-use cannabis advertising.  1. The office is hereby author-
    33  ized  to  promulgate rules and regulations governing the advertising and
    34  marketing of licensed cannabis and any cannabis products or services.
    35    2. The office shall promulgate explicit rules prohibiting  advertising
    36  that:
    37    (a) is false, deceptive, or misleading;
    38    (b) promotes overconsumption;
    39    (c) depicts consumption by children or other minors;
    40    (d) is designed in any way to appeal to children or other minors;
    41    (e)  is  within two hundred feet of the perimeter of a school grounds,
    42  playground, child care center, public park, or library;
    43    (f) is within two hundred feet of  school  grounds  as  such  term  is
    44  defined in section 220.00 of the penal law;
    45    (g) is in public transit vehicles and stations;
    46    (h) is in the form of an unsolicited internet pop-up;
    47    (i) is on publicly owned or operated property; or
    48    (j)  makes medical claims or promotes adult-use cannabis for a medical
    49  or wellness purpose.
    50    3. The office shall promulgate explicit rules prohibiting all  market-
    51  ing  strategies and implementation including, but not limited to, brand-
    52  ing, packaging, labeling, location of cannabis retailers, and advertise-
    53  ments that are designed to:
    54    (a) appeal to persons less then twenty-one years of age; or
    55    (b) disseminate false or misleading information to customers.
    56    4. The office shall promulgate explicit rules requiring that:

        A. 1617--B                         42

     1    (a) all advertisements and marketing accurately and  legibly  identify
     2  the licensee or other business responsible for its content; and
     3    (b)  any  broadcast,  cable,  radio,  print and digital communications
     4  advertisements only be placed where the audience is reasonably  expected
     5  to  be  twenty-one  years  of  age  or older, as determined by reliable,
     6  up-to-date audience composition data.
     7    § 85. Social and economic equity, minority and women-owned businesses,
     8  and disadvantaged farmers; incubator  program.    1.  The  office  shall
     9  implement  a social and economic equity plan and actively promote appli-
    10  cants from communities disproportionately impacted by cannabis  prohibi-
    11  tion,  and  promote  racial,  ethnic,  and gender diversity when issuing
    12  licenses for adult-use cannabis related activities, including by  prior-
    13  itizing  consideration of applications by applicants who are from commu-
    14  nities disproportionately impacted by the enforcement of cannabis prohi-
    15  bition or  who  qualify  as  a  minority  or  women-owned  business,  or
    16  disadvantaged  farmers.  Such  qualifications shall be determined by the
    17  office in regulation.
    18    2. The office shall create  a  social  and  economic  equity  plan  to
    19  promote  diversity  in  ownership  and employment, and opportunities for
    20  social and economic equity in the adult-use cannabis industry and ensure
    21  inclusion of:
    22    (a) individuals from communities disproportionately  impacted  by  the
    23  enforcement of cannabis prohibition;
    24    (b) minority-owned businesses;
    25    (c) women-owned businesses;
    26    (d)  minority  and women-owned businesses, as defined in paragraph (d)
    27  of subdivision five of this section; and
    28    (e) disadvantaged farmers, as defined  in  subdivision  five  of  this
    29  section.
    30    3.  The  social  and  economic  equity  plan shall consider additional
    31  criteria in its licensing determinations. Under the social and  economic
    32  equity  plan,  extra  weight  shall be given to applications that demon-
    33  strate that an applicant:
    34    (a) is a member of a  community  disproportionately  impacted  by  the
    35  enforcement of cannabis prohibition;
    36    (b)  has  an  income lower than eighty percent of the median income of
    37  the county in which the applicant resides; and
    38    (c) was convicted of a cannabis-related offense prior to the effective
    39  date of this chapter, or had  a  parent,  guardian,  child,  spouse,  or
    40  dependent,  or was a dependent of an individual who, prior to the effec-
    41  tive date of this chapter, was convicted of a cannabis-related offense.
    42    4. The office shall also create an incubator program to provide direct
    43  support to social and economic equity applicants  to  achieve  and  upon
    44  having  been  granted licenses. The program shall provide direct support
    45  in the form of counseling services, education, small business  coaching,
    46  and compliance assistance.
    47    5.  For  the purposes of this section, the following definitions shall
    48  apply:
    49    (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
    50  including  a sole proprietorship, partnership, limited liability company
    51  or corporation that is:
    52    (i) at least fifty-one percent owned by one  or  more  minority  group
    53  members;
    54    (ii)  an enterprise in which such minority ownership is real, substan-
    55  tial and continuing;

        A. 1617--B                         43

     1    (iii) an enterprise in which such minority ownership has and exercises
     2  the authority to control independently the day-to-day business decisions
     3  of the enterprise;
     4    (iv)  an  enterprise authorized to do business in this state and inde-
     5  pendently owned and operated; and
     6    (v) an enterprise that is a small business.
     7    (b) "minority group member" shall mean  a  United  States  citizen  or
     8  permanent resident alien who is and can demonstrate membership in one of
     9  the following groups:
    10    (i)  black  persons  having origins in any of the black African racial
    11  groups;
    12    (ii) Hispanic persons of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
    13  Central  or  South American of either Indian or Hispanic origin, regard-
    14  less of race;
    15    (iii) Native American or Alaskan native persons having origins in  any
    16  of the original peoples of North America; or
    17    (iv)  Asian  and Pacific Islander persons having origins in any of the
    18  far east countries, south east Asia,  the  Indian  subcontinent  or  the
    19  Pacific islands.
    20    (c) "women-owned business" shall mean a business enterprise, including
    21  a  sole proprietorship, partnership, limited liability company or corpo-
    22  ration that is:
    23    (i) at least fifty-one percent owned by  one  or  more  United  States
    24  citizens or permanent resident aliens who are women;
    25    (ii)  an  enterprise  in which the ownership interest of such women is
    26  real, substantial and continuing;
    27    (iii) an enterprise in which such women ownership  has  and  exercises
    28  the authority to control independently the day-to-day business decisions
    29  of the enterprise;
    30    (iv)  an  enterprise authorized to do business in this state and inde-
    31  pendently owned and operated; and
    32    (v) an enterprise that is a small business.
    33    (d) a firm owned by a minority group member who is also a woman may be
    34  defined as a minority-owned business, a women-owned business, or both.
    35    (e) "disadvantaged farmer" shall mean a New  York  state  resident  or
    36  business  enterprise,  including  a  sole  proprietorship,  partnership,
    37  limited liability company or corporation, that  has  reported  at  least
    38  two-thirds  of  its  federal  gross income as income from farming, in at
    39  least one of the past five preceding tax years, and who:
    40    (i) farms in a county that has greater than ten percent rate of pover-
    41  ty according to the latest U.S.  Census  Bureau's  American  Communities
    42  Survey;
    43    (ii)  has  been disproportionately impacted by low commodity prices or
    44  faces the loss of farmland through development or suburban sprawl; and
    45    (iii) meets any other qualifications as defined in regulation  by  the
    46  office.
    47    (f)  "communities  disproportionately impacted" shall mean, but not be
    48  limited to, a history of arrests, convictions, and other law enforcement
    49  practices in a certain geographic area, such as,  but  not  limited  to,
    50  precincts,   zip   codes,  neighborhoods,  and  political  subdivisions,
    51  reflecting a disparate enforcement  of  cannabis  prohibition  during  a
    52  certain time period, when compared to the rest of the state.  The office
    53  shall,  in  consultation  with the cannabis advisory board, issue guide-
    54  lines to determine how to assess which communities have been  dispropor-
    55  tionately  impacted and how to assess if someone is a member of a commu-
    56  nity disproportionately impacted.

        A. 1617--B                         44

     1    6. The office shall actively promote applicants  that  foster  racial,
     2  ethnic, and gender diversity in their workforce.
     3    7. Licenses issued under the social and economic equity plan shall not
     4  be  transferable  except  to qualified social and economic equity appli-
     5  cants and only upon prior written approval of the executive director.
     6    8. The office shall collect demographic data on owners  and  employees
     7  in the adult-use cannabis industry and shall annually publish such data.
     8    §  86.  Regulations.    The  executive director shall promulgate regu-
     9  lations in consultation with the cannabis advisory  board  to  implement
    10  this article.

    11                                  ARTICLE 5
    12                                HEMP EXTRACT
    13  Section 90. Definitions.
    14          91. Rulemaking authority.
    15          92. Cannabinoid related hemp extract licensing.
    16          93. Cannabinoid grower licenses.
    17          94. Cannabinoid manufacturer license.
    18          95. Cannabinoid extractor license.
    19          96. Cannabinoid license applications.
    20          97. Information to be requested in applications for licenses.
    21          98. Fees.
    22          99. Selection criteria.
    23          100. Limitations of licensure; duration.
    24          101. License renewal.
    25          102. Form of license.
    26          103. Amendments  to  license  and  duty  to  update  information
    27                 submitted for licensing.
    28          104. Record keeping and tracking.
    29          105. Inspections and ongoing requirements.
    30          106. Packaging and labeling of hemp extract.
    31          107. Provisions  governing  the   growing,   manufacturing   and
    32                 extracting of hemp extract.
    33          108. Laboratory testing.
    34          109. Advertising.
    35          110. Research.
    36          111. Regulations.
    37          112. Cannabinoid permit.
    38          113. New York hemp product.
    39          114. Penalties and violations of this article.
    40          115. Hemp workgroup.
    41          116. Prohibitions.
    42    §  90.  Definitions.  Wherever  used  in this article unless otherwise
    43  expressly stated or unless the context  or  subject  matter  requires  a
    44  different  meaning,  the  following  terms shall have the representative
    45  meanings hereinafter set forth or indicated:
    46    1. "Applicant" means a for-profit entity or not-for-profit corporation
    47  and includes board members who submit an application to become a  licen-
    48  see.
    49    2.  "Hemp  extract"  means any product made or derived from industrial
    50  hemp, including the seeds thereof and all derivatives whether growing or
    51  not, with a delta-9-tetrahydrocannabinol concentration of not more  than
    52  an  amount  of  the plant Cannabis sativa L. and any part of such plant,
    53  including the seeds thereof and all derivatives, extracts, cannabinoids,
    54  isomers, acids, salts, and salts of isomers,  whether  growing  or  not,
    55  with  a  delta-9-tetrahydrocannabinol  concentration of not more than an

        A. 1617--B                         45

     1  amount determined by the office in  regulation,  used  or  intended  for
     2  human  or  animal  consumption  or  use  for its cannabinoid content, as
     3  determined by the office in regulation. Hemp extract excludes industrial
     4  hemp  used  or  intended exclusively for an industrial purpose and those
     5  food and/or food ingredients that are generally recognized  as  safe  by
     6  the department of agriculture and markets, and shall not be regulated as
     7  hemp extract within the meaning of this article.
     8    3.  "Cannabinoid grower" means a person licensed by the office, and in
     9  compliance with this article to acquire, possess,  cultivate,  and  sell
    10  hemp extract for its cannabinoid content.
    11    4. "Cannabinoid manufacturer" means a person licensed by the office to
    12  acquire, possess, and manufacture hemp extract from licensed cannabinoid
    13  growers  or  cannabinoid extractors for the manufacture and sale of hemp
    14  extract products marketed for cannabinoid content and used  or  intended
    15  for human or animal consumption or use.
    16    5.  "Cannabinoid  extractor"  means a person licensed by the office to
    17  acquire, possess, extract and manufacture  hemp  extract  from  licensed
    18  cannabinoid  growers  for  the  manufacture  and  sale  of  hemp extract
    19  products marketed for cannabinoid content and used or intended for human
    20  or animal consumption or use.
    21    6. "License" means a license issued pursuant to this article.
    22    7. "Industrial hemp" means the plant Cannabis sativa L. and  any  part
    23  of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
    24  extracts, cannabinoids, isomers, acids, salts,  and  salts  of  isomers,
    25  whether  growing  or  not,  with  a delta-9-tetrahydrocannabinol concen-
    26  tration of not more than 0.3 percent on a dry weight basis.
    27    § 91. Rulemaking authority. 1. The office  shall  perform  such  acts,
    28  prescribe  such  forms and propose such rules, regulations and orders as
    29  it may deem necessary or proper to fully effectuate  the  provisions  of
    30  this article.
    31    2. In consultation with the cannabis advisory board and the hemp work-
    32  group,  the office shall have the power to promulgate any and all neces-
    33  sary rules and regulations governing the production, processing,  trans-
    34  portation,  distribution,  and  sale  of hemp extract, including but not
    35  limited to the licensing of cannabinoid growers, manufacturers,  extrac-
    36  tors and retailers, including, but not limited to:
    37    (a) prescribing forms and establishing application, reinstatement, and
    38  renewal fees;
    39    (b)  the  qualifications  and  selection  criteria  for  licensing, or
    40  permitting;
    41    (c) limitations on the number of licenses to be awarded;
    42    (d) the books and records to be created and maintained  by  licensees,
    43  and  permittees, including the reports to be made thereon to the office,
    44  and inspection of any and all books and records maintained by any licen-
    45  see, or permittee, and on the premises of any licensee or permittee;
    46    (e) methods of producing,  processing,  and  packaging  hemp  extract;
    47  conditions  of  sanitation,  and  standards of ingredients, quality, and
    48  identity of hemp extract products cultivated,  processed,  packaged,  or
    49  sold by licensees; and
    50    (f) hearing procedures and additional causes for cancellation, revoca-
    51  tion,  and/or  civil penalties against any person licensed, or permitted
    52  by the office.
    53    3. The office, in consultation with the  department  of  environmental
    54  conservation  and  the  New  York  state energy research and development
    55  agency, shall promulgate necessary rules and regulations  governing  the

        A. 1617--B                         46

     1  safe  production  of  hemp  extract,  including environmental and energy
     2  standards.
     3    § 92. Cannabinoid related hemp extract licensing.  1. Persons growing,
     4  processing,  extracting,  and/or manufacturing hemp extract or producing
     5  hemp extract products distributed,  sold  or  marketed  for  cannabinoid
     6  content  and  used  or  intended for human or animal consumption or use,
     7  shall be required to obtain the following license or licenses  from  the
     8  office, depending upon the operation:
     9    (a) cannabinoid grower license;
    10    (b) cannabinoid manufacturer license;
    11    (c) cannabinoid extractor license.
    12    2.  Notwithstanding  subdivision  one  of  this section, those persons
    13  growing, processing or  manufacturing  food  or  food  ingredients  from
    14  industrial  hemp  pursuant to article twenty-nine of the agriculture and
    15  markets law which food or food ingredients are generally  recognized  as
    16  safe, shall be subject to regulation and/or licensing by the office.
    17    §  93.  Cannabinoid grower licenses. 1. A cannabinoid grower's license
    18  authorizes the acquisition, possession, cultivation  and  sale  of  hemp
    19  extract  grown or used for its cannabinoid content on the licensed prem-
    20  ises of the grower.
    21    2. A person holding a cannabinoid grower's license shall not sell hemp
    22  extract products marketed,  distributed  or  sold  for  its  cannabinoid
    23  content  and  intended  for  human consumption or use without also being
    24  licensed as a manufacturer or extractor  pursuant  to  this  article  or
    25  otherwise permitted pursuant to section ninety-two of this article.
    26    3.  Persons growing industrial hemp pursuant to article twenty-nine of
    27  the agriculture and markets law are not authorized to and shall not sell
    28  hemp extract for human or animal consumption or use, other than as  food
    29  or  a  food  ingredient  that  has  been generally recognized as safe in
    30  accordance with the office and determined by the state to  be  safe  for
    31  human  consumption  as  food  or  a  food  ingredient without also being
    32  licensed as a manufacturer or extractor  pursuant  to  this  article  or
    33  otherwise permitted pursuant to section ninety-two of this article.
    34    4.  A  person  authorized under article twenty-nine of the agriculture
    35  and markets law as an industrial hemp grower may apply for a cannabinoid
    36  grower license provided he or she can demonstrate to the office that its
    37  cultivation of industrial hemp  meets  all  the  requirements  for  hemp
    38  extract cultivated under a cannabinoid grower license.
    39    §  94. Cannabinoid manufacturer license. 1. A cannabinoid manufacturer
    40  license authorizes the licensee's acquisition, possession, and  manufac-
    41  ture  of  hemp extract from a licensed cannabinoid grower or cannabinoid
    42  extractor for the processing of hemp extract or the production  of  hemp
    43  extract  products  marketed, distributed or sold for cannabinoid content
    44  and used or intended for human or animal consumption or use.
    45    2. Notwithstanding subdivision one  of  this  section,  nothing  shall
    46  prevent  a  cannabinoid  manufacturer from manufacturing industrial hemp
    47  products not used or intended for human or animal consumption or use.
    48    § 95. Cannabinoid extractor  license.    1.  A  cannabinoid  extractor
    49  license  authorizes  the  licensee's acquisition, possession, extraction
    50  and manufacture of hemp extract from a licensed cannabinoid  grower  for
    51  the  processing  of  hemp  extract  or  the  production  of hemp extract
    52  products marketed, distributed or sold for cannabinoid content and  used
    53  or intended for human or animal consumption or use.
    54    2.  No  cannabinoid extractor licensee shall engage in any other busi-
    55  ness on the licensed premises; except that  nothing  contained  in  this

        A. 1617--B                         47

     1  article  shall  prevent a cannabinoid extractor licensee from also being
     2  licensed as a cannabinoid grower on the same premises.
     3    3.  Notwithstanding  subdivisions one and two of this section, nothing
     4  shall prevent a cannabinoid extractor from manufacturing industrial hemp
     5  products not used or intended for human or animal consumption or use.
     6    4. A person authorized under article twenty-nine  of  the  agriculture
     7  and  markets  law  as  an  industrial hemp processor shall qualify for a
     8  cannabinoid extractor license provided it can demonstrate to the  office
     9  that  its  extraction  of industrial hemp meets all the requirements for
    10  hemp extract under a cannabinoid extractor license.
    11    § 96. Cannabinoid license applications. 1. Persons shall apply  for  a
    12  cannabinoid  grower  license,  cannabinoid manufacturer license and/or a
    13  cannabinoid extractor license by submitting an application upon  a  form
    14  supplied  by  the office, providing all the requested information, veri-
    15  fied by the applicant or an authorized representative of the applicant.
    16    2. A separate license shall be required for  each  facility  at  which
    17  growing, manufacturing and/or extracting is conducted.
    18    3.  Each  applicant  shall remit with its application the fee for each
    19  office requested license.
    20    § 97. Information to be requested in applications for licenses. 1. The
    21  office shall have the authority to prescribe  the  manner  and  form  in
    22  which an application must be submitted to the office for licensure under
    23  this article.
    24    2.  The executive director is authorized to adopt regulations pursuant
    25  to the state administrative procedure act establishing information which
    26  must be included on an application for  licensure  under  this  article.
    27  Such  information may include, but is not limited to:  information about
    28  the applicant's identity, including racial and ethnic diversity;  infor-
    29  mation  about  prior  use of farmland; ownership and investment informa-
    30  tion, including the corporate structure; evidence of good moral  charac-
    31  ter,  including  the  submission of fingerprints by the applicant to the
    32  division of criminal justice services; information about the premises to
    33  be licensed; financial statements; and any other information  prescribed
    34  in regulation.
    35    3.  All  license  applications shall be signed by the applicant (if an
    36  individual), by a managing partner (if a limited liability corporation),
    37  by an officer (if a corporation), or by all partners (if a partnership).
    38  Each person signing such application shall verify it as true  under  the
    39  penalties of perjury.
    40    4. All license or permit applications shall be accompanied by a check,
    41  draft  or  other forms of payment as the office may require or authorize
    42  in the amount required by this article for such license or permit.
    43    5. If there be any change, after the filing of the application or  the
    44  granting  of  a license, in any of the facts required to be set forth in
    45  such application, a supplemental statement giving notice of such change,
    46  cost and source of money involved in the change, duly verified, shall be
    47  filed with the office within ten days after such change. Failure  to  do
    48  so  shall,  if  willful  and  deliberate, be cause for revocation of the
    49  license.
    50    6. In giving any notice, or taking any action in reference to a licen-
    51  see of a licensed premises, the office may  rely  upon  the  information
    52  furnished   in  such  application  and  in  any  supplemental  statement
    53  connected therewith, and such information may be presumed to be correct,
    54  and shall be binding upon a licensee or licensed premises as if correct.
    55  All information required to be furnished in such application or  supple-
    56  mental statements shall be deemed material in any prosecution for perju-

        A. 1617--B                         48

     1  ry,  any proceeding to revoke, cancel or suspend any license, and in the
     2  office's determination to approve or deny the license.
     3    7.  The  office may, upon documentation therefor, waive the submission
     4  of any category of information described in this section for any catego-
     5  ry of license or permit, provided that it  shall  not  be  permitted  to
     6  waive the requirement for submission of any such category of information
     7  solely for an individual applicant or applicants.
     8    §  98. Fees. The office shall have the authority to charge licensees a
     9  biennial license fee. Such fee may  be  based  on  the  amount  of  hemp
    10  extract  to be grown, processed, manufactured or extracted by the licen-
    11  see, the gross annual receipts of the licensee for the previous  license
    12  period, or any other factors deemed appropriate by the office.
    13    § 99. Selection criteria. 1. An applicant shall furnish evidence:
    14    (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol
    15  concentration  that  does not exceed a percentage of delta-9-tetrahydro-
    16  cannabinol cannabis set by the executive director on a dry weight  basis
    17  of  combined  leaves  and flowers of the plant of the genus cannabis, or
    18  per volume or weight of cannabis product;
    19    (b) its ability to comply with all applicable  state  laws  and  regu-
    20  lations;
    21    (c) that the applicant is ready, willing and able to properly carry on
    22  the activities for which a license is sought; and
    23    (d)  that  the  applicant  is in possession of or has the right to use
    24  land, buildings and equipment sufficient to properly carry on the activ-
    25  ity described in the application.
    26    2. The office, in considering whether to grant  the  license  applica-
    27  tion, shall consider whether:
    28    (a)  it is in the public interest that such license be granted, taking
    29  into consideration whether the number of licenses will  be  adequate  or
    30  excessive to reasonably serve demand;
    31    (b)  the applicant and its managing officers are of good moral charac-
    32  ter and do not  have  an  ownership  or  controlling  interest  in  more
    33  licenses or permits than allowed by this chapter;
    34    (c) preference shall be given to applicants that are currently farming
    35  in  the  state  and  are eligible or currently receiving an agricultural
    36  assessment pursuant to article twenty-five-AA  of  the  agriculture  and
    37  markets law; and
    38    (d)  the applicant satisfies any other conditions as determined by the
    39  office.
    40    3. If the executive director  is  not  satisfied  that  the  applicant
    41  should  be  issued  a  license,  the executive director shall notify the
    42  applicant in writing of the specific reason or reasons for denial.
    43    4. The executive director shall have authority and sole discretion  to
    44  determine the number of licenses issued pursuant to this article.
    45    §  100.  Limitations of licensure; duration. 1. No license pursuant to
    46  this article may be issued to a person under the age of eighteen years.
    47    2. The office shall have the authority  to  limit,  by  canopy,  plant
    48  count  or  other  means, the amount of hemp extract allowed to be culti-
    49  vated, processed, extracted or sold by a licensee.
    50    3. All licenses under this article shall expire two  years  after  the
    51  date  of  issue and be subject to any rules or limitations prescribed by
    52  the executive director in regulation.
    53    § 101. License renewal. 1. Each license, issued pursuant to this arti-
    54  cle, may be renewed upon application therefor by the  licensee  and  the
    55  payment of the fee for such license as prescribed by this article.

        A. 1617--B                         49

     1    2.  In  the case of applications for renewals, the office may dispense
     2  with the requirements of such statements as it deems unnecessary in view
     3  of those contained in the application made for the original license, but
     4  in any event the submission of  photographs  of  the  licensed  premises
     5  shall  be  dispensed with, provided the applicant for such renewal shall
     6  file a statement with the office to the effect that there  has  been  no
     7  alteration of such premises since the original license was issued.
     8    3.  The office may make such rules as may be necessary, not inconsist-
     9  ent with this chapter, regarding applications for renewals  of  licenses
    10  and permits and the time for making the same.
    11    4.  The  office  shall provide an application for renewal of a license
    12  issued under this article not less than ninety days prior to the expira-
    13  tion of the current license.
    14    5. The office may only issue a renewal license  upon  receipt  of  the
    15  prescribed  renewal  application  and renewal fee from a licensee if, in
    16  addition to the criteria in section ninety-seven of  this  article,  the
    17  licensee's license is not under suspension and has not been revoked.
    18    6. The office shall have the authority to charge applicants for licen-
    19  sure  under  this article a non-refundable application fee. Such fee may
    20  be based on the type of licensure sought, cultivation and/or  production
    21  volume,  or  any  other factors deemed reasonable and appropriate by the
    22  office to achieve the policy and purpose of this chapter.
    23    § 102. Form of license. Licenses issued pursuant to this article shall
    24  specify:
    25    1. the name and address of the licensee;
    26    2. the activities permitted by the license;
    27    3. the land, buildings  and  facilities  that  may  be  used  for  the
    28  licensed activities of the licensee;
    29    4.  a  unique license number issued by the department to the licensee;
    30  and
    31    5. such other information as the executive director shall deem  neces-
    32  sary to assure compliance with this chapter.
    33    §  103. Amendments to license and duty to update information submitted
    34  for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
    35  license  may  be  amended  to  allow the licensee to relocate within the
    36  state, to add or delete licensed activities or facilities, or  to  amend
    37  the  ownership  or  organizational  structure  of the entity that is the
    38  licensee. The fee for such amendment shall be two hundred fifty dollars.
    39    2. In the event that any of the information provided by the  applicant
    40  changes  either while the application is pending or after the license is
    41  granted, within ten days of any such change, the applicant  or  licensee
    42  shall submit to the office a verified statement setting forth the change
    43  in circumstances of facts set forth in the application. Failure to do so
    44  shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
    45  license.
    46    3. A license shall become void by a change in  ownership,  substantial
    47  corporate change or location without prior written approval of the exec-
    48  utive  director.    The  executive  director  may promulgate regulations
    49  allowing for certain types of changes in ownership without the need  for
    50  prior written approval.
    51    4.  For purposes of this section, "substantial corporate change" shall
    52  mean:
    53    (a) for a corporation, a change of eighty percent or more of the offi-
    54  cers and/or directors, or a transfer of eighty percent or more of  stock
    55  of such corporation, or an existing stockholder obtaining eighty percent
    56  or more of the stock of such corporation; and

        A. 1617--B                         50

     1    (b)  for  a  limited  liability company, a change of eighty percent or
     2  more of the managing members of the company, or  a  transfer  of  eighty
     3  percent  or  more  of ownership interest in said company, or an existing
     4  member obtaining a cumulative of eighty percent or more of the ownership
     5  interest in said company.
     6    §  104.  Record keeping and tracking. 1. The executive director shall,
     7  by regulation, require each licensee pursuant to this article  to  adopt
     8  and  maintain  security,  tracking, record keeping, record retention and
     9  surveillance systems, relating to all hemp extract  at  every  stage  of
    10  acquiring,  possession,  manufacture,  transport,  sale, or delivery, or
    11  distribution by the licensee, subject to regulations  of  the  executive
    12  director.
    13    2.  Every licensee shall keep and maintain upon the licensed premises,
    14  adequate books and records of all transactions  involving  the  licensee
    15  and  sale  of its products, which shall include all information required
    16  by rules promulgated by the office.
    17    3. Each sale shall be recorded separately on a numbered invoice, which
    18  shall have printed thereon the number, the name  of  the  licensee,  the
    19  address of the licensed premises, and the current license number.
    20    4. Such books, records and invoices shall be kept for a period of five
    21  years  and shall be available for inspection by any authorized represen-
    22  tative of the office.
    23    § 105. Inspections and ongoing requirements. All  licensees  shall  be
    24  subject to reasonable inspection by the office, in consultation with the
    25  department of health, and a person who holds a license must make himself
    26  or  herself,  or  an  agent  thereof,  available  and  present  for  any
    27  inspection required by the office.  The  office  shall  make  reasonable
    28  accommodations  so  that ordinary business is not interrupted and safety
    29  and security procedures are not compromised by the inspection.
    30    § 106. Packaging and labeling of  hemp  extract.  1.  The  office,  in
    31  consultation  with the department of health, is authorized to promulgate
    32  rules and regulations governing  the  packaging  and  labeling  of  hemp
    33  extract products, sold or possessed for sale in New York state.
    34    2.  Such  regulations  shall include, but not be limited to, requiring
    35  labels warning consumers of any potential impact on human health result-
    36  ing from the consumption of hemp extract products that shall be  affixed
    37  to  those products when sold, if such labels are deemed warranted by the
    38  office. No label may state that hemp extract can treat, cure or  prevent
    39  any disease without approval pursuant to federal law.
    40    3.  Such  rules and regulations shall establish a QR code which may be
    41  used in conjunction with similar technology  for  labels  and  establish
    42  methods  and  procedures  for  determining,  among other things, serving
    43  sizes for hemp extract products, active  cannabinoid  concentration  per
    44  serving  size, number of servings per container, and the growing region,
    45  state or country of origin if not from the  United  States.  Such  regu-
    46  lations  shall  also  require  a supplement fact panel that incorporates
    47  data regarding serving sizes and potency thereof.
    48    4. The packaging, sale, or possession by  any  licensee  of  any  hemp
    49  product  intended  for human or animal consumption or use not labeled or
    50  offered in conformity with rules and regulations promulgated in  accord-
    51  ance  with  this  section shall be grounds for the imposition of a fine,
    52  and/or the suspension, revocation or cancellation of a license.
    53    § 107. Provisions governing the growing, manufacturing and  extracting
    54  of  hemp  extract.  1.  No  licensed cannabinoid grower, manufacturer or
    55  extractor shall sell, or agree to sell or deliver in the state any  hemp
    56  extract  products,  as  the  case  may  be,  except in sealed containers

        A. 1617--B                         51

     1  containing quantities in accordance  with  size  standards  pursuant  to
     2  rules  adopted by the office. Such containers shall have affixed thereto
     3  such labels as may be required by the rules of the office.
     4    2.  Licensed cannabinoid growers shall be prohibited from using pesti-
     5  cides.
     6    3. All hemp extract products shall be extracted  and  manufactured  in
     7  accordance  with  good  manufacturing processes, pursuant to Part 111 or
     8  117 of Title 21 of the Code of Federal Regulations as  may  be  modified
     9  and decided upon by the executive director in regulation.
    10    4.  Within  thirty  days  of  the  effective date of this article, the
    11  office shall approve the manufacture, distribution, and sale of beverag-
    12  es containing no more than twenty milligrams of cannabidiol  per  twelve
    13  ounce  beverage. The hemp extract used in such beverages shall be grown,
    14  extracted and manufactured in the state of New York.  The  office  shall
    15  issue guidance on the label, warning, point of sale, and advertising for
    16  such beverages.
    17    5.  Terpenes  derived  from the hemp plant are generally recognized as
    18  safe.
    19    6.  Those persons growing, processing or manufacturing  food  or  food
    20  ingredients  from  hemp  extracts,  which  food  or food ingredients are
    21  generally recognized as safe, shall  be  subject  to  regulation  and/or
    22  licensing under this article.
    23    7.  Notwithstanding  any  other  provision  of  law  to  the contrary,
    24  prepackaged beverages that contain hemp or any part of the  hemp  plant,
    25  including the seeds and all naturally occurring cannabinoids, compounds,
    26  concentrates,  extracts,  isolates,  terpenes,  resins,  isomers, acids,
    27  salts, salts of isomers or cannabiodiol derivatives, are not  considered
    28  to  be  adulterated or misbranded under this article based solely on the
    29  inclusion of hemp or any part of the hemp plant as long as the amount of
    30  cannabidiol is limited to twenty  milligrams  per  serving.  The  office
    31  shall  allow  cannabidiol  in  food products and have the power to alter
    32  amounts in beverages on the basis of scientific evidence connected  with
    33  health effects.
    34    8.  The nonpharmaceutical or nonmedical production, marketing, sale or
    35  distribution of beverages, food or food products within the  state  that
    36  contain  hemp  or  any  part  of the hemp plant may not be restricted or
    37  prohibited within the state based solely on the inclusion of hemp or any
    38  part of the hemp plant.
    39    9. A beverage and/or food producer may not  make  any  claims  that  a
    40  beverage,  food  or  food  product that contains hemp can treat, cure or
    41  prevent any disease without approval pursuant to federal law.
    42    § 108. Laboratory  testing.  1.  Every  cannabinoid  manufacturer  and
    43  cannabinoid  extractor  shall contract with an independent laboratory to
    44  test the hemp extract products produced by the licensed manufacturer  or
    45  extractor. The executive director, in consultation with the commissioner
    46  of  health, shall approve the laboratory and require that the laboratory
    47  report testing results in a manner determined by the executive director.
    48  The executive director is authorized to issue regulations requiring  the
    49  laboratory to perform certain tests and services.
    50    2.  Cannabinoid  manufacturers  and  cannabinoid extractors shall make
    51  laboratory test reports  available  to  persons  holding  a  cannabinoid
    52  permit  pursuant  to  section one hundred twelve of this article for all
    53  cannabis products manufactured by the licensee.
    54    3. On-site laboratory testing by licensees  is  permissible;  however,
    55  such  testing  shall  not be certified by the office and does not exempt

        A. 1617--B                         52

     1  the licensee from the requirements of quality  assurance  testing  at  a
     2  testing laboratory pursuant to this section.
     3    §  109. Advertising. The office shall promulgate rules and regulations
     4  governing the advertising of hemp extract and any other related products
     5  or services as determined by the executive director.
     6    § 110. Research. 1. The office shall promote research and  development
     7  through public-private partnerships to bring new hemp extract and indus-
     8  trial hemp derived products to market within the state.
     9    2.  The executive director may develop and carry out research programs
    10  which may include programs at the New York state college of  agriculture
    11  and life sciences, pursuant to section fifty-seven hundred twelve of the
    12  education  law  and/or  New  York state university research institutions
    13  relating to industrial hemp and hemp extract.
    14    § 111. Regulations. The executive director shall in consultation  with
    15  the  cannabis  advisory  board  and  the hemp workgroup promulgate regu-
    16  lations pursuant to the state administrative procedure act to  implement
    17  this article.
    18    §  112.  Cannabinoid  permit. The office is hereby authorized to issue
    19  cannabinoid permits to retailers, wholesalers, and distributors  author-
    20  izing  them  to  sell  cannabis  products derived from hemp extract. The
    21  executive director shall have the authority to set fees for such permit,
    22  to establish the period during which such permit is authorized,  and  to
    23  make  rules  and regulations, including emergency regulations, to imple-
    24  ment this section.
    25    § 113. New York hemp product. The executive director may establish and
    26  adopt official grades and standards for hemp extract  and  hemp  extract
    27  products as he or she may deem advisable, which are produced for sale in
    28  this  state  and, from time to time, may amend or modify such grades and
    29  standards.
    30    § 114. Penalties and violations of this article.  Notwithstanding  the
    31  provision  of  any  law  to the contrary, the failure to comply with the
    32  requirements of this article,  the  rules  and  regulations  promulgated
    33  thereunder,  may  be  punishable by a fine of not more than one thousand
    34  dollars for a first violation; not more than five thousand dollars for a
    35  second violation; and not more than ten thousand  dollars  for  a  third
    36  violation and each subsequent violation thereafter.
    37    § 115. Hemp workgroup. The executive director shall appoint a New York
    38  state  industrial hemp and hemp extract workgroup, composed of research-
    39  ers, producers, processors, manufacturers  and  trade  associations,  to
    40  make  recommendations for the industrial hemp and hemp extract programs,
    41  state and federal policies and policy initiatives, and opportunities for
    42  the promotion and marketing of  industrial  hemp  and  hemp  extract  as
    43  consistent  with  federal  and  state laws, rules and regulations, which
    44  workgroup shall continue for such time as the executive  director  deems
    45  appropriate.
    46    §  116.  Prohibitions. Except as authorized in this article, the manu-
    47  facturing of hemp extract  for  human  or  animal  consumption  and  the
    48  distribution  and/or sale thereof is prohibited in this state unless the
    49  manufacturer is licensed under this article. Hemp extract  and  products
    50  derived  therefrom for human and animal consumption produced outside the
    51  state shall not be distributed or sold in this state  unless  they  meet
    52  all standards and requirements established for such product manufactured
    53  in  the state under this article and its rules and regulations as deter-
    54  mined by the office.

        A. 1617--B                         53

     1                                  ARTICLE 6
     2                             GENERAL PROVISIONS

     3  Section 125. General prohibitions and restrictions.
     4          126. License  to  be confined to premises licensed; premises for
     5                 which no license shall be granted; transporting cannabis.
     6          127. Protections for the use  of  cannabis;  unlawful  discrimi-
     7                 nations prohibited.
     8          128. Registrations and licenses.
     9          129. Laboratory testing permits.
    10          130. Special use permits.
    11          131. Professional and medical record keeping.
    12          132. Local opt-out; municipal control and preemption.
    13          133. Personal cultivation.
    14          134. Executive   director  to  be  necessary  party  to  certain
    15                 proceedings.
    16          135. Penalties for violation of this chapter.
    17          136. Revocation  of  registrations,  licenses  and  permits  for
    18                 cause; procedure for revocation or cancellation.
    19          137. Lawful actions pursuant to this chapter.
    20          138. Review by courts.
    21          139. Illicit cannabis.
    22          140. Persons  forbidden  to  traffic cannabis; certain officials
    23                 not to be interested in manufacture or sale  of  cannabis
    24                 products.
    25          141. Access to criminal history information through the division
    26                 of criminal justice services.
    27          142. Severability.
    28    §  125.  General  prohibitions  and restrictions.   1. No person shall
    29  cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
    30  retail  any cannabis, cannabis product, medical cannabis or hemp extract
    31  product within the state without obtaining the appropriate registration,
    32  license, or permit therefor required by this chapter.
    33    2. No registered organization, licensee, or permittee shall  sell,  or
    34  agree  to sell or deliver in this state any cannabis or hemp extract for
    35  the purposes of resale  to  any  person  who  is  not  duly  registered,
    36  licensed  or permitted pursuant to this chapter to sell such product, at
    37  wholesale or retail, as the case may be, at the time of  such  agreement
    38  and sale.
    39    3. No registered organization, licensee, or permittee shall employ, or
    40  permit  to  be  employed, or shall allow to work, on any premises regis-
    41  tered or licensed for retail sale hereunder, any person under the age of
    42  twenty-one years in any capacity where the duties of such person require
    43  or permit such person to sell, dispense or handle cannabis.
    44    4. No registered organization,  licensee,  or  permittee  shall  sell,
    45  deliver  or give away, or cause, permit or procure to be sold, delivered
    46  or given away any cannabis, cannabis product,  or  medical  cannabis  on
    47  credit; except that a registered organization, licensee or permittee may
    48  accept  third  party credit cards for the sale of any cannabis, cannabis
    49  product, or medical cannabis for which it  is  registered,  licensed  or
    50  permitted  to  dispense  or sell to patients or cannabis consumers. This
    51  includes, but is not limited to, any consignment sale of any kind.
    52    5. No registered organization, licensee, or permittee shall  cease  to
    53  be  operated  as  a  bona fide or legitimate premises within the contem-
    54  plation of the registration, license, or permit issued  for  such  prem-
    55  ises, as determined within the judgment of the office.

        A. 1617--B                         54

     1    6.  No  registered  organization, licensee, or permittee shall refuse,
     2  nor any person holding a registration, license, or  permit  refuse,  nor
     3  any  officer  or  director  of any corporation or organization holding a
     4  registration, license, or permit refuse, to appear and/or testify  under
     5  oath  at  an  inquiry or hearing held by the office, with respect to any
     6  matter bearing upon the registration, license, or permit, the conduct of
     7  any people at the licensed premises, or bearing upon  the  character  or
     8  fitness  of  such registrant, licensee, or permittee to continue to hold
     9  any registration, license, or permit. Nor shall any of the  above  offer
    10  false testimony under oath at such inquiry or hearing.
    11    7.  No  registered  organization, licensee, or permittee shall engage,
    12  participate in, or aid or abet any violation or provision of this  chap-
    13  ter, or the rules or regulations of the office.
    14    8.  The  proper conduct of registered, licensed, or permitted premises
    15  is essential to the public interest. Failure of a  registered  organiza-
    16  tion,  licensee,  or permittee to exercise adequate supervision over the
    17  registered, licensed, or permitted location poses a substantial risk not
    18  only to the objectives of this chapter but imperils the health,  safety,
    19  and  welfare  of the people of this state. It shall be the obligation of
    20  each person registered, licensed, or permitted  under  this  chapter  to
    21  ensure  that  a high degree of supervision is exercised over any and all
    22  conduct at any registered, licensed, or permitted location  at  any  and
    23  all times in order to safeguard against abuses of the privilege of being
    24  registered,  licensed, or permitted, as well as other violations of law,
    25  statute, rule, or regulation. Persons registered, licensed, or permitted
    26  shall be held strictly accountable for any and all violations that occur
    27  upon any registered, licensed, or permitted premises, and  for  any  and
    28  all  violations  committed  by  or  permitted  by  any manager, agent or
    29  employee of such registered, licensed, or permitted person.
    30    9. It shall be unlawful for any  person,  partnership  or  corporation
    31  operating  a place for profit or pecuniary gain, with a capacity for the
    32  assemblage of twenty or more persons to permit a person  or  persons  to
    33  come  to  the place of assembly for the purpose of cultivating, process-
    34  ing, distributing, or retail distribution or sale of  cannabis  on  said
    35  premises. This includes, but is not limited, to, cannabis that is either
    36  provided  by the operator of the place of assembly, his agents, servants
    37  or employees, or cannabis that is brought  onto  said  premises  by  the
    38  person or persons assembling at such place, unless an appropriate regis-
    39  tration,  license,  or permit has first been obtained from the office of
    40  cannabis management by the operator of said place of assembly.
    41    10. As it is a privilege under the law to be registered, licensed,  or
    42  permitted  to  cultivate,  process,  distribute,  or  sell cannabis, the
    43  office may impose any such further  restrictions  upon  any  registrant,
    44  licensee,  or permittee in particular instances as it deems necessary to
    45  further state policy and best serve the public interest. A violation  or
    46  failure  of any person registered, licensed, or permitted to comply with
    47  any condition, stipulation, or agreement, upon which  any  registration,
    48  license, or permit was issued or renewed by the office shall subject the
    49  registrant,  licensee, or permittee to suspension, cancellation, revoca-
    50  tion, and/or civil penalties as determined by the office.
    51    11. No adult-use cannabis or medical cannabis may be imported  to,  or
    52  exported  out  of, New York state by a registered organization, licensee
    53  or person holding a license and/or  permit  pursuant  to  this  chapter,
    54  until  such  time  as  it  may  become legal to do so under federal law.
    55  Should it become legal to do so under federal law, the office is granted

        A. 1617--B                         55

     1  the power to promulgate such rules and regulations as it deems necessary
     2  to protect the public and the policy of the state.
     3    12.  No  registered organization, licensee or any of its agents, serv-
     4  ants or employees shall sell any cannabis product, or  medical  cannabis
     5  from  house to house by means of a truck or otherwise, where the sale is
     6  consummated and delivery made concurrently at the residence or place  of
     7  business of a cannabis consumer. This subdivision shall not prohibit the
     8  delivery  by  a  registered  organization to certified patients or their
     9  designated caregivers, pursuant to article three of this chapter.
    10    13. No licensee shall  employ  any  canvasser  or  solicitor  for  the
    11  purpose of receiving an order from a certified patient, designated care-
    12  giver or cannabis consumer for any cannabis product, or medical cannabis
    13  at  the  residence  or  place  of business of such patient, caregiver or
    14  consumer, nor shall any licensee receive or accept any  order,  for  the
    15  sale  of any cannabis product, or medical cannabis which shall be solic-
    16  ited at the residence or place of business of a  patient,  caregiver  or
    17  consumer.  This  subdivision  shall  not  prohibit the solicitation by a
    18  distributor of an order from any licensee at the  licensed  premises  of
    19  such licensee.
    20    § 126. License to be confined to premises licensed; premises for which
    21  no  license shall be granted; transporting cannabis.  1. A registration,
    22  license, or permit issued to any person, pursuant to this  chapter,  for
    23  any  registered, licensed, or permitted premises shall not be transfera-
    24  ble to any other person, to any other location or premises,  or  to  any
    25  other  building or part of the building containing the licensed premises
    26  except in the discretion of the office. All privileges  granted  by  any
    27  registration,  license,  or permit shall be available only to the person
    28  therein specified, and only for  the  premises  licensed  and  no  other
    29  except  if  authorized  by  the  office.    Provided,  however, that the
    30  provisions of this section shall not be deemed to prohibit the amendment
    31  of a registration  or  license  as  provided  for  in  this  chapter.  A
    32  violation  of  this  section shall subject the registration, license, or
    33  permit to revocation for cause.
    34    2. Where a registration or license for premises has been revoked,  the
    35  office in its discretion may refuse to issue a registration, license, or
    36  permit  under  this chapter, for a period of up to five years after such
    37  revocation, for such premises or for any part of the building containing
    38  such premises and connected therewith.
    39    3. In determining whether to issue such a proscription against  grant-
    40  ing  any  registration, license, or permit for such five-year period, in
    41  addition to any other factors deemed relevant to the office, the  office
    42  shall,  in  the  case  of  a  license revoked due to the illegal sale of
    43  cannabis to a minor, determine whether the proposed subsequent  licensee
    44  has  obtained such premises through an arm's length transaction, and, if
    45  such transaction is not found to be an  arm's  length  transaction,  the
    46  office shall deny the issuance of such license.
    47    4. For purposes of this section, "arm's length transaction" shall mean
    48  a  sale  of  a  fee  of all undivided interests in real property, lease,
    49  management agreement, or other agreement giving  the  applicant  control
    50  over  the  cannabis  at  the  premises, or any part thereof, in the open
    51  market, between an informed and willing buyer and seller  where  neither
    52  is under any compulsion to participate in the transaction, unaffected by
    53  any unusual conditions indicating a reasonable possibility that the sale
    54  was  made  for  the purpose of permitting the original licensee to avoid
    55  the effect of the revocation. The following sales shall be presumed  not
    56  to  be  arm's  length  transactions  unless  adequate  documentation  is

        A. 1617--B                         56

     1  provided demonstrating that the sale, lease,  management  agreement,  or
     2  other  agreement  giving  the applicant control over the cannabis at the
     3  premises, was not conducted, in whole or in part,  for  the  purpose  of
     4  permitting the original licensee to avoid the effect of the revocation:
     5    (a) a sale between relatives;
     6    (b) a sale between related companies or partners in a business; or
     7    (c) a sale, lease, management agreement, or other agreement giving the
     8  applicant  control  over the cannabis at the premises, affected by other
     9  facts or circumstances that would indicate that the sale, lease, manage-
    10  ment agreement, or other agreement giving the applicant control over the
    11  cannabis at the premises, is entered into for  the  primary  purpose  of
    12  permitting the original licensee to avoid the effect of the revocation.
    13    5.  No  registered organization, licensee or permittee shall transport
    14  cannabis products or medical cannabis except in vehicles owned and oper-
    15  ated by such registered organization, licensee or  permittee,  or  hired
    16  and operated by such registered organization, licensee or permittee from
    17  a  trucking  or transportation company permitted and registered with the
    18  office.
    19    6. No common carrier or person operating a transportation facility  in
    20  this  state,  other than the United States government, shall receive for
    21  transportation or delivery within the state  any  cannabis  products  or
    22  medical cannabis unless the shipment is accompanied by copy of a bill of
    23  lading,  or  other document, showing the name and address of the consig-
    24  nor, the name and address of the consignee, the date  of  the  shipment,
    25  and  the  quantity  and  kind  of  cannabis products or medical cannabis
    26  contained therein.
    27    § 127. Protections for the use of cannabis;  unlawful  discriminations
    28  prohibited.   1. No person, registered organization, licensee or permit-
    29  tee, employees, or their agents shall be subject to arrest, prosecution,
    30  or penalty in any manner, or denied any right  or  privilege,  including
    31  but  not limited to civil liability or disciplinary action by a business
    32  or occupational or professional licensing board or  office,  solely  for
    33  conduct  permitted  under  this chapter. For the avoidance of doubt, the
    34  appellate division of the supreme court of the state of  New  York,  and
    35  any disciplinary or character and fitness committees established by them
    36  are occupational and professional licensing boards within the meaning of
    37  this  section. State or local law enforcement agencies shall not cooper-
    38  ate with or provide assistance to the government of the United States or
    39  any agency thereof in enforcing the federal  controlled  substances  act
    40  solely for actions consistent with this chapter, except as pursuant to a
    41  valid court order.
    42    2.  No school or landlord may refuse to enroll or lease to and may not
    43  otherwise penalize a person solely for conduct allowed under this  chap-
    44  ter, except as exempted:
    45    (a)  if  failing to do so would cause the school or landlord to lose a
    46  monetary or licensing related benefit under federal law or regulations;
    47    (b) if the institution has  adopted  a  code  of  conduct  prohibiting
    48  cannabis use on the basis of religious belief; or
    49    (c)  if  a property is registered with the New York smoke-free housing
    50  registry, it is not required to permit the smoking of cannabis  products
    51  on its premises.
    52    3.  For  the  purposes of medical care, including organ transplants, a
    53  certified patient's authorized use of medical cannabis must  be  consid-
    54  ered  the equivalent of the use of any other medication under the direc-
    55  tion of a practitioner and does not constitute the  use  of  an  illicit

        A. 1617--B                         57

     1  substance  or  otherwise disqualify a registered qualifying patient from
     2  medical care.
     3    4.  It  is  the  public  policy  of  the state of New York to prohibit
     4  employers from discriminating against  employees  for  legal  activities
     5  occurring outside of the workplace. Nothing in this section shall inter-
     6  fere  with  an  employer's obligation to provide a safe and healthy work
     7  place, free from recognized hazards, as required by  state  and  federal
     8  occupation  safety  and  health law or require an employer to commit any
     9  act that would cause the employer to be in violation of any other feder-
    10  al law, or that would result in the loss of a federal contract or feder-
    11  al funding.
    12    5. For the purposes of this  section,  an  employer  may  consider  an
    13  employee's  ability to perform the employee's job responsibilities to be
    14  impaired when the employee manifests specific articulable symptoms while
    15  working that decrease or lessen the employee's performance of the duties
    16  or tasks of the employee's job position.
    17    6. Nothing in this section shall restrict  an  employer's  ability  to
    18  prohibit  or take adverse employment action for the possession or use of
    19  intoxicating substances during work hours, or  require  an  employer  to
    20  commit  any  act  that  would  cause  the employer to be in violation of
    21  federal law, or that would result in the loss of a federal  contract  or
    22  federal funding.
    23    7. As used in this section, "adverse employment action" means refusing
    24  to  hire  or employ, barring or discharging from employment, requiring a
    25  person to retire from employment, or discriminating against  in  compen-
    26  sation or in terms, conditions, or privileges of employment.
    27    8.  A  person  currently under parole, probation or other state super-
    28  vision, or released on bail awaiting trial may not be punished or other-
    29  wise penalized for conduct allowed under this chapter.
    30    9. No person may be denied custody of or visitation or parenting  time
    31  with  a minor, and there is no presumption of neglect or child endanger-
    32  ment for conduct allowed under section 222.05 of the penal  law,  unless
    33  the  person's  behavior  creates an unreasonable danger to the safety of
    34  the minor as established by  clear  and  convincing  evidence.  For  the
    35  purposes  of this section, an "unreasonable danger" determination cannot
    36  be based solely on whether, when, and how often a person  uses  cannabis
    37  without separate evidence of harm.
    38    §  128.  Registrations  and  licenses.   1. No registration or license
    39  shall be transferable or  assignable  except  that  notwithstanding  any
    40  other provision of law, the registration or license of a sole proprietor
    41  converting  to  corporate  form,  where such proprietor becomes the sole
    42  stockholder and only officer and director of such new  corporation,  may
    43  be  transferred  to  the subject corporation if all requirements of this
    44  chapter remain the same with respect to such registration or license  as
    45  transferred  and, further, the registered organization or licensee shall
    46  transmit to the office, within ten  days  of  the  transfer  of  license
    47  allowable  under  this  subdivision, on a form prescribed by the office,
    48  notification of the transfer of such license.
    49    2. No registration or license shall be pledged or deposited as collat-
    50  eral security for any loan or upon any other  condition;  and  any  such
    51  pledge or deposit, and any contract providing therefor, shall be void.
    52    3.  Licenses  issued  under this chapter shall contain, in addition to
    53  any further information or material to be prescribed by the rules of the
    54  office, the following information:
    55    (a) name of the person to whom the license is issued;

        A. 1617--B                         58

     1    (b) type of license and what type  of  cannabis  commerce  is  thereby
     2  permitted;
     3    (c)  description by street and number, or otherwise, of licensed prem-
     4  ises; and
     5    (d) a statement in substance that such license shall not be  deemed  a
     6  property  or vested right, and that it may be revoked at any time pursu-
     7  ant to law.
     8    § 129. Laboratory testing permits. 1.  The  executive  director  shall
     9  approve and permit one or more independent cannabis testing laboratories
    10  to test medical cannabis, adult-use cannabis and/or hemp extract.
    11    2. To be permitted as an independent cannabis laboratory, a laboratory
    12  must  apply  to  the office, on a form and in a manner prescribed by the
    13  office, and must demonstrate the following to the  satisfaction  of  the
    14  executive director:
    15    (a) the owners and directors of the laboratory are of good moral char-
    16  acter;
    17    (b)  the laboratory and its staff has the skills, resources and exper-
    18  tise needed to accurately and consistently perform all  of  the  testing
    19  required for adult-use cannabis, medical cannabis and/or hemp extract;
    20    (c)  the  laboratory has in place and will maintain adequate policies,
    21  procedures, and facility security to ensure proper:  collection,  label-
    22  ing, accessioning, preparation, analysis, result reporting, disposal and
    23  storage of adult-use cannabis, and/or medical cannabis;
    24    (d) the laboratory is physically located in New York state;
    25    (e)  the  laboratory  has  been  approved  by the department of health
    26  pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
    27  lations, pertaining to laboratories performing  environmental  analysis;
    28  and
    29    (f)  the  laboratory meets any and all requirements prescribed by this
    30  chapter and by the executive director in regulation.
    31    3. The owner of a laboratory testing permit under this  section  shall
    32  not  hold  a registration or license in any category of this chapter and
    33  shall not have any direct or indirect ownership interest in such  regis-
    34  tered  organization  or  licensee.  No  board  member, officer, manager,
    35  owner, partner, principal stakeholder or member of a  registered  organ-
    36  ization or licensee under this chapter, or such person's immediate fami-
    37  ly  member,  shall  have  an interest or voting rights in any laboratory
    38  testing permittee.
    39    4. The executive director shall require that the permitted  laboratory
    40  report  testing results to the office in a manner, form and timeframe as
    41  determined by the executive director.
    42    5. The executive director is  authorized  to  promulgate  regulations,
    43  requiring permitted laboratories to perform certain tests and services.
    44    6. A laboratory granted a laboratory testing permit under this chapter
    45  shall  not required to be licensed by the federal drug enforcement agen-
    46  cy.
    47    § 130. Special use permits.  The office is hereby authorized to  issue
    48  the  following  kinds  of  permits for carrying on activities consistent
    49  with the policy and purpose of this chapter with  respect  to  cannabis.
    50  The  executive  director  has  the authority to set fees for all permits
    51  issued pursuant to this section, to establish the periods  during  which
    52  permits  are  authorized,  and  to make rules and regulations, including
    53  emergency regulations, to implement this section.
    54    1. Industrial cannabis permit - to purchase cannabis from one  of  the
    55  entities  licensed  by the office for use in the manufacture and sale of
    56  any of the following, when such cannabis is not otherwise  suitable  for

        A. 1617--B                         59

     1  consumption  purposes,  namely:   (a) apparel, energy, paper, and tools;
     2  (b) scientific, chemical, mechanical and industrial products; or (c) any
     3  other industrial use as determined by the executive  director  in  regu-
     4  lation.
     5    2.  Trucking  permit  - to allow for the trucking or transportation of
     6  cannabis products, or medical cannabis by a person other than  a  regis-
     7  tered organization or licensee under this chapter.
     8    3.  Warehouse  permit - to allow for the storage of cannabis, cannabis
     9  products, or medical cannabis at a location not otherwise registered  or
    10  licensed by the office.
    11    4.  Cannabinoid permit - to sell cannabinoid products for off-premises
    12  consumption.
    13    5. Temporary retail cannabis permit - to authorize the retail sale  of
    14  adult-use cannabis to cannabis consumers, for a limited purpose or dura-
    15  tion.
    16    6. Caterer's permit - to authorize the service of cannabis products at
    17  a  function, occasion or event in a hotel, restaurant, club, ballroom or
    18  other premises, which shall authorize within  the  hours  fixed  by  the
    19  office,  during  which  cannabis  may  lawfully be sold or served on the
    20  premises in which such function, occasion or event is held.
    21    7. Packaging permit - to authorize a licensed cannabis distributor  to
    22  sort,  package,  label  and  bundle  cannabis  products from one or more
    23  registered organizations or licensed processors, on the premises of  the
    24  licensed  cannabis  distributor or at a warehouse for which a permit has
    25  been issued under this section.
    26    8. Miscellaneous permits - to  purchase,  receive  or  sell  cannabis,
    27  cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
    28  contracts or other documents pertaining to cannabis, cannabis  products,
    29  or  medical  cannabis, in cases not expressly provided for by this chap-
    30  ter, when in the judgment of the office  it  would  be  appropriate  and
    31  consistent with the policy and purpose of this chapter.
    32    §  131.  Professional  and  medical record keeping.   Any professional
    33  providing services in connection with a licensed or potentially licensed
    34  business under this chapter, or in connection with other conduct permit-
    35  ted under this chapter, and any medical professional  providing  medical
    36  care  to a patient, other than a certified patient, may agree with their
    37  client or patient to maintain no record, or any reduced level of  record
    38  keeping  that  professional  and client or patient may agree. In case of
    39  such agreement, the professional's only obligation shall be to keep such
    40  records as agreed, and to keep a record of the agreement.  Such  reduced
    41  record keeping is conduct permitted under this chapter.
    42    §  132.  Local  opt-out;  municipal  control  and preemption.   1. The
    43  provisions of article four of this chapter, authorizing the cultivation,
    44  processing, distribution and sale  of  adult-use  cannabis  to  cannabis
    45  consumers,  shall  not  be  applicable to a town, city or village which,
    46  after a mandatory referendum held pursuant to  section  twenty-three  of
    47  the  municipal  home rule law, adopts a local law to prohibit the estab-
    48  lishment or operation of one or more  types  of  licenses  contained  in
    49  article  four of this chapter, within the jurisdiction of the town, city
    50  or village. Provided, however, that any town law shall apply to the area
    51  of the town outside of any village within such town.
    52    2. Except as provided for in subdivision  one  of  this  section,  all
    53  county,  town,  city  and  village governing bodies are hereby preempted
    54  from adopting any rule, ordinance, regulation or prohibition  pertaining
    55  to  the  operation  or  licensure of registered organizations, adult-use
    56  cannabis licenses or hemp licenses.  However,  municipalities  may  pass

        A. 1617--B                         60

     1  local  laws  and  ordinances  governing  the  time,  place and manner of
     2  licensed adult-use cannabis retail dispensaries, provided such ordinance
     3  or regulation does not  make  the  operation  of  such  licensed  retail
     4  dispensaries  unreasonably  impracticable as determined by the executive
     5  director in consultation with the cannabis advisory board.
     6    § 133. Personal cultivation. 1. Notwithstanding any provision  of  law
     7  to  the  contrary,  a person over the age of twenty-one shall be able to
     8  plant, cultivate, harvest, dry or  process  cannabis  for  personal  use
     9  subject to the following restrictions:
    10    (a)  all  cultivation  and processing shall be done in accordance with
    11  local ordinances; and
    12    (b) the living plants and any  cannabis  produced  by  the  plants  in
    13  excess  of  three  ounces must be kept within the person's private resi-
    14  dence, or upon the grounds  of  that  private  residence  (e.g.,  in  an
    15  outdoor  garden  area),  in  a  locked  space, and not visible by normal
    16  unaided vision from a public place; and
    17    (c) not more than  six  living  plants  may  be  planted,  cultivated,
    18  harvested, dried or processed within a single private residence, or upon
    19  the grounds of that private residence, at one time.
    20    2.  A  town,  city  or  village  may  enact and enforce regulations to
    21  reasonably regulate the actions and conduct under this section.    Regu-
    22  lations  may  not  completely  prohibit persons engaging in conduct made
    23  lawful under subdivision one of this section.
    24    3. A violation of subdivision one of this section  is  a  misdemeanor,
    25  punishable  under section 222.10 of the penal law and subject to a local
    26  fine of not more than one hundred dollars.
    27    §  134.  Executive  director  to  be  necessary   party   to   certain
    28  proceedings.    The  executive  director  shall  be  made a party to all
    29  actions and proceedings affecting in any manner the ability of a  regis-
    30  tered  organization or licensee to operate within a municipality, or the
    31  result of any vote thereupon; to all actions and proceedings relative to
    32  issuance or revocation of registrations, licenses  or  permits;  to  all
    33  injunction  proceedings,  and  to all other civil actions or proceedings
    34  which in any manner affect the enjoyment of the privileges or the opera-
    35  tion of the restrictions provided for in this chapter.
    36    § 135. Penalties for violation of this chapter.   1.  Any  person  who
    37  cultivates  for  sale  or  sells cannabis, cannabis products, or medical
    38  cannabis without having an appropriate registration, license  or  permit
    39  therefor,  or  whose  registration, license, or permit has been revoked,
    40  surrendered or cancelled, shall be subject to conviction as provided  by
    41  article two hundred twenty-two of the penal law.
    42    2.  Any  registered  organization  or  licensee, whose registration or
    43  license has been suspended pursuant to the provisions of  this  chapter,
    44  who  sells cannabis, cannabis products, medical cannabis or hemp extract
    45  during the suspension period, shall be subject to conviction as provided
    46  by article two hundred twenty-two of the penal law, and upon  conviction
    47  thereof  shall  be  punished  by  a  fine of not more than five thousand
    48  dollars per instance.
    49    3. Any person who shall make any false statement  in  the  application
    50  for  a  registration,  license  or  a permit under this chapter shall be
    51  subject to a fine of not more than five thousand dollars.
    52    4. Any violation by any person of any provision of  this  chapter  for
    53  which  no  punishment or penalty is otherwise provided shall be a misde-
    54  meanor.
    55    5. Any person under the age of twenty-one found to be in possession of
    56  cannabis or cannabis products that is not a patient registered  pursuant

        A. 1617--B                         61

     1  to  article  three of this chapter shall be in violation of this chapter
     2  and shall be subject to the following penalty:
     3    (a)  (i)  The person shall be subject to a fine of not more than twen-
     4  ty-five dollars. The fine shall be payable to  the  office  of  cannabis
     5  management.
     6    (ii)  Any  identifying  information provided by the enforcement agency
     7  for the purpose of facilitating payment of the fine shall not be  shared
     8  or  disclosed  under  any  circumstances  with  any  other agency or law
     9  enforcement division.
    10    (b) The person shall, upon payment of the required fine,  be  provided
    11  with  information related to the dangers of underage use of cannabis and
    12  information related to cannabis use disorder by the office  of  cannabis
    13  management.
    14    (c)  The  issuance and subsequent payment of such fine shall in no way
    15  qualify as a criminal accusation, admission  of  guilt,  or  a  criminal
    16  conviction and shall in no way operate as a disqualification of any such
    17  person  from holding public office, attaining public employment, or as a
    18  forfeiture of any right or privilege.
    19    6. Cannabis  recovered  from  individuals  who  are  found  to  be  in
    20  violation  of  this  chapter shall be considered a nuisance and shall be
    21  disposed of or destroyed.
    22    § 136. Revocation of registrations, licenses and  permits  for  cause;
    23  procedure  for revocation or cancellation.  1. Any registration, license
    24  or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
    25  suspended  and/or  subjected  to  the  imposition of a civil penalty for
    26  cause, and must be revoked for the following causes:
    27    (a) conviction of the registered organization, licensee, permittee  or
    28  his  or  her  agent  or employee for selling any illegal cannabis on the
    29  premises registered, licensed or permitted; or
    30    (b) for  transferring,  assigning  or  hypothecating  a  registration,
    31  license or permit without prior written approval of the office.
    32    2.  Notwithstanding  the issuance of a registration, license or permit
    33  by way of renewal, the office may revoke, cancel or suspend such  regis-
    34  tration, license or permit and/or may impose a civil penalty against any
    35  holder  of  such  registration, license or permit, as prescribed by this
    36  section, for causes or violations occurring during  the  license  period
    37  immediately  preceding  the  issuance  of  such registration, license or
    38  permit.
    39    3. (a) As used in this  section,  the  term  "for  cause"  shall  also
    40  include  the  existence of a sustained and continuing pattern of miscon-
    41  duct, failure to adequately prevent diversion or disorder  on  or  about
    42  the  registered, licensed or permitted premises, or in the area in front
    43  of or adjacent to the registered or licensed premises, or in any parking
    44  lot provided by the registered  organization  or  licensee  for  use  by
    45  registered organization or licensee's patrons, which, in the judgment of
    46  the office, adversely affects or tends to affect the protection, health,
    47  welfare,  safety,  or repose of the inhabitants of the area in which the
    48  registered or licensed premises is located, or results in  the  licensed
    49  premises becoming a focal point for police attention, or is offensive to
    50  public decency.
    51    (b)  (i)  As  used  in  this  section, the term "for cause" shall also
    52  include deliberately misleading the authority:
    53    (A) as to the nature and character of the business to be  operated  by
    54  the registered organization, licensee or permittee; or

        A. 1617--B                         62

     1    (B) by substantially altering the nature or character of such business
     2  during  the registration or licensing period without seeking appropriate
     3  approvals from the office.
     4    (ii) As used in this subdivision, the term "substantially altering the
     5  nature  or character" of such business shall mean any significant alter-
     6  ation in the scope of business  activities  conducted  by  a  registered
     7  organization,  licensee  or  permittee  that  would require obtaining an
     8  alternate form of registration, license or permit.
     9    4. As used in this chapter, the existence of a sustained and  continu-
    10  ing  pattern  of  misconduct, failure to adequately prevent diversion or
    11  disorder on or about the premises may be presumed upon the  sixth  inci-
    12  dent  reported  to the office by a law enforcement agency, or discovered
    13  by the office during the course of  any  investigation,  of  misconduct,
    14  diversion  or disorder on or about the premises or related to the opera-
    15  tion of the premises, absent clear and  convincing  evidence  of  either
    16  fraudulent intent on the part of any complainant or a factual error with
    17  respect  to  the  content of any report concerning such complaint relied
    18  upon by the office.
    19    5. Notwithstanding any other provision of this chapter to the  contra-
    20  ry,  a  suspension  imposed  under  this section against the holder of a
    21  registration issued pursuant to article three  of  this  chapter,  shall
    22  only  suspend  the  licensed activities related to the type of cannabis,
    23  medical cannabis or adult-use cannabis involved in the violation result-
    24  ing in the suspension.
    25    6. Any registration, license or permit issued by the  office  pursuant
    26  to  this  chapter  may  be  revoked,  cancelled  or  suspended and/or be
    27  subjected to  the  imposition  of  a  monetary  penalty  in  the  manner
    28  prescribed by this section and by the executive director in regulation.
    29    7.  The  office  may  on  its  own  initiative, or on complaint of any
    30  person, institute proceedings to revoke, cancel or suspend any adult-use
    31  cannabis  retail  dispensary  license  or  adult-use  cannabis   on-site
    32  consumption  license and may impose a civil penalty against the licensee
    33  after a hearing at which the licensee shall be given an  opportunity  to
    34  be heard. Such hearing shall be held in such manner and upon such notice
    35  as may be prescribed in regulation by the executive director.
    36    8.  All  other  registrations,  licenses  or permits issued under this
    37  chapter may be revoked, cancelled, suspended and/or made subject to  the
    38  imposition  of  a civil penalty by the office after a hearing to be held
    39  in such manner and upon such notice as may be prescribed  in  regulation
    40  by the executive director.
    41    9.  Where a licensee or permittee is convicted of two or more qualify-
    42  ing offenses within a five-year period,  the  office,  upon  receipt  of
    43  notification of such second or subsequent conviction, shall, in addition
    44  to  any  other sanction or civil or criminal penalty imposed pursuant to
    45  this chapter, impose on such licensee a civil penalty not to exceed  ten
    46  thousand  dollars.    For  purposes  of  this  subdivision, a qualifying
    47  offense shall mean the unlawful sale of cannabis to a person  under  the
    48  age  of  twenty-one. For purposes of this subdivision, a conviction of a
    49  licensee or an employee or agent of such  licensee  shall  constitute  a
    50  conviction of such licensee.
    51    §  137. Lawful actions pursuant to this chapter.  1. Contracts related
    52  to the operation of registered organizations, licenses and permits under
    53  this chapter shall be lawful and shall not be  deemed  unenforceable  on
    54  the  basis  that  the  actions  permitted  pursuant to the registration,
    55  license or permit are prohibited by federal law.

        A. 1617--B                         63

     1    2. The following actions are not unlawful as provided under this chap-
     2  ter, shall not be an offense under any state or local law, and shall not
     3  result in any civil fine, seizure, or forfeiture of assets,  or  be  the
     4  basis  for  detention  or search against any person acting in accordance
     5  with this chapter:
     6    (a)  Actions  of a registered organization, licensee, or permittee, or
     7  the employees or agents of such  registered  organization,  licensee  or
     8  permittee,  as  permitted  by this chapter and consistent with rules and
     9  regulations of the office, pursuant to a valid registration, license  or
    10  permit issued by the office.
    11    (b)  Actions  of  those  who allow property to be used by a registered
    12  organization, licensee, or permittee, or the employees or agents of such
    13  registered organization, licensee or permittee,  as  permitted  by  this
    14  chapter  and consistent with rules and regulations of the office, pursu-
    15  ant to a valid registration, license or permit issued by the office.
    16    (c) Actions of any person or entity, their employees, or their  agents
    17  providing a service to a registered organization, licensee, permittee or
    18  a  potential registered organization, licensee, or permittee, as permit-
    19  ted by this chapter and consistent with rules  and  regulations  of  the
    20  office, relating to the formation of a business.
    21    (d)  The purchase, possession, or consumption of cannabis, and medical
    22  cannabis, as permitted by law, and consistent with rules and regulations
    23  of the office.
    24    § 138. Review by courts.  1. The following actions by the office,  and
    25  only  the following actions by the office, shall be subject to review by
    26  the supreme court in the manner provided in article seventy-eight of the
    27  civil practice law and rules:
    28    (a) Refusal by the office to  issue  a  registration,  license,  or  a
    29  permit.
    30    (b)  The  revocation,  cancellation  or  suspension of a registration,
    31  license, or permit by the office.
    32    (c) The failure or refusal by the office to render a decision upon any
    33  application or hearing submitted to or held by the office  within  sixty
    34  days after such submission or hearing.
    35    (d)  The  transfer by the office of a registration, license, or permit
    36  to any other entity or premises, or the failure or refusal by the office
    37  to approve such a transfer.
    38    (e) Refusal to approve alteration of premises.
    39    (f) Refusal to approve a corporate change in stockholders,  stockhold-
    40  ings, officers or directors.
    41    2.  No  stay shall be granted pending the determination of such matter
    42  except on notice to the office and only for a period of less than thirty
    43  days. In no instance shall a stay be granted where the office has issued
    44  a summary suspension of a  registration,  license,  or  permit  for  the
    45  protection of the public health, safety, and welfare.
    46    § 139. Illicit cannabis.  1. "Illicit cannabis" means and includes any
    47  cannabis  product,  or  medical cannabis owned, cultivated, distributed,
    48  bought, sold, packaged, rectified, blended, treated,  fortified,  mixed,
    49  processed,  warehoused,  possessed  or  transported, or on which any tax
    50  required to have been paid under any applicable state law has  not  been
    51  paid.
    52    2.  Any  person  who  shall knowingly possess or have under his or her
    53  control any cannabis known by the person to be illicit cannabis is guil-
    54  ty of a misdemeanor.

        A. 1617--B                         64

     1    3. Any person who shall knowingly barter or exchange  with,  or  sell,
     2  give  or  offer  to  sell  or  to give another any cannabis known by the
     3  person to be illicit cannabis is guilty of a misdemeanor.
     4    4.  Any  person  who shall possess or have under his or her control or
     5  transport any cannabis known by the person to be illicit  cannabis  with
     6  intent  to  barter  or  exchange with, or to sell or give to another the
     7  same or any part thereof is guilty of  a  misdemeanor.  Such  intent  is
     8  presumptively  established  by proof that the person knowingly possessed
     9  or had under his or her control one or more ounces of illicit  cannabis.
    10  This presumption may be rebutted.
    11    5.  Any  person who, being the owner, lessee, or occupant of any room,
    12  shed, tenement, booth or building, float or  vessel,  or  part  thereof,
    13  knowingly  permits  the same to be used for the cultivation, processing,
    14  distribution, purchase, sale, warehousing, transportation, or storage of
    15  any illicit cannabis, is guilty of a misdemeanor.
    16    § 140. Persons forbidden to traffic cannabis; certain officials not to
    17  be interested in manufacture  or  sale  of  cannabis  products.  1.  The
    18  following are forbidden to traffic in cannabis:
    19    (a)  An individual who has been convicted of an offense related to the
    20  functions or duties of owning and  operating  a  business  within  three
    21  years of the application date, except that if the office determines that
    22  the  owner or licensee is otherwise suitable to be issued a license, and
    23  granting the license would not  compromise  public  safety,  the  office
    24  shall  conduct a thorough review of the nature of the crime, conviction,
    25  circumstances and evidence of rehabilitation of  the  owner,  and  shall
    26  evaluate the suitability of the owner or licensee to be issued a license
    27  based  on  the  evidence  found through the review. In determining which
    28  offenses are substantially related to the functions or duties of  owning
    29  and  operating  a business, the office shall include, but not be limited
    30  to, the following:
    31    (i) a felony conviction involving fraud, money laundering, forgery and
    32  other unlawful conduct related to owning and operating a business; and
    33    (ii) a felony conviction for hiring, employing, or using  a  minor  in
    34  transporting,  carrying,  selling,  giving  away, preparing for sale, or
    35  peddling, any controlled substance to a minor; or selling,  offering  to
    36  sell,  furnishing,  offering  to  furnish,  administering, or giving any
    37  controlled substance to a minor.
    38    (b) A person under the age of twenty-one years;
    39    (c) A person who is not a citizen of the United  States  or  an  alien
    40  lawfully admitted for permanent residence in the United States;
    41    (d) A partnership or a corporation, unless each member of the partner-
    42  ship,  or  each  of  the  principal officers and directors of the corpo-
    43  ration, is a citizen of the United States or an alien lawfully  admitted
    44  for  permanent  residence in the United States, not less than twenty-one
    45  years of age;  provided  however  that  a  corporation  which  otherwise
    46  conforms to the requirements of this section and chapter may be licensed
    47  if  each  of its principal officers and more than one-half of its direc-
    48  tors are citizens of the United States or aliens lawfully  admitted  for
    49  permanent  residence  in  the United States; and provided further that a
    50  corporation organized under the not-for-profit corporation  law  or  the
    51  education  law  which  otherwise  conforms  to  the requirements of this
    52  section and chapter may be licensed if each of  its  principal  officers
    53  and  directors  are not less than twenty-one years of age; and provided,
    54  further, that a corporation organized under  the  not-for-profit  corpo-
    55  ration law or the education law and located on the premises of a college
    56  as  defined by section two of the education law which otherwise conforms

        A. 1617--B                         65

     1  to the requirements of this section and chapter may be licensed if  each
     2  of  its  principal  officers and each of its directors are not less than
     3  twenty-one years of age;
     4    (e)  A  person  who  shall have had any registration or license issued
     5  under this chapter revoked for cause, until the expiration of two  years
     6  from the date of such revocation;
     7    (f)  A  person not registered or licensed under the provisions of this
     8  chapter, who has been convicted of a violation of  this  chapter,  until
     9  the expiration of two years from the date of such conviction; or
    10    (g)  A  corporation or partnership, if any officer and director or any
    11  partner, while not licensed under the provisions of  this  chapter,  has
    12  been convicted of a violation of this chapter, or has had a registration
    13  or  license issued under this chapter revoked for cause, until the expi-
    14  ration of two years from the date of such conviction or revocation.
    15    2. Except as may otherwise be provided for in regulation, it shall  be
    16  unlawful   for  any  police  commissioner,  police  inspector,  captain,
    17  sergeant, roundsman, patrolman or other police official  or  subordinate
    18  of  any  police  department in the state, to be either directly or indi-
    19  rectly interested in the cultivation, processing, distribution, or  sale
    20  of  cannabis  products  or to offer for sale, or recommend to any regis-
    21  tered organization or licensee any cannabis products. A person  may  not
    22  be  denied  any  registration or license granted under the provisions of
    23  this chapter solely on the grounds of being the spouse of a public serv-
    24  ant described in this section. The solicitation or  recommendation  made
    25  to  any  registered  organization  or licensee, to purchase any cannabis
    26  products by any police official or subordinate as hereinabove described,
    27  shall be presumptive evidence of the interest of such official or subor-
    28  dinate in the cultivation, processing, distribution, or sale of cannabis
    29  products.
    30    3. No elective village officer shall be subject to the limitations set
    31  forth in subdivision two of this section unless  such  elective  village
    32  officer  shall  be assigned duties directly relating to the operation or
    33  management of the police department.
    34    § 141. Access to criminal history information through the division  of
    35  criminal  justice  services.    In connection with the administration of
    36  this chapter, the executive director is authorized to  request,  receive
    37  and review criminal history information through the division of criminal
    38  justice  services  with  respect  to  any person seeking a registration,
    39  license, permit or authorization to cultivate,  process,  distribute  or
    40  sell medical cannabis, adult use cannabis or hemp extract. At the execu-
    41  tive  director's  request, each person, member, principal and/or officer
    42  of the applicant shall submit to the office his or her  fingerprints  in
    43  such  form  and  in  such  manner  as specified by the division, for the
    44  purpose of conducting a criminal history search and returning  a  report
    45  thereon  in  accordance with the procedures and requirements established
    46  by the division pursuant to the provisions of article thirty-five of the
    47  executive law, which shall include the payment of the  prescribed  proc-
    48  essing fees for the cost of the division's full search and retain proce-
    49  dures and a national criminal history record check. The executive direc-
    50  tor,  or  his  or  her  designee, shall submit such fingerprints and the
    51  processing fee to the division. The division shall forward to the execu-
    52  tive director a report with respect to the applicant's previous criminal
    53  history, if any, or a statement that the applicant has no previous crim-
    54  inal history according to its files. Fingerprints submitted to the divi-
    55  sion pursuant to this subdivision may also be submitted to  the  federal
    56  bureau of investigation for a national criminal history record check. If

        A. 1617--B                         66

     1  additional  copies  of  fingerprints  are  required, the applicant shall
     2  furnish them upon request.
     3    §  142.  Severability. If any provision of this chapter or application
     4  thereof to any person or circumstances is held invalid, such  invalidity
     5  shall  not  affect other provisions or applications of this chapter that
     6  can be given effect without the invalid provision or application, and to
     7  this end the provisions of this chapter are declared severable.
     8    § 3. Section 3302 of the public health law, as added by chapter 878 of
     9  the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
    10  subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
    11  25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,
    12  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
    13  and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
    14  subdivision 20, the opening paragraph of subdivision 22 and  subdivision
    15  29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
    16  amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
    17  vision 41 as added by section 6 of part A of chapter 447 of the laws  of
    18  2012,  and  subdivisions  42  and 43 as added by section 13 of part D of
    19  chapter 60 of the laws of 2014, is amended to read as follows:
    20    § 3302. Definitions of terms of general use in  this  article.  Except
    21  where   different   meanings   are  expressly  specified  in  subsequent
    22  provisions of this article, the following terms have the following mean-
    23  ings:
    24    1. "Addict" means a person who habitually uses a controlled  substance
    25  for  a  non-legitimate or unlawful use, and who by reason of such use is
    26  dependent thereon.
    27    2.  "Administer"  means  the  direct  application  of   a   controlled
    28  substance,  whether  by  injection,  inhalation, ingestion, or any other
    29  means, to the body of a patient or research subject.
    30    3. "Agent" means an authorized person who acts on behalf of or at  the
    31  direction of a manufacturer, distributor, or dispenser. No person may be
    32  authorized  to  so  act  if  under  title VIII of the education law such
    33  person would not be permitted to engage in such  conduct.  It  does  not
    34  include  a  common or contract carrier, public warehouseman, or employee
    35  of the carrier or warehouseman when  acting  in  the  usual  and  lawful
    36  course of the carrier's or warehouseman's business.
    37    4. ["Concentrated Cannabis" means
    38    (a)  the  separated  resin, whether crude or purified, obtained from a
    39  plant of the genus Cannabis; or
    40    (b) a material, preparation,  mixture,  compound  or  other  substance
    41  which  contains  more than two and one-half percent by weight of delta-9
    42  tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
    43  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    44  terpene numbering system.
    45    5.]  "Controlled  substance" means a substance or substances listed in
    46  section thirty-three hundred six of this [chapter] title.
    47    [6.] 5. "Commissioner" means commissioner of health of  the  state  of
    48  New York.
    49    [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
    50  attempted transfer from one person to another of a controlled substance,
    51  whether or not there is an agency relationship.
    52    [8.] 7. "Department" means the department of health of  the  state  of
    53  New York.
    54    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    55  mate user or research subject by lawful means, including by means of the

        A. 1617--B                         67

     1  internet, and includes the packaging, labeling, or compounding necessary
     2  to prepare the substance for such delivery.
     3    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
     4  ing by means of the internet, other than by administering or dispensing.
     5    [11.]  10.  "Distributor"  means a person who distributes a controlled
     6  substance.
     7    [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
     8  of  a  controlled  substance by a person or in a manner not specifically
     9  authorized by law.
    10    [13.] 12. "Drug" means
    11    (a) substances recognized as drugs in the official United States Phar-
    12  macopoeia, official Homeopathic Pharmacopoeia of the United  States,  or
    13  official National Formulary, or any supplement to any of them;
    14    (b)  substances  intended  for use in the diagnosis, cure, mitigation,
    15  treatment, or prevention of disease in man or animals; and
    16    (c) substances (other than food) intended to affect the structure or a
    17  function of the body of man or animal. It does not  include  devices  or
    18  their components, parts, or accessories.
    19    [14.]  13. "Federal agency" means the Drug Enforcement Administration,
    20  United States Department of Justice, or its successor agency.
    21    [15.] 14. "Federal controlled substances act" means the  Comprehensive
    22  Drug  Abuse  Prevention  and Control Act of 1970, Public Law 91-513, and
    23  any act or  acts  amendatory  or  supplemental  thereto  or  regulations
    24  promulgated thereunder.
    25    [16.]  15. "Federal registration number" means such number assigned by
    26  the Federal agency to any person authorized to manufacture,  distribute,
    27  sell, dispense or administer controlled substances.
    28    [17.]  16.  "Habitual  user"  means any person who is, or by reason of
    29  repeated use of any controlled substance for non-legitimate or  unlawful
    30  use is in danger of becoming, dependent upon such substance.
    31    [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
    32  hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
    33  hospital or similar facility approved and certified by the department as
    34  authorized  to  obtain  controlled  substances  by  distribution  and to
    35  dispense and administer such substances pursuant to the order of a prac-
    36  titioner.
    37    [19.] 18. "License"  means  a  written  authorization  issued  by  the
    38  department  or  the  New  York  state department of education permitting
    39  persons to engage in a specified activity  with  respect  to  controlled
    40  substances.
    41    [20.]  19.  "Manufacture"  means  the  production, preparation, propa-
    42  gation,  compounding,  cultivation,  conversion  or  processing   of   a
    43  controlled  substance,  either  directly  or indirectly or by extraction
    44  from substances of natural origin, or independently by means of chemical
    45  synthesis, or by a combination of extraction and chemical synthesis, and
    46  includes any packaging or repackaging of the substance  or  labeling  or
    47  relabeling  of its container, except that this term does not include the
    48  preparation,  compounding,  packaging  or  labeling  of   a   controlled
    49  substance:
    50    (a)  by a practitioner as an incident to his administering or dispens-
    51  ing of a controlled substance in the course of  his  professional  prac-
    52  tice; or
    53    (b)  by  a  practitioner,  or by his authorized agent under his super-
    54  vision, for the purpose of, or as an incident to, research, teaching, or
    55  chemical analysis and not for sale; or

        A. 1617--B                         68

     1    (c) by a pharmacist as an incident to his dispensing of  a  controlled
     2  substance in the course of his professional practice.
     3    [21.  "Marihuana"  means all parts of the plant of the genus Cannabis,
     4  whether growing or not; the seeds thereof; the resin extracted from  any
     5  part  of  the  plant; and every compound, manufacture, salt, derivative,
     6  mixture, or preparation of the plant, its seeds or resin.  It  does  not
     7  include  the mature stalks of the plant, fiber produced from the stalks,
     8  oil or cake made from the seeds of the plant, any other compound,  manu-
     9  facture,  salt, derivative, mixture, or preparation of the mature stalks
    10  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    11  sterilized seed of the plant which is incapable of germination.
    12    22.]  20. "Narcotic drug" means any of the following, whether produced
    13  directly or  indirectly  by  extraction  from  substances  of  vegetable
    14  origin,  or independently by means of chemical synthesis, or by a combi-
    15  nation of extraction and chemical synthesis:
    16    (a) opium and opiate, and any salt, compound, derivative, or  prepara-
    17  tion of opium or opiate;
    18    (b)  any  salt,  compound,  isomer, derivative, or preparation thereof
    19  which is chemically equivalent or identical with any of  the  substances
    20  referred  to in [subdivision] paragraph (a) of this subdivision, but not
    21  including the isoquinoline alkaloids of opium;
    22    (c) opium poppy and poppy straw.
    23    [23.] 21. "Opiate" means any substance having an addiction-forming  or
    24  addiction-sustaining  liability  similar to morphine or being capable of
    25  conversion into a drug having addiction-forming or  addiction-sustaining
    26  liability.  It  does  not  include,  unless  specifically  designated as
    27  controlled under section [3306] thirty-three hundred six of this  [arti-
    28  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
    29  its  salts (dextromethorphan). It does include its racemic and levorota-
    30  tory forms.
    31    [24.] 22. "Opium  poppy"  means  the  plant  of  the  species  Papaver
    32  somniferum L., except its seeds.
    33    [25.] 23. "Person" means individual, institution, corporation, govern-
    34  ment  or  governmental  subdivision  or  agency, business trust, estate,
    35  trust, partnership or association, or any other legal entity.
    36    [26.] 24. "Pharmacist" means any person licensed by the state  depart-
    37  ment of education to practice pharmacy.
    38    [27.]  25.  "Pharmacy"  means  any place registered as such by the New
    39  York state board of pharmacy and  registered  with  the  Federal  agency
    40  pursuant to the federal controlled substances act.
    41    [28.]  26.  "Poppy  straw"  means  all parts, except the seeds, of the
    42  opium poppy, after mowing.
    43    [29.] 27. "Practitioner" means:
    44    A physician, dentist, podiatrist,  veterinarian,  scientific  investi-
    45  gator,  or  other  person  licensed, or otherwise permitted to dispense,
    46  administer or conduct research with respect to a controlled substance in
    47  the course of a licensed  professional  practice  or  research  licensed
    48  pursuant  to  this article. Such person shall be deemed a "practitioner"
    49  only as to such substances, or conduct relating to such  substances,  as
    50  is permitted by his license, permit or otherwise permitted by law.
    51    [30.]   28.   "Prescribe"  means  a  direction  or  authorization,  by
    52  prescription, permitting an ultimate user lawfully to obtain  controlled
    53  substances   from   any  person  authorized  by  law  to  dispense  such
    54  substances.

        A. 1617--B                         69

     1    [31.] 29.  "Prescription"  shall  mean  an  official  New  York  state
     2  prescription,  an electronic prescription, an oral prescription[,] or an
     3  out-of-state prescription[, or any one].
     4    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
     5  er, or offer or agree to do the same.
     6    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
     7  possesses a controlled substance for his own use or the use by a  member
     8  of  his  household  or  for an animal owned by him or in his custody. It
     9  shall also mean and include a person designated, by a practitioner on  a
    10  prescription, to obtain such substance on behalf of the patient for whom
    11  such substance is intended.
    12    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    13  cations facilities which comprise the worldwide network of networks that
    14  employ a set of industry standards and protocols, or any predecessor  or
    15  successor  protocol  to  such  protocol,  to exchange information of all
    16  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
    17  networks,  whether  private  or  public, used to transmit information by
    18  electronic means.
    19    [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
    20  distribution,  or  dispensing  of  a  controlled substance that uses the
    21  internet, is initiated by use of the internet or causes the internet  to
    22  be used.
    23    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
    24  in  the  United  States  that sells, delivers or dispenses, or offers to
    25  sell, deliver, or dispense, a  controlled  substance  by  means  of  the
    26  internet.
    27    [37.]  35.  "Electronic prescription" means a prescription issued with
    28  an electronic signature and transmitted by electronic means  in  accord-
    29  ance with regulations of the commissioner and the commissioner of educa-
    30  tion  and consistent with federal requirements. A prescription generated
    31  on an electronic system that is printed out or transmitted via facsimile
    32  is not considered  an  electronic  prescription  and  must  be  manually
    33  signed.
    34    [38.] 36. "Electronic" means of or relating to technology having elec-
    35  trical, digital, magnetic, wireless, optical, electromagnetic or similar
    36  capabilities. "Electronic" shall not include facsimile.
    37    [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
    38  created, generated, transmitted, communicated,  received  or  stored  by
    39  means  of electronic equipment and includes the preservation, retrieval,
    40  use and disposition in accordance with regulations of  the  commissioner
    41  and the commissioner of education and in compliance with federal law and
    42  regulations.
    43    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    44  process,  attached  to or logically associated with an electronic record
    45  and executed or adopted by a person with the intent to sign the  record,
    46  in  accordance with regulations of the commissioner and the commissioner
    47  of education.
    48    [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
    49  means  the prescription monitoring program registry established pursuant
    50  to section thirty-three hundred forty-three-a of this article.
    51    [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
    52  ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
    53  drug substance to create a drug with respect to an outsourcing  facility
    54  under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
    55  further defined in this section.
    56    [43.] 41. "Outsourcing facility" means a facility that:

        A. 1617--B                         70

     1    (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
     2  section sixty-eight hundred two of the education law;
     3    (b)  is  currently  registered  as an outsourcing facility pursuant to
     4  article one hundred thirty-seven of the education law; and
     5    (c) complies with all applicable requirements  of  federal  and  state
     6  law, including the Federal Food, Drug and Cosmetic Act.
     7    Notwithstanding  any  other  provision of law to the contrary, when an
     8  outsourcing facility distributes or dispenses any  drug  to  any  person
     9  pursuant to a prescription, such outsourcing facility shall be deemed to
    10  be  providing  pharmacy services and shall be subject to all laws, rules
    11  and regulations governing pharmacies and pharmacy services.
    12    § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
    13  26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
    14  section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
    15  18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
    16  1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
    17  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
    18  laws of 2006, are amended to read as follows:
    19    (13) [Marihuana.
    20    (14)] Mescaline.
    21    [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
    22  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
    23    [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
    24  fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
    25  not, the seeds thereof, any extract from any part  of  such  plant,  and
    26  every  compound, manufacture, salts, derivative, mixture, or preparation
    27  of such plant, its seeds or extracts.
    28    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    29    [(18)] (17) N-methyl-3-piperidyl benzilate.
    30    [(19)] (18) Psilocybin.
    31    [(20)] (19) Psilocyn.
    32    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
    33  derived from the cannabis plant that are equivalents of  the  substances
    34  contained  in the plant, or in the resinous extractives of cannabis, sp.
    35  and/or synthetic substances, derivatives, and their isomers with similar
    36  chemical structure and pharmacological activity such as the following:
    37    [/\] delta 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
    38  isomers
    39    [/\]  delta  6  cis  or  trans tetrahydrocannabinol, and their optical
    40  isomers
    41    [/\] delta 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
    42  isomers  (since  nomenclature of these substances is not internationally
    43  standardized, compounds of these  structures,  regardless  of  numerical
    44  designation of atomic positions covered).
    45    [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
    46  names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
    47  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    48    [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
    49  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    50    [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
    51  names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
    52  phencyclidine, TPCP, TCP.
    53    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    54    [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
    55  N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
    56  MDE, MDEA.

        A. 1617--B                         71

     1    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
     2  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
     3  N-hydroxy MDA.
     4    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
     5  names: TCPY.
     6    [(29)] (28) Alpha-ethyltryptamine. Some trade or other names:   etryp-
     7  tamine;  Monase;  Alpha-ethyl-1H-indole-3-ethanamine;  3- (2-aminobutyl)
     8  indole; Alpha-ET or AET.
     9    [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
    10  names: DOET.
    11    [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
    12  names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
    13  DOB; 2C-B, Nexus.
    14    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    15  optical isomers, salts and salts of isomers.
    16    § 5. Section 3382 of the public health law is REPEALED.
    17    § 6. Title 5-A of article 33 of the public health law is REPEALED.
    18    §  7.  Paragraph  (d) of subdivision 3, subdivision 3-a and paragraphs
    19  (a) and (b) of subdivision 11 of section 1311 of the civil practice  law
    20  and  rules,  paragraph (d) of subdivision 3 and subdivision 3-a as added
    21  by chapter 655 of the laws of 1990 and paragraphs (a) and (b) of  subdi-
    22  vision  11 as amended by section 47 of part A1 of chapter 56 of the laws
    23  of 2010, are amended to read as follows:
    24    (d) In a forfeiture action commenced by a claiming authority against a
    25  defendant, the following rebuttable presumption shall apply: all curren-
    26  cy or negotiable instruments payable to the bearer shall be presumed  to
    27  be  the proceeds of a pre-conviction forfeiture crime when such currency
    28  or negotiable  instruments  are  (i)  found  in  close  proximity  to  a
    29  controlled  substance unlawfully possessed by the defendant in an amount
    30  sufficient to constitute a violation of section 220.18 or 220.21 of  the
    31  penal  law,  or  (ii)  found  in  close  proximity  to any quantity of a
    32  controlled substance [or marihuana] unlawfully possessed by such defend-
    33  ant in a room, other than a public place, under  circumstances  evincing
    34  an  intent to unlawfully mix, compound, distribute, package or otherwise
    35  prepare for sale such controlled substance [or marihuana].
    36    3-a. Conviction of a person in a criminal action  upon  an  accusatory
    37  instrument  which  includes  one  or  more  of the felonies specified in
    38  subdivision four-b of section thirteen hundred ten of this  article,  of
    39  any  felony other than such felonies, shall not preclude a defendant, in
    40  any subsequent proceeding under this article where that conviction is at
    41  issue, from adducing evidence that the conduct underlying the conviction
    42  would not establish the elements of any of  the  felonies  specified  in
    43  such subdivision other than the one to which the criminal defendant pled
    44  guilty.  If the defendant does adduce such evidence, the burden shall be
    45  upon the claiming authority to prove, by clear and convincing  evidence,
    46  that  the conduct underlying the criminal conviction would establish the
    47  elements of the felony specified in such subdivision. Nothing  contained
    48  in  this  subdivision  shall  affect the validity of a settlement of any
    49  forfeiture action negotiated between the claiming authority and a crimi-
    50  nal defendant contemporaneously with the taking of a plea of guilty in a
    51  criminal action to any felony defined in article two hundred twenty  [or
    52  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    53  commit the same.
    54    (a)  Any  stipulation or settlement agreement between the parties to a
    55  forfeiture action shall be filed with the clerk of the  court  in  which
    56  the forfeiture action is pending. No stipulation or settlement agreement

        A. 1617--B                         72

     1  shall  be  accepted  for filing unless it is accompanied by an affidavit
     2  from the claiming authority that written notice of  the  stipulation  or
     3  settlement agreement, including the terms of such, has been given to the
     4  office  of  victim  services,  the  state  division  of criminal justice
     5  services[, and in the case of a forfeiture based on a felony defined  in
     6  article two hundred twenty or section 221.30 or 221.55 of the penal law,
     7  to the state division of substance abuse services].
     8    (b)  No  judgment  or order of forfeiture shall be accepted for filing
     9  unless it is accompanied by an affidavit  from  the  claiming  authority
    10  that  written  notice of judgment or order, including the terms of such,
    11  has been given to the office of victim services, the state  division  of
    12  criminal  justice  services[, and in the case of a forfeiture based on a
    13  felony defined in article two hundred twenty or section 221.30 or 221.55
    14  of the penal law, to the state division of substance abuse services].
    15    § 8. Subdivision 1 of section 3397-b of  the  public  health  law,  as
    16  added by chapter 810 of the laws of 1980, is amended to read as follows:
    17    1.  ["Marijuana"]  "Cannabis" means [marijuana] cannabis as defined in
    18  [section thirty-three hundred two of this chapter]  subdivision  six  of
    19  section  220.00 of the penal law and shall also include tetrahydrocanna-
    20  binols or a chemical derivative of tetrahydrocannabinol.
    21    § 9. Section 114-a of the vehicle and traffic law, as added by chapter
    22  163 of the laws of 1973, is amended to read as follows:
    23    § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
    24  includes any substance listed in section thirty-three hundred six of the
    25  public  health  law  and any substance or combination of substances that
    26  impair physical and mental abilities.
    27    § 10. Subdivisions 5, 6 and 9 of section  220.00  of  the  penal  law,
    28  subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
    29  6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
    30  amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
    31  subdivisions 21 and 22 are added to read as follows:
    32    5.  "Controlled  substance"  means any substance listed in schedule I,
    33  II, III, IV or V of section  thirty-three  hundred  six  of  the  public
    34  health  law  other than [marihuana] cannabis, but including concentrated
    35  cannabis as defined in [paragraph (a) of  subdivision  four  of  section
    36  thirty-three  hundred  two  of  such law] subdivision twenty-one of this
    37  section.
    38    6. ["Marihuana"] "Cannabis" means ["marihuana" or "concentrated canna-
    39  bis" as those terms are defined in section thirty-three hundred  two  of
    40  the  public  health  law]  all parts of the plant of the genus Cannabis,
    41  whether growing or not; the seeds thereof; the resin extracted from  any
    42  part  of  the  plant; and every compound, manufacture, salt, derivative,
    43  mixture, or preparation of the plant, its seeds or resin.   It does  not
    44  include  the mature stalks of the plant, fiber produced from the stalks,
    45  oil or cake made from the seeds of the plant, any other compound,  manu-
    46  facture,  salt, derivative, mixture, or preparation of the mature stalks
    47  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    48  sterilized  seed of the plant which is incapable of germination. It does
    49  not include all parts of the plant Cannabis sativa L.,  whether  growing
    50  or not, having no more than three-tenths of one percent tetrahydrocanna-
    51  binol (THC).
    52    9.  "Hallucinogen"  means any controlled substance listed in [schedule
    53  I(d)] paragraphs (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
    54  (19),  (20) and (21) of subdivision (d) of schedule I of section thirty-
    55  three hundred six of the public health law.
    56    21. "Concentrated cannabis" means:

        A. 1617--B                         73

     1    (a) the separated resin, whether crude or purified,  obtained  from  a
     2  plant of the genus Cannabis; or
     3    (b)  a  material,  preparation,  mixture,  compound or other substance
     4  which contains more than three percent by weight of delta-9  tetrahydro-
     5  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
     6  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
     7  numbering system.
     8    22.  "Cannabis  products"  means  cannabis, concentrated cannabis, and
     9  cannabis-infused products containing  concentrated  cannabis  and  other
    10  ingredients.
    11    § 11.  Subdivision 4 of section 220.06 of the penal law, as amended by
    12  chapter 537 of the laws of 1998, is amended to read as follows:
    13    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
    14  containing concentrated cannabis as defined in [paragraph (a) of  subdi-
    15  vision  four  of  section  thirty-three hundred two of the public health
    16  law] subdivision twenty-one of section 220.00 of this article  and  said
    17  preparations,  compounds,  mixtures  or  substances  are of an aggregate
    18  weight of one-fourth ounce or more; or
    19    § 12. Subdivision 10 of section 220.09 of the penal law, as amended by
    20  chapter 537 of the laws of 1998, is amended to read as follows:
    21    10. one  or  more  preparations,  compounds,  mixtures  or  substances
    22  containing  concentrated cannabis as defined in [paragraph (a) of subdi-
    23  vision four of section thirty-three hundred two  of  the  public  health
    24  law]  subdivision  twenty-one of section 220.00 of this article and said
    25  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    26  weight of one ounce or more; or
    27    §  13. Subdivision 3 of section 220.34 of the penal law, as amended by
    28  chapter 537 of the laws of 1998, is amended to read as follows:
    29    3. concentrated cannabis as defined in [paragraph (a)  of  subdivision
    30  four  of  section  thirty-three  hundred  two  of the public health law]
    31  subdivision twenty-one of section 220.00 of this article; or
    32    § 14. Section 220.50 of the penal law, as amended by  chapter  627  of
    33  the laws of 1990, is amended to read as follows:
    34  § 220.50 Criminally using drug paraphernalia in the second degree.
    35    A  person  is  guilty  of  criminally  using drug paraphernalia in the
    36  second degree when he knowingly possesses or sells:
    37    1. Diluents, dilutants or adulterants, including but not  limited  to,
    38  any  of the following: quinine hydrochloride, mannitol, mannite, lactose
    39  or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
    40  under  circumstances  evincing  an intent to use, or under circumstances
    41  evincing knowledge that  some  person  intends  to  use,  the  same  for
    42  purposes  of  unlawfully mixing, compounding, or otherwise preparing any
    43  narcotic  drug  or  stimulant,  other  than  cannabis  or   concentrated
    44  cannabis; or
    45    2. Gelatine capsules, glassine envelopes, vials, capsules or any other
    46  material suitable for the packaging of individual quantities of narcotic
    47  drugs  or  stimulants  under circumstances evincing an intent to use, or
    48  under circumstances evincing knowledge that some person intends to  use,
    49  the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
    50  dispensing of any narcotic drug or stimulant,  other  than  cannabis  or
    51  concentrated cannabis; or
    52    3. Scales and balances used or designed for the purpose of weighing or
    53  measuring  controlled substances, under circumstances evincing an intent
    54  to use, or under  circumstances  evincing  knowledge  that  some  person
    55  intends  to use, the same for purpose of unlawfully manufacturing, pack-

        A. 1617--B                         74

     1  aging or dispensing of any narcotic drug or stimulant, other than canna-
     2  bis or concentrated cannabis.
     3    Criminally  using drug paraphernalia in the second degree is a class A
     4  misdemeanor.
     5    § 15. Article 221 of the penal law is REPEALED.
     6    § 16. The penal law is amended by adding a new article 222 to read  as
     7  follows:
     8                                 ARTICLE 222
     9                                  CANNABIS
    10  Section 222.00 Cannabis; definitions.
    11          222.05 Personal use of cannabis.
    12          222.10 Unlawful cultivation of cannabis.
    13          222.15 Licensing of cannabis production and distribution.
    14          222.20 Unlawful possession of cannabis.
    15          222.25 Unlicensed sale of cannabis in the second degree.
    16          222.30 Unlicensed sale of cannabis in the first degree.
    17          222.35 Sale  of  cannabis to a person less than twenty-one years
    18                   of age in the second degree.
    19          222.40 Sale of cannabis to a person less than  twenty-one  years
    20                   of age in the first degree.
    21  § 222.00 Cannabis; definitions.
    22    1.  "Cannabis"  means  all  parts  of the plant of the genus Cannabis,
    23  whether growing or not; the seeds thereof; the resin extracted from  any
    24  part  of  the  plant; and every compound, manufacture, salt, derivative,
    25  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    26  include  the mature stalks of the plant, fiber produced from the stalks,
    27  oil or cake made from the seeds of the plant, any other compound,  manu-
    28  facture,  salt, derivative, mixture, or preparation of the mature stalks
    29  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    30  sterilized seed of the plant which is incapable of germination.  It does
    31  not  include  all parts of the plant Cannabis sativa L., whether growing
    32  or not, having no more than three-tenths of one percent tetrahydrocanna-
    33  binol (THC).
    34    2. "Concentrated cannabis" means:
    35    (a) the separated resin, whether crude or purified,  obtained  from  a
    36  plant of the genus Cannabis; or
    37    (b)  a  material,  preparation,  mixture,  compound or other substance
    38  which contains more than three percent by weight of delta-9  tetrahydro-
    39  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
    40  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
    41  numbering system.
    42    3.  "Cannabis-infused products" means products that have been manufac-
    43  tured and contain either cannabis or  concentrated  cannabis  and  other
    44  ingredients that are intended for use or consumption.
    45    4.  "Mature  cannabis  plant"  means  a cannabis plant with observable
    46  flowers or buds.
    47    5. For the purposes of  this  article,  "sale"  shall  mean  to  sell,
    48  exchange  or  dispose  of for compensation. "Sale" shall not include the
    49  transfer of cannabis, concentrated cannabis or cannabis-infused  product
    50  between persons twenty-one years of age or older without compensation in
    51  the quantities authorized in paragraph (b) of subdivision one of section
    52  222.05 of this article.
    53  § 222.05 Personal use of cannabis.
    54    Notwithstanding any other provision of law to the contrary:
    55    1.  The  following acts are lawful for persons twenty-one years of age
    56  or older:  (a) possessing, displaying, purchasing, obtaining, or  trans-

        A. 1617--B                         75

     1  porting  up  to  three ounces of cannabis and up to twenty-four grams of
     2  concentrated  cannabis,  or  equivalent   amount   of   cannabis-infused
     3  products;
     4    (b)  transferring,  without compensation, to a person twenty-one years
     5  of age or older, up to three ounces of cannabis and  up  to  twenty-four
     6  grams of concentrated cannabis, or equivalent amount of cannabis-infused
     7  products;
     8    (c)  using,  smoking,  ingesting,  or consuming cannabis, concentrated
     9  cannabis or cannabis-infused products  unless  otherwise  prohibited  by
    10  state law or regulation;
    11    (d)  possessing, using, displaying, purchasing, obtaining, manufactur-
    12  ing, transporting or giving to any person twenty-one  years  of  age  or
    13  older cannabis paraphernalia or concentrated cannabis paraphernalia; and
    14    (e)  assisting another person who is twenty-one years of age or older,
    15  or allowing property to be used, in any of the acts described  in  para-
    16  graphs (a) through (d) of this subdivision.
    17    2.  Cannabis, concentrated cannabis, cannabis-infused products, canna-
    18  bis paraphernalia or concentrated cannabis paraphernalia involved in any
    19  way with conduct deemed lawful by this section are  not  contraband  nor
    20  subject  to  seizure  or forfeiture of assets under article four hundred
    21  eighty of this chapter, section thirteen hundred  eleven  of  the  civil
    22  practice  law  and rules, or other applicable law, and no conduct deemed
    23  lawful by this section shall constitute the basis for approach,  search,
    24  seizure, arrest or detention.
    25    3. Except as provided in subdivision four of this section, none of the
    26  following shall, individually or in combination with each other, consti-
    27  tute  reasonable suspicion of a crime or be used as evidence of probable
    28  cause in any criminal proceeding against a defendant twenty-one years of
    29  age or older:
    30    (a) the odor of cannabis or of burnt cannabis;
    31    (b) the possession of or the  suspicion  of  possession  of  cannabis,
    32  concentrated  cannabis  or  cannabis-infused  products  in  the  amounts
    33  authorized in this section;
    34    (c) the possession of multiple containers of cannabis without evidence
    35  of possession of more than three ounces of cannabis,  twenty-four  grams
    36  of  concentrated  cannabis  or the equivalent amount of cannabis-infused
    37  products; or
    38    (d) the presence of cash or currency in proximity to cannabis, concen-
    39  trated cannabis or cannabis-infused products.
    40    4. Subdivision three of this  section  shall  not  apply  when  a  law
    41  enforcement officer is investigating: (a) an alleged offense pursuant to
    42  section 222.20, 222.25, 222.30, 222.35 or 222.40 of this article; or (b)
    43  whether  a  person  is  operating or in physical control of a vehicle or
    44  watercraft while intoxicated, under the influence  of,  or  impaired  by
    45  alcohol  or  a  drug  or any combination thereof in violation of article
    46  thirty-one of the vehicle and traffic law.
    47    5. (a) Nothing in this section shall be construed to permit any person
    48  to:
    49    (i) smoke cannabis in public;
    50    (ii) smoke cannabis products in a location where  smoking  tobacco  is
    51  prohibited  pursuant  to  section  thirteen hundred ninety-nine-o of the
    52  public health law;
    53    (iii) possess, smoke or  ingest  cannabis  products  in  or  upon  the
    54  grounds  of  any school property used for school purposes which is owned
    55  by or leased to any elementary or secondary school or school board while
    56  children are present; or

        A. 1617--B                         76

     1    (iv) smoke or ingest cannabis  products  while  driving,  operating  a
     2  motor  vehicle, boat, vessel, aircraft, or other vehicle used for trans-
     3  portation.
     4    (b) For purposes of this section:
     5    (i)  "Smoke"  means  to  inhale, exhale, burn, or carry any lighted or
     6  heated device or pipe, or  any  other  lighted  or  heated  cannabis  or
     7  concentrated  cannabis  product intended for inhalation, whether natural
     8  or synthetic, in any manner or in any form.
     9    (ii) "Smoke" does not include the use of an electronic smoking  device
    10  that  creates an aerosol or vapor, unless local or state statutes extend
    11  prohibitions on smoking to electronic smoking devices.
    12    (c) Violations of the restrictions under this subdivision are  subject
    13  to  a fine not exceeding twenty-five dollars or an appropriate amount of
    14  community service not to exceed twenty hours.
    15  § 222.10 Unlawful cultivation of cannabis.
    16    A person is guilty of unlawful cultivation of cannabis when he or  she
    17  knowingly  and  unlawfully plants, cultivates, harvests, dries, or proc-
    18  esses cannabis on public lands or otherwise in violation of article  six
    19  of the cannabis law.
    20    Unlawful cultivation of cannabis is a class B misdemeanor.
    21  § 222.15 Licensing of cannabis production and distribution.
    22    The  criminal penalties pursuant to the provisions of this article for
    23  possessing, manufacturing, transporting, distributing, selling or trans-
    24  ferring cannabis, concentrated  cannabis  or  cannabis-infused  products
    25  shall  not  apply  to  any person engaged in such activity in compliance
    26  with the cannabis law.
    27  § 222.20 Unlawful possession of cannabis.
    28    A person is guilty of unlawful possession of cannabis when he  or  she
    29  knowingly and unlawfully possesses:
    30    1. cannabis and such cannabis weighs more than three ounces; or
    31    2.  concentrated  cannabis  and such concentrated cannabis weighs more
    32  than twenty-four grams; or
    33    3. equivalent amount of cannabis-infused products.
    34    Unlawful possession of cannabis is a violation punishable by a fine of
    35  not more than one hundred twenty-five dollars.
    36  § 222.25 Unlicensed sale of cannabis in the second degree.
    37    1. A person is guilty of unlicensed sale of  cannabis  in  the  second
    38  degree  when he or she knowingly and unlawfully sells up to three ounces
    39  of cannabis, or twenty-four grams of concentrated cannabis or equivalent
    40  amount of cannabis-infused products.
    41    2. A violation of this section is subject to the following  penalties,
    42  as applicable:
    43    (a)  violation punishable by a fine of not more than one hundred twen-
    44  ty-five dollars;
    45    (b) if, within the previous five years, the defendant was convicted of
    46  the crime of unlicensed sale of cannabis in the first  degree,  sale  of
    47  cannabis  to  a  person  less than twenty-one years of age in the second
    48  degree, sale of cannabis to a person less than twenty-one years  of  age
    49  in  the  first  degree or this section, then a violation punishable by a
    50  fine of not more than two  hundred  fifty  dollars  for  a  second  such
    51  offense; or
    52    (c) if, within the previous five years, the defendant was convicted of
    53  the  crime  of  unlicensed sale of cannabis in the first degree, sale of
    54  cannabis to a person less than twenty-one years of  age  in  the  second
    55  degree,  sale  of cannabis to a person less than twenty-one years of age

        A. 1617--B                         77

     1  in the first degree or this section, then a class B misdemeanor for such
     2  third or subsequent offense.
     3  § 222.30 Unlicensed sale of cannabis in the first degree.
     4    1.  A  person  is  guilty  of unlicensed sale of cannabis in the first
     5  degree when he or she knowingly and unlawfully  sells  more  than  three
     6  ounces of cannabis, more than twenty-four grams of concentrated cannabis
     7  or the equivalent amount of cannabis-infused products.
     8    2.  A violation of this section is subject to the following penalties,
     9  as applicable:
    10    (a) a violation punishable by a fine of  not  more  than  two  hundred
    11  fifty dollars;
    12    (b) if, within the previous five years, the defendant was convicted of
    13  the  crime  of unlicensed sale of cannabis in the second degree, sale of
    14  cannabis to a person less than twenty-one years of  age  in  the  second
    15  degree,  sale  of cannabis to a person less than twenty-one years of age
    16  in the first degree or this section, then a violation  punishable  by  a
    17  fine of not more than five hundred dollars for such second offense; or
    18    (c) if, within the previous five years, the defendant was convicted of
    19  the  crime  of unlicensed sale of cannabis in the second degree, sale of
    20  cannabis to a person less than twenty-one years of  age  in  the  second
    21  degree,  sale  of cannabis to a person less than twenty-one years of age
    22  in the first degree or this section, then a class A misdemeanor for such
    23  third or subsequent offense.
    24  § 222.35 Sale of cannabis to a person less than twenty-one years of  age
    25             in the second degree.
    26    A  person  twenty-one  years  of age or older is guilty of the sale of
    27  cannabis to a person less than twenty-one years of  age  in  the  second
    28  degree when, being twenty-one years of age or older, he or she knowingly
    29  and unlawfully sells cannabis, concentrated cannabis or cannabis-infused
    30  products to a person less than twenty-one years of age.
    31    Sale  of  cannabis  to  a  person under twenty-one years of age in the
    32  second degree is a class A misdemeanor.
    33  § 222.40 Sale of cannabis to a person less than twenty-one years of  age
    34             in the first degree.
    35    A  person  twenty-one  years of age and older is guilty of the sale of
    36  cannabis to a person under twenty-one years of age in the  first  degree
    37  when,  being  twenty-one  years of age or older, he or she knowingly and
    38  unlawfully sells more than three ounces of cannabis, more  than  twenty-
    39  four  grams  of concentrated cannabis or the equivalent amount of canna-
    40  bis-infused products.
    41    Sale of cannabis to a person less than twenty-one years of age in  the
    42  first degree is a class E felony.
    43    §  17.  Subdivision  8  of section 1399-n of the public health law, as
    44  amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
    45  follows:
    46    8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    47  any other matter  or  substance  which  contains  tobacco  or  cannabis;
    48  provided  that  it  does  not  include  the use of an electronic smoking
    49  device that creates an aerosol or vapor, unless local or state  statutes
    50  extend prohibitions on smoking to electronic smoking devices.
    51    §  18. Section 1.20 of the criminal procedure law is amended by adding
    52  a new subdivision 45 to read as follows:
    53    45. "Expunge" means, where an  arrest  and  any  enforcement  activity
    54  connected with that arrest, including prosecution and any disposition in
    55  any  New  York  state  court,  is  deemed  a  nullity and the accused is
    56  restored, in contemplation of the law, to  the  status  such  individual

        A. 1617--B                         78

     1  occupied  before  the  arrest  and/or  prosecution; that records of such
     2  arrest, prosecution and/or disposition shall be marked  as  expunged  or
     3  shall  be  destroyed  as  set  forth  in section 160.50 of this chapter.
     4  Neither  the  arrest  nor  prosecution  and/or disposition, if any, of a
     5  matter deemed a nullity shall  operate  as  a  disqualification  of  any
     6  person  so  accused  to pursue or engage in any lawful activity, occupa-
     7  tion, profession or  calling.  Except  where  specifically  required  or
     8  permitted by statute or upon specific authorization of a superior court,
     9  no  such  person  shall be required to divulge information pertaining to
    10  the arrest, prosecution and/or disposition of such a matter.
    11    § 19. Subdivision 1 of section 160.50 of the criminal  procedure  law,
    12  as  amended by chapter 169 of the laws of 1994, paragraph (d) as amended
    13  by chapter 449 of the laws of 2015, is amended and a new subdivision 1-a
    14  is added to read as follows:
    15    1. Upon the termination of a criminal action or proceeding  against  a
    16  person  in favor of such person, as defined in subdivision three of this
    17  section, unless the district attorney upon motion  with  not  less  than
    18  five  days  notice to such person or his or her attorney demonstrates to
    19  the satisfaction of the court that  the  interests  of  justice  require
    20  otherwise,  or  the court on its own motion with not less than five days
    21  notice to such person or his or her attorney determines that the  inter-
    22  ests of justice require otherwise and states the reasons for such deter-
    23  mination  on  the record, [the record of such action or proceeding shall
    24  be sealed and the clerk of the court wherein  such  criminal  action  or
    25  proceeding  was  terminated shall immediately notify the commissioner of
    26  the division of criminal justice services and the heads of all appropri-
    27  ate police departments and  other  law  enforcement  agencies  that  the
    28  action has been terminated in favor of the accused, and unless the court
    29  has  directed  otherwise,  that  the record of such action or proceeding
    30  shall be sealed. Upon receipt of notification of  such  termination  and
    31  sealing] such action or proceeding shall be deemed a nullity and records
    32  of such action or proceeding expunged, and the clerk of the court where-
    33  in  such  criminal action or proceeding was terminated shall immediately
    34  notify the commissioner of the division of criminal justice services and
    35  the heads of all appropriate police departments and other  law  enforce-
    36  ment  agencies  that  the  action  has  been  terminated in favor of the
    37  accused and deemed a nullity, and unless the court has  directed  other-
    38  wise,  that the record of or relating to such action or proceeding shall
    39  be immediately expunged as follows:
    40    (a) every photograph of such person and photographic plate  or  proof,
    41  and  all palmprints and fingerprints, retina scans or DNA material taken
    42  or made of such person pursuant to the provisions  of  this  article  in
    43  regard  to  the  action  or  proceeding  terminated, [except a dismissal
    44  pursuant to section 170.56 or 210.46 of this chapter,]  and  all  dupli-
    45  cates  and  copies  thereof,  except  a  digital fingerprint image where
    46  authorized pursuant to paragraph (e) of this subdivision,  shall  forth-
    47  with  be[,  at the discretion of the recipient agency, either] destroyed
    48  [or returned to such person, or to the  attorney  who  represented  such
    49  person]  at the time of the termination of the action or proceeding[, at
    50  the address given by such  person  or  attorney  during  the  action  or
    51  proceeding,]  by  the  division  of criminal justice services and by any
    52  police department or law enforcement agency having any such  photograph,
    53  photographic  plate or proof, palmprint [or], fingerprints, retina scans
    54  or DNA material in its possession or under its control;
    55    (b) any police department or law  enforcement  agency,  including  the
    56  division  of  criminal  justice services, which transmitted or otherwise

        A. 1617--B                         79

     1  forwarded to any agency of the United States or of any other state or of
     2  any other jurisdiction outside the state of New York copies of any  such
     3  photographs,  photographic  plates  or proofs, palmprints [and], finger-
     4  prints,  retina  scans  or  DNA  material,  including  those relating to
     5  actions or proceedings which were dismissed pursuant to  section  170.56
     6  or  210.46 of this [chapter] part, shall forthwith formally [request in]
     7  inform them in writing that [all such copies be destroyed or returned to
     8  the police department or law enforcement  agency  which  transmitted  or
     9  forwarded  them,  and,  if returned, such department or agency shall, at
    10  its discretion, either destroy or return them as provided herein, except
    11  that those relating to dismissals pursuant to section 170.56  or  210.46
    12  of this chapter shall not be destroyed or returned by such department or
    13  agency]  the  matter  has  been expunged and request in writing that all
    14  such copies be destroyed;
    15    (c) all official records and papers, including judgments and orders of
    16  a court but not including  published  court  decisions  or  opinions  or
    17  records  and  briefs  on  appeal, relating to the arrest or prosecution,
    18  including all duplicates and copies thereof, on file with  the  division
    19  of  criminal justice services, any court, police agency, or prosecutor's
    20  office shall be [sealed and not made available to any person  or  public
    21  or private agency] marked as expunged by conspicuously indicating on the
    22  face  of  the  record  or  at the beginning of the digitized file of the
    23  record that the record has been designated as expunged. Such records and
    24  papers shall be sealed and not be made available to any  person,  except
    25  the  individual whose case has been deemed a nullity or their designated
    26  agent as set forth in paragraph (d)  of  this  subdivision,  or  to  any
    27  public or private agency;
    28    (d)  [such]  records  set  forth  in paragraph (c) of this subdivision
    29  shall be made available to the person accused or to such person's desig-
    30  nated agent, and shall be made available to  (i)  a  prosecutor  in  any
    31  proceeding  in  which  the  accused  has  moved for an order pursuant to
    32  section 170.56 or 210.46 of this [chapter] part, or (ii) a law  enforce-
    33  ment  agency  upon  ex  parte  motion  in  any superior court, or in any
    34  district court, city court or the criminal court of the city of New York
    35  provided that such court originally sealed or expunged  the  record,  if
    36  such  agency  demonstrates to the satisfaction of the court that justice
    37  requires that such records be made available to it, or (iii)  any  state
    38  or  local  officer  or  agency  with  responsibility for the issuance of
    39  licenses to possess guns, when the accused has made application for such
    40  a license, or (iv) the New York  state  department  of  corrections  and
    41  community  supervision  when  the  accused is on parole supervision as a
    42  result of conditional release or a parole release  granted  by  the  New
    43  York  state  board of parole, and the arrest which is the subject of the
    44  inquiry is one which occurred while the accused was  under  such  super-
    45  vision,  or  (v)  any  prospective employer of a police officer or peace
    46  officer as those terms are  defined  in  subdivisions  thirty-three  and
    47  thirty-four  of section 1.20 of this chapter, in relation to an applica-
    48  tion for employment as a police  officer  or  peace  officer;  provided,
    49  however,  that  every  person  who  is  an applicant for the position of
    50  police officer or peace officer shall be furnished with a  copy  of  all
    51  records  obtained  under  this  paragraph and afforded an opportunity to
    52  make an explanation thereto, or (vi) the probation department  responsi-
    53  ble  for supervision of the accused when the arrest which is the subject
    54  of the inquiry is one which occurred while the accused  was  under  such
    55  supervision; and

        A. 1617--B                         80

     1    (e)  where fingerprints subject to the provisions of this section have
     2  been received by the division of criminal justice services and have been
     3  filed by the division as digital images, such images  may  be  retained,
     4  provided  that  a fingerprint card of the individual is on file with the
     5  division  which  was  not [sealed] destroyed pursuant to this section or
     6  section 160.55 of this article.
     7    (1-a) Cases previously sealed pursuant to this section shall be deemed
     8  expunged, and digital records shall be so marked.
     9    § 20. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
    10  of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
    11  ter 905 of the laws of 1977, paragraph (k) as added by  chapter  835  of
    12  the  laws  of  1977 and as relettered by chapter 192 of the laws of 1980
    13  and such subdivision as renumbered by chapter 142 of the laws  of  1991,
    14  are amended to read as follows:
    15    (i)  prior to the filing of an accusatory instrument in a local crimi-
    16  nal court against such person, the prosecutor elects  not  to  prosecute
    17  such  person.  In such event, the prosecutor shall serve a certification
    18  of such disposition upon the division of criminal justice  services  and
    19  upon  the appropriate police department or law enforcement agency which,
    20  upon receipt thereof, shall comply with  the  provisions  of  paragraphs
    21  (a),  (b),  (c)  and  (d) of subdivision one of this section in the same
    22  manner as is required thereunder with respect to an  order  of  a  court
    23  entered pursuant to said subdivision one[.]; or
    24    (j)  following the arrest of such person, the arresting police agency,
    25  prior to the filing of an accusatory  instrument  in  a  local  criminal
    26  court  but subsequent to the forwarding of a copy of the fingerprints of
    27  such person to the division of criminal justice services, elects not  to
    28  proceed  further. In such event, the head of the arresting police agency
    29  shall serve a certification of such disposition  upon  the  division  of
    30  criminal justice services which, upon receipt thereof, shall comply with
    31  the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
    32  this  section  in the same manner as is required thereunder with respect
    33  to an order of a court entered pursuant to said subdivision one[.]; or
    34    (k) (i) The accusatory instrument alleged a violation of  article  two
    35  hundred  twenty  or section 240.36 of the penal law, prior to the taking
    36  effect of article two hundred twenty-one of the penal  law,  or  by  the
    37  conviction  of  such person of a violation of [article two hundred twen-
    38  ty-one] section 221.45 of the penal law on or after the  effective  date
    39  of  the  chapter  of the laws of two thousand nineteen that amended this
    40  paragraph or a violation of  section  221.05,  221.10,  221.15,  221.20,
    41  221.25, 221.30, 221.35 or 221.40 of the penal law prior to the effective
    42  date  of  the  chapter of the laws of two thousand nineteen that amended
    43  this paragraph; and (ii)  the  sole  controlled  substance  involved  is
    44  [marijuana; (iii) the conviction was only for a violation or violations;
    45  and  (iv)  at  least three years have passed since the offense occurred]
    46  marihuana. No defendant shall be required or permitted to  waive  eligi-
    47  bility for sealing pursuant to this paragraph as part of a plea of guil-
    48  ty, sentence or any agreement related to a conviction for a violation of
    49  section  221.45  of  the penal law. Any such waiver shall be deemed void
    50  and wholly unenforceable.
    51    § 21. Subdivision 4 of section 160.50 of the criminal procedure law is
    52  REPEALED, and three new subdivisions 4, 5, and 6 are added  to  read  as
    53  follows:
    54    4. Where a criminal action or proceeding was terminated, as defined in
    55  paragraph  (k) of subdivision three of this section, prior to the effec-
    56  tive date of this subdivision, such criminal action or proceeding  shall

        A. 1617--B                         81

     1  be  automatically  vacated and dismissed, and all records of such action
     2  or proceeding expunged as set forth in subdivision one of this  section,
     3  and  the matter terminated in favor of the accused and deemed a nullity,
     4  because  the prior conviction is now legally invalid. OCA shall automat-
     5  ically notify the commissioner  of  the  division  of  criminal  justice
     6  services  and  the heads of all appropriate police departments and other
     7  law enforcement agencies that the prior conviction is now legally inval-
     8  id and that the action has been vacated, dismissed and expunged and thus
     9  terminated in favor of the accused. Upon receipt of notification of such
    10  vacatur, termination and expungement, all records relating to the crimi-
    11  nal action shall be expunged as described in  subdivision  one  of  this
    12  section.
    13    5.  In  situations where automatic vacatur, dismissal, expungement and
    14  record destruction is required by subdivision four of this  section  but
    15  has not taken place, or where supporting court records cannot be located
    16  or  have been destroyed, and an individual or their attorney presents to
    17  OCA fingerprint records from the New York  state  division  of  criminal
    18  justice  services  or a court disposition which indicate that a criminal
    19  action  or  proceeding  against  the  applicant  was  terminated  by   a
    20  conviction  for  section  221.05, 221.10 221.15, 221.20, 221.25, 221.30,
    21  221.35, or 221.40 of the penal law in effect prior to the effective date
    22  of this subdivision, within thirty days of notice  to  OCA,  the  action
    23  shall  forthwith  be  vacated,  dismissed,  and expunged as set forth in
    24  subdivision one of this section.
    25    6. Vacatur, dismissal and expungement as set forth in subdivision four
    26  or subdivision five of this section is without prejudice to an  individ-
    27  ual  or their attorney seeking further relief pursuant to section 440.10
    28  of this part. Nothing in this section is intended to diminish  or  abro-
    29  gate any rights or remedies otherwise available to the individual.
    30    §  22.  Subdivision 1 of section 170.56 of the criminal procedure law,
    31  as amended by chapter 360 of the laws of 1977, is  amended  to  read  as
    32  follows:
    33    1.  Upon or after arraignment in a local criminal court upon an infor-
    34  mation, a prosecutor's information or a misdemeanor complaint, where the
    35  sole  remaining  count  or  counts  charge  a violation or violations of
    36  section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
    37  law,  or  upon summons for a nuisance offense under section sixty-five-c
    38  of the alcoholic beverage control law and before the entry of a plea  of
    39  guilty  thereto  or  commencement  of   a trial thereof, the court, upon
    40  motion of a defendant, may order that all proceedings be  suspended  and
    41  the  action  adjourned  in contemplation of dismissal, or upon a finding
    42  that adjournment would not be necessary or appropriate and  the  setting
    43  forth  in  the  record  of the reasons for such findings, may dismiss in
    44  furtherance of justice the  accusatory  instrument;  provided,  however,
    45  that  the  court  may  not  order  such  adjournment in contemplation of
    46  dismissal or dismiss the accusatory instrument if: (a) the defendant has
    47  previously been granted such adjournment in contemplation of  dismissal,
    48  or  (b) the defendant has previously been granted a dismissal under this
    49  section, or (c) the defendant  has  previously  been  convicted  of  any
    50  offense involving controlled substances, or (d) the defendant has previ-
    51  ously  been  convicted  of  a  crime  and the district attorney does not
    52  consent or (e) the defendant has previously been adjudicated a  youthful
    53  offender on the basis of any act or acts involving controlled substances
    54  and the district attorney does not consent.  Notwithstanding the limita-
    55  tions  set  forth  in  this  subdivision,  the  court may order that all
    56  proceedings be suspended and the action adjourned  in  contemplation  of

        A. 1617--B                         82

     1  dismissal  based  upon  a  finding  of  exceptional  circumstances.  For
     2  purposes of this  subdivision,  exceptional  circumstances  exist  when,
     3  regardless  of the ultimate disposition of the case, the entry of a plea
     4  of guilty is likely to result in severe or ongoing consequences, includ-
     5  ing, but not limited to, potential or actual immigration consequences.
     6    § 23. Paragraph (j) of subdivision 1 of section 440.10 of the criminal
     7  procedure  law, as amended by section 2 of part MMM of chapter 59 of the
     8  laws of 2019, is amended and a new paragraph (k) is  added  to  read  as
     9  follows:
    10    (j)  The judgment is a conviction for a class A or unclassified misde-
    11  meanor entered prior to the effective date of this paragraph and  satis-
    12  fies  the ground prescribed in paragraph (h) of this subdivision.  There
    13  shall be a rebuttable presumption that a conviction by plea to  such  an
    14  offense  was  not  knowing,  voluntary and intelligent, based on ongoing
    15  collateral  consequences,  including  potential  or  actual  immigration
    16  consequences,  and  there  shall  be  a  rebuttable  presumption  that a
    17  conviction by verdict constitutes cruel  and  unusual  punishment  under
    18  section  five  of  article  one  of the state constitution based on such
    19  consequences[.]; or
    20    (k) if pertinent, such relief is available  notwithstanding  that  the
    21  judgment  was for a violation of section 221.05, 221.10, 221.15, 221.20,
    22  221.25, 221.30, 221.35, or 221.40 of the penal law in  effect  prior  to
    23  the  effective  date of this paragraph and that the underlying action or
    24  proceeding has already been vacated, dismissed and expunged pursuant  to
    25  subdivision  four  or subdivision five of section 160.50 of this chapter
    26  in which case the court shall presume that a conviction by  plea  for  a
    27  violation  of  the aforementioned sections of the then penal law was not
    28  knowing, voluntary and intelligent,  if  it  has  ongoing  consequences,
    29  including  but  not  limited  to, potential or actual immigration conse-
    30  quences, and shall presume that a conviction by verdict of the aforemen-
    31  tioned sections of the then penal  law  constitutes  cruel  and  unusual
    32  punishment  under  the  state constitution, based on those consequences.
    33  The prosecution may rebut these presumptions.
    34    § 24. The criminal procedure law is amended by adding  a  new  section
    35  440.46-a to read as follows:
    36  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    37              offenses.
    38    1.  Where  a  person is currently serving a sentence for a conviction,
    39  whether by verdict or by open or negotiated plea,  who  would  not  have
    40  been  guilty  of an offense after the effective date of this section had
    41  this section been in effect at the time of their conviction, the  office
    42  of  court administration shall automatically vacate, dismiss and expunge
    43  such conviction pursuant to subdivision four of section 160.50  of  this
    44  part and immediately notify the New York state department of corrections
    45  and  community  supervision  and local jails, which entities shall imme-
    46  diately effectuate the appropriate relief. The office of court  adminis-
    47  tration  shall  likewise  automatically  notify the division of criminal
    48  justice services and any police department and law  enforcement  agency,
    49  which  division, department or agency must immediately destroy appurten-
    50  ant records as set forth in subdivision four of section 160.50  of  this
    51  part.
    52    2. (a) A person currently serving a sentence for a conviction, whether
    53  by  verdict or by open or negotiated plea, who would have been guilty of
    54  a lesser offense after the effective  date  of  this  section  had  this
    55  section  been in effect at the time of their conviction may petition for
    56  a recall of sentence before the trial court that entered the judgment of

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     1  conviction in their case to  request  resentencing  in  accordance  with
     2  article two hundred twenty-two of the penal law.
     3    (b)  Upon  receiving a motion under paragraph (a) of this subdivision,
     4  the court shall presume the movant satisfies the criteria in such  para-
     5  graph  (a)  unless  the  party  opposing  the motion proves by clear and
     6  convincing evidence that the movant does not satisfy  the  criteria.  If
     7  the  movant satisfies the criteria in paragraph (a) of this subdivision,
     8  the court shall grant the motion to resentence.
     9    3. Under no circumstances may resentencing under this  section  result
    10  in  the  imposition  of a term longer than the original sentence, or the
    11  reinstatement of charges dismissed pursuant to a negotiated plea  agree-
    12  ment.
    13    4. (a) A person who has completed his or her sentence for a conviction
    14  under the former article two hundred twenty-one of the penal law, wheth-
    15  er  by trial or open or negotiated plea, who would have been guilty of a
    16  lesser offense on and after the effective date of this section had  this
    17  section been in effect at the time of his or her conviction, may file an
    18  application  before  the  trial  court  that  entered  the  judgment  of
    19  conviction in his or her case to have the  conviction  redesignated  (or
    20  "reclassified"),  in  accordance  with article two hundred twenty-two of
    21  the penal law.
    22    (b) Upon receiving a motion under paragraph (a) of  this  subdivision,
    23  the  court  shall presume the movant satisfies the criteria in paragraph
    24  (a) of this subdivision unless the party opposing the motion  proves  by
    25  clear  and  convincing  evidence  that  the  movant does not satisfy the
    26  criteria. If the movant satisfies the criteria in paragraph (a) of  this
    27  subdivision,  the  court  shall  grant  the  motion  to  redesignate (or
    28  "reclassify") the conviction.
    29    5. (a) If the court that originally sentenced the movant is not avail-
    30  able, the presiding judge shall designate another judge to rule  on  the
    31  petition or application.
    32    (b)  Unless  requested by the movant, no hearing is necessary to grant
    33  an application filed under subdivision two or four of this section.
    34    (c) Any felony conviction that is vacated and resentenced under subdi-
    35  vision two of this section or designated as a misdemeanor  or  violation
    36  under subdivision four of this section shall be considered a misdemeanor
    37  or  violation  for  all  purposes.  Any  misdemeanor  conviction that is
    38  vacated and resentenced under subdivision two of this section or  desig-
    39  nated  as  a  violation  under subdivision four of this section shall be
    40  considered a violation for all purposes.
    41    (d) Nothing in this section is intended to diminish  or  abrogate  any
    42  rights or remedies otherwise available to the petitioner or applicant.
    43    (e)  Nothing  in  this and related sections is intended to diminish or
    44  abrogate the finality of judgments in any case not  falling  within  the
    45  purview of this section.
    46    (f)  The  provisions  of  this section shall apply equally to juvenile
    47  delinquency adjudications and dispositions under  section  five  hundred
    48  one-e of the executive law if the juvenile would not have been guilty of
    49  an  offense  or  would  have  been guilty of a lesser offense under this
    50  section had this section been in effect  at  the  time  of  his  or  her
    51  conviction.
    52    (g)  The  office  of  court  administration  shall promulgate and make
    53  available all necessary forms to enable the filing of the petitions  and
    54  applications provided in this section no later than sixty days following
    55  the effective date of this section.

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     1    § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
     2  procedure  law, as amended by chapter 37 of the laws of 2014, is amended
     3  to read as follows:
     4    (c)  Criminal  possession  of  a  controlled  substance in the seventh
     5  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
     6  possession  of  a controlled substance in the fifth degree as defined in
     7  section 220.06 of the penal law, criminal  possession  of  a  controlled
     8  substance in the fourth degree as defined in section 220.09 of the penal
     9  law,  criminal  possession of a controlled substance in the third degree
    10  as defined in section 220.16 of the penal law, criminal possession of  a
    11  controlled  substance  in the second degree as defined in section 220.18
    12  of the penal law, criminal possession of a controlled substance  in  the
    13  first  degree  as  defined  in section 220.21 of the penal law, criminal
    14  sale of a controlled substance in the fifth degree as defined in section
    15  220.31 of the penal law, criminal sale of a controlled substance in  the
    16  fourth  degree  as  defined in section 220.34 of the penal law, criminal
    17  sale of a controlled substance in the third degree as defined in section
    18  220.39 of the penal law, criminal sale of a controlled substance in  the
    19  second  degree  as  defined in section 220.41 of the penal law, criminal
    20  sale of a controlled substance in the first degree as defined in section
    21  220.43 of the penal law, criminally possessing a  hypodermic  instrument
    22  as  defined  in  section  220.45  of  the  penal law, criminal sale of a
    23  prescription for a controlled substance or a controlled substance  by  a
    24  practitioner  or  pharmacist  as  defined in section 220.65 of the penal
    25  law, criminal possession of methamphetamine  manufacturing  material  in
    26  the  second degree as defined in section 220.70 of the penal law, crimi-
    27  nal possession of methamphetamine manufacturing material  in  the  first
    28  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
    29  possession of precursors of methamphetamine as defined in section 220.72
    30  of the penal law, unlawful manufacture of methamphetamine in  the  third
    31  degree  as defined in section 220.73 of the penal law, unlawful manufac-
    32  ture of methamphetamine in the  second  degree  as  defined  in  section
    33  220.74  of the penal law, unlawful manufacture of methamphetamine in the
    34  first degree as defined in section 220.75 of  the  penal  law,  unlawful
    35  disposal  of  methamphetamine  laboratory material as defined in section
    36  220.76 of the penal law, operating as a major trafficker as  defined  in
    37  section  220.77  of  the penal law, [criminal possession of marihuana in
    38  the first degree as defined in section 221.30 of the penal law, criminal
    39  sale of marihuana in the first degree as defined in  section  221.55  of
    40  the  penal  law,]  promoting gambling in the second degree as defined in
    41  section 225.05 of the penal law, promoting gambling in the first  degree
    42  as  defined  in  section 225.10 of the penal law, possession of gambling
    43  records in the second degree as defined in section 225.15 of  the  penal
    44  law,  possession  of  gambling records in the first degree as defined in
    45  section 225.20 of the penal law, and possession of a gambling device  as
    46  defined in section 225.30 of the penal law;
    47    § 26. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
    48  9  of  section  1310 of the civil practice law and rules, paragraphs (b)
    49  and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
    50  and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
    51  are amended to read as follows:
    52    (b) on three or more occasions, engaging  in  conduct  constituting  a
    53  violation  of  any  of  the  felonies defined in section 220.09, 220.16,
    54  220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] or 220.43 [or  221.55]
    55  of  the  penal law, which violations do not constitute a single criminal
    56  offense as defined in subdivision one of section 40.10 of  the  criminal

        A. 1617--B                         85

     1  procedure law, or a single criminal transaction, as defined in paragraph
     2  (a)  of  subdivision two of section 40.10 of the criminal procedure law,
     3  and at least one of which resulted in a conviction of such  offense,  or
     4  where  the  accusatory  instrument charges one or more of such felonies,
     5  conviction upon a plea of guilty to a felony  for  which  such  plea  is
     6  otherwise authorized by law; or
     7    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
     8  220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
     9  nal  defendant  for  a violation of section 221.30 of the penal law,] or
    10  where the accusatory instrument charges any such felony, conviction upon
    11  a plea of guilty to a felony for which the plea is otherwise  authorized
    12  by  law,  together with evidence which: (i) provides substantial indicia
    13  that the defendant used the real property  to  engage  in  a  continual,
    14  ongoing  course  of  conduct involving the unlawful mixing, compounding,
    15  manufacturing, warehousing, or packaging of  controlled  substances  [or
    16  where  the  conviction is for a violation of section 221.30 of the penal
    17  law, marijuana,] as part of an illegal trade or business for  gain;  and
    18  (ii) establishes, where the conviction is for possession of a controlled
    19  substance  [or where the conviction is for a violation of section 221.30
    20  of the penal law, marijuana], that such possession was with  the  intent
    21  to sell it.
    22    [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
    23  article two hundred twenty or section 221.30  or  221.55  of  the  penal
    24  law.]
    25    9.  "Criminal defendant" means a person who has criminal liability for
    26  a crime defined in [subdivisions] subdivision five [and six  hereof]  of
    27  this  section.  For  purposes  of  this  article,  a person has criminal
    28  liability when [(a)] he has been convicted of a post-conviction  forfei-
    29  ture  crime[, or (b) the claiming authority proves by clear and convinc-
    30  ing evidence that such person has committed an act in violation of arti-
    31  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
    32    § 27. Subdivision 13 of section 89-f of the general business  law,  as
    33  added by chapter 336 of the laws of 1992, is amended to read as follows:
    34    13.  "Serious  offense"  shall  mean any felony involving the offenses
    35  enumerated in the closing paragraph  of  this  subdivision;  a  criminal
    36  solicitation  of  or a conspiracy to commit or an attempt to commit or a
    37  criminal facilitation of a felony involving the offenses  enumerated  in
    38  the  closing paragraph of this subdivision, which criminal solicitation,
    39  conspiracy, attempt or criminal facilitation itself constitutes a felony
    40  or any offense in any other jurisdiction  which  if  committed  in  this
    41  state  would  constitute a felony; any offense in any other jurisdiction
    42  which if committed in this state would constitute a felony provided that
    43  for the purposes of this article, none of the following shall be consid-
    44  ered criminal convictions or reported as  such:  (i)  a  conviction  for
    45  which an executive pardon has been issued pursuant to the executive law;
    46  (ii)  a  conviction  which  has  been vacated and replaced by a youthful
    47  offender finding pursuant to article seven hundred twenty of the  crimi-
    48  nal  procedure  law,  or  the  applicable provisions of law of any other
    49  jurisdiction; or (iii) a conviction  the  records  of  which  have  been
    50  sealed  pursuant  to the applicable provisions of the laws of this state
    51  or of any other jurisdiction; and (iv)  a  conviction  for  which  other
    52  evidence  of successful rehabilitation to remove the disability has been
    53  issued.
    54    Felonies involving: assault, aggravated assault and reckless endanger-
    55  ment pursuant to article one  hundred  twenty;  vehicular  manslaughter,
    56  manslaughter and murder pursuant to article one hundred twenty-five; sex

        A. 1617--B                         86

     1  offenses  pursuant to article one hundred thirty; unlawful imprisonment,
     2  kidnapping or coercion pursuant  to  article  one  hundred  thirty-five;
     3  criminal  trespass  and  burglary pursuant to article one hundred forty;
     4  criminal  mischief,  criminal  tampering  and  tampering with a consumer
     5  product pursuant to article one hundred forty-five;  arson  pursuant  to
     6  article one hundred fifty; larceny and offenses involving theft pursuant
     7  to article one hundred fifty-five; offenses involving computers pursuant
     8  to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
     9  hundred sixty; criminal possession of stolen property pursuant to  arti-
    10  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
    11  article one hundred seventy; involving false written statements pursuant
    12  to article one hundred seventy-five; commercial bribing  and  commercial
    13  bribe  receiving pursuant to article one hundred eighty; criminal imper-
    14  sonation and scheme to defraud pursuant to article one  hundred  ninety;
    15  bribery involving public servants and related offenses pursuant to arti-
    16  cle  two  hundred;  perjury and related offenses pursuant to article two
    17  hundred ten; tampering with a witness, intimidating a victim or  witness
    18  and  tampering  with  physical  evidence pursuant to article two hundred
    19  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
    20  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    21  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    22  220.41,  220.43  and  220.44;  [criminal] unlicensed sale of [marijuana]
    23  cannabis in the first degree pursuant to [sections  221.45,  221.50  and
    24  221.55]  section 222.30; riot in the first degree, aggravated harassment
    25  in the first degree, criminal nuisance in the first degree  and  falsely
    26  reporting  an incident in the second or first degree pursuant to article
    27  two hundred forty; and crimes against public safety pursuant to  article
    28  two hundred sixty-five of the penal law.
    29    §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
    30  business law is REPEALED.
    31    § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
    32  business  law, as amended by chapter 812 of the laws of 1980, is amended
    33  to read as follows:
    34    (h) Objects, used or designed for the purpose of ingesting,  inhaling,
    35  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
    36  into the human body.
    37    § 30. Subdivision 7 of section 995 of the executive law, as amended by
    38  chapter 19 of the laws of 2012, is amended to read as follows:
    39    7.  "Designated  offender"  means  a  person  convicted  of any felony
    40  defined in any chapter of the laws  of  the  state  or  any  misdemeanor
    41  defined  in  the  penal  law  [except that where the person is convicted
    42  under section 221.10 of the penal law, only  a  person  convicted  under
    43  subdivision two of such section, or a person convicted under subdivision
    44  one  of  such  section  who  stands previously convicted of any crime as
    45  defined in subdivision six of section 10.00 of the penal law].
    46    § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
    47  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    48  56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
    49  laws of 1990, are amended to read as follows:
    50    (b) three or more violations of any of the felonies defined in section
    51  220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
    52  220.43[,] or 220.77[, or 221.55] of this chapter,  which  violations  do
    53  not  constitute  a single criminal offense as defined in subdivision one
    54  of section 40.10 of the criminal procedure law,  or  a  single  criminal
    55  transaction,  as  defined in paragraph (a) of subdivision two of section
    56  40.10 of the criminal procedure law, and at least one of which  resulted

        A. 1617--B                         87

     1  in  a  conviction  of  such  offense, or where the accusatory instrument
     2  charges one or more of such felonies, conviction upon a plea  of  guilty
     3  to a felony for which such plea is otherwise authorized by law; or
     4    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
     5  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
     6  accusatory instrument charges any such felony, conviction upon a plea of
     7  guilty  to  a  felony for which the plea is otherwise authorized by law,
     8  together with evidence which: (i) provides substantial indicia that  the
     9  defendant  used  the  real  property  to  engage in a continual, ongoing
    10  course of conduct involving the unlawful mixing,  compounding,  manufac-
    11  turing, warehousing, or packaging of controlled substances [or where the
    12  conviction  is  for a violation of section 221.30 of this chapter, mari-
    13  juana] as part of an illegal trade or business for gain; and (ii) estab-
    14  lishes, where the conviction is for possession of a controlled substance
    15  [or where the conviction is for a violation of section  221.30  of  this
    16  chapter,  marijuana],  that  such possession was with the intent to sell
    17  it.
    18    § 32. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
    19  and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
    20  amended to read as follows:
    21    (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
    22  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    23  of  this  section  that  result in disqualification for a period of five
    24  years shall include a conviction under sections 100.10, 105.13,  115.05,
    25  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    26  125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
    27  140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
    28  220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
    29  230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
    30  235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
    31  section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
    32  265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
    33  the  aforesaid  offenses  under  section 110.00 of the penal law, or any
    34  similar offenses committed under a former section of the penal  law,  or
    35  any  offenses  committed  under  a former section of the penal law which
    36  would constitute violations of the aforesaid sections of the penal  law,
    37  or  any  offenses  committed  outside  this state which would constitute
    38  violations of the aforesaid sections of the penal law.
    39    § 33. The opening paragraph of  paragraph  (a)  of  subdivision  2  of
    40  section  1194  of the vehicle and traffic law, as amended by chapter 196
    41  of the laws of 1996, is amended to read as follows:
    42    When authorized. Any person who operates a motor vehicle in this state
    43  shall be deemed to have given consent to a chemical test of one or  more
    44  of  the  following:    breath,  blood[,]  or urine[, or saliva,] for the
    45  purpose of determining the alcoholic and/or  drug  content,  other  than
    46  cannabis  content  including  but  not  limited  to tetrahydrocannabinol
    47  content, of the blood provided that such test is administered by  or  at
    48  the  direction  of  a  police officer with respect to a chemical test of
    49  breath, urine [or saliva] or, with respect to a chemical test of  blood,
    50  at the direction of a police officer:
    51    §  34. The article heading of article 20-B of the tax law, as added by
    52  chapter 90 of the laws of 2014, is amended to read as follows:
    53                                 ARTICLE 20-B
    54                 EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS

        A. 1617--B                         88

     1    § 35. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
     2  section  3  of  part XX of chapter 59 of the laws of 2019, is amended to
     3  read as follows:
     4    1.  All  taxes,  interest, penalties and fees collected or received by
     5  the commissioner or the commissioner's duly authorized agent under arti-
     6  cles nine (except section one hundred eighty-two-a thereof and except as
     7  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
     8  twelve-A  (except  as  otherwise provided in section two hundred eighty-
     9  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    10  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    11  (except as otherwise provided in section four hundred eighty-two  there-
    12  of),  twenty-B, twenty-C, twenty-D, twenty-one, twenty-two, twenty-four,
    13  twenty-six, twenty-eight (except as otherwise provided in section eleven
    14  hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
    15  nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
    16  hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
    17  chapter  shall  be  deposited daily in one account with such responsible
    18  banks, banking houses or trust companies as may  be  designated  by  the
    19  comptroller,  to  the  credit of the comptroller. Such an account may be
    20  established in one or more of such depositories. Such deposits shall  be
    21  kept  separate  and  apart from all other money in the possession of the
    22  comptroller. The comptroller shall require adequate  security  from  all
    23  such depositories. Of the total revenue collected or received under such
    24  articles  of  this  chapter,  the  comptroller shall retain in the comp-
    25  troller's hands such amount as the  commissioner  may  determine  to  be
    26  necessary  for  refunds  or  reimbursements  under such articles of this
    27  chapter out of which amount the comptroller shall  pay  any  refunds  or
    28  reimbursements to which taxpayers shall be entitled under the provisions
    29  of  such  articles of this chapter. The commissioner and the comptroller
    30  shall maintain a system  of  accounts  showing  the  amount  of  revenue
    31  collected  or  received from each of the taxes imposed by such articles.
    32  The comptroller, after reserving the  amount  to  pay  such  refunds  or
    33  reimbursements,  shall,  on  or  before the tenth day of each month, pay
    34  into the state treasury to the credit of the general  fund  all  revenue
    35  deposited  under  this  section  during the preceding calendar month and
    36  remaining to the comptroller's credit on the last day of such  preceding
    37  month, (i) except that the comptroller shall pay to the state department
    38  of social services that amount of overpayments of tax imposed by article
    39  twenty-two  of  this  chapter  and  the interest on such amount which is
    40  certified to the comptroller by the commissioner as  the  amount  to  be
    41  credited against past-due support pursuant to subdivision six of section
    42  one  hundred  seventy-one-c  of  this  article, (ii) and except that the
    43  comptroller shall pay to the New York state  higher  education  services
    44  corporation  and the state university of New York or the city university
    45  of New York respectively that amount of overpayments of tax  imposed  by
    46  article twenty-two of this chapter and the interest on such amount which
    47  is  certified to the comptroller by the commissioner as the amount to be
    48  credited against the amount  of  defaults  in  repayment  of  guaranteed
    49  student loans and state university loans or city university loans pursu-
    50  ant  to subdivision five of section one hundred seventy-one-d and subdi-
    51  vision six of section one hundred seventy-one-e of this  article,  (iii)
    52  and  except further that, notwithstanding any law, the comptroller shall
    53  credit  to  the  revenue  arrearage   account,   pursuant   to   section
    54  ninety-one-a of the state finance law, that amount of overpayment of tax
    55  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
    56  or thirty-three of this chapter, and  any  interest  thereon,  which  is

        A. 1617--B                         89

     1  certified  to  the  comptroller  by the commissioner as the amount to be
     2  credited against a past-due legally enforceable debt  owed  to  a  state
     3  agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
     4  hundred seventy-one-f of this article, provided, however, he shall cred-
     5  it  to the special offset fiduciary account, pursuant to section ninety-
     6  one-c of the state finance law, any such amount creditable as a  liabil-
     7  ity  as  set  forth  in  paragraph (b) of subdivision six of section one
     8  hundred seventy-one-f of this article, (iv) and except further that  the
     9  comptroller shall pay to the city of New York that amount of overpayment
    10  of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
    11  thirty-B or thirty-three of this chapter and any interest  thereon  that
    12  is  certified to the comptroller by the commissioner as the amount to be
    13  credited against city of New York tax warrant judgment debt pursuant  to
    14  section  one  hundred  seventy-one-l  of  this  article,  (v) and except
    15  further that the comptroller shall pay to a  non-obligated  spouse  that
    16  amount of overpayment of tax imposed by article twenty-two of this chap-
    17  ter  and the interest on such amount which has been credited pursuant to
    18  section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
    19  hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
    20  ty-one-l of this article and which is certified to  the  comptroller  by
    21  the commissioner as the amount due such non-obligated spouse pursuant to
    22  paragraph six of subsection (b) of section six hundred fifty-one of this
    23  chapter;  and  (vi) the comptroller shall deduct a like amount which the
    24  comptroller shall pay into the treasury to the  credit  of  the  general
    25  fund  from  amounts  subsequently  payable  to  the department of social
    26  services, the state university of New York, the city university  of  New
    27  York,  or  the  higher  education  services  corporation, or the revenue
    28  arrearage account  or  special  offset  fiduciary  account  pursuant  to
    29  section  ninety-one-a  or  ninety-one-c of the state finance law, as the
    30  case may be, whichever had been credited the amount originally  withheld
    31  from  such  overpayment,  and  (vii)  with respect to amounts originally
    32  withheld from such overpayment pursuant to section one hundred  seventy-
    33  one-l  of this article and paid to the city of New York, the comptroller
    34  shall collect a like amount from the city of New York.
    35    § 36. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
    36  section  4  of  part XX of chapter 59 of the laws of 2019, is amended to
    37  read as follows:
    38    1. All taxes, interest, penalties and fees collected  or  received  by
    39  the commissioner or the commissioner's duly authorized agent under arti-
    40  cles nine (except section one hundred eighty-two-a thereof and except as
    41  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    42  twelve-A (except as otherwise provided in section  two  hundred  eighty-
    43  four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
    44  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    45  (except  as otherwise provided in section four hundred eighty-two there-
    46  of), twenty-C, twenty-D, twenty-one,  twenty-two,  twenty-four,  twenty-
    47  six,  twenty-eight  (except  as  otherwise  provided  in  section eleven
    48  hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
    49  nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
    50  hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
    51  chapter  shall  be  deposited daily in one account with such responsible
    52  banks, banking houses or trust companies as may  be  designated  by  the
    53  comptroller,  to  the  credit of the comptroller. Such an account may be
    54  established in one or more of such depositories. Such deposits shall  be
    55  kept  separate  and  apart from all other money in the possession of the
    56  comptroller. The comptroller shall require adequate  security  from  all

        A. 1617--B                         90

     1  such depositories. Of the total revenue collected or received under such
     2  articles  of  this  chapter,  the  comptroller shall retain in the comp-
     3  troller's hands such amount as the  commissioner  may  determine  to  be
     4  necessary  for  refunds  or  reimbursements  under such articles of this
     5  chapter out of which amount the comptroller shall  pay  any  refunds  or
     6  reimbursements to which taxpayers shall be entitled under the provisions
     7  of  such  articles of this chapter. The commissioner and the comptroller
     8  shall maintain a system  of  accounts  showing  the  amount  of  revenue
     9  collected  or  received from each of the taxes imposed by such articles.
    10  The comptroller, after reserving the  amount  to  pay  such  refunds  or
    11  reimbursements,  shall,  on  or  before the tenth day of each month, pay
    12  into the state treasury to the credit of the general  fund  all  revenue
    13  deposited  under  this  section  during the preceding calendar month and
    14  remaining to the comptroller's credit on the last day of such  preceding
    15  month, (i) except that the comptroller shall pay to the state department
    16  of social services that amount of overpayments of tax imposed by article
    17  twenty-two  of  this  chapter  and  the interest on such amount which is
    18  certified to the comptroller by the commissioner as  the  amount  to  be
    19  credited against past-due support pursuant to subdivision six of section
    20  one  hundred  seventy-one-c  of  this  article, (ii) and except that the
    21  comptroller shall pay to the New York state  higher  education  services
    22  corporation  and the state university of New York or the city university
    23  of New York respectively that amount of overpayments of tax  imposed  by
    24  article twenty-two of this chapter and the interest on such amount which
    25  is  certified to the comptroller by the commissioner as the amount to be
    26  credited against the amount  of  defaults  in  repayment  of  guaranteed
    27  student loans and state university loans or city university loans pursu-
    28  ant  to subdivision five of section one hundred seventy-one-d and subdi-
    29  vision six of section one hundred seventy-one-e of this  article,  (iii)
    30  and  except further that, notwithstanding any law, the comptroller shall
    31  credit  to  the  revenue  arrearage   account,   pursuant   to   section
    32  ninety-one-a of the state finance law, that amount of overpayment of tax
    33  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
    34  or thirty-three of this chapter, and  any  interest  thereon,  which  is
    35  certified  to  the  comptroller  by the commissioner as the amount to be
    36  credited against a past-due legally enforceable debt  owed  to  a  state
    37  agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
    38  hundred seventy-one-f of this article, provided, however, he shall cred-
    39  it to the special offset fiduciary account, pursuant to section  ninety-
    40  one-c  of the state finance law, any such amount creditable as a liabil-
    41  ity as set forth in paragraph (b) of  subdivision  six  of  section  one
    42  hundred  seventy-one-f of this article, (iv) and except further that the
    43  comptroller shall pay to the city of New York that amount of overpayment
    44  of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
    45  thirty-B  or  thirty-three of this chapter and any interest thereon that
    46  is certified to the comptroller by the commissioner as the amount to  be
    47  credited  against city of New York tax warrant judgment debt pursuant to
    48  section one hundred  seventy-one-l  of  this  article,  (v)  and  except
    49  further  that  the  comptroller shall pay to a non-obligated spouse that
    50  amount of overpayment of tax imposed by article twenty-two of this chap-
    51  ter and the interest on such amount which has been credited pursuant  to
    52  section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
    53  hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
    54  ty-one-l  of  this  article and which is certified to the comptroller by
    55  the commissioner as the amount due such non-obligated spouse pursuant to
    56  paragraph six of subsection (b) of section six hundred fifty-one of this

        A. 1617--B                         91

     1  chapter; and (vi) the comptroller shall deduct a like amount  which  the
     2  comptroller  shall  pay  into  the treasury to the credit of the general
     3  fund from amounts subsequently  payable  to  the  department  of  social
     4  services,  the  state university of New York, the city university of New
     5  York, or the higher  education  services  corporation,  or  the  revenue
     6  arrearage  account  or  special  offset  fiduciary  account  pursuant to
     7  section ninety-one-a or ninety-one-c of the state finance  law,  as  the
     8  case  may be, whichever had been credited the amount originally withheld
     9  from such overpayment, and (vii)  with  respect  to  amounts  originally
    10  withheld  from such overpayment pursuant to section one hundred seventy-
    11  one-l of this article and paid to the city of New York, the  comptroller
    12  shall collect a like amount from the city of New York.
    13    §  37.  Section 490 of the tax law, as added by chapter 90 of the laws
    14  of 2014, is amended to read as follows:
    15    § 490. [Definitions] Excise tax on medical  cannabis.    1.  (a)  [All
    16  definitions  of terms applicable to title five-A of article thirty-three
    17  of the public health law shall apply to this article.] For  purposes  of
    18  this  article,  the terms "medical cannabis," "registered organization,"
    19  "certified patient," and "designated  caregiver"  shall  have  the  same
    20  definitions as in section three of the cannabis law.
    21    (b)  As used in this section, where not otherwise specifically defined
    22  and unless a different meaning is clearly required "gross receipt" means
    23  the amount received in or by reason of any sale, conditional  or  other-
    24  wise, of medical [marihuana] cannabis or in or by reason of the furnish-
    25  ing of medical [marihuana] cannabis from the sale of medical [marihuana]
    26  cannabis provided by a registered organization to a certified patient or
    27  designated caregiver.  Gross receipt is expressed in money, whether paid
    28  in  cash,  credit or property of any kind or nature, and shall be deter-
    29  mined without any deduction therefrom on account  of  the  cost  of  the
    30  service  sold  or the cost of materials, labor or services used or other
    31  costs, interest or discount paid,  or  any  other  expenses  whatsoever.
    32  "Amount received" for the purpose of the definition of gross receipt, as
    33  the term gross receipt is used throughout this article, means the amount
    34  charged for the provision of medical [marihuana] cannabis.
    35    2.  There  is  hereby imposed an excise tax on the gross receipts from
    36  the sale of medical [marihuana] cannabis by a registered organization to
    37  a certified patient or designated caregiver, to be paid  by  the  regis-
    38  tered  organization,  at  the  rate of seven percent. The tax imposed by
    39  this article shall be charged against and  be  paid  by  the  registered
    40  organization and shall not be added as a separate charge or line item on
    41  any sales slip, invoice, receipt or other statement or memorandum of the
    42  price given to the retail customer.
    43    3.  The  commissioner  may  make,  adopt and amend rules, regulations,
    44  procedures and forms necessary for the  proper  administration  of  this
    45  article.
    46    4. Every registered organization that makes sales of medical [marihua-
    47  na]  cannabis  subject  to  the tax imposed by this article shall, on or
    48  before the twentieth date of each month, file with  the  commissioner  a
    49  return  on  forms  to  be  prescribed  by  the commissioner, showing its
    50  receipts from the retail sale of medical [marihuana] cannabis during the
    51  preceding calendar month and the amount of tax due thereon. Such returns
    52  shall contain such further information as the commissioner may  require.
    53  Every  registered  organization  required  to  file  a return under this
    54  section shall, at the time of filing such return, pay to the commission-
    55  er the total amount of tax due on its retail sales of medical  [marihua-
    56  na]  cannabis  for the period covered by such return. If a return is not

        A. 1617--B                         92

     1  filed when due, the tax shall be due on the day on which the  return  is
     2  required to be filed.
     3    5.  Whenever the commissioner shall determine that any moneys received
     4  under the provisions of this article were paid in error,  he  may  cause
     5  the  same  to  be refunded, with interest, in accordance with such rules
     6  and regulations as he may prescribe, except that no  interest  shall  be
     7  allowed  or  paid  if  the amount thereof would be less than one dollar.
     8  Such interest shall be at the overpayment rate set by  the  commissioner
     9  pursuant  to subdivision twenty-sixth of section one hundred seventy-one
    10  of this chapter, or if no rate is set, at the rate of  six  percent  per
    11  annum,  from  the  date when the tax, penalty or interest to be refunded
    12  was paid to a date preceding the date of the refund check  by  not  more
    13  than  thirty  days.  Provided,  however,  that  for the purposes of this
    14  subdivision, any tax paid before the last day prescribed for its payment
    15  shall be deemed to have been paid on such last day. Such moneys received
    16  under the provisions of this article which the commissioner shall deter-
    17  mine were paid in error, may be refunded out of funds in the custody  of
    18  the  comptroller  to  the  credit  of such taxes provided an application
    19  therefor is filed with the commissioner within two years from  the  time
    20  the erroneous payment was made.
    21    6.  The provisions of article twenty-seven of this chapter shall apply
    22  to the tax imposed by this article in the same manner and with the  same
    23  force  and  effect  as if the language of such article had been incorpo-
    24  rated in full into this section and had expressly referred  to  the  tax
    25  imposed by this article, except to the extent that any provision of such
    26  article  is  either  inconsistent with a provision of this article or is
    27  not relevant to this article.
    28    7. All taxes, interest and penalties  collected  or  received  by  the
    29  commissioner  under  this  article  shall  be  deposited and disposed of
    30  pursuant to the provisions of section one hundred seventy-one-a of  this
    31  chapter,  provided that an amount equal to one hundred percent collected
    32  under this article less any amount determined by the commissioner to  be
    33  reserved  by the comptroller for refunds or reimbursements shall be paid
    34  by the comptroller to the credit of  the  medical  [marihuana]  cannabis
    35  trust  fund  established  by  section eighty-nine-h of the state finance
    36  law.
    37    8. A registered organization that dispenses medical [marihuana] canna-
    38  bis shall provide to the department information  on  where  the  medical
    39  [marihuana]  cannabis  was  dispensed  and where the medical [marihuana]
    40  cannabis was manufactured. A registered organization that obtains [mari-
    41  huana] cannabis from another registered organization shall  obtain  from
    42  such  registered organization information on where the medical [marihua-
    43  na] cannabis was manufactured.
    44    § 38. Section 491 of the tax law, as added by chapter 90 of  the  laws
    45  of  2014, subdivision 1 as amended by section 1 of part II of chapter 60
    46  of the laws of 2016, is amended to read as follows:
    47    § 491. Returns to be secret. 1. Except in accordance with proper judi-
    48  cial order or as in this section or otherwise provided by law, it  shall
    49  be unlawful for the commissioner, any officer or employee of the depart-
    50  ment, or any officer or person who, pursuant to this section, is permit-
    51  ted  to inspect any return or report or to whom a copy, an abstract or a
    52  portion of any return or report is furnished, or to whom any information
    53  contained in any return or report is furnished, or any person engaged or
    54  retained by such department on an  independent  contract  basis  or  any
    55  person  who  in  any  manner  may acquire knowledge of the contents of a
    56  return or report filed pursuant to this article to divulge or make known

        A. 1617--B                         93

     1  in any manner the contents or any  other  information  relating  to  the
     2  business of a distributor, owner or other person contained in any return
     3  or  report  required  under  this article. The officers charged with the
     4  custody  of such returns or reports shall not be required to produce any
     5  of them or evidence of anything contained  in  them  in  any  action  or
     6  proceeding  in  any  court,  except  on  behalf of the state, [the state
     7  department of health] office of cannabis management, or the commissioner
     8  in an action or proceeding under the provisions of this  chapter  or  on
     9  behalf  of the state or the commissioner in any other action or proceed-
    10  ing involving the collection of a tax due under this  chapter  to  which
    11  the  state  or the commissioner is a party or a claimant or on behalf of
    12  any party to any action or proceeding under the provisions of this arti-
    13  cle, when the returns or the reports or  the  facts  shown  thereby  are
    14  directly  involved  in  such  action  or  proceeding, or in an action or
    15  proceeding relating to the regulation or taxation of medical [marihuana]
    16  cannabis on behalf of officers  to  whom  information  shall  have  been
    17  supplied as provided in subdivision two of this section, in any of which
    18  events  the  court  may  require  the  production  of,  and may admit in
    19  evidence so much of said returns or reports or of the facts shown there-
    20  by as are pertinent to the action or proceeding  and  no  more.  Nothing
    21  herein  shall  be  construed to prohibit the commissioner, in his or her
    22  discretion, from allowing the inspection or delivery of a certified copy
    23  of any return or report filed under this article or of  any  information
    24  contained  in any such return or report by or to a duly authorized offi-
    25  cer or employee of the [state department of health] office  of  cannabis
    26  management;  or  by  or to the attorney general or other legal represen-
    27  tatives of the state when an  action  shall  have  been  recommended  or
    28  commenced  pursuant  to this chapter in which such returns or reports or
    29  the facts shown thereby are directly involved; or the inspection of  the
    30  returns  or  reports  required  under this article by the comptroller or
    31  duly designated officer or employee of the state department of audit and
    32  control, for purposes of the audit of a refund of  any  tax  paid  by  a
    33  registered  organization  or  other  person  under  this article; nor to
    34  prohibit the delivery to a registered organization, or a duly authorized
    35  representative of such registered organization, a certified copy of  any
    36  return  or report filed by such registered organization pursuant to this
    37  article, nor to prohibit the publication of statistics so classified  as
    38  to  prevent  the identification of particular returns or reports and the
    39  items thereof. This section shall also not be construed to prohibit  the
    40  disclosure,  for  tax  administration  purposes,  to the division of the
    41  budget and the office of the state comptroller,  of  information  aggre-
    42  gated  from the returns filed by all the registered organizations making
    43  sales of, or manufacturing, medical [marihuana] cannabis in a  specified
    44  county,  whether  the  number of such registered organizations is one or
    45  more. Provided further that,  notwithstanding  the  provisions  of  this
    46  subdivision,  the commissioner may, in his or her discretion, permit the
    47  proper officer of any county entitled to receive an allocation,  follow-
    48  ing  appropriation  by  the  legislature,  pursuant  to this article and
    49  section eighty-nine-h of the state finance law, or the authorized repre-
    50  sentative of such officer, to inspect any return filed under this  arti-
    51  cle,  or  may furnish to such officer or the officer's authorized repre-
    52  sentative an abstract of any such return or supply such officer or  such
    53  representative with information concerning an item contained in any such
    54  return,  or  disclosed  by any investigation of tax liability under this
    55  article.

        A. 1617--B                         94

     1    2. The commissioner, in his or her discretion  and  pursuant  to  such
     2  rules  and  regulations  as he or she may adopt, may permit [the commis-
     3  sioner of internal revenue of the United  States,  or]  the  appropriate
     4  officers of any other state which regulates or taxes medical [marihuana]
     5  cannabis,  or  the duly authorized representatives of such [commissioner
     6  or of any such] officers, to inspect returns or reports made pursuant to
     7  this article, or may furnish to such [commissioner or]  other  officers,
     8  or  duly authorized representatives, a copy of any such return or report
     9  or an abstract of the information  therein  contained,  or  any  portion
    10  thereof,  or may supply [such commissioner or] any such officers or such
    11  representatives with information relating to the business  of  a  regis-
    12  tered organization making returns or reports hereunder. The commissioner
    13  may  refuse  to  supply information pursuant to this subdivision [to the
    14  commissioner of internal revenue of the United States or] to  the  offi-
    15  cers  of  any  other state if the statutes [of the United States, or] of
    16  the state represented by such officers, do not grant substantially simi-
    17  lar privileges to the commissioner, but such refusal shall not be manda-
    18  tory. Information shall not be supplied to [the commissioner of internal
    19  revenue of the United States or] the appropriate officers of  any  other
    20  state which regulates or taxes medical [marihuana] cannabis, or the duly
    21  authorized  representatives  [of  such  commissioner  or] of any of such
    22  officers, unless such [commissioner,] officer or  other  representatives
    23  shall  agree  not to divulge or make known in any manner the information
    24  so supplied, but such officers may transmit such  information  to  their
    25  employees  or legal representatives when necessary, who in turn shall be
    26  subject to the same restrictions  as  those  hereby  imposed  upon  such
    27  [commissioner,] officer or other representatives.
    28    3. (a) Any officer or employee of the state who willfully violates the
    29  provisions  of subdivision one or two of this section shall be dismissed
    30  from office and be incapable of holding any public office in this  state
    31  for a period of five years thereafter.
    32    (b)  Cross-reference: For criminal penalties, see article thirty-seven
    33  of this chapter.
    34    § 39. The tax law is amended by adding a new article 20-C to  read  as
    35  follows:

    36                                ARTICLE 20-C
    37                     TAX ON ADULT-USE CANNABIS PRODUCTS
    38  Section 492. Definitions.
    39          493. Tax on cannabis.
    40          494. Registration and renewal.
    41          495. Returns and payment of tax.
    42          496. Returns to be kept secret.
    43    §  492. Definitions. For purposes of this article, the following defi-
    44  nitions shall apply:
    45    (a) "Cannabis" means all parts of  a  plant  of  the  genus  cannabis,
    46  whether  growing or not; the seeds thereof; the resin extracted from any
    47  part of the plant; and every compound,  manufacture,  salt,  derivative,
    48  mixture,  or  preparation of the plant, its seeds or resin. For purposes
    49  of this article, cannabis does not  include  medical  cannabis  or  hemp
    50  extract as defined in section three of the cannabis law.
    51    (b)  "Cannabis flower" means the flower of a plant of the genus canna-
    52  bis that has been harvested, dried, and cured, and prior to any process-
    53  ing whereby the  plant  material  is  transformed  into  a  concentrate,
    54  including,  but  not  limited to, concentrated cannabis, or an edible or

        A. 1617--B                         95

     1  topical product containing cannabis or concentrated cannabis  and  other
     2  ingredients. Cannabis flower excludes leaves and stem.
     3    (c)  "Cannabis  trim" means all parts of a plant of the genus cannabis
     4  other than cannabis flowers that have been harvested, dried, and  cured,
     5  and  prior  to  any processing whereby the plant material is transformed
     6  into a concentrate, including, but not limited to,  concentrated  canna-
     7  bis,  or  an  edible  or  topical  product containing cannabis and other
     8  ingredients.
     9    (d) "Cannabis product" or "adult use cannabis" means a cannabis  prod-
    10  uct  as  defined  in  section three of the cannabis law. For purposes of
    11  this article, under no circumstances shall  adult-use  cannabis  product
    12  include  medical cannabis or hemp extract as defined in section three of
    13  the cannabis law.
    14    (e) "Person" means every individual,  partnership,  limited  liability
    15  company, society, association, joint stock company, corporation, estate,
    16  receiver,  trustee,  assignee, referee, and any other person acting in a
    17  fiduciary or representative capacity, whether appointed by  a  court  or
    18  otherwise, and any combination of the foregoing.
    19    (f)  "Wholesaler"  means  any person that sells or transfers adult-use
    20  cannabis products to a retail dispensary licensed  pursuant  to  section
    21  seventy-two  of  the  cannabis law. Where the cultivator or processor is
    22  also the retail dispensary, the retail dispensary shall  be  the  whole-
    23  saler for purposes of this article.
    24    (g) "Cultivation" has the same meaning as described in subdivision two
    25  of section sixty-eight of the cannabis law.
    26    (h)  "Retail dispensary" means a dispensary licensed to sell adult-use
    27  cannabis products pursuant to section seventy-two of the cannabis law.
    28    (i) "Transfer" means  to  grant,  convey,  hand  over,  assign,  sell,
    29  exchange  or  barter,  in  any  manner  or by any means, with or without
    30  consideration.
    31    (j) "Sale" means any transfer of title, possession or  both,  exchange
    32  or  barter,  rental,  lease or license to use or consume, conditional or
    33  otherwise, in any manner or by any means whatsoever for a  consideration
    34  or any agreement therefor.
    35    (k)  "Processor"  has the same meaning as described in subdivision two
    36  of section sixty-nine of the cannabis law.
    37    § 493. Tax on cannabis. (a) There is hereby imposed and shall be  paid
    38  a  tax  on  the  cultivation of cannabis flower and cannabis trim at the
    39  rate of one dollar per dry-weight gram of cannabis  flower  and  twenty-
    40  five cents per dry-weight gram of cannabis trim. Where the wholesaler is
    41  not  the  cultivator, such tax shall be collected from the cultivator by
    42  the wholesaler at the time such flower or trim  is  transferred  to  the
    43  wholesaler.  Where  the  wholesaler is the cultivator, such tax shall be
    44  paid by the wholesaler and shall accrue at the time of sale or  transfer
    45  to a retail dispensary.  Where the cultivator is also the retail dispen-
    46  sary,  such  tax  shall  accrue  at  the  time of the sale to the retail
    47  customer.
    48    (b) In addition to the tax imposed by subdivision (a) of this section,
    49  there is hereby imposed a tax on the sale or transfer by a wholesaler to
    50  a retail dispensary of adult-use cannabis products, to be paid  by  such
    51  wholesaler.  Where the wholesaler is not the retail dispensary, such tax
    52  shall be at the rate of eighteen percent of the invoice price charged by
    53  the wholesaler to a retail dispensary, and shall accrue at the  time  of
    54  such sale. Where the wholesaler is the retail dispensary, such tax shall
    55  be  at  the  rate of eighteen percent of the price charged to the retail
    56  customer and shall accrue at the time of such sale.

        A. 1617--B                         96

     1    (c) In addition to the taxes imposed by subdivisions (a)  and  (b)  of
     2  this section, there is hereby imposed a tax on the sale or transfer by a
     3  wholesaler  to  a  retail  dispensary of adult-use cannabis products, in
     4  trust for and on account of the county in which the retail dispensary is
     5  located.  Such  tax  shall be paid by the wholesaler and shall accrue at
     6  the time of such sale.  Where the wholesaler is not the  retail  dispen-
     7  sary, such tax shall be at the rate of four percent of the invoice price
     8  charged  by  the wholesaler to a retail dispensary. Where the wholesaler
     9  is the retail dispensary, such tax shall be at the rate of four  percent
    10  of the price charged to the retail customer.
    11    (d)  Notwithstanding  any  other provision of law to the contrary, the
    12  taxes imposed by article twenty of this chapter shall not apply  to  any
    13  product subject to tax under this article.
    14    §  494.  Registration and renewal. (a) Every wholesaler must file with
    15  the commissioner a properly completed application for a  certificate  of
    16  registration  before  engaging  in  business. In order to apply for such
    17  certificate of registration, such person must first be in possession  of
    18  a  valid  license from the office of cannabis management. An application
    19  for a certificate of registration must be submitted electronically, on a
    20  form prescribed by the commissioner, and must be accompanied by  a  non-
    21  refundable  application  fee  of  six  hundred dollars. A certificate of
    22  registration shall not  be  assignable  or  transferable  and  shall  be
    23  destroyed  immediately upon such person ceasing to do business as speci-
    24  fied in such certificate, or in  the  event  that  such  business  never
    25  commenced.
    26    (b)  The commissioner shall refuse to issue a certificate of registra-
    27  tion to any applicant and shall revoke the certificate  of  registration
    28  of  any such person who does not possess a valid license from the office
    29  of cannabis management. The commissioner may refuse to issue  a  certif-
    30  icate  of  registration to any applicant where such applicant: (1) has a
    31  past-due liability as that term is defined in section one hundred seven-
    32  ty-one-v of this chapter; (2) has  had  a  certificate  of  registration
    33  under this article, a license from the office of cannabis management, or
    34  any  license or registration provided for in this chapter revoked within
    35  one year from the date on which such application was filed; (3) has been
    36  convicted of a crime provided for in this chapter within one  year  from
    37  the  date on which such application was filed of the certificate's issu-
    38  ance; (4) willfully fails to file a report or return  required  by  this
    39  article;  (5) willfully files, causes to be filed, gives or causes to be
    40  given a report, return, certificate or affidavit required by this  arti-
    41  cle  which  is  false;  or  (6) willfully fails to collect or truthfully
    42  account for or pay over any tax imposed by this article.
    43    (c) A certificate of registration shall be valid for the period speci-
    44  fied thereon, unless earlier suspended or revoked. Upon  the  expiration
    45  of  the  term  stated on a certificate of registration, such certificate
    46  shall be null and void.
    47    (d) Every holder of a certificate  of  registration  must  notify  the
    48  commissioner  of changes to any of the information stated on the certif-
    49  icate, or of changes to any information contained in the application for
    50  the certificate of registration. Such notification must be  made  on  or
    51  before  the  last  day of the month in which a change occurs and must be
    52  made electronically on a form prescribed by the commissioner.
    53    (e) Every holder of a certificate of registration under  this  article
    54  shall  be  required  to  reapply prior to such certificate's expiration,
    55  during a reapplication period  established  by  the  commissioner.  Such
    56  reapplication  period  shall  not  occur  more frequently than every two

        A. 1617--B                         97

     1  years. Such reapplication shall be subject to the same requirements  and
     2  conditions,  including  grounds  for refusal, as an initial application,
     3  including the payment of the application fee.
     4    (f)  Penalties. A person to whom adult-use cannabis products have been
     5  transferred or who sells adult-use cannabis  products  without  a  valid
     6  certificate  of registration pursuant to subdivision (a) of this section
     7  shall be subject to a penalty of five hundred dollars for each month  or
     8  part  thereof  during  which  such person continues to possess adult-use
     9  cannabis products that have been transferred to such person or who sells
    10  such products after the expiration of the first month after  which  such
    11  person  operates  without  a  valid  certificate of registration, not to
    12  exceed ten thousand dollars in the aggregate.
    13    § 495. Returns and payment of tax. (a) 1. Every wholesaler  shall,  on
    14  or  before  the twentieth day of the month, file with the commissioner a
    15  return on forms to be prescribed by the commissioner, showing the  total
    16  weight  of  cannabis flower and cannabis trim subject to tax pursuant to
    17  subdivision (a) of section four hundred ninety-three of this article and
    18  the total amount of tax due thereon in the preceding calendar month, and
    19  the total amount of tax due under  subdivisions  (b)  and  (c)  of  such
    20  section  on its sales to a retail dispensary during the preceding calen-
    21  dar month, along with such other information  as  the  commissioner  may
    22  require.  Every  person  required  to  file  a return under this section
    23  shall, at the time of filing such return, pay to  the  commissioner  the
    24  total  amount  of  tax  due  for the period covered by such return. If a
    25  return is not filed when due, the tax shall be due on the day  on  which
    26  the return is required to be filed.
    27    2.  The  wholesaler  shall  maintain  such records in such form as the
    28  commissioner may require regarding such items as: where  the  wholesaler
    29  is  not  the  cultivator, the weight of the cannabis flower and cannabis
    30  trim transferred to it by a cultivator or, where the wholesaler  is  the
    31  cultivator,  the  weight  of  such  flower  and trim produced by it; the
    32  geographic location of every retail dispensary to which it  sold  adult-
    33  use  cannabis  products; and any other record or information required by
    34  the commissioner. This information must be kept by  such  person  for  a
    35  period of three years after the return was filed.
    36    (b) The provisions of article twenty-seven of this chapter shall apply
    37  to  the tax imposed by this article in the same manner and with the same
    38  force and effect as if the language of such article  had  been  incorpo-
    39  rated  in  full  into this section and had expressly referred to the tax
    40  imposed by this article, except to the extent that any provision of such
    41  article is either inconsistent with a provision of this  article  or  is
    42  not relevant to this article.
    43    (c) 1. All taxes, interest, and penalties collected or received by the
    44  commissioner  under  this  article  shall  be  deposited and disposed of
    45  pursuant to the provisions of section one hundred seventy-one-a of  this
    46  chapter,  provided that an amount equal to one hundred percent collected
    47  under this article less any amount determined by the commissioner to  be
    48  reserved  by the comptroller for refunds or reimbursements shall be paid
    49  by the comptroller to the credit of the  cannabis  revenue  fund  estab-
    50  lished  by section ninety-nine-hh of the state finance law. Of the total
    51  revenue collected or received under this article, the comptroller  shall
    52  retain such amount as the commissioner may determine to be necessary for
    53  refunds.  The commissioner is authorized and directed to deduct from the
    54  registration fees under subdivision (a) of section four hundred  ninety-
    55  four  of  this  article,  before  deposit into the cannabis revenue fund
    56  designated by the comptroller, a reasonable amount necessary to effectu-

        A. 1617--B                         98

     1  ate refunds of appropriations of the department to reimburse the depart-
     2  ment for the costs incurred to administer, collect, and  distribute  the
     3  taxes imposed by this article.
     4    2.  Notwithstanding  the  foregoing, the commissioner shall certify to
     5  the comptroller the total amount of tax, penalty and  interest  received
     6  by  him  or  her  on  account  of  the tax imposed by subdivision (c) of
     7  section four hundred ninety-three of this article in trust  for  and  on
     8  account  of  each  county in which a retail dispensary is located. On or
     9  before the twelfth day of each month, the comptroller,  after  reserving
    10  such  refund  fund,  shall pay to the appropriate fiscal officer of each
    11  such county the taxes, penalties and interest received and certified  by
    12  the commissioner for the preceding calendar month.
    13    § 496. Returns to be kept secret. (a) Except in accordance with proper
    14  judicial  order  or  as in this section or otherwise provided by law, it
    15  shall be unlawful for the commissioner, any officer or employee  of  the
    16  department,  or  any officer or person who, pursuant to this section, is
    17  permitted to inspect any return or report or to whom a copy, an abstract
    18  or a portion of any return or report is furnished, or to whom any infor-
    19  mation contained in any return or report is furnished, or any person who
    20  in any manner may acquire knowledge of  the  contents  of  a  return  or
    21  report  filed  pursuant  to this article to divulge or make known in any
    22  manner the content or any other information related to the  business  of
    23  the  wholesaler  contained  in  any return or report required under this
    24  article. The officers charged  with  the  custody  of  such  returns  or
    25  reports  shall  not  be  required  to produce any of them or evidence of
    26  anything contained in them in any action or  proceeding  in  any  court,
    27  except on behalf of the state, the office of cannabis management, or the
    28  commissioner  in an action or proceeding involving the collection of tax
    29  due under this chapter to which the state or the commissioner is a party
    30  or a claimant or on behalf of any party  to  any  action  or  proceeding
    31  under the provisions of this article, when the returns or the reports or
    32  the facts shown thereby are directly involved in such action or proceed-
    33  ing, or in an action or proceeding related to the regulation or taxation
    34  of adult-use cannabis products on behalf of officers to whom information
    35  shall  have  been  supplied as provided in this section, in any of which
    36  events the courts may require  the  production  of,  and  may  admit  in
    37  evidence so much of said returns or reports or of the facts shown there-
    38  by  as  are  pertinent  to the action or proceeding and no more. Nothing
    39  herein shall be construed to prohibit the commissioner, in  his  or  her
    40  discretion, from allowing the inspection or delivery of a certified copy
    41  of  any  return or report filed under this article or of any information
    42  contained in any such return or report by or to a duly authorized  offi-
    43  cer  or  employee  of  the office of cannabis management or by or to the
    44  attorney general or other legal representatives of  the  state  when  an
    45  action shall have been recommended or commenced pursuant to this chapter
    46  in which such returns or reports or the facts shown thereby are directly
    47  involved;  or  the  inspection  of the returns or reports required under
    48  this article by the comptroller or duly designated officer  or  employee
    49  of  the state department of audit and control, for purposes of the audit
    50  of a refund of any tax paid by the wholesaler under this article; nor to
    51  prohibit the delivery to such person or a duly authorized representative
    52  of such person, a certified copy of any return or report filed  by  such
    53  person  pursuant  to  this  article,  nor to prohibit the publication of
    54  statistics so classified as to prevent the identification of  particular
    55  returns or reports and the items thereof. This section shall also not be
    56  construed  to  prohibit the disclosure, for tax administration purposes,

        A. 1617--B                         99

     1  to the division of the budget and the office of the  state  comptroller,
     2  of  information  aggregated  from  the  returns filed by all wholesalers
     3  purchasing and selling such products in the state, whether the number of
     4  such  persons is one or more. Provided further that, notwithstanding the
     5  provisions of this subdivision, the  commissioner  may  in  his  or  her
     6  discretion,  permit the proper officer of any county entitled to receive
     7  any distribution of the monies received on account of the tax imposed by
     8  subdivision (c) of section four hundred ninety-three of this article, or
     9  the authorized representative of such officer,  to  inspect  any  return
    10  filed  under  this  article, or may furnish to such officer or the offi-
    11  cer's authorized representative an abstract of any such return or supply
    12  such officer or  representative  with  information  concerning  an  item
    13  contained  in  any such return, or disclosed by any investigation of tax
    14  liability under this article.
    15    (b) The commissioner, in his or her discretion, may permit the  appro-
    16  priate  officers  of any other state that regulates or taxes cannabis or
    17  the duly authorized representatives of such commissioner or of any  such
    18  officers,  to  inspect returns or reports made pursuant to this article,
    19  or may furnish to the commissioner or other officer, or duly  authorized
    20  representatives,  a  copy of any such return or report or an abstract of
    21  the information therein contained, or any portion thereof, or may supply
    22  such commissioner or any such  officers  or  such  representatives  with
    23  information  relating  to the business of a wholesaler making returns or
    24  reports hereunder solely for purposes of tax administration. The commis-
    25  sioner may refuse to supply information pursuant to this subdivision  to
    26  the officers of any other state if the statutes of the state represented
    27  by  such  officers  do not grant substantially similar privileges to the
    28  commissioner, but such refusal shall not be mandatory. Information shall
    29  not be supplied to the appropriate officers of any state that  regulates
    30  or  taxes  cannabis,  or  the  duly  authorized  representatives of such
    31  commissioner or of any such officers, unless such commissioner, officer,
    32  or other representatives shall agree not to divulge or make known in any
    33  manner the information so supplied, but such officers may transmit  such
    34  information  to their employees or legal representatives when necessary,
    35  who in turn shall be subject to the same restrictions  as  those  hereby
    36  imposed upon such commissioner, officer or other representatives.
    37    (c) 1. Any officer or employee of the state who willfully violates the
    38  provisions  of subdivision (a) or (b) of this section shall be dismissed
    39  from office and be incapable of holding any public office in  the  state
    40  for a period of five years thereafter.
    41    2. For criminal penalties, see article thirty-seven of this chapter.
    42    §  40.  Subdivision  (a)  of section 1115 of the tax law is amended by
    43  adding a new paragraph 3-b to read as follows:
    44    (3-b) Adult-use cannabis products as defined by  article  twenty-C  of
    45  this chapter.
    46    § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
    47  health  law,  the  tax  law, the state finance law, the general business
    48  law, the penal law and the criminal procedure law  relating  to  medical
    49  use of marihuana, is amended to read as follows:
    50    §  12. This act shall take effect immediately [and]; provided, however
    51  that sections one, three, five, six, seven-a, eight, nine, ten and elev-
    52  en of this act shall expire and be deemed  repealed  seven  years  after
    53  such  date; provided that the amendments to section 171-a of the tax law
    54  made by section seven of this act shall take effect on the same date and
    55  in the same manner as section 54 of part A of chapter 59 of the laws  of
    56  2014  takes  effect  and  shall  not  expire and be deemed repealed; and

        A. 1617--B                         100

     1  provided, further, that the  amendments  to  subdivision  5  of  section
     2  410.91  of the criminal procedure law made by section eleven of this act
     3  shall not affect the expiration and repeal of  such  section  and  shall
     4  expire and be deemed repealed therewith.
     5    §  42.  The  office  of  cannabis management, in consultation with the
     6  division of the budget, the department  of  taxation  and  finance,  the
     7  department of health, office of alcoholism and substance abuse services,
     8  office of mental health, New York state police and the division of crim-
     9  inal  justice  services,  shall conduct a  study of the effectiveness of
    10  this act. Such study shall examine all aspects of  this  act,  including
    11  economic  and fiscal impacts, the impact on the public health and safety
    12  of New York residents and the progress made in achieving social  justice
    13  goals and toward eliminating the illegal market for cannabis products in
    14  New  York. The office shall make recommendations regarding the appropri-
    15  ate level of taxation of adult-use cannabis, as well as changes, if any,
    16  necessary to improve and protect the public health  and  safety  of  New
    17  Yorkers.  Such  study  shall  be conducted two years after the effective
    18  date of this act and shall be presented to the  governor,  the  majority
    19  leader  of  the  senate  and  the speaker of the assembly, no later than
    20  October 1, 2022.
    21    § 43. Section 102 of the alcoholic beverage control law is amended  by
    22  adding a new subdivision 8 to read as follows:
    23    8. No alcoholic beverage retail licensee shall sell cannabis, nor have
    24  or  possess  a  license or permit to sell cannabis, on the same premises
    25  where alcoholic beverages are sold.
    26    § 44. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
    27  general  obligations  law,  as added by chapter 406 of the laws of 2000,
    28  are amended to read as follows:
    29    1. "Illegal drug" means any controlled substance  [or  marijuana]  the
    30  possession  of  which  is  an offense under the public health law or the
    31  penal law.
    32    4. "Grade one violation" means  possession  of  one-quarter  ounce  or
    33  more,  but less than four ounces, or distribution of less than one ounce
    34  of an illegal drug [other than marijuana, or possession of one pound  or
    35  twenty-five  plants  or more, but less than four pounds or fifty plants,
    36  or distribution of less than one pound of marijuana].
    37    5. "Grade two violation" means possession of four ounces or more,  but
    38  less  than  eight ounces, or distribution of one ounce or more, but less
    39  than two ounces, of an illegal drug [other than marijuana, or possession
    40  of four pounds or more or fifty plants or distribution of more than  one
    41  pound but less than ten pounds of marijuana].
    42    6.  "Grade  three violation" means possession of eight ounces or more,
    43  but less than sixteen ounces, or distribution of two ounces or more, but
    44  less than four ounces, of a specified illegal  drug  [or  possession  of
    45  eight  pounds  or  more  or  seventy-five  plants or more, but less than
    46  sixteen pounds or one hundred plants, or distribution of more than  five
    47  pounds but less than ten pounds of marijuana].
    48    7.  "Grade  four violation" means possession of sixteen ounces or more
    49  or distribution of four ounces or more of a specified illegal  drug  [or
    50  possession  of  sixteen  pounds or more or one hundred plants or more or
    51  distribution of ten pounds or more of marijuana].
    52    13. "Drug trafficker" means a person convicted of a class A or class B
    53  felony controlled substance [or marijuana offense]  who,  in  connection
    54  with  the  criminal  conduct  for  which  he  or  she  stands convicted,
    55  possessed, distributed, sold or conspired to sell a controlled substance
    56  [or marijuana] which, by virtue of its quantity, the person's  prominent

        A. 1617--B                         101

     1  role  in the enterprise responsible for the sale or distribution of such
     2  controlled substance and other circumstances related  to  such  criminal
     3  conduct  indicate  that  such  person's  criminal  possession,  sale  or
     4  conspiracy to sell such substance was not an isolated occurrence and was
     5  part  of  an ongoing pattern of criminal activity from which such person
     6  derived substantial income or resources and in which such person  played
     7  a leadership role.
     8    §  45.  Paragraph  (g)  of  subdivision 1 of section 488 of the social
     9  services law, as added by section 1 of part B of chapter 501 of the laws
    10  of 2012, is amended to read as follows:
    11    (g) "Unlawful use or administration of a controlled substance,"  which
    12  shall  mean any administration by a custodian to a service recipient of:
    13  a controlled substance as defined by article thirty-three of the  public
    14  health law, without a prescription; or other medication not approved for
    15  any  use  by  the  federal  food and drug administration, except for the
    16  administration of  medical  cannabis  when  such  administration  is  in
    17  accordance  with  article  three of the cannabis law and any regulations
    18  promulgated thereunder as well as the rules, regulations,  policies,  or
    19  procedures  of  the  state  oversight  agency or agencies governing such
    20  custodians. It also  shall  include  a  custodian  unlawfully  using  or
    21  distributing  a  controlled substance as defined by article thirty-three
    22  of the public health law, at the workplace or while on duty.
    23    § 46. Paragraphs (e) and (f) of subdivision 1 of section  490  of  the
    24  social  services  law, as added by section 1 of part B of chapter 501 of
    25  the laws of 2012, are amended and a new paragraph (g) is added  to  read
    26  as follows:
    27    (e)  information  regarding  individual reportable incidents, incident
    28  patterns and trends, and  patterns  and  trends  in  the  reporting  and
    29  response  to  reportable incidents is shared, consistent with applicable
    30  law, with the justice center, in the form and  manner  required  by  the
    31  justice  center  and,  for  facilities or provider agencies that are not
    32  state operated, with the applicable state oversight agency  which  shall
    33  provide such information to the justice center; [and]
    34    (f)  incident  review  committees  are established; provided, however,
    35  that the regulations may authorize an exemption from  this  requirement,
    36  when  appropriate,  based on the size of the facility or provider agency
    37  or other relevant factors. Such committees shall be composed of  members
    38  of  the  governing  body  of  the  facility or provider agency and other
    39  persons identified by the director of the facility or  provider  agency,
    40  including  some members of the following: direct support staff, licensed
    41  health care practitioners, service  recipients  and  representatives  of
    42  family,  consumer and other advocacy organizations, but not the director
    43  of the facility or provider agency. Such committee shall meet  regularly
    44  to:  (i)  review the timeliness, thoroughness and appropriateness of the
    45  facility or provider agency's responses to  reportable  incidents;  (ii)
    46  recommend  additional  opportunities  for improvement to the director of
    47  the facility or provider agency, if appropriate; (iii)  review  incident
    48  trends  and  patterns  concerning  reportable  incidents;  and (iv) make
    49  recommendations to the director of the facility or  provider  agency  to
    50  assist  in reducing reportable incidents. Members of the committee shall
    51  be trained in confidentiality laws and  regulations,  and  shall  comply
    52  with section seventy-four of the public officers law[.]; and
    53    (g)  safe  storage,  administration, and diversion prevention policies
    54  regarding controlled substances and medical cannabis.

        A. 1617--B                         102

     1    § 47. Subdivision 1 of section 505 of the agriculture and markets law,
     2  as added by chapter 524 of the laws of  2014,  is  amended  to  read  as
     3  follows:
     4    1.  "Industrial  hemp" means the plant Cannabis sativa L. and any part
     5  of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
     6  extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,
     7  whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
     8  tration of not more than 0.3 percent on a dry weight basis.
     9    §  48.  Section  506 of the agriculture and markets law, as amended by
    10  section 1 of part OO of chapter 58 of the laws of 2017,  is  amended  to
    11  read as follows:
    12    §  506.  Growth,  sale, distribution, transportation and processing of
    13  industrial  hemp  and  products  derived  from  such   hemp   permitted.
    14  [Notwithstanding  any  provision  of law to the contrary, industrial] 1.
    15  Industrial hemp and products derived from  such  hemp  are  agricultural
    16  products  which  may  be grown, produced [and], possessed [in the state,
    17  and], sold, distributed, transported [or] and/or processed  [either]  in
    18  [or  out  of]  state [as part of agricultural pilot programs pursuant to
    19  authorization under federal law  and  the  provisions  of  this  article
    20  pursuant  to  authorization  under  federal law and/or the provisions of
    21  this article.
    22    [Notwithstanding any provision of law to the contrary restricting  the
    23  growing or cultivating, sale, distribution, transportation or processing
    24  of  industrial  hemp and products derived from such hemp, and subject to
    25  authorization under federal law, the]
    26    2. The commissioner may authorize the growing or cultivating of indus-
    27  trial hemp as part of  agricultural  pilot  programs  conducted  by  the
    28  department and/or an institution of higher education to study the growth
    29  and  cultivation,  sale,  distribution, transportation and processing of
    30  such hemp and products derived from such hemp provided  that  the  sites
    31  and  programs used for growing or cultivating industrial hemp are certi-
    32  fied by, and registered with, the department.
    33    3. The industrial hemp used for  research  pursuant  to  this  section
    34  shall  be sourced from authorized New York state industrial hemp produc-
    35  ers. The research partner may obtain an  exemption  for  only  grain  or
    36  fiber  from  this requirement upon a satisfactory showing to the depart-
    37  ment that a suitable variety of industrial hemp for the research project
    38  is not grown in New York and/or the use of New York sourced hemp is  not
    39  practicable for the project.  Hemp for extracts can only be sourced from
    40  authorized New York state industrial hemp producers.
    41    4. Nothing in this section shall limit the jurisdiction of the depart-
    42  ment under any other article of this chapter.
    43    § 49. Section 507 of the agriculture and markets law is REPEALED and a
    44  new section 507 is added to read as follows:
    45    §  507.  Licensing;  fees.  1. No person shall grow, process, produce,
    46  distribute and/or sell industrial hemp or products derived  from  indus-
    47  trial  hemp  in  the state unless (a) licensed biennially by the commis-
    48  sioner or (b) authorized by the commissioner as part of an  agricultural
    49  research pilot program established under this article.
    50    2.  Application  for  a  license to grow industrial hemp shall be made
    51  upon a form prescribed by the commissioner, accompanied  by  a  per-acre
    52  license  fee  and  a  non-refundable  application  fee  of  five hundred
    53  dollars.
    54    3. The applicant shall furnish evidence of his or her good  character,
    55  experience  and  competency, that the applicant has adequate facilities,

        A. 1617--B                         103

     1  equipment, process controls, testing capability  and  security  to  grow
     2  hemp.
     3    4.  Growers  who  intend  to  cultivate hemp for cannabinoids shall be
     4  required to obtain licensure from the  department  pursuant  to  article
     5  twenty-nine-A of this chapter.
     6    5.  A  renewal  application  shall be submitted to the commissioner at
     7  least sixty days prior to the commencement of the next license period.
     8    § 50. Section 508 of the agriculture and markets law is REPEALED and a
     9  new section 508 is added to read as follows:
    10    § 508. Compliance action plan. If the commissioner  determines,  after
    11  notice  and  an opportunity for hearing, that a licensee has negligently
    12  violated a provision of and/or a regulation promulgated pursuant to this
    13  article, that licensee shall be required to  comply  with  a  corrective
    14  action  plan established by the commissioner to correct the violation by
    15  a reasonable date and to periodically report to  the  commissioner  with
    16  respect  to  the licensee's compliance with this article for a period of
    17  no less than the next two calendar years following the commencement date
    18  of the compliance action plan. The provisions of this section shall  not
    19  be  applicable to research partners conducting hemp research pursuant to
    20  a research partner agreement, the terms of which shall control.
    21    § 51. Section 509 of the agriculture and markets law is REPEALED and a
    22  new section 509 is added to read as follows:
    23    § 509. Granting, suspending or revoking licenses.    The  commissioner
    24  may  decline to grant a new license, may decline to renew a license, may
    25  suspend or revoke a license already granted after due notice and  oppor-
    26  tunity for hearing whenever he or she finds that:
    27    1.  any  statement  contained  in  an  application for an applicant or
    28  licensee is or was false or misleading;
    29    2. the applicant  or  licensee  does  not  have  good  character,  the
    30  required  experience  and/or competency, adequate facilities, equipment,
    31  process controls, testing capability and/or security to produce hemp  or
    32  products derived from hemp;
    33    3.  the  applicant  or  licensee  has failed or refused to produce any
    34  records or provide any information demanded by the commissioner  reason-
    35  ably related to the administration and enforcement of this article; or
    36    4. the applicant or licensee, or any officer, director, partner, hold-
    37  er  of  ten  percent of the voting stock, or any other person exercising
    38  any position of management or control has failed to comply with  any  of
    39  the  provisions  of  this  article  or rules and regulations promulgated
    40  pursuant thereto.
    41    § 52. Section 510 of the agriculture and markets law is REPEALED and a
    42  new section 510 is added to read as follows:
    43    § 510. Regulations.  The commissioner may develop regulations consist-
    44  ent with the provisions of this article for the growing and cultivation,
    45  sale, distribution, and transportation of industrial hemp grown  in  the
    46  state, including:
    47    1.  the  authorization  or licensing of any person who may: acquire or
    48  possess industrial hemp plants or seeds; grow  or  cultivate  industrial
    49  hemp plants; and/or sell, purchase, distribute, or transport such indus-
    50  trial hemp plants, plant parts, or seeds;
    51    2. maintaining relevant information regarding land on which industrial
    52  hemp  is  produced  within the state, including the legal description of
    53  the land, for a period of not less than three calendar years;
    54    3. the procedure for testing of industrial hemp produced in the  state
    55  for  delta-9-tetrahydrocannabinol levels, using a representative non-de-

        A. 1617--B                         104

     1  carboxylated sample of flowers and leaves from the whole plant or  other
     2  similarly reliable methods;
     3    4.  the  procedure for effective disposal of industrial hemp plants or
     4  products derived from hemp that are produced in violation of this  arti-
     5  cle;
     6    5.  a  procedure for conducting at least a random sample of industrial
     7  hemp producers to verify that hemp is not produced in violation of  this
     8  article;
     9    6. any required security measures; and
    10    7.  such other and further regulation as the commissioner deems appro-
    11  priate or necessary.
    12    § 53. Section 511 of the agriculture and markets law is REPEALED and a
    13  new section 511 is added to read as follows:
    14    § 511. Prohibitions.  Except as authorized by  state  law,  and  regu-
    15  lations  promulgated  thereunder,  the  growth, cultivation, processing,
    16  sale, and/or distribution of industrial hemp is prohibited.
    17    § 54. Section 512 of the agriculture and markets law is REPEALED and a
    18  new section 512 is added to read as follows:
    19    § 512. Industrial hemp data collection  and  best  farming  practices.
    20  The  commissioner  shall  have the power to collect and publish data and
    21  research  concerning,  among  other  things,  the  growth,  cultivation,
    22  production  and  processing  methods  of  industrial  hemp  and products
    23  derived from industrial hemp and work with the New York state college of
    24  agriculture and life science at Cornell pursuant to section  fifty-seven
    25  hundred  twelve  of the education law and the Cornell cooperative exten-
    26  sion pursuant to section two hundred twenty-four of the  county  law  to
    27  promote  best farming practices for industrial hemp which are compatible
    28  with state water quality and other environmental objectives.
    29    § 55. Sections 513 and 514 of the  agriculture  and  markets  law  are
    30  REPEALED and two new sections 513 and 514 are added to read as follows:
    31    §  513. Access to criminal history information through the division of
    32  criminal justice services.   In connection with  the  administration  of
    33  this  article,  the  commissioner  is authorized to request, receive and
    34  review criminal history information through  the  division  of  criminal
    35  justice services (division) with respect to any person seeking a license
    36  or  authorization  to undertake a hemp pilot project. At the commission-
    37  er's request, each researcher, principal and/or officer of the applicant
    38  shall submit to the department his or her fingerprints in such form  and
    39  in such manner as specified by the division, for the purpose of conduct-
    40  ing  a criminal history search and returning a report thereon in accord-
    41  ance with the procedures and requirements established  by  the  division
    42  pursuant  to the provisions of article thirty-five of the executive law,
    43  which shall include the payment of the prescribed  processing  fees  for
    44  the  cost  of  the  division's  full  search and retain procedures and a
    45  national criminal history record check. The commissioner, or his or  her
    46  designee,  shall  submit such fingerprints and the processing fee to the
    47  division.  The division shall forward to the commissioner a report  with
    48  respect  to  the  applicant's  previous  criminal  history, if any, or a
    49  statement that the applicant has no previous criminal history  according
    50  to its files. Fingerprints submitted to the division of criminal justice
    51  services  pursuant  to this section may also be submitted to the federal
    52  bureau of investigation for a national criminal history record check. If
    53  additional copies of fingerprints  are  required,  the  applicant  shall
    54  furnish them upon request.
    55    § 514. Aids to enforcement. 1. The commissioner shall have full access
    56  to  all  premises,  buildings,  factories, farms, vehicles, cars, boats,

        A. 1617--B                         105

     1  airplanes, vessels, containers, packages, barrels,  boxes,  and/or  cans
     2  for the purpose of enforcing the provisions of this article. The commis-
     3  sioner may, at such locations, examine industrial hemp and hemp products
     4  and may open any package and/or container reasonably believed to contain
     5  industrial  hemp  or hemp products, to determine whether such industrial
     6  hemp or hemp products follow applicable law or regulation.
     7    2. A search warrant shall be issued by any court to which  application
     8  is made therefor, whenever it shall be made to appear to such court that
     9  a licensee has: refused to permit any industrial hemp to be inspected or
    10  samples  taken  therefrom;  refused to permit access to any premises, or
    11  place  where  licensed  activities  are  conducted;  and/or  refused  or
    12  prevented  access  thereto  by  any inspector of the department and that
    13  such inspector has reasonable grounds to believe that  such  person  has
    14  any  industrial  hemp  in  his  or  her  possession, or under his or her
    15  control and/or is in violation of the provisions or regulations of  this
    16  article.  In  such  a case, a warrant shall be issued in the name of the
    17  people, directed to a police officer, commanding  him  or  her  to:  (a)
    18  search any place of business, factory, building, premises, or farm where
    19  licensed  activities  have  occurred  and  any  vehicle,  boat,  vessel,
    20  container, package, barrel, box, tub or can, containing, or believed  to
    21  contain  industrial  hemp  in the possession or under the control of any
    22  person who shall refuse to allow access to such hemp for  inspection  or
    23  sampling,  (b) permit the inspection and sampling of any industrial hemp
    24  found in the execution of the warrant, as the officer applying  for  the
    25  search  warrant  shall designate when the same is found, by an inspector
    26  or a department official authorized by the commissioner or by this chap-
    27  ter, and/or (c) permit access to any place where access  is  refused  or
    28  prevented,  and  to  allow  and  enable  a department inspector or other
    29  department official  to  conduct  an  inspection  of  the  place.    The
    30  provisions  of  article six hundred ninety of the criminal procedure law
    31  shall apply to such warrant as far as applicable thereto. The officer to
    32  whom the warrant is delivered shall make a return in writing of  his  or
    33  her proceedings thereunto to the court which issued the same.
    34    3.  The commissioner may quarantine industrial hemp when he or she has
    35  reason to believe that such commodity does not meet the definition ther-
    36  eof, set forth in subdivision one of section five hundred five  of  this
    37  article, or is otherwise in violation of or does not meet a standard set
    38  forth  in, applicable law or regulation. The quarantine may by the issu-
    39  ance of an order directing the owner or custodian of industrial hemp not
    40  to distribute, dispose of, or move that commodity  without  the  written
    41  permission  of  the commissioner. The commissioner may also quarantine a
    42  product by placing a tag or other appropriate marking thereon  or  adja-
    43  cent  thereto  that  provides and requires that such product must not be
    44  distributed, disposed of, or moved without his or  her  written  permis-
    45  sion,  or  may  quarantine a product by otherwise informing the owner or
    46  custodian thereof that such condition must be complied with.
    47    4. The commissioner may  seize  industrial  hemp  by  taking  physical
    48  possession of industrial hemp when he or she has substantial evidence to
    49  believe  that  such  commodity does not meet the definition thereof, set
    50  forth in subdivision one of section five hundred five of  this  article,
    51  or  is  otherwise in violation of, or does not meet a standard set forth
    52  in, applicable law or regulation.
    53    5. Subsequent to quarantining or seizing industrial hemp,  as  author-
    54  ized  in  subdivisions  three and four of this section, the commissioner
    55  shall promptly give the owner or custodian thereof an opportunity to  be
    56  heard  to  show  cause  why  such  industrial hemp should not be ordered

        A. 1617--B                         106

     1  destroyed. The commissioner shall, thereafter, consider all the relevant
     2  evidence and information presented and shall make a determination wheth-
     3  er such industrial hemp should be ordered to be destroyed; that determi-
     4  nation  may  be reviewed as provided for in article seventy-eight of the
     5  civil practice law and rules.
     6    § 56. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the  penal
     7  law,  as added by chapter 90 of the laws of 2014, are amended to read as
     8  follows:
     9  § 179.00 Criminal  diversion  of  medical  [marihuana]  cannabis;  defi-
    10             nitions.
    11    The following definitions are applicable to this article:
    12    1.  "Medical  [marihuana] cannabis" means medical [marihuana] cannabis
    13  as defined in [subdivision eight of section thirty-three  hundred  sixty
    14  of the public health law] section three of the cannabis law.
    15    2.  "Certification" means a certification, made under section [thirty-
    16  three hundred sixty-one of the public health law] thirty of the cannabis
    17  law.
    18  § 179.05 Criminal diversion of  medical  [marihuana]  cannabis;  limita-
    19             tions.
    20    The provisions of this article shall not apply to:
    21    1.  a  practitioner  authorized  to issue a certification who acted in
    22  good faith in the lawful course of his or her profession; or
    23    2. a registered organization as that term is defined  in  [subdivision
    24  nine  of  section  thirty-three  hundred sixty of the public health law]
    25  section thirty-four of the cannabis law who acted in good faith  in  the
    26  lawful course of the practice of pharmacy; or
    27    3.  a  person  who acted in good faith seeking treatment for a medical
    28  condition or assisting another person to obtain treatment for a  medical
    29  condition.
    30  § 179.10 Criminal diversion of medical [marihuana] cannabis in the first
    31             degree.
    32    A person is guilty of criminal diversion of medical [marihuana] canna-
    33  bis  in  the first degree when he or she is a practitioner, as that term
    34  is defined in [subdivision twelve of section thirty-three hundred  sixty
    35  of  the public health law] section three of the cannabis law, who issues
    36  a certification with knowledge of reasonable grounds to  know  that  (i)
    37  the  recipient  has  no medical need for it, or (ii) it is for a purpose
    38  other than to treat a [serious] condition  as  defined  in  [subdivision
    39  seven  of  section  thirty-three hundred sixty of the public health law]
    40  section three of the cannabis law.
    41    Criminal diversion of medical [marihuana] cannabis in the first degree
    42  is a class E felony.
    43  § 179.11 Criminal diversion  of  medical  [marihuana]  cannabis  in  the
    44             second degree.
    45    A person is guilty of criminal diversion of medical [marihuana] canna-
    46  bis  in  the  second  degree  when he or she sells, trades, delivers, or
    47  otherwise provides medical [marihuana] cannabis to  another  with  know-
    48  ledge or reasonable grounds to know that the recipient is not registered
    49  under  [title  five-A  of article thirty-three of the public health law]
    50  article three of the cannabis law.
    51    Criminal diversion of  medical  [marihuana]  cannabis  in  the  second
    52  degree is a class B misdemeanor.
    53  § 179.15 Criminal retention of medical [marihuana] cannabis.
    54    A person is guilty of criminal retention of medical [marihuana] canna-
    55  bis  when,  being  a certified patient or designated caregiver, as those
    56  terms are defined in [subdivisions three and  five  of  section  thirty-

        A. 1617--B                         107

     1  three  hundred  sixty  of  the  public health law, respectively] section
     2  three of the cannabis law,  he  or  she  knowingly  obtains,  possesses,
     3  stores  or  maintains an amount of [marihuana] cannabis in excess of the
     4  amount he or she is authorized to possess under the provisions of [title
     5  five-A  of  article thirty-three of the public health law] article three
     6  of the cannabis law.
     7    Criminal retention of medical [marihuana] cannabis is a class A misde-
     8  meanor.
     9    § 57. Section 220.78 of the penal law, as added by chapter 154 of  the
    10  laws of 2011, is amended to read as follows:
    11  § 220.78 Witness or victim of drug or alcohol overdose.
    12    1.  A  person who, in good faith, seeks health care for someone who is
    13  experiencing a drug  or  alcohol  overdose  or  other  life  threatening
    14  medical  emergency  shall  not be charged or prosecuted for a controlled
    15  substance offense under this article [two hundred twenty] or a [marihua-
    16  na] cannabis offense under article two hundred  [twenty-one]  twenty-two
    17  of this title, other than an offense involving sale for consideration or
    18  other  benefit or gain, or charged or prosecuted for possession of alco-
    19  hol by a person under age twenty-one years under section sixty-five-c of
    20  the alcoholic beverage control law, or for possession of drug  parapher-
    21  nalia  under  article  thirty-nine  of  the  general  business law, with
    22  respect to any controlled substance, [marihuana]  cannabis,  alcohol  or
    23  paraphernalia that was obtained as a result of such seeking or receiving
    24  of health care.
    25    2.  A  person  who is experiencing a drug or alcohol overdose or other
    26  life threatening medical emergency and, in good faith, seeks health care
    27  for himself or herself or is the subject of such a  good  faith  request
    28  for  health  care,  shall  not be charged or prosecuted for a controlled
    29  substance offense under this article or a [marihuana]  cannabis  offense
    30  under  article  two hundred [twenty-one] twenty-two of this title, other
    31  than an offense involving sale for consideration  or  other  benefit  or
    32  gain,  or  charged  or  prosecuted for possession of alcohol by a person
    33  under age twenty-one years under section sixty-five-c of  the  alcoholic
    34  beverage  control  law,  or  for  possession of drug paraphernalia under
    35  article thirty-nine of the general business law,  with  respect  to  any
    36  substance,  [marihuana]  cannabis,  alcohol  or  paraphernalia  that was
    37  obtained as a result of such seeking or receiving of health care.
    38    3. Definitions. As used in this section the following terms shall have
    39  the following meanings:
    40    (a) "Drug or alcohol overdose" or "overdose" means an acute  condition
    41  including,  but  not limited to, physical illness, coma, mania, hysteria
    42  or death, which is the result of consumption  or  use  of  a  controlled
    43  substance  or alcohol and relates to an adverse reaction to or the quan-
    44  tity of the controlled substance or alcohol or a  substance  with  which
    45  the  controlled  substance  or  alcohol  was  combined;  provided that a
    46  patient's condition shall be deemed to be a drug or alcohol overdose  if
    47  a  prudent  layperson,  possessing  an average knowledge of medicine and
    48  health, could reasonably believe that the condition is in fact a drug or
    49  alcohol overdose and (except as to death) requires health care.
    50    (b) "Health care" means the professional services provided to a person
    51  experiencing a drug or alcohol overdose by a  health  care  professional
    52  licensed, registered or certified under title eight of the education law
    53  or article thirty of the public health law who, acting within his or her
    54  lawful  scope of practice, may provide diagnosis, treatment or emergency
    55  services for a person experiencing a drug or alcohol overdose.

        A. 1617--B                         108

     1    4. It shall be an affirmative defense to a  criminal  sale  controlled
     2  substance  offense  under this article or a criminal sale of [marihuana]
     3  cannabis offense under article two hundred  [twenty-one]  twenty-two  of
     4  this  title, not covered by subdivision one or two of this section, with
     5  respect  to  any  controlled substance or [marihuana] cannabis which was
     6  obtained as a result of such seeking or receiving of health care, that:
     7    (a) the defendant, in good faith, seeks health care for someone or for
     8  him or herself who is experiencing a drug or alcohol overdose  or  other
     9  life threatening medical emergency; and
    10    (b)  the  defendant  has  no  prior  conviction  for the commission or
    11  attempted commission of a class A-I, A-II or B felony under  this  arti-
    12  cle.
    13    5. Nothing in this section shall be construed to bar the admissibility
    14  of  any evidence in connection with the investigation and prosecution of
    15  a crime with regard to another  defendant  who  does  not  independently
    16  qualify  for  the bar to prosecution or for the affirmative defense; nor
    17  with regard to other crimes committed by a person who  otherwise  quali-
    18  fies under this section; nor shall anything in this section be construed
    19  to  bar any seizure pursuant to law, including but not limited to pursu-
    20  ant to section thirty-three hundred eighty-seven of  the  public  health
    21  law.
    22    6.  The  bar  to  prosecution described in subdivisions one and two of
    23  this section shall not apply to the prosecution of a  class  A-I  felony
    24  under this article, and the affirmative defense described in subdivision
    25  four  of  this section shall not apply to the prosecution of a class A-I
    26  or A-II felony under this article.
    27    § 58. Subdivision 1 of section 260.20 of the penal law, as amended  by
    28  chapter 362 of the laws of 1992, is amended as follows:
    29    1.  He knowingly permits a child less than eighteen years old to enter
    30  or remain in or upon a place, premises  or  establishment  where  sexual
    31  activity as defined by article one hundred thirty, two hundred thirty or
    32  two  hundred  sixty-three  of  this [chapter] part or activity involving
    33  controlled substances as defined by article two hundred twenty  of  this
    34  [chapter  or involving marihuana as defined by article two hundred twen-
    35  ty-one of this chapter] part is maintained or conducted, and he knows or
    36  has reason to know that such activity is being maintained or  conducted;
    37  or
    38    § 59. Section 89-h of the state finance law, as added by chapter 90 of
    39  the laws of 2014, is amended to read as follows:
    40    §  89-h.  Medical  [marihuana] cannabis trust fund. 1. There is hereby
    41  established in the joint  custody  of  the  state  comptroller  and  the
    42  commissioner  of  taxation and finance a special fund to be known as the
    43  "medical [marihuana] cannabis trust fund."
    44    2. The medical [marihuana] cannabis trust fund shall  consist  of  all
    45  moneys  required  to  be  deposited  in the medical [marihuana] cannabis
    46  trust fund pursuant to the provisions of section four hundred ninety  of
    47  the tax law.
    48    3.  The moneys in the medical [marihuana] cannabis trust fund shall be
    49  kept separate and shall not be commingled with any other moneys  in  the
    50  custody  of the commissioner of taxation and finance and the state comp-
    51  troller.
    52    4. The moneys of the medical [marihuana] cannabis trust fund,  follow-
    53  ing  appropriation by the legislature, shall be allocated upon a certif-
    54  icate of approval of availability by  the  director  of  the  budget  as
    55  follows:   (a) Twenty-two and five-tenths percent of the monies shall be
    56  transferred to the counties in New  York  state  in  which  the  medical

        A. 1617--B                         109

     1  [marihuana] cannabis was manufactured and allocated in proportion to the
     2  gross  sales  originating from medical [marihuana] cannabis manufactured
     3  in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
     4  moneys  shall  be transferred to the counties in New York state in which
     5  the medical [marihuana] cannabis was dispensed and allocated in  propor-
     6  tion  to the gross sales occurring in each such county; (c) five percent
     7  of the monies shall be transferred  to  the  office  of  alcoholism  and
     8  substance  abuse  services,  which shall use that revenue for additional
     9  drug abuse prevention, counseling and treatment services; and  (d)  five
    10  percent  of  the revenue received by the department shall be transferred
    11  to the division of criminal  justice  services,  which  shall  use  that
    12  revenue  for  a  program  of discretionary grants to state and local law
    13  enforcement agencies that demonstrate a need relating to  [title  five-A
    14  of  article  thirty-three of the public health law] article three of the
    15  cannabis law; said grants could be used for personnel costs of state and
    16  local law enforcement agencies. For purposes of  this  subdivision,  the
    17  city of New York shall be deemed to be a county.
    18    §  60.  The  state finance law is amended by adding three new sections
    19  99-hh, 99-ii and 99-jj to read as follows:
    20    § 99-hh. New York state cannabis revenue  fund.  1.  There  is  hereby
    21  established  in  the  joint  custody  of  the  state comptroller and the
    22  commissioner of taxation and finance a special fund to be known  as  the
    23  "New York state cannabis revenue fund".
    24    2.  Such fund shall consist of all revenues received by the department
    25  of taxation and finance, pursuant to the  provisions  of  article  eigh-
    26  teen-A of the tax law and all other moneys appropriated thereto from any
    27  other fund or source pursuant to law.  Nothing contained in this section
    28  shall prevent the state from receiving grants, gifts or bequests for the
    29  purposes of the fund as defined in this section and depositing them into
    30  the fund according to law.
    31    3.  The  moneys  in  such  fund  shall  be  expended for the following
    32  purposes:
    33    (a) Reasonable costs  incurred  by  the  department  of  taxation  and
    34  finance for administering and collecting the taxes imposed by this part;
    35  provided,  however,  such  costs  shall  not  exceed four percent of tax
    36  revenues received.
    37    (b) Reasonable costs incurred by the office of cannabis management for
    38  implementing, administering, and enforcing the marihuana regulation  and
    39  taxation  act  to  the extent those costs are not reimbursed pursuant to
    40  the cannabis law. This paragraph shall remain operative through the  two
    41  thousand twenty-four--two thousand twenty-five fiscal year.
    42    (c)  Beginning  with the two thousand twenty-one--two thousand twenty-
    43  two fiscal year and continuing  through  the  two  thousand  thirty--two
    44  thousand  thirty-one  fiscal  year,  the  commissioner  of  taxation and
    45  finance shall annually disburse the following sums for the  purposes  of
    46  data collection and reporting:
    47    (i)  Seven  hundred  fifty  thousand dollars to the office of cannabis
    48  management policy to track and report data related to the  licensing  of
    49  cannabis  businesses,  including the geographic location, structure, and
    50  function of licensed cannabis businesses, and demographic data,  includ-
    51  ing  race,  ethnicity,  and  gender,  of  license holders. The office of
    52  cannabis management shall publish reports on its findings  annually  and
    53  shall make the reports available to the public.
    54    (ii)  Seven hundred fifty thousand dollars to the department of crimi-
    55  nal justice services to track and report data  related  to  any  infrac-
    56  tions,  violations,  or criminal convictions that occur under any of the

        A. 1617--B                         110

     1  remaining  cannabis  statutes.    The  department  of  criminal  justice
     2  services  shall  publish reports on its findings annually and shall make
     3  the reports available to the public.
     4    (iii)  One  million  dollars  to  the  state university of New York to
     5  research and evaluate the implementation and  effect  of  the  marihuana
     6  regulation  and taxation act.  No more than four percent of these monies
     7  may be used for expenses related to administrative costs  of  conducting
     8  such  research,  and  to,  if  appropriate,  make recommendations to the
     9  legislature and governor regarding possible amendments to the  marihuana
    10  regulation and taxation act. The recipients of these funds shall publish
    11  reports on their findings at a minimum of every two years and shall make
    12  the  reports  available  to  the public. The research funded pursuant to
    13  this subdivision shall include but not necessarily be limited to:
    14    (A) the impact on public health,  including  health  costs  associated
    15  with cannabis use, as well as whether cannabis use is associated with an
    16  increase or decrease in use of alcohol or other drugs;
    17    (B)  the  impact of treatment for cannabis use disorder and the effec-
    18  tiveness of different treatment programs;
    19    (C) public safety issues related to cannabis use,  including  studying
    20  the  effectiveness of the packaging and labeling requirements and adver-
    21  tising and marketing restrictions contained in  the  act  at  preventing
    22  underage access to and use of cannabis and cannabis products, and study-
    23  ing  the health-related effects among users of varying potency levels of
    24  cannabis and cannabis products;
    25    (D) cannabis use rates, maladaptive use rates for  adults  and  youth,
    26  and diagnosis rates of cannabis-related substance use disorders;
    27    (E)  cannabis market prices, illicit market prices, tax structures and
    28  rates, including an evaluation of how to  best  tax  cannabis  based  on
    29  potency, and the structure and function of licensed cannabis businesses;
    30    (F)  whether  additional  protections  are  needed to prevent unlawful
    31  monopolies or anti-competitive behavior from occurring in  the  cannabis
    32  industry  and,  if so, recommendations as to the most effective measures
    33  for preventing such behavior;
    34    (G) the economic impacts in the private and public sectors,  including
    35  but  not  necessarily limited to, job creation, workplace safety, reven-
    36  ues, taxes generated for state and local budgets, and  criminal  justice
    37  impacts,  including,  but  not  necessarily  limited  to, impacts on law
    38  enforcement and public resources, short and long  term  consequences  of
    39  involvement  in the criminal justice system, and state and local govern-
    40  ment agency administrative costs and revenue;
    41    (H) whether the  regulatory  agencies  tasked  with  implementing  and
    42  enforcing  the  marihuana  regulation  and  taxation  act  are  doing so
    43  consistent with the purposes of the act, and whether different  agencies
    44  might do so more effectively; and
    45    (I)  any  environmental  issues related to cannabis production and the
    46  criminal prohibition of cannabis production.
    47    (d) One million dollars annually, for a period of  three  years  after
    48  the  effective  date  of this section, to the state police to expand and
    49  enhance the drug recognition expert training  program  and  technologies
    50  utilized in the process of maintaining road safety.
    51    (i)  The  state  police,  in  association  with the office of cannabis
    52  management, are authorized to establish a pilot program for the  testing
    53  and  development  of  new technologies to detect drivers who are driving
    54  under the influence of cannabis.
    55    (ii) Pursuant to such pilot program, a law  enforcement  officer,  who
    56  upon  reasonable  suspicion  and  belief,  identifies  an individual who

        A. 1617--B                         111

     1  appears to be driving under the  influence  of  a  drug  as  defined  by
     2  section one hundred fourteen-a of the vehicle and traffic law, may, with
     3  the knowing and intelligent permission of the driver, utilize developing
     4  technologies  for the purpose of identifying said drug within the system
     5  of the driver.
     6    (iii) The objection to, compliance with, or results  of  the  adminis-
     7  tration  of  said  developing  technologies  may not be used against any
     8  driver for the purpose of advancing  a  criminal  action.  Additionally,
     9  saliva,  or other biological material obtained from the driver shall not
    10  be admissible against the driver in any criminal proceeding, or retained
    11  for any reason.
    12    (iv) The driver shall be notified of the results of any administration
    13  of said developing technologies and provided with documentation of  said
    14  results.
    15    (v)  The  pilot  program established by subparagraph (i) of this para-
    16  graph shall be in effect for one year after the effective date  of  this
    17  section.
    18    4. After the dispersal of moneys pursuant to subdivision three of this
    19  section,  the  remaining  moneys  in the fund deposited during the prior
    20  fiscal year shall be disbursed into the state lottery fund and two addi-
    21  tional sub-funds created within the cannabis revenue fund known  as  the
    22  drug  treatment and public education fund and the community grants rein-
    23  vestment fund, as follows:
    24    (a) twenty-five percent shall be deposited in the state  lottery  fund
    25  established  by section ninety-two-c of this article; provided that such
    26  moneys shall be distributed to the department of education in accordance
    27  with subdivisions two and four of section ninety-two-c of  this  article
    28  and  shall not be utilized for the purposes of subdivision three of such
    29  section. Monies allocated by this article may  enhance,  but  shall  not
    30  supplant, existing dedicated funds to the department of education;
    31    (b)  twenty-five  percent shall be deposited in the drug treatment and
    32  public education fund established  by  section  ninety-nine-ii  of  this
    33  article; and
    34    (c) fifty percent shall be deposited in the community grants reinvest-
    35  ment fund established by section ninety-nine-jj of this article.
    36    5.  On or before the first day of February each year, the commissioner
    37  of taxation and finance shall provide a written report to the  temporary
    38  president  of  the  senate, speaker of the assembly, chair of the senate
    39  finance committee, chair of the assembly ways and means  committee,  the
    40  state  comptroller  and  the  public.  Such  report shall detail how the
    41  moneys of the fund were utilized during the preceding calendar year, and
    42  shall include:
    43    (a) the amount of money dispersed from the fund and the  process  used
    44  for such disbursements;
    45    (b) recipients of awards from the fund;
    46    (c) the amount awarded to each recipient of an award from the fund;
    47    (d) the purposes for which such awards were granted; and
    48    (e) a summary financial plan for such monies which shall include esti-
    49  mates of all receipts and all disbursements for the current and succeed-
    50  ing  fiscal  years,  along with the actual results from the prior fiscal
    51  year.
    52    6. Moneys shall be payable directly from the cannabis revenue fund  to
    53  the department of education.
    54    §  99-ii.  New York state drug treatment and public education fund. 1.
    55  There is hereby established in the joint  custody  of  the  state  comp-

        A. 1617--B                         112

     1  troller  and  the commissioner of taxation and finance a special fund to
     2  be known as the "New York state drug treatment public education fund".
     3    2.  Such  fund  shall  consist  of  revenues  received pursuant to the
     4  provisions of section ninety-nine-hh  of  this  article  and  all  other
     5  moneys  appropriated  thereto  from any other fund or source pursuant to
     6  law. Nothing contained in this section  shall  prevent  the  state  from
     7  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
     8  defined in this section and depositing them into the fund  according  to
     9  law.
    10    3.  The  moneys  in such fund shall be expended to the commissioner of
    11  the office of alcoholism and substance abuse and disbursed in  consulta-
    12  tion with the commissioner of health for the following purposes:
    13    (a)  To  develop and implement a youth-focused public health education
    14  and prevention campaign, including school-based prevention, early inter-
    15  vention, and health care services and programs to  reduce  the  risk  of
    16  cannabis and other substance use by school-aged children;
    17    (b)  To  develop  and  implement  a  statewide  public health campaign
    18  focused on the health effects of cannabis and legal  use,  including  an
    19  ongoing  education  and  prevention  campaign  that educates the general
    20  public, including parents, consumers and retailers, on the legal use  of
    21  cannabis,  the  importance of preventing youth access, the importance of
    22  safe storage and preventing secondhand cannabis smoke exposure, informa-
    23  tion for pregnant or breastfeeding women,  and  the  overconsumption  of
    24  edibles;
    25    (c) To provide substance use disorder treatment programs for youth and
    26  adults,  with  an  emphasis  on  programs that are culturally and gender
    27  competent, trauma-informed, evidence-based and provide  a  continuum  of
    28  care  that  includes screening and assessment (substance use disorder as
    29  well as mental health), early  intervention,  active  treatment,  family
    30  involvement,  case management, overdose prevention, prevention of commu-
    31  nicable diseases  related  to  substance  use,  relapse  management  for
    32  substance  use and other co-occurring behavioral health disorders, voca-
    33  tional services, literacy services, parenting  classes,  family  therapy
    34  and  counseling  services,  medication-assisted  treatments, psychiatric
    35  medication and psychotherapy; and
    36    (d) To evaluate the programs being funded to  determine  their  effec-
    37  tiveness.
    38    4.  On or before the first day of February each year, the commissioner
    39  of the office of alcoholism and substance abuse services shall provide a
    40  written report to the temporary president of the senate, speaker of  the
    41  assembly,  chair  of the senate finance committee, chair of the assembly
    42  ways and means committee, chair of the senate  committee  on  alcoholism
    43  and  drug abuse, chair of the assembly alcoholism and drug abuse commit-
    44  tee, the state comptroller and the public. Such report shall detail  how
    45  the moneys of the fund were utilized during the preceding calendar year,
    46  and shall include:
    47    (a)  the amount of money dispersed from the fund and the award process
    48  used for such disbursements;
    49    (b) recipients of awards from the fund;
    50    (c) the amount awarded to each recipient of an award from the fund;
    51    (d) the purposes for which such awards were granted; and
    52    (e) a summary financial plan for such monies which shall include esti-
    53  mates of all receipts and all disbursements for the current and succeed-
    54  ing fiscal years, along with the actual results from  the  prior  fiscal
    55  year.

        A. 1617--B                         113

     1    5.  Moneys  shall be payable from the fund on the audit and warrant of
     2  the comptroller on vouchers approved and certified by  the  commissioner
     3  of education.
     4    §  99-jj.  New York state community grants reinvestment fund. 1. There
     5  is hereby established in the joint custody of the state comptroller  and
     6  the  commissioner  of taxation and finance a special fund to be known as
     7  the "New York state community grants reinvestment fund".
     8    2. Such fund shall consist of all revenues received  pursuant  to  the
     9  provisions  of  section  ninety-nine-hh  of  this  article and all other
    10  moneys appropriated thereto from any other fund or  source  pursuant  to
    11  law.  Nothing  contained  in  this  section shall prevent the state from
    12  receiving grants, gifts or bequests for the  purposes  of  the  fund  as
    13  defined  in  this section and depositing them into the fund according to
    14  law.
    15    3. The fund shall be governed and administered by an executive  steer-
    16  ing  committee  of thirteen members, including a representative from the
    17  office of children and family services, the labor  department,  and  the
    18  health department appointed by the governor, and a representative of the
    19  education department appointed by the board of regents. In addition, the
    20  majority  and  minority  leaders  of  the senate and assembly shall each
    21  appoint one member to the executive steering committee, the  comptroller
    22  shall  appoint  three additional members, and the attorney general shall
    23  appoint two additional members from relevant local  government  entities
    24  and  community-based organizations. Every effort shall be made to ensure
    25  a balanced and diverse committee representing the regions and demograph-
    26  ics of the state, which shall have expertise in job placement, homeless-
    27  ness and housing, behavioral health and substance  use  disorder  treat-
    28  ment,  and  effective rehabilitative treatment for adults and juveniles,
    29  and shall include representatives of organizations  serving  communities
    30  impacted by past federal and state drug policies.
    31    4. The moneys in such fund shall be expended by the executive steering
    32  committee  to  qualified  community-based  nonprofit  organizations  and
    33  approved local government entities for the  purpose  of  reinvesting  in
    34  communities  disproportionately  affected by past federal and state drug
    35  policies. The grants from this program shall be used, including but  not
    36  limited  to, to support job placement, job skills services, adult educa-
    37  tion, mental health treatment, substance use disorder  treatment,  hous-
    38  ing,  community  banking, nutrition services, afterschool and child care
    39  services, system navigation services, legal services to address barriers
    40  to reentry, and linkages to medical care, women's  health  services  and
    41  other community-based supportive services.  The grants from this program
    42  may  also  be  used  to  further  support the social and economic equity
    43  program created by article four of  the  cannabis  law  and  distributed
    44  through the office of cannabis management.
    45    5.  On or before the first day of February each year, the commissioner
    46  of the office of children and family services shall  provide  a  written
    47  report  to  the temporary president of the senate, speaker of the assem-
    48  bly, chair of the senate finance committee, chair of the  assembly  ways
    49  and means committee, chair of the senate committee on children and fami-
    50  lies,  chair  of  the assembly children and families committee, chair of
    51  the senate committee on labor, chair of the  assembly  labor  committee,
    52  chair  of  the  senate committee on health, chair of the assembly health
    53  committee, chair of the senate committee  on  education,  chair  of  the
    54  assembly education committee, the state comptroller and the public. Such
    55  report  shall detail how the monies of the fund were utilized during the
    56  preceding calendar year, and shall include:

        A. 1617--B                         114

     1    (a) the amount of money dispersed from the fund and the award  process
     2  used for such disbursements;
     3    (b) recipients of awards from the fund;
     4    (c) the amount awarded to each recipient of an award from the fund;
     5    (d) the purposes for which such awards were granted; and
     6    (e) a summary financial plan for such monies which shall include esti-
     7  mates of all receipts and all disbursements for the current and succeed-
     8  ing  fiscal  years,  along with the actual results from the prior fiscal
     9  year.
    10    6. Moneys shall be payable from the fund on the audit and  warrant  of
    11  the  comptroller  on  vouchers  approved  and certified by the executive
    12  steering committee.
    13    § 61. Severability. If any provision or term of this act  is  for  any
    14  reason declared unconstitutional or invalid or ineffective by any compe-
    15  tent  jurisdiction,  such  decision shall not affect the validity of the
    16  effectiveness of the remaining portions of this act or any part thereof.
    17    § 62. This act shall take effect immediately; provided,  however  that
    18  if section 3 of part XX of chapter 59 of the laws of 2019 shall not have
    19  taken effect on or before such date then section thirty-five of this act
    20  shall  take effect on the same date and in the same manner as such chap-
    21  ter of the laws of 2019 takes effect; provided, further,  that  sections
    22  thirty-nine  and  forty of this act shall take effect April 1, 2020, and
    23  shall apply on and after such date: (a) to the cultivation  of  cannabis
    24  flower and cannabis trim transferred by a cultivator who is not a whole-
    25  saler;  (b) to the cultivation of cannabis flower and cannabis trim sold
    26  or transferred to a retail dispensary by a cultivator who  is  a  whole-
    27  saler; and (c) to the sale or transfer of adult use cannabis products to
    28  a  retail  dispensary; provided, further, that the amendments to article
    29  179 of the penal law made by section fifty-six of  this  act  shall  not
    30  affect  the  repeal  of  such article and shall be deemed to be repealed
    31  therewith; provided, further, that the amendments to section 89-h of the
    32  state finance law made by section  fifty-nine  of  this  act  shall  not
    33  affect  the  repeal  of such section and shall be deemed repealed there-
    34  with; and provided, further, that the amendments to   subdivision  1  of
    35  section  171-a  of  the  tax law made by section thirty-five of this act
    36  shall not affect the expiration of such  subdivision  and  shall  expire
    37  therewith,  when  upon such date the provisions of section thirty-six of
    38  this act shall take effect.
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