Bill Text: NY A01617 | 2019-2020 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 and public education fund and the New York state community grants reinvestment fund.
Spectrum: Partisan Bill (Democrat 50-0)
Status: (Introduced - Dead) 2020-03-11 - print number 1617c [A01617 Detail]
Download: New_York-2019-A01617-Amended.html
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 and public education fund and the New York state community grants reinvestment fund.
Spectrum: Partisan Bill (Democrat 50-0)
Status: (Introduced - Dead) 2020-03-11 - print number 1617c [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. LBD07592-10-9A. 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 smokingA. 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 suchA. 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 safetyA. 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 thisA. 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 personA. 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 orA. 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 ofA. 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 toA. 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-dayA. 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 anA. 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; andA. 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 inA. 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; andA. 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 ofA. 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 caseA. 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 onA. 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 personA. 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 anA. 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 theA. 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 thisA. 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; andA. 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 containersA. 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 exemptA. 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 grantedA. 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 isA. 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 illicitA. 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 forA. 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 passA. 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 pursuantA. 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; orA. 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 conformsA. 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. IfA. 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" means38(a) the separated resin, whether crude or purified, obtained from a39plant of the genus Cannabis; or40(b) a material, preparation, mixture, compound or other substance41which contains more than two and one-half percent by weight of delta-942tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering43system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-44terpene numbering system.455.] "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 theA. 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; orA. 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,4whether growing or not; the seeds thereof; the resin extracted from any5part of the plant; and every compound, manufacture, salt, derivative,6mixture, or preparation of the plant, its seeds or resin. It does not7include the mature stalks of the plant, fiber produced from the stalks,8oil or cake made from the seeds of the plant, any other compound, manu-9facture, salt, derivative, mixture, or preparation of the mature stalks10(except the resin extracted therefrom), fiber, oil, or cake, or the11sterilized seed of the plant which is incapable of germination.1222.] 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-28cle] 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 [or52section 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 agreementA. 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 in6article two hundred twenty or section 221.30 or 221.55 of the penal law,7to 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 a13felony defined in article two hundred twenty or section 221.30 or 221.5514of 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 section36thirty-three hundred two of such law] subdivision twenty-one of this 37 section. 38 6. ["Marihuana"] "Cannabis" means ["marihuana" or "concentrated canna-39bis" as those terms are defined in section thirty-three hundred two of40the 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 [schedule53I(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-15vision four of section thirty-three hundred two of the public health16law] 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-23vision four of section thirty-three hundred two of the public health24law] 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 subdivision30four 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; orA. 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 ageA. 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 individualA. 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 shall24be sealed and the clerk of the court wherein such criminal action or25proceeding was terminated shall immediately notify the commissioner of26the division of criminal justice services and the heads of all appropri-27ate police departments and other law enforcement agencies that the28action has been terminated in favor of the accused, and unless the court29has directed otherwise, that the record of such action or proceeding30shall be sealed. Upon receipt of notification of such termination and31sealing] 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 dismissal44pursuant 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 such49person] at the time of the termination of the action or proceeding[, at50the address given by such person or attorney during the action or51proceeding,] 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 otherwiseA. 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 to8the police department or law enforcement agency which transmitted or9forwarded them, and, if returned, such department or agency shall, at10its discretion, either destroy or return them as provided herein, except11that those relating to dismissals pursuant to section 170.56 or 210.4612of this chapter shall not be destroyed or returned by such department or13agency] 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 public21or 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; andA. 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-38ty-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;45and (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 shallA. 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 ofA. 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 ofA. 1617--B 83 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.A. 1617--B 84 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 in38the first degree as defined in section 221.30 of the penal law, criminal39sale of marihuana in the first degree as defined in section 221.55 of40the 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 criminalA. 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-9nal 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 [or16where the conviction is for a violation of section 221.30 of the penal17law, 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 221.3020of 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 in23article two hundred twenty or section 221.30 or 221.55 of the penal24law.] 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-30ing evidence that such person has committed an act in violation of arti-31cle 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; sexA. 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 and24221.55] 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 convicted42under section 221.10 of the penal law, only a person convicted under43subdivision two of such section, or a person convicted under subdivision44one of such section who stands previously convicted of any crime as45defined 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 resultedA. 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 the12conviction is for a violation of section 221.30 of this chapter, mari-13juana] 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 this16chapter, 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] CANNABISA. 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 isA. 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 allA. 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 thisA. 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) [All16definitions of terms applicable to title five-A of article thirty-three17of 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-47na] 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-56na] cannabis for the period covered by such return. If a return is notA. 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-41huana] cannabis from another registered organization shall obtain from 42 such registered organization information on where the medical [marihua-43na] 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 knownA. 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 state7department 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-3sioner 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 [commissioner6or 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 the14commissioner 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 internal19revenue 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 orA. 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 twoA. 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; andA. 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 or35twenty-five plants or more, but less than four pounds or fifty plants,36or 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 possession40of four pounds or more or fifty plants or distribution of more than one41pound 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 of45eight pounds or more or seventy-five plants or more, but less than46sixteen pounds or one hundred plants, or distribution of more than five47pounds 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 [or50possession of sixteen pounds or more or one hundred plants or more or51distribution 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 prominentA. 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,17and], sold, distributed, transported [or] and/or processed [either] in 18 [or out of] state [as part of agricultural pilot programs pursuant to19authorization under federal law and the provisions of this article20pursuant to authorization under federal law and/or the provisions of21this article.22[Notwithstanding any provision of law to the contrary restricting the23growing or cultivating, sale, distribution, transportation or processing24of industrial hemp and products derived from such hemp, and subject to25authorization 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 orderedA. 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 sixty14of the public health law] section three of the cannabis law. 15 2. "Certification" means a certification, made under section [thirty-16three 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 [subdivision24nine 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 sixty35of 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 [subdivision39seven 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 1three 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 [title5five-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-16na] 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-35ty-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 medicalA. 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-A14of 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 theA. 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 whoA. 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.