Bill Text: NY A09509 | 2019-2020 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2020-2021 state fiscal year; extends provisions related to the financial institution data match system for state tax collection purposes; relates to serving an income execution with respect to individual tax debtors without filing a warrant (Part A); relates to extending the hire a veteran credit (Part B); relates to the effectiveness of certain oil and gas charges (Part C); relates to capping the maximum amount of the long-term care insurance credit (Part E); relates to requiring the department of taxation and finance to provide taxpayers with unclaimed tax benefits relating to the earned income credit and deductions (Part F); relates to reforming the tobacco products tax (Part H); relates to the possession of unstamped or illegally stamped cigarettes and authorizes the suspension and revocation of certain licenses and certificates related thereto (Part I); relates to the tax imposed on alcoholic beverages and the annual reporting requirements imposed on alcoholic beverage producers (Part J); relates to the excelsior jobs program and certain incentives for green projects within such program (Part L); modifies certain provisions relating to the definition of qualified film for the purposes of the empire state film production credit and the empire state film post production credit (Part M); relates to providing for the appointment of an acting director of real property tax services in the event the position becomes vacant (Part P); relates to removing references to the former STAR offset program (Part S); relates to assessment ceilings for railroads and local public utility mass real property (Part T); relates to extending the period for enrollment in the STAR income verification program (Part U); relates to financing and constructing a new equine drug testing laboratory (Part V); permits the New York state gaming commission to approve of additional locations within a casino for the operation of sports pools (Part X); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers (Part Z); relates to extending authorization of the New York Jockey Injury Compensation Fund, Inc. to use certain funds to pay certain annual costs (Part CC).
Spectrum: Committee Bill
Status: (Passed) 2020-04-03 - SIGNED CHAP.59 [A09509 Detail]
Download: New_York-2019-A09509-Amended.html
Bill Title: Enacts into law major components of legislation which are necessary to implement the state fiscal plan for the 2020-2021 state fiscal year; extends provisions related to the financial institution data match system for state tax collection purposes; relates to serving an income execution with respect to individual tax debtors without filing a warrant (Part A); relates to extending the hire a veteran credit (Part B); relates to the effectiveness of certain oil and gas charges (Part C); relates to capping the maximum amount of the long-term care insurance credit (Part E); relates to requiring the department of taxation and finance to provide taxpayers with unclaimed tax benefits relating to the earned income credit and deductions (Part F); relates to reforming the tobacco products tax (Part H); relates to the possession of unstamped or illegally stamped cigarettes and authorizes the suspension and revocation of certain licenses and certificates related thereto (Part I); relates to the tax imposed on alcoholic beverages and the annual reporting requirements imposed on alcoholic beverage producers (Part J); relates to the excelsior jobs program and certain incentives for green projects within such program (Part L); modifies certain provisions relating to the definition of qualified film for the purposes of the empire state film production credit and the empire state film post production credit (Part M); relates to providing for the appointment of an acting director of real property tax services in the event the position becomes vacant (Part P); relates to removing references to the former STAR offset program (Part S); relates to assessment ceilings for railroads and local public utility mass real property (Part T); relates to extending the period for enrollment in the STAR income verification program (Part U); relates to financing and constructing a new equine drug testing laboratory (Part V); permits the New York state gaming commission to approve of additional locations within a casino for the operation of sports pools (Part X); relates to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of-state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers (Part Z); relates to extending authorization of the New York Jockey Injury Compensation Fund, Inc. to use certain funds to pay certain annual costs (Part CC).
Spectrum: Committee Bill
Status: (Passed) 2020-04-03 - SIGNED CHAP.59 [A09509 Detail]
Download: New_York-2019-A09509-Amended.html
STATE OF NEW YORK ________________________________________________________________________ S. 7509--A A. 9509--A SENATE - ASSEMBLY January 22, 2020 ___________ IN SENATE -- A BUDGET BILL, submitted by the Governor pursuant to arti- cle seven of the Constitution -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee IN ASSEMBLY -- A BUDGET BILL, submitted by the Governor pursuant to article seven of the Constitution -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend part U of chapter 59 of the laws of 2017, amending the tax law, relating to the financial institution data match system for state tax collection purposes, in relation to making such provisions permanent; and to amend part Q of chapter 59 of the laws of 2013, amending the tax law relating to serving an income execution with respect to individual tax debtors without filing a warrant, in relation to making such provisions permanent (Part A); to amend the tax law, in relation to extending hire a veteran credit for an addi- tional two years (Part B); to amend chapter 540 of the laws of 1992, amending the real property tax law relating to oil and gas charges, in relation to the effectiveness thereof (Part C); to amend the tax law, in relation to reducing the burden on small businesses (Part D); to amend the tax law, in relation to capping the maximum amount of the long-term care insurance credit (Part E); to amend the tax law and the administrative code of the city of New York, in relation to allowing the department of taxation and finance to provide taxpayers with unclaimed tax benefits relating to the earned income credit and deductions (Part F); to amend the tax law, in relation to the defi- nition of a qualifying child for purposes of the empire state child credit (Part G); to amend the tax law, in relation to reforming the tobacco products tax (Part H); to amend the alcoholic beverage control law and the tax law, in relation to the suspension and revocation of certain licenses and certificates issued under such laws (Part I); to amend the tax law, in relation to the tax imposed on alcoholic bever- ages and the annual reporting requirements imposed on alcoholic bever- age producers (Part J); to amend the tax law, in relation to updating the criminal tax fraud statutes and to establish the offenses of crim- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD12674-05-0S. 7509--A 2 A. 9509--A inal tax preparation in the second degree and criminal tax preparation in the first degree (Part K); to amend the economic development law and the tax law, in relation to the excelsior jobs program and certain incentives for green projects within such program (Part L); to amend the tax law, in relation to the empire state film production credit and the empire state film post production credit (Part M); to amend the real property tax law, in relation to converted condominiums (Part N); to amend the tax law, in relation to state support for the local enforcement of past-due property taxes (Part O); to amend the real property tax law, in relation to providing for the appointment of an acting director of real property tax services in the event the posi- tion becomes vacant (Part P); to amend the real property law and tax law, in relation to the electronic submission of consolidated real property transfer forms; and to repeal paragraphs vii and viii of subdivision 1-e of section 333 of the real property law relating ther- eto (Part Q); to amend the public lands law, the real property law, and the real property tax law, in relation to the functions of the state board of real property tax services; and to repeal certain provisions of the real property tax law related thereto (Part R); to repeal certain provisions of the real property tax law and the tax law, in relation to removing references to the former STAR offset program (Part S); to amend the real property tax law, in relation to assessment ceilings for railroads and local public utility mass real property; and to repeal section 3 of chapter 475 of the laws of 2013 amending the real property tax law relating to assessment ceilings for local public utility mass real property (Part T); to amend the real property tax law, in relation to extending the period for enrollment in the STAR income verification program (Part U); to amend the racing, pari-mutuel wagering and breeding law and the tax law, in relation to financing and constructing a new equine drug testing laboratory (Part V); to amend the racing, pari-mutuel wagering and breeding law, in relation to enacting the interstate compact on anti-doping and drug testing standards (Part W); to amend the racing, pari-mutuel wagering and breeding law, in relation to restrictions on sports wagering lounges in casinos (Part X); to amend the tax law, in relation to a keno style lottery game (Part Y); to amend the racing, pari-mutuel wagering and breeding law, in relation to licenses for simulcast facilities, sums relating to track simulcast, simulcast of out-of- state thoroughbred races, simulcasting of races run by out-of-state harness tracks and distributions of wagers; to amend chapter 281 of the laws of 1994 amending the racing, pari-mutuel wagering and breed- ing law and other laws relating to simulcasting and to amend chapter 346 of the laws of 1990 amending the racing, pari-mutuel wagering and breeding law and other laws relating to simulcasting and the imposi- tion of certain taxes, in relation to extending certain provisions thereof; and to amend the racing, pari-mutuel wagering and breeding law, in relation to extending certain provisions thereof (Part Z); to amend the real property tax law, in relation to the income limit for the basic STAR exemption (Part AA); and relating to constituting a new 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 cultivate, 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 vehicle and traffic law, in relation to making technicalS. 7509--A 3 A. 9509--A changes regarding the definition of cannabis; to amend the penal law, in relation to the qualification of certain offenses involving canna- bis and to exempt certain persons from prosecution for the use, consumption, display, production or distribution of cannabis; 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 alcoholic beverage control law, the general obligations law, the social services law, the state finance law, the penal law and the vehicle and traffic law, in relation to making conforming changes; 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 proce- dure law relating to medical use of marihuana, in relation to the effectiveness thereof; to repeal title 5-A of article 33 of the public health law relating to medical use of marihuana; to repeal article 29-A of the agriculture and markets law relating to the regulation of hemp extract; to repeal subdivision 4 of section 220.06 and subdivi- sion 10 of section 220.09 of the penal law relating to criminal possession of a controlled substance; to repeal sections 221.10 and 221.30 of the penal law relating to the criminal possession of mari- huana; and to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia (Part BB) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law major components of legislation 2 which are necessary to implement the state fiscal plan for the 2020-2021 3 state fiscal year. Each component is wholly contained within a Part 4 identified as Parts A through BB. The effective date for each particular 5 provision contained within such Part is set forth in the last section of 6 such Part. Any provision in any section contained within a Part, includ- 7 ing the effective date of the Part, which makes a reference to a section 8 "of this act", when used in connection with that particular component, 9 shall be deemed to mean and refer to the corresponding section of the 10 Part in which it is found. Section three of this act sets forth the 11 general effective date of this act. 12 PART A 13 Section 1. Section 2 of part U of chapter 59 of the laws of 2017, 14 amending the tax law, relating to the financial institution data match 15 system for state tax collection purposes, is amended to read as follows: 16 § 2. This act shall take effect immediately [and shall expire April 1,172020 when upon such date the provisions of this act shall be deemed18repealed]. 19 § 2. Section 2 of part Q of chapter 59 of the laws of 2013, amending 20 the tax law, relating to serving an income execution with respect to 21 individual tax debtors without filing a warrant, as amended by section 1 22 of part X of chapter 59 of the laws of 2017, is amended to read as 23 follows: 24 § 2. This act shall take effect immediately [and shall expire and be25deemed repealed on and after April 1, 2020]. 26 § 3. This act shall take effect immediately.S. 7509--A 4 A. 9509--A 1 PART B 2 Section 1. Paragraph (a) and subparagraph 2 of paragraph (b) of subdi- 3 vision 29 of section 210-B of the tax law, as amended by section 1 of 4 part Q of chapter 59 of the laws of 2018, are amended to read as 5 follows: 6 (a) Allowance of credit. For taxable years beginning on or after Janu- 7 ary first, two thousand fifteen and before January first, two thousand 8 [twenty-one] twenty-three, a taxpayer shall be allowed a credit, to be 9 computed as provided in this subdivision, against the tax imposed by 10 this article, for hiring and employing, for not less than one year and 11 for not less than thirty-five hours each week, a qualified veteran with- 12 in the state. The taxpayer may claim the credit in the year in which the 13 qualified veteran completes one year of employment by the taxpayer. If 14 the taxpayer claims the credit allowed under this subdivision, the 15 taxpayer may not use the hiring of a qualified veteran that is the basis 16 for this credit in the basis of any other credit allowed under this 17 article. 18 (2) who commences employment by the qualified taxpayer on or after 19 January first, two thousand fourteen, and before January first, two 20 thousand [twenty] twenty-two; and 21 § 2. Paragraph 1 and subparagraph (B) of paragraph 2 of subsection 22 (a-2) of section 606 of the tax law, as amended by section 2 of part Q 23 of chapter 59 of the laws of 2018, are amended to read as follows: 24 (1) Allowance of credit. For taxable years beginning on or after Janu- 25 ary first, two thousand fifteen and before January first, two thousand 26 [twenty-one] twenty-three, a taxpayer shall be allowed a credit, to be 27 computed as provided in this subsection, against the tax imposed by this 28 article, for hiring and employing, for not less than one year and for 29 not less than thirty-five hours each week, a qualified veteran within 30 the state. The taxpayer may claim the credit in the year in which the 31 qualified veteran completes one year of employment by the taxpayer. If 32 the taxpayer claims the credit allowed under this subsection, the 33 taxpayer may not use the hiring of a qualified veteran that is the basis 34 for this credit in the basis of any other credit allowed under this 35 article. 36 (B) who commences employment by the qualified taxpayer on or after 37 January first, two thousand fourteen, and before January first, two 38 thousand [twenty] twenty-two; and 39 § 3. Paragraph 1 and subparagraph (B) of paragraph 2 of subdivision 40 (g-1) of section 1511 of the tax law, as amended by section 3 of part Q 41 of chapter 59 of the laws of 2018, are amended to read as follows: 42 (1) Allowance of credit. For taxable years beginning on or after Janu- 43 ary first, two thousand fifteen and before January first, two thousand 44 [twenty-one] twenty-three, a taxpayer shall be allowed a credit, to be 45 computed as provided in this subdivision, against the tax imposed by 46 this article, for hiring and employing, for not less than one year and 47 for not less than thirty-five hours each week, a qualified veteran with- 48 in the state. The taxpayer may claim the credit in the year in which 49 the qualified veteran completes one year of employment by the taxpayer. 50 If the taxpayer claims the credit allowed under this subdivision, the 51 taxpayer may not use the hiring of a qualified veteran that is the basis 52 for this credit in the basis of any other credit allowed under this 53 article.S. 7509--A 5 A. 9509--A 1 (B) who commences employment by the qualified taxpayer on or after 2 January first, two thousand fourteen, and before January first, two 3 thousand [twenty] twenty-two; and 4 § 4. This act shall take effect immediately. 5 PART C 6 Section 1. Section 2 of chapter 540 of the laws of 1992, amending the 7 real property tax law relating to oil and gas charges, as amended by 8 section 1 of part I of chapter 59 of the laws of 2017, is amended to 9 read as follows: 10 § 2. This act shall take effect immediately and shall be deemed to 11 have been in full force and effect on and after April 1, 1992; provided, 12 however that any charges imposed by section 593 of the real property tax 13 law as added by section one of this act shall first be due for values 14 for assessment rolls with tentative completion dates after July 1, 1992, 15 and provided further, that this act shall remain in full force and 16 effect until March 31, [2021] 2024, at which time section 593 of the 17 real property tax law as added by section one of this act shall be 18 repealed. 19 § 2. This act shall take effect immediately. 20 PART D 21 Section 1. Subparagraph (iv) of paragraph (a) of subdivision 1 of 22 section 210 of the tax law, as amended by section 12 of part A of chap- 23 ter 59 of the laws of 2014, is amended to read as follows: 24 (iv) for taxable years beginning before January first, two thousand 25 sixteen, if the business income base is not more than two hundred ninety 26 thousand dollars the amount shall be six and one-half percent of the 27 business income base; if the business income base is more than two 28 hundred ninety thousand dollars but not over three hundred ninety thou- 29 sand dollars the amount shall be the sum of (1) eighteen thousand eight 30 hundred fifty dollars, (2) seven and one-tenth percent of the excess of 31 the business income base over two hundred ninety thousand dollars but 32 not over three hundred ninety thousand dollars and (3) four and thirty- 33 five hundredths percent of the excess of the business income base over 34 three hundred fifty thousand dollars but not over three hundred ninety 35 thousand dollars. For taxable years beginning on or after January first, 36 two thousand twenty-one the amount shall be four percent of the taxpay- 37 er's business income base; 38 § 2. Paragraph (d) of subdivision 1 of section 210-B of the tax law, 39 as amended by section 31 of part T of chapter 59 of the laws of 2015, is 40 amended to read as follows: 41 (d) Except as otherwise provided in this paragraph, the credit allowed 42 under this subdivision for any taxable year shall not reduce the tax due 43 for such year to less than the fixed dollar minimum amount prescribed in 44 paragraph (d) of subdivision one of section two hundred ten of this 45 article. However, if the amount of credit allowable under this subdivi- 46 sion for any taxable year reduces the tax to such amount or if the 47 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 48 any amount of credit allowed for a taxable year commencing prior to 49 January first, nineteen hundred eighty-seven and not deductible in such 50 taxable year may be carried over to the following year or years and may 51 be deducted from the taxpayer's tax for such year or years but in no 52 event shall such credit be carried over to taxable years commencing onS. 7509--A 6 A. 9509--A 1 or after January first, two thousand two, and any amount of credit 2 allowed for a taxable year commencing on or after January first, nine- 3 teen hundred eighty-seven and not deductible in such year may be carried 4 over to the fifteen taxable years next following such taxable year and 5 may be deducted from the taxpayer's tax for such year or years. In lieu 6 of such carryover, any such taxpayer which qualifies as a new business 7 under paragraph (f) of this subdivision or a taxpayer that qualifies as 8 an eligible farmer for purposes of paragraph (b) of subdivision eleven 9 of this section may elect to treat the amount of such carryover as an 10 overpayment of tax to be credited or refunded in accordance with the 11 provisions of section ten hundred eighty-six of this chapter, provided, 12 however, the provisions of subsection (c) of section ten hundred eight- 13 y-eight of this chapter notwithstanding, no interest shall be paid ther- 14 eon. 15 § 3. Paragraph 5 of subsection (a) of section 606 of the tax law, as 16 amended by chapter 170 of the laws of 1994, is amended to read as 17 follows: 18 (5) If the amount of credit allowable under this subsection for any 19 taxable year shall exceed the taxpayer's tax for such year, the excess 20 allowed for a taxable year commencing prior to January first, nineteen 21 hundred eighty-seven may be carried over to the following year or years 22 and may be deducted from the taxpayer's tax for such year or years, but 23 in no event shall such credit be carried over to taxable years commenc- 24 ing on or after January first, nineteen hundred ninety-seven, and any 25 amount of credit allowed for a taxable year commencing on or after Janu- 26 ary first, nineteen hundred eighty-seven and not deductible in such year 27 may be carried over to the ten taxable years next following such taxable 28 year and may be deducted from the taxpayer's tax for such year or years. 29 In lieu of carrying over any such excess, a taxpayer who qualifies as an 30 owner of a new business for purposes of paragraph ten of this subsection 31 or a taxpayer who qualifies as an eligible farmer for purposes of para- 32 graph two of subsection (n) of this section may, at his option, receive 33 such excess as a refund. Any refund paid pursuant to this paragraph 34 shall be deemed to be a refund of an overpayment of tax as provided in 35 section six hundred eighty-six of this article, provided, however, that 36 no interest shall be paid thereon. 37 § 4. Paragraph 39 of subsection (c) of section 612 of the tax law, as 38 added by section 1 of part Y of chapter 59 of the laws of 2013, is 39 amended to read as follows: 40 (39) In the case of a taxpayer who is a small business who has busi- 41 ness income and/or farm income as defined in the laws of the United 42 States, an amount equal to three percent of the net items of income, 43 gain, loss and deduction attributable to such business or farm entering 44 into federal adjusted gross income, but not less than zero, for taxable 45 years beginning after two thousand thirteen, an amount equal to three 46 and three-quarters percent of the net items of income, gain, loss and 47 deduction attributable to such business or farm entering into federal 48 adjusted gross income, but not less than zero, for taxable years begin- 49 ning after two thousand fourteen, [and] an amount equal to five percent 50 of the net items of income, gain, loss and deduction attributable to 51 such business or farm entering into federal adjusted gross income, but 52 not less than zero, for taxable years beginning after two thousand 53 fifteen, and an amount equal to fifteen percent of the net items of 54 income, gain, loss and deduction attributable to such business or farm 55 entering into federal adjusted gross income, but not less than zero, for 56 taxable years beginning after two thousand twenty. For the purposes ofS. 7509--A 7 A. 9509--A 1 this paragraph, the term small business shall mean a sole proprietor or 2 a farm business who employs one or more persons during the taxable year 3 and who has net business income or net farm income of less than two 4 hundred fifty thousand dollars. 5 § 5. Paragraph 1 of subsection (c) of section 1085 of the tax law, as 6 amended by section 4 of part KK of chapter 59 of the laws of 2018, is 7 amended to read as follows: 8 (1) If any taxpayer, except a New York S corporation as defined in 9 subdivision one-A of section two hundred eight of this chapter, fails to 10 file a declaration of estimated tax under article nine-A of this chap- 11 ter, or fails to pay all or any part of an amount which is applied as an 12 installment against such estimated tax, it shall be deemed to have made 13 an underpayment of estimated tax. There shall be added to the tax for 14 the taxable year an amount at the underpayment rate set by the commis- 15 sioner pursuant to section one thousand ninety-six of this article, or 16 if no rate is set, at the rate of seven and one-half percent per annum 17 upon the amount of the underpayment for the period of the underpayment 18 but not beyond the fifteenth day of the fourth month following the close 19 of the taxable year. Provided, however, that, for taxable years begin- 20 ning on or after January first, two thousand seventeen and before Janu- 21 ary first, two thousand eighteen, no amount shall be added to the tax 22 with respect to the portion of such tax related to the amount of any 23 interest deductions directly or indirectly attributable to the amount 24 included in exempt CFC income pursuant to subparagraph (ii) of paragraph 25 (b) of subdivision six-a of section two hundred eight of this chapter or 26 the forty percent reduction of such exempt CFC income in lieu of inter- 27 est attribution if the election described in paragraph (b) of subdivi- 28 sion six-a of such section is made. The amount of the underpayment shall 29 be, with respect to any installment of estimated tax computed on the 30 basis of either the preceding year's tax or the second preceding year's 31 tax, the excess of the amount required to be paid over the amount, if 32 any, paid on or before the last day prescribed for such payment or, with 33 respect to any other installment of estimated tax, the excess of the 34 amount of the installment which would be required to be paid if the 35 estimated tax were equal to ninety-one percent of the tax shown on the 36 return for the taxable year (or if no return was filed, ninety-one 37 percent of the tax for such year) over the amount, if any, of the 38 installment paid on or before the last day prescribed for such payment. 39 In any case in which there would be no underpayment if "eighty percent" 40 were substituted for "ninety-one percent" each place it appears in this 41 subsection, the addition to the tax shall be equal to seventy-five 42 percent of the amount otherwise determined. No underpayment shall be 43 deemed to exist with respect to a declaration or installment otherwise 44 due on or after the termination of existence of the taxpayer. 45 § 6. This act shall take effect immediately; provided however that 46 sections two and three of this act shall apply to property acquired by 47 purchase on or after January 1, 2021, and section five of this act shall 48 apply to taxable years beginning on or after January 1, 2020. 49 PART E 50 Section 1. Paragraph 1 of subsection (aa) of section 606 of the tax 51 law, as amended by section 1 of part P of chapter 61 of the laws of 52 2005, is amended to read as follows: 53 (1) Residents. [A taxpayer] There shall be allowed a credit against 54 the tax imposed by this article in an amount equal to twenty percent ofS. 7509--A 8 A. 9509--A 1 the [premium] premiums paid during the taxable year for long-term care 2 insurance. The credit amount shall not exceed one thousand five hundred 3 dollars and shall be allowed only if the amount of New York adjusted 4 gross income required to be reported on the return is less than two 5 hundred fifty thousand dollars. In order to qualify for such credit, the 6 taxpayer's premium payment must be for the purchase of or for continuing 7 coverage under a long-term care insurance policy that qualifies for such 8 credit pursuant to section one thousand one hundred seventeen of the 9 insurance law. If the amount of the credit allowable under this 10 subsection for any taxable year shall exceed the taxpayer's tax for such 11 year, the excess may be carried over to the following year or years and 12 may be deducted from the taxpayer's tax for such year or years. 13 § 2. This act shall take effect immediately and apply to taxable years 14 beginning on or after January 1, 2020. 15 PART F 16 Section 1. Paragraph 6 of subsection (d) of section 606 of the tax 17 law, as amended by section 3 of part V of chapter 60 of the laws of 18 2004, is amended to read as follows: 19 (6) Notification. (A) The commissioner shall periodically, but not 20 less than every three years, make efforts to alert taxpayers that may be 21 currently eligible to receive the credit provided under this subsection, 22 and the credit provided under any local law enacted pursuant to 23 subsection (f) of section thirteen hundred ten of this chapter, as to 24 their potential eligibility. In making the determination of whether a 25 taxpayer may be eligible for such credit, the commissioner shall use 26 such data as may be appropriate and available, including, but not limit- 27 ed to, data available from the United States Department of Treasury, 28 Internal Revenue Service and New York state income tax returns for 29 preceding tax years. 30 (B) If the department determines that the taxpayer is eligible to 31 receive the credit provided under this subsection but has not claimed 32 such credit on his or her return, the department, at its discretion, may 33 compute the taxpayer's liability and allow the credit, and, if applica- 34 ble, issue any refund for the allowable credit amount provided under 35 this subsection. Any refund paid pursuant to this subparagraph shall be 36 deemed to be a refund of an overpayment of tax as provided in section 37 six hundred eighty-six of this article, provided, however, that no 38 interest shall be paid thereon. 39 § 2. Subsection (f) of section 1310 of the tax law is amended by 40 adding a new paragraph 6 to read as follows: 41 (6) If the department determines that the taxpayer is eligible to 42 receive the credit provided under this subsection but has not claimed 43 such credit on his or her return, the department, at its discretion, may 44 compute and issue any refund for the allowable credit amount provided 45 under this subsection. Any refund paid pursuant to this paragraph shall 46 be deemed to be a refund of an overpayment of tax as provided in section 47 six hundred eighty-six of this chapter, provided, however, that no 48 interest shall be paid thereon. 49 § 3. Section 613 of the tax law, as added by chapter 563 of the laws 50 of 1960, is amended to read as follows: 51 § 613. New York deduction of a resident individual. The New York 52 deduction of a resident individual shall be his New York standard 53 deduction unless he elects to deduct his New York itemized deduction 54 under the conditions set forth in section six hundred fifteen of thisS. 7509--A 9 A. 9509--A 1 article. If an individual taxpayer has elected to deduct his New York 2 itemized deduction computed pursuant to section six hundred fifteen of 3 this article, but the department determines that the New York standard 4 deduction allowable pursuant to section six hundred fourteen of this 5 article is greater, the department may recompute the taxpayer's tax 6 liability pursuant to section six hundred eleven of this article using 7 the New York standard deduction provided in section six hundred fourteen 8 of this article. The department will notify the taxpayer of any adjust- 9 ment to the election. 10 § 4. Subdivision (d) of section 11-1706 of the administrative code of 11 the city of New York is amended by adding a new paragraph 5 to read as 12 follows: 13 (5) If the state commissioner of taxation and finance determines that 14 the taxpayer is eligible to receive the credit provided under this 15 subdivision but has not claimed such credit on his or her return, the 16 state commissioner of taxation and finance, at his or her discretion, 17 may compute and issue any refund for the allowable credit amount 18 provided under this subdivision. Any refund paid pursuant to this para- 19 graph shall be deemed to be a refund of an overpayment of tax as 20 provided in section 11-1786 of this title, provided, however, that no 21 interest shall be paid thereon. 22 § 5. This act shall take effect immediately. 23 PART G 24 Section 1. Paragraph 1 of subsection (c-1) of section 606 of the tax 25 law, as amended by section 1 of part P of chapter 59 of the laws of 26 2018, is amended to read as follows: 27 (1) A resident taxpayer shall be allowed a credit as provided herein 28 equal to the greater of one hundred dollars times the number of qualify- 29 ing children of the taxpayer or the applicable percentage of the child 30 tax credit allowed the taxpayer under section twenty-four of the inter- 31 nal revenue code for the same taxable year for each qualifying child. 32 Provided, however, in the case of a taxpayer whose federal adjusted 33 gross income exceeds the applicable threshold amount set forth by 34 section 24(b)(2) of the Internal Revenue Code, the credit shall only be 35 equal to the applicable percentage of the child tax credit allowed the 36 taxpayer under section 24 of the Internal Revenue Code for each qualify- 37 ing child. For the purposes of this subsection, a qualifying child shall 38 be a child who meets the definition of qualified child under section 39 24(c) of the internal revenue code and is at least four years of age. 40 Provided, however, in the case of a resident taxpayer with a New York 41 state adjusted gross income of fifty thousand dollars or less, a quali- 42 fying child shall be a child who meets the definition of a qualifying 43 child under section 24(c) of the Internal Revenue Code. The applicable 44 percentage shall be thirty-three percent. For purposes of this 45 subsection, any reference to section 24 of the Internal Revenue Code 46 shall be a reference to such section as it existed immediately prior to 47 the enactment of Public Law 115-97. 48 § 2. This act shall take effect immediately and shall apply to taxable 49 years beginning on and after January 1, 2021. 50 PART H 51 Section 1. Subdivision 6 of section 470 of the tax law, as added by 52 chapter 61 of the laws of 1989, is amended to read as follows:S. 7509--A 10 A. 9509--A 1 6. "Wholesale price." The [established] price for which a manufacturer 2 or other person sells tobacco products to a distributor, including the 3 federal excise taxes paid by the manufacturer or other person, before 4 the allowance of any discount, trade allowance, rebate or other 5 reduction. 6 [In the absence of such an established price, a manufacturer's] The 7 invoice [price of any] received by a distributor with respect to its 8 purchase of a tobacco product shall be presumptive evidence of the 9 wholesale price of such tobacco product[, and in its absence the price10at which such tobacco products were purchased shall be presumed to be11the wholesale price, unless evidence of a lower wholesale price shall be12established or any industry standard of markups relating to the purchase13price in relation to the wholesale price shall be established]. 14 § 2. Subdivision 3 of section 481 of the tax law, as amended by chap- 15 ter 190 of the laws of 1990, is amended to read as follows: 16 3. (a) For purposes of this chapter, the certificate of the commis- 17 sioner of taxation and finance to the effect that a tax or fee imposed 18 by this article has not been paid, that a return required by or under 19 the provisions of this article has not been filed, or that information 20 has not been supplied, as required by or under the provisions of this 21 article, or that a bond or other security required by or pursuant to the 22 provisions of this article has not been filed, or that books, accounts, 23 records, memoranda, documents or papers have not been supplied as 24 required by or pursuant to the authority of this article, or that a 25 retail dealer or vending machine owner or operator is not currently or 26 validly registered as required by this article shall be prima facie 27 evidence that such tax or fee has not been paid, such return not filed, 28 such information not supplied, such bond or other security not filed, 29 that such books, accounts, records, memoranda, documents or papers have 30 not been supplied, or that such retail dealer or vending machine owner 31 or operator is not currently or validly registered. 32 (b) Any person required to make or maintain records under this article 33 who fails to maintain or make available such records may be subject to a 34 penalty not to exceed one thousand dollars for each monthly reporting 35 period or part thereof for which records are not maintained or provided 36 by such person. This penalty is in addition to any other penalty 37 provided for in this article, but will not be imposed and collected more 38 than once for such failures for the same reporting period or part there- 39 of. If the commissioner determines that any failure described in this 40 subdivision for a given reporting period was entirely due to reasonable 41 cause and not to willful neglect, the commissioner may waive the penalty 42 imposed for that period. The penalties imposed by this subdivision will 43 be paid and disposed of in the same manner as other revenues from this 44 article. These penalties will be determined, assessed, collected, paid 45 and enforced in the same manner as the tax imposed by this article, and 46 all the provisions of this article relating to tax will be deemed also 47 to apply to the penalties imposed by this subdivision. 48 § 3. This act shall take effect on October 1, 2020; provided however, 49 that section one of this act shall apply to all tobacco products 50 possessed in this state for sale on or after such date. 51 PART I 52 Section 1. Section 17 of the alcoholic beverage control law is amended 53 by adding a new subdivision 3-a to read as follows:S. 7509--A 11 A. 9509--A 1 3-a. To suspend or cancel any license pursuant to and corresponding in 2 duration with an action of the commissioner of taxation and finance 3 under subdivision four of section four hundred eighty-a of the tax law. 4 A suspension or cancellation under this subdivision shall be initiated 5 upon receipt by the authority of notice from the commissioner of taxa- 6 tion and finance of such action under subdivision four of section four 7 hundred eighty-a of the tax law and shall be effective upon service of 8 an order by the authority served at the licensed premises. Such suspen- 9 sion or cancellation issued by the authority shall be appealable only as 10 provided for in paragraph (b) of subdivision four of section four 11 hundred eighty-a of the tax law. The power to issue such suspensions or 12 cancellations may be delegated to the chairman, or to such other offi- 13 cers or employees as may be designated by the chairman. 14 § 2. Subdivision 9 of section 470 of the tax law, as amended by chap- 15 ter 61 of the laws of 1989, is amended to read as follows: 16 9. "Retail dealer." Any person other than a wholesale dealer engaged 17 in selling cigarettes or tobacco products. For purposes of section four 18 hundred eighty-a of this article and section eleven hundred thirty-four 19 of this chapter, such term shall include for each such person engaged in 20 selling cigarettes or tobacco products all "persons required to collect 21 tax," as defined in subdivision one of section eleven hundred thirty-one 22 of this chapter. 23 § 3. Section 470 of the tax law is amended by adding a new subdivision 24 21 to read as follows: 25 21. "Affiliated person." Persons are affiliated persons with respect 26 to each other where one of such persons has an ownership interest of 27 more than five percent, whether direct or indirect, in the other, or 28 where an ownership interest of more than five percent, whether direct or 29 indirect, is held in each of such persons by another person, or by a 30 group of other persons that are affiliated persons with respect to each 31 other. 32 § 3-a. Subdivision 1 of section 480-A of the tax law is amended by 33 adding new paragraph (f), to read as follows: 34 (f) In addition to the grounds for refusal of a registration specified 35 in section eleven hundred thirty-four of this chapter, the commissioner 36 may refuse to register any person as a retail dealer where any tax under 37 this chapter, or a tax or fee administered by the commissioner under any 38 other law, has been finally determined to be due from such person, or 39 from a person required to collect tax with respect to such person or 40 another person, and has not been paid. 41 § 3-b. Paragraph (d) of subdivision 2 of section 480-A of the Tax Law, 42 as amended by chapter 760 of the laws of 1992, is amended to read as 43 follows: 44 (d) Except as otherwise provided in this section, all the provisions 45 of article twenty-eight of this chapter relating to the personal liabil- 46 ity for the tax, administration, collection and determination of tax, 47 and deposit and disposition of revenue, including section eleven hundred 48 thirty-eight of this chapter relating to determination of tax and 49 section eleven hundred forty-five of this chapter (but only paragraphs 50 one and two of subdivision (a) of such section) relating to penalties 51 and interest for failure to file a return or pay tax within the time 52 required, shall apply to the applications for registration and the fees 53 for filing such applications required by this section and the penalty 54 imposed pursuant to subdivision three of this section, as if such appli- 55 cations were returns required under section eleven hundred thirty-six of 56 this chapter and such filing fees, penalties and interest were taxesS. 7509--A 12 A. 9509--A 1 required to be paid pursuant to such article twenty-eight, in the same 2 manner and with the same force and effect as if the language of such 3 provisions of such article twenty-eight had been incorporated in full 4 into this article, except to the extent that any such provision is 5 either inconsistent with a provision of this section or is not relevant 6 thereto and with such other modifications as may be necessary to adapt 7 the language of such provisions to the provisions of this section. 8 [Section eleven hundred thirty-four of such article twenty-eight shall9not apply to this section.] Provided, however, that the commissioner of 10 taxation and finance shall refund or credit an application fee paid with 11 respect to the registration of a vending machine or a retail place of 12 business in this state through which cigarettes or tobacco products were 13 to be sold if, prior to the beginning of the calendar year with respect 14 to which such registration relates, the certificate of registration 15 described in paragraph (a) of this subdivision is returned to the 16 department of taxation and finance, or if such certificate has been 17 destroyed, the retail dealer or vending machine operator satisfactorily 18 accounts to the commissioner for the missing certificate, but such vend- 19 ing machine or retail place of business may not be used to sell ciga- 20 rettes or tobacco products in this state during such calendar year, 21 unless it is re-registered. The provisions of section eleven hundred 22 thirty-nine of this chapter shall apply to the refund or credit author- 23 ized by the preceding sentence and for such purposes, such refund or 24 credit shall be deemed a refund of tax paid in error provided, however, 25 no interest shall be allowed or paid on any such refund. 26 § 4. Subdivision 4 of section 480-a of the tax law, as added by chap- 27 ter 629 of the laws of 1996, paragraph (d) as amended by chapter 262 of 28 the laws of 2000, is amended to read as follows: 29 4. (a) If a retail dealer possesses or sells unstamped or unlawfully 30 stamped packages of cigarettes, or if a retail dealer is also licensed 31 as an agent pursuant to section four hundred seventy-two and it 32 possesses unlawfully stamped packages of cigarettes or sells unstamped 33 or unlawfully stamped packages of cigarettes at retail, (i) its regis- 34 tration shall be [suspended] revoked for a period of [not more than six35months] one year, or (ii) for a second such possession or sale within a 36 period of five years[, its] by a retail dealer or any affiliated person 37 of such retail dealer, the registration of such retail dealer and the 38 registration of any retail dealer that is an affiliated person of such 39 retail dealer shall be [suspended] revoked for a period of [up to thir-40ty-six months] three years, or (iii) for a third such possession or sale 41 within a period of five years[, its] by a retail dealer or any affil- 42 iated person of such retail dealer, the registration [may] of such 43 retail dealer and the registration of any retail dealer that is an 44 affiliated person of such retail dealer shall be revoked for a period of 45 [up to] five years. A retail dealer registration shall be [suspended or] 46 revoked pursuant to this subdivision immediately upon such dealer's 47 receipt of written notice of [suspension or] revocation from the commis- 48 sioner. [If a retail dealer sells cigarettes through more than one place49of business in this state, the retail dealer registration shall not be50suspended or revoked pursuant to this subdivision, but the certificate51of registration issued to the place of business, cart, stand, truck or52other merchandising device where unstamped or unlawfully stamped ciga-53rettes were found shall be suspended or cancelled for possession or sale54of unstamped or unlawfully stamped packages of cigarettes, as if such55certificate of registration were a retail dealer registration. A suspen-56sion or cancellation of a certificate of registration shall be treatedS. 7509--A 13 A. 9509--A 1as if it were a suspension or revocation of a registration.] If 2 unstamped or unlawfully stamped cigarettes are found in a retail deal- 3 er's warehouse or a warehouse of any affiliated person of such retail 4 dealer, the [suspension or] revocation of the retail dealer's registra- 5 tion pursuant to this subdivision shall be applicable to each retail 6 place of business in this state through which such retail dealer and any 7 affiliated person of such retail dealer sells cigarettes. 8 (b) A retail dealer who is notified of a [suspension or] revocation of 9 its registration pursuant to this subdivision shall have the right to 10 have the [suspension or] revocation reviewed by the commissioner or his 11 or her designee by contacting the department at a telephone number or an 12 address to be disclosed in the notice of [suspension or] revocation 13 within ten days of such dealer's receipt of such notification. The 14 retail dealer may present written evidence or argument in support of its 15 defense to the [suspension or] revocation, or may appear at a scheduled 16 conference with the commissioner or his or her designee to present oral 17 arguments and written and oral evidence in support of such defense. The 18 commissioner or his or her designee is authorized to delay the effective 19 date of the [suspension or] revocation to enable the retail dealer to 20 present further evidence or arguments in connection with the [suspension21or] revocation. The commissioner or his or her designee shall cancel the 22 [suspension or] revocation of registration if the commissioner or his or 23 her designee is not satisfied by a preponderance of the evidence that 24 the retail dealer possessed or sold unstamped or unlawfully stamped 25 packages of cigarettes. 26 (c) An order of [suspension or] revocation of a retail dealer regis- 27 tration shall not be reviewable by the division of tax appeals, but may 28 be reviewed pursuant to article seventy-eight of the civil practice law 29 and rules by a proceeding commenced in the supreme court within four 30 months of the [suspension or] revocation of registration petitioning 31 that the order of [suspension or] revocation be enjoined or set aside. 32 Such proceeding shall be instituted in the county where the commissioner 33 has his or her principal office. Upon the filing of such petition the 34 court shall have jurisdiction to set aside such order of [suspension or] 35 revocation, in whole or in part, or to dismiss the petition. The juris- 36 diction of the supreme court shall be exclusive and its order dismissing 37 the petition or enjoining or setting aside such order, in whole or in 38 part, shall be final, subject to review by the appellate division of the 39 supreme court and the court of appeals in the same manner and form and 40 with the same effect as provided by law for appeals from a judgment in a 41 special proceeding. All such proceedings shall be heard and determined 42 by the court and by any appellate court as expeditiously as possible and 43 with lawful precedence over other civil matters. All such proceedings 44 for review shall be heard on the petition, transcript and other papers, 45 and on appeal shall be heard on the record, without requirement of 46 printing. 47 (d) After review of the [suspension or] revocation of registration by 48 the commissioner or his or her designee is complete, or the time within 49 which a retail dealer may request such review has expired without such a 50 request having been made, notice of the [suspension or] revocation of a 51 retail dealer registration pursuant to this subdivision shall be given 52 by the commissioner to the head of the division of the lottery for the 53 purpose of enforcement of section sixteen hundred seven of this chapter 54 [and such division may suspend or revoke any license issued with respect55to a lottery agent's specific location pursuant to article thirty-four56of this chapter if such lottery agent is a retail dealer of cigarettesS. 7509--A 14 A. 9509--A 1whose registration for such location is suspended or revoked pursuant to2this section]. In addition, notice of such [suspension or] revocation 3 shall also be given to the [division of alcoholic beverage control] 4 state liquor authority and such [suspension or] revocation shall consti- 5 tute cause[, for purposes of section one hundred eighteen of the alco-6holic beverage control law,] for revocation, cancellation or suspension 7 of any license or permit issued pursuant to [such] the alcoholic bever- 8 age control law to the retail dealer of cigarettes whose registration is 9 revoked pursuant to this section. 10 § 5. Subparagraph (A) of paragraph 4 of subdivision (a) of section 11 1134 of the tax law, as amended by section 21-a of part U of chapter 61 12 of the laws of 2011, is amended to read as follows: 13 (A) Where a person who holds a certificate of authority (i) willfully 14 fails to file a report or return required by this article, (ii) willful- 15 ly files, causes to be filed, gives or causes to be given a report, 16 return, certificate or affidavit required under this article which is 17 false, (iii) willfully fails to comply with the provisions of paragraph 18 two or three of subdivision (e) of section eleven hundred thirty-seven 19 of this article, (iv) willfully fails to prepay, collect, truthfully 20 account for or pay over any tax imposed under this article or pursuant 21 to the authority of article twenty-nine of this chapter, (v) fails to 22 obtain a bond pursuant to paragraph two of subdivision (e) of section 23 eleven hundred thirty-seven of this part, or fails to comply with a 24 notice issued by the commissioner pursuant to paragraph three of such 25 subdivision, [or] (vi) has been convicted of a crime provided for in 26 this chapter, or (vii) where such person, or any person affiliated with 27 such person as such term is defined in subdivision twenty-one of section 28 four hundred seventy of this chapter, has had a retail dealer registra- 29 tion issued pursuant to section four hundred eighty-a of this chapter 30 revoked pursuant to paragraph (a) of subdivision four of such section 31 four hundred eighty-a, the commissioner may revoke or suspend such 32 certificate of authority and all duplicates thereof. Provided, however, 33 that the commissioner may revoke or suspend a certificate of authority 34 based on the grounds set forth in clause (vi) of this subparagraph only 35 where the conviction referred to occurred not more than one year prior 36 to the date of revocation or suspension; and provided further that where 37 the commissioner revokes or suspends a certificate of authority based on 38 the grounds set forth in clause (vii) of this subparagraph, such suspen- 39 sion or revocation shall continue for as long as the revocation of the 40 retail dealer registration pursuant to section four hundred eighty-a of 41 this chapter remains in effect. 42 § 6. Subparagraph (A) of paragraph 4 of subdivision (a) of section 43 1134 of the tax law, as amended by chapter 2 of the laws of 1995, is 44 amended to read as follows: 45 (A) Where a person who holds a certificate of authority (i) willfully 46 fails to file a report or return required by this article, (ii) willful- 47 ly files, causes to be filed, gives or causes to be given a report, 48 return, certificate or affidavit required under this article which is 49 false, (iii) willfully fails to comply with the provisions of paragraph 50 two or three of subdivision (e) of section eleven hundred thirty-seven 51 of this article, (iv) willfully fails to prepay, collect, truthfully 52 account for or pay over any tax imposed under this article or pursuant 53 to the authority of article twenty-nine of this chapter, [or] (v) has 54 been convicted of a crime provided for in this chapter, or (vi) where 55 such person, or any person affiliated with such person as such term is 56 defined in subdivision twenty-one of section four hundred seventy ofS. 7509--A 15 A. 9509--A 1 this chapter, has had a retail dealer registration issued pursuant to 2 section four hundred eighty-a of this chapter suspended or revoked 3 pursuant to paragraph (a) of subdivision four of such section four 4 hundred eighty-a, the commissioner may revoke or suspend such certif- 5 icate of authority and all duplicates thereof. Provided, however, that 6 the commissioner may revoke or suspend a certificate of authority based 7 on the grounds set forth in clause (v) of this subparagraph only where 8 the conviction referred to occurred not more than one year prior to the 9 date of revocation or suspension; and provided further that where the 10 commissioner revokes or suspends a certificate of authority based on the 11 grounds set forth in clause (vi) of this subparagraph, such suspension 12 or revocation shall continue for as long as the revocation of the retail 13 dealer registration pursuant to section four hundred eighty-a of this 14 chapter remains in effect. 15 § 7. Subparagraph (B) of paragraph 4 of subdivision (a) of section 16 1134 of the tax law, as amended by chapter 2 of the laws of 1995, is 17 amended to read as follows: 18 (B) Where a person files a certificate of registration for a certif- 19 icate of authority under this subdivision and in considering such appli- 20 cation the commissioner ascertains that (i) any tax imposed under this 21 chapter or any related statute, as defined in section eighteen hundred 22 of this chapter, has been finally determined to be due from such person 23 and has not been paid in full, (ii) a tax due under this article or any 24 law, ordinance or resolution enacted pursuant to the authority of arti- 25 cle twenty-nine of this chapter has been finally determined to be due 26 from an officer, director, partner or employee of such person, and, 27 where such person is a limited liability company, also a member or 28 manager of such person, in the officer's, director's, partner's, 29 member's, manager's or employee's capacity as a person required to 30 collect tax on behalf of such person or another person and has not been 31 paid, (iii) such person has been convicted of a crime provided for in 32 this chapter within one year from the date on which such certificate of 33 registration is filed, (iv) an officer, director, partner or employee of 34 such person, and, where such person is a limited liability company, also 35 a member or manager of such person, which officer, director, partner, 36 member, manager or employee is a person required to collect tax on 37 behalf of such person filing a certificate of registration has in the 38 officer's, director's, partner's, member's, manager's or employee's 39 capacity as a person required to collect tax on behalf of such person or 40 of another person been convicted of a crime provided for in this chapter 41 within one year from the date on which such certificate of registration 42 is filed, (v) a shareholder owning more than fifty percent of the number 43 of shares of stock of such person (where such person is a corporation) 44 entitling the holder thereof to vote for the election of directors or 45 trustees, who owned more than fifty percent of the number of such shares 46 of another person (where such other person is a corporation) at the time 47 any tax imposed under this chapter or any related statute as defined in 48 section eighteen hundred of this chapter was finally determined to be 49 due and where such tax has not been paid in full, or at the time such 50 other person was convicted of a crime provided for in this chapter with- 51 in one year from the date on which such certificate of registration is 52 filed, [or] (vi) a certificate of authority issued to such person has 53 been revoked or suspended pursuant to subparagraph (A) of this paragraph 54 within one year from the date on which such certificate of registration 55 is filed, or (vii) a retail dealer registration issued pursuant to 56 section four hundred eighty-a of this chapter to such person, or to anyS. 7509--A 16 A. 9509--A 1 person affiliated with such person as such term is defined in subdivi- 2 sion twenty-one of section four hundred seventy of this chapter, has 3 been revoked pursuant to paragraph (a) of subdivision four of such 4 section four hundred eighty-a, where such revocation remains in effect, 5 the commissioner may refuse to issue a certificate of authority. 6 § 8. Section 1607 of the tax law is amended by adding a new subdivi- 7 sion i to read as follows: 8 i. A lottery sales agent's license shall be suspended or revoked upon 9 notification to the division by the commissioner of the revocation of 10 such agent's retail dealer registration pursuant to subdivision four of 11 section four hundred eighty-a of this chapter. Such suspension or revo- 12 cation shall continue for as long as the revocation of such retail deal- 13 er registration remains in effect. Notwithstanding any other law to the 14 contrary, lottery sales agents shall have no right to a hearing and 15 shall have no right to commence a court action or proceeding or to any 16 other legal recourse against the division with respect to any action 17 taken pursuant to this subdivision. Nothing in this subdivision shall 18 affect the right to review the revocation of a retail dealer registra- 19 tion, or any appeal therefrom, as provided in paragraphs (b) and (c) of 20 subdivision four of section four hundred eighty-a of this chapter. 21 § 9. This act shall take effect September 1, 2020 and shall apply to 22 the possession or sale of unstamped or illegally stamped cigarettes 23 occurring on and after such date; provided, however, that the amendments 24 to section 17 of the alcoholic beverage control law made by section one 25 of this act shall survive the expiration and reversion of such section 26 as provided in section 4 of chapter 118 of the laws of 2012, as amended; 27 provided, further, that the amendments to subparagraph (A) of paragraph 28 4 of subdivision (a) of section 1134 of the tax law made by section five 29 of this act shall not affect the expiration of such subparagraph and 30 shall expire therewith, when upon such date the provisions of section 31 six of this act shall take effect. 32 PART J 33 Section 1. Paragraph (e) of subdivision 1 of section 424 of the tax 34 law, as amended by chapter 190 of the laws of 1990, is amended to read 35 as follows: 36 (e) Sixty-seven cents per liter upon liquors containing not more than 37 twenty-four per centum of alcohol by volume except liquors containing 38 not more than two per centum of alcohol by volume, upon which the tax 39 shall be [one cent per liter] zero; and 40 § 2. Paragraph (g) of subdivision 1 of section 424 of the tax law, as 41 amended by chapter 433 of the laws of 1978 and the opening paragraph as 42 amended by chapter 508 of the laws of 1993, is amended to read as 43 follows: 44 (g) For purposes of this chapter, it is presumed that liquors are 45 possessed for the purpose of sale in this state if the quantity of 46 liquors possessed in this state, imported or caused to be imported into 47 this state or produced, distilled, manufactured, compounded, mixed or 48 fermented in this state exceeds ninety liters. Such presumption may be 49 rebutted by the introduction of substantial evidence to the contrary. In 50 any case where the quantity of alcoholic beverages taxable pursuant to 51 this article is a fractional part of one liter (or one gallon in the 52 case of beers) or an amount greater than a whole multiple of liters (or 53 gallons in the case of beers), the amount of tax levied and imposed on 54 such fractional part of one liter (or one gallon in the case of beers),S. 7509--A 17 A. 9509--A 1 or fractional part of a liter (or gallon) in excess of a whole multiple 2 of liters or gallons shall be such fractional part of the rate imposed 3 by paragraphs (a) through (f). 4 Notwithstanding any other provision of this article, the [tax commis-5sion] commissioner may permit the purchase of [liquors and wines] alco- 6 holic beverages without tax by a person registered as a distributor 7 under section four hundred twenty-one of this article [holder of a8distiller's license or a winery license, issued by the state liquor9authority] from another person so registered [holder of a distiller's10license or a winery license, issued by such authority], in which event 11 the [liquors and wines] alcoholic beverage so purchased shall be subject 12 to the taxes imposed by this article in the hands of the purchaser in 13 the same manner and to the same extent as if such purchaser had imported 14 or caused the same to be imported into this state or had produced, 15 distilled, manufactured, brewed, compounded, mixed or fermented the same 16 within this state. 17 § 3. Subparagraph (C) of paragraph 1 of subdivision (i) of section 18 1136 of the tax law, as separately amended by chapters 229 and 485 of 19 the laws of 2015, is amended, and a new subparagraph (D) is added to 20 read as follows: 21 (C) Every wholesaler, as defined by section three of the alcoholic 22 beverage control law, if it has made a sale of an alcoholic beverage, as 23 defined by section four hundred twenty of this chapter, without collect- 24 ing sales or use tax during the period covered by the return, except (i) 25 a sale to a person that has furnished an exempt organization certificate 26 to the wholesaler for that sale; or (ii) a sale to another wholesaler 27 whose license under the alcoholic beverage control law does not allow it 28 to make retail sales of the alcoholic beverage. For each vendor, opera- 29 tor, or recipient to whom the wholesaler has made a sale without 30 collecting sales or compensating use tax, the return must include the 31 total value of those sales made during the period covered by the return 32 (excepting the sales described in clauses (i) and (ii) of this subpara- 33 graph) and the vendor's, operator's or recipient's state liquor authori- 34 ty license number, along with the information required by paragraph two 35 of this subdivision. [A person operating pursuant to a farm winery36license as provided in section seventy-six-a of the alcoholic beverage37control law, or a person operating pursuant to a winery license as38provided in section seventy-six of the alcoholic beverage control law39and whose winery manufactures less than one hundred fifty thousand40finished gallons of wine annually, or a person operating pursuant to a41farm distillery license as provided in subdivision two-c of section42sixty-one of such law, or a person operating pursuant to a farm cidery43license as provided in section fifty-eight-c of the alcoholic beverage44control law, or a person operating pursuant to a farm brewery license as45provided in section fifty-one-a of the alcoholic beverage control law,46or a person operating pursuant to a brewer's license as provided in47section fifty-one of the alcoholic beverage control law who produces48less than sixty thousand barrels of beer a year, or a person operating49pursuant to any combination of such licenses, shall not be subject to50any of the requirements of this subdivision.] 51 (D) Notwithstanding the provisions of subparagraph (C) of this para- 52 graph, a person operating pursuant to any of the following licenses 53 shall not be subject to any of the requirements of this subdivision: (i) 54 a farm winery license, as provided in section seventy-six-a of the alco- 55 holic beverage control law; (ii) a winery license, as provided in 56 section seventy-six of the alcoholic beverage control law, where theS. 7509--A 18 A. 9509--A 1 number of gallons of wine, cider and mead produced annually by such 2 person does not exceed the annual limits on the number of finished 3 gallons of wine, cider and mead permitted to be produced by a farm 4 winery under subdivision eight of section seventy-six-a of the alcoholic 5 beverage control law; (iii) a farm distillery license, as provided in 6 subdivision two-c of section sixty-one of the alcoholic beverage control 7 law; (iv) a distiller's license, as provided in section sixty-one of the 8 alcoholic beverage control law, where the number of gallons of liquor 9 produced annually by such person does not exceed the annual limits on 10 the number of gallons of liquor permitted to be produced by a farm 11 distillery under paragraph (f) of subdivision two-c of section sixty-one 12 of the alcoholic beverage control law; (v) a farm cidery license, as 13 provided in section fifty-eight-c of the alcoholic beverage control law; 14 (vi) a cider producers' license, as provided in section fifty-eight of 15 the alcoholic beverage control law, where the number of gallons of cider 16 produced annually by such person does not exceed the annual limits on 17 the number of gallons of cider permitted to be produced by a farm cidery 18 under subdivision ten of section fifty-eight-c of the alcoholic beverage 19 control law; (vii) a farm brewery license, as provided in section 20 fifty-one-a of the alcoholic beverage control law; (viii) a brewer's 21 license, as provided in section fifty-one of the alcoholic beverage 22 control law, where the number of finished barrels of beer, cider and 23 braggot produced annually by such person does not exceed the annual 24 number of finished barrels of beer, cider and braggot permitted to be 25 produced by a farm brewery under subdivision ten of section fifty-one-a 26 of the alcoholic beverage control law; (ix) a farm meadery license, as 27 provided in section thirty-one of the alcoholic beverage control law; or 28 (x) a mead producers' license, as provided in section thirty of the 29 alcoholic beverage control law, where the number of gallons of mead and 30 braggot produced annually by such person does not exceed the annual 31 number of finished barrels of mead and braggot permitted to be produced 32 by a farm meadery under subdivision ten of section thirty-one of the 33 alcoholic beverage control law. Nothing in this subparagraph shall 34 exempt a person operating pursuant to multiple licenses under the alco- 35 holic beverage control law from the requirements of subparagraph (C) of 36 this paragraph if such person produces an amount of any alcoholic bever- 37 age in excess of the amounts permitted to be produced annually by a 38 person who holds only a farm winery, farm cidery, farm distillery, farm 39 brewery or farm meadery license for such beverage, nor shall this 40 section exempt any person holding a wholesalers' license under the alco- 41 holic beverage control law from the requirements of subparagraph (C) of 42 this paragraph. 43 § 4. This act shall take effect June 1, 2020. 44 PART K 45 Section 1. Subdivision (c) of section 1800 of the tax law, as amended 46 by section 13 of subpart I of part V-1 of chapter 57 of the laws of 47 2009, is amended to read as follows: 48 (c) As used in this article, the term "felony" and the term "misdemea- 49 nor" shall have the same meaning as they have in the penal law, and the 50 disposition of such offenses and the sentences imposed therefor shall be 51 as provided in such law except; (1) notwithstanding the provisions of 52 paragraph a of subdivision one of section 80.00 and paragraph (a) of 53 subdivision one of section 80.10 of the penal law relating to the fine 54 for a felony, the court may impose a fine not to exceed the greater ofS. 7509--A 19 A. 9509--A 1 double the amount of [the underpaid tax liability resulting from the2commission of the crime] tax liability evaded or fraudulent refund 3 received or applied for as a result of the commission of the crime, or 4 fifty thousand dollars, or, in the case of a corporation the fine may 5 not exceed the greater of double the amount of [the underpaid tax6liability resulting from the commission of the crime] tax liability 7 evaded or fraudulent refund received or applied for as a result of the 8 commission of the crime, or two hundred fifty thousand dollars and (2) 9 notwithstanding the provisions of subdivision one of section 80.05 and 10 paragraph (b) of subdivision one of section 80.10 of the penal law 11 relating to the fine for a class A misdemeanor, the court may impose a 12 fine not to exceed ten thousand dollars, except that in the case of a 13 corporation the fine may not exceed twenty thousand dollars. 14 § 2. Section 1803 of the tax law, as added by section 17 of subpart I 15 of part V-1 of chapter 57 of the laws of 2009, is amended to read as 16 follows: 17 § 1803. Criminal tax fraud in the fourth degree. A person commits 18 criminal tax fraud in the fourth degree when he or she commits a tax 19 fraud act or acts and[, with the intent to evade any tax due under this20chapter, or to defraud] thereby deprives or defrauds the state or any 21 political subdivision [thereof, the person pays the state and/or a poli-22tical subdivision of the state (whether by means of underpayment or23receipt of refund or both), in a period of not more than one year in24excess] of the state in an amount exceeding three thousand dollars [less25than the tax liability that is due]. Criminal tax fraud in the fourth 26 degree is a class E felony. 27 § 3. Section 1804 of the tax law, as added by section 18 of subpart I 28 of part V-1 of chapter 57 of the laws of 2009, is amended to read as 29 follows: 30 § 1804. Criminal tax fraud in the third degree. A person commits crim- 31 inal tax fraud in the third degree when he or she commits a tax fraud 32 act or acts and[, with the intent to evade any tax due under this chap-33ter, or to defraud] thereby deprives or defrauds the state or any poli- 34 tical subdivision of the state[, the person pays the state and/or a35political subdivision of the state (whether by means of underpayment or36receipt of refund or both), in a period of not more than one year in37excess of] in an amount exceeding ten thousand dollars [less than the38tax liability that is due]. Criminal tax fraud in the third degree is a 39 class D felony. 40 § 4. Section 1805 of the tax law, as added by section 19 of subpart I 41 of part V-1 of chapter 57 of the laws of 2009, is amended to read as 42 follows: 43 § 1805. Criminal tax fraud in the second degree. A person commits 44 criminal tax fraud in the second degree when he or she commits a tax 45 fraud act or acts and[, with the intent to evade any tax due under this46chapter, or to defraud] thereby deprives or defrauds the state or any 47 subdivision of the state[, the person pays the state and/or a political48subdivision of the state (whether by means of underpayment or receipt of49refund or both), in a period of not more than one year in excess of] in 50 an amount exceeding fifty thousand dollars [less than the tax liability51that is due]. Criminal tax fraud in the second degree is a class C felo- 52 ny. 53 § 5. Section 1806 of the tax law, as added by section 20 of subpart I 54 of part V-1 of chapter 57 of the laws of 2009, is amended to read as 55 follows:S. 7509--A 20 A. 9509--A 1 § 1806. Criminal tax fraud in the first degree. A person commits crim- 2 inal tax fraud in the first degree when he or she commits a tax fraud 3 act or acts and[, with the intent to evade any tax due under this chap-4ter, or to defraud] thereby deprives or defrauds the state or any subdi- 5 vision of the state[, the person pays the state and/or a political6subdivision of the state (whether by means of underpayment or receipt of7refund or both), in a period of not more than one year in excess of] in 8 an amount exceeding one million dollars [less than the tax liability9that is due]. Criminal tax fraud in the first degree is a class B felo- 10 ny. 11 § 6. Section 1807 of the tax law, as amended by section 5 of subpart A 12 of part S of chapter 57 of the laws of 2010, is amended to read as 13 follows: 14 § 1807. Aggregation. For purposes of this article, [the payments due15and not paid under a single article of this chapter pursuant to a common16scheme or plan or due and not paid, within one year, may be charged in a17single count, and the amount of underpaid tax liability incurred, within18one year,] (a) the amount deprived or defrauded within a three hundred 19 sixty-five consecutive day period may be aggregated in a single count, 20 or (b) when a person is shown to be acting pursuant to a common plan or 21 scheme constituting a systematic ongoing course of conduct, the total 22 amount deprived or defrauded under such scheme or plan may be charged in 23 a single count. 24 § 7. The tax law is amended by adding a new section 1810 to read as 25 follows: 26 § 1810. Criminal tax preparation in the second degree. A person 27 commits criminal tax preparation in the second degree when he or she 28 files or causes to be filed ten or more tax returns with the department, 29 within a period of not more than three hundred sixty-five consecutive 30 days, knowing that each contains materially false information or omits 31 material information with the intent to evade or reduce any tax liabil- 32 ity owed or to effect or inflate a refund. Criminal tax preparation in 33 the second degree is a class D felony. 34 § 8. The tax law is amended by adding a new section 1810-a to read as 35 follows: 36 § 1810-a. Criminal tax preparation in the first degree. A person 37 commits criminal tax preparation in the first degree when he or she 38 files or causes to be filed fifty or more tax returns with the depart- 39 ment, within a period of not more than three hundred sixty-five consec- 40 utive days, knowing that each contains materially false information or 41 omits material information with the intent to evade or reduce any tax 42 liability owed or to effect or inflate a refund. Criminal tax prepara- 43 tion in the first degree is a class C felony. 44 § 9. This act shall take effect immediately and shall apply to 45 offenses committed on or after such effective date. 46 PART L 47 Section 1. Section 352 of the economic development law is amended by 48 adding a new subdivision 8-a to read as follows: 49 8-a. "Green project" means a project deemed by the commissioner to 50 make products or develop technologies that are substantially aimed at 51 reducing greenhouse gas emissions or supporting the use of clean energy 52 in accordance with goals described in chapter one hundred six of the 53 laws of two thousand nineteen, along with the state energy plan and 54 future updates as described in section 6-104 of the energy law. "GreenS. 7509--A 21 A. 9509--A 1 project" shall include, but not be limited to, the manufacture or devel- 2 opment of products or technologies or supply chain components primarily 3 for renewable energy systems as defined in section sixty-six-p of the 4 public service law, vehicles that use non-hydrocarbon fuels and produce 5 zero or near zero emissions, heat pumps, energy efficiency, carbon 6 capture and storage, clean energy storage and other products that 7 significantly reduce greenhouse gas emissions by minimizing the utiliza- 8 tion of depletable resources or by improving industrial efficiency. 9 "Green project" shall not include a project primarily composed of (i) 10 necessarily local activities such as retail, building construction, or 11 the installation, deployment or adoption of a clean energy product or 12 technology at an end user's site, or (ii) the production of products or 13 development of technologies that would produce only marginal and incre- 14 mental energy savings or environmental benefits ancillary to the core 15 function of the product or technology. 16 § 2. Subdivision 1 of section 353 of the economic development law, as 17 amended by section 2 of part K of chapter 59 of the laws of 2017, is 18 amended to read as follows: 19 1. To be a participant in the excelsior jobs program, a business enti- 20 ty shall operate in New York state predominantly: 21 (a) as a financial services data center or a financial services back 22 office operation; 23 (b) in manufacturing; 24 (c) in software development and new media; 25 (d) in scientific research and development; 26 (e) in agriculture; 27 (f) in the creation or expansion of back office operations in the 28 state; 29 (g) in a distribution center; 30 (h) in an industry with significant potential for private-sector 31 economic growth and development in this state as established by the 32 commissioner in regulations promulgated pursuant to this article. In 33 promulgating such regulations the commissioner shall include job and 34 investment criteria; 35 (i) as an entertainment company; 36 (j) in music production; [or] 37 (k) as a life sciences company; or 38 (l) as a company operating in one of the industries listed in para- 39 graphs (b) through (e) of this subdivision and engaging in a green 40 project as defined in section three hundred fifty-two of this article. 41 § 3. Subdivision 5 of section 354 of the economic development law, as 42 amended by section 4 of part K of chapter 59 of the laws of 2017, is 43 amended to read as follows: 44 5. A participant may claim tax benefits commencing in the first taxa- 45 ble year that the business enterprise receives a certificate of tax 46 credit or the first taxable year listed on its preliminary schedule of 47 benefits, whichever is later. A participant may claim such benefits for 48 the next nine consecutive taxable years, provided that the participant 49 demonstrates to the department that it continues to satisfy the eligi- 50 bility criteria specified in section three hundred fifty-three of this 51 article and subdivision two of this section in each of those taxable 52 years, and provided that no tax credits may be allowed for taxable years 53 beginning on or after January first, two thousand [thirty] fifty. If, 54 in any given year, a participant who has satisfied the eligibility 55 criteria specified in section three hundred fifty-three of this article 56 realizes job creation less than the estimated amount, the credit shallS. 7509--A 22 A. 9509--A 1 be reduced by the proportion of actual job creation to the estimated 2 amount, provided the proportion is at least seventy-five percent of the 3 jobs estimated. 4 § 4. Subdivisions 1, 2 and 3 of section 355 of the economic develop- 5 ment law, subdivisions 1 and 2 as amended by section 4 of part G of 6 chapter 61 of the laws of 2011, and subdivision 3 as amended by section 7 1 of part YY of chapter 59 of the laws of 2017, are amended to read as 8 follows: 9 1. Excelsior jobs tax credit component. A participant in the excelsior 10 jobs program shall be eligible to claim a credit for each net new job it 11 creates in New York state. [The] In a project that is not a green 12 project, the amount of such credit per job shall be equal to the product 13 of the gross wages paid and up to 6.85 percent. In a green project, the 14 amount of such credit per job shall be equal to the product of the gross 15 wages paid and up to 7.5 percent. 16 2. Excelsior investment tax credit component. A participant in the 17 excelsior jobs program shall be eligible to claim a credit on qualified 18 investments. [The] In a project that is not a green project, the credit 19 shall be equal to two percent of the cost or other basis for federal 20 income tax purposes of the qualified investment. In a green project, 21 the credit shall be equal to five percent of the cost or other basis for 22 federal income tax purposes of the qualified investment. A participant 23 may not claim both the excelsior investment tax credit component and the 24 investment tax credit set forth in subdivision [twelve] one of section 25 two hundred [ten] ten-B, subsection (a) of section six hundred six, the 26 former subsection (i) of section fourteen hundred fifty-six, or subdivi- 27 sion (q) of section fifteen hundred eleven of the tax law for the same 28 property in any taxable year, except that a participant may claim both 29 the excelsior investment tax credit component and the investment tax 30 credit for research and development property. In addition, a taxpayer 31 who or which is qualified to claim the excelsior investment tax credit 32 component and is also qualified to claim the brownfield tangible proper- 33 ty credit component under section twenty-one of the tax law may claim 34 either the excelsior investment tax credit component or such tangible 35 property credit component, but not both with regard to a particular 36 piece of property. A credit may not be claimed until a business enter- 37 prise has received a certificate of tax credit, provided that qualified 38 investments made on or after the issuance of the certificate of eligi- 39 bility but before the issuance of the certificate of tax credit to the 40 business enterprise, may be claimed in the first taxable year for which 41 the business enterprise is allowed to claim the credit. Expenses 42 incurred prior to the date the certificate of eligibility is issued are 43 not eligible to be included in the calculation of the credit. 44 3. Excelsior research and development tax credit component. A partic- 45 ipant in the excelsior jobs program shall be eligible to claim a credit 46 equal to fifty percent of the portion of the participant's federal 47 research and development tax credit that relates to the participant's 48 research and development expenditures in New York state during the taxa- 49 ble year; provided however, if not a green project, the excelsior 50 research and development tax credit shall not exceed six percent of the 51 qualified research and development expenditures attributable to activ- 52 ities conducted in New York state, or, if a green project, the excelsior 53 research and development tax credit shall not exceed eight percent of 54 the research and development expenditures attributable to activities 55 conducted in New York state. If the federal research and development 56 credit has expired, then the research and development expendituresS. 7509--A 23 A. 9509--A 1 relating to the federal research and development credit shall be calcu- 2 lated as if the federal research and development credit structure and 3 definition in effect in two thousand nine were still in effect. 4 Notwithstanding any other provision of this chapter to the contrary, 5 research and development expenditures in this state, including salary or 6 wage expenses for jobs related to research and development activities in 7 this state, may be used as the basis for the excelsior research and 8 development tax credit component and the qualified emerging technology 9 company facilities, operations and training credit under the tax law. 10 § 5. Section 359 of the economic development law, as amended by 11 section 5 of part K of chapter 59 of the laws of 2017, is amended to 12 read as follows: 13 § 359. Cap on tax credit. [The total amount of tax credits listed on14certificates of tax credit issued by the commissioner for any taxable15year may not exceed the limitations set forth in this section.] One-half 16 of any amount of tax credits not awarded for a particular taxable year 17 [in years two thousand eleven through two thousand twenty-four] may be 18 used by the commissioner to award tax credits in another taxable year. 19 Credit components in the aggregate With respect to taxable 20 shall not exceed: years beginning in: 21 $ 50 million 2011 22 $ 100 million 2012 23 $ 150 million 2013 24 $ 200 million 2014 25 $ 250 million 2015 26 $ 183 million 2016 27 $ 183 million 2017 28 $ 183 million 2018 29 $ 183 million 2019 30 $ 183 million 2020 31 $ 183 million 2021 32 $ 133 million 2022 33 $ 83 million 2023 34 $ 36 million 2024 35 $ 200 million 2025 36 $ 200 million 2026 37 $ 200 million 2027 38 $ 200 million 2028 39 $ 200 million 2029 40 $ 200 million 2030 41 $ 200 million 2031 42 $ 200 million 2032 43 $ 200 million 2033 44 $ 200 million 2034 45 $ 200 million 2035 46 $ 200 million 2036 47 $ 200 million 2037 48 $ 200 million 2038 49 $ 200 million 2039 50 Twenty-five percent of tax credits shall be allocated to businesses 51 accepted into the program under subdivision four of section three 52 hundred fifty-three of this article and seventy-five percent of taxS. 7509--A 24 A. 9509--A 1 credits shall be allocated to businesses accepted into the program under 2 subdivision three of section three hundred fifty-three of this article. 3 Provided, however, if by September thirtieth of a calendar year, the 4 department has not allocated the full amount of credits available in 5 that year to either: (i) businesses accepted into the program under 6 subdivision four of section three hundred fifty-three of this article or 7 (ii) businesses accepted into the program under subdivision three of 8 section three hundred fifty-three of this article, the commissioner may 9 allocate any remaining tax credits to businesses referenced in this 10 paragraph as needed; provided, however, that under no circumstances may 11 the aggregate statutory cap for all program years be exceeded. One 12 hundred percent of the unawarded amounts remaining at the end of two 13 thousand [twenty-four] thirty-nine may be allocated in subsequent years, 14 notwithstanding the fifty percent limitation on any amounts of tax cred- 15 its not awarded in taxable years two thousand eleven through two thou- 16 sand [twenty-four] thirty-nine. Provided, however, no tax credits may 17 be allowed for taxable years beginning on or after January first, two 18 thousand [thirty] fifty. 19 § 6. Subdivision (b) of section 31 of the tax law, as amended by 20 section 6 of part K of chapter 59 of the laws of 2017, is amended to 21 read as follows: 22 (b) To be eligible for the excelsior jobs program credit, the taxpayer 23 shall have been issued a "certificate of tax credit" by the department 24 of economic development pursuant to subdivision four of section three 25 hundred fifty-four of the economic development law, which certificate 26 shall set forth the amount of each credit component that may be claimed 27 for the taxable year. A taxpayer may claim such credit for ten consec- 28 utive taxable years commencing in the first taxable year that the 29 taxpayer receives a certificate of tax credit or the first taxable year 30 listed on its preliminary schedule of benefits, whichever is later, 31 provided that no tax credits may be allowed for taxable years beginning 32 on or after January first, two thousand [thirty] fifty. The taxpayer 33 shall be allowed to claim only the amount listed on the certificate of 34 tax credit for that taxable year. Such certificate must be attached to 35 the taxpayer's return. No cost or expense paid or incurred by the 36 taxpayer shall be the basis for more than one component of this credit 37 or any other tax credit, except as provided in section three hundred 38 fifty-five of the economic development law. 39 § 7. This act shall take effect immediately. 40 PART M 41 Section 1. Paragraph 2 of subdivision (a) of section 24 of the tax 42 law, as amended by section 4 of part Q of chapter 57 of the laws of 43 2010, is amended to read as follows: 44 (2) The amount of the credit shall be the product (or pro rata share 45 of the product, in the case of a member of a partnership) of [thirty] 46 twenty-five percent and the qualified production costs paid or incurred 47 in the production of a qualified film, provided that: (i) the qualified 48 production costs (excluding post production costs) paid or incurred 49 which are attributable to the use of tangible property or the perform- 50 ance of services at a qualified film production facility in the 51 production of such qualified film equal or exceed seventy-five percent 52 of the production costs (excluding post production costs) paid or 53 incurred which are attributable to the use of tangible property or the 54 performance of services at any film production facility within and with-S. 7509--A 25 A. 9509--A 1 out the state in the production of such qualified film, and (ii) except 2 with respect to a qualified independent film production company or 3 pilot, at least ten percent of the total principal photography shooting 4 days spent in the production of such qualified film must be spent at a 5 qualified film production facility. However, if the qualified production 6 costs (excluding post production costs) which are attributable to the 7 use of tangible property or the performance of services at a qualified 8 film production facility in the production of such qualified film is 9 less than three million dollars, then the portion of the qualified 10 production costs attributable to the use of tangible property or the 11 performance of services in the production of such qualified film outside 12 of a qualified film production facility shall be allowed only if the 13 shooting days spent in New York outside of a film production facility in 14 the production of such qualified film equal or exceed seventy-five 15 percent of the total shooting days spent within and without New York 16 outside of a film production facility in the production of such quali- 17 fied film. The credit shall be allowed for the taxable year in which the 18 production of such qualified film is completed. However, in the case of 19 a qualified film that receives funds from additional pool 2, no credit 20 shall be claimed before the later of (1) the taxable year the production 21 of the qualified film is complete, or (2) the taxable year immediately 22 following the allocation year for which the film has been allocated 23 credit by the governor's office for motion picture and television devel- 24 opment. If the amount of the credit is at least one million dollars but 25 less than five million dollars, the credit shall be claimed over a two 26 year period beginning in the first taxable year in which the credit may 27 be claimed and in the next succeeding taxable year, with one-half of the 28 amount of credit allowed being claimed in each year. If the amount of 29 the credit is at least five million dollars, the credit shall be claimed 30 over a three year period beginning in the first taxable year in which 31 the credit may be claimed and in the next two succeeding taxable years, 32 with one-third of the amount of the credit allowed being claimed in each 33 year. 34 § 2. Paragraph 2 of subdivision (a) of section 24 of the tax law, as 35 amended by section 4 of part Q of chapter 57 of the laws of 2010, is 36 amended to read as follows: 37 (2) The amount of the credit shall be the product (or pro rata share 38 of the product, in the case of a member of a partnership) of thirty 39 percent and the qualified production costs paid or incurred in the 40 production of a qualified film, provided that: (i) the qualified 41 production costs (excluding post production costs) paid or incurred 42 which are attributable to the use of tangible property or the perform- 43 ance of services at a qualified film production facility in the 44 production of such qualified film equal or exceed seventy-five percent 45 of the production costs (excluding post production costs) paid or 46 incurred which are attributable to the use of tangible property or the 47 performance of services at any film production facility within and with- 48 out the state in the production of such qualified film, and (ii) except 49 with respect to a qualified independent film production company or 50 pilot, at least ten percent of the total principal photography shooting 51 days spent in the production of such qualified film must be spent at a 52 qualified film production facility. However, if the qualified production 53 costs (excluding post production costs) which are attributable to the 54 use of tangible property or the performance of services at a qualified 55 film production facility in the production of such qualified film is 56 less than three million dollars, then the portion of the qualifiedS. 7509--A 26 A. 9509--A 1 production costs attributable to the use of tangible property or the 2 performance of services in the production of such qualified film outside 3 of a qualified film production facility shall be allowed only if the 4 shooting days spent in New York outside of a film production facility in 5 the production of such qualified film equal or exceed seventy-five 6 percent of the total shooting days spent within and without New York 7 outside of a film production facility in the production of such quali- 8 fied film. The credit shall be allowed for the taxable year in which the 9 production of such qualified film is completed. However, in the case of 10 a qualified film that receives funds from additional pool 2, no credit 11 shall be claimed before the later of (1) the taxable year the production 12 of the qualified film is complete, or (2) the first taxable year begin- 13 ning immediately [following] after the allocation year for which the 14 film has been allocated credit by the governor's office for motion 15 picture and television development. If the amount of the credit is at 16 least one million dollars but less than five million dollars, the credit 17 shall be claimed over a two year period beginning in the first taxable 18 year in which the credit may be claimed and in the next succeeding taxa- 19 ble year, with one-half of the amount of credit allowed being claimed in 20 each year. If the amount of the credit is at least five million dollars, 21 the credit shall be claimed over a three year period beginning in the 22 first taxable year in which the credit may be claimed and in the next 23 two succeeding taxable years, with one-third of the amount of the credit 24 allowed being claimed in each year. 25 § 3. Paragraph 3 of subdivision (b) of section 24 of the tax law, as 26 amended by section 1 of part B of chapter 59 of the laws of 2013, is 27 amended to read as follows: 28 (3) "Qualified film" means a feature-length film, television film, 29 relocated television production, television pilot [and/or each episode30of a] or television series, regardless of the medium by means of which 31 the film, pilot or [episode] series is created or conveyed. For the 32 purposes of the credit provided by this section only, a "qualified film" 33 with the exception of a television pilot, whose majority of principal 34 photography shooting days in the production of the qualified film are 35 shot in Westchester, Rockland, Nassau, or Suffolk county or any of the 36 five New York City boroughs shall have a minimum budget of one million 37 dollars. A "qualified film", with the exception of a television pilot, 38 whose majority of principal photography shooting days in the production 39 of the qualified film are shot in any other county of the state than 40 those listed in the preceding sentence shall have a minimum budget of 41 two hundred fifty thousand dollars. "Qualified film" shall not include: 42 (i) a documentary film, news or current affairs program, interview or 43 talk program, "how-to" (i.e., instructional) film or program, film or 44 program consisting primarily of stock footage, sporting event or sport- 45 ing program, game show, award ceremony, film or program intended prima- 46 rily for industrial, corporate or institutional end-users, fundraising 47 film or program, daytime drama (i.e., daytime "soap opera"), commer- 48 cials, music videos or "reality" program, or (ii) a production for which 49 records are required under section 2257 of title 18, United States code, 50 to be maintained with respect to any performer in such production 51 (reporting of books, films, etc. with respect to sexually explicit 52 conduct). 53 § 4. Paragraph 3 of subdivision (b) of section 24 of the tax law, as 54 amended by section 1 of part B of chapter 59 of the laws of 2013, is 55 amended to read as follows:S. 7509--A 27 A. 9509--A 1 (3) "Qualified film" means a feature-length film, television film, 2 relocated television production, television pilot and/or each episode of 3 a television series, regardless of the medium by means of which the 4 film, pilot or episode is created or conveyed. "Qualified film" shall 5 not include: (i) a documentary film, news or current affairs program, 6 interview or talk program, "how-to" (i.e., instructional) film or 7 program, film or program consisting primarily of stock footage, sporting 8 event or sporting program, game show, award ceremony, film or program 9 intended primarily for industrial, corporate or institutional end-users, 10 fundraising film or program, daytime drama (i.e., daytime "soap opera"), 11 commercials, music videos or "reality" program[, or]; (ii) a production 12 for which records are required under section 2257 of title 18, United 13 States code, to be maintained with respect to any performer in such 14 production (reporting of books, films, etc. with respect to sexually 15 explicit conduct); or (iii) other than a relocated television 16 production, a television series commonly known as variety entertainment, 17 variety sketch and variety talk, i.e., a program with components of 18 improvisational or scripted content (monologues, sketches, interviews), 19 either exclusively or in combination with other entertainment elements 20 such as musical performances, dancing, cooking, crafts, pranks, stunts, 21 and games and which may be further defined in regulations of the commis- 22 sioner of economic development. However, a qualified film shall include 23 a television series as described in subparagraph (iii) of this paragraph 24 only if an application for such series has been deemed conditionally 25 eligible for the tax credit under this section prior to April first, two 26 thousand twenty, such series remains in continuous production for each 27 season, and an annual application for each season of such series is 28 continually submitted for such series after April first, two thousand 29 twenty. 30 § 5. Paragraph 2 of subdivision (a) of section 31 of the tax law, as 31 amended by chapter 268 of the laws of 2012, is amended to read as 32 follows: 33 (2) The amount of the credit shall be the product (or pro rata share 34 of the product, in the case of a member of a partnership) of [thirty] 35 twenty-five percent and the qualified post production costs paid in the 36 production of a qualified film at a qualified post production facility 37 located within the metropolitan commuter transportation district as 38 defined in section twelve hundred sixty-two of the public authorities 39 law or [thirty-five] thirty percent and the qualified post production 40 costs paid in the production of a qualified film at a qualified post 41 production facility located elsewhere in the state. 42 § 5-a. Paragraph 5 of subdivision (a) of section 24 of the tax law, as 43 amended by section 1 of part SSS of chapter 59 of the laws of 2019, is 44 amended to read as follows: 45 (5) For the period two thousand fifteen through two thousand [twenty-46four] twenty-five, in addition to the amount of credit established in 47 paragraph two of this subdivision, a taxpayer shall be allowed a credit 48 equal to the product (or pro rata share of the product, in the case of a 49 member of a partnership) of ten percent and the amount of wages or sala- 50 ries paid to individuals directly employed (excluding those employed as 51 writers, directors, music directors, producers and performers, including 52 background actors with no scripted lines) by a qualified film production 53 company or a qualified independent film production company for services 54 performed by those individuals in one of the counties specified in this 55 paragraph in connection with a qualified film with a minimum budget of 56 five hundred thousand dollars. For purposes of this additional credit,S. 7509--A 28 A. 9509--A 1 the services must be performed in one or more of the following counties: 2 Albany, Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, 3 Chenango, Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, 4 Franklin, Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, 5 Livingston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, 6 Ontario, Orange, Orleans, Oswego, Otsego, Putnam, Rensselaer, Saratoga, 7 Schenectady, Schoharie, Schuyler, Seneca, St. Lawrence, Steuben, Sulli- 8 van, Tioga, Tompkins, Ulster, Warren, Washington, Wayne, Wyoming, or 9 Yates. The aggregate amount of tax credits allowed pursuant to the 10 authority of this paragraph shall be five million dollars each year 11 during the period two thousand fifteen through two thousand [twenty-12four] twenty-five of the annual allocation made available to the program 13 pursuant to paragraph four of subdivision (e) of this section. Such 14 aggregate amount of credits shall be allocated by the governor's office 15 for motion picture and television development among taxpayers in order 16 of priority based upon the date of filing an application for allocation 17 of film production credit with such office. If the total amount of 18 allocated credits applied for under this paragraph in any year exceeds 19 the aggregate amount of tax credits allowed for such year under this 20 paragraph, such excess shall be treated as having been applied for on 21 the first day of the next year. If the total amount of allocated tax 22 credits applied for under this paragraph at the conclusion of any year 23 is less than five million dollars, the remainder shall be treated as 24 part of the annual allocation made available to the program pursuant to 25 paragraph four of subdivision (e) of this section. However, in no event 26 may the total of the credits allocated under this paragraph and the 27 credits allocated under paragraph five of subdivision (a) of section 28 thirty-one of this article exceed five million dollars in any year 29 during the period two thousand fifteen through two thousand [twenty-30four] twenty-five. 31 § 5-b. Paragraph 4 of subdivision (e) of section 24 of the tax law, as 32 amended by chapter 683 of the laws of 2019, is amended to read as 33 follows: 34 (4) Additional pool 2 - The aggregate amount of tax credits allowed in 35 subdivision (a) of this section shall be increased by an additional four 36 hundred twenty million dollars in each year starting in two thousand ten 37 through two thousand [twenty-four] twenty-five provided however, seven 38 million dollars of the annual allocation shall be available for the 39 empire state film post production credit pursuant to section thirty-one 40 of this article in two thousand thirteen and two thousand fourteen, 41 twenty-five million dollars of the annual allocation shall be available 42 for the empire state film post production credit pursuant to section 43 thirty-one of this article in each year starting in two thousand fifteen 44 through two thousand [twenty-four] twenty-five and five million dollars 45 of the annual allocation shall be made available for the television 46 writers' and directors' fees and salaries credit pursuant to section 47 twenty-four-b of this article in each year starting in two thousand 48 twenty through two thousand [twenty-four] twenty-five. This amount shall 49 be allocated by the governor's office for motion picture and television 50 development among taxpayers in accordance with subdivision (a) of this 51 section. If the commissioner of economic development determines that the 52 aggregate amount of tax credits available from additional pool 2 for the 53 empire state film production tax credit have been previously allocated, 54 and determines that the pending applications from eligible applicants 55 for the empire state film post production tax credit pursuant to section 56 thirty-one of this article is insufficient to utilize the balance ofS. 7509--A 29 A. 9509--A 1 unallocated empire state film post production tax credits from such 2 pool, the remainder, after such pending applications are considered, 3 shall be made available for allocation in the empire state film tax 4 credit pursuant to this section, subdivision twenty of section two 5 hundred ten-B and subsection (gg) of section six hundred six of this 6 chapter. Also, if the commissioner of economic development determines 7 that the aggregate amount of tax credits available from additional pool 8 2 for the empire state film post production tax credit have been previ- 9 ously allocated, and determines that the pending applications from 10 eligible applicants for the empire state film production tax credit 11 pursuant to this section is insufficient to utilize the balance of unal- 12 located film production tax credits from such pool, then all or part of 13 the remainder, after such pending applications are considered, shall be 14 made available for allocation for the empire state film post production 15 credit pursuant to this section, subdivision thirty-two of section two 16 hundred ten-B and subsection (qq) of section six hundred six of this 17 chapter. The governor's office for motion picture and television devel- 18 opment must notify taxpayers of their allocation year and include the 19 allocation year on the certificate of tax credit. Taxpayers eligible to 20 claim a credit must report the allocation year directly on their empire 21 state film production credit tax form for each year a credit is claimed 22 and include a copy of the certificate with their tax return. In the case 23 of a qualified film that receives funds from additional pool 2, no 24 empire state film production credit shall be claimed before the later of 25 the taxable year the production of the qualified film is complete, or 26 the taxable year immediately following the allocation year for which the 27 film has been allocated credit by the governor's office for motion 28 picture and television development. 29 § 5-c. Paragraph 6 of subdivision (a) of section 31 of the tax law, as 30 amended by section 3 of part SSS of chapter 59 of the laws of 2019, is 31 amended to read as follows: 32 (6) For the period two thousand fifteen through two thousand [twenty-33four] twenty-five, in addition to the amount of credit established in 34 paragraph two of this subdivision, a taxpayer shall be allowed a credit 35 equal to the product (or pro rata share of the product, in the case of a 36 member of a partnership) of ten percent and the amount of wages or sala- 37 ries paid to individuals directly employed (excluding those employed as 38 writers, directors, music directors, producers and performers, including 39 background actors with no scripted lines) for services performed by 40 those individuals in one of the counties specified in this paragraph in 41 connection with the post production work on a qualified film with a 42 minimum budget of five hundred thousand dollars at a qualified post 43 production facility in one of the counties listed in this paragraph. For 44 purposes of this additional credit, the services must be performed in 45 one or more of the following counties: Albany, Allegany, Broome, Catta- 46 raugus, Cayuga, Chautauqua, Chemung, Chenango, Clinton, Cortland, Dela- 47 ware, Erie, Essex, Franklin, Fulton, Genesee, Hamilton, Herkimer, 48 Jefferson, Lewis, Livingston, Madison, Monroe, Montgomery, Niagara, 49 Oneida, Onondaga, Ontario, Orleans, Oswego, Otsego, Schenectady, Scho- 50 harie, Schuyler, Seneca, St. Lawrence, Steuben, Tioga, Tompkins, Wayne, 51 Wyoming, or Yates. The aggregate amount of tax credits allowed pursuant 52 to the authority of this paragraph shall be five million dollars each 53 year during the period two thousand fifteen through two thousand [twen-54ty-four] twenty-five of the annual allocation made available to the 55 empire state film post production credit pursuant to paragraph four of 56 subdivision (e) of section twenty-four of this article. Such aggregateS. 7509--A 30 A. 9509--A 1 amount of credits shall be allocated by the governor's office for motion 2 picture and television development among taxpayers in order of priority 3 based upon the date of filing an application for allocation of post 4 production credit with such office. If the total amount of allocated 5 credits applied for under this paragraph in any year exceeds the aggre- 6 gate amount of tax credits allowed for such year under this paragraph, 7 such excess shall be treated as having been applied for on the first day 8 of the next year. If the total amount of allocated tax credits applied 9 for under this paragraph at the conclusion of any year is less than five 10 million dollars, the remainder shall be treated as part of the annual 11 allocation for two thousand seventeen made available to the empire state 12 film post production credit pursuant to paragraph four of subdivision 13 (e) of section twenty-four of this article. However, in no event may the 14 total of the credits allocated under this paragraph and the credits 15 allocated under paragraph five of subdivision (a) of section twenty-four 16 of this article exceed five million dollars in any year during the peri- 17 od two thousand fifteen through two thousand [twenty-four] twenty-five. 18 § 6. This act shall take effect immediately; provided, however, that 19 the amendments made by sections one, three and five of this act shall 20 apply to applications that are filed with the governor's office for 21 motion picture and television development on or after April 1, 2020. 22 PART N 23 Section 1. Subdivision 13 of section 1901 of the real property tax law 24 is amended by adding a new paragraph (c) to read as follows: 25 (c) Notwithstanding any provision of law to the contrary, the govern- 26 ing body of a municipal corporation that has adopted the provisions of 27 paragraph (c) of subdivision one of section five hundred eighty-one of 28 this chapter relating to converted condominium units is authorized to 29 adopt a local law or, in the case of a school district, a resolution, 30 providing that such converted condominium units shall be classified in 31 the homestead class for purposes of taxes levied by such municipal 32 corporation. 33 § 2. This act shall take effect immediately. 34 PART O 35 Section 1. The tax law is amended by adding a new section 171-w to 36 read as follows: 37 § 171-w. State support for the local enforcement of past-due property 38 taxes. 1. Legislative findings. The legislature finds that local govern- 39 ments have limited means to enforce the collection of past-due property 40 taxes. The legislature further finds that it is appropriate for the 41 state to support the local enforcement of past-due property taxes by 42 authorizing the commissioner to administer a program to disallow STAR 43 credits and exemptions to delinquent property owners based on informa- 44 tion reported to him or her by municipal officials. 45 2. Definitions. For the purposes of this section: 46 (a) "Delinquent property owner" means a STAR recipient whose primary 47 residence is subject to past-due property taxes. 48 (b) "Past-due property taxes" means property taxes that have been 49 levied upon a property owner's primary residence that remain unpaid one 50 year after the last date on which they could have been paid without 51 interest, or where such taxes are payable in installments, those taxesS. 7509--A 31 A. 9509--A 1 that remain unpaid one year after the last date on which the final 2 installment could have been paid without interest. 3 (c) "STAR credit" means the personal income tax credit authorized by 4 subsection (eee) of section six hundred six of this chapter. 5 (d) "STAR exemption" means the exemption from real property taxation 6 authorized by section four hundred twenty-five of the real property tax 7 law. 8 (e) "STAR recipient" means a property owner who is registered to 9 receive the STAR credit in relation to his or her primary residence, or 10 whose primary residence is receiving the STAR exemption. 11 3. STAR tax payment requirement; generally. Notwithstanding any 12 provision of law to the contrary, a property owner whose primary resi- 13 dence is subject to past-due property taxes shall not be allowed to 14 receive a STAR credit or STAR exemption unless the past-due property 15 taxes are paid in full on or before a date specified by the commission- 16 er. 17 4. Commissioner's authority. The commissioner is hereby authorized to 18 develop a program to support the local enforcement of past-due property 19 taxes by disallowing STAR credits and STAR exemptions to delinquent 20 property owners. The commissioner shall establish procedures for the 21 administration of this program, which shall include the following 22 provisions: 23 (a) The procedures by which municipal officials shall report past-due 24 property taxes and property tax payments to the department. 25 (b) The procedures by which the department shall notify delinquent 26 property owners of the impending disallowance of their STAR credits or 27 exemptions due to past-due property taxes. 28 (c) The date by which delinquent property owners must pay their past- 29 due property taxes in full in order to avoid disallowance of their STAR 30 credits or exemptions. 31 (d) The procedures by which the commissioner shall disallow STAR cred- 32 its and notify assessors of the disallowance of STAR exemptions if past- 33 due property taxes are not paid in full by the specified date. 34 (e) Such other procedures as the commissioner shall deem necessary to 35 carry out the provisions of this section. 36 5. Municipal reports. The commissioner's procedures regarding munici- 37 pal reporting shall be subject to the following provisions: 38 (a) The commissioner may request and shall be entitled to receive from 39 any municipal corporation of the state, or any agency or official there- 40 of, such data as the commissioner deems necessary to effectuate the 41 purposes of this section. Such information shall be submitted to the 42 department at such time and in such manner as the commissioner may 43 direct. 44 (b) In lieu of requiring municipal officials to submit their reports 45 directly to the department, the commissioner may, in his or her 46 discretion, require that such reports be submitted to the county direc- 47 tor of real property tax services, who shall integrate the reports into 48 a single file and submit it to the department at such time and in such 49 manner as the commissioner may direct. Provided, that where the commis- 50 sioner institutes such a procedure, he or she may exclude cities with 51 one hundred twenty-five thousand inhabitants or more, so that informa- 52 tion about past-due property taxes and property tax payments in such a 53 city shall be reported directly to the department by a designated city 54 official at such time and in such manner as the commissioner may direct.S. 7509--A 32 A. 9509--A 1 (c) Reports and other records prepared pursuant to this section shall 2 not be subject to the provisions of article six of the public officers 3 law. 4 6. Notification of delinquent property owners. The commissioner's 5 procedures regarding the notification of delinquent property owners 6 shall be subject to the following provisions: 7 (a) The department shall notify a delinquent property owner by regular 8 mail at least thirty days prior to the date by which his or her past-due 9 property taxes must be paid in full in order to avoid disallowance of 10 his or her STAR credit or exemption. 11 (b) Such notice shall include a statement that the property owner's 12 STAR credit or exemption will be disallowed unless his or her past-due 13 property taxes are paid in full by the date specified in the notice. 14 (c) To the extent practicable, such notice shall provide contact 15 information for the local official or officials to whom the past-due 16 property taxes may be paid. 17 (d) Such notice shall further state that the property owner's right to 18 protest the disallowance of the STAR credit or exemption is limited to 19 raising issues that constitute a "mistake of fact" as defined in subdi- 20 vision nine of this section. 21 (e) Such notice may include such other information as the commissioner 22 may deem necessary. 23 7. Timely payment of past-due property taxes. If a delinquent property 24 owner pays his or her past-due property taxes in full on or before the 25 date specified in such notice, the official receiving such payment shall 26 so notify the department at such time and in such manner as prescribed 27 by the commissioner. The property owner shall then be permitted to 28 receive the STAR credit or exemption that would have been disallowed if 29 timely payment had not been made. However, if the department does not 30 learn of the payment until after it has already directed an assessor to 31 deny a STAR exemption to a delinquent property owner, then in lieu of 32 directing the exemption to be restored, the department may remit to the 33 property owner payment in an amount that will reimburse the property 34 owner for the increase in his or her school tax bill that is directly 35 attributable to the lost STAR exemption. 36 8. Failure to make timely payment. (a) If the past-due taxes are not 37 paid on or before the date specified in the notice that had been sent to 38 the delinquent property owner, his or her STAR credit or STAR exemption 39 shall be disallowed in accordance with the procedures established by the 40 commissioner. 41 (b) The delinquent property owner shall be permanently ineligible for 42 any STAR credit or exemption that has been disallowed, even if the past- 43 due property taxes are subsequently paid in full. The property owner 44 shall not be eligible to participate in the STAR program again as long 45 as the property is subject to past-due property taxes. 46 (c) Upon payment of the past-due property taxes in full, the official 47 receiving such payment shall notify the department at such time and in 48 such manner as may be prescribed by the commissioner. The commissioner 49 shall then proceed as follows: 50 (i) If the property owner had previously been receiving the STAR cred- 51 it, the commissioner shall allow the property owner to resume his or her 52 participation in the STAR credit program on a prospective basis, if 53 otherwise eligible, effective with the first taxable year commencing 54 after such payment. 55 (ii) If the property owner had previously been receiving the STAR 56 exemption, the commissioner shall allow the property owner to partic-S. 7509--A 33 A. 9509--A 1 ipate in the STAR credit program on a prospective basis, if otherwise 2 eligible, effective with the first taxable year commencing after such 3 payment. The property owner shall not be allowed back into the STAR 4 exemption program. 5 9. Mistake of fact. Notwithstanding any other provision of law, a 6 disallowance of a STAR credit or STAR exemption pursuant to this section 7 may only be challenged before the department on the grounds of a mistake 8 of fact as defined in this subdivision. The taxpayer will have no right 9 to commence a court action, administrative proceeding or any other form 10 of legal recourse against an assessor, county director of real property 11 tax services or other local official regarding such disallowance. For 12 the purposes of this subdivision, "mistake of fact" is limited to claims 13 that: (i) the individual notified is not the taxpayer at issue; or (ii) 14 the past-due property taxes were satisfied before the date specified in 15 the notice described in subdivision six of this section. However, noth- 16 ing in this subdivision is intended to limit a taxpayer from seeking 17 relief from joint and several liability pursuant to section six hundred 18 fifty-four of this chapter to the extent that he or she is eligible 19 pursuant to that subdivision or establishing to the department that the 20 enforcement of the underlying property taxes has been stayed by the 21 filing of a petition pursuant to the Bankruptcy Code of 1978 (Title 22 Eleven of the United States Code). 23 10. Assessors. (a) Notwithstanding any provision of law to the contra- 24 ry, the department may disclose to assessors such information as the 25 commissioner deems necessary to ensure that the STAR exemptions of 26 delinquent property owners are disallowed as required by this section. 27 (b) Notwithstanding any provision of law to the contrary, an assessor 28 shall be authorized and directed to deny a STAR exemption to a delin- 29 quent property owner upon being directed by the department to do so. If 30 an assessor should receive such a directive after the applicable assess- 31 ment roll has been filed, the assessor or other official having custody 32 and control of that roll shall be authorized and directed to remove such 33 exemption from such roll prior to the levy of school taxes, without 34 regard to the provisions of title three of article five of the real 35 property tax law or any comparable laws governing the correction of 36 administrative errors on assessment rolls and tax rolls. 37 11. Recovery of STAR benefits in certain cases. The commissioner may 38 establish procedures to be followed in cases where a STAR credit or 39 exemption was inadvertently or erroneously provided to a delinquent 40 property owner who was sent the notice required by subdivision six of 41 this section, and whose past-due property taxes were not paid in full by 42 the date specified in the notice. Such procedures shall include, but not 43 be limited to, (a) applying the improperly received STAR credit or 44 exemption as an offset against future STAR credits or against other 45 personal income tax credits or personal income tax refunds to which the 46 delinquent property owner would otherwise be entitled, and (b) pursuing 47 any of the other remedies that are available to enforce a personal 48 income tax debt under article twenty-two of this chapter. 49 § 2. This act shall take effect immediately. 50 PART P 51 Section 1. Section 1530 of the real property tax law is amended by 52 adding a new subdivision 1-a to read as follows: 53 1-a. In the event that a director of real property tax services, 54 appointed pursuant to the provisions of this section, is unable toS. 7509--A 34 A. 9509--A 1 perform the duties of the office of director of real property tax 2 services or the office becomes vacant, the appointing authority may by 3 resolution designate or appoint an acting director of real property tax 4 services. Where an acting director of real property tax services is 5 designated or appointed pursuant to this section, the appointing author- 6 ity shall notify the commissioner within fifteen days of making such 7 designation or appointment. The acting director of real property tax 8 services shall function as director of real property tax services until 9 such time as the director of real property tax services is able to 10 resume the position or until a replacement is appointed. In the event an 11 acting director of real property tax services functions as director of 12 real property tax services for more than six months, then such acting 13 director of real property tax services shall be required to meet the 14 minimum qualification standards required by this title for persons 15 appointed to the office of director of real property tax services. 16 § 2. This act shall take effect immediately. 17 PART Q 18 Section 1. Paragraph i of subdivision 1-e of section 333 of the real 19 property law, as amended by section 5 of part X of chapter 56 of the 20 laws of 2010 and as further amended by subdivision (d) of section 1 of 21 part W of chapter 56 of the laws of 2010, is amended to read as follows: 22 i. A recording officer shall not record or accept for record any 23 conveyance of real property affecting land in New York state unless 24 accompanied by either (A) a transfer report form prescribed by the 25 commissioner of taxation and finance [or in lieu thereof, confirmation26from the commissioner that the required data has been reported to it27pursuant to paragraph vii of this subdivision,] and the fee prescribed 28 pursuant to subdivision three of this section, or (B) a receipt issued 29 by the commissioner of taxation and finance pursuant to section fourteen 30 hundred twenty-three of the tax law that confirms the electronic 31 submission of a consolidated real property transfer form and payment of 32 the associated taxes and fees. 33 § 2. Paragraph v of subdivision 1-e of section 333 of the real proper- 34 ty law, as amended by section 5 of part X of chapter 56 of the laws of 35 2010 and as further amended by section 1 of part W of chapter 56 of the 36 laws of 2010, is amended to read as follows: 37 v. (1) The provisions of this subdivision shall not operate to invali- 38 date any conveyance of real property where one or more of the items 39 designated as subparagraphs one through eight of paragraph ii of this 40 subdivision, have not been reported or which has been erroneously 41 reported, nor affect the record contrary to the provisions of this 42 subdivision, nor impair any title founded on such conveyance or record. 43 [Such] 44 (2) Subject to the provisions of section fourteen hundred twenty-three 45 of the tax law, such form shall contain an affirmation as to the accura- 46 cy of the contents made both by the transferor or transferors and by the 47 transferee or transferees. Provided, however, that if the conveyance of 48 real property occurs as a result of a taking by eminent domain, tax 49 foreclosure, or other involuntary proceeding such affirmation may be 50 made only by either the condemnor, tax district, or other party to whom 51 the property has been conveyed, or by that party's attorney. The affir- 52 mations required by this paragraph shall be made in the form and manner 53 prescribed by the commissioner, provided that notwithstanding anyS. 7509--A 35 A. 9509--A 1 provision of law to the contrary, affirmants may be allowed, but shall 2 not be required, to sign such affirmations electronically. 3 § 3. Paragraphs vii and viii of subdivision 1-e of section 333 of the 4 real property law are REPEALED. 5 § 4. Subdivision 3 of section 333 of the real property law, as amended 6 by section 2 of part JJ of chapter 56 of the laws of 2009 and as further 7 amended by section 1 of part W of chapter 56 of the laws of 2010, is 8 amended to read as follows: 9 3. The recording officer of every county and the city of New York 10 shall impose a fee of two hundred fifty dollars, or in the case of a 11 transfer involving qualifying residential or farm property as defined by 12 paragraph iv of subdivision one-e of this section, a fee of one hundred 13 twenty-five dollars, for every real property transfer reporting form 14 submitted for recording as required under subdivision one-e of this 15 section. In the city of New York, the recording officer shall impose a 16 fee of one hundred dollars for each real property transfer tax form 17 filed in accordance with chapter twenty-one of title eleven of the 18 administrative code of the city of New York, except where a real proper- 19 ty transfer reporting form is also submitted for recording for the 20 transfer as required under subdivision one-e of this section. The 21 recording officer shall deduct nine dollars from such fee and remit the 22 remainder of the revenue collected to the commissioner of taxation and 23 finance every month for deposit into the general fund. The amount duly 24 deducted by the recording officer shall be retained by the county or by 25 the city of New York. Provided, however, that the recording officer 26 shall not impose such a fee where the conveyance is accompanied by a 27 receipt issued by the commissioner of taxation and finance pursuant to 28 section fourteen hundred twenty-three of the tax law that confirms the 29 electronic submission of a consolidated real property transfer form and 30 payment of the associated taxes and fees. 31 § 5. Subdivision (c) of section 1407 of the tax law, as amended by 32 chapter 61 of the laws of 1989, is amended to read as follows: 33 (c) Every recording officer designated to act as such agent shall 34 retain, from the real estate transfer tax which he or she collects, the 35 sum of one dollar for each of the first five thousand conveyances 36 accepted for recording and for which he or she has issued a documentary 37 stamp or metering machine stamp or upon which instrument effecting the 38 conveyance he or she has noted payment of the tax or that no tax is due, 39 pursuant to any other method for payment of the tax provided for in the 40 regulations of the commissioner of taxation and finance, during each 41 annual period commencing on the first day of August and ending on the 42 next succeeding thirty-first day of July and seventy-five cents for each 43 conveyance in excess of five thousand accepted for recording and for 44 which he or she has issued such a stamp or upon which instrument effect- 45 ing the conveyance he or she has noted payment of the tax or that no tax 46 is due, pursuant to such other method, during such annual period. Such 47 fee shall be payable even though the stamp issued or such notation shows 48 that no tax is due. Such a fee paid to the register of the city of New 49 York shall belong to the city of New York and such a fee paid to a 50 recording officer of a county outside such city shall belong to such 51 officer's county. With respect to any other agents designated to act 52 pursuant to subdivision (a) of this section, the commissioner of taxa- 53 tion and finance shall have the power to provide, at his or her 54 discretion, for payment of a fee to such agent, in such manner and 55 amount and subject to such limitations as he or she may determine, but 56 any such fee for any annual period shall not be greater than the sum ofS. 7509--A 36 A. 9509--A 1 one dollar for each of the first five thousand conveyances for which 2 such agent has issued a documentary stamp or metering machine stamp or 3 upon which instrument effecting the conveyance he or she has noted 4 payment of the tax or that no tax is due, pursuant to any other method 5 for payment of the tax provided for in the regulations of the commis- 6 sioner of taxation and finance, during such annual period and seventy- 7 five cents for each conveyance in excess of five thousand for which such 8 agent has issued such a stamp or upon which instrument effecting the 9 conveyance such agent has noted payment of the tax or that no tax is 10 due, pursuant to such other method, during such annual period. Provided, 11 however, that where the recording officer is provided with a receipt 12 issued by the commissioner pursuant to section fourteen hundred twenty- 13 three of this article that confirms the electronic submission of a 14 consolidated real property transfer form and payment of the associated 15 taxes and fees, the recording officer shall neither collect such tax nor 16 impose such fee. 17 § 6. Subdivision (b) of section 1409 of the tax law, as added by chap- 18 ter 61 of the laws of 1989, is amended to read as follows: 19 (b) [The] Subject to the provisions of section fourteen hundred twen- 20 ty-three of article, the return shall be signed by both the grantor and 21 the grantee. Where a conveyance has more than one grantor or more than 22 one grantee, the return shall be signed by all of such grantors and 23 grantees. Where any or all of the grantors or any or all of the grantees 24 have failed to sign a return, it shall be accepted as a return if signed 25 by any one of the grantors or by any one of the grantees. Provided, 26 however, those not signing the return shall not be relieved of any 27 liability for the tax imposed by this article and the period of limita- 28 tions for assessment of tax or of additional tax shall not apply to any 29 such party. 30 § 7. Subdivision (b) of section 1410 of the tax law, as added by chap- 31 ter 61 of the laws of 1989, is amended to read as follows: 32 (b) A recording officer shall not record an instrument effecting a 33 conveyance unless either (i) the return required by section fourteen 34 hundred nine of this article has been filed and the real estate transfer 35 tax due, if any, shall have been paid as provided in this section, or 36 (ii) the instrument is accompanied by a receipt issued by the commis- 37 sioner pursuant to section fourteen hundred twenty-three of this article 38 that confirms the electronic submission of a consolidated real property 39 transfer form and payment of the associated taxes and fees. 40 § 8. The tax law is amended by adding a new section 1423 to read as 41 follows: 42 § 1423. Modernization of real property transfer reporting. (a) 43 Notwithstanding any provision of law to the contrary, the commissioner 44 is hereby authorized to implement a system for the electronic collection 45 of data relating to transfers of real property. In connection therewith, 46 the commissioner may combine the two forms referred to in paragraph (i) 47 of this subdivision into a consolidated real property transfer form to 48 be filed with him or her electronically; provided: 49 (i) The two forms that may be so combined are the real estate transfer 50 tax return required by section fourteen hundred nine of this article, 51 and the real property transfer report required by subdivision one-e of 52 section three hundred thirty-three of the real property law. However, 53 the commissioner shall continue to maintain both such return and such 54 report as separate forms, so that a party who prefers not to file a 55 consolidated real property transfer form with the commissioner electron- 56 ically shall have the option of filing both such return and such reportS. 7509--A 37 A. 9509--A 1 with the recording officer, as otherwise provided by law. Under no 2 circumstances shall a consolidated real property transfer form be filed 3 with, or accepted by, the recording officer. 4 (ii) Notwithstanding the provisions of section fourteen hundred eigh- 5 teen of this article, any information appearing on a consolidated real 6 property transfer form that is required to be included on the real prop- 7 erty transfer report required by subdivision one-e of section three 8 hundred thirty-three of the real property law shall be subject to public 9 disclosure. 10 (iii) When a consolidated real property transfer form is electron- 11 ically submitted to the department by either the grantor or grantee, the 12 act of submitting such form shall be deemed to be the signing of the 13 return as required by paragraph (v) of subdivision one-e of the real 14 property law or subdivision (b) of section fourteen hundred nine of this 15 article, and the requirement that all the grantors and grantees shall 16 sign the return shall not apply. However, the fact that a grantor or 17 grantee has not electronically submitted the form shall not relieve that 18 grantor or grantee of any liability for the tax imposed by this article. 19 (b) When a consolidated real property transfer form is filed with the 20 commissioner electronically pursuant to this section, the real estate 21 transfer tax imposed under this article, and the fee that would other- 22 wise be retained by the recording officer pursuant to subdivision three 23 of section three hundred thirty-three of the real property law, shall be 24 paid to the commissioner therewith. The commissioner shall retain on 25 behalf of the recording officer the portion of such tax that would 26 otherwise have been retained by the recording officer pursuant to subdi- 27 vision (c) of section fourteen hundred seven of this article, and the 28 portion of such fee that would otherwise have been retained by the 29 recording officer pursuant to subdivision three of section three hundred 30 thirty-three of the real property law. The moneys so retained by the 31 commissioner on behalf of the recording officer, hereinafter referred to 32 as the recording officer's fees, shall be deposited daily with such 33 responsible banks, banking houses, or trust companies as may be desig- 34 nated by the state comptroller. Of the recording officer's fees so 35 deposited, the comptroller shall retain in the comptroller's hands such 36 amount as the commissioner may determine to be necessary for refunds or 37 reimbursements of such fees collected or received pursuant to this 38 section, out of which the comptroller shall pay any refunds or 39 reimbursements of such fees to which persons shall be entitled under the 40 provisions of this section. The comptroller, after reserving such refund 41 and reimbursement fund shall, on or before the twelfth day of each 42 month, pay to the appropriate recording officers an amount equal to the 43 recording officer's fees reserved on their behalf. Provided, however, 44 that the commissioner is authorized to request that the comptroller 45 refrain from making such a payment of such fees to a recording officer 46 until the commissioner has certified to the comptroller that the record- 47 ing officer has supplied the commissioner with the liber and page 48 numbers of the recorded instruments that gave rise to such fees. 49 (c) The system for the electronic submission of consolidated real 50 property transfer forms shall be designed so that upon the successful 51 electronic filing of such a form and the payment of the associated taxes 52 and fees, the party submitting the same shall be provided with an elec- 53 tronic receipt in a form prescribed by the commissioner that confirms 54 such filing and payment. Such party may file a printed copy of such 55 receipt with the recording officer when offering the associated instru- 56 ment for recording, in lieu of submitting to the recording officer theS. 7509--A 38 A. 9509--A 1 return, report, tax and fee that would otherwise have been required 2 under this article and subdivisions one-e and three of section three 3 hundred thirty-three of the real property law. The recording officer 4 shall retain such receipt for a minimum of three years, unless otherwise 5 directed by the commissioner, and shall provide a copy thereof to the 6 commissioner for inspection upon his or her request. 7 (d) Upon recording the instrument to which the consolidated real prop- 8 erty transfer form pertains, the recording officer shall provide the 9 commissioner with the liber and page thereof at such time and in such 10 manner as the commissioner shall prescribe. 11 (e) The provisions of this section shall not be applicable within a 12 city or county that has implemented its own electronic system for the 13 recording of deeds, the filing of the real estate transfer tax returns 14 and the real property transfer reports prescribed by the commissioner, 15 and the payment of the associated taxes and fees, unless such city or 16 county should agree to allow the system implemented by the commissioner 17 pursuant to this section to be used therein. 18 § 9. This act shall take effect immediately. 19 PART R 20 Section 1. Section 19 of the public lands law, as amended by chapter 21 449 of the laws of 2016, is amended to read as follows: 22 § 19. Taxes and assessments for local improvements on state lands. A 23 person, body or board authorized to assess lands for local improvements 24 or purposes, shall submit to the comptroller of the state an invoice of 25 assessment on state lands, showing the purpose for which the assessment 26 is made, the state lands assessed and the amounts for which they are 27 assessed, and referring to the law authorizing the assessment. No fee, 28 interest, penalty or expense shall be added to or accrue on any assess- 29 ment against state lands, nor shall such lands be sold therefor; but 30 such assessments shall, if confirmed and uncontested, be paid and 31 discharged out of any moneys appropriated therefor. All sales of state 32 lands for unpaid taxes or assessments for local improvements or purposes 33 are void. All taxes and assessments legally made on state lands, and all 34 legal rents or charges thereon, shall be audited by the comptroller and 35 paid out of the treasury. On or before January fifteenth the comp- 36 troller, in consultation with the [board of real property tax services] 37 department of taxation and finance and other agencies as may be appro- 38 priate, shall submit to the governor and the legislature an annual 39 accounting of taxes and assessments paid pursuant to this section during 40 the preceding and current fiscal years. Such accounting shall include, 41 but not be limited to the number, type and amount of such payments, as 42 well as an estimate of payments to be made during the remainder of the 43 current fiscal year and during the following fiscal year. If any 44 provision of this section conflict with any provision of any other 45 general, special or local law, this section shall prevail; and no other 46 general, special or local law shall be deemed to repeal, alter or 47 abridge any provision of this section, unless this section or this arti- 48 cle or this chapter be expressly and specifically referred to therein. 49 This section shall extend, in its operation and effect, so as to include 50 all actions and proceedings, whether judicial or administrative, hereto- 51 fore commenced under any general, special or local law and now pending. 52 § 2. Subdivision 3 of section 19-b of the public lands law, as amended 53 by chapter 385 of the laws of 1994, is amended to read as follows:S. 7509--A 39 A. 9509--A 1 3. Such state aid shall be payable upon application to the state comp- 2 troller by the chief fiscal officer of the taxing authority which quali- 3 fies for aid pursuant to this section. The application shall be made on 4 a form prescribed by such comptroller and shall contain such information 5 as such comptroller shall require. On or before January fifteenth the 6 comptroller, in consultation with the [board of real property services] 7 department of taxation and finance and other agencies as may be appro- 8 priate, shall submit to the governor and the legislature an annual 9 accounting of state aid paid pursuant to this section during the preced- 10 ing and current fiscal years. Such accounting shall include, but not be 11 limited to the number, type and amount of such payments, as well as an 12 estimate of payments to be made during the remainder of the current 13 fiscal year and during the following fiscal year. 14 § 3. Subdivision 6 of section 291-i of the real property law, as added 15 by chapter 549 of the laws of 2011, is amended to read as follows: 16 6. Nothing contained in this section shall be construed to authorize a 17 recording officer to furnish digitized paper documents of the reports 18 required by section five hundred seventy-four of the real property tax 19 law. Such reports shall be furnished as paper documents with the requi- 20 site notations thereon, except where the [state board of real property21services] department of taxation and finance has agreed to accept data 22 submissions in lieu thereof or has provided for the electronic trans- 23 mission of such data pursuant to law. 24 § 4. Subdivision 18 of section 102 of the real property tax law is 25 REPEALED. 26 § 5. The article heading of article 2 of the real property tax law is 27 amended to read as follows: 28 [STATE BOARD] COMMISSIONER OF TAXATION AND FINANCE 29 § 6. Sections 200 and 200-A of the real property tax law are REPEALED. 30 § 7. Subdivisions 1 and 7 of section 201 of the real property tax law, 31 as added by section 5 of part W of chapter 56 of the laws of 2010, are 32 amended to read as follows: 33 1. On and after the effective date of this section, the functions, 34 powers and duties of the state board of real property services as 35 formerly established by this chapter shall be considered functions, 36 powers and duties of the commissioner of taxation and finance[, except37to the extent provided by section two hundred-a of this article]. 38 7. (a) All rules, regulations, acts, orders, determinations, and deci- 39 sions of the state board of real property services or the office of real 40 property services, in force at the time of such transfer and assumption, 41 shall continue in full force and effect as rules, regulations, acts, 42 orders, determinations and decisions of the department until duly modi- 43 fied or abrogated by the commissioner or the department. 44 (b) All acts, orders, determinations, and decisions of the state board 45 of real property services pertaining to the functions and powers 46 provided in former section two hundred-a of this article shall continue 47 in full force and effect as acts, orders, determinations and decisions 48 of the [state board of real property tax services] commissioner. 49 § 8. Section 203 of the real property tax law, as amended by section 7 50 of part W of chapter 56 of the laws of 2010, is amended to read as 51 follows: 52 § 203. Office of real property tax services. There is hereby created 53 within the department of taxation and finance an office of real property 54 tax services. The head of the office shall be a deputy commissioner for 55 real property tax services[, who shall also be the executive officer for56and secretary of the state board of real property tax services]. TheS. 7509--A 40 A. 9509--A 1 deputy commissioner for real property tax services shall be appointed by 2 the governor. He or she shall exercise such powers and duties in 3 relation to real property tax administration as may be delegated to him 4 or her by the commissioner, shall report directly to the commissioner on 5 the activities of the office, and shall hold office at the pleasure of 6 the commissioner. The commissioner may appoint such officers, employees, 7 agents, consultants and special committees as he or she may deem neces- 8 sary to carry out the provisions of this chapter, and shall prescribe 9 their duties. 10 § 9. Sections 204, 206 and 208 of the real property tax law are 11 REPEALED. 12 § 10. Clause (D) of subparagraph (iv) of paragraph (b) of subdivision 13 4 of section 425 of the real property tax law, as amended by section 1 14 of part PP of chapter 59 of the laws of 2019, is amended to read as 15 follows: 16 (D) Notwithstanding any provision of law to the contrary, neither an 17 assessor nor a board of assessment review has the authority to consider 18 an objection to the replacement or removal or denial of an exemption 19 pursuant to this subdivision, nor may such an action be reviewed in a 20 proceeding to review an assessment pursuant to title one or one-A of 21 article seven of this chapter. Such an action may only be challenged 22 before the department. If a taxpayer is dissatisfied with the depart- 23 ment's final determination, the [taxpayer may appeal that determination24to the state board of real property tax services in a form and manner to25be prescribed by the commissioner. Such appeal shall be filed within26forty-five days from the issuance of the department's final determi-27nation. If dissatisfied with the state board's determination, the] 28 taxpayer may seek judicial review thereof pursuant to article seventy- 29 eight of the civil practice law and rules. The taxpayer shall otherwise 30 have no right to challenge such final determination in a court action, 31 administrative proceeding or any other form of legal recourse against 32 the commissioner, the department, [the state board of real property tax33services,] the assessor or other person having custody or control of the 34 assessment roll or tax roll regarding such action. 35 § 11. Paragraph (d) of subdivision 14 of section 425 of the real prop- 36 erty tax law, as added by section 1 of part J of chapter 57 of the laws 37 of 2013, is amended to read as follows: 38 (d) Notwithstanding the provisions of paragraph (b) of subdivision six 39 of this section, neither an assessor nor a board of assessment review 40 has the authority to consider an objection to the removal or denial of 41 an exemption pursuant to this subdivision, nor may such an action be 42 reviewed in a proceeding to review an assessment pursuant to title one 43 or one-A of article seven of this chapter. Such an action may only be 44 challenged before the department of taxation and finance. If a taxpayer 45 is dissatisfied with the department's final determination, [the taxpayer46may appeal that determination to the state board of real property tax47services in a form and manner to be prescribed by the commissioner. Such48appeal shall be filed within forty-five days from the issuance of the49department's final determination. If dissatisfied with the state board's50determination,] the taxpayer may seek judicial review thereof pursuant 51 to article seventy-eight of the civil practice law and rules. The 52 taxpayer shall otherwise have no right to challenge such final determi- 53 nation in a court action, administrative proceeding or any other form of 54 legal recourse against the commissioner, the department of taxation and 55 finance, [the state board of real property tax services,] the assessorS. 7509--A 41 A. 9509--A 1 or other person having custody or control of the assessment roll or tax 2 roll regarding such action. 3 § 12. Subparagraph (iii) of paragraph (b) of subdivision 15 of section 4 425 of the real property tax law, as amended by section 1 of part JJ of 5 chapter 60 of the laws of 2016, is amended to read as follows: 6 (iii) notwithstanding the provisions of paragraph (b) of subdivision 7 six of this section, neither an assessor nor a board of assessment 8 review has the authority to consider an objection to the recoupment of 9 an exemption pursuant to this subdivision, nor may such an action be 10 reviewed in a proceeding to review an assessment pursuant to title one 11 or one-A of article seven of this chapter. Such an action may only be 12 challenged before the department. If an owner is dissatisfied with the 13 department's final determination, [the owner may appeal that determi-14nation to the board in a form and manner to be prescribed by the commis-15sioner. Such appeal shall be filed within forty-five days from the issu-16ance of the department's final determination. If dissatisfied with the17board's determination,] the owner may seek judicial review thereof 18 pursuant to article seventy-eight of the civil practice law and rules. 19 The owner shall otherwise have no right to challenge such final determi- 20 nation in a court action, administrative proceeding, including but not 21 limited to an administrative proceeding pursuant to article forty of the 22 tax law, or any other form of legal recourse against the commissioner, 23 the department, [the board,] the assessor, or any other person, state 24 agency, or local government. 25 § 13. Section 489-o of the real property tax law, as amended by 26 section 13 of part W of chapter 56 of the laws of 2010, is amended to 27 read as follows: 28 § 489-o. Final determination of railroad ceiling; certificate. 1. 29 After the hearing provided for in section four hundred eighty-nine-n of 30 this title, the [state board of real property tax services] commissioner 31 shall finally determine the railroad ceiling for the railroad real prop- 32 erty of each railroad company situated in each assessing unit. Whenever 33 upon complaint the [state board] commissioner shall revise the local 34 reproduction cost of a railroad company in an assessing unit, [it] he or 35 she shall revise the railroad ceiling therefor to reflect such revision, 36 but [it] he or she shall not, on account of such revision, modify any 37 other determination with respect to the railroad ceilings for such rail- 38 road company for such year. Notwithstanding the fact that no complaint 39 shall have been filed with respect to a tentative determination of a 40 railroad ceiling, the [state board] commissioner shall give effect to 41 any special equalization rate established, pursuant to subdivision two 42 of section four hundred eighty-nine-l of this title prior to the final 43 determination of the railroad ceiling. 44 2. Not later than ten days before the last date prescribed by law for 45 the levy of taxes, the [state board] commissioner shall file a certif- 46 icate setting forth each railroad ceiling as finally determined with the 47 assessor of the appropriate assessing unit or the town or county asses- 48 sor who prepares a copy of the applicable part of the town or county 49 assessment roll for village tax purposes as provided in subdivision 50 three of section fourteen hundred two of this chapter, and at the same 51 time shall transmit to each railroad company for which such ceiling has 52 been determined a duplicate copy of such certificate. 53 3. Any final determination of a railroad ceiling by the [state board] 54 commissioner pursuant to subdivision one of this section shall be 55 subject to judicial review in a proceeding under article seventy-eight 56 of the civil practice law and rules.S. 7509--A 42 A. 9509--A 1 § 14. Section 489-ll of the real property tax law, as added by chapter 2 920 of the laws of 1977, subdivision 1 as amended by section 14 of part 3 W of chapter 56 of the laws of 2010, subdivision 2 as amended by chapter 4 735 of the laws of 1983, and subdivision 3 as added by chapter 841 of 5 the laws of 1986, is amended to read as follows: 6 § 489-ll. Final determination of railroad ceiling; certificate. 1. 7 After the hearing provided for in section four hundred eighty-nine-kk of 8 this title, the [state board of real property tax services] commissioner 9 shall finally determine the railroad ceiling for the railroad real prop- 10 erty of each railroad company situated in each assessing unit. Whenever 11 upon complaint the [state board] commissioner shall revise the local 12 reproduction cost of a railroad company in an assessing unit, [it] he or 13 she shall revise the appropriate railroad ceiling to reflect such 14 revision, but [it] he or she shall not, on account of such revision, 15 modify any other determination with respect to the railroad ceilings for 16 such railroad company for such year. Notwithstanding the fact that no 17 complaint shall have been filed with respect to a tentative determi- 18 nation of a railroad ceiling, the [state board] commissioner shall give 19 effect to any special equalization rate established pursuant to subdivi- 20 sion two of section four hundred eighty-nine-jj of this title prior to 21 the final determination of the railroad ceiling. 22 2. Not later than ten days before the last date prescribed by law for 23 the levy of taxes, the [state board] commissioner shall file a certif- 24 icate setting forth each railroad ceiling as finally determined with the 25 assessor of the appropriate assessing unit or the town or county asses- 26 sor who prepares a copy of the applicable part of the town or county 27 assessment roll for village tax purposes as provided in subdivision 28 three of section fourteen hundred two of this chapter, and at the same 29 time shall transmit to each railroad company for which such ceiling has 30 been determined a duplicate copy of such certificate. 31 3. Any final determination of a railroad ceiling by the [state board] 32 commissioner pursuant to subdivision one of this section shall be 33 subject to judicial review in a proceeding under article seventy-eight 34 of the civil practice law and rules. 35 § 15. Section 547 of the real property tax law, as amended by chapter 36 385 of the laws of 1994, is amended to read as follows: 37 § 547. Annual report. On or before January fifteenth the comptroller, 38 in consultation with the [board of real property services] commissioner 39 and other agencies as may be appropriate, shall submit to the governor 40 and the legislature an annual accounting of state aid, taxes and assess- 41 ments paid by the state pursuant to this article during the preceding 42 and current fiscal years. Such accounting shall include, but not be 43 limited to, the number, type and amount of claims so paid, as well as an 44 estimate of claims to be paid during the remainder of the current fiscal 45 year and during the following fiscal year. 46 § 16. Section 614 of the real property tax law, as amended by section 47 15 of part W of chapter 56 of the laws of 2010, is amended to read as 48 follows: 49 § 614. Determination of final assessment of special franchises. After 50 receiving the [commissioner's] hearing officer's report regarding any 51 complaint filed pursuant to section six hundred twelve of this article, 52 the [state board of real property tax services] commissioner shall 53 determine the final assessment of each special franchise. 54 § 17. Section 816 of the real property tax law, as amended by chapter 55 36 of the laws of 1980 and as further amended by subdivision (b) ofS. 7509--A 43 A. 9509--A 1 section 1 of part W of chapter 56 of the laws of 2010, is amended to 2 read as follows: 3 § 816. Review by [state board of real property tax services] commis- 4 sioner. The [state board of real property tax services] commissioner 5 shall have power on complaint to review the equalization made by any 6 county equalization agency. Such review shall be brought by filing the 7 complaint with the [state board of real property tax services] commis- 8 sioner at any time within thirty days from the date on which notice was 9 given pursuant to section eight hundred four of this article. Notice of 10 the hearing on such review shall be given by the [state board of real11property tax services] commissioner to the clerk of the county legisla- 12 tive body, whose duty it shall be to transmit a copy of such notice to 13 each member of the county legislative body and to the chief executive 14 officer of each city and town in the county. 15 § 18. Section 818 of the real property tax law, as amended by chapter 16 615 of the laws of 1972, subdivision 3 as added by chapter 556 of the 17 laws of 2002, and subdivisions 1 and 3 as further amended by subdivision 18 (b) of section 1 of part W of chapter 56 of the laws of 2010, is amended 19 to read as follows: 20 § 818. Determination on review. 1. On review of the equalization made 21 by the county equalization agency, the [state board of real property tax22services] commissioner shall review such equalization and shall deter- 23 mine whether such equalization is fair and equitable and if not, what 24 corrections should be made. The [state board of real property tax25services] commissioner shall certify its determination in writing to the 26 county legislative body and to the chief executive officer of each city 27 or town complaining, if any. 28 2. Such determination shall have the same force and effect as an 29 original equalization made by the county equalization agency within the 30 time prescribed by law. 31 3. If the [state board of real property tax services] commissioner 32 determines that the equalization made by a county equalization agency in 33 a county containing a designated large property, as that term is 34 described in section eight hundred forty-seven of this article, is not 35 fair and equitable, [it] he or she shall issue an order directing 36 correction of such equalization, which may include the apportionment and 37 levy of taxes in the manner provided in section eight hundred five of 38 this title. 39 § 19. Section 1210 of the real property tax law, as amended by section 40 17 of part W of chapter 56 of the laws of 2010, is amended to read as 41 follows: 42 § 1210. Establishment of final state equalization rates, class ratios 43 and class equalization rates. After receiving the [commissioner's] hear- 44 ing officer's report regarding any complaint filed pursuant to section 45 twelve hundred eight of this title, the [state board of real property46tax services] commissioner shall establish the final state equalization 47 rate, class ratios, and class equalization rates, if required, for each 48 city, town, village, special assessing unit, or approved assessing unit 49 or eligible non-assessing unit village which has adopted the provisions 50 of section nineteen hundred three of this chapter. 51 § 20. Section 1218 of the real property tax law, as amended by section 52 18 of part W of chapter 56 of the laws of 2010, is amended to read as 53 follows: 54 § 1218. Review of final determinations of [state board of real proper-55ty tax services] the commissioner relating to state equalization rates. 56 A final determination of the [state board of real property tax services]S. 7509--A 44 A. 9509--A 1 commissioner relating to state equalization rates may be reviewed by 2 commencing an action in the appellate division of the supreme court in 3 the manner provided by article seventy-eight of the civil practice law 4 and rules upon application of the county, city, town or village for 5 which the rate or rates were established. The standard of review in such 6 a proceeding shall be as specified in subdivision four of section seven- 7 ty-eight hundred three of the civil practice law and rules. Whenever a 8 final order is issued in such a proceeding directing a revised state 9 equalization rate, any county, village or school district that used the 10 former rate in the apportionment of taxes must, upon receipt of such 11 final order, recalculate the levy that used such former rate and credit 12 or debit as appropriate its constituent municipalities in its next levy. 13 Any special franchise assessments that were established using the former 14 rate must, upon receipt of such final order, be revised by the [state15board] commissioner in accordance with the new rate, and, if taxes have 16 already been levied upon such assessments, the affected special fran- 17 chise owners shall either automatically receive a refund if there is a 18 decrease or be taxed on an increase in the next levy in the manner 19 provided for omitted parcels in title three of article five of this 20 chapter. 21 § 21. Section 1263 of the real property tax law, as added by chapter 22 280 of the laws of 1978 and as further amended by subdivision (b) of 23 section 1 of part W of chapter 56 of the laws of 2010, is amended to 24 read as follows: 25 § 1263. Notice of determination of tentative ratios and opportunity to 26 be heard. Not later than ninety days prior to the ensuing fiscal year of 27 the city school district, the [state board of real property tax28services] commissioner shall provide written notice of the determination 29 of tentative ratios pursuant to this article to the board of education 30 of each city school district. The notice shall set forth the tentative 31 ratios, identify the assessment rolls for which the ratios were deter- 32 mined and shall specify the time and place where the [state board of33real property tax services] commissioner or a duly authorized represen- 34 tative thereof will meet to hear objections presented by the appropriate 35 board of education concerning such ratios. The notice must be served at 36 least ten days before the date specified for the hearing. After hearing 37 any objections, the [state board of real property tax services] commis- 38 sioner shall determine final ratios for the appropriate assessment rolls 39 in accordance with the provisions of this article. The board of educa- 40 tion is hereby authorized and empowered to waive the hearing with 41 respect to such tentative ratios. 42 § 22. This act shall take effect October 1, 2020. 43 PART S 44 Section 1. Paragraph (f) of subdivision 3 of section 425 of the real 45 property tax law is REPEALED. 46 § 2. Section 171-y of the tax law is REPEALED. 47 § 3. This act shall take effect immediately. 48 PART T 49 Section 1. Subdivision 3 of section 489-c of the real property tax 50 law, as amended by chapter 733 of the laws of 2004, is amended to read 51 as follows:S. 7509--A 45 A. 9509--A 1 3. Railroad real property shall be assessed according to its condition 2 and ownership as of the [first] thirty-first day of [July] December of 3 the year preceding the year in which the assessment roll on which such 4 assessment will be entered is filed in the office of the city or town 5 clerk, except that it shall be assessed according to its condition and 6 ownership as of the [first] thirty-first day of [July] December of the 7 second year preceding the date required by law for the filing of the 8 final assessment roll for purposes of all village assessment rolls. 9 § 2. Subdivision 3 of section 489-cc of the real property tax law, as 10 amended by chapter 733 of the laws of 2004, is amended to read as 11 follows: 12 3. Railroad real property shall be assessed according to its condition 13 and ownership as of the [first] thirty-first day of [July] December of 14 the year preceding the year in which the assessment roll on which such 15 assessment will be entered is filed in the office of the city or town 16 clerk, except that it shall be assessed according to its condition and 17 ownership as of the [first] thirty-first day of [July] December of the 18 second year preceding the date required by law for the filing of the 19 final assessment roll for purposes of all village assessment rolls. 20 § 3. Section 499-nnnn of the real property tax law, as added by chap- 21 ter 475 of the laws of 2013, is amended to read as follows: 22 § 499-nnnn. Equalization rate. In determining assessment ceilings, the 23 commissioner shall apply the final state equalization rate [for the24assessment roll of the local assessing jurisdiction for which the ceil-25ing is established. If that final rate is not available, the commission-26er shall apply the most recent final state equalization rate for the27local assessing jurisdiction, except that if a special equalization rate28has been established as provided in title two of article twelve of this29chapter, such rate shall be applied. In the case of a special assessing30unit as defined in section eighteen hundred one of this chapter, the31equalization rate to be applied shall be the applicable class equaliza-32tion rate] used for the local assessing jurisdiction on the assessment 33 roll for the year immediately preceding the year in which the assessment 34 ceiling is being established, except that (1) if a special equalization 35 rate was used on such assessment roll, such rate shall be applied, and 36 (2) in the case of a special assessing unit as defined in section eigh- 37 teen hundred one of this chapter, the equalization rate to be applied 38 shall be the applicable class equalization rate used on such assessment 39 roll. 40 § 4. Subdivision 2 of section 499-pppp of the real property tax law, 41 as added by chapter 475 of the laws of 2013, is amended to read as 42 follows: 43 2. Notwithstanding that a complaint may not have been filed with 44 respect to a tentative determination of an assessment ceiling, the 45 commissioner shall give effect to any special equalization rate estab- 46 lished pursuant to section twelve hundred twenty-four of this chapter 47 [or the final state equalization rate for the assessment roll for which48the ceiling is established as provided in section four hundred ninety-49nine-nnnn of this title] prior to the date for the final determination 50 of the assessment ceiling. 51 § 5. Section 3 of chapter 475 of the laws of 2013 amending the real 52 property tax law relating to assessment ceilings for local public utili- 53 ty mass real property is REPEALED. 54 § 6. This act shall take effect immediately; provided, however, that 55 the amendments to title 5 of article 4 of the real property tax law madeS. 7509--A 46 A. 9509--A 1 by sections three and four of this act shall not affect the repeal of 2 such title and shall be deemed to be repealed therewith. 3 PART U 4 Section 1. Clause (A) of subparagraph (iv) of paragraph (b) of subdi- 5 vision 4 of section 425 of the real property tax law, as amended by 6 section 1 of part PP of chapter 59 of the laws of 2019, is amended to 7 read as follows: 8 (A) Effective with applications for the enhanced exemption on final 9 assessment rolls to be completed in two thousand nineteen, the applica- 10 tion form shall indicate that all owners of the property and any owners' 11 spouses residing on the premises must have their income eligibility 12 verified annually by the department and must furnish their taxpayer 13 identification numbers in order to facilitate matching with records of 14 the department. The income eligibility of such persons shall be verified 15 annually by the department, and the assessor shall not request income 16 documentation from them. All applicants for the enhanced exemption and 17 all assessing units shall be required to participate in this program, 18 which shall be known as the STAR income verification program. The 19 commissioner may, in his or her discretion, extend the enrollment period 20 of the STAR income verification program for property owners whose prop- 21 erty received the enhanced exemption on the final assessment roll 22 completed in two thousand eighteen but who failed to enroll in suffi- 23 cient time to have the exemption continued on the final assessment roll 24 completed in two thousand nineteen. Where appropriate, the commissioner 25 is further authorized to remit directly to such a property owner a 26 payment in an amount equal to the difference between the school tax bill 27 that the property owner actually received and the school tax bill that 28 the property owner would have received had he or she enrolled in a time- 29 ly manner. 30 § 2. This act shall take effect immediately. 31 PART V 32 Section 1. Section 902 of the racing, pari-mutuel wagering and breed- 33 ing law is amended by adding a new subdivision 7 to read as follows: 34 7. A franchised racing corporation may, in its discretion and at its 35 expense, fund for the exclusive use or utilization of the commission, 36 the construction and initial equipping of an equine drug testing and 37 research laboratory located within this state to be used for such 38 purposes specified in subdivision one of this section. Such corporation 39 shall consult with the commission regarding the proper scope and equip- 40 ping of a laboratory. The siting and use of such laboratory shall be 41 pursuant to a long-term lease between the corporation and the commis- 42 sion. The commission shall operate or contract for the operation of such 43 laboratory. 44 § 2. Paragraph 3 of subdivision f of section 1612 of the tax law, as 45 amended by chapter 174 of the laws of 2013, is amended to read as 46 follows: 47 3. Four percent of the total revenue wagered after payout of prizes to 48 be deposited into an account of the franchised corporation established 49 pursuant to section two hundred six of the racing, pari-mutuel wagering 50 and breeding law to be used for capital expenditures in maintaining and 51 upgrading Aqueduct racetrack, Belmont Park racetrack and Saratoga race 52 course. Capital expenditures may include funding the construction of andS. 7509--A 47 A. 9509--A 1 initially equipping a state-based equine drug testing and research labo- 2 ratory to be used pursuant to subdivision seven of section nine hundred 3 two of the racing, pari-mutuel wagering and breeding law. 4 § 3. This act shall take effect immediately. 5 PART W 6 Section 1. The racing, pari-mutuel wagering and breeding law is 7 amended by adding a new article XI-A to read as follows: 8 ARTICLE XI-A 9 INTERSTATE COMPACT ON ANTI-DOPING 10 AND DRUG TESTING STANDARDS 11 Section 1113. Purposes. 12 1114. Definitions. 13 1115. Composition and meetings of compact commission. 14 1116. Operation of compact commission. 15 1117. General powers and duties. 16 1118. Other powers and duties. 17 1119. Compact rule making. 18 1120. Status and relationship to member states. 19 1121. Rights and responsibilities of member states. 20 1122. Enforcement of compact. 21 1123. Legal actions against compact. 22 1124. Restrictions on authority. 23 1125. Construction, savings and severability. 24 § 1113. Purposes. The purposes of the compact are: 25 a. To enable member states to act jointly and cooperatively to create 26 more uniform, effective, and efficient breed specific rules and regu- 27 lations relating to the permitted and prohibited use of drugs and medi- 28 cations for the health and welfare of the horse and the integrity of 29 racing, and testing for such substances, in or affecting a member state; 30 and 31 b. To authorize the New York state gaming commission to participate in 32 the compact. 33 § 1114. Definitions. For the purposes of this article, the following 34 terms shall have the following meanings: 35 a. "Compact commission" means the organization of delegates from the 36 member states that is authorized and empowered by the compact to carry 37 out the purposes of the compact; 38 b. "Compact rule" means a rule or regulation adopted by a member state 39 regulating the permitted and prohibited use of drugs and medications for 40 the health and welfare of the horse and the integrity of racing, and 41 testing for such substances, in live pari-mutuel horse racing that 42 occurs in or affects such states; 43 c. "Delegate" means the chairperson of the member state racing commis- 44 sion or similar regulatory body in a state, or such person's designee, 45 who represents the member state, as a voting member of the compact 46 commission and anyone who is serving as such person's alternate; 47 d. "Equine drug rule" means a rule or regulation that relates to the 48 administration of drugs, medications, or other substances to a horse 49 that may participate in live horse racing with pari-mutuel wagering 50 including, but not limited to, the regulation of the permissible use of 51 such substances to ensure the integrity of racing and the health, safety 52 and welfare of race horses, appropriate sanctions for rule violations, 53 and quality laboratory testing programs to detect such substances in the 54 bodily system of a race horse;S. 7509--A 48 A. 9509--A 1 e. "Live racing" means live horse racing with pari-mutuel wagering; 2 f. "Member state" means each state that has enacted the compact; 3 g. "National industry stakeholder" means a non-governmental organiza- 4 tion that from a national perspective significantly represents one or 5 more categories of participants in live racing and pari-mutuel wagering; 6 h. "Participants in live racing" means all persons who participate in, 7 operate, provide industry services for, or are involved with live racing 8 with pari-mutuel wagering; 9 i. "State" means each of the several states of the United States, the 10 District of Columbia, the Commonwealth of Puerto Rico, and each territo- 11 ry or possession of the United States; and 12 j. "State racing commission" means the state racing commission, or its 13 equivalent, in each member state. Where a member state has more than 14 one, it shall mean all such racing commissions, or their equivalents. 15 § 1115. Composition and meetings of compact commission. The member 16 states shall create and participate in a compact commission as follows: 17 a. The compact shall come into force when enacted by any two eligible 18 states, and shall thereafter become effective as to any other member 19 state that enacts the compact. Any state that has adopted or authorized 20 pari-mutuel wagering or live horse racing shall be eligible to become a 21 party to the compact. A compact rule shall not become effective in a new 22 member state based merely upon it entering the compact. 23 b. The member states hereby create the interstate anti-doping and drug 24 testing standards compact commission, a body corporate and an interstate 25 governmental entity of the member states, to coordinate the rule making 26 actions of each member state racing commission through a compact commis- 27 sion. 28 c. The compact commission shall consist of one delegate, the chair- 29 person of the state racing commission or such person's designee, from 30 each member state. When a delegate is not present to perform any duty in 31 the compact commission, a designated alternate may serve. The person who 32 represents a member state in the compact commission shall serve and 33 perform such duties without compensation or remuneration; provided, that 34 subject to the availability of budgeted funds, each may be reimbursed 35 for ordinary and necessary costs and expenses. The designation of a 36 delegate, including the alternate, shall be effective when written 37 notice has been provided to the compact commission. The delegate, 38 including the alternate, must be a member or employee of the state 39 racing commission. 40 d. The compact delegate from each state shall participate as an agent 41 of the state racing commission. Each delegate shall have the assistance 42 of the state racing commission in regard to all decision making and 43 actions of the state in and through the compact commission. 44 e. Each member state, by its delegate, shall be entitled to one vote 45 in the compact commission. A majority vote of the total number of deleg- 46 ates shall be required to propose a compact rule, receive and distribute 47 any funds, and to adopt, amend, or rescind the by-laws. A compact rule 48 shall take effect in and for each member state when adopted by a super 49 majority vote of eighty percent of the total number of member states. 50 Other compact actions shall require a majority vote of the delegates who 51 are meeting. 52 f. Meetings and votes of the compact commission may be conducted in 53 person or by telephone or other electronic communication. Meetings may 54 be called by the chairperson of the compact commission or by any two 55 delegates. Reasonable notice of each meeting shall be provided to all 56 delegates serving in the compact commission.S. 7509--A 49 A. 9509--A 1 g. No action may be taken at a compact commission meeting unless there 2 is a quorum, which is either a majority of the delegates in the compact 3 commission, or where applicable, all the delegates from any member 4 states who propose or are voting affirmatively to adopt a compact rule. 5 h. Once effective, the compact shall continue in force and remain 6 binding according to its terms upon each member state; provided that, a 7 member state may withdraw from the compact by repealing the statute that 8 enacted the compact into law. The racing commission of a withdrawing 9 state shall give written notice of such withdrawal to the compact chair- 10 person, who shall notify the member state racing commissions. A with- 11 drawing state shall remain responsible for any unfulfilled obligations 12 and liabilities. The effective date of withdrawal from the compact shall 13 be the effective date of the repeal. 14 § 1116. Operation of compact commission. The compact commission is 15 hereby granted, so that it may be an effective means to pursue and 16 achieve the purposes of each member state in the compact, the power and 17 duty: 18 a. to adopt, amend, and rescind by-laws to govern its conduct, as may 19 be necessary or appropriate to carry out the purposes of the compact; to 20 publish them in a convenient form; and to file a copy of them with the 21 state racing commission of each member state; 22 b. to elect annually from among the delegates, including alternates, a 23 chairperson, vice-chairperson, and treasurer with such authority and 24 duties as may be specified in the by-laws; 25 c. to establish and appoint committees which it deems necessary for 26 the carrying out of its functions, including advisory committees which 27 shall be comprised of national industry stakeholders and organizations 28 and such other persons as may be designated in accordance with the 29 by-laws, to obtain their timely and meaningful input into the compact 30 rule making processes; 31 d. to establish an executive committee, with membership established in 32 the by-laws, which shall oversee the day-to-day activities of compact 33 administration and management by the executive director and staff; hire 34 and fire as may be necessary after consultation with the compact commis- 35 sion; administer and enforce compliance with the provisions, by-laws, 36 and rules of the compact; and perform such other duties as the by-laws 37 may establish; 38 e. to create, appoint, and abolish all those offices, employments, and 39 positions, including an executive director, useful to fulfill its 40 purposes; 41 f. to delegate day-to-day management and administration of its duties, 42 as needed, to an executive director and support staff; and 43 g. to adopt an annual budget sufficient to provide for the payment of 44 the reasonable expenses of its establishment, organization, and ongoing 45 activities; provided, that the budget shall be funded by only voluntary 46 contributions. 47 § 1117. General powers and duties. To allow each member state, as and 48 when it chooses, to achieve the purpose of the compact through joint and 49 cooperative action, the member states are hereby granted the power and 50 duty, by and through the compact commission: 51 a. to act jointly and cooperatively to create a more equitable and 52 uniform pari-mutuel racing and wagering interstate regulatory framework 53 by the adoption of standardized rules for the permitted and prohibited 54 use of drugs and medications for the health, and welfare of the horse 55 and the integrity of racing, including rules governing the use of drugs 56 and medications and drug testing;S. 7509--A 50 A. 9509--A 1 b. to collaborate with national industry stakeholders and industry 2 organizations in the design and implementation of compact rules in a 3 manner that serves the best interests of racing; and 4 c. to propose and adopt breed specific compact equine drugs and medi- 5 cations rules for the health, and welfare of the horse, including rules 6 governing the permitted and prohibited use of drugs and medications and 7 drug testing, which shall have the force and effect of state rules or 8 regulations in the member states, to govern live pari-mutuel horse 9 racing. 10 § 1118. Other powers and duties. The compact commission may exercise 11 such incidental powers and duties as may be necessary and proper for it 12 to function in a useful manner, including but not limited to the power 13 and duty: 14 a. to enter into contracts and agreements with governmental agencies 15 and other persons, including officers and employees of a member state, 16 to provide personal services for its activities and such other services 17 as may be necessary; 18 b. to borrow, accept, and contract for the services of personnel from 19 any state, federal, or other governmental agency, or from any other 20 person or entity; 21 c. to receive information from and to provide information to each 22 member state racing commission, including its officers and staff, on 23 such terms and conditions as may be established in the by-laws; 24 d. to acquire, hold, and dispose of any real or personal property by 25 gift, grant, purchase, lease, license, and similar means and to receive 26 additional funds through gifts, grants, and appropriations; 27 e. when authorized by a compact rule, to conduct hearings and render 28 reports and advisory decisions and orders; and 29 f. to establish in the by-laws the requirements that shall describe 30 and govern its duties to conduct open or public meetings and to provide 31 public access to compact records and information. 32 § 1119. Compact rule making. In the exercise of its rule making 33 authority, the compact commission shall: 34 a. engage in formal rule making pursuant to a process that substan- 35 tially conforms to the Model State Administrative Procedure Act of 1981 36 as amended, as may be appropriate to the actions and operations of the 37 compact commission; 38 b. gather information and engage in discussions with advisory commit- 39 tees, national industry stakeholders, and others, including an opportu- 40 nity for industry organizations to submit input to member state racing 41 commissions on the state level, to foster, promote and conduct a colla- 42 borative approach in the design and advancement of compact rules in a 43 manner that serves the best interests of racing and as established in 44 the by-laws; 45 c. direct the publication in each member state of each equine drug 46 rule proposed by the compact commission, conduct a review of public 47 comments received by each member state racing commission and the compact 48 commission in response to the publication of its rule making proposals, 49 consult with national industry stakeholders and participants in live 50 racing with regard to such process and any revisions to the compact rule 51 proposal, and meet upon the completion of the public comment period to 52 conduct a vote on the adoption of the proposed compact rule as a state 53 rule in the member states; and 54 d. have a standing committee that reviews at least quarterly the 55 participation in and value of compact rules and, when it determines that 56 a revision is appropriate or when requested to by any member state,S. 7509--A 51 A. 9509--A 1 submits a revising proposed compact rule. To the extent a revision would 2 only add or remove a member state or states from where a compact rule 3 has been adopted, the vote required by this section shall be required of 4 only such state or states. The standing committee shall gather informa- 5 tion and engage in discussions with national industry stakeholders, who 6 may also directly recommend a compact rule proposal or revision to the 7 compact committee. 8 § 1120. Status and relationship to member states. a. The compact 9 commission, as an interstate governmental entity, shall be exempt from 10 all taxation in and by the member states. 11 b. The compact commission shall not pledge the credit of any member 12 state except by and with the appropriate legal authority of that state. 13 c. Each member state shall reimburse or otherwise pay the expenses of 14 its delegate, including any alternate, in the compact commission. 15 d. No member state, except as provided in section eleven hundred twen- 16 ty-three of this article, shall be held liable for the debts or other 17 financial obligations incurred by the compact commission. 18 e. No member state shall have, while it participates in the compact 19 commission, any claim to or ownership of any property held by or vested 20 in the compact commission or to any compact commission funds held pursu- 21 ant to the compact except for state license or other fees or moneys 22 collected by the compact commission as its agent. 23 f. The compact dissolves upon the date of the withdrawal of the member 24 state that reduces membership in the compact to one state. Upon dissol- 25 ution, the compact becomes null and void and shall be of no further 26 force or effect, although equine drug rules adopted through the compact 27 shall remain state rules in each member state that had adopted them, and 28 the business and affairs of the compact shall be concluded and any 29 surplus funds shall be distributed to the former member states in 30 accordance with the by-laws. 31 § 1121. Rights and responsibilities of member states. a. Each member 32 state in the compact shall accept the decisions, duly applicable to it, 33 of the compact commission in regard to compact rules and rule making. 34 b. The compact shall not be construed to diminish or limit the powers 35 and responsibilities of the member state racing commission or similar 36 regulatory body, or to invalidate any action it has previously taken, 37 except to the extent it has, by its compact delegate, expressed its 38 consent to a specific rule or other action of the compact commission. 39 The compact delegate from each state shall serve as the agent of the 40 state racing commission and shall possess substantial knowledge and 41 experience as a regulator or participant in the horse racing industry. 42 § 1122. Enforcement of compact. a. The compact commission shall have 43 standing to intervene in any legal action that pertains to the subject 44 matter of the compact and might affect its powers, duties, or actions. 45 b. The courts and executive in each member state shall enforce the 46 compact and take all actions necessary and appropriate to effectuate its 47 purposes and intent. Compact provisions, by-laws, and rules shall be 48 received by all judges, departments, agencies, bodies, and officers of 49 each member state and its political subdivisions as evidence of them. 50 § 1123. Legal actions against compact. a. Any person may commence a 51 claim, action, or proceeding against the compact commission in state 52 court for damages. The compact commission shall have the benefit of the 53 same limits of liability, defenses, rights to indemnity and defense by 54 the state, and other legal rights and defenses for non-compact matters 55 of the state racing commission in the state. All legal rights andS. 7509--A 52 A. 9509--A 1 defenses that arise from the compact shall also be available to the 2 compact commission. 3 b. A compact delegate, alternate, or other member or employee of a 4 state racing commission who undertakes compact activities or duties does 5 so in the course of business of their state racing commission, and shall 6 have the benefit of the same limits of liability, defenses, rights to 7 indemnity and defense by the state, and other legal rights and defenses 8 for non-compact matters of state employees in their state. The executive 9 director and other employees of the compact commission shall have the 10 benefit of these same legal rights and defenses of state employees in 11 the member state in which they are primarily employed. All legal rights 12 and defenses that arise from the compact shall also be available to 13 them. 14 c. Each member state shall be liable for and pay judgments filed 15 against the compact commission to the extent related to its partic- 16 ipation in the compact. Where liability arises from action undertaken 17 jointly with other member states, the liability shall be divided equally 18 among the states for whom the applicable action or omission of the exec- 19 utive director or other employees of the compact commission was under- 20 taken; and no member state shall contribute to or pay, or be jointly or 21 severally or otherwise liable for, any part of any judgment beyond its 22 share as determined in accordance with this section. 23 § 1124. Restrictions on authority. a. New York substantive state laws 24 applicable to pari-mutuel horse racing and wagering shall remain in full 25 force and effect. 26 b. Compact rules shall not preclude subsequent rulemaking in New York 27 state on the same or related matter. The most recently adopted rule 28 shall thereby become the governing law. 29 c. New York state shall not participate in or apply this interstate 30 compact to any aspect of standardbred racing. 31 § 1125. Construction, savings and severability. a. The compact shall 32 be liberally construed so as to effectuate its purposes. The provisions 33 of the compact shall be severable and if any phrase, clause, sentence, 34 or provision of the compact is declared to be contrary to the constitu- 35 tion of the United States or of any member state, or the applicability 36 of the compact to any government, agency, person, or circumstance is 37 held invalid, the validity of the remainder of the compact and its 38 applicability to any government, agency, person, or circumstance shall 39 not be affected. If all or some portion of the compact is held to be 40 contrary to the constitution of any member state, the compact shall 41 remain in full force and effect as to the remaining member states and in 42 full force and effect as to the state affected as to all severable 43 matters. 44 b. In the event of any allegation, finding, or ruling against the 45 compact or its procedures or actions, provided that a member state has 46 followed the compact's stated procedures, any rule it purported to adopt 47 using the procedures of this statute shall constitute a duly adopted and 48 valid state rule. 49 § 2. This act shall take effect immediately. 50 PART X 51 Section 1. Paragraph (b) of subdivision 3 of section 1367 of the 52 racing, pari-mutuel wagering and breeding law, as added by chapter 174 53 of the laws of 2013, is amended to read as follows:S. 7509--A 53 A. 9509--A 1 (b) A sports pool shall be primarily operated in a sports wagering 2 lounge located at a casino. The lounge shall conform to all requirements 3 concerning square footage, design, equipment, security measures and 4 related matters which the commission shall by regulation prescribe. The 5 commission may also approve additional locations for a sports pool with- 6 in the casino, in areas that have been approved by the commission for 7 the conduct of other gaming, to be operated in a manner and methodology 8 as regulation shall prescribe. 9 § 2. This act shall take effect immediately. 10 PART Y 11 Section 1. Paragraph 1 of subdivision a of section 1612 of the tax 12 law, as amended by chapter 174 of the laws of 2013, is amended to read 13 as follows: 14 (1) sixty percent of the total amount for which tickets have been sold 15 for [a lawful lottery] the Quick Draw game [introduced on or after the16effective date of this paragraph,] subject to [the following provisions:17(A) such game shall be available only on premises occupied by licensed18lottery sales agents, subject to the following provisions:19(i) if the licensee does not hold a license issued pursuant to the20alcoholic beverage control law to sell alcoholic beverages for consump-21tion on the premises, then the premises must have a minimum square22footage greater than two thousand five hundred square feet;23(ii) notwithstanding the foregoing provisions, television equipment24that automatically displays the results of such drawings may be25installed and used without regard to the square footage if such premises26are used as:27(I) a commercial bowling establishment, or28(II) a facility authorized under the racing, pari-mutuel wagering and29breeding law to accept pari-mutuel wagers;30(B) the] rules for the operation of such game [shall be] as prescribed 31 by regulations promulgated and adopted by the division, provided howev- 32 er, that such rules shall provide that no person under the age of twen- 33 ty-one may participate in such games on the premises of a licensee who 34 holds a license issued pursuant to the alcoholic beverage control law to 35 sell alcoholic beverages for consumption on the premises; and, provided, 36 further, that such regulations may be revised on an emergency basis not 37 later than ninety days after the enactment of this paragraph in order to 38 conform such regulations to the requirements of this paragraph; or 39 § 2. This act shall take effect immediately. 40 PART Z 41 Section 1. Paragraph (a) of subdivision 1 of section 1003 of the 42 racing, pari-mutuel wagering and breeding law, as amended by section 1 43 of part HH of chapter 59 of the laws of 2019, is amended to read as 44 follows: 45 (a) Any racing association or corporation or regional off-track 46 betting corporation, authorized to conduct pari-mutuel wagering under 47 this chapter, desiring to display the simulcast of horse races on which 48 pari-mutuel betting shall be permitted in the manner and subject to the 49 conditions provided for in this article may apply to the commission for 50 a license so to do. Applications for licenses shall be in such form as 51 may be prescribed by the commission and shall contain such information 52 or other material or evidence as the commission may require. No licenseS. 7509--A 54 A. 9509--A 1 shall be issued by the commission authorizing the simulcast transmission 2 of thoroughbred races from a track located in Suffolk county. The fee 3 for such licenses shall be five hundred dollars per simulcast facility 4 and for account wagering licensees that do not operate either a simul- 5 cast facility that is open to the public within the state of New York or 6 a licensed racetrack within the state, twenty thousand dollars per year 7 payable by the licensee to the commission for deposit into the general 8 fund. Except as provided in this section, the commission shall not 9 approve any application to conduct simulcasting into individual or group 10 residences, homes or other areas for the purposes of or in connection 11 with pari-mutuel wagering. The commission may approve simulcasting into 12 residences, homes or other areas to be conducted jointly by one or more 13 regional off-track betting corporations and one or more of the follow- 14 ing: a franchised corporation, thoroughbred racing corporation or a 15 harness racing corporation or association; provided (i) the simulcasting 16 consists only of those races on which pari-mutuel betting is authorized 17 by this chapter at one or more simulcast facilities for each of the 18 contracting off-track betting corporations which shall include wagers 19 made in accordance with section one thousand fifteen, one thousand 20 sixteen and one thousand seventeen of this article; provided further 21 that the contract provisions or other simulcast arrangements for such 22 simulcast facility shall be no less favorable than those in effect on 23 January first, two thousand five; (ii) that each off-track betting 24 corporation having within its geographic boundaries such residences, 25 homes or other areas technically capable of receiving the simulcast 26 signal shall be a contracting party; (iii) the distribution of revenues 27 shall be subject to contractual agreement of the parties except that 28 statutory payments to non-contracting parties, if any, may not be 29 reduced; provided, however, that nothing herein to the contrary shall 30 prevent a track from televising its races on an irregular basis primari- 31 ly for promotional or marketing purposes as found by the commission. For 32 purposes of this paragraph, the provisions of section one thousand thir- 33 teen of this article shall not apply. Any agreement authorizing an 34 in-home simulcasting experiment commencing prior to May fifteenth, nine- 35 teen hundred ninety-five, may, and all its terms, be extended until June 36 thirtieth, two thousand [twenty] twenty-one; provided, however, that any 37 party to such agreement may elect to terminate such agreement upon 38 conveying written notice to all other parties of such agreement at least 39 forty-five days prior to the effective date of the termination, via 40 registered mail. Any party to an agreement receiving such notice of an 41 intent to terminate, may request the commission to mediate between the 42 parties new terms and conditions in a replacement agreement between the 43 parties as will permit continuation of an in-home experiment until June 44 thirtieth, two thousand [twenty] twenty-one; and (iv) no in-home simul- 45 casting in the thoroughbred special betting district shall occur without 46 the approval of the regional thoroughbred track. 47 § 2. Subparagraph (iii) of paragraph d of subdivision 3 of section 48 1007 of the racing, pari-mutuel wagering and breeding law, as amended by 49 section 2 of part HH of chapter 59 of the laws of 2019, is amended to 50 read as follows: 51 (iii) Of the sums retained by a receiving track located in Westchester 52 county on races received from a franchised corporation, for the period 53 commencing January first, two thousand eight and continuing through June 54 thirtieth, two thousand [twenty] twenty-one, the amount used exclusively 55 for purses to be awarded at races conducted by such receiving track 56 shall be computed as follows: of the sums so retained, two and one-halfS. 7509--A 55 A. 9509--A 1 percent of the total pools. Such amount shall be increased or decreased 2 in the amount of fifty percent of the difference in total commissions 3 determined by comparing the total commissions available after July twen- 4 ty-first, nineteen hundred ninety-five to the total commissions that 5 would have been available to such track prior to July twenty-first, 6 nineteen hundred ninety-five. 7 § 3. The opening paragraph of subdivision 1 of section 1014 of the 8 racing, pari-mutuel wagering and breeding law, as amended by section 3 9 of part HH of chapter 59 of the laws of 2019, is amended to read as 10 follows: 11 The provisions of this section shall govern the simulcasting of races 12 conducted at thoroughbred tracks located in another state or country on 13 any day during which a franchised corporation is conducting a race meet- 14 ing in Saratoga county at Saratoga thoroughbred racetrack until June 15 thirtieth, two thousand [twenty] twenty-one and on any day regardless of 16 whether or not a franchised corporation is conducting a race meeting in 17 Saratoga county at Saratoga thoroughbred racetrack after June thirtieth, 18 two thousand [twenty] twenty-one. On any day on which a franchised 19 corporation has not scheduled a racing program but a thoroughbred racing 20 corporation located within the state is conducting racing, every off- 21 track betting corporation branch office and every simulcasting facility 22 licensed in accordance with section one thousand seven (that has entered 23 into a written agreement with such facility's representative horsemen's 24 organization, as approved by the commission), one thousand eight, or one 25 thousand nine of this article shall be authorized to accept wagers and 26 display the live simulcast signal from thoroughbred tracks located in 27 another state or foreign country subject to the following provisions: 28 § 4. Subdivision 1 of section 1015 of the racing, pari-mutuel wagering 29 and breeding law, as amended by section 4 of part HH of chapter 59 of 30 the laws of 2019, is amended to read as follows: 31 1. The provisions of this section shall govern the simulcasting of 32 races conducted at harness tracks located in another state or country 33 during the period July first, nineteen hundred ninety-four through June 34 thirtieth, two thousand [twenty] twenty-one. This section shall super- 35 sede all inconsistent provisions of this chapter. 36 § 5. The opening paragraph of subdivision 1 of section 1016 of the 37 racing, pari-mutuel wagering and breeding law, as amended by section 5 38 of part HH of chapter 59 of the laws of 2019, is amended to read as 39 follows: 40 The provisions of this section shall govern the simulcasting of races 41 conducted at thoroughbred tracks located in another state or country on 42 any day during which a franchised corporation is not conducting a race 43 meeting in Saratoga county at Saratoga thoroughbred racetrack until June 44 thirtieth, two thousand [twenty] twenty-one. Every off-track betting 45 corporation branch office and every simulcasting facility licensed in 46 accordance with section one thousand seven that have entered into a 47 written agreement with such facility's representative horsemen's organ- 48 ization as approved by the commission, one thousand eight or one thou- 49 sand nine of this article shall be authorized to accept wagers and 50 display the live full-card simulcast signal of thoroughbred tracks 51 (which may include quarter horse or mixed meetings provided that all 52 such wagering on such races shall be construed to be thoroughbred races) 53 located in another state or foreign country, subject to the following 54 provisions; provided, however, no such written agreement shall be 55 required of a franchised corporation licensed in accordance with section 56 one thousand seven of this article:S. 7509--A 56 A. 9509--A 1 § 6. The opening paragraph of section 1018 of the racing, pari-mutuel 2 wagering and breeding law, as amended by section 6 of part HH of chapter 3 59 of the laws of 2019, is amended to read as follows: 4 Notwithstanding any other provision of this chapter, for the period 5 July twenty-fifth, two thousand one through September eighth, two thou- 6 sand [nineteen] twenty, when a franchised corporation is conducting a 7 race meeting within the state at Saratoga Race Course, every off-track 8 betting corporation branch office and every simulcasting facility 9 licensed in accordance with section one thousand seven (that has entered 10 into a written agreement with such facility's representative horsemen's 11 organization as approved by the commission), one thousand eight or one 12 thousand nine of this article shall be authorized to accept wagers and 13 display the live simulcast signal from thoroughbred tracks located in 14 another state, provided that such facility shall accept wagers on races 15 run at all in-state thoroughbred tracks which are conducting racing 16 programs subject to the following provisions; provided, however, no such 17 written agreement shall be required of a franchised corporation licensed 18 in accordance with section one thousand seven of this article. 19 § 7. Section 32 of chapter 281 of the laws of 1994, amending the 20 racing, pari-mutuel wagering and breeding law and other laws relating to 21 simulcasting, as amended by section 7 of part HH of chapter 59 of the 22 laws of 2019, is amended to read as follows: 23 § 32. This act shall take effect immediately and the pari-mutuel tax 24 reductions in section six of this act shall expire and be deemed 25 repealed on July 1, [2020] 2021; provided, however, that nothing 26 contained herein shall be deemed to affect the application, qualifica- 27 tion, expiration, or repeal of any provision of law amended by any 28 section of this act, and such provisions shall be applied or qualified 29 or shall expire or be deemed repealed in the same manner, to the same 30 extent and on the same date as the case may be as otherwise provided by 31 law; provided further, however, that sections twenty-three and twenty- 32 five of this act shall remain in full force and effect only until May 1, 33 1997 and at such time shall be deemed to be repealed. 34 § 8. Section 54 of chapter 346 of the laws of 1990, amending the 35 racing, pari-mutuel wagering and breeding law and other laws relating to 36 simulcasting and the imposition of certain taxes, as amended by section 37 8 of part HH of chapter 59 of the laws of 2019, is amended to read as 38 follows: 39 § 54. This act shall take effect immediately; provided, however, 40 sections three through twelve of this act shall take effect on January 41 1, 1991, and section 1013 of the racing, pari-mutuel wagering and breed- 42 ing law, as added by section thirty-eight of this act, shall expire and 43 be deemed repealed on July 1, [2020] 2021; and section eighteen of this 44 act shall take effect on July 1, 2008 and sections fifty-one and fifty- 45 two of this act shall take effect as of the same date as chapter 772 of 46 the laws of 1989 took effect. 47 § 9. Paragraph (a) of subdivision 1 of section 238 of the racing, 48 pari-mutuel wagering and breeding law, as amended by section 9 of part 49 HH of chapter 59 of the laws of 2019, is amended to read as follows: 50 (a) The franchised corporation authorized under this chapter to 51 conduct pari-mutuel betting at a race meeting or races run thereat shall 52 distribute all sums deposited in any pari-mutuel pool to the holders of 53 winning tickets therein, provided such tickets be presented for payment 54 before April first of the year following the year of their purchase, 55 less an amount which shall be established and retained by such fran- 56 chised corporation of between twelve to seventeen per centum of theS. 7509--A 57 A. 9509--A 1 total deposits in pools resulting from on-track regular bets, and four- 2 teen to twenty-one per centum of the total deposits in pools resulting 3 from on-track multiple bets and fifteen to twenty-five per centum of the 4 total deposits in pools resulting from on-track exotic bets and fifteen 5 to thirty-six per centum of the total deposits in pools resulting from 6 on-track super exotic bets, plus the breaks. The retention rate to be 7 established is subject to the prior approval of the gaming commission. 8 Such rate may not be changed more than once per calendar quarter to be 9 effective on the first day of the calendar quarter. "Exotic bets" and 10 "multiple bets" shall have the meanings set forth in section five 11 hundred nineteen of this chapter. "Super exotic bets" shall have the 12 meaning set forth in section three hundred one of this chapter. For 13 purposes of this section, a "pick six bet" shall mean a single bet or 14 wager on the outcomes of six races. The breaks are hereby defined as the 15 odd cents over any multiple of five for payoffs greater than one dollar 16 five cents but less than five dollars, over any multiple of ten for 17 payoffs greater than five dollars but less than twenty-five dollars, 18 over any multiple of twenty-five for payoffs greater than twenty-five 19 dollars but less than two hundred fifty dollars, or over any multiple of 20 fifty for payoffs over two hundred fifty dollars. Out of the amount so 21 retained there shall be paid by such franchised corporation to the 22 commissioner of taxation and finance, as a reasonable tax by the state 23 for the privilege of conducting pari-mutuel betting on the races run at 24 the race meetings held by such franchised corporation, the following 25 percentages of the total pool for regular and multiple bets five per 26 centum of regular bets and four per centum of multiple bets plus twenty 27 per centum of the breaks; for exotic wagers seven and one-half per 28 centum plus twenty per centum of the breaks, and for super exotic bets 29 seven and one-half per centum plus fifty per centum of the breaks. 30 For the period June first, nineteen hundred ninety-five through 31 September ninth, nineteen hundred ninety-nine, such tax on regular 32 wagers shall be three per centum and such tax on multiple wagers shall 33 be two and one-half per centum, plus twenty per centum of the breaks. 34 For the period September tenth, nineteen hundred ninety-nine through 35 March thirty-first, two thousand one, such tax on all wagers shall be 36 two and six-tenths per centum and for the period April first, two thou- 37 sand one through December thirty-first, two thousand [twenty] 38 twenty-one, such tax on all wagers shall be one and six-tenths per 39 centum, plus, in each such period, twenty per centum of the breaks. 40 Payment to the New York state thoroughbred breeding and development fund 41 by such franchised corporation shall be one-half of one per centum of 42 total daily on-track pari-mutuel pools resulting from regular, multiple 43 and exotic bets and three per centum of super exotic bets provided, 44 however, that for the period September tenth, nineteen hundred ninety- 45 nine through March thirty-first, two thousand one, such payment shall be 46 six-tenths of one per centum of regular, multiple and exotic pools and 47 for the period April first, two thousand one through December thirty- 48 first, two thousand [twenty] twenty-one, such payment shall be seven- 49 tenths of one per centum of such pools. 50 § 10. This act shall take effect immediately. 51 PART AA 52 Section 1. Paragraph (b-1) of subdivision 3 of section 425 of the real 53 property tax law, as amended by section 1 of part RR of chapter 59 of 54 the laws of 2019, is amended to read as follows:S. 7509--A 58 A. 9509--A 1 (b-1) Income. For final assessment rolls to be used for the levy of 2 taxes for the two thousand eleven-two thousand twelve through two thou- 3 sand eighteen-two thousand nineteen school years, the parcel's affil- 4 iated income may be no greater than five hundred thousand dollars, as 5 determined by the commissioner pursuant to subdivision fourteen of this 6 section or section one hundred seventy-one-u of the tax law, in order to 7 be eligible for the basic exemption authorized by this section. [Begin-8ning with] For the two thousand nineteen-two thousand twenty school 9 year, for purposes of the exemption authorized by this section, the 10 parcel's affiliated income may be no greater than two hundred fifty 11 thousand dollars, as so determined. Beginning with the two thousand 12 twenty--two thousand twenty-one school year, for purposes of the 13 exemption authorized by this section, the parcel's affiliated income may 14 be no greater than two hundred thousand dollars, as so determined. As 15 used herein, the term "affiliated income" shall mean the combined income 16 of all of the owners of the parcel who resided primarily thereon on the 17 applicable taxable status date, and of any owners' spouses residing 18 primarily thereon. For exemptions on final assessment rolls to be used 19 for the levy of taxes for the two thousand eleven-two thousand twelve 20 school year, affiliated income shall be determined based upon the 21 parties' incomes for the income tax year ending in two thousand nine. In 22 each subsequent school year, the applicable income tax year shall be 23 advanced by one year. The term "income" as used herein shall have the 24 same meaning as in subdivision four of this section. 25 § 2. This act shall take effect immediately. 26 PART BB 27 Section 1. This act shall be known and may be cited as the "Cannabis 28 Regulation and Taxation Act". 29 § 2. A new chapter 7-A of the consolidated laws is added to read as 30 follows: 31 CHAPTER 7-A OF THE CONSOLIDATED LAWS 32 CANNABIS LAW 33 ARTICLE 1 34 SHORT TITLE; POLICY OF STATE AND PURPOSE OF CHAPTER; 35 DEFINITIONS 36 Section 1. Short title. 37 2. Policy of state and purpose of chapter. 38 3. Definitions. 39 § 1. Short title. This chapter shall be known and may be cited and 40 referred to as the "cannabis law". 41 § 2. Policy of state and purpose of chapter. It is hereby declared as 42 policy of the state of New York that it is necessary to properly regu- 43 late, restrict, and control the cultivation, processing, manufacture, 44 wholesale, and retail production, distribution, transportation, adver- 45 tising, marketing, and sale of cannabis, cannabis products, medical 46 cannabis, and cannabinoid hemp within the state of New York, for the 47 purposes of fostering and promoting temperance in their consumption, to 48 properly protect the public health, safety, and welfare, to displace the 49 illicit cannabis market, to provide safe and affordable access to 50 medical cannabis for patients, and to promote social and economic equal- 51 ity. It is hereby declared that such policy will best be carried out by 52 empowering the state office of cannabis management and its executive 53 director, to determine whether public health, safety, convenience andS. 7509--A 59 A. 9509--A 1 advantage will be promoted by the issuance of registrations, licenses 2 and/or permits granting the privilege to produce, distribute, transport, 3 sell, or traffic in cannabis, medical cannabis, or cannabinoid hemp, to 4 increase or decrease in the number thereof, scope of activities, and the 5 location of premises registered, licensed, or permitted thereby, subject 6 only to the right of judicial review hereinafter provided for. It is the 7 purpose of this chapter to carry out that policy in the public interest. 8 The restrictions, regulations, and provisions contained in this chapter 9 are enacted by the legislature for the protection of the health, safety, 10 and welfare of the people of the state. 11 § 3. Definitions. Whenever used in this chapter, unless otherwise 12 expressly stated or unless the context or subject matter requires a 13 different meaning, the following terms shall have the representative 14 meanings hereinafter set forth or indicated: 15 1. "Applicant" means a person or for-profit entity or not-for-profit 16 corporation and includes: board members, officers, managers, owners, 17 partners, principal stakeholders, financiers, and members who submit an 18 application to become a registered organization, licensee or permittee, 19 and may include any other individual or entity with a material or opera- 20 tional interest in the license or its operations as determined by its 21 executive director in regulation. 22 2. "Bona fide cannabis retailer association" shall mean an association 23 of retailers holding licenses under this chapter, organized under the 24 non-profit or not-for-profit laws of this state. 25 3. "Cannabis" means all parts of the plant of the genus cannabis, 26 whether growing or not; the seeds thereof; the resin extracted from any 27 part of the plant; and every compound, manufacture, salt, derivative, 28 mixture, or preparation of the plant, its seeds or resin. 29 4. "Concentrated cannabis" means: (a) the separated resin, whether 30 crude or purified, obtained from a plant of the genus cannabis; or (b) a 31 material, preparation, mixture, compound or other substance which 32 contains more than three-tenths of one percent by weight or by volume of 33 delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran 34 numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 35 (6) monoterpene numbering system or which exceeds an amount of delta-9 36 tetrahydrocannabinol or its isomer, delta-8 dibenzopyran numbering 37 system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono- 38 terpene numbering system per serving or per product determined by the 39 executive director in regulation. 40 5. "Adult-use cannabis consumer" means a person, twenty-one years of 41 age or older, who purchases approved adult-use cannabis or adult-use 42 cannabis products for personal use, but not for resale to others. 43 6. "Adult-use cannabis processor" means a person licensed by the 44 office who may purchase adult-use cannabis from adult-use cannabis 45 cultivators, and who may process adult-use cannabis, and adult-use 46 cannabis products, package and label adult-use cannabis, and adult-use 47 cannabis products for sale in adult-use cannabis retail outlets, and who 48 may sell adult-use cannabis and cannabis-infused products at wholesale 49 to licensed adult-use cannabis distributors, in accordance with regu- 50 lations determined by the executive director. 51 7. "Adult-use cannabis product" or "adult-use cannabis" means any 52 approved adult-use cannabis, concentrated cannabis, or adult-use canna- 53 bis-infused or extracted products, or products which otherwise contain 54 or are derived from adult-use cannabis, and which have been authorized 55 for distribution to and for use by an adult-use cannabis consumer as 56 determined by the executive director in regulation.S. 7509--A 60 A. 9509--A 1 8. "Adult-use cannabis retail dispenser" means a person or entity 2 licensed by the executive director who may purchase adult-use cannabis 3 products, from adult-use cannabis cultivators, processors or distribu- 4 tors, and who may sell approved adult-use cannabis products, in a retail 5 outlet, in accordance with regulations determined by the executive 6 director. 7 9. "Certified medical use" means the acquisition, possession, use, or 8 transportation of medical cannabis by a certified patient, or the acqui- 9 sition, possession, delivery, transportation or administration of 10 medical cannabis by a designated caregiver or designated caregiver 11 facility, for use as part of the treatment of the patient's serious 12 condition, as authorized in a certification under this chapter including 13 enabling the patient to tolerate treatment for the serious condition. 14 10. "Caring for" means treating a patient, in the course of which the 15 practitioner has completed a full assessment of the patient's medical 16 history and current medical condition. 17 11. "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 section 20 thirty of this chapter. 21 12. "Certification" means a certification, made under this chapter. 22 13. "Adult-use cultivation" shall include, the planting, growing, 23 cloning, harvesting, drying, curing, grading and trimming of adult-use 24 cannabis, or such other cultivation related processes as determined by 25 the executive director in regulation. 26 14. "Executive director" means the executive director of the office of 27 cannabis management. 28 15. "Convicted" and "conviction" include and mean a finding of guilt 29 resulting from a plea of guilty, the decision of a court or magistrate 30 or the verdict of a jury, irrespective of the pronouncement of judgment 31 or the suspension thereof. 32 16. "Designated caregiver" means an individual designated by a certi- 33 fied patient in a registry application. A certified patient may desig- 34 nate up to two designated caregivers. 35 17. "Designated caregiver facility" means a general hospital or resi- 36 dential health care facility operating pursuant to article twenty-eight 37 of the public health law; an adult care facility operating pursuant to 38 title two of article seven of the social services law; a community 39 mental health residence established pursuant to section 41.44 of the 40 mental hygiene Law; a hospital operating pursuant to section 7.17 of the 41 mental hygiene law; a mental hygiene facility operating pursuant to 42 article thirty-one of the mental hygiene law; an inpatient or residen- 43 tial treatment program certified pursuant to article thirty-two of the 44 mental hygiene law; a residential facility for the care and treatment of 45 persons with developmental disabilities operating pursuant to article 46 sixteen of the mental hygiene law; a residential treatment facility for 47 children and youth operating pursuant to article thirty-one of the 48 mental hygiene law; a private or public school; research institution 49 with an internal review board; or any other facility as determined by 50 the executive director in regulation; that registers with the office of 51 cannabis management to assist one or more certified patients with the 52 acquisition, possession, delivery, transportation or administration of 53 medical cannabis. 54 18. "Felony" means any criminal offense classified as a felony under 55 the laws of this state or any criminal offense committed in any other 56 state, district, or territory of the United States and classified as aS. 7509--A 61 A. 9509--A 1 felony therein which if committed within this state, would constitute a 2 felony in this state. 3 19. "Form of medical cannabis" means characteristics of the medical 4 cannabis recommended or limited for a particular certified patient, 5 including the method of consumption and any particular strain, variety, 6 and quantity or percentage of cannabis or particular active ingredient. 7 20. "Government agency" means any office, division, board, bureau, 8 commission, office, agency, authority or public corporation of the state 9 or federal government or a county, city, town or village government 10 within the state. 11 21. "Hemp" means the plant Cannabis sativa L. and any part of such 12 plant, including the seeds thereof and all derivatives, extracts, canna- 13 binoids, isomers, acids, salts, and salts of isomers, whether growing or 14 not, with a delta-9 tetrahydrocannabinol concentration of not more than 15 three-tenths of one percent on a dry weight or per volume basis. 16 22. "Cannabinoid hemp" means any hemp and any product processed or 17 derived from hemp, that is used for human consumption provided that when 18 such product is packaged or offered for retail sale to a consumer, it 19 shall not have a concentration of more than three-tenths of one percent 20 of delta-9 tetrahydrocannabinol or more than an amount of delta-9 21 tetrahydrocannabinol per quantity of cannabinoid hemp product as deter- 22 mined by the executive director in regulation. 23 23. "Cannabinoid hemp processor license" means a license granted by 24 the office to process, extract, pack or manufacture cannabinoid hemp or 25 hemp extract into products, whether in intermediate or final form, used 26 for human consumption. 27 24. "Cannabinoid hemp retailer license" means a license granted by the 28 office to sell cannabinoid hemp, in final approved form, to consumers 29 within the state. 30 25. "Individual dose" means a single measure of adult-use cannabis, 31 medical cannabis or cannabinoid hemp product, as determined by the exec- 32 utive director in regulation. Individual doses may be established 33 through a measure of raw material, a measure of an individual cannabi- 34 noid or compound, or an equivalency thereof. 35 26. "Labor peace agreement" means an agreement between an entity and a 36 labor organization that, at a minimum, protects the state's proprietary 37 interests by prohibiting labor organizations and members from engaging 38 in picketing, work stoppages, boycotts, and any other economic interfer- 39 ence with the registered organization or licensee's business. 40 27. "License" means a license issued pursuant to this chapter. 41 28. "Medical cannabis" means cannabis as defined in subdivision three 42 of this section, intended and approved for a certified medical use, as 43 determined by the executive director in consultation with the commis- 44 sioner of health. 45 30. "Office" or "office of cannabis management" means the New York 46 state office of cannabis management. 47 31. "Permit" means a permit issued pursuant to this chapter. 48 32. "Permittee" means any person to whom a permit has been issued 49 pursuant to this chapter. 50 33. "Person" means individual, institution, corporation, government or 51 governmental subdivision or agency, business trust, estate, trust, part- 52 nership or association, or any other legal entity. 53 34. "Practitioner" means a practitioner who: (i) is authorized to 54 prescribe controlled substances within the state, (ii) by training or 55 experience is qualified to treat a serious condition as defined in 56 subdivision forty-three of this section; and (iii) completes, at a mini-S. 7509--A 62 A. 9509--A 1 mum, a two-hour course as determined by the executive director in regu- 2 lation; provided however, the executive director may revoke a practi- 3 tioner's ability to certify patients for cause. 4 35. "Processing" includes, blending, extracting, infusing, packaging, 5 labeling, branding and otherwise making or preparing adult-use cannabis, 6 medical cannabis and cannibinoid hemp, or such other related processes 7 as determined by the executive director in regulation. Processing shall 8 not include the cultivation of cannabis. 9 36. "Registered organization" means an organization registered under 10 article three of this chapter. 11 37. "Registry application" means an application properly completed and 12 filed with the office of cannabis management by a certified patient 13 under article three of this chapter. 14 38. "Registry identification card" means a document that identifies a 15 certified patient or designated caregiver, as provided under section 16 thirty-two of this chapter. 17 39. "Retail sale" or "sale at retail" means a sale to a consumer or to 18 any person for any purpose other than for resale. 19 40. "Retailer" means any licensed person who sells at retail any 20 approved adult-use cannabis product. 21 41. "Sale" means any transfer, exchange or barter in any manner or by 22 any means whatsoever, and includes and means all sales made by any 23 person, whether principal, proprietor, agent, servant or employee of any 24 cannabis product. 25 42. "To sell" includes to solicit or receive an order for, to keep or 26 expose for sale, and to keep with intent to sell and shall include the 27 transportation or delivery of any cannabis product in the state. 28 43. "Serious condition" means having one of the following severe 29 debilitating or life-threatening conditions: cancer, positive status for 30 human immunodeficiency virus or acquired immune deficiency syndrome, 31 amyotrophic lateral sclerosis, Parkinson's disease, multiple sclerosis, 32 damage to the nervous tissue of the spinal cord with objective neurolog- 33 ical indication of intractable spasticity, epilepsy, inflammatory bowel 34 disease, neuropathies, Huntington's disease, post-traumatic stress 35 disorder, pain that degrades health and functional capability where the 36 use of medical cannabis is an alternative to opioid use, substance use 37 disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthri- 38 tis, autism, any condition authorized as part of a cannabis research 39 license, or any other condition as added by the executive director. 40 44. "Traffic in" includes to cultivate, process, manufacture, distrib- 41 ute or sell any cannabis, adult-use cannabis product or medical cannabis 42 at wholesale or retail. 43 45. "Terminally ill" means an individual has a medical prognosis that 44 the individual's life expectancy is approximately one year or less if 45 the illness runs its normal course. 46 46. "Wholesale sale" or "sale at wholesale" means a sale to any person 47 for purposes of resale. 48 47. "Distributor" means any person who sells at wholesale any adult- 49 use cannabis product, except medical cannabis, the sale of which a 50 license is required under the provisions of this chapter. 51 48. "Warehouse" means and includes a place in which cannabis products 52 are housed or stored. 53 ARTICLE 2 54 NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT 55 Section 7. Establishment of an office of cannabis management.S. 7509--A 63 A. 9509--A 1 8. Establishment of the cannabis control board. 2 9. Functions, powers and duties of the cannabis control board. 3 10. Executive director. 4 11. Functions, powers and duties of the office and executive 5 director. 6 12. Rulemaking authority. 7 13. Deputies; employees. 8 14. Disposition of moneys received for license fees. 9 15. Violations of cannabis laws or regulations; penalties and 10 injunctions. 11 16. Formal hearings; notice and procedure. 12 17. Ethics, transparency and accountability. 13 18. Public health campaign. 14 19. Traffic safety oral fluid or other roadside detection method 15 pilot program. 16 20. Establish uniform policies and best practices. 17 § 7. Establishment of an office of cannabis management. There is here- 18 by established, within the division of alcoholic beverage control, an 19 independent office of cannabis management, which shall have exclusive 20 jurisdiction to exercise the powers and duties provided by this chapter. 21 The office shall exercise its authority by and through a cannabis 22 control board and an executive director. 23 § 8. Establishment of the cannabis control board. 1. The cannabis 24 control board or "board" is created and shall consist of a chairperson 25 with one vote, and four other voting board members, all of whom shall be 26 citizens and residents of this state. 27 2. The governor shall appoint all members of the board, and shall 28 designate one member to serve as chairperson. All members of the board 29 shall serve for a term of three years and shall continue to serve in 30 office until the expiration of their terms and until their successors 31 are appointed and have qualified. The members, other than the chair- 32 person, shall be compensated at a rate of two hundred sixty dollars per 33 day when performing the work of the board, together with an allowance 34 for actual and necessary expenses incurred in the discharge of their 35 duties. No person shall be appointed to or employed by the board if, 36 during the period commencing three years prior to appointment or employ- 37 ment, such person held any direct or indirect interest in, or employment 38 by, any corporation, association or person engaged in regulated activity 39 within the state. 40 3. Prior to appointment or employment, each member, officer or employ- 41 ee of the board shall swear or affirm that he or she possesses no inter- 42 est in any corporation or association holding a license, registration, 43 certificate or permit issued by the board. Thereafter, no member or 44 officer of the board shall hold any direct interest in or be employed by 45 any applicant for or by any corporation, association or person holding a 46 license, registration, certificate or permit issued by the board for a 47 period of four years commencing on the date his or her membership with 48 the board terminates. Further, no employee of the board may acquire any 49 direct or indirect interest in, or accept employment with, any applicant 50 for or any person holding a license, registration, certificate or permit 51 issued by the board for a period of two years commencing at the termi- 52 nation of employment with the board. The board may, by resolution 53 adopted by unanimous vote at a properly noticed public meeting, waive 54 for good cause the pre-employment restrictions enumerated in this subdi- 55 vision for a prospective employee whose duties and responsibilities are 56 not policy-making. Such adopted resolution shall state the reasons forS. 7509--A 64 A. 9509--A 1 waiving the pre-employment conditions for the prospective employee, 2 including a finding that there were no other qualified candidates with 3 the desired experience for the specified position. 4 4. Any member of the board may be removed by the governor for cause 5 after notice and an opportunity to be heard. 6 5. In the event of a vacancy caused by the death, resignation, removal 7 or disability of any board member, the vacancy shall be filled in the 8 same manner as the original appointment; provided that in such instance 9 the governor may appoint a member of the board to serve as chairperson 10 for the remainder of their term. 11 6. A majority of the board members of the authority shall constitute a 12 quorum for the purpose of conducting business, and a majority vote of 13 those present shall be required for action. 14 7. The board shall meet as frequently as its business may require, and 15 at least four times in each year. The board may enact and from time to 16 time amend by-laws in relation to its meetings and the transactions of 17 its business. 18 § 9. Functions, powers and duties of the cannabis control board. The 19 cannabis control board shall have such powers and duties as are set 20 forth in this chapter and shall: 21 1. approve the office's social and economic equity plan pursuant to 22 section eighty-four of this chapter; 23 2. approve the type and number of available licenses issued by the 24 office; 25 3. approve the opening of new license application periods and when new 26 or additional licenses are made available; 27 4. approve the creation of any new type of license; 28 5. approve any price quotas or price controls set by the executive 29 director as provided by this chapter; 30 6. at the request of the executive director, appoint advisory groups 31 or committees necessary to provide assistance to the office to carry out 32 the policy of the state and purpose of this chapter; 33 7. when an administrative decision is appealed by an applicant, regis- 34 tered organization, licensee or permittee, issue a final determination 35 of the office; and 36 8. promulgate any rules and regulations necessary to effectuate this 37 chapter. 38 § 10. Executive director. The office shall exercise its authority, 39 through an executive director. The executive director shall receive an 40 annual salary within the amounts appropriated therefor. 41 § 11. Functions, powers and duties of the executive director. The 42 office of cannabis management, by and through its executive director, 43 shall have the following powers and duties: 44 1. To issue or refuse to issue any registration, license or permit 45 provided for in this chapter. 46 2. To limit the number, scope, and/or availability of registrations, 47 licenses and permits of each class to be issued within the state or any 48 political subdivision thereof, and in connection therewith to prohibit 49 the acceptance of applications for such classes which have been so 50 limited. 51 3. To revoke, cancel or suspend for cause any registration, license, 52 or permit issued under this chapter and/or to impose a civil penalty for 53 cause against any holder of a registration, license, or permit issued 54 pursuant to this chapter or any person engaged in activities without a 55 license or permit for which a license or permit is required by this 56 chapter. Any civil penalty so imposed shall be in addition to and sepa-S. 7509--A 65 A. 9509--A 1 rate and apart from the terms and provisions of the bond required pursu- 2 ant to section thirty-five of this chapter. 3 4. To fix by rule the standards and requirements for the cultivation, 4 processing, packaging, marketing, and sale of medical cannabis, adult- 5 use cannabis and cannabinoid hemp, including but not limited to, the 6 ability to regulate potency, excipients, and the types and forms of 7 products which may be manufactured and/or processed, in order to ensure 8 the health and safety of the public and the use of proper ingredients 9 and methods in the manufacture of all cannabis and cannabinoid hemp to 10 be sold or consumed in the state and to ensure that products are not 11 packaged, marketed, or otherwise trafficked in a way which targets 12 minors or promotes increased use or cannabis use disorders. 13 5. To limit or prohibit, at any time of public emergency and without 14 previous notice or advertisement, the cultivation, processing, distrib- 15 ution or sale of any or all adult-use cannabis products, medical canna- 16 bis or cannabinoid hemp, for and during the period of such emergency. 17 6. To inspect or provide for the inspection at any time of any prem- 18 ises where adult-use cannabis, medical cannabis or cannabinoid hemp is 19 cultivated, processed, stored, distributed or sold including but not 20 limited to compelling the production and review of all relevant business 21 records and financial statements and corporate documents. 22 7. To prescribe forms of applications, criteria of review and method 23 of selection or issuance for registrations, licenses and permits under 24 this chapter and of all reports deemed necessary by the office. 25 8. Intentionally omitted. 26 9. To exercise the powers and perform the duties in relation to the 27 administration of the office as are necessary but not specifically vest- 28 ed by this chapter, including but not limited to budgetary and fiscal 29 matters. 30 10. To develop and establish minimum criteria for certifying employees 31 to work in the cannabis industry, which may include the establishment of 32 a cannabis workers certification program. 33 11. To enter into contracts, memoranda of understanding, and agree- 34 ments as deemed appropriate by the executive director to effectuate the 35 policy and purpose of this chapter. 36 12. To establish and implement a social and economic equity plan, 37 subject to approval of the board, to ensure access to, and participation 38 in, the cannabis industry by social equity and economic empowerment 39 applicants as prescribed in section eighty-four of this chapter. 40 13. If the executive director finds that public health, safety, or 41 welfare imperatively requires emergency action, and incorporates a find- 42 ing to that effect in an order, summary suspension of a license or 43 administrative hold of products and a product recall may be ordered, 44 effective on the date specified in such order or upon service of a 45 certified copy of such order on the licensee, whichever shall be later, 46 pending proceedings for revocation or other action. These proceedings 47 shall be promptly instituted and determined. In addition, the executive 48 director may order the administrative seizure of product, issue a stop 49 order, or take any other action necessary to effectuate and enforce the 50 policy and purpose of this chapter. 51 14. To issue guidance and industry advisories. 52 15. To recommend that the state enter into tribal-state compacts with 53 the New York state Indian nations and tribes, as defined by section two 54 of the Indian law, authorizing such Indian nations or tribes to acquire, 55 possess, manufacture, sell, deliver, transport, distribute or dispense 56 adult-use cannabis and/or medical cannabis.S. 7509--A 66 A. 9509--A 1 16. To coordinate across state agencies and departments in order to 2 research and study any changes in cannabis use and the impact that 3 cannabis use and the regulated cannabis industry may have on access to 4 cannabis products, public health, and public safety. 5 § 12. Rulemaking authority. 1. The board shall perform such acts, 6 prescribe such forms and promulgate such rules, regulations and orders 7 as it may deem necessary or proper to fully effectuate the provisions of 8 this chapter, in accordance with the state administrative procedure act. 9 2. The board shall promulgate any and all necessary rules and regu- 10 lations governing the production, processing, transportation, distrib- 11 ution, marketing, advertising and sale of medical cannabis, adult-use 12 cannabis and cannabinoid hemp, the registration of organizations author- 13 ized to traffic in medical cannabis, the licensing and/or permitting of 14 adult-use cannabis cultivators, processors, cooperatives, distributors, 15 and retail dispensaries, and the licensing of cannabinoid hemp process- 16 ors and retailers, including but not limited to: 17 (a) prescribing forms and establishing application, registration, 18 reinstatement, and renewal fees; 19 (b) the qualifications and selection criteria for registration, 20 licensing, or permitting; 21 (c) the books and records to be created and maintained by registered 22 organizations, licensees, and permittees, including the reports to be 23 made thereon to the office, and inspection of any and all books and 24 records maintained by any registered organization, licensee, or permit- 25 tee and on the premise of any registered organization, licensee, or 26 permittee; 27 (d) methods of producing, processing, and packaging adult-use canna- 28 bis, medical cannabis, cannabis-infused products, and cannabinoid hemp; 29 conditions of sanitation, standards of ingredients, quality, and identi- 30 ty of adult-use cannabis and medical cannabis products cultivated, proc- 31 essed, packaged, or sold by registered organizations and licensees, and 32 standards for the devices used to consume adult-use cannabis, medical 33 cannabis and cannabinoid hemp; 34 (e) security requirements for adult-use cannabis retail dispensaries 35 and premises where cannabis products or medical cannabis are cultivated, 36 produced, processed, or stored, and safety protocols for registered 37 organizations, licensees and their employees; 38 (f) hearing procedures and additional causes for cancellation, revoca- 39 tion, and/or civil penalties against any person registered, licensed, or 40 permitted by the authority; and 41 (g) the circumstances under and manner and process by which an appli- 42 cant, registered organization, licensee, or permittee, may apply to 43 change or alter its previously submitted or approved owners, managers, 44 members, directors, financiers, or interest holders. 45 3. The board shall promulgate rules and regulations to: 46 (a) prevent the distribution of adult-use cannabis to persons under 47 twenty-one years of age including the marketing, packaging and branding 48 of adult-use cannabis; 49 (b) prevent the revenue from the sale of cannabis from going to crimi- 50 nal enterprises, gangs, and cartels; 51 (c) prevent the diversion of adult-use cannabis and medical cannabis 52 from this state to other states; 53 (d) prevent cannabis activity that is legal under state law from being 54 used as a cover or pretext for the trafficking of other illegal drugs or 55 other illegal activity;S. 7509--A 67 A. 9509--A 1 (e) prevent violence and the use of firearms in the cultivation and 2 distribution of cannabis; 3 (f) prevent drugged driving and the exacerbation of other adverse 4 public health consequences associated with the use of cannabis; 5 (g) prevent the growing of cannabis on public lands and the attendant 6 public safety and environmental dangers posed by cannabis production on 7 public lands; 8 (h) prevent the possession and use of adult-use cannabis and medical 9 cannabis on federal property; 10 (i) regulate and restrict the use of cannabis and prohibit the traf- 11 ficking of dangerous cannabis products in order to reduce the rate of 12 cannabis abuse, cannabis dependency, cannabis use disorders, and other 13 adverse public health and safety consequences of cannabis use; 14 (j) educate the public and at-risk populations about responsible 15 cannabis use and the potential dangers of cannabis use; 16 (k) prevent predatory marketing and advertising practices targeted 17 toward at-risk populations such as minors, pregnant or breastfeeding 18 women, and demographics which disproportionately engage in higher rates 19 of cannabis use and display higher rates of cannabis use disorders; 20 (l) notwithstanding subdivision two of this section, revoke or refuse 21 to issue any class or type of license, permit, or registration if he or 22 she determines that failing to do so would conflict with any federal law 23 or guidance pertaining to regulatory, enforcement and other systems that 24 states, businesses, or other institutions may implement to mitigate the 25 potential for federal intervention or enforcement against legalized 26 adult-use cannabis and medical cannabis programs or businesses; 27 (m) notwithstanding any other section of state law, adopt rules and 28 regulations based on federal guidance provided those rules and regu- 29 lations are designed to comply with federal guidance and mitigate feder- 30 al enforcement against the registrations, licenses, or permits issued 31 under this chapter, or the cannabis industry as a whole. This may 32 include regulations which permit the sharing of licensee, registrant, or 33 permit-holder information with designated banking or financial insti- 34 tutions; and 35 (n) establish application, licensing, and permitting processes which 36 ensure all material owners and interest holders are disclosed and that 37 officials or other individuals with control over the approval of an 38 application, permit, or license do not themselves have any interest in 39 an application, license, or permit. 40 4. The board, in consultation with the department of agriculture and 41 markets and the department of environmental conservation, shall promul- 42 gate necessary rules and regulations governing the safe production of 43 adult-use cannabis and medical cannabis, including but not limited to 44 environmental and energy standards and restrictions on the use of pesti- 45 cides. 46 § 13. Deputies; employees. 1. The executive director shall appoint a 47 deputy director for health and safety who shall be a duly licensed 48 physician within the state and who shall oversee the medical cannabis 49 program and all clinical aspects of the office. The executive director 50 shall also appoint a deputy director for social and economic equity who 51 shall oversee the social and economic equity plan. The executive direc- 52 tor may appoint such other deputies as he or she deems necessary to 53 fulfill the responsibilities of the office. 54 2. The executive director may appoint and remove from time to time, in 55 accordance with law and any applicable rules of the state civil service 56 commission, such additional employees, under such titles as the execu-S. 7509--A 68 A. 9509--A 1 tive director may assign, as the executive director may deem necessary 2 for the efficient administration of the office. They shall perform such 3 duties as the executive director shall assign to them. The compensation 4 of such employees shall be within the amounts appropriated therefor. 5 3. Investigators employed by the office shall be deemed to be peace 6 officers for the purpose of enforcing the provisions of this chapter or 7 judgments or orders obtained for violation thereof, with all the powers 8 set forth in section 2.20 of the criminal procedure law. 9 § 14. Disposition of moneys received for license fees. The office 10 shall establish a schedule of application, licensing, and renewal fees, 11 based upon the cost of enforcing this chapter which may vary based on 12 the nature, size, class, or scope of the cannabis business being 13 licensed or the classification of the applicant, as follows: 14 1. The office shall charge each registered organization, licensee and 15 permittee a registration, licensure or permit fee, and renewal fee, as 16 applicable. The fees may vary depending upon the nature, size, class or 17 scope of the different registration, licensure and permit activities, or 18 the classification of the applicant. 19 2. The total fees assessed pursuant to this chapter may be set at an 20 amount that will generate sufficient total revenue to fully cover the 21 total costs of administering this chapter. 22 3. The office shall deposit all fees collected in the New York state 23 cannabis revenue fund established pursuant to section ninety-nine-hh of 24 the state finance law. 25 § 15. Violations of cannabis laws or regulations; penalties and 26 injunctions. 1. A person who willfully violates any provision of this 27 chapter, or any regulation lawfully made or established by any public 28 officer under authority of this chapter, the punishment for violating 29 which is not otherwise prescribed by this chapter or any other law, is 30 punishable by a fine not exceeding five thousand dollars per violation, 31 per day. 32 2. Any person who violates, disobeys or disregards any term or 33 provision of this chapter or of any lawful notice, order or regulation 34 pursuant thereto for which a civil penalty is not otherwise expressly 35 prescribed by law, shall be liable to the people of the state for a 36 civil penalty of not to exceed five thousand dollars per violation, per 37 day. 38 3. The penalty provided for in subdivision one of this section may be 39 recovered by an action brought by the executive director in any court of 40 competent jurisdiction. 41 4. Nothing in this section shall be construed to alter or repeal any 42 existing provision of law declaring such violations to be misdemeanors 43 or felonies or prescribing the penalty therefor. 44 5. Such civil penalty may be released or compromised by the executive 45 director before the matter has been referred to the attorney general, 46 and where such matter has been referred to the attorney general, any 47 such penalty may be released or compromised and any action commenced to 48 recover the same may be settled and discontinued by the attorney general 49 with the consent of the executive director. 50 6. It shall be the duty of the attorney general upon the request of 51 the executive director to bring an action for an injunction against any 52 person who violates, disobeys or disregards any term or provision of 53 this chapter or of any lawful notice, order or regulation pursuant ther- 54 eto; provided, however, that the executive director shall furnish the 55 attorney general with such material, evidentiary matter or proof as mayS. 7509--A 69 A. 9509--A 1 be requested by the attorney general for the prosecution of such an 2 action. 3 7. It is the purpose of this section to provide additional and cumula- 4 tive remedies, and nothing herein contained shall abridge or alter 5 rights of action or remedies now or hereafter existing, nor shall any 6 provision of this section, nor any action done by virtue of this 7 section, be construed as estopping the state, persons or municipalities 8 in the exercising of their respective rights. 9 § 16. Formal hearings; notice and procedure. 1. The board, or any 10 person designated by the board for this purpose, may issue subpoenas and 11 administer oaths in connection with any hearing or investigation under 12 or pursuant to this chapter, and it shall be the duty of the board and 13 any persons designated by the board for such purpose to issue subpoenas 14 at the request of and upon behalf of the respondent. 15 2. The board and those designated by the board shall not be bound by 16 the laws of evidence in the conduct of hearing proceedings, but the 17 determination shall be founded upon substantial evidence to sustain it. 18 3. Notice of hearing shall be served at least fifteen days prior to 19 the date of the hearing, provided that, whenever because of danger to 20 the public health, safety or welfare it appears prejudicial to the 21 interests of the people of the state to delay action for fifteen days, 22 the executive director may serve the respondent with an order requiring 23 certain action or the cessation of certain activities immediately or 24 within a specified period of less than fifteen days. 25 4. Service of notice of hearing or order shall be made by personal 26 service or by registered or certified mail. Where service, whether by 27 personal service or by registered or certified mail, is made upon an 28 incompetent, partnership, or corporation, it shall be made upon the 29 person or persons designated to receive personal service by article 30 three of the civil practice law and rules. 31 5. At a hearing, the respondent may appear personally, shall have the 32 right of counsel, and may cross-examine witnesses against him or her and 33 produce evidence and witnesses in his or her behalf. 34 6. Following a hearing, the board or its designee may make appropriate 35 determinations and issue a final order in accordance therewith. 36 7. The board may adopt, amend and repeal administrative rules and 37 regulations governing the procedures to be followed with respect to 38 hearings, such rules to be consistent with the policy and purpose of 39 this chapter and the effective and fair enforcement of its provisions. 40 8. The provisions of this section shall be applicable to all hearings 41 held pursuant to this chapter, except where other provisions of this 42 chapter applicable thereto are inconsistent therewith, in which event 43 such other provisions shall apply. 44 § 17. Ethics, transparency and accountability. No member of the 45 office or any officer, deputy, assistant, inspector or employee thereof 46 shall have any interest, direct or indirect, either proprietary or by 47 means of any loan, mortgage or lien, or in any other manner, in or on 48 any premises where cannabis, medical cannabis or hemp is cultivated, 49 processed, distributed or sold; nor shall he or she have any interest, 50 direct or indirect, in any business wholly or partially devoted to the 51 cultivation, processing, distribution, sale, transportation, marketing, 52 or storage of adult-use cannabis, medical cannabis or cannabinoid hemp, 53 or own any stock in any corporation which has any interest, proprietary 54 or otherwise, direct or indirect, in any premises where adult-use canna- 55 bis, medical cannabis or cannabinoid hemp is cultivated, processed, 56 distributed or sold, or in any business wholly or partially devoted toS. 7509--A 70 A. 9509--A 1 the cultivation, processing, distribution, sale, transportation or stor- 2 age of adult-use cannabis, medical cannabis or cannabinoid hemp, or 3 receive any commission or profit whatsoever, direct or indirect, from 4 any person applying for, receiving, managing or operating any license or 5 permit provided for in this chapter, or hold any other elected or 6 appointed public office in the state or in any political subdivision to 7 which a registered organization, licensee, permittee or applicant would 8 appear. Anyone who violates any of the provisions of this section shall 9 be removed or shall divest him or herself of such direct or indirect 10 interests. 11 § 18. Public health campaign. The office, in consultation with the 12 commissioners of the department of health, office of alcoholism and 13 substance abuse services and office of mental health, shall develop and 14 implement a comprehensive public health monitoring, surveillance and 15 education campaign regarding the legalization of adult-use cannabis and 16 the impact of cannabis use on public health and safety. 17 § 19. Traffic safety oral fluid or other roadside detection method 18 pilot program. The office, in consultation with the commissioner of the 19 department of motor vehicles and the superintendent of the state police, 20 shall develop and implement a workgroup together with other states to 21 outline goals and standard operating procedures for a statewide or 22 regional oral fluid or other roadside detection pilot program. The work- 23 group may include, but not be limited to, representatives from district 24 attorney offices, local and county police departments, and other rele- 25 vant public safety experts. 26 § 20. Establish uniform policies and best practices. To engage in 27 activities with other states, territories, or jurisdictions in order to 28 coordinate and establish, uniform policies and best practices in canna- 29 bis regulation. These activities shall prioritize coordination with 30 neighboring and regional states, and may include, but not be limited to 31 establish working groups related to laboratory testing, products safety, 32 taxation, road safety, and any other issues identified by the executive 33 director. The executive director may enter into any contracts, or memo- 34 randa of understanding necessary to effectuate this provision. 35 ARTICLE 3 36 MEDICAL CANNABIS 37 Section 30. Certification of patients. 38 31. Lawful medical use. 39 32. Registry identification cards. 40 33. Registration as a designated caregiver facility. 41 34. Registered organizations. 42 35. Registering of registered organizations. 43 36. Intentionally omitted. 44 37. Reports of registered organizations. 45 38. Evaluation; research programs; report by office. 46 39. Cannabis research license. 47 40. Registered organizations and adult-use cannabis. 48 41. Home cultivation of medical cannabis. 49 42. Relation to other laws. 50 43. Protections for the medical use of cannabis. 51 44. Regulations. 52 45. Suspend; terminate. 53 46. Pricing. 54 47. Severability.S. 7509--A 71 A. 9509--A 1 § 30. Certification of patients. 1. A patient certification may only 2 be issued if: 3 (a) the patient has a serious condition, which shall be specified in 4 the patient's health care record; 5 (b) the practitioner by training or experience is qualified to treat 6 the serious condition; 7 (c) the patient is under the practitioner's continuing care for the 8 serious condition; and 9 (d) in the practitioner's professional opinion and review of past 10 treatments, the patient is likely to receive therapeutic or palliative 11 benefit from the primary or adjunctive treatment with medical use of 12 cannabis for the serious condition. 13 2. The certification shall include: (a) the name, date of birth and 14 address of the patient; (b) a statement that the patient has a serious 15 condition and the patient is under the practitioner's care for the seri- 16 ous condition; (c) a statement attesting that all requirements of subdi- 17 vision one of this section have been satisfied; (d) the date; and (e) 18 the name, address, telephone number, and the signature of the certifying 19 practitioner. The executive director may require by regulation that the 20 certification shall be on a form provided by the office. The practition- 21 er may state in the certification that, in the practitioner's profes- 22 sional opinion, the patient would benefit from medical cannabis only 23 until a specified date. The practitioner may state in the certification 24 that, in the practitioner's professional opinion, the patient is termi- 25 nally ill and that the certification shall not expire until the patient 26 dies. 27 3. In making a certification, the practitioner may consider any 28 approved form of medical cannabis the patient should consume, including 29 the method of consumption and any particular strain, variety, and quan- 30 tity or percentage of cannabis or particular active ingredient, and 31 appropriate dosage. The practitioner may state in the certification any 32 recommendation or limitation the practitioner makes, in his or her 33 professional opinion, concerning the appropriate form or forms of 34 medical cannabis and dosage. 35 4. Every practitioner shall consult the prescription monitoring 36 program registry prior to making or issuing a certification, for the 37 purpose of reviewing a patient's controlled substance history. For 38 purposes of this section, a practitioner may authorize a designee to 39 consult the prescription monitoring program registry on his or her 40 behalf, provided that such designation is in accordance with section 41 thirty-three hundred forty-three-a of the public health law. 42 5. The practitioner shall give the certification to the certified 43 patient, and place a copy in the patient's health care record. 44 6. No practitioner shall issue a certification under this section for 45 himself or herself. 46 7. A registry identification card based on a certification shall 47 expire one year after the date the certification is signed by the prac- 48 titioner. 49 8. (a) If the practitioner states in the certification that, in the 50 practitioner's professional opinion, the patient would benefit from 51 medical cannabis only until a specified earlier date, then the registry 52 identification card shall expire on that date; (b) if the practitioner 53 states in the certification that in the practitioner's professional 54 opinion the patient is terminally ill and that the certification shall 55 not expire until the patient dies, then the registry identification card 56 shall state that the patient is terminally ill and that the registrationS. 7509--A 72 A. 9509--A 1 card shall not expire until the patient dies; (c) if the practitioner 2 re-issues the certification to terminate the certification on an earlier 3 date, then the registry identification card shall expire on that date 4 and shall be promptly destroyed by the certified patient; (d) if the 5 certification so provides, the registry identification card shall state 6 any recommendation or limitation by the practitioner as to the form or 7 forms of medical cannabis or dosage for the certified patient; and (e) 8 the executive director shall make regulations to implement this subdivi- 9 sion. 10 9. A practitioner who offers patient certification shall not have any 11 business relationship with, or own any stock in any corporation which 12 has any interest, proprietary or otherwise, direct or indirect, in any 13 registered organization, or other business or premises where medical 14 cannabis is cultivated, processed, distributed or sold. This provision 15 shall not be construed to prohibit a practitioner who offers patient 16 certification from providing their medical expertise to, or engaging in 17 medical cannabis research with, a registered organization or a licensee 18 that traffics in medical cannabis provided that the practitioner is not 19 compensated for or offered any consideration for these educational or 20 research activities. 21 § 31. Lawful medical use. The possession, acquisition, use, delivery, 22 transfer, transportation, or administration of medical cannabis by a 23 certified patient, designated caregiver or designated caregiver facili- 24 ty, for certified medical use, shall be lawful under this article 25 provided that: 26 (a) the cannabis that may be possessed by a certified patient shall 27 not exceed quantities determined by the executive director in regu- 28 lation; 29 (b) the cannabis that may be possessed by designated caregivers does 30 not exceed the quantities determined by the executive director under 31 paragraph (a) of this subdivision for any certified patient for whom the 32 caregiver is issued a valid registry identification card; 33 (c) the cannabis that may be possessed by designated caregiver facili- 34 ties does not exceed the quantities determined by the executive director 35 under paragraph (a) of this subdivision for each certified patient under 36 the care or treatment of the facility; 37 (d) the form or forms of medical cannabis that may be possessed by the 38 certified patient, designated caregiver or designated caregiver facility 39 pursuant to a certification shall be in compliance with any recommenda- 40 tion or limitation by the practitioner as to the form or forms of 41 medical cannabis or dosage for the certified patient in the certif- 42 ication and consistent with any guidance, limitation, and regulation 43 issued by the executive director; and 44 (e) the medical cannabis shall be kept in the original package in 45 which it was dispensed under this article, except for the portion 46 removed for immediate consumption for certified medical use by the 47 certified patient. 48 § 32. Registry identification cards. 1. Upon approval of the certif- 49 ication, the office shall issue registry identification cards for certi- 50 fied patients and designated caregivers. A registry identification card 51 shall expire as provided in this article or as otherwise provided in 52 this section. The office shall begin issuing registry identification 53 cards as soon as practicable after the certifications required by this 54 chapter are granted. The office may specify a form for a registry appli- 55 cation, in which case the office shall provide the form on request,S. 7509--A 73 A. 9509--A 1 reproductions of the form may be used, and the form shall be available 2 for downloading from the office's website. 3 2. To obtain, amend or renew a registry identification card, a certi- 4 fied patient or designated caregiver shall file a registry application 5 with the office, unless otherwise exempted by the executive director in 6 regulation. The registry application or renewal application shall 7 include such information as prescribed by the office which shall include 8 but not be limited to: 9 (a) in the case of a certified patient: 10 (i) the patient's certification, a new written certification shall be 11 provided with a renewal application if required by the office; 12 (ii) the name, address, and date of birth of the patient; 13 (iii) the date of the certification; 14 (iv) if the patient has a registry identification card based on a 15 current valid certification, the registry identification number and 16 expiration date of that registry identification card; 17 (v) the specified date until which the patient would benefit from 18 medical cannabis, if the certification states such a date; 19 (vi) the name, address, and telephone number of the certifying practi- 20 tioner; 21 (vii) any recommendation or limitation by the practitioner as to the 22 form or forms of medical cannabis or dosage for the certified patient; 23 (viii) if the certified patient applies to designate a designated 24 caregiver, the name, address, and date of birth of the designated care- 25 giver, and other individual identifying information required by the 26 office; and 27 (ix) other individual identifying information required by the office; 28 (b) in the case of a designated caregiver: 29 (i) the name, address, and date of birth of the designated caregiver; 30 (ii) if the designated caregiver has a registry identification card, 31 the registry identification number and expiration date of that registry 32 identification card; and 33 (iii) other individual identifying information required by the office; 34 (c) a statement that a false statement made in the application is 35 punishable under section 210.45 of the penal law; 36 (d) the date of the application and the signature of the certified 37 patient or designated caregiver, as the case may be; 38 (e) any other requirements determined by the executive director. 39 3. Where a certified patient is under the age of eighteen or otherwise 40 incapable of consent: 41 (a) The application for a registry identification card shall be made 42 by an appropriate person over eighteen years of age. The application 43 shall state facts demonstrating that the person is appropriate. 44 (b) The designated caregiver shall be: (i) a parent or legal guardian 45 of the certified patient; (ii) a person designated by a parent or legal 46 guardian; (iii) a designated caregiver facility; or (iv) an appropriate 47 person approved by the office upon a sufficient showing that no parent 48 or legal guardian is appropriate or available. 49 4. No person may be a designated caregiver if the person is under 50 twenty-one years of age unless a sufficient showing is made to the 51 office that the person should be permitted to serve as a designated 52 caregiver. The requirements for such a showing shall be determined by 53 the executive director. 54 5. No person may be a designated caregiver for more than one certified 55 patient at one time, unless approved by the office. The office may allow 56 a designated caregiver to serve more than one patient in cases whereS. 7509--A 74 A. 9509--A 1 additional designating patients are immediate family members, in the 2 immediate and continuous care of the caregiver, or satisfy other eligi- 3 bility requirements determined by the executive director in regulation. 4 6. If a certified patient wishes to change or terminate his or her 5 designated caregiver, for whatever reason, the certified patient shall 6 notify the office as soon as practicable. The office shall issue a 7 notification to the designated caregiver that their registration card is 8 invalid and must be promptly destroyed. The newly designated caregiver 9 must comply with all requirements set forth in this section. 10 7. If the certification so provides, the registry identification card 11 shall contain any recommendation or limitation by the practitioner as to 12 the form or forms of medical cannabis or dosage for the certified 13 patient. 14 8. The office shall issue separate registry identification cards for 15 certified patients and designated caregivers as soon as reasonably prac- 16 ticable after receiving and approving a complete application under this 17 section, unless it determines that the application is incomplete, factu- 18 ally inaccurate, or fails to satisfy any applicable regulation, in which 19 case it shall promptly notify the applicant. 20 9. If the application of a certified patient designates an individual 21 as a designated caregiver who is not authorized to be a designated care- 22 giver, that portion of the application shall be denied by the office but 23 that shall not affect the approval of the balance of the application. 24 10. A registry identification card shall: 25 (a) contain the name of the certified patient or the designated care- 26 giver as the case may be; 27 (b) contain the date of issuance and expiration date, as applicable, 28 of the registry identification card; 29 (c) contain a registry identification number for the certified patient 30 or designated caregiver, as the case may be and a registry identifica- 31 tion number; 32 (d) contain a photograph of the individual to whom the registry iden- 33 tification card is being issued, which shall be obtained by the office 34 in a manner specified by the executive director in regulations; 35 provided, however, that if the office requires certified patients to 36 submit photographs for this purpose, there shall be a reasonable accom- 37 modation of certified patients who are confined to their homes due to 38 their medical conditions and may therefore have difficulty procuring 39 photographs; 40 (e) be a secure document as determined by the office; 41 (f) plainly state any recommendation or limitation by the practitioner 42 as to the form or forms of medical cannabis or dosage for the certified 43 patient; and 44 (g) contain any other requirements determined by the executive direc- 45 tor. 46 11. A certified patient or designated caregiver who has been issued a 47 registry identification card shall notify the office of any change in 48 his or her name or address or, with respect to the patient, if he or she 49 ceases to have the serious condition noted on the certification within 50 ten days of such change. The certified patient's or designated 51 caregiver's registry identification card shall be deemed invalid and 52 shall be promptly destroyed. 53 12. If a certified patient or designated caregiver loses his or her 54 registry identification card, he or she shall notify the office within 55 ten days of losing the card. The office shall issue a new registry iden- 56 tification card as soon as practicable, which may contain a new registryS. 7509--A 75 A. 9509--A 1 identification number, to the certified patient or designated caregiver, 2 as the case may be. 3 13. The office shall maintain a confidential list of the persons to 4 whom it has issued registry identification cards. Individual identifying 5 information obtained by the office under this article shall be confiden- 6 tial and exempt from disclosure under article six of the public officers 7 law. Notwithstanding this subdivision, the office may notify any appro- 8 priate law enforcement agency of information relating to any violation 9 or suspected violation of this article. 10 14. The office shall verify to law enforcement personnel in an appro- 11 priate case whether a registry identification card is valid. 12 15. If a certified patient or designated caregiver willfully violates 13 any provision of this article or regulations promulgated hereunder as 14 determined by the executive director, his or her certification and 15 registry identification card may be suspended or revoked. This is in 16 addition to any other penalty that may apply. 17 § 33. Registration as a designated caregiver facility. 1. To obtain, 18 amend or renew a registration as a designated caregiver facility, the 19 facility shall file a registry application with the office. The registry 20 application or renewal application shall include: 21 (a) the facility's full name and address; 22 (b) operating certificate or license number where appropriate; 23 (c) name, title, and signature of an authorized facility represen- 24 tative; 25 (d) a statement that the facility agrees to secure and ensure proper 26 handling of all medical cannabis products; 27 (e) an acknowledgement that a false statement in the application is 28 punishable under section 210.45 of the penal law; and 29 (f) any other information that may be required by the executive direc- 30 tor. 31 2. Prior to issuing or renewing a designated caregiver facility regis- 32 tration, the office may verify the information submitted by the appli- 33 cant. The applicant shall provide, at the office's request, such infor- 34 mation and documentation, including any consents or authorizations that 35 may be necessary for the office to verify the information. 36 3. The office shall approve, deny or reject an initial or renewal 37 application. If the application is approved within the 30-day period, 38 the office shall issue a registration as soon as is reasonably practica- 39 ble. 40 4. Registrations issued under this section shall remain valid for two 41 years from the date of issuance. 42 § 34. Registered organizations. 1. A registered organization shall be 43 a for-profit business entity or not-for-profit corporation organized for 44 the purpose of acquiring, possessing, manufacturing, selling, deliver- 45 ing, transporting, distributing or dispensing cannabis for certified 46 medical use, in accordance with minimum operating and recordkeeping 47 requirements determined by the executive director in regulation. 48 2. The acquiring, possession, manufacture, testing, sale, delivery, 49 transporting, distributing or dispensing of medical cannabis by a regis- 50 tered organization under this article in accordance with its registra- 51 tion under this article or a renewal thereof shall be lawful under this 52 chapter. 53 3. Each registered organization shall contract with an independent 54 laboratory permitted by the office to test the medical cannabis produced 55 by the registered organization. The executive director, in consultation 56 with the commissioner of health, shall approve the laboratory used byS. 7509--A 76 A. 9509--A 1 the registered organization, including but not limited to sampling and 2 testing protocols and standards used by the laboratory, and may require 3 that the registered organization use a particular testing laboratory. 4 4. (a) A registered organization may lawfully, in good faith, sell, 5 deliver, distribute or dispense medical cannabis to a certified patient 6 or designated caregiver upon presentation to the registered organization 7 of valid identification for that certified patient or designated care- 8 giver. When presented with the registry identification card, the regis- 9 tered organization shall provide to the certified patient or designated 10 caregiver a receipt, which shall state: the name, address, and registry 11 identification number of the registered organization; the name and 12 registry identification number of the certified patient and the desig- 13 nated caregiver, if any; the date the cannabis was sold; any recommenda- 14 tion or limitation by the practitioner as to the form or forms of 15 medical cannabis or dosage for the certified patient; and the form and 16 the quantity of medical cannabis sold. The registered organization shall 17 retain a copy of the registry identification card and the receipt for 18 six years, and shall make such records available to the office upon 19 demand. 20 (b) The proprietor of a registered organization shall file or cause to 21 be filed any receipt and certification information with the office by 22 electronic means on a real-time basis as the executive director may 23 require. When filing receipt and certification information electron- 24 ically pursuant to this paragraph, the proprietor of the registered 25 organization shall dispose of any electronically recorded prescription 26 information in such manner as the executive director shall by regulation 27 require. 28 5. (a) No registered organization may sell, deliver, distribute or 29 dispense to any certified patient or designated caregiver a quantity of 30 medical cannabis larger than that individual would be allowed to possess 31 as set out in regulation by the executive director. 32 (b) When dispensing medical cannabis to a certified patient or desig- 33 nated caregiver, the registered organization: (i) shall not dispense an 34 amount greater than an amount established by the executive director in 35 regulation; and (ii) shall verify the information in subparagraph (i) of 36 this paragraph by consulting the prescription monitoring program regis- 37 try under this article. 38 (c) Medical cannabis dispensed to a certified patient or designated 39 caregiver by a registered organization shall conform to any recommenda- 40 tion or limitation by the practitioner as to the form or forms of 41 medical cannabis or dosage for the certified patient, and any medical 42 cannabis product or form limitations or restrictions determined by the 43 executive director in regulation. 44 6. When a registered organization sells, delivers, distributes or 45 dispenses medical cannabis to a certified patient or designated caregiv- 46 er, it shall provide to that individual a safety insert, which may be 47 developed by the registered organization and shall include, but not be 48 limited to, information on: 49 (a) methods for administering medical cannabis in individual doses, 50 (b) any potential dangers stemming from the use of medical cannabis, 51 (c) how to recognize what may be problematic usage of medical cannabis 52 and obtain appropriate services or treatment for problematic usage, and 53 (d) other information as determined by the executive director. 54 7. Registered organizations shall not be managed by or employ anyone 55 who has been convicted of any felony other than for the sale or 56 possession of drugs, narcotics, or controlled substances, and providedS. 7509--A 77 A. 9509--A 1 that this subdivision only applies to (a) managers or employees who come 2 into contact with or handle medical cannabis, and (b) a conviction less 3 than ten years, not counting time spent in incarceration, prior to being 4 employed, for which the person has not received a certificate of relief 5 from disabilities, a certificate of good conduct under article twenty- 6 three of the correction law, or an executive pardon. 7 8. Manufacturing of medical cannabis by a registered organization 8 shall only be done in an indoor, enclosed, secure facility located in 9 New York state, which may include a greenhouse. The executive director 10 shall promulgate regulations establishing requirements for such facili- 11 ties. 12 9. Dispensing of medical cannabis by a registered organization shall 13 only be done in an indoor, enclosed, secure facility located in New York 14 state, which may include a greenhouse. The executive director shall 15 promulgate regulations establishing requirements for such facilities. 16 10. A registered organization shall determine the quality, safety, and 17 clinical strength of medical cannabis manufactured or dispensed by the 18 registered organization, and shall provide documentation of that quali- 19 ty, safety and clinical strength to the office and to any person or 20 entity to which the medical cannabis is sold or dispensed. 21 11. A registered organization shall be deemed to be a "health care 22 provider" for the purposes of article two-D of article two of the public 23 health law. 24 12. Medical cannabis shall be dispensed to a certified patient or 25 designated caregiver in a sealed and properly labeled package as deter- 26 mined by the executive director. The labeling shall contain: (a) the 27 information required to be included in the receipt provided to the 28 certified patient or designated caregiver by the registered organiza- 29 tion; (b) the packaging date; (c) any applicable date by which the 30 medical cannabis should be used; (d) a warning stating, "This product is 31 for medicinal use only. Women should not consume during pregnancy or 32 while breastfeeding except on the advice of the certifying health care 33 practitioner, and in the case of breastfeeding mothers, including the 34 infant's pediatrician. This product might impair the ability to drive. 35 Keep out of reach of children."; (e) the amount of individual doses 36 contained within; (f) a warning that the medical cannabis must be kept 37 in the original container in which it was dispensed; and (g) any other 38 information required by the office. 39 13. The board is authorized to make rules and regulations restricting 40 the advertising and marketing of medical cannabis. 41 14. The board is authorized to make rules and regulations regulating 42 the packaging, labeling, form and method of administration or ingestion, 43 branding and marketing of medical cannabis products to prohibit acci- 44 dental or overconsumption. 45 § 35. Registering of registered organizations. 1. Application for 46 initial registration. (a) An applicant for registration as a registered 47 organization under section thirty-four of this article shall include 48 such information prepared in such manner and detail as the executive 49 director may require, including but not limited to: 50 (i) a description of the activities in which it intends to engage as a 51 registered organization; 52 (ii) that the applicant: 53 (A) is of good moral character; 54 (B) possesses or has the right to use sufficient land, buildings, and 55 other premises, which shall be specified in the application, and equip-S. 7509--A 78 A. 9509--A 1 ment to properly carry on the activity described in the application, or 2 in the alternative posts a bond of not less than two million dollars; 3 (C) is able to maintain effective security and control to prevent 4 diversion, abuse, and other illegal conduct relating to the cannabis; 5 and 6 (D) is able to comply with all applicable state laws and regulations 7 relating to the activities in which it intends to engage under the 8 registration; 9 (iii) that the applicant has entered into a labor peace agreement with 10 a bona fide labor organization that is actively engaged in representing 11 or attempting to represent the applicant's employees and the maintenance 12 of such a labor peace agreement shall be an ongoing material condition 13 of certification; 14 (iv) the applicant's status as a for-profit business entity or not- 15 for-profit corporation; and 16 (v) the application shall include the name, residence address and 17 title of each of the officers and directors and the name and residence 18 address of any person or entity that is a member of the applicant 19 including those of the applicant's parent companies, subsidiaries or 20 affiliates. Each such person, if an individual, or lawful represen- 21 tative if a legal entity, shall submit an affidavit with the application 22 setting forth: 23 (A) any position of management, interest, or ownership during the 24 preceding ten years of a ten per centum or greater interest in any other 25 cannabis business or applicant, located in or outside of this state, 26 manufacturing or distributing drugs, including indirect interest manage- 27 ment or ownership of parent companies, subsidiaries, or affiliates; 28 (B) whether such person or any such business has had a cannabis busi- 29 ness application denied or withdrawn or been convicted of a felony or 30 had a registration or license subject to administrative action, includ- 31 ing but not limited to violations, penalties, or consent agreements, or 32 had any registration or license suspended or revoked in any administra- 33 tive or judicial proceeding; and 34 (C) such other information as the executive director may reasonably 35 require to enforce the licensing restrictions of this chapter. 36 2. The applicant shall be under a continuing duty to seek approval 37 from the office prior to any material changes in ownership, management, 38 or financial or managerial interest, or prior to substantive operational 39 changes, and to disclose any change in facts or circumstances reflected 40 in the application or any newly discovered or occurring fact or circum- 41 stance which is required to be included in the application. 42 3. (a) The board may grant a registration or approve a requested 43 amendment to a registration under this section if he or she is satisfied 44 that: 45 (i) the applicant will be able to maintain effective control against 46 diversion of cannabis; 47 (ii) the applicant will be able to comply with all applicable state 48 laws and regulations; 49 (iii) the applicant and its officers are ready, willing and able to 50 properly carry on the manufacturing or distributing activity for which a 51 registration is sought; 52 (iv) the applicant possesses or has the right to use sufficient land, 53 buildings and equipment to properly carry on the activity described in 54 the application; 55 (v) it is in the public interest that such registration be granted, 56 including but not limited to:S. 7509--A 79 A. 9509--A 1 (A) whether the number of registered organizations in an area will be 2 adequate or excessive to reasonably serve the area's patient need and 3 demand; 4 (B) whether the registered organization is a minority and/or woman 5 owned business enterprise or a service-disabled veteran-owned business; 6 (C) whether the registered organization provides education and 7 outreach to practitioners; 8 (D) whether the registered organization promotes the research and 9 development of medical cannabis and patient outreach; and 10 (E) the affordability medical cannabis products offered by the regis- 11 tered organization; 12 (vi) the applicant and its managing officers and interest holders are 13 of good moral character and have demonstrated a record and history of 14 compliance with cannabis laws and regulations in the jurisdictions where 15 they operate or have operated cannabis licenses and/or registrations; 16 (vii) the applicant has entered into a labor peace agreement with a 17 bona fide labor organization that is actively engaged in representing or 18 attempting to represent the applicant's employees; and the maintenance 19 of such a labor peace agreement shall be an ongoing material condition 20 of registration; and 21 (viii) the applicant satisfies any other conditions as determined by 22 the executive director. 23 (b) If the executive director is not satisfied that the applicant 24 should be issued a registration or granted approval to amend an existing 25 registration, he or she shall notify the applicant in writing of those 26 factors upon which the denial is based. Within thirty days of the 27 receipt of such notification, the applicant may submit a written request 28 to the executive director to appeal the decision. 29 (c) The fee for a registration under this section shall be an amount 30 determined by the office in regulations. 31 (d) Registrations issued under this section shall be effective only 32 for the registered organization and shall specify: 33 (i) the name and address of the registered organization; 34 (ii) which activities of a registered organization are permitted by 35 the registration; 36 (iii) the land, buildings and facilities that may be used for the 37 permitted activities of the registered organization; and 38 (iv) such other information as the executive director shall reasonably 39 provide to assure compliance with this article. 40 (e) Upon application of a registered organization, a registration may 41 be amended to allow the registered organization to relocate within the 42 state or to add or delete permitted registered organization activities 43 or facilities. The fee for such amendment request shall be determined by 44 the executive director. 45 4. A registration issued under this section shall be valid for two 46 years from the date of issue. 47 5. (a) An application for the renewal of any registration issued 48 under this section shall be filed with the office not more than six 49 months nor less than four months prior to the expiration thereof. A 50 late-filed application for the renewal of a registration may, in the 51 discretion of the executive director, be treated as an application for 52 an initial license. 53 (b) The application for renewal shall include such information 54 prepared in the manner and detail as the executive director may require, 55 including but not limited to:S. 7509--A 80 A. 9509--A 1 (i) any material change in the circumstances or factors listed in 2 subdivision one of this section; and 3 (ii) every known charge or investigation, pending or concluded during 4 the period of the registration, by any governmental or administrative 5 agency with respect to: 6 (A) each incident or alleged incident involving the theft, loss, or 7 possible diversion of cannabis manufactured or distributed by the appli- 8 cant; and 9 (B) compliance by the applicant with the laws of any state or territo- 10 ry with respect to any substance listed in section thirty-three hundred 11 six of the public health law. 12 (c) An applicant for renewal shall be under a continuing duty to 13 report to the office any change in facts or circumstances reflected in 14 the application or any newly discovered or occurring fact or circum- 15 stance which is required to be included in the application, and to seek 16 approval prior to any material change in ownership interest, management 17 or operations. 18 (d) If the executive director is not satisfied that the registered 19 organization applicant is entitled to a renewal of the registration, he 20 or she shall within a reasonably practicable time as determined by the 21 executive director, serve upon the registered organization or its attor- 22 ney of record in person or by registered or certified mail an order 23 directing the registered organization to show cause why its application 24 for renewal should not be denied. The order shall specify in detail the 25 respects in which the applicant has not satisfied the executive director 26 that the registration should be renewed. 27 6. (a) The executive director shall recommend the board renew a regis- 28 tration unless he or she determines and finds that: 29 (i) the applicant is unlikely to maintain or be able to maintain 30 effective control against diversion; 31 (ii) the applicant is unlikely to comply with all state laws and regu- 32 lations applicable to the registration application and activities in 33 which it may engage under the registration; 34 (iii) it is not in the public interest to renew the registration 35 because the number of registered organizations in an area is excessive 36 to reasonably serve the area and patient need; 37 (iv) the applicant has either violated or terminated its labor peace 38 agreement; or 39 (v) the applicant has substantively violated this chapter, regulations 40 promulgated thereunder, or the laws of another jurisdiction in which 41 they operate or have operated a cannabis license or registration. 42 (b) For purposes of this section, proof that a registered organiza- 43 tion, during the period of its registration, has failed to maintain 44 effective control against diversion, violated any provision of this 45 article, or has knowingly or negligently failed to comply with applica- 46 ble state laws relating to the activities in which it engages under the 47 registration, may constitute grounds for suspension, revocation or limi- 48 tation of the registered organization's registration or as determined by 49 the executive director. The registered organization shall also be under 50 a continuing duty to report to the office and seek prior approval for 51 any material change or fact or circumstance to the information provided 52 in the registered organization's application. 53 7. The office may suspend or revoke the registration of a registered 54 organization, on grounds and using procedures under this article relat- 55 ing to a license, to the extent consistent with this article. The 56 office shall suspend or revoke the registration in the event that aS. 7509--A 81 A. 9509--A 1 registered organization violates or terminates the applicable labor 2 peace agreement. Conduct in compliance with this article which may 3 violate conflicting federal law, shall not in and of itself be grounds 4 to suspend or terminate a registration. 5 8. The office shall begin issuing registrations for registered organ- 6 izations as soon as practicable after the certifications required by 7 this article are given. 8 9. The office shall register at least ten registered organizations 9 that manufacture medical cannabis with no more than four dispensing 10 sites wholly owned and operated by such registered organization. The 11 executive director shall ensure that such registered organization, 12 dispensing sites or approved delivery activities are geographically 13 distributed across the state to satisfy patient and program need. The 14 executive director may register additional registered organizations. 15 § 36. Intentionally omitted. 16 § 37. Reports of registered organizations. 1. The executive director 17 shall require each registered organization to file reports by the regis- 18 tered organization during a particular period. The executive director 19 shall determine the information to be reported and the forms, time, and 20 manner of the reporting. 21 2. The executive director shall require each registered organization 22 to adopt and maintain security, tracking, record keeping, record 23 retention and surveillance systems, relating to all medical cannabis at 24 every stage of acquiring, possession, manufacture, sale, delivery, 25 transporting, distributing, or dispensing by the registered organiza- 26 tion, subject to regulations of the executive director. 27 § 38. Evaluation; research programs; report by office. 1. The execu- 28 tive director may provide for the analysis and evaluation of the opera- 29 tion of this title. The executive director may enter into agreements 30 with one or more persons, not-for-profit corporations or other organiza- 31 tions, for the performance of an evaluation of, or to aid in, the imple- 32 mentation and effectiveness of this title. 33 2. The office may develop, seek any necessary federal approval for, 34 and carry out research programs relating to medical use of cannabis. 35 Participation in any such research program shall be voluntary on the 36 part of practitioners, patients, and designated caregivers. 37 3. The office shall report every two years, beginning two years after 38 the effective date of this chapter, to the governor and the legislature 39 on the medical use of cannabis under this title and make appropriate 40 recommendations. 41 § 39. Cannabis research license. 1. The board shall establish a 42 cannabis research license that permits a licensee to produce, process, 43 purchase and possess cannabis for the following limited research 44 purposes: 45 (a) to test chemical potency and composition levels; 46 (b) to conduct clinical investigations of cannabis-derived drug 47 products; 48 (c) to conduct research on the efficacy and safety of administering 49 cannabis as part of medical treatment; and 50 (d) to conduct genomic or agricultural research. 51 2. As part of the application process for a cannabis research license, 52 an applicant shall submit to the office a description of the research 53 that is intended to be conducted as well as the amount of cannabis to be 54 grown or purchased. The office shall review an applicant's research 55 project and determine whether it meets the requirements of subdivisionS. 7509--A 82 A. 9509--A 1 one of this section. In addition, the office shall assess the applica- 2 tion based on the following criteria: 3 (a) project quality, study design, value, and impact; 4 (b) whether the applicant has the appropriate personnel, expertise, 5 facilities and infrastructure, funding, and human, animal, or other 6 approvals in place to successfully conduct the project; and 7 (c) whether the amount of cannabis to be grown or purchased by the 8 applicant is consistent with the project's scope and goals. If the 9 office determines that the research project does not meet the require- 10 ments of subdivision one of this section, the application must be 11 denied. 12 3. A cannabis research licensee may only sell cannabis grown or within 13 its operation to other cannabis research licensees. The office may 14 revoke a cannabis research license for violations of this subdivision. 15 4. A cannabis research licensee may contract with the higher education 16 institutions to perform research in conjunction with the university. All 17 research projects, entered into under this section shall be approved by 18 the office and meet the requirements of subsection one of this section. 19 5. In establishing a cannabis research license, the board may adopt 20 regulations on the following: 21 (a) application requirements; 22 (b) cannabis research license renewal requirements, including whether 23 additional research projects may be added or considered; 24 (c) conditions for license revocation; 25 (d) security measures to ensure cannabis is not diverted to purposes 26 other than research; 27 (e) amount of plants, useable cannabis, cannabis concentrates, or 28 cannabis-infused products a licensee may have on its premises; 29 (f) licensee reporting requirements; 30 (g) conditions under which cannabis grown by licensed cannabis produc- 31 ers and other product types from licensed cannabis processors may be 32 donated to cannabis research licensees; and 33 (h) any additional requirements deemed necessary by the office. 34 6. A cannabis research license issued pursuant to this section shall 35 be issued in the name of the applicant, specify the location at which 36 the cannabis researcher intends to operate, which shall be within the 37 state of New York, and the holder thereof may not allow any other person 38 to use the license. 39 7. The application fee for a cannabis research license shall be deter- 40 mined by the executive director on an annual basis. 41 8. Each cannabis research licensee shall issue an annual report to the 42 office. The office shall review such report and make a determination as 43 to whether the research project continues to meet the research quali- 44 fications under this section. 45 § 40. Registered organizations and adult-use cannabis. 1. The execu- 46 tive director shall have the authority to grant some or all of the 47 registered organizations previously registered with the department of 48 health and currently registered and in good standing with the office, 49 the ability to be licensed to cultivate, process, distribute and/or sell 50 adult-use cannabis and cannabis products, pursuant to any fees, rules or 51 conditions prescribed by the board in regulation, but exempt from the 52 restrictions on licensed adult-use cultivators, processors, and distrib- 53 utors from having any ownership interest in a licensed adult-use retail 54 dispensary wholly owned and controlled by the registered organization 55 pursuant to article four of this chapter.S. 7509--A 83 A. 9509--A 1 2. The office shall have the authority to hold a competitive bidding 2 process, including an auction, to determine the registered 3 organization(s) authorized to be licensed to cultivate, process, 4 distribute and/or sell adult-use cannabis and to collect the fees gener- 5 ated from such auction to administer the office's social and economic 6 equity plan and other duties prescribed by this chapter. 7 3. Alternatively, registered organizations may apply for licensure as 8 an adult-use cannabis cultivator, adult-use cannabis processor, and 9 adult-use cannabis distributor, or apply for licensure as an adult-use 10 cannabis retail dispensary, subject to all of the restrictions and limi- 11 tations set forth in article four of this chapter. 12 4. Any registered organization which is licensed to cultivate, proc- 13 ess, distribute and sell adult-use cannabis and cannabis products pursu- 14 ant to this section and article four of this chapter, shall be required 15 to maintain sufficient supply and distribution of medical cannabis 16 products for certified patients pursuant to regulations promulgated by 17 the executive director. 18 § 41. Home cultivation of medical cannabis. 1. Eligible certified 19 patients or one of their designated caregivers twenty-one years of age 20 or older may apply for registration with the office to grow and possess 21 no more than four cannabis plants, as defined by the executive director 22 in regulation, per household. 23 2. All medical cannabis cultivated at home must be grown and stored in 24 a single location in an enclosed, locked space, not open or viewable to 25 the public. Such homegrown medical cannabis must only be for use by the 26 certified patient and may not be distributed, sold, or gifted. 27 3. The board shall develop rules and regulations governing this 28 section which shall include, but not be limited to: 29 (a) the registration of medical cannabis cultivated at home users and 30 tracking of individual plants and the cannabis they produce; 31 (b) the inspection of medical cannabis cultivated at home to ensure 32 compliance with possession limits and any building code, fire code, or 33 other applicable state or local laws; 34 (c) restrictions and prohibitions on the unlicensed manufacturing and 35 processing of medical cannabis products; 36 (d) application and eligibility requirements for a patient or one of 37 their designated caregivers to qualify and be approved to grow medical 38 cannabis; 39 (e) odor mitigation systems and plans that must be utilized for the 40 home growing of medical cannabis; 41 (f) systems and processes that shall be used to confirm grow and 42 possession limits compliance with law enforcement officials; 43 (g) possession limit equivalencies and restrictions on how much 44 harvested and unused cannabis may be possessed by patients and caregiv- 45 ers who grow at home; 46 (h) the requirement that any patient or caregiver who cultivates 47 medical cannabis at home provides proof of ownership of the grow 48 location or written permission from the owner, landlord or governing 49 board; 50 (i) enforcement of non-compliant cultivation at home including but not 51 limited to the revocation of any registration or registry identification 52 card associated with the patient and the seizure and destruction of 53 non-compliant cannabis plants and products and the acquisition and 54 transfer of cannabis plants; 55 (j) cultivation of medical cannabis at home location requirements; andS. 7509--A 84 A. 9509--A 1 (k) any other regulations related to cultivation of medical cannabis 2 at home, the growing infrastructure used, those with access to the site, 3 or the cannabis material produced. 4 4. An eligible designated caregiver approved by the office may only 5 grow for one patient. 6 5. A designated caregiver may not accept any money, fees, consider- 7 ation, services, or any exchange of value in return for their growing 8 services. 9 6. Any person in violation of state law or regulations related to 10 cultivation of medical cannabis at home shall have any cannabis registry 11 identification card, license, registration, or permit immediately 12 revoked and shall be subject to administrative fines and penalties 13 imposed by the office, as determined in regulation, and shall be subject 14 to any applicable criminal penalties. 15 § 42. Relation to other laws. 1. The provisions of this article shall 16 apply, except that where a provision of this article conflicts with 17 another provision of this chapter, this article shall apply. 18 2. Medical cannabis shall not be deemed to be a "drug" for purposes of 19 article one hundred thirty-seven of the education law. 20 § 43. Protections for the medical use of cannabis. 1. Certified 21 patients, designated caregivers, designated caregiver facilities, prac- 22 titioners, registered organizations and the employees of registered 23 organizations, and cannabis researchers shall not be subject to arrest, 24 prosecution, or penalty in any manner, or denied any right or privilege, 25 including but not limited to civil penalty or disciplinary action by a 26 business or occupational or professional licensing board or bureau, 27 solely for the certified medical use or manufacture of cannabis, or for 28 any other action or conduct, in accordance with this article. 29 2. Being a certified patient shall be deemed to be having a "disabili- 30 ty" under article fifteen of the executive law, section forty-c of the 31 civil rights law, sections 240.00, 485.00, and 485.05 of the penal law, 32 and section 200.50 of the criminal procedure law. This subdivision shall 33 not bar the enforcement of a policy prohibiting an employee from 34 performing his or her employment duties while impaired by or under the 35 influence of a controlled substance. This subdivision shall not require 36 any person or entity to do any act that would put the person or entity 37 in direct violation of federal law or cause it to lose a federal 38 contract or funding. 39 3. The fact that a person is a certified patient and/or acting in 40 accordance with this article, shall not be a consideration in a proceed- 41 ing pursuant to applicable sections of the domestic relations law, the 42 social services law and the family court act. 43 4. (a) Certification applications, certification forms, any certified 44 patient information contained within a database, and copies of registry 45 identification cards shall be deemed exempt from public disclosure under 46 sections eighty-seven and eighty-nine of the public officers law. Upon 47 specific request by a certified patient to the office, the office may 48 verify the requesting patient's status as a valid certified patient to 49 the patient's school or employer, to ensure compliance with the 50 protections afforded by this section. 51 (b) The name, contact information, and other information relating to 52 practitioners registered with the office under this article shall be 53 public information and shall be maintained by the executive director on 54 the office's website accessible to the public in searchable form. Howev- 55 er, if a practitioner notifies the office in writing that he or she does 56 not want his or her name and other information disclosed, that practi-S. 7509--A 85 A. 9509--A 1 tioner's name and other information shall thereafter not be public 2 information or maintained on the office's website, unless the practi- 3 tioner cancels the request. 4 § 44. Regulations. The board shall make regulations to implement this 5 article. 6 § 45. Suspend; terminate. Based upon the recommendation of the execu- 7 tive director and/or the superintendent of state police that there is a 8 risk to the public health or safety, the governor may immediately termi- 9 nate all licenses issued to registered organizations. 10 § 46. Pricing. 1. Every sale of medical cannabis shall be at or below 11 the price approved by the executive director. Every charge made or 12 demanded for medical cannabis not in accordance with the price approved 13 by the executive director, is prohibited. 14 2. The executive director is hereby authorized to set the per dose 15 price of each form of medical cannabis sold by any registered organiza- 16 tion. In reviewing the per dose price of each form of medical cannabis, 17 the executive director may consider the fixed and variable costs of 18 producing the form of cannabis and any other factor the executive direc- 19 tor, in his or her discretion, deems relevant in reviewing the per dose 20 price of each form of medical cannabis. 21 § 47. Severability. If any clause, sentence, paragraph, section or 22 part of this article shall be adjudged by any court of competent juris- 23 diction to be invalid, the judgment shall not affect, impair, or invali- 24 date the remainder thereof, but shall be confined in its operation to 25 the clause, sentence, paragraph, section or part thereof directly 26 involved in the controversy in which the judgment shall have been 27 rendered. 28 ARTICLE 4 29 ADULT-USE CANNABIS 30 Section 60. Licenses issued. 31 61. License application. 32 62. Information to be requested in applications for licenses. 33 63. Fees. 34 64. Approval and selection criteria. 35 65. Limitations of licensure. 36 66. License renewal. 37 67. Amendments; changes in ownership and organizational struc- 38 ture. 39 68. Adult-use cultivator license. 40 69. Adult-use processor license. 41 70. Adult-use cooperative license. 42 71. Adult-use distributor license. 43 72. Adult-use retail dispensary license. 44 73. Notification to municipalities of adult-use on-site consump- 45 tion license. 46 74. On-site consumption license; provisions governing on-site 47 consumption licenses. 48 75. Record keeping and tracking. 49 76. Inspections and ongoing requirements. 50 77. Adult-use cultivators, processors or distributors not to be 51 interested in retail dispensaries. 52 78. Packaging, labeling, form and administration of adult-use 53 cannabis products. 54 79. Laboratory testing.S. 7509--A 86 A. 9509--A 1 80. Provisions governing the cultivation and processing of 2 adult-use cannabis. 3 81. Provisions governing the distribution of adult-use cannabis. 4 82. Provisions governing adult-use cannabis retail dispensaries. 5 83. Adult-use cannabis advertising and marketing. 6 84. Minority, women-owned businesses and disadvantaged farmers; 7 social and economic equity plan. 8 85. Regulations. 9 § 60. Licenses issued. The following kinds of licenses shall be 10 issued by the executive director for the cultivation, processing, 11 distribution and sale of cannabis to cannabis consumers: 12 1. Adult-use cultivator license; 13 2. Adult-use processor license; 14 3. Adult-use cooperative license; 15 4. Adult-use distributor license; 16 5. Adult-use retail dispensary license; 17 6. On-site consumption license; and 18 7. Any other type of license as prescribed by the board in regulation. 19 § 61. License Application. 1. Any eligible person may apply to the 20 office for a license to cultivate, process, distribute or dispense 21 cannabis within this state for sale during an open application period 22 and pursuant to regulations promulgated by the office. Such application 23 shall be in writing and verified and shall contain such information as 24 the office shall require. Such application shall be accompanied by a 25 check, draft or other forms of payment as the office may require for the 26 amount required by this article for such license. If the office approves 27 the application, it may issue a license in such form and through such 28 process prescribed by the office. Such license shall contain a 29 description of the licensed premises and in form and in substance shall 30 be a license to the person therein specifically designated to cultivate, 31 process, distribute or dispense cannabis in the premises therein specif- 32 ically licensed or to engage in any other licensed, registered or 33 permitted activity within the state, and the address, location, and/or 34 scope specified by the office. 35 2. Except as otherwise provided in this article, a separate license 36 shall be required for each facility at which cultivation, processing, 37 distribution or retail dispensing is conducted. 38 3. An applicant shall not be denied a license under this article based 39 solely on a conviction for a violation of article two hundred twenty or 40 section 240.36 of the penal law, prior to the date article two hundred 41 twenty-one of the penal law took effect, or a conviction for a violation 42 of article two hundred twenty-one of the penal law after the effective 43 date of this chapter. 44 § 62. Information to be requested in applications for licenses. 1. The 45 office shall have the authority to prescribe the manner and form in 46 which an application must be submitted to the office for licensure under 47 this article. Such information may include, but is not limited to: 48 information about the applicant's identity, including racial and ethnic 49 background; ownership and investment information, including the corpo- 50 rate structure; evidence of good moral character, including the 51 submission of fingerprints by the applicant to the division of criminal 52 justice services; information about the premises to be licensed; finan- 53 cial statements; and any other information prescribed by in regulation. 54 2. All license applications shall be signed by the applicant (if an 55 individual), by a managing partner (if a limited liability corporation), 56 by an officer (if a corporation), or by all partners (if a partnership).S. 7509--A 87 A. 9509--A 1 Each person signing such application shall verify it or affirm it as 2 true under the penalties of perjury. 3 3. All license or permit applications shall be accompanied by a check, 4 draft or other forms of payment as the office may require or authorize 5 in the amount required by this article for such license or permit. 6 4. If there be any proposed change, after the filing of the applica- 7 tion or the granting of a license, in any of the facts required to be 8 set forth in such application, a supplemental statement requesting 9 approval of such change, cost and source of money involved in the 10 change, duly verified, shall be submitted to the office prior to such 11 proposed change. Failure to do so shall, if willful and deliberate, be 12 cause for revocation of the license. 13 5. In giving any notice, or taking any action in reference to a regis- 14 tered organization or licensee of a licensed premises, the office may 15 rely upon the information furnished in such application and in any 16 supplemental statement or request connected therewith, and such informa- 17 tion may be presumed to be correct, and shall be binding upon a regis- 18 tered organization, licensee or licensed premises as if correct. All 19 information required to be furnished in such application, requests or 20 supplemental statements shall be deemed material in any prosecution for 21 perjury, any proceeding to revoke or suspend any license, or impose a 22 fine and in the office's determination to approve or deny the license. 23 6. The office may, in its discretion, waive the submission of any 24 category of information described in this section for any category of 25 license or permit, provided that it shall not be permitted to waive the 26 requirement for submission of any such category of information solely 27 for an individual applicant or applicants. 28 7. The office may, in its discretion, wholly prohibit and/or prescribe 29 specific criteria under which it will consider and allow limited trans- 30 fers or changes of ownership, interest, or control during the registra- 31 tion or license application period and/or up to two years after an 32 approved applicant commences licensed activities. 33 § 63. Fees. 1. The office shall have the authority to charge appli- 34 cants for licensure under this article a non-refundable application fee 35 and/or to to create a competitive process determined by the office to be 36 qualified for such licensure based on the selection criteria in section 37 sixty-four of this article. Such fee may be based on the type of licen- 38 sure sought, cultivation and/or production volume, sequence or priority 39 of issuance, or any other factors deemed necessary, reasonable and 40 appropriate by the office to achieve the policy and purpose of this 41 chapter. 42 2. The office shall have the authority to charge licensees a biennial 43 or annual license fee which shall be non-refundable. Such fee may be 44 based on the amount of cannabis to be cultivated, processed, distributed 45 and/or dispensed by the licensee or the gross annual receipts of the 46 licensee for the previous license period, or any other factors deemed 47 reasonable and appropriate by the office. 48 3. The office shall have the authority to waive or reduce fees pursu- 49 ant to this section for social and economic equity applicants. 50 § 64. Approval and selection criteria. 1. The board shall develop 51 regulations for use by the office in determining whether or not an 52 applicant should be approved for and subsequently granted the privilege 53 of holding an adult-use cannabis license. The criteria for such approval 54 or subsequent issuance shall be based on, but not limited to, the 55 following criteria:S. 7509--A 88 A. 9509--A 1 (a) the applicant will be able to maintain effective control against 2 the illegal diversion or inversion 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) where appropriate and applicable, the applicant possesses or has 8 the right to use, or opportunity to acquire, sufficient land, buildings, 9 and equipment to properly carry on the activity described in the appli- 10 cation; 11 (e) it is in the public interest that such license be granted, taking 12 into consideration, but not limited to, the following criteria: 13 (i) that it is a privilege, and not a right, to cultivate, process, 14 distribute, and sell cannabis; 15 (ii) the number, classes, scope and character of other licenses or 16 approved applicants in proximity to the location or in the state, county 17 or particular municipality or subdivision thereof as appropriate; 18 (iii) evidence that all necessary licenses and permits have been 19 obtained from the state and all other governing bodies; 20 (iv) the history of cannabis or other relevant regulatory violations 21 at the proposed location or by the applicant in any relevant jurisdic- 22 tion, as well as any pattern of violations under this chapter, and 23 reported criminal activity at the proposed premises; 24 (v) the effect on the production, price and availability of cannabis 25 and cannabis products; and 26 (vi) any other factors specified by law or regulation that are rele- 27 vant to determine that granting a license would promote public health 28 and safety and the public interest of the state, county or community; 29 (f) the applicant and its managing officers do not have an ownership 30 or controlling interest in more licenses, permits, or the scope of 31 activity allowed by this chapter, or any regulations promulgated here- 32 under; 33 (g) the applicant has entered into a labor peace agreement with a 34 bona-fide labor organization that is actively engaged in representing or 35 attempting to represent the applicant's employees, and the maintenance 36 of such a labor peace agreement shall be an ongoing material condition 37 of licensure; 38 (h) the applicant will contribute to communities, the workforce and 39 people disproportionately harmed by cannabis law enforcement through 40 participation in the social and economic equity plan implemented by the 41 office or other suitable means; 42 (i) if the application is for an adult-use cultivator license, the 43 environmental impact of the facility to be licensed; and 44 (j) the applicant satisfies any other conditions as determined by the 45 executive director. 46 2. If the executive director is not satisfied that the applicant is 47 eligible to be approved, or subsequently should be issued a license, the 48 executive director shall notify the applicant in writing of the specific 49 reason or reasons for denial. 50 § 65. Limitations of licensure. 1. No license of any kind may be 51 issued to a person under the age of twenty-one years, nor shall any 52 licensee employ anyone under the age of eighteen years. 53 2. No person shall sell, deliver, or give away or cause or permit or 54 procure to be sold, delivered or given away any cannabis to any person, 55 actually or apparently, under the age of twenty-one years, or any visi- 56 bly intoxicated person.S. 7509--A 89 A. 9509--A 1 3. No person shall knowingly sell, deliver, or give away or cause or 2 permit or procure to be sold, delivered or given away to a lawful canna- 3 bis consumer any amount of cannabis which would cause the lawful canna- 4 bis consumer to be in violation of the possession limits established by 5 this chapter, or their equivalent as determined by the executive direc- 6 tor in regulation. 7 4. The office shall have the authority to limit, by canopy, plant 8 count, square footage or other means, the amount of cannabis allowed to 9 be grown, processed, distributed or sold by a licensee. 10 5. All licenses under this article shall expire two years after the 11 date of issue. 12 § 66. License renewal. 1. Each license, issued pursuant to this arti- 13 cle, may be approved for renewal upon application therefor by the licen- 14 see and the payment of the fee for such license as prescribed by this 15 article. In the case of applications for renewals, the office may 16 dispense with the requirements of such statements as it deems unneces- 17 sary in view of those contained in the application made for the original 18 license, but in any event the submission of photographs of the licensed 19 premises may be dispensed with, provided the applicant for such renewal 20 shall file a statement with the office to the effect that there has been 21 no alteration of such premises since the original license was issued. 22 The office may make such rules as it deems necessary, not inconsistent 23 with this chapter, regarding applications for renewals of licenses and 24 permits and the time for making the same. 25 2. The office shall create a social responsibility framework agreement 26 and make the adherence to and fulfillment of such agreement a condi- 27 tional requirement of license renewal. 28 3. The office shall provide an application for renewal of a license 29 issued under this article not less than ninety days prior to the expira- 30 tion of the current license. 31 4. The office may only issue a renewal license upon receipt of the 32 prescribed renewal application and renewal fee from a licensee if, in 33 addition to the criteria in this section, the licensee's license is not 34 under suspension and has not been revoked. 35 5. Each applicant must maintain a labor peace agreement with a bona- 36 fide labor organization that is actively engaged in representing or 37 attempting to represent the applicant's employees and the maintenance of 38 such a labor peace agreement shall be an ongoing material condition of 39 licensure. 40 § 67. Amendments; changes in ownership and organizational structure. 41 1. Licenses issued pursuant to this article shall specify: 42 (a) the name and address of the licensee; 43 (b) the activities permitted by the license; 44 (c) the land, buildings, facilities, locations or areas that may be 45 used for the licensed activities of the licensee; 46 (d) a unique license number issued by the office to the licensee; and 47 (e) such other information as the executive director shall deem neces- 48 sary to assure compliance with this chapter. 49 2. Upon application to the office, an application or license may be 50 amended to allow the applicant or licensee to relocate within the state, 51 to add or delete licensed activities or facilities, or to amend the 52 ownership or organizational structure of the entity that is the appli- 53 cant or licensee, upon approval by the executive director. The fee for 54 such amendment shall be determined by the executive director in regu- 55 lation.S. 7509--A 90 A. 9509--A 1 3. A license shall become void by a change in ownership, management, 2 interest, substantial corporate change, location, or material changes in 3 operations without prior written approval of the executive director. The 4 executive director may promulgate regulations specifying the process for 5 amendment requests and allowing for certain types of changes in owner- 6 ship without the need for prior written approval. 7 4. For purposes of this section, "substantial corporate change" shall 8 mean: 9 (a) for a corporation, a change of five percent or more of the offi- 10 cers and/or directors, or a transfer of five percent or more of stock of 11 such corporation, or an existing stockholder obtaining five percent or 12 more of the stock of such corporation; or 13 (b) for a limited liability company, a change of five percent or more 14 of the managing members of the company, or a transfer of five percent or 15 more of ownership interest in said company, or an existing member 16 obtaining a cumulative of five percent or more of the ownership interest 17 in said company. 18 § 68. Adult-use cultivator license. 1. An adult-use cultivator's 19 license shall authorize the acquisition, possession, cultivation and 20 sale of cannabis from the licensed premises of the adult-use cultivator 21 by such licensee to duly licensed processors in this state. The board 22 may establish regulations allowing licensed adult-use cultivators to 23 perform certain types of minimal processing, defined in regulation, 24 without the need for an adult-use processor license. 25 2. For purposes of this section, cultivation shall include, but not be 26 limited to, the planting, growing, cloning, harvesting, drying, curing, 27 grading and trimming of cannabis. 28 3. A person holding an adult-use cultivator's license may apply for, 29 and obtain, one processor's license and one distributor's license. 30 4. A person holding an adult-use cultivator's license may not also 31 hold a retail dispensary license pursuant to this article and no adult- 32 use cannabis cultivator shall have a direct or indirect interest, 33 including by stock ownership, interlocking directors, mortgage or lien, 34 personal or real property, management agreement, share parent companies 35 or affiliate organizations, or any other means, in any premises licensed 36 as an adult-use cannabis retail dispensary or in any business licensed 37 as an adult-use cannabis retail dispensary pursuant to this article. 38 5. A person holding an adult-use cultivator's license may not hold a 39 license to distribute cannabis under this article unless the licensed 40 cultivator is also licensed as a processor under this article. 41 6. No person may have a direct or indirect financial or controlling 42 interest in more than one adult-use cultivator license issued pursuant 43 to this chapter, provided that one adult-use cultivator license may 44 authorize adult-use cultivation in more than one location. 45 7. The executive director shall have the authority to issue microbusi- 46 ness cultivator licenses, allowing microbusiness licensees to cultivate, 47 process, and distribute adult-use cannabis direct to licensed cannabis 48 retailers, under a single license. The board may establish through 49 regulation microbusiness license eligibility criteria and production 50 limits of total cannabis cultivated, processed and/or distributed annu- 51 ally for microbusiness cultivator licenses. 52 § 69. Adult-use processor license. 1. A processor's license shall 53 authorize the acquisition, possession, processing and sale of cannabis 54 from the licensed premises of the adult-use cultivator by such licensee 55 to duly licensed distributors.S. 7509--A 91 A. 9509--A 1 2. For purposes of this section, processing shall include, but not be 2 limited to, blending, extracting, infusing, packaging, labeling, brand- 3 ing and otherwise making or preparing cannabis products. Processing 4 shall not include the cultivation of cannabis. 5 3. No processor shall be engaged in any other business on the premises 6 to be licensed; except that nothing contained in this chapter shall 7 prevent an adult-use cannabis cultivator, processor, and distributor 8 from operating on the same premises and from a person holding all three 9 licenses. 10 4. No cannabis processor licensee may hold more than one cannabis 11 processor license, provided a single license may authorize processor 12 activities at multiple locations. 13 5. No adult-use cannabis processor shall have a direct or indirect 14 interest, including by stock ownership, interlocking directors, mortgage 15 or lien, personal or real property, management agreement, or through 16 parent organizations or affiliate entities, or any other means, in any 17 premises licensed as an adult-use cannabis retail dispensary or in any 18 business licensed as an adult-use cannabis retail dispensary pursuant to 19 this article. 20 § 70. Adult-use cooperative license. 1. A cooperative license shall 21 authorize the acquisition, possession, cultivation, processing and sale 22 from the licensed premises of the adult-use cooperative by such licensee 23 to duly licensed distributors and/or retail dispensaries; but not 24 directly to cannabis consumers. 25 2. To be licensed as an adult-use cooperative, the cooperative must: 26 (a) be comprised of residents of the state of New York as a limited 27 liability company or limited liability partnership under the laws of the 28 state, or an appropriate business structure as determined by the execu- 29 tive director; and 30 (b) the cooperative must operate according to the seven cooperative 31 principles published by the International Cooperative Alliance in nine- 32 teen hundred ninety-five. 33 3. No person shall be a member of more than one adult-use cooperative 34 licensed pursuant to this section. 35 4. No person or member of an adult-use cooperative license may have a 36 direct or indirect financial or controlling interest in any other 37 adult-use cannabis license issued pursuant to this chapter. 38 5. No adult-use cannabis cooperative shall have a direct or indirect 39 interest, including by stock ownership, interlocking directors, mortgage 40 or lien, personal or real property, or any other means, in any premises 41 licensed as an adult-use cannabis retail dispensary or in any business 42 licensed as an adult-use cannabis retail dispensary pursuant to this 43 article. 44 6. The board shall promulgate regulations governing cooperative 45 licenses, including, but not limited to, the establishment of canopy 46 limits and other restrictions on the size and scope of cooperative 47 licensees. 48 § 71. Adult-use distributor license. 1. A distributor's license shall 49 authorize the acquisition, possession, distribution and sale of cannabis 50 from the licensed premises of a licensed adult-use processor, microbusi- 51 ness cultivator, adult-use cooperative, or registered organization 52 authorized to sell adult-use cannabis, to duly licensed retail dispen- 53 saries. 54 2. No distributor shall have a direct or indirect economic interest in 55 any adult-use retail dispensary licensed pursuant to this article, or in 56 any registered organization registered pursuant to article three of thisS. 7509--A 92 A. 9509--A 1 chapter. This restriction shall not prohibit a registered organization 2 authorized pursuant to section forty of this chapter, from being granted 3 licensure by the office to distribute adult-use cannabis products culti- 4 vated and processed by the registered organization to the registered 5 organization's own licensed adult-use retail dispensaries. 6 3. Nothing in subdivision two of this section shall prevent a distrib- 7 utor from charging an appropriate fee for the distribution of cannabis, 8 including based on the volume of cannabis distributed. 9 4. Adult-use distributor licensees are subject to minimum operating 10 requirements as determined by regulation. 11 § 72. Adult-use retail dispensary license. 1. A retail dispensary 12 license shall authorize the acquisition, possession and sale of cannabis 13 from the licensed premises of the retail dispensary by such licensee to 14 cannabis consumers. 15 2. No person may have a direct or indirect financial or controlling 16 interest in more than three retail dispensary licenses issued pursuant 17 to this chapter. This restriction shall not prohibit a registered organ- 18 ization, authorized pursuant to section forty of this chapter, from 19 being granted licensure by the office to sell adult-use cannabis at 20 locations previously registered by the department of health; subject to 21 any conditions, limitations or restrictions established by the office. 22 3. No person holding a retail dispensary license may also hold or have 23 any interest in an adult-use cultivation, processor, microbusiness 24 cultivator, cooperative or distributor license pursuant to this article. 25 4. No retail license shall be granted for any premises, unless the 26 applicant shall be the owner thereof, or shall be in possession of said 27 premises under a lease, management agreement or other agreement giving 28 the applicant control over the premises, in writing, for a term not less 29 than the license period. 30 5. No cannabis retail license shall be granted for any premises within 31 five hundred feet of a building occupied exclusively as a school, or two 32 hundred feet of a church, synagogue or other place of worship. 33 § 73. Notification to municipalities of adult-use on-site consumption 34 license. 1. Adult-use on-site consumption applicants must notify the 35 municipality in which the proposed premises is located within ten busi- 36 ness days of identifying the proposed premises and/or executing a lease, 37 letter of intent to occupy the premises, or execution of a purchase and 38 sale agreement. 39 2. Such notification shall be made to the clerk of the village, town 40 or city, as the case may be, wherein the premises is located. For 41 purposes of this section: 42 (a) notification need only be given to the clerk of a village when the 43 proposed or secured premises is located within the boundaries of such 44 village; and 45 (b) in the city of New York, the community board established pursuant 46 to section twenty-eight hundred of the New York city charter with juris- 47 diction over the area in which the proposed or secured premises is 48 located shall be considered the appropriate public body to which notifi- 49 cation shall be given. 50 3. Such notification shall be made in such form as shall be prescribed 51 by the rules of the office. 52 4. Such notification shall be made in such manner as outlined by the 53 office in regulation. 54 5. The office shall require such notification to be on a standardized 55 form that can be obtained on the internet or from the office and suchS. 7509--A 93 A. 9509--A 1 notification shall include applicant, licensee and proposed or secured 2 premises information as determined by the office in regulation. 3 § 74. On-site consumption license; provisions governing on-site 4 consumption licenses. 1. No licensed adult-use cannabis retail dispen- 5 sary may be granted a cannabis on-site consumption license for any prem- 6 ises, unless the applicant shall be the owner thereof, or shall be in 7 possession of said premises under a lease, in writing, for a term not 8 less than the license period except, however, that such license may 9 thereafter be renewed without the requirement of a lease as provided in 10 this section. This subdivision shall not apply to premises leased from 11 government agencies, as defined under subdivision twenty of section 12 three of this chapter; provided, however, that the appropriate adminis- 13 trator of such government agency provides some form of written documen- 14 tation regarding the terms of occupancy under which the applicant is 15 leasing said premises from the government agency for presentation to the 16 office at the time of the license application. Such documentation shall 17 include the terms of occupancy between the applicant and the government 18 agency, including, but not limited to, any short-term leasing agreements 19 or written occupancy agreements. 20 2. No adult-use cannabis retail dispensary shall be granted a cannabis 21 on-site consumption license for any premises within five hundred feet of 22 a building occupied exclusively as a school, or two hundred feet of a 23 church, synagogue or other place of worship. 24 3. The office may consider any or all of the following in determining 25 whether public health, safety, and convenience and the public interest 26 will be promoted by approving an application or the granting of a 27 license for an on-site cannabis consumption at a particular location: 28 (a) that it is a privilege, and not a right, to cultivate, process, 29 distribute, and sell cannabis; 30 (b) the number, classes, scope and character of other licenses in 31 proximity to the location and in the particular municipality or subdivi- 32 sion thereof; 33 (c) evidence that all necessary licenses and permits have been 34 obtained from the state and all other governing bodies; 35 (d) the history of violations under this chapter, or cannabis laws and 36 regulations of another jurisdiction, and reported criminal activity at 37 the proposed premises or associated with the applicant; and 38 (e) any other factors that, in the judgment of the office, are rele- 39 vant to determine that granting a license would promote public health, 40 safety and convenience and the public interest of the community; 41 4. If the office shall deny an application for an on-site consumption 42 license, it shall state and file in its offices the reasons therefor and 43 shall notify the applicant thereof. Such applicant may thereupon apply 44 to the office for a review of such action in a manner to be prescribed 45 by the rules of the office. 46 5. All retail licensed premises shall be subject to inspection by any 47 peace officer, acting pursuant to his or her special duties, or police 48 officer and by the duly authorized representatives of the office, during 49 the hours when the said premises are open for the transaction of busi- 50 ness. 51 6. A cannabis on-site consumption licensee shall not provide cannabis 52 products to any person under the age of twenty-one or to anyone visibly 53 intoxicated. 54 7. The office, in its discretion, shall have the ability to prior- 55 itize, or postpone accepting applications for, and the issuance of, 56 on-site consumption licenses, and/or prioritize or limit the acceptanceS. 7509--A 94 A. 9509--A 1 and review of applications from applicant pools such as social and 2 economic equity applicants, consistent with the intent of this chapter. 3 8. The office shall promulgate rules and regulations governing the 4 minimum operating requirements for on-site consumption licensees. 5 § 75. Record keeping and tracking. The board shall, by regulation, 6 require each licensee pursuant to this article to adopt and maintain 7 security, tracking, record keeping, record retention and surveillance 8 systems, relating to all cannabis at every stage of acquiring, 9 possession, manufacture, sale, delivery, transporting, or distributing 10 by the licensee. 11 § 76. Inspections and ongoing requirements. All licensed or permitted 12 premises, regardless of the type of premises, and records including 13 financial statements and corporate documents, 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. The office shall make reasonable accom- 17 modations so that ordinary business is not interrupted and safety and 18 security procedures are not compromised by the inspection. A person who 19 holds a license or permit must make himself or herself, or an agent 20 thereof, available and present for any inspection required by the 21 office. Such inspection may include, but is not limited to, ensuring 22 compliance by the licensee or permittee with all of the requirements of 23 this article, the regulations promulgated pursuant thereto, and other 24 applicable building codes, fire, health, safety, and governmental regu- 25 lations, including at the municipal, county, and state level and include 26 any inspector or official of relevant jurisdiction. 27 § 77. Adult-use cultivators, processors or distributors not to be 28 interested in retail dispensaries. 1. It shall be unlawful for a culti- 29 vator, processor, cooperative or distributor licensed under this article 30 to: 31 (a) be interested directly or indirectly in any premises where any 32 cannabis product is sold at retail; or in any business devoted wholly or 33 partially to the sale of any cannabis product at retail by stock owner- 34 ship, interlocking directors, mortgage or lien or any personal or real 35 property, or by any other means. 36 (b) make, or cause to be made, any loan to any person engaged in the 37 manufacture or sale of any cannabis product at wholesale or retail. 38 (c) make any gift or render any service of any kind whatsoever, 39 directly or indirectly, to any person licensed under this chapter which 40 in the judgment of the office may tend to influence such licensee to 41 purchase the product of such cultivator or processor or distributor. 42 (d) enter into any contract or agreement with any retail licensee 43 whereby such licensee agrees to confine his sales to cannabis products 44 manufactured or sold by one or more such cultivator or processors or 45 distributors. Any such contract shall be void and subject the licenses 46 of all parties concerned to revocation for cause and any applicable 47 administrative enforcement and penalties. 48 2. The provisions of this section shall not prohibit a registered 49 organization authorized pursuant to section forty of this chapter, from 50 cultivating, processing, distributing and selling adult-use cannabis 51 under this article, at facilities wholly owned and operated by such 52 registered organization, subject to any conditions, limitations or 53 restrictions established by the office. 54 3. The board shall have the authority to create rules and regulations 55 in regard to this section.S. 7509--A 95 A. 9509--A 1 § 78. Packaging, labeling, form and administration of adult-use canna- 2 bis products. 1. The board is hereby authorized to promulgate rules and 3 regulations governing the packaging, labeling, form and method of admin- 4 istration or ingestion, branding and marketing of cannabis products, 5 sold or possessed for sale in New York state. 6 2. Such regulations shall include, but not be limited to, requiring 7 that: 8 (a) packaging meets requirements similar to the federal "poison 9 prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.; 10 (b) prior to delivery or sale at a retailer, cannabis and cannabis 11 products shall be labeled according to regulations and placed in a 12 resealable, child-resistant package; and 13 (c) packages, labels, forms and products shall not be made to be 14 attractive to or target persons under the age of twenty-one. 15 3. Such regulations shall include requiring labels warning consumers 16 of any potential impact on human health resulting from the consumption 17 of cannabis products that shall be affixed to those products when sold, 18 if such labels are deemed warranted by the office and may establish 19 standardized and/or uniform packaging requirements for adult-use 20 products. 21 4. Such rules and regulations shall determine serving sizes for canna- 22 bis-infused products, active cannabis concentration per serving size, 23 and number of servings per container. Such regulations shall also 24 require a nutritional fact panel that incorporates data regarding serv- 25 ing sizes and potency thereof. 26 5. Such rules and regulations shall establish approved product types 27 and forms and establish an application and review process to determine 28 the suitability of new product types and forms, taking into consider- 29 ation the consumer and public health and safety implications of differ- 30 ent product varieties, manufacturing processes, product types and forms, 31 the means and methods of ingestion associated with specific product 32 types, and any other criteria identified by the board for consideration 33 to protect public health and safety. 34 6. The packaging, sale, labeling, marketing, branding, advertising or 35 possession by any licensee of any cannabis product not labeled or 36 offered in conformity with rules and regulations promulgated in accord- 37 ance with this section shall be grounds for the imposition of a fine, 38 and/or the suspension, revocation or cancellation of a license. Fines 39 may be imposed on a per violation, per day basis. 40 § 79. Laboratory testing. 1. Every processor of adult-use cannabis 41 shall contract with an independent laboratory permitted pursuant to 42 section one hundred twenty-nine of this chapter, to test the cannabis 43 products it produces pursuant to rules and regulations prescribed by the 44 office. The board may assign an approved testing laboratory, which the 45 processor of adult-use cannabis must use, and may establish consortia 46 with neighboring states, to inform best practices, and share data. 47 2. Adult-use cannabis processors, cooperatives and microbusinesses 48 shall make laboratory test reports available to licensed distributors 49 and retail dispensaries for all cannabis products manufactured by the 50 processor or licensee. 51 3. Licensed retail dispensaries shall maintain accurate documentation 52 of laboratory test reports for each cannabis product offered for sale to 53 cannabis consumers. Such documentation shall be made publicly available 54 by the licensed retail dispensary. 55 4. Onsite laboratory testing by licensees is permissible subject to 56 regulation; however, such testing shall not be certified by the officeS. 7509--A 96 A. 9509--A 1 and does not exempt the licensee from the requirements of quality assur- 2 ance testing at a testing laboratory pursuant to this section. 3 5. An owner of a cannabis laboratory testing permit shall not hold a 4 license, or interest in a license, in any other category within this 5 article and shall not own or have ownership interest in a registered 6 organization registered pursuant to article three of this chapter. 7 6. The office shall have the authority to require any licensee under 8 this article to submit cannabis or cannabis products to one or more 9 independent laboratories for testing and the board may promulgate regu- 10 lations related to all aspects of third-party testing and quality assur- 11 ance including but not limited to: 12 (a) minimum testing and sampling requirements; 13 (b) testing and sampling methodologies; 14 (c) testing reporting requirements; 15 (d) retesting; and 16 (e) product quarantine, hold, recall, and remediation. 17 § 80. Provisions governing the cultivation and processing of adult-use 18 cannabis. 1. Cultivation of cannabis shall comply with regulations 19 promulgated by the board governing minimum requirements. 20 2. No cultivator or processor of adult-use cannabis shall sell, or 21 agree to sell or deliver in the state any cannabis products, as the case 22 may be, except in sealed containers containing quantities in accordance 23 with size standards pursuant to rules adopted by the office. Such 24 containers shall have affixed thereto such labels or other means of 25 tracking and identification as may be required by the rules of the exec- 26 utive director. 27 3. No cultivator or processor of adult-use cannabis shall furnish or 28 cause to be furnished to any licensee, any exterior or interior sign, 29 printed, painted, electric or otherwise, except as authorized by the 30 office. The office may make such rules as it deems necessary to carry 31 out the purpose and intent of this subdivision. 32 4. The board, in conjunction with the department of environmental 33 conservation, shall promulgate all necessary rules and regulations, as 34 well as a process for approval, governing the safe production of canna- 35 bis including, but not limited to, environmental and energy standards 36 and restrictions on the use of pesticides. 37 5. No cultivator or processor of adult-use cannabis shall deliver any 38 cannabis products, except in vehicles owned and operated by such culti- 39 vator, processor, or hired and operated by such cultivator or processor 40 from a trucking or transportation company registered with the office, 41 and shall only make deliveries at the licensed premises of the purchas- 42 er. 43 6. No cultivator or processor of adult-use cannabis, including an 44 adult-use cannabis cooperative or microbusiness cultivator, may offer 45 any incentive, payment or other benefit to a licensed cannabis retail 46 dispensary in return for carrying the cultivator, processor, cooperative 47 or microbusiness cultivator's products, or preferential shelf placement. 48 7. All cannabis products shall be processed in accordance with good 49 manufacturing processes for the product category, pursuant to either 50 Part 111 or Part 117 of Title 21 of the Code of Federal Regulations, as 51 may be defined and modified by the board in regulation, which shall to 52 the extent practicable and possible, align with neighboring state 53 requirements. 54 8. No processor of adult-use cannabis shall produce any product which, 55 in the discretion of the office, is designed to appeal to anyone under 56 the age of twenty-one years.S. 7509--A 97 A. 9509--A 1 9. The use or integration of wine, beer, liquor or nicotine or any 2 other substance identified in regulation in cannabis products is prohib- 3 ited. 4 10. The board shall promulgate regulations governing the minimum 5 requirements for the secure transport of adult-use cannabis. 6 § 81. Provisions governing the distribution of adult-use cannabis. 1. 7 No distributor shall sell, or agree to sell or deliver any cannabis 8 products, as the case may be, in any container, except in a sealed pack- 9 age. Such containers shall have affixed thereto such labels as may be 10 required by the rules of the office. 11 2. No distributor shall deliver any cannabis products, except in vehi- 12 cles owned and operated by such distributor, or hired and operated by 13 such distributor from a trucking or transportation company registered 14 with the office, and shall only make deliveries at the licensed premises 15 of the purchaser. 16 3. Each distributor shall keep and maintain upon the licensed prem- 17 ises, adequate books and records of all transactions involving the busi- 18 ness transacted by such distributor, which shall show the amount of 19 cannabis products purchased by such distributor together with the names, 20 license numbers and places of business of the persons from whom the same 21 was purchased and the amount involved in such purchases, as well as the 22 amount of cannabis products sold by such distributor together with the 23 names, addresses, and license numbers of such purchasers and any other 24 information required in regulation. Each sale shall be recorded sepa- 25 rately on a numbered invoice, which shall have printed thereon the 26 number, the name of the licensee, the address of the licensed premises, 27 and the current license number and any other information required in 28 regulation. Such distributor shall deliver to the purchaser a true 29 duplicate invoice stating the name and address of the purchaser, the 30 quantity of cannabis products, description by brands and the price of 31 such cannabis products, and a true, accurate and complete statement of 32 the terms and conditions on which such sale is made. Such books, records 33 and invoices shall be kept for a period of six years and shall be avail- 34 able for inspection by any authorized representative of the office. 35 4. No distributor shall furnish or cause to be furnished to any licen- 36 see, any exterior or interior sign, printed, painted, electric or other- 37 wise, unless authorized by the office. 38 5. No distributor shall provide any discount, rebate or customer 39 loyalty program to any licensed retailer, except as otherwise allowed by 40 the office. 41 6. The board is authorized to promulgate regulations establishing a 42 minimum margin for which a distributor may mark up a cannabis product 43 for sale to a retail dispensary. Any adult-use cannabis product sold by 44 a distributor in violation of the established markup allowed in regu- 45 lation, shall be unlawful. 46 7. Each distributor shall keep and maintain upon the licensed prem- 47 ises, adequate books and records to demonstrate the distributor's actual 48 cost of doing business, using accounting standards and methods regularly 49 employed in the determination of costs for the purpose of federal income 50 tax reporting, for the total operation of the licensee. Such books, 51 records, financial statements, contracts, corporate documents, and 52 invoices shall be kept for a period of six years and shall be available 53 for inspection by any authorized representative of the office, includ- 54 ing, for use in determining the minimum markup allowed in regulation 55 pursuant to subdivision six of this section.S. 7509--A 98 A. 9509--A 1 § 82. Provisions governing adult-use cannabis retail dispensaries. 1. 2 No cannabis retail licensee shall sell or give away or cause or permit 3 or procure to be sold, delivered or given away any cannabis to any 4 person, actually or apparently, under the age of twenty-one years or any 5 visibly intoxicated person. 6 2. No cannabis retail licensee shall sell more than one ounce of 7 adult-use cannabis, or its equivalent amount as determined in regu- 8 lation, per cannabis consumer per day; nor more than five grams of 9 cannabis concentrate per cannabis consumer per day. 10 3. No cannabis retail licensee shall sell alcoholic beverages, nor 11 have or possess a license or permit to sell alcoholic beverages, on the 12 same premises where cannabis products are sold. 13 4. No sign of any kind printed, painted or electric, advertising any 14 brand shall be permitted on the exterior or interior of such premises, 15 except as permitted by the office. 16 5. No cannabis retail licensee shall sell any cannabis products to any 17 person with knowledge of, or with reasonable cause to believe, that the 18 person to whom such cannabis products are being sold, has acquired the 19 same for the purpose of peddling them from place to place, or of selling 20 or giving them away in violation of the provisions of this chapter or in 21 violation of the rules and regulations of the board. 22 6. All premises licensed under this section shall be subject to 23 reasonable inspection by any peace officer described in subdivision four 24 of section 2.10 of the criminal procedure law acting pursuant to his or 25 her special duties, or police officer or any duly authorized represen- 26 tative of the office. 27 7. No cannabis retail licensee shall be interested, directly or indi- 28 rectly, in any cultivator, processor or distributor licensed pursuant to 29 this article, by stock ownership, interlocking directors, mortgage or 30 lien on any personal or real property or by any other means. 31 8. No cannabis retail licensee shall make or cause to be made any loan 32 to any person engaged in the cultivation, processing or distribution of 33 cannabis pursuant to this article. 34 9. Each cannabis retail licensee shall designate the price of each 35 item of cannabis by attaching to or otherwise displaying immediately 36 adjacent to each such item displayed in the interior of the licensed 37 premises where sales are made a price tag, sign or placard setting forth 38 the price at which each such item is offered for sale therein. 39 10. No person licensed to sell cannabis products at retail, shall 40 allow or permit any gambling, or offer any gambling on the licensed 41 premises, or allow or permit illicit drug activity on the licensed prem- 42 ises. The use of the licensed premises or any part thereof for the sale 43 of lottery tickets, when duly authorized and lawfully conducted thereon, 44 shall not constitute gambling within the meaning of this subdivision. 45 11. If an employee of a cannabis retail licensee suspects that a 46 cannabis consumer may be abusing cannabis, such employee shall encourage 47 such cannabis consumer to seek the help of a state licensed facility or 48 program for the treatment of cannabis use disorder. Cannabis retail 49 licensees shall develop standard operating procedures and written mate- 50 rials for employees to utilize when consulting consumers for purposes of 51 this subdivision. 52 12. The board is authorized to promulgate regulations governing 53 licensed adult-use dispensing facilities, including but not limited to, 54 minimum general operating requirements, the hours of operation, size and 55 location of the licensed facility, potency and types of products offered 56 and establishing a minimum margin for which a retail dispensary mustS. 7509--A 99 A. 9509--A 1 markup a cannabis product(s) before selling to a cannabis consumer. Any 2 adult-use cannabis product sold by a retail dispensary for less than the 3 minimum markup allowed in regulation, shall be unlawful. 4 13. No adult-use retail dispensary may engage in the home delivery or 5 retail delivery of adult-use cannabis products unless they are specif- 6 ically approved and licensed to do so, or have contracted with a third- 7 party home delivery licensee. All home delivery operations must be sepa- 8 rately approved and licensed by the office and must comply with minimum 9 application, licensing and operation requirements required by the office 10 in regulation. 11 § 83. Adult-use cannabis advertising and marketing. 1. The board is 12 hereby authorized to promulgate rules and regulations governing, 13 restricting, and prohibiting various forms and content of the advertis- 14 ing and marketing of licensed adult-use cannabis cultivators, process- 15 ors, cooperatives, distributors, retailers, and any cannabis products or 16 services. 17 2. The office shall promulgate guidelines for appropriate content, 18 warnings, and means of advertising and marketing, including but not 19 limited to prohibiting advertising that: 20 (a) is false, deceptive, or misleading; 21 (b) promotes overconsumption; 22 (c) depicts consumption; 23 (d) is designed in any way to appeal to children or other minors; 24 (e) is within or is readily observed within five hundred feet of the 25 perimeter of a school grounds, playground, child care center, public 26 park, or library; 27 (f) is in public transit vehicles and stations; 28 (g) is in the form of an unsolicited internet pop-up; 29 (h) is on publicly owned or operated property; 30 (i) makes medical claims or promotes adult-use cannabis for a medical 31 or wellness purpose; 32 (j) promotes or implements discounts, coupons, or other means of sell- 33 ing adult-use cannabis products below market value or whose discount 34 would subvert local and state tax collections; 35 (k) the content and primary purpose of which is not to alert and 36 educate lawful cannabis consumers about the availability of regulated 37 adult-use cannabis and displace the illicit market but to solely promote 38 cannabis use; or 39 (l) fails to satisfy any other advertising or marketing rule or regu- 40 lations promulgated by the office related to marketing or advertising. 41 3. The office shall promulgate guidelines prohibiting all marketing 42 strategies and implementation including, but not limited to, branding, 43 packaging, labeling, location of cannabis retailers, and advertisements 44 that are designed to: 45 (a) appeal to persons under twenty-one years of age and/or at-risk 46 populations; or 47 (b) disseminate false or misleading information to customers. 48 4. The office shall promulgate guidelines requiring that: 49 (a) all advertisements and marketing accurately and legibly identify 50 the licensee responsible for its content and contain recognizable and 51 legible warnings associated with cannabis use; and 52 (b) any broadcast, cable, radio, print and digital communication 53 advertisements only be placed where the audience is reasonably expected 54 to be twenty-one years of age or older, as determined by reliable, 55 up-to-date audience composition data. The burden of proving thisS. 7509--A 100 A. 9509--A 1 requirement lies with the party that has paid for or facilitated the 2 advertisement. 3 5. The office shall establish procedures to review and enforce all 4 advertising and marketing requirements. 5 § 84. Minority, women-owned businesses and disadvantaged farmers; 6 social and economic equity plan. 1. The office shall implement a social 7 and economic equity plan that actively promotes racial, ethnic, and 8 gender diversity in the adult-use cannabis industry and prioritizes 9 applicants who qualify as a minority and women-owned business, social 10 equity applicant, or disadvantaged farmer and which positively impacts 11 areas that have been harmed through disproportionate enforcement of the 12 war on drugs. 13 2. The office shall create a social and economic equity plan which 14 promotes diversity in ownership and employment in the adult-use cannabis 15 industry and the inclusion of: 16 (a) minority-owned businesses; 17 (b) women-owned businesses; 18 (c) social equity applicants as defined in subdivision four of this 19 section; 20 (d) minority and women-owned businesses, as defined in subdivision 21 four of this section; and 22 (e) disadvantaged farmers, as defined in subdivision four of this 23 section. 24 3. (a) The social and economic equity plan implemented by the office 25 shall promote participation and hiring of qualified social and economic 26 equity applicants. These applicants shall be deemed qualified by the 27 office through criteria determined in this section and by regulation 28 promulgated hereunder. Once qualified, a social and economic equity 29 applicant shall be eligible to access all or some of this available 30 social and economic equity plan programs based on their qualification 31 criteria, which may include but not be limited to: 32 (i) priority and expedited application submission and review for 33 adult-use cannabis licenses; 34 (ii) priority or exclusive access to specific classes or categories of 35 adult-use cannabis licenses and licensed activities; 36 (iii) reduced or deferred fees for adult-use cannabis applications 37 and/or licenses; 38 (iv) priority access to the adult-use cannabis market by being the 39 first licensees allowed to commence licensed activities; 40 (v) priority access to the adult-use cannabis market through first or 41 exclusive access to license locations and geographic areas of operation; 42 (vi) access to low or zero interest small business loans for entry 43 into the adult-use cannabis market; 44 (vii) access to incubator programs pairing qualified and eligible 45 social and economic equity applicants with support in the form of coun- 46 seling services, education, small business development, and compliance 47 assistance; 48 (viii) access to cannabis workforce development and hiring initiatives 49 which incentivize hiring of qualified social and economic equity staff 50 members; and 51 (ix) any other available program or initiative developed under the 52 office's social and economic equity plan. 53 (b) The executive director shall have the ability to alter or amend 54 the social and economic equity plan, and its programs, to meet the needs 55 of qualified social and economic equity applicants and areas as the 56 industry grows and evolves.S. 7509--A 101 A. 9509--A 1 (c) Under the social and economic equity plan, the board shall also 2 have the authority to create and distribute local social and economic 3 equity impact grants to community-based organizations which are located 4 or operate in areas of disproportionate enforcement from the war on 5 drugs. The application for, and administration of social and economic 6 equity impact grants shall be determined by the office through regu- 7 lations, provided sufficient funds are available. 8 4. For the purposes of this section, the following definitions shall 9 apply: 10 (a) "Minority-owned business" shall mean a business enterprise, 11 including a sole proprietorship, partnership, limited liability company 12 or corporation that is: 13 (i) at least fifty-one percent owned by one or more minority group 14 members; 15 (ii) an enterprise in which such minority ownership is real, substan- 16 tial and continuing; 17 (iii) an enterprise in which such minority ownership has and exercises 18 the authority to control independently the day-to-day business decisions 19 of the enterprise; 20 (iv) an enterprise authorized to do business in this state and inde- 21 pendently owned and operated; and 22 (v) an enterprise that is a small business. 23 (b) "Minority group member" shall mean a United States citizen or 24 permanent resident alien who is and can demonstrate membership in one of 25 the following groups: 26 (i) black persons having origins in any of the black African racial 27 groups; 28 (ii) Hispanic persons of Mexican, Puerto Rican, Dominican, Cuban, 29 Central or South American of either Indian or Hispanic origin, regard- 30 less of race; 31 (iii) Native American or Alaskan native persons having origins in any 32 of the original peoples of North America; or 33 (iv) Asian and Pacific Islander persons having origins in any of the 34 far east countries, south east Asia, the Indian subcontinent or the 35 Pacific islands. 36 (c) "Women-owned business" shall mean a business enterprise, including 37 a sole proprietorship, partnership, limited liability company or corpo- 38 ration that is: 39 (i) at least fifty-one percent owned by one or more United States 40 citizens or permanent resident aliens who are women; and 41 (ii) an enterprise in which the ownership interest of such women is 42 real, substantial and continuing. 43 (d) A firm owned by a minority group member who is also a woman may be 44 defined as a minority-owned business, a women-owned business, or both. 45 (e) "Disadvantaged farmer" shall mean a New York state resident or 46 business enterprise, including a sole proprietorship, partnership, 47 limited liability company or corporation, that has reported at least 48 two-thirds of its federal gross income as income from farming, in at 49 least one of the five preceding tax years, and who: 50 (i) farms in a county that has greater than ten percent rate of pover- 51 ty according to the latest U.S. census bureau's american communities 52 survey; 53 (ii) has been disproportionately impacted by low commodity prices or 54 faces the loss of farmland through development or suburban sprawl; and 55 (iii) meets any other qualifications as defined in regulation by the 56 office.S. 7509--A 102 A. 9509--A 1 (f) "Social equity applicants" shall mean an applicant for licensure 2 or employment that: 3 (i) is or has been a member of a community group or resident of an 4 area that has been disproportionately impacted by the enforcement of 5 cannabis prohibition, as determined by the office in regulation; 6 (ii) has an income lower than eighty percent of the median income of 7 the county in which the applicant resides; and 8 (iii) was convicted of a marihuana-related offense prior to the effec- 9 tive date of this chapter or had a parent, guardian, child, or spouse 10 who, prior to the effective date of this chapter, was convicted of a 11 marihuana-related offense. 12 5. Licenses issued to minority and women-owned businesses or under the 13 social and economic equity plan shall not be transferable for a period 14 of two years except to qualified minority and women-owned businesses or 15 social and economic equity applicants and only upon prior written 16 approval of the executive director. 17 § 85. Regulations. The board shall make regulations to implement this 18 article. 19 ARTICLE 5 20 CANNABINOID HEMP AND HEMP EXTRACT 21 Section 90. Definitions. 22 91. Rulemaking authority. 23 92. Cannabinoid hemp processor license. 24 93. Cannabinoid hemp retailer license. 25 94. Cannabinoid license applications. 26 95. Information to be requested in applications for licenses. 27 96. Fees. 28 97. Selection criteria. 29 98. License renewal. 30 99. Form of license. 31 100. Transferability; amendment to license; change in ownership 32 or control. 33 101. Granting, suspending or revoking licenses. 34 102. Record keeping and tracking. 35 103. Packaging and labeling of cannabinoid hemp and hemp 36 extract. 37 104. Processing of cannabinoid hemp and hemp extract. 38 105. Laboratory testing. 39 106. New York hemp product. 40 107. Penalties. 41 108. Hemp workgroup. 42 109. Prohibitions. 43 110. Special use permits. 44 111. Severability. 45 § 90. Definitions. As used in this article, the following terms shall 46 have the following meanings, unless the context clearly requires other- 47 wise: 48 1. "Cannabinoid" means the phytocannabinoids found in hemp and does 49 not include synthetic cannabinoids as that term is defined in subdivi- 50 sion (g) of schedule I of section thirty-three hundred six of the public 51 health law. 52 2. "Cannabinoid hemp" means any hemp and any product processed or 53 derived from hemp, that is used for human consumption provided that when 54 such product is packaged or offered for retail sale to a consumer, it 55 shall not have a concentration of more than three-tenths of one percentS. 7509--A 103 A. 9509--A 1 delta-9 tetrahydrocannabinol or a final delta-9 tetrahydrocannabinol 2 concentration which exceeds an amount determined by the office in regu- 3 lation. 4 3. "Used for human consumption" means intended by the manufacturer or 5 distributor to be: (a) used for human consumption for its cannabinoid 6 content; or (b) used in, on or by the human body for its cannabinoid 7 content. 8 4. "Hemp" means the plant Cannabis sativa L. and any part of such 9 plant, including the seeds thereof and all derivatives, extracts, canna- 10 binoids, isomers, acids, salts, and salts of isomers, whether growing or 11 not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more 12 than three-tenths of one percent on a dry weight basis. It shall not 13 include "medical cannabis" as defined in subdivision twenty-eight of 14 section three of this chapter. 15 5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom- 16 ers, acids, salts, and salts of isomers derived from hemp, used or 17 intended for human consumption, for its cannabinoid content, with a 18 delta-9 tetrahydrocannabinol concentration of not more than an amount 19 determined by the office in regulation. For the purpose of this article, 20 hemp extract excludes (a) any food, food ingredient or food additive 21 that is generally recognized as safe pursuant to federal law; or (b) any 22 hemp extract that is not used for human consumption. Such excluded 23 substances shall not be regulated pursuant to the provisions of this 24 article but are subject to other provisions of applicable state law, 25 rules and regulations. 26 6. "License" means a license issued pursuant to this article. 27 7. "Cannabinoid hemp processor license" means a license granted by the 28 office to process, extract, pack or manufacture cannabinoid hemp or hemp 29 extract into products, whether in intermediate or final form, used for 30 human consumption. 31 8. "Processing" means extracting, preparing, treating, modifying, 32 compounding, manufacturing or otherwise manipulating cannabinoid hemp to 33 concentrate or extract its cannabinoids, or creating product, whether in 34 intermediate or final form, used for human consumption. For purposes of 35 this article, processing does not include: (a) growing, cultivation, 36 cloning, harvesting, drying, curing, grinding or trimming when author- 37 ized pursuant to article twenty-nine of the agriculture and markets law; 38 or 39 (b) mere transportation, such as by common carrier or another entity 40 or individual. 41 § 91. Rulemaking authority. The board may make regulations pursuant to 42 this article for the processing, distribution, marketing, transportation 43 and sale of cannabinoid hemp and hemp extracts used for human consump- 44 tion, which may include, but not be limited to: 45 1. Specifying forms, establishing application, reasonable adminis- 46 tration and renewal fees, or license duration; 47 2. Establishing the qualifications and criteria for licensing, as 48 authorized by law; 49 3. The books and records to be created and maintained by licensees and 50 lawful procedures for their inspection; 51 4. Any reporting requirements; 52 5. Methods and standards of processing, labeling, packaging and 53 marketing of cannabinoid hemp, hemp extract and products derived there- 54 from;S. 7509--A 104 A. 9509--A 1 6. Procedures for how cannabinoid hemp, hemp extract or ingredients, 2 additives, or products derived therefrom can be deemed as acceptable for 3 sale in the state; 4 7. Provisions governing the modes and forms of administration, includ- 5 ing inhalation; 6 8. Procedures for determining whether cannabinoid hemp, hemp extract 7 or ingredients, additives, or products derived therefrom produced 8 outside the state or within the state meet the standards and require- 9 ments of this article and can therefore be sold within the state; 10 9. Procedures for the granting, cancellation, revocation or suspension 11 of licenses, consistent with the state administrative procedures act; 12 10. Restrictions governing the advertising and marketing of cannabi- 13 noid hemp, hemp extract and products derived therefrom; and 14 11. Any other regulations necessary to implement this article. 15 § 92. Cannabinoid hemp processor license. 1. Persons processing canna- 16 binoid hemp or hemp extract used for human consumption, whether in 17 intermediate or final form, shall be required to obtain a cannabinoid 18 hemp processor license from the department. 19 2. A cannabinoid hemp processor license authorizes one or more specif- 20 ic activities related to the processing of cannabinoid hemp into 21 products used for human consumption, whether in intermediate or final 22 form, and the distribution or sale thereof by the licensee. Nothing 23 herein shall prevent a cannabinoid hemp processor from processing, 24 extracting and processing hemp products not to be used for human 25 consumption. 26 3. Persons authorized to grow hemp pursuant to article twenty-nine of 27 the agriculture and markets law are not authorized to engage in process- 28 ing of cannabinoid hemp or hemp extract without first being licensed as 29 a cannabinoid hemp processor under this article. 30 4. This article shall not apply to hemp, cannabinoid hemp, hemp 31 extracts or products derived therefrom that are not used for human 32 consumption. This article also shall not apply to hemp, cannabinoid 33 hemp, hemp extracts or products derived therefrom that have been deemed 34 generally recognized as safe pursuant to federal law. 35 5. The executive director shall have the authority to set reasonable 36 fees for such license, to limit the activities permitted by such 37 license, to establish the period during which such license is author- 38 ized, which shall be two years or more, and to make rules and regu- 39 lations necessary to implement this section. 40 6. Any person holding an active research partnership agreement with 41 the department of agriculture and markets, authorizing that person to 42 process cannabinoid hemp, shall be awarded licensure under this section, 43 provided that the research partner is actively performing research 44 pursuant to such agreement and is able to demonstrate compliance with 45 this article, as determined by the office, after notice and an opportu- 46 nity to be heard. 47 § 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi- 48 noid hemp, in final form to consumers within the state, shall be 49 required to obtain a cannabinoid hemp retailer license from the office. 50 2. The executive director shall have the authority to set reasonable 51 fees for such license, to establish the period during which such license 52 is authorized, which shall be one year or more, and to make rules and 53 regulations necessary to implement this section. 54 § 94. Cannabinoid license applications. 1. Persons shall apply for a 55 license under this article by submitting an application upon a form 56 supplied by the office, providing all the relevant requested informa-S. 7509--A 105 A. 9509--A 1 tion, verified by the applicant or an authorized representative of the 2 applicant. 3 2. A separate license shall be required for each facility at which 4 processing or retail sales are conducted; however, an applicant may 5 submit one application for separate licensure at multiple locations. 6 3. Each applicant shall remit with its application the fee for each 7 requested license, which shall be a reasonable fee. 8 § 95. Information to be requested in applications for licenses. 1. The 9 executive director may specify the manner and form in which an applica- 10 tion shall be submitted to the office for licensure under this article. 11 2. The executive director shall prescribe what relevant information 12 shall be included on an application for licensure under this article. 13 Such information may include, but is not limited to: information about 14 the applicant's identity; ownership and investment information, includ- 15 ing the corporate structure; evidence of good moral character; financial 16 statements; information about the premises to be licensed; information 17 about the activities to be licensed; and any other relevant information 18 prescribed by the executive director. 19 3. All license applications shall be signed by the applicant if an 20 individual, by a managing partner if a limited liability company, by an 21 officer if a corporation, or by all partners if a partnership. Each 22 person signing such application shall verify it as true under the penal- 23 ties of perjury. 24 4. All license applications shall be accompanied by a check, draft or 25 other forms of payment as the office may require or authorize in the 26 reasonable amount required by this article for such license. 27 5. If there be any change, after the filing of the application or the 28 granting, modification or renewal of a license, in any of the material 29 facts required to be set forth in such application, a supplemental 30 statement giving notice of such change, duly verified, shall be filed 31 with the office within ten days after such change. Failure to do so, if 32 willful and deliberate, may be grounds for revocation of the license. 33 § 96. Fees. The office may charge licensees a reasonable license fee. 34 Such fee may be based on the activities permitted by the license, the 35 amount of cannabinoid hemp or hemp extract to be processed or extracted 36 by the licensee, the gross annual receipts of the licensee for the 37 previous license period, or any other factors reasonably deemed appro- 38 priate by the office. 39 § 97. Selection criteria. 1. The applicant, if an individual or indi- 40 viduals, shall furnish evidence of the individual's good moral charac- 41 ter, and if an entity, the applicant shall furnish evidence of the good 42 moral character of the individuals who have or will have substantial 43 responsibility for the licensed or authorized activity and those in 44 control of the entity, including principals, officers, or others with 45 such control. 46 2. The applicant shall furnish evidence of the applicant's experience 47 and competency, and that the applicant has or will have adequate facili- 48 ties, equipment, process controls, and security to undertake those 49 activities for which licensure is sought. 50 3. The applicant shall furnish evidence of his, her or its ability to 51 comply with all applicable state and local laws, rules and regulations. 52 4. 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. 55 5. No license pursuant to this article may be issued to an individual 56 under the age of eighteen years.S. 7509--A 106 A. 9509--A 1 § 98. License renewal. 1. Each license, issued pursuant to this arti- 2 cle, may be renewed upon application therefor by the licensee and the 3 payment of the reasonable fee for such license as specified by this 4 article. 5 2. In the case of applications for renewals, the office may dispense 6 with the requirements of such statements as it deems unnecessary in view 7 of those contained in the application made for the original license. 8 3. The office shall provide an application for renewal of any license 9 issued under this article not less than ninety days prior to the expira- 10 tion of the current license. 11 4. The office may only issue a renewal license upon receipt of the 12 specified renewal application and renewal fee from a licensee if, in 13 addition to the selection criteria set out in this article, the 14 licensee's license is not under suspension and has not been revoked. 15 § 99. Form of license. Licenses issued pursuant to this article shall 16 specify: 17 1. The name and address of the licensee; 18 2. The activities permitted by the license; 19 3. The land, buildings and facilities that may be used for the 20 licensed activities of the licensee; 21 4. A unique license number issued by the office to the licensee; and 22 5. Such other information as the office shall deem necessary to assure 23 compliance with this chapter. 24 § 100. Transferability; amendment to license; change in ownership or 25 control. 1. Licenses issued under this article are not transferable, 26 absent written consent of the office. 27 2. Upon application of a licensee, a license may be amended to add or 28 delete permitted activities. 29 3. A license shall become void by a change in ownership, substantial 30 corporate change or change of location without prior written approval of 31 the office. The board may make regulations allowing for certain types of 32 changes in ownership without the need for prior written approval. 33 § 101. Granting, suspending or revoking licenses. After due notice and 34 an opportunity to be heard, which process shall be established by rules 35 and regulations, the office may decline to grant a new license, impose 36 conditions or limits with respect to the grant of a license, modify an 37 existing license or decline to renew a license, and may suspend or 38 revoke a license already granted after due notice and an opportunity to 39 be heard, as established by rules and regulations, whenever the execu- 40 tive director finds that: 41 1. A material statement contained in an application is or was false or 42 misleading; 43 2. The applicant or licensee, or a person in a position of management 44 and control thereof or of the licensed activity, does not have good 45 moral character, necessary experience or competency, adequate facili- 46 ties, equipment, process controls, or security to process, distribute, 47 transport or sell cannabinoid hemp, hemp extract or products derived 48 therefrom; 49 3. After appropriate notice and opportunity, the applicant or licensee 50 has failed or refused to produce any records or provide any information 51 required by this article or the regulations promulgated pursuant there- 52 to; 53 4. The licensee has conducted activities outside of those activities 54 permitted on its license; or 55 5. The applicant or licensee, or any officer, director, partner, or 56 any other person exercising any position of management or control there-S. 7509--A 107 A. 9509--A 1 of or of the licensed activity has willfully failed to comply with any 2 of the provisions of this article or regulations under it and other laws 3 of this state applicable to the licensed activity. 4 § 102. Record keeping and tracking. Every licensee shall keep, in such 5 form as the executive director may direct, such relevant records as may 6 be required pursuant to regulations under this article. 7 § 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1. 8 Cannabinoid hemp processors shall be required to provide appropriate 9 label warning to consumers, and restricted from making unapproved label 10 claims, as determined by the office, concerning the potential impact on 11 or benefit to human health resulting from the use of cannabinoid hemp, 12 hemp extract and products derived therefrom for human consumption, which 13 labels shall be affixed to those products when sold, pursuant to rules 14 and regulations that the office may adopt. 15 2. The office may, by rules and regulations, require processors to 16 establish a code, including, but not limited to QR code, for labels and 17 establish methods and procedures for determining, among other things, 18 serving sizes or dosages for cannabinoid hemp, hemp extract and products 19 derived therefrom, active cannabinoid concentration per serving size, 20 number of servings per container, and the growing region, state or coun- 21 try of origin if not from the United States. Such rules and regulations 22 may require an appropriate fact panel that incorporates data regarding 23 serving sizes and potency thereof. 24 3. The packaging, sale, or possession of products derived from canna- 25 binoid hemp or hemp extract used for human consumption not labeled or 26 offered in conformity with regulations under this section shall be 27 grounds for the seizure or quarantine of the product, the imposition of 28 a civil penalty against a processor or retailer, and the suspension, 29 revocation or suspension of a license, in accordance with this article. 30 § 104. Processing of cannabinoid hemp and hemp extract. 1. No process- 31 or shall sell or agree to sell or deliver in the state any cannabinoid 32 hemp, hemp extract or product derived therefrom, used for human consump- 33 tion, except in sealed containers containing quantities in accordance 34 with size standards pursuant to rules adopted by the office. Such 35 containers shall have affixed thereto such labels as may be required by 36 the rules of the office. 37 2. Processors shall take such steps necessary to ensure that the 38 cannabinoid hemp or hemp extract used in their processing operation has 39 only been grown with pesticides that are registered by the department of 40 environmental conservation or that specifically meet the United States 41 environmental protection agency registration exemption criteria for 42 minimum risk, used in compliance with rules, regulations, standards and 43 guidelines issued by the department of environmental conservation for 44 pesticides. 45 3. All cannabinoid hemp, hemp extract and products derived therefrom 46 used for human consumption shall be extracted and processed in accord- 47 ance with good manufacturing processes for the product category pursuant 48 to Part 117 or Part 111 of title 21 of the code of federal regulations, 49 as may be defined, modified and decided upon by the office, provided 50 that such rules shall be in conformity to the extent practicable with 51 neighboring states. 52 4. As necessary to protect human health, the office shall have the 53 authority to: (a) regulate and prohibit specific ingredients, excipients 54 or methods used in processing cannabinoid hemp, hemp extract and 55 products derived therefrom; and (b) prohibit, or expressly allow,S. 7509--A 108 A. 9509--A 1 certain products or product classes derived from cannabinoid hemp or 2 hemp extract, to be processed. 3 § 105. Laboratory testing. Every cannabinoid hemp processor shall 4 contract with an independent commercial laboratory to test the hemp 5 extract and products produced by the licensed processor. The executive 6 director, in consultation with the commissioner of the department of 7 health, shall establish the necessary qualifications or certifications 8 required for such laboratories used by licensees. The board is author- 9 ized to issue rules and regulations consistent with this article estab- 10 lishing the testing required, the reporting of testing results and the 11 form for reporting such laboratory testing results. The office has 12 authority to require licensees to submit any cannabinoid hemp, hemp 13 extract or product derived therefrom, processed or offered for sale 14 within the state, for testing. This section shall not obligate the 15 office, in any way, to perform any testing on hemp, cannabinoid hemp, 16 hemp extract or product derived therefrom. The office shall be author- 17 ized to establish consortia or cooperative agreements with neighboring 18 states to effectuate this section. 19 § 106. New York hemp product. The office may establish and adopt offi- 20 cial grades and standards for cannabinoid hemp, hemp extract and 21 products derived therefrom, as he or she may deem advisable, which are 22 produced for sale in this state and, from time to time, may amend or 23 modify such grades and standards. 24 § 107. Penalties. Notwithstanding the provision of any law to the 25 contrary, the failure to comply with a requirement of this article, or a 26 regulation thereunder, may be punishable by a civil penalty of not more 27 than one thousand dollars for a first violation; not more than five 28 thousand dollars for a second violation within three years; and not more 29 than ten thousand dollars for a third violation and each subsequent 30 violation thereafter, within three years. 31 § 108. Hemp workgroup. The executive director, in consultation with 32 the commissioner of the department of agriculture and markets and the 33 commissioner of health, may appoint a New York state hemp and hemp 34 extract workgroup, composed of growers, researchers, producers, process- 35 ors, manufacturers and trade associations, to make recommendations for 36 the industrial hemp and cannabinoid hemp programs, state, regional, and 37 federal policies and policy initiatives, and opportunities for the 38 promotion and marketing of cannabinoid hemp and hemp extract as consist- 39 ent with federal and state laws, rules and regulations. 40 § 109. Prohibitions. 1. Except as authorized by the United States food 41 and drug administration, the processing of cannabinoid hemp or hemp 42 extract used for human consumption is prohibited within the state unless 43 the processor is licensed under this article. 44 2. Cannabinoid hemp and hemp extracts used for human consumption and 45 grown or processed outside the state shall not be distributed or sold at 46 retail within the state, unless they meet all standards established for 47 cannabinoid hemp under state law and regulations. 48 3. The retail sale of cannabinoid hemp is prohibited in this state 49 unless the retailer is licensed under this article. 50 § 110. Special use permits. The office shall have the authority to 51 issue temporary permits for carrying on any activity related to cannabi- 52 noid hemp, hemp extract and products derived therefrom, licensed under 53 this article. The executive director may set reasonable fees for such 54 permits, to establish the periods during which such permits are valid, 55 and to make rules and regulations to implement this section.S. 7509--A 109 A. 9509--A 1 § 111. Severability. If any provision of this article or the applica- 2 tion thereof to any person or circumstances is held invalid, such inva- 3 lidity shall not affect other provisions or applications of this article 4 which can be given effect without the invalid provision or application, 5 and to this end the provisions of this article are declared to be sever- 6 able. 7 ARTICLE 6 8 GENERAL PROVISIONS 9 Section 125. General prohibitions and restrictions. 10 126. License to be confined to premises licensed; premises for 11 which no license shall be granted; transporting cannabis. 12 127. Protections for the use of cannabis; unlawful discrimi- 13 nations prohibited. 14 128. Registrations and licenses. 15 129. Laboratory testing permit. 16 130. Special use permits. 17 132. Municipal control and preemption. 18 133. Office to be necessary party to certain proceedings. 19 134. Penalties for violation of this chapter. 20 135. Revocation of registrations, licenses and permits for 21 cause; procedure for revocation or cancellation. 22 136. Lawful actions pursuant to this chapter. 23 137. Review by courts. 24 138. Illicit cannabis. 25 139. Injunction for unlawful manufacture, sale, distribution, or 26 consumption of cannabis. 27 140. Persons forbidden to traffic cannabis; certain officials 28 not to be interested in manufacture or sale of cannabis 29 products. 30 141. Access to criminal history information through the division 31 of criminal justice services. 32 § 125. General prohibitions and restrictions. 1. No person shall 33 cultivate, process, or distribute for sale or sell at wholesale or 34 retail any cannabis, adult-use cannabis product, medical cannabis or 35 cannabinoid hemp within the state without obtaining the appropriate 36 registration, license, or permit therefor required by this chapter. 37 2. No registered organization, licensee, or permittee shall sell, or 38 agree to sell or deliver in this state any cannabis or cannabinoid hemp 39 for the purposes of resale to any person who is not duly registered, 40 licensed or permitted pursuant to this chapter to sell such product, at 41 wholesale or retail, as the case may be, at the time of such agreement 42 and sale. 43 3. No registered organization, licensee, or permittee shall employ, or 44 permit to be employed, or shall allow to work, on any premises regis- 45 tered or licensed for retail sale hereunder, any person under the age of 46 eighteen years in any capacity where the duties of such person require 47 or permit such person to sell, dispense or handle cannabis. 48 4. No registered organization, licensee, or permittee shall sell, 49 deliver or give away, or cause, permit or procure to be sold, delivered 50 or given away any adult-use cannabis, cannabis product, medical cannabis 51 or cannabinoid hemp on credit unless authorized by the executive direc- 52 tor; except that a registered organization, licensee or permittee may 53 accept third party credit cards for the sale of any cannabis, cannabis 54 product, medical cannabis or cannabinoid hemp for which it is regis- 55 tered, licensed or permitted to dispense or sell to patients or cannabisS. 7509--A 110 A. 9509--A 1 consumers. This includes, but is not limited to, any consignment sale of 2 any kind. 3 5. No registered organization, licensee, or permittee shall cease to 4 be operated as a bona fide or legitimate premises within the contem- 5 plation of the registration, license, or permit issued for such prem- 6 ises, as determined within the judgment of the office. 7 6. No registered organization, licensee, or permittee shall refuse, 8 nor any person holding a registration, license, or permit refuse, nor 9 any officer or director of any corporation or organization holding a 10 registration, license, or permit refuse, to appear and/or testify under 11 oath at an inquiry or hearing held by the office, with respect to any 12 matter bearing upon the registration, license, or permit, the conduct of 13 any people at the licensed premises, or bearing upon the character or 14 fitness of such registrant, licensee, or permittee to continue to hold 15 any registration, license, or permit. Nor shall any of the above offer 16 false testimony under oath at such inquiry or hearing. 17 7. No registered organization, licensee, or permittee shall engage, 18 participate in, or aid or abet any violation or provision of this chap- 19 ter, or the rules or regulations of the office. 20 8. The proper conduct of registered, licensed, or permitted premises 21 is essential to the public interest. Failure of a registered organiza- 22 tion, licensee, or permittee to exercise adequate supervision over the 23 registered, licensed, or permitted location poses a substantial risk not 24 only to the objectives of this chapter but imperils the health, safety, 25 and welfare of the people of this state. It shall be the obligation of 26 each person registered, licensed, or permitted under this chapter to 27 ensure that a high degree of supervision is exercised over any and all 28 conduct at any registered, licensed, or permitted location at any and 29 all times in order to safeguard against abuses of the privilege of being 30 registered, licensed, or permitted, as well as other violations of law, 31 statute, rule, or regulation. Persons registered, licensed, or permitted 32 shall be held strictly accountable for any and all violations that occur 33 upon any registered, licensed, or permitted premises, and for any and 34 all violations committed by or permitted by any manager, agent or 35 employee of such registered, licensed, or permitted person. 36 9. It shall be unlawful for any person, partnership or corporation 37 operating a place for profit or pecuniary gain, with a capacity for the 38 assemblage of twenty or more persons to permit a person or persons to 39 come to the place of assembly for the purpose of cultivating, process- 40 ing, distributing, or retail distribution or sale of cannabis on said 41 premises. This includes, but is not limited, to, cannabis that is either 42 provided by the operator of the place of assembly, his agents, servants 43 or employees, or cannabis that is brought onto said premises by the 44 person or persons assembling at such place, unless an appropriate regis- 45 tration, license, or permit has first been obtained from the office of 46 cannabis management by the operator of said place of assembly. 47 10. As it is a privilege under the law to be registered, licensed, or 48 permitted to cultivate, process, distribute, traffic, or sell cannabis, 49 the office may impose any such further restrictions upon any registrant, 50 licensee, or permittee in particular instances as it deems necessary to 51 further state policy and best serve the public interest. A violation or 52 failure of any person registered, licensed, or permitted to comply with 53 any condition, stipulation, or agreement, upon which any registration, 54 license, or permit was issued or renewed by the office shall subject the 55 registrant, licensee, or permittee to suspension, cancellation, revoca- 56 tion, and/or civil penalties as determined by the office.S. 7509--A 111 A. 9509--A 1 11. No adult-use cannabis or medical cannabis may be imported to, or 2 exported out of, New York state by a registered organization, licensee 3 or person holding a license and/or permit pursuant to this chapter, 4 until such time as it may become legal to do so under federal law. 5 Should it become legal to do so under federal law, the board is granted 6 the power to promulgate such rules and regulations as it deems necessary 7 to protect the public and the policy of the state. 8 12. No registered organization, licensee or any of its agents, serv- 9 ants or employees shall peddle any cannabis product, medical cannabis or 10 cannabinoid hemp from house to house by means of a truck or otherwise, 11 where the sale is consummated and delivery made concurrently at the 12 residence or place of business of a cannabis consumer. This subdivision 13 shall not prohibit the delivery by a registered organization to certi- 14 fied patients or their designated caregivers, pursuant to article three 15 of this chapter. 16 13. No licensee shall employ any canvasser or solicitor for the 17 purpose of receiving an order from a certified patient, designated care- 18 giver or cannabis consumer for any cannabis product, medical cannabis or 19 cannabinoid hemp at the residence or place of business of such patient, 20 caregiver or consumer, nor shall any licensee receive or accept any 21 order, for the sale of any cannabis product, medical cannabis or canna- 22 binoid hemp which shall be solicited at the residence or place of busi- 23 ness of a patient, caregiver or consumer. This subdivision shall not 24 prohibit the solicitation by a distributor of an order from any licensee 25 at the licensed premises of such licensee. 26 14. No premises registered, licensed, or permitted by the office 27 shall: 28 (a) permit or allow any gambling on the premises; 29 (b) permit or allow the premises to become disorderly; 30 (c) permit or allow the use, by any person, of any fireworks or other 31 pyrotechnics on the premises; or 32 (d) permit or allow to appear as an entertainer, on any part of the 33 premises registered, licensed, or permitted, any person under the age of 34 eighteen years. 35 § 126. License to be confined to premises licensed; premises for which 36 no license shall be granted; transporting cannabis. 1. A registration, 37 license, or permit issued to any person, pursuant to this chapter, for 38 any registered, licensed, or permitted premises shall not be transfera- 39 ble to any other person, to any other location or premises, or to any 40 other building or part of the building containing the licensed premises 41 except in the discretion of the office. All privileges granted by any 42 registration, license, or permit shall be available only to the person 43 therein specified, and only for the premises licensed and no other 44 except if authorized by the office. Provided, however, that the 45 provisions of this section shall not be deemed to prohibit an applica- 46 tion or request for approval for a registration or license as provided 47 for in this chapter. A violation of this section shall subject the 48 registration, license, or permit to revocation for cause. 49 2. Where a registration or license for premises has been revoked, the 50 office in its discretion may refuse to accept an application from, or 51 issue a registration, license, or permit under this chapter to, any 52 individual, business, or entity connected to the revoked registration or 53 license, or for such premises or for any part of the building containing 54 such premises and connected therewith. 55 3. In determining whether to issue such a proscription against grant- 56 ing any registration, license, or permit for such five-year period, inS. 7509--A 112 A. 9509--A 1 addition to any other factors deemed relevant to the office, the office 2 shall, in the case of a license revoked due to the illegal sale of 3 cannabis to a minor, determine whether the proposed subsequent licensee 4 has obtained such premises through an arm's length transaction, and, if 5 such transaction is not found to be an arm's length transaction, the 6 office shall deny the issuance of such license. 7 4. For purposes of this section, "arm's length transaction" shall mean 8 a sale of a fee of all undivided interests in real property, lease, 9 management agreement, or other agreement giving the applicant control 10 over the cannabis at the premises, or any part thereof, in the open 11 market, between an informed and willing buyer and seller where neither 12 is under any compulsion to participate in the transaction, unaffected by 13 any unusual conditions indicating a reasonable possibility that the sale 14 was made for the purpose of permitting the original licensee to avoid 15 the effect of the revocation. The following sales shall be presumed not 16 to be arm's length transactions unless adequate documentation is 17 provided demonstrating that the sale, lease, management agreement, or 18 other agreement giving the applicant control over the cannabis at the 19 premises, was not conducted, in whole or in part, for the purpose of 20 permitting the original licensee to avoid the effect of the revocation: 21 (a) a sale between relatives; 22 (b) a sale between related companies or partners in a business; or 23 (c) a sale, lease, management agreement, or other agreement giving the 24 applicant control over the cannabis at the premises, affected by other 25 facts or circumstances that would indicate that the sale, lease, manage- 26 ment agreement, or other agreement giving the applicant control over the 27 cannabis at the premises, is entered into for the primary purpose of 28 permitting the original licensee to avoid the effect of the revocation. 29 5. No registered organization, licensee or permittee shall transport 30 cannabis products or medical cannabis except in vehicles owned and oper- 31 ated by such registered organization, licensee or permittee, or hired 32 and operated by such registered organization, licensee or permittee from 33 a trucking or transportation company permitted and registered with the 34 office. 35 6. No common carrier or person operating a transportation facility in 36 this state, other than the United States government, shall receive for 37 transportation or delivery within the state any cannabis products or 38 medical cannabis unless the shipment is accompanied by copy of a bill of 39 lading, or other document, showing the name and address of the consig- 40 nor, the name and address of the consignee, the date of the shipment, 41 and the quantity and kind of cannabis products or medical cannabis 42 contained therein. 43 § 127. Protections for the use of cannabis; unlawful discriminations 44 prohibited. 1. No person, registered organization, licensee or permit- 45 tee, or agent or contractor of a registered organization, licensee or 46 permittee shall be subject to arrest, prosecution, or penalty in any 47 manner, or denied any right or privilege, including but not limited to 48 civil liability or disciplinary action by a business or occupational or 49 professional licensing board or office, solely for conduct permitted 50 under this chapter. For the avoidance of doubt, the appellate division 51 of the supreme court of the state of New York, and any disciplinary or 52 character and fitness committees established by them are occupational 53 and professional licensing boards within the meaning of this section. 54 State or local law enforcement agencies shall not cooperate with or 55 provide assistance to the government of the United States or any agency 56 thereof in enforcing the federal controlled substances act, 21 U.S.C. etS. 7509--A 113 A. 9509--A 1 seq., solely for actions consistent with this chapter, except pursuant 2 to an order of a court of competent jurisdiction. 3 2. No school or landlord may refuse to enroll or lease to and may not 4 otherwise penalize a person solely for conduct allowed under this chap- 5 ter, except as exempted: 6 (a) if failing to do so would cause the school or landlord to lose a 7 monetary or licensing related benefit under federal law or regulations; 8 (b) if the institution has adopted a code of conduct prohibiting 9 cannabis use on the basis of religious belief; or 10 (c) if a property is registered with the New York smoke-free housing 11 registry, it is not required to permit the smoking of cannabis products 12 on its premises. 13 3. For the purposes of medical care, including organ transplants, a 14 certified patient's authorized use of medical cannabis must be consid- 15 ered the equivalent of the use of any other medication under the direc- 16 tion of a practitioner and does not constitute the use of an illicit 17 substance or otherwise disqualify a registered qualifying patient from 18 medical care. 19 4. An employer may implement policies prohibiting the use or 20 possession of cannabis in accordance with section two hundred one-d of 21 the labor law, provided such policies are in writing as part of an 22 established workplace policy, uniformly applied to all employees, and 23 the employer gives prior written notice of such policies to employees. 24 5. An employer may take disciplinary or adverse employment action 25 against an employee, including termination of employment, for violating 26 an established workplace policy adopted under subdivision four of this 27 section, or if the results of a drug test administered in accordance 28 with applicable state and local law demonstrate that the employee was 29 impaired by or under the influence of cannabis while in the workplace or 30 during the performance of work. For the purposes of this subdivision, a 31 drug test that solely yields a positive result for cannabis metabolites 32 shall not be construed as proof that an employee is under the influence 33 of or impaired by cannabis unless the test yields a positive result for 34 active tetrahydrocannabinol, delta-9-tetrahydrocannabinol, delta-8-tet- 35 rahydrocannabinol, or other active cannabinoid found in cannabis which 36 causes impairment. 37 6. Nothing in this chapter permits any person to undertake any task 38 under the influence of cannabis when doing so would constitute negli- 39 gence or professional malpractice, jeopardize workplace safety, or to 40 operate, navigate or be in actual physical control of any motor vehicle 41 or other transport vehicle, aircraft, motorboat, machinery or equipment, 42 or firearms under the influence of cannabis. 43 7. A person currently under parole, probation or other state super- 44 vision, or released on bail awaiting trial may not be punished or other- 45 wise penalized for conduct allowed under this chapter. 46 § 128. Registrations and licenses. 1. No registration or license 47 shall be transferable or assignable except that notwithstanding any 48 other provision of law, the registration or license of a sole proprietor 49 converting to corporate form, where such proprietor becomes the sole 50 stockholder and only officer and director of such new corporation, may 51 be transferred to the subject corporation if all requirements of this 52 chapter remain the same with respect to such registration or license as 53 transferred and, further, the registered organization or licensee shall 54 transmit to the office, within ten days of the transfer of license 55 allowable under this subdivision, on a form prescribed by the office, 56 notification of the transfer of such license.S. 7509--A 114 A. 9509--A 1 2. No registration or license shall be pledged or deposited as collat- 2 eral security for any loan or upon any other condition; and any such 3 pledge or deposit, and any contract providing therefor, shall be void. 4 3. Licenses issued under this chapter shall contain, in addition to 5 any further information or material to be prescribed by the rules of the 6 office, the following information: 7 (a) name of the person to whom the license is issued; 8 (b) kind of license and what kind of traffic in cannabis is thereby 9 permitted; 10 (c) description by street and number, or otherwise, of licensed prem- 11 ises; and 12 (d) a statement in substance that such license shall not be deemed a 13 property or vested right, and that it may be revoked at any time pursu- 14 ant to law. 15 § 129. Laboratory testing permit. 1. The executive director, in 16 consultation with the commissioner of health, shall approve and permit 17 one or more independent cannabis testing laboratories to test medical 18 cannabis, adult-use cannabis and/or cannabinoid hemp. 19 2. To be permitted as an independent cannabis laboratory, a laboratory 20 must apply to the office, on a form and in a manner prescribed by the 21 office, and must demonstrate the following to the satisfaction of the 22 executive director: 23 (a) the owners and directors of the laboratory are of good moral char- 24 acter; 25 (b) the laboratory and its staff has the skills, resources and exper- 26 tise needed to accurately and consistently perform testing required for 27 adult-use cannabis, medical cannabis and/or cannabinoid hemp; 28 (c) the laboratory has in place and will maintain adequate policies, 29 procedures, and facility security to ensure proper: collection, label- 30 ing, accessioning, preparation, analysis, result reporting, disposal and 31 storage of adult-use cannabis, medical cannabis and/or cannabinoid hemp; 32 (d) the laboratory is physically located in New York state except for 33 laboratories only testing cannabinoid hemp or as authorized in regu- 34 lation; and 35 (e) the laboratory meets the requirements prescribed by this chapter 36 and by regulation. 37 3. The owner of a laboratory testing permit under this section shall 38 not hold a registration or license in any category of this chapter and 39 shall not have any direct or indirect ownership interest in such regis- 40 tered organization or licensee. No board member, officer, manager, 41 owner, partner, principal stakeholder or member of a registered organ- 42 ization or licensee under this chapter, or such person's immediate fami- 43 ly member, shall have an interest or voting rights in any laboratory 44 testing permittee. 45 4. The office shall require that the permitted laboratory report test- 46 ing results to the office in a manner, form and timeframe as determined 47 by the executive director. 48 5. The board is authorized to promulgate regulations, requiring 49 permitted laboratories to perform certain tests and services. 50 6. The executive director is authorized to enter into contracts or 51 memoranda of understanding with any other state for the purposes of 52 aligning laboratory testing requirements or establishing best practices 53 in testing of cannabis. 54 § 130. Special use permits. The office is hereby authorized to issue 55 the following kinds of permits for carrying on activities consistent 56 with the policy and purpose of this chapter with respect to cannabis.S. 7509--A 115 A. 9509--A 1 The executive director has the authority to set fees for all permits 2 issued pursuant to this section, to establish the periods during which 3 permits are authorized. 4 1. Industrial cannabis permit - to purchase cannabis for use in the 5 manufacture and sale of any of the following, when such cannabis is not 6 otherwise suitable for consumption purposes, namely: (a) apparel, ener- 7 gy, paper, and tools; (b) scientific, chemical, mechanical and indus- 8 trial products; or (c) any other industrial use as determined by the 9 executive director in regulation. 10 2. Nursery permit - to produce clones, immature plants, seeds, and 11 other agricultural products used specifically for the planting, propa- 12 gation, and cultivation of cannabis, and to sell such to licensed 13 adult-use cultivators, registered organizations, and certified patients 14 or their designated caregivers. 15 3. Solicitor's permit - to offer for sale or to solicit orders for the 16 sale of any cannabis products and/or medical cannabis, as a represen- 17 tative of a registered organization or licensee under this chapter. 18 4. Broker's permit - to act as a broker in the purchase and sale of 19 cannabis products and/or medical cannabis for a fee or commission, for 20 or on behalf of a person authorized to cultivate, process, distribute or 21 dispense cannabis products, medical cannabis or hemp cannabis within the 22 state. 23 5. Trucking permit - to allow for the trucking or transportation of 24 cannabis products and/or medical cannabis by a person other than a 25 registered organization or licensee under this chapter. 26 6. Warehouse permit - to allow for the storage of cannabis, cannabis 27 products, or medical cannabis at a location not otherwise registered or 28 licensed by the office. 29 7. Delivery permit - to authorize licensed adult-use cannabis dispen- 30 saries or third-parties to deliver adult-use cannabis and cannabis 31 products directly to cannabis consumers. 32 8. Temporary retail cannabis permit - to authorize the retail sale of 33 adult-use cannabis to cannabis consumers, for a limited purpose or dura- 34 tion. 35 9. Caterer's permit - to authorize the service of cannabis products at 36 a function, occasion or event in a hotel, restaurant, club, ballroom or 37 other premises, which shall authorize within the hours fixed by the 38 office, during which cannabis may lawfully be sold or served on the 39 premises in which such function, occasion or event is held. 40 10. Packaging permit - to authorize a licensed cannabis distributor to 41 sort, package, label and bundle cannabis products from one or more 42 registered organizations or licensed processors, on the premises of the 43 licensed cannabis distributor or at a warehouse for which a permit has 44 been issued under this section. 45 11. Miscellaneous permits - to purchase, receive or sell cannabis, 46 cannabis products or medical cannabis, or receipts, certificates, 47 contracts or other documents pertaining to cannabis, cannabis products, 48 or medical cannabis, or to provide specialized or certified ancillary 49 services to support the implementation and purpose of this chapter, in 50 cases not expressly provided for by this chapter, when in the judgment 51 of the office it would be appropriate and consistent with the policy and 52 purpose of this chapter. 53 § 132. Municipal control and preemption. 1. The provisions of article 54 four of this chapter, authorizing the cultivation, processing, distrib- 55 ution and sale of adult-use cannabis to cannabis consumers, shall not be 56 applicable to a county, or city having a population of one hundred thou-S. 7509--A 116 A. 9509--A 1 sand or more residents, which adopts a local law, ordinance or resol- 2 ution by a majority vote of its governing body, to completely prohibit 3 the establishment or operation of one or more types of licenses 4 contained in article four of this chapter, within the jurisdiction of 5 such county or city. 6 2. Except as provided for in subdivision one of this section, all 7 counties, towns, cities and villages are hereby preempted from adopting 8 any rule, ordinance, regulation or prohibition pertaining to the opera- 9 tion or licensure of registered organizations, adult-use cannabis 10 licenses or cannabinoid hemp licenses. However, counties, cities, towns 11 and villages, as applicable, may pass ordinances or regulations govern- 12 ing the hours of operation and location of licensed adult-use cannabis 13 retail dispensaries, provided such ordinances or regulations do not make 14 the operation of such licensed retail dispensaries unreasonably imprac- 15 ticable. 16 3. Local rules, ordinances, regulations or prohibitions enacted by a 17 county, city, town, or village shall not require an adult-use cannabis 18 applicant or licensee to enter into a community host agreement or pay 19 any consideration to the municipality other than reasonable zoning and 20 permitting fees. 21 4. Notwithstanding subdivision one of this section, adult-use canna- 22 bis, medical cannabis and cannabinoid hemp farming and farm operations, 23 on land located within an agricultural district, shall be deemed an 24 approved activity under the relevant county, city, town, or village land 25 use or zoning ordinances, rules, or regulations, inclusive of all neces- 26 sary ancillary farm operations as permitted by license pursuant to this 27 chapter. 28 § 133. Office to be necessary party to certain proceedings. The 29 office shall be made a party to all actions and proceedings affecting in 30 any manner the possession, ownership or transfer of a registration, 31 license or permit to operate within a municipality; to all injunction 32 proceedings; and to all other civil actions or proceedings which in any 33 manner affect the enjoyment of the privileges or the operation of the 34 restrictions provided for in this chapter. 35 § 134. Penalties for violation of this chapter. 1. Any person who 36 cultivates for sale or sells cannabis, cannabis products, medical canna- 37 bis or cannabinoid hemp without having an appropriate registration, 38 license or permit therefor, or whose registration, license, or permit 39 has been revoked, surrendered or cancelled, upon first conviction there- 40 of shall be guilty of a misdemeanor, punishable by a fine not more than 41 five thousand dollars per violation, per day, and upon second conviction 42 thereof shall be guilty of a class A misdemeanor punishable by a fine 43 not more than ten thousand dollars per violation, per day, or a sentence 44 of imprisonment not to exceed thirty days and upon all subsequent 45 convictions thereof shall be an E felony punishable by a fine not more 46 than twenty-five thousand dollars per violation, per day or a sentence 47 of imprisonment not to exceed one year. 48 2. Any registered organization or licensee, whose registration or 49 license has been suspended pursuant to the provisions of this chapter, 50 who sells cannabis, cannabis products, medical cannabis or cannabinoid 51 hemp during the suspension period, upon conviction thereof shall be 52 guilty of an A misdemeanor, punishable punished by a fine of not more 53 than five thousand dollars per violation, per day. 54 3. Any person who shall make any false statement in the application 55 for or renewal of a registration, license or a permit under this chapterS. 7509--A 117 A. 9509--A 1 shall be guilty of a misdemeanor, and upon conviction thereof shall be 2 punishable by a fine of not more than five thousand dollars. 3 4. Any violation by any person of any provision of this chapter for 4 which no punishment or penalty is otherwise provided shall be a misde- 5 meanor. 6 5. Nothing in this section shall prohibit the office from suspending, 7 revoking, or denying a license, permit, registration, or application in 8 addition to the penalties prescribed herein. 9 § 135. Revocation of registrations, licenses and permits for cause; 10 procedure for revocation or cancellation. 1. Any registration, license 11 or permit issued pursuant to this chapter may be revoked, cancelled, 12 suspended and/or subjected to the imposition of a civil penalty for 13 cause, and must be revoked for the following causes: 14 (a) the registered organization, licensee, permittee or his or her 15 agent or employee has sold any illegal cannabis on the premises regis- 16 tered, licensed or permitted; 17 (b) for transferring, assigning or hypothecating a registration, 18 license or permit without prior written approval of the office; 19 (c) for failing to follow testing requirements prescribed under this 20 chapter or falsifying testing results; 21 (d) for knowingly distributing cannabis products to persons under 22 twenty-one years of age; 23 (e) for diverting, inverting or trafficking in cannabis to or from an 24 illegal and unlicensed, registered, or permitted source in violation of 25 this chapter; or 26 (f) for any other violation established in regulation which poses an 27 imminent and substantial threat to public health, public safety, or the 28 integrity of the state's cannabis regulatory structure. 29 2. Notwithstanding the issuance of a registration, license or permit 30 by way of renewal, the office may revoke, cancel or suspend such regis- 31 tration, license or permit and/or may impose a civil penalty against any 32 holder of such registration, license or permit, as prescribed by this 33 section, for causes or violations occurring during a license period 34 which occurred prior to the issuance of such registration, license or 35 permit. 36 3. (a) As used in this section, the term "for cause" shall also 37 include the existence of a sustained and continuing pattern of miscon- 38 duct, failure to adequately prevent diversion or disorder on or about 39 the registered, licensed or permitted premises, or in the area in front 40 of or adjacent to the registered or licensed premises, or in any parking 41 lot provided by the registered organization or licensee for use by 42 registered organization or licensee's patrons, which, in the judgment of 43 the office, adversely affects or tends to affect the protection, health, 44 welfare, safety, or repose of the inhabitants of the area in which the 45 registered or licensed premises is located, or results in the licensed 46 premises becoming a focal point for police attention, or is offensive to 47 public decency. 48 (b) (i) As used in this section, the term "for cause" shall also 49 include deliberately misleading the authority: 50 (A) as to the nature and character of the business to be operated by 51 the registered organization, licensee or permittee; or 52 (B) by substantially altering the nature or character of such business 53 during the registration or licensing period without seeking appropriate 54 approvals from the office. 55 (ii) As used in this subdivision, the term "substantially altering the 56 nature or character" of such business shall mean any significant alter-S. 7509--A 118 A. 9509--A 1 ation in the scope of business activities conducted by a registered 2 organization, licensee or permittee that would require obtaining an 3 alternate form of registration, license or permit. 4 4. As used in this chapter, the existence of a sustained and continu- 5 ing pattern of misconduct, failure to adequately prevent diversion or 6 disorder on or about the premises may be presumed upon the third inci- 7 dent reported to the office by a law enforcement agency, or discovered 8 by the office during the course of any investigation, of misconduct, 9 diversion or disorder on or about the premises or related to the opera- 10 tion of the premises. 11 5. The denial, revocation, or suspension of any application, license, 12 permit, or registration issued to or submitted by a person, business, or 13 entity may also be grounds for the denial, suspension, or revocation of 14 any and all other licenses, permits, or registrations applied for by, or 15 issued to said person, business, or entity if the executive director 16 determines it necessary to protect public health and safety or that the 17 person, business, and/or entities involved no longer possess the good 18 moral character required to participate in the cannabis industry. 19 6. Any registration, license or permit issued by the office pursuant 20 to this chapter may be revoked, cancelled or suspended and/or be 21 subjected to the imposition of a monetary penalty in the manner 22 prescribed by this section. 23 7. The office may on its own initiative, or on complaint of any 24 person, institute proceedings to revoke, cancel or suspend any adult-use 25 cannabis retail dispensary license or adult-use cannabis on-site 26 consumption license and may impose a civil penalty against the licensee 27 after a hearing at which the licensee shall be given an opportunity to 28 be heard. Such hearing shall be held in such manner and upon such notice 29 as may be prescribed by regulation. 30 8. All other registrations, licenses or permits issued under this 31 chapter may be revoked, cancelled, suspended and/or made subject to the 32 imposition of a civil penalty by the office after a hearing to be held 33 in such manner and upon such notice as may be prescribed in regulation 34 by the executive director. 35 9. Notwithstanding any other provision of this chapter, the office 36 may: (a) revoke or refuse to issue any class or type of license, permit, 37 or registration if it determines that failing to do so would conflict 38 with any federal law or guidance pertaining to regulatory, enforcement 39 and other systems that states, businesses, or other institutions may 40 implement to mitigate the potential for federal intervention or enforce- 41 ment. This provision shall not be construed to prohibit the overall 42 implementation and administration of this chapter on account of the 43 federal classification of marijuana or cannabis as a schedule I 44 substance or any other federal prohibitions or restrictions; and 45 (b) the board may adopt rules and regulations based on federal guid- 46 ance, provided those rules and regulations are designed to comply with 47 federal guidance and mitigate federal enforcement against the registra- 48 tions, licenses, or permits issued under this chapter, or the cannabis 49 industry as a whole. This may include regulations which permit the shar- 50 ing of licensee, registrant, or permit holder information with desig- 51 nated banking or financial institutions, provided these regulations are 52 designed to aid cannabis industry participants' access to banking and 53 financial services. 54 § 136. Lawful actions pursuant to this chapter. 1. Contracts related 55 to the operation of registered organizations, licenses and permits under 56 this chapter shall be lawful and shall not be deemed unenforceable onS. 7509--A 119 A. 9509--A 1 the basis that the actions permitted pursuant to the registration, 2 license or permit are prohibited by federal law. 3 2. The following actions are not unlawful as provided under this chap- 4 ter, shall not be an offense under any state or local law, and shall not 5 result in any civil fine, seizure, or forfeiture of assets against any 6 person acting in accordance with this chapter: 7 (a) Actions of a registered organization, licensee, or permittee, or 8 the employees or agents of such registered organization, licensee or 9 permittee, as permitted by this chapter and consistent with rules and 10 regulations of the office, pursuant to a valid registration, license or 11 permit issued by the office. 12 (b) Actions of those who allow property to be used by a registered 13 organization, licensee, or permittee, or the employees or agents of such 14 registered organization, licensee or permittee, as permitted by this 15 chapter and consistent with rules and regulations of the office, pursu- 16 ant to a valid registration, license or permit issued by the office. 17 (c) Actions of any person or entity, their employees, or their agents 18 providing a service to a registered organization, licensee, permittee or 19 a potential registered organization, licensee, or permittee, as permit- 20 ted by this chapter and consistent with rules and regulations of the 21 office, relating to the formation of a business. 22 (d) The purchase, possession, or consumption of cannabis, medical 23 cannabis and cannabinoid hemp, as permitted by this chapter and consist- 24 ent with rules and regulations of the office, obtained from a validly 25 registered, licensed or permitted retailer. 26 § 137. Review by courts. 1. The following actions by the office shall 27 be subject to review by the supreme court in the manner provided in 28 article seventy-eight of the civil practice law and rules: 29 (a) refusal by the office to issue a registration, license, or a 30 permit; 31 (b) the revocation, cancellation or suspension of a registration, 32 license, or permit by the office; 33 (c) the failure or refusal by the office to render a decision upon any 34 completed application for a license, registration or permit, or hearing 35 submitted to or held by the office within sixty days after such 36 submission of a completed application or hearing; 37 (d) the transfer by the office of a registration, license, or permit 38 to any other entity or premises, or refusal by the office to approve 39 such a transfer; and 40 (e) refusal to approve a corporate change in stockholders, stockhold- 41 ings, officers or directors. 42 2. No stay shall be granted pending the determination of such matter 43 except on notice to the office and only for a period of less than thirty 44 days. In no instance shall a stay be granted where the office has issued 45 a summary suspension of a registration, license, or permit for the 46 protection of the public health, safety, and welfare. 47 § 138. Illicit cannabis. 1. "Illicit cannabis" means and includes any 48 cannabis product or medical cannabis owned, cultivated, distributed, 49 bought, sold, packaged, rectified, blended, treated, fortified, mixed, 50 processed, warehoused, possessed or transported, on which any tax 51 required to have been paid under any applicable state law has not been 52 paid; or any adult-use cannabis or medical cannabis product the form, 53 packaging, or content of which is not permitted by the office, as appli- 54 cable. 55 2. Any person who shall knowingly possess or have under his or her 56 control any illicit cannabis is guilty of a misdemeanor.S. 7509--A 120 A. 9509--A 1 3. Any person who shall knowingly barter or exchange with, or sell, 2 give or offer to sell or to give another any illicit cannabis is guilty 3 of a class A misdemeanor. 4 4. Any person who shall possess or have under his or her control or 5 transport any illicit cannabis with intent to barter or exchange with, 6 or to sell or give to another the same or any part thereof is guilty of 7 a class A misdemeanor. Such intent is presumptively established by proof 8 that the person knowingly possessed or had under his or her control one 9 or more ounces, or an equivalent amount as determined by the executive 10 director in regulation, of illicit cannabis. This presumption may be 11 rebutted. 12 5. Any person who, being the owner, lessee, or occupant of any room, 13 shed, tenement, booth or building, float or vessel, or part thereof, 14 knowingly permits the same to be used for the cultivation, processing, 15 distribution, purchase, sale, warehousing, transportation, or storage of 16 any illicit cannabis, is guilty of a misdemeanor. 17 § 139. Injunction for unlawful manufacturing, sale, distribution, or 18 consumption of cannabis. 1. If any person shall engage or participate 19 or be about to engage or participate in the cultivation, production, 20 distribution, traffic, or sale of cannabis products, medical cannabis or 21 cannabinoid hemp in this state without obtaining the appropriate regis- 22 tration, license, or permit therefor, or shall traffic in cannabis 23 products, medical cannabis or cannabinoid hemp contrary to any provision 24 of this chapter, or otherwise unlawfully, or shall traffic in illicit 25 cannabis or, operating either a place for profit or pecuniary gain, or a 26 not-for-profit basis, with a capacity for the assemblage of twenty or 27 more persons, shall permit a person or persons to come to such place of 28 assembly for the purpose of consuming cannabis products without having 29 the appropriate license or permit therefor, the office may present a 30 verified petition or complaint to a justice of the supreme court at a 31 special term of the supreme court of the judicial district in which such 32 city, village or town is situated, for an order enjoining such person 33 engaging or participating in such activity or from carrying on such 34 business. Such petition or complaint shall state the facts upon which 35 such application is based. Upon the presentation of the petition or 36 complaint, the justice or court may grant an order temporarily restrain- 37 ing any person from continuing to engage in conduct as specified in the 38 petition or complaint, and shall grant an order requiring such person to 39 appear before such justice or court at or before a special term of the 40 supreme court in such judicial district on the day specified therein, 41 not more than ten days after the granting thereof, to show cause why 42 such person should not be permanently enjoined from engaging or partic- 43 ipating in such activity or from carrying on such business, or why such 44 person should not be enjoined from carrying on such business contrary to 45 the provisions of this chapter. A copy of such petition or complaint and 46 order shall be served upon the person, in the manner directed by such 47 order, not less than three days before the return day thereof. On the 48 day specified in such order, the justice or court before whom the same 49 is returnable shall hear the proofs of the parties and may, if deemed 50 necessary or proper, take testimony in relation to the allegations of 51 the petition or complaint. If the justice or court is satisfied that 52 such person is about to engage or participate in the unlawful traffic in 53 cannabis, medical cannabis or cannabinoid hemp or has unlawfully culti- 54 vated, processed, or sold cannabis products, medical cannabis or canna- 55 binoid hemp without having obtained a registration or license or contra- 56 ry to the provisions of this chapter, or has trafficked in illicitS. 7509--A 121 A. 9509--A 1 cannabis, or, is operating or is about to operate such place for profit 2 or pecuniary gain, with such capacity, and has permitted or is about to 3 permit a person or persons to come to such place of assembly for the 4 purpose of consuming cannabis products without having such appropriate 5 license, an order shall be granted enjoining such person from thereafter 6 engaging or participating in or carrying on such activity or business, 7 and allowing for the seizure of such illicit cannabis without limit. If, 8 after the entry of such an order in the county clerk's office of the 9 county in which the principal place of business of the corporation or 10 partnership is located, or in which the individual so enjoined resides 11 or conducts such business, and the service of a copy thereof upon such 12 person, or such substituted service as the court may direct, such 13 person, partnership or corporation shall, in violation of such order, 14 cultivate, process, distribute or sell cannabis products, medical canna- 15 bis or cannabinoid hemp, or illicit cannabis, or permit a person or 16 persons to come to such place of assembly for the purpose of consuming 17 cannabis products, such activity shall be deemed a contempt of court and 18 be punishable in the manner provided by the judiciary law, and, in addi- 19 tion to any such punishment, the justice or court before whom or which 20 the petition or complaint is heard, may, in his or its discretion, order 21 the seizure and forfeiture of any cannabis products and any fixtures, 22 equipment and supplies used in the operation or promotion of such ille- 23 gal activity and such property shall be subject to forfeiture pursuant 24 to law. Costs upon the application for such injunction may be awarded in 25 favor of and against the parties thereto in such sums as in the 26 discretion of the justice or court before whom or which the petition or 27 complaint is heard may seem proper. 28 2. The owner, lessor and lessee of a building, erection or place where 29 cannabis products, medical cannabis or cannabinoid hemp is unlawfully 30 cultivated, processed, distributed, sold, consumed or permitted to be 31 unlawfully cultivated, processed, distributed, sold or consumed may be 32 made a respondent or defendant in the proceeding or action. 33 3. The gift or transfer of cannabis in conjunction with the transfer 34 of any money, consideration or value, or another item or any other 35 services in an effort to evade laws, licensing, permitting, and regis- 36 tration requirements governing the sale of cannabis shall be considered 37 an unlawful activity under this chapter. 38 § 140. Persons forbidden to traffic cannabis; certain officials not to 39 be interested in manufacture or sale of cannabis products. 1. The 40 following are forbidden to traffic in cannabis: 41 (a) Except as provided in subdivision one-a of this section, a person 42 who has been convicted of a felony, unless subsequent to such conviction 43 such person shall have received an executive pardon therefor removing 44 this disability, a certificate of good conduct granted by the department 45 of corrections and community supervision, or a certificate of relief 46 from disabilities granted by the department of corrections and community 47 supervision or a court of this state pursuant to the provisions of arti- 48 cle twenty-three of the correction law to remove the disability under 49 this section because of such conviction; 50 (b) A person under the age of twenty-one years; 51 (c) A person who is not a citizen of the United States or an alien 52 lawfully admitted for permanent residence in the United States; 53 (d) A partnership or a corporation, unless each member of the partner- 54 ship, or each of the principal officers and directors of the corpo- 55 ration, is a citizen of the United States or an alien lawfully admitted 56 for permanent residence in the United States, not less than twenty-oneS. 7509--A 122 A. 9509--A 1 years of age, and has not been convicted of any felony, or if so 2 convicted has received, subsequent to such conviction, an executive 3 pardon therefor removing this disability a certificate of good conduct 4 granted by the department of corrections and community supervision, or a 5 certificate of relief from disabilities granted by the department of 6 corrections and community supervision or a court of this state pursuant 7 to the provisions of article twenty-three of the correction law to 8 remove the disability under this section because of such conviction; 9 provided however that a corporation which otherwise conforms to the 10 requirements of this section and chapter may be licensed if each of its 11 principal officers and more than one-half of its directors are citizens 12 of the United States or aliens lawfully admitted for permanent residence 13 in the United States; and provided further that a corporation organized 14 under the not-for-profit corporation law or the education law which 15 otherwise conforms to the requirements of this section and chapter may 16 be licensed if each of its principal officers and more than one-half of 17 its directors are not less than twenty-one years of age and none of its 18 directors are less than eighteen years of age; and provided further that 19 a corporation organized under the not-for-profit corporation law or the 20 education law and located on the premises of a college as defined by 21 section two of the education law which otherwise conforms to the 22 requirements of this section and chapter may be licensed if each of its 23 principal officers and each of its directors are not less than twenty- 24 one years of age; 25 (e) A person who shall have had any registration or license issued 26 under this chapter revoked for cause, until no less than two years from 27 the date of such revocation; 28 (f) A person not registered or licensed under the provisions of this 29 chapter, who has been convicted of a violation of this chapter, until no 30 less than two years from the date of such conviction; or 31 (g) A corporation or partnership, if any officer and director or any 32 partner, while not licensed under the provisions of this chapter, has 33 been convicted of a violation of this chapter, or has had a registration 34 or license issued under this chapter revoked for cause, until no less 35 than two years from the date of such conviction or revocation. 36 1-a. Notwithstanding the provision of subdivision one of this section, 37 a corporation holding a registration or license to traffic cannabis 38 products or medical cannabis may, upon conviction of a felony be auto- 39 matically forbidden to traffic in cannabis products or medical cannabis, 40 and the application for a registered organization or license by such a 41 corporation may be subject to denial, and the registration or license of 42 such a corporation may be subject to revocation or suspension by the 43 office pursuant, consistent with the provisions of article 44 twenty-three-A of the correction law. For any felony conviction by a 45 court other than a court of this state, the office may request the 46 department of corrections and community supervision to investigate and 47 review the facts and circumstances concerning such a conviction, and 48 such department shall, if so requested, submit its findings to the 49 office as to whether the corporation has conducted itself in a manner 50 such that discretionary review by the office would not be inconsistent 51 with the public interest. The department of corrections and community 52 supervision may charge the registered organization, licensee or appli- 53 cant a fee equivalent to the expenses of an appropriate investigation 54 under this subdivision. For any conviction rendered by a court of this 55 state, the office may request the corporation, if the corporation is 56 eligible for a certificate of relief from disabilities, to seek such aS. 7509--A 123 A. 9509--A 1 certificate from the court which rendered the conviction and to submit 2 such a certificate as part of the office's discretionary review process. 3 2. Except as may otherwise be provided for in regulation, it shall be 4 unlawful for any police commissioner, police inspector, captain, 5 sergeant, roundsman, patrolman or other police official or subordinate 6 of any police department in the state, to be either directly or indi- 7 rectly interested in the cultivation, processing, distribution, or sale 8 of cannabis products or to offer for sale, or recommend to any regis- 9 tered organization or licensee any cannabis products. A person may not 10 be denied any registration or license granted under the provisions of 11 this chapter solely on the grounds of being the spouse of a public serv- 12 ant described in this section. The solicitation or recommendation made 13 to any registered organization or licensee, to purchase any cannabis 14 products by any police official or subordinate as hereinabove described, 15 shall be presumptive evidence of the interest of such official or subor- 16 dinate in the cultivation, processing, distribution, or sale of cannabis 17 products. 18 3. No elective village officer shall be subject to the limitations set 19 forth in subdivision two of this section unless such elective village 20 officer shall be assigned duties directly relating to the operation or 21 management of the police department or have direct authority over any 22 applicable local licensing requirements or approvals. 23 § 141. Access to criminal history information through the division of 24 criminal justice services. In connection with the administration of 25 this chapter, the office is authorized to request, receive and review 26 criminal history information through the division of criminal justice 27 services with respect to any person seeking a registration, license, 28 permit or authorization to cultivate, process, distribute or sell 29 medical cannabis or adult-use cannabis. At the office's request, each 30 person, member, principal and/or officer of the applicant shall submit 31 to the office his or her fingerprints in such form and in such manner as 32 specified by the division, for the purpose of conducting a criminal 33 history search and returning a report thereon in accordance with the 34 procedures and requirements established by the division pursuant to the 35 provisions of article thirty-five of the executive law, which shall 36 include the payment of the prescribed processing fees for the cost of 37 the division's full search and retain procedures and a national criminal 38 history record check. The executive director, or his or her designee, 39 shall submit such fingerprints and the processing fee to the division. 40 The division shall forward to the office a report with respect to the 41 applicant's previous criminal history, if any, or a statement that the 42 applicant has no previous criminal history according to its files. Fing- 43 erprints submitted to the division pursuant to this subdivision may also 44 be submitted to the federal bureau of investigation for a national crim- 45 inal history record check. If additional copies of fingerprints are 46 required, the applicant shall furnish them upon request. 47 § 3. Intentionally omitted. 48 § 4. Section 3302 of the public health law, as added by chapter 878 of 49 the laws of 1972, subdivisions 1, 14, 16, 17 and 27 as amended and 50 subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24, 51 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998, 52 subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39 53 and 40 as added by chapter 178 of the laws of 2010, paragraph (a) of 54 subdivision 20, the opening paragraph of subdivision 22 and subdivision 55 29 as amended by chapter 163 of the laws of 1973, subdivision 31 as 56 amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-S. 7509--A 124 A. 9509--A 1 vision 41 as added by section 6 of part A of chapter 447 of the laws of 2 2012, and subdivisions 42 and 43 as added by section 13 of part D of 3 chapter 60 of the laws of 2014, is amended to read as follows: 4 § 3302. Definitions of terms of general use in this article. Except 5 where different meanings are expressly specified in subsequent 6 provisions of this article, the following terms have the following mean- 7 ings: 8 1. "Addict" means a person who habitually uses a controlled substance 9 for a non-legitimate or unlawful use, and who by reason of such use is 10 dependent thereon. 11 2. "Administer" means the direct application of a controlled 12 substance, whether by injection, inhalation, ingestion, or any other 13 means, to the body of a patient or research subject. 14 3. "Agent" means an authorized person who acts on behalf of or at the 15 direction of a manufacturer, distributor, or dispenser. No person may be 16 authorized to so act if under title VIII of the education law such 17 person would not be permitted to engage in such conduct. It does not 18 include a common or contract carrier, public warehouseman, or employee 19 of the carrier or warehouseman when acting in the usual and lawful 20 course of the carrier's or warehouseman's business. 21 4. ["Concentrated Cannabis" means22(a) the separated resin, whether crude or purified, obtained from a23plant of the genus Cannabis; or24(b) a material, preparation, mixture, compound or other substance25which contains more than two and one-half percent by weight of delta-926tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering27system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-28terpene numbering system.295.] "Controlled substance" means a substance or substances listed in 30 section thirty-three hundred six of this [chapter] title. 31 [6.] 5. "Commissioner" means commissioner of health of the state of 32 New York. 33 [7.] 6. "Deliver" or "delivery" means the actual, constructive or 34 attempted transfer from one person to another of a controlled substance, 35 whether or not there is an agency relationship. 36 [8.] 7. "Department" means the department of health of the state of 37 New York. 38 [9.] 8. "Dispense" means to deliver a controlled substance to an ulti- 39 mate user or research subject by lawful means, including by means of the 40 internet, and includes the packaging, labeling, or compounding necessary 41 to prepare the substance for such delivery. 42 [10.] 9. "Distribute" means to deliver a controlled substance, includ- 43 ing by means of the internet, other than by administering or dispensing. 44 [11.] 10. "Distributor" means a person who distributes a controlled 45 substance. 46 [12.] 11. "Diversion" means manufacture, possession, delivery or use 47 of a controlled substance by a person or in a manner not specifically 48 authorized by law. 49 [13.] 12. "Drug" means 50 (a) substances recognized as drugs in the official United States Phar- 51 macopoeia, official Homeopathic Pharmacopoeia of the United States, or 52 official National Formulary, or any supplement to any of them; 53 (b) substances intended for use in the diagnosis, cure, mitigation, 54 treatment, or prevention of disease in man or animals; andS. 7509--A 125 A. 9509--A 1 (c) substances (other than food) intended to affect the structure or a 2 function of the body of man or animal. It does not include devices or 3 their components, parts, or accessories. 4 [14.] 13. "Federal agency" means the Drug Enforcement Administration, 5 United States Department of Justice, or its successor agency. 6 [15.] 14. "Federal controlled substances act" means the Comprehensive 7 Drug Abuse Prevention and Control Act of 1970, Public Law 91-513, and 8 any act or acts amendatory or supplemental thereto or regulations 9 promulgated thereunder. 10 [16.] 15. "Federal registration number" means such number assigned by 11 the Federal agency to any person authorized to manufacture, distribute, 12 sell, dispense or administer controlled substances. 13 [17.] 16. "Habitual user" means any person who is, or by reason of 14 repeated use of any controlled substance for non-legitimate or unlawful 15 use is in danger of becoming, dependent upon such substance. 16 [18.] 17. "Institutional dispenser" means a hospital, veterinary 17 hospital, clinic, dispensary, maternity home, nursing home, mental 18 hospital or similar facility approved and certified by the department as 19 authorized to obtain controlled substances by distribution and to 20 dispense and administer such substances pursuant to the order of a prac- 21 titioner. 22 [19.] 18. "License" means a written authorization issued by the 23 department or the New York state department of education permitting 24 persons to engage in a specified activity with respect to controlled 25 substances. 26 [20.] 19. "Manufacture" means the production, preparation, propa- 27 gation, compounding, cultivation, conversion or processing of a 28 controlled substance, either directly or indirectly or by extraction 29 from substances of natural origin, or independently by means of chemical 30 synthesis, or by a combination of extraction and chemical synthesis, and 31 includes any packaging or repackaging of the substance or labeling or 32 relabeling of its container, except that this term does not include the 33 preparation, compounding, packaging or labeling of a controlled 34 substance: 35 (a) by a practitioner as an incident to his or her administering or 36 dispensing of a controlled substance in the course of his professional 37 practice; or 38 (b) by a practitioner, or by his or her authorized agent under his or 39 her supervision, for the purpose of, or as an incident to, research, 40 teaching, or chemical analysis and not for sale; or 41 (c) by a pharmacist as an incident to his or her dispensing of a 42 controlled substance in the course of his or her professional practice. 43 [21. "Marihuana" means all parts of the plant of the genus Cannabis,44whether growing or not; the seeds thereof; the resin extracted from any45part of the plant; and every compound, manufacture, salt, derivative,46mixture, or preparation of the plant, its seeds or resin. It does not47include the mature stalks of the plant, fiber produced from the stalks,48oil or cake made from the seeds of the plant, any other compound, manu-49facture, salt, derivative, mixture, or preparation of the mature stalks50(except the resin extracted therefrom), fiber, oil, or cake, or the51sterilized seed of the plant which is incapable of germination.5222.] 20. "Narcotic drug" means any of the following, whether produced 53 directly or indirectly by extraction from substances of vegetable 54 origin, or independently by means of chemical synthesis, or by a combi- 55 nation of extraction and chemical synthesis:S. 7509--A 126 A. 9509--A 1 (a) opium and opiate, and any salt, compound, derivative, or prepara- 2 tion of opium or opiate; 3 (b) any salt, compound, isomer, derivative, or preparation thereof 4 which is chemically equivalent or identical with any of the substances 5 referred to in [subdivision] paragraph (a) of this subdivision, but not 6 including the isoquinoline alkaloids of opium; 7 (c) opium poppy and poppy straw. 8 [23.] 21. "Opiate" means any substance having an addiction-forming or 9 addiction-sustaining liability similar to morphine or being capable of 10 conversion into a drug having addiction-forming or addiction-sustaining 11 liability. It does not include, unless specifically designated as 12 controlled under section [3306] thirty-three hundred six of this [arti-13cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and 14 its salts (dextromethorphan). It does include its racemic and levorota- 15 tory forms. 16 [24.] 22. "Opium poppy" means the plant of the species Papaver 17 somniferum L., except its seeds. 18 [25.] 23. "Person" means individual, institution, corporation, govern- 19 ment or governmental subdivision or agency, business trust, estate, 20 trust, partnership or association, or any other legal entity. 21 [26.] 24. "Pharmacist" means any person licensed by the state depart- 22 ment of education to practice pharmacy. 23 [27.] 25. "Pharmacy" means any place registered as such by the New 24 York state board of pharmacy and registered with the Federal agency 25 pursuant to the federal controlled substances act. 26 [28.] 26. "Poppy straw" means all parts, except the seeds, of the 27 opium poppy, after mowing. 28 [29.] 27. "Practitioner" means: 29 A physician, dentist, podiatrist, veterinarian, scientific investi- 30 gator, or other person licensed, or otherwise permitted to dispense, 31 administer or conduct research with respect to a controlled substance in 32 the course of a licensed professional practice or research licensed 33 pursuant to this article. Such person shall be deemed a "practitioner" 34 only as to such substances, or conduct relating to such substances, as 35 is permitted by his license, permit or otherwise permitted by law. 36 [30.] 28. "Prescribe" means a direction or authorization, by 37 prescription, permitting an ultimate user lawfully to obtain controlled 38 substances from any person authorized by law to dispense such 39 substances. 40 [31.] 29. "Prescription" shall mean an official New York state 41 prescription, an electronic prescription, an oral prescription[,] or an 42 out-of-state prescription[, or any one]. 43 [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth- 44 er, or offer or agree to do the same. 45 [33.] 31. "Ultimate user" means a person who lawfully obtains and 46 possesses a controlled substance for his own use or the use by a member 47 of his household or for an animal owned by him or in his custody. It 48 shall also mean and include a person designated, by a practitioner on a 49 prescription, to obtain such substance on behalf of the patient for whom 50 such substance is intended. 51 [34.] 32. "Internet" means collectively computer and telecommuni- 52 cations facilities which comprise the worldwide network of networks that 53 employ a set of industry standards and protocols, or any predecessor or 54 successor protocol to such protocol, to exchange information of all 55 kinds. "Internet," as used in this article, also includes otherS. 7509--A 127 A. 9509--A 1 networks, whether private or public, used to transmit information by 2 electronic means. 3 [35.] 33. "By means of the internet" means any sale, delivery, 4 distribution, or dispensing of a controlled substance that uses the 5 internet, is initiated by use of the internet or causes the internet to 6 be used. 7 [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person 8 in the United States that sells, delivers or dispenses, or offers to 9 sell, deliver, or dispense, a controlled substance by means of the 10 internet. 11 [37.] 35. "Electronic prescription" means a prescription issued with 12 an electronic signature and transmitted by electronic means in accord- 13 ance with regulations of the commissioner and the commissioner of educa- 14 tion and consistent with federal requirements. A prescription generated 15 on an electronic system that is printed out or transmitted via facsimile 16 is not considered an electronic prescription and must be manually 17 signed. 18 [38.] 36. "Electronic" means of or relating to technology having elec- 19 trical, digital, magnetic, wireless, optical, electromagnetic or similar 20 capabilities. "Electronic" shall not include facsimile. 21 [39.] 37. "Electronic record" means a paperless record that is 22 created, generated, transmitted, communicated, received or stored by 23 means of electronic equipment and includes the preservation, retrieval, 24 use and disposition in accordance with regulations of the commissioner 25 and the commissioner of education and in compliance with federal law and 26 regulations. 27 [40.] 38. "Electronic signature" means an electronic sound, symbol, or 28 process, attached to or logically associated with an electronic record 29 and executed or adopted by a person with the intent to sign the record, 30 in accordance with regulations of the commissioner and the commissioner 31 of education. 32 [41.] 39. "Registry" or "prescription monitoring program registry" 33 means the prescription monitoring program registry established pursuant 34 to section thirty-three hundred forty-three-a of this article. 35 [42.] 40. "Compounding" means the combining, admixing, mixing, dilut- 36 ing, pooling, reconstituting, or otherwise altering of a drug or bulk 37 drug substance to create a drug with respect to an outsourcing facility 38 under section 503B of the federal Food, Drug and Cosmetic Act and 39 further defined in this section. 40 [43.] 41. "Outsourcing facility" means a facility that: 41 (a) is engaged in the compounding of sterile drugs as defined in 42 section sixty-eight hundred two of the education law; 43 (b) is currently registered as an outsourcing facility pursuant to 44 article one hundred thirty-seven of the education law; and 45 (c) complies with all applicable requirements of federal and state 46 law, including the Federal Food, Drug and Cosmetic Act. 47 Notwithstanding any other provision of law to the contrary, when an 48 outsourcing facility distributes or dispenses any drug to any person 49 pursuant to a prescription, such outsourcing facility shall be deemed to 50 be providing pharmacy services and shall be subject to all laws, rules 51 and regulations governing pharmacies and pharmacy services. 52 § 5. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 53 26, 27, 28, 29, 30, 31 and 32 of subdivision (d) of schedule I of 54 section 3306 of the public health law, paragraphs 13, 14, 15, 16, 17, 55 18, 19, 20, 21, 22, 23 and 24 as added by chapter 664 of the laws of 56 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by chapter 589 ofS. 7509--A 128 A. 9509--A 1 the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the 2 laws of 2006, are amended to read as follows: 3 (13) [Marihuana.4(14)] Mescaline. 5 [(15)] (14) Parahexyl. Some trade or other names: 3-Hexyl-1-hydroxy- 6 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran. 7 [(16)] (15) Peyote. Meaning all parts of the plant presently classi- 8 fied botanically as Lophophora williamsii Lemaire, whether growing or 9 not, the seeds thereof, any extract from any part of such plant, and 10 every compound, manufacture, salts, derivative, mixture, or preparation 11 of such plant, its seeds or extracts. 12 [(17)] (16) N-ethyl-3-piperidyl benzilate. 13 [(18)] (17) N-methyl-3-piperidyl benzilate. 14 [(19)] (18) Psilocybin. 15 [(20)] (19) Psilocyn. 16 [(21)] (20) Synthetic Tetrahydrocannabinols. [Synthetic] tetrahydro- 17 cannabinols not derived from the cannabis plant, or tetrahydrocannabi- 18 nols manufactured or created from the cannabis plant but which were not 19 produced by the cannabis plant during its cultivation or present at the 20 time of harvest that are equivalents of the substances contained in the 21 plant, or in the resinous extractives of cannabis, sp. and/or synthetic 22 substances, derivatives, and their isomers with similar chemical struc- 23 ture and pharmacological activity such as the following: 24 [/\] delta 1 cis or trans tetrahydrocannabinol, and their optical 25 isomers 26 [/\] delta 6 cis or trans tetrahydrocannabinol, and their optical 27 isomers 28 [/\] delta 3, 4 cis or trans tetrahydrocannabinol, and its optical 29 isomers (since nomenclature of these substances is not internationally 30 standardized, compounds of these structures, regardless of numerical 31 designation of atomic positions covered). 32 Tetrahydrocannabinol created or produced by decarboxylation of tetrah- 33 ydrocannabinolic acid produced from the cannabis plant through culti- 34 vation or present at the time of harvest and/or any U.S. Food and Drug 35 Administration approved product containing tetrahydrocannabinol shall 36 not be considered a synthetic tetrahydrocannabinol. 37 [(22)] (21) Ethylamine analog of phencyclidine. Some trade or other 38 names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl) ethyla- 39 mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE. 40 [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade or other 41 names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP. 42 [(24)] (23) Thiophene analog of phencyclidine. Some trade or other 43 names: 1-{1-(2-thienyl)-cyclohexyl}-piperidine, 2-thienylanalog of 44 phencyclidine, TPCP, TCP. 45 [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA). 46 [(26)] (25) 3,4-methylendioxy-N-ethylamphetamine (also known as 47 N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine, N-ethyl MDA, 48 MDE, MDEA. 49 [(27)] (26) N-hydroxy-3,4-methylenedioxyamphetamine (also known as 50 N-hydroxy-alpha-methyl-3,4 (methylenedioxy) phenethylamine, and 51 N-hydroxy MDA. 52 [(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other 53 names: TCPY. 54 [(29)] (28) Alpha-ethyltryptamine. Some trade or other names: 55 etryptamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine; 56 3- (2-aminobutyl) indole; Alpha-ET or AET.S. 7509--A 129 A. 9509--A 1 [(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other 2 names: DOET. 3 [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other 4 names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl 5 DOB; 2C-B, Nexus. 6 [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its 7 optical isomers, salts and salts of isomers. 8 § 6. Title 5-A of article 33 of the public health law is REPEALED. 9 § 6-a. Article 29-A of the agriculture and markets law is REPEALED. 10 § 7. Section 3382 of the public health law, as added by chapter 878 of 11 the laws of 1972, is amended to read as follows: 12 § 3382. Growing of the plant known as Cannabis by unlicensed persons. 13 A person who, without being licensed so to do under this article or 14 articles three, four or five of the cannabis law, grows the plant of the 15 genus Cannabis or knowingly allows it to grow on his land without 16 destroying the same, shall be guilty of a class A misdemeanor. 17 § 8. Subdivision 1 of section 3397-b of the public health law, as 18 added by chapter 810 of the laws of 1980, is amended to read as follows: 19 1. ["Marijuana"] "Cannabis" means [marijuana] cannabis as defined in 20 [section thirty-three hundred two of this chapter] subdivision three of 21 section three of the cannabis law and shall also include tetrahydrocan- 22 nabinols or a chemical derivative of tetrahydrocannabinol. 23 § 9. Subdivisions 5, 6 and 9 of section 220.00 of the penal law, 24 subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision 25 6 as amended by chapter 1051 of the laws of 1973 and subdivision 9 as 26 amended by chapter 664 of the laws of 1985, are amended and a new subdi- 27 vision 21 is added to read as follows: 28 5. "Controlled substance" means any substance listed in schedule I, 29 II, III, IV or V of section thirty-three hundred six of the public 30 health law other than [marihuana] cannabis as defined in subdivision six 31 of this section, but including concentrated cannabis as defined in 32 [paragraph (a) of subdivision four of section thirty-three hundred two33of such law] subdivision twenty-one of this section. 34 6. ["Marihuana"] "Cannabis" means ["marihuana" or "concentrated canna-35bis" as those terms are defined in section thirty-three hundred two of36the public health law] all parts of the plant of the genus cannabis, 37 whether growing or not; the seeds thereof; and every compound, manufac- 38 ture, salt, derivative, mixture, or preparation of the plant, or its 39 seeds. It does not include the mature stalks of the plant, fiber 40 produced from the stalks, oil or cake made from the seeds of the plant, 41 any other compound, manufacture, salt, derivative, mixture, or prepara- 42 tion of the mature stalks, fiber, oil, or cake, or the sterilized seed 43 of the plant which is incapable of germination. It does not include all 44 parts of the plant cannabis sativa l., whether growing or not, having no 45 more than three-tenths of one percent tetrahydrocannabinol (THC). 46 9. "Hallucinogen" means any controlled substance listed in schedule 47 I(d) (5), [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) and 48 (21). 49 21. "Concentrated cannabis" means: (a) the separated resin, whether 50 crude or purified, obtained from a plant of the genus cannabis; or (b) a 51 material, preparation, mixture, compound or other substance which 52 contains more than three percent by weight of delta-9 tetrahydrocannabi- 53 nol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 54 tetrahydrocannabinol or its isomer, delta 1 (6) monoterpene numbering 55 system. 56 § 10. Subdivision 4 of section 220.06 of the penal law is REPEALED.S. 7509--A 130 A. 9509--A 1 § 11. Subdivision 10 of section 220.09 of the penal law is REPEALED. 2 § 12. Subdivision 3 of section 220.34 of the penal law, as amended by 3 chapter 537 of the laws of 1998, is amended to read as follows: 4 3. concentrated cannabis as defined in [paragraph (a) of subdivision5four of section thirty-three hundred two of the public health law] 6 subdivision twenty-one of section 220.00 of this article; or 7 § 13. Intentionally omitted. 8 § 14. Section 221.00 of the penal law, as amended by chapter 90 of the 9 laws of 2014, is amended to read as follows: 10 § 221.00 [Marihuana] Cannabis; definitions. 11 Unless the context in which they are used clearly otherwise requires, 12 the terms occurring in this article shall have the same meaning ascribed 13 to them in article two hundred twenty of this chapter. Any act that is 14 lawful under [title five-A of article thirty-three of the public health] 15 articles three, four or five, of the cannabis law is not a violation of 16 this article. 17 § 15. Section 221.00 of the penal law, as added by chapter 360 of the 18 laws of 1977, is amended to read as follows: 19 § 221.00 [Marihuana] Cannabis; definitions. 20 Unless the context in which they are used clearly otherwise requires, 21 the terms occurring in this article shall have the same meaning ascribed 22 to them in article two hundred twenty of this chapter. 23 § 16. Section 221.05 of the penal law, as amended by chapter 131 of 24 the laws of 2019, is amended to read as follows: 25 § 221.05 Unlawful possession of [marihuana] cannabis in the second 26 degree. 27 A person is guilty of unlawful possession of [marihuana] cannabis in 28 the second degree when he knowingly and unlawfully possesses [marihua-29na.]: 30 1. cannabis and is less than twenty-one years of age; or 31 2. cannabis in a public place, as defined in section 240.00 of this 32 part, and such cannabis is burning. 33 Unlawful possession of [marihuana] cannabis in the second degree is a 34 violation punishable only by a fine of not more than fifty dollars when 35 such possession is by a person less than twenty-one years of age and of 36 an aggregate weight of less than one-half of one ounce of cannabis or 37 less than two and one-half grams of concentrated cannabis or a fine of 38 not more than one hundred dollars when such possession is by a person 39 less than twenty-one years of age and of an aggregate weight more than 40 one-half of one ounce of cannabis but not more than one ounce of canna- 41 bis, or more than two and one-half grams of concentrated cannabis but 42 not more than five grams of concentrated cannabis. Unlawful possession 43 of cannabis in the second degree is punishable by a fine of not more 44 than one hundred twenty-five dollars when such possession is in a public 45 place and such cannabis is burning. The term "burning" shall mean and 46 include smoking and vaping as such terms are defined in section thirteen 47 hundred ninety-nine-n of the public health law. 48 § 16-a. Subdivision 8 of section 1399-n of the public health law, as 49 amended by chapter 131 of the laws of 2019, is amended to read as 50 follows: 51 8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or 52 any other matter or substance which contains tobacco or [marihuana] 53 cannabis as defined in section [thirty-three hundred two of this chap-54ter] 220.00 of the penal law.S. 7509--A 131 A. 9509--A 1 § 17. Section 221.15 of the penal law, as amended by chapter 265 of 2 the laws of 1979, the opening paragraph as amended by chapter 75 of the 3 laws of 1995, is amended to read as follows: 4 § 221.15 [Criminal] Unlawful possession of [marihuana] cannabis in the 5 [fourth] first degree. 6 A person is guilty of [criminal] unlawful possession of [marihuana] 7 cannabis in the [fourth] first degree when he or she knowingly and 8 unlawfully possesses [one or more preparations, compounds, mixtures or9substances containing marihuana and the preparations, compounds,10mixtures or substances are of] an aggregate weight of more than [two11ounces] one ounce of cannabis or more than five grams of concentrated 12 cannabis. 13 [Criminal] Unlawful possession of [marihuana] cannabis in the [fourth] 14 first degree is a [class A misdemeanor] violation punishable by a fine 15 of not more than one hundred twenty-five dollars. The provisions of this 16 section shall not apply to certified patients or designated caregivers 17 as lawfully registered under article three of the cannabis law. 18 § 18. Section 221.20 of the penal law, as amended by chapter 265 of 19 the laws of 1979, the opening paragraph as amended by chapter 75 of the 20 laws of 1995, is amended to read as follows: 21 § 221.20 Criminal possession of [marihuana] cannabis in the [third] 22 second degree. 23 A person is guilty of criminal possession of [marihuana] cannabis in 24 the [third] second degree when he or she knowingly and unlawfully 25 possesses [one or more preparations, compounds, mixtures or substances26containing marihuana and the preparations, compounds, mixtures or27substances are of] an aggregate weight of more than [eight] two ounces 28 of cannabis or more than ten grams of concentrated cannabis. 29 Criminal possession of [marihuana] cannabis in the [third] second 30 degree is a class [E felony] A misdemeanor punishable by a fine not more 31 than one hundred twenty-five dollars per ounce possessed in excess of 32 two ounces of cannabis or ten grams of concentrated cannabis. However, 33 where the defendant has previously been convicted of an offense defined 34 in this article or article two hundred twenty of this title, committed 35 within the three years immediately preceding such violation, it shall be 36 punishable (a) only by a fine of not more than two hundred dollars per 37 ounce possessed in excess of two ounces, if the defendant was previously 38 convicted of one such offense committed during such period, and (b) by a 39 fine of not more than two hundred fifty dollars per ounce possessed in 40 excess of two ounces or a term of imprisonment not in excess of fifteen 41 days or both, if the defendant was previously convicted of two such 42 offenses committed during such period. The provisions of this section 43 shall not apply to certified patients or designated caregivers as 44 lawfully registered under article three of the cannabis law. 45 § 19. Section 221.25 of the penal law, as amended by chapter 265 of 46 the laws of 1979, the opening paragraph as amended by chapter 75 of the 47 laws of 1995, is amended to read as follows: 48 § 221.25 Criminal possession of [marihuana] cannabis in the [second] 49 first degree. 50 A person is guilty of criminal possession of [marihuana] cannabis in 51 the [second] first degree when he or she knowingly and unlawfully 52 possesses [one or more preparations, compounds, mixtures or substances53containing marihuana and the preparations, compounds, mixtures or54substances are of] an aggregate weight of more than [sixteen] sixty-four 55 ounces of cannabis or more than eighty grams of concentrated cannabis.S. 7509--A 132 A. 9509--A 1 Criminal possession of [marihuana] cannabis in the [second] first 2 degree is a class [D] E felony. 3 § 20. Sections 221.10 and 221.30 of the penal law are REPEALED. 4 § 20-a. Paragraph (c) of subdivision 8 of section 700.05 of the crimi- 5 nal procedure law, as amended by chapter 37 of the laws of 2014, is 6 amended to read as follows: 7 (c) Criminal possession of a controlled substance in the seventh 8 degree as defined in section 220.03 of the penal law, criminal 9 possession of a controlled substance in the fifth degree as defined in 10 section 220.06 of the penal law, criminal possession of a controlled 11 substance in the fourth degree as defined in section 220.09 of the penal 12 law, criminal possession of a controlled substance in the third degree 13 as defined in section 220.16 of the penal law, criminal possession of a 14 controlled substance in the second degree as defined in section 220.18 15 of the penal law, criminal possession of a controlled substance in the 16 first degree as defined in section 220.21 of the penal law, criminal 17 sale of a controlled substance in the fifth degree as defined in section 18 220.31 of the penal law, criminal sale of a controlled substance in the 19 fourth degree as defined in section 220.34 of the penal law, criminal 20 sale of a controlled substance in the third degree as defined in section 21 220.39 of the penal law, criminal sale of a controlled substance in the 22 second degree as defined in section 220.41 of the penal law, criminal 23 sale of a controlled substance in the first degree as defined in section 24 220.43 of the penal law, criminally possessing a hypodermic instrument 25 as defined in section 220.45 of the penal law, criminal sale of a 26 prescription for a controlled substance or a controlled substance by a 27 practitioner or pharmacist as defined in section 220.65 of the penal 28 law, criminal possession of methamphetamine manufacturing material in 29 the second degree as defined in section 220.70 of the penal law, crimi- 30 nal possession of methamphetamine manufacturing material in the first 31 degree as defined in section 220.71 of the penal law, criminal 32 possession of precursors of methamphetamine as defined in section 220.72 33 of the penal law, unlawful manufacture of methamphetamine in the third 34 degree as defined in section 220.73 of the penal law, unlawful manufac- 35 ture of methamphetamine in the second degree as defined in section 36 220.74 of the penal law, unlawful manufacture of methamphetamine in the 37 first degree as defined in section 220.75 of the penal law, unlawful 38 disposal of methamphetamine laboratory material as defined in section 39 220.76 of the penal law, operating as a major trafficker as defined in 40 section 220.77 of the penal law, [criminal possession of marihuana in41the first degree as defined in section 221.30 of the penal law, criminal42sale of marihuana in the first degree as defined in section 221.55 of43the penal law,] promoting gambling in the second degree as defined in 44 section 225.05 of the penal law, promoting gambling in the first degree 45 as defined in section 225.10 of the penal law, possession of gambling 46 records in the second degree as defined in section 225.15 of the penal 47 law, possession of gambling records in the first degree as defined in 48 section 225.20 of the penal law, and possession of a gambling device as 49 defined in section 225.30 of the penal law; 50 § 20-b. Paragraph (c) of subdivision 4-b and subdivisions 6 and 9 of 51 section 1310 of the civil practice law and rules, paragraph (b) of 52 subdivision 4-b as added by chapter 655 of the laws of 1990 and subdivi- 53 sions 6 and 9 as added by chapter 669 of the laws of 1984, are amended 54 to read as follows: 55 (c) a conviction of a person for a violation of section 220.09, 56 220.16, 220.34 or 220.39 of the penal law, [or a conviction of a crimi-S. 7509--A 133 A. 9509--A 1nal defendant for a violation of section 221.30 of the penal law,] or 2 where the accusatory instrument charges any such felony, conviction upon 3 a plea of guilty to a felony for which the plea is otherwise authorized 4 by law, together with evidence which: (i) provides substantial indicia 5 that the defendant used the real property to engage in a continual, 6 ongoing course of conduct involving the unlawful mixing, compounding, 7 manufacturing, warehousing, or packaging of controlled substances [or8where the conviction is for a violation of section 221.30 of the penal9law, marijuana,] as part of an illegal trade or business for gain; and 10 (ii) establishes, where the conviction is for possession of a controlled 11 substance [or where the conviction is for a violation of section 221.3012of the penal law, marijuana], that such possession was with the intent 13 to sell it. 14 6. "Pre-conviction forfeiture crime" means only a felony defined in 15 article two hundred twenty or section [221.30 or] 221.55 of the penal 16 law. 17 9. "Criminal defendant" means a person who has criminal liability for 18 a crime defined in subdivisions five and six [hereof] of this section. 19 For purposes of this article, a person has criminal liability when (a) 20 he has been convicted of a post-conviction forfeiture crime, or (b) the 21 claiming authority proves by clear and convincing evidence that such 22 person has committed an act in violation of article two hundred twenty 23 or section [221.30 or] 221.55 of the penal law. 24 § 20-c. Paragraph (c) of subdivision 7 of section 480.00 of the penal 25 law, as added by chapter 655 of the laws of 1990, is amended to read as 26 follows: 27 (c) a conviction of a person for a violation of section 220.09, 28 220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or where the 29 accusatory instrument charges any such felony, conviction upon a plea of 30 guilty to a felony for which the plea is otherwise authorized by law, 31 together with evidence which: (i) provides substantial indicia that the 32 defendant used the real property to engage in a continual, ongoing 33 course of conduct involving the unlawful mixing, compounding, manufac- 34 turing, warehousing, or packaging of controlled substances [or where the35conviction is for a violation of section 221.30 of this chapter, mari-36juana] as part of an illegal trade or business for gain; and (ii) estab- 37 lishes, where the conviction is for possession of a controlled substance 38 [or where the conviction is for a violation of section 221.30 of this39chapter, marijuana], that such possession was with the intent to sell 40 it. 41 § 20-d. Paragraph (c) of subdivision 4 of section 509-cc of the vehi- 42 cle and traffic law, as amended by chapter 368 of the laws of 2015, is 43 amended to read as follows: 44 (c) The offenses referred to in subparagraph (i) of paragraph (b) of 45 subdivision one and subparagraph (i) of paragraph (c) of subdivision two 46 of this section that result in disqualification for a period of five 47 years shall include a conviction under sections 100.10, 105.13, 115.05, 48 120.03, 120.04, 120.04-a, 120.05, 120.10, 120.25, 121.12, 121.13, 49 125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17, 50 140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09, 51 220.16, 220.31, 220.34, 220.60, 220.65, [221.30,] 221.50, 221.55, 52 230.00, 230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05, 53 235.06, 235.07, 235.21, 240.06, 245.00, 260.10, subdivision two of 54 section 260.20 and sections 260.25, 265.02, 265.03, 265.08, 265.09, 55 265.10, 265.12, 265.35 of the penal law or an attempt to commit any of 56 the aforesaid offenses under section 110.00 of the penal law, or anyS. 7509--A 134 A. 9509--A 1 similar offenses committed under a former section of the penal law, or 2 any offenses committed under a former section of the penal law which 3 would constitute violations of the aforesaid sections of the penal law, 4 or any offenses committed outside this state which would constitute 5 violations of the aforesaid sections of the penal law. 6 § 20-e. Subdivision 1 of section 170.56 of the criminal procedure law, 7 as amended by chapter 360 of the laws of 1977, is amended to read as 8 follows: 9 1. Upon or after arraignment in a local criminal court upon an infor- 10 mation, a prosecutor's information or a misdemeanor complaint, where the 11 sole remaining count or counts charge a violation or violations of 12 section 221.05, [221.10,] 221.15, 221.35 or 221.40 of the penal law and 13 before the entry of a plea of guilty thereto or commencement of a trial 14 thereof, the court, upon motion of a defendant, may order that all 15 proceedings be suspended and the action adjourned in contemplation of 16 dismissal, or upon a finding that adjournment would not be necessary or 17 appropriate and the setting forth in the record of the reasons for such 18 findings, may dismiss in furtherance of justice the accusatory instru- 19 ment; provided, however, that the court may not order such adjournment 20 in contemplation of dismissal or dismiss the accusatory instrument if: 21 (a) the defendant has previously been granted such adjournment in 22 contemplation of dismissal, or (b) the defendant has previously been 23 granted a dismissal under this section, or (c) the defendant has previ- 24 ously been convicted of any offense involving controlled substances, or 25 (d) the defendant has previously been convicted of a crime and the 26 district attorney does not consent or (e) the defendant has previously 27 been adjudicated a youthful offender on the basis of any act or acts 28 involving controlled substances and the district attorney does not 29 consent. 30 § 21. Section 221.35 of the penal law, as amended by chapter 265 of 31 the laws of 1979, the opening paragraph as amended by chapter 75 of the 32 laws of 1995, is amended to read as follows: 33 § 221.35 Criminal sale of [marihuana] cannabis in the fifth degree. 34 A person is guilty of criminal sale of [marihuana] cannabis in the 35 fifth degree when he or she knowingly and unlawfully sells, [without] 36 for consideration[, one or more preparations, compounds, mixtures or37substances containing marihuana and the preparations, compounds,38mixtures or substances are] cannabis or cannabis concentrate of [an39aggregate weight of two grams or less; or one cigarette containing mari-40huana] any weight. 41 Criminal sale of [marihuana] cannabis in the fifth degree is a [class42B misdemeanor] violation punishable by a fine not more than the greater 43 of two-hundred and fifty dollars or two times the value of the sale. 44 § 22. Section 221.40 of the penal law, as added by chapter 360 of the 45 laws of 1977, is amended to read as follows: 46 § 221.40 Criminal sale of [marihuana] cannabis in the fourth degree. 47 A person is guilty of criminal sale of [marihuana] cannabis in the 48 fourth degree when he or she knowingly and unlawfully sells [marihuana49except as provided in section 221.35 of this article] cannabis of an 50 aggregate weight of more than one ounce or more than five grams of 51 cannabis concentrate. 52 Criminal sale of [marihuana] cannabis in the fourth degree is a [class53A] misdemeanor punishable by a fine of not more than the greater of five 54 hundred dollars or two times the value of the sale or a maximum of three 55 months imprisonment, or both.S. 7509--A 135 A. 9509--A 1 § 23. Section 221.45 of the penal law, as amended by chapter 265 of 2 the laws of 1979, the opening paragraph as amended by chapter 75 of the 3 laws of 1995, is amended to read as follows: 4 § 221.45 Criminal sale of [marihuana] cannabis in the third degree. 5 A person is guilty of criminal sale of [marihuana] cannabis in the 6 third degree when he or she knowingly and unlawfully sells [one or more7preparations, compounds, mixtures or substances containing marihuana and8the preparations, compounds, mixtures or substances are of an aggregate9weight of more than twenty-five grams] or an aggregate weight of more 10 than four ounces of cannabis or more than twenty grams of concentrated 11 cannabis. 12 Criminal sale of [marihuana] cannabis in the third degree is a [class13E felony] misdemeanor punishable by a fine of not more than the greater 14 of one thousand dollars or two times the value of the sale or a maximum 15 of one year imprisonment or both. 16 § 24. Section 221.50 of the penal law, as amended by chapter 265 of 17 the laws of 1979, the opening paragraph as amended by chapter 75 of the 18 laws of 1995, is amended to read as follows: 19 § 221.50 Criminal sale of [marihuana] cannabis in the second degree. 20 A person is guilty of criminal sale of [marihuana] cannabis in the 21 second degree when he knowingly and unlawfully sells [one or more prepa-22rations, compounds, mixtures or substances containing marihuana and the23preparations, compounds, mixtures or substances are of] an aggregate 24 weight of more than [four ounces, or knowingly and unlawfully sells one25or more preparations, compounds, mixtures or substances containing mari-26huana to a person less than eighteen years of age] sixteen ounces of 27 cannabis or more than eighty grams of concentrated cannabis or any 28 amount of cannabis or concentrated cannabis to any person under twenty- 29 one years of age. In any prosecution for unlawful sale of cannabis or 30 concentrated cannabis to someone under twenty-one years of age pursuant 31 to this section, it is an affirmative defense that: (a) the defendant 32 had reasonable cause to believe that the person under twenty-one years 33 of age involved was twenty-one years old or more; and (b) such person 34 under twenty-one years of age exhibited to the defendant a draft card, 35 driver's license or identification card, birth certificate or other 36 official or apparently official document purporting to establish that 37 such person was twenty-one years old or more. 38 Criminal sale of [marihuana] cannabis in the second degree is a class 39 D felony. 40 § 25. Section 221.55 of the penal law, as amended by chapter 265 of 41 the laws of 1979, the opening paragraph as amended by chapter 75 of the 42 laws of 1995, is amended to read as follows: 43 § 221.55 Criminal sale of [marihuana] cannabis in the first degree. 44 A person is guilty of criminal sale of [marihuana] cannabis in the 45 first degree when he knowingly and unlawfully sells [one or more prepa-46rations, compounds, mixtures or substances containing marihuana and the47preparations, compounds, mixtures or substances are of an aggregate48weight of] more than [sixteen] sixty-four ounces of cannabis or three 49 hundred and twenty grams of cannabis concentrate. 50 Criminal sale of [marihuana] cannabis in the first degree is a class C 51 felony. 52 § 26. The penal law is amended by adding a new section 221.60 to read 53 as follows: 54 § 221.60 Licensing of cannabis production and distribution. 55 The provisions of this article and of article two hundred twenty of 56 this title shall not apply to any person exempted from criminal penal-S. 7509--A 136 A. 9509--A 1 ties pursuant to the provisions of this chapter or possessing, manufac- 2 turing, transporting, distributing, selling or transferring cannabis or 3 concentrated cannabis, or engaged in any other action that is in compli- 4 ance with article three, four or five of the cannabis law. 5 § 27. Intentionally omitted. 6 § 28. Paragraph (f) of subdivision 2 of section 850 of the general 7 business law is REPEALED. 8 § 29. Paragraph (h) of subdivision 2 of section 850 of the general 9 business law, as amended by chapter 812 of the laws of 1980, is amended 10 to read as follows: 11 (h) Objects, used or designed for the purpose of ingesting, inhaling, 12 or otherwise introducing [marihuana,] cocaine, hashish, or hashish oil 13 into the human body. 14 § 30. Section 114-a of the vehicle and traffic law, as added by chap- 15 ter 163 of the laws of 1973, is amended to read as follows: 16 § 114-a. Drug. The term "drug" when used in this chapter, means and 17 includes any substance listed in section thirty-three hundred six of the 18 public health law and any substance or combination of substances that 19 impair, to any extent, physical or mental abilities. 20 § 31. The article heading of article 20-B of the tax law, as added by 21 chapter 90 of the laws of 2014, is amended to read as follows: 22 EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS 23 § 32. The paragraph heading and subparagraph (i) of paragraph (b) of 24 subdivision 1 of section 1193 of the vehicle and traffic law, as amended 25 by chapter 169 of the laws of 2013, are amended to read as follows: 26 Driving while intoxicated or while ability impaired by drugs or while 27 ability impaired by the combined influence of drugs or of alcohol and 28 any drug or drugs; aggravated driving while intoxicated; misdemeanor 29 offenses. (i) A violation of subdivision two, three, or four [or four-a] 30 of section eleven hundred ninety-two of this article shall be a misde- 31 meanor and shall be punishable by a fine of not less than five hundred 32 dollars nor more than one thousand dollars, or by imprisonment in a 33 penitentiary or county jail for not more than one year, or by both such 34 fine and imprisonment. A violation of paragraph (a) of subdivision two-a 35 of section eleven hundred ninety-two of this article shall be a misde- 36 meanor and shall be punishable by a fine of not less than one thousand 37 dollars nor more than two thousand five hundred dollars or by imprison- 38 ment in a penitentiary or county jail for not more than one year, or by 39 both such fine and imprisonment. 40 § 33. Paragraph (c) of subdivision 1 of section 1193 of the vehicle 41 and traffic law, as amended by chapter 169 of the laws of 2013, is 42 amended by adding a new subparagraph (i-a) to read as follows: 43 (i-a) A violation of subdivision four-a of section eleven hundred 44 ninety-two of this article shall be a class E felony, and shall be 45 punishable by a fine of not less than one thousand dollars nor more than 46 five thousand dollars or by a period of imprisonment as provided in the 47 penal law, or by both such fine and imprisonment. 48 § 33-a. Subdivisions 1, 2 and 3 of section 1194 of the vehicle and 49 traffic law, as added by chapter 47 of the laws of 1988, paragraph (a) 50 of subdivision 2 as amended by chapter 196 of the laws of 1996, para- 51 graphs (b) and (c) of subdivision 2 as amended by chapter 489 of the 52 laws of 2017, clause (A) of subparagraph 1, subparagraphs 2 and 3 of 53 paragraph (b), subparagraphs 1, 2 and 3 of paragraph (c) of subdivision 54 2 as amended by chapter 27 of the laws of 2018, subparagraphs 1 and 2 of 55 paragraph (d) of subdivision 2 as amended by chapter 732 of the laws of 56 2006, and item (iii) of clause c of subparagraph 1 of paragraph (d) ofS. 7509--A 137 A. 9509--A 1 subdivision 2 as amended by section 37 of part LL of chapter 56 of the 2 laws of 2010, are amended to read as follows: 3 1. Arrest and field testing. (a) Arrest. Notwithstanding the 4 provisions of section 140.10 of the criminal procedure law, a police 5 officer may, without a warrant, arrest a person, in case of a violation 6 of subdivision one of section eleven hundred ninety-two of this article, 7 if such violation is coupled with an accident or collision in which such 8 person is involved, which in fact has been committed, though not in the 9 police officer's presence, when the officer has reasonable cause to 10 believe that the violation was committed by such person. 11 (b) Field testing. Every person operating a motor vehicle which has 12 been involved in an accident or which is operated in violation of any of 13 the provisions of this chapter shall, at the request of a police offi- 14 cer, submit to a breath test and/or oral/bodily fluid to be administered 15 by the police officer, and/or to an evaluation by a drug recognition 16 expert or advance roadside impairment detection enforcement certified 17 officer. If such test indicates that such operator has consumed alcohol 18 or drug or drugs, the police officer may request such operator to submit 19 to a chemical test or an evaluation conducted by a drug recognition 20 expert or advance roadside impairment detection enforcement certified 21 officer in the manner set forth in subdivision two of this section. 22 2. Chemical and drug recognition tests. (a) When authorized. Any 23 person who operates a motor vehicle in this state shall be deemed to 24 have given consent to an evaluation conducted by a drug recognition 25 expert or advance roadside impairment detection enforcement certified 26 officer or any portion thereof and/or a chemical test of one or more of 27 the following: breath, blood, urine, or saliva, for the purpose of 28 determining the alcoholic and/or drug content of the blood provided that 29 such test is administered by or at the direction of a police officer 30 with respect to a chemical test of breath, urine or saliva or, with 31 respect to a chemical test of blood, at the direction of a police offi- 32 cer: 33 (1) having reasonable grounds to believe such person to have been 34 operating in violation of any subdivision of section eleven hundred 35 ninety-two of this article and within two hours after such person has 36 been placed under arrest for any such violation; or having reasonable 37 grounds to believe such person to have been operating in violation of 38 section eleven hundred ninety-two-a of this article and within two hours 39 after the stop of such person for any such violation, 40 (2) within two hours after a breath test and/or oral/bodily fluid, or 41 an evaluation conducted by a drug recognition expert or advance roadside 42 impairment detection enforcement certified officer, as provided in para- 43 graph (b) of subdivision one of this section, indicates that alcohol 44 and/or drug or drugs, has been consumed by such person and in accordance 45 with the rules and regulations established by the police force of which 46 the officer is a member; 47 (3) for the purposes of this paragraph, "reasonable grounds" to 48 believe that a person has been operating a motor vehicle after having 49 consumed alcohol in violation of section eleven hundred ninety-two-a, or 50 alcohol and/or drug or drugs in violation of any other section of eleven 51 hundred ninety-two, of this article shall be determined by viewing the 52 totality of circumstances surrounding the incident which, when taken 53 together, indicate that the operator was driving in violation of such 54 subdivision. Such circumstances may include any visible or behavioral 55 indication of alcohol and/or drug or drugs consumption by the operator, 56 the existence of an open container containing or having contained anS. 7509--A 138 A. 9509--A 1 alcoholic beverage and/or drug or drugs in or around the vehicle driven 2 by the operator, the odor of cannabis or burnt cannabis, or any other 3 evidence surrounding the circumstances of the incident which indicates 4 that the operator has been operating a motor vehicle after having 5 consumed alcohol and/or drug or drugs at the time of the incident; or 6 (4) notwithstanding any other provision of law to the contrary, no 7 person under the age of twenty-one shall be arrested for an alleged 8 violation of section eleven hundred ninety-two-a of this article. 9 However, a person under the age of twenty-one for whom a chemical test 10 or an evaluation conducted by a drug recognition expert or advance road- 11 side impairment detection enforcement certified officer is authorized 12 pursuant to this paragraph may be temporarily detained by the police 13 solely for the purpose of requesting or administering such chemical test 14 whenever arrest without a warrant for a petty offense would be author- 15 ized in accordance with the provisions of section 140.10 of the criminal 16 procedure law or paragraph (a) of subdivision one of this section. 17 (b) Report of refusal. (1) If: (A) such person having been placed 18 under arrest; or (B) after a breath test indicates the presence of alco- 19 hol and/or drug or drugs in the person's system; or (C) with regard to a 20 person under the age of twenty-one, there are reasonable grounds to 21 believe that such person has been operating a motor vehicle after having 22 consumed alcohol in violation of section eleven hundred ninety-two-a of 23 this article; and having thereafter been requested to submit to such 24 chemical test or an evaluation conducted by a drug recognition expert or 25 advance roadside impairment detection enforcement certified officer and 26 having been informed that the person's license or permit to drive and 27 any non-resident operating privilege shall be immediately suspended and 28 subsequently revoked, or, for operators under the age of twenty-one for 29 whom there are reasonable grounds to believe that such operator has been 30 operating a motor vehicle after having consumed alcohol in violation of 31 section eleven hundred ninety-two-a of this article, shall be revoked 32 for refusal to submit to such chemical test or any portion thereof, or 33 an evaluation conducted by a drug recognition expert or advance roadside 34 impairment detection enforcement certified officer or any portion there- 35 of, whether or not the person is found guilty of the charge for which 36 such person is arrested or detained, refuses to submit to such chemical 37 test or any portion thereof, or an evaluation conducted by a drug recog- 38 nition expert or advance roadside impairment detection enforcement 39 certified officer or any portion thereof, unless a court order has been 40 granted pursuant to subdivision three of this section, the test shall 41 not be given and a written report of such refusal shall be immediately 42 made by the police officer before whom such refusal was made. Such 43 report may be verified by having the report sworn to, or by affixing to 44 such report a form notice that false statements made therein are punish- 45 able as a class A misdemeanor pursuant to section 210.45 of the penal 46 law and such form notice together with the subscription of the deponent 47 shall constitute a verification of the report. 48 (2) The report of the police officer shall set forth reasonable 49 grounds to believe such arrested person or such detained person under 50 the age of twenty-one had been driving in violation of any subdivision 51 of section eleven hundred ninety-two or eleven hundred ninety-two-a of 52 this article, that said person had refused to submit to such chemical 53 test, or an evaluation conducted by a drug recognition expert or advance 54 roadside impairment detection enforcement certified officer or any 55 portion thereof, and that no chemical test or evaluation conducted by a 56 drug recognition expert or advance roadside impairment detectionS. 7509--A 139 A. 9509--A 1 enforcement certified officer was administered pursuant to the require- 2 ments of subdivision three of this section. The report shall be 3 presented to the court upon arraignment of an arrested person, provided, 4 however, in the case of a person under the age of twenty-one, for whom a 5 test was authorized pursuant to the provisions of subparagraph two or 6 three of paragraph (a) of this subdivision, and who has not been placed 7 under arrest for a violation of any of the provisions of section eleven 8 hundred ninety-two of this article, such report shall be forwarded to 9 the commissioner within forty-eight hours in a manner to be prescribed 10 by the commissioner, and all subsequent proceedings with regard to 11 refusal to submit to such chemical test by such person shall be as set 12 forth in subdivision three of section eleven hundred ninety-four-a of 13 this article. 14 (3) For persons placed under arrest for a violation of any subdivision 15 of section eleven hundred ninety-two of this article, the license or 16 permit to drive and any non-resident operating privilege shall, upon the 17 basis of such written report, be temporarily suspended by the court 18 without notice pending the determination of a hearing as provided in 19 paragraph (c) of this subdivision. Copies of such report must be trans- 20 mitted by the court to the commissioner and such transmittal may not be 21 waived even with the consent of all the parties. Such report shall be 22 forwarded to the commissioner within forty-eight hours of such arraign- 23 ment. 24 (4) The court or the police officer, in the case of a person under the 25 age of twenty-one alleged to be driving after having consumed alcohol, 26 shall provide such person with a scheduled hearing date, a waiver form, 27 and such other information as may be required by the commissioner. If a 28 hearing, as provided for in paragraph (c) of this subdivision, or subdi- 29 vision three of section eleven hundred ninety-four-a of this article, is 30 waived by such person, the commissioner shall immediately revoke the 31 license, permit, or non-resident operating privilege, as of the date of 32 receipt of such waiver in accordance with the provisions of paragraph 33 (d) of this subdivision. 34 (c) Hearings. Any person whose license or permit to drive or any non- 35 resident driving privilege has been suspended pursuant to paragraph (b) 36 of this subdivision is entitled to a hearing in accordance with a hear- 37 ing schedule to be promulgated by the commissioner. If the department 38 fails to provide for such hearing fifteen days after the date of the 39 arraignment of the arrested person, the license, permit to drive or 40 non-resident operating privilege of such person shall be reinstated 41 pending a hearing pursuant to this section. The hearing shall be limited 42 to the following issues: (1) did the police officer have reasonable 43 grounds to believe that such person had been driving in violation of any 44 subdivision of section eleven hundred ninety-two of this article; (2) 45 did the police officer make a lawful arrest of such person; (3) was such 46 person given sufficient warning, in clear or unequivocal language, prior 47 to such refusal that such refusal to submit to such chemical test or any 48 portion thereof or an evaluation conducted by a drug recognition expert 49 or advance roadside impairment detection enforcement certified officer 50 or any portion thereof, would result in the immediate suspension and 51 subsequent revocation of such person's license or operating privilege 52 whether or not such person is found guilty of the charge for which the 53 arrest was made; and (4) did such person refuse to submit to such chemi- 54 cal test or any portion thereof or an evaluation conducted by a drug 55 recognition expert or advance roadside impairment detection enforcement 56 certified officer or any portion thereof. If, after such hearing, theS. 7509--A 140 A. 9509--A 1 hearing officer, acting on behalf of the commissioner, finds on any one 2 of said issues in the negative, the hearing officer shall immediately 3 terminate any suspension arising from such refusal. If, after such hear- 4 ing, the hearing officer, acting on behalf of the commissioner finds all 5 of the issues in the affirmative, such officer shall immediately revoke 6 the license or permit to drive or any non-resident operating privilege 7 in accordance with the provisions of paragraph (d) of this subdivision. 8 A person who has had a license or permit to drive or non-resident oper- 9 ating privilege suspended or revoked pursuant to this subdivision may 10 appeal the findings of the hearing officer in accordance with the 11 provisions of article three-A of this chapter. Any person may waive the 12 right to a hearing under this section. Failure by such person to appear 13 for the scheduled hearing shall constitute a waiver of such hearing, 14 provided, however, that such person may petition the commissioner for a 15 new hearing which shall be held as soon as practicable. 16 (d) Sanctions. (1) Revocations. a. Any license which has been revoked 17 pursuant to paragraph (c) of this subdivision shall not be restored for 18 at least one year after such revocation, nor thereafter, except in the 19 discretion of the commissioner. However, no such license shall be 20 restored for at least eighteen months after such revocation, nor there- 21 after except in the discretion of the commissioner, in any case where 22 the person has had a prior revocation resulting from refusal to submit 23 to a chemical test or an evaluation conducted by a drug recognition 24 expert or advance roadside impairment detection enforcement certified 25 officer or any portion thereof, or has been convicted of or found to be 26 in violation of any subdivision of section eleven hundred ninety-two or 27 section eleven hundred ninety-two-a of this article not arising out of 28 the same incident, within the five years immediately preceding the date 29 of such revocation; provided, however, a prior finding that a person 30 under the age of twenty-one has refused to submit to a chemical test 31 pursuant to subdivision three of section eleven hundred ninety-four-a of 32 this article shall have the same effect as a prior finding of a refusal 33 pursuant to this subdivision solely for the purpose of determining the 34 length of any license suspension or revocation required to be imposed 35 under any provision of this article, provided that the subsequent 36 offense or refusal is committed or occurred prior to the expiration of 37 the retention period for such prior refusal as set forth in paragraph 38 (k) of subdivision one of section two hundred one of this chapter. 39 b. Any license which has been revoked pursuant to paragraph (c) of 40 this subdivision or pursuant to subdivision three of section eleven 41 hundred ninety-four-a of this article, where the holder was under the 42 age of twenty-one years at the time of such refusal, shall not be 43 restored for at least one year, nor thereafter, except in the discretion 44 of the commissioner. Where such person under the age of twenty-one years 45 has a prior finding, conviction or youthful offender adjudication 46 resulting from a violation of section eleven hundred ninety-two or 47 section eleven hundred ninety-two-a of this article, not arising from 48 the same incident, such license shall not be restored for at least one 49 year or until such person reaches the age of twenty-one years, whichever 50 is the greater period of time, nor thereafter, except in the discretion 51 of the commissioner. 52 c. Any commercial driver's license which has been revoked pursuant to 53 paragraph (c) of this subdivision based upon a finding of refusal to 54 submit to a chemical test or an evaluation conducted by a drug recogni- 55 tion expert or advance roadside impairment detection enforcement certi- 56 fied officer or any portion thereof, where such finding occurs within orS. 7509--A 141 A. 9509--A 1 outside of this state, shall not be restored for at least eighteen 2 months after such revocation, nor thereafter, except in the discretion 3 of the commissioner, but shall not be restored for at least three years 4 after such revocation, nor thereafter, except in the discretion of the 5 commissioner, if the holder of such license was operating a commercial 6 motor vehicle transporting hazardous materials at the time of such 7 refusal. However, such person shall be permanently disqualified from 8 operating a commercial motor vehicle in any case where the holder has a 9 prior finding of refusal to submit to a chemical test or an evaluation 10 conducted by a drug recognition expert or advance roadside impairment 11 detection enforcement certified officer or any portion thereof pursuant 12 to this section or has a prior conviction of any of the following 13 offenses: any violation of section eleven hundred ninety-two of this 14 article; any violation of subdivision one or two of section six hundred 15 of this chapter; or has a prior conviction of any felony involving the 16 use of a motor vehicle pursuant to paragraph (a) of subdivision one of 17 section five hundred ten-a of this chapter. Provided that the commis- 18 sioner may waive such permanent revocation after a period of ten years 19 has expired from such revocation provided: 20 (i) that during such ten year period such person has not been found to 21 have refused a chemical test or an evaluation conducted by a drug recog- 22 nition expert or advance roadside impairment detection enforcement 23 certified officer; or any portion thereof pursuant to this section and 24 has not been convicted of any one of the following offenses: any 25 violation of section eleven hundred ninety-two of this article; refusal 26 to submit to a chemical test or an evaluation conducted by a drug recog- 27 nition expert or advance roadside impairment detection enforcement 28 certified officer or any portion thereof pursuant to this section; any 29 violation of subdivision one or two of section six hundred of this chap- 30 ter; or has a prior conviction of any felony involving the use of a 31 motor vehicle pursuant to paragraph (a) of subdivision one of section 32 five hundred ten-a of this chapter; 33 (ii) that such person provides acceptable documentation to the commis- 34 sioner that such person is not in need of alcohol or drug treatment or 35 has satisfactorily completed a prescribed course of such treatment; and 36 (iii) after such documentation is accepted, that such person is grant- 37 ed a certificate of relief from disabilities or a certificate of good 38 conduct pursuant to article twenty-three of the correction law by the 39 court in which such person was last penalized. 40 d. Upon a third finding of refusal and/or conviction of any of the 41 offenses which require a permanent commercial driver's license revoca- 42 tion, such permanent revocation may not be waived by the commissioner 43 under any circumstances. 44 (2) Civil penalties. Except as otherwise provided, any person whose 45 license, permit to drive, or any non-resident operating privilege is 46 revoked pursuant to the provisions of this section shall also be liable 47 for a civil penalty in the amount of five hundred dollars except that if 48 such revocation is a second or subsequent revocation pursuant to this 49 section issued within a five year period, or such person has been 50 convicted of a violation of any subdivision of section eleven hundred 51 ninety-two of this article within the past five years not arising out of 52 the same incident, the civil penalty shall be in the amount of seven 53 hundred fifty dollars. Any person whose license is revoked pursuant to 54 the provisions of this section based upon a finding of refusal to submit 55 to a chemical test while operating a commercial motor vehicle shall also 56 be liable for a civil penalty of five hundred fifty dollars except thatS. 7509--A 142 A. 9509--A 1 if such person has previously been found to have refused a chemical test 2 or an evaluation conducted by a drug recognition expert or advance road- 3 side impairment detection enforcement certified officer or any portion 4 thereof pursuant to this section while operating a commercial motor 5 vehicle or has a prior conviction of any of the following offenses while 6 operating a commercial motor vehicle: any violation of section eleven 7 hundred ninety-two of this article; any violation of subdivision two of 8 section six hundred of this chapter; or has a prior conviction of any 9 felony involving the use of a commercial motor vehicle pursuant to para- 10 graph (a) of subdivision one of section five hundred ten-a of this chap- 11 ter, then the civil penalty shall be seven hundred fifty dollars. No new 12 driver's license or permit shall be issued, or non-resident operating 13 privilege restored to such person unless such penalty has been paid. All 14 penalties collected by the department pursuant to the provisions of this 15 section shall be the property of the state and shall be paid into the 16 general fund of the state treasury. 17 (3) Effect of rehabilitation program. No period of revocation arising 18 out of this section may be set aside by the commissioner for the reason 19 that such person was a participant in the alcohol and drug rehabili- 20 tation program set forth in section eleven hundred ninety-six of this 21 article. 22 (e) Regulations. The commissioner shall promulgate such rules and 23 regulations as may be necessary to effectuate the provisions of subdivi- 24 sions one and two of this section. 25 (f) Evidence. Evidence of a refusal to submit to such chemical test or 26 any portion thereof or an evaluation conducted by a drug recognition 27 expert or advance roadside impairment detection enforcement certified 28 officer shall be admissible in any trial, proceeding or hearing based 29 upon a violation of the provisions of section eleven hundred ninety-two 30 of this article but only upon a showing that the person was given suffi- 31 cient warning, in clear and unequivocal language, of the effect of such 32 refusal and that the person persisted in the refusal. 33 (g) Results. Upon the request of the person who was tested, the 34 results of such test shall be made available to such person. 35 3. Compulsory chemical tests. (a) Court ordered chemical tests. 36 Notwithstanding the provisions of subdivision two of this section, no 37 person who operates a motor vehicle in this state may refuse to submit 38 to a chemical test of one or more of the following: breath, blood, urine 39 or saliva, for the purpose of determining the alcoholic and/or drug 40 content of the blood when a court order for such chemical test has been 41 issued in accordance with the provisions of this subdivision. 42 (b) When authorized. Upon refusal by any person to submit to a chemi- 43 cal test or any portion thereof as described above, the test shall not 44 be given unless a police officer or a district attorney, as defined in 45 subdivision thirty-two of section 1.20 of the criminal procedure law, 46 requests and obtains a court order to compel a person to submit to a 47 chemical test to determine the alcoholic or drug content of the person's 48 blood upon a finding of reasonable cause to believe that: 49 (1) such person was the operator of a motor vehicle [and in the course50of such operation a person other than the operator was killed or51suffered serious physical injury as defined in section 10.00 of the52penal law]; and 53 (2) a. either such person operated the vehicle in violation of any 54 subdivision of section eleven hundred ninety-two of this article, or b. 55 a breath and/or oral/bodily fluid test administered by a police officerS. 7509--A 143 A. 9509--A 1 in accordance with paragraph (b) of subdivision one of this section 2 indicates that alcohol has been consumed by such person; and 3 (3) such person has been placed under lawful arrest; and 4 (4) such person has refused to submit to a chemical test or any 5 portion thereof, requested in accordance with the provisions of para- 6 graph (a) of subdivision two of this section or is unable to give 7 consent to such a test. 8 (c) Reasonable cause; definition. For the purpose of this subdivision 9 "reasonable cause" shall be determined by viewing the totality of 10 circumstances surrounding the incident which, when taken together, indi- 11 cate that the operator was driving in violation of section eleven 12 hundred ninety-two of this article. Such circumstances may include, but 13 are not limited to: evidence that the operator was operating a motor 14 vehicle in violation of any provision of this article or any other 15 moving violation at the time of the incident; any visible indication of 16 alcohol or drug consumption or impairment by the operator; the existence 17 of an open container containing an alcoholic beverage and/or drug or 18 drugs in or around the vehicle driven by the operator; the odor of 19 cannabis or burnt cannabis; any other evidence surrounding the circum- 20 stances of the incident which indicates that the operator has been oper- 21 ating a motor vehicle while impaired by the consumption of alcohol or 22 drugs or intoxicated at the time of the incident. 23 (d) Court order; procedure. (1) An application for a court order to 24 compel submission to a chemical test or any portion thereof, may be made 25 to any supreme court justice, county court judge or district court judge 26 in the judicial district in which the incident occurred, or if the inci- 27 dent occurred in the city of New York before any supreme court justice 28 or judge of the criminal court of the city of New York. Such application 29 may be communicated by telephone, radio or other means of electronic 30 communication, or in person. 31 (2) The applicant must provide identification by name and title and 32 must state the purpose of the communication. Upon being advised that an 33 application for a court order to compel submission to a chemical test is 34 being made, the court shall place under oath the applicant and any other 35 person providing information in support of the application as provided 36 in subparagraph three of this paragraph. After being sworn the applicant 37 must state that the person from whom the chemical test was requested was 38 the operator of a motor vehicle and in the course of such operation a 39 person, other than the operator, has been killed or seriously injured 40 and, based upon the totality of circumstances, there is reasonable cause 41 to believe that such person was operating a motor vehicle in violation 42 of any subdivision of section eleven hundred ninety-two of this article 43 and, after being placed under lawful arrest such person refused to 44 submit to a chemical test or any portion thereof, in accordance with the 45 provisions of this section or is unable to give consent to such a test 46 or any portion thereof. The applicant must make specific allegations of 47 fact to support such statement. Any other person properly identified, 48 may present sworn allegations of fact in support of the applicant's 49 statement. 50 (3) Upon being advised that an oral application for a court order to 51 compel a person to submit to a chemical test is being made, a judge or 52 justice shall place under oath the applicant and any other person 53 providing information in support of the application. Such oath or oaths 54 and all of the remaining communication must be recorded, either by means 55 of a voice recording device or verbatim stenographic or verbatim long- 56 hand notes. If a voice recording device is used or a stenographic recordS. 7509--A 144 A. 9509--A 1 made, the judge must have the record transcribed, certify to the accura- 2 cy of the transcription and file the original record and transcription 3 with the court within seventy-two hours of the issuance of the court 4 order. If the longhand notes are taken, the judge shall subscribe a copy 5 and file it with the court within twenty-four hours of the issuance of 6 the order. 7 (4) If the court is satisfied that the requirements for the issuance 8 of a court order pursuant to the provisions of paragraph (b) of this 9 subdivision have been met, it may grant the application and issue an 10 order requiring the accused to submit to a chemical test to determine 11 the alcoholic and/or drug content of his blood and ordering the with- 12 drawal of a blood sample in accordance with the provisions of paragraph 13 (a) of subdivision four of this section. When a judge or justice deter- 14 mines to issue an order to compel submission to a chemical test based on 15 an oral application, the applicant therefor shall prepare the order in 16 accordance with the instructions of the judge or justice. In all cases 17 the order shall include the name of the issuing judge or justice, the 18 name of the applicant, and the date and time it was issued. It must be 19 signed by the judge or justice if issued in person, or by the applicant 20 if issued orally. 21 (5) Any false statement by an applicant or any other person in support 22 of an application for a court order shall subject such person to the 23 offenses for perjury set forth in article two hundred ten of the penal 24 law. 25 (6) The chief administrator of the courts shall establish a schedule 26 to provide that a sufficient number of judges or justices will be avail- 27 able in each judicial district to hear oral applications for court 28 orders as permitted by this section. 29 (e) Administration of compulsory chemical test. An order issued pursu- 30 ant to the provisions of this subdivision shall require that a chemical 31 test to determine the alcoholic and/or drug content of the operator's 32 blood must be administered. The provisions of paragraphs (a), (b) and 33 (c) of subdivision four of this section shall be applicable to any chem- 34 ical test administered pursuant to this section. 35 § 33-b. Subdivision 1 of section 1227 of the vehicle and traffic law, 36 as amended by section 3 of part F of chapter 60 of the laws of 2005, is 37 amended to read as follows: 38 1. The drinking of alcoholic beverages or consumption of cannabis, or 39 the possession of an open container containing an alcoholic beverage or 40 cannabis, in a motor vehicle located upon the public highways or right- 41 of-way public highway is prohibited. Any operator or passenger violating 42 this section shall be guilty of a traffic infraction. 43 The provisions of this section shall not be deemed to prohibit the 44 drinking of alcoholic beverages the consumption of cannabis, or the 45 possession of an open container containing an alcoholic beverage or 46 cannabis by passengers in passenger vehicles operated pursuant to a 47 certificate or permit issued by the department of transportation or the 48 United States department of transportation. Furthermore, the provisions 49 of this section shall not be deemed to prohibit the possession of wine 50 which is: (a) resealed in accordance with the provisions of subdivision 51 four of section eighty-one of the alcoholic beverage control law; and 52 (b) is transported in the vehicle's trunk or is transported behind the 53 last upright seat or in an area not normally occupied by the driver or 54 passenger in a motor vehicle that is not equipped with a trunk.S. 7509--A 145 A. 9509--A 1 § 34. 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 isS. 7509--A 146 A. 9509--A 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 § 34-a. 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 allS. 7509--A 147 A. 9509--A 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 thisS. 7509--A 148 A. 9509--A 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 § 35. 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 notS. 7509--A 149 A. 9509--A 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 § 36. 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 knownS. 7509--A 150 A. 9509--A 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.S. 7509--A 151 A. 9509--A 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 § 37. 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. Imposition of tax. 40 494. Registration and renewal. 41 495. Returns and payment of tax. 42 496. Records to be kept; penalties. 43 496-a. Returns to be secret. 44 496-b. Administrative provisions. 45 496-c. Illicit cannabis penalty. 46 § 492. Definitions. For purposes of this article, the following defi- 47 nitions shall apply: 48 (a) "Adult-use cannabis product" means cannabis, concentrated canna- 49 bis, and cannabis infused products. For purposes of this article, under 50 no circumstances shall adult-use cannabis product include medical canna- 51 bis or hemp as defined in section three of the cannabis law. 52 (b) "Cannabis" means all parts of a plant of the genus cannabis, 53 whether growing or not; the seeds thereof; the resin extracted from any 54 part of the plant; and every compound, manufacture, salt, derivative, 55 mixture, or preparation of the plant, its seeds or resin. For purposesS. 7509--A 152 A. 9509--A 1 of this article, cannabis does not include medical cannabis or hemp as 2 defined in section three of the cannabis law. 3 (c) "Cannabis flower" means the flower of a plant of the genus canna- 4 bis that has been harvested, dried, and cured, and prior to any process- 5 ing whereby the plant material is transformed into a concentrate, 6 including, but not limited to, concentrated cannabis, or an edible or 7 topical product containing cannabis or concentrated cannabis and other 8 ingredients. Cannabis flower excludes leaves and stem. 9 (d) "Cannabis trim" means all parts of a plant of the genus cannabis 10 other than cannabis flowers that have been harvested, dried, and cured, 11 and prior to any processing whereby the plant material is transformed 12 into a concentrate, including, but not limited to, concentrated canna- 13 bis, or an edible or topical product containing cannabis and other 14 ingredients. 15 (e) "Cultivation" has the same meaning as described in subdivision two 16 of section sixty-eight of the cannabis law. 17 (f) "Cultivator" has the same meaning as described in subdivisions one 18 and two of section sixty-eight of the cannabis law. 19 (g) "Illicit cannabis" means and includes any adult-use cannabis prod- 20 uct or medical cannabis on which any tax required to have been paid 21 under this chapter has not been paid; or any adult-use cannabis or 22 medical cannabis product, the form, packaging, or content of which is 23 not permitted by the office of cannabis management, as applicable. 24 (h) "Person" means every individual, partnership, limited liability 25 company, society, association, joint stock company, corporation, estate, 26 receiver, trustee, assignee, referee, and any other person acting in a 27 fiduciary or representative capacity, whether appointed by a court or 28 otherwise, and any combination of the foregoing. 29 (i) "Processor" has the same meaning as described in subdivisions one 30 and two of section sixty-nine of the cannabis law. 31 (j) "Retail dispensary" means a dispensary licensed to sell adult-use 32 cannabis products pursuant to section seventy-two of the cannabis law. 33 (k) "Sale" means any transfer of title, possession or both, exchange 34 or barter, rental, lease or license to use or consume, conditional or 35 otherwise, in any manner or by any means whatsoever for a consideration 36 or any agreement therefor. 37 (l) "Transfer" means to grant, convey, hand over, assign, sell, 38 exchange or barter, in any manner or by any means, with or without 39 consideration. 40 (m) "Wet cannabis" means a whole plant of the genus cannabis that has 41 been harvested and weighed within two hours of harvesting and has not 42 undergone any processing, including, but not limited to drying, curing, 43 trimming or increasing the ambient temperature in the room in which such 44 plant is held. 45 § 493. Imposition of tax. (a) There is hereby imposed and shall be 46 paid a tax on the cultivation of the following: (1) cannabis flower at 47 the rate of one dollar per dry weight gram; (2) cannabis trim at the 48 rate of twenty-five cents per dry-weight gram; and (3) wet cannabis at 49 the rate of fourteen cents per gram. This tax shall be paid by the 50 person to whom such flower, trim, or wet cannabis has been sold or 51 transferred and shall accrue at the time of such sale or transfer. Where 52 a person who processes or distributes cannabis flower, cannabis trim, or 53 wet cannabis is licensed under the cannabis law as a microbusiness, 54 cooperative or registered organization, such person shall be liable for 55 the tax imposed by this subdivision.S. 7509--A 153 A. 9509--A 1 (b) In addition to the tax imposed by subdivision (a) of this section, 2 there is hereby imposed a tax on the sale or transfer of adult-use 3 cannabis products by any person to a retail dispensary at the rate of 4 twenty percent of the amount charged by such person for such adult-use 5 cannabis products, which shall accrue at the time of such sale or trans- 6 fer. Where the retail dispensary is operated by a person licensed under 7 the cannabis law as a registered organization, such tax shall be paid by 8 the retail dispensary at the rate of twenty percent of the price charged 9 to the retail customer and shall accrue at the time of such sale. 10 (c) In addition to the taxes imposed by subdivisions (a) and (b) of 11 this section, there is hereby imposed a tax on the sale or transfer of 12 adult-use cannabis products by any person to a retail dispensary at the 13 rate of two percent of the amount charged by such person for such 14 adult-use cannabis products, which shall accrue at the time of such sale 15 or transfer. The tax imposed by this subdivision shall be in trust for 16 and on account of a city having a population of one million or more, or 17 a county, other than a county wholly within such a city, in which the 18 retail dispensary is located. Where the retail dispensary is operated 19 by a person licensed under the cannabis law as a registered organiza- 20 tion, such tax shall be paid by the retail dispensary at the rate of two 21 percent of the price charged to the retail customer. 22 (d) It shall be presumed that all adult-use cannabis products within 23 the state are subject to tax until the contrary is established, and the 24 burden of proof that the taxes imposed by subdivisions (a), (b), and (c) 25 of this section have been paid shall be upon the person in possession 26 thereof where such person holds any license under the cannabis law. 27 Every person holding a license under the cannabis law who possesses 28 adult-use cannabis products upon which such taxes have not been paid 29 shall be liable for the payment of such taxes, and the failure of such 30 person to produce to the commissioner or his or her authorized represen- 31 tative upon demand an invoice for any adult-use cannabis products in his 32 or her possession shall be presumptive evidence that the tax thereon has 33 not been paid and that such person is liable for the tax thereon, unless 34 evidence of such invoice or payment is later produced. 35 (e) Notwithstanding any other provision of law to the contrary, the 36 taxes imposed by article twenty of this chapter shall not apply to any 37 product subject to tax under this article. 38 § 494. Registration and renewal. (a) Every person to whom cannabis 39 flower, cannabis trim or wet cannabis is sold or transferred, and every 40 person licensed as a microbusiness, cooperative or registered organiza- 41 tion under the cannabis law must file with the commissioner a properly 42 completed application for a certificate of registration before engaging 43 in business. In order to apply for such certificate of registration, 44 such person must first be in possession of a valid license from the 45 office of cannabis management. An application for a certificate of 46 registration must be submitted electronically, on a form prescribed by 47 the commissioner, and must be accompanied by a non-refundable applica- 48 tion fee of six hundred dollars. A certificate of registration shall not 49 be assignable or transferable and shall be destroyed immediately upon 50 such person ceasing to do business as specified in such certificate, or 51 in the event that such business never commenced. 52 (b) The commissioner shall refuse to issue a certificate of registra- 53 tion to any applicant and shall revoke the certificate of registration 54 of any such person who does not possess a valid license from the office 55 of cannabis management. The commissioner may refuse to issue a certif- 56 icate of registration to any applicant where such applicant: (1) has aS. 7509--A 154 A. 9509--A 1 past-due liability as that term is defined in section one hundred seven- 2 ty-one-v of this chapter; (2) has had a certificate of registration 3 under this article, a license from the office of cannabis management, or 4 any license or registration provided for in this chapter revoked within 5 one year from the date on which such application was filed; (3) has had 6 a certificate of registration under this article, a license from the 7 office of cannabis management, or any license or registration provided 8 for in this chapter suspended where the suspension is in effect on the 9 date the application is filed or ended less than one year from such 10 date; (4) has been convicted of a crime provided for in this chapter 11 within one year from the date on which such application was filed or the 12 certificate was issued as applicable; (5) willfully fails to file a 13 report or return required by this article; (6) willfully files, causes 14 to be filed, gives or causes to be given a report, return, certificate 15 or affidavit required by this article which is false; or (7) willfully 16 fails to collect or truthfully account for or pay over any tax imposed 17 by this article. 18 (c) A certificate of registration shall be valid for the period speci- 19 fied thereon, unless earlier suspended or revoked. Upon the expiration 20 of the term stated on a certificate of registration, such certificate 21 shall be null and void. 22 (d) Every holder of a certificate of registration must notify the 23 commissioner of changes to any of the information stated on the certif- 24 icate, or of changes to any information contained in the application for 25 the certificate of registration. Such notification must be made on or 26 before the last day of the month in which a change occurs and must be 27 made electronically on a form prescribed by the commissioner. 28 (e) Every holder of a certificate of registration under this article 29 shall be required to reapply prior to such certificate's expiration, 30 during a reapplication period established by the commissioner. Such 31 reapplication period shall not occur more frequently than every two 32 years. Such reapplication shall be subject to the same requirements and 33 conditions as an initial application, including grounds for refusal and 34 the payment of the application fee. 35 (f) Any person who is required to obtain a certificate of registration 36 under subdivision (a) of this section who possesses adult-use cannabis 37 products without such certificate shall be subject to a penalty of five 38 hundred dollars for each month or part thereof during which adult-use 39 cannabis products are possessed without such certificate, not to exceed 40 ten thousand dollars in the aggregate. 41 § 495. Returns and payment of tax. Every person to whom cannabis 42 flower, cannabis trim or wet cannabis is sold or transferred, and every 43 person licensed as a microbusiness, cooperative or registered organiza- 44 tion under the cannabis law shall, on or before the twentieth day of the 45 month, file with the commissioner a return on forms to be prescribed by 46 the commissioner, showing the total weight of cannabis flower, cannabis 47 trim, and wet cannabis subject to tax pursuant to subdivision (a) of 48 section four hundred ninety-three of this article and the total amount 49 of tax due thereon in the preceding calendar month, and the total amount 50 of tax due under subdivisions (b) and (c) of such section on its sales 51 or transfers to, or sales by, a retail dispensary during the preceding 52 calendar month, along with such other information as the commissioner 53 may require. Every person required to file a return under this section 54 shall, at the time of filing such return, pay to the commissioner the 55 total amount of tax due for the period covered by such return. If aS. 7509--A 155 A. 9509--A 1 return is not filed when due, the tax shall be due on the day on which 2 the return is required to be filed. 3 § 496. Records to be kept; penalties. (a) Records to be kept. Every 4 person to whom cannabis flower, cannabis trim or wet cannabis is sold or 5 transferred, and every person licensed as a microbusiness, cooperative 6 or registered organization under the cannabis law shall maintain 7 complete and accurate records in such form as the commissioner may 8 require including, but not limited to, such items as the weight of the 9 cannabis flower, cannabis trim, and wet cannabis sold or transferred to 10 or produced by such person; the geographic location of every retail 11 dispensary to which such person sold or transferred adult-use cannabis 12 products; and any other record or information required by the commis- 13 sioner. Such records must be preserved for a period of three years after 14 the filing of the return to which such records relate and must be 15 provided to the commissioner upon request. 16 (b) Penalties. In addition to any other penalty provided in this arti- 17 cle or otherwise imposed by law: every person to whom cannabis flower, 18 cannabis trim or wet cannabis is sold or transferred, and every person 19 licensed as a microbusiness, cooperative or registered organization 20 under the cannabis law who fails to maintain or make available to the 21 commissioner the records required by this section is subject to a penal- 22 ty not to exceed five hundred dollars for the first month or part there- 23 of for which the failure occurs. This penalty may not be imposed more 24 than once for failures for the same monthly period or part thereof. If 25 the commissioner determines that a failure to maintain or make available 26 records in any month was entirely due to reasonable cause and not to 27 willful neglect, the commissioner must remit the penalty for that month. 28 § 496-a. Returns to be secret. (a) Except in accordance with proper 29 judicial order or as in this section or otherwise provided by law, it 30 shall be unlawful for the commissioner, any officer or employee of the 31 department, or any officer or person who, pursuant to this section, is 32 permitted to inspect any return or report or to whom a copy, an abstract 33 or a portion of any return or report is furnished, or to whom any infor- 34 mation contained in any return or report is furnished, or any person who 35 in any manner may acquire knowledge of the contents of a return or 36 report filed pursuant to this article to divulge or make known in any 37 manner the content or any other information contained in any return or 38 report required under this article. The officers charged with the custo- 39 dy of such returns or reports shall not be required to produce any of 40 them or evidence of anything contained in them in any action or proceed- 41 ing in any court, except on behalf of the state, the office of cannabis 42 management, or the commissioner in an action or proceeding involving the 43 collection of tax due under this chapter to which the state or the 44 commissioner is a party or a claimant or on behalf of any party to any 45 action or proceeding under the provisions of this article, when the 46 returns or the reports or the facts shown thereby are directly involved 47 in such action or proceeding, or in an action or proceeding related to 48 the regulation or taxation of adult-use cannabis products on behalf of 49 officers to whom information shall have been supplied as provided in 50 this section, in any of which events the courts may require the 51 production of, and may admit in evidence so much of said returns or 52 reports or of the facts shown thereby as are pertinent to the action or 53 proceeding and no more. Nothing herein shall be construed to prohibit 54 the commissioner, in his or her discretion, from allowing the inspection 55 or delivery of a certified copy of any return or report filed under this 56 article or of any information contained in any such return or report byS. 7509--A 156 A. 9509--A 1 or to a duly authorized officer or employee of the office of cannabis 2 management or by or to the attorney general or other legal represen- 3 tatives of the state when an action shall have been recommended or 4 commenced pursuant to this chapter in which such returns or reports or 5 the facts shown thereby are directly involved; or the inspection of the 6 returns or reports required under this article by the comptroller or 7 duly designated officer or employee of the state department of audit and 8 control, for purposes of the audit of a refund of any tax paid by the 9 wholesaler under this article; nor to prohibit the delivery to such 10 person or a duly authorized representative of such person, a certified 11 copy of any return or report filed by such person pursuant to this arti- 12 cle, nor to prohibit the publication of statistics so classified as to 13 prevent the identification of particular returns or reports and the 14 items thereof. This section shall also not be construed to prohibit the 15 disclosure, for tax administration purposes, to the division of the 16 budget and the office of the state comptroller, of information aggre- 17 gated from the returns filed by all persons subject to the taxes imposed 18 by this article, whether the number of such persons is one or more. 19 Provided further that, notwithstanding the provisions of this subdivi- 20 sion, the commissioner may, in his or her discretion, permit the proper 21 officer of any city having a population of one million or more and a 22 county, other than a county wholly within such a city, entitled to 23 receive any distribution of the monies received on account of the tax 24 imposed by subdivision (c) of section four hundred ninety-three of this 25 article, or the authorized representative of such officer, to inspect 26 any return filed under this article, or may furnish to such officer or 27 the officer's authorized representative an abstract of any such return 28 or supply such officer or representative with information concerning an 29 item contained in any such return, or disclosed by any investigation of 30 tax liability under this article. 31 (b) The commissioner, in his or her discretion, may permit the appro- 32 priate officers of any other state that regulates or taxes cannabis or 33 the duly authorized representatives of any such officers, to inspect 34 returns or reports made pursuant to this article, or may furnish to such 35 other officers, or their duly authorized representatives, a copy of any 36 such return or report or an abstract of the information therein 37 contained, or any portion thereof, or may supply any such officers or 38 such representatives with information relating to the business of a 39 person making returns or reports hereunder solely for purposes of tax 40 administration. The commissioner may refuse to supply information pursu- 41 ant to this subdivision to the officers of any other state if the stat- 42 utes of the state represented by such officers do not grant substantial- 43 ly similar privileges to the commissioner, but such refusal shall not be 44 mandatory. Information shall not be supplied to the officers of any 45 state that regulates or taxes cannabis, or the duly authorized represen- 46 tatives of any such officers, unless such officers or other represen- 47 tatives shall agree not to divulge or make known in any manner the 48 information so supplied, but such officers may transmit such information 49 to their employees or legal representatives when necessary, who in turn 50 shall be subject to the same restrictions as those hereby imposed upon 51 such officers or other representatives. 52 (c) Any officer or employee of the state who willfully violates the 53 provisions of subdivision (a) or (b) of this section shall be dismissed 54 from office and be incapable of holding any public office in this state 55 for a period of five years thereafter, and subject to criminal penalties 56 pursuant to article thirty-seven of this chapter.S. 7509--A 157 A. 9509--A 1 § 496-b. Administrative provisions. (a) The provisions of article 2 twenty-seven of this chapter shall apply to the tax imposed by this 3 article in the same manner and with the same force and effect as if the 4 language of such article had been incorporated in full into this section 5 and had expressly referred to the tax imposed by this article, except to 6 the extent that any provision of such article is either inconsistent 7 with a provision of this article or is not relevant to this article. 8 (b)(l) All taxes, interest, and penalties collected or received by the 9 commissioner under this article shall be deposited and disposed of 10 pursuant to the provisions of section one hundred seventy-one-a of this 11 chapter, provided that an amount equal to one hundred percent collected 12 under this article less any amount determined by the commissioner to be 13 reserved by the comptroller for refunds or reimbursements shall be paid 14 by the comptroller to the credit of the cannabis revenue fund estab- 15 lished by section ninety-nine-hh of the state finance law. Of the total 16 revenue collected or received under this article, the comptroller shall 17 retain such amount as the commissioner may determine to be necessary for 18 refunds. The commissioner is authorized and directed to deduct from the 19 registration fees under subdivision (a) of section four hundred ninety- 20 four of this article, before deposit into the cannabis revenue fund 21 designated by the comptroller, a reasonable amount necessary to effectu- 22 ate refunds of appropriations of the department to reimburse the depart- 23 ment for the costs incurred to administer, collect, and distribute the 24 taxes imposed by this article. 25 (2) Notwithstanding the foregoing, the commissioner shall certify to 26 the comptroller the total amount of tax, penalty and interest received 27 by him or her on account of the tax imposed by subdivision (c) of 28 section four hundred ninety-three of this article in trust for and on 29 account of a city having a population of one million or more and a coun- 30 ty, other than a county wholly within such a city, in which a retail 31 dispensary is located. On or before the twelfth day of each month, the 32 comptroller, after reserving such refund fund, shall pay to the appro- 33 priate fiscal officer of each such city having a population of one 34 million or more and a county, other than a county wholly within such a 35 city, the taxes, penalties and interest received and certified by the 36 commissioner for the preceding calendar month. 37 § 496-c. Illicit cannabis penalty. (a) In addition to any other civil 38 or criminal penalties that may apply, any person in possession of or 39 having control over illicit cannabis, as defined in section four hundred 40 ninety-two of this article, after notice and an opportunity for a hear- 41 ing, shall be liable for a civil penalty of not less than four hundred 42 dollars per ounce of illicit cannabis plant material, ten dollars per 43 milligram of tetrahydrocannabinol contained in illicit cannabis infused 44 products, one hundred dollars per gram of illicit cannabis concentrate 45 or extract, two hundred fifty dollars per immature illicit cannabis 46 plant, and one thousand dollars per mature cannabis plant, but not to 47 exceed eight hundred dollars per ounce of illicit cannabis plant materi- 48 al, twenty dollars per milligram of tetrahydrocannabinol contained in 49 illicit cannabis infused products, two hundred dollars per gram of 50 illicit cannabis concentrate or extract, five hundred dollars per imma- 51 ture illicit cannabis plant, and two thousand dollars per mature canna- 52 bis plant for a first violation, and for a second or subsequent 53 violation within three years following a prior violation shall be liable 54 for a civil penalty of not less than eight hundred dollars per ounce of 55 illicit cannabis plant material, twenty dollars per milligram of tetrah- 56 ydrocannabinol contained in illicit cannabis infused products, twoS. 7509--A 158 A. 9509--A 1 hundred dollars per gram of illicit cannabis concentrate or extract, 2 five hundred dollars per immature illicit cannabis plant, and two thou- 3 sand dollars per mature cannabis plant but not to exceed one thousand 4 dollars per ounce of illicit cannabis plant material, forty dollars per 5 milligram of tetrahydrocannabinol contained in illicit cannabis infused 6 products, four hundred dollars per gram of illicit cannabis concentrate 7 or extract, one thousand dollars per immature illicit cannabis plant, 8 and four thousand dollars per mature cannabis plant. 9 (b) No enforcement action taken under this section shall be construed 10 to limit any other criminal or civil liability of anyone in possession 11 of illicit cannabis. 12 § 38. Subdivision (a) of section 1115 of the tax law is amended by 13 adding a new paragraph 3-b to read as follows: 14 (3-b) Adult-use cannabis products as defined by article twenty-C of 15 this chapter. 16 § 39. Intentionally omitted. 17 § 40. Section 12 of chapter 90 of the laws of 2014 amending the public 18 health law, the tax law, the state finance law, the general business 19 law, the penal law and the criminal procedure law relating to medical 20 use of marihuana, is amended to read as follows: 21 § 12. This act shall take effect immediately [and]; provided, however 22 that sections one, three, five, seven-a, eight, nine, ten and eleven of 23 this act shall expire and be deemed repealed seven years after such 24 date; provided that the amendments to section 171-a of the tax law made 25 by section seven of this act shall take effect on the same date and in 26 the same manner as section 54 of part A of chapter 59 of the laws of 27 2014 takes effect and shall not expire and be deemed repealed; and 28 provided, further, that the amendments to subdivision 5 of section 29 410.91 of the criminal procedure law made by section eleven of this act 30 shall not affect the expiration and repeal of such section and shall 31 expire and be deemed repealed therewith. 32 § 41. The office of cannabis management, in consultation with the 33 division of the budget, the department of taxation and finance and the 34 department of health shall conduct a study of the effectiveness of this 35 act. Such study shall examine all aspects of the program, including the 36 economic and fiscal aspects of the program, the impact of the program on 37 the public health and safety of New York residents and the progress made 38 in achieving social justice goals and toward eliminating the illegal 39 market for cannabis products in New York. The office shall make recom- 40 mendations regarding the appropriate level of taxation as well as any 41 recommended changes to the taxation and regulatory structure of the 42 program. In addition, the office shall also recommend changes, if any, 43 necessary to improve and protect the public health and safety of New 44 Yorkers. Such study shall be conducted two years after the effective 45 date of this act and shall be presented to the governor, the temporary 46 president of the senate and the speaker of the assembly, no later than 47 October 1, 2023. 48 § 42. Section 102 of the alcoholic beverage control law is amended by 49 adding a new subdivision 8 to read as follows: 50 8. No alcoholic beverage retail licensee shall sell cannabis, nor have 51 or possess a license or permit to sell cannabis, on the same premises 52 where alcoholic beverages are sold. 53 § 43. Subdivisions 1, 4, 5, 6, 7 and 13 of section 12-102 of the 54 general obligations law, as added by chapter 406 of the laws of 2000, 55 are amended to read as follows:S. 7509--A 159 A. 9509--A 1 1. "Illegal drug" means any controlled substance [or marijuana] the 2 possession of which is an offense under the public health law or the 3 penal law. 4 4. "Grade one violation" means possession of one-quarter ounce or 5 more, but less than four ounces, or distribution of less than one ounce 6 of an illegal drug [other than marijuana, or possession of one pound or7twenty-five plants or more, but less than four pounds or fifty plants,8or distribution of less than one pound of marijuana]. 9 5. "Grade two violation" means possession of four ounces or more, but 10 less than eight ounces, or distribution of one ounce or more, but less 11 than two ounces, of an illegal drug [other than marijuana, or possession12of four pounds or more or fifty plants or distribution of more than one13pound but less than ten pounds of marijuana]. 14 6. "Grade three violation" means possession of eight ounces or more, 15 but less than sixteen ounces, or distribution of two ounces or more, but 16 less than four ounces, of a specified illegal drug [or possession of17eight pounds or more or seventy-five plants or more, but less than18sixteen pounds or one hundred plants, or distribution of more than five19pounds but less than ten pounds of marijuana]. 20 7. "Grade four violation" means possession of sixteen ounces or more 21 or distribution of four ounces or more of a specified illegal drug [or22possession of sixteen pounds or more or one hundred plants or more or23distribution of ten pounds or more of marijuana]. 24 13. "Drug trafficker" means a person convicted of a class A or class B 25 felony controlled substance [or marijuana offense] who, in connection 26 with the criminal conduct for which he or she stands convicted, 27 possessed, distributed, sold or conspired to sell a controlled substance 28 [or marijuana] which, by virtue of its quantity, the person's prominent 29 role in the enterprise responsible for the sale or distribution of such 30 controlled substance and other circumstances related to such criminal 31 conduct indicate that such person's criminal possession, sale or 32 conspiracy to sell such substance was not an isolated occurrence and was 33 part of an ongoing pattern of criminal activity from which such person 34 derived substantial income or resources and in which such person played 35 a leadership role. 36 § 44. Paragraph (g) of subdivision 1 of section 488 of the social 37 services law, as added by section 1 of part B of chapter 501 of the laws 38 of 2012, is amended to read as follows: 39 (g) "Unlawful use or administration of a controlled substance," which 40 shall mean any administration by a custodian to a service recipient of: 41 a controlled substance as defined by article thirty-three of the public 42 health law, without a prescription; or other medication not approved for 43 any use by the federal food and drug administration, except for the 44 administration of medical cannabis when such administration is in 45 accordance with article three of the cannabis law and any regulations 46 promulgated thereunder as well as the rules, regulations, policies, or 47 procedures of the state oversight agency or agencies governing such 48 custodians. It also shall include a custodian unlawfully using or 49 distributing a controlled substance as defined by article thirty-three 50 of the public health law, at the workplace or while on duty. 51 § 44-a. Subdivision 1 of section 151 of the social services law, as 52 amended by section 2 of part F of chapter 58 of the laws of 2014, is 53 amended to read as follows: 54 1. Unauthorized transactions. Except as otherwise provided in subdivi- 55 sion two of this section, no person, firm, establishment, entity, or 56 corporation (a) licensed under the provisions of the alcoholic beverageS. 7509--A 160 A. 9509--A 1 control law to sell liquor and/or wine at retail for off-premises 2 consumption; (b) licensed to sell beer at wholesale and also authorized 3 to sell beer at retail for off-premises consumption; (c) licensed or 4 authorized to conduct pari-mutuel wagering activity under the racing, 5 pari-mutuel wagering and breeding law; (d) licensed to participate in 6 charitable gaming under article fourteen-H of the general municipal law; 7 (e) licensed to participate in the operation of a video lottery facility 8 under section one thousand six hundred seventeen-a of the tax law; (f) 9 licensed to operate a gaming facility under section one thousand three 10 hundred eleven of the racing, pari-mutuel wagering and breeding law; 11 [or] (g) licensed to operate an adult-use cannabis retail dispensary 12 pursuant to the cannabis law: or (h) providing adult-oriented enter- 13 tainment in which performers disrobe or perform in an unclothed state 14 for entertainment, or making available the venue in which performers 15 disrobe or perform in an unclothed state for entertainment, shall cash 16 or accept any public assistance check or electronic benefit transfer 17 device issued by a public welfare official or department, or agent ther- 18 eof, as and for public assistance. 19 § 44-b. Subdivision 3 of section 151 of the social services law is 20 amended by adding a new paragraph (d) to read as follows: 21 (d) A violation of the provisions of subdivision one of this section 22 taking place at the licensed premises by a person, firm, establishment, 23 entity or corporation licensed pursuant to the cannabis law to operate 24 an adult-use cannabis retail dispensary shall subject such person, firm, 25 establishment, entity or corporation to penalties and injunctions pursu- 26 ant to section sixteen of article two of the cannabis law. 27 § 45. Paragraphs (e) and (f) of subdivision 1 of section 490 of the 28 social services law, as added by section 1 of part B of chapter 501 of 29 the laws of 2012, are amended and a new paragraph (g) is added to read 30 as follows: 31 (e) information regarding individual reportable incidents, incident 32 patterns and trends, and patterns and trends in the reporting and 33 response to reportable incidents is shared, consistent with applicable 34 law, with the justice center, in the form and manner required by the 35 justice center and, for facilities or provider agencies that are not 36 state operated, with the applicable state oversight agency which shall 37 provide such information to the justice center; [and] 38 (f) incident review committees are established; provided, however, 39 that the regulations may authorize an exemption from this requirement, 40 when appropriate, based on the size of the facility or provider agency 41 or other relevant factors. Such committees shall be composed of members 42 of the governing body of the facility or provider agency and other 43 persons identified by the director of the facility or provider agency, 44 including some members of the following: direct support staff, licensed 45 health care practitioners, service recipients and representatives of 46 family, consumer and other advocacy organizations, but not the director 47 of the facility or provider agency. Such committee shall meet regularly 48 to: (i) review the timeliness, thoroughness and appropriateness of the 49 facility or provider agency's responses to reportable incidents; (ii) 50 recommend additional opportunities for improvement to the director of 51 the facility or provider agency, if appropriate; (iii) review incident 52 trends and patterns concerning reportable incidents; and (iv) make 53 recommendations to the director of the facility or provider agency to 54 assist in reducing reportable incidents. Members of the committee shall 55 be trained in confidentiality laws and regulations, and shall comply 56 with section seventy-four of the public officers law[.]; andS. 7509--A 161 A. 9509--A 1 (g) safe storage, administration, and diversion prevention policies 2 regarding controlled substances and medical cannabis. 3 § 46. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal 4 law, as added by chapter 90 of the laws of 2014, are amended to read as 5 follows: 6 § 179.00 Criminal diversion of medical [marihuana] cannabis; defi- 7 nitions. 8 The following definitions are applicable to this article: 9 1. "Medical [marihuana] cannabis" means medical [marihuana] cannabis 10 as defined in [subdivision eight of section thirty-three hundred sixty11of the public health law] section three of the cannabis law. 12 2. "Certification" means a certification, made under section [thirty-13three hundred sixty-one of the public health law] thirty of the cannabis 14 law. 15 § 179.05 Criminal diversion of medical [marihuana] cannabis; limita- 16 tions. 17 The provisions of this article shall not apply to: 18 1. a practitioner authorized to issue a certification who acted in 19 good faith in the lawful course of his or her profession; or 20 2. a registered organization as that term is defined in [subdivision21nine of section thirty-three hundred sixty of the public health law] 22 section thirty-four of the cannabis law who acted in good faith in the 23 lawful course of the practice of pharmacy; or 24 3. a person who acted in good faith seeking treatment for a medical 25 condition or assisting another person to obtain treatment for a medical 26 condition. 27 § 179.10 Criminal diversion of medical [marihuana] cannabis in the first 28 degree. 29 A person is guilty of criminal diversion of medical [marihuana] canna- 30 bis in the first degree when he or she is a practitioner, as that term 31 is defined in [subdivision twelve of section thirty-three hundred sixty32of the public health law] section three of the cannabis law, who issues 33 a certification with knowledge of reasonable grounds to know that (i) 34 the recipient has no medical need for it, or (ii) it is for a purpose 35 other than to treat a serious condition as defined in [subdivision seven36of section thirty-three hundred sixty of the public health law] section 37 three of the cannabis law. 38 Criminal diversion of medical [marihuana] cannabis in the first degree 39 is a class E felony. 40 § 179.11 Criminal diversion of medical [marihuana] cannabis in the 41 second degree. 42 A person is guilty of criminal diversion of medical [marihuana] canna- 43 bis in the second degree when he or she sells, trades, delivers, or 44 otherwise provides medical [marihuana] cannabis to another with know- 45 ledge or reasonable grounds to know that the recipient is not registered 46 under [title five-A of article thirty-three of the public health law] 47 article three of the cannabis law. 48 Criminal diversion of medical [marihuana] cannabis in the second 49 degree is a class B misdemeanor. 50 § 179.15 Criminal retention of medical [marihuana] cannabis. 51 A person is guilty of criminal retention of medical [marihuana] canna- 52 bis when, being a certified patient or designated caregiver, as those 53 terms are defined in [subdivisions three and five of section thirty-54three hundred sixty of the public health law, respectively] section 55 three of the cannabis law, he or she knowingly obtains, possesses, 56 stores or maintains an amount of [marihuana] cannabis in excess of theS. 7509--A 162 A. 9509--A 1 amount he or she is authorized to possess under the provisions of [title2five-A of article thirty-three of the public health law] article three 3 of the cannabis law. 4 Criminal retention of medical [marihuana] cannabis is a class A misde- 5 meanor. 6 § 47. Section 220.78 of the penal law, as added by chapter 154 of the 7 laws of 2011, is amended to read as follows: 8 § 220.78 Witness or victim of drug or alcohol overdose. 9 1. A person who, in good faith, seeks health care for someone who is 10 experiencing a drug or alcohol overdose or other life threatening 11 medical emergency shall not be charged or prosecuted for a controlled 12 substance offense under article two hundred twenty or a [marihuana] 13 cannabis offense under article two hundred twenty-one of this title, 14 other than an offense involving sale for consideration or other benefit 15 or gain, or charged or prosecuted for possession of alcohol by a person 16 under age twenty-one years under section sixty-five-c of the alcoholic 17 beverage control law, or for possession of drug paraphernalia under 18 article thirty-nine of the general business law, with respect to any 19 controlled substance, [marihuana] cannabis, alcohol or paraphernalia 20 that was obtained as a result of such seeking or receiving of health 21 care. 22 2. A person who is experiencing a drug or alcohol overdose or other 23 life threatening medical emergency and, in good faith, seeks health care 24 for himself or herself or is the subject of such a good faith request 25 for health care, shall not be charged or prosecuted for a controlled 26 substance offense under this article or a [marihuana] cannabis offense 27 under article two hundred twenty-one of this title, other than an 28 offense involving sale for consideration or other benefit or gain, or 29 charged or prosecuted for possession of alcohol by a person under age 30 twenty-one years under section sixty-five-c of the alcoholic beverage 31 control law, or for possession of drug paraphernalia under article thir- 32 ty-nine of the general business law, with respect to any substance, 33 [marihuana] cannabis, alcohol or paraphernalia that was obtained as a 34 result of such seeking or receiving of health care. 35 3. Definitions. As used in this section the following terms shall have 36 the following meanings: 37 (a) "Drug or alcohol overdose" or "overdose" means an acute condition 38 including, but not limited to, physical illness, coma, mania, hysteria 39 or death, which is the result of consumption or use of a controlled 40 substance or alcohol and relates to an adverse reaction to or the quan- 41 tity of the controlled substance or alcohol or a substance with which 42 the controlled substance or alcohol was combined; provided that a 43 patient's condition shall be deemed to be a drug or alcohol overdose if 44 a prudent layperson, possessing an average knowledge of medicine and 45 health, could reasonably believe that the condition is in fact a drug or 46 alcohol overdose and (except as to death) requires health care. 47 (b) "Health care" means the professional services provided to a person 48 experiencing a drug or alcohol overdose by a health care professional 49 licensed, registered or certified under title eight of the education law 50 or article thirty of the public health law who, acting within his or her 51 lawful scope of practice, may provide diagnosis, treatment or emergency 52 services for a person experiencing a drug or alcohol overdose. 53 4. It shall be an affirmative defense to a criminal sale controlled 54 substance offense under this article or a criminal sale of [marihuana] 55 cannabis offense under article two hundred twenty-one of this title, not 56 covered by subdivision one or two of this section, with respect to anyS. 7509--A 163 A. 9509--A 1 controlled substance or [marihuana] cannabis which was obtained as a 2 result of such seeking or receiving of health care, that: 3 (a) the defendant, in good faith, seeks health care for someone or for 4 him or herself who is experiencing a drug or alcohol overdose or other 5 life threatening medical emergency; and 6 (b) the defendant has no prior conviction for the commission or 7 attempted commission of a class A-I, A-II or B felony under this arti- 8 cle. 9 5. Nothing in this section shall be construed to bar the admissibility 10 of any evidence in connection with the investigation and prosecution of 11 a crime with regard to another defendant who does not independently 12 qualify for the bar to prosecution or for the affirmative defense; nor 13 with regard to other crimes committed by a person who otherwise quali- 14 fies under this section; nor shall anything in this section be construed 15 to bar any seizure pursuant to law, including but not limited to pursu- 16 ant to section thirty-three hundred eighty-seven of the public health 17 law. 18 6. The bar to prosecution described in subdivisions one and two of 19 this section shall not apply to the prosecution of a class A-I felony 20 under this article, and the affirmative defense described in subdivision 21 four of this section shall not apply to the prosecution of a class A-I 22 or A-II felony under this article. 23 § 48. Subdivision 1 of section 260.20 of the penal law, as amended by 24 chapter 362 of the laws of 1992, is amended as follows: 25 1. He knowingly permits a child less than eighteen years old to enter 26 or remain in or upon a place, premises or establishment where sexual 27 activity as defined by article one hundred thirty, two hundred thirty or 28 two hundred sixty-three of this [chapter] part or activity involving 29 controlled substances as defined by article two hundred twenty of this 30 [chapter or involving marihuana as defined by article two hundred twen-31ty-one of this chapter] part is maintained or conducted, and he knows or 32 has reason to know that such activity is being maintained or conducted; 33 or 34 § 49. Section 89-h of the state finance law, as added by chapter 90 of 35 the laws of 2014, is amended to read as follows: 36 § 89-h. Medical [marihuana] cannabis trust fund. 1. There is hereby 37 established in the joint custody of the state comptroller and the 38 commissioner of taxation and finance a special fund to be known as the 39 "medical [marihuana] cannabis trust fund." 40 2. The medical [marihuana] cannabis trust fund shall consist of all 41 moneys required to be deposited in the medical [marihuana] cannabis 42 trust fund pursuant to the provisions of section four hundred ninety of 43 the tax law. 44 3. The moneys in the medical [marihuana] cannabis trust fund shall be 45 kept separate and shall not be commingled with any other moneys in the 46 custody of the commissioner of taxation and finance and the state comp- 47 troller. 48 4. The moneys of the medical [marihuana] cannabis trust fund, follow- 49 ing appropriation by the legislature, shall be allocated upon a certif- 50 icate of approval of availability by the director of the budget as 51 follows: (a) Twenty-two and five-tenths percent of the monies shall be 52 transferred to the counties in New York state in which the medical 53 [marihuana] cannabis was manufactured and allocated in proportion to the 54 gross sales originating from medical [marihuana] cannabis manufactured 55 in each such county; (b) twenty-two and five-tenths percent of the 56 moneys shall be transferred to the counties in New York state in whichS. 7509--A 164 A. 9509--A 1 the medical [marihuana] cannabis was dispensed and allocated in propor- 2 tion to the gross sales occurring in each such county; (c) five percent 3 of the monies shall be transferred to the office of [alcoholism and4substance abuse services] addiction services and supports, which shall 5 use that revenue for additional drug abuse prevention, counseling and 6 treatment services; and (d) five percent of the revenue received by the 7 department shall be transferred to the division of criminal justice 8 services, which shall use that revenue for a program of discretionary 9 grants to state and local law enforcement agencies that demonstrate a 10 need relating to [title five-A of article thirty-three of the public11health law] article three of the cannabis law; said grants could be used 12 for personnel costs of state and local law enforcement agencies. For 13 purposes of this subdivision, the city of New York shall be deemed to be 14 a county. 15 § 50. The state finance law is amended by adding a new section 99-hh 16 to read as follows: 17 § 99-hh. New York state cannabis revenue fund. 1. There is hereby 18 established in the joint custody of the state comptroller and the 19 commissioner of taxation and finance a special fund to be known as the 20 "New York state cannabis revenue fund" (the "fund"). 21 2. Monies in the fund shall be kept separate from and shall not be 22 commingled with any other monies in the custody of the comptroller or 23 the commissioner of taxation and finance. Provided, however that any 24 monies of the fund not required for immediate use may, at the discretion 25 of the comptroller, in consultation with the director of the budget, be 26 invested by the comptroller in obligations of the United States or the 27 state. The proceeds of any such investment shall be retained by the fund 28 as assets to be used for purposes of the fund. 29 3. Except as set forth in subdivisions two and four of this section, 30 monies from the fund shall not be used to make payments for any purpose 31 other than the purposes set forth in subdivisions two and four of this 32 section. 33 4. The "New York state cannabis revenue fund" shall consist of monies 34 received by the commissioner of taxation and finance pursuant to subdi- 35 visions (a) and (b) of section four hundred ninety-three of the tax law 36 and all other monies credited or transferred thereto from any other fund 37 or source. Monies of such fund shall be expended for the following 38 purposes: administration of the regulated cannabis program, data gather- 39 ing, monitoring and reporting, the governor's traffic safety committee, 40 implementation and administration of the initiatives and programs of the 41 social and economic equity plan in the office of cannabis management, 42 substance abuse, harm reduction and mental health treatment and 43 prevention, public health education and intervention, research on canna- 44 bis uses and applications, program evaluation and improvements, and any 45 other identified purpose recommended by the executive director of the 46 office of cannabis management and approved by the director of the budg- 47 et. 48 § 51. Subdivision 2 of section 3371 of the public health law, as 49 amended by chapter 90 of the laws of 2014, is amended to read as 50 follows: 51 2. The prescription monitoring program registry may be accessed, under 52 such terms and conditions as are established by the department for 53 purposes of maintaining the security and confidentiality of the informa- 54 tion contained in the registry, by: 55 (a) a practitioner, or a designee authorized by such practitioner 56 pursuant to paragraph (b) of subdivision two of section thirty-threeS. 7509--A 165 A. 9509--A 1 hundred forty-three-a [or section thirty-three hundred sixty-one] of 2 this article, for the purposes of: (i) informing the practitioner that a 3 patient may be under treatment with a controlled substance by another 4 practitioner; (ii) providing the practitioner with notifications of 5 controlled substance activity as deemed relevant by the department, 6 including but not limited to a notification made available on a monthly 7 or other periodic basis through the registry of controlled substances 8 activity pertaining to his or her patient; (iii) allowing the practi- 9 tioner, through consultation of the prescription monitoring program 10 registry, to review his or her patient's controlled substances history 11 as required by section thirty-three hundred forty-three-a [or section12thirty-three hundred sixty-one] of this article; and (iv) providing to 13 his or her patient, or person authorized pursuant to paragraph (j) of 14 subdivision one of this section, upon request, a copy of such patient's 15 controlled substance history as is available to the practitioner through 16 the prescription monitoring program registry; or 17 (b) a pharmacist, pharmacy intern or other designee authorized by the 18 pharmacist pursuant to paragraph (b) of subdivision three of section 19 thirty-three hundred forty-three-a of this article, for the purposes of: 20 (i) consulting the prescription monitoring program registry to review 21 the controlled substances history of an individual for whom one or more 22 prescriptions for controlled substances or certifications for [marihua-23na] cannabis is presented to the pharmacist, pursuant to section thir- 24 ty-three hundred forty-three-a of this article; and (ii) receiving from 25 the department such notifications of controlled substance activity as 26 are made available by the department; or 27 (c) an individual employed by a registered organization for the 28 purpose of consulting the prescription monitoring program registry to 29 review the controlled substances history of an individual for whom one 30 or more certifications for [marihuana] cannabis is presented to that 31 registered organization[, pursuant to section thirty-three hundred32sixty-four of this article]. Unless otherwise authorized by this arti- 33 cle, an individual employed by a registered organization will be 34 provided access to the prescription monitoring program in the sole 35 discretion of the commissioner. 36 § 52. Subdivision 3 of section 853 of the general business law, as 37 added by chapter 90 of the laws of 2014, is amended to read as follows: 38 3. This article shall not apply to any sale, furnishing or possession 39 which is for a lawful purpose under [title five-A of article thirty-40three of the public health law] the cannabis law. 41 § 53. Subdivision 5 of section 410.91 of the criminal procedure law, 42 as amended by chapter 90 of the laws of 2014, is amended to read as 43 follows: 44 5. For the purposes of this section, a "specified offense" is an 45 offense defined by any of the following provisions of the penal law: 46 burglary in the third degree as defined in section 140.20, criminal 47 mischief in the third degree as defined in section 145.05, criminal 48 mischief in the second degree as defined in section 145.10, grand larce- 49 ny in the fourth degree as defined in subdivision one, two, three, four, 50 five, six, eight, nine or ten of section 155.30, grand larceny in the 51 third degree as defined in section 155.35 (except where the property 52 consists of one or more firearms, rifles or shotguns), unauthorized use 53 of a vehicle in the second degree as defined in section 165.06, criminal 54 possession of stolen property in the fourth degree as defined in subdi- 55 vision one, two, three, five or six of section 165.45, criminal 56 possession of stolen property in the third degree as defined in sectionS. 7509--A 166 A. 9509--A 1 165.50 (except where the property consists of one or more firearms, 2 rifles or shotguns), forgery in the second degree as defined in section 3 170.10, criminal possession of a forged instrument in the second degree 4 as defined in section 170.25, unlawfully using slugs in the first degree 5 as defined in section 170.60, criminal diversion of medical [marihuana] 6 cannabis in the first degree as defined in section 179.10 or an attempt 7 to commit any of the aforementioned offenses if such attempt constitutes 8 a felony offense; or a class B felony offense defined in article two 9 hundred twenty where a sentence is imposed pursuant to paragraph (a) of 10 subdivision two of section 70.70 of the penal law; or any class C, class 11 D or class E controlled substance [or marihuana] cannabis felony offense 12 as defined in article two hundred twenty or two hundred twenty-one. 13 § 54. Subdivision 5 of section 410.91 of the criminal procedure law, 14 as amended by section 8 of part AAA of chapter 56 of the laws of 2009, 15 is amended to read as follows: 16 5. For the purposes of this section, a "specified offense" is an 17 offense defined by any of the following provisions of the penal law: 18 burglary in the third degree as defined in section 140.20, criminal 19 mischief in the third degree as defined in section 145.05, criminal 20 mischief in the second degree as defined in section 145.10, grand larce- 21 ny in the fourth degree as defined in subdivision one, two, three, four, 22 five, six, eight, nine or ten of section 155.30, grand larceny in the 23 third degree as defined in section 155.35 (except where the property 24 consists of one or more firearms, rifles or shotguns), unauthorized use 25 of a vehicle in the second degree as defined in section 165.06, criminal 26 possession of stolen property in the fourth degree as defined in subdi- 27 vision one, two, three, five or six of section 165.45, criminal 28 possession of stolen property in the third degree as defined in section 29 165.50 (except where the property consists of one or more firearms, 30 rifles or shotguns), forgery in the second degree as defined in section 31 170.10, criminal possession of a forged instrument in the second degree 32 as defined in section 170.25, unlawfully using slugs in the first degree 33 as defined in section 170.60, or an attempt to commit any of the afore- 34 mentioned offenses if such attempt constitutes a felony offense; or a 35 class B felony offense defined in article two hundred twenty where a 36 sentence is imposed pursuant to paragraph (a) of subdivision two of 37 section 70.70 of the penal law; or any class C, class D or class E 38 controlled substance or [marihuana] cannabis felony offense as defined 39 in article two hundred twenty or two hundred twenty-one. 40 § 55. The criminal procedure law is amended by adding a new section 41 440.46-a to read as follows: 42 § 440.46-a Motion for resentence; persons convicted of certain marihuana 43 offenses. 44 1. A person currently serving a sentence for a conviction, whether by 45 trial or by open or negotiated plea, who would not have been guilty of 46 an offense or who would have been guilty of a lesser offense on and 47 after the effective date of this section had this section been in effect 48 at the time of his or her conviction may petition for a recall or 49 dismissal of sentence before the trial court that entered the judgment 50 of conviction in his or her case to request resentencing or dismissal in 51 accordance with article two hundred twenty-one of the penal law. 52 2. Upon receiving a motion under subdivision one of this section the 53 court shall presume the movant satisfies the criteria in subdivision one 54 of this section unless the party opposing the motion proves by clear and 55 convincing evidence that the movant does not satisfy the criteria. If 56 the movant satisfies the criteria in subdivision one of this section,S. 7509--A 167 A. 9509--A 1 the court shall grant the motion to vacate the sentence or to resentence 2 because it is legally invalid. In exercising its discretion, the court 3 may consider, but shall not be limited to, the following: (a) the 4 movant's criminal conviction history, including the type of crimes 5 committed, the extent of injury to victims, the length of prior prison 6 commitments, and the remoteness of the crimes. (b) the movant's disci- 7 plinary record and record of rehabilitation while incarcerated. 8 3. A person who is serving a sentence and resentenced pursuant to 9 subdivision two of this section shall be given credit for any time 10 already served and shall be subject to supervision for one year follow- 11 ing completion of his or her time in custody or shall be subject to 12 whatever supervision time he or she would have otherwise been subject to 13 after release, whichever is shorter, unless the court, in its 14 discretion, as part of its resentencing order, releases the person from 15 supervision. Such person is subject to parole supervision under section 16 60.04 of the penal law or post-release supervision under section 70.45 17 of the penal law by the designated agency and the jurisdiction of the 18 court in the county in which the offender is released or resides, or in 19 which an alleged violation of supervision has occurred, for the purpose 20 of hearing petitions to revoke supervision and impose a term of custody. 21 4. Under no circumstances may resentencing under this section result 22 in the imposition of a term longer than the original sentence, or the 23 reinstatement of charges dismissed pursuant to a negotiated plea agree- 24 ment. 25 5. A person who has completed his or her sentence for a conviction 26 under the former article two hundred twenty-one of the penal law, wheth- 27 er by trial or open or negotiated plea, who would not have been guilty 28 of an offense or who would have been guilty of a lesser offense on and 29 after the effective date of this section had this section been in effect 30 at the time of his or her conviction, may file an application before the 31 trial court that entered the judgment of conviction in his or her case 32 to have the conviction, in accordance with article two hundred twenty- 33 one of the penal law: (a) dismissed because the prior conviction is now 34 legally invalid and sealed in accordance with section 160.50 of this 35 chapter; (b) redesignated (or "reclassified") as a violation and sealed 36 in accordance with section 160.50 of this chapter; or (c) redesignated 37 (reclassified) as a misdemeanor. 38 6. The court shall presume the petitioner satisfies the criteria in 39 subdivision five of this section unless the party opposing the applica- 40 tion proves by clear and convincing evidence that the petitioner does 41 not satisfy the criteria in subdivision five of this section. Once the 42 applicant satisfies the criteria in subdivision five of this section, 43 the court shall redesignate (or "reclassify") the conviction as a misde- 44 meanor, redesignate (reclassify) the conviction as a violation and seal 45 the conviction, or dismiss and seal the conviction as legally invalid 46 under this section had this section been in effect at the time of his or 47 her conviction. 48 7. Unless requested by the applicant, no hearing is necessary to grant 49 or deny an application filed under subdivision five of this section. 50 8. Any felony conviction that is vacated and resentenced under subdi- 51 vision two or designated as a misdemeanor or violation under subdivision 52 six of this section shall be considered a misdemeanor or violation for 53 all purposes. Any misdemeanor conviction that is vacated and resentenced 54 under subdivision two of this section or designated as a violation under 55 subdivision six of this section shall be considered a violation for all 56 purposes.S. 7509--A 168 A. 9509--A 1 9. If the court that originally sentenced the movant is not available, 2 the presiding judge shall designate another judge to rule on the peti- 3 tion or application. 4 10. Nothing in this section is intended to diminish or abrogate any 5 rights or remedies otherwise available to the petitioner or applicant. 6 11. Nothing in this and related sections is intended to diminish or 7 abrogate the finality of judgments in any case not falling within the 8 purview of this section. 9 12. The provisions of this section shall apply equally to juvenile 10 delinquency adjudications and dispositions under section five hundred 11 one-e of the executive law if the juvenile would not have been guilty of 12 an offense or would have been guilty of a lesser offense under this 13 section had this section been in effect at the time of his or her 14 conviction. 15 13. The office of court administration shall promulgate and make 16 available all necessary forms to enable the filing of the petitions and 17 applications provided in this section no later than sixty days following 18 the effective date of this section. 19 § 56. Transfer of employees. Notwithstanding any other provision of 20 law, rule, or regulation to the contrary, upon the transfer of any func- 21 tions from the department of health to the office of cannabis management 22 for the regulation and control of medical cannabis pursuant to this act, 23 employees performing those functions shall be transferred to the office 24 of cannabis management pursuant to subdivision 2 of section 70 of the 25 civil service law. Employees transferred pursuant to this section shall 26 be transferred without further examination or qualification and shall 27 retain their respective civil service classifications, status and 28 collective bargaining unit designations and collective bargaining agree- 29 ments. The civil service department may re-classify any person employed 30 in a permanent, classified, competitive, or exempt class position imme- 31 diately prior to being transferred to the office of cannabis management 32 pursuant to subdivision 2 of section 70 of the civil service law, to 33 align with the duties and responsibilities of their positions upon 34 transfer. Employees whose positions are subsequently re-classified to 35 align with the duties and responsibilities of their positions upon being 36 transferred to the office of cannabis management shall hold such posi- 37 tions without further examination or qualification. Notwithstanding any 38 other provision of this act, the names of those competitive permanent 39 employees on promotion eligible lists in their former department shall 40 be added and interfiled on a promotion eligible list in the new office, 41 as the state civil service department deems appropriate. 42 § 57. Transfer of records. All books, papers, and property of the 43 department of health related to the administration of the medical mari- 44 juana program shall be deemed to be in the possession of the executive 45 director of the office of cannabis management and shall continue to be 46 maintained by the office of cannabis management. 47 § 58. Continuity of authority. For the purpose of succession of all 48 functions, powers, duties and obligations transferred and assigned to, 49 devolved upon and assumed by it pursuant to this act, the office of 50 cannabis management shall be deemed and held to constitute the continua- 51 tion of the department of health's medical marijuana program. 52 § 59. Completion of unfinished business. Any business or other matter 53 undertaken or commenced by the department of health pertaining to or 54 connected with the functions, powers, obligations and duties hereby 55 transferred and assigned to the office of cannabis management and pend-S. 7509--A 169 A. 9509--A 1 ing on the effective date of this act, may be conducted and completed by 2 the office of cannabis management. 3 § 60. Continuation of rules and regulations. All rules, regulations, 4 acts, orders, determinations, and decisions of the department of health 5 pertaining to medical marijuana, including the functions and powers 6 transferred and assigned pursuant to this act, in force at the time of 7 such transfer and assumption, shall continue in full force and effect as 8 rules, regulations, acts, orders, determinations and decisions of the 9 office of cannabis management until duly modified or abrogated by the 10 board of the office of cannabis management. 11 § 61. Terms occurring in laws, contracts and other documents. Whenev- 12 er the department of health, or commissioner thereof, is referred to or 13 designated in any law, contract or document pertaining to the functions, 14 powers, obligations and duties hereby transferred to and assigned to the 15 office of cannabis management, such reference or designation shall be 16 deemed to refer to the board of cannabis management, or the executive 17 director thereof, as applicable. 18 § 62. Existing rights and remedies preserved. No existing right or 19 remedy of any character shall be lost, impaired or affected by any 20 provisions of this act. 21 § 63. Pending actions and proceedings. No action or proceeding pending 22 at the time when this act shall take effect, brought by or against the 23 department of health, or the commissioner thereof, shall be affected by 24 any provision of this act, but the same may be prosecuted or defended in 25 the name of the executive director of the office of cannabis management. 26 In all such actions and proceedings, the executive director of the 27 office of cannabis management, upon application to the court, shall be 28 substituted as a party. 29 § 63-a. Severability. If any clause, sentence, paragraph, subdivision, 30 section or part of this act shall be adjudged by any court of competent 31 jurisdiction to be invalid, such judgment shall not affect, impair, or 32 invalidate the remainder thereof, but shall be confined in its operation 33 to the clause, sentence, paragraph, subdivision, section or part thereof 34 directly involved in the controversy in which such judgment shall have 35 been rendered. It is hereby declared to be the intent of the legislature 36 that this act would have been enacted even if such invalid provisions 37 had not been included herein. 38 § 64. This act shall take effect immediately; provided, however that: 39 (i) sections 92, 93 and 109 of article 5 of the cannabis law as added 40 by section two of this act shall take effect January 1, 2021; 41 (ii) section six-a of this act shall take effect on the same date as 42 chapter 614 of the laws of 2019, takes effect; 43 (iii) the amendments to subdivision 1 of section 171-a of the tax law 44 made by section thirty-four of this act shall not affect the expiration 45 of such subdivision and shall expire therewith, when upon such date the 46 provisions of section thirty-four-a of this act shall take effect; 47 (iv) the taxes imposed by section thirty-seven of this act shall apply 48 on and after April 1, 2021 to: (1) the sale or transfer of cannabis 49 flower, cannabis trim or wet cannabis to any person; (2) cultivation of 50 cannabis flower, cannabis trim or wet cannabis by a person licensed 51 under the cannabis law as a microbusiness, cooperative or registered 52 organization; (3) the sale or transfer of adult-use cannabis products to 53 a retail dispensary; and (4) the sale of adult-use cannabis products to 54 a consumer by a retail dispensary operated by a person licensed under 55 the cannabis law as a registered organization; and provided, further,S. 7509--A 170 A. 9509--A 1 that the exemption provided by section thirty-eight of this act shall 2 apply to sales made or uses occurring on and after April 1, 2021; 3 (v) the amendments to article 179 of the penal law made by section 4 forty-six of this act shall not affect the repeal of such article and 5 shall be deemed to be repealed therewith; 6 (vi) the amendments to section 89-h of the state finance law made by 7 section forty-nine of this act shall not affect the repeal of such 8 section and shall be deemed repealed therewith; 9 (vii) the amendments to section 221.00 of the penal law made by 10 section fourteen of this act shall be subject to the expiration of such 11 section when upon such date the provisions of section fifteen of this 12 act shall take effect; 13 (viii) the amendments to subdivision 2 of section 3371 of the public 14 health law made by section fifty-one of this act shall not affect the 15 expiration of such subdivision and shall be deemed to expire therewith; 16 (ix) the amendments to subdivision 3 of section 853 of the general 17 business law made by section fifty-two of this act shall not affect the 18 repeal of such subdivision and shall be deemed to be repealed therewith; 19 and 20 (x) the amendments to subdivision 5 of section 410.91 of the criminal 21 procedure law made by section fifty-three of this act shall not affect 22 the repeal of such section and shall be subject to the expiration and 23 reversion of such subdivision when upon such date the provisions of 24 section fifty-four of this act shall take effect. 25 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 26 sion, section or part of this act shall be adjudged by any court of 27 competent jurisdiction to be invalid, such judgment shall not affect, 28 impair, or invalidate the remainder thereof, but shall be confined in 29 its operation to the clause, sentence, paragraph, subdivision, section 30 or part thereof directly involved in the controversy in which such judg- 31 ment shall have been rendered. It is hereby declared to be the intent of 32 the legislature that this act would have been enacted even if such 33 invalid provisions had not been included herein. 34 § 3. This act shall take effect immediately provided, however, that 35 the applicable effective date of Parts A through BB of this act shall be 36 as specifically set forth in the last section of such Parts.
