Bill Text: NY S01527 | 2019-2020 | General Assembly | Amended


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

Spectrum: Partisan Bill (Democrat 21-0)

Status: (Introduced) 2019-06-12 - PRINT NUMBER 1527B [S01527 Detail]

Download: New_York-2019-S01527-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         1527--B

                               2019-2020 Regular Sessions

                    IN SENATE

                                    January 15, 2019
                                       ___________

        Introduced  by Sens. KRUEGER, BAILEY, BIAGGI, COMRIE, GIANARIS, HOYLMAN,
          JACKSON, KENNEDY, LIU, MAY, MONTGOMERY, MYRIE, PARKER, RAMOS,  RIVERA,
          SALAZAR, SANDERS, SAVINO, SEPULVEDA, SERRANO -- 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  --  committee  discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee

        AN ACT in relation to constituting chapter 7-A of the consolidated laws,
          in relation to the creation of a new office of cannabis management, as
          an  independent  entity  within  the  division  of  alcoholic beverage
          control, providing for the licensure of persons authorized  to  culti-
          vate, process, distribute and sell cannabis and the use of cannabis by
          persons  aged  twenty-one or older; to amend the public health law, in
          relation to the description of cannabis; to amend the  penal  law,  in
          relation  to  the  growing  and  use of cannabis by persons twenty-one
          years of age or older; to amend the tax law, in relation to  providing
          for  the levying of taxes on cannabis; to amend the criminal procedure
          law, the civil practice law and rules, the general business  law,  the
          state  finance  law,  the  executive law, the penal law, the alcoholic
          beverage control law, the general obligations law, the social services
          law, the agriculture and markets law and the vehicle and traffic  law,
          in  relation  to making conforming changes; to amend the public health
          law, in relation to the definition of  smoking;  to  amend  the  state
          finance  law,  in relation to establishing the New York state cannabis
          revenue fund, the New York state drug treatment and  public  education
          fund  and  the  New  York state community grants reinvestment fund; to
          amend chapter 90 of the laws of 2014 amending the public  health  law,
          the  tax  law,  the  state  finance law, the general business law, the
          penal law and the criminal procedure law relating to  medical  use  of
          marihuana, in relation to the effectiveness thereof; to repeal certain
          provisions  of  the  public health law relating to growing of cannabis
          and medical use of marihuana; to repeal article 221 of the  penal  law
          relating  to  offenses involving marihuana; to repeal paragraph (f) of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07592-11-9

        S. 1527--B                          2

          subdivision 2 of section 850 of the general business law  relating  to
          drug related paraphernalia; to repeal certain provisions of the crimi-
          nal  procedure law relating to certain criminal actions; and to repeal
          certain  provisions  of  the  agriculture  and markets law relating to
          industrial hemp

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1. This act shall be known and may be cited as the "marihuana
     2  regulation and taxation act".
     3    § 2. Chapter 7-A of the consolidated  laws  is  enacted,  to  read  as
     4  follows:

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

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

    13    Section  1. Short title.  This chapter shall be known and may be cited
    14  and referred to as the "cannabis law".
    15    § 2. Legislative findings  and  intent.  The  legislature  finds  that
    16  existing  marihuana  laws have not been beneficial to the welfare of the
    17  general public. Existing laws have been ineffective in reducing or curb-
    18  ing marihuana use and have instead resulted  in  devastating  collateral
    19  consequences  that inhibit an otherwise law-abiding citizen's ability to
    20  access housing, employment  opportunities,  and  other  vital  services.
    21  Existing  laws  have  also  created an illicit market which represents a
    22  threat to public health and reduces the ability of  the  legislature  to
    23  deter the accessing of marihuana by minors. Existing marihuana laws have
    24  also  disproportionately  impacted  African-American and Latino communi-
    25  ties.
    26    The intent of this act is to regulate,  control,  and  tax  marihuana,
    27  heretofore known as cannabis, generate millions of dollars in new reven-
    28  ue,  prevent  access  to  cannabis  by those under the age of twenty-one
    29  years, reduce the illegal drug market and reduce violent  crime,  reduce
    30  participation  of  otherwise law-abiding citizens in the illicit market,
    31  end the racially disparate impact of existing cannabis laws  and  create
    32  new industries and increase employment.
    33    Nothing in this act is intended to limit the authority of any district
    34  government  agency  or office or employers to enact and enforce policies
    35  pertaining to cannabis in the workplace,  to  allow  driving  under  the
    36  influence  of  cannabis,  to allow individuals to engage in conduct that
    37  endangers others, to allow smoking cannabis in any location where  smok-
    38  ing tobacco is prohibited, or to require any individual to engage in any
    39  conduct  that violates federal law or to exempt anyone from any require-
    40  ment of federal law or pose any obstacle to the federal  enforcement  of
    41  federal law.
    42    It  is  the intent of this act that no child shall be the subject of a
    43  child neglect or abuse investigation or proceeding  based  solely  on  a

        S. 1527--B                          3

     1  parent's  alleged  cannabis use, or activity made lawful by this act.  A
     2  newborn child's positive toxicology result for cannabis, is  not  suffi-
     3  cient  on its own to support a finding of child neglect or abuse. Enact-
     4  ment  of  this  act shall provide sufficient basis for New York state to
     5  favorably resolve open investigations and to amend and seal individuals'
     6  family court records and records of indicated  child  abuse  or  neglect
     7  reports  currently  in the statewide central register of child abuse and
     8  maltreatment based solely on the use of cannabis or where  the  reporter
     9  of  suspected  abuse  or  neglect  was a law enforcement agency or staff
    10  person and the report was based solely upon  the  presence  of  a  child
    11  during a cannabis-related arrest.
    12    The  legislature  further  finds  and  declares that it is in the best
    13  interest of the state to regulate medical cannabis, adult-use  cannabis,
    14  and  hemp  extracts under one independent agency, known as the office of
    15  cannabis management.
    16    § 3. Definitions. Whenever used  in  this  chapter,  unless  otherwise
    17  expressly  stated  or  unless  the  context or subject matter requires a
    18  different meaning, the following terms  shall  have  the  representative
    19  meanings hereinafter set forth or indicated:
    20    1.  "Applicant"  means  a  resident  of New York state aged twenty-one
    21  years or older applying for any cannabis or hemp license or special  use
    22  permit issued by the office of cannabis management.
    23    2.  "Cannabinoid  extractor"  means a person licensed by the office to
    24  acquire, possess, extract and manufacture  hemp  extract  from  licensed
    25  cannabinoid  growers  for  the  manufacture  and  sale  of  hemp extract
    26  products marketed for cannabinoid content and used or intended for human
    27  or animal consumption or use.
    28    3. "Cannabinoid grower" means a person licensed by the office, and  in
    29  compliance  with article twenty-nine of the agriculture and markets law,
    30  to acquire, possess, cultivate, and sell hemp extract for  its  cannabi-
    31  noid content.
    32    4.  "Cannabis"  means  all  parts  of the plant of the genus Cannabis,
    33  whether growing or not; the seeds thereof; the resin extracted from  any
    34  part  of  the  plant; and every compound, manufacture, salt, derivative,
    35  mixture, or preparation of the plant, its seeds or resin.   It does  not
    36  include  the mature stalks of the plant, fiber produced from the stalks,
    37  oil or cake made from the seeds of the plant, any other compound,  manu-
    38  facture,  salt, derivative, mixture, or preparation of the mature stalks
    39  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    40  sterilized seed of the plant which is incapable of germination.  It does
    41  not include hemp extract as defined by this section.
    42    5. "Cannabis consumer" means a person twenty-one years of age or older
    43  acting in accordance with any provision of this chapter.
    44    6. "Cannabis flower" means the flower of a plant of the genus Cannabis
    45  that  has  been harvested, dried, and cured, and prior to any processing
    46  whereby the plant material is transformed into a concentrate, including,
    47  but not limited to, concentrated cannabis, or an edible or topical prod-
    48  uct containing cannabis or concentrated cannabis and other  ingredients.
    49  Cannabis flower excludes leaves and stem.
    50    7.  "Cannabis product" or "adult-use cannabis" means cannabis, concen-
    51  trated cannabis, and cannabis-infused products for  use  by  a  cannabis
    52  consumer.
    53    8.  "Cannabis-infused products" means products that have been manufac-
    54  tured and contain either cannabis or  concentrated  cannabis  and  other
    55  ingredients that are intended for use or consumption.

        S. 1527--B                          4

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

        S. 1527--B                          5

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

        S. 1527--B                          6

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

        S. 1527--B                          7

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

    10                                  ARTICLE 2
    11                NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT

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

        S. 1527--B                          8

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

        S. 1527--B                          9

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

        S. 1527--B                         10

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

        S. 1527--B                         11

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

        S. 1527--B                         12

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

        S. 1527--B                         13

     1                                  ARTICLE 3
     2                              MEDICAL CANNABIS

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

        S. 1527--B                         14

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

        S. 1527--B                         15

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

        S. 1527--B                         16

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

        S. 1527--B                         17

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

        S. 1527--B                         18

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

        S. 1527--B                         19

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

        S. 1527--B                         20

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

        S. 1527--B                         21

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

        S. 1527--B                         22

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

        S. 1527--B                         23

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

        S. 1527--B                         24

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

        S. 1527--B                         25

     1    (g) conditions under which cannabis grown by licensed cannabis produc-
     2  ers and other product types from licensed  cannabis  processors  may  be
     3  donated to cannabis research licensees; and
     4    (h) any additional requirements deemed necessary by the office.
     5    6. A cannabis research license issued pursuant to this section must be
     6  issued  in  the  name of the applicant and specify the location at which
     7  the cannabis researcher intends to operate, which  must  be  within  the
     8  state of New York.
     9    7. The application fee for a cannabis research license shall be deter-
    10  mined by the executive director on an annual basis.
    11    8. Each cannabis research licensee shall issue an annual report to the
    12  office.  The office shall review such report and make a determination as
    13  to whether the research project continues to meet  the  research  quali-
    14  fications under this section.
    15    §  39. Registered organizations and adult-use cannabis.  1. The execu-
    16  tive director shall have the authority to  grant  some  or  all  of  the
    17  registered  organizations  registered  with the department of health and
    18  currently registered and in good standing with the office,  the  ability
    19  to  be  licensed  to  cultivate, process, or sell adult-use cannabis and
    20  cannabis products, pursuant to any fees, rules or conditions  prescribed
    21  by  the executive director in regulation and subject to the restrictions
    22  on licensed adult-use cultivators and processors on having any ownership
    23  interest in a licensed adult-use  retail  dispensary  pursuant  to  this
    24  chapter.
    25    2.  Prior to granting the licenses provided by subdivision one of this
    26  section, the office shall assess a  registered  organization  registered
    27  prior to the enactment of this chapter with a one-time special licensing
    28  fee  so  that  they  may become authorized to bypass the restrictions on
    29  having any ownership interest in a licensed adult-use retail dispensary,
    30  provided that the fees generated from such assessment shall be  used  to
    31  administer  incubators  and low or zero-interest loans and other assist-
    32  ance to qualified social equity applicants. The  timing  and  manner  in
    33  which  registered  organizations  may be granted such authority shall be
    34  determined by the executive director in regulation.
    35    § 40. Relation to other laws.  1. The provisions of this article shall
    36  apply, except that where a provision  of  this  article  conflicts  with
    37  another provision of this chapter, this article shall apply.
    38    2. Medical cannabis shall not be deemed to be a "drug" for purposes of
    39  article one hundred thirty-seven of the education law.
    40    §  41.  Protections  for  the  medical use of cannabis.   1. Certified
    41  patients, designated caregivers, designated caregiver facilities,  prac-
    42  titioners,  registered  organizations  and  the  employees of registered
    43  organizations, and cannabis researchers shall not be subject to  arrest,
    44  prosecution, or penalty in any manner, or denied any right or privilege,
    45  including  but  not limited to civil penalty or disciplinary action by a
    46  business or occupational or  professional  licensing  board  or  bureau,
    47  solely  for the certified medical use or manufacture of cannabis, or for
    48  any other action or conduct in accordance with this article.
    49    2. Being a certified patient shall be deemed to be having a "disabili-
    50  ty" under article fifteen of the executive law, section forty-c  of  the
    51  civil  rights law, sections 240.00, 485.00, and 485.05 of the penal law,
    52  and section 200.50 of the criminal procedure law. This subdivision shall
    53  not bar the  enforcement  of  a  policy  prohibiting  an  employee  from
    54  performing  his  or her employment duties while impaired by a controlled
    55  substance. This subdivision shall not require any person or entity to do

        S. 1527--B                         26

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

    34                                  ARTICLE 4
    35                             ADULT-USE CANNABIS
    36  Section 60. Licenses issued.
    37          61. License application.
    38          62. Information to be requested in applications for licenses.
    39          63. Fees.
    40          64. Selection criteria.
    41          65. Limitations of licensure; duration.
    42          66. License renewal.
    43          67. Amendments; changes in ownership and  organizational  struc-
    44                ture.
    45          68. Adult-use cultivator license.
    46          69. Adult-use processor license.
    47          70. Adult-use cooperative license.
    48          71. Adult-use distributor license.
    49          72. Adult-use retail dispensary license.
    50          73. Micro business license.
    51          74. Notification  to  municipalities of adult-use retail dispen-
    52                sary.
    53          75. On-site consumption license;  provisions  governing  on-site
    54                consumption licenses.
    55          76. Record keeping and tracking.

        S. 1527--B                         27

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

        S. 1527--B                         28

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

        S. 1527--B                         29

     1    (d)  the  applicant possesses or has the right to use sufficient land,
     2  buildings, and equipment to properly carry on the activity described  in
     3  the application;
     4    (e) the applicant qualifies as a social equity applicant or sets out a
     5  plan for benefiting communities and people disproportionally impacted by
     6  cannabis law enforcement;
     7    (f)  it is in the public interest that such license be granted, taking
     8  into consideration, but not limited to, the following criteria:
     9    (i) that it is a privilege, and not a right,  to  cultivate,  process,
    10  distribute, and sell cannabis;
    11    (ii) the number, classes, and character of other licenses in proximity
    12  to the location and in the particular municipality or subdivision there-
    13  of;
    14    (iii)  evidence  that  all  necessary  licenses  and permits have been
    15  obtained from the state and all other governing bodies;
    16    (iv) effect of the grant of the license  on  pedestrian  or  vehicular
    17  traffic, and parking, in proximity to the location;
    18    (v) the existing noise level at the location and any increase in noise
    19  level that would be generated by the proposed premises;
    20    (vi)  the ability to mitigate adverse environmental impacts, including
    21  but not limited to energy usage and carbon emissions;
    22    (vii) the effect on the production and availability  of  cannabis  and
    23  cannabis products; and
    24    (viii) any other factors specified by law or regulation that are rele-
    25  vant  to  determine that granting a license would promote public conven-
    26  ience and advantage and the public interest of the community;
    27    (g) the applicant and its managing officers are of good moral  charac-
    28  ter  and  do  not  have  an  ownership  or  controlling interest in more
    29  licenses or permits than allowed by this chapter;
    30    (h) the applicant has entered into a  labor  peace  agreement  with  a
    31  bona-fide labor organization that is actively engaged in representing or
    32  attempting  to  represent the applicant's employees, and the maintenance
    33  of such a labor peace agreement shall be an ongoing  material  condition
    34  of  licensure. In evaluating applications from entities with twenty-five
    35  or more employees, the office shall give priority to applicants that are
    36  a party to a collective bargaining  agreement  with  a  bona-fide  labor
    37  organization  in  New  York or in another state, and uses union labor to
    38  construct its licensed facility;
    39    (i) the applicant will contribute to communities and people dispropor-
    40  tionately harmed by cannabis law enforcement and report  these  contrib-
    41  utions to the office;
    42    (j)  if  the  application  is for an adult-use cultivator or processor
    43  license, the environmental impact of the facility to be licensed; and
    44    (k) 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
    47  should be issued a license, the  executive  director  shall  notify  the
    48  applicant in writing of the specific reason or reasons for denial.
    49    3. The executive director shall have the authority to, in consultation
    50  with  the  cannabis  advisory  board,  determine  the number of licenses
    51  issued pursuant to this article.
    52    § 65. Limitations of licensure; duration.  1. No license of  any  kind
    53  may  be  issued to a person under the age of twenty-one years, nor shall
    54  any licensee employ anyone under the age of twenty-one years.
    55    2. No licensee shall sell, deliver, or give away or cause or permit or
    56  procure to be sold, delivered or given away any cannabis to any  person,

        S. 1527--B                         30

     1  actually  or  apparently,  under  the age of twenty-one years unless the
     2  person under twenty-one is also a certified patient and the licensee  is
     3  appropriately licensed under article three of this chapter.
     4    3.  The  office  shall  have  the authority to limit, by canopy, plant
     5  count, square footage or other means, the amount of cannabis allowed  to
     6  be grown, processed, distributed or sold by a licensee.
     7    4.  All  licenses  under this article shall expire two years after the
     8  date of issue.
     9    § 66. License renewal.  1. Each license, issued pursuant to this arti-
    10  cle, may be renewed upon application therefore by the licensee  and  the
    11  payment  of  the  fee for such license as prescribed by this article. In
    12  the case of applications for renewals, the office may dispense with  the
    13  requirements of such statements as it deems unnecessary in view of those
    14  contained  in  the application made for the original license, but in any
    15  event the submission of photographs of the licensed  premises  shall  be
    16  dispensed  with,  provided  the  applicant for such renewal shall file a
    17  statement with the office to the effect that there has  been  no  alter-
    18  ation of such premises since the original license was issued. The office
    19  may  make  such  rules as it deems necessary, not inconsistent with this
    20  chapter, regarding applications for renewals of licenses and permits and
    21  the time for making the same.
    22    2. Each applicant must submit  to  the  office  documentation  of  the
    23  racial,  ethnic,  and  gender diversity of the applicant's employees and
    24  owners prior to a license being renewed. In  addition,  the  office  may
    25  create  a  social responsibility framework agreement and make the adher-
    26  ence to such agreement a conditional requirement of license renewal.
    27    3. The office shall provide an application for renewal  of  a  license
    28  issued under this article not less than ninety days prior to the expira-
    29  tion of the current license.
    30    4.  The  office  may  only issue a renewal license upon receipt of the
    31  prescribed renewal application and renewal fee from a  licensee  if,  in
    32  addition  to the criteria in this section, the licensee's license is not
    33  under suspension and has not been revoked.
    34    5. Each applicant must maintain a labor peace agreement with  a  bona-
    35  fide  labor  organization  that  is  actively engaged in representing or
    36  attempting to represent the applicant's employees and the maintenance of
    37  such a labor peace agreement shall be an ongoing material  condition  of
    38  licensure.  Each  applicant  must  provide  evidence of the execution of
    39  their plan for benefitting communities and people required  for  initial
    40  licensing pursuant to section sixty-four of this article.
    41    §  67.  Amendments; changes in ownership and organizational structure.
    42  1. Licenses issued pursuant to this article shall specify:
    43    (a) the name and address of the licensee;
    44    (b) the activities permitted by the license;
    45    (c) the land, buildings and  facilities  that  may  be  used  for  the
    46  licensed activities of the licensee;
    47    (d) a unique license number issued by the office to the licensee; and
    48    (e) such other information as the executive director shall deem neces-
    49  sary to assure compliance with this chapter.
    50    2.  Upon  application  of  a  licensee to the office, a license may be
    51  amended to allow the licensee to relocate within the state,  to  add  or
    52  delete  licensed  activities or facilities, or to amend the ownership or
    53  organizational structure of the entity that is the licensee. The  execu-
    54  tive director shall establish a fee for such amendments.
    55    3.  A  license shall become void by a change in ownership, substantial
    56  corporate change or location without prior written approval of the exec-

        S. 1527--B                         31

     1  utive director. The executive director may promulgate regulations allow-
     2  ing for certain types of changes in ownership without the need for prior
     3  written approval.
     4    4.  For purposes of this section, "substantial corporate change" shall
     5  mean:
     6    (a) for a corporation, a change of eighty percent or more of the offi-
     7  cers and/or directors, or a transfer of eighty percent or more of  stock
     8  of such corporation, or an existing stockholder obtaining eighty percent
     9  or more of the stock of such corporation; or
    10    (b)  for  a  limited  liability company, a change of eighty percent or
    11  more of the managing members of the company, or  a  transfer  of  eighty
    12  percent  or  more  of ownership interest in said company, or an existing
    13  member obtaining a cumulative of eighty percent or more of the ownership
    14  interest in said company.
    15    § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
    16  license  shall  authorize  the  acquisition, possession, cultivation and
    17  sale of cannabis from the licensed premises of the adult-use  cultivator
    18  by  such  licensee to duly licensed processors in this state. The execu-
    19  tive director may  establish  regulations  allowing  licensed  adult-use
    20  cultivators  to  perform certain types of minimal processing without the
    21  need for an adult-use processor license.
    22    2. For purposes of this section, cultivation shall include, but not be
    23  limited to, the planting, growing, cloning, harvesting, drying,  curing,
    24  grading and trimming of cannabis.
    25    3.  A  person holding an adult-use cultivator's license may apply for,
    26  and obtain, one processor's license and one distributor's  license  that
    27  may only be used to distribute their own cannabis and cannabis products.
    28    4.  A  person  holding  an adult-use cultivator's license may not also
    29  hold a retail dispensary license pursuant to this article and no  adult-
    30  use  cannabis  cultivator  shall  have  a  direct  or indirect interest,
    31  including by stock ownership, interlocking directors, mortgage or  lien,
    32  personal  or real property, or any other means, in any premises licensed
    33  as an adult-use cannabis retail dispensary or in any  business  licensed
    34  as an adult-use cannabis retail dispensary pursuant to this article.
    35    5.  A  person holding an adult-use cultivator's license may not hold a
    36  license to distribute cannabis under this article  unless  the  licensed
    37  cultivator is also licensed as a processor under this article.
    38    6.  No  person  may have a direct or indirect financial or controlling
    39  interest in more than one adult-use cultivator license  issued  pursuant
    40  to this chapter.
    41    §  69.  Adult-use  processor license.   1. A processor's license shall
    42  authorize the acquisition, possession, processing and sale  of  cannabis
    43  from  the licensed premises of the adult-use cultivator by such licensee
    44  to duly licensed distributors.
    45    2. For purposes of this section, processing shall include, but not  be
    46  limited  to, blending, extracting, infusing, packaging, labeling, brand-
    47  ing and otherwise making  or  preparing  cannabis  products.  Processing
    48  shall not include the cultivation of cannabis.
    49    3. No processor shall be engaged in any other business on the premises
    50  to  be  licensed;  except  that  nothing contained in this chapter shall
    51  prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
    52  utor from operating on the same premises and from a person  holding  all
    53  three licenses.
    54    4.  No  cannabis  processor licensee may hold more than three cannabis
    55  processor licenses.

        S. 1527--B                         32

     1    5. No adult-use cannabis processor shall have  a  direct  or  indirect
     2  interest, including by stock ownership, interlocking directors, mortgage
     3  or  lien, personal or real property, or any other means, in any premises
     4  licensed as an adult-use cannabis retail dispensary or in  any  business
     5  licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
     6  article.
     7    § 70. Adult-use cooperative license.  1. A cooperative  license  shall
     8  authorize  the acquisition, possession, cultivation, processing and sale
     9  from the licensed premises of the adult-use cooperative by such licensee
    10  to duly licensed distributors, on-site consumption sites, and/or  retail
    11  dispensaries; but not directly to cannabis consumers.
    12    2. To be licensed as an adult-use cooperative, the cooperative must:
    13    (i)  be  comprised  of residents of the state of New York as a limited
    14  liability company or limited liability partnership under the laws of the
    15  state, or an appropriate business structure as determined by the  execu-
    16  tive director;
    17    (ii) subordinate capital, both as regards control over the cooperative
    18  undertaking,  and  as  regards  the  ownership of the pecuniary benefits
    19  arising therefrom;
    20    (iii) be democratically controlled by the members  themselves  on  the
    21  basis of one vote per member;
    22    (iv)  vest  in  and allocate with priority to and among the members of
    23  all increases arising from their cooperative endeavor in  proportion  to
    24  the members' active participation in the cooperative endeavor; and
    25    (v)  the  cooperative  must operate according to the seven cooperative
    26  principles published by the International Cooperative Alliance in  nine-
    27  teen hundred ninety-five.
    28    3.  No  natural  person  shall  be a member of more than one adult-use
    29  cooperative licensed pursuant to this section.
    30    4. No natural person or member of an adult-use cooperative license may
    31  have a direct or indirect financial or controlling interest in any other
    32  adult-use cannabis license issued pursuant to this chapter.
    33    5. No adult-use cannabis cooperative shall have a direct  or  indirect
    34  interest, including by stock ownership, interlocking directors, mortgage
    35  or  lien, personal or real property, or any other means, in any premises
    36  licensed as an adult-use cannabis retail dispensary or in  any  business
    37  licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
    38  chapter.
    39    6. The executive director shall promulgate regulations governing coop-
    40  erative licenses, including, but not limited to,  the  establishment  of
    41  canopy  limits on the size and scope of cooperative licensees, and other
    42  measures designed to incentivize the use and licensure of cooperatives.
    43    § 71. Adult-use distributor license.  1. A distributor's license shall
    44  authorize the acquisition, possession, distribution and sale of cannabis
    45  from the licensed premises of a licensed adult-use processor, microbusi-
    46  ness or registered organization authorized pursuant to this  chapter  to
    47  sell adult-use cannabis, to duly licensed retail dispensaries.
    48    2. No distributor shall have a direct or indirect economic interest in
    49  any adult-use retail dispensary licensed pursuant to this article, or in
    50  any registered organization registered pursuant to article three of this
    51  chapter.  This  restriction shall not prohibit a registered organization
    52  authorized pursuant to section thirty-nine of this chapter,  from  being
    53  granted  licensure  by  the  office  to  distribute  adult-use  cannabis
    54  products cultivated and processed by the registered organization only to
    55  the registered organization's own licensed adult-use  retail  dispensar-
    56  ies.

        S. 1527--B                         33

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

        S. 1527--B                         34

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

        S. 1527--B                         35

     1    (b)  the number, classes, and character of other licenses in proximity
     2  to the location and in the particular municipality or subdivision there-
     3  of;
     4    (c)  evidence  that  all  necessary  licenses  and  permits  have been
     5  obtained from the state and all other governing bodies;
     6    (d) whether there is a demonstrated need for spaces to consume  canna-
     7  bis;
     8    (e)  effect  of  the  grant  of the license on pedestrian or vehicular
     9  traffic, and parking, in proximity to the location;
    10    (f) the existing noise level at the location and any increase in noise
    11  level that would be generated by the proposed premises; and
    12    (g) any other factors specified by law or regulation that are relevant
    13  to determine that granting a license would  promote  public  convenience
    14  and advantage and the public interest of the community.
    15    4.  If  the  office  shall  disapprove  an  application for an on-site
    16  consumption license, it shall state and file in its offices the  reasons
    17  therefor  and  shall  notify  the  applicant thereof. Such applicant may
    18  thereupon apply to the office for a review of such action in a manner to
    19  be prescribed by the rules of the office.
    20    5. No adult-use cannabis on-site consumption licensee shall keep  upon
    21  the  licensed  premises  any  adult-use  cannabis  products except those
    22  purchased from a licensed distributor, adult-use cooperative, or  micro-
    23  business  authorized  to sell adult-use cannabis, and only in containers
    24  approved by the office. Such containers shall have affixed thereto  such
    25  labels  as  may  be  required  by the rules of the office.   No cannabis
    26  retail licensee for on-site  consumption  shall  reuse,  refill,  tamper
    27  with,  adulterate,  dilute  or  fortify the contents of any container of
    28  cannabis products as received from the manufacturer or distributor.
    29    6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
    30  give  away, or cause or permit or procure to be sold, delivered or given
    31  away any cannabis for consumption  on  the  premises  where  sold  in  a
    32  container or package containing more than one gram of cannabis flower or
    33  one serving of cannabis infused product.
    34    7.  Except  where  a  permit  to do so is obtained pursuant to section
    35  405.10 of the penal law, no cannabis on-site consumption licensee  shall
    36  suffer,  permit,  or promote an event on its premises wherein any person
    37  shall use, explode, or cause to explode, any fireworks  or  other  pyro-
    38  technics  in  a building as defined in paragraph e of subdivision one of
    39  section 405.10 of the penal law, that is  covered  by  such  license  or
    40  possess  such fireworks or pyrotechnics for such purpose. In addition to
    41  any other penalty provided by law, a violation of this subdivision shall
    42  constitute an adequate ground for instituting a proceeding  to  suspend,
    43  cancel,  or  revoke  the  license of the violator in accordance with the
    44  applicable procedures specified in this chapter;  provided  however,  if
    45  more than one licensee is participating in a single event, upon approval
    46  by the office, only one licensee must obtain such permit.
    47    8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
    48  consumption under this chapter shall be permitted to have any opening or
    49  means of entrance or  passageway  for  persons  or  things  between  the
    50  licensed premises and any other room or place in the building containing
    51  the  licensed  premises,  or  any adjoining or abutting premises, unless
    52  ingress and egress is restricted by an employee, agent of the  licensee,
    53  or  other  method  approved  by  the office of controlling access to the
    54  facility.
    55    9. Each cannabis on-site consumption licensee shall keep and  maintain
    56  upon the licensed premises, adequate records of all transactions involv-

        S. 1527--B                         36

     1  ing the business transacted by such licensee which shall show the amount
     2  of  cannabis products, in an applicable metric measurement, purchased by
     3  such licensee together with the names, license  numbers  and  places  of
     4  business  of  the  persons from whom the same were purchased, the amount
     5  involved in such purchases, as well as the sales  of  cannabis  products
     6  made  by  such  licensee.  The office is hereby authorized to promulgate
     7  rules and regulations permitting an on-site licensee  operating  two  or
     8  more  premises separately licensed to sell cannabis products for on-site
     9  consumption to inaugurate or retain in this state methods  or  practices
    10  of  centralized  accounting,  bookkeeping,  control  records, reporting,
    11  billing, invoicing or payment respecting purchases, sales or  deliveries
    12  of cannabis products, or methods and practices of centralized receipt or
    13  storage  of  cannabis  products within this state without segregation or
    14  earmarking for any such  separately  licensed  premises,  wherever  such
    15  methods  and  practices  assure  the  availability,  at  such licensee's
    16  central or main office in this state, of data reasonably needed for  the
    17  enforcement  of  this  chapter.  Such  records  shall  be  available for
    18  inspection by any authorized representative of the office.
    19    10. All retail licensed premises shall be subject to inspection by any
    20  peace officer, acting pursuant to his or her special duties,  or  police
    21  officer and by the duly authorized representatives of the office, during
    22  the  hours  when the said premises are open for the transaction of busi-
    23  ness.
    24    11. A cannabis on-site consumption licensee shall not provide cannabis
    25  products to any person under the age of twenty-one.
    26    § 76. Record keeping and tracking. 1. The executive director shall, by
    27  regulation, require each licensee pursuant to this article to adopt  and
    28  maintain  security,  tracking,  record  keeping,  record  retention  and
    29  surveillance systems, relating to all cannabis at every stage of acquir-
    30  ing, possession, manufacture, sale, delivery, transporting,  testing  or
    31  distributing  by  the  licensee, subject to regulations of the executive
    32  director.
    33    2. Every licensee shall keep and maintain upon the  licensed  premises
    34  adequate  books  and  records of all transactions involving the licensee
    35  and sale of its products, which shall include, but is  not  limited  to,
    36  all information required by any rules promulgated by the office.
    37    3. Each sale shall be recorded separately on a numbered invoice, which
    38  shall  have  printed  thereon  the number, the name of the licensee, the
    39  address of the  licensed  premises,  and  the  current  license  number.
    40  Licensed  producers  shall  deliver  to  the licensed distributor a true
    41  duplicate invoice stating the name and address  of  the  purchaser,  the
    42  quantity  purchased,  description  and  the  price of the product, and a
    43  true, accurate and complete statement of the  terms  and  conditions  on
    44  which such sale is made.
    45    4. Such books, records and invoices shall be kept for a period of five
    46  years  and shall be available for inspection by any authorized represen-
    47  tative of the office.
    48    5. Each  adult-use  cannabis  retail  dispensary,  microbusiness,  and
    49  on-site  consumption  licensee shall keep and maintain upon the licensed
    50  premises, adequate records of all transactions  involving  the  business
    51  transacted  by such licensee which shall show the amount of cannabis, in
    52  weight, purchased by such licensee  together  with  the  names,  license
    53  numbers  and  places  of business of the persons from whom the same were
    54  purchased, the amount involved in such purchases, as well as  the  sales
    55  of cannabis made by such licensee.

        S. 1527--B                         37

     1    §  77. Inspections and ongoing requirements. All licensed or permitted
     2  premises, regardless of the  type  of  premises,  shall  be  subject  to
     3  inspection  by the office, by the duly authorized representatives of the
     4  office, by any peace officer acting  pursuant  to  his  or  her  special
     5  duties,  or by a police officer, during the hours when the said premises
     6  are open for the transaction of business. The office shall make  reason-
     7  able  accommodations  so  that  ordinary business is not interrupted and
     8  safety and security procedures are not compromised by the inspection.  A
     9  person who holds a license or permit must make himself or herself, or an
    10  agent  thereof, available and present for any inspection required by the
    11  office.  Such inspection may include, but is not  limited  to,  ensuring
    12  compliance by the licensee or permittee with all other applicable build-
    13  ing codes, fire, health, safety, and governmental regulations, including
    14  at the municipal, county, and state level.
    15    §  78.  Adult-use  cultivators,  processors  or distributors not to be
    16  interested in retail dispensaries.  1. It shall be unlawful for a culti-
    17  vator, processor, cooperative or distributor licensed under this article
    18  to:
    19    (a) be interested directly or indirectly in  any  premises  where  any
    20  cannabis product is sold at retail; or in any business devoted wholly or
    21  partially  to the sale of any cannabis product at retail by stock owner-
    22  ship, interlocking directors, mortgage or lien or any personal  or  real
    23  property, or by any other means.
    24    (b)  make,  or cause to be made, any loan to any person engaged in the
    25  manufacture or sale of any cannabis product at wholesale or retail.
    26    (c) make any gift or  render  any  service  of  any  kind  whatsoever,
    27  directly  or indirectly, to any person licensed under this chapter which
    28  in the judgment of the office may tend to  influence  such  licensee  to
    29  purchase the product of such cultivator or processor or distributor.
    30    (d)  enter  into  any  contract  with any retail licensee whereby such
    31  licensee agrees to confine his sales to cannabis  products  manufactured
    32  or  sold  by  one or more such cultivator or processors or distributors.
    33  Any such contract shall be void and subject the licenses of all  parties
    34  concerned to revocation for cause.
    35    2.  The  provisions  of  this  section shall not prohibit a registered
    36  organization authorized pursuant to section thirty-nine of this chapter,
    37  from cultivating, processing, or selling adult-use cannabis  under  this
    38  article,  at  facilities  wholly  owned  and operated by such registered
    39  organization, subject to any  conditions,  limitations  or  restrictions
    40  established by the office and this chapter.
    41    3.  The office shall have the power to create rules and regulations in
    42  regard to this section.
    43    § 79. Packaging and labeling of adult-use cannabis  products.  1.  The
    44  office  is hereby authorized to promulgate rules and regulations govern-
    45  ing the advertising, branding,  marketing,  packaging  and  labeling  of
    46  cannabis products, sold or possessed for sale in New York state, includ-
    47  ing  rules pertaining to the accuracy of information and rules restrict-
    48  ing marketing and advertising to youth.
    49    2. Such regulations shall include, but not be  limited  to,  requiring
    50  that:
    51    (a)  packaging  meets  requirements  similar  to  the  federal "poison
    52  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    53    (b) all cannabis-infused products shall have a separate packaging  for
    54  each serving;

        S. 1527--B                         38

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

        S. 1527--B                         39

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

        S. 1527--B                         40

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

        S. 1527--B                         41

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

        S. 1527--B                         42

     1  implement  a social and economic equity plan and actively promote appli-
     2  cants from communities disproportionately impacted by cannabis  prohibi-
     3  tion,  and  promote  racial,  ethnic,  and gender diversity when issuing
     4  licenses  for adult-use cannabis related activities, including by prior-
     5  itizing consideration of applications by applicants who are from  commu-
     6  nities disproportionately impacted by the enforcement of cannabis prohi-
     7  bition  or  who  qualify  as  a  minority  or  women-owned  business, or
     8  disadvantaged farmers. Such qualifications shall be  determined  by  the
     9  office in regulation.
    10    2.  The  office  shall  create  a  social  and economic equity plan to
    11  promote diversity in ownership and  employment,  and  opportunities  for
    12  social and economic equity in the adult-use cannabis industry and ensure
    13  inclusion of:
    14    (a)  individuals  from  communities disproportionately impacted by the
    15  enforcement of cannabis prohibition;
    16    (b) minority-owned businesses;
    17    (c) women-owned businesses;
    18    (d) minority and women-owned businesses, as defined in  paragraph  (d)
    19  of subdivision five of this section; and
    20    (e)  disadvantaged  farmers,  as  defined  in subdivision five of this
    21  section.
    22    3. The social and  economic  equity  plan  shall  consider  additional
    23  criteria  in its licensing determinations. Under the social and economic
    24  equity plan, extra weight shall be given  to  applications  that  demon-
    25  strate that an applicant:
    26    (a)  is  a  member  of  a community disproportionately impacted by the
    27  enforcement of cannabis prohibition;
    28    (b) has an income lower than eighty percent of the  median  income  of
    29  the county in which the applicant resides; and
    30    (c) was convicted of a cannabis-related offense prior to the effective
    31  date  of  this  chapter,  or  had  a parent, guardian, child, spouse, or
    32  dependent, or was a dependent of an individual who, prior to the  effec-
    33  tive date of this chapter, was convicted of a cannabis-related offense.
    34    4. The office shall also create an incubator program to provide direct
    35  support  to  social  and  economic equity applicants to achieve and upon
    36  having been granted licenses. The program shall provide  direct  support
    37  in  the form of counseling services, education, small business coaching,
    38  and compliance assistance.
    39    5. For the purposes of this section, the following  definitions  shall
    40  apply:
    41    (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
    42  including a sole proprietorship, partnership, limited liability  company
    43  or corporation that is:
    44    (i)  at  least  fifty-one  percent owned by one or more minority group
    45  members;
    46    (ii) an enterprise in which such minority ownership is real,  substan-
    47  tial and continuing;
    48    (iii) an enterprise in which such minority ownership has and exercises
    49  the authority to control independently the day-to-day business decisions
    50  of the enterprise;
    51    (iv)  an  enterprise authorized to do business in this state and inde-
    52  pendently owned and operated; and
    53    (v) an enterprise that is a small business.
    54    (b) "minority group member" shall mean  a  United  States  citizen  or
    55  permanent resident alien who is and can demonstrate membership in one of
    56  the following groups:

        S. 1527--B                         43

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

        S. 1527--B                         44

     1    § 86. Regulations.   The executive  director  shall  promulgate  regu-
     2  lations  in  consultation  with the cannabis advisory board to implement
     3  this article.

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

        S. 1527--B                         45

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

        S. 1527--B                         46

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

        S. 1527--B                         47

     1  that its extraction of industrial hemp meets all  the  requirements  for
     2  hemp extract under a cannabinoid extractor license.
     3    §  96.  Cannabinoid license applications. 1. Persons shall apply for a
     4  cannabinoid grower license, cannabinoid manufacturer  license  and/or  a
     5  cannabinoid  extractor  license by submitting an application upon a form
     6  supplied by the office, providing all the requested  information,  veri-
     7  fied by the applicant or an authorized representative of the applicant.
     8    2.  A  separate  license  shall be required for each facility at which
     9  growing, manufacturing and/or extracting is conducted.
    10    3. Each applicant shall remit with its application the  fee  for  each
    11  office requested license.
    12    § 97. Information to be requested in applications for licenses. 1. The
    13  office  shall  have  the  authority  to prescribe the manner and form in
    14  which an application must be submitted to the office for licensure under
    15  this article.
    16    2. The executive director is authorized to adopt regulations  pursuant
    17  to the state administrative procedure act establishing information which
    18  must  be  included  on  an application for licensure under this article.
    19  Such information may include, but is not limited to:  information  about
    20  the  applicant's identity, including racial and ethnic diversity; infor-
    21  mation about prior use of farmland; ownership  and  investment  informa-
    22  tion,  including the corporate structure; evidence of good moral charac-
    23  ter, including the submission of fingerprints by the  applicant  to  the
    24  division of criminal justice services; information about the premises to
    25  be  licensed; financial statements; and any other information prescribed
    26  in regulation.
    27    3. All license applications shall be signed by the  applicant  (if  an
    28  individual), by a managing partner (if a limited liability corporation),
    29  by an officer (if a corporation), or by all partners (if a partnership).
    30  Each  person  signing such application shall verify it as true under the
    31  penalties of perjury.
    32    4. All license or permit applications shall be accompanied by a check,
    33  draft or other forms of payment as the office may require  or  authorize
    34  in the amount required by this article for such license or permit.
    35    5.  If there be any change, after the filing of the application or the
    36  granting of a license, in any of the facts required to be set  forth  in
    37  such application, a supplemental statement giving notice of such change,
    38  cost and source of money involved in the change, duly verified, shall be
    39  filed  with  the office within ten days after such change. Failure to do
    40  so shall, if willful and deliberate, be  cause  for  revocation  of  the
    41  license.
    42    6. In giving any notice, or taking any action in reference to a licen-
    43  see  of  a  licensed  premises, the office may rely upon the information
    44  furnished  in  such  application  and  in  any  supplemental   statement
    45  connected therewith, and such information may be presumed to be correct,
    46  and shall be binding upon a licensee or licensed premises as if correct.
    47  All  information required to be furnished in such application or supple-
    48  mental statements shall be deemed material in any prosecution for perju-
    49  ry, any proceeding to revoke, cancel or suspend any license, and in  the
    50  office's determination to approve or deny the license.
    51    7.  The  office may, upon documentation therefor, waive the submission
    52  of any category of information described in this section for any catego-
    53  ry of license or permit, provided that it  shall  not  be  permitted  to
    54  waive the requirement for submission of any such category of information
    55  solely for an individual applicant or applicants.

        S. 1527--B                         48

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

        S. 1527--B                         49

     1    3.  The office may make such rules as may be necessary, not inconsist-
     2  ent with this chapter, regarding applications for renewals  of  licenses
     3  and permits and the time for making the same.
     4    4.  The  office  shall provide an application for renewal of a license
     5  issued under this article not less than ninety days prior to the expira-
     6  tion of the current license.
     7    5. The office may only issue a renewal license  upon  receipt  of  the
     8  prescribed  renewal  application  and renewal fee from a licensee if, in
     9  addition to the criteria in section ninety-seven of  this  article,  the
    10  licensee's license is not under suspension and has not been revoked.
    11    6. The office shall have the authority to charge applicants for licen-
    12  sure  under  this article a non-refundable application fee. Such fee may
    13  be based on the type of licensure sought, cultivation and/or  production
    14  volume,  or  any  other factors deemed reasonable and appropriate by the
    15  office to achieve the policy and purpose of this chapter.
    16    § 102. Form of license. Licenses issued pursuant to this article shall
    17  specify:
    18    1. the name and address of the licensee;
    19    2. the activities permitted by the license;
    20    3. the land, buildings  and  facilities  that  may  be  used  for  the
    21  licensed activities of the licensee;
    22    4.  a  unique license number issued by the department to the licensee;
    23  and
    24    5. such other information as the executive director shall deem  neces-
    25  sary to assure compliance with this chapter.
    26    §  103. Amendments to license and duty to update information submitted
    27  for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
    28  license  may  be  amended  to  allow the licensee to relocate within the
    29  state, to add or delete licensed activities or facilities, or  to  amend
    30  the  ownership  or  organizational  structure  of the entity that is the
    31  licensee. The fee for such amendment shall be two hundred fifty dollars.
    32    2. In the event that any of the information provided by the  applicant
    33  changes  either while the application is pending or after the license is
    34  granted, within ten days of any such change, the applicant  or  licensee
    35  shall submit to the office a verified statement setting forth the change
    36  in circumstances of facts set forth in the application. Failure to do so
    37  shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
    38  license.
    39    3. A license shall become void by a change in  ownership,  substantial
    40  corporate change or location without prior written approval of the exec-
    41  utive  director.    The  executive  director  may promulgate regulations
    42  allowing for certain types of changes in ownership without the need  for
    43  prior written approval.
    44    4.  For purposes of this section, "substantial corporate change" shall
    45  mean:
    46    (a) for a corporation, a change of eighty percent or more of the offi-
    47  cers and/or directors, or a transfer of eighty percent or more of  stock
    48  of such corporation, or an existing stockholder obtaining eighty percent
    49  or more of the stock of such corporation; and
    50    (b)  for  a  limited  liability company, a change of eighty percent or
    51  more of the managing members of the company, or  a  transfer  of  eighty
    52  percent  or  more  of ownership interest in said company, or an existing
    53  member obtaining a cumulative of eighty percent or more of the ownership
    54  interest in said company.
    55    § 104. Record keeping and tracking. 1. The executive  director  shall,
    56  by  regulation,  require each licensee pursuant to this article to adopt

        S. 1527--B                         50

     1  and maintain security, tracking, record keeping,  record  retention  and
     2  surveillance  systems,  relating  to  all hemp extract at every stage of
     3  acquiring, possession, manufacture, transport,  sale,  or  delivery,  or
     4  distribution  by  the  licensee, subject to regulations of the executive
     5  director.
     6    2. Every licensee shall keep and maintain upon the licensed  premises,
     7  adequate  books  and  records of all transactions involving the licensee
     8  and sale of its products, which shall include all  information  required
     9  by rules promulgated by the office.
    10    3. Each sale shall be recorded separately on a numbered invoice, which
    11  shall  have  printed  thereon  the number, the name of the licensee, the
    12  address of the licensed premises, and the current license number.
    13    4. Such books, records and invoices shall be kept for a period of five
    14  years and shall be available for inspection by any authorized  represen-
    15  tative of the office.
    16    §  105.  Inspections  and ongoing requirements. All licensees shall be
    17  subject to reasonable inspection by the office, in consultation with the
    18  department of health, and a person who holds a license must make himself
    19  or  herself,  or  an  agent  thereof,  available  and  present  for  any
    20  inspection  required  by  the  office.  The office shall make reasonable
    21  accommodations so that ordinary business is not interrupted  and  safety
    22  and security procedures are not compromised by the inspection.
    23    §  106.  Packaging  and  labeling  of  hemp extract. 1. The office, in
    24  consultation with the department of health, is authorized to  promulgate
    25  rules  and  regulations  governing  the  packaging  and labeling of hemp
    26  extract products, sold or possessed for sale in New York state.
    27    2. Such regulations shall include, but not be  limited  to,  requiring
    28  labels warning consumers of any potential impact on human health result-
    29  ing  from the consumption of hemp extract products that shall be affixed
    30  to those products when sold, if such labels are deemed warranted by  the
    31  office.  No label may state that hemp extract can treat, cure or prevent
    32  any disease without approval pursuant to federal law.
    33    3. Such rules and regulations shall establish a QR code which  may  be
    34  used  in  conjunction  with  similar technology for labels and establish
    35  methods and procedures for  determining,  among  other  things,  serving
    36  sizes  for  hemp  extract products, active cannabinoid concentration per
    37  serving size, number of servings per container, and the growing  region,
    38  state  or  country  of  origin if not from the United States. Such regu-
    39  lations shall also require a supplement  fact  panel  that  incorporates
    40  data regarding serving sizes and potency thereof.
    41    4.  The  packaging,  sale,  or  possession by any licensee of any hemp
    42  product intended for human or animal consumption or use not  labeled  or
    43  offered  in conformity with rules and regulations promulgated in accord-
    44  ance with this section shall be grounds for the imposition  of  a  fine,
    45  and/or the suspension, revocation or cancellation of a license.
    46    §  107. Provisions governing the growing, manufacturing and extracting
    47  of hemp extract. 1. No  licensed  cannabinoid  grower,  manufacturer  or
    48  extractor  shall sell, or agree to sell or deliver in the state any hemp
    49  extract products, as the  case  may  be,  except  in  sealed  containers
    50  containing  quantities  in  accordance  with  size standards pursuant to
    51  rules adopted by the office. Such containers shall have affixed  thereto
    52  such labels as may be required by the rules of the office.
    53    2.  Licensed cannabinoid growers shall be prohibited from using pesti-
    54  cides.
    55    3. All hemp extract products shall be extracted  and  manufactured  in
    56  accordance  with  good  manufacturing processes, pursuant to Part 111 or

        S. 1527--B                         51

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

        S. 1527--B                         52

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

    47                                  ARTICLE 6
    48                             GENERAL PROVISIONS

    49  Section 125. General prohibitions and restrictions.
    50          126. License  to  be confined to premises licensed; premises for
    51                 which no license shall be granted; transporting cannabis.
    52          127. Protections for the use  of  cannabis;  unlawful  discrimi-
    53                 nations prohibited.
    54          128. Registrations and licenses.

        S. 1527--B                         53

     1          129. Laboratory testing permits.
     2          130. Special use permits.
     3          131. Professional and medical record keeping.
     4          132. Local opt-out; municipal control and preemption.
     5          133. Personal cultivation.
     6          134. Executive   director  to  be  necessary  party  to  certain
     7                 proceedings.
     8          135. Penalties for violation of this chapter.
     9          136. Revocation  of  registrations,  licenses  and  permits  for
    10                 cause; procedure for revocation or cancellation.
    11          137. Lawful actions pursuant to this chapter.
    12          138. Review by courts.
    13          139. Illicit cannabis.
    14          140. Persons  forbidden  to  traffic cannabis; certain officials
    15                 not to be interested in manufacture or sale  of  cannabis
    16                 products.
    17          141. Access to criminal history information through the division
    18                 of criminal justice services.
    19          142. Severability.
    20    §  125.  General  prohibitions  and restrictions.   1. No person shall
    21  cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
    22  retail  any cannabis, cannabis product, medical cannabis or hemp extract
    23  product within the state without obtaining the appropriate registration,
    24  license, or permit therefor required by this chapter.
    25    2. No registered organization, licensee, or permittee shall  sell,  or
    26  agree  to sell or deliver in this state any cannabis or hemp extract for
    27  the purposes of resale  to  any  person  who  is  not  duly  registered,
    28  licensed  or permitted pursuant to this chapter to sell such product, at
    29  wholesale or retail, as the case may be, at the time of  such  agreement
    30  and sale.
    31    3. No registered organization, licensee, or permittee shall employ, or
    32  permit  to  be  employed, or shall allow to work, on any premises regis-
    33  tered or licensed for retail sale hereunder, any person under the age of
    34  twenty-one years in any capacity where the duties of such person require
    35  or permit such person to sell, dispense or handle cannabis.
    36    4. No registered organization,  licensee,  or  permittee  shall  sell,
    37  deliver  or give away, or cause, permit or procure to be sold, delivered
    38  or given away any cannabis, cannabis product,  or  medical  cannabis  on
    39  credit; except that a registered organization, licensee or permittee may
    40  accept  third  party credit cards for the sale of any cannabis, cannabis
    41  product, or medical cannabis for which it  is  registered,  licensed  or
    42  permitted  to  dispense  or sell to patients or cannabis consumers. This
    43  includes, but is not limited to, any consignment sale of any kind.
    44    5. No registered organization, licensee, or permittee shall  cease  to
    45  be  operated  as  a  bona fide or legitimate premises within the contem-
    46  plation of the registration, license, or permit issued  for  such  prem-
    47  ises, as determined within the judgment of the office.
    48    6.  No  registered  organization, licensee, or permittee shall refuse,
    49  nor any person holding a registration, license, or  permit  refuse,  nor
    50  any  officer  or  director  of any corporation or organization holding a
    51  registration, license, or permit refuse, to appear and/or testify  under
    52  oath  at  an  inquiry or hearing held by the office, with respect to any
    53  matter bearing upon the registration, license, or permit, the conduct of
    54  any people at the licensed premises, or bearing upon  the  character  or
    55  fitness  of  such registrant, licensee, or permittee to continue to hold

        S. 1527--B                         54

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

        S. 1527--B                         55

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

        S. 1527--B                         56

     1  ment agreement, or other agreement giving the applicant control over the
     2  cannabis  at  the  premises,  is entered into for the primary purpose of
     3  permitting the original licensee to avoid the effect of the revocation.
     4    5.  No  registered organization, licensee or permittee shall transport
     5  cannabis products or medical cannabis except in vehicles owned and oper-
     6  ated by such registered organization, licensee or  permittee,  or  hired
     7  and operated by such registered organization, licensee or permittee from
     8  a  trucking  or transportation company permitted and registered with the
     9  office.
    10    6. No common carrier or person operating a transportation facility  in
    11  this  state,  other than the United States government, shall receive for
    12  transportation or delivery within the state  any  cannabis  products  or
    13  medical cannabis unless the shipment is accompanied by copy of a bill of
    14  lading,  or  other document, showing the name and address of the consig-
    15  nor, the name and address of the consignee, the date  of  the  shipment,
    16  and  the  quantity  and  kind  of  cannabis products or medical cannabis
    17  contained therein.
    18    § 127. Protections for the use of cannabis;  unlawful  discriminations
    19  prohibited.   1. No person, registered organization, licensee or permit-
    20  tee, employees, or their agents shall be subject to arrest, prosecution,
    21  or penalty in any manner, or denied any right  or  privilege,  including
    22  but  not limited to civil liability or disciplinary action by a business
    23  or occupational or professional licensing board or  office,  solely  for
    24  conduct  permitted  under  this chapter. For the avoidance of doubt, the
    25  appellate division of the supreme court of the state of  New  York,  and
    26  any disciplinary or character and fitness committees established by them
    27  are occupational and professional licensing boards within the meaning of
    28  this  section. State or local law enforcement agencies shall not cooper-
    29  ate with or provide assistance to the government of the United States or
    30  any agency thereof in enforcing the federal  controlled  substances  act
    31  solely for actions consistent with this chapter, except as pursuant to a
    32  valid court order.
    33    2.  No school or landlord may refuse to enroll or lease to and may not
    34  otherwise penalize a person solely for conduct allowed under this  chap-
    35  ter, except as exempted:
    36    (a)  if  failing to do so would cause the school or landlord to lose a
    37  monetary or licensing related benefit under federal law or regulations;
    38    (b) if the institution has  adopted  a  code  of  conduct  prohibiting
    39  cannabis use on the basis of religious belief; or
    40    (c)  if  a property is registered with the New York smoke-free housing
    41  registry, it is not required to permit the smoking of cannabis  products
    42  on its premises.
    43    3.  For  the  purposes of medical care, including organ transplants, a
    44  certified patient's authorized use of medical cannabis must  be  consid-
    45  ered  the equivalent of the use of any other medication under the direc-
    46  tion of a practitioner and does not constitute the  use  of  an  illicit
    47  substance  or  otherwise disqualify a registered qualifying patient from
    48  medical care.
    49    4. It is the public policy of  the  state  of  New  York  to  prohibit
    50  employers  from  discriminating  against  employees for legal activities
    51  occurring outside of the workplace. Nothing in this section shall inter-
    52  fere with an employer's obligation to provide a safe  and  healthy  work
    53  place,  free  from  recognized hazards, as required by state and federal
    54  occupation safety and health law or require an employer  to  commit  any
    55  act that would cause the employer to be in violation of any other feder-

        S. 1527--B                         57

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

        S. 1527--B                         58

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

        S. 1527--B                         59

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

        S. 1527--B                         60

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

        S. 1527--B                         61

     1    (b) The person shall, upon payment of the required fine,  be  provided
     2  with  information related to the dangers of underage use of cannabis and
     3  information related to cannabis use disorder by the office  of  cannabis
     4  management.
     5    (c)  The  issuance and subsequent payment of such fine shall in no way
     6  qualify as a criminal accusation, admission  of  guilt,  or  a  criminal
     7  conviction and shall in no way operate as a disqualification of any such
     8  person  from holding public office, attaining public employment, or as a
     9  forfeiture of any right or privilege.
    10    6. Cannabis  recovered  from  individuals  who  are  found  to  be  in
    11  violation  of  this  chapter shall be considered a nuisance and shall be
    12  disposed of or destroyed.
    13    § 136. Revocation of registrations, licenses and  permits  for  cause;
    14  procedure  for revocation or cancellation.  1. Any registration, license
    15  or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
    16  suspended  and/or  subjected  to  the  imposition of a civil penalty for
    17  cause, and must be revoked for the following causes:
    18    (a) conviction of the registered organization, licensee, permittee  or
    19  his  or  her  agent  or employee for selling any illegal cannabis on the
    20  premises registered, licensed or permitted; or
    21    (b) for  transferring,  assigning  or  hypothecating  a  registration,
    22  license or permit without prior written approval of the office.
    23    2.  Notwithstanding  the issuance of a registration, license or permit
    24  by way of renewal, the office may revoke, cancel or suspend such  regis-
    25  tration, license or permit and/or may impose a civil penalty against any
    26  holder  of  such  registration, license or permit, as prescribed by this
    27  section, for causes or violations occurring during  the  license  period
    28  immediately  preceding  the  issuance  of  such registration, license or
    29  permit.
    30    3. (a) As used in this  section,  the  term  "for  cause"  shall  also
    31  include  the  existence of a sustained and continuing pattern of miscon-
    32  duct, failure to adequately prevent diversion or disorder  on  or  about
    33  the  registered, licensed or permitted premises, or in the area in front
    34  of or adjacent to the registered or licensed premises, or in any parking
    35  lot provided by the registered  organization  or  licensee  for  use  by
    36  registered organization or licensee's patrons, which, in the judgment of
    37  the office, adversely affects or tends to affect the protection, health,
    38  welfare,  safety,  or repose of the inhabitants of the area in which the
    39  registered or licensed premises is located, or results in  the  licensed
    40  premises becoming a focal point for police attention, or is offensive to
    41  public decency.
    42    (b)  (i)  As  used  in  this  section, the term "for cause" shall also
    43  include deliberately misleading the authority:
    44    (A) as to the nature and character of the business to be  operated  by
    45  the registered organization, licensee or permittee; or
    46    (B) by substantially altering the nature or character of such business
    47  during  the registration or licensing period without seeking appropriate
    48  approvals from the office.
    49    (ii) As used in this subdivision, the term "substantially altering the
    50  nature or character" of such business shall mean any significant  alter-
    51  ation  in  the  scope  of  business activities conducted by a registered
    52  organization, licensee or permittee  that  would  require  obtaining  an
    53  alternate form of registration, license or permit.
    54    4.  As used in this chapter, the existence of a sustained and continu-
    55  ing pattern of misconduct, failure to adequately  prevent  diversion  or
    56  disorder  on  or about the premises may be presumed upon the sixth inci-

        S. 1527--B                         62

     1  dent reported to the office by a law enforcement agency,  or  discovered
     2  by  the  office  during  the course of any investigation, of misconduct,
     3  diversion or disorder on or about the premises or related to the  opera-
     4  tion  of  the  premises,  absent clear and convincing evidence of either
     5  fraudulent intent on the part of any complainant or a factual error with
     6  respect to the content of any report concerning  such  complaint  relied
     7  upon by the office.
     8    5.  Notwithstanding any other provision of this chapter to the contra-
     9  ry, a suspension imposed under this section  against  the  holder  of  a
    10  registration  issued  pursuant  to  article three of this chapter, shall
    11  only suspend the licensed activities related to the  type  of  cannabis,
    12  medical cannabis or adult-use cannabis involved in the violation result-
    13  ing in the suspension.
    14    6.  Any  registration, license or permit issued by the office pursuant
    15  to this chapter  may  be  revoked,  cancelled  or  suspended  and/or  be
    16  subjected  to  the  imposition  of  a  monetary  penalty  in  the manner
    17  prescribed by this section and by the executive director in regulation.
    18    7. The office may on its  own  initiative,  or  on  complaint  of  any
    19  person, institute proceedings to revoke, cancel or suspend any adult-use
    20  cannabis   retail  dispensary  license  or  adult-use  cannabis  on-site
    21  consumption license and may impose a civil penalty against the  licensee
    22  after  a  hearing at which the licensee shall be given an opportunity to
    23  be heard. Such hearing shall be held in such manner and upon such notice
    24  as may be prescribed in regulation by the executive director.
    25    8. All other registrations, licenses  or  permits  issued  under  this
    26  chapter  may be revoked, cancelled, suspended and/or made subject to the
    27  imposition of a civil penalty by the office after a hearing to  be  held
    28  in  such  manner and upon such notice as may be prescribed in regulation
    29  by the executive director.
    30    9. Where a licensee or permittee is convicted of two or more  qualify-
    31  ing  offenses  within  a  five-year  period, the office, upon receipt of
    32  notification of such second or subsequent conviction, shall, in addition
    33  to any other sanction or civil or criminal penalty imposed  pursuant  to
    34  this  chapter, impose on such licensee a civil penalty not to exceed ten
    35  thousand dollars.   For  purposes  of  this  subdivision,  a  qualifying
    36  offense  shall  mean the unlawful sale of cannabis to a person under the
    37  age of twenty-one. For purposes of this subdivision, a conviction  of  a
    38  licensee  or  an  employee  or agent of such licensee shall constitute a
    39  conviction of such licensee.
    40    § 137. Lawful actions pursuant to this chapter.  1. Contracts  related
    41  to the operation of registered organizations, licenses and permits under
    42  this  chapter  shall  be lawful and shall not be deemed unenforceable on
    43  the basis that the  actions  permitted  pursuant  to  the  registration,
    44  license or permit are prohibited by federal law.
    45    2. The following actions are not unlawful as provided under this chap-
    46  ter, shall not be an offense under any state or local law, and shall not
    47  result  in  any  civil fine, seizure, or forfeiture of assets, or be the
    48  basis for detention or search against any person  acting  in  accordance
    49  with this chapter:
    50    (a)  Actions  of a registered organization, licensee, or permittee, or
    51  the employees or agents of such  registered  organization,  licensee  or
    52  permittee,  as  permitted  by this chapter and consistent with rules and
    53  regulations of the office, pursuant to a valid registration, license  or
    54  permit issued by the office.
    55    (b)  Actions  of  those  who allow property to be used by a registered
    56  organization, licensee, or permittee, or the employees or agents of such

        S. 1527--B                         63

     1  registered organization, licensee or permittee,  as  permitted  by  this
     2  chapter  and consistent with rules and regulations of the office, pursu-
     3  ant to a valid registration, license or permit issued by the office.
     4    (c)  Actions of any person or entity, their employees, or their agents
     5  providing a service to a registered organization, licensee, permittee or
     6  a potential registered organization, licensee, or permittee, as  permit-
     7  ted  by  this  chapter  and consistent with rules and regulations of the
     8  office, relating to the formation of a business.
     9    (d) The purchase, possession, or consumption of cannabis, and  medical
    10  cannabis, as permitted by law, and consistent with rules and regulations
    11  of the office.
    12    §  138. Review by courts.  1. The following actions by the office, and
    13  only the following actions by the office, shall be subject to review  by
    14  the supreme court in the manner provided in article seventy-eight of the
    15  civil practice law and rules:
    16    (a)  Refusal  by  the  office  to  issue a registration, license, or a
    17  permit.
    18    (b) The revocation, cancellation  or  suspension  of  a  registration,
    19  license, or permit by the office.
    20    (c) The failure or refusal by the office to render a decision upon any
    21  application  or  hearing submitted to or held by the office within sixty
    22  days after such submission or hearing.
    23    (d) The transfer by the office of a registration, license,  or  permit
    24  to any other entity or premises, or the failure or refusal by the office
    25  to approve such a transfer.
    26    (e) Refusal to approve alteration of premises.
    27    (f)  Refusal to approve a corporate change in stockholders, stockhold-
    28  ings, officers or directors.
    29    2. No stay shall be granted pending the determination of  such  matter
    30  except on notice to the office and only for a period of less than thirty
    31  days. In no instance shall a stay be granted where the office has issued
    32  a  summary  suspension  of  a  registration,  license, or permit for the
    33  protection of the public health, safety, and welfare.
    34    § 139. Illicit cannabis.  1. "Illicit cannabis" means and includes any
    35  cannabis product, or medical cannabis  owned,  cultivated,  distributed,
    36  bought,  sold,  packaged, rectified, blended, treated, fortified, mixed,
    37  processed, warehoused, possessed or transported, or  on  which  any  tax
    38  required  to  have been paid under any applicable state law has not been
    39  paid.
    40    2. Any person who shall knowingly possess or have  under  his  or  her
    41  control any cannabis known by the person to be illicit cannabis is guil-
    42  ty of a misdemeanor.
    43    3.  Any  person  who shall knowingly barter or exchange with, or sell,
    44  give or offer to sell or to give  another  any  cannabis  known  by  the
    45  person to be illicit cannabis is guilty of a misdemeanor.
    46    4.  Any  person  who shall possess or have under his or her control or
    47  transport any cannabis known by the person to be illicit  cannabis  with
    48  intent  to  barter  or  exchange with, or to sell or give to another the
    49  same or any part thereof is guilty of  a  misdemeanor.  Such  intent  is
    50  presumptively  established  by proof that the person knowingly possessed
    51  or had under his or her control one or more ounces of illicit  cannabis.
    52  This presumption may be rebutted.
    53    5.  Any  person who, being the owner, lessee, or occupant of any room,
    54  shed, tenement, booth or building, float or  vessel,  or  part  thereof,
    55  knowingly  permits  the same to be used for the cultivation, processing,

        S. 1527--B                         64

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

        S. 1527--B                         65

     1  or  license issued under this chapter revoked for cause, until the expi-
     2  ration of two years from the date of such conviction or revocation.
     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.
    22    §  141. Access to criminal history information through the division of
    23  criminal justice services.   In connection with  the  administration  of
    24  this  chapter,  the executive director is authorized to request, receive
    25  and review criminal history information through the division of criminal
    26  justice services with respect to  any  person  seeking  a  registration,
    27  license,  permit  or  authorization to cultivate, process, distribute or
    28  sell medical cannabis, adult use cannabis or hemp extract. At the execu-
    29  tive director's request, each person, member, principal  and/or  officer
    30  of  the  applicant shall submit to the office his or her fingerprints in
    31  such form and in such manner as  specified  by  the  division,  for  the
    32  purpose  of  conducting a criminal history search and returning a report
    33  thereon in accordance with the procedures and  requirements  established
    34  by the division pursuant to the provisions of article thirty-five of the
    35  executive  law,  which shall include the payment of the prescribed proc-
    36  essing fees for the cost of the division's full search and retain proce-
    37  dures and a national criminal history record check. The executive direc-
    38  tor, or his or her designee, shall  submit  such  fingerprints  and  the
    39  processing fee to the division. The division shall forward to the execu-
    40  tive director a report with respect to the applicant's previous criminal
    41  history, if any, or a statement that the applicant has no previous crim-
    42  inal history according to its files. Fingerprints submitted to the divi-
    43  sion  pursuant  to this subdivision may also be submitted to the federal
    44  bureau of investigation for a national criminal history record check. If
    45  additional copies of fingerprints  are  required,  the  applicant  shall
    46  furnish them upon request.
    47    §  142.  Severability. If any provision of this chapter or application
    48  thereof to any person or circumstances is held invalid, such  invalidity
    49  shall  not  affect other provisions or applications of this chapter that
    50  can be given effect without the invalid provision or application, and to
    51  this end the provisions of this chapter are declared severable.
    52    § 3. Section 3302 of the public health law, as added by chapter 878 of
    53  the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
    54  subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24,
    55  25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of  1998,
    56  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39

        S. 1527--B                         66

     1  and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
     2  subdivision 20, the opening paragraph of subdivision 22 and  subdivision
     3  29  as  amended  by  chapter  163 of the laws of 1973, subdivision 31 as
     4  amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
     5  vision  41 as added by section 6 of part A of chapter 447 of the laws of
     6  2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
     7  chapter 60 of the laws of 2014, is amended to read as follows:
     8    §  3302.  Definitions  of terms of general use in this article. Except
     9  where  different  meanings  are  expressly   specified   in   subsequent
    10  provisions of this article, the following terms have the following mean-
    11  ings:
    12    1.  "Addict" means a person who habitually uses a controlled substance
    13  for a non-legitimate or unlawful use, and who by reason of such  use  is
    14  dependent thereon.
    15    2.   "Administer"   means  the  direct  application  of  a  controlled
    16  substance, whether by injection, inhalation,  ingestion,  or  any  other
    17  means, to the body of a patient or research subject.
    18    3.  "Agent" means an authorized person who acts on behalf of or at the
    19  direction of a manufacturer, distributor, or dispenser. No person may be
    20  authorized to so act if under title  VIII  of  the  education  law  such
    21  person  would  not  be  permitted to engage in such conduct. It does not
    22  include a common or contract carrier, public warehouseman,  or  employee
    23  of  the  carrier  or  warehouseman  when  acting in the usual and lawful
    24  course of the carrier's or warehouseman's business.
    25    4. ["Concentrated Cannabis" means
    26    (a) the separated resin, whether crude or purified,  obtained  from  a
    27  plant of the genus Cannabis; or
    28    (b)  a  material,  preparation,  mixture,  compound or other substance
    29  which contains more than two and one-half percent by weight  of  delta-9
    30  tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
    31  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    32  terpene numbering system.
    33    5.] "Controlled substance" means a substance or substances  listed  in
    34  section thirty-three hundred six of this [chapter] title.
    35    [6.]  5.  "Commissioner"  means commissioner of health of the state of
    36  New York.
    37    [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
    38  attempted transfer from one person to another of a controlled substance,
    39  whether or not there is an agency relationship.
    40    [8.]  7.  "Department"  means the department of health of the state of
    41  New York.
    42    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    43  mate user or research subject by lawful means, including by means of the
    44  internet, and includes the packaging, labeling, or compounding necessary
    45  to prepare the substance for such delivery.
    46    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    47  ing by means of the internet, other than by administering or dispensing.
    48    [11.] 10. "Distributor" means a person who  distributes  a  controlled
    49  substance.
    50    [12.]  11.  "Diversion" means manufacture, possession, delivery or use
    51  of a controlled substance by a person or in a  manner  not  specifically
    52  authorized by law.
    53    [13.] 12. "Drug" means
    54    (a) substances recognized as drugs in the official United States Phar-
    55  macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
    56  official National Formulary, or any supplement to any of them;

        S. 1527--B                         67

     1    (b) substances intended for use in the  diagnosis,  cure,  mitigation,
     2  treatment, or prevention of disease in man or animals; and
     3    (c) substances (other than food) intended to affect the structure or a
     4  function  of  the  body of man or animal. It does not include devices or
     5  their components, parts, or accessories.
     6    [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
     7  United States Department of Justice, or its successor agency.
     8    [15.]  14. "Federal controlled substances act" means the Comprehensive
     9  Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
    10  any  act  or  acts  amendatory  or  supplemental  thereto or regulations
    11  promulgated thereunder.
    12    [16.] 15. "Federal registration number" means such number assigned  by
    13  the  Federal agency to any person authorized to manufacture, distribute,
    14  sell, dispense or administer controlled substances.
    15    [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
    16  repeated  use of any controlled substance for non-legitimate or unlawful
    17  use is in danger of becoming, dependent upon such substance.
    18    [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
    19  hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental
    20  hospital or similar facility approved and certified by the department as
    21  authorized to  obtain  controlled  substances  by  distribution  and  to
    22  dispense and administer such substances pursuant to the order of a prac-
    23  titioner.
    24    [19.]  18.  "License"  means  a  written  authorization  issued by the
    25  department or the New York  state  department  of  education  permitting
    26  persons  to  engage  in  a specified activity with respect to controlled
    27  substances.
    28    [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
    29  gation,   compounding,   cultivation,  conversion  or  processing  of  a
    30  controlled substance, either directly or  indirectly  or  by  extraction
    31  from substances of natural origin, or independently by means of chemical
    32  synthesis, or by a combination of extraction and chemical synthesis, and
    33  includes  any  packaging  or repackaging of the substance or labeling or
    34  relabeling of its container, except that this term does not include  the
    35  preparation,   compounding,   packaging  or  labeling  of  a  controlled
    36  substance:
    37    (a) by a practitioner as an incident to his administering or  dispens-
    38  ing  of  a  controlled substance in the course of his professional prac-
    39  tice; or
    40    (b) by a practitioner, or by his authorized  agent  under  his  super-
    41  vision, for the purpose of, or as an incident to, research, teaching, or
    42  chemical analysis and not for sale; or
    43    (c)  by  a pharmacist as an incident to his dispensing of a controlled
    44  substance in the course of his professional practice.
    45    [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
    46  whether  growing or not; the seeds thereof; the resin extracted from any
    47  part of the plant; and every compound,  manufacture,  salt,  derivative,
    48  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    49  include the mature stalks of the plant, fiber produced from the  stalks,
    50  oil  or cake made from the seeds of the plant, any other compound, manu-
    51  facture, salt, derivative, mixture, or preparation of the mature  stalks
    52  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    53  sterilized seed of the plant which is incapable of germination.
    54    22.] 20. "Narcotic drug" means any of the following, whether  produced
    55  directly  or  indirectly  by  extraction  from  substances  of vegetable

        S. 1527--B                         68

     1  origin, or independently by means of chemical synthesis, or by a  combi-
     2  nation of extraction and chemical synthesis:
     3    (a)  opium and opiate, and any salt, compound, derivative, or prepara-
     4  tion of opium or opiate;
     5    (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
     6  which  is  chemically equivalent or identical with any of the substances
     7  referred to in [subdivision] paragraph (a) of this subdivision, but  not
     8  including the isoquinoline alkaloids of opium;
     9    (c) opium poppy and poppy straw.
    10    [23.]  21. "Opiate" means any substance having an addiction-forming or
    11  addiction-sustaining liability similar to morphine or being  capable  of
    12  conversion  into a drug having addiction-forming or addiction-sustaining
    13  liability. It  does  not  include,  unless  specifically  designated  as
    14  controlled  under section [3306] thirty-three hundred six of this [arti-
    15  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
    16  its salts (dextromethorphan). It does include its racemic and  levorota-
    17  tory forms.
    18    [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
    19  somniferum L., except its seeds.
    20    [25.] 23. "Person" means individual, institution, corporation, govern-
    21  ment or governmental subdivision  or  agency,  business  trust,  estate,
    22  trust, partnership or association, or any other legal entity.
    23    [26.]  24. "Pharmacist" means any person licensed by the state depart-
    24  ment of education to practice pharmacy.
    25    [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
    26  York  state  board  of  pharmacy  and registered with the Federal agency
    27  pursuant to the federal controlled substances act.
    28    [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
    29  opium poppy, after mowing.
    30    [29.] 27. "Practitioner" means:
    31    A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
    32  gator, or other person licensed, or  otherwise  permitted  to  dispense,
    33  administer or conduct research with respect to a controlled substance in
    34  the  course  of  a  licensed  professional practice or research licensed
    35  pursuant to this article. Such person shall be deemed  a  "practitioner"
    36  only  as  to such substances, or conduct relating to such substances, as
    37  is permitted by his license, permit or otherwise permitted by law.
    38    [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
    39  prescription,  permitting an ultimate user lawfully to obtain controlled
    40  substances  from  any  person  authorized  by  law  to   dispense   such
    41  substances.
    42    [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
    43  prescription, an electronic prescription, an oral prescription[,] or  an
    44  out-of-state prescription[, or any one].
    45    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
    46  er, or offer or agree to do the same.
    47    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
    48  possesses a controlled substance for his own use or the use by a  member
    49  of  his  household  or  for an animal owned by him or in his custody. It
    50  shall also mean and include a person designated, by a practitioner on  a
    51  prescription, to obtain such substance on behalf of the patient for whom
    52  such substance is intended.
    53    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    54  cations facilities which comprise the worldwide network of networks that
    55  employ a set of industry standards and protocols, or any predecessor  or
    56  successor  protocol  to  such  protocol,  to exchange information of all

        S. 1527--B                         69

     1  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
     2  networks,  whether  private  or  public, used to transmit information by
     3  electronic means.
     4    [35.]  33.  "By  means  of  the  internet"  means  any sale, delivery,
     5  distribution, or dispensing of a  controlled  substance  that  uses  the
     6  internet,  is initiated by use of the internet or causes the internet to
     7  be used.
     8    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
     9  in the United States that sells, delivers or  dispenses,  or  offers  to
    10  sell,  deliver,  or  dispense,  a  controlled  substance by means of the
    11  internet.
    12    [37.] 35. "Electronic prescription" means a prescription  issued  with
    13  an  electronic  signature and transmitted by electronic means in accord-
    14  ance with regulations of the commissioner and the commissioner of educa-
    15  tion and consistent with federal requirements. A prescription  generated
    16  on an electronic system that is printed out or transmitted via facsimile
    17  is  not  considered  an  electronic  prescription  and  must be manually
    18  signed.
    19    [38.] 36. "Electronic" means of or relating to technology having elec-
    20  trical, digital, magnetic, wireless, optical, electromagnetic or similar
    21  capabilities. "Electronic" shall not include facsimile.
    22    [39.] 37.  "Electronic  record"  means  a  paperless  record  that  is
    23  created,  generated,  transmitted,  communicated,  received or stored by
    24  means of electronic equipment and includes the preservation,  retrieval,
    25  use  and  disposition in accordance with regulations of the commissioner
    26  and the commissioner of education and in compliance with federal law and
    27  regulations.
    28    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    29  process, attached to or logically associated with an  electronic  record
    30  and  executed or adopted by a person with the intent to sign the record,
    31  in accordance with regulations of the commissioner and the  commissioner
    32  of education.
    33    [41.]  39.  "Registry"  or  "prescription monitoring program registry"
    34  means the prescription monitoring program registry established  pursuant
    35  to section thirty-three hundred forty-three-a of this article.
    36    [42.]  40. "Compounding" means the combining, admixing, mixing, dilut-
    37  ing, pooling, reconstituting, or otherwise altering of a  drug  or  bulk
    38  drug  substance to create a drug with respect to an outsourcing facility
    39  under section 503B of the  federal  Food,  Drug  and  Cosmetic  Act  and
    40  further defined in this section.
    41    [43.] 41. "Outsourcing facility" means a facility that:
    42    (a)  is  engaged  in  the  compounding  of sterile drugs as defined in
    43  section sixty-eight hundred two of the education law;
    44    (b) is currently registered as an  outsourcing  facility  pursuant  to
    45  article one hundred thirty-seven of the education law; and
    46    (c)  complies  with  all  applicable requirements of federal and state
    47  law, including the Federal Food, Drug and Cosmetic Act.
    48    Notwithstanding any other provision of law to the  contrary,  when  an
    49  outsourcing  facility  distributes  or  dispenses any drug to any person
    50  pursuant to a prescription, such outsourcing facility shall be deemed to
    51  be providing pharmacy services and shall be subject to all  laws,  rules
    52  and regulations governing pharmacies and pharmacy services.
    53    §  4.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
    54  26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
    55  section  3306  of  the public health law, paragraphs 13, 14, 15, 16, 17,
    56  18, 19, 20, 21, 22, 23 and 24 as added by chapter 664  of  the  laws  of

        S. 1527--B                         70

     1  1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
     2  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
     3  laws of 2006, are amended to read as follows:
     4    (13) [Marihuana.
     5    (14)] Mescaline.
     6    [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
     7  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
     8    [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
     9  fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
    10  not, the seeds thereof, any extract from any part  of  such  plant,  and
    11  every  compound, manufacture, salts, derivative, mixture, or preparation
    12  of such plant, its seeds or extracts.
    13    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    14    [(18)] (17) N-methyl-3-piperidyl benzilate.
    15    [(19)] (18) Psilocybin.
    16    [(20)] (19) Psilocyn.
    17    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
    18  derived from the cannabis plant that are equivalents of  the  substances
    19  contained  in the plant, or in the resinous extractives of cannabis, sp.
    20  and/or synthetic substances, derivatives, and their isomers with similar
    21  chemical structure and pharmacological activity such as the following:
    22    [/\] delta 1 cis or  trans  tetrahydrocannabinol,  and  their  optical
    23  isomers
    24    [/\]  delta  6  cis  or  trans tetrahydrocannabinol, and their optical
    25  isomers
    26    [/\] delta 3, 4 cis or trans  tetrahydrocannabinol,  and  its  optical
    27  isomers  (since  nomenclature of these substances is not internationally
    28  standardized, compounds of these  structures,  regardless  of  numerical
    29  designation of atomic positions covered).
    30    [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
    31  names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
    32  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    33    [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
    34  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    35    [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
    36  names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
    37  phencyclidine, TPCP, TCP.
    38    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    39    [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
    40  N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
    41  MDE, MDEA.
    42    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    43  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    44  N-hydroxy MDA.
    45    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    46  names: TCPY.
    47    [(29)] (28)   Alpha-ethyltryptamine.   Some   trade  or  other  names:
    48  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    49  3- (2-aminobutyl) indole; Alpha-ET or AET.
    50    [(30)]  (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or other
    51  names: DOET.
    52    [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade  or  other
    53  names:   2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;  alpha-desmethyl
    54  DOB; 2C-B, Nexus.
    55    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    56  optical isomers, salts and salts of isomers.

        S. 1527--B                         71

     1    § 5. Section 3382 of the public health law is REPEALED.
     2    § 6. Title 5-A of article 33 of the public health law is REPEALED.
     3    §  7.  Paragraph  (d) of subdivision 3, subdivision 3-a and paragraphs
     4  (a) and (b) of subdivision 11 of section 1311 of the civil practice  law
     5  and  rules,  paragraph (d) of subdivision 3 and subdivision 3-a as added
     6  by chapter 655 of the laws of 1990 and paragraphs (a) and (b) of  subdi-
     7  vision  11 as amended by section 47 of part A1 of chapter 56 of the laws
     8  of 2010, are amended to read as follows:
     9    (d) In a forfeiture action commenced by a claiming authority against a
    10  defendant, the following rebuttable presumption shall apply: all curren-
    11  cy or negotiable instruments payable to the bearer shall be presumed  to
    12  be  the proceeds of a pre-conviction forfeiture crime when such currency
    13  or negotiable  instruments  are  (i)  found  in  close  proximity  to  a
    14  controlled  substance unlawfully possessed by the defendant in an amount
    15  sufficient to constitute a violation of section 220.18 or 220.21 of  the
    16  penal  law,  or  (ii)  found  in  close  proximity  to any quantity of a
    17  controlled substance [or marihuana] unlawfully possessed by such defend-
    18  ant in a room, other than a public place, under  circumstances  evincing
    19  an  intent to unlawfully mix, compound, distribute, package or otherwise
    20  prepare for sale such controlled substance [or marihuana].
    21    3-a. Conviction of a person in a criminal action  upon  an  accusatory
    22  instrument  which  includes  one  or  more  of the felonies specified in
    23  subdivision four-b of section thirteen hundred ten of this  article,  of
    24  any  felony other than such felonies, shall not preclude a defendant, in
    25  any subsequent proceeding under this article where that conviction is at
    26  issue, from adducing evidence that the conduct underlying the conviction
    27  would not establish the elements of any of  the  felonies  specified  in
    28  such subdivision other than the one to which the criminal defendant pled
    29  guilty.  If the defendant does adduce such evidence, the burden shall be
    30  upon the claiming authority to prove, by clear and convincing  evidence,
    31  that  the conduct underlying the criminal conviction would establish the
    32  elements of the felony specified in such subdivision. Nothing  contained
    33  in  this  subdivision  shall  affect the validity of a settlement of any
    34  forfeiture action negotiated between the claiming authority and a crimi-
    35  nal defendant contemporaneously with the taking of a plea of guilty in a
    36  criminal action to any felony defined in article two hundred twenty  [or
    37  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    38  commit the same.
    39    (a)  Any  stipulation or settlement agreement between the parties to a
    40  forfeiture action shall be filed with the clerk of the  court  in  which
    41  the forfeiture action is pending. No stipulation or settlement agreement
    42  shall  be  accepted  for filing unless it is accompanied by an affidavit
    43  from the claiming authority that written notice of  the  stipulation  or
    44  settlement agreement, including the terms of such, has been given to the
    45  office  of  victim  services,  the  state  division  of criminal justice
    46  services[, and in the case of a forfeiture based on a felony defined  in
    47  article two hundred twenty or section 221.30 or 221.55 of the penal law,
    48  to the state division of substance abuse services].
    49    (b)  No  judgment  or order of forfeiture shall be accepted for filing
    50  unless it is accompanied by an affidavit  from  the  claiming  authority
    51  that  written  notice of judgment or order, including the terms of such,
    52  has been given to the office of victim services, the state  division  of
    53  criminal  justice  services[, and in the case of a forfeiture based on a
    54  felony defined in article two hundred twenty or section 221.30 or 221.55
    55  of the penal law, to the state division of substance abuse services].

        S. 1527--B                         72

     1    § 8. Subdivision 1 of section 3397-b of  the  public  health  law,  as
     2  added by chapter 810 of the laws of 1980, is amended to read as follows:
     3    1.  ["Marijuana"]  "Cannabis" means [marijuana] cannabis as defined in
     4  [section thirty-three hundred two of this chapter]  subdivision  six  of
     5  section  220.00 of the penal law and shall also include tetrahydrocanna-
     6  binols or a chemical derivative of tetrahydrocannabinol.
     7    § 9. Section 114-a of the vehicle and traffic law, as added by chapter
     8  163 of the laws of 1973, is amended to read as follows:
     9    § 114-a. Drug. The term "drug" when used in this  chapter,  means  and
    10  includes any substance listed in section thirty-three hundred six of the
    11  public  health  law  and any substance or combination of substances that
    12  impair physical and mental abilities.
    13    § 10. Subdivisions 5, 6 and 9 of section  220.00  of  the  penal  law,
    14  subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
    15  6  as  amended  by chapter 1051 of the laws of 1973 and subdivision 9 as
    16  amended by chapter 664 of the laws of 1985,  are  amended  and  two  new
    17  subdivisions 21 and 22 are added to read as follows:
    18    5.  "Controlled  substance"  means any substance listed in schedule I,
    19  II, III, IV or V of section  thirty-three  hundred  six  of  the  public
    20  health  law  other than [marihuana] cannabis, but including concentrated
    21  cannabis as defined in [paragraph (a) of  subdivision  four  of  section
    22  thirty-three  hundred  two  of  such law] subdivision twenty-one of this
    23  section.
    24    6. ["Marihuana"] "Cannabis" means ["marihuana" or "concentrated canna-
    25  bis" as those terms are defined in section thirty-three hundred  two  of
    26  the  public  health  law]  all parts of the plant of the genus Cannabis,
    27  whether growing or not; the seeds thereof; the resin extracted from  any
    28  part  of  the  plant; and every compound, manufacture, salt, derivative,
    29  mixture, or preparation of the plant, its seeds or resin.   It does  not
    30  include  the mature stalks of the plant, fiber produced from the stalks,
    31  oil or cake made from the seeds of the plant, any other compound,  manu-
    32  facture,  salt, derivative, mixture, or preparation of the mature stalks
    33  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    34  sterilized  seed of the plant which is incapable of germination. It does
    35  not include all parts of the plant Cannabis sativa L.,  whether  growing
    36  or not, having no more than three-tenths of one percent tetrahydrocanna-
    37  binol (THC).
    38    9.  "Hallucinogen"  means any controlled substance listed in [schedule
    39  I(d)] paragraphs (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
    40  (19),  (20) and (21) of subdivision (d) of schedule I of section thirty-
    41  three hundred six of the public health law.
    42    21. "Concentrated cannabis" means:
    43    (a) the separated resin, whether crude or purified,  obtained  from  a
    44  plant of the genus Cannabis; or
    45    (b)  a  material,  preparation,  mixture,  compound or other substance
    46  which contains more than three percent by weight of delta-9  tetrahydro-
    47  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
    48  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
    49  numbering system.
    50    22.  "Cannabis  products"  means  cannabis, concentrated cannabis, and
    51  cannabis-infused products containing  concentrated  cannabis  and  other
    52  ingredients.
    53    § 11.  Subdivision 4 of section 220.06 of the penal law, as amended by
    54  chapter 537 of the laws of 1998, is amended to read as follows:
    55    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
    56  containing concentrated cannabis as defined in [paragraph (a) of  subdi-

        S. 1527--B                         73

     1  vision  four  of  section  thirty-three hundred two of the public health
     2  law] subdivision twenty-one of section 220.00 of this article  and  said
     3  preparations,  compounds,  mixtures  or  substances  are of an aggregate
     4  weight of one-fourth ounce or more; or
     5    § 12. Subdivision 10 of section 220.09 of the penal law, as amended by
     6  chapter 537 of the laws of 1998, is amended to read as follows:
     7    10.  one  or  more  preparations,  compounds,  mixtures  or substances
     8  containing concentrated cannabis as defined in [paragraph (a) of  subdi-
     9  vision  four  of  section  thirty-three hundred two of the public health
    10  law] subdivision twenty-one of section 220.00 of this article  and  said
    11  preparations,  compounds,  mixtures  or  substances  are of an aggregate
    12  weight of one ounce or more; or
    13    § 13. Subdivision 3 of section 220.34 of the penal law, as amended  by
    14  chapter 537 of the laws of 1998, is amended to read as follows:
    15    3.  concentrated  cannabis as defined in [paragraph (a) of subdivision
    16  four of section thirty-three hundred  two  of  the  public  health  law]
    17  subdivision twenty-one of section 220.00 of this article; or
    18    §  14.  Section  220.50 of the penal law, as amended by chapter 627 of
    19  the laws of 1990, is amended to read as follows:
    20  § 220.50 Criminally using drug paraphernalia in the second degree.
    21    A person is guilty of  criminally  using  drug  paraphernalia  in  the
    22  second degree when he knowingly possesses or sells:
    23    1.  Diluents,  dilutants or adulterants, including but not limited to,
    24  any of the following: quinine hydrochloride, mannitol, mannite,  lactose
    25  or  dextrose,  adapted  for the dilution of narcotic drugs or stimulants
    26  under circumstances evincing an intent to use,  or  under  circumstances
    27  evincing  knowledge  that  some  person  intends  to  use,  the same for
    28  purposes of unlawfully mixing, compounding, or otherwise  preparing  any
    29  narcotic   drug  or  stimulant,  other  than  cannabis  or  concentrated
    30  cannabis; or
    31    2. Gelatine capsules, glassine envelopes, vials, capsules or any other
    32  material suitable for the packaging of individual quantities of narcotic
    33  drugs or stimulants under circumstances evincing an intent  to  use,  or
    34  under  circumstances evincing knowledge that some person intends to use,
    35  the same for the  purpose  of  unlawfully  manufacturing,  packaging  or
    36  dispensing  of  any  narcotic  drug or stimulant, other than cannabis or
    37  concentrated cannabis; or
    38    3. Scales and balances used or designed for the purpose of weighing or
    39  measuring controlled substances, under circumstances evincing an  intent
    40  to  use,  or  under  circumstances  evincing  knowledge that some person
    41  intends to use, the same for purpose of unlawfully manufacturing,  pack-
    42  aging or dispensing of any narcotic drug or stimulant, other than canna-
    43  bis or concentrated cannabis.
    44    Criminally  using drug paraphernalia in the second degree is a class A
    45  misdemeanor.
    46    § 15. Article 221 of the penal law is REPEALED.
    47    § 16. The penal law is amended by adding a new article 222 to read  as
    48  follows:
    49                                 ARTICLE 222
    50                                  CANNABIS
    51  Section 222.00 Cannabis; definitions.
    52          222.05 Personal use of cannabis.
    53          222.10 Unlawful cultivation of cannabis.
    54          222.15 Licensing of cannabis production and distribution.
    55          222.20 Unlawful possession of cannabis.
    56          222.25 Unlicensed sale of cannabis in the second degree.

        S. 1527--B                         74

     1          222.30 Unlicensed sale of cannabis in the first degree.
     2          222.35 Sale  of  cannabis to a person less than twenty-one years
     3                   of age in the second degree.
     4          222.40 Sale of cannabis to a person less than  twenty-one  years
     5                   of age in the first degree.
     6  § 222.00 Cannabis; definitions.
     7    1.  "Cannabis"  means  all  parts  of the plant of the genus Cannabis,
     8  whether growing or not; the seeds thereof; the resin extracted from  any
     9  part  of  the  plant; and every compound, manufacture, salt, derivative,
    10  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    11  include  the mature stalks of the plant, fiber produced from the stalks,
    12  oil or cake made from the seeds of the plant, any other compound,  manu-
    13  facture,  salt, derivative, mixture, or preparation of the mature stalks
    14  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    15  sterilized seed of the plant which is incapable of germination.  It does
    16  not  include  all parts of the plant Cannabis sativa L., whether growing
    17  or not, having no more than three-tenths of one percent tetrahydrocanna-
    18  binol (THC).
    19    2. "Concentrated cannabis" means:
    20    (a) the separated resin, whether crude or purified,  obtained  from  a
    21  plant of the genus Cannabis; or
    22    (b)  a  material,  preparation,  mixture,  compound or other substance
    23  which contains more than three percent by weight of delta-9  tetrahydro-
    24  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
    25  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
    26  numbering system.
    27    3.  "Cannabis-infused products" means products that have been manufac-
    28  tured and contain either cannabis or  concentrated  cannabis  and  other
    29  ingredients that are intended for use or consumption.
    30    4.  "Mature  cannabis  plant"  means  a cannabis plant with observable
    31  flowers or buds.
    32    5. For the purposes of  this  article,  "sale"  shall  mean  to  sell,
    33  exchange  or  dispose  of for compensation. "Sale" shall not include the
    34  transfer of cannabis, concentrated cannabis or cannabis-infused  product
    35  between persons twenty-one years of age or older without compensation in
    36  the quantities authorized in paragraph (b) of subdivision one of section
    37  222.05 of this article.
    38  § 222.05 Personal use of cannabis.
    39    Notwithstanding any other provision of law to the contrary:
    40    1.  The  following acts are lawful for persons twenty-one years of age
    41  or older:  (a) possessing, displaying, purchasing, obtaining, or  trans-
    42  porting  up  to  three ounces of cannabis and up to twenty-four grams of
    43  concentrated  cannabis,  or  equivalent   amount   of   cannabis-infused
    44  products;
    45    (b)  transferring,  without compensation, to a person twenty-one years
    46  of age or older, up to three ounces of cannabis and  up  to  twenty-four
    47  grams of concentrated cannabis, or equivalent amount of cannabis-infused
    48  products;
    49    (c)  using,  smoking,  ingesting,  or consuming cannabis, concentrated
    50  cannabis or cannabis-infused products  unless  otherwise  prohibited  by
    51  state law or regulation;
    52    (d)  possessing, using, displaying, purchasing, obtaining, manufactur-
    53  ing, transporting or giving to any person twenty-one  years  of  age  or
    54  older cannabis paraphernalia or concentrated cannabis paraphernalia; and

        S. 1527--B                         75

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

        S. 1527--B                         76

     1    (c)  Violations of the restrictions under this subdivision are subject
     2  to a fine not exceeding twenty-five dollars or an appropriate amount  of
     3  community service not to exceed twenty hours.
     4  § 222.10 Unlawful cultivation of cannabis.
     5    A  person is guilty of unlawful cultivation of cannabis when he or she
     6  knowingly and unlawfully plants, cultivates, harvests, dries,  or  proc-
     7  esses  cannabis on public lands or otherwise in violation of article six
     8  of the cannabis law.
     9    Unlawful cultivation of cannabis is a class B misdemeanor.
    10  § 222.15 Licensing of cannabis production and distribution.
    11    The criminal penalties pursuant to the provisions of this article  for
    12  possessing, manufacturing, transporting, distributing, selling or trans-
    13  ferring  cannabis,  concentrated  cannabis  or cannabis-infused products
    14  shall not apply to any person engaged in  such  activity  in  compliance
    15  with the cannabis law.
    16  § 222.20 Unlawful possession of cannabis.
    17    A  person  is guilty of unlawful possession of cannabis when he or she
    18  knowingly and unlawfully possesses:
    19    1. cannabis and such cannabis weighs more than three ounces; or
    20    2. concentrated cannabis and such concentrated  cannabis  weighs  more
    21  than twenty-four grams; or
    22    3. equivalent amount of cannabis-infused products.
    23    Unlawful possession of cannabis is a violation punishable by a fine of
    24  not more than one hundred twenty-five dollars.
    25  § 222.25 Unlicensed sale of cannabis in the second degree.
    26    1.  A  person  is  guilty of unlicensed sale of cannabis in the second
    27  degree when he or she knowingly and unlawfully sells up to three  ounces
    28  of cannabis, or twenty-four grams of concentrated cannabis or equivalent
    29  amount of cannabis-infused products.
    30    2.  A violation of this section is subject to the following penalties,
    31  as applicable:
    32    (a) violation punishable by a fine of not more than one hundred  twen-
    33  ty-five dollars;
    34    (b) if, within the previous five years, the defendant was convicted of
    35  the  crime  of  unlicensed sale of cannabis in the first degree, sale of
    36  cannabis to a person less than twenty-one years of  age  in  the  second
    37  degree,  sale  of cannabis to a person less than twenty-one years of age
    38  in the first degree or this section, then a violation  punishable  by  a
    39  fine  of  not  more  than  two  hundred  fifty dollars for a second such
    40  offense; or
    41    (c) if, within the previous five years, the defendant was convicted of
    42  the crime of unlicensed sale of cannabis in the first  degree,  sale  of
    43  cannabis  to  a  person  less than twenty-one years of age in the second
    44  degree, sale of cannabis to a person less than twenty-one years  of  age
    45  in the first degree or this section, then a class B misdemeanor for such
    46  third or subsequent offense.
    47  § 222.30 Unlicensed sale of cannabis in the first degree.
    48    1.  A  person  is  guilty  of unlicensed sale of cannabis in the first
    49  degree when he or she knowingly and unlawfully  sells  more  than  three
    50  ounces of cannabis, more than twenty-four grams of concentrated cannabis
    51  or the equivalent amount of cannabis-infused products.
    52    2.  A violation of this section is subject to the following penalties,
    53  as applicable:
    54    (a) a violation punishable by a fine of  not  more  than  two  hundred
    55  fifty dollars;

        S. 1527--B                         77

     1    (b) if, within the previous five years, the defendant was convicted of
     2  the  crime  of unlicensed sale of cannabis in the second degree, sale of
     3  cannabis to a person less than twenty-one years of  age  in  the  second
     4  degree,  sale  of cannabis to a person less than twenty-one years of age
     5  in  the  first  degree or this section, then a violation punishable by a
     6  fine of not more than five hundred dollars for such second offense; or
     7    (c) if, within the previous five years, the defendant was convicted of
     8  the crime of unlicensed sale of cannabis in the second degree,  sale  of
     9  cannabis  to  a  person  less than twenty-one years of age in the second
    10  degree, sale of cannabis to a person less than twenty-one years  of  age
    11  in the first degree or this section, then a class A misdemeanor for such
    12  third or subsequent offense.
    13  § 222.35 Sale  of cannabis to a person less than twenty-one years of age
    14             in the second degree.
    15    A person twenty-one years of age or older is guilty  of  the  sale  of
    16  cannabis  to  a  person  less than twenty-one years of age in the second
    17  degree when, being twenty-one years of age or older, he or she knowingly
    18  and unlawfully sells cannabis, concentrated cannabis or cannabis-infused
    19  products to a person less than twenty-one years of age.
    20    Sale of cannabis to a person under twenty-one  years  of  age  in  the
    21  second degree is a class A misdemeanor.
    22  § 222.40 Sale  of cannabis to a person less than twenty-one years of age
    23             in the first degree.
    24    A person twenty-one years of age and older is guilty of  the  sale  of
    25  cannabis  to  a person under twenty-one years of age in the first degree
    26  when, being twenty-one years of age or older, he or  she  knowingly  and
    27  unlawfully  sells  more than three ounces of cannabis, more than twenty-
    28  four grams of concentrated cannabis or the equivalent amount  of  canna-
    29  bis-infused products.
    30    Sale  of cannabis to a person less than twenty-one years of age in the
    31  first degree is a class E felony.
    32    § 17. Subdivision 8 of section 1399-n of the  public  health  law,  as
    33  amended  by  chapter  13  of  the  laws  of  2003, is amended to read as
    34  follows:
    35    8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
    36  any  other  matter  or  substance  which  contains  tobacco or cannabis;
    37  provided that it does not include  the  use  of  an  electronic  smoking
    38  device  that creates an aerosol or vapor, unless local or state statutes
    39  extend prohibitions on smoking to electronic smoking devices.
    40    § 18. Section 1.20 of the criminal procedure law is amended by  adding
    41  a new subdivision 45 to read as follows:
    42    45.  "Expunge"  means,  where  an  arrest and any enforcement activity
    43  connected with that arrest, including prosecution and any disposition in
    44  any New York state court,  is  deemed  a  nullity  and  the  accused  is
    45  restored,  in  contemplation  of  the law, to the status such individual
    46  occupied before the arrest and/or  prosecution;  that  records  of  such
    47  arrest,  prosecution  and/or  disposition shall be marked as expunged or
    48  shall be destroyed as set forth  in  section  160.50  of  this  chapter.
    49  Neither  the  arrest  nor  prosecution  and/or disposition, if any, of a
    50  matter deemed a nullity shall  operate  as  a  disqualification  of  any
    51  person  so  accused  to pursue or engage in any lawful activity, occupa-
    52  tion, profession or  calling.  Except  where  specifically  required  or
    53  permitted by statute or upon specific authorization of a superior court,
    54  no  such  person  shall be required to divulge information pertaining to
    55  the arrest, prosecution and/or disposition of such a matter.

        S. 1527--B                         78

     1    § 19. Subdivision 1 of section 160.50 of the criminal  procedure  law,
     2  as  amended by chapter 169 of the laws of 1994, paragraph (d) as amended
     3  by chapter 449 of the laws of 2015, is amended and a new subdivision 1-a
     4  is added to read as follows:
     5    1.  Upon  the termination of a criminal action or proceeding against a
     6  person in favor of such person, as defined in subdivision three of  this
     7  section,  unless  the  district  attorney upon motion with not less than
     8  five days notice to such person or his or her attorney  demonstrates  to
     9  the  satisfaction  of  the  court  that the interests of justice require
    10  otherwise, or the court on its own motion with not less than  five  days
    11  notice  to such person or his or her attorney determines that the inter-
    12  ests of justice require otherwise and states the reasons for such deter-
    13  mination on the record, [the record of such action or  proceeding  shall
    14  be  sealed  and  the  clerk of the court wherein such criminal action or
    15  proceeding was terminated shall immediately notify the  commissioner  of
    16  the division of criminal justice services and the heads of all appropri-
    17  ate  police  departments  and  other  law  enforcement agencies that the
    18  action has been terminated in favor of the accused, and unless the court
    19  has directed otherwise, that the record of  such  action  or  proceeding
    20  shall  be  sealed.  Upon receipt of notification of such termination and
    21  sealing] such action or proceeding shall be deemed a nullity and records
    22  of such action or proceeding expunged, and the clerk of the court where-
    23  in such criminal action or proceeding was terminated  shall  immediately
    24  notify the commissioner of the division of criminal justice services and
    25  the  heads  of all appropriate police departments and other law enforce-
    26  ment agencies that the action  has  been  terminated  in  favor  of  the
    27  accused  and  deemed a nullity, and unless the court has directed other-
    28  wise, that the record of or relating to such action or proceeding  shall
    29  be immediately expunged as follows:
    30    (a)  every  photograph of such person and photographic plate or proof,
    31  and all palmprints and fingerprints, retina scans or DNA material  taken
    32  or  made  of  such  person pursuant to the provisions of this article in
    33  regard to the action  or  proceeding  terminated,  [except  a  dismissal
    34  pursuant  to  section  170.56 or 210.46 of this chapter,] and all dupli-
    35  cates and copies thereof,  except  a  digital  fingerprint  image  where
    36  authorized  pursuant  to paragraph (e) of this subdivision, shall forth-
    37  with be[, at the discretion of the recipient agency,  either]  destroyed
    38  [or  returned  to  such  person, or to the attorney who represented such
    39  person] at the time of the termination of the action or proceeding[,  at
    40  the  address  given  by  such  person  or  attorney during the action or
    41  proceeding,] by the division of criminal justice  services  and  by  any
    42  police  department or law enforcement agency having any such photograph,
    43  photographic plate or proof, palmprint [or], fingerprints, retina  scans
    44  or DNA material in its possession or under its control;
    45    (b)  any  police  department  or law enforcement agency, including the
    46  division of criminal justice services, which  transmitted  or  otherwise
    47  forwarded to any agency of the United States or of any other state or of
    48  any  other jurisdiction outside the state of New York copies of any such
    49  photographs, photographic plates or proofs,  palmprints  [and],  finger-
    50  prints,  retina  scans  or  DNA  material,  including  those relating to
    51  actions or proceedings which were dismissed pursuant to  section  170.56
    52  or  210.46 of this [chapter] part, shall forthwith formally [request in]
    53  inform them in writing that [all such copies be destroyed or returned to
    54  the police department or law enforcement  agency  which  transmitted  or
    55  forwarded  them,  and,  if returned, such department or agency shall, at
    56  its discretion, either destroy or return them as provided herein, except

        S. 1527--B                         79

     1  that those relating to dismissals pursuant to section 170.56  or  210.46
     2  of this chapter shall not be destroyed or returned by such department or
     3  agency]  the  matter  has  been expunged and request in writing that all
     4  such copies be destroyed;
     5    (c) all official records and papers, including judgments and orders of
     6  a  court  but  not  including  published  court decisions or opinions or
     7  records and briefs on appeal, relating to  the  arrest  or  prosecution,
     8  including  all  duplicates and copies thereof, on file with the division
     9  of criminal justice services, any court, police agency, or  prosecutor's
    10  office  shall  be [sealed and not made available to any person or public
    11  or private agency] marked as expunged by conspicuously indicating on the
    12  face of the record or at the beginning of  the  digitized  file  of  the
    13  record that the record has been designated as expunged. Such records and
    14  papers  shall  be sealed and not be made available to any person, except
    15  the individual whose case has been deemed a nullity or their  designated
    16  agent  as  set  forth  in  paragraph  (d) of this subdivision, or to any
    17  public or private agency;
    18    (d) [such] records set forth in  paragraph  (c)  of  this  subdivision
    19  shall be made available to the person accused or to such person's desig-
    20  nated  agent,  and  shall  be  made available to (i) a prosecutor in any
    21  proceeding in which the accused has  moved  for  an  order  pursuant  to
    22  section  170.56 or 210.46 of this [chapter] part, or (ii) a law enforce-
    23  ment agency upon ex parte motion  in  any  superior  court,  or  in  any
    24  district court, city court or the criminal court of the city of New York
    25  provided  that  such  court originally sealed or expunged the record, if
    26  such agency demonstrates to the satisfaction of the court  that  justice
    27  requires  that  such records be made available to it, or (iii) any state
    28  or local officer or agency  with  responsibility  for  the  issuance  of
    29  licenses to possess guns, when the accused has made application for such
    30  a  license,  or  (iv)  the  New York state department of corrections and
    31  community supervision when the accused is on  parole  supervision  as  a
    32  result  of  conditional  release  or a parole release granted by the New
    33  York state board of parole, and the arrest which is the subject  of  the
    34  inquiry  is  one  which occurred while the accused was under such super-
    35  vision, or (v) any prospective employer of a  police  officer  or  peace
    36  officer  as  those  terms  are  defined in subdivisions thirty-three and
    37  thirty-four of section 1.20 of this chapter, in relation to an  applica-
    38  tion  for  employment  as  a  police officer or peace officer; provided,
    39  however, that every person who is  an  applicant  for  the  position  of
    40  police  officer  or  peace officer shall be furnished with a copy of all
    41  records obtained under this paragraph and  afforded  an  opportunity  to
    42  make  an explanation thereto, or (vi) the probation department responsi-
    43  ble for supervision of the accused when the arrest which is the  subject
    44  of  the  inquiry  is one which occurred while the accused was under such
    45  supervision; and
    46    (e) where fingerprints subject to the provisions of this section  have
    47  been received by the division of criminal justice services and have been
    48  filed  by  the  division as digital images, such images may be retained,
    49  provided that a fingerprint card of the individual is on file  with  the
    50  division  which  was  not [sealed] destroyed pursuant to this section or
    51  section 160.55 of this article.
    52    (1-a) Cases previously sealed pursuant to this section shall be deemed
    53  expunged, and digital records shall be so marked.
    54    § 20. Paragraphs (i), (j) and (k) of subdivision 3 of  section  160.50
    55  of  the criminal procedure law, paragraphs (i) and (j) as added by chap-
    56  ter 905 of the laws of 1977, paragraph (k) as added by  chapter  835  of

        S. 1527--B                         80

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

        S. 1527--B                         81

     1  nal  action  shall  be  expunged as described in subdivision one of this
     2  section.
     3    5.  In  situations where automatic vacatur, dismissal, expungement and
     4  record destruction is required by subdivision four of this  section  but
     5  has not taken place, or where supporting court records cannot be located
     6  or  have been destroyed, and an individual or their attorney presents to
     7  OCA fingerprint records from the New York  state  division  of  criminal
     8  justice  services  or a court disposition which indicate that a criminal
     9  action  or  proceeding  against  the  applicant  was  terminated  by   a
    10  conviction  for  section  221.05, 221.10 221.15, 221.20, 221.25, 221.30,
    11  221.35, or 221.40 of the penal law in effect prior to the effective date
    12  of this subdivision, within thirty days of notice  to  OCA,  the  action
    13  shall  forthwith  be  vacated,  dismissed,  and expunged as set forth in
    14  subdivision one of this section.
    15    6. Vacatur, dismissal and expungement as set forth in subdivision four
    16  or subdivision five of this section is without prejudice to an  individ-
    17  ual  or their attorney seeking further relief pursuant to section 440.10
    18  of this part. Nothing in this section is intended to diminish  or  abro-
    19  gate any rights or remedies otherwise available to the individual.
    20    §  22.  Subdivision 1 of section 170.56 of the criminal procedure law,
    21  as amended by chapter 360 of the laws of 1977, is  amended  to  read  as
    22  follows:
    23    1.  Upon or after arraignment in a local criminal court upon an infor-
    24  mation, a prosecutor's information or a misdemeanor complaint, where the
    25  sole  remaining  count  or  counts  charge  a violation or violations of
    26  section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
    27  law,  or  upon summons for a nuisance offense under section sixty-five-c
    28  of the alcoholic beverage control law and before the entry of a plea  of
    29  guilty  thereto  or  commencement  of   a trial thereof, the court, upon
    30  motion of a defendant, may order that all proceedings be  suspended  and
    31  the  action  adjourned  in contemplation of dismissal, or upon a finding
    32  that adjournment would not be necessary or appropriate and  the  setting
    33  forth  in  the  record  of the reasons for such findings, may dismiss in
    34  furtherance of justice the  accusatory  instrument;  provided,  however,
    35  that  the  court  may  not  order  such  adjournment in contemplation of
    36  dismissal or dismiss the accusatory instrument if: (a) the defendant has
    37  previously been granted such adjournment in contemplation of  dismissal,
    38  or  (b) the defendant has previously been granted a dismissal under this
    39  section, or (c) the defendant  has  previously  been  convicted  of  any
    40  offense involving controlled substances, or (d) the defendant has previ-
    41  ously  been  convicted  of  a  crime  and the district attorney does not
    42  consent or (e) the defendant has previously been adjudicated a  youthful
    43  offender on the basis of any act or acts involving controlled substances
    44  and the district attorney does not consent.  Notwithstanding the limita-
    45  tions  set  forth  in  this  subdivision,  the  court may order that all
    46  proceedings be suspended and the action adjourned  in  contemplation  of
    47  dismissal  based  upon  a  finding  of  exceptional  circumstances.  For
    48  purposes of this  subdivision,  exceptional  circumstances  exist  when,
    49  regardless  of the ultimate disposition of the case, the entry of a plea
    50  of guilty is likely to result in severe or ongoing consequences, includ-
    51  ing, but not limited to, potential or actual immigration consequences.
    52    § 23. Paragraph (j) of subdivision 1 of section 440.10 of the criminal
    53  procedure law, as amended by section 2 of part MMM of chapter 59 of  the
    54  laws  of  2019,  is  amended and a new paragraph (k) is added to read as
    55  follows:

        S. 1527--B                         82

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

        S. 1527--B                         83

     1    3. Under no circumstances may resentencing under this  section  result
     2  in  the  imposition  of a term longer than the original sentence, or the
     3  reinstatement of charges dismissed pursuant to a negotiated plea  agree-
     4  ment.
     5    4. (a) A person who has completed his or her sentence for a conviction
     6  under the former article two hundred twenty-one of the penal law, wheth-
     7  er  by trial or open or negotiated plea, who would have been guilty of a
     8  lesser offense on and after the effective date of this section had  this
     9  section been in effect at the time of his or her conviction, may file an
    10  application  before  the  trial  court  that  entered  the  judgment  of
    11  conviction in his or her case to have the  conviction  redesignated  (or
    12  "reclassified"),  in  accordance  with article two hundred twenty-two of
    13  the penal law.
    14    (b) Upon receiving a motion under paragraph (a) of  this  subdivision,
    15  the  court  shall presume the movant satisfies the criteria in paragraph
    16  (a) of this subdivision unless the party opposing the motion  proves  by
    17  clear  and  convincing  evidence  that  the  movant does not satisfy the
    18  criteria. If the movant satisfies the criteria in paragraph (a) of  this
    19  subdivision,  the  court  shall  grant  the  motion  to  redesignate (or
    20  "reclassify") the conviction.
    21    5. (a) If the court that originally sentenced the movant is not avail-
    22  able, the presiding judge shall designate another judge to rule  on  the
    23  petition or application.
    24    (b)  Unless  requested by the movant, no hearing is necessary to grant
    25  an application filed under subdivision two or four of this section.
    26    (c) Any felony conviction that is vacated and resentenced under subdi-
    27  vision two of this section or designated as a misdemeanor  or  violation
    28  under subdivision four of this section shall be considered a misdemeanor
    29  or  violation  for  all  purposes.  Any  misdemeanor  conviction that is
    30  vacated and resentenced under subdivision two of this section or  desig-
    31  nated  as  a  violation  under subdivision four of this section shall be
    32  considered a violation for all purposes.
    33    (d) Nothing in this section is intended to diminish  or  abrogate  any
    34  rights or remedies otherwise available to the petitioner or applicant.
    35    (e)  Nothing  in  this and related sections is intended to diminish or
    36  abrogate the finality of judgments in any case not  falling  within  the
    37  purview of this section.
    38    (f)  The  provisions  of  this section shall apply equally to juvenile
    39  delinquency adjudications and dispositions under  section  five  hundred
    40  one-e of the executive law if the juvenile would not have been guilty of
    41  an  offense  or  would  have  been guilty of a lesser offense under this
    42  section had this section been in effect  at  the  time  of  his  or  her
    43  conviction.
    44    (g)  The  office  of  court  administration  shall promulgate and make
    45  available all necessary forms to enable the filing of the petitions  and
    46  applications provided in this section no later than sixty days following
    47  the effective date of this section.
    48    § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
    49  procedure  law, as amended by chapter 37 of the laws of 2014, is amended
    50  to read as follows:
    51    (c) Criminal possession of  a  controlled  substance  in  the  seventh
    52  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
    53  possession of a controlled substance in the fifth degree as  defined  in
    54  section  220.06  of  the  penal law, criminal possession of a controlled
    55  substance in the fourth degree as defined in section 220.09 of the penal
    56  law, criminal possession of a controlled substance in the  third  degree

        S. 1527--B                         84

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

        S. 1527--B                         85

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

        S. 1527--B                         86

     1  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
     2  article one hundred seventy; involving false written statements pursuant
     3  to article one hundred seventy-five; commercial bribing  and  commercial
     4  bribe  receiving pursuant to article one hundred eighty; criminal imper-
     5  sonation and scheme to defraud pursuant to article one  hundred  ninety;
     6  bribery involving public servants and related offenses pursuant to arti-
     7  cle  two  hundred;  perjury and related offenses pursuant to article two
     8  hundred ten; tampering with a witness, intimidating a victim or  witness
     9  and  tampering  with  physical  evidence pursuant to article two hundred
    10  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
    11  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    12  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    13  220.41,  220.43  and  220.44;  [criminal] unlicensed sale of [marijuana]
    14  cannabis in the first degree pursuant to [sections  221.45,  221.50  and
    15  221.55]  section 222.30; riot in the first degree, aggravated harassment
    16  in the first degree, criminal nuisance in the first degree  and  falsely
    17  reporting  an incident in the second or first degree pursuant to article
    18  two hundred forty; and crimes against public safety pursuant to  article
    19  two hundred sixty-five of the penal law.
    20    §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
    21  business law is REPEALED.
    22    § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
    23  business  law, as amended by chapter 812 of the laws of 1980, is amended
    24  to read as follows:
    25    (h) Objects, used or designed for the purpose of ingesting,  inhaling,
    26  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
    27  into the human body.
    28    § 30. Subdivision 7 of section 995 of the executive law, as amended by
    29  chapter 19 of the laws of 2012, is amended to read as follows:
    30    7.  "Designated  offender"  means  a  person  convicted  of any felony
    31  defined in any chapter of the laws  of  the  state  or  any  misdemeanor
    32  defined  in  the  penal  law  [except that where the person is convicted
    33  under section 221.10 of the penal law, only  a  person  convicted  under
    34  subdivision two of such section, or a person convicted under subdivision
    35  one  of  such  section  who  stands previously convicted of any crime as
    36  defined in subdivision six of section 10.00 of the penal law].
    37    § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
    38  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    39  56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
    40  laws of 1990, are amended to read as follows:
    41    (b) three or more violations of any of the felonies defined in section
    42  220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
    43  220.43[,] or 220.77[, or 221.55] of this chapter,  which  violations  do
    44  not  constitute  a single criminal offense as defined in subdivision one
    45  of section 40.10 of the criminal procedure law,  or  a  single  criminal
    46  transaction,  as  defined in paragraph (a) of subdivision two of section
    47  40.10 of the criminal procedure law, and at least one of which  resulted
    48  in  a  conviction  of  such  offense, or where the accusatory instrument
    49  charges one or more of such felonies, conviction upon a plea  of  guilty
    50  to a felony for which such plea is otherwise authorized by law; or
    51    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    52  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
    53  accusatory instrument charges any such felony, conviction upon a plea of
    54  guilty  to  a  felony for which the plea is otherwise authorized by law,
    55  together with evidence which: (i) provides substantial indicia that  the
    56  defendant  used  the  real  property  to  engage in a continual, ongoing

        S. 1527--B                         87

     1  course of conduct involving the unlawful mixing,  compounding,  manufac-
     2  turing, warehousing, or packaging of controlled substances [or where the
     3  conviction  is  for a violation of section 221.30 of this chapter, mari-
     4  juana] as part of an illegal trade or business for gain; and (ii) estab-
     5  lishes, where the conviction is for possession of a controlled substance
     6  [or  where  the  conviction is for a violation of section 221.30 of this
     7  chapter, marijuana], that such possession was with the  intent  to  sell
     8  it.
     9    §  32. Paragraph (c) of subdivision 4 of section 509-cc of the vehicle
    10  and traffic law, as amended by chapter 368  of  the  laws  of  2015,  is
    11  amended to read as follows:
    12    (c)  The  offenses referred to in subparagraph (i) of paragraph (b) of
    13  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    14  of this section that result in disqualification for  a  period  of  five
    15  years  shall include a conviction under sections 100.10, 105.13, 115.05,
    16  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    17  125.40,  125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17,
    18  140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06,  220.09,
    19  220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
    20  230.00, 230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20,  235.05,
    21  235.06,  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision two of
    22  section 260.20 and sections  260.25,  265.02,  265.03,  265.08,  265.09,
    23  265.10,  265.12,  265.35 of the penal law or an attempt to commit any of
    24  the aforesaid offenses under section 110.00 of the  penal  law,  or  any
    25  similar  offenses  committed under a former section of the penal law, or
    26  any offenses committed under a former section of  the  penal  law  which
    27  would  constitute violations of the aforesaid sections of the penal law,
    28  or any offenses committed outside  this  state  which  would  constitute
    29  violations of the aforesaid sections of the penal law.
    30    §  33.  The  opening  paragraph  of  paragraph (a) of subdivision 2 of
    31  section 1194 of the vehicle and traffic law, as amended by  chapter  196
    32  of the laws of 1996, is amended to read as follows:
    33    When authorized. Any person who operates a motor vehicle in this state
    34  shall  be deemed to have given consent to a chemical test of one or more
    35  of the following:   breath, blood[,] or  urine[,  or  saliva,]  for  the
    36  purpose  of  determining  the  alcoholic and/or drug content, other than
    37  cannabis content  including  but  not  limited  to  tetrahydrocannabinol
    38  content,  of  the blood provided that such test is administered by or at
    39  the direction of a police officer with respect to  a  chemical  test  of
    40  breath,  urine [or saliva] or, with respect to a chemical test of blood,
    41  at the direction of a police officer:
    42    § 34. The article heading of article 20-B of the tax law, as added  by
    43  chapter 90 of the laws of 2014, is amended to read as follows:
    44                                 ARTICLE 20-B
    45                 EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
    46    §  35.  Subdivision  1  of section 171-a of the tax law, as amended by
    47  section 3 of part XX of chapter 59 of the laws of 2019,  is  amended  to
    48  read as follows:
    49    1.  All  taxes,  interest, penalties and fees collected or received by
    50  the commissioner or the commissioner's duly authorized agent under arti-
    51  cles nine (except section one hundred eighty-two-a thereof and except as
    52  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    53  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    54  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    55  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    56  (except as otherwise provided in section four hundred eighty-two  there-

        S. 1527--B                         88

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

        S. 1527--B                         89

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

        S. 1527--B                         90

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

        S. 1527--B                         91

     1  one-l of this article and paid to the city of New York, the  comptroller
     2  shall collect a like amount from the city of New York.
     3    §  37.  Section 490 of the tax law, as added by chapter 90 of the laws
     4  of 2014, is amended to read as follows:
     5    § 490. [Definitions] Excise tax on medical  cannabis.    1.  (a)  [All
     6  definitions  of terms applicable to title five-A of article thirty-three
     7  of the public health law shall apply to this article.] For  purposes  of
     8  this  article,  the terms "medical cannabis," "registered organization,"
     9  "certified patient," and "designated  caregiver"  shall  have  the  same
    10  definitions as in section three of the cannabis law.
    11    (b)  As used in this section, where not otherwise specifically defined
    12  and unless a different meaning is clearly required "gross receipt" means
    13  the amount received in or by reason of any sale, conditional  or  other-
    14  wise, of medical [marihuana] cannabis or in or by reason of the furnish-
    15  ing of medical [marihuana] cannabis from the sale of medical [marihuana]
    16  cannabis provided by a registered organization to a certified patient or
    17  designated caregiver.  Gross receipt is expressed in money, whether paid
    18  in  cash,  credit or property of any kind or nature, and shall be deter-
    19  mined without any deduction therefrom on account  of  the  cost  of  the
    20  service  sold  or the cost of materials, labor or services used or other
    21  costs, interest or discount paid,  or  any  other  expenses  whatsoever.
    22  "Amount received" for the purpose of the definition of gross receipt, as
    23  the term gross receipt is used throughout this article, means the amount
    24  charged for the provision of medical [marihuana] cannabis.
    25    2.  There  is  hereby imposed an excise tax on the gross receipts from
    26  the sale of medical [marihuana] cannabis by a registered organization to
    27  a certified patient or designated caregiver, to be paid  by  the  regis-
    28  tered  organization,  at  the  rate of seven percent. The tax imposed by
    29  this article shall be charged against and  be  paid  by  the  registered
    30  organization and shall not be added as a separate charge or line item on
    31  any sales slip, invoice, receipt or other statement or memorandum of the
    32  price given to the retail customer.
    33    3.  The  commissioner  may  make,  adopt and amend rules, regulations,
    34  procedures and forms necessary for the  proper  administration  of  this
    35  article.
    36    4. Every registered organization that makes sales of medical [marihua-
    37  na]  cannabis  subject  to  the tax imposed by this article shall, on or
    38  before the twentieth date of each month, file with  the  commissioner  a
    39  return  on  forms  to  be  prescribed  by  the commissioner, showing its
    40  receipts from the retail sale of medical [marihuana] cannabis during the
    41  preceding calendar month and the amount of tax due thereon. Such returns
    42  shall contain such further information as the commissioner may  require.
    43  Every  registered  organization  required  to  file  a return under this
    44  section shall, at the time of filing such return, pay to the commission-
    45  er the total amount of tax due on its retail sales of medical  [marihua-
    46  na]  cannabis  for the period covered by such return. If a return is not
    47  filed when due, the tax shall be due on the day on which the  return  is
    48  required to be filed.
    49    5.  Whenever the commissioner shall determine that any moneys received
    50  under the provisions of this article were paid in error,  he  may  cause
    51  the  same  to  be refunded, with interest, in accordance with such rules
    52  and regulations as he may prescribe, except that no  interest  shall  be
    53  allowed  or  paid  if  the amount thereof would be less than one dollar.
    54  Such interest shall be at the overpayment rate set by  the  commissioner
    55  pursuant  to subdivision twenty-sixth of section one hundred seventy-one
    56  of this chapter, or if no rate is set, at the rate of  six  percent  per

        S. 1527--B                         92

     1  annum,  from  the  date when the tax, penalty or interest to be refunded
     2  was paid to a date preceding the date of the refund check  by  not  more
     3  than  thirty  days.  Provided,  however,  that  for the purposes of this
     4  subdivision, any tax paid before the last day prescribed for its payment
     5  shall be deemed to have been paid on such last day. Such moneys received
     6  under the provisions of this article which the commissioner shall deter-
     7  mine  were paid in error, may be refunded out of funds in the custody of
     8  the comptroller to the credit of  such  taxes  provided  an  application
     9  therefor  is  filed with the commissioner within two years from the time
    10  the erroneous payment was made.
    11    6. The provisions of article twenty-seven of this chapter shall  apply
    12  to  the tax imposed by this article in the same manner and with the same
    13  force and effect as if the language of such article  had  been  incorpo-
    14  rated  in  full  into this section and had expressly referred to the tax
    15  imposed by this article, except to the extent that any provision of such
    16  article is either inconsistent with a provision of this  article  or  is
    17  not relevant to this article.
    18    7.  All  taxes,  interest  and  penalties collected or received by the
    19  commissioner under this article  shall  be  deposited  and  disposed  of
    20  pursuant  to the provisions of section one hundred seventy-one-a of this
    21  chapter, provided that an amount equal to one hundred percent  collected
    22  under  this article less any amount determined by the commissioner to be
    23  reserved by the comptroller for refunds or reimbursements shall be  paid
    24  by  the  comptroller  to  the credit of the medical [marihuana] cannabis
    25  trust fund established by section eighty-nine-h  of  the  state  finance
    26  law.
    27    8. A registered organization that dispenses medical [marihuana] canna-
    28  bis  shall  provide  to  the department information on where the medical
    29  [marihuana] cannabis was dispensed and  where  the  medical  [marihuana]
    30  cannabis was manufactured. A registered organization that obtains [mari-
    31  huana]  cannabis  from another registered organization shall obtain from
    32  such registered organization information on where the medical  [marihua-
    33  na] cannabis was manufactured.
    34    §  38.  Section 491 of the tax law, as added by chapter 90 of the laws
    35  of 2014, subdivision 1 as amended by section 1 of part II of chapter  60
    36  of the laws of 2016, is amended to read as follows:
    37    § 491. Returns to be secret. 1. Except in accordance with proper judi-
    38  cial  order or as in this section or otherwise provided by law, it shall
    39  be unlawful for the commissioner, any officer or employee of the depart-
    40  ment, or any officer or person who, pursuant to this section, is permit-
    41  ted to inspect any return or report or to whom a copy, an abstract or  a
    42  portion of any return or report is furnished, or to whom any information
    43  contained in any return or report is furnished, or any person engaged or
    44  retained  by  such  department  on  an independent contract basis or any
    45  person who in any manner may acquire knowledge  of  the  contents  of  a
    46  return or report filed pursuant to this article to divulge or make known
    47  in  any  manner  the  contents  or any other information relating to the
    48  business of a distributor, owner or other person contained in any return
    49  or report required under this article. The  officers  charged  with  the
    50  custody  of such returns or reports shall not be required to produce any
    51  of them or evidence of anything contained  in  them  in  any  action  or
    52  proceeding  in  any  court,  except  on  behalf of the state, [the state
    53  department of health] office of cannabis management, or the commissioner
    54  in an action or proceeding under the provisions of this  chapter  or  on
    55  behalf  of the state or the commissioner in any other action or proceed-
    56  ing involving the collection of a tax due under this  chapter  to  which

        S. 1527--B                         93

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

        S. 1527--B                         94

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

    25                                ARTICLE 20-C
    26                     TAX ON ADULT-USE CANNABIS PRODUCTS
    27  Section 492. Definitions.
    28          493. Tax on cannabis.
    29          494. Registration and renewal.
    30          495. Returns and payment of tax.
    31          496. Returns to be kept secret.
    32    §  492. Definitions. For purposes of this article, the following defi-
    33  nitions shall apply:
    34    (a) "Cannabis" means all parts of  a  plant  of  the  genus  cannabis,
    35  whether  growing or not; the seeds thereof; the resin extracted from any
    36  part of the plant; and every compound,  manufacture,  salt,  derivative,
    37  mixture,  or  preparation of the plant, its seeds or resin. For purposes
    38  of this article, cannabis does not  include  medical  cannabis  or  hemp
    39  extract as defined in section three of the cannabis law.
    40    (b)  "Cannabis flower" means the flower of a plant of the genus canna-
    41  bis that has been harvested, dried, and cured, and prior to any process-
    42  ing whereby the  plant  material  is  transformed  into  a  concentrate,
    43  including,  but  not  limited to, concentrated cannabis, or an edible or
    44  topical product containing cannabis or concentrated cannabis  and  other
    45  ingredients. Cannabis flower excludes leaves and stem.
    46    (c)  "Cannabis  trim" means all parts of a plant of the genus cannabis
    47  other than cannabis flowers that have been harvested, dried, and  cured,
    48  and  prior  to  any processing whereby the plant material is transformed
    49  into a concentrate, including, but not limited to,  concentrated  canna-
    50  bis,  or  an  edible  or  topical  product containing cannabis and other
    51  ingredients.
    52    (d) "Cannabis product" or "adult use cannabis" means a cannabis  prod-
    53  uct  as  defined  in  section three of the cannabis law. For purposes of
    54  this article, under no circumstances shall  adult-use  cannabis  product

        S. 1527--B                         95

     1  include  medical cannabis or hemp extract as defined in section three of
     2  the cannabis law.
     3    (e)  "Person"  means  every individual, partnership, limited liability
     4  company, society, association, joint stock company, corporation, estate,
     5  receiver, trustee, assignee, referee, and any other person acting  in  a
     6  fiduciary  or  representative  capacity, whether appointed by a court or
     7  otherwise, and any combination of the foregoing.
     8    (f) "Wholesaler" means any person that sells  or  transfers  adult-use
     9  cannabis  products  to  a retail dispensary licensed pursuant to section
    10  seventy-two of the cannabis law. Where the cultivator  or  processor  is
    11  also  the  retail  dispensary, the retail dispensary shall be the whole-
    12  saler for purposes of this article.
    13    (g) "Cultivation" has the same meaning as described in subdivision two
    14  of section sixty-eight of the cannabis law.
    15    (h) "Retail dispensary" means a dispensary licensed to sell  adult-use
    16  cannabis products pursuant to section seventy-two of the cannabis law.
    17    (i)  "Transfer"  means  to  grant,  convey,  hand  over, assign, sell,
    18  exchange or barter, in any manner or  by  any  means,  with  or  without
    19  consideration.
    20    (j)  "Sale"  means any transfer of title, possession or both, exchange
    21  or barter, rental, lease or license to use or  consume,  conditional  or
    22  otherwise,  in any manner or by any means whatsoever for a consideration
    23  or any agreement therefor.
    24    (k) "Processor" has the same meaning as described in  subdivision  two
    25  of section sixty-nine of the cannabis law.
    26    §  493. Tax on cannabis. (a) There is hereby imposed and shall be paid
    27  a tax on the cultivation of cannabis flower and  cannabis  trim  at  the
    28  rate  of  one  dollar per dry-weight gram of cannabis flower and twenty-
    29  five cents per dry-weight gram of cannabis trim. Where the wholesaler is
    30  not the cultivator, such tax shall be collected from the  cultivator  by
    31  the  wholesaler  at  the  time such flower or trim is transferred to the
    32  wholesaler. Where the wholesaler is the cultivator, such  tax  shall  be
    33  paid  by the wholesaler and shall accrue at the time of sale or transfer
    34  to a retail dispensary.  Where the cultivator is also the retail dispen-
    35  sary, such tax shall accrue at the  time  of  the  sale  to  the  retail
    36  customer.
    37    (b) In addition to the tax imposed by subdivision (a) of this section,
    38  there is hereby imposed a tax on the sale or transfer by a wholesaler to
    39  a  retail  dispensary of adult-use cannabis products, to be paid by such
    40  wholesaler. Where the wholesaler is not the retail dispensary, such  tax
    41  shall be at the rate of eighteen percent of the invoice price charged by
    42  the  wholesaler  to a retail dispensary, and shall accrue at the time of
    43  such sale. Where the wholesaler is the retail dispensary, such tax shall
    44  be at the rate of eighteen percent of the price charged  to  the  retail
    45  customer and shall accrue at the time of such sale.
    46    (c)  In  addition  to the taxes imposed by subdivisions (a) and (b) of
    47  this section, there is hereby imposed a tax on the sale or transfer by a
    48  wholesaler to a retail dispensary of  adult-use  cannabis  products,  in
    49  trust for and on account of the county in which the retail dispensary is
    50  located.  Such  tax  shall be paid by the wholesaler and shall accrue at
    51  the time of such sale.  Where the wholesaler is not the  retail  dispen-
    52  sary, such tax shall be at the rate of four percent of the invoice price
    53  charged  by  the wholesaler to a retail dispensary. Where the wholesaler
    54  is the retail dispensary, such tax shall be at the rate of four  percent
    55  of the price charged to the retail customer.

        S. 1527--B                         96

     1    (d)  Notwithstanding  any  other provision of law to the contrary, the
     2  taxes imposed by article twenty of this chapter shall not apply  to  any
     3  product subject to tax under this article.
     4    §  494.  Registration and renewal. (a) Every wholesaler must file with
     5  the commissioner a properly completed application for a  certificate  of
     6  registration  before  engaging  in  business. In order to apply for such
     7  certificate of registration, such person must first be in possession  of
     8  a  valid  license from the office of cannabis management. An application
     9  for a certificate of registration must be submitted electronically, on a
    10  form prescribed by the commissioner, and must be accompanied by  a  non-
    11  refundable  application  fee  of  six  hundred dollars. A certificate of
    12  registration shall not  be  assignable  or  transferable  and  shall  be
    13  destroyed  immediately upon such person ceasing to do business as speci-
    14  fied in such certificate, or in  the  event  that  such  business  never
    15  commenced.
    16    (b)  The commissioner shall refuse to issue a certificate of registra-
    17  tion to any applicant and shall revoke the certificate  of  registration
    18  of  any such person who does not possess a valid license from the office
    19  of cannabis management. The commissioner may refuse to issue  a  certif-
    20  icate  of  registration to any applicant where such applicant: (1) has a
    21  past-due liability as that term is defined in section one hundred seven-
    22  ty-one-v of this chapter; (2) has  had  a  certificate  of  registration
    23  under this article, a license from the office of cannabis management, or
    24  any  license or registration provided for in this chapter revoked within
    25  one year from the date on which such application was filed; (3) has been
    26  convicted of a crime provided for in this chapter within one  year  from
    27  the  date on which such application was filed of the certificate's issu-
    28  ance; (4) willfully fails to file a report or return  required  by  this
    29  article;  (5) willfully files, causes to be filed, gives or causes to be
    30  given a report, return, certificate or affidavit required by this  arti-
    31  cle  which  is  false;  or  (6) willfully fails to collect or truthfully
    32  account for or pay over any tax imposed by this article.
    33    (c) A certificate of registration shall be valid for the period speci-
    34  fied thereon, unless earlier suspended or revoked. Upon  the  expiration
    35  of  the  term  stated on a certificate of registration, such certificate
    36  shall be null and void.
    37    (d) Every holder of a certificate  of  registration  must  notify  the
    38  commissioner  of changes to any of the information stated on the certif-
    39  icate, or of changes to any information contained in the application for
    40  the certificate of registration. Such notification must be  made  on  or
    41  before  the  last  day of the month in which a change occurs and must be
    42  made electronically on a form prescribed by the commissioner.
    43    (e) Every holder of a certificate of registration under  this  article
    44  shall  be  required  to  reapply prior to such certificate's expiration,
    45  during a reapplication period  established  by  the  commissioner.  Such
    46  reapplication  period  shall  not  occur  more frequently than every two
    47  years. Such reapplication shall be subject to the same requirements  and
    48  conditions,  including  grounds  for refusal, as an initial application,
    49  including the payment of the application fee.
    50    (f) Penalties. A person to whom adult-use cannabis products have  been
    51  transferred  or  who  sells  adult-use cannabis products without a valid
    52  certificate of registration pursuant to subdivision (a) of this  section
    53  shall  be subject to a penalty of five hundred dollars for each month or
    54  part thereof during which such person  continues  to  possess  adult-use
    55  cannabis products that have been transferred to such person or who sells
    56  such  products  after the expiration of the first month after which such

        S. 1527--B                         97

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

        S. 1527--B                         98

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

        S. 1527--B                         99

     1  cer's authorized representative an abstract of any such return or supply
     2  such  officer  or  representative  with  information  concerning an item
     3  contained in any such return, or disclosed by any investigation  of  tax
     4  liability under this article.
     5    (b)  The commissioner, in his or her discretion, may permit the appro-
     6  priate officers of any other state that regulates or taxes  cannabis  or
     7  the  duly authorized representatives of such commissioner or of any such
     8  officers, to inspect returns or reports made pursuant to  this  article,
     9  or  may furnish to the commissioner or other officer, or duly authorized
    10  representatives, a copy of any such return or report or an  abstract  of
    11  the information therein contained, or any portion thereof, or may supply
    12  such  commissioner  or  any  such  officers or such representatives with
    13  information relating to the business of a wholesaler making  returns  or
    14  reports hereunder solely for purposes of tax administration. The commis-
    15  sioner  may refuse to supply information pursuant to this subdivision to
    16  the officers of any other state if the statutes of the state represented
    17  by such officers do not grant substantially similar  privileges  to  the
    18  commissioner, but such refusal shall not be mandatory. Information shall
    19  not  be supplied to the appropriate officers of any state that regulates
    20  or taxes cannabis,  or  the  duly  authorized  representatives  of  such
    21  commissioner or of any such officers, unless such commissioner, officer,
    22  or other representatives shall agree not to divulge or make known in any
    23  manner  the information so supplied, but such officers may transmit such
    24  information to their employees or legal representatives when  necessary,
    25  who  in  turn  shall be subject to the same restrictions as those hereby
    26  imposed upon such commissioner, officer or other representatives.
    27    (c) 1. Any officer or employee of the state who willfully violates the
    28  provisions of subdivision (a) or (b) of this section shall be  dismissed
    29  from  office  and be incapable of holding any public office in the state
    30  for a period of five years thereafter.
    31    2. For criminal penalties, see article thirty-seven of this chapter.
    32    § 40. Subdivision (a) of section 1115 of the tax  law  is  amended  by
    33  adding a new paragraph 3-b to read as follows:
    34    (3-b)  Adult-use  cannabis  products as defined by article twenty-C of
    35  this chapter.
    36    § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
    37  health law, the tax law, the state finance  law,  the  general  business
    38  law,  the  penal  law and the criminal procedure law relating to medical
    39  use of marihuana, is amended to read as follows:
    40    § 12. This act shall take effect immediately [and]; provided,  however
    41  that sections one, three, five, six, seven-a, eight, nine, ten and elev-
    42  en  of  this  act  shall expire and be deemed repealed seven years after
    43  such date; provided that the amendments to section 171-a of the tax  law
    44  made by section seven of this act shall take effect on the same date and
    45  in  the same manner as section 54 of part A of chapter 59 of the laws of
    46  2014 takes effect and shall not  expire  and  be  deemed  repealed;  and
    47  provided,  further,  that  the  amendments  to  subdivision 5 of section
    48  410.91 of the criminal procedure law made by section eleven of this  act
    49  shall  not  affect  the  expiration and repeal of such section and shall
    50  expire and be deemed repealed therewith.
    51    § 42. The office of cannabis  management,  in  consultation  with  the
    52  division  of  the  budget,  the  department of taxation and finance, the
    53  department of health, office of alcoholism and substance abuse services,
    54  office of mental health, New York state police and the division of crim-
    55  inal justice services, shall conduct a   study of the  effectiveness  of
    56  this  act.  Such  study shall examine all aspects of this act, including

        S. 1527--B                         100

     1  economic and fiscal impacts, the impact on the public health and  safety
     2  of  New York residents and the progress made in achieving social justice
     3  goals and toward eliminating the illegal market for cannabis products in
     4  New  York. The office shall make recommendations regarding the appropri-
     5  ate level of taxation of adult-use cannabis, as well as changes, if any,
     6  necessary to improve and protect the public health  and  safety  of  New
     7  Yorkers.  Such  study  shall  be conducted two years after the effective
     8  date of this act and shall be presented to the  governor,  the  majority
     9  leader  of  the  senate  and  the speaker of the assembly, no later than
    10  October 1, 2022.
    11    § 43. Section 102 of the alcoholic beverage control law is amended  by
    12  adding a new subdivision 8 to read as follows:
    13    8. No alcoholic beverage retail licensee shall sell cannabis, nor have
    14  or  possess  a  license or permit to sell cannabis, on the same premises
    15  where alcoholic beverages are sold.
    16    § 44. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
    17  general  obligations  law,  as added by chapter 406 of the laws of 2000,
    18  are amended to read as follows:
    19    1. "Illegal drug" means any controlled substance  [or  marijuana]  the
    20  possession  of  which  is  an offense under the public health law or the
    21  penal law.
    22    4. "Grade one violation" means  possession  of  one-quarter  ounce  or
    23  more,  but less than four ounces, or distribution of less than one ounce
    24  of an illegal drug [other than marijuana, or possession of one pound  or
    25  twenty-five  plants  or more, but less than four pounds or fifty plants,
    26  or distribution of less than one pound of marijuana].
    27    5. "Grade two violation" means possession of four ounces or more,  but
    28  less  than  eight ounces, or distribution of one ounce or more, but less
    29  than two ounces, of an illegal drug [other than marijuana, or possession
    30  of four pounds or more or fifty plants or distribution of more than  one
    31  pound but less than ten pounds of marijuana].
    32    6.  "Grade  three violation" means possession of eight ounces or more,
    33  but less than sixteen ounces, or distribution of two ounces or more, but
    34  less than four ounces, of a specified illegal  drug  [or  possession  of
    35  eight  pounds  or  more  or  seventy-five  plants or more, but less than
    36  sixteen pounds or one hundred plants, or distribution of more than  five
    37  pounds but less than ten pounds of marijuana].
    38    7.  "Grade  four violation" means possession of sixteen ounces or more
    39  or distribution of four ounces or more of a specified illegal  drug  [or
    40  possession  of  sixteen  pounds or more or one hundred plants or more or
    41  distribution of ten pounds or more of marijuana].
    42    13. "Drug trafficker" means a person convicted of a class A or class B
    43  felony controlled substance [or marijuana offense]  who,  in  connection
    44  with  the  criminal  conduct  for  which  he  or  she  stands convicted,
    45  possessed, distributed, sold or conspired to sell a controlled substance
    46  [or marijuana] which, by virtue of its quantity, the person's  prominent
    47  role  in the enterprise responsible for the sale or distribution of such
    48  controlled substance and other circumstances related  to  such  criminal
    49  conduct  indicate  that  such  person's  criminal  possession,  sale  or
    50  conspiracy to sell such substance was not an isolated occurrence and was
    51  part of an ongoing pattern of criminal activity from which  such  person
    52  derived  substantial income or resources and in which such person played
    53  a leadership role.
    54    § 45. Paragraph (g) of subdivision 1 of  section  488  of  the  social
    55  services law, as added by section 1 of part B of chapter 501 of the laws
    56  of 2012, is amended to read as follows:

        S. 1527--B                         101

     1    (g)  "Unlawful use or administration of a controlled substance," which
     2  shall mean any administration by a custodian to a service recipient  of:
     3  a  controlled substance as defined by article thirty-three of the public
     4  health law, without a prescription; or other medication not approved for
     5  any  use  by  the  federal  food and drug administration, except for the
     6  administration of  medical  cannabis  when  such  administration  is  in
     7  accordance  with  article  three of the cannabis law and any regulations
     8  promulgated thereunder as well as the rules, regulations,  policies,  or
     9  procedures  of  the  state  oversight  agency or agencies governing such
    10  custodians. It also  shall  include  a  custodian  unlawfully  using  or
    11  distributing  a  controlled substance as defined by article thirty-three
    12  of the public health law, at the workplace or while on duty.
    13    § 46. Paragraphs (e) and (f) of subdivision 1 of section  490  of  the
    14  social  services  law, as added by section 1 of part B of chapter 501 of
    15  the laws of 2012, are amended and a new paragraph (g) is added  to  read
    16  as follows:
    17    (e)  information  regarding  individual reportable incidents, incident
    18  patterns and trends, and  patterns  and  trends  in  the  reporting  and
    19  response  to  reportable incidents is shared, consistent with applicable
    20  law, with the justice center, in the form and  manner  required  by  the
    21  justice  center  and,  for  facilities or provider agencies that are not
    22  state operated, with the applicable state oversight agency  which  shall
    23  provide such information to the justice center; [and]
    24    (f)  incident  review  committees  are established; provided, however,
    25  that the regulations may authorize an exemption from  this  requirement,
    26  when  appropriate,  based on the size of the facility or provider agency
    27  or other relevant factors. Such committees shall be composed of  members
    28  of  the  governing  body  of  the  facility or provider agency and other
    29  persons identified by the director of the facility or  provider  agency,
    30  including  some members of the following: direct support staff, licensed
    31  health care practitioners, service  recipients  and  representatives  of
    32  family,  consumer and other advocacy organizations, but not the director
    33  of the facility or provider agency. Such committee shall meet  regularly
    34  to:  (i)  review the timeliness, thoroughness and appropriateness of the
    35  facility or provider agency's responses to  reportable  incidents;  (ii)
    36  recommend  additional  opportunities  for improvement to the director of
    37  the facility or provider agency, if appropriate; (iii)  review  incident
    38  trends  and  patterns  concerning  reportable  incidents;  and (iv) make
    39  recommendations to the director of the facility or  provider  agency  to
    40  assist  in reducing reportable incidents. Members of the committee shall
    41  be trained in confidentiality laws and  regulations,  and  shall  comply
    42  with section seventy-four of the public officers law[.]; and
    43    (g)  safe  storage,  administration, and diversion prevention policies
    44  regarding controlled substances and medical cannabis.
    45    § 47. Subdivision 1 of section 505 of the agriculture and markets law,
    46  as added by chapter 524 of the laws of  2014,  is  amended  to  read  as
    47  follows:
    48    1.  "Industrial  hemp" means the plant Cannabis sativa L. and any part
    49  of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
    50  extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,
    51  whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
    52  tration of not more than 0.3 percent on a dry weight basis.
    53    §  48.  Section  506 of the agriculture and markets law, as amended by
    54  section 1 of part OO of chapter 58 of the laws of 2017,  is  amended  to
    55  read as follows:

        S. 1527--B                         102

     1    §  506.  Growth,  sale, distribution, transportation and processing of
     2  industrial  hemp  and  products  derived  from  such   hemp   permitted.
     3  [Notwithstanding  any  provision  of law to the contrary, industrial] 1.
     4  Industrial hemp and products derived from  such  hemp  are  agricultural
     5  products  which  may  be grown, produced [and], possessed [in the state,
     6  and], sold, distributed, transported [or] and/or processed  [either]  in
     7  [or  out  of]  state [as part of agricultural pilot programs pursuant to
     8  authorization under federal law  and  the  provisions  of  this  article
     9  pursuant  to  authorization  under  federal law and/or the provisions of
    10  this article.
    11    [Notwithstanding any provision of law to the contrary restricting  the
    12  growing or cultivating, sale, distribution, transportation or processing
    13  of  industrial  hemp and products derived from such hemp, and subject to
    14  authorization under federal law, the]
    15    2. The commissioner may authorize the growing or cultivating of indus-
    16  trial hemp as part of  agricultural  pilot  programs  conducted  by  the
    17  department and/or an institution of higher education to study the growth
    18  and  cultivation,  sale,  distribution, transportation and processing of
    19  such hemp and products derived from such hemp provided  that  the  sites
    20  and  programs used for growing or cultivating industrial hemp are certi-
    21  fied by, and registered with, the department.
    22    3. The industrial hemp used for  research  pursuant  to  this  section
    23  shall  be sourced from authorized New York state industrial hemp produc-
    24  ers. The research partner may obtain an  exemption  for  only  grain  or
    25  fiber  from  this requirement upon a satisfactory showing to the depart-
    26  ment that a suitable variety of industrial hemp for the research project
    27  is not grown in New York and/or the use of New York sourced hemp is  not
    28  practicable for the project.  Hemp for extracts can only be sourced from
    29  authorized New York state industrial hemp producers.
    30    4. Nothing in this section shall limit the jurisdiction of the depart-
    31  ment under any other article of this chapter.
    32    § 49. Section 507 of the agriculture and markets law is REPEALED and a
    33  new section 507 is added to read as follows:
    34    §  507.  Licensing;  fees.  1. No person shall grow, process, produce,
    35  distribute and/or sell industrial hemp or products derived  from  indus-
    36  trial  hemp  in  the state unless (a) licensed biennially by the commis-
    37  sioner or (b) authorized by the commissioner as part of an  agricultural
    38  research pilot program established under this article.
    39    2.  Application  for  a  license to grow industrial hemp shall be made
    40  upon a form prescribed by the commissioner, accompanied  by  a  per-acre
    41  license  fee  and  a  non-refundable  application  fee  of  five hundred
    42  dollars.
    43    3. The applicant shall furnish evidence of his or her good  character,
    44  experience  and  competency, that the applicant has adequate facilities,
    45  equipment, process controls, testing capability  and  security  to  grow
    46  hemp.
    47    4.  Growers  who  intend  to  cultivate hemp for cannabinoids shall be
    48  required to obtain licensure from the  department  pursuant  to  article
    49  twenty-nine-A of this chapter.
    50    5.  A  renewal  application  shall be submitted to the commissioner at
    51  least sixty days prior to the commencement of the next license period.
    52    § 50. Section 508 of the agriculture and markets law is REPEALED and a
    53  new section 508 is added to read as follows:
    54    § 508. Compliance action plan. If the commissioner  determines,  after
    55  notice  and  an opportunity for hearing, that a licensee has negligently
    56  violated a provision of and/or a regulation promulgated pursuant to this

        S. 1527--B                         103

     1  article, that licensee shall be required to  comply  with  a  corrective
     2  action  plan established by the commissioner to correct the violation by
     3  a reasonable date and to periodically report to  the  commissioner  with
     4  respect  to  the licensee's compliance with this article for a period of
     5  no less than the next two calendar years following the commencement date
     6  of the compliance action plan. The provisions of this section shall  not
     7  be  applicable to research partners conducting hemp research pursuant to
     8  a research partner agreement, the terms of which shall control.
     9    § 51. Section 509 of the agriculture and markets law is REPEALED and a
    10  new section 509 is added to read as follows:
    11    § 509. Granting, suspending or revoking licenses.    The  commissioner
    12  may  decline to grant a new license, may decline to renew a license, may
    13  suspend or revoke a license already granted after due notice and  oppor-
    14  tunity for hearing whenever he or she finds that:
    15    1.  any  statement  contained  in  an  application for an applicant or
    16  licensee is or was false or misleading;
    17    2. the applicant  or  licensee  does  not  have  good  character,  the
    18  required  experience  and/or competency, adequate facilities, equipment,
    19  process controls, testing capability and/or security to produce hemp  or
    20  products derived from hemp;
    21    3.  the  applicant  or  licensee  has failed or refused to produce any
    22  records or provide any information demanded by the commissioner  reason-
    23  ably related to the administration and enforcement of this article; or
    24    4. the applicant or licensee, or any officer, director, partner, hold-
    25  er  of  ten  percent of the voting stock, or any other person exercising
    26  any position of management or control has failed to comply with  any  of
    27  the  provisions  of  this  article  or rules and regulations promulgated
    28  pursuant thereto.
    29    § 52. Section 510 of the agriculture and markets law is REPEALED and a
    30  new section 510 is added to read as follows:
    31    § 510. Regulations.  The commissioner may develop regulations consist-
    32  ent with the provisions of this article for the growing and cultivation,
    33  sale, distribution, and transportation of industrial hemp grown  in  the
    34  state, including:
    35    1.  the  authorization  or licensing of any person who may: acquire or
    36  possess industrial hemp plants or seeds; grow  or  cultivate  industrial
    37  hemp plants; and/or sell, purchase, distribute, or transport such indus-
    38  trial hemp plants, plant parts, or seeds;
    39    2. maintaining relevant information regarding land on which industrial
    40  hemp  is  produced  within the state, including the legal description of
    41  the land, for a period of not less than three calendar years;
    42    3. the procedure for testing of industrial hemp produced in the  state
    43  for  delta-9-tetrahydrocannabinol levels, using a representative non-de-
    44  carboxylated sample of flowers and leaves from the whole plant or  other
    45  similarly reliable methods;
    46    4.  the  procedure for effective disposal of industrial hemp plants or
    47  products derived from hemp that are produced in violation of this  arti-
    48  cle;
    49    5.  a  procedure for conducting at least a random sample of industrial
    50  hemp producers to verify that hemp is not produced in violation of  this
    51  article;
    52    6. any required security measures; and
    53    7.  such other and further regulation as the commissioner deems appro-
    54  priate or necessary.
    55    § 53. Section 511 of the agriculture and markets law is REPEALED and a
    56  new section 511 is added to read as follows:

        S. 1527--B                         104

     1    § 511. Prohibitions.  Except as authorized by  state  law,  and  regu-
     2  lations  promulgated  thereunder,  the  growth, cultivation, processing,
     3  sale, and/or distribution of industrial hemp is prohibited.
     4    § 54. Section 512 of the agriculture and markets law is REPEALED and a
     5  new section 512 is added to read as follows:
     6    §  512.  Industrial  hemp  data collection and best farming practices.
     7  The commissioner shall have the power to collect and  publish  data  and
     8  research  concerning,  among  other  things,  the  growth,  cultivation,
     9  production and  processing  methods  of  industrial  hemp  and  products
    10  derived from industrial hemp and work with the New York state college of
    11  agriculture  and life science at Cornell pursuant to section fifty-seven
    12  hundred twelve of the education law and the Cornell  cooperative  exten-
    13  sion  pursuant  to  section two hundred twenty-four of the county law to
    14  promote best farming practices for industrial hemp which are  compatible
    15  with state water quality and other environmental objectives.
    16    §  55.  Sections  513  and  514 of the agriculture and markets law are
    17  REPEALED and two new sections 513 and 514 are added to read as follows:
    18    § 513. Access to criminal history information through the division  of
    19  criminal  justice  services.    In connection with the administration of
    20  this article, the commissioner is authorized  to  request,  receive  and
    21  review  criminal  history  information  through the division of criminal
    22  justice services (division) with respect to any person seeking a license
    23  or authorization to undertake a hemp pilot project. At  the  commission-
    24  er's request, each researcher, principal and/or officer of the applicant
    25  shall  submit to the department his or her fingerprints in such form and
    26  in such manner as specified by the division, for the purpose of conduct-
    27  ing a criminal history search and returning a report thereon in  accord-
    28  ance  with  the  procedures and requirements established by the division
    29  pursuant to the provisions of article thirty-five of the executive  law,
    30  which  shall  include  the payment of the prescribed processing fees for
    31  the cost of the division's full  search  and  retain  procedures  and  a
    32  national  criminal history record check. The commissioner, or his or her
    33  designee, shall submit such fingerprints and the processing fee  to  the
    34  division.   The division shall forward to the commissioner a report with
    35  respect to the applicant's previous  criminal  history,  if  any,  or  a
    36  statement  that the applicant has no previous criminal history according
    37  to its files. Fingerprints submitted to the division of criminal justice
    38  services pursuant to this section may also be submitted to  the  federal
    39  bureau of investigation for a national criminal history record check. If
    40  additional  copies  of  fingerprints  are  required, the applicant shall
    41  furnish them upon request.
    42    § 514. Aids to enforcement. 1. The commissioner shall have full access
    43  to all premises, buildings, factories,  farms,  vehicles,  cars,  boats,
    44  airplanes,  vessels,  containers,  packages, barrels, boxes, and/or cans
    45  for the purpose of enforcing the provisions of this article. The commis-
    46  sioner may, at such locations, examine industrial hemp and hemp products
    47  and may open any package and/or container reasonably believed to contain
    48  industrial hemp or hemp products, to determine whether  such  industrial
    49  hemp or hemp products follow applicable law or regulation.
    50    2.  A search warrant shall be issued by any court to which application
    51  is made therefor, whenever it shall be made to appear to such court that
    52  a licensee has: refused to permit any industrial hemp to be inspected or
    53  samples taken therefrom; refused to permit access to  any  premises,  or
    54  place  where  licensed  activities  are  conducted;  and/or  refused  or
    55  prevented access thereto by any inspector of  the  department  and  that
    56  such  inspector  has  reasonable grounds to believe that such person has

        S. 1527--B                         105

     1  any industrial hemp in his or  her  possession,  or  under  his  or  her
     2  control  and/or is in violation of the provisions or regulations of this
     3  article. In such a case, a warrant shall be issued in the  name  of  the
     4  people,  directed  to  a  police  officer, commanding him or her to: (a)
     5  search any place of business, factory, building, premises, or farm where
     6  licensed  activities  have  occurred  and  any  vehicle,  boat,  vessel,
     7  container,  package, barrel, box, tub or can, containing, or believed to
     8  contain industrial hemp in the possession or under the  control  of  any
     9  person  who  shall refuse to allow access to such hemp for inspection or
    10  sampling, (b) permit the inspection and sampling of any industrial  hemp
    11  found  in  the execution of the warrant, as the officer applying for the
    12  search warrant shall designate when the same is found, by  an  inspector
    13  or a department official authorized by the commissioner or by this chap-
    14  ter,  and/or  (c)  permit access to any place where access is refused or
    15  prevented, and to allow and  enable  a  department  inspector  or  other
    16  department  official  to  conduct  an  inspection  of  the  place.   The
    17  provisions of article six hundred ninety of the criminal  procedure  law
    18  shall apply to such warrant as far as applicable thereto. The officer to
    19  whom  the  warrant is delivered shall make a return in writing of his or
    20  her proceedings thereunto to the court which issued the same.
    21    3. The commissioner may quarantine industrial hemp when he or she  has
    22  reason to believe that such commodity does not meet the definition ther-
    23  eof,  set  forth in subdivision one of section five hundred five of this
    24  article, or is otherwise in violation of or does not meet a standard set
    25  forth in, applicable law or regulation. The quarantine may by the  issu-
    26  ance of an order directing the owner or custodian of industrial hemp not
    27  to  distribute,  dispose  of, or move that commodity without the written
    28  permission of the commissioner. The commissioner may also  quarantine  a
    29  product  by  placing a tag or other appropriate marking thereon or adja-
    30  cent thereto that provides and requires that such product  must  not  be
    31  distributed,  disposed  of,  or moved without his or her written permis-
    32  sion, or may quarantine a product by otherwise informing  the  owner  or
    33  custodian thereof that such condition must be complied with.
    34    4.  The  commissioner  may  seize  industrial  hemp by taking physical
    35  possession of industrial hemp when he or she has substantial evidence to
    36  believe that such commodity does not meet the  definition  thereof,  set
    37  forth  in  subdivision one of section five hundred five of this article,
    38  or is otherwise in violation of, or does not meet a standard  set  forth
    39  in, applicable law or regulation.
    40    5.  Subsequent  to quarantining or seizing industrial hemp, as author-
    41  ized in subdivisions three and four of this  section,  the  commissioner
    42  shall  promptly give the owner or custodian thereof an opportunity to be
    43  heard to show cause why such  industrial  hemp  should  not  be  ordered
    44  destroyed. The commissioner shall, thereafter, consider all the relevant
    45  evidence and information presented and shall make a determination wheth-
    46  er such industrial hemp should be ordered to be destroyed; that determi-
    47  nation  may  be reviewed as provided for in article seventy-eight of the
    48  civil practice law and rules.
    49    § 56. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the  penal
    50  law,  as added by chapter 90 of the laws of 2014, are amended to read as
    51  follows:
    52  § 179.00 Criminal  diversion  of  medical  [marihuana]  cannabis;  defi-
    53             nitions.
    54    The following definitions are applicable to this article:

        S. 1527--B                         106

     1    1.  "Medical  [marihuana] cannabis" means medical [marihuana] cannabis
     2  as defined in [subdivision eight of section thirty-three  hundred  sixty
     3  of the public health law] section three of the cannabis law.
     4    2.  "Certification" means a certification, made under section [thirty-
     5  three hundred sixty-one of the public health law] thirty of the cannabis
     6  law.
     7  § 179.05 Criminal diversion of  medical  [marihuana]  cannabis;  limita-
     8             tions.
     9    The provisions of this article shall not apply to:
    10    1.  a  practitioner  authorized  to issue a certification who acted in
    11  good faith in the lawful course of his or her profession; or
    12    2. a registered organization as that term is defined  in  [subdivision
    13  nine  of  section  thirty-three  hundred sixty of the public health law]
    14  section thirty-four of the cannabis law who acted in good faith  in  the
    15  lawful course of the practice of pharmacy; or
    16    3.  a  person  who acted in good faith seeking treatment for a medical
    17  condition or assisting another person to obtain treatment for a  medical
    18  condition.
    19  § 179.10 Criminal diversion of medical [marihuana] cannabis in the first
    20             degree.
    21    A person is guilty of criminal diversion of medical [marihuana] canna-
    22  bis  in  the first degree when he or she is a practitioner, as that term
    23  is defined in [subdivision twelve of section thirty-three hundred  sixty
    24  of  the public health law] section three of the cannabis law, who issues
    25  a certification with knowledge of reasonable grounds to  know  that  (i)
    26  the  recipient  has  no medical need for it, or (ii) it is for a purpose
    27  other than to treat a [serious] condition  as  defined  in  [subdivision
    28  seven  of  section  thirty-three hundred sixty of the public health law]
    29  section three of the cannabis law.
    30    Criminal diversion of medical [marihuana] cannabis in the first degree
    31  is a class E felony.
    32  § 179.11 Criminal diversion  of  medical  [marihuana]  cannabis  in  the
    33             second degree.
    34    A person is guilty of criminal diversion of medical [marihuana] canna-
    35  bis  in  the  second  degree  when he or she sells, trades, delivers, or
    36  otherwise provides medical [marihuana] cannabis to  another  with  know-
    37  ledge or reasonable grounds to know that the recipient is not registered
    38  under  [title  five-A  of article thirty-three of the public health law]
    39  article three of the cannabis law.
    40    Criminal diversion of  medical  [marihuana]  cannabis  in  the  second
    41  degree is a class B misdemeanor.
    42  § 179.15 Criminal retention of medical [marihuana] cannabis.
    43    A person is guilty of criminal retention of medical [marihuana] canna-
    44  bis  when,  being  a certified patient or designated caregiver, as those
    45  terms are defined in [subdivisions three and  five  of  section  thirty-
    46  three  hundred  sixty  of  the  public health law, respectively] section
    47  three of the cannabis law,  he  or  she  knowingly  obtains,  possesses,
    48  stores  or  maintains an amount of [marihuana] cannabis in excess of the
    49  amount he or she is authorized to possess under the provisions of [title
    50  five-A of article thirty-three of the public health law]  article  three
    51  of the cannabis law.
    52    Criminal retention of medical [marihuana] cannabis is a class A misde-
    53  meanor.
    54    §  57. Section 220.78 of the penal law, as added by chapter 154 of the
    55  laws of 2011, is amended to read as follows:
    56  § 220.78 Witness or victim of drug or alcohol overdose.

        S. 1527--B                         107

     1    1. A person who, in good faith, seeks health care for someone  who  is
     2  experiencing  a  drug  or  alcohol  overdose  or  other life threatening
     3  medical emergency shall not be charged or prosecuted  for  a  controlled
     4  substance offense under this article [two hundred twenty] or a [marihua-
     5  na]  cannabis  offense under article two hundred [twenty-one] twenty-two
     6  of this title, other than an offense involving sale for consideration or
     7  other benefit or gain, or charged or prosecuted for possession of  alco-
     8  hol by a person under age twenty-one years under section sixty-five-c of
     9  the  alcoholic beverage control law, or for possession of drug parapher-
    10  nalia under article  thirty-nine  of  the  general  business  law,  with
    11  respect  to  any  controlled substance, [marihuana] cannabis, alcohol or
    12  paraphernalia that was obtained as a result of such seeking or receiving
    13  of health care.
    14    2. A person who is experiencing a drug or alcohol  overdose  or  other
    15  life threatening medical emergency and, in good faith, seeks health care
    16  for  himself  or  herself or is the subject of such a good faith request
    17  for health care, shall not be charged or  prosecuted  for  a  controlled
    18  substance  offense  under this article or a [marihuana] cannabis offense
    19  under article two hundred [twenty-one] twenty-two of this  title,  other
    20  than  an  offense  involving  sale for consideration or other benefit or
    21  gain, or charged or prosecuted for possession of  alcohol  by  a  person
    22  under  age  twenty-one years under section sixty-five-c of the alcoholic
    23  beverage control law, or for  possession  of  drug  paraphernalia  under
    24  article  thirty-nine  of  the  general business law, with respect to any
    25  substance, [marihuana]  cannabis,  alcohol  or  paraphernalia  that  was
    26  obtained as a result of such seeking or receiving of health care.
    27    3. Definitions. As used in this section the following terms shall have
    28  the following meanings:
    29    (a)  "Drug or alcohol overdose" or "overdose" means an acute condition
    30  including, but not limited to, physical illness, coma,  mania,  hysteria
    31  or  death,  which  is  the  result of consumption or use of a controlled
    32  substance or alcohol and relates to an adverse reaction to or the  quan-
    33  tity  of  the  controlled substance or alcohol or a substance with which
    34  the controlled substance  or  alcohol  was  combined;  provided  that  a
    35  patient's  condition shall be deemed to be a drug or alcohol overdose if
    36  a prudent layperson, possessing an average  knowledge  of  medicine  and
    37  health, could reasonably believe that the condition is in fact a drug or
    38  alcohol overdose and (except as to death) requires health care.
    39    (b) "Health care" means the professional services provided to a person
    40  experiencing  a  drug  or alcohol overdose by a health care professional
    41  licensed, registered or certified under title eight of the education law
    42  or article thirty of the public health law who, acting within his or her
    43  lawful scope of practice, may provide diagnosis, treatment or  emergency
    44  services for a person experiencing a drug or alcohol overdose.
    45    4.  It  shall  be an affirmative defense to a criminal sale controlled
    46  substance offense under this article or a criminal sale  of  [marihuana]
    47  cannabis  offense  under  article two hundred [twenty-one] twenty-two of
    48  this title, not covered by subdivision one or two of this section,  with
    49  respect  to  any  controlled substance or [marihuana] cannabis which was
    50  obtained as a result of such seeking or receiving of health care, that:
    51    (a) the defendant, in good faith, seeks health care for someone or for
    52  him or herself who is experiencing a drug or alcohol overdose  or  other
    53  life threatening medical emergency; and
    54    (b)  the  defendant  has  no  prior  conviction  for the commission or
    55  attempted commission of a class A-I, A-II or B felony under  this  arti-
    56  cle.

        S. 1527--B                         108

     1    5. Nothing in this section shall be construed to bar the admissibility
     2  of  any evidence in connection with the investigation and prosecution of
     3  a crime with regard to another  defendant  who  does  not  independently
     4  qualify  for  the bar to prosecution or for the affirmative defense; nor
     5  with  regard  to other crimes committed by a person who otherwise quali-
     6  fies under this section; nor shall anything in this section be construed
     7  to bar any seizure pursuant to law, including but not limited to  pursu-
     8  ant  to  section  thirty-three hundred eighty-seven of the public health
     9  law.
    10    6. The bar to prosecution described in subdivisions  one  and  two  of
    11  this  section  shall  not apply to the prosecution of a class A-I felony
    12  under this article, and the affirmative defense described in subdivision
    13  four of this section shall not apply to the prosecution of a  class  A-I
    14  or A-II felony under this article.
    15    §  58. Subdivision 1 of section 260.20 of the penal law, as amended by
    16  chapter 362 of the laws of 1992, is amended as follows:
    17    1. He knowingly permits a child less than eighteen years old to  enter
    18  or  remain  in  or  upon a place, premises or establishment where sexual
    19  activity as defined by article one hundred thirty, two hundred thirty or
    20  two hundred sixty-three of this [chapter]  part  or  activity  involving
    21  controlled  substances  as defined by article two hundred twenty of this
    22  [chapter or involving marihuana as defined by article two hundred  twen-
    23  ty-one of this chapter] part is maintained or conducted, and he knows or
    24  has  reason to know that such activity is being maintained or conducted;
    25  or
    26    § 59. Section 89-h of the state finance law, as added by chapter 90 of
    27  the laws of 2014, is amended to read as follows:
    28    § 89-h. Medical [marihuana] cannabis trust fund. 1.  There  is  hereby
    29  established  in  the  joint  custody  of  the  state comptroller and the
    30  commissioner of taxation and finance a special fund to be known  as  the
    31  "medical [marihuana] cannabis trust fund."
    32    2.  The  medical  [marihuana] cannabis trust fund shall consist of all
    33  moneys required to be deposited  in  the  medical  [marihuana]  cannabis
    34  trust  fund pursuant to the provisions of section four hundred ninety of
    35  the tax law.
    36    3. The moneys in the medical [marihuana] cannabis trust fund shall  be
    37  kept  separate  and shall not be commingled with any other moneys in the
    38  custody of the commissioner of taxation and finance and the state  comp-
    39  troller.
    40    4.  The moneys of the medical [marihuana] cannabis trust fund, follow-
    41  ing appropriation by the legislature, shall be allocated upon a  certif-
    42  icate  of  approval  of  availability  by  the director of the budget as
    43  follows:  (a) Twenty-two and five-tenths percent of the monies shall  be
    44  transferred  to  the  counties  in  New  York state in which the medical
    45  [marihuana] cannabis was manufactured and allocated in proportion to the
    46  gross sales originating from medical [marihuana]  cannabis  manufactured
    47  in  each  such  county;  (b)  twenty-two  and five-tenths percent of the
    48  moneys shall be transferred to the counties in New York state  in  which
    49  the  medical [marihuana] cannabis was dispensed and allocated in propor-
    50  tion to the gross sales occurring in each such county; (c) five  percent
    51  of  the  monies  shall  be  transferred  to the office of alcoholism and
    52  substance abuse services, which shall use that  revenue  for  additional
    53  drug  abuse  prevention, counseling and treatment services; and (d) five
    54  percent of the revenue received by the department shall  be  transferred
    55  to  the  division  of  criminal  justice  services, which shall use that
    56  revenue for a program of discretionary grants to  state  and  local  law

        S. 1527--B                         109

     1  enforcement  agencies  that demonstrate a need relating to [title five-A
     2  of article thirty-three of the public health law] article three  of  the
     3  cannabis law; said grants could be used for personnel costs of state and
     4  local  law  enforcement  agencies. For purposes of this subdivision, the
     5  city of New York shall be deemed to be a county.
     6    § 60. The state finance law is amended by adding  three  new  sections
     7  99-hh, 99-ii and 99-jj to read as follows:
     8    §  99-hh.  New  York  state  cannabis revenue fund. 1. There is hereby
     9  established in the joint  custody  of  the  state  comptroller  and  the
    10  commissioner  of  taxation and finance a special fund to be known as the
    11  "New York state cannabis revenue fund".
    12    2. Such fund shall consist of all revenues received by the  department
    13  of  taxation  and  finance,  pursuant to the provisions of article eigh-
    14  teen-A of the tax law and all other moneys appropriated thereto from any
    15  other fund or source pursuant to law.  Nothing contained in this section
    16  shall prevent the state from receiving grants, gifts or bequests for the
    17  purposes of the fund as defined in this section and depositing them into
    18  the fund according to law.
    19    3. The moneys in  such  fund  shall  be  expended  for  the  following
    20  purposes:
    21    (a)  Reasonable  costs  incurred  by  the  department  of taxation and
    22  finance for administering and collecting the taxes imposed by this part;
    23  provided, however, such costs shall  not  exceed  four  percent  of  tax
    24  revenues received.
    25    (b) Reasonable costs incurred by the office of cannabis management for
    26  implementing,  administering, and enforcing the marihuana regulation and
    27  taxation act to the extent those costs are not  reimbursed  pursuant  to
    28  the  cannabis law. This paragraph shall remain operative through the two
    29  thousand twenty-four--two thousand twenty-five fiscal year.
    30    (c) Beginning with the two thousand twenty-one--two  thousand  twenty-
    31  two  fiscal  year  and  continuing  through the two thousand thirty--two
    32  thousand thirty-one  fiscal  year,  the  commissioner  of  taxation  and
    33  finance  shall  annually disburse the following sums for the purposes of
    34  data collection and reporting:
    35    (i) Seven hundred fifty thousand dollars to  the  office  of  cannabis
    36  management  policy  to track and report data related to the licensing of
    37  cannabis businesses, including the geographic location,  structure,  and
    38  function  of licensed cannabis businesses, and demographic data, includ-
    39  ing race, ethnicity, and gender,  of  license  holders.  The  office  of
    40  cannabis  management  shall publish reports on its findings annually and
    41  shall make the reports available to the public.
    42    (ii) Seven hundred fifty thousand dollars to the department of  crimi-
    43  nal  justice  services  to  track and report data related to any infrac-
    44  tions, violations, or criminal convictions that occur under any  of  the
    45  remaining  cannabis  statutes.    The  department  of  criminal  justice
    46  services shall publish reports on its findings annually and  shall  make
    47  the reports available to the public.
    48    (iii)  One  million  dollars  to  the  state university of New York to
    49  research and evaluate the implementation and  effect  of  the  marihuana
    50  regulation  and taxation act.  No more than four percent of these monies
    51  may be used for expenses related to administrative costs  of  conducting
    52  such  research,  and  to,  if  appropriate,  make recommendations to the
    53  legislature and governor regarding possible amendments to the  marihuana
    54  regulation and taxation act. The recipients of these funds shall publish
    55  reports on their findings at a minimum of every two years and shall make

        S. 1527--B                         110

     1  the  reports  available  to  the public. The research funded pursuant to
     2  this subdivision shall include but not necessarily be limited to:
     3    (A)  the  impact  on  public health, including health costs associated
     4  with cannabis use, as well as whether cannabis use is associated with an
     5  increase or decrease in use of alcohol or other drugs;
     6    (B) the impact of treatment for cannabis use disorder and  the  effec-
     7  tiveness of different treatment programs;
     8    (C)  public  safety issues related to cannabis use, including studying
     9  the effectiveness of the packaging and labeling requirements and  adver-
    10  tising  and  marketing  restrictions  contained in the act at preventing
    11  underage access to and use of cannabis and cannabis products, and study-
    12  ing the health-related effects among users of varying potency levels  of
    13  cannabis and cannabis products;
    14    (D)  cannabis  use  rates, maladaptive use rates for adults and youth,
    15  and diagnosis rates of cannabis-related substance use disorders;
    16    (E) cannabis market prices, illicit market prices, tax structures  and
    17  rates,  including  an  evaluation  of  how to best tax cannabis based on
    18  potency, and the structure and function of licensed cannabis businesses;
    19    (F) whether additional protections  are  needed  to  prevent  unlawful
    20  monopolies  or  anti-competitive behavior from occurring in the cannabis
    21  industry and, if so, recommendations as to the most  effective  measures
    22  for preventing such behavior;
    23    (G)  the economic impacts in the private and public sectors, including
    24  but not necessarily limited to, job creation, workplace  safety,  reven-
    25  ues,  taxes  generated for state and local budgets, and criminal justice
    26  impacts, including, but not  necessarily  limited  to,  impacts  on  law
    27  enforcement  and  public  resources, short and long term consequences of
    28  involvement in the criminal justice system, and state and local  govern-
    29  ment agency administrative costs and revenue;
    30    (H)  whether  the  regulatory  agencies  tasked  with implementing and
    31  enforcing the  marihuana  regulation  and  taxation  act  are  doing  so
    32  consistent  with the purposes of the act, and whether different agencies
    33  might do so more effectively; and
    34    (I) any environmental issues related to cannabis  production  and  the
    35  criminal prohibition of cannabis production.
    36    (d)  One  million  dollars annually, for a period of three years after
    37  the effective date of this section, to the state police  to  expand  and
    38  enhance  the  drug  recognition expert training program and technologies
    39  utilized in the process of maintaining road safety.
    40    (i) The state police, in  association  with  the  office  of  cannabis
    41  management,  are authorized to establish a pilot program for the testing
    42  and development of new technologies to detect drivers  who  are  driving
    43  under the influence of cannabis.
    44    (ii)  Pursuant  to  such pilot program, a law enforcement officer, who
    45  upon reasonable suspicion  and  belief,  identifies  an  individual  who
    46  appears  to  be  driving  under  the  influence  of a drug as defined by
    47  section one hundred fourteen-a of the vehicle and traffic law, may, with
    48  the knowing and intelligent permission of the driver, utilize developing
    49  technologies for the purpose of identifying said drug within the  system
    50  of the driver.
    51    (iii)  The  objection  to, compliance with, or results of the adminis-
    52  tration of said developing technologies may  not  be  used  against  any
    53  driver  for  the  purpose  of advancing a criminal action. Additionally,
    54  saliva, or other biological material obtained from the driver shall  not
    55  be admissible against the driver in any criminal proceeding, or retained
    56  for any reason.

        S. 1527--B                         111

     1    (iv) The driver shall be notified of the results of any administration
     2  of  said developing technologies and provided with documentation of said
     3  results.
     4    (v)  The  pilot  program established by subparagraph (i) of this para-
     5  graph shall be in effect for one year after the effective date  of  this
     6  section.
     7    4. After the dispersal of moneys pursuant to subdivision three of this
     8  section,  the  remaining  moneys  in the fund deposited during the prior
     9  fiscal year shall be disbursed into the state lottery fund and two addi-
    10  tional sub-funds created within the cannabis revenue fund known  as  the
    11  drug  treatment and public education fund and the community grants rein-
    12  vestment fund, as follows:
    13    (a) twenty-five percent shall be deposited in the state  lottery  fund
    14  established  by section ninety-two-c of this article; provided that such
    15  moneys shall be distributed to the department of education in accordance
    16  with subdivisions two and four of section ninety-two-c of  this  article
    17  and  shall not be utilized for the purposes of subdivision three of such
    18  section. Monies allocated by this article may  enhance,  but  shall  not
    19  supplant, existing dedicated funds to the department of education;
    20    (b)  twenty-five  percent shall be deposited in the drug treatment and
    21  public education fund established  by  section  ninety-nine-ii  of  this
    22  article; and
    23    (c) fifty percent shall be deposited in the community grants reinvest-
    24  ment fund established by section ninety-nine-jj of this article.
    25    5.  On or before the first day of February each year, the commissioner
    26  of taxation and finance shall provide a written report to the  temporary
    27  president  of  the  senate, speaker of the assembly, chair of the senate
    28  finance committee, chair of the assembly ways and means  committee,  the
    29  state  comptroller  and  the  public.  Such  report shall detail how the
    30  moneys of the fund were utilized during the preceding calendar year, and
    31  shall include:
    32    (a) the amount of money dispersed from the fund and the  process  used
    33  for such disbursements;
    34    (b) recipients of awards from the fund;
    35    (c) the amount awarded to each recipient of an award from the fund;
    36    (d) the purposes for which such awards were granted; and
    37    (e) a summary financial plan for such monies which shall include esti-
    38  mates of all receipts and all disbursements for the current and succeed-
    39  ing  fiscal  years,  along with the actual results from the prior fiscal
    40  year.
    41    6. Moneys shall be payable directly from the cannabis revenue fund  to
    42  the department of education.
    43    §  99-ii.  New York state drug treatment and public education fund. 1.
    44  There is hereby established in the joint  custody  of  the  state  comp-
    45  troller  and  the commissioner of taxation and finance a special fund to
    46  be known as the "New York state drug treatment public education fund".
    47    2. Such fund shall  consist  of  revenues  received  pursuant  to  the
    48  provisions  of  section  ninety-nine-hh  of  this  article and all other
    49  moneys appropriated thereto from any other fund or  source  pursuant  to
    50  law.  Nothing  contained  in  this  section shall prevent the state from
    51  receiving grants, gifts or bequests for the  purposes  of  the  fund  as
    52  defined  in  this section and depositing them into the fund according to
    53  law.
    54    3. The moneys in such fund shall be expended to  the  commissioner  of
    55  the  office of alcoholism and substance abuse and disbursed in consulta-
    56  tion with the commissioner of health for the following purposes:

        S. 1527--B                         112

     1    (a) To develop and implement a youth-focused public  health  education
     2  and prevention campaign, including school-based prevention, early inter-
     3  vention,  and  health  care  services and programs to reduce the risk of
     4  cannabis and other substance use by school-aged children;
     5    (b)  To  develop  and  implement  a  statewide  public health campaign
     6  focused on the health effects of cannabis and legal  use,  including  an
     7  ongoing  education  and  prevention  campaign  that educates the general
     8  public, including parents, consumers and retailers, on the legal use  of
     9  cannabis,  the  importance of preventing youth access, the importance of
    10  safe storage and preventing secondhand cannabis smoke exposure, informa-
    11  tion for pregnant or breastfeeding women,  and  the  overconsumption  of
    12  edibles;
    13    (c) To provide substance use disorder treatment programs for youth and
    14  adults,  with  an  emphasis  on  programs that are culturally and gender
    15  competent, trauma-informed, evidence-based and provide  a  continuum  of
    16  care  that  includes screening and assessment (substance use disorder as
    17  well as mental health), early  intervention,  active  treatment,  family
    18  involvement,  case management, overdose prevention, prevention of commu-
    19  nicable diseases  related  to  substance  use,  relapse  management  for
    20  substance  use and other co-occurring behavioral health disorders, voca-
    21  tional services, literacy services, parenting  classes,  family  therapy
    22  and  counseling  services,  medication-assisted  treatments, psychiatric
    23  medication and psychotherapy; and
    24    (d) To evaluate the programs being funded to  determine  their  effec-
    25  tiveness.
    26    4.  On or before the first day of February each year, the commissioner
    27  of the office of alcoholism and substance abuse services shall provide a
    28  written report to the temporary president of the senate, speaker of  the
    29  assembly,  chair  of the senate finance committee, chair of the assembly
    30  ways and means committee, chair of the senate  committee  on  alcoholism
    31  and  drug abuse, chair of the assembly alcoholism and drug abuse commit-
    32  tee, the state comptroller and the public. Such report shall detail  how
    33  the moneys of the fund were utilized during the preceding calendar year,
    34  and shall include:
    35    (a)  the amount of money dispersed from the fund and the award process
    36  used for such disbursements;
    37    (b) recipients of awards from the fund;
    38    (c) the amount awarded to each recipient of an award from the fund;
    39    (d) the purposes for which such awards were granted; and
    40    (e) a summary financial plan for such monies which shall include esti-
    41  mates of all receipts and all disbursements for the current and succeed-
    42  ing fiscal years, along with the actual results from  the  prior  fiscal
    43  year.
    44    5.  Moneys  shall be payable from the fund on the audit and warrant of
    45  the comptroller on vouchers approved and certified by  the  commissioner
    46  of education.
    47    §  99-jj.  New York state community grants reinvestment fund. 1. There
    48  is hereby established in the joint custody of the state comptroller  and
    49  the  commissioner  of taxation and finance a special fund to be known as
    50  the "New York state community grants reinvestment fund".
    51    2. Such fund shall consist of all revenues received  pursuant  to  the
    52  provisions  of  section  ninety-nine-hh  of  this  article and all other
    53  moneys appropriated thereto from any other fund or  source  pursuant  to
    54  law.  Nothing  contained  in  this  section shall prevent the state from
    55  receiving grants, gifts or bequests for the  purposes  of  the  fund  as

        S. 1527--B                         113

     1  defined  in  this section and depositing them into the fund according to
     2  law.
     3    3.  The fund shall be governed and administered by an executive steer-
     4  ing committee of thirteen members, including a representative  from  the
     5  office  of  children  and family services, the labor department, and the
     6  health department appointed by the governor, and a representative of the
     7  education department appointed by the board of regents. In addition, the
     8  majority and minority leaders of the  senate  and  assembly  shall  each
     9  appoint  one member to the executive steering committee, the comptroller
    10  shall appoint three additional members, and the attorney  general  shall
    11  appoint  two  additional members from relevant local government entities
    12  and community-based organizations. Every effort shall be made to  ensure
    13  a balanced and diverse committee representing the regions and demograph-
    14  ics of the state, which shall have expertise in job placement, homeless-
    15  ness  and  housing,  behavioral health and substance use disorder treat-
    16  ment, and effective rehabilitative treatment for adults  and  juveniles,
    17  and  shall  include representatives of organizations serving communities
    18  impacted by past federal and state drug policies.
    19    4. The moneys in such fund shall be expended by the executive steering
    20  committee  to  qualified  community-based  nonprofit  organizations  and
    21  approved  local  government  entities  for the purpose of reinvesting in
    22  communities disproportionately affected by past federal and  state  drug
    23  policies.  The grants from this program shall be used, including but not
    24  limited to, to support job placement, job skills services, adult  educa-
    25  tion,  mental  health treatment, substance use disorder treatment, hous-
    26  ing, community banking, nutrition services, afterschool and  child  care
    27  services, system navigation services, legal services to address barriers
    28  to  reentry,  and  linkages to medical care, women's health services and
    29  other community-based supportive services.  The grants from this program
    30  may also be used to further  support  the  social  and  economic  equity
    31  program  created  by  article  four  of the cannabis law and distributed
    32  through the office of cannabis management.
    33    5. On or before the first day of February each year, the  commissioner
    34  of  the  office  of children and family services shall provide a written
    35  report to the temporary president of the senate, speaker of  the  assem-
    36  bly,  chair  of the senate finance committee, chair of the assembly ways
    37  and means committee, chair of the senate committee on children and fami-
    38  lies, chair of the assembly children and families  committee,  chair  of
    39  the  senate  committee  on labor, chair of the assembly labor committee,
    40  chair of the senate committee on health, chair of  the  assembly  health
    41  committee,  chair  of  the  senate  committee on education, chair of the
    42  assembly education committee, the state comptroller and the public. Such
    43  report shall detail how the monies of the fund were utilized during  the
    44  preceding calendar year, and shall include:
    45    (a)  the amount of money dispersed from the fund and the award process
    46  used for such disbursements;
    47    (b) recipients of awards from the fund;
    48    (c) the amount awarded to each recipient of an award from the fund;
    49    (d) the purposes for which such awards were granted; and
    50    (e) a summary financial plan for such monies which shall include esti-
    51  mates of all receipts and all disbursements for the current and succeed-
    52  ing fiscal years, along with the actual results from  the  prior  fiscal
    53  year.
    54    6.  Moneys  shall be payable from the fund on the audit and warrant of
    55  the comptroller on vouchers approved  and  certified  by  the  executive
    56  steering committee.

        S. 1527--B                         114

     1    §  61.  Severability.  If any provision or term of this act is for any
     2  reason declared unconstitutional or invalid or ineffective by any compe-
     3  tent jurisdiction, such decision shall not affect the  validity  of  the
     4  effectiveness of the remaining portions of this act or any part thereof.
     5    §  62.  This act shall take effect immediately; provided, however that
     6  if section 3 of part XX of chapter 59 of the laws of 2019 shall not have
     7  taken effect on or before such date then section thirty-five of this act
     8  shall take effect on the same date and in the same manner as such  chap-
     9  ter  of  the laws of 2019 takes effect; provided, further, that sections
    10  thirty-nine and forty of this act shall take effect April 1,  2020,  and
    11  shall  apply  on and after such date: (a) to the cultivation of cannabis
    12  flower and cannabis trim transferred by a cultivator who is not a whole-
    13  saler; (b) to the cultivation of cannabis flower and cannabis trim  sold
    14  or  transferred  to  a retail dispensary by a cultivator who is a whole-
    15  saler; and (c) to the sale or transfer of adult use cannabis products to
    16  a retail dispensary; provided, further, that the amendments  to  article
    17  179  of  the  penal  law made by section fifty-six of this act shall not
    18  affect the repeal of such article and shall be  deemed  to  be  repealed
    19  therewith; provided, further, that the amendments to section 89-h of the
    20  state  finance  law  made  by  section  fifty-nine of this act shall not
    21  affect the repeal of such section and shall be  deemed  repealed  there-
    22  with;  and  provided,  further, that the amendments to  subdivision 1 of
    23  section 171-a of the tax law made by section  thirty-five  of  this  act
    24  shall  not  affect  the  expiration of such subdivision and shall expire
    25  therewith, when upon such date the provisions of section  thirty-six  of
    26  this act shall take effect.
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