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


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

Spectrum: Partisan Bill (Democrat 50-0)

Status: (Introduced) 2020-03-11 - print number 1617c [A01617 Detail]

Download: New_York-2019-A01617-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         1617--C

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    January 16, 2019
                                       ___________

        Introduced  by  M.  of  A.  PEOPLES-STOKES,  GOTTFRIED, LUPARDO, WRIGHT,
          WEPRIN, HUNTER, HYNDMAN, PICHARDO, BLAKE, L. ROSENTHAL, JAFFEE, DINOW-
          ITZ, JEAN-PIERRE, ABINANTI, RICHARDSON, HEVESI, WALKER,  VANEL,  NIOU,
          BICHOTTE, CAHILL, LIFTON, EPSTEIN, QUART, ORTIZ, REYES, DICKENS, FRON-
          TUS,  CRUZ,  SOLAGES,  DARLING, RODRIGUEZ, FERNANDEZ, ARROYO, BRONSON,
          DE LA ROSA, FALL, CARROLL, LENTOL, DenDEKKER, RAMOS, BENEDETTO,  SIMO-
          TAS,  SIMON,  KIM,  AUBRY  --  Multi-Sponsored  by -- M. of A. MOSLEY,
          SEAWRIGHT, STECK, TAYLOR -- read once and referred to the Committee on
          Codes -- committee discharged,  bill  amended,  ordered  reprinted  as
          amended  and recommitted to said committee -- again reported from said
          committee with amendments, ordered reprinted as amended and  recommit-
          ted  to  said  committee  --  recommitted to the Committee on Codes in
          accordance with Assembly Rule 3, sec. 2 -- 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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07592-35-0

        A. 1617--C                          2

          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
          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 including mass incarceration and other complex generational
    20  trauma, that inhibit  an  otherwise  law-abiding  citizen's  ability  to
    21  access  housing,  employment  opportunities,  and  other vital services.
    22  Existing laws have also created an illicit  market  which  represents  a
    23  threat  to  public  health and reduces the ability of the legislature to
    24  deter the accessing of marihuana by minors. Existing marihuana laws have
    25  disproportionately impacted African-American and Latinx communities.
    26    The intent of this act is to regulate,  control,  and  tax  marihuana,
    27  heretofore  known  as  cannabis,  generate significant new revenue, make
    28  substantial investments in communities and people most impacted by mari-
    29  huana criminalization to address the  collateral  consequences  of  such
    30  criminalization,  prevent  access  to cannabis by those under the age of
    31  twenty-one years, reduce the illegal  drug  market  and  reduce  violent
    32  crime,  reduce  participation  of  otherwise law-abiding citizens in the
    33  illicit market, end the racially disparate impact of  existing  cannabis
    34  laws,  create  new industries and increase employment and strengthen New
    35  York's agriculture sector.
    36    Nothing in this act is intended to limit the authority of any district
    37  government agency or office or employers to enact and  enforce  policies
    38  pertaining  to  cannabis  in  the  workplace, to allow driving under the

        A. 1617--C                          3

     1  influence of cannabis, to allow individuals to engage  in  conduct  that
     2  endangers  others, to allow smoking cannabis in any location where smok-
     3  ing tobacco is prohibited, or to require any individual to engage in any
     4  conduct  that violates federal law or to exempt anyone from any require-
     5  ment of federal law or pose any obstacle to the federal  enforcement  of
     6  federal law.
     7    The  legislature  further  finds  and  declares that it is in the best
     8  interest of the state to regulate medical cannabis, adult-use  cannabis,
     9  cannabinoid  hemp and hemp extracts under independent entities, known as
    10  the cannabis control board and the office of cannabis management.
    11    § 3. Definitions. Whenever used  in  this  chapter,  unless  otherwise
    12  expressly  stated  or  unless  the  context or subject matter requires a
    13  different meaning, the following terms  shall  have  the  representative
    14  meanings hereinafter set forth or indicated:
    15    1.  "Applicant" means a resident of New York state who is a citizen of
    16  the United States or a person lawfully admitted for permanent  residency
    17  in  the  United  States  aged twenty-one years or older applying for any
    18  cannabis or hemp licenses or special use permits issued by the New  York
    19  state cannabis control board pursuant to this chapter; provided, however
    20  applicants for hemp licenses may be aged eighteen years or older.
    21    2.  "Cannabinoid"  means  the phytocannabinoids found in hemp and does
    22  not include synthetic cannabinoids as that term is defined  in  subdivi-
    23  sion (g) of schedule I of section thirty-three hundred six of the public
    24  health law.
    25    3.  "Cannabinoid  hemp"  means  any  hemp and any product processed or
    26  derived from hemp, that is used for human consumption provided that when
    27  such product is packaged or offered for retail sale to  a  consumer,  it
    28  shall  not  have  a concentration of more than three tenths of a percent
    29  delta-9 tetrahydrocannabinol.
    30    4. "Cannabinoid hemp processor license" means a license granted by the
    31  department to process, extract, pack or manufacture cannabinoid hemp  or
    32  hemp  extract into products, whether in intermediate or final form, used
    33  for human consumption.
    34    5. "Cannabis" means all parts of the  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.  It does not
    38  include the mature stalks of the plant, fiber produced from the  stalks,
    39  oil  or cake made from the seeds of the plant, any other compound, manu-
    40  facture, salt, derivative, mixture, or preparation of the mature  stalks
    41  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    42  sterilized seed of the plant which is incapable of germination.  It does
    43  not include hemp, cannabinoid hemp or hemp extract as  defined  by  this
    44  section.
    45    6. "Cannabis consumer" means a person twenty-one years of age or older
    46  acting in accordance with any provision of this chapter.
    47    7.  "Cannabis control board" means the New York state cannabis control
    48  board created pursuant to article two of this chapter.
    49    8. "Cannabis flower" means the flower of a plant of the genus Cannabis
    50  that has been harvested, dried,  and  cured,  prior  to  any  processing
    51  whereby the plant material is transformed into a concentrate, including,
    52  but not limited to, concentrated cannabis, or an edible or topical prod-
    53  uct  containing cannabis or concentrated cannabis and other ingredients.
    54  Cannabis flower excludes leaves and stem.

        A. 1617--C                          4

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

        A. 1617--C                          5

     1  mental health residence established pursuant to  section  41.44  of  the
     2  mental hygiene law; a hospital operating pursuant to section 7.17 of the
     3  mental  hygiene  law;  a  mental  hygiene facility operating pursuant to
     4  article  thirty-one  of the mental hygiene law; an inpatient or residen-
     5  tial treatment program certified pursuant to article thirty-two  of  the
     6  mental hygiene law; a residential facility for the care and treatment of
     7  persons  with  developmental  disabilities operating pursuant to article
     8  sixteen of the mental hygiene law; a residential treatment facility  for
     9  children  and  youth  operating  pursuant  to  article thirty-one of the
    10  mental hygiene law; a private or  public  school;  research  institution
    11  with  an  internal  review board; or any other facility as determined by
    12  the board in regulation; that registers with the office to assist one or
    13  more certified patients  with  the  acquisition,  possession,  delivery,
    14  transportation or administration of medical cannabis.
    15    23.  "Designated caregiver" means an individual designated by a certi-
    16  fied patient in a registry application. A certified patient  may  desig-
    17  nate  up to five designated caregivers not counting designated caregiver
    18  facilities or designated caregiver facilities' employees.
    19    24. "Designated caregiver facility employee" means an  employee  of  a
    20  designated caregiver facility.
    21    25. "Distributor" means any person who sells at wholesale any cannabis
    22  product,  except  medical  cannabis,  for the sale of which a license is
    23  required under the provisions of this chapter.
    24    26. "Executive director" means the executive director of the office of
    25  cannabis management.
    26    27. "Form of medical cannabis" means characteristics  of  the  medical
    27  cannabis  recommended  or  limited  for  a particular certified patient,
    28  including the method of consumption and any particular strain,  variety,
    29  and quantity or percentage of cannabis or particular active ingredient.
    30    28.  "Hemp"  means  the  plant Cannabis sativa L. and any part of such
    31  plant, including the seeds thereof and all derivatives, extracts, canna-
    32  binoids, isomers, acids, salts, and salts of isomers, whether growing or
    33  not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more
    34  than three-tenths of a percent on a  dry  weight  basis.  It  shall  not
    35  include "medical cannabis" as defined in this section.
    36    29.  "Hemp  extract"  means  all  derivatives, extracts, cannabinoids,
    37  isomers, acids, salts, and salts of isomers derived from hemp,  used  or
    38  intended  for  human  consumption,  for  its cannabinoid content, with a
    39  delta-9 tetrahydrocannabinol concentration of not more  than  an  amount
    40  determined  by  the  department  in  regulation. For the purpose of this
    41  article, hemp extract excludes (a) any food,  food  ingredient  or  food
    42  additive  that  is generally recognized as safe pursuant to federal law;
    43  or (b) any hemp extract that is not used  for  human  consumption.  Such
    44  excluded substances shall not be regulated pursuant to the provisions of
    45  this  article  but  are  subject to other provisions of applicable state
    46  law, rules and regulations.
    47    30. "Labor peace agreement" means an agreement between an entity and a
    48  labor organization that, at a minimum, protects the state's  proprietary
    49  interests  by  prohibiting labor organizations and members from engaging
    50  in picketing, work stoppages, boycotts, and any other economic interfer-
    51  ence with the entity.
    52    31. "Laboratory testing facility"  means  any  independent  laboratory
    53  capable  of  testing  cannabis  and  cannabis products for adult-use and
    54  medical-use; cannabinoid hemp and hemp extract; or for all categories of
    55  cannabis and cannabis products as per regulations set forth by the state
    56  cannabis control board.

        A. 1617--C                          6

     1    32. "License" means a written authorization  as  provided  under  this
     2  chapter  permitting persons to engage in a specified activity authorized
     3  pursuant to this chapter.
     4    33. "Licensee" means an individual or an entity who has been granted a
     5  license under this chapter.
     6    34.  "Medical  cannabis"  means  cannabis  as defined in this section,
     7  intended for a certified medical use, as  determined  by  the  board  in
     8  consultation with the commissioner of health.
     9    35.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
    10  producer for the cultivation of cannabis, a cannabis processor, a canna-
    11  bis distributor and a cannabis retailer  under  this  article;  provided
    12  such  licensee complies with all requirements imposed by this article on
    13  licensed producers, processors, distributors and retailers to the extent
    14  the licensee engages in such activities.
    15    36. "Nursery" means a licensee that  produces  only  clones,  immature
    16  plants, seeds, and other agricultural products used specifically for the
    17  planting, propagation, and cultivation of cannabis.
    18    37.  "Office"  or  "office  of cannabis management" means the New York
    19  state office of cannabis management.
    20    38. "On-site consumption" means the consumption of cannabis in an area
    21  licensed as provided for in this chapter.
    22    39. "Owner" means an individual with an aggregate  ownership  interest
    23  of  twenty  percent  or more in a cannabis business licensed pursuant to
    24  this chapter, unless such interest is solely a security, lien, or encum-
    25  brance, or an individual that will be participating  in  the  direction,
    26  control, or management of the licensed cannabis business.
    27    40.  "Package"  means  any  container  or  receptacle used for holding
    28  cannabis or cannabis products.
    29    41. "Permit" means a permit issued pursuant to this chapter.
    30    42. "Permittee" means any person to whom  a  permit  has  been  issued
    31  pursuant to this chapter.
    32    43. "Practitioner" means a practitioner who is licensed, registered or
    33  certified  by  New  York state to prescribe controlled substances within
    34  the state.  Nothing in this chapter shall be interpreted so as  to  give
    35  any  such  person  authority  to  act outside their scope of practice as
    36  defined by title eight of the education law.  Additionally,  nothing  in
    37  this chapter shall be interpreted to allow any unlicensed, unregistered,
    38  or  uncertified  person to act in a manner that would require a license,
    39  registration, or certification pursuant to title eight of the  education
    40  law.
    41    44.  "Processor"  means a licensee that extracts concentrated cannabis
    42  and/or compounds, blends, extracts, infuses, or  otherwise  manufactures
    43  concentrated  cannabis  or cannabis products, but not the cultivation of
    44  the cannabis contained in the cannabis product.
    45    45. "Registered organization" means an organization  registered  under
    46  article three of this chapter.
    47    46. "Registry application" means an application properly completed and
    48  filed  with the board by a certified patient under article three of this
    49  chapter.
    50    47. "Registry identification card" means a document that identifies  a
    51  certified  patient or designated caregiver, as provided under this chap-
    52  ter.
    53    48. "Retail sale" means to solicit or receive an order for, to keep or
    54  expose for sale, and to keep with intent to sell, made by  any  licensed
    55  person, whether principal, proprietor, agent, or employee, of any canna-

        A. 1617--C                          7

     1  bis,  cannabis  product,  cannabinoid  hemp or hemp extract product to a
     2  cannabis consumer for any purpose other than resale.
     3    49. "Retailer" means any person who sells at retail any cannabis prod-
     4  uct,  the  sale  of  which a license is required under the provisions of
     5  this chapter.
     6    50. "Small business" means small business as defined  in  section  one
     7  hundred  thirty-one of the economic development law, and shall apply for
     8  purposes of this chapter where any inconsistencies exist.
     9    51. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    10  any other matter or substance which contains cannabis including the  use
    11  of an electronic smoking device that creates an aerosol or vapor.
    12    52.  "Social  and economic equity applicant" means an individual or an
    13  entity who is eligible for priority licensing pursuant to  the  criteria
    14  established in article four of this chapter.
    15    53.  "Terminally ill" means an individual has a medical prognosis that
    16  the individual's life expectancy is approximately one year  or  less  if
    17  the illness runs its normal course.
    18    54.  "Warehouse" means and includes a place in which cannabis products
    19  are securely housed or stored.
    20    55. "Wholesale" means to solicit or receive an order for, to  keep  or
    21  expose  for  sale, and to keep with intent to sell, made by any licensed
    22  person, whether principal, proprietor, agent, or employee of any  adult-
    23  use,  medical-use  cannabis or cannabis product, or cannabinoid hemp and
    24  hemp extract product for purposes of resale.

    25                                  ARTICLE 2
    26                    NEW YORK STATE CANNABIS CONTROL BOARD

    27  Section 7.  Establishment of the cannabis control board or "board".
    28          8.  Establishment of an office of cannabis management.
    29          9.  Executive director.
    30          10. Powers and duties of the cannabis control board.
    31          11. Functions, powers and  duties  of  the  executive  director;
    32                office of cannabis control.
    33          12. Chief equity officer.
    34          13. Rulemaking authority.
    35          14. State cannabis advisory board.
    36          15. Disposition of moneys received for license fees.
    37          16. Violations  of  cannabis  laws or regulations; penalties and
    38                injunctions.
    39          17. Formal hearings; notice and procedure.
    40          18. Ethics, transparency and accountability.
    41    § 7. Establishment of the cannabis control board or "board".   1.  The
    42  cannabis  control  board is hereby created and shall consist of a chair-
    43  person nominated by the governor and with the advice and consent of  the
    44  senate,  with  one vote, and four other voting board members as provided
    45  for in subdivision two of this section. In addition,  the  commissioners
    46  of  the  departments  of environmental conservation, health, agriculture
    47  and markets, taxation  and  finance,  the  superintendent  of  financial
    48  services,  and  the  director  of  the  office of addiction services and
    49  supports or their designees shall serve  as  ex-officio  members  in  an
    50  advisory capacity.
    51    2.  Appointments.  The governor shall have three appointments with the
    52  advice and consent of the senate, the temporary president of the  senate
    53  and  the  speaker of the assembly shall each have one appointment to the
    54  board. Appointments shall be for a term of three years each and shall be

        A. 1617--C                          8

     1  geographically and  demographically  representative  of  the  state  and
     2  communities  historically  affected  by  the war on drugs. Board members
     3  shall be citizens and permanent residents of this state. The chairperson
     4  and  the  remaining  members  of  such  board shall continue to serve as
     5  chairperson and members of the board until the expiration of the respec-
     6  tive terms for which they were appointed. Upon the  expiration  of  such
     7  respective terms the successors of such chairperson and members shall be
     8  appointed  to  serve  for  a  term  of  three years each and until their
     9  successors have been appointed and qualified.  The  members  shall  when
    10  performing  the  work  of  the  board,  be  compensated at a rate of two
    11  hundred sixty dollars per day, and together with an allowance for actual
    12  and necessary expenses incurred in the discharge  of  their  duties.  No
    13  member  or  member's spouse or minor child shall have any interest in an
    14  entity regulated by the board.
    15    3. Expenses. Each member of the  board  shall  be  entitled  to  their
    16  expenses actually and necessarily incurred by them in the performance of
    17  their duties.
    18    4. Removal. Any member of the board may be removed by the governor for
    19  good  cause  after notice and an opportunity to be heard. A statement of
    20  the good cause for their removal shall be filed by the governor  in  the
    21  office of the secretary of state.
    22    5.  Vacancies;  quorum.  (A)  In  the event of a vacancy caused by the
    23  death, resignation, removal or inability to perform his or her duties of
    24  any board member, the vacancy shall be  filled  in  the  manner  as  the
    25  original appointment for the remainder of the unexpired term.
    26    (B)(i)  In  the  event  of a vacancy caused by the death, resignation,
    27  removal, or inability to act of the chair, the vacancy shall  be  filled
    28  in  the same manner as the original appointment for the remainder of the
    29  unexpired term. Notwithstanding  any  other  provision  of  law  to  the
    30  contrary,  the  governor  shall  designate  one  of  the remaining board
    31  members to serve as acting chairperson for a period not  to  exceed  six
    32  months  or  until  a  successor  chairperson  has  been confirmed by the
    33  senate.  Upon the expiration of the six month term, if the governor  has
    34  nominated a successor chairperson, but the senate has not acted upon the
    35  nomination,  the  acting  chairperson  can  continue  to serve as acting
    36  chairperson for an  additional  ninety  days  or  until  the  governor's
    37  successor  chairperson  nomination is confirmed by the senate, whichever
    38  comes first;
    39    (ii) The governor shall provide immediate written notice to the tempo-
    40  rary president of the senate and the speaker  of  the  assembly  of  the
    41  designation of a board member as acting chairperson;
    42    (iii)  If  (a)  the governor has not nominated a successor chairperson
    43  upon the expiration of the six month term or (b)  the  senate  does  not
    44  confirm the governor's successor nomination within the additional ninety
    45  days,  the board member designated as acting chairperson shall no longer
    46  be able to serve as acting chairperson and the  governor  is  prohibited
    47  from extending the powers of that acting chairperson or from designating
    48  another board member to serve as acting chairperson; and
    49    (iv)  A board member serving as the acting chairperson of the cannabis
    50  control board shall be deemed a state officer for  purposes  of  section
    51  seventy-three of the public officers law.
    52    (C)  A majority of the voting board members of the board shall consti-
    53  tute a quorum for the purpose of conducting the business thereof  and  a
    54  majority  vote  of  all  the  members  in  office shall be necessary for
    55  action. Provided, however, that a board member designated as  an  acting

        A. 1617--C                          9

     1  chairperson  pursuant  to  this  chapter  shall  have  only one vote for
     2  purposes of conducting the business of the cannabis control board.
     3    6.  Officers;  employees;  offices.  (A) The board shall have power to
     4  appoint any necessary deputies, counsels, assistants, investigators, and
     5  other employees within the limits provided by appropriation.    Investi-
     6  gators  so  employed  by  the board shall be deemed to be peace officers
     7  only for the purpose of enforcing the provisions of the cannabis law  or
     8  judgments  or orders obtained for violation thereof, with all the powers
     9  set forth in section 2.20 of the criminal procedure  law.  The  counsel,
    10  secretary,  chief executive officer, assistant chief executive officers,
    11  chief equity officer, confidential  secretaries  to  board  members  and
    12  deputies  shall  be  in the exempt class of the civil service. The other
    13  assistants, investigators  and  employees  of  the  office  of  cannabis
    14  management  shall  all  be in the competitive class of the civil service
    15  and shall be considered for purposes of article fourteen  of  the  civil
    16  service  law  to  be public employees in the civil service of the state,
    17  and shall be assigned to the  appropriate  collective  bargaining  unit.
    18  Employees serving in positions in newly created titles shall be assigned
    19  to the same collective bargaining units as they would have been assigned
    20  to  were such titles created prior to the establishment of the office of
    21  cannabis management by this chapter.
    22    The cannabis control board and office  of  cannabis  management  shall
    23  have  its  principal  office  in the city of Albany, and maintain branch
    24  offices in the cities of New York and Buffalo and such other  places  as
    25  it may deem necessary.
    26    (B)  The  board  shall establish appropriate procedures to ensure that
    27  hearing officers are shielded from ex parte communications with  alleged
    28  violators  and their attorneys and from other employees of the office of
    29  cannabis management and shall take such other steps  as  it  shall  deem
    30  necessary  and  proper to shield its judicial processes from unwarranted
    31  and inappropriate communications and attempts to influence.
    32    7. Disqualification of members of  the  board  and  employees  of  the
    33  office  of  cannabis management.  No member of the board or any officer,
    34  deputy, assistant, inspector or employee or spouse or minor child there-
    35  of shall have any interest, direct or indirect, either proprietary or by
    36  means of any loan, mortgage or lien, or in any other manner,  in  or  on
    37  any premises where cannabis is manufactured or sold; nor shall they have
    38  any  interest,  direct  or indirect, in any business wholly or partially
    39  devoted to the cultivation, manufacture, distribution, sale, transporta-
    40  tion or storage of cannabis, or own any stock in any  corporation  which
    41  has  any  interest, proprietary or otherwise, direct or indirect, in any
    42  premises where cannabis or hemp extract is cultivated  or  manufactured,
    43  distributed,  or sold, or in any business wholly or partially devoted to
    44  the cultivation,  manufacture,  distribution,  sale,  transportation  or
    45  storage  of cannabis or hemp extract or receive any commission or profit
    46  whatsoever, direct or indirect, from any person applying for or  receiv-
    47  ing  any  license  or  permit  provided for in this chapter, or hold any
    48  other public office in the state or in any political subdivision  except
    49  upon  the  written  permission of the board, such member of the board or
    50  office of cannabis management or officer, deputy,  assistant,  inspector
    51  or  employee  thereof  may  hold  the  public office of notary public or
    52  member of a community board of education in the city school district  of
    53  the  city of New York. Anyone who violates any of the provisions of this
    54  section shall be removed.
    55    § 8. Establishment of an office of cannabis management. There is here-
    56  by established, within the division of alcoholic  beverage  control,  an

        A. 1617--C                         10

     1  independent  office  of  cannabis management, which shall have exclusive
     2  jurisdiction to exercise the powers and duties provided by this chapter.
     3  The office shall exercise its authority  by  and  through  an  executive
     4  director.
     5    §  9.  Executive  director.  The  office shall exercise its authority,
     6  other than powers and duties specifically granted to the board,  by  and
     7  through an executive director nominated by the governor and confirmed by
     8  the  senate.    The  executive  director shall serve for a term of three
     9  years and once confirmed, may only be removed for good cause with appro-
    10  priate notice. The executive director of the state  office  of  cannabis
    11  management shall receive an annual salary not to exceed an amount appro-
    12  priated therefor by the legislature and his or her expenses actually and
    13  necessarily  incurred  in the performance of his or her official duties,
    14  unless otherwise provided by the legislature.
    15    § 10. Powers and duties of the cannabis control  board.  The  cannabis
    16  control  board or "board" shall have the following functions, powers and
    17  duties as provided for in this chapter:
    18    1. Sole discretion to issue  or  refuse  to  issue  any  registration,
    19  license or permit provided for in this chapter.
    20    2.  Sole discretion to limit, or not to limit, the number of registra-
    21  tions, licenses and permits of each class to be issued within the  state
    22  or  any  political  subdivision  thereof,  in  a manner that prioritizes
    23  social and economic equity applicants with the  goal  of  fifty  percent
    24  awarded  to  such applicants, and considers small business opportunities
    25  and concerns, avoids market dominance in sectors of  the  industry,  and
    26  reflects the demographics of the state.
    27    3.  Sole  discretion to revoke, cancel or suspend for cause any regis-
    28  tration, license, or permit issued under this chapter and/or to impose a
    29  civil penalty for cause, after notice and an opportunity for a  hearing,
    30  against any holder of a registration, license, or permit issued pursuant
    31  to this chapter.
    32    4.  To  fix  by  rule  and regulation the standards of cultivation and
    33  processing of medical cannabis, adult use cannabis and cannabis product,
    34  and cannabinoid hemp and hemp extract, including but not limited to, the
    35  ability to regulate potency and the types of products which may be manu-
    36  factured and/or processed, in order to ensure the health and  safety  of
    37  the public and the use of proper ingredients and methods in the manufac-
    38  ture  of all medical, adult-use, cannabinoid hemp and hemp extract to be
    39  sold or consumed in the state.
    40    5. To limit or prohibit, at any time of public emergency  and  without
    41  previous  notice or advertisement, the cultivation, processing, distrib-
    42  ution or sale of any or  all  cannabis  products,  medical  cannabis  or
    43  cannabinoid  hemp  and  hemp  extract, for and during the period of such
    44  emergency.
    45    6. To hold hearings,  subpoena  witnesses,  compel  their  attendance,
    46  administer  oaths,  to  examine  any person under oath and in connection
    47  therewith to require the production of any books or records relative  to
    48  the  inquiry. A subpoena issued under this section shall be regulated by
    49  the civil practice law and rules.
    50    7. To appoint any necessary directors, deputies, counsels, assistants,
    51  investigators, and other employees within the limits provided by  appro-
    52  priation.  Directors, deputies and counsels shall be in the exempt class
    53  of  the civil service. The other assistants, investigators and employees
    54  of the office shall all be in the competitive class of the civil service
    55  and shall be considered for purposes of article fourteen  of  the  civil
    56  service  law  to be public employees of the state, and shall be assigned

        A. 1617--C                         11

     1  to the appropriate bargaining unit. Investigators  so  employed  by  the
     2  office  shall  be  deemed  to be peace officers only for the purposes of
     3  enforcing the provisions of this chapter or judgments or orders obtained
     4  for  violation thereof, with all the powers set forth in section 2.20 of
     5  the criminal procedure law. Employees transferred to the office shall be
     6  transferred without further examination or qualification to the same  or
     7  similar  titles and shall remain in the same collective bargaining units
     8  and shall retain their respective civil service classifications,  status
     9  and  rights pursuant to their collective bargaining units and collective
    10  bargaining agreements. Employees serving in positions in  newly  created
    11  titles  shall  be assigned to the appropriate collective bargaining unit
    12  as they would have been assigned to were such titles  created  prior  to
    13  the  establishment  of  the  office of cannabis management.   Any action
    14  taken under this subdivision shall be subject to and in accordance  with
    15  the civil service law.
    16    8.  To inspect or provide authorization for the inspection at any time
    17  of any premises where medical cannabis, adult-use cannabis  or  cannabi-
    18  noid hemp and hemp extract is cultivated, processed, stored, distributed
    19  or sold.
    20    9.  To prescribe forms of applications for registrations, licenses and
    21  permits under this chapter and of all reports deemed  necessary  by  the
    22  board.
    23    10. To appoint such advisory groups and committees as deemed necessary
    24  to  provide assistance to the board to carry out the purposes and objec-
    25  tives of this chapter.
    26    11. To exercise the powers and perform the duties in relation  to  the
    27  administration of the board and the office of cannabis management as are
    28  necessary but not specifically vested by this chapter, including but not
    29  limited to budgetary and fiscal matters.
    30    12. To develop and establish minimum criteria for certifying employees
    31  to  work in the cannabis industry in positions requiring advanced train-
    32  ing and education.
    33    13. To enter into contracts, memoranda of  understanding,  and  agree-
    34  ments as deemed appropriate to effectuate the policy and purpose of this
    35  chapter.
    36    14. To advise the urban development corporation in making low interest
    37  or  zero-interest  loans  to qualified social and economic equity appli-
    38  cants as provided for in this chapter.
    39    15. If public health, safety, or welfare imperatively  requires  emer-
    40  gency  action,  and  incorporates  a finding to that effect in an order,
    41  summary suspension of a license may be ordered, effective  on  the  date
    42  specified  in  such  order  or  upon service of a certified copy of such
    43  order on the licensee, whichever shall be later, pending proceedings for
    44  revocation or other action. These proceedings shall be  promptly  insti-
    45  tuted  and  determined.  In addition, the board may be directed to order
    46  the administrative seizure of product, issue a stop order, or  take  any
    47  other  action necessary to effectuate and enforce the policy and purpose
    48  of this chapter.
    49    16. To draft and provide for public  comment  and  issue  regulations,
    50  declaratory rulings, guidance and industry advisories.
    51    17. To draft and provide an annual report on the effectiveness of this
    52  chapter no later than January first, two thousand twenty-two and annual-
    53  ly  thereafter.    The  annual report shall be prepared, in consultation
    54  with the division of the budget, the urban development corporation,  the
    55  department of taxation and finance, the department of health, department
    56  of  agriculture  and markets, office of addiction services and supports,

        A. 1617--C                         12

     1  office of mental health, New York state police and the division of crim-
     2  inal justice services.  The report shall provide, but not be limited to,
     3  the following information:
     4    (a)  the number of registrations, licenses, and permits applied for by
     5  geographic region of the state; the number of  registrations,  licenses,
     6  and permits approved or denied by geographic region of the state;
     7    (b)  the  economic  and  fiscal  impacts associated with this chapter,
     8  including revenue from licensing  or  other  fees,  fines  and  taxation
     9  related  to  the  cultivation,  distribution  and  sale  of cannabis for
    10  medical and adult-use and cannabinoid hemp  and  hemp  extract  in  this
    11  state;
    12    (c)  specific programs and progress made by the cannabis control board
    13  and the office of cannabis management in  achieving  the  goals  of  the
    14  social  and economic equity plan, and other social justice goals includ-
    15  ing, but not limited to, restorative justice, minority- and  women-owned
    16  businesses,  disadvantaged  farmers business and service disabled veter-
    17  ans;
    18    (d) collect demographic data on owners and employees  in  the  medical
    19  cannabis,  adult-use  cannabis  and  cannabinoid  hemp  and hemp extract
    20  industry;
    21    (e) impacts to public  health  and  safety,  including  substance  use
    22  disorder;
    23    (f)  impacts associated with public safety, including, but not limited
    24  to, traffic-related issues, law  enforcement,  under-age  prevention  in
    25  relation  to  accessing adult-use cannabis, and efforts to eliminate the
    26  illegal market for cannabis products in New York; and
    27    (g) any other information or data deemed significant.
    28    18. The board shall make  recommendations  regarding  the  appropriate
    29  level  of  taxation  of adult-use cannabis, as well as changes necessary
    30  to:  improve  registration,  licensing  and  permitting;  promoting  and
    31  encouraging  social  and economic equity applicants; improve and protect
    32  the public health and safety of New Yorkers; improve access  and  avail-
    33  ability  for substance abuse treatment programs; and any other recommen-
    34  dations deemed necessary and appropriate. Such report shall be presented
    35  to the governor, the majority leader of the senate and  the  speaker  of
    36  the  assembly,  no later than January first, two thousand twenty-two and
    37  annually thereafter.
    38    § 11. Functions, powers and duties of the executive  director;  office
    39  of  cannabis  management.   The executive director, as authorized by and
    40  through this chapter, shall have the  following  functions,  powers  and
    41  duties as provided for in this chapter:
    42    1.  To  exercise  the powers and perform the duties in relation to the
    43  administration of the office of cannabis management as are  not  specif-
    44  ically vested by this chapter in the cannabis control board.
    45    2.  To  keep  records  in  such form as he or she may prescribe of all
    46  registrations, licenses and permits issued and revoked within the state;
    47  such records shall be so kept as to provide ready information as to  the
    48  identity of all licensees including the names of the officers and direc-
    49  tors  of  corporate licensees and the location of all licensed premises.
    50  The executive director may contract to furnish copies of the records  of
    51  licenses  and  permits of each class and type issued within the state or
    52  any political subdivision thereof, for any license  or  permit  year  or
    53  term of years not exceeding five years.
    54    3.  To  inspect  or  provide  for the inspection of any premises where
    55  medical cannabis, adult-use cannabis, hemp cannabis are manufactured  or
    56  sold.

        A. 1617--C                         13

     1    4.  To  prescribe forms of applications for licenses and permits under
     2  this chapter and of all reports deemed necessary by the board.
     3    5.  As  authorized  by  the  board,  to  inspect  or  provide  for the
     4  inspection of any licensed or permitted premises where  medical,  adult-
     5  use or hemp is cultivated, processed, stored, distributed or sold.
     6    6.  To prescribe forms of applications for registrations, licenses and
     7  permits under this chapter and of all reports deemed  necessary  by  the
     8  board.
     9    7. To delegate the powers provided in this section to such other offi-
    10  cers  or  employees as may be deemed appropriate by the executive direc-
    11  tor.
    12    8. To exercise the powers and perform the duties as delegated  by  the
    13  board  in relation to the administration of the office as are necessary,
    14  including but not limited to budgetary and fiscal matters.
    15    9. To enter into contracts, memoranda of understanding, and agreements
    16  on the recommendation of the executive director and as authorized by the
    17  board to effectuate the policy and purpose of this chapter.
    18    10. To advise and assist the board in carrying out any  of  its  func-
    19  tions, powers and duties.
    20    §  12.  Chief  equity officer. The chief equity officer shall be nomi-
    21  nated by the governor and confirmed by  the  senate.  The  chief  equity
    22  officer shall receive an annual salary not to exceed an amount appropri-
    23  ated  therefor by the legislature and their expenses actually and neces-
    24  sarily incurred in the performance of official duties, unless  otherwise
    25  provided by the legislature.
    26    1.  The  chief  equity  officer  shall assist with the development and
    27  implementation of, and ensure the cannabis control board and the  office
    28  of  cannabis  management's  continued  compliance  with,  the social and
    29  economic equity plan, required to be developed pursuant to article  four
    30  of this chapter.
    31    2.  The chief equity officer shall establish public education program-
    32  ming dedicated to providing  communities  that  have  been  impacted  by
    33  cannabis  prohibition  with  information detailing the licensing process
    34  and informing individuals of the support and resources that  the  office
    35  can  provide  to individuals and entities interested in participating in
    36  activity licensed under this chapter.
    37    3. The chief equity officer shall provide a report to the legislature,
    38  no later than January first, two thousand twenty-two, and annually ther-
    39  eafter, of their activities in ensuring compliance with the  social  and
    40  economic  equity plan, required to be developed pursuant to article four
    41  of this chapter.
    42    § 13. Rulemaking authority.   1. The board shall  perform  such  acts,
    43  prescribe  such  forms and propose such rules, regulations and orders as
    44  it may deem necessary or proper to fully effectuate  the  provisions  of
    45  this chapter.
    46    2.  The  board shall, in consultation with the executive director, the
    47  chief equity officer and the state cannabis  advisory  board,  have  the
    48  authority  to  promulgate  any  and  all necessary rules and regulations
    49  governing  the  cultivation,  manufacture,  processing,  transportation,
    50  distribution, testing, delivery, and sale of medical cannabis, adult-use
    51  cannabis,  and  cannabinoid  hemp  and  hemp  extract, including but not
    52  limited to the registration of organizations authorized to sell  medical
    53  cannabis, the licensing and/or permitting of adult-use cannabis cultiva-
    54  tors,  processors,  cooperatives, microbusiness, distributors, laborato-
    55  ries, and retailers, and the licensing  of  cannabinoid  hemp  and  hemp

        A. 1617--C                         14

     1  extract  producers  and  processors pursuant to this chapter, including,
     2  but not limited to:
     3    (a) prescribing forms and establishing application, reinstatement, and
     4  renewal fees;
     5    (b)  the  qualifications  and  selection  criteria  for  registration,
     6  licensing, or permitting;
     7    (c) the books and records to be created and maintained by  all  regis-
     8  tered organizations, licensees, and permittees, including the reports to
     9  be  made  thereon to the office, and inspection of any and all books and
    10  records maintained by any registered organization, licensee, or  permit-
    11  tee  and  on  the  premise  of any registered organization, licensee, or
    12  permittee;
    13    (d) methods of producing, processing, and packaging cannabis,  medical
    14  cannabis, cannabis-infused products, concentrated cannabis, and cannabi-
    15  noid  hemp  and hemp extract; conditions of sanitation, and standards of
    16  ingredients, quality, and  identity  of  cannabis  products  cultivated,
    17  processed,  packaged, or sold by any registered organizations and licen-
    18  sees;
    19    (e) security requirements for medical cannabis and adult-use  cannabis
    20  retail dispensaries and premises where cannabis products, medical canna-
    21  bis,  and  cannabinoid  hemp and hemp extract, are cultivated, produced,
    22  processed, or stored, and safety protocols for registered organizations,
    23  licensees and their employees; and
    24    (f) hearing procedures and additional causes for cancellation, suspen-
    25  sion, revocation, and/or civil penalties against any person  registered,
    26  licensed, or permitted by the authority.
    27    3.  The board, in consultation with the state cannabis advisory board,
    28  shall promulgate rules and regulations that are designed to:
    29    (a) prevent the distribution of adult-use cannabis or cannabis product
    30  to persons under twenty-one years of age, including the modification  of
    31  tobacco vaping products for use with cannabis;
    32    (b) prevent the revenue from the sale of cannabis from going to crimi-
    33  nal enterprises;
    34    (c) prevent the diversion of cannabis from this state to other states;
    35    (d) prevent cannabis, hemp, cannabinoid hemp and hemp extract activity
    36  that  is legal under state law from being used as a cover or pretext for
    37  the trafficking of other illegal drugs or other illegal activity;
    38    (e) prevent driving while  impaired  and  the  exacerbation  of  other
    39  adverse public health consequences associated with the use of cannabis;
    40    (f) prevent the growing of cannabis on public lands; and
    41    (g)  inform the public about the prohibition on the possession and use
    42  of cannabis on federal property.
    43    4. The board, in consultation with the department of  agriculture  and
    44  markets  and the department of environmental conservation, shall promul-
    45  gate necessary rules and regulations governing the  safe  production  of
    46  cannabis,  including environmental and energy standards and restrictions
    47  on the use of pesticides and best practices for water and energy conser-
    48  vation.
    49    5. Emergency rules and regulations: In adopting  any  emergency  rule,
    50  the board shall comply with the provisions of subdivision six of section
    51  two  hundred  two of the state administrative procedure act and subdivi-
    52  sion three of section one hundred one-a of the executive law;  provided,
    53  however, that notwithstanding the provisions of such laws:
    54    (a)  Such  emergency  rule may remain in effect for no longer than one
    55  hundred twenty days, unless within such time the board complies with the
    56  provisions of such laws and adopts the rule as a permanent rule;

        A. 1617--C                         15

     1    (b) If, prior to the expiration of a rule  adopted  pursuant  to  this
     2  paragraph,  the board finds that the readoption of such rule on an emer-
     3  gency basis or the adoption of a substantially similar rule on an  emer-
     4  gency  basis  is  necessary  for  the preservation of the public health,
     5  safety  or  general  welfare  the agency may only readopt the rule on an
     6  emergency basis or adopt a substantially similar rule  on  an  emergency
     7  basis if on or before the date of such action the board has also submit-
     8  ted  a  notice  of  proposed  rule making pursuant to subdivision six of
     9  section two hundred two of the state administrative  procedure  act  and
    10  subdivision  three of section one hundred one-a of the executive law. An
    11  emergency rule adopted pursuant to this paragraph may remain  in  effect
    12  for no longer than one hundred twenty days;
    13    (c)  An  emergency  rule  adopted  pursuant  to  this subdivision or a
    14  substantially similar rule may be adopted  on  an  emergency  basis  may
    15  remain  in  effect  for no longer than one hundred twenty days, but upon
    16  the  expiration  of  such  one  hundred  twenty-day  period  no  further
    17  readoptions or adoptions of substantially similar rules shall be permit-
    18  ted  for  a period of one hundred twenty days.  Nothing in this subdivi-
    19  sion shall preclude the adoption of such rule by submitting a notice  of
    20  adoption  pursuant to subdivision five of section two hundred two of the
    21  state administrative procedure act.
    22    (d) Strict compliance with the provisions of this subdivision shall be
    23  required, and any emergency rule or substantially similar rule that does
    24  not so comply shall be void and of no legal effect.
    25    § 14. State cannabis advisory board. 1. The  state  cannabis  advisory
    26  board  or  "advisory board" is established within the office of cannabis
    27  management and directed to  work  in  collaboration  with  the  cannabis
    28  control board and the executive director to regulate and control the use
    29  of  medical  cannabis,  adult-use cannabis and cannabinoid hemp and hemp
    30  extract in the state of New York.
    31    2. The state cannabis advisory board, shall consist of thirteen voting
    32  appointed members, along with the commissioners of environmental conser-
    33  vation, health, agriculture  and  markets  and  addiction  services  and
    34  supports  serving  as  ex-officio members. The governor shall have seven
    35  appointments, the temporary president of the senate and the  speaker  of
    36  the  assembly  shall  each  have  three  appointments  to the board. The
    37  members shall be appointed to each serve three year  terms  and  in  the
    38  event  of  a  vacancy,  the vacancy shall be filled in the manner of the
    39  original appointment for the remainder  of  the  term.    The  appointed
    40  members  and  commissioners  shall  receive  no  compensation  for their
    41  services but shall  be  allowed  their  actual  and  necessary  expenses
    42  incurred in the performance of their duties as board members.
    43    3.  Advisory  board  members shall have statewide geographic represen-
    44  tation that is  balanced  and  diverse  in  its  composition.  Appointed
    45  members  shall  have  an  expertise  in  public  and  behavioral health,
    46  substance use disorder treatment, effective rehabilitative treatment for
    47  adults and juveniles, economic development, environmental  conservation,
    48  job  training and placement, criminal justice, and drug policy. Further,
    49  the  advisory  board  shall  include  residents  from  communities  most
    50  impacted  by  cannabis  prohibition, people with prior drug convictions,
    51  the formerly incarcerated, and representatives of organizations  serving
    52  communities impacted by past federal and state drug policies.
    53    4.  The  chairperson  of  the  advisory board and the vice chairperson
    54  shall be elected from among the members of the  advisory  board  by  the
    55  members of such advisory board. The vice chairperson shall represent the

        A. 1617--C                         16

     1  advisory  board  in the absence of the chairperson at all official advi-
     2  sory board functions.
     3    5.  The  advisory  board shall work in collaboration with the cannabis
     4  control board and the executive director prior to the  adoption  of  any
     5  rules and regulations governing the medical cannabis, adult-use cannabis
     6  or  cannabinoid  hemp  and  hemp  extract industries. The advisory board
     7  shall also make recommendations  to  the  cannabis  control  board,  the
     8  office and the legislature on cannabis and hemp cultivation, processing,
     9  distribution,  transport, social and economic equity in the cannabis and
    10  hemp industries, criminal justice, public health  and  safety  concerns,
    11  law  enforcement  related  to cannabis and cannabis products, and on the
    12  testing and sale of cannabis and cannabis products.
    13    § 15. Disposition of moneys received for  license  fees.    The  board
    14  shall  establish  a  scale  of application, licensing, and renewal fees,
    15  based upon the cost of enforcing this chapter and the size of the canna-
    16  bis business being licensed, as follows:
    17    1. The board shall charge each registered organization,  licensee  and
    18  permittee  a  registration, licensure or permit fee, and renewal fee, as
    19  applicable.  The fees may vary depending upon the nature  and  scope  of
    20  the different registration, licensure and permit activities.
    21    2. The total fees assessed pursuant to this chapter shall be set at an
    22  amount  that  will  generate  sufficient total revenue to, at a minimum,
    23  fully cover the total costs of administering this chapter.
    24    3. All registration and licensure fees shall be set on a scaled  basis
    25  by the board, dependent on the size and capacity of the business and for
    26  social  and  economic  equity  applicants  such  fees may be assessed to
    27  accomplish the goals of this chapter.
    28    4. The board shall deposit all fees collected in the  New  York  state
    29  cannabis  revenue fund established pursuant to section ninety-nine-hh of
    30  the state finance law.
    31    § 16. Violations  of  cannabis  laws  or  regulations;  penalties  and
    32  injunctions. 1. Any person who violates, disobeys or disregards any term
    33  or  provision  of  this  chapter or of any lawful notice, order or regu-
    34  lation pursuant thereto for which a civil or  criminal  penalty  is  not
    35  otherwise  expressly prescribed by law, shall be liable to the people of
    36  the state for a civil penalty of not to exceed five thousand dollars for
    37  every such violation.
    38    2. The penalty provided for in subdivision one of this section may  be
    39  recovered  by  an  action brought by the board in any court of competent
    40  jurisdiction.
    41    3. Such civil penalty may be released  or  compromised  by  the  board
    42  before  the  matter has been referred to the attorney general, and where
    43  such matter has been referred to the attorney general, any such  penalty
    44  may  be  released or compromised and any action commenced to recover the
    45  same may be settled and discontinued by the attorney  general  with  the
    46  consent of the board.
    47    4.  It  shall  be the duty of the attorney general upon the request of
    48  the board to bring an action for an injunction against  any  person  who
    49  violates,  disobeys  or disregards any term or provision of this chapter
    50  or of any lawful notice, order or regulation pursuant thereto; provided,
    51  however, that the executive director shall furnish the attorney  general
    52  with  such  material, evidentiary matter or proof as may be requested by
    53  the attorney general for the prosecution of such an action.
    54    5. It is the purpose of this section to provide additional and cumula-
    55  tive remedies, and nothing  herein  contained  shall  abridge  or  alter
    56  rights  of  action  or remedies now or hereafter existing, nor shall any

        A. 1617--C                         17

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

        A. 1617--C                         18

     1  tion  or  storage of adult-use cannabis, medical cannabis or cannabinoid
     2  hemp and hemp extract, or receive any commission or  profit  whatsoever,
     3  direct  or  indirect,  from  any  person  applying  for or receiving any
     4  license  or  permit  provided  for  in  this  chapter, or hold any other
     5  elected or appointed public office in the  state  or  in  any  political
     6  subdivision.  After  notice and opportunity to be heard, anyone found to
     7  have knowingly violated any of the provisions  of  this  section  shall,
     8  after  notice,  be removed and shall divest themselves of such direct or
     9  indirect interests, in addition to any other penalty provided by law.

    10                                  ARTICLE 3
    11                              MEDICAL CANNABIS

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

        A. 1617--C                         19

     1  consumption and any particular strain, variety, and quantity or percent-
     2  age of cannabis or particular active ingredient, and appropriate dosage.
     3  The  practitioner  may  state in the certification any recommendation or
     4  limitation  the  practitioner makes, in his or her professional opinion,
     5  concerning the appropriate form or forms of medical cannabis and dosage.
     6    4.  Every  practitioner  shall  consult  the  prescription  monitoring
     7  program  registry  prior  to  making or issuing a certification, for the
     8  purpose of reviewing  a  patient's  controlled  substance  history.  For
     9  purposes  of  this  section,  a practitioner may authorize a designee to
    10  consult the prescription monitoring  program  registry  on  his  or  her
    11  behalf,  provided  that  such  designation is in accordance with section
    12  thirty-three hundred forty-three-a of the public health law.
    13    5. The practitioner shall give  the  certification  to  the  certified
    14  patient, and place a copy in the patient's health care record.
    15    6.  No practitioner shall issue a certification under this section for
    16  themselves.
    17    7. A registry identification  card  based  on  a  certification  shall
    18  expire  one year after the date the certification is signed by the prac-
    19  titioner, except as provided for in subdivision eight of this section.
    20    8. (a) If the practitioner states in the certification  that,  in  the
    21  practitioner's  professional  opinion,  the  patient  would benefit from
    22  medical cannabis only until a specified earlier date, then the  registry
    23  identification  card  shall expire on that date; (b) if the practitioner
    24  states in the certification  that  in  the  practitioner's  professional
    25  opinion  the  patient is terminally ill and that the certification shall
    26  not expire until the patient dies, then the registry identification card
    27  shall state that the patient is terminally ill and that the registration
    28  card shall not expire until the patient dies; (c)  if  the  practitioner
    29  re-issues the certification to terminate the certification on an earlier
    30  date,  then  the  registry identification card shall expire on that date
    31  and shall be promptly destroyed by the certified  patient;  (d)  if  the
    32  certification  so provides, the registry identification card shall state
    33  any recommendation or limitation by the practitioner as to the  form  or
    34  forms  of  medical cannabis or dosage for the certified patient; and (e)
    35  the board shall make regulations to implement this subdivision.
    36    9. (a) A certification may be a special certification if, in  addition
    37  to  the  other requirements for a certification, the practitioner certi-
    38  fies in the certification that the patient's  condition  is  progressive
    39  and degenerative or that delay in the patient's certified medical use of
    40  cannabis poses a risk to the patient's life or health.
    41    (b)  The office shall create the form to be used for a special certif-
    42  ication and shall make that form available to  be  downloaded  from  the
    43  office's website.
    44    10.  Prior to issuing a certification a practitioner must complete, at
    45  a minimum, a two-hour course as determined by the board  in  regulation.
    46  For  the purposes of this article a person's status as a practitioner is
    47  deemed to be a  "license"  for  the  purposes  of  section  thirty-three
    48  hundred ninety of the public health law and shall be subject to the same
    49  revocation process.
    50    §  31. Lawful medical use. The possession, acquisition, use, delivery,
    51  transfer, transportation, or administration of  medical  cannabis  by  a
    52  certified patient, designated caregiver or the employees of a designated
    53  caregiver  facility,  for  certified  medical use, shall be lawful under
    54  this article provided that:
    55    1. the cannabis that may be possessed by a certified patient shall not
    56  exceed a sixty-day supply of the dosage if determined by the practition-

        A. 1617--C                         20

     1  er, consistent with any guidance and regulations issued  by  the  board,
     2  provided  that  during  the last seven days of any sixty-day period, the
     3  certified patient may also possess  up  to  such  amount  for  the  next
     4  sixty-day period;
     5    2.  the  cannabis  that may be possessed by designated caregivers does
     6  not exceed the quantities referred to in subdivision one of this section
     7  for each certified patient for whom  the  caregiver  possesses  a  valid
     8  registry identification card, up to five certified patients;
     9    3.  the cannabis that may be possessed by designated caregiver facili-
    10  ties does not exceed the quantities referred to in  subdivision  one  of
    11  this  section  for each certified patient under the care or treatment of
    12  the facility;
    13    4. the form or forms of medical cannabis that may be possessed by  the
    14  certified patient, designated caregiver or designated caregiver facility
    15  pursuant  to a certification shall be in compliance with any recommenda-
    16  tion or limitation by the practitioner  as  to  the  form  or  forms  of
    17  medical  cannabis  or  dosage  for  the certified patient in the certif-
    18  ication;
    19    5. the medical cannabis shall be kept in the original package in which
    20  it was dispensed under this article, except for the portion removed  for
    21  immediate  consumption  for  certified  medical  use  by  the  certified
    22  patient; and
    23    6. in the case  of  a  designated  caregiver  facility,  the  employee
    24  assisting  the  patient  has  been  designated as such by the designated
    25  caregiver facility.
    26    § 32. Registry identification cards.  1. Upon approval of the  certif-
    27  ication, the office shall issue registry identification cards for certi-
    28  fied  patients and designated caregivers. A registry identification card
    29  shall expire as provided in this article or  as  otherwise  provided  in
    30  this  section.    The office shall begin issuing registry identification
    31  cards as soon as practicable after the certifications required  by  this
    32  chapter are granted. The office may specify a form for a registry appli-
    33  cation,  in  which  case  the  office shall provide the form on request,
    34  reproductions of the form may be used, and the form shall  be  available
    35  for downloading from the board's or office's website.
    36    2.  To obtain, amend or renew a registry identification card, a certi-
    37  fied patient or designated caregiver shall file a  registry  application
    38  with  the  office, unless otherwise exempted by the board in regulation.
    39  The registry application or renewal application shall include:
    40    (a) in the case of a certified patient:
    41    (i) the patient's certification, a new written certification shall  be
    42  provided with a renewal application;
    43    (ii) the name, address, and date of birth of the patient;
    44    (iii) the date of the certification;
    45    (iv)  if  the  patient  has  a registry identification card based on a
    46  current valid certification,  the  registry  identification  number  and
    47  expiration date of that registry identification card;
    48    (v)  the  specified  date  until  which the patient would benefit from
    49  medical cannabis, if the certification states such a date;
    50    (vi) the name, address, and telephone number of the certifying practi-
    51  tioner;
    52    (vii) any recommendation or limitation by the practitioner as  to  the
    53  form or forms of medical cannabis or dosage for the certified patient;
    54    (viii) if the certified patient designates a designated caregiver, the
    55  name,  address, and date of birth of the designated caregiver, and other
    56  individual identifying information required by the board;

        A. 1617--C                         21

     1    (ix) if the designated caregiver is a cannabis research license holder
     2  under  this  chapter,  the  name  of  the  organization  conducting  the
     3  research,  the address, phone number, name of the individual leading the
     4  research or appropriate  designee,  and  other  identifying  information
     5  required by the board; and
     6    (x) other individual identifying information required by the office;
     7    (b) in the case of a designated caregiver:
     8    (i) the name, address, and date of birth of the designated caregiver;
     9    (ii)  if  the designated caregiver has a registry identification card,
    10  the registry identification number and expiration date of that  registry
    11  identification card; and
    12    (iii) other individual identifying information required by the office;
    13    (c)  a  statement  that  a  false statement made in the application is
    14  punishable under section 210.45 of the penal law;
    15    (d) the date of the application and the  signature  of  the  certified
    16  patient or designated caregiver, as the case may be;
    17    (e) any other requirements determined by the board.
    18    3. Where a certified patient is under the age of eighteen or otherwise
    19  incapable of consent:
    20    (a)  The  application for a registry identification card shall be made
    21  by the person responsible for  making  health  care  decisions  for  the
    22  patient.
    23    (b)  The designated caregiver shall be: (i) a parent or legal guardian
    24  of the certified patient; (ii) a person designated by a parent or  legal
    25  guardian;  (iii) an employee of a designated caregiver facility, includ-
    26  ing a cannabis research license holder; or (iv)  an  appropriate  person
    27  approved by the office upon a sufficient showing that no parent or legal
    28  guardian is appropriate or available.
    29    4.  No  person  may  be  a designated caregiver if the person is under
    30  twenty-one years of age unless a  sufficient  showing  is  made  to  the
    31  office  that  the  person  should  be permitted to serve as a designated
    32  caregiver. The requirements for such a showing shall  be  determined  by
    33  the board.
    34    5.  No  person may be a designated caregiver for more than five certi-
    35  fied patients at one time; provided, however, that this limitation shall
    36  not apply to a  designated  caregiver  facility,  or  cannabis  research
    37  license holder as defined by this chapter.
    38    6.  If  a  certified  patient wishes to change or terminate his or her
    39  designated caregiver, for whatever reason, the certified  patient  shall
    40  notify  the  office  as  soon  as  practicable. The office shall issue a
    41  notification to the designated caregiver that their registration card is
    42  invalid and must be promptly destroyed. The newly  designated  caregiver
    43  must comply with all requirements set forth in this section.
    44    7.  If the certification so provides, the registry identification card
    45  shall contain any recommendation or limitation by the practitioner as to
    46  the form or forms of  medical  cannabis  or  dosage  for  the  certified
    47  patient.
    48    8.  The  office shall issue separate registry identification cards for
    49  certified patients and designated caregivers as soon as reasonably prac-
    50  ticable after receiving  a  complete  application  under  this  section,
    51  unless  it  determines  that  the application is incomplete or factually
    52  inaccurate, in which case it shall promptly notify the applicant.
    53    9. If the application of a certified patient designates an  individual
    54  as a designated caregiver who is not authorized to be a designated care-
    55  giver, that portion of the application shall be denied by the office but
    56  that shall not affect the approval of the balance of the application.

        A. 1617--C                         22

     1    10. A registry identification card shall:
     2    (a)  contain the name of the certified patient or the designated care-
     3  giver as the case may be;
     4    (b) contain the date of issuance and expiration date of  the  registry
     5  identification card;
     6    (c) contain a registry identification number for the certified patient
     7  or  designated  caregiver, as the case may be and a registry identifica-
     8  tion number;
     9    (d) contain a photograph of the individual to whom the registry  iden-
    10  tification  card  is being issued, which shall be obtained by the office
    11  in a manner specified by the board in  regulations;  provided,  however,
    12  that if the office requires certified patients to submit photographs for
    13  this  purpose,  there  shall  be a reasonable accommodation of certified
    14  patients who are confined to their homes due to their medical conditions
    15  and may therefore have difficulty procuring photographs;
    16    (e) be a secure document as determined by the board;
    17    (f) plainly state any recommendation or limitation by the practitioner
    18  as to the form or forms of medical cannabis or dosage for the  certified
    19  patient; and
    20    (g) any other requirements determined by the board.
    21    11.  A certified patient or designated caregiver who has been issued a
    22  registry identification card shall notify the office of  any  change  in
    23  his or her name or address or, with respect to the patient, if he or she
    24  ceases  to have the condition noted on the certification within ten days
    25  of such change. The certified patient's or designated caregiver's regis-
    26  try identification card shall be deemed invalid and  shall  be  promptly
    27  destroyed.
    28    12.  If  a  certified patient or designated caregiver loses his or her
    29  registry identification card, he or she shall notify the  office  within
    30  ten days of losing the card. The office shall issue a new registry iden-
    31  tification card as soon as practicable, which may contain a new registry
    32  identification number, to the certified patient or designated caregiver,
    33  as the case may be.
    34    13.  The  office  shall maintain a confidential list of the persons to
    35  whom it has issued registry identification cards. Individual identifying
    36  information obtained by the office under this article shall be confiden-
    37  tial and exempt from disclosure under article six of the public officers
    38  law.
    39    14. The board shall verify to law enforcement personnel in  an  appro-
    40  priate case whether a registry identification card is valid.
    41    15.  If a certified patient or designated caregiver willfully violates
    42  any provision of this article as determined by the  board,  his  or  her
    43  certification  and  registry  identification  card  may  be suspended or
    44  revoked. This is in addition to any other penalty that may apply.
    45    16. The board shall make regulations for special certifications, which
    46  shall include expedited procedures and which may require  the  applicant
    47  to  submit  additional documentation establishing the clinical basis for
    48  the special certification. If the board has  not  established  and  made
    49  available  a  form for a registry application or renewal application, or
    50  established and made available a form  for  a  registry  application  or
    51  renewal  application,  then  in  the  case of a special certification, a
    52  registry application or renewal application that otherwise conforms with
    53  the requirements of this section shall not require the use of a form.
    54    § 33. Registration as a designated caregiver facility.  1. To  obtain,
    55  amend  or  renew  a registration as a designated caregiver facility, the

        A. 1617--C                         23

     1  facility shall file a registry application with the office. The registry
     2  application or renewal application shall include:
     3    (a) the facility's full name and address;
     4    (b) operating certificate or license number where appropriate;
     5    (c)  printed  name,  title,  and  signature  of an authorized facility
     6  representative;
     7    (d) a statement that the facility agrees to secure and  ensure  proper
     8  handling of all medical cannabis products;
     9    (e)  an  acknowledgement  that a false statement in the application is
    10  punishable under section 210.45 of the penal law; and
    11    (f) any other information that may be required by the board.
    12    2. Prior to issuing or renewing a designated caregiver facility regis-
    13  tration, the office may verify the information submitted by  the  appli-
    14  cant.  The applicant shall provide, at the office's request, such infor-
    15  mation and documentation, including any consents or authorizations  that
    16  may be necessary for the office to verify the information.
    17    3.  The  office shall approve, deny or determine incomplete or inaccu-
    18  rate an initial or renewal application within thirty days of receipt  of
    19  the  application.  If  the application is approved within the thirty-day
    20  period, the office shall issue a registration as soon as  is  reasonably
    21  practicable.
    22    4. An applicant shall have thirty days from the date of a notification
    23  of an incomplete or factually inaccurate application to submit the mate-
    24  rials  required  to  complete, revise or substantiate information in the
    25  application. If the applicant fails to  submit  the  required  materials
    26  within  such  thirty-day time period, the application shall be denied by
    27  the office.
    28    5. Registrations issued under this section shall remain valid for  two
    29  years from the date of issuance.
    30    § 34. Registered organizations.  1. A registered organization shall be
    31  a for-profit business entity or not-for-profit corporation organized for
    32  the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
    33  ing, transporting, distributing or  dispensing  cannabis  for  certified
    34  medical use.
    35    2.  The acquiring, possession, manufacture, sale, delivery, transport-
    36  ing, distributing or dispensing of  medical  cannabis  by  a  registered
    37  organization  under  this  article  in  accordance with its registration
    38  under this article or a renewal thereof shall be lawful under this chap-
    39  ter.
    40    3. Each registered organization shall  contract  with  an  independent
    41  laboratory  permitted by the board to test the medical cannabis produced
    42  by the registered organization. The board shall approve  the  laboratory
    43  used  by the registered organization and may require that the registered
    44  organization use a particular testing laboratory.  The board is  author-
    45  ized  to  issue  regulations requiring the laboratory to perform certain
    46  tests and services.
    47    4. (a) A registered organization may lawfully, in  good  faith,  sell,
    48  deliver,  distribute or dispense medical cannabis to a certified patient
    49  or designated caregiver upon presentation to the registered organization
    50  of a valid registry identification card for that  certified  patient  or
    51  designated  caregiver.   When presented with the registry identification
    52  card, the registered organization shall provide to the certified patient
    53  or designated caregiver a receipt, which shall state: the name, address,
    54  and registry identification number of the registered  organization;  the
    55  name and registry identification number of the certified patient and the
    56  designated caregiver, if any; the date the cannabis was sold; any recom-

        A. 1617--C                         24

     1  mendation  or  limitation by the practitioner as to the form or forms of
     2  medical cannabis or dosage for the certified patient; and the  form  and
     3  the quantity of medical cannabis sold. The registered organization shall
     4  retain  a  copy  of the registry identification card and the receipt for
     5  six years.
     6    (b) The proprietor of a registered organization shall file or cause to
     7  be filed any receipt and certification information with  the  office  by
     8  electronic  means  on  a  real-time  basis as the board shall require by
     9  regulation. When filing receipt and certification information  electron-
    10  ically  pursuant  to  this  paragraph,  the proprietor of the registered
    11  organization shall dispose of any electronically  recorded  prescription
    12  information in such manner as the board shall by regulation require.
    13    5.  (a)  No  registered  organization may sell, deliver, distribute or
    14  dispense to any certified patient or designated caregiver a quantity  of
    15  medical cannabis larger than that individual would be allowed to possess
    16  under this chapter.
    17    (b)  When dispensing medical cannabis to a certified patient or desig-
    18  nated caregiver, the registered organization:  (i) shall not dispense an
    19  amount greater than a sixty-day supply to a certified patient until  the
    20  certified  patient  has  exhausted  all  but a seven day supply provided
    21  pursuant to a previously issued certification; and (ii) shall verify the
    22  information in subparagraph (i) of  this  paragraph  by  consulting  the
    23  prescription monitoring program registry under this article.
    24    (c)  Medical  cannabis  dispensed to a certified patient or designated
    25  caregiver by a registered organization shall conform to any  recommenda-
    26  tion  or  limitation  by  the  practitioner  as  to the form or forms of
    27  medical cannabis or dosage for the certified patient.
    28    6. When a registered  organization  sells,  delivers,  distributes  or
    29  dispenses medical cannabis to a certified patient or designated caregiv-
    30  er,  it  shall provide to that individual a safety insert, which will be
    31  developed by the registered organization and approved by the  board  and
    32  include, but not be limited to, information on:
    33    (a) methods for administering medical cannabis,
    34    (b) any potential dangers stemming from the use of medical cannabis,
    35    (c) how to recognize what may be problematic usage of medical cannabis
    36  and obtain appropriate services or treatment for problematic usage, and
    37    (d) other information as determined by the board.
    38    7.   Registered organizations shall not be managed by or employ anyone
    39  who has been convicted within three years of the date of  hire,  of  any
    40  felony  related  to  the  functions  or  duties of operating a business,
    41  except that if the board determines that  the  manager  or  employee  is
    42  otherwise suitable to be hired, and hiring the manager or employee would
    43  not  compromise public safety, the board shall conduct a thorough review
    44  of the nature of the crime, conviction, circumstances, and  evidence  of
    45  rehabilitation  of the manager or employee, and shall evaluate the suit-
    46  ability of the manager or employee based on the evidence  found  through
    47  the  review.  In determining which offenses are substantially related to
    48  the functions or  duties  of  operating  a  business,  the  board  shall
    49  include, but not be limited to, the following:
    50    (a) a felony conviction involving fraud, money laundering, forgery and
    51  other unlawful conduct related to owning and operating a business; and
    52    (b)  a  felony  conviction  for  hiring, employing or using a minor in
    53  transporting, carrying, selling, giving away,  preparing  for  sale,  or
    54  peddling,  any  controlled  substance,  or  selling,  offering  to sell,
    55  furnishing, offering to furnish, administering, or giving any controlled
    56  substance to a minor.

        A. 1617--C                         25

     1    A felony conviction for the sale or possession of drugs, narcotics, or
     2  controlled substances is not  substantially  related.  This  subdivision
     3  shall  only apply to managers or employees who come into contact with or
     4  handle medical cannabis.
     5    8.  Manufacturing  of  medical  cannabis  by a registered organization
     6  shall only be done in an indoor, enclosed, secure  facility  located  in
     7  New  York state, which may include a greenhouse. The board shall promul-
     8  gate regulations establishing requirements for such facilities.
     9    9. Dispensing of medical cannabis by a registered  organization  shall
    10  only be done in an indoor, enclosed, secure facility located in New York
    11  state,  which may include a greenhouse. The board shall promulgate regu-
    12  lations establishing requirements for such facilities.
    13    10. A registered organization may contract with a person or entity  to
    14  provide  facilities,  equipment  or  services  that are ancillary to the
    15  registered organization's functions or  activities  under  this  article
    16  including,  but  not  limited  to,  shipping, maintenance, construction,
    17  repair, and security, provided that  the  person  or  entity  shall  not
    18  perform  any function or activity directly involving the planting, grow-
    19  ing, tending, harvesting, processing, or packaging of  cannabis  plants,
    20  medical  cannabis,  or  medical  cannabis products being produced by the
    21  registered organization; or any other function directly involving  manu-
    22  facturing  or  retailing  of  medical cannabis. All laws and regulations
    23  applicable to such facilities, equipment, or services shall apply to the
    24  contract. The registered organization and other parties to the  contract
    25  shall  each be responsible for compliance with such laws and regulations
    26  under the contract. The board may make regulations consistent with  this
    27  article relating to contracts and parties to contracts under this subdi-
    28  vision.
    29    11. A registered organization shall, based on the findings of an inde-
    30  pendent  laboratory,  provide  documentation  of the quality, safety and
    31  clinical strength of the medical cannabis manufactured or  dispensed  by
    32  the registered organization to the office and to any person or entity to
    33  which the medical cannabis is sold or dispensed.
    34    12.  A  registered  organization  shall be deemed to be a "health care
    35  provider" for the purposes of title two-D of article two of  the  public
    36  health law.
    37    13.  Medical  cannabis  shall  be  dispensed to a certified patient or
    38  designated caregiver in a  sealed  and  properly  labeled  package.  The
    39  labeling  shall  contain: (a) the information required to be included in
    40  the receipt provided to the certified patient or designated caregiver by
    41  the registered organization; (b) the packaging date; (c) any  applicable
    42  date  by  which the medical cannabis should be used; (d) a warning stat-
    43  ing, "This product is for medicinal use only. Women should  not  consume
    44  during  pregnancy  or  while  breastfeeding  except on the advice of the
    45  certifying health care practitioner, and in the  case  of  breastfeeding
    46  mothers,  including the infant's pediatrician. This product might impair
    47  the ability to drive. Keep out of reach of children."; (e) the amount of
    48  individual doses contained within; and (f) a warning  that  the  medical
    49  cannabis  must  be  kept  in  the  original  container  in  which it was
    50  dispensed.
    51    14. The board is authorized to make rules and regulations  restricting
    52  the advertising and marketing of medical cannabis.
    53    §  35.  Registering  of registered organizations.  1. (a) An applicant
    54  for registration as a registered organization under section  thirty-four
    55  of  this  article shall include such information prepared in such manner
    56  and detail as the board may require, including but not limited to:

        A. 1617--C                         26

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

        A. 1617--C                         27

     1    (C)   whether  the  registered  organization  provides  education  and
     2  outreach to practitioners;
     3    (D)  whether  the  registered  organization  promotes the research and
     4  development of medical cannabis and patient outreach; and
     5    (E) the affordability of medical  cannabis  products  offered  by  the
     6  registered organization;
     7    (vi) the applicant and its managing officers are of good moral charac-
     8  ter;
     9    (vii)  the  applicant  has entered into a labor peace agreement with a
    10  bona fide labor organization that is actively engaged in representing or
    11  attempting to represent the applicant's employees; and  the  maintenance
    12  of  such  a labor peace agreement shall be an ongoing material condition
    13  of registration; and
    14    (viii) the applicant satisfies any other conditions as  determined  by
    15  the board.
    16    (b)  If the board is not satisfied that the applicant should be issued
    17  a registration, he or she shall notify the applicant in writing of those
    18  factors upon which further evidence is required. Within thirty  days  of
    19  the  receipt  of  such notification, the applicant may submit additional
    20  material to the board or demand a hearing, or both.
    21    (c) The fee for a registration under this section shall be  an  amount
    22  determined by the board in regulations; provided, however, if the regis-
    23  tration  is  issued for a period greater than two years the fee shall be
    24  increased, pro rata, for each additional month of validity.
    25    (d) Registrations issued under this section shall  be  effective  only
    26  for the registered organization and shall specify:
    27    (i) the name and address of the registered organization;
    28    (ii)  which  activities  of a registered organization are permitted by
    29  the registration;
    30    (iii) the land, buildings and facilities that  may  be  used  for  the
    31  permitted activities of the registered organization; and
    32    (iv)  such  other information as the board shall reasonably provide to
    33  assure compliance with this article.
    34    (e) Upon application of a registered organization, a registration  may
    35  be  amended  to allow the registered organization to relocate within the
    36  state or to add or delete permitted registered  organization  activities
    37  or  facilities.  The  fee  for such amendment shall be two hundred fifty
    38  dollars.
    39    4. A registration issued under this section shall  be  valid  for  two
    40  years  from  the  date  of issue, except that in order to facilitate the
    41  renewals of such registrations, the board may upon the initial  applica-
    42  tion for a registration, issue some registrations which may remain valid
    43  for  a  period of time greater than two years but not exceeding an addi-
    44  tional eleven months.
    45    5.  (a) An application for the  renewal  of  any  registration  issued
    46  under  this  section  shall  be  filed  with the board not more than six
    47  months nor less than four months prior  to  the  expiration  thereof.  A
    48  late-filed  application  for  the  renewal of a registration may, in the
    49  discretion of the board, be treated as an  application  for  an  initial
    50  license.
    51    (b)  The  application  for  renewal  shall  include  such  information
    52  prepared in the manner and detail as the board  may  require,  including
    53  but not limited to:
    54    (i)  any  material  change  in  the circumstances or factors listed in
    55  subdivision one of this section; and

        A. 1617--C                         28

     1    (ii) every known charge or investigation, pending or concluded  during
     2  the  period  of  the registration, by any governmental or administrative
     3  agency with respect to:
     4    (A)  each  incident  or alleged incident involving the theft, loss, or
     5  possible diversion of medical cannabis manufactured  or  distributed  by
     6  the applicant; and
     7    (B)  compliance  by  the  applicant  with  the  laws of the state with
     8  respect to any substance listed in section thirty-three hundred  six  of
     9  the public health law.
    10    (c)  An  applicant  for  renewal  shall  be under a continuing duty to
    11  report to the board any change in facts or  circumstances  reflected  in
    12  the  application  or  any  newly discovered or occurring fact or circum-
    13  stance which is required to be included in the application.
    14    (d) If the board is not satisfied  that  the  registered  organization
    15  applicant  is entitled to a renewal of the registration, the board shall
    16  within a reasonably practicable time  as  determined  by  the  executive
    17  director,  serve  upon  the  registered  organization or its attorney of
    18  record in person or by registered or certified mail an  order  directing
    19  the  registered  organization  to  show  cause  why  its application for
    20  renewal should not be denied. The order  shall  specify  in  detail  the
    21  respects  in  which  the  applicant has not satisfied the board that the
    22  registration should be renewed.
    23    (e) Within a reasonably practicable time as determined by the board of
    24  such order, the applicant may submit additional material to the board or
    25  demand a hearing or both; if a hearing is demanded the board shall fix a
    26  date as soon as reasonably practicable.
    27    6. (a) The board shall renew a registration unless he  or  she  deter-
    28  mines and finds that:
    29    (i)  the  applicant  is  unlikely  to  maintain or be able to maintain
    30  effective control against diversion;
    31    (ii) the applicant is unlikely to comply with all state laws  applica-
    32  ble to the activities in which it may engage under the registration;
    33    (iii)  it  is  not  in  the  public interest to renew the registration
    34  because the number of registered organizations in an area  is  excessive
    35  to reasonably serve the area; or
    36    (iv)  the  applicant has either violated or terminated its labor peace
    37  agreement.
    38    (b) For purposes of this section, proof that  a  registered  organiza-
    39  tion,  during  the  period  of  its registration, has failed to maintain
    40  effective control against diversion,  violates  any  provision  of  this
    41  article,  or has knowingly or negligently failed to comply with applica-
    42  ble state laws relating to the activities in which it engages under  the
    43  registration,  shall  constitute  grounds for suspension, termination or
    44  limitation of the registered organization's registration  or  as  deter-
    45  mined  by  the  board. The registered organization shall also be under a
    46  continuing duty to report to the authority any material change  or  fact
    47  or  circumstance to the information provided in the registered organiza-
    48  tion's application.
    49    7. The board may suspend or terminate the registration of a registered
    50  organization, on grounds and using procedures under this article  relat-
    51  ing  to  a  license,  to  the extent consistent with this article.   The
    52  authority shall suspend or terminate the registration in the event  that
    53  a  registered  organization  violates or terminates the applicable labor
    54  peace agreement. Conduct in  compliance  with  this  article  which  may
    55  violate  conflicting  federal  law,  shall  not be grounds to suspend or
    56  terminate a registration.

        A. 1617--C                         29

     1    8. A registered organization that manufactures  medical  cannabis  may
     2  have  no  more  than  four dispensing sites wholly owned and operated by
     3  such registered organization. Such registered organization may  have  an
     4  additional  four dispensing sites; provided, however, that the first two
     5  additional  dispensing sites shall be located in underserved or unserved
     6  geographic locations, as determined by the board. The board shall ensure
     7  that such registered organizations and dispensing  sites  are  geograph-
     8  ically  distributed  across  the state and that their ownership reflects
     9  the demographics of the  state.  The  board  shall  register  additional
    10  registered organizations to provide services to unserved and underserved
    11  areas  of the state. Additional registered organization shall be reflec-
    12  tive of the demographics of the state.
    13    § 36. Reports of registered organizations.   1. The  board  shall,  by
    14  regulation,  require each registered organization to file reports by the
    15  registered organization during a  particular  period.  The  board  shall
    16  determine the information to be reported and the forms, time, and manner
    17  of the reporting.
    18    2.  The  board shall, by regulation, require each registered organiza-
    19  tion to adopt and maintain security, tracking,  record  keeping,  record
    20  retention  and surveillance systems, relating to all medical cannabis at
    21  every stage  of  acquiring,  possession,  manufacture,  sale,  delivery,
    22  transporting,  distributing,  or  dispensing by the registered organiza-
    23  tion, subject to regulations of the board.
    24    § 37. Evaluation; research programs; report by board.   1.  The  board
    25  may  provide  for  the  analysis and evaluation of the operation of this
    26  article. The board may enter into agreements with one or  more  persons,
    27  not-for-profit  corporations or other organizations, for the performance
    28  of an evaluation of the implementation and effectiveness of  this  arti-
    29  cle.
    30    2. The board may develop, seek any necessary federal approval for, and
    31  carry out research programs relating to medical use of cannabis. Partic-
    32  ipation  in  any such research program shall be voluntary on the part of
    33  practitioners, patients, and designated caregivers.
    34    3. The board shall report every two years, beginning two  years  after
    35  the  effective date of this article, to the governor and the legislature
    36  on the medical use of cannabis under this article and  make  appropriate
    37  recommendations.
    38    §  38.  Cannabis  research  license.    1. The board shall establish a
    39  cannabis research license that permits a licensee to  produce,  process,
    40  purchase  and  possess  cannabis  for  the  following  limited  research
    41  purposes:
    42    (a) to test chemical potency and composition levels;
    43    (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
    44  products;
    45    (c)  to  conduct  research on the efficacy and safety of administering
    46  cannabis as part of medical treatment; and
    47    (d) to conduct genomic or agricultural research.
    48    2. As part of the application process for a cannabis research license,
    49  an applicant must submit to the board a description of the research that
    50  is intended to be conducted as well as the  amount  of  cannabis  to  be
    51  grown  or  purchased.  The  board  shall  review an applicant's research
    52  project and determine whether it meets the requirements  of  subdivision
    53  one of this section. In addition, the board shall assess the application
    54  based on the following criteria:
    55    (a) project quality, study design, value, and impact;

        A. 1617--C                         30

     1    (b)  whether  the  applicant has the appropriate personnel, expertise,
     2  facilities and infrastructure, funding,  and  human,  animal,  or  other
     3  approvals in place to successfully conduct the project; and
     4    (c)  whether  the  amount  of cannabis to be grown or purchased by the
     5  applicant is consistent with the  project's  scope  and  goals.  If  the
     6  office  determines  that the research project does not meet the require-
     7  ments of subdivision one  of  this  section,  the  application  must  be
     8  denied.
     9    3. A cannabis research licensee may only sell cannabis grown or within
    10  its operation to other cannabis research licensees. The board may revoke
    11  a cannabis research license for violations of this section.
    12    4.  A  cannabis  research licensee may contract with an institution of
    13  higher education, including but not limited to  a  hospital  within  the
    14  state  university  of  New York, to perform research in conjunction with
    15  such institution.   All  research  projects,  entered  into  under  this
    16  section  must  be  approved  by  the  board and meet the requirements of
    17  subdivision one of this section.
    18    5. In establishing a cannabis research license, the  board  may  adopt
    19  regulations on the following:
    20    (a) application requirements;
    21    (b)  cannabis research license renewal requirements, including whether
    22  additional research projects may be added or considered;
    23    (c) conditions for license revocation;
    24    (d) security measures to ensure cannabis is not diverted  to  purposes
    25  other than research;
    26    (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
    27  cannabis-infused products a licensee may have on its premises;
    28    (f) licensee reporting requirements;
    29    (g) conditions under which cannabis grown by licensed cannabis produc-
    30  ers and other product types from licensed  cannabis  processors  may  be
    31  donated to cannabis research licensees; and
    32    (h) any additional requirements deemed necessary by the board.
    33    6. A cannabis research license issued pursuant to this section must be
    34  issued  in  the  name of the applicant and specify the location at which
    35  the cannabis researcher intends to operate, which  must  be  within  the
    36  state of New York.
    37    7. The application fee for a cannabis research license shall be deter-
    38  mined by the board on an annual basis.
    39    8. Each cannabis research licensee shall issue an annual report to the
    40  board. The board shall review such report and make a determination as to
    41  whether  the  research project continues to meet the research qualifica-
    42  tions under this section.
    43    § 39. Registered organizations and adult-use cannabis. The board shall
    44  have the authority to grant some or all of the registered  organizations
    45  registered with the department of health and currently registered and in
    46  good  standing with the office, the ability to obtain adult-use cannabis
    47  licenses pursuant to article four of this chapter subject to  any  fees,
    48  rules or conditions prescribed by the board in regulation.
    49    § 40. Relation to other laws.  1. The provisions of this article shall
    50  apply,  except  that  where  a  provision of this article conflicts with
    51  another provision of this chapter, this article shall apply.
    52    2. Medical cannabis shall not be deemed to be a "drug" for purposes of
    53  article one hundred thirty-seven of the education law.
    54    § 41. Home cultivation of medical  cannabis.  1.  Notwithstanding  the
    55  provisions  of  section  thirty-three  hundred  eighty-two of the public

        A. 1617--C                         31

     1  health law certified patients and their designated caregiver(s)  twenty-
     2  one years of age or older may:
     3    (a)  plant,  cultivate,  harvest, dry, process or possess no more than
     4  six mature cannabis plants at any one time; or
     5    (b) plant, cultivate, harvest, dry, process or possess, within his  or
     6  her  private  residence,  or  on the grounds of his or her private resi-
     7  dence, no more than six mature cannabis plants at any one time.
     8    2. Any mature cannabis plant described  in  subdivision  one  of  this
     9  section,  and any cannabis produced by any such cannabis plant or plants
    10  in excess of three ounces, cultivated, harvested,  dried,  processed  or
    11  possessed  pursuant  to  subdivision  one  of this section shall, unless
    12  otherwise authorized by law or regulation, be stored  except  for  inci-
    13  dental  periods  within such person's private residence or storage space
    14  or on the grounds of such person's private residence or  storage  space.
    15  Such  person  shall  take  reasonable steps designed to assure that such
    16  cultivated cannabis is in a secured place.
    17    3. A county, town, city or village may enact and  enforce  regulations
    18  to  reasonably regulate the actions and conduct set forth in subdivision
    19  one of this section; provided that:
    20    (a) a violation of any such a regulation, as approved by such  county,
    21  town,  city  or  village enacting the regulation, may constitute no more
    22  than an infraction and may be punishable by no more than a discretionary
    23  civil penalty of two hundred dollars or less; and
    24    (b) no county, town, city or village may enact  or  enforce  any  such
    25  regulation  or regulations that may completely or essentially prohibit a
    26  person from engaging in the action or conduct authorized by  subdivision
    27  one of this section.
    28    4.  A  violation  of  subdivision  one  or  two of this section may be
    29  subject to a civil penalty of up to one hundred twenty-five dollars.
    30    5. The board  shall  develop  rules  and  regulations  governing  this
    31  section within one year of the effective date of this section.
    32    §  42.  Protections  for  the  medical  use  of cannabis. 1. Certified
    33  patients, designated caregivers,  designated  caregiver  facilities  and
    34  employees  of designated caregiver facilities, practitioners, registered
    35  organizations and the employees of registered organizations, and  canna-
    36  bis  researchers shall not be subject to arrest, prosecution, or penalty
    37  in any manner, or denied any  right  or  privilege,  including  but  not
    38  limited to civil penalty or disciplinary action by a business or occupa-
    39  tional  or professional licensing board or bureau, solely for the certi-
    40  fied medical use or manufacture of cannabis, or for any other action  or
    41  conduct in accordance with this article.
    42    2. Being a certified patient shall be deemed to be having a "disabili-
    43  ty"  under  article fifteen of the executive law, section forty-c of the
    44  civil rights law, sections 240.00, 485.00, and 485.05 of the penal  law,
    45  and section 200.50 of the criminal procedure law. This subdivision shall
    46  not  bar  the  enforcement  of  a  policy  prohibiting  an employee from
    47  performing his or her employment duties while impaired by  a  controlled
    48  substance. This subdivision shall not require any person or entity to do
    49  any  act  that  would  put  the  person or entity in direct violation of
    50  federal law or cause it to lose a federal contract or funding.
    51    3. The fact that a person is a  certified  patient  and/or  acting  in
    52  accordance with this article, shall not be a consideration in a proceed-
    53  ing  pursuant  to applicable sections of the domestic relations law, the
    54  social services law and the family court act.
    55    4. (a) Certification applications, certification forms, any  certified
    56  patient  information contained within a database, and copies of registry

        A. 1617--C                         32

     1  identification cards shall be deemed exempt from public disclosure under
     2  sections eighty-seven and eighty-nine of the public officers law.
     3    (b)  The  name, contact information, and other information relating to
     4  practitioners registered with the board  under  this  article  shall  be
     5  public information and shall be maintained on the board's website acces-
     6  sible to the public in searchable form. However, if a practitioner noti-
     7  fies  the  board in writing that he or she does not want his or her name
     8  and other information disclosed,  that  practitioner's  name  and  other
     9  information  shall thereafter not be public information or maintained on
    10  the board's website, unless the practitioner cancels the request.
    11    5. A person currently under parole, probation or other state or  local
    12  supervision,  or  released on bail awaiting trial may not be punished or
    13  otherwise penalized for conduct allowed under this article.
    14    § 43. Regulations. The board shall promulgate regulations in consulta-
    15  tion with the cannabis advisory board to implement this article.
    16    § 44. Suspend; terminate. Based upon the recommendation of the  board,
    17  executive  director and/or the superintendent of state police that there
    18  is a risk to the public health or safety, the governor  may  immediately
    19  suspend or terminate all licenses issued to registered organizations.
    20    §  45. Pricing. Registered organizations shall submit documentation to
    21  the executive director of any change in pricing per dose for any medical
    22  cannabis product within fifteen days of such change. Prior  approval  by
    23  the  executive  director  shall  not  be  required  for any such change;
    24  provided however that the board is authorized to modify  the  price  per
    25  dose  for  any  medical cannabis product if necessary to maintain public
    26  access to appropriate medication.

    27                                  ARTICLE 4
    28                             ADULT-USE CANNABIS

    29  Section 61.   License application.
    30          62.   Information to be requested in applications for licenses.
    31          63.   Fees.
    32          64.   Selection criteria.
    33          65.   Limitations of licensure; duration.
    34          66.   License renewal.
    35          67.   Amendments; changes in ownership and organizational struc-
    36                  ture.
    37          68.   Adult-use cultivator license.
    38          68-a. Registered  organization  adult-use  cultivator  processor
    39                  distributor retail dispensary license.
    40          68-b. Registered organization adult-use cultivator license.
    41          69.   Adult-use processor license.
    42          70.   Small business adult-use cooperative license.
    43          71.   Adult-use distributor license.
    44          72.   Adult-use retail dispensary license.
    45          73.   Microbusiness license.
    46          74.   Delivery license.
    47          75.   Nursery license.
    48          76.   Notification to municipalities of adult-use retail dispen-
    49                  sary or on-site consumption license.
    50          77.   Adult-use  on-site consumption license; provisions govern-
    51                  ing on-site consumption licenses.
    52          78.   Record keeping and tracking.
    53          79.   Inspections and ongoing requirements.

        A. 1617--C                         33

     1          80.   Adult-use cultivators, processors or distributors  not  to
     2                  be interested in retail dispensaries.
     3          81.   Packaging and labeling of adult-use cannabis products.
     4          82.   Laboratory testing.
     5          83.   Provisions  governing  the  cultivation  and processing of
     6                  adult-use cannabis.
     7          84.   Provisions governing the distribution of adult-use  canna-
     8                  bis.
     9          85.   Provisions  governing adult-use cannabis retail dispensar-
    10                  ies.
    11          86.   Adult-use cannabis advertising.
    12          87.   Social and economic equity, minority and women-owned busi-
    13                  nesses,  disadvantaged  farmers   and   service-disabled
    14                  veterans; incubator program.
    15          88.   Data collection and reporting.
    16          89.   Regulations.
    17    § 61. License  application. 1. Any person may apply to the board for a
    18  license to cultivate, process, distribute or  dispense  cannabis  within
    19  this  state  for sale. Such application shall be in writing and verified
    20  and shall contain such information as  the  board  shall  require.  Such
    21  application  shall  be  accompanied  by  a check or draft for the amount
    22  required by this article for such license. If the  board  shall  approve
    23  the  application,  it  shall  issue  a  license in such form as shall be
    24  determined by its rules. Such license shall contain a description of the
    25  licensed premises and in form and in substance shall be a license to the
    26  person therein specifically designated to cultivate,  process,  distrib-
    27  ute,  deliver  or dispense cannabis in the premises therein specifically
    28  licensed.
    29    2. Except as otherwise provided in this article,  a  separate  license
    30  shall  be  required  for each facility at which cultivation, processing,
    31  distribution or retail dispensing is conducted.
    32    3. An applicant shall not be denied a license under this article based
    33  solely on a conviction for a violation of article two hundred twenty  or
    34  section  240.36  of the penal law, prior to the date article two hundred
    35  twenty-one of the penal law took effect, a conviction for a violation of
    36  article two hundred twenty-one of the penal law, or a conviction  for  a
    37  violation  of  article two hundred twenty-two of the penal law after the
    38  effective date of this chapter.
    39    § 62. Information to be requested in applications for  licenses.    1.
    40  The  board  shall have the authority to prescribe the manner and form in
    41  which an application must be submitted to the board for licensure  under
    42  this article.
    43    2. The board is authorized to adopt regulations, including by emergen-
    44  cy  rule, establishing information which must be included on an applica-
    45  tion for licensure under this article. Such information may include, but
    46  is not limited to:  information about the applicant's identity,  includ-
    47  ing  racial  and ethnic diversity; ownership and investment information,
    48  including the corporate structure; evidence  of  good  moral  character,
    49  including  the  submission of fingerprints by the applicant to the divi-
    50  sion of criminal justice services; information about the premises to  be
    51  licensed;  financial statements; and any other information prescribed by
    52  regulation.
    53    3. All license applications shall be signed by the  applicant  (if  an
    54  individual),  by  a managing member (if a limited liability company), by
    55  an officer (if a corporation), or by all partners  (if  a  partnership).

        A. 1617--C                         34

     1  Each  person  signing such application shall verify or affirm it as true
     2  under the penalties of perjury.
     3    4. All license or permit applications shall be accompanied by a check,
     4  draft or other forms of payment as the board may require or authorize in
     5  the amount required by this article for such license or permit.
     6    5.  If  there  are any changes, after the filing of the application or
     7  the granting of a license or permit, in any of the facts required to  be
     8  set forth in such application, a supplemental statement giving notice of
     9  such change, cost and source of money involved in the change, duly veri-
    10  fied  or  affirmed,  shall be filed with the board within ten days after
    11  such change. Failure to do so shall, if willful and deliberate, be cause
    12  for denial or revocation of the license.
    13    6. In giving any notice, or taking any action in reference to a regis-
    14  tered organization or licensee of a licensed  premises,  the  board  may
    15  rely  upon  the  information  furnished  in  such application and in any
    16  supplemental statement connected therewith, and such information may  be
    17  presumed  to  be correct, and shall be binding upon registered organiza-
    18  tions, licensee or licensed premises  as  if  correct.  All  information
    19  required  to be furnished in such application or supplemental statements
    20  shall be deemed material in any prosecution for perjury, any  proceeding
    21  to  revoke,  cancel  or  suspend  any  license, and in the board's final
    22  determination to approve or deny the license.
    23    § 63. Fees. 1. The board shall have the authority to charge applicants
    24  for licensure under this article a non-refundable application fee.  Such
    25  fee  may  be  based  on the type of licensure sought, cultivation and/or
    26  production volume, or any other factors deemed reasonable and  appropri-
    27  ate by the board to achieve the policy and purpose of this chapter.
    28    1-a.  The  board  shall also have the authority to assess a registered
    29  organization with a one-time special  licensing  fee  for  a  registered
    30  organization   adult-use   cultivator,  processor,  distributor,  retail
    31  dispensary license.   Such  fee  shall  be  assessed  at  an  amount  to
    32  adequately  fund  social  and  economic  equity and incubator assistance
    33  pursuant to this article and  paragraph  (c)  of  subdivision  three  of
    34  section  ninety-nine-hh  of  the state finance law.   Provided, however,
    35  that the board shall not  allow  registered  organizations  to  dispense
    36  adult-use  cannabis  from  more  than  three  of  their medical cannabis
    37  dispensing locations.  The timing and manner in which registered  organ-
    38  izations may be granted such authority shall be determined by  the board
    39  in regulation.
    40    2.  The  board shall have the authority to charge licensees a biennial
    41  license fee. Such fee shall be based on the amount  of  cannabis  to  be
    42  cultivated,  processed,  distributed and/or dispensed by the licensee or
    43  the gross annual receipts of the licensee for the previous license peri-
    44  od, and any other factors  deemed  reasonable  and  appropriate  by  the
    45  board.
    46    3. The board shall waive or reduce fees for social and economic equity
    47  applicants.
    48    §  64. Selection criteria.  1. The board shall develop regulations for
    49  determining whether or not an applicant should be granted the  privilege
    50  of  an initial adult-use cannabis license, based on, but not limited to,
    51  the following criteria:
    52    (a) the applicant is a social and economic equity applicant;
    53    (b) the applicant will be able to maintain effective  control  against
    54  the illegal diversion of cannabis;
    55    (c)  the  applicant  will  be able to comply with all applicable state
    56  laws and regulations;

        A. 1617--C                         35

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

        A. 1617--C                         36

     1    2. If the board is not satisfied that the applicant should be issued a
     2  license, the executive director shall notify the applicant in writing of
     3  the specific reason or reasons recommended by the board for denial.
     4    3.  The  state  cannabis  advisory  board  shall have the authority to
     5  recommend to the board the number of licenses issued  pursuant  to  this
     6  article  to ensure a competitive market where no licensee is dominant in
     7  the statewide marketplace or in any individual category of licensing, to
     8  actively promote and potentially  license  social  and  economic  equity
     9  applicants, and carry out the goals of this chapter.
    10    §  65.  Limitations of licensure; duration.  1. No license of any kind
    11  may be issued to a person under the age of twenty-one years,  nor  shall
    12  any licensee employ anyone under the age of twenty-one years.
    13    2. No licensee shall sell, deliver, or give away or cause or permit or
    14  procure  to  be  sold,  delivered or given away any cannabis or cannabis
    15  product to any person, actually or apparently, under the age of  twenty-
    16  one years unless the person under twenty-one is also a certified patient
    17  and  the  licensee is appropriately licensed under article three of this
    18  chapter.
    19    3. The board, on the recommendation  of  the  office  shall  have  the
    20  authority  to  limit,  by  canopy,  plant count, square footage or other
    21  means, the amount of cannabis allowed to be grown,  processed,  distrib-
    22  uted or sold by a licensee.
    23    4.  All  licenses  under this article shall expire two years after the
    24  date of issue.
    25    § 66. License renewal.  1. Each license, issued pursuant to this arti-
    26  cle, may be renewed upon application therefore by the licensee  and  the
    27  payment  of  the  fee for such license as prescribed by this article. In
    28  the case of applications for renewals, the board may dispense  with  the
    29  requirements of such statements as it deems unnecessary in view of those
    30  contained  in  the application made for the original license, but in any
    31  event the submission of photographs of the licensed  premises  shall  be
    32  dispensed  with,  provided  the  applicant for such renewal shall file a
    33  statement with the board to the effect that there has been no alteration
    34  of such premises since the original license was issued.  The  board  may
    35  make  such rules as it deems necessary, not inconsistent with this chap-
    36  ter, regarding applications for renewals of licenses and permits and the
    37  time for making the same.
    38    2. Each applicant must  submit  to  the  board  documentation  of  the
    39  racial,  ethnic,  and  gender diversity of the applicant's employees and
    40  owners prior to a license being renewed. In addition,  the  board  shall
    41  consult  with  the  state  cannabis  advisory board and the chief equity
    42  officer to create a social responsibility framework agreement  and  make
    43  the  adherence  to  such  agreement a conditional requirement of license
    44  renewal.  The board shall promote applicants that foster racial, ethnic,
    45  and gender diversity in their workplace.
    46    3. The board shall provide an application for  renewal  of  a  license
    47  issued under this article not less than ninety days prior to the expira-
    48  tion of the current license.
    49    4.  The  board  may  only  issue a renewal license upon receipt of the
    50  prescribed renewal application and renewal fee from a  licensee  if,  in
    51  addition  to the criteria in this section, the licensee's license is not
    52  under suspension and has not been revoked.
    53    5. Each applicant must maintain a labor peace agreement with  a  bona-
    54  fide  labor  organization  that  is  actively engaged in representing or
    55  attempting to represent the applicant's employees and the maintenance of

        A. 1617--C                         37

     1  such a labor peace agreement shall be an ongoing material  condition  of
     2  licensure.
     3    6. Each applicant must provide evidence of the execution of their plan
     4  for  benefitting  communities  and  people disproportionally impacted by
     5  cannabis law enforcement required  for  initial  licensing  pursuant  to
     6  section sixty-four of this article.
     7    §  67.  Amendments; changes in ownership and organizational structure.
     8  1. Licenses issued pursuant to this article shall specify:
     9    (a) the name and address of the licensee;
    10    (b) the activities permitted by the license;
    11    (c) the land, buildings and  facilities  that  may  be  used  for  the
    12  licensed activities of the licensee;
    13    (d) a unique license number issued by the board to the licensee; and
    14    (e) such other information as the board shall deem necessary to assure
    15  compliance with this chapter.
    16    2.  Upon  application  of  a  licensee  to the board, a license may be
    17  amended to allow the licensee to relocate within the state,  to  add  or
    18  delete  licensed  activities or facilities, or to amend the ownership or
    19  organizational structure of the entity that is the licensee.  The  board
    20  shall establish a fee for such amendments.
    21    3.  A  license shall become void by a change in ownership, substantial
    22  corporate change or location  without  prior  written  approval  of  the
    23  board.  The  board may promulgate regulations allowing for certain types
    24  of changes in ownership without the need for prior written approval.
    25    4. For purposes of this section, "substantial corporate change"  shall
    26  mean:
    27    (a) for a corporation, a change of eighty percent or more of the offi-
    28  cers  and/or directors, or a transfer of eighty percent or more of stock
    29  of such corporation, or an existing stockholder obtaining eighty percent
    30  or more of the stock of such corporation; or
    31    (b) for a limited liability company, a change  of  eighty  percent  or
    32  more  of  the  managing  members of the company, or a transfer of eighty
    33  percent or more of ownership interest in said company,  or  an  existing
    34  member obtaining a cumulative of eighty percent or more of the ownership
    35  interest in said company; or
    36    (c)  for  a  partnership,  a  change  of eighty percent or more of the
    37  managing partners of the company, or a transfer  of  eighty  percent  or
    38  more  of  ownership  interest  in  said  company,  or an existing member
    39  obtaining a cumulative of eighty percent or more of the ownership inter-
    40  est in said company.
    41    § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
    42  license  shall  authorize  the  acquisition,  possession,  distribution,
    43  cultivation and sale of cannabis  from  the  licensed  premises  of  the
    44  adult-use  cultivator  by  such  licensee to duly licensed processors in
    45  this state.  The  board  may  establish  regulations  allowing  licensed
    46  adult-use  cultivators  to  perform  certain types of minimal processing
    47  without the need for an adult-use processor license.
    48    2. For purposes of this section, cultivation shall include, but not be
    49  limited to, the agricultural production practices of planting,  growing,
    50  cloning, harvesting, drying, curing, grading and trimming of cannabis.
    51    3.  A  person holding an adult-use cultivator's license may apply for,
    52  and obtain, one processor's license.
    53    4. A person holding an adult-use cultivator's  license  may  not  also
    54  hold  a retail dispensary license pursuant to this article and no adult-
    55  use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
    56  including  by stock ownership, interlocking directors, mortgage or lien,

        A. 1617--C                         38

     1  personal or real property, or any other means, in any premises  licensed
     2  as  an  adult-use cannabis retail dispensary or in any business licensed
     3  as an adult-use cannabis retail dispensary or in any  registered  organ-
     4  ization registered pursuant to article three of this chapter.
     5    5.  A  person holding an adult-use cultivator's license may not hold a
     6  license to distribute cannabis under this article.
     7    6. No person may have a direct or indirect  financial  or  controlling
     8  interest  in  more than one adult-use cultivator license issued pursuant
     9  to this chapter.
    10    §  68-a.    Registered  organization  adult-use  cultivator  processor
    11  distributor  retail dispensary license. A registered organization culti-
    12  vator processor distributor retail dispensary  license  shall  have  the
    13  same  authorization  and  conditions  as adult-use cultivator, adult-use
    14  processor,  adult-use  distributor  and  adult-use   retail   dispensary
    15  licenses  issued  pursuant  to  this  article provided, however that the
    16  sales of adult-use cannabis and cannabis products cultivated,  processed
    17  or  distributed  by such organizations shall be limited to the organiza-
    18  tion's adult-use retail dispensaries and the location of such  adult-use
    19  dispensaries  shall  be limited to the organization's medical dispensar-
    20  ies' premises and facilities authorized pursuant  to  article  three  of
    21  this  chapter.  Provided further that such registered organization shall
    22  maintain its medical cannabis  license  and  continue  offering  medical
    23  cannabis to a degree established by regulation of the board.
    24    § 68-b. Registered organization adult-use cultivator license. A regis-
    25  tered  organization cultivator license shall have the same authorization
    26  and conditions as an adult-use cultivator  license,  provided,  however,
    27  that sales of adult-use cannabis and cannabis products by such organiza-
    28  tions shall be limited to licensed adult-use processors and such license
    29  does not qualify such organization for any other adult-use license.
    30    §  69.  Adult-use  processor license.   1. A processor's license shall
    31  authorize the acquisition, possession, processing and sale  of  cannabis
    32  from  the licensed premises of the adult-use cultivator by such licensee
    33  to duly licensed distributors.
    34    2. For purposes of this section, processing shall include, but not  be
    35  limited  to, blending, extracting, infusing, packaging, labeling, brand-
    36  ing and otherwise making  or  preparing  cannabis  products.  Processing
    37  shall not include the cultivation of cannabis.
    38    3. No processor shall be engaged in any other business on the premises
    39  to  be  licensed;  except  that  nothing contained in this chapter shall
    40  prevent a cannabis cultivator and cannabis processor, from operating  on
    41  the same premises and from a person holding both licenses.
    42    4.  No  cannabis  processor licensee may hold more than three cannabis
    43  processor licenses.
    44    5. A person holding an adult-use processor's license may  not  hold  a
    45  license to distribute cannabis under this article.
    46    6.  No  adult-use  cannabis  processor shall have a direct or indirect
    47  interest, including by stock ownership, interlocking directors, mortgage
    48  or lien, personal or real property, or any other means, in any  premises
    49  licensed  as  an adult-use cannabis retail dispensary or in any business
    50  licensed as an adult-use cannabis retail dispensary or in any registered
    51  organization registered pursuant to article three of this chapter.
    52    § 70. Small business adult-use cooperative license.  1. A  cooperative
    53  license  shall authorize the acquisition, possession, cultivation, proc-
    54  essing and sale from the licensed premises of the adult-use  cooperative
    55  by  such  licensee  to  duly  licensed distributors, on-site consumption

        A. 1617--C                         39

     1  sites, and/or retail dispensaries; but not directly to cannabis  consum-
     2  ers.
     3    2. To be licensed as a small business adult-use cooperative, the coop-
     4  erative must:
     5    (i)  be  comprised  of residents of the state of New York as a limited
     6  liability company or limited liability partnership under the laws of the
     7  state, or an appropriate business structure as determined and authorized
     8  by the board;
     9    (ii) subordinate capital, both as regards control over the cooperative
    10  undertaking, and as regards the  ownership  of  the  pecuniary  benefits
    11  arising therefrom;
    12    (iii)  be  democratically  controlled by the members themselves on the
    13  basis of one vote per member;
    14    (iv) vest in and allocate with priority to and among  the  members  of
    15  all  increases  arising from their cooperative endeavor in proportion to
    16  the members' active participation in the cooperative endeavor; and
    17    (v) the cooperative must operate according to  the  seven  cooperative
    18  principles  published by the International Cooperative Alliance in nine-
    19  teen hundred ninety-five.
    20    3. A cooperative member shall be a natural person and shall not  be  a
    21  member  of  more  than one small business adult-use cooperative licensed
    22  pursuant to this section.
    23    4. No natural person or member of a small business  adult-use  cooper-
    24  ative  license  may  have  a direct or indirect financial or controlling
    25  interest in any other adult-use cannabis license issued pursuant to this
    26  chapter.
    27    5. No small business  adult-use  cannabis  cooperative  shall  have  a
    28  direct  or indirect interest, including by stock ownership, interlocking
    29  directors, mortgage or lien, personal or real  property,  or  any  other
    30  means,  in any premises licensed as an adult-use cannabis retail dispen-
    31  sary or in any business licensed as an adult-use cannabis retail dispen-
    32  sary pursuant to this chapter.
    33    6.  The  board  shall  promulgate  regulations  governing  cooperative
    34  licenses,  including,  but  not  limited to, the establishment of canopy
    35  limits on the size and scope of cooperative licensees, and  other  meas-
    36  ures designed to incentivize the use and licensure of cooperatives.
    37    § 71. Adult-use distributor license.  1. A distributor's license shall
    38  authorize the acquisition, possession, distribution and sale of cannabis
    39  from  the licensed premises of a licensed adult-use cultivator, process-
    40  or, small business adult-use  cooperative  or  microbusiness  authorized
    41  pursuant  to  this  chapter to sell adult-use cannabis, to duly licensed
    42  retail dispensaries.
    43    2. No distributor shall have a direct or indirect economic interest in
    44  any adult-use retail  dispensary  or  in  any  adult-use  cultivator  or
    45  processor licensed pursuant to this article, or in any registered organ-
    46  ization  registered  pursuant  to  article  three  of this chapter. This
    47  restriction shall not  prohibit  a  registered  organization  authorized
    48  pursuant to subdivision one of section thirty-nine of this chapter, from
    49  being  granted  licensure  by the board to distribute adult-use cannabis
    50  products cultivated and processed  by  the  registered  organization  to
    51  licensed adult-use retail dispensaries owned and operated by such regis-
    52  tered organization.
    53    3. Nothing in subdivision two of this section shall prevent a distrib-
    54  utor  from charging an appropriate fee, authorized by the board, for the
    55  distribution of cannabis, including based  on  the  volume  of  cannabis
    56  distributed.

        A. 1617--C                         40

     1    §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
     2  license shall authorize the acquisition, possession, sale  and  delivery
     3  of  cannabis from the licensed premises of the retail dispensary by such
     4  licensee to cannabis consumers.
     5    2.  No  person  may have a direct or indirect financial or controlling
     6  interest in more than three adult-use retail dispensary licenses  issued
     7  pursuant to this chapter.
     8    3.  No  person  holding  a  retail dispensary license may also hold an
     9  adult-use cultivation, processor, microbusiness, cooperative or distrib-
    10  utor license pursuant to this article or be registered as  a  registered
    11  organization  pursuant to article three of this chapter, except for such
    12  organizations licensed pursuant to  sections  sixty-eight-a  and  sixty-
    13  eight-b of 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.
    25    6. No cannabis retail license shall be granted for any premises within
    26  five  hundred  feet  of  a school grounds as such term is defined in the
    27  education law.
    28    § 73. Microbusiness license. 1. A microbusiness license shall  author-
    29  ize  the limited cultivation, processing, distribution and dispensing of
    30  their own adult-use cannabis and cannabis products.
    31    2. A microbusiness licensee may not hold interest in any other license
    32  and may only distribute  its  own  cannabis  and  cannabis  products  to
    33  dispensaries.
    34    3.  The size and scope of a microbusiness shall be determined by regu-
    35  lation by the board in consultation with the executive director and  the
    36  state  cannabis  advisory  board. Such licenses shall promote social and
    37  economic equity applicants as provided for in this chapter.
    38    § 74. Delivery license. A delivery license shall authorize the  deliv-
    39  ery of cannabis and cannabis products by licensees independent of anoth-
    40  er  adult-use cannabis license, provided that each delivery licensee may
    41  have a total of no more than twenty-five individuals, or the  equivalent
    42  thereof,  providing full-time paid delivery services, per week under one
    43  license. For the purposes of this section the  state  cannabis  advisory
    44  board  shall  provide  recommendations  to the board for the application
    45  process, license criteria, and scope of  licensed  activities  for  this
    46  class  of license.  No person may have a direct or indirect financial or
    47  controlling interest in more than one delivery  license.  Such  licenses
    48  shall  promote  social and economic equity applicants as provided for in
    49  this chapter.
    50    § 75. Nursery license.  1.  A  nursery  license  shall  authorize  the
    51  production, sale and distribution of clones, immature plants, seeds, and
    52  other  agricultural  products used specifically for the planting, propa-
    53  gation, and cultivation of cannabis. For the purposes of  this  section,
    54  the  office  shall provide recommendations to the board for the applica-
    55  tion process, license criteria and scope of licensed activities for this

        A. 1617--C                         41

     1  class of license. Such licenses shall promote social and economic equity
     2  applicants as provided for in this chapter.
     3    2. A person or entity holding a cultivators license may apply for, and
     4  obtain, one nursery license to sell directly to other cultivators, coop-
     5  eratives, or microbusinesses.
     6    § 76. Notification to municipalities of adult-use retail dispensary or
     7  on-site  consumption license. 1. Not less than thirty days nor more than
     8  two hundred seventy days before filing an application for  licensure  as
     9  an  adult-use  retail  dispensary  or  registered organization adult-use
    10  cultivator  processor  distributor  retail  dispensary  or  an   on-site
    11  consumption  licensee,  an  applicant  shall  notify the municipality in
    12  which the premises is located of such applicant's intent to file such an
    13  application.
    14    2. Such notification shall be made to the clerk of the  village,  town
    15  or  city,  as  the  case  may  be,  wherein the premises is located. For
    16  purposes of this section:
    17    (a) notification need only be given to the clerk of a village when the
    18  premises is located within the boundaries of the village; and
    19    (b) in the city of New York, the community board established  pursuant
    20  to section twenty-eight hundred of the New York city charter with juris-
    21  diction  over the area in which the premises is located shall be consid-
    22  ered the appropriate public body to which notification shall be given.
    23    3. Such notification shall be made in such form as shall be prescribed
    24  by the rules of the board.
    25    4. When a city, town, or village, and in New  York  city  a  community
    26  board,  expresses  an opinion for or against the granting of such regis-
    27  tration, license or permit application, any such opinion shall be deemed
    28  part of the record upon which the office makes its recommendation to the
    29  board to grant or deny the application and the board  shall  respond  in
    30  writing  to such city, town, village or community board with an explana-
    31  tion of how such opinion was considered in the granting or denial of  an
    32  application.
    33    5.  Such  notification  shall  be  made by: (a) certified mail, return
    34  receipt requested; (b) overnight delivery service with proof of mailing;
    35  or (c) personal service upon the  offices  of  the  clerk  or  community
    36  board.
    37    6.  The  board shall require such notification to be on a standardized
    38  form that can be obtained on the internet or from  the  board  and  such
    39  notification to include:
    40    (a)  the trade name or "doing business as" name, if any, of the estab-
    41  lishment;
    42    (b) the full name of the applicant;
    43    (c) the street address  of  the  establishment,  including  the  floor
    44  location or room number, if applicable;
    45    (d)  the  mailing  address of the establishment, if different than the
    46  street address;
    47    (e) the name, address and telephone number of the attorney  or  repre-
    48  sentative of the applicant, if any;
    49    (f) a statement indicating whether the application is for:
    50    (i) a new establishment;
    51    (ii) a transfer of an existing licensed business;
    52    (iii) a renewal of an existing license; or
    53    (iv) an alteration of an existing licensed premises;
    54    (g)  if  the  establishment is a transfer or previously licensed prem-
    55  ises, the name of the old establishment and such establishment's  regis-
    56  tration or license number;

        A. 1617--C                         42

     1    (h)  in the case of a renewal or alteration application, the registra-
     2  tion or license number of the applicant; and
     3    (i) the type of license.
     4    §  77.  Adult-use  on-site  consumption  license; provisions governing
     5  on-site consumption licenses.   1. No  applicant  shall  be  granted  an
     6  adult-use  on-site  consumption  license  for  any  premises, unless the
     7  applicant shall be the owner thereof, or shall be in possession of  said
     8  premises under a lease, in writing, for a term not less than the license
     9  period  except,  however,  that  such  license may thereafter be renewed
    10  without the requirement of a lease as provided  in  this  section.  This
    11  subdivision shall not apply to premises leased from government agencies;
    12  provided, however, that the appropriate administrator of such government
    13  agency  provides  some form of written documentation regarding the terms
    14  of occupancy under which the applicant is leasing said premises from the
    15  government agency for presentation to the office  at  the  time  of  the
    16  license application. Such documentation shall include the terms of occu-
    17  pancy  between  the  applicant and the government agency, including, but
    18  not limited to, any short-term leasing agreements or  written  occupancy
    19  agreements.
    20    2.  No  person  may have a direct or indirect financial or controlling
    21  interest in more  than  three  adult-use  on-site  consumption  licenses
    22  issued pursuant to this chapter.
    23    3. No person holding an adult-use on-site consumption license may also
    24  hold  an adult-use retail dispensary, cultivation, processor, microbusi-
    25  ness, cooperative or distributor license pursuant to this article or  be
    26  registered  as  a  registered  organization pursuant to article three of
    27  this chapter.
    28    4. No applicant shall be  granted  an  adult-use  on-site  consumption
    29  license  for  any premises within five hundred feet of school grounds as
    30  such term is defined in the education law.
    31    5. The board may consider any or all of the following  in  determining
    32  whether public convenience and advantage and the public interest will be
    33  promoted  by the granting of an adult-use on-site consumption license at
    34  a particular location:
    35    (a) that it is a privilege, and not a right,  to  cultivate,  process,
    36  distribute, and sell cannabis;
    37    (b)  the number, classes, and character of other licenses in proximity
    38  to the location and in the particular municipality or subdivision there-
    39  of;
    40    (c) evidence  that  all  necessary  licenses  and  permits  have  been
    41  obtained from the state and all other governing bodies;
    42    (d)  whether there is a demonstrated need for spaces to consume canna-
    43  bis;
    44    (e) effect of the grant of the  license  on  pedestrian  or  vehicular
    45  traffic, and parking, in proximity to the location;
    46    (f) the existing noise level at the location and any increase in noise
    47  level that would be generated by the proposed premises; and
    48    (g) any other factors specified by law or regulation that are relevant
    49  to  determine  that  granting a license would promote public convenience
    50  and advantage and the public interest of the community.
    51    6. If the  board  shall  disapprove  an  application  for  an  on-site
    52  consumption  license, it shall state and file in its offices the reasons
    53  therefor and shall notify the  applicant  thereof.  Such  applicant  may
    54  thereupon  apply to the board for a review of such action in a manner to
    55  be prescribed by the rules of the board.

        A. 1617--C                         43

     1    7. No adult-use cannabis on-site consumption licensee shall keep  upon
     2  the  licensed  premises  any  adult-use  cannabis  products except those
     3  purchased from a licensed distributor, adult-use cooperative, or  micro-
     4  business  authorized  to sell adult-use cannabis, and only in containers
     5  approved  by  the board. Such containers shall have affixed thereto such
     6  labels as may be required by  the  rules  of  the  board.  No  adult-use
     7  on-site  consumption licensee shall reuse, refill, tamper with, adulter-
     8  ate, dilute or  fortify  the  contents  of  any  container  of  cannabis
     9  products as received from the manufacturer or distributor.
    10    8.  No  adult-use  on-site consumption licensee shall sell, deliver or
    11  give away, or cause or permit or procure to be sold, delivered or  given
    12  away  any  cannabis  for  consumption  on  the  premises where sold in a
    13  container or package containing a quantity or number  of  servings  more
    14  than authorized by the board.
    15    9.  No  adult-use on-site consumption licensee shall suffer, permit or
    16  promote activities or events on its premises wherein  any  person  shall
    17  use  such  premises for activities including, but not limited to, gambl-
    18  ing, exposing or simulating, contests, or fireworks that are  prohibited
    19  by  subdivision  six, six-a, six-b six-c or seven of section one hundred
    20  six of the alcoholic beverage control law or any  other  similar  activ-
    21  ities the board deems to be prohibited.
    22    10.  No  premises  licensed  to  sell  adult-use  cannabis for on-site
    23  consumption under this chapter shall be permitted to have any opening or
    24  means of entrance or  passageway  for  persons  or  things  between  the
    25  licensed premises and any other room or place in the building containing
    26  the  licensed  premises,  or  any adjoining or abutting premises, unless
    27  ingress and egress is restricted by an employee, agent of the  licensee,
    28  or  other  method  approved  by  the  board of controlling access to the
    29  facility.
    30    11. Each adult-use on-site consumption licensee shall keep  and  main-
    31  tain  upon  the  licensed premises, adequate records of all transactions
    32  involving the business transacted by such licensee which shall show  the
    33  amount  of  cannabis  products,  in  an  applicable  metric measurement,
    34  purchased by such licensee together with the names, license numbers  and
    35  places of business of the persons from whom the same were purchased, the
    36  amount  involved  in  such  purchases,  as well as the sales of cannabis
    37  products made by such  licensee.  The  board  is  hereby  authorized  to
    38  promulgate  rules and regulations permitting an on-site licensee operat-
    39  ing two or more premises separately licensed to sell  cannabis  products
    40  for on-site consumption to inaugurate or retain in this state methods or
    41  practices  of  centralized  accounting,  bookkeeping,  control  records,
    42  reporting, billing, invoicing or payment respecting purchases, sales  or
    43  deliveries of cannabis products, or methods and practices of centralized
    44  receipt or storage of cannabis products within this state without segre-
    45  gation or earmarking for any such separately licensed premises, wherever
    46  such  methods  and practices assure the availability, at such licensee's
    47  central or main office in this state, of data reasonably needed for  the
    48  enforcement  of  this  chapter.  Such  records  shall  be  available for
    49  inspection by any authorized representative of the board.
    50    12. All licensed  adult-use  on-site  consumption  premises  shall  be
    51  subject  to  inspection  by any peace officer, acting pursuant to his or
    52  her special duties, or police officer and by the duly authorized  repre-
    53  sentatives  of  the  board,  during the hours when the said premises are
    54  open for the transaction of business.
    55    13. An adult-use on-site consumption licensee shall not provide canna-
    56  bis products to any person under the age of twenty-one.  No person under

        A. 1617--C                         44

     1  the age of twenty-one shall be permitted on the premises of  a  cannabis
     2  on-site consumption facility.
     3    14.  The  provisions  of  article  thirteen-E of the public health law
     4  restricting the smoking or vaping of cannabis shall not apply to  adult-
     5  use on-site consumption premises.
     6    §  78. Record keeping and tracking. 1. The board shall, by regulation,
     7  require each licensee pursuant to this article  to  adopt  and  maintain
     8  security,  tracking,  record  keeping, record retention and surveillance
     9  systems,  relating  to  all  cannabis  at  every  stage  of   acquiring,
    10  possession,   manufacture,  sale,  delivery,  transporting,  testing  or
    11  distributing by the licensee, subject to regulations of the board.
    12    2. Every licensee shall keep and maintain upon the  licensed  premises
    13  adequate  books  and  records of all transactions involving the licensee
    14  and sale of its products, which shall include, but is  not  limited  to,
    15  all information required by any rules promulgated by the board.
    16    3. Each sale shall be recorded separately on a numbered invoice, which
    17  shall  have  printed  thereon  the number, the name of the licensee, the
    18  address of the  licensed  premises,  and  the  current  license  number.
    19  Licensed  producers  shall  deliver  to  the licensed distributor a true
    20  duplicate invoice stating the name and address  of  the  purchaser,  the
    21  quantity  purchased,  description  and  the  price of the product, and a
    22  true, accurate and complete statement of the  terms  and  conditions  on
    23  which such sale is made.
    24    4. Such books, records and invoices shall be kept for a period of five
    25  years  and shall be available for inspection by any authorized represen-
    26  tative of the board.
    27    5. Each  adult-use  and  registered  organization  adult-use  cannabis
    28  retail dispensary, microbusiness, and on-site consumption licensee shall
    29  keep  and  maintain  upon the licensed premises, adequate records of all
    30  transactions involving the business transacted by  such  licensee  which
    31  shall show the amount of cannabis, in weight, purchased by such licensee
    32  together  with  the names, license numbers and places of business of the
    33  persons from whom the same were purchased, the amount involved  in  such
    34  purchases, as well as the sales of cannabis made by such licensee.
    35    §  79. Inspections and ongoing requirements. All licensed or permitted
    36  premises, regardless of the  type  of  premises,  shall  be  subject  to
    37  inspection  by the office, by the duly authorized representatives of the
    38  board, by any peace officer  acting  pursuant  to  his  or  her  special
    39  duties,  or by a police officer, during the hours when the said premises
    40  are open for the transaction of business. The board shall  make  reason-
    41  able  accommodations  so  that  ordinary business is not interrupted and
    42  safety and security procedures are not compromised by the inspection.  A
    43  person who holds a license or permit must make himself or herself, or an
    44  agent  thereof, available and present for any inspection required by the
    45  board.  Such inspection may include, but is  not  limited  to,  ensuring
    46  compliance  by the licensee or permittee with all other applicable state
    47  and local building codes, fire, health,  safety,  and  other  applicable
    48  regulations.
    49    §  80.  Adult-use  cultivators,  processors  or distributors not to be
    50  interested in retail dispensaries.  1. It shall be unlawful for a culti-
    51  vator, processor, cooperative or distributor licensed under this article
    52  to:
    53    (a) be interested directly or indirectly in  any  premises  where  any
    54  cannabis product is sold at retail; or in any business devoted wholly or
    55  partially  to the sale of any cannabis product at retail by stock owner-

        A. 1617--C                         45

     1  ship, interlocking directors, mortgage or lien or any personal  or  real
     2  property, or by any other means;
     3    (b)  make,  or cause to be made, any loan to any person engaged in the
     4  manufacture or sale of any cannabis product at wholesale or retail;
     5    (c) make any gift or  render  any  service  of  any  kind  whatsoever,
     6  directly  or indirectly, to any person licensed under this chapter which
     7  in the judgment of the board may influence such licensee to purchase the
     8  product of such cultivator or processor or distributor; or
     9    (d) enter into any contract with  any  retail  licensee  whereby  such
    10  licensee  agrees  to confine his or her sales to cannabis products manu-
    11  factured or sold by  one  or  more  such  cultivator  or  processors  or
    12  distributors.  Any  such contract shall be void and subject the licenses
    13  of all parties concerned to revocation for cause.
    14    2. The provisions of this section  shall  not  prohibit  a  registered
    15  organization  authorized  pursuant to section thirty-nine, sixty-eight-a
    16  or sixty-eight-b of this chapter, from cultivating, processing, or sell-
    17  ing adult-use cannabis under this article, at  facilities  wholly  owned
    18  and operated by such registered organization, subject to any conditions,
    19  limitations or restrictions established by this chapter.
    20    3.  The  board  shall develop rules and regulations, in regard to this
    21  section and, in consultation with the state cannabis advisory board.
    22    § 81. Packaging and labeling of adult-use cannabis  products.  1.  The
    23  board is hereby authorized to promulgate rules and regulations governing
    24  the advertising, branding, marketing, packaging and labeling of cannabis
    25  products,  sold or possessed for sale in New York state, including rules
    26  pertaining to the accuracy of information and rules restricting  market-
    27  ing and advertising to youth.
    28    2.  Such  regulations  shall include, but not be limited to, requiring
    29  that:
    30    (a) packaging  meets  requirements  similar  to  the  federal  "poison
    31  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    32    (b)  all cannabis-infused products shall have a separate packaging for
    33  each serving;
    34    (c) prior to delivery or sale at a  retailer,  cannabis  and  cannabis
    35  products  shall  be  labeled and placed in a resealable, child-resistant
    36  package; and
    37    (d) packages and labels shall not be made to be attractive to minors.
    38    3. Such regulations shall include requiring labels  warning  consumers
    39  of  any  potential impact on human health resulting from the consumption
    40  of cannabis products that shall be affixed to those products when  sold,
    41  if such labels are deemed warranted by the board.
    42    4.  Such  rules and regulations shall establish methods and procedures
    43  for determining serving sizes for cannabis-infused products  and  active
    44  cannabis  concentration  per  serving  size. Such regulations shall also
    45  require a nutritional fact panel that incorporates data regarding  serv-
    46  ing sizes and potency thereof.
    47    5.  The packaging, sale, marketing, branding, advertising, labeling or
    48  possession by any licensee  of  any  cannabis  product  not  labeled  or
    49  offered  in conformity with rules and regulations promulgated in accord-
    50  ance with this section shall be grounds for the imposition  of  a  fine,
    51  and/or  the  suspension,  revocation  or  cancellation  of  a license in
    52  accordance with the provisions of this chapter.
    53    § 82. Laboratory testing. 1. Every  processor  of  adult-use  cannabis
    54  shall  contract  with  an  independent  laboratory permitted pursuant to
    55  section one hundred twenty-nine of this chapter, to  test  the  cannabis
    56  products it produces pursuant to rules and regulations prescribed by the

        A. 1617--C                         46

     1  office.   The board may assign an approved testing laboratory, which the
     2  processor of adult-use cannabis must use.
     3    2.  Adult-use  cannabis  processors shall make laboratory test reports
     4  available to licensed  distributors  and  retail  dispensaries  for  all
     5  cannabis products manufactured by the processor.
     6    3.  Licensed retail dispensaries shall maintain accurate documentation
     7  of laboratory test reports for each cannabis product offered for sale to
     8  cannabis consumers. Such documentation shall be made publicly  available
     9  by the licensed retail dispensary.
    10    4.  Onsite  laboratory  testing  by licensees is permissible; however,
    11  such testing shall not be certified by the board and does not exempt the
    12  licensee from the requirements of quality assurance testing at a testing
    13  laboratory pursuant to this section.
    14    5. An owner of a cannabis laboratory testing permit shall not  hold  a
    15  license  in  any other category within this article and shall not own or
    16  have ownership interest in a registered organization registered pursuant
    17  to article three of this chapter.
    18    6. The board shall have the authority to require  any  licensee  under
    19  this  article  to  submit  cannabis  or cannabis products to one or more
    20  independent laboratories for testing.
    21    § 83. Provisions governing the cultivation and processing of adult-use
    22  cannabis. 1. No cultivator or  processor  of  adult-use  cannabis  shall
    23  sell, or agree to sell or deliver in the state any cannabis products, as
    24  the case may be, except in originally sealed containers containing quan-
    25  tities  in  accordance  with size standards pursuant to rules adopted by
    26  the board. Such containers shall have affixed thereto such labels as may
    27  be required by the rules of the board.
    28    2. No cultivator or processor of adult-use cannabis shall  furnish  or
    29  cause  to  be  furnished to any licensee, any exterior or interior sign,
    30  printed, painted, electric or otherwise, except  as  authorized  by  the
    31  board.  The board may make such rules as it deems necessary to carry out
    32  the purpose and intent of this subdivision.
    33    3. Cultivators of adult-use cannabis shall comply  with  plant  culti-
    34  vation  regulations,  standards,  and  guidelines  consistent  with  the
    35  provisions applicable to hemp, cannabinoid hemp, and  hemp  extract  and
    36  issued  by  the  board,  in consultation with the department of environ-
    37  mental conservation and the department of agriculture and markets.  Such
    38  regulations, standards, and guidelines shall be  guided  by  sustainable
    39  farming  principles  and  practices  such  as organic, regenerative, and
    40  integrated pest management models, and shall restrict whenever possible,
    41  the use of pesticides to those that are registered by the department  of
    42  environmental  conservation  or that specifically meet the United States
    43  environmental protection  agency  registration  exemption  criteria  for
    44  minimum  risk, used in compliance with rules, regulations, standards and
    45  guidelines issued by the department of  environmental  conservation  for
    46  pesticides.
    47    4.  No  cultivator  or  processor  of adult-use cannabis, including an
    48  adult-use cannabis cooperative or microbusiness, may  offer  any  incen-
    49  tive,  payment  or  other  benefit to a licensed cannabis distributor or
    50  retail dispensary in return  for  carrying  the  cultivator,  processor,
    51  cooperative or microbusiness products, or preferential shelf placement.
    52    5.  All  cannabis  products shall be processed in accordance with good
    53  manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
    54  Federal Regulations, as may be modified by the board in regulation.

        A. 1617--C                         47

     1    6. No processor of adult-use cannabis shall produce any product which,
     2  in the discretion of the board, is designed to appeal  to  anyone  under
     3  the age of twenty-one years.
     4    7.  The use or integration of alcohol or nicotine in cannabis products
     5  is strictly prohibited.
     6    § 84. Provisions governing the distribution of adult-use cannabis.  1.
     7  No distributor shall sell, or agree to  sell  or  deliver  any  cannabis
     8  products, as the case may be, in any container, except in a sealed pack-
     9  age.  Such  containers  shall have affixed thereto such labels as may be
    10  required by the rules of the board.
    11    2. No distributor shall deliver any cannabis products, except in vehi-
    12  cles owned and operated by such distributor, or hired  and  operated  by
    13  such  distributor  from  a trucking or transportation company registered
    14  with the board, and shall only make deliveries at the licensed  premises
    15  of the purchaser.
    16    3.  Each  distributor  shall keep and maintain upon the licensed prem-
    17  ises, adequate books and records of all transactions involving the busi-
    18  ness transacted by such distributor, which  shall  show  the  amount  of
    19  cannabis products purchased by such distributor together with the names,
    20  license numbers and places of business of the persons from whom the same
    21  was  purchased and the amount involved in such purchases, as well as the
    22  amount of cannabis products sold by such distributor together  with  the
    23  names,  addresses,  and  license  numbers  of such purchasers. Each sale
    24  shall be recorded separately on a numbered  invoice,  which  shall  have
    25  printed thereon the number, the name of the licensee, the address of the
    26  licensed  premises,  and  the  current  license number. Such distributor
    27  shall deliver to the purchaser a true duplicate invoice stating the name
    28  and address  of  the  purchaser,  the  quantity  of  cannabis  products,
    29  description  by  brands  and  the price of such cannabis products, and a
    30  true, accurate and complete statement of the  terms  and  conditions  on
    31  which  such sale is made. Such books, records and invoices shall be kept
    32  for a period of five years and shall be available for inspection by  any
    33  authorized representative of the board.
    34    4. No distributor shall furnish or cause to be furnished to any licen-
    35  see, any exterior or interior sign, printed, painted, electric or other-
    36  wise, unless authorized by the board.
    37    5.  No  distributor  shall  provide  any  discount, rebate or customer
    38  loyalty program to any licensed retailer, except as otherwise allowed by
    39  the board.
    40    6. The board is authorized to promulgate  regulations  establishing  a
    41  maximum  margin  for  which a distributor may mark up a cannabis product
    42  for sale to a retail dispensary. Any adult-use cannabis product sold  by
    43  a  distributor  for  more than the maximum markup allowed in regulation,
    44  shall be unlawful.
    45    7. Each distributor shall keep and maintain upon  the  licensed  prem-
    46  ises, adequate books and records to demonstrate the distributor's actual
    47  cost of doing business, using accounting standards and methods regularly
    48  employed in the determination of costs for the purpose of federal income
    49  tax  reporting,  for  the  total  operation of the licensee. Such books,
    50  records and invoices shall be kept for a period of five years and  shall
    51  be  available  for  inspection  by  any authorized representative of the
    52  office for use in determining the maximum markup allowed  in  regulation
    53  pursuant to subdivision six of this section.
    54    § 85. Provisions governing adult-use cannabis retail dispensaries.  1.
    55  No  cannabis  retail licensee shall sell, deliver, or give away or cause
    56  or permit or procure to be sold, delivered or given away any cannabis to

        A. 1617--C                         48

     1  any person, actually or apparently, under the age  of  twenty-one  years
     2  or, visibly intoxicated or impaired.
     3    2.  Valid  proof of age is required for each transaction. No licensee,
     4  or agent or employee of such licensee shall accept as  written  evidence
     5  of  age  by any such person for the purchase of any cannabis or cannabis
     6  product, any documentation other than: (a) a valid driver's  license  or
     7  non-driver identification card issued by the commissioner of motor vehi-
     8  cles,  the federal government, any United States territory, commonwealth
     9  or possession, the District of Columbia, a state government  within  the
    10  United  States  or a provincial government of the dominion of Canada, or
    11  (b) a valid passport issued by the United States government or any other
    12  country, or (c) an identification card issued by the armed forces of the
    13  United States. Upon the presentation of such driver's  license  or  non-
    14  driver  identification card issued by a governmental entity, such licen-
    15  see or agent or employee thereof may perform a  transaction  scan  as  a
    16  precondition to the sale of any cannabis or cannabis product. Nothing in
    17  this  section  shall  prohibit  a  licensee  or  agent  or employee from
    18  performing such a transaction scan on any of the other documents  listed
    19  in  this  subdivision  if  such documents include a bar code or magnetic
    20  strip that may be scanned by a device capable of deciphering  any  elec-
    21  tronically  readable  format.  In  instances where the information deci-
    22  phered by the transaction scan fails to match the information printed on
    23  the driver's license or non-driver identification card presented by  the
    24  card  holder,  or if the transaction scan indicates that the information
    25  is false or fraudulent, the attempted purchase of the cannabis or canna-
    26  bis product shall be denied.
    27    3. No cannabis retail licensee shall  sell  alcoholic  beverages,  nor
    28  have  or possess a license or permit to sell alcoholic beverages, on the
    29  same premises where cannabis products are sold.
    30    4. No sign of any kind printed, painted or electric,  advertising  any
    31  brand  shall  be permitted on the exterior or interior of such premises,
    32  except by permission of the board.
    33    5. No cannabis retail licensee shall  sell  or  deliver  any  cannabis
    34  products  to  any  person with knowledge of, or with reasonable cause to
    35  believe, that the person to whom such cannabis products are being  sold,
    36  has  acquired the same for the purpose of selling or giving them away in
    37  violation of the provisions of this chapter or in violation of the rules
    38  and regulations of the board.
    39    6. All premises licensed  under  this  section  shall  be  subject  to
    40  inspection by any peace officer described in subdivision four of section
    41  2.10 of the criminal procedure law acting pursuant to his or her special
    42  duties,  or  police officer or any duly authorized representative of the
    43  board, during the hours when the said premises are open for  the  trans-
    44  action of business.
    45    7.  No cannabis retail licensee shall be interested, directly or indi-
    46  rectly, in any cultivator, processor, distributor or microbusiness oper-
    47  ator licensed pursuant to this article, by stock ownership, interlocking
    48  directors, mortgage or lien on any personal or real property or  by  any
    49  other  means.  Any  lien, mortgage or other interest or estate, however,
    50  now held by such retailer on or in the personal or real property of such
    51  manufacturer or distributor, which mortgage, lien,  interest  or  estate
    52  was  acquired on or before December thirty-first, two thousand eighteen,
    53  shall not  be  included  within  the  provisions  of  this  subdivision;
    54  provided, however, the burden of establishing the time of the accrual of
    55  the  interest comprehended by this subdivision, shall be upon the person

        A. 1617--C                         49

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

        A. 1617--C                         50

     1    (b) any broadcast, cable,  radio,  print  and  digital  communications
     2  advertisements  only be placed where the audience is reasonably expected
     3  to be twenty-one years of age  or  older,  as  determined  by  reliable,
     4  up-to-date audience composition data.
     5    § 87. Social and economic equity, minority and women-owned businesses,
     6  disadvantaged  farmers and service-disabled veterans; incubator program.
     7  1. The board, in consultation with the state cannabis advisory board and
     8  the chief equity officer, and after receiving public input shall  create
     9  and  implement  a  social  and economic equity plan and actively promote
    10  applicants from  communities  disproportionately  impacted  by  cannabis
    11  prohibition, and promote racial, ethnic, and gender diversity when issu-
    12  ing  licenses  for  adult-use  cannabis  related  activities,  including
    13  mentoring potential applicants, by prioritizing consideration of  appli-
    14  cations  by  applicants  who  are  from  communities  disproportionately
    15  impacted by the enforcement of cannabis prohibition or who qualify as  a
    16  minority  or  women-owned  business,  disadvantaged  farmers, or service
    17  disabled veterans.   Such qualifications  shall  be  determined  by  the
    18  board,  in  consultation  with the state cannabis advisory board and the
    19  chief equity officer, in regulation.
    20    2. The board's social and economic  equity  plan  shall  also  promote
    21  diversity  in  commerce, ownership and employment, and opportunities for
    22  social and economic equity in the adult-use cannabis  industry.  A  goal
    23  shall  be  established  to  award  fifty  percent  of adult-use cannabis
    24  licenses to social and economic equity applicants and  ensure  inclusion
    25  of:
    26    (a)  individuals  from  communities disproportionately impacted by the
    27  enforcement of cannabis prohibition;
    28    (b) minority-owned businesses;
    29    (c) women-owned businesses;
    30    (d) minority and women-owned businesses, as defined in  paragraph  (d)
    31  of subdivision five of this section;
    32    (e)  disadvantaged  farmers,  as  defined  in subdivision five of this
    33  section; and
    34    (f) service-disabled veterans.
    35    3. The social and economic equity plan shall require the consideration
    36  of additional criteria in its licensing determinations. Under the social
    37  and economic equity plan, extra priority shall be given to  applications
    38  that demonstrate that an applicant:
    39    (a)  is  a  member  of  a community disproportionately impacted by the
    40  enforcement of cannabis prohibition;
    41    (b) has an income lower than eighty percent of the  median  income  of
    42  the county in which the applicant resides; and
    43    (c)  was  convicted of a marihuana-related offense prior to the effec-
    44  tive date of this chapter, or had a parent, guardian, child, spouse,  or
    45  dependent,  or was a dependent of an individual who, prior to the effec-
    46  tive date of this chapter, was convicted of a marihuana-related offense.
    47    4. The board in consultation with the cannabis advisory board and  the
    48  chief  equity officer, shall also create an incubator program to encour-
    49  age social and economic equity applicants to apply and,  if  granted  an
    50  adult-use  cannabis  license,  permit or registration, the program shall
    51  provide direct support in the form of  counseling  services,  education,
    52  small  business  coaching and financial planning, and compliance assist-
    53  ance.
    54    5. For the purposes of this section, the following  definitions  shall
    55  apply:

        A. 1617--C                         51

     1    (a)  "Minority-owned  business"  shall  mean  a  business  enterprise,
     2  including a sole proprietorship, partnership, limited liability  company
     3  or corporation that is:
     4    (i)  at  least  fifty-one  percent owned by one or more minority group
     5  members;
     6    (ii) an enterprise in which such minority ownership is real,  substan-
     7  tial and continuing;
     8    (iii) an enterprise in which such minority ownership has and exercises
     9  the authority to control independently the day-to-day business decisions
    10  of the enterprise;
    11    (iv)  an  enterprise authorized to do business in this state and inde-
    12  pendently owned and operated; and
    13    (v) an enterprise that is a small business.
    14    (b) "Minority group member" shall mean  a  United  States  citizen  or
    15  permanent resident alien who is and can demonstrate membership in one of
    16  the following groups:
    17    (i)  black  persons  having origins in any of the black African racial
    18  groups;
    19    (ii) Hispanic persons of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
    20  Central  or  South American of either Indian or Hispanic origin, regard-
    21  less of race;
    22    (iii) Native American or Alaskan native persons having origins in  any
    23  of the original peoples of North America; or
    24    (iv)  Asian  and Pacific Islander persons having origins in any of the
    25  far east countries, south east Asia,  the  Indian  subcontinent  or  the
    26  Pacific islands.
    27    (c) "Women-owned business" shall mean a business enterprise, including
    28  a  sole proprietorship, partnership, limited liability company or corpo-
    29  ration that is:
    30    (i) at least fifty-one percent owned by  one  or  more  United  States
    31  citizens or permanent resident aliens who are women;
    32    (ii)  an  enterprise  in which the ownership interest of such women is
    33  real, substantial and continuing;
    34    (iii) an enterprise in which such women ownership  has  and  exercises
    35  the authority to control independently the day-to-day business decisions
    36  of the enterprise;
    37    (iv)  an  enterprise authorized to do business in this state and inde-
    38  pendently owned and operated; and
    39    (v) an enterprise that is a small business.
    40    (d) A firm owned by a minority group member who is also a woman may be
    41  defined as a minority-owned business, a women-owned business, or both.
    42    (e) "Disadvantaged farmer" shall mean a New  York  state  resident  or
    43  business  enterprise,  including  a  sole  proprietorship,  partnership,
    44  limited liability company or corporation, that  has  reported  at  least
    45  two-thirds  of  its  federal  gross income as income from farming, in at
    46  least one of the past five preceding tax years, and who:
    47    (i) farms in a county that has greater than ten percent rate of pover-
    48  ty according to the latest U.S.  Census  Bureau's  American  Communities
    49  Survey;
    50    (ii)  has  been disproportionately impacted by low commodity prices or
    51  faces the loss of farmland through development or suburban sprawl; and
    52    (iii) meets any other qualifications as defined in regulation  by  the
    53  board.
    54    (f)  "Service-disabled  veterans"  shall  mean persons qualified under
    55  article seventeen-B of the executive law.

        A. 1617--C                         52

     1    (g) "Communities disproportionately impacted" shall mean, but  not  be
     2  limited to, a history of arrests, convictions, and other law enforcement
     3  practices  in  a  certain  geographic area, such as, but not limited to,
     4  precincts,  zip  codes,  neighborhoods,  and   political   subdivisions,
     5  reflecting  a  disparate  enforcement  of  cannabis prohibition during a
     6  certain time period, when compared to the rest of the state.  The  board
     7  shall,  in  consultation  with the state cannabis advisory board and the
     8  chief equity officer, issue guidelines to determine how to assess  which
     9  communities  have  been disproportionately impacted and how to assess if
    10  someone is a member of a community disproportionately impacted.
    11    6. The board shall actively promote  applicants  that  foster  racial,
    12  ethnic, and gender diversity in their workforce.
    13    7. Licenses issued under the social and economic equity plan shall not
    14  be  transferred or sold within the first three years of issue, except to
    15  a qualified social and economic equity  applicant  and  with  the  prior
    16  written approval of the board. In the event a social and economic equity
    17  applicant  seeks  to  transfer  or sell their license at any point after
    18  issue and the transferee is to a person or entity that does not  qualify
    19  as  a social and economic equity applicant, the transfer agreement shall
    20  require the new license holder to  pay  to  the  board  any  outstanding
    21  amount  owed  by  the  transferor  to the board as repayment of any loan
    22  issued by the board as well as any other fee or assessment as determined
    23  by the board.
    24    § 88. Data collection and reporting.   The board shall  collect  demo-
    25  graphic  data on owners and employees in the adult-use cannabis industry
    26  and shall annually publish such data in its annual report.
    27    § 89. Regulations.  The board shall promulgate regulations in  consul-
    28  tation with the state cannabis advisory board to implement this article.

    29                                  ARTICLE 5
    30                      CANNABINOID HEMP AND HEMP EXTRACT

    31  Section 90.  Definitions.
    32          91.  Rulemaking authority.
    33          92.  Cannabinoid hemp processor license.
    34          93.  Cannabinoid hemp retailer license.
    35          94.  Cannabinoid license applications.
    36          95.  Information to be requested in applications for licenses.
    37          96.  Fees.
    38          97.  Selection criteria.
    39          98.  License renewal.
    40          99.  Form of license.
    41          100. Transferability;  amendment to license; change in ownership
    42                 or control.
    43          101. Granting, suspending or revoking licenses.
    44          102. Record keeping and tracking.
    45          103. Packaging  and  labeling  of  cannabinoid  hemp  and   hemp
    46                 extract.
    47          104. Processing of cannabinoid hemp and hemp extract.
    48          105. Laboratory testing.
    49          106. New York hemp product.
    50          107. Penalties.
    51          108. Hemp workgroup.
    52          109. Prohibitions.
    53          110. Special use permits.
    54          111. Severability.

        A. 1617--C                         53

     1    § 90. Definitions.  As used in this article, the following terms shall
     2  have the following meanings, unless the context clearly requires  other-
     3  wise:
     4    1.  "Cannabinoid"  means  the phytocannabinoids found in hemp and does
     5  not include synthetic cannabinoids as that term is defined  in  subdivi-
     6  sion (g) of schedule I of section thirty-three hundred six of the public
     7  health law.
     8    2.  "Cannabinoid  hemp"  means  any  hemp and any product processed or
     9  derived from hemp, that is used for human consumption provided that when
    10  such product is packaged or offered for retail sale to  a  consumer,  it
    11  shall  not  have  a concentration of more than three tenths of a percent
    12  delta-9 tetrahydrocannabinol.
    13    3. "Used for human consumption" means intended by the manufacturer  or
    14  distributor  to  be:  (a) used for human consumption for its cannabinoid
    15  content; or (b) used in, on or by the human  body  for  its  cannabinoid
    16  content.
    17    4.  "Hemp"  means  the  plant  Cannabis sativa L. and any part of such
    18  plant, including the seeds thereof and all derivatives, extracts, canna-
    19  binoids, isomers, acids, salts, and salts of isomers, whether growing or
    20  not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more
    21  than three-tenths of a percent on a  dry  weight  basis.  It  shall  not
    22  include "medical cannabis" as defined in section three of this chapter.
    23    5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom-
    24  ers,  acids,  salts,  and  salts  of  isomers derived from hemp, used or
    25  intended for human consumption, for  its  cannabinoid  content,  with  a
    26  delta-9  tetrahydrocannabinol  concentration  of not more than an amount
    27  determined by the board in regulation. For the purpose of this  article,
    28  hemp  extract  excludes  (a)  any food, food ingredient or food additive
    29  that is generally recognized as safe pursuant to federal law; or (b) any
    30  hemp extract that is not  used  for  human  consumption.  Such  excluded
    31  substances  shall  not  be  regulated pursuant to the provisions of this
    32  article but are subject to other provisions  of  applicable  state  law,
    33  rules and regulations.
    34    6. "License" means a license issued pursuant to this article.
    35    7. "Cannabinoid hemp processor license" means a license granted by the
    36  board  to process, extract, pack or manufacture cannabinoid hemp or hemp
    37  extract into products, whether in intermediate or final form,  used  for
    38  human consumption.
    39    8.  "Processing"  means  extracting,  preparing,  treating, modifying,
    40  compounding, manufacturing or otherwise manipulating cannabinoid hemp to
    41  concentrate or extract its cannabinoids, or creating product, whether in
    42  intermediate or final form, used for human consumption. For purposes  of
    43  this  article,  processing  does  not include: (a) growing, cultivation,
    44  cloning, harvesting, drying, curing, grinding or trimming  when  author-
    45  ized pursuant to article twenty-nine of the agriculture and markets law;
    46  or
    47    (b)  mere  transportation, such as by common carrier or another entity
    48  or individual.
    49    § 91. Rulemaking authority. The board may make regulations pursuant to
    50  this article for the processing, distribution, marketing, transportation
    51  and sale of cannabinoid hemp and hemp extracts used for  human  consump-
    52  tion, which may include, but not be limited to:
    53    1.  Specifying  forms,  establishing  application, reasonable adminis-
    54  tration and renewal fees, or license duration;
    55    2. Establishing the qualifications  and  criteria  for  licensing,  as
    56  authorized by law;

        A. 1617--C                         54

     1    3. The books and records to be created and maintained by licensees and
     2  lawful procedures for their inspection;
     3    4. Any reporting requirements;
     4    5.  Methods  and  standards  of  processing,  labeling,  packaging and
     5  marketing of cannabinoid hemp, hemp extract and products derived  there-
     6  from;
     7    6.  Procedures  for how cannabinoid hemp, hemp extract or ingredients,
     8  additives, or products derived therefrom can be deemed as acceptable for
     9  sale in the state;
    10    7. Provisions governing the modes and forms of administration, includ-
    11  ing inhalation;
    12    8. Procedures for determining whether cannabinoid hemp,  hemp  extract
    13  or  ingredients,  additives,  or  products  derived  therefrom  produced
    14  outside the state or within the state meet the  standards  and  require-
    15  ments of this article and can therefore be sold within the state;
    16    9. Procedures for the granting, cancellation, revocation or suspension
    17  of licenses, consistent with the state administrative procedures act;
    18    10.  Restrictions  governing the advertising and marketing of cannabi-
    19  noid hemp, hemp extract and products derived therefrom; and
    20    11. Any other regulations necessary to implement this article.
    21    § 92. Cannabinoid hemp processor license. 1. Persons processing canna-
    22  binoid hemp or hemp extract  used  for  human  consumption,  whether  in
    23  intermediate  or  final  form, shall be required to obtain a cannabinoid
    24  hemp processor license from the board.
    25    2. A cannabinoid hemp processor license authorizes one or more specif-
    26  ic activities  related  to  the  processing  of  cannabinoid  hemp  into
    27  products  used  for  human consumption, whether in intermediate or final
    28  form, and the distribution or sale thereof by  the  licensee.    Nothing
    29  herein  shall  prevent  a  cannabinoid  hemp  processor from processing,
    30  extracting and processing  hemp  products  not  to  be  used  for  human
    31  consumption.
    32    3.  Persons authorized to grow hemp pursuant to article twenty-nine of
    33  the agriculture and markets law are not authorized to engage in process-
    34  ing of cannabinoid hemp or hemp extract without first being licensed  as
    35  a cannabinoid hemp processor under this article.
    36    4.  This  article  shall  not  apply  to  hemp, cannabinoid hemp, hemp
    37  extracts or products derived therefrom  that  are  not  used  for  human
    38  consumption.  This  article  also  shall  not apply to hemp, cannabinoid
    39  hemp, hemp extracts or products derived therefrom that have been  deemed
    40  generally recognized as safe pursuant to federal law.
    41    5.  The board shall have the authority to set reasonable fees for such
    42  license, to limit the activities permitted by such license, to establish
    43  the period during which such license is authorized, which shall  be  two
    44  years  or more, and to make rules and regulations necessary to implement
    45  this section.
    46    6. Any person holding an active research  partnership  agreement  with
    47  the  department  of  agriculture and markets, authorizing that person to
    48  process cannabinoid hemp, shall be awarded licensure under this section,
    49  provided that the  research  partner  is  actively  performing  research
    50  pursuant  to  such  agreement and is able to demonstrate compliance with
    51  this article, as determined by the board, after notice and  an  opportu-
    52  nity to be heard.
    53    § 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi-
    54  noid  hemp,  in  final  form  to  consumers  within  the state, shall be
    55  required to obtain a cannabinoid hemp retailer license from the board.

        A. 1617--C                         55

     1    2. The board shall have the authority to set reasonable fees for  such
     2  license,  to  establish  the period during which such license is author-
     3  ized, which shall be one year or more, and to make rules and regulations
     4  necessary to implement this section.
     5    § 94. Cannabinoid  license  applications. 1. Persons shall apply for a
     6  license under this article by submitting  an  application  upon  a  form
     7  supplied by the board, providing all the relevant requested information,
     8  verified  by the applicant or an authorized representative of the appli-
     9  cant.
    10    2. A separate license shall be required for  each  facility  at  which
    11  processing  or  retail  sales  are  conducted; however, an applicant may
    12  submit one application for separate licensure at multiple locations.
    13    3. Each applicant shall remit with its application the  fee  for  each
    14  requested license, which shall be a reasonable fee.
    15    § 95. Information to be requested in applications for licenses. 1. The
    16  board  may  specify the manner and form in which an application shall be
    17  submitted to the board for licensure under this article.
    18    2. The board may adopt regulations establishing what relevant informa-
    19  tion shall be included on an application for licensure under this  arti-
    20  cle.  Such  information  may include, but is not limited to: information
    21  about the applicant's identity; ownership  and  investment  information,
    22  including  the  corporate  structure;  evidence of good moral character;
    23  financial statements; information about the  premises  to  be  licensed;
    24  information  about the activities to be licensed; and any other relevant
    25  information specified in regulation.
    26    3. All license applications shall be signed by  the  applicant  if  an
    27  individual,  by a managing partner if a limited liability company, by an
    28  officer if a corporation, or by all  partners  if  a  partnership.  Each
    29  person signing such application shall verify it as true under the penal-
    30  ties of perjury.
    31    4.  All license applications shall be accompanied by a check, draft or
    32  other forms of payment as the board may  require  or  authorize  in  the
    33  reasonable amount required by this article for such license.
    34    5.  If there be any change, after the filing of the application or the
    35  granting, modification or renewal of a license, in any of  the  material
    36  facts  required  to  be  set  forth  in such application, a supplemental
    37  statement giving notice of such change, duly verified,  shall  be  filed
    38  with  the  board within ten days after such change. Failure to do so, if
    39  willful and deliberate, may be grounds for revocation of the license.
    40    § 96. Fees. The board may charge licensees a reasonable  license  fee.
    41  Such  fee  may  be based on the activities permitted by the license, the
    42  amount of cannabinoid hemp or hemp extract to be processed or  extracted
    43  by  the  licensee,  the  gross  annual  receipts of the licensee for the
    44  previous license period, or any other factors reasonably  deemed  appro-
    45  priate by the board.
    46    § 97. Selection  criteria. 1. The applicant, if an individual or indi-
    47  viduals, shall furnish evidence of the individual's good  moral  charac-
    48  ter,  and if an entity, the applicant shall furnish evidence of the good
    49  moral character of the individuals who have  or  will  have  substantial
    50  responsibility  for  the  licensed  or  authorized activity and those in
    51  control of the entity, including principals, officers,  or  others  with
    52  such control.
    53    2.  The applicant shall furnish evidence of the applicant's experience
    54  and competency, and that the applicant has or will have adequate facili-
    55  ties, equipment, process  controls,  and  security  to  undertake  those
    56  activities for which licensure is sought.

        A. 1617--C                         56

     1    3.  The applicant shall furnish evidence of his, her or its ability to
     2  comply with all applicable state and local laws, rules and regulations.
     3    4. If the board is not satisfied that the applicant should be issued a
     4  license, the board shall notify the applicant in writing of the specific
     5  reason or reasons for denial.
     6    5.  No license pursuant to this article may be issued to an individual
     7  under the age of eighteen years.
     8    § 98. License renewal. 1. Each license, issued pursuant to this  arti-
     9  cle,  may  be  renewed upon application therefor by the licensee and the
    10  payment of the reasonable fee for such  license  as  specified  by  this
    11  article.
    12    2.  In  the  case of applications for renewals, the board may dispense
    13  with the requirements of such statements as it deems unnecessary in view
    14  of those contained in the application made for the original license.
    15    3. The board shall provide an application for renewal of  any  license
    16  issued under this article not less than ninety days prior to the expira-
    17  tion of the current license.
    18    4.  The  board  may  only  issue a renewal license upon receipt of the
    19  specified renewal application and renewal fee from  a  licensee  if,  in
    20  addition  to  the  selection  criteria  set  out  in  this  article, the
    21  licensee's license is not under suspension and has not been revoked.
    22    § 99. Form of license. Licenses issued pursuant to this article  shall
    23  specify:
    24    1. The name and address of the licensee;
    25    2. The activities permitted by the license;
    26    3.  The  land,  buildings  and  facilities  that  may  be used for the
    27  licensed activities of the licensee;
    28    4. A unique license number issued by the board to the licensee; and
    29    5. Such other information as the board shall deem necessary to  assure
    30  compliance with this article.
    31    § 100. Transferability;  amendment  to license; change in ownership or
    32  control. 1. Licenses issued under this  article  are  not  transferable,
    33  absent written consent of the board.
    34    2.  Upon application of a licensee, a license may be amended to add or
    35  delete permitted activities.
    36    3. A license shall become void by a change in  ownership,  substantial
    37  corporate change or change of location without prior written approval of
    38  the  board. The board may make regulations allowing for certain types of
    39  changes in ownership without the need for prior written approval.
    40    § 101. Granting, suspending or revoking licenses. After due notice and
    41  an opportunity to be heard, established by rules  and  regulations,  the
    42  board  may  decline  to grant a new license, impose conditions or limits
    43  with respect to the grant of a license, modify an  existing  license  or
    44  decline  to renew a license, and may suspend or revoke a license already
    45  granted after due notice and an opportunity to be heard, as  established
    46  by rules and regulations, whenever the board finds that:
    47    1. A material statement contained in an application is or was false or
    48  misleading;
    49    2.  The applicant or licensee, or a person in a position of management
    50  and control thereof or of the licensed  activity,  does  not  have  good
    51  moral  character,  necessary  experience or competency, adequate facili-
    52  ties, equipment, process controls, or security to  process,  distribute,
    53  transport  or  sell  cannabinoid  hemp, hemp extract or products derived
    54  therefrom;
    55    3. After appropriate notice and opportunity, the applicant or licensee
    56  has failed or refused to produce any records or provide any  information

        A. 1617--C                         57

     1  required  by this article or the regulations promulgated pursuant there-
     2  to;
     3    4.  The  licensee has conducted activities outside of those activities
     4  permitted on its license; or
     5    5. The applicant or licensee, or any officer,  director,  partner,  or
     6  any other person exercising any position of management or control there-
     7  of  or  of the licensed activity has willfully failed to comply with any
     8  of the provisions of this article or regulations under it and other laws
     9  of this state applicable to the licensed activity.
    10    § 102. Record keeping and tracking. Every licensee shall keep, in such
    11  form as the board may direct, such relevant records as may  be  required
    12  pursuant to regulations under this article.
    13    § 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1.
    14  Cannabinoid  hemp  processors  shall  be required to provide appropriate
    15  label warning to consumers, and restricted from making unapproved  label
    16  claims,  as  determined by the board, concerning the potential impact on
    17  or benefit to human health resulting from the use of  cannabinoid  hemp,
    18  hemp extract and products derived therefrom for human consumption, which
    19  labels  shall  be affixed to those products when sold, pursuant to rules
    20  and regulations that the board may adopt.
    21    2. The board may, by rules  and  regulations,  require  processors  to
    22  establish  a code, including, but not limited to QR code, for labels and
    23  establish methods and procedures for determining,  among  other  things,
    24  serving sizes or dosages for cannabinoid hemp, hemp extract and products
    25  derived  therefrom,  active  cannabinoid concentration per serving size,
    26  number of servings per container, and the growing region, state or coun-
    27  try of origin if not from the United States. Such rules and  regulations
    28  may  require  an appropriate fact panel that incorporates data regarding
    29  serving sizes and potency thereof.
    30    3. The packaging, sale, or possession of products derived from  canna-
    31  binoid  hemp  or  hemp extract used for human consumption not labeled or
    32  offered in conformity with  regulations  under  this  section  shall  be
    33  grounds  for the seizure or quarantine of the product, the imposition of
    34  a civil penalty against a processor or  retailer,  and  the  suspension,
    35  revocation  or  cancellation of a license, in accordance with this arti-
    36  cle.
    37    § 104. Processing of cannabinoid hemp and hemp extract. 1. No process-
    38  or shall sell or agree to sell or deliver in the state  any  cannabinoid
    39  hemp, hemp extract or product derived therefrom, used for human consump-
    40  tion,  except  in  sealed containers containing quantities in accordance
    41  with size standards pursuant to  rules  adopted  by  the  board.    Such
    42  containers  shall have affixed thereto such labels as may be required by
    43  the rules of the board.
    44    2. Processors shall take such  steps  necessary  to  ensure  that  the
    45  cannabinoid  hemp or hemp extract used in their processing operation has
    46  only been grown with pesticides that are registered by the department of
    47  environmental conservation or that specifically meet the  United  States
    48  environmental  protection  agency  registration  exemption  criteria for
    49  minimum risk, used in compliance with rules, regulations, standards  and
    50  guidelines  issued  by  the department of environmental conservation for
    51  pesticides.
    52    3. All cannabinoid hemp, hemp extract and products  derived  therefrom
    53  used  for  human consumption shall be extracted and processed in accord-
    54  ance with good manufacturing processes pursuant to Part 117 or Part  111
    55  of title 21 of the code of federal regulations, as may be defined, modi-
    56  fied and decided upon by the board in rules or regulations.

        A. 1617--C                         58

     1    4.  As  necessary  to  protect  human health, the board shall have the
     2  authority to: (a) regulate and prohibit specific ingredients, excipients
     3  or methods  used  in  processing  cannabinoid  hemp,  hemp  extract  and
     4  products  derived  therefrom;  and  (b)  prohibit,  or  expressly allow,
     5  certain  products  or  product  classes derived from cannabinoid hemp or
     6  hemp extract, to be processed.
     7    § 105. Laboratory testing.  Every  cannabinoid  hemp  processor  shall
     8  contract  with  an  independent  commercial  laboratory to test the hemp
     9  extract and products produced by the licensed processor. The board shall
    10  establish the necessary qualifications or  certifications  required  for
    11  such  laboratories  used  by licensees. The board is authorized to issue
    12  rules and regulations consistent  with  this  article  establishing  the
    13  testing  required,  the  reporting  of  testing results and the form for
    14  reporting such laboratory testing results. The board  has  authority  to
    15  require  licensees to submit any cannabinoid hemp, hemp extract or prod-
    16  uct derived therefrom, processed or offered for sale within  the  state,
    17  for  testing by the board. This section shall not obligate the board, in
    18  any way, to perform any testing on hemp, cannabinoid hemp, hemp  extract
    19  or product derived therefrom.
    20    § 106. New  York hemp product. The board may establish and adopt offi-
    21  cial grades  and  standards  for  cannabinoid  hemp,  hemp  extract  and
    22  products  derived  therefrom, as the board may deem advisable, which are
    23  produced for sale in this state and, from time to  time,  may  amend  or
    24  modify such grades and standards.
    25    § 107. Penalties.  Notwithstanding  the  provision  of  any law to the
    26  contrary, the failure to comply with a requirement of this article, or a
    27  regulation thereunder, may be punishable by a civil penalty of not  more
    28  than  one  thousand  dollars  for  a first violation; not more than five
    29  thousand dollars for a second violation within three years; and not more
    30  than ten thousand dollars for a  third  violation  and  each  subsequent
    31  violation thereafter, within three years.
    32    § 108. Hemp workgroup. The board, in consultation with the commission-
    33  er  of the department of agriculture and markets, may appoint a New York
    34  state hemp and hemp extract workgroup, composed of growers, researchers,
    35  producers, processors, manufacturers and  trade  associations,  to  make
    36  recommendations  for  the industrial hemp and cannabinoid hemp programs,
    37  state and federal policies and policy initiatives, and opportunities for
    38  the promotion and marketing of cannabinoid  hemp  and  hemp  extract  as
    39  consistent with federal and state laws, rules and regulations.
    40    § 109. Prohibitions. 1. Except as authorized by the United States food
    41  and  drug  administration,  the  processing  of cannabinoid hemp or hemp
    42  extract used for human consumption is prohibited within the state unless
    43  the processor is licensed under this article.
    44    2. Cannabinoid hemp and hemp extracts used for human  consumption  and
    45  grown or processed outside the state shall not be distributed or sold at
    46  retail  within the state, unless they meet all standards established for
    47  cannabinoid hemp under state law and regulations.
    48    3. The retail sale of cannabinoid hemp is  prohibited  in  this  state
    49  unless the retailer is licensed under this article.
    50    § 110. Special  use  permits.  The  board  shall have the authority to
    51  issue temporary permits for carrying on any activity related to cannabi-
    52  noid hemp, hemp extract and products derived therefrom,  licensed  under
    53  this  article.  The  board  may set reasonable fees for such permits, to
    54  establish the periods during which such permits are valid, and  to  make
    55  rules and regulations to implement this section.

        A. 1617--C                         59

     1    § 111. Severability.  If any provision of this article or the applica-
     2  tion thereof to any person or circumstances is held invalid, such  inva-
     3  lidity shall not affect other provisions or applications of this article
     4  which  can be given effect without the invalid provision or application,
     5  and to this end the provisions of this article are declared to be sever-
     6  able.

     7                                  ARTICLE 6
     8                             GENERAL PROVISIONS

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

        A. 1617--C                         60

     1  cannabis for which it is registered, licensed or permitted  to  dispense
     2  or  sell  to  patients  or cannabis consumers. This includes, but is not
     3  limited to, any consignment sale of any kind.
     4    5. No registered organization, licensee, or permittee, or other entity
     5  under  the  jurisdiction  of  the board, shall cease to be operated as a
     6  bona fide or legitimate premises within the contemplation of the  regis-
     7  tration,  license,  or  permit  issued  for such premises, as determined
     8  within the judgment of the board.
     9    6. No registered organization, licensee, or permittee, or other entity
    10  under the jurisdiction of the board, shall refuse, nor any person  hold-
    11  ing a registration, license, or permit refuse, nor any officer or direc-
    12  tor  of any corporation or organization holding a registration, license,
    13  or permit refuse, to appear and/or testify under oath at an  inquiry  or
    14  hearing  held  by the board, with respect to any matter bearing upon the
    15  registration, license, or permit, the  conduct  of  any  people  at  the
    16  licensed  premises,  or  bearing  upon  the character or fitness of such
    17  registrant, licensee, or permittee, or other entity under the  jurisdic-
    18  tion  of  the  board,  to continue to hold any registration, license, or
    19  permit. Nor shall any of the above offer false testimony under  oath  at
    20  such inquiry or hearing.
    21    7. No registered organization, licensee, or permittee, or other entity
    22  under  the  jurisdiction  of the board, shall engage, participate in, or
    23  aid or abet any violation of any provision of this chapter, or the rules
    24  or regulations of the board.
    25    8. It shall be the  responsibility  of  the  registered  organization,
    26  licensee  or  permittee,  or  other entity under the jurisdiction of the
    27  board, to exercise adequate supervision over the registered, licensed or
    28  permitted location.  Persons registered, licensed, or permitted shall be
    29  held strictly accountable for any and all violations that occur upon any
    30  registered, licensed,  or  permitted  premises,  and  for  any  and  all
    31  violations  committed  by or permitted by any manager, agent or employee
    32  of such registered, licensed, or permitted person.
    33    9. It shall be unlawful for any  person,  partnership  or  corporation
    34  operating  a place for profit or pecuniary gain, with a capacity for the
    35  assemblage of twenty or more persons to permit a person  or  persons  to
    36  come  to  the place of assembly for the purpose of cultivating, process-
    37  ing, distributing, or retail distribution or sale of cannabis or  canna-
    38  bis  products  on  said premises. This includes, but is not limited, to,
    39  cannabis or cannabis products that are either provided by  the  operator
    40  of the place of assembly, their agents, servants or employees, or canna-
    41  bis that is brought onto said premises by the person or persons assembl-
    42  ing  at  such  place,  unless  an  appropriate registration, license, or
    43  permit has first been obtained from the board by the  operator  of  said
    44  place of assembly.
    45    10.  No  adult-use cannabis or medical cannabis may be imported to, or
    46  exported out of, New York state by a registered  organization,  licensee
    47  or  person  holding  a  license  and/or permit pursuant to this chapter,
    48  until such time as it may become legal  to  do  so  under  federal  law.
    49  Should it become legal to do so under federal law, the board may promul-
    50  gate  such  rules  and  regulations as it deems necessary to protect the
    51  public and the policy of the state, including to prioritize and  promote
    52  New York cannabis.  Further, all such cannabis or cannabis products must
    53  be  distributed in a manner consistent with the provisions of this chap-
    54  ter.
    55    11. No registered organization, licensee or any of its  agents,  serv-
    56  ants  or  employees shall sell any cannabis product, or medical cannabis

        A. 1617--C                         61

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

        A. 1617--C                         62

     1  premises, was not conducted, in whole or in part,  for  the  purpose  of
     2  permitting the original licensee to avoid the effect of the revocation:
     3    (a) a sale between relatives;
     4    (b) a sale between related companies or partners in a business; or
     5    (c) a sale, lease, management agreement, or other agreement giving the
     6  applicant  control  over the cannabis at the premises, affected by other
     7  facts or circumstances that would indicate that the sale, lease, manage-
     8  ment agreement, or other agreement giving the applicant control over the
     9  cannabis at the premises, is entered into for  the  primary  purpose  of
    10  permitting the original licensee to avoid the effect of the revocation.
    11    5.  No  registered organization, licensee or permittee shall transport
    12  cannabis products or medical cannabis except in vehicles owned and oper-
    13  ated by such registered organization, licensee or  permittee,  or  hired
    14  and operated by such registered organization, licensee or permittee from
    15  a  trucking  or transportation company permitted and registered with the
    16  board.
    17    6. No common carrier or person operating a transportation facility  in
    18  this  state,  other  than  the United States government, shall knowingly
    19  receive for transportation or delivery within  the  state  any  cannabis
    20  products  or medical cannabis unless the shipment is accompanied by copy
    21  of a bill of lading, or other document, showing the name and address  of
    22  the  consignor,  the  name and address of the consignee, the date of the
    23  shipment, and the quantity and kind  of  cannabis  products  or  medical
    24  cannabis contained therein.
    25    §  127.  Protections for the use of cannabis; unlawful discriminations
    26  prohibited.  1. No person, registered organization, licensee or  permit-
    27  tee, employees, or their agents shall be subject to arrest, prosecution,
    28  or  penalty  in  any manner, or denied any right or privilege, including
    29  but not limited to civil liability or disciplinary action by a  business
    30  or  occupational  or  professional licensing board or office, solely for
    31  conduct permitted under this chapter. For the avoidance  of  doubt,  the
    32  appellate  division  of  the supreme court of the state of New York, and
    33  any disciplinary or character and fitness committees established by  law
    34  are occupational and professional licensing boards within the meaning of
    35  this  section. State or local law enforcement agencies shall not cooper-
    36  ate with or provide assistance to the government of the United States or
    37  any agency thereof in enforcing the federal  controlled  substances  act
    38  solely for actions consistent with this chapter, except as pursuant to a
    39  valid court order.
    40    2.  No school or landlord may refuse to enroll or lease to and may not
    41  otherwise penalize a person solely for  conduct  authorized  under  this
    42  chapter, except as exempted:
    43    (a)  if  failing to do so would cause the school or landlord to lose a
    44  monetary or licensing related benefit under federal law or regulations;
    45    (b) if the institution has  adopted  a  code  of  conduct  prohibiting
    46  cannabis use on the basis of religious belief; or
    47    (c)  if  a property is registered with the New York smoke-free housing
    48  registry, it is not required to permit the smoking of cannabis  products
    49  on its premises.
    50    3.  For  the  purposes of medical care, including organ transplants, a
    51  certified patient's authorized use of medical cannabis must  be  consid-
    52  ered  the equivalent of the use of any other medication under the direc-
    53  tion of a practitioner and does not constitute the  use  of  an  illicit
    54  substance  or  otherwise disqualify a registered qualifying patient from
    55  medical care.

        A. 1617--C                         63

     1    4. (a) No employer shall take adverse  employment  action  against  an
     2  employee  for  using  cannabis,  unless  (i)  such  employee's  usage is
     3  governed by state or local law  or  rule,  or  a  collective  bargaining
     4  agreement  that:  (1)  limits  or  prohibits the usage of cannabis while
     5  performing  the employee's job duties; (2) limits or prohibits the usage
     6  of cannabis as a  condition  of  attaining  or  maintaining  a  license,
     7  certification,  or  professional  status required for employment; or (3)
     8  governs the testing and disciplinary procedures related to  the  use  of
     9  cannabis  by employees; and (ii) the employee's usage is in violation of
    10  such state or local law or rules, or collective bargaining agreement.
    11    (b) Employees whose usage of medical cannabis is governed by state  or
    12  local  law  or  rules,  or  a  collective bargaining agreement that: (i)
    13  limits or prohibits the usage of cannabis while performing  the  employ-
    14  ee's  job  duties;  (ii)  limits or prohibits the usage of cannabis as a
    15  condition of attaining  or  maintaining  a  license,  certification,  or
    16  professional  status required for employment; or (iii) governs the test-
    17  ing and disciplinary procedures  related  to  the  use  of  cannabis  by
    18  employees, shall be afforded the same rights, procedures and protections
    19  that  are available and applicable to injured workers under the workers'
    20  compensation law, or any rules or  regulations  promulgated  thereunder,
    21  when  such injured workers are prescribed medications that may prohibit,
    22  restrict, or require  the  modification  of  the  performance  of  their
    23  duties.
    24    (c)  Employees  shall not face adverse employment actions for usage of
    25  cannabis, as such conduct is permitted under this chapter, prior to  the
    26  beginning  or after the conclusion of the employee's work hours, and off
    27  of the employer's premises and without use of the  employer's  equipment
    28  or other property.
    29    (d) No employer shall take adverse employment action against an appli-
    30  cant  for  employment,  or  otherwise  discriminate against or refuse to
    31  interview an applicant  for  employment,  for  using  cannabis  as  such
    32  conduct is permitted under this chapter.
    33    5.  Nothing  in  this section shall interfere with an employer's obli-
    34  gation to provide a safe and healthy work place,  free  from  recognized
    35  hazards,  as  required by state and federal occupation safety and health
    36  law or require an employer to  commit  any  act  that  would  cause  the
    37  employer  to  be  in  violation  of any other federal law, or that would
    38  result in the loss of a federal contract or federal funding.
    39    6. Nothing in this section shall restrict  an  employer's  ability  to
    40  prohibit  or take adverse employment action for the possession or use of
    41  intoxicating substances during work hours, or  require  an  employer  to
    42  commit  any  act  that  would  cause  the employer to be in violation of
    43  federal law, or that would result in the loss of a federal  contract  or
    44  federal  funding.    For  the  purposes of this section, an employer may
    45  consider an employee's ability to perform the employee's  job  responsi-
    46  bilities to be impaired when the employee manifests specific articulable
    47  symptoms  while  working that decrease or lessen the employee's perform-
    48  ance of the duties or tasks of the employee's job position.
    49    7. As used in this section, "adverse employment action" means refusing
    50  to hire or employ, barring or discharging from employment,  requiring  a
    51  person  to  retire from employment, or discriminating against in compen-
    52  sation or in terms, conditions, or privileges of employment.
    53    8. No person may be denied custody of or visitation or parenting  time
    54  with a minor, for conduct allowed under section 222.05 of the penal law,
    55  unless  the  child's  physical,  mental  or emotional condition has been
    56  impaired, or is in imminent danger of becoming impaired as a  result  of

        A. 1617--C                         64

     1  the  person's  behavior  as  established  by a fair preponderance of the
     2  evidence. For the purposes of this section, this determination cannot be
     3  based solely on whether, when, and how  often  a  person  uses  cannabis
     4  without separate evidence of harm.
     5    §  128.  Permits, registrations and licenses.  1. No permit, registra-
     6  tion or license shall be transferable or assignable except that notwith-
     7  standing any other provision of law, the permit, registration or license
     8  of a sole proprietor converting to corporate form, where such proprietor
     9  becomes the sole stockholder and only officer and director of  such  new
    10  corporation,  may  be  transferred  to  the  subject  corporation if all
    11  requirements of this chapter  remain  the  same  with  respect  to  such
    12  permit,  registration or license as transferred and, further, the regis-
    13  tered organization or licensee shall transmit to the board,  within  ten
    14  days  of  the transfer of license allowable under this subdivision, on a
    15  form prescribed by the board,  notification  of  the  transfer  of  such
    16  license.
    17    2. No permit, registration or license shall be pledged or deposited as
    18  collateral  security  for  any loan or upon any other condition; and any
    19  such pledge or deposit, and any contract providing  therefor,  shall  be
    20  void.
    21    3. Permits, registrations and licenses issued under this chapter shall
    22  contain,  in  addition  to  any  further  information  or material to be
    23  prescribed by the rules and regulations  of  the  board,  the  following
    24  information:
    25    (a) name of the person to whom the license is issued;
    26    (b)  type  of  license  and  what type of cannabis commerce is thereby
    27  permitted;
    28    (c) description by street and number, or otherwise, of licensed  prem-
    29  ises; and
    30    (d)  a  statement in substance that such license shall not be deemed a
    31  property or vested right, and that it may be revoked at any time  pursu-
    32  ant to law.
    33    §  129.  Laboratory  testing  permits.  1. The board shall approve and
    34  permit one or more independent cannabis  testing  laboratories  to  test
    35  medical  cannabis,  adult-use  cannabis  and/or cannabinoid hemp or hemp
    36  extract.
    37    2. To be permitted as an independent cannabis laboratory, a laboratory
    38  must apply to the board, on a form and in a  manner  prescribed  by  the
    39  office,  and  must  demonstrate the following to the satisfaction of the
    40  board:
    41    (a) the owners and directors of the laboratory are of good moral char-
    42  acter;
    43    (b) the laboratory and its staff has the skills, resources and  exper-
    44  tise  needed  to  accurately and consistently perform all of the testing
    45  required for adult-use cannabis,  medical  cannabis  and/or  cannabinoid
    46  hemp or hemp extract;
    47    (c)  the  laboratory has in place and will maintain adequate policies,
    48  procedures, and facility security to ensure proper:  collection,  label-
    49  ing, accessioning, preparation, analysis, result reporting, disposal and
    50  storage of adult-use cannabis, and/or medical cannabis;
    51    (d) the laboratory is physically located in New York state;
    52    (e)  the  laboratory  has  been  approved  by the department of health
    53  pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
    54  lations, pertaining to laboratories performing  environmental  analysis;
    55  and

        A. 1617--C                         65

     1    (f)  the  laboratory meets any and all requirements prescribed by this
     2  chapter and by the board in regulation.
     3    3.  The  owner of a laboratory testing permit under this section shall
     4  not hold a permit, registration or license in any category of this chap-
     5  ter and shall not have any direct or indirect ownership interest in such
     6  registered organization or licensee. No board member, officer,  manager,
     7  owner,  partner,  principal stakeholder or member of a registered organ-
     8  ization or licensee under this chapter, or such person's immediate fami-
     9  ly member, shall have an interest or voting  rights  in  any  laboratory
    10  testing permittee.
    11    4.  The board shall require that the permitted laboratory report test-
    12  ing results to the board in a manner, form and timeframe  as  determined
    13  by the office.
    14    5.  The  board  is  authorized  to  promulgate  regulations, requiring
    15  permitted laboratories to perform certain tests and services.
    16    6. A laboratory granted a laboratory testing permit under this chapter
    17  shall not required to be licensed by the federal drug enforcement  agen-
    18  cy.
    19    §  130.  Special use permits.  The board is hereby authorized to issue
    20  the following kinds of permits for  carrying  on  activities  consistent
    21  with  the  policy  and purpose of this chapter with respect to cannabis.
    22  The board has the authority to set fees for all permits issued  pursuant
    23  to  this  section,  to  establish  the  periods during which permits are
    24  authorized, and to make rules and regulations, including emergency regu-
    25  lations, to implement this section.
    26    1. Industrial cannabis permit - to purchase cannabis from one  of  the
    27  entities  licensed  by  the board for use in the manufacture and sale of
    28  any of the following, when such cannabis is not otherwise  suitable  for
    29  consumption  purposes,  namely:   (a) apparel, energy, paper, and tools;
    30  (b) scientific, chemical, mechanical and industrial products; or (c) any
    31  other industrial use as determined by the board in regulation.
    32    2. Trucking permit - to allow for the trucking  or  transportation  of
    33  cannabis  products,  or medical cannabis by a person other than a regis-
    34  tered organization or licensee under this chapter.
    35    3. Warehouse permit - to allow for the storage of  cannabis,  cannabis
    36  products,  or medical cannabis at a location not otherwise registered or
    37  licensed by the office.
    38    4. Packaging permit - to authorize a licensed cannabis distributor  to
    39  sort,  package,  label  and  bundle  cannabis  products from one or more
    40  registered organizations or licensed processors, on the premises of  the
    41  licensed  cannabis  distributor or at a warehouse for which a permit has
    42  been issued under this section.
    43    § 131.  Local  opt-out;  municipal  control  and  preemption.  1.  The
    44  provisions  of  article four of this chapter authorizing the retail sale
    45  of adult-use cannabis to cannabis consumers shall not be applicable to a
    46  town, city or village which, after a mandatory referendum held  pursuant
    47  to  section  twenty-three of the municipal home rule law, adopts a local
    48  law to prohibit the establishment  or  operation  of  retail  dispensary
    49  licenses contained in article four of this chapter, within the jurisdic-
    50  tion  of the town, city or village. Provided, however, that any town law
    51  shall apply to the area of the town outside of any village  within  such
    52  town.
    53    2.  Except  as  provided  for  in subdivision one of this section, all
    54  county, town, city and village governing  bodies  are  hereby  preempted
    55  from  adopting any rule, ordinance, regulation or prohibition pertaining
    56  to the operation or licensure  of  registered  organizations,  adult-use

        A. 1617--C                         66

     1  cannabis  licenses  or  hemp  licenses. However, municipalities may pass
     2  local laws and ordinances  governing  the  time,  place  and  manner  of
     3  licensed adult-use cannabis retail dispensaries, provided such ordinance
     4  or  regulation  does  not  make  the  operation  of such licensed retail
     5  dispensaries unreasonably impracticable as determined by  the  board  in
     6  consultation with the state cannabis advisory board.
     7    §  132.  Penalties  for  violation  of this chapter. 1. Any person who
     8  cultivates for sale or sells cannabis,  cannabis  products,  or  medical
     9  cannabis  without  having an appropriate registration, license or permit
    10  therefor, or whose registration, license, or permit  has  been  revoked,
    11  surrendered  or  cancelled,  may be subject to prosecution in accordance
    12  with article two hundred twenty-two of the penal law.
    13    2. Any registered organization or licensee, who has received notifica-
    14  tion of a registration or license suspension pursuant to the  provisions
    15  of this chapter, who sells cannabis, cannabis products, medical cannabis
    16  or  cannabinoid hemp or hemp extract during the suspension period, shall
    17  be subject to prosecution as provided in article two hundred  twenty-two
    18  of  the penal law, and upon conviction thereof under this section may be
    19  subject to a civil penalty of not more than five thousand dollars.
    20    3. Any person who shall knowingly make any material false statement in
    21  the application for a registration, license or a permit under this chap-
    22  ter may be subject to a civil penalty of  not  more  than  two  thousand
    23  dollars.
    24    4. Any person under the age of twenty-one found to be in possession of
    25  cannabis or cannabis products who is not a certified patient pursuant to
    26  article  three of this chapter shall be in violation of this chapter and
    27  shall be subject to the following penalty:
    28    (a) (i) The person shall be subject to a civil  penalty  of  not  more
    29  than  fifty dollars. The civil penalty shall be payable to the office of
    30  cannabis management.
    31    (ii) Any identifying information provided by  the  enforcement  agency
    32  for  the  purpose of facilitating payment of the civil penalty shall not
    33  be shared or disclosed under any circumstances with any other agency  or
    34  law enforcement division.
    35    (b)  The  person shall, upon payment of the required civil penalty, be
    36  provided with information related to the  dangers  of  underage  use  of
    37  cannabis and information related to cannabis use disorder by the office.
    38    (c) The issuance and subsequent payment of such civil penalty shall in
    39  no way qualify as a criminal accusation, admission of guilt, or a crimi-
    40  nal  conviction and shall in no way operate as a disqualification of any
    41  such person from holding public office, attaining public employment,  or
    42  as a forfeiture of any right or privilege.
    43    5.  Cannabis  recovered  from  individuals  who  are  found  to  be in
    44  violation of this chapter may after notice and opportunity for a hearing
    45  be considered a nuisance and shall be disposed of or destroyed.
    46    § 133. Revocation of registrations, licenses and  permits  for  cause;
    47  procedure  for revocation or cancellation.  1. Any registration, license
    48  or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
    49  suspended  and/or  subjected  to  the  imposition of a civil penalty for
    50  cause, and there shall be a rebuttable presumption of revocation for the
    51  following causes:
    52    (a) conviction of the registered organization, licensee, permittee  or
    53  his  or  her  agent  or employee for selling any illicit cannabis on the
    54  premises registered, licensed or permitted; or
    55    (b) for  transferring,  assigning  or  hypothecating  a  registration,
    56  license or permit without prior written approval of the office.

        A. 1617--C                         67

     1    2.  Notwithstanding  the issuance of a registration, license or permit
     2  by way of renewal, the board may revoke, cancel or suspend  such  regis-
     3  tration, license or permit and/or may impose a civil penalty against any
     4  holder  of  such  registration, license or permit, as prescribed by this
     5  section,  for  causes  or violations occurring during the license period
     6  immediately preceding the issuance  of  such  registration,  license  or
     7  permit.
     8    3.  (a)  As  used  in  this  section,  the term "for cause" shall also
     9  include the existence of a sustained and continuing pattern  of  miscon-
    10  duct,  failure  to  adequately prevent diversion or disorder on or about
    11  the registered, licensed or permitted premises, or in the area in  front
    12  of or adjacent to the registered or licensed premises, or in any parking
    13  lot  provided  by  the  registered  organization  or licensee for use by
    14  registered  organization  or  licensee's  patrons,  which  significantly
    15  adversely  affects  or  tends  to  significantly  adversely  affect  the
    16  protection, health, welfare, safety, or repose of the inhabitants of the
    17  area in which the registered or licensed premises is located.
    18    (b) (i) As used in this section,  the  term  "for  cause"  shall  also
    19  include  deliberately misleading the board or office of cannabis manage-
    20  ment:
    21    (A) as to the nature and character of the business to be  operated  by
    22  the registered organization, licensee or permittee; or
    23    (B) by substantially altering the nature or character of such business
    24  during  the registration or licensing period without seeking appropriate
    25  approvals from the board.
    26    (ii) As used in this subdivision, the term "substantially altering the
    27  nature or character" of such business shall  mean  any  significant  and
    28  material  alteration  in the scope of business activities conducted by a
    29  registered  organization,  licensee  or  permittee  that  would  require
    30  obtaining an alternate form of registration, license or permit.
    31    4.  As used in this chapter, the existence of a sustained and continu-
    32  ing pattern of misconduct, failure to adequately  prevent  diversion  or
    33  disorder  on  or about the premises may be presumed upon the sixth inci-
    34  dent reported to the board by a law enforcement agency, or discovered by
    35  the board during the course of any investigation, of misconduct,  diver-
    36  sion or disorder on or about the premises or related to the operation of
    37  the  premises, absent clear and convincing evidence of either fraudulent
    38  intent on the part of any complainant or a factual error with respect to
    39  the content of any report concerning such complaint relied upon  by  the
    40  board.
    41    5.  Notwithstanding any other provision of this chapter to the contra-
    42  ry, a suspension imposed under this section  against  the  holder  of  a
    43  registration  issued  pursuant  to  article three of this chapter, shall
    44  only suspend the licensed activities related to the  type  of  cannabis,
    45  medical cannabis or adult-use cannabis involved in the violation result-
    46  ing in the suspension.
    47    6. Any registration, license or permit issued by the board pursuant to
    48  this  chapter may be revoked, cancelled or suspended and/or be subjected
    49  to the imposition of a monetary penalty set forth in this chapter in the
    50  manner prescribed by this section.
    51    7. The board may on its own initiative, or on complaint of any person,
    52  institute proceedings to revoke, cancel or suspend any adult-use  canna-
    53  bis  retail dispensary license or adult-use cannabis on-site consumption
    54  license and may impose a civil penalty  against  the  licensee  after  a
    55  hearing at which the licensee shall be given an opportunity to be heard.

        A. 1617--C                         68

     1  Such hearing shall be held in such manner and upon such notice as may be
     2  prescribed in regulation by the board.
     3    8.  All  other  registrations,  licenses  or permits issued under this
     4  chapter may be revoked, cancelled, suspended and/or made subject to  the
     5  imposition  of  a civil penalty by the office after a hearing to be held
     6  in such manner and upon such notice as may be prescribed  in  regulation
     7  by the board.
     8    9.  Where a licensee or permittee is convicted of two or more qualify-
     9  ing offenses within a five-year period,  the  office,  upon  receipt  of
    10  notification of such second or subsequent conviction, shall, in addition
    11  to  any  other sanction or civil or criminal penalty imposed pursuant to
    12  this chapter, impose on such licensee a civil penalty not to exceed  ten
    13  thousand dollars. For purposes of this subdivision, a qualifying offense
    14  shall  mean the sale of cannabis to a person under the age of twenty-one
    15  not otherwise authorized by this chapter. For purposes of this  subdivi-
    16  sion  only,  a  conviction of a licensee or an employee or agent of such
    17  licensee shall constitute a conviction of such licensee.
    18    § 134. Lawful actions pursuant to this chapter. 1.  Contracts  related
    19  to the operation of registered organizations, licenses and permits under
    20  this  chapter  shall  be lawful and shall not be deemed unenforceable on
    21  the basis that the  actions  permitted  pursuant  to  the  registration,
    22  license or permit are prohibited by federal law.
    23    2. The following actions are not unlawful as provided under this chap-
    24  ter, shall not be an offense under any state or local law, and shall not
    25  result  in any civil penalty, fine, seizure, or forfeiture of assets, or
    26  be the basis for detention  or  search  against  any  person  acting  in
    27  accordance with this chapter:
    28    (a)  Actions  of a registered organization, licensee, or permittee, or
    29  the employees or agents of such  registered  organization,  licensee  or
    30  permittee,  as  permitted  by this chapter and consistent with rules and
    31  regulations of the office, pursuant to a valid registration, license  or
    32  permit issued by the board.
    33    (b)  Actions  of  those  who allow property to be used by a registered
    34  organization, licensee, or permittee, or the employees or agents of such
    35  registered organization, licensee or permittee,  as  permitted  by  this
    36  chapter  and consistent with rules and regulations of the office, pursu-
    37  ant to a valid registration, license or permit issued by the board.
    38    (c) Actions of any person or entity, their employees, or their  agents
    39  providing a service to a registered organization, licensee, permittee or
    40  a  potential registered organization, licensee, or permittee, as permit-
    41  ted by this chapter and consistent with rules  and  regulations  of  the
    42  office, relating to the formation of a business.
    43    (d) The purchase, cultivation, possession, or consumption of cannabis,
    44  and medical cannabis, as permitted by law, and consistent with rules and
    45  regulations of the board.
    46    §  135.  Review  by courts. An action by the board shall be subject to
    47  review by the supreme court in the manner provided in  article  seventy-
    48  eight of the civil practice law and rules including, but not limited to:
    49    (a)  Refusal  by  the  board  to  issue  a registration, license, or a
    50  permit.
    51    (b) The revocation, cancellation  or  suspension  of  a  registration,
    52  license, or permit by the board.
    53    (c)  The failure or refusal by the board to render a decision upon any
    54  application or hearing submitted to or held by the  board  within  sixty
    55  days after such submission or hearing.

        A. 1617--C                         69

     1    (d) The transfer by the board of a registration, license, or permit to
     2  any  other entity or premises, or the failure or refusal by the board to
     3  approve such a transfer.
     4    (e) Refusal to approve alteration of premises.
     5    (f)  Refusal to approve a corporate change in stockholders, stockhold-
     6  ings, officers or directors.
     7    § 136. Illicit cannabis. 1. "Illicit cannabis" means and includes  any
     8  cannabis product or medical cannabis that is owned, cultivated, distrib-
     9  uted,  bought,  sold,  packaged, rectified, blended, treated, fortified,
    10  mixed, processed, warehoused, possessed or transported for which any tax
    11  required to have been paid under any applicable state law has  not  been
    12  paid.
    13    2.  Any  person  holding  a license, permit or registration under this
    14  chapter who shall knowingly possess or have under his or her control any
    15  cannabis known by the person to be illicit cannabis is guilty of a class
    16  B misdemeanor.
    17    3. Any person holding a license, permit or  registration  pursuant  to
    18  this  chapter  who  shall  knowingly  barter, exchange, give or sell, or
    19  offer to barter, exchange, give or sell any cannabis known by the person
    20  to be illicit cannabis is guilty of a misdemeanor.
    21    4. Any person holding a license, permit or  registration  pursuant  to
    22  this  chapter  who  shall  knowingly  possess  or  have under his or her
    23  control or transport any cannabis known by  the  person  to  be  illicit
    24  cannabis  with intent to barter, exchange, give or sell such cannabis is
    25  guilty of a class B misdemeanor.
    26    5. Any person who, being the owner, lessee or occupant  of  any  room,
    27  shed, tenement, booth, building, float, vessel or part thereof knowingly
    28  permits  the  same  to be used for the cultivation, processing, distrib-
    29  ution, purchase, sale, warehousing, transportation  or  storage  of  any
    30  illicit cannabis is guilty of a violation.
    31    § 137. Persons forbidden to traffic cannabis; certain officials not to
    32  be  interested  in  manufacture  or  sale  of  cannabis products. 1. The
    33  following are forbidden to traffic in cannabis except  in  extraordinary
    34  circumstances as determined by the board:
    35    (a)  An individual who has been convicted of an offense related to the
    36  functions or duties of owning and  operating  a  business  within  three
    37  years  of the application date, except that if the board determines that
    38  the owner or licensee is otherwise suitable to be issued a license,  and
    39  the  board  determines  granting  the  license  is not inconsistent with
    40  public safety, the board shall conduct a thorough review of  the  nature
    41  of  the  crime, conviction, circumstances and evidence of rehabilitation
    42  of the owner in accordance with article twenty-three-A of the correction
    43  law, and shall evaluate the suitability of the owner or licensee  to  be
    44  issued  a  license  based  on  the evidence found through the review. In
    45  determining which offenses are substantially related to the functions or
    46  duties of owning and operating a business, the board shall include,  but
    47  not be limited to, the following:
    48    (i)  a  felony  conviction within the past five years involving fraud,
    49  money laundering, forgery and other unlawful conduct related  to  owning
    50  and operating a business; and
    51    (ii)  a  felony  conviction  within  the  past  five years for hiring,
    52  employing, or using a minor in transporting, carrying,  selling,  giving
    53  away,  preparing  for  sale,  or peddling, any controlled substance to a
    54  minor; or selling, offering to sell, furnishing,  offering  to  furnish,
    55  administering, or giving any controlled substance to a minor.
    56    (b) A person under the age of twenty-one years;

        A. 1617--C                         70

     1    (c) A partnership or a corporation, unless each member of the partner-
     2  ship,  or  each  of  the  principal officers and directors of the corpo-
     3  ration, is a citizen of the United States or a person lawfully  admitted
     4  for  permanent  residence in the United States, not less than twenty-one
     5  years  of  age;  provided  however  that  a  corporation which otherwise
     6  conforms to the requirements of this section and chapter may be licensed
     7  if each of its principal officers and more than one-half of  its  direc-
     8  tors  are citizens of the United States or persons lawfully admitted for
     9  permanent residence in the United States; and provided  further  that  a
    10  corporation  organized  under  the not-for-profit corporation law or the
    11  education law which otherwise  conforms  to  the  requirements  of  this
    12  section  and  chapter  may be licensed if each of its principal officers
    13  and directors are not less than twenty-one years of age;  and  provided,
    14  further,  that  a  corporation organized under the not-for-profit corpo-
    15  ration law or the education law and located on the premises of a college
    16  as defined by section two of the education law which otherwise  conforms
    17  to  the requirements of this section and chapter may be licensed if each
    18  of its principal officers and each of its directors are  not  less  than
    19  twenty-one years of age;
    20    (d)  A  person  who  shall have had any registration or license issued
    21  under this chapter revoked for cause, until the expiration of  one  year
    22  from the date of such revocation;
    23    (e)  A  person not registered or licensed under the provisions of this
    24  chapter, who has been convicted of a misdemeanor or felony in  violation
    25  of  this chapter, until the expiration of one year from the date of such
    26  conviction; or
    27    (f) A corporation or partnership, if any officer and director  or  any
    28  partner,  while  not  licensed under the provisions of this chapter, has
    29  been convicted of a misdemeanor or felony in violation of this  chapter,
    30  or  has  had a registration or license issued under this chapter revoked
    31  for cause, until the expiration of up to one year from the date of  such
    32  conviction or revocation as determined by the board.
    33    2.  Except as may otherwise be provided for in regulation, it shall be
    34  unlawful for any chief of police, police officer or subordinate  of  any
    35  police  department  in  the  state,  to be either directly or indirectly
    36  interested in the cultivation,  processing,  distribution,  or  sale  of
    37  cannabis  products  or to offer for sale, or recommend to any registered
    38  organization or licensee any cannabis products.  A  person  may  not  be
    39  denied  any registration or license granted under the provisions of this
    40  chapter solely on the grounds of being the spouse or domestic partner of
    41  a public servant described in this section. The solicitation  or  recom-
    42  mendation  made  to any registered organization or licensee, to purchase
    43  any cannabis products by any police official or subordinate as  hereina-
    44  bove  described,  shall  be presumptive evidence of the interest of such
    45  official or subordinate in the cultivation, processing, distribution, or
    46  sale of cannabis products.
    47    3. No elected village officer shall be subject to the limitations  set
    48  forth  in  subdivision  two  of this section unless such elected village
    49  officer shall be assigned duties directly relating to the  operation  or
    50  management of the police department.
    51    §  138. Access to criminal history information through the division of
    52  criminal justice services.   In connection with  the  administration  of
    53  this  chapter,  the  board  is authorized to request, receive and review
    54  criminal history information through the division  of  criminal  justice
    55  services  with  respect  to  any person seeking a registration, license,
    56  permit or  authorization  to  cultivate,  process,  distribute  or  sell

        A. 1617--C                         71

     1  medical  cannabis, adult-use cannabis, cannabinoid hemp or hemp extract.
     2  At the board's request, each person, member, principal and/or officer of
     3  the applicant shall submit to the board his or her fingerprints in  such
     4  form and in such manner as specified by the division, for the purpose of
     5  conducting  a  criminal  history search identifying criminal convictions
     6  and pending criminal charges and returning a report thereon  in  accord-
     7  ance  with  the  procedures and requirements established by the division
     8  pursuant to the provisions of article thirty-five of the executive  law,
     9  which  shall include the payment of the reasonable prescribed processing
    10  fees for the cost of the division's full search  and  retain  procedures
    11  and a national criminal history record check. The board, or their desig-
    12  nee,  shall submit such fingerprints and the processing fee to the divi-
    13  sion. The division shall forward to the board a report with  respect  to
    14  the  applicant's  previous criminal history, if any, or a statement that
    15  the applicant has no previous criminal history according to  its  files.
    16  Fingerprints  submitted to the division pursuant to this subdivision may
    17  also be submitted to the federal bureau of investigation for a  national
    18  criminal  history record check. If additional copies of fingerprints are
    19  required, the applicant shall furnish them upon request. Upon receipt of
    20  such criminal history information, the board shall provide  such  appli-
    21  cant  with  a copy of such criminal history information, together with a
    22  copy of article twenty-three-A of the correction law,  and  inform  such
    23  applicant of his or her right to seek correction of any incorrect infor-
    24  mation  contained in such criminal history information pursuant to regu-
    25  lations and procedures established by the division of  criminal  justice
    26  services.
    27    §  139.  Severability. If any provision of this chapter or application
    28  thereof to any person or circumstances is held invalid, such  invalidity
    29  shall  not  affect other provisions or applications of this chapter that
    30  can be given effect without the invalid provision or application, and to
    31  this end the provisions of this chapter are declared severable.
    32    § 3. Section 3302 of the public health law, as added by chapter 878 of
    33  the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
    34  subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 22, 23, 24, 25,
    35  26, 28, 29 and 30 as renumbered by chapter 537  of  the  laws  of  1998,
    36  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
    37  and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
    38  subdivision 20, the opening paragraph of subdivision 22 and  subdivision
    39  29  as  amended  by  chapter  163 of the laws of 1973, subdivision 21 as
    40  amended by chapter 1 of the laws of 2020, subdivision 31 as  amended  by
    41  section 4 of part A of chapter 58 of the laws of 2004, subdivision 41 as
    42  added  by  section  6  of part A of chapter 447 of the laws of 2012, and
    43  subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of
    44  the laws of 2014, is amended to read as follows:
    45    § 3302. Definitions of terms of general use in  this  article.  Except
    46  where   different   meanings   are  expressly  specified  in  subsequent
    47  provisions of this article, the following terms have the following mean-
    48  ings:
    49    1. "Addict" means a person who habitually uses a controlled  substance
    50  for  a  non-legitimate or unlawful use, and who by reason of such use is
    51  dependent thereon.
    52    2.  "Administer"  means  the  direct  application  of   a   controlled
    53  substance,  whether  by  injection,  inhalation, ingestion, or any other
    54  means, to the body of a patient or research subject.
    55    3. "Agent" means an authorized person who acts on behalf of or at  the
    56  direction of a manufacturer, distributor, or dispenser. No person may be

        A. 1617--C                         72

     1  authorized  to  so  act  if  under  title VIII of the education law such
     2  person would not be permitted to engage in such  conduct.  It  does  not
     3  include  a  common or contract carrier, public warehouseman, or employee
     4  of  the  carrier  or  warehouseman  when  acting in the usual and lawful
     5  course of the carrier's or warehouseman's business.
     6    4. ["Concentrated Cannabis" means
     7    (a) the separated resin, whether crude or purified,  obtained  from  a
     8  plant of the genus Cannabis; or
     9    (b)  a  material,  preparation,  mixture,  compound or other substance
    10  which contains more than two and one-half percent by weight  of  delta-9
    11  tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
    12  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    13  terpene numbering system.
    14    5.] "Controlled substance" means a substance or substances  listed  in
    15  section thirty-three hundred six of this [chapter] title.
    16    [6.]  5.  "Commissioner"  means commissioner of health of the state of
    17  New York.
    18    [7.] 6. "Deliver" or "delivery"  means  the  actual,  constructive  or
    19  attempted transfer from one person to another of a controlled substance,
    20  whether or not there is an agency relationship.
    21    [8.]  7.  "Department"  means the department of health of the state of
    22  New York.
    23    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    24  mate user or research subject by lawful means, including by means of the
    25  internet, and includes the packaging, labeling, or compounding necessary
    26  to prepare the substance for such delivery.
    27    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    28  ing by means of the internet, other than by administering or dispensing.
    29    [11.] 10. "Distributor" means a person who  distributes  a  controlled
    30  substance.
    31    [12.]  11.  "Diversion" means manufacture, possession, delivery or use
    32  of a controlled substance by a person or in a  manner  not  specifically
    33  authorized by law.
    34    [13.] 12. "Drug" means
    35    (a) substances recognized as drugs in the official United States Phar-
    36  macopoeia,  official  Homeopathic Pharmacopoeia of the United States, or
    37  official National Formulary, or any supplement to any of them;
    38    (b) substances intended for use in the  diagnosis,  cure,  mitigation,
    39  treatment, or prevention of disease in man or animals; and
    40    (c) substances (other than food) intended to affect the structure or a
    41  function  of  the  body of man or animal. It does not include devices or
    42  their components, parts, or accessories.
    43    [14.] 13. "Federal agency" means the Drug Enforcement  Administration,
    44  United States Department of Justice, or its successor agency.
    45    [15.]  14. "Federal controlled substances act" means the Comprehensive
    46  Drug Abuse Prevention and Control Act of 1970, Public  Law  91-513,  and
    47  any  act  or  acts  amendatory  or  supplemental  thereto or regulations
    48  promulgated thereunder.
    49    [16.] 15. "Federal registration number" means such number assigned  by
    50  the  Federal agency to any person authorized to manufacture, distribute,
    51  sell, dispense or administer controlled substances.
    52    [17.] 16. "Habitual user" means any person who is,  or  by  reason  of
    53  repeated  use of any controlled substance for non-legitimate or unlawful
    54  use is in danger of becoming, dependent upon such substance.
    55    [18.] 17.  "Institutional  dispenser"  means  a  hospital,  veterinary
    56  hospital,  clinic,  dispensary,  maternity  home,  nursing  home, mental

        A. 1617--C                         73

     1  hospital or similar facility approved and certified by the department as
     2  authorized to  obtain  controlled  substances  by  distribution  and  to
     3  dispense and administer such substances pursuant to the order of a prac-
     4  titioner.
     5    [19.]  18.  "License"  means  a  written  authorization  issued by the
     6  department or the New York  state  department  of  education  permitting
     7  persons  to  engage  in  a specified activity with respect to controlled
     8  substances.
     9    [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
    10  gation,   compounding,   cultivation,  conversion  or  processing  of  a
    11  controlled substance, either directly or  indirectly  or  by  extraction
    12  from substances of natural origin, or independently by means of chemical
    13  synthesis, or by a combination of extraction and chemical synthesis, and
    14  includes  any  packaging  or repackaging of the substance or labeling or
    15  relabeling of its container, except that this term does not include  the
    16  preparation,   compounding,   packaging  or  labeling  of  a  controlled
    17  substance:
    18    (a) by a practitioner as an incident to his administering or  dispens-
    19  ing  of  a  controlled substance in the course of his professional prac-
    20  tice; or
    21    (b) by a practitioner, or by his authorized  agent  under  his  super-
    22  vision, for the purpose of, or as an incident to, research, teaching, or
    23  chemical analysis and not for sale; or
    24    (c)  by  a pharmacist as an incident to his dispensing of a controlled
    25  substance in the course of his professional practice.
    26    [21. "Marihuana" means 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. The term
    30  "marihuana" shall not include:
    31    (a) the mature stalks of the plant, fiber produced  from  the  stalks,
    32  oil  or cake made from the seeds of the plant, any other compound, manu-
    33  facture, salt, derivative, mixture, or preparation of the mature  stalks
    34  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    35  sterilized seed of the plant which is incapable of germination;
    36    (b) hemp, as defined in subdivision one of section five  hundred  five
    37  of the agriculture and markets law;
    38    (c)  cannabinoid hemp as defined in subdivision two of section thirty-
    39  three hundred ninety-eight of this chapter; or
    40    (d) hemp extract as defined in subdivision  five  of  section  thirty-
    41  three hundred ninety-eight of this chapter.
    42    22.]  20. "Narcotic drug" means any of the following, whether produced
    43  directly or  indirectly  by  extraction  from  substances  of  vegetable
    44  origin,  or independently by means of chemical synthesis, or by a combi-
    45  nation of extraction and chemical synthesis:
    46    (a) opium and opiate, and any salt, compound, derivative, or  prepara-
    47  tion of opium or opiate;
    48    (b)  any  salt,  compound,  isomer, derivative, or preparation thereof
    49  which is chemically equivalent or identical with any of  the  substances
    50  referred  to in [subdivision] paragraph (a) of this subdivision, but not
    51  including the isoquinoline alkaloids of opium;
    52    (c) opium poppy and poppy straw.
    53    [23.] 21. "Opiate" means any substance having an addiction-forming  or
    54  addiction-sustaining  liability  similar to morphine or being capable of
    55  conversion into a drug having addiction-forming or  addiction-sustaining
    56  liability.  It  does  not  include,  unless  specifically  designated as

        A. 1617--C                         74

     1  controlled under section [3306] thirty-three hundred six of this  [arti-
     2  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
     3  its  salts (dextromethorphan). It does include its racemic and levorota-
     4  tory forms.
     5    [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
     6  somniferum L., except its seeds.
     7    [25.] 23. "Person" means individual, institution, corporation, govern-
     8  ment or governmental subdivision  or  agency,  business  trust,  estate,
     9  trust, partnership or association, or any other legal entity.
    10    [26.]  24. "Pharmacist" means any person licensed by the state depart-
    11  ment of education to practice pharmacy.
    12    [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
    13  York  state  board  of  pharmacy  and registered with the Federal agency
    14  pursuant to the federal controlled substances act.
    15    [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
    16  opium poppy, after mowing.
    17    [29.] 27. "Practitioner" means:
    18    A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
    19  gator, or other person licensed, or  otherwise  permitted  to  dispense,
    20  administer or conduct research with respect to a controlled substance in
    21  the  course  of  a  licensed  professional practice or research licensed
    22  pursuant to this article. Such person shall be deemed  a  "practitioner"
    23  only  as  to such substances, or conduct relating to such substances, as
    24  is permitted by his license, permit or otherwise permitted by law.
    25    [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
    26  prescription,  permitting an ultimate user lawfully to obtain controlled
    27  substances  from  any  person  authorized  by  law  to   dispense   such
    28  substances.
    29    [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
    30  prescription, an electronic prescription, an oral prescription[,] or  an
    31  out-of-state prescription[, or any one].
    32    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
    33  er, or offer or agree to do the same.
    34    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
    35  possesses a controlled substance for his own use or the use by a  member
    36  of  his  household  or  for an animal owned by him or in his custody. It
    37  shall also mean and include a person designated, by a practitioner on  a
    38  prescription, to obtain such substance on behalf of the patient for whom
    39  such substance is intended.
    40    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    41  cations facilities which comprise the worldwide network of networks that
    42  employ a set of industry standards and protocols, or any predecessor  or
    43  successor  protocol  to  such  protocol,  to exchange information of all
    44  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
    45  networks,  whether  private  or  public, used to transmit information by
    46  electronic means.
    47    [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
    48  distribution,  or  dispensing  of  a  controlled substance that uses the
    49  internet, is initiated by use of the internet or causes the internet  to
    50  be used.
    51    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
    52  in  the  United  States  that sells, delivers or dispenses, or offers to
    53  sell, deliver, or dispense, a  controlled  substance  by  means  of  the
    54  internet.
    55    [37.]  35.  "Electronic prescription" means a prescription issued with
    56  an electronic signature and transmitted by electronic means  in  accord-

        A. 1617--C                         75

     1  ance with regulations of the commissioner and the commissioner of educa-
     2  tion  and consistent with federal requirements. A prescription generated
     3  on an electronic system that is printed out or transmitted via facsimile
     4  is  not  considered  an  electronic  prescription  and  must be manually
     5  signed.
     6    [38.] 36. "Electronic" means of or relating to technology having elec-
     7  trical, digital, magnetic, wireless, optical, electromagnetic or similar
     8  capabilities. "Electronic" shall not include facsimile.
     9    [39.] 37.  "Electronic  record"  means  a  paperless  record  that  is
    10  created,  generated,  transmitted,  communicated,  received or stored by
    11  means of electronic equipment and includes the preservation,  retrieval,
    12  use  and  disposition in accordance with regulations of the commissioner
    13  and the commissioner of education and in compliance with federal law and
    14  regulations.
    15    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    16  process, attached to or logically associated with an  electronic  record
    17  and  executed or adopted by a person with the intent to sign the record,
    18  in accordance with regulations of the commissioner and the  commissioner
    19  of education.
    20    [41.]  39.  "Registry"  or  "prescription monitoring program registry"
    21  means the prescription monitoring program registry established  pursuant
    22  to section thirty-three hundred forty-three-a of this article.
    23    [42.]  40. "Compounding" means the combining, admixing, mixing, dilut-
    24  ing, pooling, reconstituting, or otherwise altering of a  drug  or  bulk
    25  drug  substance to create a drug with respect to an outsourcing facility
    26  under section 503B of the  federal  Food,  Drug  and  Cosmetic  Act  and
    27  further defined in this section.
    28    [43.] 41. "Outsourcing facility" means a facility that:
    29    (a)  is  engaged  in  the  compounding  of sterile drugs as defined in
    30  section sixty-eight hundred two of the education law;
    31    (b) is currently registered as an  outsourcing  facility  pursuant  to
    32  article one hundred thirty-seven of the education law; and
    33    (c)  complies  with  all  applicable requirements of federal and state
    34  law, including the Federal Food, Drug and Cosmetic Act.
    35    Notwithstanding any other provision of law to the  contrary,  when  an
    36  outsourcing  facility  distributes  or  dispenses any drug to any person
    37  pursuant to a prescription, such outsourcing facility shall be deemed to
    38  be providing pharmacy services and shall be subject to all  laws,  rules
    39  and regulations governing pharmacies and pharmacy services.
    40    §  4.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
    41  26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
    42  section  3306  of  the public health law, paragraphs 13, 14, 15, 16, 17,
    43  18, 19, 20, 21, 22, 23 and 24 as added by chapter 664  of  the  laws  of
    44  1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
    45  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
    46  laws of 2006, are amended to read as follows:
    47    (13) [Marihuana.
    48    (14)] Mescaline.
    49    [(15)] (14) Parahexyl. Some trade or other  names:  3-Hexyl-1-hydroxy-
    50  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
    51    [(16)] (15)  Peyote.  Meaning all parts of the plant presently classi-
    52  fied botanically as Lophophora williamsii Lemaire,  whether  growing  or
    53  not,  the  seeds  thereof,  any extract from any part of such plant, and
    54  every compound, manufacture, salts, derivative, mixture, or  preparation
    55  of such plant, its seeds or extracts.
    56    [(17)] (16) N-ethyl-3-piperidyl benzilate.

        A. 1617--C                         76

     1    [(18)] (17) N-methyl-3-piperidyl benzilate.
     2    [(19)] (18) Psilocybin.
     3    [(20)] (19) Psilocyn.
     4    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
     5  derived  from  the cannabis plant that are equivalents of the substances
     6  contained in the plant, or in the resinous extractives of cannabis,  sp.
     7  and/or synthetic substances, derivatives, and their isomers with similar
     8  chemical structure and pharmacological activity such as the following:
     9    [/\]  delta  1  cis  or  trans tetrahydrocannabinol, and their optical
    10  isomers
    11    [/\] delta 6 cis or  trans  tetrahydrocannabinol,  and  their  optical
    12  isomers
    13    [/\]  delta  3,  4  cis or trans tetrahydrocannabinol, and its optical
    14  isomers (since nomenclature of these substances is  not  internationally
    15  standardized,  compounds  of  these  structures, regardless of numerical
    16  designation of atomic positions covered).
    17    [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
    18  names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
    19  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    20    [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
    21  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    22    [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
    23  names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
    24  phencyclidine, TPCP, TCP.
    25    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    26    [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
    27  N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
    28  MDE, MDEA.
    29    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    30  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    31  N-hydroxy MDA.
    32    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    33  names: TCPY.
    34    [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
    35  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    36  3- (2-aminobutyl) indole; Alpha-ET or AET.
    37    [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
    38  names: DOET.
    39    [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
    40  names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
    41  DOB; 2C-B, Nexus.
    42    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    43  optical isomers, salts and salts of isomers.
    44    §  5.  Subdivision  8  of  section 1399-n of the public health law, as
    45  amended by chapter 131 of the laws  of  2019,  is  amended  to  read  as
    46  follows:
    47    8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    48  any other matter or substance  which  contains  tobacco  or  [marihuana]
    49  cannabis  as  defined  in  section  [thirty-three  hundred  two  of this
    50  chapter] 222.00 of the penal law.
    51    § 5-a. Section 1399-q of the public health law, as amended by  chapter
    52  335 of the laws of 2017, is amended to read as follows:
    53    §  1399-q.  Smoking  and  vaping  restrictions  inapplicable.  1. This
    54  article shall not apply to:
    55    [1.]  (a)  Private  homes[,]  and  private  residences  [and   private
    56  automobiles];

        A. 1617--C                         77

     1    [2.] (b) Private automobiles;
     2    (c) A hotel or motel room rented to one or more guests;
     3    [3.] (d) Retail tobacco businesses;
     4    [4.]  (e) Membership associations; provided, however, that smoking and
     5  vaping shall only be allowed in membership associations in which all  of
     6  the duties with respect to the operation of such association, including,
     7  but  not  limited to, the preparation of food and beverages, the service
     8  of food and beverages, reception and secretarial work, and the  security
     9  services  of the membership association are performed by members of such
    10  membership association who do not receive compensation of any kind  from
    11  the  membership  association  or any other entity for the performance of
    12  such duties;
    13    [5.] (f) Cigar bars that, in the calendar year ending  December  thir-
    14  ty-first,  two  thousand two, generated ten percent or more of its total
    15  annual gross income from the on-site sale of tobacco  products  and  the
    16  rental  of  on-site  humidors,  not  including  any  sales  from vending
    17  machines, and is registered with the appropriate enforcement officer, as
    18  defined in subdivision one of section thirteen hundred ninety-nine-t  of
    19  this  article. Such registration shall remain in effect for one year and
    20  shall be renewable only if: (a) in  the  preceding  calendar  year,  the
    21  cigar bar generated ten percent or more of its total annual gross income
    22  from  the  on-site  sale  of  tobacco products and the rental of on-site
    23  humidors, and (b) the cigar bar has not expanded its size or changed its
    24  location from its size or  location  since  December  thirty-first,  two
    25  thousand two;
    26    [6.]  (g)  Outdoor dining areas of food service establishments with no
    27  roof or other ceiling enclosure; provided,  however,  that  smoking  and
    28  vaping  may be permitted in a contiguous area designated for smoking and
    29  vaping so long as such area: (a) constitutes no  more  than  twenty-five
    30  percent  of the outdoor seating capacity of such food service establish-
    31  ment, (b) is at least three feet away from the outdoor area of such food
    32  service establishment not designated for smoking and vaping, and (c)  is
    33  clearly designated with written signage as a smoking and vaping area;
    34    [7.] (h) Enclosed rooms in food service establishments, bars, catering
    35  halls,  convention  halls,  hotel  and motel conference rooms, and other
    36  such similar facilities during the time such enclosed areas or rooms are
    37  being used exclusively for functions where the public is invited for the
    38  primary purpose of promoting and sampling tobacco products or electronic
    39  cigarettes, and the service of food and  drink  is  incidental  to  such
    40  purpose,  provided  that  the  sponsor  or organizer gives notice in any
    41  promotional material or advertisements that smoking and vaping will  not
    42  be  restricted,  and  prominently  posts  notice  at the entrance of the
    43  facility and has provided notice of such  function  to  the  appropriate
    44  enforcement  officer,  as defined in subdivision one of section thirteen
    45  hundred ninety-nine-t of this article, at least two weeks prior to  such
    46  function.  The  enforcement  officer  shall keep a record of all tobacco
    47  sampling events, and such record shall  be  made  available  for  public
    48  inspection.  No such facility shall permit smoking and vaping under this
    49  subdivision for more than two days in any calendar year; [and
    50    8.] (i) Retail electronic cigarette  stores,  provided  however,  that
    51  such stores may only permit the use of electronic cigarettes[.]; and
    52    (j)  Adult-use  on-site  consumption  premises  authorized pursuant to
    53  article four of the cannabis law, provided however, that such  locations
    54  may only permit the smoking or vaping of cannabis.

        A. 1617--C                         78

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

        A. 1617--C                         79

     1  office of victim  services,  the  state  division  of  criminal  justice
     2  services[,  and in the case of a forfeiture based on a felony defined in
     3  article two hundred twenty or section 221.30 or 221.55 of the penal law,
     4  to the state division of substance abuse services].
     5    (b)  No  judgment  or order of forfeiture shall be accepted for filing
     6  unless it is accompanied by an affidavit  from  the  claiming  authority
     7  that  written  notice of judgment or order, including the terms of such,
     8  has been given to the office of victim services, the state  division  of
     9  criminal  justice  services[, and in the case of a forfeiture based on a
    10  felony defined in article two hundred twenty or section 221.30 or 221.55
    11  of the penal law, to the state division of substance abuse services].
    12    § 8. Subdivision 1 of section 3397-b of  the  public  health  law,  as
    13  added by chapter 810 of the laws of 1980, is amended to read as follows:
    14    1.  ["Marijuana"]  "Cannabis" means [marijuana] cannabis as defined in
    15  [section thirty-three hundred two of this chapter] section 222.00 of the
    16  penal law and shall also include  tetrahydrocannabinols  or  a  chemical
    17  derivative of tetrahydrocannabinol.
    18    § 9. Section 114-a of the vehicle and traffic law, as added by chapter
    19  163 of the laws of 1973, is amended to read as follows:
    20    § 114-a. Drug.  The  term  "drug" when used in this chapter, means and
    21  includes any substance listed in section thirty-three hundred six of the
    22  public health law and cannabis and concentrated cannabis as  defined  in
    23  section 222.00 of the penal law.
    24    §  9-a.  Subdivision 1 of section 1192 of the vehicle and traffic law,
    25  as added by chapter 47 of the laws  of  1988,  is  amended  to  read  as
    26  follows:
    27    1.  Driving while ability impaired. a. No person shall operate a motor
    28  vehicle while the person's ability to  operate  such  motor  vehicle  is
    29  impaired by the consumption of alcohol.
    30    b.  No person shall operate a motor vehicle while the person's ability
    31  to operate such motor vehicle is impaired by  the  use  of  cannabis  or
    32  concentrated cannabis as defined in section 222.00 of the penal law.
    33    §  9-b.  Paragraph (a) of subdivision 2 of section 49-a of the naviga-
    34  tion law, as amended by chapter 239 of the laws of 2016, is  amended  to
    35  read as follows:
    36    (a)  (1) No person shall operate a vessel upon the waters of the state
    37  while his or her ability to operate  such  vessel  is  impaired  by  the
    38  consumption  of  alcohol.  (2) No person shall operate a vessel upon the
    39  waters of the state while his or her ability to operate such  vessel  is
    40  impaired  by  the use of cannabis or concentrated cannabis as defined in
    41  section 222.00 of the penal law.
    42    (a-1) (1) A violation of paragraph (a) of this subdivision shall be an
    43  offense and shall be punishable by a fine of not less than three hundred
    44  dollars nor more than five hundred dollars,  or  by  imprisonment  in  a
    45  penitentiary  or  county jail for not more than fifteen days, or by both
    46  such fine and imprisonment. (2)  A  person  who  operates  a  vessel  in
    47  violation  of paragraph (a) of this subdivision after being convicted of
    48  a violation of any subdivision of this section within the preceding five
    49  years shall be punished by a fine of not less than five hundred  dollars
    50  nor  more  than  seven  hundred fifty dollars, or by imprisonment of not
    51  more than thirty days in a penitentiary or county jail or by  both  such
    52  fine  and  imprisonment. (3) A person who operates a vessel in violation
    53  of paragraph (a) of this subdivision after being convicted two  or  more
    54  times  of  a  violation  of  any  subdivision of this section within the
    55  preceding ten years shall be guilty  of  a  misdemeanor,  and  shall  be
    56  punished by a fine of not less than seven hundred fifty dollars nor more

        A. 1617--C                         80

     1  than  fifteen  hundred  dollars, or by imprisonment of not more than one
     2  hundred eighty days in a penitentiary or county jail  or  by  both  such
     3  fine and imprisonment.
     4    § 9-c. Subdivision 5-a of section 49-a of the navigation law, as added
     5  by chapter 239 of the laws of 2016, is amended to read as follows:
     6    5-a.  Sentencing; previous convictions. When sentencing a person for a
     7  violation of paragraph (b), (c), (d) or (e) of subdivision two  of  this
     8  section pursuant to subparagraph two of paragraph (f) of subdivision two
     9  of  this  section,  the  court  shall consider any prior convictions the
    10  person may have for a violation of subdivision two, two-a, three,  four,
    11  or  four-a of section eleven hundred ninety-two of the vehicle and traf-
    12  fic law within the preceding ten years. When sentencing a person  for  a
    13  violation  of  paragraph (b), (c), (d) or (e) of subdivision two of this
    14  section pursuant to subparagraph three of paragraph (f)  of  subdivision
    15  two  of this section, the court shall consider any prior convictions the
    16  person may have for a violation of subdivision two, two-a, three,  four,
    17  or  four-a of section eleven hundred ninety-two of the vehicle and traf-
    18  fic law within the preceding ten years. When sentencing a person  for  a
    19  violation  of  subparagraph  two of paragraph [(a)] (a-1) of subdivision
    20  two of this section, the court shall consider any prior convictions  the
    21  person  may  have  for  a violation of any subdivision of section eleven
    22  hundred ninety-two of the vehicle and traffic law within  the  preceding
    23  five  years.  When  sentencing  a person for a violation of subparagraph
    24  three of paragraph [(a)] (a-1) of subdivision two of this  section,  the
    25  court  shall  consider  any  prior convictions the person may have for a
    26  violation of any subdivision of section eleven hundred ninety-two of the
    27  vehicle and traffic law within the preceding ten years.
    28    § 9-d. Paragraph (a) of subdivision 1 of section 25.24 of  the  parks,
    29  recreation  and  historic preservation law, as amended by chapter 311 of
    30  the laws of 2007, is amended to read as follows:
    31    (a)(1) No person shall operate a snowmobile upon  a  street,  highway,
    32  public  trails,  lands,  bodies of water, or private property of another
    33  while his or her ability to operate such snowmobile is impaired  by  the
    34  consumption  of alcohol. (2) No person shall operate a snowmobile upon a
    35  street, highway, public trails, lands, bodies of water, or private prop-
    36  erty of another while his or her ability to operate such  snowmobile  is
    37  impaired  by  the use of cannabis or concentrated cannabis as defined in
    38  section 222.00 of the penal law.  (3) A violation  of  this  subdivision
    39  shall  be  an offense and shall be punishable by a fine of not less than
    40  two hundred fifty dollars nor more than three hundred fifty dollars,  or
    41  by  imprisonment  in  a  penitentiary  or  county jail for not more than
    42  fifteen days, or by both such fine and imprisonment. A person who  oper-
    43  ates a snowmobile in violation of this subdivision after being convicted
    44  of  a  violation of any subdivision of this section within the preceding
    45  five years shall be punished by a fine of not  less  than  five  hundred
    46  dollars nor more than fifteen hundred dollars, or by imprisonment of not
    47  more  than  thirty days in a penitentiary or county jail or by both such
    48  fine and imprisonment.
    49    § 10. Subdivision 9 of section 220.00 of the penal law, as amended  by
    50  chapter 664 of the laws of 1985, is amended to read as follows:
    51    9.  "Hallucinogen"  means any controlled substance listed in [schedule
    52  I(d)] paragraphs (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
    53  (19),  (20) and (21) of subdivision (d) of schedule I of section thirty-
    54  three hundred six of the public health law.
    55    § 10-a. Subdivision 5 of section 220.00 of the penal law,  as  amended
    56  by chapter 537 of the laws of 1998, is amended to read as follows:

        A. 1617--C                         81

     1    5.  "Controlled  substance"  means any substance listed in schedule I,
     2  II, III, IV or V of section  thirty-three  hundred  six  of  the  public
     3  health law [other than marihuana, but including concentrated cannabis as
     4  defined  in  paragraph  (a)  of subdivision four of section thirty-three
     5  hundred two of such law].
     6    § 11. Subdivision 4 of section 220.06 of the penal law is REPEALED.
     7    § 12. Subdivision 10 of section 220.09 of the penal law is REPEALED.
     8    § 13. Subdivision 3 of section 220.34 of the penal law is REPEALED.
     9    § 14. Subdivision 6 of section 220.00 of the penal law is REPEALED.
    10    § 15. Article 221 of the penal law is REPEALED.
    11    §  16. The penal law is amended by adding a new article 222 to read as
    12  follows:
    13                                 ARTICLE 222
    14                                  CANNABIS
    15  Section 222.00 Cannabis; definitions.
    16          222.05 Personal use of cannabis.
    17          222.10 Restrictions on cannabis use.
    18          222.15 Personal cultivation of cannabis.
    19          222.20 Licensing  of  cannabis  production   and   distribution;
    20                   defense.
    21          222.25 Unlawful possession of cannabis.
    22          222.30 Criminal possession of cannabis in the third degree.
    23          222.35 Criminal possession of cannabis in the second degree.
    24          222.40 Criminal possession of cannabis in the first degree.
    25          222.45 Unlawful sale of cannabis.
    26          222.50 Criminal sale of cannabis in the third degree.
    27          222.55 Criminal sale of cannabis in the second degree.
    28          222.60 Criminal sale of cannabis in the first degree.
    29          222.65 Aggravated criminal sale of cannabis.
    30  § 222.00 Cannabis; definitions.
    31    1.  "Cannabis"  means  all  parts  of the plant of the genus Cannabis,
    32  whether growing or not; the seeds thereof; the resin extracted from  any
    33  part  of  the  plant; and every compound, manufacture, salt, derivative,
    34  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    35  include  the mature stalks of the plant, fiber produced from the stalks,
    36  oil or cake made from the seeds of the plant, any other compound,  manu-
    37  facture,  salt, derivative, mixture, or preparation of the mature stalks
    38  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    39  sterilized seed of the plant which is incapable of germination.  It does
    40  not include hemp, cannabinoid hemp or hemp extract as defined in section
    41  three of the cannabis law.
    42    2. "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    3. For the purposes of  this  article,  "sell"  shall  mean  to  sell,
    51  exchange  or  dispose  of for compensation. "Sell" shall not include the
    52  transfer of cannabis or concentrated cannabis between persons twenty-one
    53  years of age or older without compensation in the quantities  authorized
    54  in paragraph (b) of subdivision one of section 222.05 of this article.
    55    4.  For  the  purposes  of this article, "smoking" shall have the same
    56  meaning as that term is defined in section three of the cannabis law.

        A. 1617--C                         82

     1  § 222.05 Personal use of cannabis.
     2    Notwithstanding any other provision of law to the contrary:
     3    1.  The  following acts are lawful for persons twenty-one years of age
     4  or older:  (a) possessing, displaying, purchasing, obtaining, or  trans-
     5  porting  up  to  three ounces of cannabis and up to twenty-four grams of
     6  concentrated cannabis;
     7    (b) transferring, without compensation, to a person  twenty-one  years
     8  of  age  or  older, up to three ounces of cannabis and up to twenty-four
     9  grams of concentrated cannabis;
    10    (c) using, smoking, ingesting, or consuming cannabis  or  concentrated
    11  cannabis unless otherwise prohibited by state law;
    12    (d)  possessing, using, displaying, purchasing, obtaining, manufactur-
    13  ing, transporting or giving to any person twenty-one  years  of  age  or
    14  older cannabis paraphernalia or concentrated cannabis paraphernalia;
    15    (e)  planting, cultivating, harvesting, drying, processing or possess-
    16  ing cultivated cannabis in accordance with section 222.15 of this  arti-
    17  cle; and
    18    (f)  assisting another person who is twenty-one years of age or older,
    19  or allowing property to be used, in any of the acts described  in  para-
    20  graphs (a) through (e) of this subdivision.
    21    2.  Cannabis, concentrated cannabis, cannabis paraphernalia or concen-
    22  trated cannabis paraphernalia involved in any way  with  conduct  deemed
    23  lawful  by  this  section  are  not contraband nor subject to seizure or
    24  forfeiture of assets under article four hundred eighty of this  chapter,
    25  section  thirteen hundred eleven of the civil practice law and rules, or
    26  other applicable law, and no conduct deemed lawful by this section shall
    27  constitute the basis for approach, search, seizure, arrest or detention.
    28    3. Except as provided in subdivision four of this section, none of the
    29  following shall, individually or in combination with each other, consti-
    30  tute reasonable suspicion of a crime or be used as evidence of  probable
    31  cause in any criminal proceeding against a defendant twenty-one years of
    32  age or older:
    33    (a) the odor of cannabis or of burnt cannabis;
    34    (b)  the  possession  of or the suspicion of possession of cannabis or
    35  concentrated cannabis in the amounts authorized in this section;
    36    (c) the possession of multiple containers of cannabis without evidence
    37  of possession of more than three ounces of cannabis or twenty-four grams
    38  of concentrated cannabis;
    39    (d) the presence of cash or  currency  in  proximity  to  cannabis  or
    40  concentrated cannabis; or
    41    (d)  the  planting,  cultivating,  harvesting,  drying,  processing or
    42  possessing cultivated cannabis in accordance with section 222.15 of this
    43  article.
    44    4. Subdivision three of this  section  shall  not  apply  when  a  law
    45  enforcement officer is investigating: (a) an alleged offense pursuant to
    46  this  article;  or  (b)  whether  a person is operating a motor vehicle,
    47  vessel or snowmobile while impaired by cannabis or concentrated cannabis
    48  as defined in section 222.00 of this article or drugs  or  the  combined
    49  influence  of  drugs or of alcohol and any drug or drugs in violation of
    50  paragraph (b) of subdivision one, subdivision four or subdivision four-a
    51  of section eleven hundred ninety-two of the vehicle and traffic law,  or
    52  subparagraph two of paragraph (a) or paragraph (e) of subdivision two of
    53  section forty-nine-a of the navigation law, or subparagraph two of para-
    54  graph  (a)  or  paragraph (d) of subdivision one of section 25.24 of the
    55  parks, recreation and historic preservation law.
    56  § 222.10 Restrictions on cannabis use.

        A. 1617--C                         83

     1    Unless otherwise authorized by law or regulation, no person shall:
     2    1. smoke or vape cannabis in a location where smoking or vaping canna-
     3  bis  is  prohibited  pursuant to article thirteen-E of the public health
     4  law; or
     5    2. possess, smoke, vape or ingest cannabis or concentrated cannabis in
     6  or upon the grounds of a  school,  as  defined  in  subdivision  ten  of
     7  section  eleven  hundred  twenty-five of the education law or in or on a
     8  school bus, as defined in section one hundred forty-two of  the  vehicle
     9  and traffic law; provided, however, provisions of this subdivision shall
    10  not  apply  to  acts  that  are  in compliance with article three of the
    11  cannabis law.
    12    Violations of restrictions on cannabis use  are  subject  to  a  civil
    13  penalty  not  exceeding  twenty-five  dollars  or an amount of community
    14  service not exceeding twenty hours.
    15  § 222.15 Personal cultivation of cannabis.
    16    1. Notwithstanding the  provisions  of  section  thirty-three  hundred
    17  eighty-two  of the public health law, and unless otherwise authorized by
    18  law or regulation, no person may:
    19    (a) plant, cultivate, harvest, dry, process or possess more  than  six
    20  mature cannabis plants at any one time; or
    21    (b)  plant, cultivate, harvest, dry, process or possess, within his or
    22  her private residence, or on the grounds of his  or  her  private  resi-
    23  dence, more than six mature cannabis plants at any one time; or
    24    (c) being under the age of twenty-one, plant, cultivate, harvest, dry,
    25  process or possess cannabis plants.
    26    2.  Any  mature  cannabis  plant  described in paragraph (a) or (b) of
    27  subdivision one of this section, and any cannabis produced by  any  such
    28  cannabis  plant  or  plants  in  excess  of  three  ounces,  cultivated,
    29  harvested, dried, processed or possessed pursuant to  paragraph  (a)  or
    30  (b)  of  subdivision one of this section shall, unless otherwise author-
    31  ized by law or regulation, be stored except for incidental periods with-
    32  in such person's private residence or storage space or on the grounds of
    33  such person's private residence or storage space. Such person shall take
    34  reasonable steps designed to assure that such cultivated cannabis is  in
    35  a secured place.
    36    3.  A  county, town, city or village may enact and enforce regulations
    37  to reasonably regulate the actions and conduct set forth in  subdivision
    38  one of this section; provided that:
    39    (a)  a violation of any such a regulation, as approved by such county,
    40  town, city or village enacting the regulation, may  constitute  no  more
    41  than an infraction and may be punishable by no more than a discretionary
    42  civil penalty of two hundred dollars or less; and
    43    (b)  no  county,  town,  city or village may enact or enforce any such
    44  regulation or regulations that may completely or essentially prohibit  a
    45  person  from engaging in the action or conduct authorized by subdivision
    46  one of this section.
    47    A violation of subdivision one or two of this section may  be  subject
    48  to a civil penalty of up to one hundred twenty-five dollars.
    49  § 222.20 Licensing of cannabis production and distribution; defense.
    50    In  any prosecution for an offense involving cannabis under this arti-
    51  cle or an authorized local law, it is a defense that the  defendant  was
    52  engaged in such activity in compliance with the cannabis law.
    53  § 222.25 Unlawful possession of cannabis.
    54    A  person  is guilty of unlawful possession of cannabis when he or she
    55  knowingly and unlawfully possesses cannabis  and  such  cannabis  weighs

        A. 1617--C                         84

     1  more  than  three  ounces or concentrated cannabis and such concentrated
     2  cannabis weighs more than twenty-four grams.
     3    Unlawful possession of cannabis is a violation punishable by a fine of
     4  not more than one hundred twenty-five dollars.
     5  § 222.30 Criminal possession of cannabis in the third degree.
     6    A  person  is  guilty  of criminal possession of cannabis in the third
     7  degree when he or she knowingly and unlawfully possesses:
     8    1. cannabis and such cannabis weighs more than sixteen ounces; or
     9    2. concentrated cannabis and such concentrated  cannabis  weighs  more
    10  than five ounces.
    11    Criminal  possession  of  cannabis  in  the  third degree is a class A
    12  misdemeanor.
    13  § 222.35 Criminal possession of cannabis in the second degree.
    14    A person is guilty of criminal possession of cannabis  in  the  second
    15  degree when he or she knowingly and unlawfully possesses:
    16    1. cannabis and such cannabis weighs more than five pounds; or
    17    2.  concentrated  cannabis  and such concentrated cannabis weighs more
    18  than two pounds.
    19    Criminal possession of cannabis in the second  degree  is  a  class  E
    20  felony.
    21  § 222.40 Criminal possession of cannabis in the first degree.
    22    A  person  is  guilty  of criminal possession of cannabis in the first
    23  degree when he or she knowingly and unlawfully possesses:
    24    1. cannabis and such cannabis weighs more than ten pounds; or
    25    2. concentrated cannabis and such concentrated  cannabis  weighs  more
    26  than four pounds.
    27    Criminal possession of cannabis in the first degree is a class D felo-
    28  ny.
    29  § 222.45 Unlawful sale of cannabis.
    30    A  person  is guilty of unlawful sale of cannabis when he or she know-
    31  ingly and unlawfully sells cannabis or concentrated cannabis.
    32    Unlawful sale of cannabis is a violation punishable by a fine  of  not
    33  more than two hundred fifty dollars.
    34  § 222.50 Criminal sale of cannabis in the third degree.
    35    A  person  is  guilty of criminal sale of cannabis in the third degree
    36  when:
    37    1. he or she knowingly and unlawfully sells more than three ounces  of
    38  cannabis or more than twenty-four grams of concentrated cannabis; or
    39    2.  being  twenty-one  years  of age or older, he or she knowingly and
    40  unlawfully sells or gives, or causes to be given or  sold,  cannabis  or
    41  concentrated  cannabis  to  a  person less than twenty-one years of age;
    42  except that in any prosecution under this subdivision, it is  a  defense
    43  that the defendant was less than three years older than the person under
    44  the age of twenty-one at the time of the offense. This subdivision shall
    45  not apply to designated caregivers, practitioners, employees of a regis-
    46  tered  organization  or  employees  of  a  designated caregiver facility
    47  acting in compliance with article three of the cannabis law.
    48    Criminal sale of cannabis in the third degree is a class  A  misdemea-
    49  nor.
    50  § 222.55 Criminal sale of cannabis in the second degree.
    51    A  person  is guilty of criminal sale of cannabis in the second degree
    52  when:
    53    1. he or she knowingly and unlawfully sells more than  sixteen  ounces
    54  of cannabis or more than five ounces of concentrated cannabis; or
    55    2.  being  twenty-one  years  of age or older, he or she knowingly and
    56  unlawfully sells or gives, or causes to be  given  or  sold,  more  than

        A. 1617--C                         85

     1  three  ounces of cannabis or more than twenty-four grams of concentrated
     2  cannabis to a person less than eighteen years of age.  This  subdivision
     3  shall  not apply to designated caregivers, practitioners, employees of a
     4  registered  organization or employees of a designated caregiver facility
     5  acting in compliance with article three of the cannabis law.
     6    Criminal sale of cannabis in the second degree is a class E felony.
     7  § 222.60 Criminal sale of cannabis in the first degree.
     8    A person is guilty of criminal sale of cannabis in  the  first  degree
     9  when  he  or she knowingly and unlawfully sells more than five pounds of
    10  cannabis or more than two pounds of concentrated cannabis.
    11    Criminal sale of cannabis in the first degree is a class D felony.
    12  § 222.65 Aggravated criminal sale of cannabis.
    13    A person is guilty of aggravated criminal sale of cannabis when he  or
    14  she  knowingly  and  unlawfully  sells cannabis or concentrated cannabis
    15  weighing one hundred pounds or more.
    16    Aggravated criminal sale of cannabis is a class C felony.
    17    § 17. Paragraph (k) of subdivision 3 of section 160.50 of the criminal
    18  procedure law, as amended by chapter 132 of the laws of 2019, is amended
    19  to read as follows:
    20    (k) (i) The conviction was for a  violation  of  article  two  hundred
    21  twenty or section 240.36 of the penal law prior to the effective date of
    22  article two hundred twenty-one of the penal law, and the sole controlled
    23  substance  involved  was  marihuana  and  the  conviction was only for a
    24  misdemeanor and/or violation [or violations]; or
    25    (ii) the conviction is for an offense defined  in  section  221.05  or
    26  221.10 of the penal law prior to the effective date of [the] chapter one
    27  hundred  thirty-two  of  the laws of two thousand nineteen [that amended
    28  this paragraph]; or
    29    (iii) the conviction is for an offense  defined  in  [section]  former
    30  sections  221.05  [or], 221.10, 221.15, 221.20, 221.35, or 221.40 of the
    31  penal law; or
    32    (iv) the conviction was for a violation of section 220.03 or 220.06 of
    33  the penal law prior to the effective date of the chapter of the laws  of
    34  two thousand twenty that amended this paragraph, and the sole controlled
    35  substance involved was concentrated cannabis; or
    36    (v)  the  conviction  is  for  an  offense defined in sections 222.10,
    37  222.15, 222.25 or 222.45 of the penal law.
    38    No defendant shall be required or permitted to waive  eligibility  for
    39  sealing  or  expungement  pursuant  to this section as part of a plea of
    40  guilty, sentence  or  any  agreement  related  to  a  conviction  for  a
    41  violation  of  [section  221.05]  sections  222.10,  222.15,  222.25  or
    42  [section 221.10] 222.45 of the penal law and any such  waiver  shall  be
    43  deemed void and wholly unenforceable.
    44    § 18. Paragraph (k) of subdivision 1 of section 440.10 of the criminal
    45  procedure  law,  as added by chapter 132 of the laws of 2019, is amended
    46  to read as follows:
    47    (k) The judgment occurred prior to the effective date of the  laws  of
    48  two  thousand twenty that amended this paragraph and is a conviction for
    49  an offense as defined in subparagraphs (i) [or], (ii), (iii) or (iv)  of
    50  paragraph  (k)  of  subdivision three of section 160.50 of this part, in
    51  which case the court shall presume that a conviction  by  plea  for  the
    52  aforementioned offenses was not knowing, voluntary and intelligent if it
    53  has  severe or ongoing consequences, including but not limited to poten-
    54  tial or actual  immigration  consequences,  and  shall  presume  that  a
    55  conviction  by verdict for the aforementioned offenses constitutes cruel
    56  and unusual punishment under section five of article one  of  the  state

        A. 1617--C                         86

     1  constitution,  based  on  those consequences. The people may rebut these
     2  presumptions.
     3    § 19. Intentionally omitted.
     4    § 20. Intentionally omitted.
     5    § 21. Intentionally omitted.
     6    §  22.  Subdivision 1 of section 170.56 of the criminal procedure law,
     7  as amended by chapter 360 of the laws of 1977, is  amended  to  read  as
     8  follows:
     9    1.  Upon or after arraignment in a local criminal court upon an infor-
    10  mation, a prosecutor's information or a misdemeanor complaint, where the
    11  sole  remaining  count  or  counts  charge  a violation or violations of
    12  section [221.05, 221.10,  221.15,  221.35  or  221.40]  220.10,  222.15,
    13  222.25, 222.30, 222.45 or 222.50 of the penal law, or upon summons for a
    14  nuisance  offense  under  section sixty-five-c of the alcoholic beverage
    15  control law and before  the  entry  of  a  plea  of  guilty  thereto  or
    16  commencement of  a trial thereof, the court, upon motion of a defendant,
    17  may  order that all proceedings be suspended and the action adjourned in
    18  contemplation of dismissal, or upon a finding that adjournment would not
    19  be necessary or appropriate and the setting forth in the record  of  the
    20  reasons  for  such  findings,  may dismiss in furtherance of justice the
    21  accusatory instrument; provided, however, that the court may  not  order
    22  such adjournment in contemplation of dismissal or dismiss the accusatory
    23  instrument  if:  (a)  the  defendant  has  previously  been granted such
    24  adjournment in contemplation of dismissal,  or  (b)  the  defendant  has
    25  previously  been  granted  a  dismissal  under  this section, or (c) the
    26  defendant  has  previously  been  convicted  of  any  offense  involving
    27  controlled   substances,  or  (d)  the  defendant  has  previously  been
    28  convicted of a crime and the district attorney does not consent  or  (e)
    29  the defendant has previously been adjudicated a youthful offender on the
    30  basis  of  any  act  or  acts  involving  controlled  substances and the
    31  district attorney does not consent.  Notwithstanding the limitations set
    32  forth in this subdivision, the court may order that all  proceedings  be
    33  suspended  and  the action adjourned in contemplation of dismissal based
    34  upon a finding of exceptional circumstances. For purposes of this subdi-
    35  vision, exceptional circumstances exist when, regardless of the ultimate
    36  disposition of the case, the entry of a plea  of  guilty  is  likely  to
    37  result in severe or ongoing consequences, including, but not limited to,
    38  potential or actual immigration consequences.
    39    § 23. Intentionally omitted.
    40    §  24.  The  criminal procedure law is amended by adding a new section
    41  440.46-a to read as follows:
    42  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    43              offenses.
    44    1. When a person is serving a sentence for a conviction in this state,
    45  whether by trial verdict  or  guilty  plea,  under  former  article  two
    46  hundred  twenty-one  of  the  penal  law,  and  such person's conduct as
    47  alleged in the accusatory instrument and/or shown by the guilty plea  or
    48  trial  verdict  would  not  have  been a crime under article two hundred
    49  twenty-two of the penal law, had such  article  two  hundred  twenty-two
    50  rather  than former article two hundred twenty-one of the penal law been
    51  in effect at the time of such conduct,  then  the  chief  administrative
    52  judge  of  the state of New York shall, in accordance with this section,
    53  automatically vacate, dismiss and expunge such conviction in  accordance
    54  with  section  160.50  of this chapter, and the office of court adminis-
    55  tration shall immediately notify the state division of criminal  justice
    56  services,  state department of corrections and community supervision and

        A. 1617--C                         87

     1  the appropriate local  correctional  facility  which  shall  immediately
     2  effectuate  the appropriate relief. Such notification to the division of
     3  criminal justice services shall also direct that such agency notify  all
     4  relevant  police  and  law enforcement agencies of their duty to destroy
     5  and/or mark records related to such  case  in  accordance  with  section
     6  160.50  of  this chapter. Nothing in this section shall prevent a person
     7  who believes his or her sentence is  required  by  this  section  to  be
     8  vacated, dismissed and/or expunged from filing a petition with the court
     9  to effectuate all appropriate relief.
    10    2.  (a)  When  a person is serving or has completed serving a sentence
    11  for a conviction in this state, whether by trial verdict or guilty plea,
    12  under former article two hundred twenty-one of the penal law,  and  such
    13  person's conduct as alleged in the accusatory instrument and/or shown by
    14  the  guilty  plea  or  trial verdict, or shown by other information: (i)
    15  would not have been a crime under article two hundred twenty-two of  the
    16  penal  law,  had  such article two hundred twenty-two rather than former
    17  article two hundred twenty-one of the penal law been in  effect  at  the
    18  time of such conduct; or (ii) under such circumstances such person would
    19  have  been  guilty of a lesser or potentially less onerous offense under
    20  such article two hundred twenty-two than such former article two hundred
    21  twenty-one of the penal law; then such person may petition the court  of
    22  conviction pursuant to this article for vacatur of such conviction.
    23    (b)  Upon  receiving  a served and filed motion under paragraph (a) of
    24  this subdivision, the court  shall  presume  the  movant  satisfies  the
    25  criteria in such paragraph (a) and shall grant the motion to vacate such
    26  conviction  unless  the  party  opposing the motion proves, by clear and
    27  convincing evidence, that the movant does not satisfy the  criteria.  If
    28  the  movant  satisfies the criteria, the court shall grant the motion to
    29  vacate the conviction: (i) if the conviction was by plea of  guilty,  on
    30  grounds  that such plea was not knowing, voluntary and intelligent owing
    31  to ongoing consequences; and (ii) if the conviction was  by  verdict  or
    32  otherwise,  on  grounds  that  such  conviction and sentence constitutes
    33  cruel and unusual punishment under the state constitution owing to  such
    34  ongoing  consequences;  and  may,  if the petition meets the criteria in
    35  subparagraph (i) of paragraph (a) of this subdivision,  after  affording
    36  the parties an opportunity to be heard and present evidence, substitute,
    37  unless  it is not in the interests of justice to do so, a conviction for
    38  an appropriate lesser offense under article two  hundred  twenty-two  of
    39  the penal law.
    40    (c)  In  the event of any vacatur and/or substitution pursuant to this
    41  subdivision, the office of court administration shall immediately notify
    42  the state division of criminal justice services concerning such determi-
    43  nation. Such notification to the division of criminal  justice  services
    44  shall  also  direct  that such agency notify all relevant police and law
    45  enforcement agencies of  their  duty  to  destroy  and/or  mark  records
    46  related  to  such case in accordance with section 160.50 of this chapter
    47  or, where conviction for a crime is substituted pursuant to this  subdi-
    48  vision, update such agencies' records accordingly.
    49    3.  Under  no circumstances may substitution under this section result
    50  in the imposition of a term of imprisonment or  sentencing  term,  obli-
    51  gation  or condition that is in any way either harsher than the original
    52  sentence or harsher than the sentence  authorized  for  any  substituted
    53  lesser offense.
    54    4.  (a)  If  the  judge  who  originally sentenced the movant for such
    55  offense is not reasonably available, then the presiding judge  for  such

        A. 1617--C                         88

     1  court shall designate another judge authorized to act in the appropriate
     2  jurisdiction to determine the petition or application.
     3    (b)  Unless  requested by the movant, no hearing is necessary to grant
     4  an application filed under subdivision two of this section.
     5    (c) When a felony conviction is vacated pursuant to this section and a
     6  lesser offense that is a misdemeanor or  violation  is  substituted  for
     7  such  conviction,  such lesser offense shall be considered a misdemeanor
     8  or violation, as the case may be, for all purposes. When  a  misdemeanor
     9  conviction is vacated pursuant to this section and a lesser offense that
    10  is  a  violation is substituted for such conviction, such lesser offense
    11  shall be considered a violation for all purposes.
    12    (d) Nothing in this section is intended to or shall diminish or  abro-
    13  gate  any  rights  or remedies otherwise available to a defendant, peti-
    14  tioner or applicant. Relief under this  section  is  available  notwith-
    15  standing  that  the  judgment  was  for  a  violation of former sections
    16  221.05, 221.10, 221.15, 221.20, 221.35 or 221.40 of  the  penal  law  in
    17  effect prior to the effective date of this paragraph and that the under-
    18  lying  action  or  proceeding  has  already  been vacated, dismissed and
    19  expunged.
    20    (e) Nothing in this and related sections of law is intended to  dimin-
    21  ish or abrogate the finality of judgments in any case not falling within
    22  the purview of this section.
    23    (f)  The  provisions  of  this  section  shall  be available, used and
    24  applied in parallel fashion by the family court and the criminal  courts
    25  to juvenile delinquency adjudications, adolescent offender adjudications
    26  and youthful offender adjudications.
    27    (g)  The chief administrator of the courts shall promulgate all neces-
    28  sary rules and make available all necessary forms to enable  the  filing
    29  of the petitions and applications provided in this section no later than
    30  sixty  days  following the effective date of this section. All sentences
    31  eligible for automatic vacatur, dismissal and  expungement  pursuant  to
    32  subdivision  one  of  this  section shall be identified and the required
    33  entities notified within one year of the effective date of this section.
    34    § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
    35  procedure law, as amended by chapter 37 of the laws of 2014, is  amended
    36  to read as follows:
    37    (c)  Criminal  possession  of  a  controlled  substance in the seventh
    38  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
    39  possession  of  a controlled substance in the fifth degree as defined in
    40  section 220.06 of the penal law, criminal  possession  of  a  controlled
    41  substance in the fourth degree as defined in section 220.09 of the penal
    42  law,  criminal  possession of a controlled substance in the third degree
    43  as defined in section 220.16 of the penal law, criminal possession of  a
    44  controlled  substance  in the second degree as defined in section 220.18
    45  of the penal law, criminal possession of a controlled substance  in  the
    46  first  degree  as  defined  in section 220.21 of the penal law, criminal
    47  sale of a controlled substance in the fifth degree as defined in section
    48  220.31 of the penal law, criminal sale of a controlled substance in  the
    49  fourth  degree  as  defined in section 220.34 of the penal law, criminal
    50  sale of a controlled substance in the third degree as defined in section
    51  220.39 of the penal law, criminal sale of a controlled substance in  the
    52  second  degree  as  defined in section 220.41 of the penal law, criminal
    53  sale of a controlled substance in the first degree as defined in section
    54  220.43 of the penal law, criminally possessing a  hypodermic  instrument
    55  as  defined  in  section  220.45  of  the  penal law, criminal sale of a
    56  prescription for a controlled substance or a controlled substance  by  a

        A. 1617--C                         89

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

        A. 1617--C                         90

     1    [6. "Pre-conviction forfeiture crime" means only a felony  defined  in
     2  article  two  hundred  twenty  or  section 221.30 or 221.55 of the penal
     3  law.]
     4    9.  "Criminal defendant" means a person who has criminal liability for
     5  a crime defined in [subdivisions] subdivision five [and six  hereof]  of
     6  this  section.  For  purposes  of  this  article,  a person has criminal
     7  liability when [(a)] he has been convicted of a post-conviction  forfei-
     8  ture  crime[, or (b) the claiming authority proves by clear and convinc-
     9  ing evidence that such person has committed an act in violation of arti-
    10  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
    11    § 27. Subdivision 13 of section 89-f of the general business  law,  as
    12  added by chapter 336 of the laws of 1992, is amended to read as follows:
    13    13.  "Serious  offense"  shall  mean any felony involving the offenses
    14  enumerated in the closing paragraph  of  this  subdivision;  a  criminal
    15  solicitation  of  or a conspiracy to commit or an attempt to commit or a
    16  criminal facilitation of a felony involving the offenses  enumerated  in
    17  the  closing paragraph of this subdivision, which criminal solicitation,
    18  conspiracy, attempt or criminal facilitation itself constitutes a felony
    19  or any offense in any other jurisdiction  which  if  committed  in  this
    20  state  would  constitute a felony; any offense in any other jurisdiction
    21  which if committed in this state would constitute a felony provided that
    22  for the purposes of this article, none of the following shall be consid-
    23  ered criminal convictions or reported as  such:  (i)  a  conviction  for
    24  which an executive pardon has been issued pursuant to the executive law;
    25  (ii)  a  conviction  which  has  been vacated and replaced by a youthful
    26  offender finding pursuant to article seven hundred twenty of the  crimi-
    27  nal  procedure  law,  or  the  applicable provisions of law of any other
    28  jurisdiction; or (iii) a conviction  the  records  of  which  have  been
    29  sealed  pursuant  to the applicable provisions of the laws of this state
    30  or of any other jurisdiction; and (iv)  a  conviction  for  which  other
    31  evidence  of successful rehabilitation to remove the disability has been
    32  issued.
    33    Felonies involving: assault, aggravated assault and reckless endanger-
    34  ment pursuant to article one  hundred  twenty;  vehicular  manslaughter,
    35  manslaughter and murder pursuant to article one hundred twenty-five; sex
    36  offenses  pursuant to article one hundred thirty; unlawful imprisonment,
    37  kidnapping or coercion pursuant  to  article  one  hundred  thirty-five;
    38  criminal  trespass  and  burglary pursuant to article one hundred forty;
    39  criminal mischief, criminal tampering  and  tampering  with  a  consumer
    40  product  pursuant  to  article one hundred forty-five; arson pursuant to
    41  article one hundred fifty; larceny and offenses involving theft pursuant
    42  to article one hundred fifty-five; offenses involving computers pursuant
    43  to article one  hundred  fifty-six;  robbery  pursuant  to  article  one
    44  hundred  sixty; criminal possession of stolen property pursuant to arti-
    45  cle one hundred sixty-five; forgery and  related  offenses  pursuant  to
    46  article one hundred seventy; involving false written statements pursuant
    47  to  article  one hundred seventy-five; commercial bribing and commercial
    48  bribe receiving pursuant to article one hundred eighty; criminal  imper-
    49  sonation  and  scheme to defraud pursuant to article one hundred ninety;
    50  bribery involving public servants and related offenses pursuant to arti-
    51  cle two hundred; perjury and related offenses pursuant  to  article  two
    52  hundred  ten; tampering with a witness, intimidating a victim or witness
    53  and tampering with physical evidence pursuant  to  article  two  hundred
    54  fifteen;  criminal  possession  of  a  controlled  substance pursuant to
    55  sections 220.06, 220.09, 220.16, 220.18 and 220.21; criminal sale  of  a
    56  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,

        A. 1617--C                         91

     1  220.41, 220.43 and 220.44; criminal sale of [marijuana] cannabis  pursu-
     2  ant  to  sections [221.45, 221.50 and 221.55] 222.55, 222.60 and 222.65;
     3  riot in the first degree, aggravated harassment  in  the  first  degree,
     4  criminal  nuisance in the first degree and falsely reporting an incident
     5  in the second or first degree pursuant to article two hundred forty; and
     6  crimes against public safety pursuant to article two hundred  sixty-five
     7  of the penal law.
     8    §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
     9  business law is REPEALED.
    10    § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
    11  business  law, as amended by chapter 812 of the laws of 1980, is amended
    12  to read as follows:
    13    (h) Objects, used or designed for the purpose of ingesting,  inhaling,
    14  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
    15  into the human body.
    16    § 30. Subdivision 7 of section 995 of the executive law, as amended by
    17  chapter 19 of the laws of 2012, is amended to read as follows:
    18    7.  "Designated  offender"  means  a  person  convicted  of any felony
    19  defined in any chapter of the laws  of  the  state  or  any  misdemeanor
    20  defined  in  the  penal  law  [except that where the person is convicted
    21  under section 221.10 of the penal law, only  a  person  convicted  under
    22  subdivision two of such section, or a person convicted under subdivision
    23  one  of  such  section  who  stands previously convicted of any crime as
    24  defined in subdivision six of section 10.00 of the penal law].
    25    § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
    26  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    27  56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
    28  laws of 1990, are amended to read as follows:
    29    (b) three or more violations of any of the felonies defined in section
    30  220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
    31  220.43[,] or 220.77[, or 221.55] of this chapter,  which  violations  do
    32  not  constitute  a single criminal offense as defined in subdivision one
    33  of section 40.10 of the criminal procedure law,  or  a  single  criminal
    34  transaction,  as  defined in paragraph (a) of subdivision two of section
    35  40.10 of the criminal procedure law, and at least one of which  resulted
    36  in  a  conviction  of  such  offense, or where the accusatory instrument
    37  charges one or more of such felonies, conviction upon a plea  of  guilty
    38  to a felony for which such plea is otherwise authorized by law; or
    39    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    40  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
    41  accusatory instrument charges any such felony, conviction upon a plea of
    42  guilty  to  a  felony for which the plea is otherwise authorized by law,
    43  together with evidence which: (i) provides substantial indicia that  the
    44  defendant  used  the  real  property  to  engage in a continual, ongoing
    45  course of conduct involving the unlawful mixing,  compounding,  manufac-
    46  turing, warehousing, or packaging of controlled substances [or where the
    47  conviction  is  for a violation of section 221.30 of this chapter, mari-
    48  juana] as part of an illegal trade or business for gain; and (ii) estab-
    49  lishes, where the conviction is for possession of a controlled substance
    50  [or where the conviction is for a violation of section  221.30  of  this
    51  chapter,  marijuana],  that  such possession was with the intent to sell
    52  it.
    53    § 32. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
    54  and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
    55  amended to read as follows:

        A. 1617--C                         92

     1    (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
     2  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
     3  of  this  section  that  result in disqualification for a period of five
     4  years shall include a conviction under sections 100.10, 105.13,  115.05,
     5  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
     6  125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
     7  140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
     8  220.16, 220.31, 220.34, 220.60, 220.65, [221.30, 221.50, 221.55,] subdi-
     9  vision two of section 222.50, subdivision two of section 222.55, 230.00,
    10  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,  235.06,
    11  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision  two of section
    12  260.20 and sections 260.25,  265.02,  265.03,  265.08,  265.09,  265.10,
    13  265.12, 265.35 of the penal law or an attempt to commit any of the afor-
    14  esaid  offenses  under  section  110.00 of the penal law, or any similar
    15  offenses committed under a former section  of  the  penal  law,  or  any
    16  offenses  committed  under a former section of the penal law which would
    17  constitute violations of the aforesaid sections of the penal law, or any
    18  offenses committed outside this state which would constitute  violations
    19  of the aforesaid sections of the penal law.
    20    §  33.  The  opening  paragraph  of  paragraph (a) of subdivision 2 of
    21  section 1194 of the vehicle and traffic law, as amended by  chapter  196
    22  of the laws of 1996, is amended to read as follows:
    23    When authorized. Any person who operates a motor vehicle in this state
    24  shall  be deemed to have given consent to a chemical test of one or more
    25  of the following:   breath, blood[,] or  urine[,  or  saliva,]  for  the
    26  purpose  of  determining  the  alcoholic and/or drug content, other than
    27  cannabis content  including  but  not  limited  to  tetrahydrocannabinol
    28  content,  of  the blood provided that such test is administered by or at
    29  the direction of a police officer with respect to  a  chemical  test  of
    30  breath,  urine [or saliva] or, with respect to a chemical test of blood,
    31  at the direction of a police officer:
    32    § 34. The article heading of article 20-B of the tax law, as added  by
    33  chapter 90 of the laws of 2014, is amended to read as follows:
    34                  EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
    35    §  35.  Subdivision  1  of section 171-a of the tax law, as amended by
    36  section 3 of part XX of chapter 59 of the laws of 2019,  is  amended  to
    37  read as follows:
    38    1.  All  taxes,  interest, penalties and fees collected or received by
    39  the commissioner or the commissioner's duly authorized agent under arti-
    40  cles nine (except section one hundred eighty-two-a thereof and except as
    41  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    42  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    43  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    44  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    45  (except as otherwise provided in section four hundred eighty-two  there-
    46  of),  twenty-B, twenty-C, twenty-D, twenty-one, twenty-two, twenty-four,
    47  twenty-six, twenty-eight (except as otherwise provided in section eleven
    48  hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
    49  nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
    50  hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
    51  chapter  shall  be  deposited daily in one account with such responsible
    52  banks, banking houses or trust companies as may  be  designated  by  the
    53  comptroller,  to  the  credit of the comptroller. Such an account may be
    54  established in one or more of such depositories. Such deposits shall  be
    55  kept  separate  and  apart from all other money in the possession of the
    56  comptroller. The comptroller shall require adequate  security  from  all

        A. 1617--C                         93

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

        A. 1617--C                         94

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

        A. 1617--C                         95

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

        A. 1617--C                         96

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

        A. 1617--C                         97

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

    36                                ARTICLE 20-C
    37                     TAX ON ADULT-USE CANNABIS PRODUCTS
    38  Section 492. Definitions.
    39          493. Tax on cannabis.
    40          494. Registration and renewal.
    41          495. Returns and payment of tax.
    42          496. Returns to be kept secret.
    43    §  492. Definitions. For purposes of this article, the following defi-
    44  nitions shall apply:
    45    (a) "Cannabis" shall have the same meaning as in section three of  the
    46  cannabis  law.   For purposes of this article, cannabis does not include
    47  medical cannabis or cannabinoid hemp and  hemp  extract  as  defined  in
    48  section three of the cannabis law.
    49    (b)  "Cannabis product" or "adult-use cannabis product" means a canna-
    50  bis product as defined  in  section  three  of  the  cannabis  law.  For
    51  purposes  of this article, under no circumstances shall adult-use canna-
    52  bis product include  medical  cannabis  or  cannabinoid  hemp  and  hemp
    53  extract as defined in section three of the cannabis law.
    54    (c)  "Person"  means  every individual, partnership, limited liability
    55  company, society, association, joint stock company, corporation, estate,

        A. 1617--C                         98

     1  receiver, trustee, assignee, referee, and any other person acting  in  a
     2  fiduciary  or  representative  capacity, whether appointed by a court or
     3  otherwise, and any combination of the foregoing.
     4    (d)  "Retail dispensary" means a dispensary licensed to sell adult-use
     5  cannabis products pursuant to section seventy-two of the cannabis law.
     6    (e) "Transfer" means  to  grant,  convey,  hand  over,  assign,  sell,
     7  exchange  or  barter,  in  any  manner  or by any means, with or without
     8  consideration.
     9    (f) "Sale" means any transfer of title, possession or  both,  exchange
    10  or  barter,  rental,  lease or license to use or consume, conditional or
    11  otherwise, in any manner or by any means whatsoever for a  consideration
    12  or any agreement therefor.
    13    §  493. Tax on cannabis. (a) There is hereby imposed a tax on the sale
    14  or transfer of adult-use cannabis products by any  person  to  a  retail
    15  dispensary  at  the  rate  of eighteen percent of the amount  charged by
    16  such person for  adult-use cannabis products, which shall accrue at  the
    17  time  of  such sale or transfer. Where the retail dispensary is operated
    18  by a person licensed under the cannabis law as  a  registered  organiza-
    19  tion,  such  tax  shall  be paid by the retail dispensary at the rate of
    20  eighteen percent of the price charged to the retail customer  and  shall
    21  accrue at the time of such sale.
    22    (b)  In  addition  to  the  taxes  imposed  by subdivision (a) of this
    23  section, there is hereby imposed a  tax  on  the  sale  or  transfer  of
    24  adult-use  cannabis products by any person to a retail dispensary at the
    25  rate of one percent of the  amount  charged  by  such  person  for  such
    26  adult-use cannabis products, which shall accrue at the time of such sale
    27  or  transfer.  The tax imposed by this subdivision shall be in trust for
    28  and on account of a city having a population of one million or more,  or
    29  a  county,  other  than a county wholly within such a city, in which the
    30  retail dispensary is located. Where the retail dispensary is operated by
    31  a person licensed under the cannabis law as a  registered  organization,
    32  such  tax  shall  be  paid  by  the retail dispensary at the rate of one
    33  percent of the price charged to the retail customer.
    34    (c) In addition to the taxes imposed by subdivisions (a)  and  (b)  of
    35  this  section,  there is hereby imposed a tax on the sale or transfer of
    36  adult-use cannabis products by any person to a retail dispensary at  the
    37  rate  of  three  percent  of  the amount charged by such person for such
    38  adult-use cannabis products, which shall accrue at the time of such sale
    39  or transfer. The tax imposed by this subdivision shall be in  trust  for
    40  and on account of the town, village, or city in which the retail dispen-
    41  sary  is  located.  Where  the retail dispensary is operated by a person
    42  licensed under the cannabis law as a registered organization,  such  tax
    43  shall  be  paid by the retail dispensary at the rate of three percent of
    44  the price charged to the retail customer.
    45    (d) It shall be presumed that all adult-use cannabis  products  within
    46  the  state are subject to tax until the contrary is established, and the
    47  burden of proof that the taxes imposed by subdivisions (a), (b) and  (c)
    48  of  this  section  have been paid shall be upon the person in possession
    49  thereof where such person holds any  license  under  the  cannabis  law.
    50  Every  person  holding  a  license  under the cannabis law who possesses
    51  adult-use cannabis products upon which such taxes  have  not  been  paid
    52  shall  be  liable for the payment of such taxes, and the failure of such
    53  person to produce to the commissioner or his or her authorized represen-
    54  tative upon demand an invoice for any adult-use cannabis products in his
    55  or her possession shall be presumptive evidence that the tax thereon has

        A. 1617--C                         99

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

        A. 1617--C                         100

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

        A. 1617--C                         101

     1  ment  for  the costs incurred to administer, collect, and distribute the
     2  taxes imposed by this article.
     3    2.  Notwithstanding  the  foregoing, the commissioner shall certify to
     4  the comptroller the total amount of tax, penalty and  interest  received
     5  by  him or her on account of the tax imposed by subdivisions (b) and (c)
     6  of section four hundred ninety-three of this article in trust for and on
     7  account of each county and city having a population of  one  million  or
     8  more,  other  than  a  county  wholly  within such a city, and the town,
     9  village or city in which a retail dispensary is located.  On  or  before
    10  the  twelfth  day  of  each month, the comptroller, after reserving such
    11  fund, shall pay to the appropriate fiscal officer of  each  such  county
    12  and  city  and  a designated officer of such town or village or city the
    13  taxes, penalties and interest received and certified by the commissioner
    14  for the preceding calendar month.
    15    3. In addition to any other penalty provided in this article or other-
    16  wise imposed by law: every person to whom  adult-use  cannabis  products
    17  are  sold  or transferred, and every person licensed as a microbusiness,
    18  cooperative or registered organization under the cannabis law who  fails
    19  to  maintain  or make available to the commissioner the records required
    20  by this section is subject to a  penalty  not  to  exceed  five  hundred
    21  dollars  for  the  first  month  or  part  thereof for which the failure
    22  occurs. This penalty may not be imposed more than once for failures  for
    23  the  same monthly period or part thereof. If the commissioner determines
    24  that a failure to maintain or make available records in  any  month  was
    25  entirely due to reasonable cause and not to willful neglect, the commis-
    26  sioner must remit the penalty for that month.
    27    § 496. Returns to be kept secret. (a) Except in accordance with proper
    28  judicial  order  or  as in this section or otherwise provided by law, it
    29  shall be unlawful for the commissioner, any officer or employee  of  the
    30  department,  or  any officer or person who, pursuant to this section, is
    31  permitted to inspect any return or report or to whom a copy, an abstract
    32  or a portion of any return or report is furnished, or to whom any infor-
    33  mation contained in any return or report is furnished, or any person who
    34  in any manner may acquire knowledge of  the  contents  of  a  return  or
    35  report  filed  pursuant  to this article to divulge or make known in any
    36  manner the content or any other information related to the  business  of
    37  the  wholesaler  contained  in  any return or report required under this
    38  article. The officers charged  with  the  custody  of  such  returns  or
    39  reports  shall  not  be  required  to produce any of them or evidence of
    40  anything contained in them in any action or  proceeding  in  any  court,
    41  except on behalf of the state, the office of cannabis management, or the
    42  commissioner  in an action or proceeding involving the collection of tax
    43  due under this chapter to which the state or the commissioner is a party
    44  or a claimant or on behalf of any party  to  any  action  or  proceeding
    45  under the provisions of this article, when the returns or the reports or
    46  the facts shown thereby are directly involved in such action or proceed-
    47  ing, or in an action or proceeding related to the regulation or taxation
    48  of adult-use cannabis products on behalf of officers to whom information
    49  shall  have  been  supplied as provided in this section, in any of which
    50  events the courts may require  the  production  of,  and  may  admit  in
    51  evidence so much of said returns or reports or of the facts shown there-
    52  by  as  are  pertinent  to the action or proceeding and no more. Nothing
    53  herein shall be construed to prohibit the commissioner, in  his  or  her
    54  discretion, from allowing the inspection or delivery of a certified copy
    55  of  any  return or report filed under this article or of any information
    56  contained in any such return or report by or to a duly authorized  offi-

        A. 1617--C                         102

     1  cer  or  employee of the cannabis control board or by or to the attorney
     2  general or other legal representatives of the state when an action shall
     3  have been recommended or commenced pursuant to  this  chapter  in  which
     4  such  returns  or  reports  or  the  facts  shown  thereby  are directly
     5  involved; or the inspection of the returns  or  reports  required  under
     6  this  article  by the comptroller or duly designated officer or employee
     7  of the state department of audit and control, for purposes of the  audit
     8  of a refund of any tax paid by the wholesaler under this article; nor to
     9  prohibit the delivery to such person or a duly authorized representative
    10  of  such  person, a certified copy of any return or report filed by such
    11  person pursuant to this article, nor  to  prohibit  the  publication  of
    12  statistics  so classified as to prevent the identification of particular
    13  returns or reports and the items thereof. This section shall also not be
    14  construed to prohibit the disclosure, for tax  administration  purposes,
    15  to  the  division of the budget and the office of the state comptroller,
    16  of information aggregated from the  returns  filed  by  all  wholesalers
    17  purchasing and selling such products in the state, whether the number of
    18  such  persons is one or more. Provided further that, notwithstanding the
    19  provisions of this subdivision, the  commissioner  may  in  his  or  her
    20  discretion,  permit the proper officer of any county entitled to receive
    21  any distribution of the monies received on account of the tax imposed by
    22  subdivisions (b) and (c) of section four hundred  ninety-three  of  this
    23  article,  or  the  authorized representative of such officer, to inspect
    24  any return filed under this article, or may furnish to such  officer  or
    25  the  officer's  authorized representative an abstract of any such return
    26  or supply such officer or representative with information concerning  an
    27  item  contained in any such return, or disclosed by any investigation of
    28  tax liability under this article.
    29    (b) The commissioner, in his or her discretion, may permit the  appro-
    30  priate  officers  of any other state that regulates or taxes cannabis or
    31  the duly authorized representatives of such commissioner or of any  such
    32  officers,  to  inspect returns or reports made pursuant to this article,
    33  or may furnish to the commissioner or other officer, or duly  authorized
    34  representatives,  a  copy of any such return or report or an abstract of
    35  the information therein contained, or any portion thereof, or may supply
    36  such commissioner or any such  officers  or  such  representatives  with
    37  information  relating  to the business of a wholesaler making returns or
    38  reports hereunder solely for purposes of tax administration. The commis-
    39  sioner may refuse to supply information pursuant to this subdivision  to
    40  the officers of any other state if the statutes of the state represented
    41  by  such  officers  do not grant substantially similar privileges to the
    42  commissioner, but such refusal shall not be mandatory. Information shall
    43  not be supplied to the appropriate officers of any state that  regulates
    44  or  taxes  cannabis,  or  the  duly  authorized  representatives of such
    45  commissioner or of any such officers, unless such commissioner, officer,
    46  or other representatives shall agree not to divulge or make known in any
    47  manner the information so supplied, but such officers may transmit  such
    48  information  to their employees or legal representatives when necessary,
    49  who in turn shall be subject to the same restrictions  as  those  hereby
    50  imposed upon such commissioner, officer or other representatives.
    51    (c) 1. Any officer or employee of the state who willfully violates the
    52  provisions  of subdivision (a) or (b) of this section shall be dismissed
    53  from office and be incapable of holding any public office in  the  state
    54  for a period of five years thereafter.
    55    2. For criminal penalties, see article thirty-seven of this chapter.

        A. 1617--C                         103

     1    §  40.  Subdivision  (a)  of section 1115 of the tax law is amended by
     2  adding a new paragraph 3-b to read as follows:
     3    (3-b)  Adult-use  cannabis  products as defined by article twenty-C of
     4  this chapter.
     5    § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
     6  health law, the tax law, the state finance  law,  the  general  business
     7  law,  the  penal  law and the criminal procedure law relating to medical
     8  use of marihuana, is amended to read as follows:
     9    § 12. This act shall take effect immediately [and]; provided,  however
    10  that sections one, three, five, six, seven-a, eight, nine, ten and elev-
    11  en  of  this  act  shall expire and be deemed repealed seven years after
    12  such date; provided that the amendments to section 171-a of the tax  law
    13  made by section seven of this act shall take effect on the same date and
    14  in  the same manner as section 54 of part A of chapter 59 of the laws of
    15  2014 takes effect and shall not  expire  and  be  deemed  repealed;  and
    16  provided,  further,  that  the  amendments  to  subdivision 5 of section
    17  410.91 of the criminal procedure law made by section eleven of this  act
    18  shall  not  affect  the  expiration and repeal of such section and shall
    19  expire and be deemed repealed therewith.
    20    § 42. The cannabis control board, in consultation with the division of
    21  the budget, the department of taxation and finance,  the  department  of
    22  health,  office  of  addiction  services  and supports, office of mental
    23  health, New York state police  and  the  division  of  criminal  justice
    24  services, shall conduct a  study of the implementation of this act. Such
    25  study  shall  examine  all  aspects  of this act, including economic and
    26  fiscal impacts, the impact on the public health and safety of  New  York
    27  residents,  the  progress  made in achieving social and economic justice
    28  goals, and toward eliminating the illegal market for  cannabis  products
    29  in  New  York.  The  board  shall  make recommendations regarding if the
    30  changes to level of taxation of adult-use cannabis  is  appropriate,  as
    31  well  as  changes,  if  any, necessary to improve and protect the public
    32  health and safety of New Yorkers. Such  study  shall  be  completed  two
    33  years after the effective date of this act and shall be presented to the
    34  governor,  the  temporary president of the senate and the speaker of the
    35  assembly, no later than October 1, 2022.
    36    § 43. Section 102 of the alcoholic beverage control law is amended  by
    37  adding a new subdivision 8 to read as follows:
    38    8.  No  alcoholic  beverage  retail  licensee  shall sell cannabis, as
    39  defined in section three of the cannabis law,  nor  have  or  possess  a
    40  license or permit to sell cannabis, on the same premises where alcoholic
    41  beverages are sold.
    42    §  44.  Subdivisions  1,  4,  5,  6, 7 and 13 of section 12-102 of the
    43  general obligations law, as added by chapter 406 of the  laws  of  2000,
    44  are amended to read as follows:
    45    1.  "Illegal  drug"  means any controlled substance [or marijuana] the
    46  possession of which is an offense under the public  health  law  or  the
    47  penal law.
    48    4.  "Grade  one  violation"  means  possession of one-quarter ounce or
    49  more, but less than four ounces, or distribution of less than one  ounce
    50  of  an illegal drug [other than marijuana, or possession of one pound or
    51  twenty-five plants or more, but less than four pounds or  fifty  plants,
    52  or distribution of less than one pound of marijuana].
    53    5.  "Grade two violation" means possession of four ounces or more, but
    54  less than eight ounces, or distribution of one ounce or more,  but  less
    55  than two ounces, of an illegal drug [other than marijuana, or possession

        A. 1617--C                         104

     1  of  four pounds or more or fifty plants or distribution of more than one
     2  pound but less than ten pounds of marijuana].
     3    6.  "Grade  three violation" means possession of eight ounces or more,
     4  but less than sixteen ounces, or distribution of two ounces or more, but
     5  less than four ounces, of a specified illegal  drug  [or  possession  of
     6  eight  pounds  or  more  or  seventy-five  plants or more, but less than
     7  sixteen pounds or one hundred plants, or distribution of more than  five
     8  pounds but less than ten pounds of marijuana].
     9    7.  "Grade  four violation" means possession of sixteen ounces or more
    10  or distribution of four ounces or more of a specified illegal  drug  [or
    11  possession  of  sixteen  pounds or more or one hundred plants or more or
    12  distribution of ten pounds or more of marijuana].
    13    13. "Drug trafficker" means a person convicted of a class A or class B
    14  felony controlled substance [or marijuana offense]  who,  in  connection
    15  with  the  criminal  conduct  for  which  he  or  she  stands convicted,
    16  possessed, distributed, sold or conspired to sell a controlled substance
    17  [or marijuana] which, by virtue of its quantity, the person's  prominent
    18  role  in the enterprise responsible for the sale or distribution of such
    19  controlled substance and other circumstances related  to  such  criminal
    20  conduct  indicate  that  such  person's  criminal  possession,  sale  or
    21  conspiracy to sell such substance was not an isolated occurrence and was
    22  part of an ongoing pattern of criminal activity from which  such  person
    23  derived  substantial income or resources and in which such person played
    24  a leadership role.
    25    § 45. Paragraph (g) of subdivision 1 of  section  488  of  the  social
    26  services law, as added by section 1 of part B of chapter 501 of the laws
    27  of 2012, is amended to read as follows:
    28    (g)  "Unlawful use or administration of a controlled substance," which
    29  shall mean any administration by a custodian to a service recipient  of:
    30  a  controlled substance as defined by article thirty-three of the public
    31  health law, without a prescription; or other medication not approved for
    32  any use by the federal food and  drug  administration,  except  for  the
    33  administration  of  medical  cannabis  when  such  administration  is in
    34  accordance with article three of the cannabis law. It also shall include
    35  a custodian unlawfully using or distributing a controlled  substance  as
    36  defined  by  article thirty-three of the public health law, at the work-
    37  place or while on duty.
    38    § 46. Paragraphs (e) and (f) of subdivision 1 of section  490  of  the
    39  social  services  law, as added by section 1 of part B of chapter 501 of
    40  the laws of 2012, are amended and a new paragraph (g) is added  to  read
    41  as follows:
    42    (e)  information  regarding  individual reportable incidents, incident
    43  patterns and trends, and  patterns  and  trends  in  the  reporting  and
    44  response  to  reportable incidents is shared, consistent with applicable
    45  law, with the justice center, in the form and  manner  required  by  the
    46  justice  center  and,  for  facilities or provider agencies that are not
    47  state operated, with the applicable state oversight agency  which  shall
    48  provide such information to the justice center; [and]
    49    (f)  incident  review  committees  are established; provided, however,
    50  that the regulations may authorize an exemption from  this  requirement,
    51  when  appropriate,  based on the size of the facility or provider agency
    52  or other relevant factors. Such committees shall be composed of  members
    53  of  the  governing  body  of  the  facility or provider agency and other
    54  persons identified by the director of the facility or  provider  agency,
    55  including  some members of the following: direct support staff, licensed
    56  health care practitioners, service  recipients  and  representatives  of

        A. 1617--C                         105

     1  family,  consumer and other advocacy organizations, but not the director
     2  of the facility or provider agency. Such committee shall meet  regularly
     3  to:  (i)  review the timeliness, thoroughness and appropriateness of the
     4  facility  or  provider  agency's responses to reportable incidents; (ii)
     5  recommend additional opportunities for improvement to  the  director  of
     6  the  facility  or provider agency, if appropriate; (iii) review incident
     7  trends and patterns  concerning  reportable  incidents;  and  (iv)  make
     8  recommendations  to  the  director of the facility or provider agency to
     9  assist in reducing reportable incidents. Members of the committee  shall
    10  be  trained  in  confidentiality  laws and regulations, and shall comply
    11  with section seventy-four of the public officers law[.]; and
    12    (g) safe storage, administration, and  diversion  prevention  policies
    13  regarding controlled substances and medical cannabis.
    14    §  47. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal
    15  law, as added by chapter 90 of the laws of 2014, are amended to read  as
    16  follows:
    17  § 179.00 Criminal  diversion  of  medical  [marihuana]  cannabis;  defi-
    18             nitions.
    19    The following definitions are applicable to this article:
    20    1. "Medical [marihuana] cannabis" means medical  [marihuana]  cannabis
    21  as  defined  in [subdivision eight of section thirty-three hundred sixty
    22  of the public health law] section three of the cannabis law.
    23    2. "Certification" means a certification, made under section  [thirty-
    24  three hundred sixty-one of the public health law] thirty of the cannabis
    25  law.
    26  § 179.05 Criminal  diversion  of  medical  [marihuana] cannabis; limita-
    27             tions.
    28    The provisions of this article shall not apply to:
    29    1. a practitioner authorized to issue a  certification  who  acted  in
    30  good faith in the lawful course of his or her profession; or
    31    2.  a  registered organization as that term is defined in [subdivision
    32  nine of section thirty-three hundred sixty of  the  public  health  law]
    33  section  thirty-four  of the cannabis law who acted in good faith in the
    34  lawful course of the practice of pharmacy; or
    35    3. a person who acted in good faith seeking treatment  for  a  medical
    36  condition  or assisting another person to obtain treatment for a medical
    37  condition.
    38  § 179.10 Criminal diversion of medical [marihuana] cannabis in the first
    39             degree.
    40    A person is guilty of criminal diversion of medical [marihuana] canna-
    41  bis in the first degree when he or she is a practitioner, as  that  term
    42  is  defined in [subdivision twelve of section thirty-three hundred sixty
    43  of the public health law] section three of the cannabis law, who  issues
    44  a  certification  with  knowledge of reasonable grounds to know that (i)
    45  the recipient has no medical need for it, or (ii) it is  for  a  purpose
    46  other  than  to  treat  a [serious] condition as defined in [subdivision
    47  seven of section thirty-three hundred sixty of the  public  health  law]
    48  section three of the cannabis law.
    49    Criminal diversion of medical [marihuana] cannabis in the first degree
    50  is a class E felony.
    51  § 179.11 Criminal  diversion  of  medical  [marihuana]  cannabis  in the
    52             second degree.
    53    A person is guilty of criminal diversion of medical [marihuana] canna-
    54  bis in the second degree when he or  she  sells,  trades,  delivers,  or
    55  otherwise  provides  medical  [marihuana] cannabis to another with know-
    56  ledge or reasonable grounds to know that the recipient is not registered

        A. 1617--C                         106

     1  under [title five-A of article thirty-three of the  public  health  law]
     2  article three of the cannabis law.
     3    Criminal  diversion  of  medical  [marihuana]  cannabis  in the second
     4  degree is a class B misdemeanor.
     5  § 179.15 Criminal retention of medical [marihuana] cannabis.
     6    A person is guilty of criminal retention of medical [marihuana] canna-
     7  bis when, being a certified patient or designated  caregiver,  as  those
     8  terms  are  defined  in  [subdivisions three and five of section thirty-
     9  three hundred sixty of the  public  health  law,  respectively]  section
    10  three  of  the  cannabis  law,  he  or she knowingly obtains, possesses,
    11  stores or maintains an amount of [marihuana] cannabis in excess  of  the
    12  amount he or she is authorized to possess under the provisions of [title
    13  five-A  of  article thirty-three of the public health law] article three
    14  of the cannabis law.
    15    Criminal retention of medical [marihuana is  a  class  A  misdemeanor]
    16  cannabis shall be punishable as provided in section 222.25 of this chap-
    17  ter.
    18    §  48. Section 220.78 of the penal law, as added by chapter 154 of the
    19  laws of 2011, is amended to read as follows:
    20  § 220.78 Witness or victim of drug or alcohol overdose.
    21    1. A person who, in good faith, seeks health care for someone  who  is
    22  experiencing  a  drug  or  alcohol  overdose  or  other life threatening
    23  medical emergency shall not be charged or prosecuted  for  a  controlled
    24  substance offense under this article [two hundred twenty] or a [marihua-
    25  na]  cannabis  offense under article two hundred [twenty-one] twenty-two
    26  of this title, other than an offense involving sale for consideration or
    27  other benefit or gain, or charged or prosecuted for possession of  alco-
    28  hol by a person under age twenty-one years under section sixty-five-c of
    29  the  alcoholic beverage control law, or for possession of drug parapher-
    30  nalia under article  thirty-nine  of  the  general  business  law,  with
    31  respect  to  any  controlled substance, [marihuana] cannabis, alcohol or
    32  paraphernalia that was obtained as a result of such seeking or receiving
    33  of health care.
    34    2. A person who is experiencing a drug or alcohol  overdose  or  other
    35  life threatening medical emergency and, in good faith, seeks health care
    36  for  himself  or  herself or is the subject of such a good faith request
    37  for health care, shall not be charged or  prosecuted  for  a  controlled
    38  substance  offense  under this article or a [marihuana] cannabis offense
    39  under article two hundred [twenty-one] twenty-two of this  title,  other
    40  than  an  offense  involving  sale for consideration or other benefit or
    41  gain, or charged or prosecuted for possession of  alcohol  by  a  person
    42  under  age  twenty-one years under section sixty-five-c of the alcoholic
    43  beverage control law, or charged or prosecuted for possession of  canna-
    44  bis  or  concentrated  cannabis  by a person under the age of twenty-one
    45  under section one  hundred  thirty-two  of  the  cannabis  law,  or  for
    46  possession of drug paraphernalia under article thirty-nine of the gener-
    47  al  business  law,  with respect to any substance, [marihuana] cannabis,
    48  alcohol or paraphernalia that was obtained as a result of  such  seeking
    49  or receiving of health care.
    50    3. Definitions. As used in this section the following terms shall have
    51  the following meanings:
    52    (a)  "Drug or alcohol overdose" or "overdose" means an acute condition
    53  including, but not limited to, physical illness, coma,  mania,  hysteria
    54  or  death,  which  is  the  result of consumption or use of a controlled
    55  substance or alcohol and relates to an adverse reaction to or the  quan-
    56  tity  of  the  controlled substance or alcohol or a substance with which

        A. 1617--C                         107

     1  the controlled substance  or  alcohol  was  combined;  provided  that  a
     2  patient's  condition shall be deemed to be a drug or alcohol overdose if
     3  a prudent layperson, possessing an average  knowledge  of  medicine  and
     4  health, could reasonably believe that the condition is in fact a drug or
     5  alcohol overdose and (except as to death) requires health care.
     6    (b) "Health care" means the professional services provided to a person
     7  experiencing  a  drug  or alcohol overdose by a health care professional
     8  licensed, registered or certified under title eight of the education law
     9  or article thirty of the public health law who, acting within his or her
    10  lawful scope of practice, may provide diagnosis, treatment or  emergency
    11  services for a person experiencing a drug or alcohol overdose.
    12    4.  It  shall  be an affirmative defense to a criminal sale controlled
    13  substance offense under this article or a criminal sale  of  [marihuana]
    14  cannabis  offense  under  article two hundred [twenty-one] twenty-two of
    15  this title, not covered by subdivision one or two of this section,  with
    16  respect  to  any  controlled substance or [marihuana] cannabis which was
    17  obtained as a result of such seeking or receiving of health care, that:
    18    (a) the defendant, in good faith, seeks health care for someone or for
    19  him or herself who is experiencing a drug or alcohol overdose  or  other
    20  life threatening medical emergency; and
    21    (b)  the  defendant  has  no  prior  conviction  for the commission or
    22  attempted commission of a class A-I, A-II or B felony under  this  arti-
    23  cle.
    24    5. Nothing in this section shall be construed to bar the admissibility
    25  of  any evidence in connection with the investigation and prosecution of
    26  a crime with regard to another  defendant  who  does  not  independently
    27  qualify  for  the bar to prosecution or for the affirmative defense; nor
    28  with regard to other crimes committed by a person who  otherwise  quali-
    29  fies under this section; nor shall anything in this section be construed
    30  to  bar any seizure pursuant to law, including but not limited to pursu-
    31  ant to section thirty-three hundred eighty-seven of  the  public  health
    32  law.
    33    6.  The  bar  to  prosecution described in subdivisions one and two of
    34  this section shall not apply to the prosecution of a  class  A-I  felony
    35  under this article, and the affirmative defense described in subdivision
    36  four  of  this section shall not apply to the prosecution of a class A-I
    37  or A-II felony under this article.
    38    § 49. Subdivision 1 of section 260.20 of the penal law, as amended  by
    39  chapter 362 of the laws of 1992, is amended as follows:
    40    1.  He knowingly permits a child less than eighteen years old to enter
    41  or remain in or upon a place, premises  or  establishment  where  sexual
    42  activity as defined by article one hundred thirty, two hundred thirty or
    43  two  hundred  sixty-three  of  this [chapter] part or activity involving
    44  controlled substances as defined by article two hundred twenty  of  this
    45  [chapter  or involving marihuana as defined by article two hundred twen-
    46  ty-one of this chapter] part is maintained or conducted, and he knows or
    47  has reason to know that such activity is being maintained or  conducted;
    48  or
    49    § 50. Section 89-h of the state finance law, as added by chapter 90 of
    50  the laws of 2014, is amended to read as follows:
    51    §  89-h.  Medical  [marihuana] cannabis trust fund. 1. There is hereby
    52  established in the joint  custody  of  the  state  comptroller  and  the
    53  commissioner  of  taxation and finance a special fund to be known as the
    54  "medical [marihuana] cannabis trust fund."
    55    2. The medical [marihuana] cannabis trust fund shall  consist  of  all
    56  moneys  required  to  be  deposited  in the medical [marihuana] cannabis

        A. 1617--C                         108

     1  trust fund pursuant to the provisions of section four hundred ninety  of
     2  the tax law.
     3    3.  The moneys in the medical [marihuana] cannabis trust fund shall be
     4  kept separate and shall not be commingled with any other moneys  in  the
     5  custody  of the commissioner of taxation and finance and the state comp-
     6  troller.
     7    4. The moneys of the medical [marihuana] cannabis trust fund,  follow-
     8  ing  appropriation by the legislature, shall be allocated upon a certif-
     9  icate of approval of availability by  the  director  of  the  budget  as
    10  follows:   (a) Twenty-two and five-tenths percent of the monies shall be
    11  transferred to the counties in New  York  state  in  which  the  medical
    12  [marihuana] cannabis was manufactured and allocated in proportion to the
    13  gross  sales  originating from medical [marihuana] cannabis manufactured
    14  in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
    15  moneys  shall  be transferred to the counties in New York state in which
    16  the medical [marihuana] cannabis was dispensed and allocated in  propor-
    17  tion  to the gross sales occurring in each such county; (c) five percent
    18  of the monies shall be transferred to  the  office  of  [alcoholism  and
    19  substance  abuse  services] addiction services and supports, which shall
    20  use that revenue for additional drug abuse  prevention,  counseling  and
    21  treatment  services; and (d) five percent of the revenue received by the
    22  department shall be transferred to  the  division  of  criminal  justice
    23  services,  which  shall  use that revenue for a program of discretionary
    24  grants to state and local law enforcement agencies  that  demonstrate  a
    25  need  relating  to  [title  five-A of article thirty-three of the public
    26  health law] article three of the cannabis law; said grants could be used
    27  for personnel costs of state and local  law  enforcement  agencies.  For
    28  purposes of this subdivision, the city of New York shall be deemed to be
    29  a county.
    30    §  51.  The  state finance law is amended by adding three new sections
    31  99-hh, 99-ii and 99-jj to read as follows:
    32    § 99-hh. New York state cannabis revenue  fund.  1.  There  is  hereby
    33  established  in  the  joint  custody  of  the  state comptroller and the
    34  commissioner of taxation and finance a special fund to be known  as  the
    35  "New York state cannabis revenue fund".
    36    2.  Such fund shall consist of all revenues received by the department
    37  of taxation and finance, pursuant to the provisions of article  twenty-C
    38  of  the tax law and all other moneys appropriated thereto from any other
    39  fund or source pursuant to law.  Nothing contained in this section shall
    40  prevent the state from receiving  grants,  gifts  or  bequests  for  the
    41  purposes of the fund as defined in this section and depositing them into
    42  the fund according to law.
    43    3.  The  moneys  in  such  fund  shall  be  expended for the following
    44  purposes:
    45    (a) Reasonable costs  incurred  by  the  department  of  taxation  and
    46  finance for administering and collecting the taxes imposed by this part;
    47  provided,  however,  such  costs  shall  not  exceed four percent of tax
    48  revenues received.
    49    (b) Reasonable costs incurred by the office of cannabis management and
    50  the cannabis control board for implementing, administering, and  enforc-
    51  ing the marihuana regulation and taxation act.
    52    (c)  Actual  and  necessary  costs  incurred by the office of cannabis
    53  management and the cannabis control board related to the  administration
    54  of  incubators  and  other  assistance  to qualified social and economic
    55  equity applicants including low and zero interest loans provided to such
    56  applicants pursuant to  section  sixteen-ee  of  the  urban  development

        A. 1617--C                         109

     1  corporation  act.  Such  costs  shall  be paid out of revenues received,
     2  including, but not limited to, from special one-time fees paid by regis-
     3  tered organizations pursuant to section sixty-three of the cannabis law.
     4    (d)  Beginning  with the two thousand twenty-one--two thousand twenty-
     5  two fiscal year and continuing  through  the  two  thousand  thirty--two
     6  thousand  thirty-one  fiscal  year,  the  commissioner  of  taxation and
     7  finance shall annually disburse the following sums for the  purposes  of
     8  data collection and reporting:
     9    (i)  Reasonable  costs  incurred  by the office of cannabis management
    10  policy to track and report data related to  the  licensing  of  cannabis
    11  businesses,  including  the geographic location, structure, and function
    12  of licensed cannabis businesses, and demographic data,  including  race,
    13  ethnicity,  and  gender, of applicants and license holders. The cannabis
    14  control board shall publish reports on its findings annually  and  shall
    15  make the reports available to the public.
    16    (ii)  Reasonable  costs incurred by the department of criminal justice
    17  services  to  track  and  report  data  related  to   any   infractions,
    18  violations,  or criminal convictions that occur under any of the remain-
    19  ing cannabis statutes.   The department  of  criminal  justice  services
    20  shall  publish  reports  on  its  findings  annually  and shall make the
    21  reports available to the public.
    22    (iii) Reasonable costs incurred by agencies of  the  state,  including
    23  the  state university of New York to research and evaluate the implemen-
    24  tation and effect of the cannabis law. No  more  than  four  percent  of
    25  these monies may be used for expenses related to administrative costs of
    26  conducting  such  research, and to, if appropriate, make recommendations
    27  to the legislature and governor regarding  possible  amendments  to  the
    28  cannabis  law.  The  recipients  of these funds shall publish reports on
    29  their findings at a minimum of  every  two  years  and  shall  make  the
    30  reports  available  to  the public. The research funded pursuant to this
    31  subdivision shall include but not necessarily be limited to:
    32    (A) the impact on public health,  including  health  costs  associated
    33  with cannabis use, as well as whether cannabis use is associated with an
    34  increase or decrease in use of alcohol or other drugs;
    35    (B)  the  impact of treatment for cannabis use disorder and the effec-
    36  tiveness of different treatment programs;
    37    (C) public safety issues related to cannabis use, including,  but  not
    38  limited  to  studying  the  effectiveness  of the packaging and labeling
    39  requirements and advertising and marketing restrictions contained in the
    40  act at preventing underage access to and use of  cannabis  and  cannabis
    41  products, and studying the health-related effects among users of varying
    42  potency levels of cannabis and cannabis products;
    43    (D)  cannabis  use  rates, maladaptive use rates for adults and youth,
    44  and diagnosis rates of cannabis-related substance use disorders;
    45    (E) cannabis market prices, illicit market prices, tax structures  and
    46  rates,  including  an  evaluation  of  how to best tax cannabis based on
    47  potency, and the structure and function of licensed cannabis businesses;
    48    (F) whether additional protections  are  needed  to  prevent  unlawful
    49  monopolies  or  anti-competitive behavior from occurring in the cannabis
    50  industry and, if so, recommendations as to the most  effective  measures
    51  for preventing such behavior;
    52    (G)  the economic impacts in the private and public sectors, including
    53  but not necessarily limited to, job creation, workplace  safety,  reven-
    54  ues,  taxes  generated for state and local budgets, and criminal justice
    55  impacts, including, but not  necessarily  limited  to,  impacts  on  law
    56  enforcement  and  public  resources, short and long term consequences of

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     1  involvement in the criminal justice system, and state and local  govern-
     2  ment agency administrative costs and revenue;
     3    (H)  whether  the  regulatory  agencies  tasked  with implementing and
     4  enforcing the  marihuana  regulation  and  taxation  act  are  doing  so
     5  consistent  with the intent and purposes of the act, and whether differ-
     6  ent agencies might do so more effectively; and
     7    (I)  any  environmental  impacts  and  hazards  related  to   cannabis
     8  production.
     9    (e)  Reasonable  costs  incurred  by  the  state  police to expand and
    10  enhance the drug recognition expert training  program  and  technologies
    11  utilized in the process of maintaining road safety.
    12    4. After the dispersal of moneys pursuant to subdivision three of this
    13  section,  the  remaining  moneys  in the fund deposited during the prior
    14  fiscal year shall be disbursed into the state lottery fund and two addi-
    15  tional sub-funds created within the cannabis revenue fund known  as  the
    16  drug  treatment and public education fund and the community grants rein-
    17  vestment fund, as follows:
    18    (a) twenty-five percent shall be deposited in the state  lottery  fund
    19  established  by section ninety-two-c of this article; provided that such
    20  moneys shall be distributed to the department of education in accordance
    21  with subdivisions two and four of section ninety-two-c of  this  article
    22  and  shall not be utilized for the purposes of subdivision three of such
    23  section. Monies allocated by this article may  enhance,  but  shall  not
    24  supplant, existing dedicated funds to the department of education;
    25    (b)  twenty-five  percent shall be deposited in the drug treatment and
    26  public education fund established  by  section  ninety-nine-ii  of  this
    27  article; and
    28    (c) fifty percent shall be deposited in the community grants reinvest-
    29  ment fund established by section ninety-nine-jj of this article.
    30    §  99-ii.  New York state drug treatment and public education fund. 1.
    31  There is hereby established in the joint  custody  of  the  state  comp-
    32  troller  and  the commissioner of taxation and finance a special fund to
    33  be known as the "New York state drug treatment public education fund".
    34    2. Such fund shall  consist  of  revenues  received  pursuant  to  the
    35  provisions  of  section  ninety-nine-hh  of  this  article and all other
    36  moneys appropriated thereto from any other fund or  source  pursuant  to
    37  law.  Nothing  contained  in  this  section shall prevent the state from
    38  receiving grants, gifts or bequests for the  purposes  of  the  fund  as
    39  defined  in  this section and depositing them into the fund according to
    40  law.
    41    3. The moneys in such fund shall be expended to  the  commissioner  of
    42  the  office of addiction services and supports and disbursed, in consul-
    43  tation with the commissioner of the department of health and the commis-
    44  sioner of education for the following purposes:
    45    (a) To develop and implement a youth-focused public  health  education
    46  and prevention campaign, including school-based prevention, early inter-
    47  vention,  and  health  care  services and programs to reduce the risk of
    48  cannabis and other substance use by school-aged children;
    49    (b) To develop  and  implement  a  statewide  public  health  campaign
    50  focused  on  the  health effects of cannabis and legal use, including an
    51  ongoing education and prevention  campaign  that  educates  the  general
    52  public,  including parents, consumers and retailers, on the legal use of
    53  cannabis, the importance of preventing youth access, the  importance  of
    54  safe storage and preventing secondhand cannabis smoke exposure, informa-
    55  tion  for  pregnant  or  breastfeeding women, and the overconsumption of
    56  edible cannabis products;

        A. 1617--C                         111

     1    (c) To provide substance use disorder treatment programs for youth and
     2  adults, with an emphasis on programs  that  are  culturally  and  gender
     3  competent,  trauma-informed,  evidence-based  and provide a continuum of
     4  care that includes screening and assessment (substance use  disorder  as
     5  well  as  mental  health),  early intervention, active treatment, family
     6  involvement, case management, overdose prevention, prevention of  commu-
     7  nicable  diseases  related  to  substance  use,  relapse  management for
     8  substance use and other co-occurring behavioral health disorders,  voca-
     9  tional  services,  literacy  services, parenting classes, family therapy
    10  and counseling  services,  medication-assisted  treatments,  psychiatric
    11  medication and psychotherapy; and
    12    (d)  To  evaluate  the programs being funded to determine their effec-
    13  tiveness.
    14    4. On or before the first day of February each year, the  commissioner
    15  of the office of addiction services and supports shall provide a written
    16  report  to  the temporary president of the senate, speaker of the assem-
    17  bly, chair of the senate finance committee, chair of the  assembly  ways
    18  and  means  committee,  chair  of the senate committee on alcoholism and
    19  drug abuse, chair of the assembly alcoholism and drug  abuse  committee,
    20  the  state  comptroller and the public. Such report shall detail how the
    21  moneys of the fund were utilized during the preceding calendar year, and
    22  shall include:
    23    (a) the amount of money dispersed from the fund and the award  process
    24  used for such disbursements;
    25    (b) recipients of awards from the fund;
    26    (c) the amount awarded to each recipient of an award from the fund;
    27    (d) the purposes for which such awards were granted; and
    28    (e) a summary financial plan for such monies which shall include esti-
    29  mates of all receipts and all disbursements for the current and succeed-
    30  ing  fiscal  years,  along with the actual results from the prior fiscal
    31  year.
    32    5. Moneys shall be payable from the fund on the audit and  warrant  of
    33  the  comptroller  on vouchers approved and certified by the commissioner
    34  of addiction services and supports.
    35    § 99-jj. New York state community grants reinvestment fund.  1.  There
    36  is  hereby established in the joint custody of the state comptroller and
    37  the commissioner of taxation and finance a special fund to be  known  as
    38  the "New York state community grants reinvestment fund".
    39    2.  Such  fund  shall consist of all revenues received pursuant to the
    40  provisions of section ninety-nine-hh  of  this  article  and  all  other
    41  moneys  appropriated  thereto  from any other fund or source pursuant to
    42  law. Nothing contained in this section  shall  prevent  the  state  from
    43  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
    44  defined in this section and depositing them into the fund  according  to
    45  law.
    46    3.  The fund shall be governed and administered by an executive steer-
    47  ing committee of fifteen members, including the chief equity officer  of
    48  the  office  of cannabis management, who shall be the chair, a represen-
    49  tative from the office of children and family services,  the  department
    50  of labor, the department of health, the division of housing and communi-
    51  ty  renewal, and the office of addiction services and supports appointed
    52  by the governor; a representative of the education department  appointed
    53  by  the  board of regents; two members appointed by the temporary presi-
    54  dent of the senate; two members appointed by the speaker of  the  assem-
    55  bly;  one  member  appointed  by  the minority leader of the senate; one
    56  member appointed by the minority leader  of  the  assembly;  one  member

        A. 1617--C                         112

     1  appointed  by  the comptroller; and one member appointed by the attorney
     2  general. Every effort shall be made to ensure  a  balanced  and  diverse
     3  committee  representing the regions and demographics of the state, which
     4  shall  have expertise in job placement, homelessness and housing, behav-
     5  ioral health and substance use disorder treatment, and effective rehabi-
     6  litative treatment for adults and juveniles, and shall include represen-
     7  tatives of organizations serving communities impacted  by  past  federal
     8  and state drug policies.
     9    4.  The  moneys  in  such  fund shall be administered by the office of
    10  cannabis management and allocated by the executive steering committee to
    11  provide grants for qualified community-based nonprofit organizations and
    12  approved local government entities for the  purpose  of  reinvesting  in
    13  communities  disproportionately  affected by past federal and state drug
    14  policies. Such grants shall be used, including but not  limited  to,  to
    15  support  job  placement,  job  skills  services, adult education, mental
    16  health treatment, substance use disorder treatment,  housing,  financial
    17  literacy,  community  banking,  nutrition  services, services to address
    18  adverse childhood experiences,  afterschool  and  child  care  services,
    19  system  navigation  services,  legal  services  to  address  barriers to
    20  reentry, including, but not limited  to,  providing  representation  and
    21  related  assistance  with  expungement, vacatur, substitution and resen-
    22  tencing of marihuana-related convictions, and linkages to medical  care,
    23  women's  health  services and other community-based supportive services.
    24  The grants from this program may also be used  to  further  support  the
    25  social and economic equity program created by article four of the canna-
    26  bis law and as established by the cannabis control board.
    27    5.  On  or  before  the first day of February each year, the office of
    28  cannabis management shall provide a  written  report  to  the  temporary
    29  president  of  the  senate, speaker of the assembly, chair of the senate
    30  finance committee, chair of the assembly ways and means committee, chair
    31  of the senate committee on children and families, chair of the  assembly
    32  children and families committee, chair of the senate committee on labor,
    33  chair  of the assembly labor committee, chair of the senate committee on
    34  health, chair of the assembly health  committee,  chair  of  the  senate
    35  committee  on  education, chair of the assembly education committee, the
    36  state comptroller and the public.  Such  report  shall  detail  how  the
    37  monies of the fund were utilized during the preceding calendar year, and
    38  shall include:
    39    (a)  the amount of money available and dispersed from the fund and the
    40  award process used for such disbursements;
    41    (b) recipients of awards from the fund;
    42    (c) the amount awarded to each recipient of an award from the fund;
    43    (d) the purposes for which such awards were granted; and
    44    (e) a summary financial plan for such monies which shall include esti-
    45  mates of all receipts and all disbursements for the current and succeed-
    46  ing fiscal years, along with the actual results from  the  prior  fiscal
    47  year.
    48    6.  Moneys  shall be payable from the fund on the audit and warrant of
    49  the comptroller on vouchers approved and  certified  by  the  office  of
    50  cannabis management.
    51    §  52. Paragraphs (a), (b) and (c) of subdivision 3-a of section 390-b
    52  of the social services law, as added by section 9 of part H  of  chapter
    53  56 of the laws of 2019, are amended to read as follows:
    54    (a)  In  relation to child day care programs and any enrolled legally-
    55  exempt provider, when a clearance conducted  pursuant  to  this  section
    56  reveals  that any existing operator, director, caregiver, or person over

        A. 1617--C                         113

     1  the age of eighteen who is not related in any way to  all  children  for
     2  whom child care services are or will be provided, that resides in a home
     3  where  child care is provided in a home setting where the child does not
     4  reside has been convicted of a crime other than one set forth in subpar-
     5  agraph  (iv)  of paragraph (a) of subdivision three of this section, and
     6  unless such crime is eligible for expungement pursuant to section 160.50
     7  of the criminal  procedure  law,  the  office  of  children  and  family
     8  services  shall  conduct a safety assessment of the program and take all
     9  appropriate steps to protect the health and safety of  the  children  in
    10  the  program,  and  may  deny,  limit,  suspend,  revoke  or reject such
    11  program's license or registration or terminate or reject such  program's
    12  enrollment,  as  applicable,  unless  the  office of children and family
    13  services, determines in its discretion, that continued operation by  the
    14  child  day  care program or enrolled legally-exempt provider will not in
    15  any way jeopardize the health, safety or welfare of the  children  cared
    16  for in the program or by the provider.
    17    (b)  In  relation to child day care programs and any enrolled legally-
    18  exempt provider, when a clearance conducted  pursuant  to  this  section
    19  reveals  that  any existing employee or volunteer with the potential for
    20  unsupervised contact with children has been convicted of a  crime  other
    21  than  one set forth in subparagraph (iv) of paragraph (a) of subdivision
    22  three of this section, and unless such crime is eligible for expungement
    23  pursuant to section 160.50 of the criminal procedure law, the office  of
    24  children  of  family  services  shall conduct a safety assessment of the
    25  program and take all appropriate steps to protect the health and  safety
    26  of  the  children  in  the  program.  The  office of children and family
    27  services may direct the program or provider to terminate the employee or
    28  volunteer  based  on  such  a  conviction,   consistent   with   article
    29  twenty-three-A of the correction law.
    30    (c)  (i)  In  relation to any child day care programs and any enrolled
    31  legally-exempt providers, where a clearance conducted pursuant  to  this
    32  section  reveals  a  conviction  for a crime other than one set forth in
    33  subparagraph (iv) of paragraph (a) of subdivision three of this section,
    34  and unless such crime is eligible for expungement  pursuant  to  section
    35  160.50  of  the  criminal procedure law, for any prospective employee or
    36  volunteer, the office of children and family services  may  direct  that
    37  such  person  not  be  hired, as applicable, based on such a conviction,
    38  consistent with article twenty-three-A of the correction law.
    39    (ii) In relation to any child day care program and any enrolled legal-
    40  ly-exempt provider, when a clearance conducted pursuant to this  section
    41  reveals  a  conviction  for a crime other than one set forth in subpara-
    42  graph (iv) of paragraph (a) of subdivision three of  this  section,  and
    43  unless such crime is eligible for expungement pursuant to section 160.50
    44  of  the  criminal  procedure  law, for any prospective caregiver seeking
    45  enrollment, or applicant to be a director or  operator,  the  office  of
    46  children  and  family  services  may deny the application or enrollment,
    47  consistent with article twenty-three-A of the correction law.
    48    § 53. Subparagraph 1 of paragraph (e)  of  subdivision  2  of  section
    49  378-a  of the social services law, as amended by section 10 of part L of
    50  chapter 56 of the laws of 2015, is amended to read as follows:
    51    (1) Notwithstanding any other provision of law  to  the  contrary,  an
    52  application for certification or approval of a prospective foster parent
    53  or  prospective  adoptive  parent  shall  be denied and, in the event of
    54  death or incapacity of a relative  guardian,  an  agreement  to  provide
    55  payments  to  a  prospective successor guardian pursuant to title ten of
    56  this article shall not be approved  pursuant  to  subparagraph  (ii)  of

        A. 1617--C                         114

     1  paragraph  (b) of subdivision five of section four hundred fifty-eight-b
     2  of this article, as applicable, where a criminal history record  of  the
     3  prospective  foster  parent,  prospective adoptive parent or prospective
     4  successor guardian, as applicable, reveals a conviction for:
     5    (A)  a  felony  conviction  at  any time involving: (i) child abuse or
     6  neglect; (ii) spousal abuse; (iii) a crime against  a  child,  including
     7  child  pornography;  or (iv) a crime involving violence, including rape,
     8  sexual assault, or homicide,  other  than  a  crime  involving  physical
     9  assault or battery; or
    10    (B)  a  felony  conviction  within  the  past  five years for physical
    11  assault, battery, or a drug-related  offense,  unless  such  offense  is
    12  eligible  for  expungement  pursuant  to  section 160.50 of the criminal
    13  procedure law; or
    14    § 54. Paragraph (b) of subdivision 4 of  section  132  of  the  social
    15  services  law,  as  added  by section 23 of part B of chapter 436 of the
    16  laws of 1997, is amended to read as follows:
    17    (b) When the screening process  indicates  that  there  is  reason  to
    18  believe  that an applicant or recipient is abusing or dependent on alco-
    19  hol or drugs, the social services district shall require a formal  alco-
    20  hol or substance abuse assessment, which may include drug testing, to be
    21  performed by an alcohol and/or substance abuse professional credentialed
    22  by  the  office  of  [alcoholism and substance abuse services] addiction
    23  services and supports.  Provided however, if the applicant or  recipient
    24  tests  positive  for the presence of cannabis, the positive result alone
    25  shall not be sufficient  to  establish  a  dependence  for  purposes  of
    26  requiring  an  individual to participate in a treatment program pursuant
    27  to paragraph (c) of this subdivision. The assessment  may  be  performed
    28  directly by the district or pursuant to contract with the district.
    29    §  55.  Subdivision  6  of  section 422 of the social services law, as
    30  amended by section 7 of part D of chapter 501 of the laws  of  2012,  is
    31  amended to read as follows:
    32    6.  In  all  other  cases,  the  record of the report to the statewide
    33  central register shall be expunged ten years after the eighteenth birth-
    34  day of the youngest child named in the report. In the case of a child in
    35  residential care the record of  the  report  to  the  statewide  central
    36  register  shall  be  expunged ten years after the reported child's eigh-
    37  teenth birthday. In any case and at any time, the  commissioner  of  the
    38  office  of  children  and family services may amend any record upon good
    39  cause shown and notice to the subjects of the report and  other  persons
    40  named  in  the  report.  Provided  however,  any  report  indicated  for
    41  maltreatment based solely on the purchase, possession or consumption  of
    42  cannabis,  without  a  showing  that  the  child's  physical,  mental or
    43  emotional condition was impaired or was in imminent danger  of  becoming
    44  impaired established by a fair preponderance of the evidence shall imme-
    45  diately  be  sealed upon a request pursuant to subdivision eight of this
    46  section or section four hundred twenty-four-a of this title.
    47    § 56. Intentionally omitted.
    48    § 57. Subdivision (a) of section 712  of  the  family  court  act,  as
    49  amended  by  section  1  of part K of chapter 56 of the laws of 2019, is
    50  amended to read as follows:
    51    (a) "Person in need of supervision". A person less than eighteen years
    52  of age: (i) who does not attend school in accordance with the provisions
    53  of part one of article sixty-five of the  education  law;  (ii)  who  is
    54  incorrigible,  ungovernable  or  habitually  disobedient  and beyond the
    55  lawful control of a parent or other person legally responsible for  such
    56  child's  care,  or  other  lawful  authority;  (iii)  who  violates  the

        A. 1617--C                         115

     1  provisions of[: (1) section 221.05; or (2)] section 230.00 of the  penal
     2  law;  (iv) or who appears to be a sexually exploited child as defined in
     3  paragraph (a), (c) or (d) of subdivision one  of  section  four  hundred
     4  forty-seven-a of the social services law, but only if the child consents
     5  to the filing of a petition under this article.
     6    § 58. Paragraph (iii) of subdivision (a) of section 1046 of the family
     7  court  act, as amended by chapter 984 of the laws of 1981, is amended to
     8  read as follows:
     9    (iii) proof that a person repeatedly misuses a drug or drugs or  alco-
    10  holic  beverages, to the extent that it has or would ordinarily have the
    11  effect of producing in the user thereof a substantial state  of  stupor,
    12  unconsciousness,  intoxication, hallucination, disorientation, or incom-
    13  petence, or a substantial  impairment  of  judgment,  or  a  substantial
    14  manifestation  of  irrationality,  shall  be prima facie evidence that a
    15  child of or who  is  the  legal  responsibility  of  such  person  is  a
    16  neglected  child  except  that  such  drug, or alcoholic beverage misuse
    17  shall not be prima facie evidence of neglect when such person is  volun-
    18  tarily  and  regularly  participating  in  a  recognized  rehabilitative
    19  program. Provided however, the sole fact  that  an  individual  consumes
    20  cannabis, without a separate finding that the child's physical mental or
    21  emotional  condition  was  impaired or is in imminent danger of becoming
    22  impaired established by a fair preponderance of the evidence  shall  not
    23  be sufficient to establish prima facie evidence of neglect; and
    24    §  59.  Section 1 of chapter 174 of the laws of 1968, constituting the
    25  New York state urban development corporation act, is amended by adding a
    26  new section 16-ee to read as follows:
    27    § 16-ee. Loans to social and economic equity  applicants.  The  corpo-
    28  ration  is  authorized  and directed, on the recommendation of the state
    29  cannabis control board, to provide low interest or  zero-interest  loans
    30  to  qualified  social  and economic equity applicants as provided for in
    31  article four of the cannabis law.
    32    § 60. The division of state police shall, subject to available  appro-
    33  priations, increase the number of trained and certified drug recognition
    34  experts  within the state, and provide increased drug recognition aware-
    35  ness training under its drug  recognition  program.  The  department  of
    36  health  shall,  subject  to  available  appropriations, review available
    37  technologies approved for utilization in the recognition of drug impair-
    38  ment by operators of motor vehicles, with a focus on specific technology
    39  to recognize acute impairment as compared to habitual cannabis usage and
    40  submit a report on such technologies to the governor and the legislature
    41  by March 1, 2021.
    42    § 61. The commissioner of education shall, subject to available appro-
    43  priations, establish  a  grant  program  to  provide  awards  to  school
    44  districts and boards of cooperative educational services for the purpose
    45  of  establishing school-based programs for initiatives such as anti-vap-
    46  ing programs, drug prevention and awareness programs, the use of  liquid
    47  cannabis in vaping products, and the over-consumption of edible products
    48  that contain cannabis. Provided that such grants shall be awarded by the
    49  commissioner  of  education to applicants based on factors including but
    50  not limited to: (A) community and parental engagement;  (B)  the  appli-
    51  cant's  program  design  to meet the specific needs of students; and (C)
    52  proposal quality. Provided further, that such funds shall only  be  used
    53  to  supplement, and not supplant, current local expenditures of federal,
    54  state or local funds. Provided further, that no  district  or  board  of
    55  cooperative  educational services shall receive a grant in excess of the
    56  total actual grant expenditures incurred by the school district or board

        A. 1617--C                         116

     1  of cooperative educational services  in  the  current  school  year,  as
     2  approved by the commissioner of education.
     3    §  62.  The  commissioner  of  the  office  of  addiction services and
     4  supports, in consultation  with  the  commissioner  of  health  and  the
     5  commissioner  of  education, shall, subject to available appropriations,
     6  immediately to the extent possible execute the activities  described  in
     7  subdivision  3  of  section  99-ii of the state finance law, as added by
     8  section fifty-one of this act.
     9    § 63. Severability. If any provision or term of this act  is  for  any
    10  reason declared unconstitutional or invalid or ineffective by any compe-
    11  tent  jurisdiction,  such  decision shall not affect the validity of the
    12  effectiveness of the remaining portions of this act or any part thereof.
    13    § 64. This act shall take effect immediately; provided, however,  that
    14  sections  six  and  six-a of this act shall take effect six months after
    15  the full cannabis control board created by article two of  the  cannabis
    16  law  has  been appointed and provided that the governor shall notify the
    17  legislative bill drafting commission upon such full appointment in order
    18  that the commission may maintain an accurate and timely  effective  data
    19  base of the official text of the laws of the state of New York in furth-
    20  erance  of  effectuating the provisions of section 44 of the legislative
    21  law and section 70-b of the public officers law; provided, further  that
    22  the  expungement  of  marihuana  convictions under section 160.50 of the
    23  criminal procedure law, added by the amendment in section  seventeen  of
    24  this  act,  shall occur promptly and in any event no later than one year
    25  after the effective date  of  this  act;  and  provided,  further,  that
    26  sections  thirty-nine  and  forty of this act shall take effect April 1,
    27  2021, and shall apply on and after such date to the sale or transfer  of
    28  adult-use  cannabis  products to a retail dispensary; provided, further,
    29  that the amendments to article 179 of the  penal  law  made  by  section
    30  forty-seven  of this act shall not affect the repeal of such article and
    31  shall be deemed to be repealed therewith; provided,  further,  that  the
    32  amendments  to  section  89-h  of  the state finance law made by section
    33  fifty of this act shall not affect the repeal of such section and  shall
    34  be deemed repealed therewith.
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