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 - Dead) 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. LBD07592-35-0A. 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 theA. 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 communityA. 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 beA. 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 actingA. 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, anA. 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 assignedA. 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 hempA. 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 theA. 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 anyA. 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 ofA. 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, theA. 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; andA. 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 publicA. 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 registryA. 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 ofA. 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 consumptionA. 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 thisA. 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 underA. 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 theA. 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 toA. 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 personA. 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; andA. 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 informationA. 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 medicalA. 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 cannabisA. 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 theA. 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 ofA. 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 andA. 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-useA. 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 sellA. 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 beA. 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" means7(a) the separated resin, whether crude or purified, obtained from a8plant of the genus Cannabis; or9(b) a material, preparation, mixture, compound or other substance10which contains more than two and one-half percent by weight of delta-911tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering12system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-13terpene numbering system.145.] "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, mentalA. 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,27whether growing or not; the seeds thereof; the resin extracted from any28part of the plant; and every compound, manufacture, salt, derivative,29mixture, or preparation of the plant, its seeds or resin. The term30"marihuana" shall not include:31(a) the mature stalks of the plant, fiber produced from the stalks,32oil or cake made from the seeds of the plant, any other compound, manu-33facture, salt, derivative, mixture, or preparation of the mature stalks34(except the resin extracted therefrom), fiber, oil, or cake, or the35sterilized seed of the plant which is incapable of germination;36(b) hemp, as defined in subdivision one of section five hundred five37of the agriculture and markets law;38(c) cannabinoid hemp as defined in subdivision two of section thirty-39three hundred ninety-eight of this chapter; or40(d) hemp extract as defined in subdivision five of section thirty-41three hundred ninety-eight of this chapter.4222.] 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 asA. 1617--C 74 1 controlled under section [3306] thirty-three hundred six of this [arti-2cle] 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 this50chapter] 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 private56automobiles];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; [and508.] (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 [or49section 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 theA. 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 in3article two hundred twenty or section 221.30 or 221.55 of the penal law,4to 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 a10felony defined in article two hundred twenty or section 221.30 or 221.5511of 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 moreA. 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 [schedule52I(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 as4defined in paragraph (a) of subdivision four of section thirty-three5hundred 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 weighsA. 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 thanA. 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 amended28this 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 stateA. 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 andA. 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 suchA. 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 aA. 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 in15the first degree as defined in section 221.30 of the penal law, criminal16sale of marihuana in the first degree as defined in section 221.55 of17the 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-42nal 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 [or49where the conviction is for a violation of section 221.30 of the penal50law, 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 221.3053of 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 in2article two hundred twenty or section 221.30 or 221.55 of the penal3law.] 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-9ing evidence that such person has committed an act in violation of arti-10cle 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 convicted21under section 221.10 of the penal law, only a person convicted under22subdivision two of such section, or a person convicted under subdivision23one of such section who stands previously convicted of any crime as24defined 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 the47conviction is for a violation of section 221.30 of this chapter, mari-48juana] 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 this51chapter, 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 allA. 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 thisA. 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) [All17definitions of terms applicable to title five-A of article thirty-three18of 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-48na] 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 1na] 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-42huana] cannabis from another registered organization shall obtain from 43 such registered organization information on where the medical [marihua-44na] 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 aA. 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 state8department 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-3sioner of internal revenue of the United States, or] the appropriate 4 officers of any other state which regulates or taxes medical [marihuana] 5 cannabis, or the duly authorized representatives of such [commissioner6or of any such] officers, to inspect returns or reports made pursuant to 7 this article, or may furnish to such [commissioner or] other officers, 8 or duly authorized representatives, a copy of any such return or report 9 or an abstract of the information therein contained, or any portion 10 thereof, or may supply [such commissioner or] any such officers or such 11 representatives with information relating to the business of a regis- 12 tered organization making returns or reports hereunder. The commissioner 13 may refuse to supply information pursuant to this subdivision [to the14commissioner of internal revenue of the United States or] to the offi- 15 cers of any other state if the statutes [of the United States, or] of 16 the state represented by such officers, do not grant substantially simi- 17 lar privileges to the commissioner, but such refusal shall not be manda- 18 tory. Information shall not be supplied to [the commissioner of internal19revenue of the United States or] the appropriate officers of any other 20 state which regulates or taxes medical [marihuana] cannabis, or the duly 21 authorized representatives [of such commissioner or] of any of such 22 officers, unless such [commissioner,] officer or other representatives 23 shall agree not to divulge or make known in any manner the information 24 so supplied, but such officers may transmit such information to their 25 employees or legal representatives when necessary, who in turn shall be 26 subject to the same restrictions as those hereby imposed upon such 27 [commissioner,] officer or other representatives. 28 3. (a) Any officer or employee of the state who willfully violates the 29 provisions of subdivision one or two of this section shall be dismissed 30 from office and be incapable of holding any public office in this state 31 for a period of five years thereafter. 32 (b) Cross-reference: For criminal penalties, see article thirty-seven 33 of this chapter. 34 § 39. The tax law is amended by adding a new article 20-C to read as 35 follows: 36 ARTICLE 20-C 37 TAX ON ADULT-USE CANNABIS PRODUCTS 38 Section 492. Definitions. 39 493. Tax on cannabis. 40 494. Registration and renewal. 41 495. Returns and payment of tax. 42 496. Returns to be kept secret. 43 § 492. Definitions. For purposes of this article, the following defi- 44 nitions shall apply: 45 (a) "Cannabis" 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 hasA. 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 andA. 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 or51twenty-five plants or more, but less than four pounds or fifty plants,52or 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 possessionA. 1617--C 104 1of four pounds or more or fifty plants or distribution of more than one2pound 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 of6eight pounds or more or seventy-five plants or more, but less than7sixteen pounds or one hundred plants, or distribution of more than five8pounds 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 [or11possession of sixteen pounds or more or one hundred plants or more or12distribution 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 ofA. 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 sixty22of the public health law] section three of the cannabis law. 23 2. "Certification" means a certification, made under section [thirty-24three 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 [subdivision32nine 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 sixty43of 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 [subdivision47seven 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 registeredA. 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-9three 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 [title13five-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-25na] 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 whichA. 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-46ty-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] cannabisA. 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 and19substance 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 public26health 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 developmentA. 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 ofA. 1617--C 110 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 memberA. 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 overA. 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) ofA. 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 theA. 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 boardA. 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.