Bill Text: NY S00854 | 2021-2022 | General Assembly | Introduced


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 19-0)

Status: (Introduced) 2021-01-06 - REFERRED TO FINANCE [S00854 Detail]

Download: New_York-2021-S00854-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                           854

                               2021-2022 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by Sens. KRUEGER, BAILEY, BIAGGI, COMRIE, GIANARIS, HOYLMAN,
          JACKSON, KENNEDY, LIU, MAY, MYRIE,  PARKER,  RAMOS,  RIVERA,  SALAZAR,
          SANDERS, SAVINO, SEPULVEDA, SERRANO -- read twice and ordered printed,
          and when printed to be committed to the Committee on Finance

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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02565-02-1

        S. 854                              2

          certain provisions of the agriculture  and  markets  law  relating  to
          industrial hemp

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

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

     5                    CHAPTER 7-A OF THE CONSOLIDATED LAWS
     6                                CANNABIS LAW
     7                                  ARTICLE 1
     8                SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT;
     9                                 DEFINITIONS
    10  Section 1. Short title.
    11          2. Legislative findings and intent.
    12          3. Definitions.
    13    Section 1. Short title.  This chapter shall be known and may be  cited
    14  and referred to as the "cannabis law".
    15    §  2.  Legislative  findings  and  intent.  The legislature finds that
    16  existing marihuana laws have not been beneficial to the welfare  of  the
    17  general public. Existing laws have been ineffective in reducing or curb-
    18  ing  marihuana  use  and have instead resulted in devastating collateral
    19  consequences including mass incarceration and other complex generational
    20  trauma, that inhibit  an  otherwise  law-abiding  citizen's  ability  to
    21  access  housing,  employment  opportunities,  and  other vital services.
    22  Existing laws have also created an illicit  market  which  represents  a
    23  threat  to  public  health and reduces the ability of the legislature to
    24  deter the accessing of marihuana by minors. Existing marihuana laws have
    25  disproportionately impacted African-American and Latinx communities.
    26    The intent of this act is to regulate,  control,  and  tax  marihuana,
    27  heretofore  known  as  cannabis,  generate significant new revenue, make
    28  substantial investments in communities and people most impacted by mari-
    29  huana criminalization to address the  collateral  consequences  of  such
    30  criminalization,  prevent  access  to cannabis by those under the age of
    31  twenty-one years, reduce the illegal  drug  market  and  reduce  violent
    32  crime,  reduce  participation  of  otherwise law-abiding citizens in the
    33  illicit market, end the racially disparate impact of  existing  cannabis
    34  laws,  create  new industries and increase employment and strengthen New
    35  York's agriculture sector.
    36    Nothing in this act is intended to limit the authority of any district
    37  government agency or office or employers to enact and  enforce  policies
    38  pertaining  to  cannabis  in  the  workplace, to allow driving under the
    39  influence of cannabis, to allow individuals to engage  in  conduct  that
    40  endangers  others, to allow smoking cannabis in any location where smok-
    41  ing tobacco is prohibited, or to require any individual to engage in any
    42  conduct that violates federal law or to exempt anyone from any  require-
    43  ment  of  federal law or pose any obstacle to the federal enforcement of
    44  federal law.
    45    The legislature further finds and declares that  it  is  in  the  best
    46  interest  of the state to regulate medical cannabis, adult-use cannabis,
    47  cannabinoid hemp and hemp extracts under independent entities, known  as
    48  the cannabis control board and the office of cannabis management.

        S. 854                              3

     1    §  3.  Definitions.  Whenever  used  in this chapter, unless otherwise
     2  expressly stated or unless the context  or  subject  matter  requires  a
     3  different  meaning,  the  following  terms shall have the representative
     4  meanings hereinafter set forth or indicated:
     5    1.  "Applicant" means a resident of New York state who is a citizen of
     6  the United States or a person lawfully admitted for permanent  residency
     7  in  the  United  States  aged twenty-one years or older applying for any
     8  cannabis or hemp licenses or special use permits issued by the New  York
     9  state cannabis control board pursuant to this chapter; provided, however
    10  applicants for hemp licenses may be aged eighteen years or older.
    11    2.  "Cannabinoid"  means  the phytocannabinoids found in hemp and does
    12  not include synthetic cannabinoids as that term is defined  in  subdivi-
    13  sion (g) of schedule I of section thirty-three hundred six of the public
    14  health law.
    15    3.  "Cannabinoid  hemp"  means  any  hemp and any product processed or
    16  derived from hemp, that is used for human consumption provided that when
    17  such product is packaged or offered for retail sale to  a  consumer,  it
    18  shall  not  have  a concentration of more than three tenths of a percent
    19  delta-9 tetrahydrocannabinol.
    20    4. "Cannabinoid hemp processor license" means a license granted by the
    21  department to process, extract, pack or manufacture cannabinoid hemp  or
    22  hemp  extract into products, whether in intermediate or final form, used
    23  for human consumption.
    24    5. "Cannabis" means all parts of the  plant  of  the  genus  Cannabis,
    25  whether  growing or not; the seeds thereof; the resin extracted from any
    26  part of the plant; and every compound,  manufacture,  salt,  derivative,
    27  mixture,  or  preparation of the plant, its seeds or resin.  It does not
    28  include the mature stalks of the plant, fiber produced from the  stalks,
    29  oil  or cake made from the seeds of the plant, any other compound, manu-
    30  facture, salt, derivative, mixture, or preparation of the mature  stalks
    31  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    32  sterilized seed of the plant which is incapable of germination.  It does
    33  not include hemp, cannabinoid hemp or hemp extract as  defined  by  this
    34  section.
    35    6. "Cannabis consumer" means a person twenty-one years of age or older
    36  acting in accordance with any provision of this chapter.
    37    7.  "Cannabis control board" means the New York state cannabis control
    38  board created pursuant to article two of this chapter.
    39    8. "Cannabis flower" means the flower of a plant of the genus Cannabis
    40  that has been harvested, dried,  and  cured,  prior  to  any  processing
    41  whereby the plant material is transformed into a concentrate, including,
    42  but not limited to, concentrated cannabis, or an edible or topical prod-
    43  uct  containing cannabis or concentrated cannabis and other ingredients.
    44  Cannabis flower excludes leaves and stem.
    45    9. "Cannabis product" or "adult-use cannabis product" means  cannabis,
    46  concentrated cannabis, and cannabis-infused products for use by a canna-
    47  bis consumer.
    48    10. "Cannabis-infused products" means products that have been manufac-
    49  tured  and  contain  either  cannabis or concentrated cannabis and other
    50  ingredients that are intended for use or consumption.
    51    11. "Cannabis trim" means all parts of the plant of the genus Cannabis
    52  other than cannabis flower that have been harvested, dried,  and  cured,
    53  but prior to any further processing.
    54    12.  "Caring for" means treating a patient, in the course of which the
    55  practitioner has completed a full assessment of  the  patient's  medical
    56  history and current medical condition.

        S. 854                              4

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

        S. 854                              5

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

        S. 854                              6

     1  licensed producers, processors, distributors and retailers to the extent
     2  the licensee engages in such activities.
     3    36.  "Nursery"  means  a  licensee that produces only clones, immature
     4  plants, seeds, and other agricultural products used specifically for the
     5  planting, propagation, and cultivation of cannabis.
     6    37. "Office" or "office of cannabis management"  means  the  New  York
     7  state office of cannabis management.
     8    38. "On-site consumption" means the consumption of cannabis in an area
     9  licensed as provided for in this chapter.
    10    39.  "Owner"  means an individual with an aggregate ownership interest
    11  of twenty percent or more in a cannabis business  licensed  pursuant  to
    12  this chapter, unless such interest is solely a security, lien, or encum-
    13  brance,  or  an  individual that will be participating in the direction,
    14  control, or management of the licensed cannabis business.
    15    40. "Package" means any  container  or  receptacle  used  for  holding
    16  cannabis or cannabis products.
    17    41. "Permit" means a permit issued pursuant to this chapter.
    18    42.  "Permittee"  means  any  person  to whom a permit has been issued
    19  pursuant to this chapter.
    20    43. "Practitioner" means a practitioner who is licensed, registered or
    21  certified by New York state to prescribe  controlled  substances  within
    22  the  state.   Nothing in this chapter shall be interpreted so as to give
    23  any such person authority to act outside  their  scope  of  practice  as
    24  defined  by  title  eight of the education law. Additionally, nothing in
    25  this chapter shall be interpreted to allow any unlicensed, unregistered,
    26  or uncertified person to act in a manner that would require  a  license,
    27  registration,  or certification pursuant to title eight of the education
    28  law.
    29    44. "Processor" means a licensee that extracts  concentrated  cannabis
    30  and/or  compounds,  blends, extracts, infuses, or otherwise manufactures
    31  concentrated cannabis or cannabis products, but not the  cultivation  of
    32  the cannabis contained in the cannabis product.
    33    45.  "Registered  organization" means an organization registered under
    34  article three of this chapter.
    35    46. "Registry application" means an application properly completed and
    36  filed with the board by a certified patient under article three of  this
    37  chapter.
    38    47.  "Registry identification card" means a document that identifies a
    39  certified patient or designated caregiver, as provided under this  chap-
    40  ter.
    41    48. "Retail sale" means to solicit or receive an order for, to keep or
    42  expose  for  sale, and to keep with intent to sell, made by any licensed
    43  person, whether principal, proprietor, agent, or employee, of any canna-
    44  bis, cannabis product, cannabinoid hemp or hemp  extract  product  to  a
    45  cannabis consumer for any purpose other than resale.
    46    49. "Retailer" means any person who sells at retail any cannabis prod-
    47  uct,  the  sale  of  which a license is required under the provisions of
    48  this chapter.
    49    50. "Small business" means small business as defined  in  section  one
    50  hundred  thirty-one of the economic development law, and shall apply for
    51  purposes of this chapter where any inconsistencies exist.
    52    51. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    53  any other matter or substance which contains cannabis including the  use
    54  of an electronic smoking device that creates an aerosol or vapor.

        S. 854                              7

     1    52.  "Social  and economic equity applicant" means an individual or an
     2  entity who is eligible for priority licensing pursuant to  the  criteria
     3  established in article four of this chapter.
     4    53.  "Terminally ill" means an individual has a medical prognosis that
     5  the individual's life expectancy is approximately one year  or  less  if
     6  the illness runs its normal course.
     7    54.  "Warehouse" means and includes a place in which cannabis products
     8  are securely housed or stored.
     9    55. "Wholesale" means to solicit or receive an order for, to  keep  or
    10  expose  for  sale, and to keep with intent to sell, made by any licensed
    11  person, whether principal, proprietor, agent, or employee of any  adult-
    12  use,  medical-use  cannabis or cannabis product, or cannabinoid hemp and
    13  hemp extract product for purposes of resale.

    14                                  ARTICLE 2
    15                    NEW YORK STATE CANNABIS CONTROL BOARD

    16  Section 7.  Establishment of the cannabis control board or "board".
    17          8.  Establishment of an office of cannabis management.
    18          9.  Executive director.
    19          10. Powers and duties of the cannabis control board.
    20          11. Functions, powers and  duties  of  the  executive  director;
    21                office of cannabis control.
    22          12. Chief equity officer.
    23          13. Rulemaking authority.
    24          14. State cannabis advisory board.
    25          15. Disposition of moneys received for license fees.
    26          16. Violations  of  cannabis  laws or regulations; penalties and
    27                injunctions.
    28          17. Formal hearings; notice and procedure.
    29          18. Ethics, transparency and accountability.
    30    § 7. Establishment of the cannabis control board or "board".   1.  The
    31  cannabis  control  board is hereby created and shall consist of a chair-
    32  person nominated by the governor and with the advice and consent of  the
    33  senate,  with  one vote, and four other voting board members as provided
    34  for in subdivision two of this section. In addition,  the  commissioners
    35  of  the  departments  of environmental conservation, health, agriculture
    36  and markets, taxation  and  finance,  the  superintendent  of  financial
    37  services,  and  the  director  of  the  office of addiction services and
    38  supports or their designees shall serve  as  ex-officio  members  in  an
    39  advisory capacity.
    40    2.  Appointments.  The governor shall have three appointments with the
    41  advice and consent of the senate, the temporary president of the  senate
    42  and  the  speaker of the assembly shall each have one appointment to the
    43  board. Appointments shall be for a term of three years each and shall be
    44  geographically and  demographically  representative  of  the  state  and
    45  communities  historically  affected  by  the war on drugs. Board members
    46  shall be citizens and permanent residents of this state. The chairperson
    47  and the remaining members of such  board  shall  continue  to  serve  as
    48  chairperson and members of the board until the expiration of the respec-
    49  tive  terms  for  which they were appointed. Upon the expiration of such
    50  respective terms the successors of such chairperson and members shall be
    51  appointed to serve for a term  of  three  years  each  and  until  their
    52  successors  have  been  appointed  and qualified. The members shall when
    53  performing the work of the board,  be  compensated  at  a  rate  of  two
    54  hundred sixty dollars per day, and together with an allowance for actual

        S. 854                              8

     1  and  necessary  expenses  incurred  in the discharge of their duties. No
     2  member or member's spouse or minor child shall have any interest  in  an
     3  entity regulated by the board.
     4    3.  Expenses.  Each  member  of  the  board shall be entitled to their
     5  expenses actually and necessarily incurred by them in the performance of
     6  their duties.
     7    4. Removal. Any member of the board may be removed by the governor for
     8  good cause after notice and an opportunity to be heard. A  statement  of
     9  the  good  cause for their removal shall be filed by the governor in the
    10  office of the secretary of state.
    11    5. Vacancies; quorum. (A) In the event of  a  vacancy  caused  by  the
    12  death, resignation, removal or inability to perform his or her duties of
    13  any  board  member,  the  vacancy  shall  be filled in the manner as the
    14  original appointment for the remainder of the unexpired term.
    15    (B)(i) In the event of a vacancy caused  by  the  death,  resignation,
    16  removal,  or  inability to act of the chair, the vacancy shall be filled
    17  in the same manner as the original appointment for the remainder of  the
    18  unexpired  term.  Notwithstanding  any  other  provision  of  law to the
    19  contrary, the governor  shall  designate  one  of  the  remaining  board
    20  members  to  serve  as acting chairperson for a period not to exceed six
    21  months or until a  successor  chairperson  has  been  confirmed  by  the
    22  senate.   Upon the expiration of the six month term, if the governor has
    23  nominated a successor chairperson, but the senate has not acted upon the
    24  nomination, the acting chairperson  can  continue  to  serve  as  acting
    25  chairperson  for  an  additional  ninety  days  or  until the governor's
    26  successor chairperson nomination is confirmed by the  senate,  whichever
    27  comes first;
    28    (ii) The governor shall provide immediate written notice to the tempo-
    29  rary  president  of  the  senate  and the speaker of the assembly of the
    30  designation of a board member as acting chairperson;
    31    (iii) If (a) the governor has not nominated  a  successor  chairperson
    32  upon  the  expiration  of  the six month term or (b) the senate does not
    33  confirm the governor's successor nomination within the additional ninety
    34  days, the board member designated as acting chairperson shall no  longer
    35  be  able  to  serve as acting chairperson and the governor is prohibited
    36  from extending the powers of that acting chairperson or from designating
    37  another board member to serve as acting chairperson; and
    38    (iv) A board member serving as the acting chairperson of the  cannabis
    39  control  board  shall  be deemed a state officer for purposes of section
    40  seventy-three of the public officers law.
    41    (C) A majority of the voting board members of the board shall  consti-
    42  tute  a  quorum for the purpose of conducting the business thereof and a
    43  majority vote of all the  members  in  office  shall  be  necessary  for
    44  action.  Provided,  however, that a board member designated as an acting
    45  chairperson pursuant to this  chapter  shall  have  only  one  vote  for
    46  purposes of conducting the business of the cannabis control board.
    47    6.  Officers;  employees;  offices.  (A) The board shall have power to
    48  appoint any necessary deputies, counsels, assistants, investigators, and
    49  other employees within the limits provided by appropriation.    Investi-
    50  gators  so  employed  by  the board shall be deemed to be peace officers
    51  only for the purpose of enforcing the provisions of the cannabis law  or
    52  judgments  or orders obtained for violation thereof, with all the powers
    53  set forth in section 2.20 of the criminal procedure  law.  The  counsel,
    54  secretary,  chief executive officer, assistant chief executive officers,
    55  chief equity officer, confidential  secretaries  to  board  members  and
    56  deputies  shall  be  in the exempt class of the civil service. The other

        S. 854                              9

     1  assistants, investigators  and  employees  of  the  office  of  cannabis
     2  management  shall  all  be in the competitive class of the civil service
     3  and shall be considered for purposes of article fourteen  of  the  civil
     4  service  law  to  be public employees in the civil service of the state,
     5  and shall be assigned to the  appropriate  collective  bargaining  unit.
     6  Employees serving in positions in newly created titles shall be assigned
     7  to the same collective bargaining units as they would have been assigned
     8  to  were such titles created prior to the establishment of the office of
     9  cannabis management by this chapter.
    10    The cannabis control board and office  of  cannabis  management  shall
    11  have  its  principal  office  in the city of Albany, and maintain branch
    12  offices in the cities of New York and Buffalo and such other  places  as
    13  it may deem necessary.
    14    (B)  The  board  shall establish appropriate procedures to ensure that
    15  hearing officers are shielded from ex parte communications with  alleged
    16  violators  and their attorneys and from other employees of the office of
    17  cannabis management and shall take such other steps  as  it  shall  deem
    18  necessary  and  proper to shield its judicial processes from unwarranted
    19  and inappropriate communications and attempts to influence.
    20    7. Disqualification of members of  the  board  and  employees  of  the
    21  office  of  cannabis management.  No member of the board or any officer,
    22  deputy, assistant, inspector or employee or spouse or minor child there-
    23  of shall have any interest, direct or indirect, either proprietary or by
    24  means of any loan, mortgage or lien, or in any other manner,  in  or  on
    25  any premises where cannabis is manufactured or sold; nor shall they have
    26  any  interest,  direct  or indirect, in any business wholly or partially
    27  devoted to the cultivation, manufacture, distribution, sale, transporta-
    28  tion or storage of cannabis, or own any stock in any  corporation  which
    29  has  any  interest, proprietary or otherwise, direct or indirect, in any
    30  premises where cannabis or hemp extract is cultivated  or  manufactured,
    31  distributed,  or sold, or in any business wholly or partially devoted to
    32  the cultivation,  manufacture,  distribution,  sale,  transportation  or
    33  storage  of cannabis or hemp extract or receive any commission or profit
    34  whatsoever, direct or indirect, from any person applying for or  receiv-
    35  ing  any  license  or  permit  provided for in this chapter, or hold any
    36  other public office in the state or in any political subdivision  except
    37  upon  the  written  permission of the board, such member of the board or
    38  office of cannabis management or officer, deputy,  assistant,  inspector
    39  or  employee  thereof  may  hold  the  public office of notary public or
    40  member of a community board of education in the city school district  of
    41  the  city of New York. Anyone who violates any of the provisions of this
    42  section shall be removed.
    43    § 8. Establishment of an office of cannabis management. There is here-
    44  by established, within the division of alcoholic  beverage  control,  an
    45  independent  office  of  cannabis management, which shall have exclusive
    46  jurisdiction to exercise the powers and duties provided by this chapter.
    47  The office shall exercise its authority  by  and  through  an  executive
    48  director.
    49    §  9.  Executive  director.  The  office shall exercise its authority,
    50  other than powers and duties specifically granted to the board,  by  and
    51  through an executive director nominated by the governor and confirmed by
    52  the  senate.    The  executive  director shall serve for a term of three
    53  years and once confirmed, may only be removed for good cause with appro-
    54  priate notice. The executive director of the state  office  of  cannabis
    55  management shall receive an annual salary not to exceed an amount appro-
    56  priated therefor by the legislature and his or her expenses actually and

        S. 854                             10

     1  necessarily  incurred  in the performance of his or her official duties,
     2  unless otherwise provided by the legislature.
     3    §  10.  Powers  and duties of the cannabis control board. The cannabis
     4  control board or "board" shall have the following functions, powers  and
     5  duties as provided for in this chapter:
     6    1.  Sole  discretion  to  issue  or  refuse to issue any registration,
     7  license or permit provided for in this chapter.
     8    2. Sole discretion to limit, or not to limit, the number of  registra-
     9  tions,  licenses and permits of each class to be issued within the state
    10  or any political subdivision  thereof,  in  a  manner  that  prioritizes
    11  social  and  economic  equity  applicants with the goal of fifty percent
    12  awarded to such applicants, and considers small  business  opportunities
    13  and  concerns,  avoids  market dominance in sectors of the industry, and
    14  reflects the demographics of the state.
    15    3. Sole discretion to revoke, cancel or suspend for cause  any  regis-
    16  tration, license, or permit issued under this chapter and/or to impose a
    17  civil  penalty for cause, after notice and an opportunity for a hearing,
    18  against any holder of a registration, license, or permit issued pursuant
    19  to this chapter.
    20    4. To fix by rule and regulation  the  standards  of  cultivation  and
    21  processing of medical cannabis, adult use cannabis and cannabis product,
    22  and cannabinoid hemp and hemp extract, including but not limited to, the
    23  ability to regulate potency and the types of products which may be manu-
    24  factured  and/or  processed, in order to ensure the health and safety of
    25  the public and the use of proper ingredients and methods in the manufac-
    26  ture of all medical, adult-use, cannabinoid hemp and hemp extract to  be
    27  sold or consumed in the state.
    28    5.  To  limit or prohibit, at any time of public emergency and without
    29  previous notice or advertisement, the cultivation, processing,  distrib-
    30  ution  or  sale  of  any  or  all cannabis products, medical cannabis or
    31  cannabinoid hemp and hemp extract, for and during  the  period  of  such
    32  emergency.
    33    6.  To  hold  hearings,  subpoena  witnesses, compel their attendance,
    34  administer oaths, to examine any person under  oath  and  in  connection
    35  therewith  to require the production of any books or records relative to
    36  the inquiry. A subpoena issued under this section shall be regulated  by
    37  the civil practice law and rules.
    38    7. To appoint any necessary directors, deputies, counsels, assistants,
    39  investigators,  and other employees within the limits provided by appro-
    40  priation.  Directors, deputies and counsels shall be in the exempt class
    41  of the civil service. The other assistants, investigators and  employees
    42  of the office shall all be in the competitive class of the civil service
    43  and  shall  be  considered for purposes of article fourteen of the civil
    44  service law to be public employees of the state, and shall  be  assigned
    45  to  the  appropriate  bargaining  unit. Investigators so employed by the
    46  office shall be deemed to be peace officers only  for  the  purposes  of
    47  enforcing the provisions of this chapter or judgments or orders obtained
    48  for  violation thereof, with all the powers set forth in section 2.20 of
    49  the criminal procedure law. Employees transferred to the office shall be
    50  transferred without further examination or qualification to the same  or
    51  similar  titles and shall remain in the same collective bargaining units
    52  and shall retain their respective civil service classifications,  status
    53  and  rights pursuant to their collective bargaining units and collective
    54  bargaining agreements. Employees serving in positions in  newly  created
    55  titles  shall  be assigned to the appropriate collective bargaining unit
    56  as they would have been assigned to were such titles  created  prior  to

        S. 854                             11

     1  the  establishment  of  the  office of cannabis management.   Any action
     2  taken under this subdivision shall be subject to and in accordance  with
     3  the civil service law.
     4    8.  To inspect or provide authorization for the inspection at any time
     5  of any premises where medical cannabis, adult-use cannabis  or  cannabi-
     6  noid hemp and hemp extract is cultivated, processed, stored, distributed
     7  or sold.
     8    9.  To prescribe forms of applications for registrations, licenses and
     9  permits under this chapter and of all reports deemed  necessary  by  the
    10  board.
    11    10. To appoint such advisory groups and committees as deemed necessary
    12  to  provide assistance to the board to carry out the purposes and objec-
    13  tives of this chapter.
    14    11. To exercise the powers and perform the duties in relation  to  the
    15  administration of the board and the office of cannabis management as are
    16  necessary but not specifically vested by this chapter, including but not
    17  limited to budgetary and fiscal matters.
    18    12. To develop and establish minimum criteria for certifying employees
    19  to  work in the cannabis industry in positions requiring advanced train-
    20  ing and education.
    21    13. To enter into contracts, memoranda of  understanding,  and  agree-
    22  ments as deemed appropriate to effectuate the policy and purpose of this
    23  chapter.
    24    14. To advise the urban development corporation in making low interest
    25  or  zero-interest  loans  to qualified social and economic equity appli-
    26  cants as provided for in this chapter.
    27    15. If public health, safety, or welfare imperatively  requires  emer-
    28  gency  action,  and  incorporates  a finding to that effect in an order,
    29  summary suspension of a license may be ordered, effective  on  the  date
    30  specified  in  such  order  or  upon service of a certified copy of such
    31  order on the licensee, whichever shall be later, pending proceedings for
    32  revocation or other action. These proceedings shall be  promptly  insti-
    33  tuted  and  determined.  In addition, the board may be directed to order
    34  the administrative seizure of product, issue a stop order, or  take  any
    35  other  action necessary to effectuate and enforce the policy and purpose
    36  of this chapter.
    37    16. To draft and provide for public  comment  and  issue  regulations,
    38  declaratory rulings, guidance and industry advisories.
    39    17. To draft and provide an annual report on the effectiveness of this
    40  chapter no later than January first, two thousand twenty-three and annu-
    41  ally  thereafter.   The annual report shall be prepared, in consultation
    42  with the division of the budget, the urban development corporation,  the
    43  department of taxation and finance, the department of health, department
    44  of  agriculture  and markets, office of addiction services and supports,
    45  office of mental health, New York state police and the division of crim-
    46  inal justice services.  The report shall provide, but not be limited to,
    47  the following information:
    48    (a) the number of registrations, licenses, and permits applied for  by
    49  geographic  region  of the state; the number of registrations, licenses,
    50  and permits approved or denied by geographic region of the state;
    51    (b) the economic and fiscal  impacts  associated  with  this  chapter,
    52  including  revenue  from  licensing  or  other  fees, fines and taxation
    53  related to the  cultivation,  distribution  and  sale  of  cannabis  for
    54  medical  and  adult-use  and  cannabinoid  hemp and hemp extract in this
    55  state;

        S. 854                             12

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

        S. 854                             13

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

        S. 854                             14

     1    (d)  methods of producing, processing, and packaging cannabis, medical
     2  cannabis, cannabis-infused products, concentrated cannabis, and cannabi-
     3  noid hemp and hemp extract; conditions of sanitation, and  standards  of
     4  ingredients,  quality,  and  identity  of  cannabis products cultivated,
     5  processed,  packaged, or sold by any registered organizations and licen-
     6  sees;
     7    (e) security requirements for medical cannabis and adult-use  cannabis
     8  retail dispensaries and premises where cannabis products, medical canna-
     9  bis,  and  cannabinoid  hemp and hemp extract, are cultivated, produced,
    10  processed, or stored, and safety protocols for registered organizations,
    11  licensees and their employees; and
    12    (f) hearing procedures and additional causes for cancellation, suspen-
    13  sion, revocation, and/or civil penalties against any person  registered,
    14  licensed, or permitted by the authority.
    15    3.  The board, in consultation with the state cannabis advisory board,
    16  shall promulgate rules and regulations that are designed to:
    17    (a) prevent the distribution of adult-use cannabis or cannabis product
    18  to persons under twenty-one years of age, including the modification  of
    19  tobacco vaping products for use with cannabis;
    20    (b) prevent the revenue from the sale of cannabis from going to crimi-
    21  nal enterprises;
    22    (c) prevent the diversion of cannabis from this state to other states;
    23    (d) prevent cannabis, hemp, cannabinoid hemp and hemp extract activity
    24  that  is legal under state law from being used as a cover or pretext for
    25  the trafficking of other illegal drugs or other illegal activity;
    26    (e) prevent driving while  impaired  and  the  exacerbation  of  other
    27  adverse public health consequences associated with the use of cannabis;
    28    (f) prevent the growing of cannabis on public lands; and
    29    (g)  inform the public about the prohibition on the possession and use
    30  of cannabis on federal property.
    31    4. The board, in consultation with the department of  agriculture  and
    32  markets  and the department of environmental conservation, shall promul-
    33  gate necessary rules and regulations governing the  safe  production  of
    34  cannabis,  including environmental and energy standards and restrictions
    35  on the use of pesticides and best practices for water and energy conser-
    36  vation.
    37    5. Emergency rules and regulations: In adopting  any  emergency  rule,
    38  the board shall comply with the provisions of subdivision six of section
    39  two  hundred  two of the state administrative procedure act and subdivi-
    40  sion three of section one hundred one-a of the executive law;  provided,
    41  however, that notwithstanding the provisions of such laws:
    42    (a)  Such  emergency  rule may remain in effect for no longer than one
    43  hundred twenty days, unless within such time the board complies with the
    44  provisions of such laws and adopts the rule as a permanent rule;
    45    (b) If, prior to the expiration of a rule  adopted  pursuant  to  this
    46  paragraph,  the board finds that the readoption of such rule on an emer-
    47  gency basis or the adoption of a substantially similar rule on an  emer-
    48  gency  basis  is  necessary  for  the preservation of the public health,
    49  safety or general welfare the agency may only readopt  the  rule  on  an
    50  emergency  basis  or  adopt a substantially similar rule on an emergency
    51  basis if on or before the date of such action the board has also submit-
    52  ted a notice of proposed rule making  pursuant  to  subdivision  six  of
    53  section  two  hundred  two of the state administrative procedure act and
    54  subdivision three of section one hundred one-a of the executive law.  An
    55  emergency  rule  adopted pursuant to this paragraph may remain in effect
    56  for no longer than one hundred twenty days;

        S. 854                             15

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

        S. 854                             16

     1    §  15.  Disposition  of  moneys received for license fees.   The board
     2  shall establish a scale of application,  licensing,  and  renewal  fees,
     3  based upon the cost of enforcing this chapter and the size of the canna-
     4  bis business being licensed, as follows:
     5    1.  The  board shall charge each registered organization, licensee and
     6  permittee a registration, licensure or permit fee, and renewal  fee,  as
     7  applicable.    The  fees may vary depending upon the nature and scope of
     8  the different registration, licensure and permit activities.
     9    2. The total fees assessed pursuant to this chapter shall be set at an
    10  amount that will generate sufficient total revenue  to,  at  a  minimum,
    11  fully cover the total costs of administering this chapter.
    12    3.  All registration and licensure fees shall be set on a scaled basis
    13  by the board, dependent on the size and capacity of the business and for
    14  social and economic equity applicants  such  fees  may  be  assessed  to
    15  accomplish the goals of this chapter.
    16    4.  The  board  shall deposit all fees collected in the New York state
    17  cannabis revenue fund established pursuant to section ninety-nine-ii  of
    18  the state finance law.
    19    §  16.  Violations  of  cannabis  laws  or  regulations; penalties and
    20  injunctions. 1. Any person who violates, disobeys or disregards any term
    21  or provision of this chapter or of any lawful  notice,  order  or  regu-
    22  lation  pursuant  thereto  for  which a civil or criminal penalty is not
    23  otherwise expressly prescribed by law, shall be liable to the people  of
    24  the state for a civil penalty of not to exceed five thousand dollars for
    25  every such violation.
    26    2.  The penalty provided for in subdivision one of this section may be
    27  recovered by an action brought by the board in any  court  of  competent
    28  jurisdiction.
    29    3.  Such  civil  penalty  may  be released or compromised by the board
    30  before the matter has been referred to the attorney general,  and  where
    31  such  matter has been referred to the attorney general, any such penalty
    32  may be released or compromised and any action commenced to  recover  the
    33  same  may  be  settled and discontinued by the attorney general with the
    34  consent of the board.
    35    4. It shall be the duty of the attorney general upon  the  request  of
    36  the  board  to  bring an action for an injunction against any person who
    37  violates, disobeys or disregards any term or provision of  this  chapter
    38  or of any lawful notice, order or regulation pursuant thereto; provided,
    39  however,  that the executive director shall furnish the attorney general
    40  with such material, evidentiary matter or proof as may be  requested  by
    41  the attorney general for the prosecution of such an action.
    42    5. It is the purpose of this section to provide additional and cumula-
    43  tive  remedies,  and  nothing  herein  contained  shall abridge or alter
    44  rights of action or remedies now or hereafter existing,  nor  shall  any
    45  provision  of  this  section,  nor  any  action  done  by virtue of this
    46  section, be construed as estopping the state, persons or  municipalities
    47  in the exercising of their respective rights.
    48    §  17.  Formal  hearings;  notice  and procedure. 1. The board, or any
    49  person designated by them for this  purpose,  may  issue  subpoenas  and
    50  administer  oaths  in connection with any hearing or investigation under
    51  or pursuant to this chapter, and it shall be the duty of the  board  and
    52  any  persons  designated  by them for such purpose to issue subpoenas at
    53  the request of and upon behalf of the respondent.
    54    2. The board and those designated by them shall not be  bound  by  the
    55  laws of evidence in the conduct of hearing proceedings, but the determi-
    56  nation shall be founded upon preponderance of evidence to sustain it.

        S. 854                             17

     1    3. Notice and right of hearing as provided in the state administrative
     2  procedure  act,  shall be served at least fifteen days prior to the date
     3  of the hearing, provided that, whenever because of danger to the  public
     4  health, safety or welfare it appears prejudicial to the interests of the
     5  people  of  the  state  to  delay action for fifteen days, the board may
     6  serve the respondent with an  order  requiring  certain  action  or  the
     7  cessation of certain activities immediately or within a specified period
     8  of less than fifteen days.
     9    4.  Service  of  notice  of hearing or order shall be made by personal
    10  service or by registered or certified mail. Where  service,  whether  by
    11  personal  service  or  by  registered or certified mail, is made upon an
    12  incompetent, partnership, or corporation, it  shall  be  made  upon  the
    13  person  or  persons  designated  to  receive personal service by article
    14  three of the civil practice law and rules.
    15    5. At a hearing, that to the  greatest  extent  practicable  shall  be
    16  reasonably  near  the  respondent, the respondent may appear personally,
    17  shall have the right of counsel, and may cross-examine witnesses against
    18  him or her and produce evidence and witnesses in his or her behalf.
    19    6. Following a hearing, the board may make appropriate  determinations
    20  and issue a final order in accordance therewith.
    21    7.  The  board  may  adopt,  amend and repeal administrative rules and
    22  regulations governing the procedures to  be  followed  with  respect  to
    23  hearings,  such  rules  to  be consistent with the policy and purpose of
    24  this chapter and the effective and fair enforcement of its provisions.
    25    8. The provisions of this section shall be applicable to all  hearings
    26  held  pursuant  to  this  chapter, except where other provisions of this
    27  chapter applicable thereto are inconsistent therewith,  in  which  event
    28  such other provisions shall apply.
    29    § 18. Ethics, transparency and accountability.  No member of the board
    30  or  office  or any officer, deputy, assistant, inspector or employee, or
    31  spouse or minor child of such member, officer, assistant,  inspector  or
    32  employee  thereof  shall  have  any interest, direct or indirect, either
    33  proprietary or by means of any loan, mortgage or lien, or in  any  other
    34  manner, in or on any premises where adult-use cannabis, medical cannabis
    35  or  cannabinoid hemp and hemp extract is cultivated, processed, distrib-
    36  uted or sold; nor shall he or she have any interest, direct or indirect,
    37  in any business wholly or partially devoted to the cultivation, process-
    38  ing, distribution, sale, transportation or storage of  adult-use  canna-
    39  bis,  medical  cannabis or cannabinoid hemp and hemp extract, or own any
    40  stock in any corporation which has any interest, proprietary  or  other-
    41  wise,  direct  or  indirect,  in  any premises where adult use cannabis,
    42  medical cannabis or cannabinoid hemp and  hemp  extract  is  cultivated,
    43  processed,  distributed  or sold, or in any business wholly or partially
    44  devoted to the cultivation, processing, distribution, sale,  transporta-
    45  tion  or  storage of adult-use cannabis, medical cannabis or cannabinoid
    46  hemp and hemp extract, or receive any commission or  profit  whatsoever,
    47  direct  or  indirect,  from  any  person  applying  for or receiving any
    48  license or permit provided for  in  this  chapter,  or  hold  any  other
    49  elected  or  appointed  public  office  in the state or in any political
    50  subdivision. After notice and opportunity to be heard, anyone  found  to
    51  have  knowingly  violated  any  of the provisions of this section shall,
    52  after notice, be removed and shall divest themselves of such  direct  or
    53  indirect interests, in addition to any other penalty provided by law.

    54                                  ARTICLE 3
    55                              MEDICAL CANNABIS

        S. 854                             18

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

        S. 854                             19

     1    5. The practitioner shall give  the  certification  to  the  certified
     2  patient, and place a copy in the patient's health care record.
     3    6.  No practitioner shall issue a certification under this section for
     4  themselves.
     5    7. A registry identification  card  based  on  a  certification  shall
     6  expire  one year after the date the certification is signed by the prac-
     7  titioner, except as provided for in subdivision eight of this section.
     8    8. (a) If the practitioner states in the certification  that,  in  the
     9  practitioner's  professional  opinion,  the  patient  would benefit from
    10  medical cannabis only until a specified earlier date, then the  registry
    11  identification  card  shall expire on that date; (b) if the practitioner
    12  states in the certification  that  in  the  practitioner's  professional
    13  opinion  the  patient is terminally ill and that the certification shall
    14  not expire until the patient dies, then the registry identification card
    15  shall state that the patient is terminally ill and that the registration
    16  card shall not expire until the patient dies; (c)  if  the  practitioner
    17  re-issues the certification to terminate the certification on an earlier
    18  date,  then  the  registry identification card shall expire on that date
    19  and shall be promptly destroyed by the certified  patient;  (d)  if  the
    20  certification  so provides, the registry identification card shall state
    21  any recommendation or limitation by the practitioner as to the  form  or
    22  forms  of  medical cannabis or dosage for the certified patient; and (e)
    23  the board shall make regulations to implement this subdivision.
    24    9. (a) A certification may be a special certification if, in  addition
    25  to  the  other requirements for a certification, the practitioner certi-
    26  fies in the certification that the patient's  condition  is  progressive
    27  and degenerative or that delay in the patient's certified medical use of
    28  cannabis poses a risk to the patient's life or health.
    29    (b)  The office shall create the form to be used for a special certif-
    30  ication and shall make that form available to  be  downloaded  from  the
    31  office's website.
    32    10.  Prior to issuing a certification a practitioner must complete, at
    33  a minimum, a two-hour course as determined by the board  in  regulation.
    34  For  the purposes of this article a person's status as a practitioner is
    35  deemed to be a  "license"  for  the  purposes  of  section  thirty-three
    36  hundred ninety of the public health law and shall be subject to the same
    37  revocation process.
    38    §  31. Lawful medical use. The possession, acquisition, use, delivery,
    39  transfer, transportation, or administration of  medical  cannabis  by  a
    40  certified patient, designated caregiver or the employees of a designated
    41  caregiver  facility,  for  certified  medical use, shall be lawful under
    42  this article provided that:
    43    1. the cannabis that may be possessed by a certified patient shall not
    44  exceed a sixty-day supply of the dosage if determined by the practition-
    45  er, consistent with any guidance and regulations issued  by  the  board,
    46  provided  that  during  the last seven days of any sixty-day period, the
    47  certified patient may also possess  up  to  such  amount  for  the  next
    48  sixty-day period;
    49    2.  the  cannabis  that may be possessed by designated caregivers does
    50  not exceed the quantities referred to in subdivision one of this section
    51  for each certified patient for whom  the  caregiver  possesses  a  valid
    52  registry identification card, up to five certified patients;
    53    3.  the cannabis that may be possessed by designated caregiver facili-
    54  ties does not exceed the quantities referred to in  subdivision  one  of
    55  this  section  for each certified patient under the care or treatment of
    56  the facility;

        S. 854                             20

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

        S. 854                             21

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

        S. 854                             22

     1  this purpose, there shall be a  reasonable  accommodation  of  certified
     2  patients who are confined to their homes due to their medical conditions
     3  and may therefore have difficulty procuring photographs;
     4    (e) be a secure document as determined by the board;
     5    (f) plainly state any recommendation or limitation by the practitioner
     6  as  to the form or forms of medical cannabis or dosage for the certified
     7  patient; and
     8    (g) any other requirements determined by the board.
     9    11. A certified patient or designated caregiver who has been issued  a
    10  registry  identification  card  shall notify the office of any change in
    11  his or her name or address or, with respect to the patient, if he or she
    12  ceases to have the condition noted on the certification within ten  days
    13  of such change. The certified patient's or designated caregiver's regis-
    14  try  identification  card  shall be deemed invalid and shall be promptly
    15  destroyed.
    16    12. If a certified patient or designated caregiver loses  his  or  her
    17  registry  identification  card, he or she shall notify the office within
    18  ten days of losing the card. The office shall issue a new registry iden-
    19  tification card as soon as practicable, which may contain a new registry
    20  identification number, to the certified patient or designated caregiver,
    21  as the case may be.
    22    13. The office shall maintain a confidential list of  the  persons  to
    23  whom it has issued registry identification cards. Individual identifying
    24  information obtained by the office under this article shall be confiden-
    25  tial and exempt from disclosure under article six of the public officers
    26  law.
    27    14.  The  board shall verify to law enforcement personnel in an appro-
    28  priate case whether a registry identification card is valid.
    29    15. If a certified patient or designated caregiver willfully  violates
    30  any  provision  of  this  article as determined by the board, his or her
    31  certification and registry  identification  card  may  be  suspended  or
    32  revoked. This is in addition to any other penalty that may apply.
    33    16. The board shall make regulations for special certifications, which
    34  shall  include  expedited procedures and which may require the applicant
    35  to submit additional documentation establishing the clinical  basis  for
    36  the  special  certification.  If  the board has not established and made
    37  available a form for a registry application or renewal  application,  or
    38  established  and  made  available  a  form for a registry application or
    39  renewal application, then in the case  of  a  special  certification,  a
    40  registry application or renewal application that otherwise conforms with
    41  the requirements of this section shall not require the use of a form.
    42    §  33. Registration as a designated caregiver facility.  1. To obtain,
    43  amend or renew a registration as a designated  caregiver  facility,  the
    44  facility shall file a registry application with the office. The registry
    45  application or renewal application shall include:
    46    (a) the facility's full name and address;
    47    (b) operating certificate or license number where appropriate;
    48    (c)  printed  name,  title,  and  signature  of an authorized facility
    49  representative;
    50    (d) a statement that the facility agrees to secure and  ensure  proper
    51  handling of all medical cannabis products;
    52    (e)  an  acknowledgement  that a false statement in the application is
    53  punishable under section 210.45 of the penal law; and
    54    (f) any other information that may be required by the board.
    55    2. Prior to issuing or renewing a designated caregiver facility regis-
    56  tration, the office may verify the information submitted by  the  appli-

        S. 854                             23

     1  cant.  The applicant shall provide, at the office's request, such infor-
     2  mation and documentation, including any consents or authorizations  that
     3  may be necessary for the office to verify the information.
     4    3.  The  office shall approve, deny or determine incomplete or inaccu-
     5  rate an initial or renewal application within thirty days of receipt  of
     6  the  application.  If  the application is approved within the thirty-day
     7  period, the office shall issue a registration as soon as  is  reasonably
     8  practicable.
     9    4. An applicant shall have thirty days from the date of a notification
    10  of an incomplete or factually inaccurate application to submit the mate-
    11  rials  required  to  complete, revise or substantiate information in the
    12  application. If the applicant fails to  submit  the  required  materials
    13  within  such  thirty-day time period, the application shall be denied by
    14  the office.
    15    5. Registrations issued under this section shall remain valid for  two
    16  years from the date of issuance.
    17    § 34. Registered organizations.  1. A registered organization shall be
    18  a for-profit business entity or not-for-profit corporation organized for
    19  the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
    20  ing, transporting, distributing or  dispensing  cannabis  for  certified
    21  medical use.
    22    2.  The acquiring, possession, manufacture, sale, delivery, transport-
    23  ing, distributing or dispensing of  medical  cannabis  by  a  registered
    24  organization  under  this  article  in  accordance with its registration
    25  under this article or a renewal thereof shall be lawful under this chap-
    26  ter.
    27    3. Each registered organization shall  contract  with  an  independent
    28  laboratory  permitted by the board to test the medical cannabis produced
    29  by the registered organization. The board shall approve  the  laboratory
    30  used  by the registered organization and may require that the registered
    31  organization use a particular testing laboratory.  The board is  author-
    32  ized  to  issue  regulations requiring the laboratory to perform certain
    33  tests and services.
    34    4. (a) A registered organization may lawfully, in  good  faith,  sell,
    35  deliver,  distribute or dispense medical cannabis to a certified patient
    36  or designated caregiver upon presentation to the registered organization
    37  of a valid registry identification card for that  certified  patient  or
    38  designated  caregiver.   When presented with the registry identification
    39  card, the registered organization shall provide to the certified patient
    40  or designated caregiver a receipt, which shall state: the name, address,
    41  and registry identification number of the registered  organization;  the
    42  name and registry identification number of the certified patient and the
    43  designated caregiver, if any; the date the cannabis was sold; any recom-
    44  mendation  or  limitation by the practitioner as to the form or forms of
    45  medical cannabis or dosage for the certified patient; and the  form  and
    46  the quantity of medical cannabis sold. The registered organization shall
    47  retain  a  copy  of the registry identification card and the receipt for
    48  six years.
    49    (b) The proprietor of a registered organization shall file or cause to
    50  be filed any receipt and certification information with  the  office  by
    51  electronic  means  on  a  real-time  basis as the board shall require by
    52  regulation. When filing receipt and certification information  electron-
    53  ically  pursuant  to  this  paragraph,  the proprietor of the registered
    54  organization shall dispose of any electronically  recorded  prescription
    55  information in such manner as the board shall by regulation require.

        S. 854                             24

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

        S. 854                             25

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

        S. 854                             26

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

        S. 854                             27

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

        S. 854                             28

     1  the  application  or  any  newly discovered or occurring fact or circum-
     2  stance which is required to be included in the application.
     3    (d)  If  the  board  is not satisfied that the registered organization
     4  applicant is entitled to a renewal of the registration, the board  shall
     5  within  a  reasonably  practicable  time  as determined by the executive
     6  director, serve upon the registered  organization  or  its  attorney  of
     7  record  in  person or by registered or certified mail an order directing
     8  the registered organization  to  show  cause  why  its  application  for
     9  renewal  should  not  be  denied.  The order shall specify in detail the
    10  respects in which the applicant has not satisfied  the  board  that  the
    11  registration should be renewed.
    12    (e) Within a reasonably practicable time as determined by the board of
    13  such order, the applicant may submit additional material to the board or
    14  demand a hearing or both; if a hearing is demanded the board shall fix a
    15  date as soon as reasonably practicable.
    16    6.  (a)  The  board shall renew a registration unless he or she deter-
    17  mines and finds that:
    18    (i) the applicant is unlikely to  maintain  or  be  able  to  maintain
    19  effective control against diversion;
    20    (ii)  the applicant is unlikely to comply with all state laws applica-
    21  ble to the activities in which it may engage under the registration;
    22    (iii) it is not in the  public  interest  to  renew  the  registration
    23  because  the  number of registered organizations in an area is excessive
    24  to reasonably serve the area; or
    25    (iv) the applicant has either violated or terminated its  labor  peace
    26  agreement.
    27    (b)  For  purposes  of this section, proof that a registered organiza-
    28  tion, during the period of its  registration,  has  failed  to  maintain
    29  effective  control  against  diversion,  violates  any provision of this
    30  article, or has knowingly or negligently failed to comply with  applica-
    31  ble  state laws relating to the activities in which it engages under the
    32  registration, shall constitute grounds for  suspension,  termination  or
    33  limitation  of  the  registered organization's registration or as deter-
    34  mined by the board. The registered organization shall also  be  under  a
    35  continuing  duty  to report to the authority any material change or fact
    36  or circumstance to the information provided in the registered  organiza-
    37  tion's application.
    38    7. The board may suspend or terminate the registration of a registered
    39  organization,  on grounds and using procedures under this article relat-
    40  ing to a license, to the extent  consistent  with  this  article.    The
    41  authority  shall suspend or terminate the registration in the event that
    42  a registered organization violates or terminates  the  applicable  labor
    43  peace  agreement.  Conduct  in  compliance  with  this article which may
    44  violate conflicting federal law, shall not  be  grounds  to  suspend  or
    45  terminate a registration.
    46    8.  A  registered  organization that manufactures medical cannabis may
    47  have no more than four dispensing sites wholly  owned  and  operated  by
    48  such  registered  organization. Such registered organization may have an
    49  additional four dispensing sites; provided, however, that the first  two
    50  additional  dispensing sites shall be located in underserved or unserved
    51  geographic locations, as determined by the board. The board shall ensure
    52  that such registered organizations and dispensing  sites  are  geograph-
    53  ically  distributed  across  the state and that their ownership reflects
    54  the demographics of the  state.  The  board  shall  register  additional
    55  registered organizations to provide services to unserved and underserved

        S. 854                             29

     1  areas  of the state. Additional registered organization shall be reflec-
     2  tive of the demographics of the state.
     3    §  36.  Reports  of registered organizations.   1. The board shall, by
     4  regulation, require each registered organization to file reports by  the
     5  registered  organization  during  a  particular  period. The board shall
     6  determine the information to be reported and the forms, time, and manner
     7  of the reporting.
     8    2. The board shall, by regulation, require each  registered  organiza-
     9  tion  to  adopt  and maintain security, tracking, record keeping, record
    10  retention and surveillance systems, relating to all medical cannabis  at
    11  every  stage  of  acquiring,  possession,  manufacture,  sale, delivery,
    12  transporting, distributing, or dispensing by  the  registered  organiza-
    13  tion, subject to regulations of the board.
    14    §  37.  Evaluation;  research programs; report by board.  1. The board
    15  may provide for the analysis and evaluation of  the  operation  of  this
    16  article.  The  board may enter into agreements with one or more persons,
    17  not-for-profit corporations or other organizations, for the  performance
    18  of  an  evaluation of the implementation and effectiveness of this arti-
    19  cle.
    20    2. The board may develop, seek any necessary federal approval for, and
    21  carry out research programs relating to medical use of cannabis. Partic-
    22  ipation in any such research program shall be voluntary on the  part  of
    23  practitioners, patients, and designated caregivers.
    24    3.  The  board shall report every two years, beginning two years after
    25  the effective date of this article, to the governor and the  legislature
    26  on  the  medical use of cannabis under this article and make appropriate
    27  recommendations.
    28    § 38. Cannabis research license.   1.  The  board  shall  establish  a
    29  cannabis  research  license that permits a licensee to produce, process,
    30  purchase  and  possess  cannabis  for  the  following  limited  research
    31  purposes:
    32    (a) to test chemical potency and composition levels;
    33    (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
    34  products;
    35    (c) to conduct research on the efficacy and  safety  of  administering
    36  cannabis as part of medical treatment; and
    37    (d) to conduct genomic or agricultural research.
    38    2. As part of the application process for a cannabis research license,
    39  an applicant must submit to the board a description of the research that
    40  is  intended  to  be  conducted  as well as the amount of cannabis to be
    41  grown or purchased. The  board  shall  review  an  applicant's  research
    42  project  and  determine whether it meets the requirements of subdivision
    43  one of this section. In addition, the board shall assess the application
    44  based on the following criteria:
    45    (a) project quality, study design, value, and impact;
    46    (b) whether the applicant has the  appropriate  personnel,  expertise,
    47  facilities  and  infrastructure,  funding,  and  human, animal, or other
    48  approvals in place to successfully conduct the project; and
    49    (c) whether the amount of cannabis to be grown  or  purchased  by  the
    50  applicant  is  consistent  with  the  project's  scope and goals. If the
    51  office determines that the research project does not meet  the  require-
    52  ments  of  subdivision  one  of  this  section,  the application must be
    53  denied.
    54    3. A cannabis research licensee may only sell cannabis grown or within
    55  its operation to other cannabis research licensees. The board may revoke
    56  a cannabis research license for violations of this section.

        S. 854                             30

     1    4. A cannabis research licensee may contract with  an  institution  of
     2  higher  education,  including  but  not limited to a hospital within the
     3  state university of New York, to perform research  in  conjunction  with
     4  such  institution.    All  research  projects,  entered  into under this
     5  section  must  be  approved  by  the  board and meet the requirements of
     6  subdivision one of this section.
     7    5. In establishing a cannabis research license, the  board  may  adopt
     8  regulations on the following:
     9    (a) application requirements;
    10    (b)  cannabis research license renewal requirements, including whether
    11  additional research projects may be added or considered;
    12    (c) conditions for license revocation;
    13    (d) security measures to ensure cannabis is not diverted  to  purposes
    14  other than research;
    15    (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
    16  cannabis-infused products a licensee may have on its premises;
    17    (f) licensee reporting requirements;
    18    (g) conditions under which cannabis grown by licensed cannabis produc-
    19  ers and other product types from licensed  cannabis  processors  may  be
    20  donated to cannabis research licensees; and
    21    (h) any additional requirements deemed necessary by the board.
    22    6. A cannabis research license issued pursuant to this section must be
    23  issued  in  the  name of the applicant and specify the location at which
    24  the cannabis researcher intends to operate, which  must  be  within  the
    25  state of New York.
    26    7. The application fee for a cannabis research license shall be deter-
    27  mined by the board on an annual basis.
    28    8. Each cannabis research licensee shall issue an annual report to the
    29  board. The board shall review such report and make a determination as to
    30  whether  the  research project continues to meet the research qualifica-
    31  tions under this section.
    32    § 39. Registered organizations and adult-use cannabis. The board shall
    33  have the authority to grant some or all of the registered  organizations
    34  registered with the department of health and currently registered and in
    35  good  standing with the office, the ability to obtain adult-use cannabis
    36  licenses pursuant to article four of this chapter subject to  any  fees,
    37  rules or conditions prescribed by the board in regulation.
    38    § 40. Relation to other laws.  1. The provisions of this article shall
    39  apply,  except  that  where  a  provision of this article conflicts with
    40  another provision of this chapter, this article shall apply.
    41    2. Medical cannabis shall not be deemed to be a "drug" for purposes of
    42  article one hundred thirty-seven of the education law.
    43    § 41. Home cultivation of medical  cannabis.  1.  Notwithstanding  the
    44  provisions  of  section  thirty-three  hundred  eighty-two of the public
    45  health law certified patients and their designated caregiver(s)  twenty-
    46  one years of age or older may:
    47    (a)  plant,  cultivate,  harvest, dry, process or possess no more than
    48  six mature cannabis plants at any one time; or
    49    (b) plant, cultivate, harvest, dry, process or possess, within his  or
    50  her  private  residence,  or  on the grounds of his or her private resi-
    51  dence, no more than six mature cannabis plants at any one time.
    52    2. Any mature cannabis plant described  in  subdivision  one  of  this
    53  section,  and any cannabis produced by any such cannabis plant or plants
    54  in excess of three ounces, cultivated, harvested,  dried,  processed  or
    55  possessed  pursuant  to  subdivision  one  of this section shall, unless
    56  otherwise authorized by law or regulation, be stored  except  for  inci-

        S. 854                             31

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

        S. 854                             32

     1    5. A person currently under parole, probation or other state or  local
     2  supervision,  or  released on bail awaiting trial may not be punished or
     3  otherwise penalized for conduct allowed under this article.
     4    § 43. Regulations. The board shall promulgate regulations in consulta-
     5  tion with the cannabis advisory board to implement this article.
     6    §  44. Suspend; terminate. Based upon the recommendation of the board,
     7  executive director and/or the superintendent of state police that  there
     8  is  a  risk to the public health or safety, the governor may immediately
     9  suspend or terminate all licenses issued to registered organizations.
    10    § 45. Pricing. Registered organizations shall submit documentation  to
    11  the executive director of any change in pricing per dose for any medical
    12  cannabis  product  within fifteen days of such change. Prior approval by
    13  the executive director shall  not  be  required  for  any  such  change;
    14  provided  however  that  the board is authorized to modify the price per
    15  dose for any medical cannabis product if necessary  to  maintain  public
    16  access to appropriate medication.

    17                                  ARTICLE 4
    18                             ADULT-USE CANNABIS

    19  Section 61.   License application.
    20          62.   Information to be requested in applications for licenses.
    21          63.   Fees.
    22          64.   Selection criteria.
    23          65.   Limitations of licensure; duration.
    24          66.   License renewal.
    25          67.   Amendments; changes in ownership and organizational struc-
    26                  ture.
    27          68.   Adult-use cultivator license.
    28          68-a. Registered  organization  adult-use  cultivator  processor
    29                  distributor retail dispensary license.
    30          68-b. Registered organization adult-use cultivator license.
    31          69.   Adult-use processor license.
    32          70.   Small business adult-use cooperative license.
    33          71.   Adult-use distributor license.
    34          72.   Adult-use retail dispensary license.
    35          73.   Microbusiness license.
    36          74.   Delivery license.
    37          75.   Nursery license.
    38          76.   Notification to municipalities of adult-use retail dispen-
    39                  sary or on-site consumption license.
    40          77.   Adult-use on-site consumption license; provisions  govern-
    41                  ing on-site consumption licenses.
    42          78.   Record keeping and tracking.
    43          79.   Inspections and ongoing requirements.
    44          80.   Adult-use  cultivators,  processors or distributors not to
    45                  be interested in retail dispensaries.
    46          81.   Packaging and labeling of adult-use cannabis products.
    47          82.   Laboratory testing.
    48          83.   Provisions governing the  cultivation  and  processing  of
    49                  adult-use cannabis.
    50          84.   Provisions  governing the distribution of adult-use canna-
    51                  bis.
    52          85.   Provisions governing adult-use cannabis retail  dispensar-
    53                  ies.
    54          86.   Adult-use cannabis advertising.

        S. 854                             33

     1          87.   Social and economic equity, minority and women-owned busi-
     2                  nesses,   disadvantaged   farmers  and  service-disabled
     3                  veterans; incubator program.
     4          88.   Data collection and reporting.
     5          89.   Regulations.
     6    § 61. License  application. 1. Any person may apply to the board for a
     7  license to cultivate, process, distribute or  dispense  cannabis  within
     8  this  state  for sale. Such application shall be in writing and verified
     9  and shall contain such information as  the  board  shall  require.  Such
    10  application  shall  be  accompanied  by  a check or draft for the amount
    11  required by this article for such license. If the  board  shall  approve
    12  the  application,  it  shall  issue  a  license in such form as shall be
    13  determined by its rules. Such license shall contain a description of the
    14  licensed premises and in form and in substance shall be a license to the
    15  person therein specifically designated to cultivate,  process,  distrib-
    16  ute,  deliver  or dispense cannabis in the premises therein specifically
    17  licensed.
    18    2. Except as otherwise provided in this article,  a  separate  license
    19  shall  be  required  for each facility at which cultivation, processing,
    20  distribution or retail dispensing is conducted.
    21    3. An applicant shall not be denied a license under this article based
    22  solely on a conviction for a violation of article two hundred twenty  or
    23  section  240.36  of the penal law, prior to the date article two hundred
    24  twenty-one of the penal law took effect, a conviction for a violation of
    25  article two hundred twenty-one of the penal law, or a conviction  for  a
    26  violation  of  article two hundred twenty-two of the penal law after the
    27  effective date of this chapter.
    28    § 62. Information to be requested in applications for  licenses.    1.
    29  The  board  shall have the authority to prescribe the manner and form in
    30  which an application must be submitted to the board for licensure  under
    31  this article.
    32    2. The board is authorized to adopt regulations, including by emergen-
    33  cy  rule, establishing information which must be included on an applica-
    34  tion for licensure under this article. Such information may include, but
    35  is not limited to:  information about the applicant's identity,  includ-
    36  ing  racial  and ethnic diversity; ownership and investment information,
    37  including the corporate structure; evidence  of  good  moral  character,
    38  including  the  submission of fingerprints by the applicant to the divi-
    39  sion of criminal justice services; information about the premises to  be
    40  licensed;  financial statements; and any other information prescribed by
    41  regulation.
    42    3. All license applications shall be signed by the  applicant  (if  an
    43  individual),  by  a managing member (if a limited liability company), by
    44  an officer (if a corporation), or by all partners  (if  a  partnership).
    45  Each  person  signing such application shall verify or affirm it as true
    46  under the penalties of perjury.
    47    4. All license or permit applications shall be accompanied by a check,
    48  draft or other forms of payment as the board may require or authorize in
    49  the amount required by this article for such license or permit.
    50    5. If there are any changes, after the filing of  the  application  or
    51  the  granting of a license or permit, in any of the facts required to be
    52  set forth in such application, a supplemental statement giving notice of
    53  such change, cost and source of money involved in the change, duly veri-
    54  fied or affirmed, shall be filed with the board within  ten  days  after
    55  such change. Failure to do so shall, if willful and deliberate, be cause
    56  for denial or revocation of the license.

        S. 854                             34

     1    6. In giving any notice, or taking any action in reference to a regis-
     2  tered  organization  or  licensee  of a licensed premises, the board may
     3  rely upon the information furnished  in  such  application  and  in  any
     4  supplemental  statement connected therewith, and such information may be
     5  presumed  to  be correct, and shall be binding upon registered organiza-
     6  tions, licensee or licensed premises  as  if  correct.  All  information
     7  required  to be furnished in such application or supplemental statements
     8  shall be deemed material in any prosecution for perjury, any  proceeding
     9  to  revoke,  cancel  or  suspend  any  license, and in the board's final
    10  determination to approve or deny the license.
    11    § 63. Fees. 1. The board shall have the authority to charge applicants
    12  for licensure under this article a non-refundable application fee.  Such
    13  fee  may  be  based  on the type of licensure sought, cultivation and/or
    14  production volume, or any other factors deemed reasonable and  appropri-
    15  ate by the board to achieve the policy and purpose of this chapter.
    16    1-a.  The  board  shall also have the authority to assess a registered
    17  organization with a one-time special  licensing  fee  for  a  registered
    18  organization   adult-use   cultivator,  processor,  distributor,  retail
    19  dispensary license.   Such  fee  shall  be  assessed  at  an  amount  to
    20  adequately  fund  social  and  economic  equity and incubator assistance
    21  pursuant to this article and  paragraph  (c)  of  subdivision  three  of
    22  section  ninety-nine-ii  of  the state finance law.   Provided, however,
    23  that the board shall not  allow  registered  organizations  to  dispense
    24  adult-use  cannabis  from  more  than  three  of  their medical cannabis
    25  dispensing locations.  The timing and manner in which registered  organ-
    26  izations may be granted such authority shall be determined by  the board
    27  in regulation.
    28    2.  The  board shall have the authority to charge licensees a biennial
    29  license fee. Such fee shall be based on the amount  of  cannabis  to  be
    30  cultivated,  processed,  distributed and/or dispensed by the licensee or
    31  the gross annual receipts of the licensee for the previous license peri-
    32  od, and any other factors  deemed  reasonable  and  appropriate  by  the
    33  board.
    34    3. The board shall waive or reduce fees for social and economic equity
    35  applicants.
    36    §  64. Selection criteria.  1. The board shall develop regulations for
    37  determining whether or not an applicant should be granted the  privilege
    38  of  an initial adult-use cannabis license, based on, but not limited to,
    39  the following criteria:
    40    (a) the applicant is a social and economic equity applicant;
    41    (b) the applicant will be able to maintain effective  control  against
    42  the illegal diversion of cannabis;
    43    (c)  the  applicant  will  be able to comply with all applicable state
    44  laws and regulations;
    45    (d) the applicant and its officers are ready,  willing,  and  able  to
    46  properly carry on the activities for which a license is sought including
    47  with  assistance  from  the  social  and  economic  equity and incubator
    48  program, if applicable;
    49    (e) the applicant possesses or has the right to use  sufficient  land,
    50  buildings,  and equipment to properly carry on the activity described in
    51  the application or has a plan to do so if qualifying  as  a  social  and
    52  economic equity applicant;
    53    (f)  the applicant qualifies as a social and economic equity applicant
    54  or sets out a plan for  benefiting  communities  and  people  dispropor-
    55  tionally impacted by  enforcement of cannabis laws;

        S. 854                             35

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

        S. 854                             36

     1    2. No licensee shall sell, deliver, or give away or cause or permit or
     2  procure to be sold, delivered or given away  any  cannabis  or  cannabis
     3  product  to any person, actually or apparently, under the age of twenty-
     4  one years unless the person under twenty-one is also a certified patient
     5  and  the  licensee is appropriately licensed under article three of this
     6  chapter.
     7    3. The board, on the recommendation  of  the  office  shall  have  the
     8  authority  to  limit,  by  canopy,  plant count, square footage or other
     9  means, the amount of cannabis allowed to be grown,  processed,  distrib-
    10  uted or sold by a licensee.
    11    4.  All  licenses  under this article shall expire two years after the
    12  date of issue.
    13    § 66. License renewal.  1. Each license, issued pursuant to this arti-
    14  cle, may be renewed upon application therefore by the licensee  and  the
    15  payment  of  the  fee for such license as prescribed by this article. In
    16  the case of applications for renewals, the board may dispense  with  the
    17  requirements of such statements as it deems unnecessary in view of those
    18  contained  in  the application made for the original license, but in any
    19  event the submission of photographs of the licensed  premises  shall  be
    20  dispensed  with,  provided  the  applicant for such renewal shall file a
    21  statement with the board to the effect that there has been no alteration
    22  of such premises since the original license was issued.  The  board  may
    23  make  such rules as it deems necessary, not inconsistent with this chap-
    24  ter, regarding applications for renewals of licenses and permits and the
    25  time for making the same.
    26    2. Each applicant must  submit  to  the  board  documentation  of  the
    27  racial,  ethnic,  and  gender diversity of the applicant's employees and
    28  owners prior to a license being renewed. In addition,  the  board  shall
    29  consult  with  the  state  cannabis  advisory board and the chief equity
    30  officer to create a social responsibility framework agreement  and  make
    31  the  adherence  to  such  agreement a conditional requirement of license
    32  renewal.  The board shall promote applicants that foster racial, ethnic,
    33  and gender diversity in their workplace.
    34    3. The board shall provide an application for  renewal  of  a  license
    35  issued under this article not less than ninety days prior to the expira-
    36  tion of the current license.
    37    4.  The  board  may  only  issue a renewal license upon receipt of the
    38  prescribed renewal application and renewal fee from a  licensee  if,  in
    39  addition  to the criteria in this section, the licensee's license is not
    40  under suspension and has not been revoked.
    41    5. Each applicant must maintain a labor peace agreement with  a  bona-
    42  fide  labor  organization  that  is  actively engaged in representing or
    43  attempting to represent the applicant's employees and the maintenance of
    44  such a labor peace agreement shall be an ongoing material  condition  of
    45  licensure.
    46    6. Each applicant must provide evidence of the execution of their plan
    47  for  benefitting  communities  and  people disproportionally impacted by
    48  cannabis law enforcement required  for  initial  licensing  pursuant  to
    49  section sixty-four of this article.
    50    §  67.  Amendments; changes in ownership and organizational structure.
    51  1. Licenses issued pursuant to this article shall specify:
    52    (a) the name and address of the licensee;
    53    (b) the activities permitted by the license;
    54    (c) the land, buildings and  facilities  that  may  be  used  for  the
    55  licensed activities of the licensee;
    56    (d) a unique license number issued by the board to the licensee; and

        S. 854                             37

     1    (e) such other information as the board shall deem necessary to assure
     2  compliance with this chapter.
     3    2.  Upon  application  of  a  licensee  to the board, a license may be
     4  amended to allow the licensee to relocate within the state,  to  add  or
     5  delete  licensed  activities or facilities, or to amend the ownership or
     6  organizational structure of the entity that is the licensee.  The  board
     7  shall establish a fee for such amendments.
     8    3.  A  license shall become void by a change in ownership, substantial
     9  corporate change or location  without  prior  written  approval  of  the
    10  board.  The  board may promulgate regulations allowing for certain types
    11  of changes in ownership without the need for prior written approval.
    12    4. For purposes of this section, "substantial corporate change"  shall
    13  mean:
    14    (a) for a corporation, a change of eighty percent or more of the offi-
    15  cers  and/or directors, or a transfer of eighty percent or more of stock
    16  of such corporation, or an existing stockholder obtaining eighty percent
    17  or more of the stock of such corporation; or
    18    (b) for a limited liability company, a change  of  eighty  percent  or
    19  more  of  the  managing  members of the company, or a transfer of eighty
    20  percent or more of ownership interest in said company,  or  an  existing
    21  member obtaining a cumulative of eighty percent or more of the ownership
    22  interest in said company; or
    23    (c)  for  a  partnership,  a  change  of eighty percent or more of the
    24  managing partners of the company, or a transfer  of  eighty  percent  or
    25  more  of  ownership  interest  in  said  company,  or an existing member
    26  obtaining a cumulative of eighty percent or more of the ownership inter-
    27  est in said company.
    28    § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
    29  license  shall  authorize  the  acquisition,  possession,  distribution,
    30  cultivation and sale of cannabis  from  the  licensed  premises  of  the
    31  adult-use  cultivator  by  such  licensee to duly licensed processors in
    32  this state.  The  board  may  establish  regulations  allowing  licensed
    33  adult-use  cultivators  to  perform  certain types of minimal processing
    34  without the need for an adult-use processor license.
    35    2. For purposes of this section, cultivation shall include, but not be
    36  limited to, the agricultural production practices of planting,  growing,
    37  cloning, harvesting, drying, curing, grading and trimming of cannabis.
    38    3.  A  person holding an adult-use cultivator's license may apply for,
    39  and obtain, one processor's license.
    40    4. A person holding an adult-use cultivator's  license  may  not  also
    41  hold  a retail dispensary license pursuant to this article and no adult-
    42  use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
    43  including  by stock ownership, interlocking directors, mortgage or lien,
    44  personal or real property, or any other means, in any premises  licensed
    45  as  an  adult-use cannabis retail dispensary or in any business licensed
    46  as an adult-use cannabis retail dispensary or in any  registered  organ-
    47  ization registered pursuant to article three of this chapter.
    48    5.  A  person holding an adult-use cultivator's license may not hold a
    49  license to distribute cannabis under this article.
    50    6. No person may have a direct or indirect  financial  or  controlling
    51  interest  in  more than one adult-use cultivator license issued pursuant
    52  to this chapter.
    53    §  68-a.    Registered  organization  adult-use  cultivator  processor
    54  distributor  retail dispensary license. A registered organization culti-
    55  vator processor distributor retail dispensary  license  shall  have  the
    56  same  authorization  and  conditions  as adult-use cultivator, adult-use

        S. 854                             38

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

        S. 854                             39

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

        S. 854                             40

     1    4.  No  retail  license  shall be granted for any premises, unless the
     2  applicant shall be the owner thereof, or shall be  able  to  demonstrate
     3  possession of the premises within thirty days of initial approval of the
     4  license  through a lease, management agreement or other agreement giving
     5  the applicant control over the premises, in writing, for a term not less
     6  than the license period.
     7    5. With the exception of microbusiness licensees, no premises shall be
     8  licensed  to  sell  cannabis  products,  unless  said  premises shall be
     9  located in a store, the principal entrance to which shall  be  from  the
    10  street  level and located on a public thoroughfare in premises which may
    11  be occupied, operated or conducted for business, trade or industry.
    12    6. No cannabis retail license shall be granted for any premises within
    13  five hundred feet of a school grounds as such term  is  defined  in  the
    14  education law.
    15    §  73. Microbusiness license. 1. A microbusiness license shall author-
    16  ize the limited cultivation, processing, distribution and dispensing  of
    17  their own adult-use cannabis and cannabis products.
    18    2. A microbusiness licensee may not hold interest in any other license
    19  and  may  only  distribute  its  own  cannabis  and cannabis products to
    20  dispensaries.
    21    3. The size and scope of a microbusiness shall be determined by  regu-
    22  lation  by the board in consultation with the executive director and the
    23  state cannabis advisory board. Such licenses shall  promote  social  and
    24  economic equity applicants as provided for in this chapter.
    25    §  74. Delivery license. A delivery license shall authorize the deliv-
    26  ery of cannabis and cannabis products by licensees independent of anoth-
    27  er adult-use cannabis license, provided that each delivery licensee  may
    28  have  a total of no more than twenty-five individuals, or the equivalent
    29  thereof, providing full-time paid delivery services, per week under  one
    30  license.  For  the  purposes of this section the state cannabis advisory
    31  board shall provide recommendations to the  board  for  the  application
    32  process,  license  criteria,  and  scope of licensed activities for this
    33  class of license.  No person may have a direct or indirect financial  or
    34  controlling  interest  in  more than one delivery license. Such licenses
    35  shall promote social and economic equity applicants as provided  for  in
    36  this chapter.
    37    §  75.  Nursery  license.  1.  A  nursery  license shall authorize the
    38  production, sale and distribution of clones, immature plants, seeds, and
    39  other agricultural products used specifically for the  planting,  propa-
    40  gation,  and  cultivation of cannabis. For the purposes of this section,
    41  the office shall provide recommendations to the board for  the  applica-
    42  tion process, license criteria and scope of licensed activities for this
    43  class of license. Such licenses shall promote social and economic equity
    44  applicants as provided for in this chapter.
    45    2. A person or entity holding a cultivators license may apply for, and
    46  obtain, one nursery license to sell directly to other cultivators, coop-
    47  eratives, or microbusinesses.
    48    § 76. Notification to municipalities of adult-use retail dispensary or
    49  on-site  consumption license. 1. Not less than thirty days nor more than
    50  two hundred seventy days before filing an application for  licensure  as
    51  an  adult-use  retail  dispensary  or  registered organization adult-use
    52  cultivator  processor  distributor  retail  dispensary  or  an   on-site
    53  consumption  licensee,  an  applicant  shall  notify the municipality in
    54  which the premises is located of such applicant's intent to file such an
    55  application.

        S. 854                             41

     1    2. Such notification shall be made to the clerk of the  village,  town
     2  or  city,  as  the  case  may  be,  wherein the premises is located. For
     3  purposes of this section:
     4    (a) notification need only be given to the clerk of a village when the
     5  premises is located within the boundaries of the village; and
     6    (b)  in the city of New York, the community board established pursuant
     7  to section twenty-eight hundred of the New York city charter with juris-
     8  diction over the area in which the premises is located shall be  consid-
     9  ered the appropriate public body to which notification shall be given.
    10    3. Such notification shall be made in such form as shall be prescribed
    11  by the rules of the board.
    12    4.  When  a  city,  town, or village, and in New York city a community
    13  board, expresses an opinion for or against the granting of  such  regis-
    14  tration, license or permit application, any such opinion shall be deemed
    15  part of the record upon which the office makes its recommendation to the
    16  board  to  grant  or deny the application and the board shall respond in
    17  writing to such city, town, village or community board with an  explana-
    18  tion  of how such opinion was considered in the granting or denial of an
    19  application.
    20    5. Such notification shall be made  by:  (a)  certified  mail,  return
    21  receipt requested; (b) overnight delivery service with proof of mailing;
    22  or  (c)  personal  service  upon  the  offices of the clerk or community
    23  board.
    24    6. The board shall require such notification to be on  a  standardized
    25  form  that  can  be  obtained on the internet or from the board and such
    26  notification to include:
    27    (a) the trade name or "doing business as" name, if any, of the  estab-
    28  lishment;
    29    (b) the full name of the applicant;
    30    (c)  the  street  address  of  the  establishment, including the floor
    31  location or room number, if applicable;
    32    (d) the mailing address of the establishment, if  different  than  the
    33  street address;
    34    (e)  the  name, address and telephone number of the attorney or repre-
    35  sentative of the applicant, if any;
    36    (f) a statement indicating whether the application is for:
    37    (i) a new establishment;
    38    (ii) a transfer of an existing licensed business;
    39    (iii) a renewal of an existing license; or
    40    (iv) an alteration of an existing licensed premises;
    41    (g) if the establishment is a transfer or  previously  licensed  prem-
    42  ises,  the name of the old establishment and such establishment's regis-
    43  tration or license number;
    44    (h) in the case of a renewal or alteration application, the  registra-
    45  tion or license number of the applicant; and
    46    (i) the type of license.
    47    §  77.  Adult-use  on-site  consumption  license; provisions governing
    48  on-site consumption licenses.   1. No  applicant  shall  be  granted  an
    49  adult-use  on-site  consumption  license  for  any  premises, unless the
    50  applicant shall be the owner thereof, or shall be in possession of  said
    51  premises under a lease, in writing, for a term not less than the license
    52  period  except,  however,  that  such  license may thereafter be renewed
    53  without the requirement of a lease as provided  in  this  section.  This
    54  subdivision shall not apply to premises leased from government agencies;
    55  provided, however, that the appropriate administrator of such government
    56  agency  provides  some form of written documentation regarding the terms

        S. 854                             42

     1  of occupancy under which the applicant is leasing said premises from the
     2  government agency for presentation to the office  at  the  time  of  the
     3  license application. Such documentation shall include the terms of occu-
     4  pancy  between  the  applicant and the government agency, including, but
     5  not limited to, any short-term leasing agreements or  written  occupancy
     6  agreements.
     7    2.  No  person  may have a direct or indirect financial or controlling
     8  interest in more  than  three  adult-use  on-site  consumption  licenses
     9  issued pursuant to this chapter.
    10    3. No person holding an adult-use on-site consumption license may also
    11  hold  an adult-use retail dispensary, cultivation, processor, microbusi-
    12  ness, cooperative or distributor license pursuant to this article or  be
    13  registered  as  a  registered  organization pursuant to article three of
    14  this chapter.
    15    4. No applicant shall be  granted  an  adult-use  on-site  consumption
    16  license  for  any premises within five hundred feet of school grounds as
    17  such term is defined in the education law.
    18    5. The board may consider any or all of the following  in  determining
    19  whether public convenience and advantage and the public interest will be
    20  promoted  by the granting of an adult-use on-site consumption license at
    21  a particular location:
    22    (a) that it is a privilege, and not a right,  to  cultivate,  process,
    23  distribute, and sell cannabis;
    24    (b)  the number, classes, and character of other licenses in proximity
    25  to the location and in the particular municipality or subdivision there-
    26  of;
    27    (c) evidence  that  all  necessary  licenses  and  permits  have  been
    28  obtained from the state and all other governing bodies;
    29    (d)  whether there is a demonstrated need for spaces to consume canna-
    30  bis;
    31    (e) effect of the grant of the  license  on  pedestrian  or  vehicular
    32  traffic, and parking, in proximity to the location;
    33    (f) the existing noise level at the location and any increase in noise
    34  level that would be generated by the proposed premises; and
    35    (g) any other factors specified by law or regulation that are relevant
    36  to  determine  that  granting a license would promote public convenience
    37  and advantage and the public interest of the community.
    38    6. If the  board  shall  disapprove  an  application  for  an  on-site
    39  consumption  license, it shall state and file in its offices the reasons
    40  therefor and shall notify the  applicant  thereof.  Such  applicant  may
    41  thereupon  apply to the board for a review of such action in a manner to
    42  be prescribed by the rules of the board.
    43    7. No adult-use cannabis on-site consumption licensee shall keep  upon
    44  the  licensed  premises  any  adult-use  cannabis  products except those
    45  purchased from a licensed distributor, adult-use cooperative, or  micro-
    46  business  authorized  to sell adult-use cannabis, and only in containers
    47  approved by the board. Such containers shall have affixed  thereto  such
    48  labels  as  may  be  required  by  the  rules of the board. No adult-use
    49  on-site consumption licensee shall reuse, refill, tamper with,  adulter-
    50  ate,  dilute  or  fortify  the  contents  of  any  container of cannabis
    51  products as received from the manufacturer or distributor.
    52    8. No adult-use on-site consumption licensee shall  sell,  deliver  or
    53  give  away, or cause or permit or procure to be sold, delivered or given
    54  away any cannabis for consumption  on  the  premises  where  sold  in  a
    55  container  or  package  containing a quantity or number of servings more
    56  than authorized by the board.

        S. 854                             43

     1    9. No adult-use on-site consumption licensee shall suffer,  permit  or
     2  promote  activities  or  events on its premises wherein any person shall
     3  use such premises for activities including, but not limited  to,  gambl-
     4  ing,  exposing or simulating, contests, or fireworks that are prohibited
     5  by  subdivision  six, six-a, six-b six-c or seven of section one hundred
     6  six of the alcoholic beverage control law or any  other  similar  activ-
     7  ities the board deems to be prohibited.
     8    10.  No  premises  licensed  to  sell  adult-use  cannabis for on-site
     9  consumption under this chapter shall be permitted to have any opening or
    10  means of entrance or  passageway  for  persons  or  things  between  the
    11  licensed premises and any other room or place in the building containing
    12  the  licensed  premises,  or  any adjoining or abutting premises, unless
    13  ingress and egress is restricted by an employee, agent of the  licensee,
    14  or  other  method  approved  by  the  board of controlling access to the
    15  facility.
    16    11. Each adult-use on-site consumption licensee shall keep  and  main-
    17  tain  upon  the  licensed premises, adequate records of all transactions
    18  involving the business transacted by such licensee which shall show  the
    19  amount  of  cannabis  products,  in  an  applicable  metric measurement,
    20  purchased by such licensee together with the names, license numbers  and
    21  places of business of the persons from whom the same were purchased, the
    22  amount  involved  in  such  purchases,  as well as the sales of cannabis
    23  products made by such  licensee.  The  board  is  hereby  authorized  to
    24  promulgate  rules and regulations permitting an on-site licensee operat-
    25  ing two or more premises separately licensed to sell  cannabis  products
    26  for on-site consumption to inaugurate or retain in this state methods or
    27  practices  of  centralized  accounting,  bookkeeping,  control  records,
    28  reporting, billing, invoicing or payment respecting purchases, sales  or
    29  deliveries of cannabis products, or methods and practices of centralized
    30  receipt or storage of cannabis products within this state without segre-
    31  gation or earmarking for any such separately licensed premises, wherever
    32  such  methods  and practices assure the availability, at such licensee's
    33  central or main office in this state, of data reasonably needed for  the
    34  enforcement  of  this  chapter.  Such  records  shall  be  available for
    35  inspection by any authorized representative of the board.
    36    12. All licensed  adult-use  on-site  consumption  premises  shall  be
    37  subject  to  inspection  by any peace officer, acting pursuant to his or
    38  her special duties, or police officer and by the duly authorized  repre-
    39  sentatives  of  the  board,  during the hours when the said premises are
    40  open for the transaction of business.
    41    13. An adult-use on-site consumption licensee shall not provide canna-
    42  bis products to any person under the age of twenty-one.  No person under
    43  the age of twenty-one shall be permitted on the premises of  a  cannabis
    44  on-site consumption facility.
    45    14.  The  provisions  of  article  thirteen-E of the public health law
    46  restricting the smoking or vaping of cannabis shall not apply to  adult-
    47  use on-site consumption premises.
    48    §  78. Record keeping and tracking. 1. The board shall, by regulation,
    49  require each licensee pursuant to this article  to  adopt  and  maintain
    50  security,  tracking,  record  keeping, record retention and surveillance
    51  systems,  relating  to  all  cannabis  at  every  stage  of   acquiring,
    52  possession,   manufacture,  sale,  delivery,  transporting,  testing  or
    53  distributing by the licensee, subject to regulations of the board.
    54    2. Every licensee shall keep and maintain upon the licensed  premises.
    55  Adequate  books  and  records of all transactions involving the licensee

        S. 854                             44

     1  and sale of its products, which shall include, but is  not  limited  to,
     2  all information required by any rules promulgated by the board.
     3    3. Each sale shall be recorded separately on a numbered invoice, which
     4  shall  have  printed  thereon  the number, the name of the licensee, the
     5  address of the  licensed  premises,  and  the  current  license  number.
     6  Licensed  producers  shall  deliver  to  the licensed distributor a true
     7  duplicate invoice stating the name and address  of  the  purchaser,  the
     8  quantity  purchased,  description  and  the  price of the product, and a
     9  true, accurate and complete statement of the  terms  and  conditions  on
    10  which such sale is made.
    11    4. Such books, records and invoices shall be kept for a period of five
    12  years  and shall be available for inspection by any authorized represen-
    13  tative of the board.
    14    5. Each  adult-use  and  registered  organization  adult-use  cannabis
    15  retail dispensary, microbusiness, and on-site consumption licensee shall
    16  keep  and  maintain  upon the licensed premises, adequate records of all
    17  transactions involving the business transacted by  such  licensee  which
    18  shall show the amount of cannabis, in weight, purchased by such licensee
    19  together  with  the names, license numbers and places of business of the
    20  persons from whom the same were purchased, the amount involved  in  such
    21  purchases, as well as the sales of cannabis made by such licensee.
    22    §  79. Inspections and ongoing requirements. All licensed or permitted
    23  premises, regardless of the  type  of  premises,  shall  be  subject  to
    24  inspection  by the office, by the duly authorized representatives of the
    25  board, by any peace officer  acting  pursuant  to  his  or  her  special
    26  duties,  or by a police officer, during the hours when the said premises
    27  are open for the transaction of business. The board shall  make  reason-
    28  able  accommodations  so  that  ordinary business is not interrupted and
    29  safety and security procedures are not compromised by the inspection.  A
    30  person who holds a license or permit must make himself or herself, or an
    31  agent  thereof, available and present for any inspection required by the
    32  board.  Such inspection may include, but is  not  limited  to,  ensuring
    33  compliance  by the licensee or permittee with all other applicable state
    34  and local building codes, fire, health,  safety,  and  other  applicable
    35  regulations.
    36    §  80.  Adult-use  cultivators,  processors  or distributors not to be
    37  interested in retail dispensaries.  1. It shall be unlawful for a culti-
    38  vator, processor, cooperative or distributor licensed under this article
    39  to:
    40    (a) be interested directly or indirectly in  any  premises  where  any
    41  cannabis product is sold at retail; or in any business devoted wholly or
    42  partially  to the sale of any cannabis product at retail by stock owner-
    43  ship, interlocking directors, mortgage or lien or any personal  or  real
    44  property, or by any other means;
    45    (b)  make,  or cause to be made, any loan to any person engaged in the
    46  manufacture or sale of any cannabis product at wholesale or retail;
    47    (c) make any gift or  render  any  service  of  any  kind  whatsoever,
    48  directly  or indirectly, to any person licensed under this chapter which
    49  in the judgment of the board may influence such licensee to purchase the
    50  product of such cultivator or processor or distributor; or
    51    (d) enter into any contract with  any  retail  licensee  whereby  such
    52  licensee  agrees  to confine his or her sales to cannabis products manu-
    53  factured or sold by  one  or  more  such  cultivator  or  processors  or
    54  distributors.  Any  such contract shall be void and subject the licenses
    55  of all parties concerned to revocation for cause.

        S. 854                             45

     1    2. The provisions of this section  shall  not  prohibit  a  registered
     2  organization  authorized  pursuant to section thirty-nine, sixty-eight-a
     3  or sixty-eight-b of this chapter, from cultivating, processing, or sell-
     4  ing adult-use cannabis under this article, at  facilities  wholly  owned
     5  and operated by such registered organization, subject to any conditions,
     6  limitations or restrictions established by this chapter.
     7    3.  The  board  shall develop rules and regulations, in regard to this
     8  section and, in consultation with the state cannabis advisory board.
     9    § 81. Packaging and labeling of adult-use cannabis  products.  1.  The
    10  board is hereby authorized to promulgate rules and regulations governing
    11  the advertising, branding, marketing, packaging and labeling of cannabis
    12  products,  sold or possessed for sale in New York state, including rules
    13  pertaining to the accuracy of information and rules restricting  market-
    14  ing and advertising to youth.
    15    2.  Such  regulations  shall include, but not be limited to, requiring
    16  that:
    17    (a) packaging  meets  requirements  similar  to  the  federal  "poison
    18  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    19    (b)  all cannabis-infused products shall have a separate packaging for
    20  each serving;
    21    (c) prior to delivery or sale at a  retailer,  cannabis  and  cannabis
    22  products  shall  be  labeled and placed in a resealable, child-resistant
    23  package; and
    24    (d) packages and labels shall not be made to be attractive to minors.
    25    3. Such regulations shall include requiring labels  warning  consumers
    26  of  any  potential impact on human health resulting from the consumption
    27  of cannabis products that shall be affixed to those products when  sold,
    28  if such labels are deemed warranted by the board.
    29    4.  Such  rules and regulations shall establish methods and procedures
    30  for determining serving sizes for cannabis-infused products  and  active
    31  cannabis  concentration  per  serving  size. Such regulations shall also
    32  require a nutritional fact panel that incorporates data regarding  serv-
    33  ing sizes and potency thereof.
    34    5.  The packaging, sale, marketing, branding, advertising, labeling or
    35  possession by any licensee  of  any  cannabis  product  not  labeled  or
    36  offered  in conformity with rules and regulations promulgated in accord-
    37  ance with this section shall be grounds for the imposition  of  a  fine,
    38  and/or  the  suspension,  revocation  or  cancellation  of  a license in
    39  accordance with the provisions of this chapter.
    40    § 82. Laboratory testing. 1. Every  processor  of  adult-use  cannabis
    41  shall  contract  with  an  independent  laboratory permitted pursuant to
    42  section one hundred twenty-nine of this chapter, to  test  the  cannabis
    43  products it produces pursuant to rules and regulations prescribed by the
    44  office.   The board may assign an approved testing laboratory, which the
    45  processor of adult-use cannabis must use.
    46    2. Adult-use cannabis processors shall make  laboratory  test  reports
    47  available  to  licensed  distributors  and  retail  dispensaries for all
    48  cannabis products manufactured by the processor.
    49    3. Licensed retail dispensaries shall maintain accurate  documentation
    50  of laboratory test reports for each cannabis product offered for sale to
    51  cannabis  consumers. Such documentation shall be made publicly available
    52  by the licensed retail dispensary.
    53    4. Onsite laboratory testing by  licensees  is  permissible;  however,
    54  such testing shall not be certified by the board and does not exempt the
    55  licensee from the requirements of quality assurance testing at a testing
    56  laboratory pursuant to this section.

        S. 854                             46

     1    5.  An  owner of a cannabis laboratory testing permit shall not hold a
     2  license in any other category within this article and shall not  own  or
     3  have ownership interest in a registered organization registered pursuant
     4  to article three of this chapter.
     5    6.  The  board  shall have the authority to require any licensee under
     6  this article to submit cannabis or cannabis  products  to  one  or  more
     7  independent laboratories for testing.
     8    § 83. Provisions governing the cultivation and processing of adult-use
     9  cannabis.  1.  No  cultivator  or  processor of adult-use cannabis shall
    10  sell, or agree to sell or deliver in the state any cannabis products, as
    11  the case may be, except in originally sealed containers containing quan-
    12  tities in accordance with size standards pursuant to  rules  adopted  by
    13  the board. Such containers shall have affixed thereto such labels as may
    14  be required by the rules of the board.
    15    2.  No  cultivator or processor of adult-use cannabis shall furnish or
    16  cause to be furnished to any licensee, any exterior  or  interior  sign,
    17  printed,  painted,  electric  or  otherwise, except as authorized by the
    18  board. The board may make such rules as it deems necessary to carry  out
    19  the purpose and intent of this subdivision.
    20    3.  Cultivators  of  adult-use cannabis shall comply with plant culti-
    21  vation  regulations,  standards,  and  guidelines  consistent  with  the
    22  provisions  applicable  to  hemp, cannabinoid hemp, and hemp extract and
    23  issued by the board, in consultation with  the  department  of  environ-
    24  mental conservation and the department of agriculture and markets.  Such
    25  regulations,  standards,  and  guidelines shall be guided by sustainable
    26  farming principles and practices  such  as  organic,  regenerative,  and
    27  integrated pest management models, and shall restrict whenever possible,
    28  the  use of pesticides to those that are registered by the department of
    29  environmental conservation or that specifically meet the  United  States
    30  environmental  protection  agency  registration  exemption  criteria for
    31  minimum risk, used in compliance with rules, regulations, standards  and
    32  guidelines  issued  by  the department of environmental conservation for
    33  pesticides.
    34    4. No cultivator or processor  of  adult-use  cannabis,  including  an
    35  adult-use  cannabis  cooperative  or microbusiness, may offer any incen-
    36  tive, payment or other benefit to a  licensed  cannabis  distributor  or
    37  retail  dispensary  in  return  for  carrying the cultivator, processor,
    38  cooperative or microbusiness products, or preferential shelf placement.
    39    5. All cannabis products shall be processed in  accordance  with  good
    40  manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
    41  Federal Regulations, as may be modified by the board in regulation.
    42    6. No processor of adult-use cannabis shall produce any product which,
    43  in  the  discretion  of the board, is designed to appeal to anyone under
    44  the age of twenty-one years.
    45    7. The use or integration of alcohol or nicotine in cannabis  products
    46  is strictly prohibited.
    47    § 84. Provisions governing the distribution of adult-use cannabis.  1.
    48  No  distributor  shall  sell,  or  agree to sell or deliver any cannabis
    49  products, as the case may be, in any container, except in a sealed pack-
    50  age. Such containers shall have affixed thereto such labels  as  may  be
    51  required by the rules of the board.
    52    2. No distributor shall deliver any cannabis products, except in vehi-
    53  cles  owned  and  operated by such distributor, or hired and operated by
    54  such distributor from a trucking or  transportation  company  registered
    55  with  the board, and shall only make deliveries at the licensed premises
    56  of the purchaser.

        S. 854                             47

     1    3. Each distributor shall keep and maintain upon  the  licensed  prem-
     2  ises, adequate books and records of all transactions involving the busi-
     3  ness  transacted  by  such  distributor,  which shall show the amount of
     4  cannabis products purchased by such distributor together with the names,
     5  license numbers and places of business of the persons from whom the same
     6  was  purchased and the amount involved in such purchases, as well as the
     7  amount of cannabis products sold by such distributor together  with  the
     8  names,  addresses,  and  license  numbers  of such purchasers. Each sale
     9  shall be recorded separately on a numbered  invoice,  which  shall  have
    10  printed thereon the number, the name of the licensee, the address of the
    11  licensed  premises,  and  the  current  license number. Such distributor
    12  shall deliver to the purchaser a true duplicate invoice stating the name
    13  and address  of  the  purchaser,  the  quantity  of  cannabis  products,
    14  description  by  brands  and  the price of such cannabis products, and a
    15  true, accurate and complete statement of the  terms  and  conditions  on
    16  which  such sale is made. Such books, records and invoices shall be kept
    17  for a period of five years and shall be available for inspection by  any
    18  authorized representative of the board.
    19    4. No distributor shall furnish or cause to be furnished to any licen-
    20  see, any exterior or interior sign, printed, painted, electric or other-
    21  wise, unless authorized by the board.
    22    5.  No  distributor  shall  provide  any  discount, rebate or customer
    23  loyalty program to any licensed retailer, except as otherwise allowed by
    24  the board.
    25    6. The board is authorized to promulgate  regulations  establishing  a
    26  maximum  margin  for  which a distributor may mark up a cannabis product
    27  for sale to a retail dispensary. Any adult-use cannabis product sold  by
    28  a  distributor  for  more than the maximum markup allowed in regulation,
    29  shall be unlawful.
    30    7. Each distributor shall keep and maintain upon  the  licensed  prem-
    31  ises, adequate books and records to demonstrate the distributor's actual
    32  cost of doing business, using accounting standards and methods regularly
    33  employed in the determination of costs for the purpose of federal income
    34  tax  reporting,  for  the  total  operation of the licensee. Such books,
    35  records and invoices shall be kept for a period of five years and  shall
    36  be  available  for  inspection  by  any authorized representative of the
    37  office for use in determining the maximum markup allowed  in  regulation
    38  pursuant to subdivision six of this section.
    39    § 85. Provisions governing adult-use cannabis retail dispensaries.  1.
    40  No  cannabis  retail licensee shall sell, deliver, or give away or cause
    41  or permit or procure to be sold, delivered or given away any cannabis to
    42  any person, actually or apparently, under the age  of  twenty-one  years
    43  or, visibly intoxicated or impaired.
    44    2.  Valid  proof of age is required for each transaction. No licensee,
    45  or agent or employee of such licensee shall accept as  written  evidence
    46  of  age  by any such person for the purchase of any cannabis or cannabis
    47  product, any documentation other than: (a) a valid driver's  license  or
    48  non-driver identification card issued by the commissioner of motor vehi-
    49  cles,  the federal government, any United States territory, commonwealth
    50  or possession, the District of Columbia, a state government  within  the
    51  United  States  or a provincial government of the dominion of Canada, or
    52  (b) a valid passport issued by the United States government or any other
    53  country, or (c) an identification card issued by the armed forces of the
    54  United States. Upon the presentation of such driver's  license  or  non-
    55  driver  identification card issued by a governmental entity, such licen-
    56  see or agent or employee thereof may perform a  transaction  scan  as  a

        S. 854                             48

     1  precondition to the sale of any cannabis or cannabis product. Nothing in
     2  this  section  shall  prohibit  a  licensee  or  agent  or employee from
     3  performing such a transaction scan on any of the other documents  listed
     4  in  this  subdivision  if  such documents include a bar code or magnetic
     5  strip that may be scanned by a device capable of deciphering  any  elec-
     6  tronically  readable  format.  In  instances where the information deci-
     7  phered by the transaction scan fails to match the information printed on
     8  the driver's license or non-driver identification card presented by  the
     9  card  holder,  or if the transaction scan indicates that the information
    10  is false or fraudulent, the attempted purchase of the cannabis or canna-
    11  bis product shall be denied.
    12    3. No cannabis retail licensee shall  sell  alcoholic  beverages,  nor
    13  have  or possess a license or permit to sell alcoholic beverages, on the
    14  same premises where cannabis products are sold.
    15    4. No sign of any kind printed, painted or electric,  advertising  any
    16  brand  shall  be permitted on the exterior or interior of such premises,
    17  except by permission of the board.
    18    5. No cannabis retail licensee shall  sell  or  deliver  any  cannabis
    19  products  to  any  person with knowledge of, or with reasonable cause to
    20  believe, that the person to whom such cannabis products are being  sold,
    21  has  acquired the same for the purpose of selling or giving them away in
    22  violation of the provisions of this chapter or in violation of the rules
    23  and regulations of the board.
    24    6. All premises licensed  under  this  section  shall  be  subject  to
    25  inspection by any peace officer described in subdivision four of section
    26  2.10 of the criminal procedure law acting pursuant to his or her special
    27  duties,  or  police officer or any duly authorized representative of the
    28  board, during the hours when the said premises are open for  the  trans-
    29  action of business.
    30    7.  No cannabis retail licensee shall be interested, directly or indi-
    31  rectly, in any cultivator, processor, distributor or microbusiness oper-
    32  ator licensed pursuant to this article, by stock ownership, interlocking
    33  directors, mortgage or lien on any personal or real property or  by  any
    34  other  means.  Any  lien, mortgage or other interest or estate, however,
    35  now held by such retailer on or in the personal or real property of such
    36  manufacturer or distributor, which mortgage, lien,  interest  or  estate
    37  was  acquired on or before December thirty-first, two thousand nineteen,
    38  shall not  be  included  within  the  provisions  of  this  subdivision;
    39  provided, however, the burden of establishing the time of the accrual of
    40  the  interest comprehended by this subdivision, shall be upon the person
    41  who claims to be entitled to the protection and exemption afforded here-
    42  by.
    43    8. No cannabis retail licensee shall make or cause to be made any loan
    44  to any person engaged in the cultivation, processing or distribution  of
    45  cannabis pursuant to this article.
    46    9.  Each  cannabis  retail  licensee shall designate the price of each
    47  item of cannabis by attaching to  or  otherwise  displaying  immediately
    48  adjacent  to  each  such  item displayed in the interior of the licensed
    49  premises where sales are made a price tag, sign or placard setting forth
    50  the price at which each such item is offered for sale therein.
    51    10. No person licensed to sell  cannabis  products  at  retail,  shall
    52  allow  or  permit  any  gambling,  or offer any gambling on the licensed
    53  premises, or allow or permit illicit drug activity on the licensed prem-
    54  ises.
    55    11. If an employee of an adult-use cannabis retail  licensee  suspects
    56  that a cannabis consumer may be abusing cannabis, such an employee shall

        S. 854                             49

     1  encourage  such  cannabis  consumer  to  seek  help from a substance use
     2  disorder program or harm reduction services.  The  board  shall  develop
     3  standard operating procedures and written materials to be distributed to
     4  cannabis  retail  licensees in consultation with the office of addiction
     5  services and supports, for adult-use cannabis retail licensee  employees
     6  to  utilize when interacting and/or consulting consumers for purposes of
     7  this subdivision.
     8    12. The board  is  authorized,  to  promulgate  regulations  governing
     9  licensed  adult-use dispensing facilities, including but not limited to,
    10  the hours of operation, size and  location  of  the  licensed  facility,
    11  potency  and  types  of  products offered and establishing a minimum and
    12  maximum margin for retail dispensary  markups  of  cannabis  product  or
    13  products  before  selling to a cannabis consumer. Any adult-use cannabis
    14  product sold by a retail dispensary for less  than  the  minimum  markup
    15  allowed in regulation, shall be unlawful.
    16    §  86.  Adult-use cannabis advertising.  1. The board shall promulgate
    17  rules  and  regulations  governing  the  advertising  and  marketing  of
    18  licensed cannabis and any cannabis products or services.
    19    2.  The  board shall promulgate explicit rules prohibiting advertising
    20  that:
    21    (a) is false, deceptive, or misleading;
    22    (b) promotes overconsumption;
    23    (c) depicts consumption by children or other minors;
    24    (d) is designed in any way to appeal to children or other minors;
    25    (e) is within five hundred feet of the perimeter of a school  grounds,
    26  playground, child day care providers, public park, or library;
    27    (f) is in public transit vehicles and stations;
    28    (g) is in the form of an unsolicited internet pop-up;
    29    (h) is on publicly owned or operated property; or
    30    (i)  makes medical claims or promotes adult-use cannabis for a medical
    31  or wellness purpose.
    32    3. The board shall promulgate explicit rules prohibiting all marketing
    33  strategies and implementation including, but not limited  to,  branding,
    34  packaging,  labeling, location of cannabis retailers, and advertisements
    35  that are designed to:
    36    (a) appeal to persons less then twenty-one years of age; or
    37    (b) disseminate false or misleading information to customers.
    38    4. The board shall promulgate explicit rules requiring that:
    39    (a) all advertisements and marketing accurately and  legibly  identify
    40  the licensee or other business responsible for its content; and
    41    (b)  any  broadcast,  cable,  radio,  print and digital communications
    42  advertisements only be placed where the audience is reasonably  expected
    43  to  be  twenty-one  years  of  age  or older, as determined by reliable,
    44  up-to-date audience composition data.
    45    § 87. Social and economic equity, minority and women-owned businesses,
    46  disadvantaged farmers and service-disabled veterans; incubator  program.
    47  1. The board, in consultation with the state cannabis advisory board and
    48  the  chief equity officer, and after receiving public input shall create
    49  and implement a social and economic equity  plan  and  actively  promote
    50  applicants  from  communities  disproportionately  impacted  by cannabis
    51  prohibition, and promote racial, ethnic, and gender diversity when issu-
    52  ing  licenses  for  adult-use  cannabis  related  activities,  including
    53  mentoring  potential applicants, by prioritizing consideration of appli-
    54  cations  by  applicants  who  are  from  communities  disproportionately
    55  impacted  by the enforcement of cannabis prohibition or who qualify as a
    56  minority or women-owned  business,  disadvantaged  farmers,  or  service

        S. 854                             50

     1  disabled  veterans.    Such  qualifications  shall  be determined by the
     2  board, in consultation with the state cannabis advisory  board  and  the
     3  chief equity officer, in regulation.
     4    2.  The  board's  social  and  economic equity plan shall also promote
     5  diversity in commerce, ownership and employment, and  opportunities  for
     6  social  and  economic  equity in the adult-use cannabis industry. A goal
     7  shall be established  to  award  fifty  percent  of  adult-use  cannabis
     8  licenses  to  social and economic equity applicants and ensure inclusion
     9  of:
    10    (a) individuals from communities disproportionately  impacted  by  the
    11  enforcement of cannabis prohibition;
    12    (b) minority-owned businesses;
    13    (c) women-owned businesses;
    14    (d)  minority  and women-owned businesses, as defined in paragraph (d)
    15  of subdivision five of this section;
    16    (e) disadvantaged farmers, as defined  in  subdivision  five  of  this
    17  section; and
    18    (f) service-disabled veterans.
    19    3. The social and economic equity plan shall require the consideration
    20  of additional criteria in its licensing determinations. Under the social
    21  and  economic equity plan, extra priority shall be given to applications
    22  that demonstrate that an applicant:
    23    (a) is a member of a  community  disproportionately  impacted  by  the
    24  enforcement of cannabis prohibition;
    25    (b)  has  an  income lower than eighty percent of the median income of
    26  the county in which the applicant resides; and
    27    (c) was convicted of a marihuana-related offense prior to  the  effec-
    28  tive  date of this chapter, or had a parent, guardian, child, spouse, or
    29  dependent, or was a dependent of an individual who, prior to the  effec-
    30  tive date of this chapter, was convicted of a marihuana-related offense.
    31    4.  The board in consultation with the cannabis advisory board and the
    32  chief equity officer, shall also create an incubator program to  encour-
    33  age  social  and  economic equity applicants to apply and, if granted an
    34  adult-use cannabis license, permit or registration,  the  program  shall
    35  provide  direct  support  in the form of counseling services, education,
    36  small business coaching and financial planning, and  compliance  assist-
    37  ance.
    38    5.  For  the purposes of this section, the following definitions shall
    39  apply:
    40    (a)  "Minority-owned  business"  shall  mean  a  business  enterprise,
    41  including  a sole proprietorship, partnership, limited liability company
    42  or corporation that is:
    43    (i) at least fifty-one percent owned by one  or  more  minority  group
    44  members;
    45    (ii)  an enterprise in which such minority ownership is real, substan-
    46  tial and continuing;
    47    (iii) an enterprise in which such minority ownership has and exercises
    48  the authority to control independently the day-to-day business decisions
    49  of the enterprise;
    50    (iv) an enterprise authorized to do business in this state  and  inde-
    51  pendently owned and operated; and
    52    (v) an enterprise that is a small business.
    53    (b)  "Minority  group  member"  shall  mean a United States citizen or
    54  permanent resident alien who is and can demonstrate membership in one of
    55  the following groups:

        S. 854                             51

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

        S. 854                             52

     1  issue  and the transferee is to a person or entity that does not qualify
     2  as a social and economic equity applicant, the transfer agreement  shall
     3  require  the  new  license  holder  to  pay to the board any outstanding
     4  amount  owed  by  the  transferor  to the board as repayment of any loan
     5  issued by the board as well as any other fee or assessment as determined
     6  by the board.
     7    § 88. Data collection and reporting.   The board shall  collect  demo-
     8  graphic  data on owners and employees in the adult-use cannabis industry
     9  and shall annually publish such data in its annual report.
    10    § 89. Regulations.  The board shall promulgate regulations in  consul-
    11  tation with the state cannabis advisory board to implement this article.

    12                                  ARTICLE 5
    13                      CANNABINOID HEMP AND HEMP EXTRACT

    14  Section 90.  Definitions.
    15          91.  Rulemaking authority.
    16          92.  Cannabinoid hemp processor license.
    17          93.  Cannabinoid hemp retailer license.
    18          94.  Cannabinoid license applications.
    19          95.  Information to be requested in applications for licenses.
    20          96.  Fees.
    21          97.  Selection criteria.
    22          98.  License renewal.
    23          99.  Form of license.
    24          100. Transferability;  amendment to license; change in ownership
    25                 or control.
    26          101. Granting, suspending or revoking licenses.
    27          102. Record keeping and tracking.
    28          103. Packaging  and  labeling  of  cannabinoid  hemp  and   hemp
    29                 extract.
    30          104. Processing of cannabinoid hemp and hemp extract.
    31          105. Laboratory testing.
    32          106. New York hemp product.
    33          107. Penalties.
    34          108. Hemp workgroup.
    35          109. Prohibitions.
    36          110. Special use permits.
    37          111. Severability.
    38    § 90. Definitions.  As used in this article, the following terms shall
    39  have the following meanings, unless the context clearly requires  other-
    40  wise:
    41    1.  "Cannabinoid"  means  the phytocannabinoids found in hemp and does
    42  not include synthetic cannabinoids as that term is defined  in  subdivi-
    43  sion (g) of schedule I of section thirty-three hundred six of the public
    44  health law.
    45    2.  "Cannabinoid  hemp"  means  any  hemp and any product processed or
    46  derived from hemp, that is used for human consumption provided that when
    47  such product is packaged or offered for retail sale to  a  consumer,  it
    48  shall  not  have  a concentration of more than three tenths of a percent
    49  delta-9 tetrahydrocannabinol.
    50    3. "Used for human consumption" means intended by the manufacturer  or
    51  distributor  to  be:  (a) used for human consumption for its cannabinoid
    52  content; or (b) used in, on or by the human  body  for  its  cannabinoid
    53  content.

        S. 854                             53

     1    4.  "Hemp"  means  the  plant  Cannabis sativa L. and any part of such
     2  plant, including the seeds thereof and all derivatives, extracts, canna-
     3  binoids, isomers, acids, salts, and salts of isomers, whether growing or
     4  not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more
     5  than  three-tenths  of  a  percent  on  a dry weight basis. It shall not
     6  include "medical cannabis" as defined in section three of this chapter.
     7    5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom-
     8  ers, acids, salts, and salts of  isomers  derived  from  hemp,  used  or
     9  intended  for  human  consumption,  for  its cannabinoid content, with a
    10  delta-9 tetrahydrocannabinol concentration of not more  than  an  amount
    11  determined  by the board in regulation. For the purpose of this article,
    12  hemp extract excludes (a) any food, food  ingredient  or  food  additive
    13  that is generally recognized as safe pursuant to federal law; or (b) any
    14  hemp  extract  that  is  not  used  for human consumption. Such excluded
    15  substances shall not be regulated pursuant to  the  provisions  of  this
    16  article  but  are  subject  to other provisions of applicable state law,
    17  rules and regulations.
    18    6. "License" means a license issued pursuant to this article.
    19    7. "Cannabinoid hemp processor license" means a license granted by the
    20  board to process, extract, pack or manufacture cannabinoid hemp or  hemp
    21  extract  into  products, whether in intermediate or final form, used for
    22  human consumption.
    23    8. "Processing"  means  extracting,  preparing,  treating,  modifying,
    24  compounding, manufacturing or otherwise manipulating cannabinoid hemp to
    25  concentrate or extract its cannabinoids, or creating product, whether in
    26  intermediate  or final form, used for human consumption. For purposes of
    27  this article, processing does not  include:  (a)  growing,  cultivation,
    28  cloning,  harvesting,  drying, curing, grinding or trimming when author-
    29  ized pursuant to article twenty-nine of the agriculture and markets law;
    30  or
    31    (b) mere transportation, such as by common carrier or  another  entity
    32  or individual.
    33    § 91. Rulemaking authority. The board may make regulations pursuant to
    34  this article for the processing, distribution, marketing, transportation
    35  and  sale  of cannabinoid hemp and hemp extracts used for human consump-
    36  tion, which may include, but not be limited to:
    37    1. Specifying forms,  establishing  application,  reasonable  adminis-
    38  tration and renewal fees, or license duration;
    39    2.  Establishing  the  qualifications  and  criteria for licensing, as
    40  authorized by law;
    41    3. The books and records to be created and maintained by licensees and
    42  lawful procedures for their inspection;
    43    4. Any reporting requirements;
    44    5. Methods  and  standards  of  processing,  labeling,  packaging  and
    45  marketing  of cannabinoid hemp, hemp extract and products derived there-
    46  from;
    47    6. Procedures for how cannabinoid hemp, hemp extract  or  ingredients,
    48  additives, or products derived therefrom can be deemed as acceptable for
    49  sale in the state;
    50    7. Provisions governing the modes and forms of administration, includ-
    51  ing inhalation;
    52    8.  Procedures  for determining whether cannabinoid hemp, hemp extract
    53  or  ingredients,  additives,  or  products  derived  therefrom  produced
    54  outside  the  state  or within the state meet the standards and require-
    55  ments of this article and can therefore be sold within the state;

        S. 854                             54

     1    9. Procedures for the granting, cancellation, revocation or suspension
     2  of licenses, consistent with the state administrative procedures act;
     3    10.  Restrictions  governing the advertising and marketing of cannabi-
     4  noid hemp, hemp extract and products derived therefrom; and
     5    11. Any other regulations necessary to implement this article.
     6    § 92. Cannabinoid hemp processor license. 1. Persons processing canna-
     7  binoid hemp or hemp extract  used  for  human  consumption,  whether  in
     8  intermediate  or  final  form, shall be required to obtain a cannabinoid
     9  hemp processor license from the board.
    10    2. A cannabinoid hemp processor license authorizes one or more specif-
    11  ic activities  related  to  the  processing  of  cannabinoid  hemp  into
    12  products  used  for  human consumption, whether in intermediate or final
    13  form, and the distribution or sale thereof by  the  licensee.    Nothing
    14  herein  shall  prevent  a  cannabinoid  hemp  processor from processing,
    15  extracting and processing  hemp  products  not  to  be  used  for  human
    16  consumption.
    17    3.  Persons authorized to grow hemp pursuant to article twenty-nine of
    18  the agriculture and markets law are not authorized to engage in process-
    19  ing of cannabinoid hemp or hemp extract without first being licensed  as
    20  a cannabinoid hemp processor under this article.
    21    4.  This  article  shall  not  apply  to  hemp, cannabinoid hemp, hemp
    22  extracts or products derived therefrom  that  are  not  used  for  human
    23  consumption.  This  article  also  shall  not apply to hemp, cannabinoid
    24  hemp, hemp extracts or products derived therefrom that have been  deemed
    25  generally recognized as safe pursuant to federal law.
    26    5.  The board shall have the authority to set reasonable fees for such
    27  license, to limit the activities permitted by such license, to establish
    28  the period during which such license is authorized, which shall  be  two
    29  years  or more, and to make rules and regulations necessary to implement
    30  this section.
    31    6. Any person holding an active research  partnership  agreement  with
    32  the  department  of  agriculture and markets, authorizing that person to
    33  process cannabinoid hemp, shall be awarded licensure under this section,
    34  provided that the  research  partner  is  actively  performing  research
    35  pursuant  to  such  agreement and is able to demonstrate compliance with
    36  this article, as determined by the board, after notice and  an  opportu-
    37  nity to be heard.
    38    § 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi-
    39  noid  hemp,  in  final  form  to  consumers  within  the state, shall be
    40  required to obtain a cannabinoid hemp retailer license from the board.
    41    2. The board shall have the authority to set reasonable fees for  such
    42  license,  to  establish  the period during which such license is author-
    43  ized, which shall be one year or more, and to make rules and regulations
    44  necessary to implement this section.
    45    § 94. Cannabinoid license applications. 1. Persons shall apply  for  a
    46  license  under  this  article  by  submitting an application upon a form
    47  supplied by the board, providing all the relevant requested information,
    48  verified by the applicant or an authorized representative of the  appli-
    49  cant.
    50    2.  A  separate  license  shall be required for each facility at which
    51  processing or retail sales are  conducted;  however,  an  applicant  may
    52  submit one application for separate licensure at multiple locations.
    53    3.  Each  applicant  shall remit with its application the fee for each
    54  requested license, which shall be a reasonable fee.

        S. 854                             55

     1    § 95. Information to be requested in applications for licenses. 1. The
     2  board may specify the manner and form in which an application  shall  be
     3  submitted to the board for licensure under this article.
     4    2. The board may adopt regulations establishing what relevant informa-
     5  tion  shall be included on an application for licensure under this arti-
     6  cle. Such information may include, but is not  limited  to:  information
     7  about  the  applicant's  identity; ownership and investment information,
     8  including the corporate structure; evidence  of  good  moral  character;
     9  financial  statements;  information  about  the premises to be licensed;
    10  information about the activities to be licensed; and any other  relevant
    11  information specified in regulation.
    12    3.  All  license  applications  shall be signed by the applicant if an
    13  individual, by a managing partner if a limited liability company, by  an
    14  officer  if  a  corporation,  or  by all partners if a partnership. Each
    15  person signing such application shall verify it as true under the penal-
    16  ties of perjury.
    17    4. All license applications shall be accompanied by a check, draft  or
    18  other  forms  of  payment  as  the board may require or authorize in the
    19  reasonable amount required by this article for such license.
    20    5. If there be any change, after the filing of the application or  the
    21  granting,  modification  or renewal of a license, in any of the material
    22  facts required to be set  forth  in  such  application,  a  supplemental
    23  statement  giving  notice  of such change, duly verified, shall be filed
    24  with the board within ten days after such change. Failure to do  so,  if
    25  willful and deliberate, may be grounds for revocation of the license.
    26    § 96. Fees.  The  board may charge licensees a reasonable license fee.
    27  Such fee may be based on the activities permitted by  the  license,  the
    28  amount  of cannabinoid hemp or hemp extract to be processed or extracted
    29  by the licensee, the gross annual  receipts  of  the  licensee  for  the
    30  previous  license  period, or any other factors reasonably deemed appro-
    31  priate by the board.
    32    § 97. Selection criteria. 1. The applicant, if an individual or  indi-
    33  viduals,  shall  furnish evidence of the individual's good moral charac-
    34  ter, and if an entity, the applicant shall furnish evidence of the  good
    35  moral  character  of  the  individuals who have or will have substantial
    36  responsibility for the licensed or  authorized  activity  and  those  in
    37  control  of  the  entity, including principals, officers, or others with
    38  such control.
    39    2. The applicant shall furnish evidence of the applicant's  experience
    40  and competency, and that the applicant has or will have adequate facili-
    41  ties,  equipment,  process  controls,  and  security  to undertake those
    42  activities for which licensure is sought.
    43    3. The applicant shall furnish evidence of his, her or its ability  to
    44  comply with all applicable state and local laws, rules and regulations.
    45    4. If the board is not satisfied that the applicant should be issued a
    46  license, the board shall notify the applicant in writing of the specific
    47  reason or reasons for denial.
    48    5.  No license pursuant to this article may be issued to an individual
    49  under the age of eighteen years.
    50    § 98. License renewal. 1. Each license, issued pursuant to this  arti-
    51  cle,  may  be  renewed upon application therefor by the licensee and the
    52  payment of the reasonable fee for such  license  as  specified  by  this
    53  article.
    54    2.  In  the  case of applications for renewals, the board may dispense
    55  with the requirements of such statements as it deems unnecessary in view
    56  of those contained in the application made for the original license.

        S. 854                             56

     1    3. The board shall provide an application for renewal of  any  license
     2  issued under this article not less than ninety days prior to the expira-
     3  tion of the current license.
     4    4.  The  board  may  only  issue a renewal license upon receipt of the
     5  specified renewal application and renewal fee from  a  licensee  if,  in
     6  addition  to  the  selection  criteria  set  out  in  this  article, the
     7  licensee's license is not under suspension and has not been revoked.
     8    § 99. Form of license. Licenses issued pursuant to this article  shall
     9  specify:
    10    1. The name and address of the licensee;
    11    2. The activities permitted by the license;
    12    3.  The  land,  buildings  and  facilities  that  may  be used for the
    13  licensed activities of the licensee;
    14    4. A unique license number issued by the board to the licensee; and
    15    5. Such other information as the board shall deem necessary to  assure
    16  compliance with this article.
    17    § 100. Transferability;  amendment  to license; change in ownership or
    18  control. 1. Licenses issued under this  article  are  not  transferable,
    19  absent written consent of the board.
    20    2.  Upon application of a licensee, a license may be amended to add or
    21  delete permitted activities.
    22    3. A license shall become void by a change in  ownership,  substantial
    23  corporate change or change of location without prior written approval of
    24  the  board. The board may make regulations allowing for certain types of
    25  changes in ownership without the need for prior written approval.
    26    § 101. Granting, suspending or revoking licenses. After due notice and
    27  an opportunity to be heard, established by rules  and  regulations,  the
    28  board  may  decline  to grant a new license, impose conditions or limits
    29  with respect to the grant of a license, modify an  existing  license  or
    30  decline  to renew a license, and may suspend or revoke a license already
    31  granted after due notice and an opportunity to be heard, as  established
    32  by rules and regulations, whenever the board finds that:
    33    1. A material statement contained in an application is or was false or
    34  misleading;
    35    2.  The applicant or licensee, or a person in a position of management
    36  and control thereof or of the licensed  activity,  does  not  have  good
    37  moral  character,  necessary  experience or competency, adequate facili-
    38  ties, equipment, process controls, or security to  process,  distribute,
    39  transport  or  sell  cannabinoid  hemp, hemp extract or products derived
    40  therefrom;
    41    3. After appropriate notice and opportunity, the applicant or licensee
    42  has failed or refused to produce any records or provide any  information
    43  required  by this article or the regulations promulgated pursuant there-
    44  to;
    45    4. The licensee has conducted activities outside of  those  activities
    46  permitted on its license; or
    47    5.  The  applicant  or licensee, or any officer, director, partner, or
    48  any other person exercising any position of management or control there-
    49  of or of the licensed activity has willfully failed to comply  with  any
    50  of the provisions of this article or regulations under it and other laws
    51  of this state applicable to the licensed activity.
    52    § 102. Record keeping and tracking. Every licensee shall keep, in such
    53  form  as  the board may direct, such relevant records as may be required
    54  pursuant to regulations under this article.
    55    § 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1.
    56  Cannabinoid hemp processors shall be  required  to  provide  appropriate

        S. 854                             57

     1  label  warning to consumers, and restricted from making unapproved label
     2  claims, as determined by the board, concerning the potential  impact  on
     3  or  benefit  to human health resulting from the use of cannabinoid hemp,
     4  hemp extract and products derived therefrom for human consumption, which
     5  labels  shall  be affixed to those products when sold, pursuant to rules
     6  and regulations that the board may adopt.
     7    2. The board may, by rules  and  regulations,  require  processors  to
     8  establish  a code, including, but not limited to QR code, for labels and
     9  establish methods and procedures for determining,  among  other  things,
    10  serving sizes or dosages for cannabinoid hemp, hemp extract and products
    11  derived  therefrom,  active  cannabinoid concentration per serving size,
    12  number of servings per container, and the growing region, state or coun-
    13  try of origin if not from the United States. Such rules and  regulations
    14  may  require  an appropriate fact panel that incorporates data regarding
    15  serving sizes and potency thereof.
    16    3. The packaging, sale, or possession of products derived from  canna-
    17  binoid  hemp  or  hemp extract used for human consumption not labeled or
    18  offered in conformity with  regulations  under  this  section  shall  be
    19  grounds  for the seizure or quarantine of the product, the imposition of
    20  a civil penalty against a processor or  retailer,  and  the  suspension,
    21  revocation  or  cancellation of a license, in accordance with this arti-
    22  cle.
    23    § 104. Processing of cannabinoid hemp and hemp extract. 1. No process-
    24  or shall sell or agree to sell or deliver in the state  any  cannabinoid
    25  hemp, hemp extract or product derived therefrom, used for human consump-
    26  tion,  except  in  sealed containers containing quantities in accordance
    27  with size standards pursuant to  rules  adopted  by  the  board.    Such
    28  containers  shall have affixed thereto such labels as may be required by
    29  the rules of the board.
    30    2. Processors shall take such  steps  necessary  to  ensure  that  the
    31  cannabinoid  hemp or hemp extract used in their processing operation has
    32  only been grown with pesticides that are registered by the department of
    33  environmental conservation or that specifically meet the  United  States
    34  environmental  protection  agency  registration  exemption  criteria for
    35  minimum risk, used in compliance with rules, regulations, standards  and
    36  guidelines  issued  by  the department of environmental conservation for
    37  pesticides.
    38    3. All cannabinoid hemp, hemp extract and products  derived  therefrom
    39  used  for  human consumption shall be extracted and processed in accord-
    40  ance with good manufacturing processes pursuant to Part 117 or Part  111
    41  of title 21 of the code of federal regulations, as may be defined, modi-
    42  fied and decided upon by the board in rules or regulations.
    43    4.  As  necessary  to  protect  human health, the board shall have the
    44  authority to: (a) regulate and prohibit specific ingredients, excipients
    45  or methods  used  in  processing  cannabinoid  hemp,  hemp  extract  and
    46  products  derived  therefrom;  and  (b)  prohibit,  or  expressly allow,
    47  certain products or product classes derived  from  cannabinoid  hemp  or
    48  hemp extract, to be processed.
    49    § 105. Laboratory  testing.  Every  cannabinoid  hemp  processor shall
    50  contract with an independent commercial  laboratory  to  test  the  hemp
    51  extract and products produced by the licensed processor. The board shall
    52  establish  the  necessary  qualifications or certifications required for
    53  such laboratories used by licensees. The board is  authorized  to  issue
    54  rules  and  regulations  consistent  with  this article establishing the
    55  testing required, the reporting of testing  results  and  the  form  for
    56  reporting  such  laboratory  testing results. The board has authority to

        S. 854                             58

     1  require licensees to submit any cannabinoid hemp, hemp extract or  prod-
     2  uct  derived  therefrom, processed or offered for sale within the state,
     3  for testing by the board. This section shall not obligate the board,  in
     4  any  way, to perform any testing on hemp, cannabinoid hemp, hemp extract
     5  or product derived therefrom.
     6    § 106. New York hemp product. The board may establish and adopt  offi-
     7  cial  grades  and  standards  for  cannabinoid  hemp,  hemp  extract and
     8  products derived therefrom, as the board may deem advisable,  which  are
     9  produced  for  sale  in  this state and, from time to time, may amend or
    10  modify such grades and standards.
    11    § 107. Penalties. Notwithstanding the provision  of  any  law  to  the
    12  contrary, the failure to comply with a requirement of this article, or a
    13  regulation  thereunder, may be punishable by a civil penalty of not more
    14  than one thousand dollars for a first  violation;  not  more  than  five
    15  thousand dollars for a second violation within three years; and not more
    16  than  ten  thousand  dollars  for  a third violation and each subsequent
    17  violation thereafter, within three years.
    18    § 108. Hemp workgroup. The board, in consultation with the commission-
    19  er of the department of agriculture and markets, may appoint a New  York
    20  state hemp and hemp extract workgroup, composed of growers, researchers,
    21  producers,  processors,  manufacturers  and  trade associations, to make
    22  recommendations for the industrial hemp and cannabinoid  hemp  programs,
    23  state and federal policies and policy initiatives, and opportunities for
    24  the  promotion  and  marketing  of  cannabinoid hemp and hemp extract as
    25  consistent with federal and state laws, rules and regulations.
    26    § 109. Prohibitions. 1. Except as authorized by the United States food
    27  and drug administration, the processing  of  cannabinoid  hemp  or  hemp
    28  extract used for human consumption is prohibited within the state unless
    29  the processor is licensed under this article.
    30    2.  Cannabinoid  hemp and hemp extracts used for human consumption and
    31  grown or processed outside the state shall not be distributed or sold at
    32  retail within the state, unless they meet all standards established  for
    33  cannabinoid hemp under state law and regulations.
    34    3.  The  retail  sale  of cannabinoid hemp is prohibited in this state
    35  unless the retailer is licensed under this article.
    36    § 110. Special use permits. The board  shall  have  the  authority  to
    37  issue temporary permits for carrying on any activity related to cannabi-
    38  noid  hemp,  hemp extract and products derived therefrom, licensed under
    39  this article. The board may set reasonable fees  for  such  permits,  to
    40  establish  the  periods during which such permits are valid, and to make
    41  rules and regulations to implement this section.
    42    § 111. Severability. If any provision of this article or the  applica-
    43  tion  thereof to any person or circumstances is held invalid, such inva-
    44  lidity shall not affect other provisions or applications of this article
    45  which can be given effect without the invalid provision or  application,
    46  and to this end the provisions of this article are declared to be sever-
    47  able.

    48                                  ARTICLE 6
    49                             GENERAL PROVISIONS

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

        S. 854                             59

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

        S. 854                             60

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

        S. 854                             61

     1    § 126. License to be confined to premises licensed; premises for which
     2  no  license shall be granted; transporting cannabis.  1. A registration,
     3  license, or permit issued to any person, pursuant to this  chapter,  for
     4  any  registered, licensed, or permitted premises shall not be transfera-
     5  ble  to  any  other person, to any other location or premises, or to any
     6  other building or part of the building containing the licensed  premises
     7  except  in  the  discretion of the office. All privileges granted by any
     8  registration, license, or permit shall be available only to  the  person
     9  therein  specified,  and  only  for  the  premises licensed and no other
    10  except if  authorized  by  the  board.    Provided,  however,  that  the
    11  provisions of this section shall not be deemed to prohibit the amendment
    12  of  a  registration  or  license  as  provided  for  in  this chapter. A
    13  violation of this section shall subject the  registration,  license,  or
    14  permit to revocation for cause.
    15    2.  Where a registration or license for premises has been revoked, the
    16  board in its discretion may refuse to issue a registration, license,  or
    17  permit  under  this chapter, for a period of up to five years after such
    18  revocation, for such premises or for any part of the building containing
    19  such premises and connected therewith.
    20    3. In determining whether to issue such a proscription against  grant-
    21  ing  any  registration, license, or permit for such five-year period, in
    22  addition to any other factors deemed relevant to the  board,  the  board
    23  shall, in the case of a license revoked due to the sale of cannabis to a
    24  person  under  the  age  of  twenty-one not otherwise authorized by this
    25  chapter, determine whether the proposed subsequent licensee has obtained
    26  such premises through an arm's length transaction, and, if  such  trans-
    27  action  is not found to be an arm's length transaction, the office shall
    28  deny the issuance of such license.
    29    4. For purposes of this section, "arm's length transaction" shall mean
    30  a sale of a fee of all undivided  interests  in  real  property,  lease,
    31  management  agreement,  or  other agreement giving the applicant control
    32  over the cannabis at the premises, or any  part  thereof,  in  the  open
    33  market,  between  an informed and willing buyer and seller where neither
    34  is under any compulsion to participate in the transaction, unaffected by
    35  any unusual conditions indicating a reasonable possibility that the sale
    36  was made for the purpose of permitting the original  licensee  to  avoid
    37  the  effect of the revocation. The following sales shall be presumed not
    38  to  be  arm's  length  transactions  unless  adequate  documentation  is
    39  provided  demonstrating  that  the sale, lease, management agreement, or
    40  other agreement giving the applicant control over the  cannabis  at  the
    41  premises,  was  not  conducted,  in whole or in part, for the purpose of
    42  permitting the original licensee to avoid the effect of the revocation:
    43    (a) a sale between relatives;
    44    (b) a sale between related companies or partners in a business; or
    45    (c) a sale, lease, management agreement, or other agreement giving the
    46  applicant control over the cannabis at the premises, affected  by  other
    47  facts or circumstances that would indicate that the sale, lease, manage-
    48  ment agreement, or other agreement giving the applicant control over the
    49  cannabis  at  the  premises,  is entered into for the primary purpose of
    50  permitting the original licensee to avoid the effect of the revocation.
    51    5. No registered organization, licensee or permittee  shall  transport
    52  cannabis products or medical cannabis except in vehicles owned and oper-
    53  ated  by  such  registered organization, licensee or permittee, or hired
    54  and operated by such registered organization, licensee or permittee from
    55  a trucking or transportation company permitted and registered  with  the
    56  board.

        S. 854                             62

     1    6.  No common carrier or person operating a transportation facility in
     2  this state, other than the United  States  government,  shall  knowingly
     3  receive  for  transportation  or  delivery within the state any cannabis
     4  products or medical cannabis unless the shipment is accompanied by  copy
     5  of  a bill of lading, or other document, showing the name and address of
     6  the consignor, the name and address of the consignee, the  date  of  the
     7  shipment,  and  the  quantity  and  kind of cannabis products or medical
     8  cannabis contained therein.
     9    § 127. Protections for the use of cannabis;  unlawful  discriminations
    10  prohibited.   1. No person, registered organization, licensee or permit-
    11  tee, employees, or their agents shall be subject to arrest, prosecution,
    12  or penalty in any manner, or denied any right  or  privilege,  including
    13  but  not limited to civil liability or disciplinary action by a business
    14  or occupational or professional licensing board or  office,  solely  for
    15  conduct  permitted  under  this chapter. For the avoidance of doubt, the
    16  appellate division of the supreme court of the state of  New  York,  and
    17  any  disciplinary or character and fitness committees established by law
    18  are occupational and professional licensing boards within the meaning of
    19  this section. State or local law enforcement agencies shall not  cooper-
    20  ate with or provide assistance to the government of the United States or
    21  any  agency  thereof  in enforcing the federal controlled substances act
    22  solely for actions consistent with this chapter, except as pursuant to a
    23  valid court order.
    24    2. No school or landlord may refuse to enroll or lease to and may  not
    25  otherwise  penalize  a  person  solely for conduct authorized under this
    26  chapter, except as exempted:
    27    (a) if failing to do so would cause the school or landlord to  lose  a
    28  monetary or licensing related benefit under federal law or regulations;
    29    (b)  if  the  institution  has  adopted  a code of conduct prohibiting
    30  cannabis use on the basis of religious belief; or
    31    (c) if a property is registered with the New York  smoke-free  housing
    32  registry,  it is not required to permit the smoking of cannabis products
    33  on its premises.
    34    3. For the purposes of medical care, including  organ  transplants,  a
    35  certified  patient's  authorized use of medical cannabis must be consid-
    36  ered the equivalent of the use of any other medication under the  direc-
    37  tion  of  a  practitioner  and does not constitute the use of an illicit
    38  substance or otherwise disqualify a registered qualifying  patient  from
    39  medical care.
    40    4.  (a)  No  employer  shall take adverse employment action against an
    41  employee for  using  cannabis,  unless  (i)  such  employee's  usage  is
    42  governed  by  state  or  local  law  or rule, or a collective bargaining
    43  agreement that: (1) limits or prohibits  the  usage  of  cannabis  while
    44  performing  the employee's job duties; (2) limits or prohibits the usage
    45  of cannabis as a  condition  of  attaining  or  maintaining  a  license,
    46  certification,  or  professional  status required for employment; or (3)
    47  governs the testing and disciplinary procedures related to  the  use  of
    48  cannabis  by employees; and (ii) the employee's usage is in violation of
    49  such state or local law or rules, or collective bargaining agreement.
    50    (b) Employees whose usage of medical cannabis is governed by state  or
    51  local  law  or  rules,  or  a  collective bargaining agreement that: (i)
    52  limits or prohibits the usage of cannabis while performing  the  employ-
    53  ee's  job  duties;  (ii)  limits or prohibits the usage of cannabis as a
    54  condition of attaining  or  maintaining  a  license,  certification,  or
    55  professional  status required for employment; or (iii) governs the test-
    56  ing and disciplinary procedures  related  to  the  use  of  cannabis  by

        S. 854                             63

     1  employees, shall be afforded the same rights, procedures and protections
     2  that  are available and applicable to injured workers under the workers'
     3  compensation law, or any rules or  regulations  promulgated  thereunder,
     4  when  such injured workers are prescribed medications that may prohibit,
     5  restrict, or require  the  modification  of  the  performance  of  their
     6  duties.
     7    (c)  Employees  shall not face adverse employment actions for usage of
     8  cannabis, as such conduct is permitted under this chapter, prior to  the
     9  beginning  or after the conclusion of the employee's work hours, and off
    10  of the employer's premises and without use of the  employer's  equipment
    11  or other property.
    12    (d) No employer shall take adverse employment action against an appli-
    13  cant  for  employment,  or  otherwise  discriminate against or refuse to
    14  interview an applicant  for  employment,  for  using  cannabis  as  such
    15  conduct is permitted under this chapter.
    16    5.  Nothing  in  this section shall interfere with an employer's obli-
    17  gation to provide a safe and healthy work place,  free  from  recognized
    18  hazards,  as  required by state and federal occupation safety and health
    19  law or require an employer to  commit  any  act  that  would  cause  the
    20  employer  to  be  in  violation  of any other federal law, or that would
    21  result in the loss of a federal contract or federal funding.
    22    6. Nothing in this section shall restrict  an  employer's  ability  to
    23  prohibit  or take adverse employment action for the possession or use of
    24  intoxicating substances during work hours, or  require  an  employer  to
    25  commit  any  act  that  would  cause  the employer to be in violation of
    26  federal law, or that would result in the loss of a federal  contract  or
    27  federal  funding.    For  the  purposes of this section, an employer may
    28  consider an employee's ability to perform the employee's  job  responsi-
    29  bilities to be impaired when the employee manifests specific articulable
    30  symptoms  while  working that decrease or lessen the employee's perform-
    31  ance of the duties or tasks of the employee's job position.
    32    7. As used in this section, "adverse employment action" means refusing
    33  to hire or employ, barring or discharging from employment,  requiring  a
    34  person  to  retire from employment, or discriminating against in compen-
    35  sation or in terms, conditions, or privileges of employment.
    36    8. No person may be denied custody of or visitation or parenting  time
    37  with a minor, for conduct allowed under section 222.05 of the penal law,
    38  unless  the  child's  physical,  mental  or emotional condition has been
    39  impaired, or is in imminent danger of becoming impaired as a  result  of
    40  the  person's  behavior  as  established  by a fair preponderance of the
    41  evidence. For the purposes of this section, this determination cannot be
    42  based solely on whether, when, and how  often  a  person  uses  cannabis
    43  without separate evidence of harm.
    44    §  128.  Permits, registrations and licenses.  1. No permit, registra-
    45  tion or license shall be transferable or assignable except that notwith-
    46  standing any other provision of law, the permit, registration or license
    47  of a sole proprietor converting to corporate form, where such proprietor
    48  becomes the sole stockholder and only officer and director of  such  new
    49  corporation,  may  be  transferred  to  the  subject  corporation if all
    50  requirements of this chapter  remain  the  same  with  respect  to  such
    51  permit,  registration or license as transferred and, further, the regis-
    52  tered organization or licensee shall transmit to the board,  within  ten
    53  days  of  the transfer of license allowable under this subdivision, on a
    54  form prescribed by the board,  notification  of  the  transfer  of  such
    55  license.

        S. 854                             64

     1    2. No permit, registration or license shall be pledged or deposited as
     2  collateral  security  for  any loan or upon any other condition; and any
     3  such pledge or deposit, and any contract providing  therefor,  shall  be
     4  void.
     5    3. Permits, registrations and licenses issued under this chapter shall
     6  contain,  in  addition  to  any  further  information  or material to be
     7  prescribed by the rules and regulations  of  the  board,  the  following
     8  information:
     9    (a) name of the person to whom the license is issued;
    10    (b)  type  of  license  and  what type of cannabis commerce is thereby
    11  permitted;
    12    (c) description by street and number, or otherwise, of licensed  prem-
    13  ises; and
    14    (d)  a  statement in substance that such license shall not be deemed a
    15  property or vested right, and that it may be revoked at any time  pursu-
    16  ant to law.
    17    §  129.  Laboratory  testing  permits.  1. The board shall approve and
    18  permit one or more independent cannabis  testing  laboratories  to  test
    19  medical  cannabis,  adult-use  cannabis  and/or cannabinoid hemp or hemp
    20  extract.
    21    2. To be permitted as an independent cannabis laboratory, a laboratory
    22  must apply to the board, on a form and in a  manner  prescribed  by  the
    23  office,  and  must  demonstrate the following to the satisfaction of the
    24  board:
    25    (a) the owners and directors of the laboratory are of good moral char-
    26  acter;
    27    (b) the laboratory and its staff has the skills, resources and  exper-
    28  tise  needed  to  accurately and consistently perform all of the testing
    29  required for adult-use cannabis,  medical  cannabis  and/or  cannabinoid
    30  hemp or hemp extract;
    31    (c)  the  laboratory has in place and will maintain adequate policies,
    32  procedures, and facility security to ensure proper:  collection,  label-
    33  ing, accessioning, preparation, analysis, result reporting, disposal and
    34  storage of adult-use cannabis, and/or medical cannabis;
    35    (d) the laboratory is physically located in New York state;
    36    (e)  the  laboratory  has  been  approved  by the department of health
    37  pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
    38  lations, pertaining to laboratories performing  environmental  analysis;
    39  and
    40    (f)  the  laboratory meets any and all requirements prescribed by this
    41  chapter and by the board in regulation.
    42    3. The owner of a laboratory testing permit under this  section  shall
    43  not hold a permit, registration or license in any category of this chap-
    44  ter and shall not have any direct or indirect ownership interest in such
    45  registered  organization or licensee. No board member, officer, manager,
    46  owner, partner, principal stakeholder or member of a  registered  organ-
    47  ization or licensee under this chapter, or such person's immediate fami-
    48  ly  member,  shall  have  an interest or voting rights in any laboratory
    49  testing permittee.
    50    4. The board shall require that the permitted laboratory report  test-
    51  ing  results  to the board in a manner, form and timeframe as determined
    52  by the office.
    53    5. The  board  is  authorized  to  promulgate  regulations,  requiring
    54  permitted laboratories to perform certain tests and services.

        S. 854                             65

     1    6. A laboratory granted a laboratory testing permit under this chapter
     2  shall  not required to be licensed by the federal drug enforcement agen-
     3  cy.
     4    §  130.  Special use permits.  The board is hereby authorized to issue
     5  the following kinds of permits for  carrying  on  activities  consistent
     6  with  the  policy  and purpose of this chapter with respect to cannabis.
     7  The board has the authority to set fees for all permits issued  pursuant
     8  to  this  section,  to  establish  the  periods during which permits are
     9  authorized, and to make rules and regulations, including emergency regu-
    10  lations, to implement this section.
    11    1. Industrial cannabis permit - to purchase cannabis from one  of  the
    12  entities  licensed  by  the board for use in the manufacture and sale of
    13  any of the following, when such cannabis is not otherwise  suitable  for
    14  consumption  purposes,  namely:   (a) apparel, energy, paper, and tools;
    15  (b) scientific, chemical, mechanical and industrial products; or (c) any
    16  other industrial use as determined by the board in regulation.
    17    2. Trucking permit - to allow for the trucking  or  transportation  of
    18  cannabis  products,  or medical cannabis by a person other than a regis-
    19  tered organization or licensee under this chapter.
    20    3. Warehouse permit - to allow for the storage of  cannabis,  cannabis
    21  products,  or medical cannabis at a location not otherwise registered or
    22  licensed by the office.
    23    4. Packaging permit - to authorize a licensed cannabis distributor  to
    24  sort,  package,  label  and  bundle  cannabis  products from one or more
    25  registered organizations or licensed processors, on the premises of  the
    26  licensed  cannabis  distributor or at a warehouse for which a permit has
    27  been issued under this section.
    28    § 131.  Local  opt-out;  municipal  control  and  preemption.  1.  The
    29  provisions  of  article four of this chapter authorizing the retail sale
    30  of adult-use cannabis to cannabis consumers shall not be applicable to a
    31  town, city or village which, after a mandatory referendum held  pursuant
    32  to  section  twenty-three of the municipal home rule law, adopts a local
    33  law to prohibit the establishment  or  operation  of  retail  dispensary
    34  licenses contained in article four of this chapter, within the jurisdic-
    35  tion  of the town, city or village. Provided, however, that any town law
    36  shall apply to the area of the town outside of any village  within  such
    37  town.
    38    2.  Except  as  provided  for  in subdivision one of this section, all
    39  county, town, city and village governing  bodies  are  hereby  preempted
    40  from  adopting any rule, ordinance, regulation or prohibition pertaining
    41  to the operation or licensure  of  registered  organizations,  adult-use
    42  cannabis  licenses  or  hemp  licenses. However, municipalities may pass
    43  local laws and ordinances  governing  the  time,  place  and  manner  of
    44  licensed adult-use cannabis retail dispensaries, provided such ordinance
    45  or  regulation  does  not  make  the  operation  of such licensed retail
    46  dispensaries unreasonably impracticable as determined by  the  board  in
    47  consultation with the state cannabis advisory board.
    48    §  132.  Penalties  for  violation  of this chapter. 1. Any person who
    49  cultivates for sale or sells cannabis,  cannabis  products,  or  medical
    50  cannabis  without  having an appropriate registration, license or permit
    51  therefor, or whose registration, license, or permit  has  been  revoked,
    52  surrendered  or  cancelled,  may be subject to prosecution in accordance
    53  with article two hundred twenty-two of the penal law.
    54    2. Any registered organization or licensee, who has received notifica-
    55  tion of a registration or license suspension pursuant to the  provisions
    56  of this chapter, who sells cannabis, cannabis products, medical cannabis

        S. 854                             66

     1  or  cannabinoid hemp or hemp extract during the suspension period, shall
     2  be subject to prosecution as provided in article two hundred  twenty-two
     3  of  the penal law, and upon conviction thereof under this section may be
     4  subject to a civil penalty of not more than five thousand dollars.
     5    3. Any person who shall knowingly make any material false statement in
     6  the application for a registration, license or a permit under this chap-
     7  ter  may  be  subject  to  a civil penalty of not more than two thousand
     8  dollars.
     9    4. Any person under the age of twenty-one found to be in possession of
    10  cannabis or cannabis products who is not a certified patient pursuant to
    11  article three of this chapter shall be in violation of this chapter  and
    12  shall be subject to the following penalty:
    13    (a)  (i)  The  person  shall be subject to a civil penalty of not more
    14  than fifty dollars. The civil penalty shall be payable to the office  of
    15  cannabis management.
    16    (ii)  Any  identifying  information provided by the enforcement agency
    17  for the purpose of facilitating payment of the civil penalty  shall  not
    18  be  shared or disclosed under any circumstances with any other agency or
    19  law enforcement division.
    20    (b) The person shall, upon payment of the required civil  penalty,  be
    21  provided  with  information  related  to  the dangers of underage use of
    22  cannabis and information related to cannabis use disorder by the office.
    23    (c) The issuance and subsequent payment of such civil penalty shall in
    24  no way qualify as a criminal accusation, admission of guilt, or a crimi-
    25  nal conviction and shall in no way operate as a disqualification of  any
    26  such  person from holding public office, attaining public employment, or
    27  as a forfeiture of any right or privilege.
    28    5. Cannabis  recovered  from  individuals  who  are  found  to  be  in
    29  violation of this chapter may after notice and opportunity for a hearing
    30  be considered a nuisance and shall be disposed of or destroyed.
    31    §  133.  Revocation  of registrations, licenses and permits for cause;
    32  procedure for revocation or cancellation.  1. Any registration,  license
    33  or  permit  issued  pursuant  to this chapter may be revoked, cancelled,
    34  suspended and/or subjected to the imposition  of  a  civil  penalty  for
    35  cause, and there shall be a rebuttable presumption of revocation for the
    36  following causes:
    37    (a)  conviction of the registered organization, licensee, permittee or
    38  his or her agent or employee for selling any  illicit  cannabis  on  the
    39  premises registered, licensed or permitted; or
    40    (b)  for  transferring,  assigning  or  hypothecating  a registration,
    41  license or permit without prior written approval of the office.
    42    2. Notwithstanding the issuance of a registration, license  or  permit
    43  by  way  of renewal, the board may revoke, cancel or suspend such regis-
    44  tration, license or permit and/or may impose a civil penalty against any
    45  holder of such registration, license or permit, as  prescribed  by  this
    46  section,  for  causes  or violations occurring during the license period
    47  immediately preceding the issuance  of  such  registration,  license  or
    48  permit.
    49    3.  (a)  As  used  in  this  section,  the term "for cause" shall also
    50  include the existence of a sustained and continuing pattern  of  miscon-
    51  duct,  failure  to  adequately prevent diversion or disorder on or about
    52  the registered, licensed or permitted premises, or in the area in  front
    53  of or adjacent to the registered or licensed premises, or in any parking
    54  lot  provided  by  the  registered  organization  or licensee for use by
    55  registered  organization  or  licensee's  patrons,  which  significantly
    56  adversely  affects  or  tends  to  significantly  adversely  affect  the

        S. 854                             67

     1  protection, health, welfare, safety, or repose of the inhabitants of the
     2  area in which the registered or licensed premises is located.
     3    (b)  (i)  As  used  in  this  section, the term "for cause" shall also
     4  include deliberately misleading the board or office of cannabis  manage-
     5  ment:
     6    (A)  as  to the nature and character of the business to be operated by
     7  the registered organization, licensee or permittee; or
     8    (B) by substantially altering the nature or character of such business
     9  during the registration or licensing period without seeking  appropriate
    10  approvals from the board.
    11    (ii) As used in this subdivision, the term "substantially altering the
    12  nature  or  character"  of  such business shall mean any significant and
    13  material alteration in the scope of business activities conducted  by  a
    14  registered  organization,  licensee  or  permittee  that  would  require
    15  obtaining an alternate form of registration, license or permit.
    16    4. As used in this chapter, the existence of a sustained and  continu-
    17  ing  pattern  of  misconduct, failure to adequately prevent diversion or
    18  disorder on or about the premises may be presumed upon the  sixth  inci-
    19  dent reported to the board by a law enforcement agency, or discovered by
    20  the  board during the course of any investigation, of misconduct, diver-
    21  sion or disorder on or about the premises or related to the operation of
    22  the premises, absent clear and convincing evidence of either  fraudulent
    23  intent on the part of any complainant or a factual error with respect to
    24  the  content  of any report concerning such complaint relied upon by the
    25  board.
    26    5. Notwithstanding any other provision of this chapter to the  contra-
    27  ry,  a  suspension  imposed  under  this section against the holder of a
    28  registration issued pursuant to article three  of  this  chapter,  shall
    29  only  suspend  the  licensed activities related to the type of cannabis,
    30  medical cannabis or adult-use cannabis involved in the violation result-
    31  ing in the suspension.
    32    6. Any registration, license or permit issued by the board pursuant to
    33  this chapter may be revoked, cancelled or suspended and/or be  subjected
    34  to the imposition of a monetary penalty set forth in this chapter in the
    35  manner prescribed by this section.
    36    7. The board may on its own initiative, or on complaint of any person,
    37  institute  proceedings to revoke, cancel or suspend any adult-use canna-
    38  bis retail dispensary license or adult-use cannabis on-site  consumption
    39  license  and  may  impose  a  civil penalty against the licensee after a
    40  hearing at which the licensee shall be given an opportunity to be heard.
    41  Such hearing shall be held in such manner and upon such notice as may be
    42  prescribed in regulation by the board.
    43    8. All other registrations, licenses  or  permits  issued  under  this
    44  chapter  may be revoked, cancelled, suspended and/or made subject to the
    45  imposition of a civil penalty by the office after a hearing to  be  held
    46  in  such  manner and upon such notice as may be prescribed in regulation
    47  by the board.
    48    9. Where a licensee or permittee is convicted of two or more  qualify-
    49  ing  offenses  within  a  five-year  period, the office, upon receipt of
    50  notification of such second or subsequent conviction, shall, in addition
    51  to any other sanction or civil or criminal penalty imposed  pursuant  to
    52  this  chapter, impose on such licensee a civil penalty not to exceed ten
    53  thousand dollars. For purposes of this subdivision, a qualifying offense
    54  shall mean the sale of cannabis to a person under the age of  twenty-one
    55  not  otherwise authorized by this chapter. For purposes of this subdivi-

        S. 854                             68

     1  sion only, a conviction of a licensee or an employee or  agent  of  such
     2  licensee shall constitute a conviction of such licensee.
     3    §  134.  Lawful actions pursuant to this chapter. 1. Contracts related
     4  to the operation of registered organizations, licenses and permits under
     5  this chapter shall be lawful and shall not be  deemed  unenforceable  on
     6  the  basis  that  the  actions  permitted  pursuant to the registration,
     7  license or permit are prohibited by federal law.
     8    2. The following actions are not unlawful as provided under this chap-
     9  ter, shall not be an offense under any state or local law, and shall not
    10  result in any civil penalty, fine, seizure, or forfeiture of assets,  or
    11  be  the  basis  for  detention  or  search  against any person acting in
    12  accordance with this chapter:
    13    (a) Actions of a registered organization, licensee, or  permittee,  or
    14  the  employees  or  agents  of such registered organization, licensee or
    15  permittee, as permitted by this chapter and consistent  with  rules  and
    16  regulations  of the office, pursuant to a valid registration, license or
    17  permit issued by the board.
    18    (b) Actions of those who allow property to be  used  by  a  registered
    19  organization, licensee, or permittee, or the employees or agents of such
    20  registered  organization,  licensee  or  permittee, as permitted by this
    21  chapter and consistent with rules and regulations of the office,  pursu-
    22  ant to a valid registration, license or permit issued by the board.
    23    (c)  Actions of any person or entity, their employees, or their agents
    24  providing a service to a registered organization, licensee, permittee or
    25  a potential registered organization, licensee, or permittee, as  permit-
    26  ted  by  this  chapter  and consistent with rules and regulations of the
    27  office, relating to the formation of a business.
    28    (d) The purchase, cultivation, possession, or consumption of cannabis,
    29  and medical cannabis, as permitted by law, and consistent with rules and
    30  regulations of the board.
    31    § 135. Review by courts. An action by the board shall  be  subject  to
    32  review  by  the supreme court in the manner provided in article seventy-
    33  eight of the civil practice law and rules including, but not limited to:
    34    (a) Refusal by the board  to  issue  a  registration,  license,  or  a
    35  permit.
    36    (b)  The  revocation,  cancellation  or  suspension of a registration,
    37  license, or permit by the board.
    38    (c) The failure or refusal by the board to render a decision upon  any
    39  application  or  hearing  submitted to or held by the board within sixty
    40  days after such submission or hearing.
    41    (d) The transfer by the board of a registration, license, or permit to
    42  any other entity or premises, or the failure or refusal by the board  to
    43  approve such a transfer.
    44    (e) Refusal to approve alteration of premises.
    45    (f)  Refusal to approve a corporate change in stockholders, stockhold-
    46  ings, officers or directors.
    47    § 136. Illicit cannabis. 1. "Illicit cannabis" means and includes  any
    48  cannabis product or medical cannabis that is owned, cultivated, distrib-
    49  uted,  bought,  sold,  packaged, rectified, blended, treated, fortified,
    50  mixed, processed, warehoused, possessed or transported for which any tax
    51  required to have been paid under any applicable state law has  not  been
    52  paid.
    53    2.  Any  person  holding  a license, permit or registration under this
    54  chapter who shall knowingly possess or have under his or her control any
    55  cannabis known by the person to be illicit cannabis is guilty of a class
    56  B misdemeanor.

        S. 854                             69

     1    3. Any person holding a license, permit or  registration  pursuant  to
     2  this  chapter  who  shall  knowingly  barter, exchange, give or sell, or
     3  offer to barter, exchange, give or sell any cannabis known by the person
     4  to be illicit cannabis is guilty of a misdemeanor.
     5    4.  Any  person  holding a license, permit or registration pursuant to
     6  this chapter who shall knowingly  possess  or  have  under  his  or  her
     7  control  or  transport  any  cannabis  known by the person to be illicit
     8  cannabis with intent to barter, exchange, give or sell such cannabis  is
     9  guilty of a class B misdemeanor.
    10    5.  Any  person  who, being the owner, lessee or occupant of any room,
    11  shed, tenement, booth, building, float, vessel or part thereof knowingly
    12  permits the same to be used for the  cultivation,  processing,  distrib-
    13  ution,  purchase,  sale,  warehousing,  transportation or storage of any
    14  illicit cannabis is guilty of a violation.
    15    § 137. Persons forbidden to traffic cannabis; certain officials not to
    16  be interested in manufacture  or  sale  of  cannabis  products.  1.  The
    17  following  are  forbidden to traffic in cannabis except in extraordinary
    18  circumstances as determined by the board:
    19    (a) An individual who has been convicted of an offense related to  the
    20  functions  or  duties  of  owning  and operating a business within three
    21  years of the application date, except that if the board determines  that
    22  the  owner or licensee is otherwise suitable to be issued a license, and
    23  the board determines granting  the  license  is  not  inconsistent  with
    24  public  safety,  the board shall conduct a thorough review of the nature
    25  of the crime, conviction, circumstances and evidence  of  rehabilitation
    26  of the owner in accordance with article twenty-three-A of the correction
    27  law,  and  shall evaluate the suitability of the owner or licensee to be
    28  issued a license based on the evidence  found  through  the  review.  In
    29  determining which offenses are substantially related to the functions or
    30  duties  of owning and operating a business, the board shall include, but
    31  not be limited to, the following:
    32    (i) a felony conviction within the past five  years  involving  fraud,
    33  money  laundering,  forgery and other unlawful conduct related to owning
    34  and operating a business; and
    35    (ii) a felony conviction  within  the  past  five  years  for  hiring,
    36  employing,  or  using a minor in transporting, carrying, selling, giving
    37  away, preparing for sale, or peddling, any  controlled  substance  to  a
    38  minor;  or  selling,  offering to sell, furnishing, offering to furnish,
    39  administering, or giving any controlled substance to a minor.
    40    (b) A person under the age of twenty-one years;
    41    (c) A partnership or a corporation, unless each member of the partner-
    42  ship, or each of the principal officers  and  directors  of  the  corpo-
    43  ration,  is a citizen of the United States or a person lawfully admitted
    44  for permanent residence in the United States, not less  than  twenty-one
    45  years  of  age;  provided  however  that  a  corporation which otherwise
    46  conforms to the requirements of this section and chapter may be licensed
    47  if each of its principal officers and more than one-half of  its  direc-
    48  tors  are citizens of the United States or persons lawfully admitted for
    49  permanent residence in the United States; and provided  further  that  a
    50  corporation  organized  under  the not-for-profit corporation law or the
    51  education law which otherwise  conforms  to  the  requirements  of  this
    52  section  and  chapter  may be licensed if each of its principal officers
    53  and directors are not less than twenty-one years of age;  and  provided,
    54  further,  that  a  corporation organized under the not-for-profit corpo-
    55  ration law or the education law and located on the premises of a college
    56  as defined by section two of the education law which otherwise  conforms

        S. 854                             70

     1  to  the requirements of this section and chapter may be licensed if each
     2  of its principal officers and each of its directors are  not  less  than
     3  twenty-one years of age;
     4    (d)  A  person  who  shall have had any registration or license issued
     5  under this chapter revoked for cause, until the expiration of  one  year
     6  from the date of such revocation;
     7    (e)  A  person not registered or licensed under the provisions of this
     8  chapter, who has been convicted of a misdemeanor or felony in  violation
     9  of  this chapter, until the expiration of one year from the date of such
    10  conviction; or
    11    (f) A corporation or partnership, if any officer and director  or  any
    12  partner,  while  not  licensed under the provisions of this chapter, has
    13  been convicted of a misdemeanor or felony in violation of this  chapter,
    14  or  has  had a registration or license issued under this chapter revoked
    15  for cause, until the expiration of up to one year from the date of  such
    16  conviction or revocation as determined by the board.
    17    2.  Except as may otherwise be provided for in regulation, it shall be
    18  unlawful for any chief of police, police officer or subordinate  of  any
    19  police  department  in  the  state,  to be either directly or indirectly
    20  interested in the cultivation,  processing,  distribution,  or  sale  of
    21  cannabis  products  or to offer for sale, or recommend to any registered
    22  organization or licensee any cannabis products.  A  person  may  not  be
    23  denied  any registration or license granted under the provisions of this
    24  chapter solely on the grounds of being the spouse or domestic partner of
    25  a public servant described in this section. The solicitation  or  recom-
    26  mendation  made  to any registered organization or licensee, to purchase
    27  any cannabis products by any police official or subordinate as  hereina-
    28  bove  described,  shall  be presumptive evidence of the interest of such
    29  official or subordinate in the cultivation, processing, distribution, or
    30  sale of cannabis products.
    31    3. No elected village officer shall be subject to the limitations  set
    32  forth  in  subdivision  two  of this section unless such elected village
    33  officer shall be assigned duties directly relating to the  operation  or
    34  management of the police department.
    35    §  138. Access to criminal history information through the division of
    36  criminal justice services.   In connection with  the  administration  of
    37  this  chapter,  the  board  is authorized to request, receive and review
    38  criminal history information through the division  of  criminal  justice
    39  services  with  respect  to  any person seeking a registration, license,
    40  permit or  authorization  to  cultivate,  process,  distribute  or  sell
    41  medical  cannabis, adult-use cannabis, cannabinoid hemp or hemp extract.
    42  At the board's request, each person, member, principal and/or officer of
    43  the applicant shall submit to the board his or her fingerprints in  such
    44  form and in such manner as specified by the division, for the purpose of
    45  conducting  a  criminal  history search identifying criminal convictions
    46  and pending criminal charges and returning a report thereon  in  accord-
    47  ance  with  the  procedures and requirements established by the division
    48  pursuant to the provisions of article thirty-five of the executive  law,
    49  which  shall include the payment of the reasonable prescribed processing
    50  fees for the cost of the division's full search  and  retain  procedures
    51  and a national criminal history record check. The board, or their desig-
    52  nee,  shall submit such fingerprints and the processing fee to the divi-
    53  sion. The division shall forward to the board a report with  respect  to
    54  the  applicant's  previous criminal history, if any, or a statement that
    55  the applicant has no previous criminal history according to  its  files.
    56  Fingerprints  submitted to the division pursuant to this subdivision may

        S. 854                             71

     1  also be submitted to the federal bureau of investigation for a  national
     2  criminal  history record check. If additional copies of fingerprints are
     3  required, the applicant shall furnish them upon request. Upon receipt of
     4  such  criminal  history information, the board shall provide such appli-
     5  cant with a copy of such criminal history information, together  with  a
     6  copy  of  article  twenty-three-A of the correction law, and inform such
     7  applicant of his or her right to seek correction of any incorrect infor-
     8  mation contained in such criminal history information pursuant to  regu-
     9  lations  and  procedures established by the division of criminal justice
    10  services.
    11    § 139. Severability. If any provision of this chapter  or  application
    12  thereof  to any person or circumstances is held invalid, such invalidity
    13  shall not affect other provisions or applications of this  chapter  that
    14  can be given effect without the invalid provision or application, and to
    15  this end the provisions of this chapter are declared severable.
    16    § 3. Section 3302 of the public health law, as added by chapter 878 of
    17  the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
    18  subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 22, 23, 24,  25,
    19  26,  28,  29  and  30  as renumbered by chapter 537 of the laws of 1998,
    20  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
    21  and 40 as added by chapter 178 of the laws of  2010,  paragraph  (a)  of
    22  subdivision  20, the opening paragraph of subdivision 22 and subdivision
    23  29 as amended by chapter 163 of the laws  of  1973,  subdivision  21  as
    24  amended  by  chapter 1 of the laws of 2020, subdivision 31 as amended by
    25  section 4 of part A of chapter 58 of the laws of 2004, subdivision 41 as
    26  added by section 6 of part A of chapter 447 of the  laws  of  2012,  and
    27  subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of
    28  the laws of 2014, is amended to read as follows:
    29    §  3302.  Definitions  of terms of general use in this article. Except
    30  where  different  meanings  are  expressly   specified   in   subsequent
    31  provisions of this article, the following terms have the following mean-
    32  ings:
    33    1.  "Addict" means a person who habitually uses a controlled substance
    34  for a non-legitimate or unlawful use, and who by reason of such  use  is
    35  dependent thereon.
    36    2.   "Administer"   means  the  direct  application  of  a  controlled
    37  substance, whether by injection, inhalation,  ingestion,  or  any  other
    38  means, to the body of a patient or research subject.
    39    3.  "Agent" means an authorized person who acts on behalf of or at the
    40  direction of a manufacturer, distributor, or dispenser. No person may be
    41  authorized to so act if under title  VIII  of  the  education  law  such
    42  person  would  not  be  permitted to engage in such conduct. It does not
    43  include a common or contract carrier, public warehouseman,  or  employee
    44  of  the  carrier  or  warehouseman  when  acting in the usual and lawful
    45  course of the carrier's or warehouseman's business.
    46    4. ["Concentrated Cannabis" means
    47    (a) the separated resin, whether crude or purified,  obtained  from  a
    48  plant of the genus Cannabis; or
    49    (b)  a  material,  preparation,  mixture,  compound or other substance
    50  which contains more than two and one-half percent by weight  of  delta-9
    51  tetrahydrocannabinol,  or  its  isomer,  delta-8  dibenzopyran numbering
    52  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    53  terpene numbering system.
    54    5.] "Controlled substance" means a substance or substances  listed  in
    55  section thirty-three hundred six of this [chapter] title.

        S. 854                             72

     1    [6.]  5.  "Commissioner"  means commissioner of health of the state of
     2  New York.
     3    [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
     4  attempted transfer from one person to another of a controlled substance,
     5  whether or not there is an agency relationship.
     6    [8.] 7. "Department" means the department of health of  the  state  of
     7  New York.
     8    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
     9  mate user or research subject by lawful means, including by means of the
    10  internet, and includes the packaging, labeling, or compounding necessary
    11  to prepare the substance for such delivery.
    12    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    13  ing by means of the internet, other than by administering or dispensing.
    14    [11.]  10.  "Distributor"  means a person who distributes a controlled
    15  substance.
    16    [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
    17  of  a  controlled  substance by a person or in a manner not specifically
    18  authorized by law.
    19    [13.] 12. "Drug" means
    20    (a) substances recognized as drugs in the official United States Phar-
    21  macopoeia, official Homeopathic Pharmacopoeia of the United  States,  or
    22  official National Formulary, or any supplement to any of them;
    23    (b)  substances  intended  for use in the diagnosis, cure, mitigation,
    24  treatment, or prevention of disease in man or animals; and
    25    (c) substances (other than food) intended to affect the structure or a
    26  function of the body of man or animal. It does not  include  devices  or
    27  their components, parts, or accessories.
    28    [14.]  13. "Federal agency" means the Drug Enforcement Administration,
    29  United States Department of Justice, or its successor agency.
    30    [15.] 14. "Federal controlled substances act" means the  Comprehensive
    31  Drug  Abuse  Prevention  and Control Act of 1970, Public Law 91-513, and
    32  any act or  acts  amendatory  or  supplemental  thereto  or  regulations
    33  promulgated thereunder.
    34    [16.]  15. "Federal registration number" means such number assigned by
    35  the Federal agency to any person authorized to manufacture,  distribute,
    36  sell, dispense or administer controlled substances.
    37    [17.]  16.  "Habitual  user"  means any person who is, or by reason of
    38  repeated use of any controlled substance for non-legitimate or  unlawful
    39  use is in danger of becoming, dependent upon such substance.
    40    [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
    41  hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
    42  hospital or similar facility approved and certified by the department as
    43  authorized  to  obtain  controlled  substances  by  distribution  and to
    44  dispense and administer such substances pursuant to the order of a prac-
    45  titioner.
    46    [19.] 18. "License"  means  a  written  authorization  issued  by  the
    47  department  or  the  New  York  state department of education permitting
    48  persons to engage in a specified activity  with  respect  to  controlled
    49  substances.
    50    [20.]  19.  "Manufacture"  means  the  production, preparation, propa-
    51  gation,  compounding,  cultivation,  conversion  or  processing   of   a
    52  controlled  substance,  either  directly  or indirectly or by extraction
    53  from substances of natural origin, or independently by means of chemical
    54  synthesis, or by a combination of extraction and chemical synthesis, and
    55  includes any packaging or repackaging of the substance  or  labeling  or
    56  relabeling  of its container, except that this term does not include the

        S. 854                             73

     1  preparation,  compounding,  packaging  or  labeling  of   a   controlled
     2  substance:
     3    (a)  by a practitioner as an incident to his administering or dispens-
     4  ing of a controlled substance in the course of  his  professional  prac-
     5  tice; or
     6    (b)  by  a  practitioner,  or by his authorized agent under his super-
     7  vision, for the purpose of, or as an incident to, research, teaching, or
     8  chemical analysis and not for sale; or
     9    (c) by a pharmacist as an incident to his dispensing of  a  controlled
    10  substance in the course of his professional practice.
    11    [21.  "Marihuana"  means all parts of the plant of the genus Cannabis,
    12  whether growing or not; the seeds thereof; the resin extracted from  any
    13  part  of  the  plant; and every compound, manufacture, salt, derivative,
    14  mixture, or preparation of the plant,  its  seeds  or  resin.  The  term
    15  "marihuana" shall not include:
    16    (a)  the  mature  stalks of the plant, fiber produced from the stalks,
    17  oil or cake made from the seeds of the plant, any other compound,  manu-
    18  facture,  salt, derivative, mixture, or preparation of the mature stalks
    19  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    20  sterilized seed of the plant which is incapable of germination;
    21    (b)  hemp,  as defined in subdivision one of section five hundred five
    22  of the agriculture and markets law;
    23    (c) cannabinoid hemp as defined in subdivision two of section  thirty-
    24  three hundred ninety-eight of this chapter; or
    25    (d)  hemp  extract  as  defined in subdivision five of section thirty-
    26  three hundred ninety-eight of this chapter.
    27    22.] 20. "Narcotic drug" means any of the following, whether  produced
    28  directly  or  indirectly  by  extraction  from  substances  of vegetable
    29  origin, or independently by means of chemical synthesis, or by a  combi-
    30  nation of extraction and chemical synthesis:
    31    (a)  opium and opiate, and any salt, compound, derivative, or prepara-
    32  tion of opium or opiate;
    33    (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
    34  which  is  chemically equivalent or identical with any of the substances
    35  referred to in [subdivision] paragraph (a) of this subdivision, but  not
    36  including the isoquinoline alkaloids of opium;
    37    (c) opium poppy and poppy straw.
    38    [23.]  21. "Opiate" means any substance having an addiction-forming or
    39  addiction-sustaining liability similar to morphine or being  capable  of
    40  conversion  into a drug having addiction-forming or addiction-sustaining
    41  liability. It  does  not  include,  unless  specifically  designated  as
    42  controlled  under section [3306] thirty-three hundred six of this [arti-
    43  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
    44  its salts (dextromethorphan). It does include its racemic and  levorota-
    45  tory forms.
    46    [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
    47  somniferum L., except its seeds.
    48    [25.] 23. "Person" means individual, institution, corporation, govern-
    49  ment or governmental subdivision  or  agency,  business  trust,  estate,
    50  trust, partnership or association, or any other legal entity.
    51    [26.]  24. "Pharmacist" means any person licensed by the state depart-
    52  ment of education to practice pharmacy.
    53    [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
    54  York  state  board  of  pharmacy  and registered with the Federal agency
    55  pursuant to the federal controlled substances act.

        S. 854                             74

     1    [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
     2  opium poppy, after mowing.
     3    [29.] 27. "Practitioner" means:
     4    A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
     5  gator, or other person licensed, or  otherwise  permitted  to  dispense,
     6  administer or conduct research with respect to a controlled substance in
     7  the  course  of  a  licensed  professional practice or research licensed
     8  pursuant to this article. Such person shall be deemed  a  "practitioner"
     9  only  as  to such substances, or conduct relating to such substances, as
    10  is permitted by his license, permit or otherwise permitted by law.
    11    [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
    12  prescription,  permitting an ultimate user lawfully to obtain controlled
    13  substances  from  any  person  authorized  by  law  to   dispense   such
    14  substances.
    15    [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
    16  prescription, an electronic prescription, an oral prescription[,] or  an
    17  out-of-state prescription[, or any one].
    18    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
    19  er, or offer or agree to do the same.
    20    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
    21  possesses a controlled substance for his own use or the use by a  member
    22  of  his  household  or  for an animal owned by him or in his custody. It
    23  shall also mean and include a person designated, by a practitioner on  a
    24  prescription, to obtain such substance on behalf of the patient for whom
    25  such substance is intended.
    26    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    27  cations facilities which comprise the worldwide network of networks that
    28  employ a set of industry standards and protocols, or any predecessor  or
    29  successor  protocol  to  such  protocol,  to exchange information of all
    30  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
    31  networks,  whether  private  or  public, used to transmit information by
    32  electronic means.
    33    [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
    34  distribution,  or  dispensing  of  a  controlled substance that uses the
    35  internet, is initiated by use of the internet or causes the internet  to
    36  be used.
    37    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
    38  in  the  United  States  that sells, delivers or dispenses, or offers to
    39  sell, deliver, or dispense, a  controlled  substance  by  means  of  the
    40  internet.
    41    [37.]  35.  "Electronic prescription" means a prescription issued with
    42  an electronic signature and transmitted by electronic means  in  accord-
    43  ance with regulations of the commissioner and the commissioner of educa-
    44  tion  and consistent with federal requirements. A prescription generated
    45  on an electronic system that is printed out or transmitted via facsimile
    46  is not considered  an  electronic  prescription  and  must  be  manually
    47  signed.
    48    [38.] 36. "Electronic" means of or relating to technology having elec-
    49  trical, digital, magnetic, wireless, optical, electromagnetic or similar
    50  capabilities. "Electronic" shall not include facsimile.
    51    [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
    52  created, generated, transmitted, communicated,  received  or  stored  by
    53  means  of electronic equipment and includes the preservation, retrieval,
    54  use and disposition in accordance with regulations of  the  commissioner
    55  and the commissioner of education and in compliance with federal law and
    56  regulations.

        S. 854                             75

     1    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
     2  process,  attached  to or logically associated with an electronic record
     3  and executed or adopted by a person with the intent to sign the  record,
     4  in  accordance with regulations of the commissioner and the commissioner
     5  of education.
     6    [41.]  39.  "Registry"  or  "prescription monitoring program registry"
     7  means the prescription monitoring program registry established  pursuant
     8  to section thirty-three hundred forty-three-a of this article.
     9    [42.]  40. "Compounding" means the combining, admixing, mixing, dilut-
    10  ing, pooling, reconstituting, or otherwise altering of a  drug  or  bulk
    11  drug  substance to create a drug with respect to an outsourcing facility
    12  under section 503B of the  federal  Food,  Drug  and  Cosmetic  Act  and
    13  further defined in this section.
    14    [43.] 41. "Outsourcing facility" means a facility that:
    15    (a)  is  engaged  in  the  compounding  of sterile drugs as defined in
    16  section sixty-eight hundred two of the education law;
    17    (b) is currently registered as an  outsourcing  facility  pursuant  to
    18  article one hundred thirty-seven of the education law; and
    19    (c)  complies  with  all  applicable requirements of federal and state
    20  law, including the Federal Food, Drug and Cosmetic Act.
    21    Notwithstanding any other provision of law to the  contrary,  when  an
    22  outsourcing  facility  distributes  or  dispenses any drug to any person
    23  pursuant to a prescription, such outsourcing facility shall be deemed to
    24  be providing pharmacy services and shall be subject to all  laws,  rules
    25  and regulations governing pharmacies and pharmacy services.
    26    §  4.  Paragraphs  13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
    27  26, 27, 28, 29, 30, 31 and 32  of  subdivision  (d)  of  schedule  I  of
    28  section  3306  of  the public health law, paragraphs 13, 14, 15, 16, 17,
    29  18, 19, 20, 21, 22, 23 and 24 as added by chapter 664  of  the  laws  of
    30  1985,  paragraphs  25,  26, 27, 28, 29 and 30 as added by chapter 589 of
    31  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
    32  laws of 2006, are amended to read as follows:
    33    (13) [Marihuana.
    34    (14)] Mescaline.
    35    [(15)] (14) Parahexyl. Some trade or other  names:  3-Hexyl-1-hydroxy-
    36  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
    37    [(16)] (15)  Peyote.  Meaning all parts of the plant presently classi-
    38  fied botanically as Lophophora williamsii Lemaire,  whether  growing  or
    39  not,  the  seeds  thereof,  any extract from any part of such plant, and
    40  every compound, manufacture, salts, derivative, mixture, or  preparation
    41  of such plant, its seeds or extracts.
    42    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    43    [(18)] (17) N-methyl-3-piperidyl benzilate.
    44    [(19)] (18) Psilocybin.
    45    [(20)] (19) Psilocyn.
    46    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
    47  derived  from  the cannabis plant that are equivalents of the substances
    48  contained in the plant, or in the resinous extractives of cannabis,  sp.
    49  and/or synthetic substances, derivatives, and their isomers with similar
    50  chemical structure and pharmacological activity such as the following:
    51    [/\]  delta  1  cis  or  trans tetrahydrocannabinol, and their optical
    52  isomers
    53    [/\] delta 6 cis or  trans  tetrahydrocannabinol,  and  their  optical
    54  isomers
    55    [/\]  delta  3,  4  cis or trans tetrahydrocannabinol, and its optical
    56  isomers (since nomenclature of these substances is  not  internationally

        S. 854                             76

     1  standardized,  compounds  of  these  structures, regardless of numerical
     2  designation of atomic positions covered).
     3    [(22)] (21)  Ethylamine  analog  of phencyclidine. Some trade or other
     4  names:   N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl)  ethyla-
     5  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
     6    [(23)]  (22) Pyrrolidine  analog of phencyclidine. Some trade or other
     7  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
     8    [(24)] (23) Thiophene analog of phencyclidine.  Some  trade  or  other
     9  names:     1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog  of
    10  phencyclidine, TPCP, TCP.
    11    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    12    [(26)]  (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known   as
    13  N-ethyl-alpha-methyl-3,4  (methylenedioxy)  phenethylamine, N-ethyl MDA,
    14  MDE, MDEA.
    15    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    16  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    17  N-hydroxy MDA.
    18    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    19  names: TCPY.
    20    [(29)] (28)   Alpha-ethyltryptamine.   Some   trade  or  other  names:
    21  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    22  3- (2-aminobutyl) indole; Alpha-ET or AET.
    23    [(30)]  (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or other
    24  names: DOET.
    25    [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade  or  other
    26  names:   2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;  alpha-desmethyl
    27  DOB; 2C-B, Nexus.
    28    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    29  optical isomers, salts and salts of isomers.
    30    § 5. Subdivision 8 of section 1399-n of  the  public  health  law,  as
    31  amended  by  chapter  131  of  the  laws  of 2019, is amended to read as
    32  follows:
    33    8. "Smoking" means the burning of a lighted cigar, cigarette, pipe  or
    34  any  other  matter  or  substance  which contains tobacco or [marihuana]
    35  cannabis as  defined  in  section  [thirty-three  hundred  two  of  this
    36  chapter] 222.00 of the penal law.
    37    §  5-a. Section 1399-q of the public health law, as amended by chapter
    38  335 of the laws of 2017, is amended to read as follows:
    39    § 1399-q.  Smoking  and  vaping  restrictions  inapplicable.  1.  This
    40  article shall not apply to:
    41    [1.]   (a)  Private  homes[,]  and  private  residences  [and  private
    42  automobiles];
    43    [2.] (b) Private automobiles;
    44    (c) A hotel or motel room rented to one or more guests;
    45    [3.] (d) Retail tobacco businesses;
    46    [4.] (e) Membership associations; provided, however, that smoking  and
    47  vaping  shall only be allowed in membership associations in which all of
    48  the duties with respect to the operation of such association, including,
    49  but not limited to, the preparation of food and beverages,  the  service
    50  of  food and beverages, reception and secretarial work, and the security
    51  services of the membership association are performed by members of  such
    52  membership  association who do not receive compensation of any kind from
    53  the membership association or any other entity for  the  performance  of
    54  such duties;
    55    [5.]  (f)  Cigar  bars  that,  in  the  calendar  year ending December
    56  thirty-first, two thousand two, generated ten percent  or  more  of  its

        S. 854                             77

     1  total  annual gross income from the on-site sale of tobacco products and
     2  the rental of on-site humidors, not including  any  sales  from  vending
     3  machines, and is registered with the appropriate enforcement officer, as
     4  defined  in subdivision one of section thirteen hundred ninety-nine-t of
     5  this article. Such registration shall remain in effect for one year  and
     6  shall  be  renewable  only  if:  (a) in the preceding calendar year, the
     7  cigar bar generated ten percent or more of its total annual gross income
     8  from the on-site sale of tobacco products  and  the  rental  of  on-site
     9  humidors, and (b) the cigar bar has not expanded its size or changed its
    10  location  from  its  size  or  location since December thirty-first, two
    11  thousand two;
    12    [6.] (g) Outdoor dining areas of food service establishments  with  no
    13  roof  or  other  ceiling  enclosure; provided, however, that smoking and
    14  vaping may be permitted in a contiguous area designated for smoking  and
    15  vaping  so  long  as such area: (a) constitutes no more than twenty-five
    16  percent of the outdoor seating capacity of such food service  establish-
    17  ment, (b) is at least three feet away from the outdoor area of such food
    18  service  establishment not designated for smoking and vaping, and (c) is
    19  clearly designated with written signage as a smoking and vaping area;
    20    [7.] (h) Enclosed rooms in food service establishments, bars, catering
    21  halls, convention halls, hotel and motel  conference  rooms,  and  other
    22  such similar facilities during the time such enclosed areas or rooms are
    23  being used exclusively for functions where the public is invited for the
    24  primary purpose of promoting and sampling tobacco products or electronic
    25  cigarettes,  and  the  service  of  food and drink is incidental to such
    26  purpose, provided that the sponsor or  organizer  gives  notice  in  any
    27  promotional  material or advertisements that smoking and vaping will not
    28  be restricted, and prominently posts  notice  at  the  entrance  of  the
    29  facility  and  has  provided  notice of such function to the appropriate
    30  enforcement officer, as defined in subdivision one of  section  thirteen
    31  hundred  ninety-nine-t of this article, at least two weeks prior to such
    32  function. The enforcement officer shall keep a  record  of  all  tobacco
    33  sampling  events,  and  such  record  shall be made available for public
    34  inspection. No such facility shall permit smoking and vaping under  this
    35  subdivision for more than two days in any calendar year; [and
    36    8.]  (i)  Retail  electronic  cigarette stores, provided however, that
    37  such stores may only permit the use of electronic cigarettes[.]; and
    38    (j) Adult-use on-site  consumption  premises  authorized  pursuant  to
    39  article  four of the cannabis law, provided however, that such locations
    40  may only permit the smoking or vaping of cannabis.
    41    2. The restrictions of this article on the smoking or vaping of canna-
    42  bis shall continue to apply to those locations identified in  paragraphs
    43  (b), (d), (f), (g), (h) and (i) of subdivision one of this section.
    44    § 6. Title 5-A of article 33 of the public health law is REPEALED.
    45    § 6-a. Article 33-B of the public health law is REPEALED.
    46    § 6-b. The commissioner of health and the cannabis control board shall
    47  work  in  conjunction  to  expeditiously  transfer  the oversight of the
    48  medical use of cannabis to ensure continuity of care, and the  responsi-
    49  bility  for  regulation  of  cannabinoid hemp and hemp extract, from the
    50  department of health to the  office  of  cannabis  management.  For  the
    51  purposes  of  this  section continuity of care shall include, but not be
    52  limited to, a certified  patient's  ability  to  engage  in  the  lawful
    53  medical  use  of  cannabis,  and  a registered organization's ability to
    54  conduct its lawful operations.
    55    § 7. Paragraph (d) of subdivision 3, subdivision  3-a  and  paragraphs
    56  (a)  and (b) of subdivision 11 of section 1311 of the civil practice law

        S. 854                             78

     1  and rules, paragraph (d) of subdivision 3 and subdivision 3-a  as  added
     2  by  chapter 655 of the laws of 1990 and paragraphs (a) and (b) of subdi-
     3  vision 11 as amended by section 47 of part A1 of chapter 56 of the  laws
     4  of 2010, are amended to read as follows:
     5    (d) In a forfeiture action commenced by a claiming authority against a
     6  defendant, the following rebuttable presumption shall apply: all curren-
     7  cy  or negotiable instruments payable to the bearer shall be presumed to
     8  be the proceeds of a pre-conviction forfeiture crime when such  currency
     9  or  negotiable  instruments  are  (i)  found  in  close  proximity  to a
    10  controlled substance unlawfully possessed by the defendant in an  amount
    11  sufficient  to constitute a violation of section 220.18 or 220.21 of the
    12  penal law, or (ii) found  in  close  proximity  to  any  quantity  of  a
    13  controlled substance [or marihuana] unlawfully possessed by such defend-
    14  ant  in  a room, other than a public place, under circumstances evincing
    15  an intent to unlawfully mix, compound, distribute, package or  otherwise
    16  prepare for sale such controlled substance [or marihuana].
    17    3-a.  Conviction  of  a person in a criminal action upon an accusatory
    18  instrument which includes one or  more  of  the  felonies  specified  in
    19  subdivision  four-b  of section thirteen hundred ten of this article, of
    20  any felony other than such felonies, shall not preclude a defendant,  in
    21  any subsequent proceeding under this article where that conviction is at
    22  issue, from adducing evidence that the conduct underlying the conviction
    23  would  not  establish  the  elements of any of the felonies specified in
    24  such subdivision other than the one to which the criminal defendant pled
    25  guilty. If the defendant does adduce such evidence, the burden shall  be
    26  upon  the claiming authority to prove, by clear and convincing evidence,
    27  that the conduct underlying the criminal conviction would establish  the
    28  elements  of the felony specified in such subdivision. Nothing contained
    29  in this subdivision shall affect the validity of  a  settlement  of  any
    30  forfeiture action negotiated between the claiming authority and a crimi-
    31  nal defendant contemporaneously with the taking of a plea of guilty in a
    32  criminal  action to any felony defined in article two hundred twenty [or
    33  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    34  commit the same.
    35    (a) Any stipulation or settlement agreement between the parties  to  a
    36  forfeiture  action  shall  be filed with the clerk of the court in which
    37  the forfeiture action is pending. No stipulation or settlement agreement
    38  shall be accepted for filing unless it is accompanied  by  an  affidavit
    39  from  the  claiming  authority that written notice of the stipulation or
    40  settlement agreement, including the terms of such, has been given to the
    41  office of victim  services,  the  state  division  of  criminal  justice
    42  services[,  and in the case of a forfeiture based on a felony defined in
    43  article two hundred twenty or section 221.30 or 221.55 of the penal law,
    44  to the state division of substance abuse services].
    45    (b) No judgment or order of forfeiture shall be  accepted  for  filing
    46  unless  it  is  accompanied  by an affidavit from the claiming authority
    47  that written notice of judgment or order, including the terms  of  such,
    48  has  been  given to the office of victim services, the state division of
    49  criminal justice services[, and in the case of a forfeiture based  on  a
    50  felony defined in article two hundred twenty or section 221.30 or 221.55
    51  of the penal law, to the state division of substance abuse services].
    52    §  8.  Subdivision  1  of  section 3397-b of the public health law, as
    53  added by chapter 810 of the laws of 1980, is amended to read as follows:
    54    1. ["Marijuana"] "Cannabis" means [marijuana] cannabis as  defined  in
    55  [section thirty-three hundred two of this chapter] section 222.00 of the

        S. 854                             79

     1  penal  law  and  shall  also include tetrahydrocannabinols or a chemical
     2  derivative of tetrahydrocannabinol.
     3    § 9. Section 114-a of the vehicle and traffic law, as added by chapter
     4  163 of the laws of 1973, is amended to read as follows:
     5    § 114-a. Drug.  The  term  "drug" when used in this chapter, means and
     6  includes any substance listed in section thirty-three hundred six of the
     7  public health law and cannabis and concentrated cannabis as  defined  in
     8  section 222.00 of the penal law.
     9    §  9-a.  Subdivision 1 of section 1192 of the vehicle and traffic law,
    10  as added by chapter 47 of the laws  of  1988,  is  amended  to  read  as
    11  follows:
    12    1.  Driving while ability impaired. a. No person shall operate a motor
    13  vehicle while the person's ability to  operate  such  motor  vehicle  is
    14  impaired by the consumption of alcohol.
    15    b.  No person shall operate a motor vehicle while the person's ability
    16  to operate such motor vehicle is impaired by  the  use  of  cannabis  or
    17  concentrated cannabis as defined in section 222.00 of the penal law.
    18    §  9-b.  Paragraph (a) of subdivision 2 of section 49-a of the naviga-
    19  tion law, as amended by chapter 239 of the laws of 2016, is  amended  to
    20  read as follows:
    21    (a)  (1) No person shall operate a vessel upon the waters of the state
    22  while his or her ability to operate  such  vessel  is  impaired  by  the
    23  consumption  of  alcohol.  (2) No person shall operate a vessel upon the
    24  waters of the state while his or her ability to operate such  vessel  is
    25  impaired  by  the use of cannabis or concentrated cannabis as defined in
    26  section 222.00 of the penal law.
    27    (a-1) (1) A violation of paragraph (a) of this subdivision shall be an
    28  offense and shall be punishable by a fine of not less than three hundred
    29  dollars nor more than five hundred dollars,  or  by  imprisonment  in  a
    30  penitentiary  or  county jail for not more than fifteen days, or by both
    31  such fine and imprisonment. (2)  A  person  who  operates  a  vessel  in
    32  violation  of paragraph (a) of this subdivision after being convicted of
    33  a violation of any subdivision of this section within the preceding five
    34  years shall be punished by a fine of not less than five hundred  dollars
    35  nor  more  than  seven  hundred fifty dollars, or by imprisonment of not
    36  more than thirty days in a penitentiary or county jail or by  both  such
    37  fine  and  imprisonment. (3) A person who operates a vessel in violation
    38  of paragraph (a) of this subdivision after being convicted two  or  more
    39  times  of  a  violation  of  any  subdivision of this section within the
    40  preceding ten years shall be guilty  of  a  misdemeanor,  and  shall  be
    41  punished by a fine of not less than seven hundred fifty dollars nor more
    42  than  fifteen  hundred  dollars, or by imprisonment of not more than one
    43  hundred eighty days in a penitentiary or county jail  or  by  both  such
    44  fine and imprisonment.
    45    § 9-c. Subdivision 5-a of section 49-a of the navigation law, as added
    46  by chapter 239 of the laws of 2016, is amended to read as follows:
    47    5-a.  Sentencing; previous convictions. When sentencing a person for a
    48  violation of paragraph (b), (c), (d) or (e) of subdivision two  of  this
    49  section pursuant to subparagraph two of paragraph (f) of subdivision two
    50  of  this  section,  the  court  shall consider any prior convictions the
    51  person may have for a violation of subdivision two, two-a, three,  four,
    52  or  four-a of section eleven hundred ninety-two of the vehicle and traf-
    53  fic law within the preceding ten years. When sentencing a person  for  a
    54  violation  of  paragraph (b), (c), (d) or (e) of subdivision two of this
    55  section pursuant to subparagraph three of paragraph (f)  of  subdivision
    56  two  of this section, the court shall consider any prior convictions the

        S. 854                             80

     1  person may have for a violation of subdivision two, two-a, three,  four,
     2  or  four-a of section eleven hundred ninety-two of the vehicle and traf-
     3  fic law within the preceding ten years. When sentencing a person  for  a
     4  violation  of  subparagraph  two of paragraph [(a)] (a-1) of subdivision
     5  two of this section, the court shall consider any prior convictions  the
     6  person  may  have  for  a violation of any subdivision of section eleven
     7  hundred ninety-two of the vehicle and traffic law within  the  preceding
     8  five  years.  When  sentencing  a person for a violation of subparagraph
     9  three of paragraph [(a)] (a-1) of subdivision two of this  section,  the
    10  court  shall  consider  any  prior convictions the person may have for a
    11  violation of any subdivision of section eleven hundred ninety-two of the
    12  vehicle and traffic law within the preceding ten years.
    13    § 9-d. Paragraph (a) of subdivision 1 of section 25.24 of  the  parks,
    14  recreation  and  historic preservation law, as amended by chapter 311 of
    15  the laws of 2007, is amended to read as follows:
    16    (a)(1) No person shall operate a snowmobile upon  a  street,  highway,
    17  public  trails,  lands,  bodies of water, or private property of another
    18  while his or her ability to operate such snowmobile is impaired  by  the
    19  consumption  of alcohol. (2) No person shall operate a snowmobile upon a
    20  street, highway, public trails, lands, bodies of water, or private prop-
    21  erty of another while his or her ability to operate such  snowmobile  is
    22  impaired  by  the use of cannabis or concentrated cannabis as defined in
    23  section 222.00 of the penal law.  (3) A violation  of  this  subdivision
    24  shall  be  an offense and shall be punishable by a fine of not less than
    25  two hundred fifty dollars nor more than three hundred fifty dollars,  or
    26  by  imprisonment  in  a  penitentiary  or  county jail for not more than
    27  fifteen days, or by both such fine and imprisonment. A person who  oper-
    28  ates a snowmobile in violation of this subdivision after being convicted
    29  of  a  violation of any subdivision of this section within the preceding
    30  five years shall be punished by a fine of not  less  than  five  hundred
    31  dollars nor more than fifteen hundred dollars, or by imprisonment of not
    32  more  than  thirty days in a penitentiary or county jail or by both such
    33  fine and imprisonment.
    34    § 10. Subdivision 9 of section 220.00 of the penal law, as amended  by
    35  chapter 664 of the laws of 1985, is amended to read as follows:
    36    9.  "Hallucinogen"  means any controlled substance listed in [schedule
    37  I(d)] paragraphs (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),
    38  (19),  (20) and (21) of subdivision (d) of schedule I of section thirty-
    39  three hundred six of the public health law.
    40    § 10-a. Subdivision 5 of section 220.00 of the penal law,  as  amended
    41  by chapter 537 of the laws of 1998, is amended to read as follows:
    42    5.  "Controlled  substance"  means any substance listed in schedule I,
    43  II, III, IV or V of section  thirty-three  hundred  six  of  the  public
    44  health law [other than marihuana, but including concentrated cannabis as
    45  defined  in  paragraph  (a)  of subdivision four of section thirty-three
    46  hundred two of such law].
    47    § 11. Subdivision 4 of section 220.06 of the penal law is REPEALED.
    48    § 12. Subdivision 10 of section 220.09 of the penal law is REPEALED.
    49    § 13. Subdivision 3 of section 220.34 of the penal law is REPEALED.
    50    § 14. Subdivision 6 of section 220.00 of the penal law is REPEALED.
    51    § 15. Article 221 of the penal law is REPEALED.
    52    § 16. The penal law is amended by adding a new article 222 to read  as
    53  follows:
    54                                 ARTICLE 222
    55                                  CANNABIS
    56  Section 222.00 Cannabis; definitions.

        S. 854                             81

     1          222.05 Personal use of cannabis.
     2          222.10 Restrictions on cannabis use.
     3          222.15 Personal cultivation of cannabis.
     4          222.20 Licensing   of   cannabis  production  and  distribution;
     5                   defense.
     6          222.25 Unlawful possession of cannabis.
     7          222.30 Criminal possession of cannabis in the third degree.
     8          222.35 Criminal possession of cannabis in the second degree.
     9          222.40 Criminal possession of cannabis in the first degree.
    10          222.45 Unlawful sale of cannabis.
    11          222.50 Criminal sale of cannabis in the third degree.
    12          222.55 Criminal sale of cannabis in the second degree.
    13          222.60 Criminal sale of cannabis in the first degree.
    14          222.65 Aggravated criminal sale of cannabis.
    15  § 222.00 Cannabis; definitions.
    16    1. "Cannabis" means all parts of the  plant  of  the  genus  Cannabis,
    17  whether  growing or not; the seeds thereof; the resin extracted from any
    18  part of the plant; and every compound,  manufacture,  salt,  derivative,
    19  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    20  include the mature stalks of the plant, fiber produced from the  stalks,
    21  oil  or cake made from the seeds of the plant, any other compound, manu-
    22  facture, salt, derivative, mixture, or preparation of the mature  stalks
    23  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    24  sterilized seed of the plant which is incapable of germination.  It does
    25  not include hemp, cannabinoid hemp or hemp extract as defined in section
    26  three of the cannabis law.
    27    2. "Concentrated cannabis" means:
    28    (a) the separated resin, whether crude or purified,  obtained  from  a
    29  plant of the genus Cannabis; or
    30    (b)  a  material,  preparation,  mixture,  compound or other substance
    31  which contains more than three percent by weight of delta-9  tetrahydro-
    32  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
    33  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
    34  numbering system.
    35    3.  For  the  purposes  of  this  article,  "sell" shall mean to sell,
    36  exchange or dispose of for compensation. "Sell" shall  not  include  the
    37  transfer of cannabis or concentrated cannabis between persons twenty-one
    38  years  of age or older without compensation in the quantities authorized
    39  in paragraph (b) of subdivision one of section 222.05 of this article.
    40    4. For the purposes of this article, "smoking"  shall  have  the  same
    41  meaning as that term is defined in section three of the cannabis law.
    42  § 222.05 Personal use of cannabis.
    43    Notwithstanding any other provision of law to the contrary:
    44    1.  The  following acts are lawful for persons twenty-one years of age
    45  or older:  (a) possessing, displaying, purchasing, obtaining, or  trans-
    46  porting  up  to  three ounces of cannabis and up to twenty-four grams of
    47  concentrated cannabis;
    48    (b) transferring, without compensation, to a person  twenty-one  years
    49  of  age  or  older, up to three ounces of cannabis and up to twenty-four
    50  grams of concentrated cannabis;
    51    (c) using, smoking, ingesting, or consuming cannabis  or  concentrated
    52  cannabis unless otherwise prohibited by state law;
    53    (d)  possessing, using, displaying, purchasing, obtaining, manufactur-
    54  ing, transporting or giving to any person twenty-one  years  of  age  or
    55  older cannabis paraphernalia or concentrated cannabis paraphernalia;

        S. 854                             82

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

        S. 854                             83

     1  § 222.15 Personal cultivation of cannabis.
     2    1.  Notwithstanding  the  provisions  of  section thirty-three hundred
     3  eighty-two of the public health law, and unless otherwise authorized  by
     4  law or regulation, no person may:
     5    (a)  plant,  cultivate, harvest, dry, process or possess more than six
     6  mature cannabis plants at any one time; or
     7    (b) plant, cultivate, harvest, dry, process or possess, within his  or
     8  her  private  residence,  or  on the grounds of his or her private resi-
     9  dence, more than six mature cannabis plants at any one time; or
    10    (c) being under the age of twenty-one, plant, cultivate, harvest, dry,
    11  process or possess cannabis plants.
    12    2. Any mature cannabis plant described in  paragraph  (a)  or  (b)  of
    13  subdivision  one  of this section, and any cannabis produced by any such
    14  cannabis  plant  or  plants  in  excess  of  three  ounces,  cultivated,
    15  harvested,  dried,  processed  or possessed pursuant to paragraph (a) or
    16  (b) of subdivision one of this section shall, unless  otherwise  author-
    17  ized by law or regulation, be stored except for incidental periods with-
    18  in such person's private residence or storage space or on the grounds of
    19  such person's private residence or storage space. Such person shall take
    20  reasonable  steps designed to assure that such cultivated cannabis is in
    21  a secured place.
    22    3. A county, town, city or village may enact and  enforce  regulations
    23  to  reasonably regulate the actions and conduct set forth in subdivision
    24  one of this section; provided that:
    25    (a) a violation of any such a regulation, as approved by such  county,
    26  town,  city  or  village enacting the regulation, may constitute no more
    27  than an infraction and may be punishable by no more than a discretionary
    28  civil penalty of two hundred dollars or less; and
    29    (b) no county, town, city or village may enact  or  enforce  any  such
    30  regulation  or regulations that may completely or essentially prohibit a
    31  person from engaging in the action or conduct authorized by  subdivision
    32  one of this section.
    33    A  violation  of subdivision one or two of this section may be subject
    34  to a civil penalty of up to one hundred twenty-five dollars.
    35  § 222.20 Licensing of cannabis production and distribution; defense.
    36    In any prosecution for an offense involving cannabis under this  arti-
    37  cle  or  an authorized local law, it is a defense that the defendant was
    38  engaged in such activity in compliance with the cannabis law.
    39  § 222.25 Unlawful possession of cannabis.
    40    A person is guilty of unlawful possession of cannabis when he  or  she
    41  knowingly  and  unlawfully  possesses  cannabis and such cannabis weighs
    42  more than three ounces or concentrated cannabis  and  such  concentrated
    43  cannabis weighs more than twenty-four grams.
    44    Unlawful possession of cannabis is a violation punishable by a fine of
    45  not more than one hundred twenty-five dollars.
    46  § 222.30 Criminal possession of cannabis in the third degree.
    47    A  person  is  guilty  of criminal possession of cannabis in the third
    48  degree when he or she knowingly and unlawfully possesses:
    49    1. cannabis and such cannabis weighs more than sixteen ounces; or
    50    2. concentrated cannabis and such concentrated  cannabis  weighs  more
    51  than five ounces.
    52    Criminal  possession  of  cannabis  in  the  third degree is a class A
    53  misdemeanor.
    54  § 222.35 Criminal possession of cannabis in the second degree.
    55    A person is guilty of criminal possession of cannabis  in  the  second
    56  degree when he or she knowingly and unlawfully possesses:

        S. 854                             84

     1    1. cannabis and such cannabis weighs more than five pounds; or
     2    2.  concentrated  cannabis  and such concentrated cannabis weighs more
     3  than two pounds.
     4    Criminal possession of cannabis in the second  degree  is  a  class  E
     5  felony.
     6  § 222.40 Criminal possession of cannabis in the first degree.
     7    A  person  is  guilty  of criminal possession of cannabis in the first
     8  degree when he or she knowingly and unlawfully possesses:
     9    1. cannabis and such cannabis weighs more than ten pounds; or
    10    2. concentrated cannabis and such concentrated  cannabis  weighs  more
    11  than four pounds.
    12    Criminal possession of cannabis in the first degree is a class D felo-
    13  ny.
    14  § 222.45 Unlawful sale of cannabis.
    15    A  person  is guilty of unlawful sale of cannabis when he or she know-
    16  ingly and unlawfully sells cannabis or concentrated cannabis.
    17    Unlawful sale of cannabis is a violation punishable by a fine  of  not
    18  more than two hundred fifty dollars.
    19  § 222.50 Criminal sale of cannabis in the third degree.
    20    A  person  is  guilty of criminal sale of cannabis in the third degree
    21  when:
    22    1. he or she knowingly and unlawfully sells more than three ounces  of
    23  cannabis or more than twenty-four grams of concentrated cannabis; or
    24    2.  being  twenty-one  years  of age or older, he or she knowingly and
    25  unlawfully sells or gives, or causes to be given or  sold,  cannabis  or
    26  concentrated  cannabis  to  a  person less than twenty-one years of age;
    27  except that in any prosecution under this subdivision, it is  a  defense
    28  that the defendant was less than three years older than the person under
    29  the age of twenty-one at the time of the offense. This subdivision shall
    30  not apply to designated caregivers, practitioners, employees of a regis-
    31  tered  organization  or  employees  of  a  designated caregiver facility
    32  acting in compliance with article three of the cannabis law.
    33    Criminal sale of cannabis in the third degree is a class  A  misdemea-
    34  nor.
    35  § 222.55 Criminal sale of cannabis in the second degree.
    36    A  person  is guilty of criminal sale of cannabis in the second degree
    37  when:
    38    1. he or she knowingly and unlawfully sells more than  sixteen  ounces
    39  of cannabis or more than five ounces of concentrated cannabis; or
    40    2.  being  twenty-one  years  of age or older, he or she knowingly and
    41  unlawfully sells or gives, or causes to be  given  or  sold,  more  than
    42  three  ounces of cannabis or more than twenty-four grams of concentrated
    43  cannabis to a person less than eighteen years of age.  This  subdivision
    44  shall  not apply to designated caregivers, practitioners, employees of a
    45  registered organization or employees of a designated caregiver  facility
    46  acting in compliance with article three of the cannabis law.
    47    Criminal sale of cannabis in the second degree is a class E felony.
    48  § 222.60 Criminal sale of cannabis in the first degree.
    49    A  person  is  guilty of criminal sale of cannabis in the first degree
    50  when he or she knowingly and unlawfully sells more than five  pounds  of
    51  cannabis or more than two pounds of concentrated cannabis.
    52    Criminal sale of cannabis in the first degree is a class D felony.
    53  § 222.65 Aggravated criminal sale of cannabis.
    54    A  person is guilty of aggravated criminal sale of cannabis when he or
    55  she knowingly and unlawfully sells  cannabis  or  concentrated  cannabis
    56  weighing one hundred pounds or more.

        S. 854                             85

     1    Aggravated criminal sale of cannabis is a class C felony.
     2    § 17. Paragraph (k) of subdivision 3 of section 160.50 of the criminal
     3  procedure law, as amended by chapter 132 of the laws of 2019, is amended
     4  to read as follows:
     5    (k)  (i)  The  conviction  was  for a violation of article two hundred
     6  twenty or section 240.36 of the penal law prior to the effective date of
     7  article two hundred twenty-one of the penal law, and the sole controlled
     8  substance involved was marihuana and  the  conviction  was  only  for  a
     9  misdemeanor and/or violation [or violations]; or
    10    (ii)  the  conviction  is  for an offense defined in section 221.05 or
    11  221.10 of the penal law prior to the effective date of [the] chapter one
    12  hundred thirty-two of the laws of two thousand  nineteen  [that  amended
    13  this paragraph]; or
    14    (iii)  the  conviction  is  for an offense defined in [section] former
    15  sections 221.05 [or], 221.10, 221.15, 221.20, 221.35, or 221.40  of  the
    16  penal law; or
    17    (iv) the conviction was for a violation of section 220.03 or 220.06 of
    18  the  penal law prior to the effective date of the chapter of the laws of
    19  two thousand twenty-one  that  amended  this  paragraph,  and  the  sole
    20  controlled substance involved was concentrated cannabis; or
    21    (v)  the  conviction  is  for  an  offense defined in sections 222.10,
    22  222.15, 222.25 or 222.45 of the penal law.
    23    No defendant shall be required or permitted to waive  eligibility  for
    24  sealing  or  expungement  pursuant  to this section as part of a plea of
    25  guilty, sentence  or  any  agreement  related  to  a  conviction  for  a
    26  violation  of  [section  221.05]  sections  222.10,  222.15,  222.25  or
    27  [section 221.10] 222.45 of the penal law and any such  waiver  shall  be
    28  deemed void and wholly unenforceable.
    29    § 18. Paragraph (k) of subdivision 1 of section 440.10 of the criminal
    30  procedure  law,  as added by chapter 132 of the laws of 2019, is amended
    31  to read as follows:
    32    (k) The judgment occurred prior to the effective date of the  laws  of
    33  two  thousand twenty-one that amended this paragraph and is a conviction
    34  for an offense as defined in subparagraphs (i) [or], (ii), (iii) or (iv)
    35  of paragraph (k) of subdivision three of section 160.50 of this part, in
    36  which case the court shall presume that a conviction  by  plea  for  the
    37  aforementioned offenses was not knowing, voluntary and intelligent if it
    38  has  severe or ongoing consequences, including but not limited to poten-
    39  tial or actual  immigration  consequences,  and  shall  presume  that  a
    40  conviction  by verdict for the aforementioned offenses constitutes cruel
    41  and unusual punishment under section five of article one  of  the  state
    42  constitution,  based  on  those consequences. The people may rebut these
    43  presumptions.
    44    § 19. Intentionally omitted.
    45    § 20. Intentionally omitted.
    46    § 21. Intentionally omitted.
    47    § 22. Subdivision 1 of section 170.56 of the criminal  procedure  law,
    48  as  amended  by  chapter  360 of the laws of 1977, is amended to read as
    49  follows:
    50    1.  Upon or after arraignment in a local criminal court upon an infor-
    51  mation, a prosecutor's information or a misdemeanor complaint, where the
    52  sole remaining count or counts  charge  a  violation  or  violations  of
    53  section  [221.05,  221.10,  221.15,  221.35  or  221.40] 220.10, 222.15,
    54  222.25, 222.30, 222.45 or 222.50 of the penal law, or upon summons for a
    55  nuisance offense under section sixty-five-c of  the  alcoholic  beverage
    56  control  law  and  before  the  entry  of  a  plea  of guilty thereto or

        S. 854                             86

     1  commencement of  a trial thereof, the court, upon motion of a defendant,
     2  may order that all proceedings be suspended and the action adjourned  in
     3  contemplation of dismissal, or upon a finding that adjournment would not
     4  be  necessary  or appropriate and the setting forth in the record of the
     5  reasons for such findings, may dismiss in  furtherance  of  justice  the
     6  accusatory  instrument;  provided, however, that the court may not order
     7  such adjournment in contemplation of dismissal or dismiss the accusatory
     8  instrument if: (a)  the  defendant  has  previously  been  granted  such
     9  adjournment  in  contemplation  of  dismissal,  or (b) the defendant has
    10  previously been granted a dismissal  under  this  section,  or  (c)  the
    11  defendant  has  previously  been  convicted  of  any  offense  involving
    12  controlled  substances,  or  (d)  the  defendant  has  previously   been
    13  convicted  of  a crime and the district attorney does not consent or (e)
    14  the defendant has previously been adjudicated a youthful offender on the
    15  basis of any  act  or  acts  involving  controlled  substances  and  the
    16  district attorney does not consent.  Notwithstanding the limitations set
    17  forth  in  this subdivision, the court may order that all proceedings be
    18  suspended and the action adjourned in contemplation of  dismissal  based
    19  upon a finding of exceptional circumstances. For purposes of this subdi-
    20  vision, exceptional circumstances exist when, regardless of the ultimate
    21  disposition  of  the  case,  the  entry of a plea of guilty is likely to
    22  result in severe or ongoing consequences, including, but not limited to,
    23  potential or actual immigration consequences.
    24    § 23. Intentionally omitted.
    25    § 24. The criminal procedure law is amended by adding  a  new  section
    26  440.46-a to read as follows:
    27  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    28              offenses.
    29    1. When a person is serving a sentence for a conviction in this state,
    30  whether  by  trial  verdict  or  guilty  plea,  under former article two
    31  hundred twenty-one of the  penal  law,  and  such  person's  conduct  as
    32  alleged  in the accusatory instrument and/or shown by the guilty plea or
    33  trial verdict would not have been a  crime  under  article  two  hundred
    34  twenty-two  of  the  penal  law, had such article two hundred twenty-two
    35  rather than former article two hundred twenty-one of the penal law  been
    36  in  effect  at  the  time of such conduct, then the chief administrative
    37  judge of the state of New York shall, in accordance with  this  section,
    38  automatically  vacate, dismiss and expunge such conviction in accordance
    39  with section 160.50 of this chapter, and the office  of  court  adminis-
    40  tration  shall immediately notify the state division of criminal justice
    41  services, state department of corrections and community supervision  and
    42  the  appropriate  local  correctional  facility  which shall immediately
    43  effectuate the appropriate relief. Such notification to the division  of
    44  criminal  justice services shall also direct that such agency notify all
    45  relevant police and law enforcement agencies of their  duty  to  destroy
    46  and/or  mark  records  related  to  such case in accordance with section
    47  160.50 of this chapter. Nothing in this section shall prevent  a  person
    48  who  believes  his  or  her  sentence  is required by this section to be
    49  vacated, dismissed and/or expunged from filing a petition with the court
    50  to effectuate all appropriate relief.
    51    2. (a) When a person is serving or has completed  serving  a  sentence
    52  for a conviction in this state, whether by trial verdict or guilty plea,
    53  under  former  article two hundred twenty-one of the penal law, and such
    54  person's conduct as alleged in the accusatory instrument and/or shown by
    55  the guilty plea or trial verdict, or shown  by  other  information:  (i)
    56  would  not have been a crime under article two hundred twenty-two of the

        S. 854                             87

     1  penal law, had such article two hundred twenty-two  rather  than  former
     2  article  two  hundred  twenty-one of the penal law been in effect at the
     3  time of such conduct; or (ii) under such circumstances such person would
     4  have  been  guilty of a lesser or potentially less onerous offense under
     5  such article two hundred twenty-two than such former article two hundred
     6  twenty-one of the penal law; then such person may petition the court  of
     7  conviction pursuant to this article for vacatur of such conviction.
     8    (b)  Upon  receiving  a served and filed motion under paragraph (a) of
     9  this subdivision, the court  shall  presume  the  movant  satisfies  the
    10  criteria in such paragraph (a) and shall grant the motion to vacate such
    11  conviction  unless  the  party  opposing the motion proves, by clear and
    12  convincing evidence, that the movant does not satisfy the  criteria.  If
    13  the  movant  satisfies the criteria, the court shall grant the motion to
    14  vacate the conviction: (i) if the conviction was by plea of  guilty,  on
    15  grounds  that such plea was not knowing, voluntary and intelligent owing
    16  to ongoing consequences; and (ii) if the conviction was  by  verdict  or
    17  otherwise,  on  grounds  that  such  conviction and sentence constitutes
    18  cruel and unusual punishment under the state constitution owing to  such
    19  ongoing  consequences;  and  may,  if the petition meets the criteria in
    20  subparagraph (i) of paragraph (a) of this subdivision,  after  affording
    21  the parties an opportunity to be heard and present evidence, substitute,
    22  unless  it is not in the interests of justice to do so, a conviction for
    23  an appropriate lesser offense under article two  hundred  twenty-two  of
    24  the penal law.
    25    (c)  In  the event of any vacatur and/or substitution pursuant to this
    26  subdivision, the office of court administration shall immediately notify
    27  the state division of criminal justice services concerning such determi-
    28  nation. Such notification to the division of criminal  justice  services
    29  shall  also  direct  that such agency notify all relevant police and law
    30  enforcement agencies of  their  duty  to  destroy  and/or  mark  records
    31  related  to  such case in accordance with section 160.50 of this chapter
    32  or, where conviction for a crime is substituted pursuant to this  subdi-
    33  vision, update such agencies' records accordingly.
    34    3.  Under  no circumstances may substitution under this section result
    35  in the imposition of a term of imprisonment or  sentencing  term,  obli-
    36  gation  or condition that is in any way either harsher than the original
    37  sentence or harsher than the sentence  authorized  for  any  substituted
    38  lesser offense.
    39    4.  (a)  If  the  judge  who  originally sentenced the movant for such
    40  offense is not reasonably available, then the presiding judge  for  such
    41  court shall designate another judge authorized to act in the appropriate
    42  jurisdiction to determine the petition or application.
    43    (b)  Unless  requested by the movant, no hearing is necessary to grant
    44  an application filed under subdivision two of this section.
    45    (c) When a felony conviction is vacated pursuant to this section and a
    46  lesser offense that is a misdemeanor or  violation  is  substituted  for
    47  such  conviction,  such lesser offense shall be considered a misdemeanor
    48  or violation, as the case may be, for all purposes. When  a  misdemeanor
    49  conviction is vacated pursuant to this section and a lesser offense that
    50  is  a  violation is substituted for such conviction, such lesser offense
    51  shall be considered a violation for all purposes.
    52    (d) Nothing in this section is intended to or shall diminish or  abro-
    53  gate  any  rights  or remedies otherwise available to a defendant, peti-
    54  tioner or applicant. Relief under this  section  is  available  notwith-
    55  standing  that  the  judgment  was  for  a  violation of former sections
    56  221.05, 221.10, 221.15, 221.20, 221.35 or 221.40 of  the  penal  law  in

        S. 854                             88

     1  effect prior to the effective date of this paragraph and that the under-
     2  lying  action  or  proceeding  has  already  been vacated, dismissed and
     3  expunged.
     4    (e)  Nothing in this and related sections of law is intended to dimin-
     5  ish or abrogate the finality of judgments in any case not falling within
     6  the purview of this section.
     7    (f) The provisions of  this  section  shall  be  available,  used  and
     8  applied  in parallel fashion by the family court and the criminal courts
     9  to juvenile delinquency adjudications, adolescent offender adjudications
    10  and youthful offender adjudications.
    11    (g) The chief administrator of the courts shall promulgate all  neces-
    12  sary  rules  and make available all necessary forms to enable the filing
    13  of the petitions and applications provided in this section no later than
    14  sixty days following the effective date of this section.  All  sentences
    15  eligible  for  automatic  vacatur, dismissal and expungement pursuant to
    16  subdivision one of this section shall be  identified  and  the  required
    17  entities notified within one year of the effective date of this section.
    18    § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
    19  procedure  law, as amended by chapter 37 of the laws of 2014, is amended
    20  to read as follows:
    21    (c) Criminal possession of  a  controlled  substance  in  the  seventh
    22  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
    23  possession of a controlled substance in the fifth degree as  defined  in
    24  section  220.06  of  the  penal law, criminal possession of a controlled
    25  substance in the fourth degree as defined in section 220.09 of the penal
    26  law, criminal possession of a controlled substance in the  third  degree
    27  as  defined in section 220.16 of the penal law, criminal possession of a
    28  controlled substance in the second degree as defined in  section  220.18
    29  of  the  penal law, criminal possession of a controlled substance in the
    30  first degree as defined in section 220.21 of  the  penal  law,  criminal
    31  sale of a controlled substance in the fifth degree as defined in section
    32  220.31  of the penal law, criminal sale of a controlled substance in the
    33  fourth degree as defined in section 220.34 of the  penal  law,  criminal
    34  sale of a controlled substance in the third degree as defined in section
    35  220.39  of the penal law, criminal sale of a controlled substance in the
    36  second degree as defined in section 220.41 of the  penal  law,  criminal
    37  sale of a controlled substance in the first degree as defined in section
    38  220.43  of  the penal law, criminally possessing a hypodermic instrument
    39  as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
    40  prescription  for  a controlled substance or a controlled substance by a
    41  practitioner or pharmacist as defined in section  220.65  of  the  penal
    42  law,  criminal  possession  of methamphetamine manufacturing material in
    43  the second degree as defined in section 220.70 of the penal law,  crimi-
    44  nal  possession  of  methamphetamine manufacturing material in the first
    45  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
    46  possession of precursors of methamphetamine as defined in section 220.72
    47  of  the  penal law, unlawful manufacture of methamphetamine in the third
    48  degree as defined in section 220.73 of the penal law, unlawful  manufac-
    49  ture  of  methamphetamine  in  the  second  degree as defined in section
    50  220.74 of the penal law, unlawful manufacture of methamphetamine in  the
    51  first  degree  as  defined  in section 220.75 of the penal law, unlawful
    52  disposal of methamphetamine laboratory material as  defined  in  section
    53  220.76  of  the penal law, operating as a major trafficker as defined in
    54  section 220.77 of the penal law, [criminal possession  of  marihuana  in
    55  the first degree as defined in section 221.30 of the penal law, criminal
    56  sale  of  marihuana  in the first degree as defined in section 221.55 of

        S. 854                             89

     1  the penal law,] promoting gambling in the second degree  as  defined  in
     2  section  225.05 of the penal law, promoting gambling in the first degree
     3  as defined in section 225.10 of the penal law,  possession  of  gambling
     4  records  in  the second degree as defined in section 225.15 of the penal
     5  law, possession of gambling records in the first degree  as  defined  in
     6  section  225.20 of the penal law, and possession of a gambling device as
     7  defined in section 225.30 of the penal law;
     8    § 26. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
     9  9 of section 1310 of the civil practice law and  rules,  paragraphs  (b)
    10  and  (c)  of subdivision 4-b as added by chapter 655 of the laws of 1990
    11  and subdivisions 6 and 9 as added by chapter 669 of the  laws  of  1984,
    12  are amended to read as follows:
    13    (b)  on  three  or  more occasions, engaging in conduct constituting a
    14  violation of any of the felonies  defined  in  section  220.09,  220.16,
    15  220.18,  220.21, 220.31, 220.34, 220.39, 220.41[,] or 220.43 [or 221.55]
    16  of the penal law, which violations do not constitute a  single  criminal
    17  offense  as  defined in subdivision one of section 40.10 of the criminal
    18  procedure law, or a single criminal transaction, as defined in paragraph
    19  (a) of subdivision two of section 40.10 of the criminal  procedure  law,
    20  and  at  least one of which resulted in a conviction of such offense, or
    21  where the accusatory instrument charges one or more  of  such  felonies,
    22  conviction  upon  a  plea  of  guilty to a felony for which such plea is
    23  otherwise authorized by law; or
    24    (c) a conviction of a  person  for  a  violation  of  section  220.09,
    25  220.16,  220.34 or 220.39 of the penal law, [or a conviction of a crimi-
    26  nal defendant for a violation of section 221.30 of the  penal  law,]  or
    27  where the accusatory instrument charges any such felony, conviction upon
    28  a  plea of guilty to a felony for which the plea is otherwise authorized
    29  by law, together with evidence which: (i) provides  substantial  indicia
    30  that  the  defendant  used  the  real property to engage in a continual,
    31  ongoing course of conduct involving the  unlawful  mixing,  compounding,
    32  manufacturing,  warehousing,  or  packaging of controlled substances [or
    33  where the conviction is for a violation of section 221.30 of  the  penal
    34  law,  marijuana,]  as part of an illegal trade or business for gain; and
    35  (ii) establishes, where the conviction is for possession of a controlled
    36  substance [or where the conviction is for a violation of section  221.30
    37  of  the  penal law, marijuana], that such possession was with the intent
    38  to sell it.
    39    [6. "Pre-conviction forfeiture crime" means only a felony  defined  in
    40  article  two  hundred  twenty  or  section 221.30 or 221.55 of the penal
    41  law.]
    42    9. "Criminal defendant" means a person who has criminal liability  for
    43  a  crime  defined in [subdivisions] subdivision five [and six hereof] of
    44  this section. For purposes  of  this  article,  a  person  has  criminal
    45  liability  when [(a)] he has been convicted of a post-conviction forfei-
    46  ture crime[, or (b) the claiming authority proves by clear and  convinc-
    47  ing evidence that such person has committed an act in violation of arti-
    48  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
    49    §  27.  Subdivision 13 of section 89-f of the general business law, as
    50  added by chapter 336 of the laws of 1992, is amended to read as follows:
    51    13. "Serious offense" shall mean any  felony  involving  the  offenses
    52  enumerated  in  the  closing  paragraph  of this subdivision; a criminal
    53  solicitation of or a conspiracy to commit or an attempt to commit  or  a
    54  criminal  facilitation  of a felony involving the offenses enumerated in
    55  the closing paragraph of this subdivision, which criminal  solicitation,
    56  conspiracy, attempt or criminal facilitation itself constitutes a felony

        S. 854                             90

     1  or  any  offense  in  any  other jurisdiction which if committed in this
     2  state would constitute a felony; any offense in any  other  jurisdiction
     3  which if committed in this state would constitute a felony provided that
     4  for the purposes of this article, none of the following shall be consid-
     5  ered  criminal  convictions  or  reported  as such: (i) a conviction for
     6  which an executive pardon has been issued pursuant to the executive law;
     7  (ii) a conviction which has been vacated  and  replaced  by  a  youthful
     8  offender  finding pursuant to article seven hundred twenty of the crimi-
     9  nal procedure law, or the applicable provisions  of  law  of  any  other
    10  jurisdiction;  or  (iii)  a  conviction  the  records of which have been
    11  sealed pursuant to the applicable provisions of the laws of  this  state
    12  or  of  any  other  jurisdiction;  and (iv) a conviction for which other
    13  evidence of successful rehabilitation to remove the disability has  been
    14  issued.
    15    Felonies involving: assault, aggravated assault and reckless endanger-
    16  ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
    17  manslaughter and murder pursuant to article one hundred twenty-five; sex
    18  offenses pursuant to article one hundred thirty; unlawful  imprisonment,
    19  kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
    20  criminal trespass and burglary pursuant to article  one  hundred  forty;
    21  criminal  mischief,  criminal  tampering  and  tampering with a consumer
    22  product pursuant to article one hundred forty-five;  arson  pursuant  to
    23  article one hundred fifty; larceny and offenses involving theft pursuant
    24  to article one hundred fifty-five; offenses involving computers pursuant
    25  to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
    26  hundred sixty; criminal possession of stolen property pursuant to  arti-
    27  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
    28  article one hundred seventy; involving false written statements pursuant
    29  to article one hundred seventy-five; commercial bribing  and  commercial
    30  bribe  receiving pursuant to article one hundred eighty; criminal imper-
    31  sonation and scheme to defraud pursuant to article one  hundred  ninety;
    32  bribery involving public servants and related offenses pursuant to arti-
    33  cle  two  hundred;  perjury and related offenses pursuant to article two
    34  hundred ten; tampering with a witness, intimidating a victim or  witness
    35  and  tampering  with  physical  evidence pursuant to article two hundred
    36  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
    37  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    38  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    39  220.41,  220.43 and 220.44; criminal sale of [marijuana] cannabis pursu-
    40  ant to sections [221.45, 221.50 and 221.55] 222.55, 222.60  and  222.65;
    41  riot  in  the  first  degree, aggravated harassment in the first degree,
    42  criminal nuisance in the first degree and falsely reporting an  incident
    43  in the second or first degree pursuant to article two hundred forty; and
    44  crimes  against public safety pursuant to article two hundred sixty-five
    45  of the penal law.
    46    § 28. Paragraph (f) of subdivision 2 of section  850  of  the  general
    47  business law is REPEALED.
    48    §  29.  Paragraph  (h)  of subdivision 2 of section 850 of the general
    49  business law, as amended by chapter 812 of the laws of 1980, is  amended
    50  to read as follows:
    51    (h)  Objects, used or designed for the purpose of ingesting, inhaling,
    52  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
    53  into the human body.
    54    § 30. Subdivision 7 of section 995 of the executive law, as amended by
    55  chapter 19 of the laws of 2012, is amended to read as follows:

        S. 854                             91

     1    7. "Designated offender"  means  a  person  convicted  of  any  felony
     2  defined  in  any  chapter  of  the  laws of the state or any misdemeanor
     3  defined in the penal law [except that  where  the  person  is  convicted
     4  under  section  221.10  of  the penal law, only a person convicted under
     5  subdivision two of such section, or a person convicted under subdivision
     6  one  of  such  section  who  stands previously convicted of any crime as
     7  defined in subdivision six of section 10.00 of the penal law].
     8    § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
     9  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    10  56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
    11  laws of 1990, are amended to read as follows:
    12    (b) three or more violations of any of the felonies defined in section
    13  220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
    14  220.43[,] or 220.77[, or 221.55] of this chapter,  which  violations  do
    15  not  constitute  a single criminal offense as defined in subdivision one
    16  of section 40.10 of the criminal procedure law,  or  a  single  criminal
    17  transaction,  as  defined in paragraph (a) of subdivision two of section
    18  40.10 of the criminal procedure law, and at least one of which  resulted
    19  in  a  conviction  of  such  offense, or where the accusatory instrument
    20  charges one or more of such felonies, conviction upon a plea  of  guilty
    21  to a felony for which such plea is otherwise authorized by law; or
    22    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    23  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
    24  accusatory instrument charges any such felony, conviction upon a plea of
    25  guilty  to  a  felony for which the plea is otherwise authorized by law,
    26  together with evidence which: (i) provides substantial indicia that  the
    27  defendant  used  the  real  property  to  engage in a continual, ongoing
    28  course of conduct involving the unlawful mixing,  compounding,  manufac-
    29  turing, warehousing, or packaging of controlled substances [or where the
    30  conviction  is  for a violation of section 221.30 of this chapter, mari-
    31  juana] as part of an illegal trade or business for gain; and (ii) estab-
    32  lishes, where the conviction is for possession of a controlled substance
    33  [or where the conviction is for a violation of section  221.30  of  this
    34  chapter,  marijuana],  that  such possession was with the intent to sell
    35  it.
    36    § 32. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
    37  and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
    38  amended to read as follows:
    39    (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
    40  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    41  of  this  section  that  result in disqualification for a period of five
    42  years shall include a conviction under sections 100.10, 105.13,  115.05,
    43  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    44  125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
    45  140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
    46  220.16, 220.31, 220.34, 220.60, 220.65, [221.30, 221.50, 221.55,] subdi-
    47  vision two of section 222.50, subdivision two of section 222.55, 230.00,
    48  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,  235.06,
    49  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision  two of section
    50  260.20 and sections 260.25,  265.02,  265.03,  265.08,  265.09,  265.10,
    51  265.12, 265.35 of the penal law or an attempt to commit any of the afor-
    52  esaid  offenses  under  section  110.00 of the penal law, or any similar
    53  offenses committed under a former section  of  the  penal  law,  or  any
    54  offenses  committed  under a former section of the penal law which would
    55  constitute violations of the aforesaid sections of the penal law, or any

        S. 854                             92

     1  offenses committed outside this state which would constitute  violations
     2  of the aforesaid sections of the penal law.
     3    §  33.  The  opening  paragraph  of  paragraph (a) of subdivision 2 of
     4  section 1194 of the vehicle and traffic law, as amended by  chapter  196
     5  of the laws of 1996, is amended to read as follows:
     6    When authorized. Any person who operates a motor vehicle in this state
     7  shall  be deemed to have given consent to a chemical test of one or more
     8  of the following:   breath, blood[,] or  urine[,  or  saliva,]  for  the
     9  purpose  of  determining  the  alcoholic and/or drug content, other than
    10  cannabis content  including  but  not  limited  to  tetrahydrocannabinol
    11  content,  of  the blood provided that such test is administered by or at
    12  the direction of a police officer with respect to  a  chemical  test  of
    13  breath,  urine [or saliva] or, with respect to a chemical test of blood,
    14  at the direction of a police officer:
    15    § 34. The article heading of article 20-B of the tax law, as added  by
    16  chapter 90 of the laws of 2014, is amended to read as follows:
    17                  EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
    18    §  35.  Subdivision  1  of section 171-a of the tax law, as amended by
    19  section 3 of part XX of chapter 59 of the laws of 2019,  is  amended  to
    20  read as follows:
    21    1.  All  taxes,  interest, penalties and fees collected or received by
    22  the commissioner or the commissioner's duly authorized agent under arti-
    23  cles nine (except section one hundred eighty-two-a thereof and except as
    24  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    25  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    26  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    27  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    28  (except as otherwise provided in section four hundred eighty-two  there-
    29  of),  twenty-B, twenty-C, twenty-D, twenty-one, twenty-two, twenty-four,
    30  twenty-six, twenty-eight (except as otherwise provided in section eleven
    31  hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
    32  nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
    33  hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
    34  chapter  shall  be  deposited daily in one account with such responsible
    35  banks, banking houses or trust companies as may  be  designated  by  the
    36  comptroller,  to  the  credit of the comptroller. Such an account may be
    37  established in one or more of such depositories. Such deposits shall  be
    38  kept  separate  and  apart from all other money in the possession of the
    39  comptroller. The comptroller shall require adequate  security  from  all
    40  such depositories. Of the total revenue collected or received under such
    41  articles  of  this  chapter,  the  comptroller shall retain in the comp-
    42  troller's hands such amount as the  commissioner  may  determine  to  be
    43  necessary  for  refunds  or  reimbursements  under such articles of this
    44  chapter out of which amount the comptroller shall  pay  any  refunds  or
    45  reimbursements to which taxpayers shall be entitled under the provisions
    46  of  such  articles of this chapter. The commissioner and the comptroller
    47  shall maintain a system  of  accounts  showing  the  amount  of  revenue
    48  collected  or  received from each of the taxes imposed by such articles.
    49  The comptroller, after reserving the  amount  to  pay  such  refunds  or
    50  reimbursements,  shall,  on  or  before the tenth day of each month, pay
    51  into the state treasury to the credit of the general  fund  all  revenue
    52  deposited  under  this  section  during the preceding calendar month and
    53  remaining to the comptroller's credit on the last day of such  preceding
    54  month, (i) except that the comptroller shall pay to the state department
    55  of social services that amount of overpayments of tax imposed by article
    56  twenty-two  of  this  chapter  and  the interest on such amount which is

        S. 854                             93

     1  certified to the comptroller by the commissioner as  the  amount  to  be
     2  credited against past-due support pursuant to subdivision six of section
     3  one  hundred  seventy-one-c  of  this  article, (ii) and except that the
     4  comptroller  shall  pay  to the New York state higher education services
     5  corporation and the state university of New York or the city  university
     6  of  New  York respectively that amount of overpayments of tax imposed by
     7  article twenty-two of this chapter and the interest on such amount which
     8  is certified to the comptroller by the commissioner as the amount to  be
     9  credited  against  the  amount  of  defaults  in repayment of guaranteed
    10  student loans and state university loans or city university loans pursu-
    11  ant to subdivision five of section one hundred seventy-one-d and  subdi-
    12  vision  six  of section one hundred seventy-one-e of this article, (iii)
    13  and except further that, notwithstanding any law, the comptroller  shall
    14  credit   to   the   revenue   arrearage  account,  pursuant  to  section
    15  ninety-one-a of the state finance law, that amount of overpayment of tax
    16  imposed by article nine, nine-A, twenty-two, thirty, thirty-A,  thirty-B
    17  or  thirty-three  of  this  chapter,  and any interest thereon, which is
    18  certified to the comptroller by the commissioner as  the  amount  to  be
    19  credited  against  a  past-due  legally enforceable debt owed to a state
    20  agency pursuant to paragraph (a)  of  subdivision  six  of  section  one
    21  hundred seventy-one-f of this article, provided, however, he shall cred-
    22  it  to the special offset fiduciary account, pursuant to section ninety-
    23  one-c of the state finance law, any such amount creditable as a  liabil-
    24  ity  as  set  forth  in  paragraph (b) of subdivision six of section one
    25  hundred seventy-one-f of this article, (iv) and except further that  the
    26  comptroller shall pay to the city of New York that amount of overpayment
    27  of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
    28  thirty-B or thirty-three of this chapter and any interest  thereon  that
    29  is  certified to the comptroller by the commissioner as the amount to be
    30  credited against city of New York tax warrant judgment debt pursuant  to
    31  section  one  hundred  seventy-one-l  of  this  article,  (v) and except
    32  further that the comptroller shall pay to a  non-obligated  spouse  that
    33  amount of overpayment of tax imposed by article twenty-two of this chap-
    34  ter  and the interest on such amount which has been credited pursuant to
    35  section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
    36  hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
    37  ty-one-l of this article and which is certified to  the  comptroller  by
    38  the commissioner as the amount due such non-obligated spouse pursuant to
    39  paragraph six of subsection (b) of section six hundred fifty-one of this
    40  chapter;  and  (vi) the comptroller shall deduct a like amount which the
    41  comptroller shall pay into the treasury to the  credit  of  the  general
    42  fund  from  amounts  subsequently  payable  to  the department of social
    43  services, the state university of New York, the city university  of  New
    44  York,  or  the  higher  education  services  corporation, or the revenue
    45  arrearage account  or  special  offset  fiduciary  account  pursuant  to
    46  section  ninety-one-a  or  ninety-one-c of the state finance law, as the
    47  case may be, whichever had been credited the amount originally  withheld
    48  from  such  overpayment,  and  (vii)  with respect to amounts originally
    49  withheld from such overpayment pursuant to section one hundred  seventy-
    50  one-l  of this article and paid to the city of New York, the comptroller
    51  shall collect a like amount from the city of New York.
    52    § 36. Intentionally omitted.
    53    § 37. Section 490 of the tax law, as added by chapter 90 of  the  laws
    54  of 2014, is amended to read as follows:
    55    §  490.  [Definitions]  Excise  tax on medical cannabis.   1. (a) [All
    56  definitions of terms applicable to title five-A of article  thirty-three

        S. 854                             94

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

        S. 854                             95

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

        S. 854                             96

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

        S. 854                             97

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

    18                                ARTICLE 20-C
    19                     TAX ON ADULT-USE CANNABIS PRODUCTS
    20  Section 492. Definitions.
    21          493. Tax on cannabis.
    22          494. Registration and renewal.
    23          495. Returns and payment of tax.
    24          496. Returns to be kept secret.
    25    § 492. Definitions. For purposes of this article, the following  defi-
    26  nitions shall apply:
    27    (a)  "Cannabis" shall have the same meaning as in section three of the
    28  cannabis law.  For purposes of this article, cannabis does  not  include
    29  medical  cannabis  or  cannabinoid  hemp  and hemp extract as defined in
    30  section three of the cannabis law.
    31    (b) "Cannabis product" or "adult-use cannabis product" means a  canna-
    32  bis  product  as  defined  in  section  three  of  the cannabis law. For
    33  purposes of this article, under no circumstances shall adult-use  canna-
    34  bis  product  include  medical  cannabis  or  cannabinoid  hemp and hemp
    35  extract as defined in section three of the cannabis law.
    36    (c) "Person" means every individual,  partnership,  limited  liability
    37  company, society, association, joint stock company, corporation, estate,
    38  receiver,  trustee,  assignee, referee, and any other person acting in a
    39  fiduciary or representative capacity, whether appointed by  a  court  or
    40  otherwise, and any combination of the foregoing.
    41    (d)  "Retail dispensary" means a dispensary licensed to sell adult-use
    42  cannabis products pursuant to section seventy-two of the cannabis law.
    43    (e) "Transfer" means  to  grant,  convey,  hand  over,  assign,  sell,
    44  exchange  or  barter,  in  any  manner  or by any means, with or without
    45  consideration.
    46    (f) "Sale" means any transfer of title, possession or  both,  exchange
    47  or  barter,  rental,  lease or license to use or consume, conditional or
    48  otherwise, in any manner or by any means whatsoever for a  consideration
    49  or any agreement therefor.
    50    §  493. Tax on cannabis. (a) There is hereby imposed a tax on the sale
    51  or transfer of adult-use cannabis products by any  person  to  a  retail
    52  dispensary  at  the  rate  of eighteen percent of the amount  charged by
    53  such person for  adult-use cannabis products, which shall accrue at  the
    54  time  of  such sale or transfer. Where the retail dispensary is operated
    55  by a person licensed under the cannabis law as  a  registered  organiza-

        S. 854                             98

     1  tion,  such  tax  shall  be paid by the retail dispensary at the rate of
     2  eighteen percent of the price charged to the retail customer  and  shall
     3  accrue at the time of such sale.
     4    (b)  In  addition  to  the  taxes  imposed  by subdivision (a) of this
     5  section, there is hereby imposed a  tax  on  the  sale  or  transfer  of
     6  adult-use  cannabis products by any person to a retail dispensary at the
     7  rate of one percent of the  amount  charged  by  such  person  for  such
     8  adult-use cannabis products, which shall accrue at the time of such sale
     9  or  transfer.  The tax imposed by this subdivision shall be in trust for
    10  and on account of a city having a population of one million or more,  or
    11  a  county,  other  than a county wholly within such a city, in which the
    12  retail dispensary is located. Where the retail dispensary is operated by
    13  a person licensed under the cannabis law as a  registered  organization,
    14  such  tax  shall  be  paid  by  the retail dispensary at the rate of one
    15  percent of the price charged to the retail customer.
    16    (c) In addition to the taxes imposed by subdivisions (a)  and  (b)  of
    17  this  section,  there is hereby imposed a tax on the sale or transfer of
    18  adult-use cannabis products by any person to a retail dispensary at  the
    19  rate  of  three  percent  of  the amount charged by such person for such
    20  adult-use cannabis products, which shall accrue at the time of such sale
    21  or transfer. The tax imposed by this subdivision shall be in  trust  for
    22  and on account of the town, village, or city in which the retail dispen-
    23  sary  is  located.  Where  the retail dispensary is operated by a person
    24  licensed under the cannabis law as a registered organization,  such  tax
    25  shall  be  paid by the retail dispensary at the rate of three percent of
    26  the price charged to the retail customer.
    27    (d) It shall be presumed that all adult-use cannabis  products  within
    28  the  state are subject to tax until the contrary is established, and the
    29  burden of proof that the taxes imposed by subdivisions (a), (b) and  (c)
    30  of  this  section  have been paid shall be upon the person in possession
    31  thereof where such person holds any  license  under  the  cannabis  law.
    32  Every  person  holding  a  license  under the cannabis law who possesses
    33  adult-use cannabis products upon which such taxes  have  not  been  paid
    34  shall  be  liable for the payment of such taxes, and the failure of such
    35  person to produce to the commissioner or his or her authorized represen-
    36  tative upon demand an invoice for any adult-use cannabis products in his
    37  or her possession shall be presumptive evidence that the tax thereon has
    38  not been paid and that such person is liable for the tax thereon, unless
    39  evidence of such invoice or payment is later produced.
    40    (e) Notwithstanding any other provision of law to  the  contrary,  the
    41  taxes  imposed  by article twenty of this chapter shall not apply to any
    42  product subject to tax under this article.
    43    § 494. Registration and renewal.  (a) Every person to  whom  adult-use
    44  cannabis  products are sold or transferred, and every person licensed as
    45  a microbusiness, cooperative or registered organization under the canna-
    46  bis law must file with the commissioner a properly completed application
    47  for a certificate of registration before engaging in business. In  order
    48  to apply for such certificate of registration, such person must first be
    49  in possession of a valid license from the office of cannabis management.
    50  An application for a certificate of registration must be submitted elec-
    51  tronically, on a form prescribed by the commissioner, and must be accom-
    52  panied  by  a  non-refundable  application fee of six hundred dollars. A
    53  certificate of registration shall not be assignable or transferable  and
    54  shall  be  destroyed immediately upon such person ceasing to do business
    55  as specified in such certificate, or in the  event  that  such  business
    56  never commenced.

        S. 854                             99

     1    (b)  The commissioner shall refuse to issue a certificate of registra-
     2  tion to any applicant and shall revoke the certificate  of  registration
     3  of  any such person who does not possess a valid license from the office
     4  of cannabis management. The commissioner may refuse to issue  a  certif-
     5  icate  of  registration to any applicant where such applicant: (1) has a
     6  past-due liability as that term is defined in section one hundred seven-
     7  ty-one-v of this chapter; (2) has  had  a  certificate  of  registration
     8  under this article, a license from the office of cannabis management, or
     9  any  license or registration provided for in this chapter revoked within
    10  one year from the date on which such application was filed; (3) has  had
    11  a  certificate  of  registration  under this article, a license from the
    12  office of cannabis management, or any license or  registration  provided
    13  for  in  this chapter suspended where the suspension is in effect on the
    14  date the application is filed or ended less  than  one  year  from  such
    15  date;  (4)  has  been  convicted of a crime provided for in this chapter
    16  within one year from the date on which such application was filed or the
    17  certificate was issued as applicable; (5)  willfully  fails  to  file  a
    18  report  or  return required by this article; (6) willfully files, causes
    19  to be filed, gives or causes to be given a report,  return,  certificate
    20  or  affidavit  required by this article which is false; or (7) willfully
    21  fails to collect or truthfully account for or pay over any  tax  imposed
    22  by this article.
    23    (c) A certificate of registration shall be valid for the period speci-
    24  fied  thereon,  unless earlier suspended or revoked. Upon the expiration
    25  of the term stated on a certificate of  registration,  such  certificate
    26  shall be null and void.
    27    (d)  Every  holder  of  a  certificate of registration must notify the
    28  commissioner of changes to any of the information stated on the  certif-
    29  icate, or of changes to any information contained in the application for
    30  the  certificate  of  registration. Such notification must be made on or
    31  before the last day of the month in which a change occurs  and  must  be
    32  made electronically on a form prescribed by the commissioner.
    33    (e)  Every  holder of a certificate of registration under this article
    34  shall be required to reapply prior  to  such  certificate's  expiration,
    35  during  a  reapplication  period  established  by the commissioner. Such
    36  reapplication period shall not occur  more  frequently  than  every  two
    37  years.  Such reapplication shall be subject to the same requirements and
    38  conditions as an initial application, including grounds for refusal  and
    39  the payment of the application fee.
    40    (f) Any person who is required to obtain a certificate of registration
    41  under  subdivision  (a) of this section who possesses adult-use cannabis
    42  products without such certificate shall be subject to a penalty of  five
    43  hundred  dollars  for  each month or part thereof during which adult-use
    44  cannabis products are possessed without such certificate, not to  exceed
    45  ten thousand dollars in the aggregate.
    46    §  495.  Returns  and  payment  of  tax. (a) 1.   Every person to whom
    47  adult-use cannabis products are sold or transferred,  and  every  person
    48  licensed  as  a  microbusiness,  cooperative  or registered organization
    49  under the cannabis law shall, on or before  the  twentieth  day  of  the
    50  month,  file with the commissioner a return on forms to be prescribed by
    51  the commissioner, the total amount of tax due thereon in  the  preceding
    52  calendar  month, and the total amount of tax due under subdivisions (a),
    53  (b) and (c) of section four hundred ninety-three of this article on  its
    54  sales  to a retail dispensary during the preceding calendar month, along
    55  with such other information  as  the  commissioner  may  require.  Every
    56  person  required  to file a return under this section shall, at the time

        S. 854                             100

     1  of filing such return, pay to the commissioner the total amount  of  tax
     2  due for the period covered by such return. If a return is not filed when
     3  due,  the tax shall be due on the day on which the return is required to
     4  be filed.
     5    2. Every person to whom adult-use cannabis products are sold or trans-
     6  ferred,  and  every  person  licensed as a microbusiness, cooperative or
     7  registered organization under the cannabis law shall  maintain  complete
     8  and  accurate  records  in  such  form  as  the commissioner may require
     9  including, but not limited to, such items as the geographic location  of
    10  every  retail dispensary to which such person sold or transferred adult-
    11  use cannabis products; and any other record or information  required  by
    12  the  commissioner.  Such records must be preserved for a period of three
    13  years after the filing of the return to which such  records  relate  and
    14  must be provided to the commissioner upon request.
    15    (b) The provisions of article twenty-seven of this chapter shall apply
    16  to  the tax imposed by this article in the same manner and with the same
    17  force and effect as if the language of such article  had  been  incorpo-
    18  rated  in  full  into this section and had expressly referred to the tax
    19  imposed by this article, except to the extent that any provision of such
    20  article is either inconsistent with a provision of this  article  or  is
    21  not relevant to this article.
    22    (c) 1. All taxes, interest, and penalties collected or received by the
    23  commissioner  under  this  article  shall  be  deposited and disposed of
    24  pursuant to the provisions of section one hundred seventy-one-a of  this
    25  chapter,  provided that an amount equal to one hundred percent collected
    26  under this article less any amount determined by the commissioner to  be
    27  reserved  by the comptroller for refunds or reimbursements shall be paid
    28  by the comptroller to the credit of the  cannabis  revenue  fund  estab-
    29  lished  by section ninety-nine-ii of the state finance law. Of the total
    30  revenue collected or received under this article, the comptroller  shall
    31  retain such amount as the commissioner may determine to be necessary for
    32  refunds.  The commissioner is authorized and directed to deduct from the
    33  registration fees under subdivision (a) of section four hundred  ninety-
    34  four  of  this  article,  before  deposit into the cannabis revenue fund
    35  designated by the comptroller, a reasonable amount necessary to effectu-
    36  ate refunds of appropriations of the department to reimburse the depart-
    37  ment for the costs incurred to administer, collect, and  distribute  the
    38  taxes imposed by this article.
    39    2.  Notwithstanding  the  foregoing, the commissioner shall certify to
    40  the comptroller the total amount of tax, penalty and  interest  received
    41  by  him or her on account of the tax imposed by subdivisions (b) and (c)
    42  of section four hundred ninety-three of this article in trust for and on
    43  account of each county and city having a population of  one  million  or
    44  more,  other  than  a  county  wholly  within such a city, and the town,
    45  village or city in which a retail dispensary is located.  On  or  before
    46  the  twelfth  day  of  each month, the comptroller, after reserving such
    47  fund, shall pay to the appropriate fiscal officer of  each  such  county
    48  and  city  and  a designated officer of such town or village or city the
    49  taxes, penalties and interest received and certified by the commissioner
    50  for the preceding calendar month.
    51    3. In addition to any other penalty provided in this article or other-
    52  wise imposed by law: every person to whom  adult-use  cannabis  products
    53  are  sold  or transferred, and every person licensed as a microbusiness,
    54  cooperative or registered organization under the cannabis law who  fails
    55  to  maintain  or make available to the commissioner the records required
    56  by this section is subject to a  penalty  not  to  exceed  five  hundred

        S. 854                             101

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

        S. 854                             102

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

        S. 854                             103

     1  health,  office  of  addiction  services  and supports, office of mental
     2  health, New York state police  and  the  division  of  criminal  justice
     3  services, shall conduct a  study of the implementation of this act. Such
     4  study  shall  examine  all  aspects  of this act, including economic and
     5  fiscal impacts, the impact on the public health and safety of  New  York
     6  residents,  the  progress  made in achieving social and economic justice
     7  goals, and toward eliminating the illegal market for  cannabis  products
     8  in  New  York.  The  board  shall  make recommendations regarding if the
     9  changes to level of taxation of adult-use cannabis  is  appropriate,  as
    10  well  as  changes,  if  any, necessary to improve and protect the public
    11  health and safety of New Yorkers. Such  study  shall  be  completed  two
    12  years after the effective date of this act and shall be presented to the
    13  governor,  the  temporary president of the senate and the speaker of the
    14  assembly, no later than October 1, 2023.
    15    § 43. Section 102 of the alcoholic beverage control law is amended  by
    16  adding a new subdivision 8 to read as follows:
    17    8.  No  alcoholic  beverage  retail  licensee  shall sell cannabis, as
    18  defined in section three of the cannabis law,  nor  have  or  possess  a
    19  license or permit to sell cannabis, on the same premises where alcoholic
    20  beverages are sold.
    21    §  44.  Subdivisions  1,  4,  5,  6, 7 and 13 of section 12-102 of the
    22  general obligations law, as added by chapter 406 of the  laws  of  2000,
    23  are amended to read as follows:
    24    1.  "Illegal  drug"  means any controlled substance [or marijuana] the
    25  possession of which is an offense under the public  health  law  or  the
    26  penal law.
    27    4.  "Grade  one  violation"  means  possession of one-quarter ounce or
    28  more, but less than four ounces, or distribution of less than one  ounce
    29  of  an illegal drug [other than marijuana, or possession of one pound or
    30  twenty-five plants or more, but less than four pounds or  fifty  plants,
    31  or distribution of less than one pound of marijuana].
    32    5.  "Grade two violation" means possession of four ounces or more, but
    33  less than eight ounces, or distribution of one ounce or more,  but  less
    34  than two ounces, of an illegal drug [other than marijuana, or possession
    35  of  four pounds or more or fifty plants or distribution of more than one
    36  pound but less than ten pounds of marijuana].
    37    6. "Grade three violation" means possession of eight ounces  or  more,
    38  but less than sixteen ounces, or distribution of two ounces or more, but
    39  less  than  four  ounces,  of a specified illegal drug [or possession of
    40  eight pounds or more or seventy-five  plants  or  more,  but  less  than
    41  sixteen  pounds or one hundred plants, or distribution of more than five
    42  pounds but less than ten pounds of marijuana].
    43    7. "Grade four violation" means possession of sixteen ounces  or  more
    44  or  distribution  of four ounces or more of a specified illegal drug [or
    45  possession of sixteen pounds or more or one hundred plants  or  more  or
    46  distribution of ten pounds or more of marijuana].
    47    13. "Drug trafficker" means a person convicted of a class A or class B
    48  felony  controlled  substance  [or marijuana offense] who, in connection
    49  with the  criminal  conduct  for  which  he  or  she  stands  convicted,
    50  possessed, distributed, sold or conspired to sell a controlled substance
    51  [or  marijuana] which, by virtue of its quantity, the person's prominent
    52  role in the enterprise responsible for the sale or distribution of  such
    53  controlled  substance  and  other circumstances related to such criminal
    54  conduct  indicate  that  such  person's  criminal  possession,  sale  or
    55  conspiracy to sell such substance was not an isolated occurrence and was
    56  part  of  an ongoing pattern of criminal activity from which such person

        S. 854                             104

     1  derived substantial income or resources and in which such person  played
     2  a leadership role.
     3    §  45.  Paragraph  (g)  of  subdivision 1 of section 488 of the social
     4  services law, as added by section 1 of part B of chapter 501 of the laws
     5  of 2012, is amended to read as follows:
     6    (g) "Unlawful use or administration of a controlled substance,"  which
     7  shall  mean any administration by a custodian to a service recipient of:
     8  a controlled substance as defined by article thirty-three of the  public
     9  health law, without a prescription; or other medication not approved for
    10  any  use  by  the  federal  food and drug administration, except for the
    11  administration of  medical  cannabis  when  such  administration  is  in
    12  accordance with article three of the cannabis law. It also shall include
    13  a  custodian  unlawfully using or distributing a controlled substance as
    14  defined by article thirty-three of the public health law, at  the  work-
    15  place or while on duty.
    16    §  46.  Paragraphs  (e) and (f) of subdivision 1 of section 490 of the
    17  social services law, as added by section 1 of part B of chapter  501  of
    18  the  laws  of 2012, are amended and a new paragraph (g) is added to read
    19  as follows:
    20    (e) information regarding individual  reportable  incidents,  incident
    21  patterns  and  trends,  and  patterns  and  trends  in the reporting and
    22  response to reportable incidents is shared, consistent  with  applicable
    23  law,  with  the  justice  center, in the form and manner required by the
    24  justice center and, for facilities or provider  agencies  that  are  not
    25  state  operated,  with the applicable state oversight agency which shall
    26  provide such information to the justice center; [and]
    27    (f) incident review committees  are  established;  provided,  however,
    28  that  the  regulations may authorize an exemption from this requirement,
    29  when appropriate, based on the size of the facility or  provider  agency
    30  or  other relevant factors. Such committees shall be composed of members
    31  of the governing body of the  facility  or  provider  agency  and  other
    32  persons  identified  by the director of the facility or provider agency,
    33  including some members of the following: direct support staff,  licensed
    34  health  care  practitioners,  service  recipients and representatives of
    35  family, consumer and other advocacy organizations, but not the  director
    36  of  the facility or provider agency. Such committee shall meet regularly
    37  to: (i) review the timeliness, thoroughness and appropriateness  of  the
    38  facility  or  provider  agency's responses to reportable incidents; (ii)
    39  recommend additional opportunities for improvement to  the  director  of
    40  the  facility  or provider agency, if appropriate; (iii) review incident
    41  trends and patterns  concerning  reportable  incidents;  and  (iv)  make
    42  recommendations  to  the  director of the facility or provider agency to
    43  assist in reducing reportable incidents. Members of the committee  shall
    44  be  trained  in  confidentiality  laws and regulations, and shall comply
    45  with section seventy-four of the public officers law[.]; and
    46    (g) safe storage, administration, and  diversion  prevention  policies
    47  regarding controlled substances and medical cannabis.
    48    §  47. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal
    49  law, as added by chapter 90 of the laws of 2014, are amended to read  as
    50  follows:
    51  § 179.00 Criminal  diversion  of  medical  [marihuana]  cannabis;  defi-
    52             nitions.
    53    The following definitions are applicable to this article:
    54    1. "Medical [marihuana] cannabis" means medical  [marihuana]  cannabis
    55  as  defined  in [subdivision eight of section thirty-three hundred sixty
    56  of the public health law] section three of the cannabis law.

        S. 854                             105

     1    2. "Certification" means a certification, made under section  [thirty-
     2  three hundred sixty-one of the public health law] thirty of the cannabis
     3  law.
     4  § 179.05 Criminal  diversion  of  medical  [marihuana] cannabis; limita-
     5             tions.
     6    The provisions of this article shall not apply to:
     7    1. a practitioner authorized to issue a  certification  who  acted  in
     8  good faith in the lawful course of his or her profession; or
     9    2.  a  registered organization as that term is defined in [subdivision
    10  nine of section thirty-three hundred sixty of  the  public  health  law]
    11  section  thirty-four  of the cannabis law who acted in good faith in the
    12  lawful course of the practice of pharmacy; or
    13    3. a person who acted in good faith seeking treatment  for  a  medical
    14  condition  or assisting another person to obtain treatment for a medical
    15  condition.
    16  § 179.10 Criminal diversion of medical [marihuana] cannabis in the first
    17             degree.
    18    A person is guilty of criminal diversion of medical [marihuana] canna-
    19  bis in the first degree when he or she is a practitioner, as  that  term
    20  is  defined in [subdivision twelve of section thirty-three hundred sixty
    21  of the public health law] section three of the cannabis law, who  issues
    22  a  certification  with  knowledge of reasonable grounds to know that (i)
    23  the recipient has no medical need for it, or (ii) it is  for  a  purpose
    24  other  than  to  treat  a [serious] condition as defined in [subdivision
    25  seven of section thirty-three hundred sixty of the  public  health  law]
    26  section three of the cannabis law.
    27    Criminal diversion of medical [marihuana] cannabis in the first degree
    28  is a class E felony.
    29  § 179.11 Criminal  diversion  of  medical  [marihuana]  cannabis  in the
    30             second degree.
    31    A person is guilty of criminal diversion of medical [marihuana] canna-
    32  bis in the second degree when he or  she  sells,  trades,  delivers,  or
    33  otherwise  provides  medical  [marihuana] cannabis to another with know-
    34  ledge or reasonable grounds to know that the recipient is not registered
    35  under [title five-A of article thirty-three of the  public  health  law]
    36  article three of the cannabis law.
    37    Criminal  diversion  of  medical  [marihuana]  cannabis  in the second
    38  degree is a class B misdemeanor.
    39  § 179.15 Criminal retention of medical [marihuana] cannabis.
    40    A person is guilty of criminal retention of medical [marihuana] canna-
    41  bis when, being a certified patient or designated  caregiver,  as  those
    42  terms  are  defined  in  [subdivisions three and five of section thirty-
    43  three hundred sixty of the  public  health  law,  respectively]  section
    44  three  of  the  cannabis  law,  he  or she knowingly obtains, possesses,
    45  stores or maintains an amount of [marihuana] cannabis in excess  of  the
    46  amount he or she is authorized to possess under the provisions of [title
    47  five-A  of  article thirty-three of the public health law] article three
    48  of the cannabis law.
    49    Criminal retention of medical [marihuana is  a  class  A  misdemeanor]
    50  cannabis shall be punishable as provided in section 222.25 of this chap-
    51  ter.
    52    §  48. Section 220.78 of the penal law, as added by chapter 154 of the
    53  laws of 2011, is amended to read as follows:
    54  § 220.78 Witness or victim of drug or alcohol overdose.
    55    1. A person who, in good faith, seeks health care for someone  who  is
    56  experiencing  a  drug  or  alcohol  overdose  or  other life threatening

        S. 854                             106

     1  medical emergency shall not be charged or prosecuted  for  a  controlled
     2  substance offense under this article [two hundred twenty] or a [marihua-
     3  na]  cannabis  offense under article two hundred [twenty-one] twenty-two
     4  of this title, other than an offense involving sale for consideration or
     5  other  benefit or gain, or charged or prosecuted for possession of alco-
     6  hol by a person under age twenty-one years under section sixty-five-c of
     7  the alcoholic beverage control law, or for possession of drug  parapher-
     8  nalia  under  article  thirty-nine  of  the  general  business law, with
     9  respect to any controlled substance, [marihuana]  cannabis,  alcohol  or
    10  paraphernalia that was obtained as a result of such seeking or receiving
    11  of health care.
    12    2.  A  person  who is experiencing a drug or alcohol overdose or other
    13  life threatening medical emergency and, in good faith, seeks health care
    14  for himself or herself or is the subject of such a  good  faith  request
    15  for  health  care,  shall  not be charged or prosecuted for a controlled
    16  substance offense under this article or a [marihuana]  cannabis  offense
    17  under  article  two hundred [twenty-one] twenty-two of this title, other
    18  than an offense involving sale for consideration  or  other  benefit  or
    19  gain,  or  charged  or  prosecuted for possession of alcohol by a person
    20  under age twenty-one years under section sixty-five-c of  the  alcoholic
    21  beverage  control law, or charged or prosecuted for possession of canna-
    22  bis or concentrated cannabis by a person under  the  age  of  twenty-one
    23  under  section  one  hundred  thirty-two  of  the  cannabis  law, or for
    24  possession of drug paraphernalia under article thirty-nine of the gener-
    25  al business law, with respect to any  substance,  [marihuana]  cannabis,
    26  alcohol  or  paraphernalia that was obtained as a result of such seeking
    27  or receiving of health care.
    28    3. Definitions. As used in this section the following terms shall have
    29  the following meanings:
    30    (a) "Drug or alcohol overdose" or "overdose" means an acute  condition
    31  including,  but  not limited to, physical illness, coma, mania, hysteria
    32  or death, which is the result of consumption  or  use  of  a  controlled
    33  substance  or alcohol and relates to an adverse reaction to or the quan-
    34  tity of the controlled substance or alcohol or a  substance  with  which
    35  the  controlled  substance  or  alcohol  was  combined;  provided that a
    36  patient's condition shall be deemed to be a drug or alcohol overdose  if
    37  a  prudent  layperson,  possessing  an average knowledge of medicine and
    38  health, could reasonably believe that the condition is in fact a drug or
    39  alcohol overdose and (except as to death) requires health care.
    40    (b) "Health care" means the professional services provided to a person
    41  experiencing a drug or alcohol overdose by a  health  care  professional
    42  licensed, registered or certified under title eight of the education law
    43  or article thirty of the public health law who, acting within his or her
    44  lawful  scope of practice, may provide diagnosis, treatment or emergency
    45  services for a person experiencing a drug or alcohol overdose.
    46    4. It shall be an affirmative defense to a  criminal  sale  controlled
    47  substance  offense  under this article or a criminal sale of [marihuana]
    48  cannabis offense under article two hundred  [twenty-one]  twenty-two  of
    49  this  title, not covered by subdivision one or two of this section, with
    50  respect to any controlled substance or [marihuana]  cannabis  which  was
    51  obtained as a result of such seeking or receiving of health care, that:
    52    (a) the defendant, in good faith, seeks health care for someone or for
    53  him  or  herself who is experiencing a drug or alcohol overdose or other
    54  life threatening medical emergency; and

        S. 854                             107

     1    (b) the defendant has  no  prior  conviction  for  the  commission  or
     2  attempted  commission  of a class A-I, A-II or B felony under this arti-
     3  cle.
     4    5. Nothing in this section shall be construed to bar the admissibility
     5  of  any evidence in connection with the investigation and prosecution of
     6  a crime with regard to another  defendant  who  does  not  independently
     7  qualify  for  the bar to prosecution or for the affirmative defense; nor
     8  with regard to other crimes committed by a person who  otherwise  quali-
     9  fies under this section; nor shall anything in this section be construed
    10  to  bar any seizure pursuant to law, including but not limited to pursu-
    11  ant to section thirty-three hundred eighty-seven of  the  public  health
    12  law.
    13    6.  The  bar  to  prosecution described in subdivisions one and two of
    14  this section shall not apply to the prosecution of a  class  A-I  felony
    15  under this article, and the affirmative defense described in subdivision
    16  four  of  this section shall not apply to the prosecution of a class A-I
    17  or A-II felony under this article.
    18    § 49. Subdivision 1 of section 260.20 of the penal law, as amended  by
    19  chapter 362 of the laws of 1992, is amended as follows:
    20    1.  He knowingly permits a child less than eighteen years old to enter
    21  or remain in or upon a place, premises  or  establishment  where  sexual
    22  activity as defined by article one hundred thirty, two hundred thirty or
    23  two  hundred  sixty-three  of  this [chapter] part or activity involving
    24  controlled substances as defined by article two hundred twenty  of  this
    25  [chapter  or involving marihuana as defined by article two hundred twen-
    26  ty-one of this chapter] part is maintained or conducted, and he knows or
    27  has reason to know that such activity is being maintained or  conducted;
    28  or
    29    § 50. Section 89-h of the state finance law, as added by chapter 90 of
    30  the laws of 2014, is amended to read as follows:
    31    §  89-h.  Medical  [marihuana] cannabis trust fund. 1. There is hereby
    32  established in the joint  custody  of  the  state  comptroller  and  the
    33  commissioner  of  taxation and finance a special fund to be known as the
    34  "medical [marihuana] cannabis trust fund."
    35    2. The medical [marihuana] cannabis trust fund shall  consist  of  all
    36  moneys  required  to  be  deposited  in the medical [marihuana] cannabis
    37  trust fund pursuant to the provisions of section four hundred ninety  of
    38  the tax law.
    39    3.  The moneys in the medical [marihuana] cannabis trust fund shall be
    40  kept separate and shall not be commingled with any other moneys  in  the
    41  custody  of the commissioner of taxation and finance and the state comp-
    42  troller.
    43    4. The moneys of the medical [marihuana] cannabis trust fund,  follow-
    44  ing  appropriation by the legislature, shall be allocated upon a certif-
    45  icate of approval of availability by  the  director  of  the  budget  as
    46  follows:   (a) Twenty-two and five-tenths percent of the monies shall be
    47  transferred to the counties in New  York  state  in  which  the  medical
    48  [marihuana] cannabis was manufactured and allocated in proportion to the
    49  gross  sales  originating from medical [marihuana] cannabis manufactured
    50  in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
    51  moneys  shall  be transferred to the counties in New York state in which
    52  the medical [marihuana] cannabis was dispensed and allocated in  propor-
    53  tion  to the gross sales occurring in each such county; (c) five percent
    54  of the monies shall be transferred to  the  office  of  [alcoholism  and
    55  substance  abuse  services] addiction services and supports, which shall
    56  use that revenue for additional drug abuse  prevention,  counseling  and

        S. 854                             108

     1  treatment  services; and (d) five percent of the revenue received by the
     2  department shall be transferred to  the  division  of  criminal  justice
     3  services,  which  shall  use that revenue for a program of discretionary
     4  grants  to  state  and local law enforcement agencies that demonstrate a
     5  need relating to [title five-A of article  thirty-three  of  the  public
     6  health law] article three of the cannabis law; said grants could be used
     7  for  personnel  costs  of  state and local law enforcement agencies. For
     8  purposes of this subdivision, the city of New York shall be deemed to be
     9  a county.
    10    § 51. The state finance law is amended by adding  three  new  sections
    11  99-ii, 99-jj and 99-kk to read as follows:
    12    §  99-ii.  New  York  state  cannabis revenue fund. 1. There is hereby
    13  established in the joint  custody  of  the  state  comptroller  and  the
    14  commissioner  of  taxation and finance a special fund to be known as the
    15  "New York state cannabis revenue fund".
    16    2. Such fund shall consist of all revenues received by the  department
    17  of  taxation and finance, pursuant to the provisions of article twenty-C
    18  of the tax law and all other moneys appropriated thereto from any  other
    19  fund or source pursuant to law.  Nothing contained in this section shall
    20  prevent  the  state  from  receiving  grants,  gifts or bequests for the
    21  purposes of the fund as defined in this section and depositing them into
    22  the fund according to law.
    23    3. The moneys in  such  fund  shall  be  expended  for  the  following
    24  purposes:
    25    (a)  Reasonable  costs  incurred  by  the  department  of taxation and
    26  finance for administering and collecting the taxes imposed by this part;
    27  provided, however, such costs shall  not  exceed  four  percent  of  tax
    28  revenues received.
    29    (b) Reasonable costs incurred by the office of cannabis management and
    30  the  cannabis control board for implementing, administering, and enforc-
    31  ing the marihuana regulation and taxation act.
    32    (c) Actual and necessary costs incurred  by  the  office  of  cannabis
    33  management  and the cannabis control board related to the administration
    34  of incubators and other assistance  to  qualified  social  and  economic
    35  equity applicants including low and zero interest loans provided to such
    36  applicants  pursuant  to  section  sixteen-ee  of  the urban development
    37  corporation act. Such costs shall be  paid  out  of  revenues  received,
    38  including, but not limited to, from special one-time fees paid by regis-
    39  tered organizations pursuant to section sixty-three of the cannabis law.
    40    (d)  Beginning  with the two thousand twenty-two--two thousand twenty-
    41  three fiscal year and continuing through the two  thousand  thirty-two--
    42  two  thousand thirty-three fiscal year, the commissioner of taxation and
    43  finance shall annually disburse the following sums for the  purposes  of
    44  data collection and reporting:
    45    (i)  Reasonable  costs  incurred  by the office of cannabis management
    46  policy to track and report data related to  the  licensing  of  cannabis
    47  businesses,  including  the geographic location, structure, and function
    48  of licensed cannabis businesses, and demographic data,  including  race,
    49  ethnicity,  and  gender, of applicants and license holders. The cannabis
    50  control board shall publish reports on its findings annually  and  shall
    51  make the reports available to the public.
    52    (ii)  Reasonable  costs incurred by the department of criminal justice
    53  services  to  track  and  report  data  related  to   any   infractions,
    54  violations,  or criminal convictions that occur under any of the remain-
    55  ing cannabis statutes.   The department  of  criminal  justice  services

        S. 854                             109

     1  shall  publish  reports  on  its  findings  annually  and shall make the
     2  reports available to the public.
     3    (iii)  Reasonable  costs  incurred by agencies of the state, including
     4  the state university of New York to research and evaluate the  implemen-
     5  tation  and  effect  of  the  cannabis law. No more than four percent of
     6  these monies may be used for expenses related to administrative costs of
     7  conducting such research, and to, if appropriate,  make  recommendations
     8  to  the  legislature  and  governor regarding possible amendments to the
     9  cannabis law. The recipients of these funds  shall  publish  reports  on
    10  their  findings  at  a  minimum  of  every  two years and shall make the
    11  reports available to the public. The research funded  pursuant  to  this
    12  subdivision shall include but not necessarily be limited to:
    13    (A)  the  impact  on  public health, including health costs associated
    14  with cannabis use, as well as whether cannabis use is associated with an
    15  increase or decrease in use of alcohol or other drugs;
    16    (B) the impact of treatment for cannabis use disorder and  the  effec-
    17  tiveness of different treatment programs;
    18    (C)  public  safety issues related to cannabis use, including, but not
    19  limited to studying the effectiveness  of  the  packaging  and  labeling
    20  requirements and advertising and marketing restrictions contained in the
    21  act  at  preventing  underage access to and use of cannabis and cannabis
    22  products, and studying the health-related effects among users of varying
    23  potency levels of cannabis and cannabis products;
    24    (D) cannabis use rates, maladaptive use rates for  adults  and  youth,
    25  and diagnosis rates of cannabis-related substance use disorders;
    26    (E)  cannabis market prices, illicit market prices, tax structures and
    27  rates, including an evaluation of how to  best  tax  cannabis  based  on
    28  potency, and the structure and function of licensed cannabis businesses;
    29    (F)  whether  additional  protections  are  needed to prevent unlawful
    30  monopolies or anti-competitive behavior from occurring in  the  cannabis
    31  industry  and,  if so, recommendations as to the most effective measures
    32  for preventing such behavior;
    33    (G) the economic impacts in the private and public sectors,  including
    34  but  not  necessarily limited to, job creation, workplace safety, reven-
    35  ues, taxes generated for state and local budgets, and  criminal  justice
    36  impacts,  including,  but  not  necessarily  limited  to, impacts on law
    37  enforcement and public resources, short and long  term  consequences  of
    38  involvement  in the criminal justice system, and state and local govern-
    39  ment agency administrative costs and revenue;
    40    (H) whether the  regulatory  agencies  tasked  with  implementing  and
    41  enforcing  the  marihuana  regulation  and  taxation  act  are  doing so
    42  consistent with the intent and purposes of the act, and whether  differ-
    43  ent agencies might do so more effectively; and
    44    (I)   any  environmental  impacts  and  hazards  related  to  cannabis
    45  production.
    46    (e) Reasonable costs incurred  by  the  state  police  to  expand  and
    47  enhance  the  drug  recognition expert training program and technologies
    48  utilized in the process of maintaining road safety.
    49    4. After the dispersal of moneys pursuant to subdivision three of this
    50  section, the remaining moneys in the fund  deposited  during  the  prior
    51  fiscal year shall be disbursed into the state lottery fund and two addi-
    52  tional  sub-funds  created within the cannabis revenue fund known as the
    53  drug treatment and public education fund and the community grants  rein-
    54  vestment fund, as follows:
    55    (a)  twenty-five  percent shall be deposited in the state lottery fund
    56  established by section ninety-two-c of this article; provided that  such

        S. 854                             110

     1  moneys shall be distributed to the department of education in accordance
     2  with  subdivisions  two and four of section ninety-two-c of this article
     3  and shall not be utilized for the purposes of subdivision three of  such
     4  section.  Monies  allocated  by  this article may enhance, but shall not
     5  supplant, existing dedicated funds to the department of education;
     6    (b) twenty-five percent shall be deposited in the drug  treatment  and
     7  public  education  fund  established  by  section ninety-nine-jj of this
     8  article; and
     9    (c) fifty percent shall be deposited in the community grants reinvest-
    10  ment fund established by section ninety-nine-kk of this article.
    11    § 99-jj. New York state drug treatment and public education  fund.  1.
    12  There  is  hereby  established  in  the joint custody of the state comp-
    13  troller and the commissioner of taxation and finance a special  fund  to
    14  be known as the "New York state drug treatment public education fund".
    15    2.  Such  fund  shall  consist  of  revenues  received pursuant to the
    16  provisions of section ninety-nine-ii  of  this  article  and  all  other
    17  moneys  appropriated  thereto  from any other fund or source pursuant to
    18  law. Nothing contained in this section  shall  prevent  the  state  from
    19  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
    20  defined in this section and depositing them into the fund  according  to
    21  law.
    22    3.  The  moneys  in such fund shall be expended to the commissioner of
    23  the office of addiction services and supports and disbursed, in  consul-
    24  tation with the commissioner of the department of health and the commis-
    25  sioner of education for the following purposes:
    26    (a)  To  develop and implement a youth-focused public health education
    27  and prevention campaign, including school-based prevention, early inter-
    28  vention, and health care services and programs to  reduce  the  risk  of
    29  cannabis and other substance use by school-aged children;
    30    (b)  To  develop  and  implement  a  statewide  public health campaign
    31  focused on the health effects of cannabis and legal  use,  including  an
    32  ongoing  education  and  prevention  campaign  that educates the general
    33  public, including parents, consumers and retailers, on the legal use  of
    34  cannabis,  the  importance of preventing youth access, the importance of
    35  safe storage and preventing secondhand cannabis smoke exposure, informa-
    36  tion for pregnant or breastfeeding women,  and  the  overconsumption  of
    37  edible cannabis products;
    38    (c) To provide substance use disorder treatment programs for youth and
    39  adults,  with  an  emphasis  on  programs that are culturally and gender
    40  competent, trauma-informed, evidence-based and provide  a  continuum  of
    41  care  that  includes screening and assessment (substance use disorder as
    42  well as mental health), early  intervention,  active  treatment,  family
    43  involvement,  case management, overdose prevention, prevention of commu-
    44  nicable diseases  related  to  substance  use,  relapse  management  for
    45  substance  use and other co-occurring behavioral health disorders, voca-
    46  tional services, literacy services, parenting  classes,  family  therapy
    47  and  counseling  services,  medication-assisted  treatments, psychiatric
    48  medication and psychotherapy; and
    49    (d) To evaluate the programs being funded to  determine  their  effec-
    50  tiveness.
    51    4.  On or before the first day of February each year, the commissioner
    52  of the office of addiction services and supports shall provide a written
    53  report to the temporary president of the senate, speaker of  the  assem-
    54  bly,  chair  of the senate finance committee, chair of the assembly ways
    55  and means committee, chair of the senate  committee  on  alcoholism  and
    56  drug  abuse,  chair of the assembly alcoholism and drug abuse committee,

        S. 854                             111

     1  the state comptroller and the public. Such report shall detail  how  the
     2  moneys of the fund were utilized during the preceding calendar year, and
     3  shall include:
     4    (a)  the amount of money dispersed from the fund and the award process
     5  used for such disbursements;
     6    (b) recipients of awards from the fund;
     7    (c) the amount awarded to each recipient of an award from the fund;
     8    (d) the purposes for which such awards were granted; and
     9    (e) a summary financial plan for such monies which shall include esti-
    10  mates of all receipts and all disbursements for the current and succeed-
    11  ing fiscal years, along with the actual results from  the  prior  fiscal
    12  year.
    13    5.  Moneys  shall be payable from the fund on the audit and warrant of
    14  the comptroller on vouchers approved and certified by  the  commissioner
    15  of addiction services and supports.
    16    §  99-kk.  New York state community grants reinvestment fund. 1. There
    17  is hereby established in the joint custody of the state comptroller  and
    18  the  commissioner  of taxation and finance a special fund to be known as
    19  the "New York state community grants reinvestment fund".
    20    2. Such fund shall consist of all revenues received  pursuant  to  the
    21  provisions  of  section  ninety-nine-ii  of  this  article and all other
    22  moneys appropriated thereto from any other fund or  source  pursuant  to
    23  law.  Nothing  contained  in  this  section shall prevent the state from
    24  receiving grants, gifts or bequests for the  purposes  of  the  fund  as
    25  defined  in  this section and depositing them into the fund according to
    26  law.
    27    3. The fund shall be governed and administered by an executive  steer-
    28  ing  committee of fifteen members, including the chief equity officer of
    29  the office of cannabis management, who shall be the chair,  a  represen-
    30  tative  from  the office of children and family services, the department
    31  of labor, the department of health, the division of housing and communi-
    32  ty renewal, and the office of addiction services and supports  appointed
    33  by  the governor; a representative of the education department appointed
    34  by the board of regents; two members appointed by the  temporary  presi-
    35  dent  of  the senate; two members appointed by the speaker of the assem-
    36  bly; one member appointed by the minority  leader  of  the  senate;  one
    37  member  appointed  by  the  minority  leader of the assembly; one member
    38  appointed by the comptroller; and one member appointed by  the  attorney
    39  general.  Every  effort  shall  be made to ensure a balanced and diverse
    40  committee representing the regions and demographics of the state,  which
    41  shall  have expertise in job placement, homelessness and housing, behav-
    42  ioral health and substance use disorder treatment, and effective rehabi-
    43  litative treatment for adults and juveniles, and shall include represen-
    44  tatives of organizations serving communities impacted  by  past  federal
    45  and state drug policies.
    46    4.  The  moneys  in  such  fund shall be administered by the office of
    47  cannabis management and allocated by the executive steering committee to
    48  provide grants for qualified community-based nonprofit organizations and
    49  approved local government entities for the  purpose  of  reinvesting  in
    50  communities  disproportionately  affected by past federal and state drug
    51  policies. Such grants shall be used, including but not  limited  to,  to
    52  support  job  placement,  job  skills  services, adult education, mental
    53  health treatment, substance use disorder treatment,  housing,  financial
    54  literacy,  community  banking,  nutrition  services, services to address
    55  adverse childhood experiences,  afterschool  and  child  care  services,
    56  system  navigation  services,  legal  services  to  address  barriers to

        S. 854                             112

     1  reentry, including, but not limited  to,  providing  representation  and
     2  related  assistance  with  expungement, vacatur, substitution and resen-
     3  tencing of marihuana-related convictions, and linkages to medical  care,
     4  women's  health  services and other community-based supportive services.
     5  The grants from this program may also be used  to  further  support  the
     6  social and economic equity program created by article four of the canna-
     7  bis law and as established by the cannabis control board.
     8    5.  On  or  before  the first day of February each year, the office of
     9  cannabis management shall provide a  written  report  to  the  temporary
    10  president  of  the  senate, speaker of the assembly, chair of the senate
    11  finance committee, chair of the assembly ways and means committee, chair
    12  of the senate committee on children and families, chair of the  assembly
    13  children and families committee, chair of the senate committee on labor,
    14  chair  of the assembly labor committee, chair of the senate committee on
    15  health, chair of the assembly health  committee,  chair  of  the  senate
    16  committee  on  education, chair of the assembly education committee, the
    17  state comptroller and the public.  Such  report  shall  detail  how  the
    18  monies of the fund were utilized during the preceding calendar year, and
    19  shall include:
    20    (a)  the amount of money available and dispersed from the fund and the
    21  award process used for such disbursements;
    22    (b) recipients of awards from the fund;
    23    (c) the amount awarded to each recipient of an award from the fund;
    24    (d) the purposes for which such awards were granted; and
    25    (e) a summary financial plan for such monies which shall include esti-
    26  mates of all receipts and all disbursements for the current and succeed-
    27  ing fiscal years, along with the actual results from  the  prior  fiscal
    28  year.
    29    6.  Moneys  shall be payable from the fund on the audit and warrant of
    30  the comptroller on vouchers approved and  certified  by  the  office  of
    31  cannabis management.
    32    §  52. Paragraphs (a), (b) and (c) of subdivision 3-a of section 390-b
    33  of the social services law, as added by section 9 of part H  of  chapter
    34  56 of the laws of 2019, are amended to read as follows:
    35    (a)  In  relation to child day care programs and any enrolled legally-
    36  exempt provider, when a clearance conducted  pursuant  to  this  section
    37  reveals  that any existing operator, director, caregiver, or person over
    38  the age of eighteen who is not related in any way to  all  children  for
    39  whom child care services are or will be provided, that resides in a home
    40  where  child care is provided in a home setting where the child does not
    41  reside has been convicted of a crime other than one set forth in subpar-
    42  agraph (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,  the  office  of  children and family
    45  services shall conduct a safety assessment of the program and  take  all
    46  appropriate  steps  to  protect the health and safety of the children in
    47  the program, and  may  deny,  limit,  suspend,  revoke  or  reject  such
    48  program's  license or registration or terminate or reject such program's
    49  enrollment, as applicable, unless the  office  of  children  and  family
    50  services,  determines in its discretion, that continued operation by the
    51  child day care program or enrolled legally-exempt provider will  not  in
    52  any  way  jeopardize the health, safety or welfare of the children cared
    53  for in the program or by the provider.
    54    (b) 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 employee or volunteer with the  potential  for

        S. 854                             113

     1  unsupervised  contact  with children has been convicted of a crime other
     2  than one set forth in subparagraph (iv) of paragraph (a) of  subdivision
     3  three of this section, and unless such crime is eligible for expungement
     4  pursuant  to section 160.50 of the criminal procedure law, the office of
     5  children of family services shall conduct a  safety  assessment  of  the
     6  program  and take all appropriate steps to protect the health and safety
     7  of the children in the  program.  The  office  of  children  and  family
     8  services may direct the program or provider to terminate the employee or
     9  volunteer   based   on   such  a  conviction,  consistent  with  article
    10  twenty-three-A of the correction law.
    11    (c) (i) In relation to any child day care programs  and  any  enrolled
    12  legally-exempt  providers,  where a clearance conducted pursuant to this
    13  section reveals a conviction for a crime other than  one  set  forth  in
    14  subparagraph (iv) of paragraph (a) of subdivision three of this section,
    15  and  unless  such  crime is eligible for expungement pursuant to section
    16  160.50 of the criminal procedure law, for any  prospective  employee  or
    17  volunteer,  the  office  of children and family services may direct that
    18  such person not be hired, as applicable, based  on  such  a  conviction,
    19  consistent with article twenty-three-A of the correction law.
    20    (ii) In relation to any child day care program and any enrolled legal-
    21  ly-exempt  provider, when a clearance conducted pursuant to this section
    22  reveals a conviction for a crime other than one set  forth  in  subpara-
    23  graph  (iv)  of  paragraph (a) of subdivision three of this section, and
    24  unless such crime is eligible for expungement pursuant to section 160.50
    25  of the criminal procedure law, for  any  prospective  caregiver  seeking
    26  enrollment,  or  applicant  to  be a director or operator, the office of
    27  children and family services may deny  the  application  or  enrollment,
    28  consistent with article twenty-three-A of the correction law.
    29    §  53.  Subparagraph  1  of  paragraph (e) of subdivision 2 of section
    30  378-a of the social services law, as amended by section 10 of part L  of
    31  chapter 56 of the laws of 2015, is amended to read as follows:
    32    (1)  Notwithstanding  any  other  provision of law to the contrary, an
    33  application for certification or approval of a prospective foster parent
    34  or prospective adoptive parent shall be denied  and,  in  the  event  of
    35  death  or  incapacity  of  a  relative guardian, an agreement to provide
    36  payments to a prospective successor guardian pursuant to  title  ten  of
    37  this  article  shall  not  be  approved pursuant to subparagraph (ii) of
    38  paragraph (b) of subdivision five of section four hundred  fifty-eight-b
    39  of  this  article, as applicable, where a criminal history record of the
    40  prospective foster parent, prospective adoptive  parent  or  prospective
    41  successor guardian, as applicable, reveals a conviction for:
    42    (A)  a  felony  conviction  at  any time involving: (i) child abuse or
    43  neglect; (ii) spousal abuse; (iii) a crime against  a  child,  including
    44  child  pornography;  or (iv) a crime involving violence, including rape,
    45  sexual assault, or homicide,  other  than  a  crime  involving  physical
    46  assault or battery; or
    47    (B)  a  felony  conviction  within  the  past  five years for physical
    48  assault, battery, or a drug-related  offense,  unless  such  offense  is
    49  eligible  for  expungement  pursuant  to  section 160.50 of the criminal
    50  procedure law; or
    51    § 54. Paragraph (b) of subdivision 4 of  section  132  of  the  social
    52  services  law,  as  added  by section 23 of part B of chapter 436 of the
    53  laws of 1997, is amended to read as follows:
    54    (b) When the screening process  indicates  that  there  is  reason  to
    55  believe  that an applicant or recipient is abusing or dependent on alco-
    56  hol or drugs, the social services district shall require a formal  alco-

        S. 854                             114

     1  hol or substance abuse assessment, which may include drug testing, to be
     2  performed by an alcohol and/or substance abuse professional credentialed
     3  by  the  office  of  [alcoholism and substance abuse services] addiction
     4  services  and supports.  Provided however, if the applicant or recipient
     5  tests positive for the presence of cannabis, the positive  result  alone
     6  shall  not  be  sufficient  to  establish  a  dependence for purposes of
     7  requiring an individual to participate in a treatment  program  pursuant
     8  to  paragraph  (c)  of this subdivision. The assessment may be performed
     9  directly by the district or pursuant to contract with the district.
    10    § 55. Subdivision 6 of section 422 of  the  social  services  law,  as
    11  amended  by  section  7 of part D of chapter 501 of the laws of 2012, is
    12  amended to read as follows:
    13    6. In all other cases, the record  of  the  report  to  the  statewide
    14  central register shall be expunged ten years after the eighteenth birth-
    15  day of the youngest child named in the report. In the case of a child in
    16  residential  care  the  record  of  the  report to the statewide central
    17  register shall be expunged ten years after the  reported  child's  eigh-
    18  teenth  birthday.  In  any case and at any time, the commissioner of the
    19  office of children and family services may amend any  record  upon  good
    20  cause  shown  and notice to the subjects of the report and other persons
    21  named  in  the  report.  Provided  however,  any  report  indicated  for
    22  maltreatment  based solely on the purchase, possession or consumption of
    23  cannabis, without  a  showing  that  the  child's  physical,  mental  or
    24  emotional  condition  was impaired or was in imminent danger of becoming
    25  impaired established by a fair preponderance of the evidence shall imme-
    26  diately be sealed upon a request pursuant to subdivision eight  of  this
    27  section or section four hundred twenty-four-a of this title.
    28    § 56. Intentionally omitted.
    29    §  57.  Subdivision  (a)  of  section  712 of the family court act, as
    30  amended by section 1 of part K of chapter 56 of the  laws  of  2019,  is
    31  amended to read as follows:
    32    (a) "Person in need of supervision". A person less than eighteen years
    33  of age: (i) who does not attend school in accordance with the provisions
    34  of  part  one  of  article  sixty-five of the education law; (ii) who is
    35  incorrigible, ungovernable or  habitually  disobedient  and  beyond  the
    36  lawful  control of a parent or other person legally responsible for such
    37  child's  care,  or  other  lawful  authority;  (iii)  who  violates  the
    38  provisions  of[: (1) section 221.05; or (2)] section 230.00 of the penal
    39  law; (iv) or who appears to be a sexually exploited child as defined  in
    40  paragraph  (a),  (c)  or  (d) of subdivision one of section four hundred
    41  forty-seven-a of the social services law, but only if the child consents
    42  to the filing of a petition under this article.
    43    § 58. Paragraph (iii) of subdivision (a) of section 1046 of the family
    44  court act, as amended by chapter 984 of the laws of 1981, is amended  to
    45  read as follows:
    46    (iii)  proof that a person repeatedly misuses a drug or drugs or alco-
    47  holic beverages, to the extent that it has or would ordinarily have  the
    48  effect  of  producing in the user thereof a substantial state of stupor,
    49  unconsciousness, intoxication, hallucination, disorientation, or  incom-
    50  petence,  or  a  substantial  impairment  of  judgment, or a substantial
    51  manifestation of irrationality, shall be prima  facie  evidence  that  a
    52  child  of  or  who  is  the  legal  responsibility  of  such person is a
    53  neglected child except that such  drug,  or  alcoholic  beverage  misuse
    54  shall  not be prima facie evidence of neglect when such person is volun-
    55  tarily  and  regularly  participating  in  a  recognized  rehabilitative
    56  program.  Provided  however,  the  sole fact that an individual consumes

        S. 854                             115

     1  cannabis, without a separate finding that the child's physical mental or
     2  emotional condition was impaired or is in imminent  danger  of  becoming
     3  impaired  established  by a fair preponderance of the evidence shall not
     4  be sufficient to establish prima facie evidence of neglect; and
     5    §  59.  Section 1 of chapter 174 of the laws of 1968, constituting the
     6  New York state urban development corporation act, is amended by adding a
     7  new section 16-ee to read as follows:
     8    § 16-ee. Loans to social and economic equity  applicants.  The  corpo-
     9  ration  is  authorized  and directed, on the recommendation of the state
    10  cannabis control board, to provide low interest or  zero-interest  loans
    11  to  qualified  social  and economic equity applicants as provided for in
    12  article four of the cannabis law.
    13    § 60. The division of state police shall, subject to available  appro-
    14  priations, increase the number of trained and certified drug recognition
    15  experts  within the state, and provide increased drug recognition aware-
    16  ness training under its drug  recognition  program.  The  department  of
    17  health  shall,  subject  to  available  appropriations, review available
    18  technologies approved for utilization in the recognition of drug impair-
    19  ment by operators of motor vehicles, with a focus on specific technology
    20  to recognize acute impairment as compared to habitual cannabis usage and
    21  submit a report on such technologies to the governor and the legislature
    22  by March 1, 2022.
    23    § 61. The commissioner of education shall, subject to available appro-
    24  priations, establish  a  grant  program  to  provide  awards  to  school
    25  districts and boards of cooperative educational services for the purpose
    26  of  establishing school-based programs for initiatives such as anti-vap-
    27  ing programs, drug prevention and awareness programs, the use of  liquid
    28  cannabis in vaping products, and the over-consumption of edible products
    29  that contain cannabis. Provided that such grants shall be awarded by the
    30  commissioner  of  education to applicants based on factors including but
    31  not limited to: (A) community and parental engagement;  (B)  the  appli-
    32  cant's  program  design  to meet the specific needs of students; and (C)
    33  proposal quality. Provided further, that such funds shall only  be  used
    34  to  supplement, and not supplant, current local expenditures of federal,
    35  state or local funds. Provided further, that no  district  or  board  of
    36  cooperative  educational services shall receive a grant in excess of the
    37  total actual grant expenditures incurred by the school district or board
    38  of cooperative educational services  in  the  current  school  year,  as
    39  approved by the commissioner of education.
    40    §  62.  The  commissioner  of  the  office  of  addiction services and
    41  supports, in consultation  with  the  commissioner  of  health  and  the
    42  commissioner  of  education, shall, subject to available appropriations,
    43  immediately to the extent possible execute the activities  described  in
    44  subdivision  3  of  section  99-jj of the state finance law, as added by
    45  section fifty-one of this act.
    46    § 63. Severability. If any provision or term of this act  is  for  any
    47  reason declared unconstitutional or invalid or ineffective by any compe-
    48  tent  jurisdiction,  such  decision shall not affect the validity of the
    49  effectiveness of the remaining portions of this act or any part thereof.
    50    § 64. This act shall take effect immediately; provided, however,  that
    51  sections  six  and  six-a of this act shall take effect six months after
    52  the full cannabis control board created by article two of  the  cannabis
    53  law  has  been appointed and provided that the governor shall notify the
    54  legislative bill drafting commission upon such full appointment in order
    55  that the commission may maintain an accurate and timely  effective  data
    56  base of the official text of the laws of the state of New York in furth-

        S. 854                             116

     1  erance  of  effectuating the provisions of section 44 of the legislative
     2  law and section 70-b of the public officers law; provided, further  that
     3  the  expungement  of  marihuana  convictions under section 160.50 of the
     4  criminal  procedure  law, added by the amendment in section seventeen of
     5  this act, shall occur promptly and in any event no later than  one  year
     6  after  the  effective  date  of  this  act;  and provided, further, that
     7  sections thirty-nine and forty of this act shall take  effect  April  1,
     8  2022,  and shall apply on and after such date to the sale or transfer of
     9  adult-use cannabis products to a retail dispensary;  provided,  further,
    10  that  the  amendments  to  article  179 of the penal law made by section
    11  forty-seven of this act shall not affect the repeal of such article  and
    12  shall  be  deemed  to be repealed therewith; provided, further, that the
    13  amendments to section 89-h of the state  finance  law  made  by  section
    14  fifty  of this act shall not affect the repeal of such section and shall
    15  be deemed repealed therewith.
feedback