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. LBD02565-02-1S. 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 orS. 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 onS. 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 actualS. 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 otherS. 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 andS. 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 toS. 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 CANNABISS. 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 forS. 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 andS. 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 maintenanceS. 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 inS. 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 underservedS. 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; andS. 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-useS. 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 termsS. 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 licenseeS. 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 aS. 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 shallS. 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 serviceS. 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 afterS. 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 appropriateS. 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 toS. 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 theS. 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 byS. 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 cannabisS. 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 theS. 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 conformsS. 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 mayS. 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" means47(a) the separated resin, whether crude or purified, obtained from a48plant of the genus Cannabis; or49(b) a material, preparation, mixture, compound or other substance50which contains more than two and one-half percent by weight of delta-951tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering52system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-53terpene numbering system.545.] "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 theS. 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,12whether growing or not; the seeds thereof; the resin extracted from any13part of the plant; and every compound, manufacture, salt, derivative,14mixture, or preparation of the plant, its seeds or resin. The term15"marihuana" shall not include:16(a) the mature stalks of the plant, fiber produced from the stalks,17oil or cake made from the seeds of the plant, any other compound, manu-18facture, salt, derivative, mixture, or preparation of the mature stalks19(except the resin extracted therefrom), fiber, oil, or cake, or the20sterilized seed of the plant which is incapable of germination;21(b) hemp, as defined in subdivision one of section five hundred five22of the agriculture and markets law;23(c) cannabinoid hemp as defined in subdivision two of section thirty-24three hundred ninety-eight of this chapter; or25(d) hemp extract as defined in subdivision five of section thirty-26three hundred ninety-eight of this chapter.2722.] 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-43cle] 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 internationallyS. 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 this36chapter] 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 private42automobiles]; 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 itsS. 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; [and368.] (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 lawS. 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 [or33section 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 in43article two hundred twenty or section 221.30 or 221.55 of the penal law,44to 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 a50felony defined in article two hundred twenty or section 221.30 or 221.5551of 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 theS. 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 theS. 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 [schedule37I(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 as45defined in paragraph (a) of subdivision four of section thirty-three46hundred 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 amended13this 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 orS. 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 theS. 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 inS. 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 in55the first degree as defined in section 221.30 of the penal law, criminal56sale of marihuana in the first degree as defined in section 221.55 ofS. 854 89 1the 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-26nal 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 [or33where the conviction is for a violation of section 221.30 of the penal34law, 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 221.3037of 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 in40article two hundred twenty or section 221.30 or 221.55 of the penal41law.] 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-47ing evidence that such person has committed an act in violation of arti-48cle 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 felonyS. 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 convicted4under section 221.10 of the penal law, only a person convicted under5subdivision two of such section, or a person convicted under subdivision6one of such section who stands previously convicted of any crime as7defined 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 the30conviction is for a violation of section 221.30 of this chapter, mari-31juana] 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 this34chapter, 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 anyS. 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 isS. 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) [All56definitions of terms applicable to title five-A of article thirty-threeS. 854 94 1of 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-31na] 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-40na] 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-25huana] cannabis from another registered organization shall obtain from 26 such registered organization information on where the medical [marihua-27na] 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 state47department 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 asS. 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-41sioner 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 [commissioner44or 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 the52commissioner 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 internalS. 854 97 1revenue 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 timeS. 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 hundredS. 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 receiveS. 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 ofS. 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 or30twenty-five plants or more, but less than four pounds or fifty plants,31or 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 possession35of four pounds or more or fifty plants or distribution of more than one36pound 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 of40eight pounds or more or seventy-five plants or more, but less than41sixteen pounds or one hundred plants, or distribution of more than five42pounds 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 [or45possession of sixteen pounds or more or one hundred plants or more or46distribution 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 personS. 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 sixty56of the public health law] section three of the cannabis law.S. 854 105 1 2. "Certification" means a certification, made under section [thirty-2three 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 [subdivision10nine 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 sixty21of 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 [subdivision25seven 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-43three 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 [title47five-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 threateningS. 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-3na] 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; andS. 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-26ty-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 and55substance abuse services] addiction services and supports, which shall 56 use that revenue for additional drug abuse prevention, counseling andS. 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 public6health 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 servicesS. 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 suchS. 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 toS. 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 forS. 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 consumesS. 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.
