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


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

Spectrum: Partisan Bill (Democrat 22-0)

Status: (Introduced) 2020-03-12 - PRINT NUMBER 1527C [S01527 Detail]

Download: New_York-2019-S01527-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         1527--C

                               2019-2020 Regular Sessions

                    IN SENATE

                                    January 15, 2019
                                       ___________

        Introduced by Sens. KRUEGER, BAILEY, BIAGGI, CARLUCCI, COMRIE, GIANARIS,
          HOYLMAN, JACKSON, KENNEDY, LIU, MAY, METZGER, MONTGOMERY, MYRIE, PARK-
          ER,  RAMOS,  RIVERA,  SALAZAR,  SANDERS, SAVINO, SEPULVEDA, SERRANO --
          read twice and ordered printed, and when printed to  be  committed  to
          the  Committee  on  Finance  --  committee  discharged,  bill amended,
          ordered reprinted as amended and  recommitted  to  said  committee  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee  --  recommitted  to  the  Committee  on
          Finance  in  accordance  with  Senate  Rule  6,  sec.  8  -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07592-36-0

        S. 1527--C                          2

          provisions of the public health law relating to  growing  of  cannabis
          and  medical  use of marihuana; to repeal article 221 of the penal law
          relating to offenses involving marihuana; to repeal paragraph  (f)  of
          subdivision  2  of section 850 of the general business law relating to
          drug related paraphernalia; to repeal certain provisions of the crimi-
          nal procedure law relating to certain criminal actions; and to  repeal
          certain  provisions  of  the  agriculture  and markets law relating to
          industrial hemp

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

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

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

        S. 1527--C                          3

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

        S. 1527--C                          4

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

        S. 1527--C                          5

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

        S. 1527--C                          6

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

        S. 1527--C                          7

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

    20                                  ARTICLE 2
    21                    NEW YORK STATE CANNABIS CONTROL BOARD

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

        S. 1527--C                          8

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

        S. 1527--C                          9

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

        S. 1527--C                         10

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

        S. 1527--C                         11

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

        S. 1527--C                         12

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

        S. 1527--C                         13

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

        S. 1527--C                         14

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

        S. 1527--C                         15

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

        S. 1527--C                         16

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

        S. 1527--C                         17

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

        S. 1527--C                         18

     1  after  notice,  be removed and shall divest themselves of such direct or
     2  indirect interests, in addition to any other penalty provided by law.

     3                                  ARTICLE 3
     4                              MEDICAL CANNABIS

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

        S. 1527--C                         19

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

        S. 1527--C                         20

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

        S. 1527--C                         21

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

        S. 1527--C                         22

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

        S. 1527--C                         23

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

        S. 1527--C                         24

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

        S. 1527--C                         25

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

        S. 1527--C                         26

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

        S. 1527--C                         27

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

        S. 1527--C                         28

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

        S. 1527--C                         29

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

        S. 1527--C                         30

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

        S. 1527--C                         31

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

        S. 1527--C                         32

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

    23                                  ARTICLE 4
    24                             ADULT-USE CANNABIS

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

        S. 1527--C                         33

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

        S. 1527--C                         34

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

        S. 1527--C                         35

     1    (e) the applicant possesses or has the right to use  sufficient  land,
     2  buildings,  and equipment to properly carry on the activity described in
     3  the application or has a plan to do so if qualifying  as  a  social  and
     4  economic equity applicant;
     5    (f)  the applicant qualifies as a social and economic equity applicant
     6  or sets out a plan for  benefiting  communities  and  people  dispropor-
     7  tionally impacted by  enforcement of cannabis laws;
     8    (g)  it is in the public interest that such license be granted, taking
     9  into consideration, but not limited to, the following criteria:
    10    (i) that it is a privilege, and not a right,  to  cultivate,  process,
    11  distribute, and sell adult-use cannabis;
    12    (ii) the number, classes, and character of other licenses in proximity
    13  to the location and in the particular municipality or subdivision there-
    14  of;
    15    (iii)  evidence  that  all necessary licenses and permits have been or
    16  will be obtained from the state and all other relevant governing bodies;
    17    (iv) effect of the grant of the license  on  pedestrian  or  vehicular
    18  traffic, and parking, in proximity to the location;
    19    (v) the existing noise level at the location and any increase in noise
    20  level that would be generated by the proposed premises;
    21    (vi)  the ability to mitigate adverse environmental impacts, including
    22  but not limited to water usage, energy usage and carbon emissions;
    23    (vii) the effect on the production and availability  of  cannabis  and
    24  cannabis products; and
    25    (viii) any other factors specified by law or regulation that are rele-
    26  vant  to  determine that granting a license would promote public conven-
    27  ience and advantage and the public interest of the community;
    28    (h) the applicant and its managing officers are of good moral  charac-
    29  ter  and  do  not  have  an  ownership  or  controlling interest in more
    30  licenses or permits than allowed by this chapter;
    31    (i) the applicant has entered into a  labor  peace  agreement  with  a
    32  bona-fide labor organization that is actively engaged in representing or
    33  attempting  to  represent the applicant's employees, and the maintenance
    34  of such a labor peace agreement shall be an ongoing  material  condition
    35  of  licensure. In evaluating applications from entities with twenty-five
    36  or more employees, the office shall give priority to applicants that are
    37  a party to a collective bargaining  agreement  with  a  bona-fide  labor
    38  organization  in  New  York or in another state, and uses union labor to
    39  construct its licensed facility;
    40    (j) the applicant will contribute to communities and people dispropor-
    41  tionately harmed by  enforcement  of  cannabis  laws  and  report  these
    42  contributions to the board;
    43    (k)  if  the  application  is for an adult-use cultivator or processor
    44  license, the environmental and energy  impact  of  the  facility  to  be
    45  licensed;
    46    (l)  the applicant satisfies any other conditions as determined by the
    47  board; and
    48    (m) if the applicant is a registered organization, the  organization's
    49  maintenance of effort in manufacturing and/or dispensing and/or research
    50  of medical cannabis for certified patients and caregivers.
    51    2. If the board is not satisfied that the applicant should be issued a
    52  license, the executive director shall notify the applicant in writing of
    53  the specific reason or reasons recommended by the board for denial.
    54    3.  The  state  cannabis  advisory  board  shall have the authority to
    55  recommend to the board the number of licenses issued  pursuant  to  this
    56  article  to ensure a competitive market where no licensee is dominant in

        S. 1527--C                         36

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

        S. 1527--C                         37

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

        S. 1527--C                         38

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

        S. 1527--C                         39

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

        S. 1527--C                         40

     1    2.  No  person  may have a direct or indirect financial or controlling
     2  interest in more than three adult-use retail dispensary licenses  issued
     3  pursuant to this chapter.
     4    3.  No  person  holding  a  retail dispensary license may also hold an
     5  adult-use cultivation, processor, microbusiness, cooperative or distrib-
     6  utor license pursuant to this article or be registered as  a  registered
     7  organization  pursuant to article three of this chapter, except for such
     8  organizations licensed pursuant to  sections  sixty-eight-a  and  sixty-
     9  eight-b of this article.
    10    4.  No  retail  license  shall be granted for any premises, unless the
    11  applicant shall be the owner thereof, or shall be  able  to  demonstrate
    12  possession of the premises within thirty days of initial approval of the
    13  license  through a lease, management agreement or other agreement giving
    14  the applicant control over the premises, in writing, for a term not less
    15  than the license period.
    16    5. With the exception of microbusiness licensees, no premises shall be
    17  licensed to sell  cannabis  products,  unless  said  premises  shall  be
    18  located  in  a  store, the principal entrance to which shall be from the
    19  street level and located on a public thoroughfare in premises which  may
    20  be occupied, operated or conducted for business, trade or industry.
    21    6. No cannabis retail license shall be granted for any premises within
    22  five  hundred  feet  of  a school grounds as such term is defined in the
    23  education law.
    24    § 73. Microbusiness license. 1. A microbusiness license shall  author-
    25  ize  the limited cultivation, processing, distribution and dispensing of
    26  their own adult-use cannabis and cannabis products.
    27    2. A microbusiness licensee may not hold interest in any other license
    28  and may only distribute  its  own  cannabis  and  cannabis  products  to
    29  dispensaries.
    30    3.  The size and scope of a microbusiness shall be determined by regu-
    31  lation by the board in consultation with the executive director and  the
    32  state  cannabis  advisory  board. Such licenses shall promote social and
    33  economic equity applicants as provided for in this chapter.
    34    § 74. Delivery license. A delivery license shall authorize the  deliv-
    35  ery of cannabis and cannabis products by licensees independent of anoth-
    36  er  adult-use cannabis license, provided that each delivery licensee may
    37  have a total of no more than twenty-five individuals, or the  equivalent
    38  thereof,  providing full-time paid delivery services, per week under one
    39  license. For the purposes of this section the  state  cannabis  advisory
    40  board  shall  provide  recommendations  to the board for the application
    41  process, license criteria, and scope of  licensed  activities  for  this
    42  class  of license.  No person may have a direct or indirect financial or
    43  controlling interest in more than one delivery  license.  Such  licenses
    44  shall  promote  social and economic equity applicants as provided for in
    45  this chapter.
    46    § 75. Nursery license.  1.  A  nursery  license  shall  authorize  the
    47  production, sale and distribution of clones, immature plants, seeds, and
    48  other  agricultural  products used specifically for the planting, propa-
    49  gation, and cultivation of cannabis. For the purposes of  this  section,
    50  the  office  shall provide recommendations to the board for the applica-
    51  tion process, license criteria and scope of licensed activities for this
    52  class of license. Such licenses shall promote social and economic equity
    53  applicants as provided for in this chapter.
    54    2. A person or entity holding a cultivators license may apply for, and
    55  obtain, one nursery license to sell directly to other cultivators, coop-
    56  eratives, or microbusinesses.

        S. 1527--C                         41

     1    § 76. Notification to municipalities of adult-use retail dispensary or
     2  on-site consumption license. 1. Not less than thirty days nor more  than
     3  two  hundred  seventy days before filing an application for licensure as
     4  an adult-use retail  dispensary  or  registered  organization  adult-use
     5  cultivator   processor  distributor  retail  dispensary  or  an  on-site
     6  consumption licensee, an applicant  shall  notify  the  municipality  in
     7  which the premises is located of such applicant's intent to file such an
     8  application.
     9    2.  Such  notification shall be made to the clerk of the village, town
    10  or city, as the case may  be,  wherein  the  premises  is  located.  For
    11  purposes of this section:
    12    (a) notification need only be given to the clerk of a village when the
    13  premises is located within the boundaries of the village; and
    14    (b)  in the city of New York, the community board established pursuant
    15  to section twenty-eight hundred of the New York city charter with juris-
    16  diction over the area in which the premises is located shall be  consid-
    17  ered the appropriate public body to which notification shall be given.
    18    3. Such notification shall be made in such form as shall be prescribed
    19  by the rules of the board.
    20    4.  When  a  city,  town, or village, and in New York city a community
    21  board, expresses an opinion for or against the granting of  such  regis-
    22  tration, license or permit application, any such opinion shall be deemed
    23  part of the record upon which the office makes its recommendation to the
    24  board  to  grant  or deny the application and the board shall respond in
    25  writing to such city, town, village or community board with an  explana-
    26  tion  of how such opinion was considered in the granting or denial of an
    27  application.
    28    5. Such notification shall be made  by:  (a)  certified  mail,  return
    29  receipt requested; (b) overnight delivery service with proof of mailing;
    30  or  (c)  personal  service  upon  the  offices of the clerk or community
    31  board.
    32    6. The board shall require such notification to be on  a  standardized
    33  form  that  can  be  obtained on the internet or from the board and such
    34  notification to include:
    35    (a) the trade name or "doing business as" name, if any, of the  estab-
    36  lishment;
    37    (b) the full name of the applicant;
    38    (c)  the  street  address  of  the  establishment, including the floor
    39  location or room number, if applicable;
    40    (d) the mailing address of the establishment, if  different  than  the
    41  street address;
    42    (e)  the  name, address and telephone number of the attorney or repre-
    43  sentative of the applicant, if any;
    44    (f) a statement indicating whether the application is for:
    45    (i) a new establishment;
    46    (ii) a transfer of an existing licensed business;
    47    (iii) a renewal of an existing license; or
    48    (iv) an alteration of an existing licensed premises;
    49    (g) if the establishment is a transfer or  previously  licensed  prem-
    50  ises,  the name of the old establishment and such establishment's regis-
    51  tration or license number;
    52    (h) in the case of a renewal or alteration application, the  registra-
    53  tion or license number of the applicant; and
    54    (i) the type of license.
    55    §  77.  Adult-use  on-site  consumption  license; provisions governing
    56  on-site consumption licenses.   1. No  applicant  shall  be  granted  an

        S. 1527--C                         42

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

        S. 1527--C                         43

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

        S. 1527--C                         44

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

        S. 1527--C                         45

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

        S. 1527--C                         46

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

        S. 1527--C                         47

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

        S. 1527--C                         48

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

        S. 1527--C                         49

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

        S. 1527--C                         50

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

        S. 1527--C                         51

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

        S. 1527--C                         52

     1  communities  have  been disproportionately impacted and how to assess if
     2  someone is a member of a community disproportionately impacted.
     3    6.  The  board  shall  actively promote applicants that foster racial,
     4  ethnic, and gender diversity in their workforce.
     5    7. Licenses issued under the social and economic equity plan shall not
     6  be transferred or sold within the first three years of issue, except  to
     7  a  qualified  social  and  economic  equity applicant and with the prior
     8  written approval of the board. In the event a social and economic equity
     9  applicant seeks to transfer or sell their license  at  any  point  after
    10  issue  and the transferee is to a person or entity that does not qualify
    11  as a social and economic equity applicant, the transfer agreement  shall
    12  require  the  new  license  holder  to  pay to the board any outstanding
    13  amount owed by the transferor to the board  as  repayment  of  any  loan
    14  issued by the board as well as any other fee or assessment as determined
    15  by the board.
    16    §  88.  Data  collection and reporting.  The board shall collect demo-
    17  graphic data on owners and employees in the adult-use cannabis  industry
    18  and shall annually publish such data in its annual report.
    19    §  89. Regulations.  The board shall promulgate regulations in consul-
    20  tation with the state cannabis advisory board to implement this article.

    21                                  ARTICLE 5
    22                      CANNABINOID HEMP AND HEMP EXTRACT

    23  Section 90.  Definitions.
    24          91.  Rulemaking authority.
    25          92.  Cannabinoid hemp processor license.
    26          93.  Cannabinoid hemp retailer license.
    27          94.  Cannabinoid license applications.
    28          95.  Information to be requested in applications for licenses.
    29          96.  Fees.
    30          97.  Selection criteria.
    31          98.  License renewal.
    32          99.  Form of license.
    33          100. Transferability; amendment to license; change in  ownership
    34                 or control.
    35          101. Granting, suspending or revoking licenses.
    36          102. Record keeping and tracking.
    37          103. Packaging   and  labeling  of  cannabinoid  hemp  and  hemp
    38                 extract.
    39          104. Processing of cannabinoid hemp and hemp extract.
    40          105. Laboratory testing.
    41          106. New York hemp product.
    42          107. Penalties.
    43          108. Hemp workgroup.
    44          109. Prohibitions.
    45          110. Special use permits.
    46          111. Severability.
    47    § 90. Definitions. As used in this article, the following terms  shall
    48  have  the following meanings, unless the context clearly requires other-
    49  wise:
    50    1. "Cannabinoid" means the phytocannabinoids found in  hemp  and  does
    51  not  include  synthetic cannabinoids as that term is defined in subdivi-
    52  sion (g) of schedule I of section thirty-three hundred six of the public
    53  health law.

        S. 1527--C                         53

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

        S. 1527--C                         54

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

        S. 1527--C                         55

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

        S. 1527--C                         56

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

        S. 1527--C                         57

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

        S. 1527--C                         58

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

        S. 1527--C                         59

     1                                  ARTICLE 6
     2                             GENERAL PROVISIONS

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

        S. 1527--C                         60

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

        S. 1527--C                         61

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

        S. 1527--C                         62

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

        S. 1527--C                         63

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

        S. 1527--C                         64

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

        S. 1527--C                         65

     1  ly member, shall have an interest or voting  rights  in  any  laboratory
     2  testing permittee.
     3    4.  The board shall require that the permitted laboratory report test-
     4  ing results to the board in a manner, form and timeframe  as  determined
     5  by the office.
     6    5.  The  board  is  authorized  to  promulgate  regulations, requiring
     7  permitted laboratories to perform certain tests and services.
     8    6. A laboratory granted a laboratory testing permit under this chapter
     9  shall not required to be licensed by the federal drug enforcement  agen-
    10  cy.
    11    §  130.  Special use permits.  The board is hereby authorized to issue
    12  the following kinds of permits for  carrying  on  activities  consistent
    13  with  the  policy  and purpose of this chapter with respect to cannabis.
    14  The board has the authority to set fees for all permits issued  pursuant
    15  to  this  section,  to  establish  the  periods during which permits are
    16  authorized, and to make rules and regulations, including emergency regu-
    17  lations, to implement this section.
    18    1. Industrial cannabis permit - to purchase cannabis from one  of  the
    19  entities  licensed  by  the board for use in the manufacture and sale of
    20  any of the following, when such cannabis is not otherwise  suitable  for
    21  consumption  purposes,  namely:   (a) apparel, energy, paper, and tools;
    22  (b) scientific, chemical, mechanical and industrial products; or (c) any
    23  other industrial use as determined by the board in regulation.
    24    2. Trucking permit - to allow for the trucking  or  transportation  of
    25  cannabis  products,  or medical cannabis by a person other than a regis-
    26  tered organization or licensee under this chapter.
    27    3. Warehouse permit - to allow for the storage of  cannabis,  cannabis
    28  products,  or medical cannabis at a location not otherwise registered or
    29  licensed by the office.
    30    4. Packaging permit - to authorize a licensed cannabis distributor  to
    31  sort,  package,  label  and  bundle  cannabis  products from one or more
    32  registered organizations or licensed processors, on the premises of  the
    33  licensed  cannabis  distributor or at a warehouse for which a permit has
    34  been issued under this section.
    35    § 131.  Local  opt-out;  municipal  control  and  preemption.  1.  The
    36  provisions  of  article four of this chapter authorizing the retail sale
    37  of adult-use cannabis to cannabis consumers shall not be applicable to a
    38  town, city or village which, after a mandatory referendum held  pursuant
    39  to  section  twenty-three of the municipal home rule law, adopts a local
    40  law to prohibit the establishment  or  operation  of  retail  dispensary
    41  licenses contained in article four of this chapter, within the jurisdic-
    42  tion  of the town, city or village. Provided, however, that any town law
    43  shall apply to the area of the town outside of any village  within  such
    44  town.
    45    2.  Except  as  provided  for  in subdivision one of this section, all
    46  county, town, city and village governing  bodies  are  hereby  preempted
    47  from  adopting any rule, ordinance, regulation or prohibition pertaining
    48  to the operation or licensure  of  registered  organizations,  adult-use
    49  cannabis  licenses  or  hemp  licenses. However, municipalities may pass
    50  local laws and ordinances  governing  the  time,  place  and  manner  of
    51  licensed adult-use cannabis retail dispensaries, provided such ordinance
    52  or  regulation  does  not  make  the  operation  of such licensed retail
    53  dispensaries unreasonably impracticable as determined by  the  board  in
    54  consultation with the state cannabis advisory board.
    55    §  132.  Penalties  for  violation  of this chapter. 1. Any person who
    56  cultivates for sale or sells cannabis,  cannabis  products,  or  medical

        S. 1527--C                         66

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

        S. 1527--C                         67

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

        S. 1527--C                         68

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

        S. 1527--C                         69

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

        S. 1527--C                         70

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

        S. 1527--C                         71

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

        S. 1527--C                         72

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

        S. 1527--C                         73

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

        S. 1527--C                         74

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

        S. 1527--C                         75

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

        S. 1527--C                         76

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

        S. 1527--C                         77

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

        S. 1527--C                         78

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

        S. 1527--C                         79

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

        S. 1527--C                         80

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

        S. 1527--C                         81

     1    § 13. Subdivision 3 of section 220.34 of the penal law is REPEALED.
     2    § 14. Subdivision 6 of section 220.00 of the penal law is REPEALED.
     3    § 15. Article 221 of the penal law is REPEALED.
     4    §  16. The penal law is amended by adding a new article 222 to read as
     5  follows:
     6                                 ARTICLE 222
     7                                  CANNABIS
     8  Section 222.00 Cannabis; definitions.
     9          222.05 Personal use of cannabis.
    10          222.10 Restrictions on cannabis use.
    11          222.15 Personal cultivation of cannabis.
    12          222.20 Licensing  of  cannabis  production   and   distribution;
    13                   defense.
    14          222.25 Unlawful possession of cannabis.
    15          222.30 Criminal possession of cannabis in the third degree.
    16          222.35 Criminal possession of cannabis in the second degree.
    17          222.40 Criminal possession of cannabis in the first degree.
    18          222.45 Unlawful sale of cannabis.
    19          222.50 Criminal sale of cannabis in the third degree.
    20          222.55 Criminal sale of cannabis in the second degree.
    21          222.60 Criminal sale of cannabis in the first degree.
    22          222.65 Aggravated criminal sale of cannabis.
    23  § 222.00 Cannabis; definitions.
    24    1.  "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 in section
    34  three of the cannabis law.
    35    2. "Concentrated cannabis" means:
    36    (a)  the  separated  resin, whether crude or purified, obtained from a
    37  plant of the genus Cannabis; or
    38    (b) a material, preparation,  mixture,  compound  or  other  substance
    39  which  contains more than three percent by weight of delta-9 tetrahydro-
    40  cannabinol, or its isomer, delta-8  dibenzopyran  numbering  system,  or
    41  delta-1  tetrahydrocannabinol  or  its  isomer,  delta 1 (6) monoterpene
    42  numbering system.
    43    3. For the purposes of  this  article,  "sell"  shall  mean  to  sell,
    44  exchange  or  dispose  of for compensation. "Sell" shall not include the
    45  transfer of cannabis or concentrated cannabis between persons twenty-one
    46  years of age or older without compensation in the quantities  authorized
    47  in paragraph (b) of subdivision one of section 222.05 of this article.
    48    4.  For  the  purposes  of this article, "smoking" shall have the same
    49  meaning as that term is defined in section three of the cannabis law.
    50  § 222.05 Personal use of cannabis.
    51    Notwithstanding any other provision of law to the contrary:
    52    1. The following acts are lawful for persons twenty-one years  of  age
    53  or  older:  (a) possessing, displaying, purchasing, obtaining, or trans-
    54  porting up to three ounces of cannabis and up to  twenty-four  grams  of
    55  concentrated cannabis;

        S. 1527--C                         82

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

        S. 1527--C                         83

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

        S. 1527--C                         84

     1    1. cannabis and such cannabis weighs more than sixteen ounces; or
     2    2.  concentrated  cannabis  and such concentrated cannabis weighs more
     3  than five ounces.
     4    Criminal possession of cannabis in the  third  degree  is  a  class  A
     5  misdemeanor.
     6  § 222.35 Criminal possession of cannabis in the second degree.
     7    A  person  is  guilty of criminal possession of cannabis in the second
     8  degree when he or she knowingly and unlawfully possesses:
     9    1. cannabis and such cannabis weighs more than five pounds; or
    10    2. concentrated cannabis and such concentrated  cannabis  weighs  more
    11  than two pounds.
    12    Criminal  possession  of  cannabis  in  the second degree is a class E
    13  felony.
    14  § 222.40 Criminal possession of cannabis in the first degree.
    15    A person is guilty of criminal possession of  cannabis  in  the  first
    16  degree when he or she knowingly and unlawfully possesses:
    17    1. cannabis and such cannabis weighs more than ten pounds; or
    18    2.  concentrated  cannabis  and such concentrated cannabis weighs more
    19  than four pounds.
    20    Criminal possession of cannabis in the first degree is a class D felo-
    21  ny.
    22  § 222.45 Unlawful sale of cannabis.
    23    A person is guilty of unlawful sale of cannabis when he or  she  know-
    24  ingly and unlawfully sells cannabis or concentrated cannabis.
    25    Unlawful  sale  of cannabis is a violation punishable by a fine of not
    26  more than two hundred fifty dollars.
    27  § 222.50 Criminal sale of cannabis in the third degree.
    28    A person is guilty of criminal sale of cannabis in  the  third  degree
    29  when:
    30    1.  he or she knowingly and unlawfully sells more than three ounces of
    31  cannabis or more than twenty-four grams of concentrated cannabis; or
    32    2. being twenty-one years of age or older, he  or  she  knowingly  and
    33  unlawfully  sells  or  gives, or causes to be given or sold, cannabis or
    34  concentrated cannabis to a person less than  twenty-one  years  of  age;
    35  except  that  in any prosecution under this subdivision, it is a defense
    36  that the defendant was less than three years older than the person under
    37  the age of twenty-one at the time of the offense. This subdivision shall
    38  not apply to designated caregivers, practitioners, employees of a regis-
    39  tered organization or  employees  of  a  designated  caregiver  facility
    40  acting in compliance with article three of the cannabis law.
    41    Criminal  sale  of cannabis in the third degree is a class A misdemea-
    42  nor.
    43  § 222.55 Criminal sale of cannabis in the second degree.
    44    A person is guilty of criminal sale of cannabis in the  second  degree
    45  when:
    46    1.  he  or she knowingly and unlawfully sells more than sixteen ounces
    47  of cannabis or more than five ounces of concentrated cannabis; or
    48    2. being twenty-one years of age or older, he  or  she  knowingly  and
    49  unlawfully  sells  or  gives,  or  causes to be given or sold, more than
    50  three ounces of cannabis or more than twenty-four grams of  concentrated
    51  cannabis  to  a person less than eighteen years of age. This subdivision
    52  shall not apply to designated caregivers, practitioners, employees of  a
    53  registered  organization or employees of a designated caregiver facility
    54  acting in compliance with article three of the cannabis law.
    55    Criminal sale of cannabis in the second degree is a class E felony.
    56  § 222.60 Criminal sale of cannabis in the first degree.

        S. 1527--C                         85

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

        S. 1527--C                         86

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

        S. 1527--C                         87

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

        S. 1527--C                         88

     1  such  conviction,  such lesser offense shall be considered a misdemeanor
     2  or violation, as the case may be, for all purposes. When  a  misdemeanor
     3  conviction is vacated pursuant to this section and a lesser offense that
     4  is  a  violation is substituted for such conviction, such lesser offense
     5  shall be considered a violation for all purposes.
     6    (d) Nothing in this section is intended to or shall diminish or  abro-
     7  gate  any  rights  or remedies otherwise available to a defendant, peti-
     8  tioner or applicant. Relief under this  section  is  available  notwith-
     9  standing  that  the  judgment  was  for  a  violation of former sections
    10  221.05, 221.10, 221.15, 221.20, 221.35 or 221.40 of  the  penal  law  in
    11  effect prior to the effective date of this paragraph and that the under-
    12  lying  action  or  proceeding  has  already  been vacated, dismissed and
    13  expunged.
    14    (e) Nothing in this and related sections of law is intended to  dimin-
    15  ish or abrogate the finality of judgments in any case not falling within
    16  the purview of this section.
    17    (f)  The  provisions  of  this  section  shall  be available, used and
    18  applied in parallel fashion by the family court and the criminal  courts
    19  to juvenile delinquency adjudications, adolescent offender adjudications
    20  and youthful offender adjudications.
    21    (g)  The chief administrator of the courts shall promulgate all neces-
    22  sary rules and make available all necessary forms to enable  the  filing
    23  of the petitions and applications provided in this section no later than
    24  sixty  days  following the effective date of this section. All sentences
    25  eligible for automatic vacatur, dismissal and  expungement  pursuant  to
    26  subdivision  one  of  this  section shall be identified and the required
    27  entities notified within one year of the effective date of this section.
    28    § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
    29  procedure law, as amended by chapter 37 of the laws of 2014, is  amended
    30  to read as follows:
    31    (c)  Criminal  possession  of  a  controlled  substance in the seventh
    32  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
    33  possession  of  a controlled substance in the fifth degree as defined in
    34  section 220.06 of the penal law, criminal  possession  of  a  controlled
    35  substance in the fourth degree as defined in section 220.09 of the penal
    36  law,  criminal  possession of a controlled substance in the third degree
    37  as defined in section 220.16 of the penal law, criminal possession of  a
    38  controlled  substance  in the second degree as defined in section 220.18
    39  of the penal law, criminal possession of a controlled substance  in  the
    40  first  degree  as  defined  in section 220.21 of the penal law, criminal
    41  sale of a controlled substance in the fifth degree as defined in section
    42  220.31 of the penal law, criminal sale of a controlled substance in  the
    43  fourth  degree  as  defined in section 220.34 of the penal law, criminal
    44  sale of a controlled substance in the third degree as defined in section
    45  220.39 of the penal law, criminal sale of a controlled substance in  the
    46  second  degree  as  defined in section 220.41 of the penal law, criminal
    47  sale of a controlled substance in the first degree as defined in section
    48  220.43 of the penal law, criminally possessing a  hypodermic  instrument
    49  as  defined  in  section  220.45  of  the  penal law, criminal sale of a
    50  prescription for a controlled substance or a controlled substance  by  a
    51  practitioner  or  pharmacist  as  defined in section 220.65 of the penal
    52  law, criminal possession of methamphetamine  manufacturing  material  in
    53  the  second degree as defined in section 220.70 of the penal law, crimi-
    54  nal possession of methamphetamine manufacturing material  in  the  first
    55  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
    56  possession of precursors of methamphetamine as defined in section 220.72

        S. 1527--C                         89

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

        S. 1527--C                         90

     1  ing evidence that such person has committed an act in violation of arti-
     2  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
     3    §  27.  Subdivision 13 of section 89-f of the general business law, as
     4  added by chapter 336 of the laws of 1992, is amended to read as follows:
     5    13. "Serious offense" shall mean any  felony  involving  the  offenses
     6  enumerated  in  the  closing  paragraph  of this subdivision; a criminal
     7  solicitation of or a conspiracy to commit or an attempt to commit  or  a
     8  criminal  facilitation  of a felony involving the offenses enumerated in
     9  the closing paragraph of this subdivision, which criminal  solicitation,
    10  conspiracy, attempt or criminal facilitation itself constitutes a felony
    11  or  any  offense  in  any  other jurisdiction which if committed in this
    12  state would constitute a felony; any offense in any  other  jurisdiction
    13  which if committed in this state would constitute a felony provided that
    14  for the purposes of this article, none of the following shall be consid-
    15  ered  criminal  convictions  or  reported  as such: (i) a conviction for
    16  which an executive pardon has been issued pursuant to the executive law;
    17  (ii) a conviction which has been vacated  and  replaced  by  a  youthful
    18  offender  finding pursuant to article seven hundred twenty of the crimi-
    19  nal procedure law, or the applicable provisions  of  law  of  any  other
    20  jurisdiction;  or  (iii)  a  conviction  the  records of which have been
    21  sealed pursuant to the applicable provisions of the laws of  this  state
    22  or  of  any  other  jurisdiction;  and (iv) a conviction for which other
    23  evidence of successful rehabilitation to remove the disability has  been
    24  issued.
    25    Felonies involving: assault, aggravated assault and reckless endanger-
    26  ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
    27  manslaughter and murder pursuant to article one hundred twenty-five; sex
    28  offenses pursuant to article one hundred thirty; unlawful  imprisonment,
    29  kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
    30  criminal trespass and burglary pursuant to article  one  hundred  forty;
    31  criminal  mischief,  criminal  tampering  and  tampering with a consumer
    32  product pursuant to article one hundred forty-five;  arson  pursuant  to
    33  article one hundred fifty; larceny and offenses involving theft pursuant
    34  to article one hundred fifty-five; offenses involving computers pursuant
    35  to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
    36  hundred sixty; criminal possession of stolen property pursuant to  arti-
    37  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
    38  article one hundred seventy; involving false written statements pursuant
    39  to article one hundred seventy-five; commercial bribing  and  commercial
    40  bribe  receiving pursuant to article one hundred eighty; criminal imper-
    41  sonation and scheme to defraud pursuant to article one  hundred  ninety;
    42  bribery involving public servants and related offenses pursuant to arti-
    43  cle  two  hundred;  perjury and related offenses pursuant to article two
    44  hundred ten; tampering with a witness, intimidating a victim or  witness
    45  and  tampering  with  physical  evidence pursuant to article two hundred
    46  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
    47  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    48  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    49  220.41,  220.43 and 220.44; criminal sale of [marijuana] cannabis pursu-
    50  ant to sections [221.45, 221.50 and 221.55] 222.55, 222.60  and  222.65;
    51  riot  in  the  first  degree, aggravated harassment in the first degree,
    52  criminal nuisance in the first degree and falsely reporting an  incident
    53  in the second or first degree pursuant to article two hundred forty; and
    54  crimes  against public safety pursuant to article two hundred sixty-five
    55  of the penal law.

        S. 1527--C                         91

     1    § 28. Paragraph (f) of subdivision 2 of section  850  of  the  general
     2  business law is REPEALED.
     3    §  29.  Paragraph  (h)  of subdivision 2 of section 850 of the general
     4  business law, as amended by chapter 812 of the laws of 1980, is  amended
     5  to read as follows:
     6    (h)  Objects, used or designed for the purpose of ingesting, inhaling,
     7  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
     8  into the human body.
     9    § 30. Subdivision 7 of section 995 of the executive law, as amended by
    10  chapter 19 of the laws of 2012, is amended to read as follows:
    11    7. "Designated offender"  means  a  person  convicted  of  any  felony
    12  defined  in  any  chapter  of  the  laws of the state or any misdemeanor
    13  defined in the penal law [except that  where  the  person  is  convicted
    14  under  section  221.10  of  the penal law, only a person convicted under
    15  subdivision two of such section, or a person convicted under subdivision
    16  one of such section who stands previously  convicted  of  any  crime  as
    17  defined in subdivision six of section 10.00 of the penal law].
    18    § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
    19  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    20  56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
    21  laws of 1990, are amended to read as follows:
    22    (b) three or more violations of any of the felonies defined in section
    23  220.09,  220.16,  220.18,  220.21,  220.31,  220.34,   220.39,   220.41,
    24  220.43[,]  or  220.77[,  or 221.55] of this chapter, which violations do
    25  not constitute a single criminal offense as defined in  subdivision  one
    26  of  section  40.10  of  the criminal procedure law, or a single criminal
    27  transaction, as defined in paragraph (a) of subdivision two  of  section
    28  40.10  of the criminal procedure law, and at least one of which resulted
    29  in a conviction of such offense,  or  where  the  accusatory  instrument
    30  charges  one  or more of such felonies, conviction upon a plea of guilty
    31  to a felony for which such plea is otherwise authorized by law; or
    32    (c) a conviction of a  person  for  a  violation  of  section  220.09,
    33  220.16,  220.34[,]  or 220.39[, or 221.30] of this chapter, or where the
    34  accusatory instrument charges any such felony, conviction upon a plea of
    35  guilty to a felony for which the plea is otherwise  authorized  by  law,
    36  together  with evidence which: (i) provides substantial indicia that the
    37  defendant used the real property  to  engage  in  a  continual,  ongoing
    38  course  of  conduct involving the unlawful mixing, compounding, manufac-
    39  turing, warehousing, or packaging of controlled substances [or where the
    40  conviction is for a violation of section 221.30 of this  chapter,  mari-
    41  juana] as part of an illegal trade or business for gain; and (ii) estab-
    42  lishes, where the conviction is for possession of a controlled substance
    43  [or  where  the  conviction is for a violation of section 221.30 of this
    44  chapter, marijuana], that such possession was with the  intent  to  sell
    45  it.
    46    §  32. Paragraph (c) of subdivision 4 of section 509-cc of the vehicle
    47  and traffic law, as amended by chapter 368  of  the  laws  of  2015,  is
    48  amended to read as follows:
    49    (c)  The  offenses referred to in subparagraph (i) of paragraph (b) of
    50  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    51  of this section that result in disqualification for  a  period  of  five
    52  years  shall include a conviction under sections 100.10, 105.13, 115.05,
    53  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    54  125.40,  125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17,
    55  140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06,  220.09,
    56  220.16, 220.31, 220.34, 220.60, 220.65, [221.30, 221.50, 221.55,] subdi-

        S. 1527--C                         92

     1  vision two of section 222.50, subdivision two of section 222.55, 230.00,
     2  230.05,  230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05, 235.06,
     3  235.07, 235.21, 240.06,  245.00,  260.10,  subdivision  two  of  section
     4  260.20  and  sections  260.25,  265.02,  265.03, 265.08, 265.09, 265.10,
     5  265.12, 265.35 of the penal law or an attempt to commit any of the afor-
     6  esaid offenses under section 110.00 of the penal  law,  or  any  similar
     7  offenses  committed  under  a  former  section  of the penal law, or any
     8  offenses committed under a former section of the penal law  which  would
     9  constitute violations of the aforesaid sections of the penal law, or any
    10  offenses  committed outside this state which would constitute violations
    11  of the aforesaid sections of the penal law.
    12    § 33. The opening paragraph of  paragraph  (a)  of  subdivision  2  of
    13  section  1194  of the vehicle and traffic law, as amended by chapter 196
    14  of the laws of 1996, is amended to read as follows:
    15    When authorized. Any person who operates a motor vehicle in this state
    16  shall be deemed to have given consent to a chemical test of one or  more
    17  of  the  following:    breath,  blood[,]  or urine[, or saliva,] for the
    18  purpose of determining the alcoholic and/or  drug  content,  other  than
    19  cannabis  content  including  but  not  limited  to tetrahydrocannabinol
    20  content, of the blood provided that such test is administered by  or  at
    21  the  direction  of  a  police officer with respect to a chemical test of
    22  breath, urine [or saliva] or, with respect to a chemical test of  blood,
    23  at the direction of a police officer:
    24    §  34. The article heading of article 20-B of the tax law, as added by
    25  chapter 90 of the laws of 2014, is amended to read as follows:
    26                  EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
    27    § 35. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
    28  section  3  of  part XX of chapter 59 of the laws of 2019, is amended to
    29  read as follows:
    30    1. All taxes, interest, penalties and fees collected  or  received  by
    31  the commissioner or the commissioner's duly authorized agent under arti-
    32  cles nine (except section one hundred eighty-two-a thereof and except as
    33  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    34  twelve-A (except as otherwise provided in section  two  hundred  eighty-
    35  four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in
    36  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    37  (except  as otherwise provided in section four hundred eighty-two there-
    38  of), twenty-B, twenty-C, twenty-D, twenty-one, twenty-two,  twenty-four,
    39  twenty-six, twenty-eight (except as otherwise provided in section eleven
    40  hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
    41  nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
    42  hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
    43  chapter shall be deposited daily in one account  with  such  responsible
    44  banks,  banking  houses  or  trust companies as may be designated by the
    45  comptroller, to the credit of the comptroller. Such an  account  may  be
    46  established  in one or more of such depositories. Such deposits shall be
    47  kept separate and apart from all other money in the  possession  of  the
    48  comptroller.  The  comptroller  shall require adequate security from all
    49  such depositories. Of the total revenue collected or received under such
    50  articles of this chapter, the comptroller  shall  retain  in  the  comp-
    51  troller's  hands  such  amount  as  the commissioner may determine to be
    52  necessary for refunds or reimbursements  under  such  articles  of  this
    53  chapter  out  of  which  amount the comptroller shall pay any refunds or
    54  reimbursements to which taxpayers shall be entitled under the provisions
    55  of such articles of this chapter. The commissioner and  the  comptroller
    56  shall  maintain  a  system  of  accounts  showing  the amount of revenue

        S. 1527--C                         93

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

        S. 1527--C                         94

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

        S. 1527--C                         95

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

        S. 1527--C                         96

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

        S. 1527--C                         97

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

    27                                ARTICLE 20-C
    28                     TAX ON ADULT-USE CANNABIS PRODUCTS
    29  Section 492. Definitions.
    30          493. Tax on cannabis.
    31          494. Registration and renewal.
    32          495. Returns and payment of tax.
    33          496. Returns to be kept secret.
    34    §  492. Definitions. For purposes of this article, the following defi-
    35  nitions shall apply:
    36    (a) "Cannabis" shall have the same meaning as in section three of  the
    37  cannabis  law.   For purposes of this article, cannabis does not include
    38  medical cannabis or cannabinoid hemp and  hemp  extract  as  defined  in
    39  section three of the cannabis law.
    40    (b)  "Cannabis product" or "adult-use cannabis product" means a canna-
    41  bis product as defined  in  section  three  of  the  cannabis  law.  For
    42  purposes  of this article, under no circumstances shall adult-use canna-
    43  bis product include  medical  cannabis  or  cannabinoid  hemp  and  hemp
    44  extract as defined in section three of the cannabis law.
    45    (c)  "Person"  means  every individual, partnership, limited liability
    46  company, society, association, joint stock company, corporation, estate,
    47  receiver, trustee, assignee, referee, and any other person acting  in  a
    48  fiduciary  or  representative  capacity, whether appointed by a court or
    49  otherwise, and any combination of the foregoing.
    50    (d) "Retail dispensary" means a dispensary licensed to sell  adult-use
    51  cannabis products pursuant to section seventy-two of the cannabis law.
    52    (e)  "Transfer"  means  to  grant,  convey,  hand  over, assign, sell,
    53  exchange or barter, in any manner or  by  any  means,  with  or  without
    54  consideration.

        S. 1527--C                         98

     1    (f)  "Sale"  means any transfer of title, possession or both, exchange
     2  or barter, rental, lease or license to use or  consume,  conditional  or
     3  otherwise,  in any manner or by any means whatsoever for a consideration
     4  or any agreement therefor.
     5    §  493. Tax on cannabis. (a) There is hereby imposed a tax on the sale
     6  or transfer of adult-use cannabis products by any  person  to  a  retail
     7  dispensary  at  the  rate  of eighteen percent of the amount  charged by
     8  such person for  adult-use cannabis products, which shall accrue at  the
     9  time  of  such sale or transfer. Where the retail dispensary is operated
    10  by a person licensed under the cannabis law as  a  registered  organiza-
    11  tion,  such  tax  shall  be paid by the retail dispensary at the rate of
    12  eighteen percent of the price charged to the retail customer  and  shall
    13  accrue at the time of such sale.
    14    (b)  In  addition  to  the  taxes  imposed  by subdivision (a) of this
    15  section, there is hereby imposed a  tax  on  the  sale  or  transfer  of
    16  adult-use  cannabis products by any person to a retail dispensary at the
    17  rate of one percent of the  amount  charged  by  such  person  for  such
    18  adult-use cannabis products, which shall accrue at the time of such sale
    19  or  transfer.  The tax imposed by this subdivision shall be in trust for
    20  and on account of a city having a population of one million or more,  or
    21  a  county,  other  than a county wholly within such a city, in which the
    22  retail dispensary is located. Where the retail dispensary is operated by
    23  a person licensed under the cannabis law as a  registered  organization,
    24  such  tax  shall  be  paid  by  the retail dispensary at the rate of one
    25  percent of the price charged to the retail customer.
    26    (c) In addition to the taxes imposed by subdivisions (a)  and  (b)  of
    27  this  section,  there is hereby imposed a tax on the sale or transfer of
    28  adult-use cannabis products by any person to a retail dispensary at  the
    29  rate  of  three  percent  of  the amount charged by such person for such
    30  adult-use cannabis products, which shall accrue at the time of such sale
    31  or transfer. The tax imposed by this subdivision shall be in  trust  for
    32  and on account of the town, village, or city in which the retail dispen-
    33  sary  is  located.  Where  the retail dispensary is operated by a person
    34  licensed under the cannabis law as a registered organization,  such  tax
    35  shall  be  paid by the retail dispensary at the rate of three percent of
    36  the price charged to the retail customer.
    37    (d) It shall be presumed that all adult-use cannabis  products  within
    38  the  state are subject to tax until the contrary is established, and the
    39  burden of proof that the taxes imposed by subdivisions (a), (b) and  (c)
    40  of  this  section  have been paid shall be upon the person in possession
    41  thereof where such person holds any  license  under  the  cannabis  law.
    42  Every  person  holding  a  license  under the cannabis law who possesses
    43  adult-use cannabis products upon which such taxes  have  not  been  paid
    44  shall  be  liable for the payment of such taxes, and the failure of such
    45  person to produce to the commissioner or his or her authorized represen-
    46  tative upon demand an invoice for any adult-use cannabis products in his
    47  or her possession shall be presumptive evidence that the tax thereon has
    48  not been paid and that such person is liable for the tax thereon, unless
    49  evidence of such invoice or payment is later produced.
    50    (e) Notwithstanding any other provision of law to  the  contrary,  the
    51  taxes  imposed  by article twenty of this chapter shall not apply to any
    52  product subject to tax under this article.
    53    § 494. Registration and renewal.  (a) Every person to  whom  adult-use
    54  cannabis  products are sold or transferred, and every person licensed as
    55  a microbusiness, cooperative or registered organization under the canna-
    56  bis law must file with the commissioner a properly completed application

        S. 1527--C                         99

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

        S. 1527--C                         100

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

        S. 1527--C                         101

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

        S. 1527--C                         102

     1  of such person, a certified copy of any return or report filed  by  such
     2  person  pursuant  to  this  article,  nor to prohibit the publication of
     3  statistics so classified as to prevent the identification of  particular
     4  returns or reports and the items thereof. This section shall also not be
     5  construed  to  prohibit the disclosure, for tax administration purposes,
     6  to the division of the budget and the office of the  state  comptroller,
     7  of  information  aggregated  from  the  returns filed by all wholesalers
     8  purchasing and selling such products in the state, whether the number of
     9  such persons is one or more. Provided further that, notwithstanding  the
    10  provisions  of  this  subdivision,  the  commissioner  may in his or her
    11  discretion, permit the proper officer of any county entitled to  receive
    12  any distribution of the monies received on account of the tax imposed by
    13  subdivisions  (b)  and  (c) of section four hundred ninety-three of this
    14  article, or the authorized representative of such  officer,  to  inspect
    15  any  return  filed under this article, or may furnish to such officer or
    16  the officer's authorized representative an abstract of any  such  return
    17  or  supply such officer or representative with information concerning an
    18  item contained in any such return, or disclosed by any investigation  of
    19  tax liability under this article.
    20    (b)  The commissioner, in his or her discretion, may permit the appro-
    21  priate officers of any other state that regulates or taxes  cannabis  or
    22  the  duly authorized representatives of such commissioner or of any such
    23  officers, to inspect returns or reports made pursuant to  this  article,
    24  or  may furnish to the commissioner or other officer, or duly authorized
    25  representatives, a copy of any such return or report or an  abstract  of
    26  the information therein contained, or any portion thereof, or may supply
    27  such  commissioner  or  any  such  officers or such representatives with
    28  information relating to the business of a wholesaler making  returns  or
    29  reports hereunder solely for purposes of tax administration. The commis-
    30  sioner  may refuse to supply information pursuant to this subdivision to
    31  the officers of any other state if the statutes of the state represented
    32  by such officers do not grant substantially similar  privileges  to  the
    33  commissioner, but such refusal shall not be mandatory. Information shall
    34  not  be supplied to the appropriate officers of any state that regulates
    35  or taxes cannabis,  or  the  duly  authorized  representatives  of  such
    36  commissioner or of any such officers, unless such commissioner, officer,
    37  or other representatives shall agree not to divulge or make known in any
    38  manner  the information so supplied, but such officers may transmit such
    39  information to their employees or legal representatives when  necessary,
    40  who  in  turn  shall be subject to the same restrictions as those hereby
    41  imposed upon such commissioner, officer or other representatives.
    42    (c) 1. Any officer or employee of the state who willfully violates the
    43  provisions of subdivision (a) or (b) of this section shall be  dismissed
    44  from  office  and be incapable of holding any public office in the state
    45  for a period of five years thereafter.
    46    2. For criminal penalties, see article thirty-seven of this chapter.
    47    § 40. Subdivision (a) of section 1115 of the tax  law  is  amended  by
    48  adding a new paragraph 3-b to read as follows:
    49    (3-b)  Adult-use  cannabis  products as defined by article twenty-C of
    50  this chapter.
    51    § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
    52  health law, the tax law, the state finance  law,  the  general  business
    53  law,  the  penal  law and the criminal procedure law relating to medical
    54  use of marihuana, is amended to read as follows:
    55    § 12. This act shall take effect immediately [and]; provided,  however
    56  that sections one, three, five, six, seven-a, eight, nine, ten and elev-

        S. 1527--C                         103

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

        S. 1527--C                         104

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

        S. 1527--C                         105

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

        S. 1527--C                         106

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

        S. 1527--C                         107

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

        S. 1527--C                         108

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

        S. 1527--C                         109

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

        S. 1527--C                         110

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

        S. 1527--C                         111

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

        S. 1527--C                         112

     1    4. The moneys in such fund shall be  administered  by  the  office  of
     2  cannabis management and allocated by the executive steering committee to
     3  provide grants for qualified community-based nonprofit organizations and
     4  approved  local  government  entities  for the purpose of reinvesting in
     5  communities  disproportionately  affected by past federal and state drug
     6  policies. Such grants shall be used, including but not  limited  to,  to
     7  support  job  placement,  job  skills  services, adult education, mental
     8  health treatment, substance use disorder treatment,  housing,  financial
     9  literacy,  community  banking,  nutrition  services, services to address
    10  adverse childhood experiences,  afterschool  and  child  care  services,
    11  system  navigation  services,  legal  services  to  address  barriers to
    12  reentry, including, but not limited  to,  providing  representation  and
    13  related  assistance  with  expungement, vacatur, substitution and resen-
    14  tencing of marihuana-related convictions, and linkages to medical  care,
    15  women's  health  services and other community-based supportive services.
    16  The grants from this program may also be used  to  further  support  the
    17  social and economic equity program created by article four of the canna-
    18  bis law and as established by the cannabis control board.
    19    5.  On  or  before  the first day of February each year, the office of
    20  cannabis management shall provide a  written  report  to  the  temporary
    21  president  of  the  senate, speaker of the assembly, chair of the senate
    22  finance committee, chair of the assembly ways and means committee, chair
    23  of the senate committee on children and families, chair of the  assembly
    24  children and families committee, chair of the senate committee on labor,
    25  chair  of the assembly labor committee, chair of the senate committee on
    26  health, chair of the assembly health  committee,  chair  of  the  senate
    27  committee  on  education, chair of the assembly education committee, the
    28  state comptroller and the public.  Such  report  shall  detail  how  the
    29  monies of the fund were utilized during the preceding calendar year, and
    30  shall include:
    31    (a)  the amount of money available and dispersed from the fund and the
    32  award process used for such disbursements;
    33    (b) recipients of awards from the fund;
    34    (c) the amount awarded to each recipient of an award from the fund;
    35    (d) the purposes for which such awards were granted; and
    36    (e) a summary financial plan for such monies which shall include esti-
    37  mates of all receipts and all disbursements for the current and succeed-
    38  ing fiscal years, along with the actual results from  the  prior  fiscal
    39  year.
    40    6.  Moneys  shall be payable from the fund on the audit and warrant of
    41  the comptroller on vouchers approved and  certified  by  the  office  of
    42  cannabis management.
    43    §  52. Paragraphs (a), (b) and (c) of subdivision 3-a of section 390-b
    44  of the social services law, as added by section 9 of part H  of  chapter
    45  56 of the laws of 2019, are amended to read as follows:
    46    (a)  In  relation to child day care programs and any enrolled legally-
    47  exempt provider, when a clearance conducted  pursuant  to  this  section
    48  reveals  that any existing operator, director, caregiver, or person over
    49  the age of eighteen who is not related in any way to  all  children  for
    50  whom child care services are or will be provided, that resides in a home
    51  where  child care is provided in a home setting where the child does not
    52  reside has been convicted of a crime other than one set forth in subpar-
    53  agraph (iv) of paragraph (a) of subdivision three of this  section,  and
    54  unless such crime is eligible for expungement pursuant to section 160.50
    55  of  the  criminal  procedure  law,  the  office  of  children and family
    56  services shall conduct a safety assessment of the program and  take  all

        S. 1527--C                         113

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

        S. 1527--C                         114

     1  sexual  assault,  or  homicide,  other  than  a crime involving physical
     2  assault or battery; or
     3    (B)  a  felony  conviction  within  the  past  five years for physical
     4  assault, battery, or a drug-related  offense,  unless  such  offense  is
     5  eligible  for  expungement  pursuant  to  section 160.50 of the criminal
     6  procedure law; or
     7    § 54. Paragraph (b) of subdivision 4 of  section  132  of  the  social
     8  services  law,  as  added  by section 23 of part B of chapter 436 of the
     9  laws of 1997, is amended to read as follows:
    10    (b) When the screening process  indicates  that  there  is  reason  to
    11  believe  that an applicant or recipient is abusing or dependent on alco-
    12  hol or drugs, the social services district shall require a formal  alco-
    13  hol or substance abuse assessment, which may include drug testing, to be
    14  performed by an alcohol and/or substance abuse professional credentialed
    15  by  the  office  of  [alcoholism and substance abuse services] addiction
    16  services and supports.  Provided however, if the applicant or  recipient
    17  tests  positive  for the presence of cannabis, the positive result alone
    18  shall not be sufficient  to  establish  a  dependence  for  purposes  of
    19  requiring  an  individual to participate in a treatment program pursuant
    20  to paragraph (c) of this subdivision. The assessment  may  be  performed
    21  directly by the district or pursuant to contract with the district.
    22    §  55.  Subdivision  6  of  section 422 of the social services law, as
    23  amended by section 7 of part D of chapter 501 of the laws  of  2012,  is
    24  amended to read as follows:
    25    6.  In  all  other  cases,  the  record of the report to the statewide
    26  central register shall be expunged ten years after the eighteenth birth-
    27  day of the youngest child named in the report. In the case of a child in
    28  residential care the record of  the  report  to  the  statewide  central
    29  register  shall  be  expunged ten years after the reported child's eigh-
    30  teenth birthday. In any case and at any time, the  commissioner  of  the
    31  office  of  children  and family services may amend any record upon good
    32  cause shown and notice to the subjects of the report and  other  persons
    33  named  in  the  report.  Provided  however,  any  report  indicated  for
    34  maltreatment based solely on the purchase, possession or consumption  of
    35  cannabis,  without  a  showing  that  the  child's  physical,  mental or
    36  emotional condition was impaired or was in imminent danger  of  becoming
    37  impaired established by a fair preponderance of the evidence shall imme-
    38  diately  be  sealed upon a request pursuant to subdivision eight of this
    39  section or section four hundred twenty-four-a of this title.
    40    § 56. Intentionally omitted.
    41    § 57. Subdivision (a) of section 712  of  the  family  court  act,  as
    42  amended  by  section  1  of part K of chapter 56 of the laws of 2019, is
    43  amended to read as follows:
    44    (a) "Person in need of supervision". A person less than eighteen years
    45  of age: (i) who does not attend school in accordance with the provisions
    46  of part one of article sixty-five of the  education  law;  (ii)  who  is
    47  incorrigible,  ungovernable  or  habitually  disobedient  and beyond the
    48  lawful control of a parent or other person legally responsible for  such
    49  child's  care,  or  other  lawful  authority;  (iii)  who  violates  the
    50  provisions of[: (1) section 221.05; or (2)] section 230.00 of the  penal
    51  law;  (iv) or who appears to be a sexually exploited child as defined in
    52  paragraph (a), (c) or (d) of subdivision one  of  section  four  hundred
    53  forty-seven-a of the social services law, but only if the child consents
    54  to the filing of a petition under this article.

        S. 1527--C                         115

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

        S. 1527--C                         116

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