A01248 Summary:

BILL NOA01248A
 
SAME ASSAME AS S00854-A
 
SPONSORPeoples-Stokes
 
COSPNSRGottfried, Lupardo, Walker, Solages, Hunter, Hyndman, Weprin, Pichardo, Rosenthal L, Dinowitz, Jean-Pierre, Abinanti, Richardson, Hevesi, Vanel, Niou, Bichotte Hermelyn, Cahill, Epstein, Quart, Reyes, Dickens, Frontus, Cruz, Darling, Rodriguez, Fernandez, Bronson, De La Rosa, Fall, Carroll, Ramos, Benedetto, Simon, Kim, Aubry, Kelles, Burdick, Anderson, Forrest, Burgos, Gonzalez-Rojas, Gallagher, Clark, Lunsford, Mamdani, Jackson, Meeks, O'Donnell, Zebrowski, Zinerman
 
MLTSPNSRSeawright, Steck, Taylor
 
Amd Various Laws, generally
 
Enacts the "marihuana regulation and taxation act"; establishes the cannabis law; defines terms; establishes the New York state cannabis control board and the office of cannabis management; outlines powers and duties thereof; authorizes the lawful use of medical cannabis; authorizes research programs related thereto; establishes a cannabis research license to permit a licensee to produce, process, purchase and/or possess cannabis for certain limited research purposes; relates to adult-use cannabis; authorizes a person to apply for a license to cultivate, process, distribute, deliver or dispense cannabis for sale in this state; 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; 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; relates to the criminal sale of cannabis; relates to drug paraphernalia; adds a new article on cannabis to the penal law; authorizes a motion for resentence for persons convicted of certain marihuana offenses; levies an excise tax on certain sales of cannabis; 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.
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A01248 Actions:

BILL NOA01248A
 
01/07/2021referred to codes
03/27/2021amend (t) and recommit to codes
03/27/2021print number 1248a
03/30/2021reported referred to ways and means
03/30/2021reported referred to rules
03/30/2021reported
03/30/2021rules report cal.46
03/30/2021substituted by s854a
 S00854 AMEND=A KRUEGER
 01/06/2021REFERRED TO FINANCE
 03/27/2021AMEND (T) AND RECOMMIT TO FINANCE
 03/27/2021PRINT NUMBER 854A
 03/30/2021REPORTED AND COMMITTED TO RULES
 03/30/2021ORDERED TO THIRD READING CAL.641
 03/30/2021PASSED SENATE
 03/30/2021DELIVERED TO ASSEMBLY
 03/30/2021referred to ways and means
 03/30/2021substituted for a1248a
 03/30/2021ordered to third reading rules cal.46
 03/30/2021passed assembly
 03/30/2021returned to senate
 03/30/2021DELIVERED TO GOVERNOR
 03/31/2021SIGNED CHAP.92
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A01248 Committee Votes:

CODES Chair:Dinowitz DATE:03/30/2021AYE/NAY:15/6 Action: Favorable refer to committee Ways and Means
DinowitzAyeMorinelloNay
PretlowAyeGiglioNay
CookAyeMontesanoNay
CymbrowitzAyeReillyNay
O'DonnellAbsentMikulinNay
LavineAyeTannousisNay
PerryAye
AbinantiAye
WeprinAye
HevesiAye
FahyAye
SeawrightAye
RosenthalAye
WalkerAye
VanelAye
CruzAye

RULES Chair:Heastie DATE:03/30/2021AYE/NAY:19/9 Action: Favorable
HeastieExcusedBarclayNay
GottfriedAyeHawleyNay
NolanExcusedGiglioNay
WeinsteinAyeBlankenbushNay
PretlowAyeNorrisNay
CookAyeMontesanoNay
GlickAyeRaNay
AubryAyeBrabenecNay
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryAye
PaulinAye
Peoples-StokesAye
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye
ThieleNay
BraunsteinAye
DickensExcused
DavilaAye

WAYS AND MEANS Chair:Weinstein DATE:03/30/2021AYE/NAY:23/11 Action: Favorable refer to committee Rules
WeinsteinAyeRaNay
GlickAyeFitzpatrickNay
NolanExcusedHawleyNay
PretlowAyeMontesanoNay
PerryAyeBlankenbushNay
ColtonAyeNorrisNay
CookAyeBrabenecNay
CahillAyePalmesanoNay
AubryAyeByrneNay
CusickNayAshbyNay
BenedettoAye
WeprinAye
RodriguezAye
RamosAye
BraunsteinAye
McDonaldAye
RozicAye
DinowitzAye
JoynerAye
MagnarelliAye
ZebrowskiAye
BronsonAye
DilanAye
SeawrightAye
HyndmanAye

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A01248 Floor Votes:

There are no votes for this bill in this legislative session.
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A01248 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1248A
 
SPONSOR: Peoples-Stokes
  TITLE OF BILL: 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 cultivate, 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 execu- tive law, the penal law, the alcoholic beverage control law, the general obligations law, the social services law, the labor law, the family court act, 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 amend chapter 174 of the laws of 1968 constituting the urban development corporation act, in relation to loans to social and economic equity applicants, providing increased drug recognition awareness and Advanced Roadside Impaired Driver Enforcement training, directing a study designed to evaluate methodologies and technologies for the detection of cannabis-impaired driving, providing for the transfer of employees and functions from the department of health to the office of cannabis management; to repeal certain provisions of the public health law relating to growing of cannabis and medical use of marihuana; to repeal article 221 of the penal law relating to offenses involving mari- huana; to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; and to repeal certain provisions of the penal law relating to making conforming changes   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to establish a new Office of Cannabis Management for the regulation of cannabis, to create a regulated and taxed cannabis industry in New York, and to provide for various social and economic justice initiatives related thereto.   SUMMARY OF PROVISIONS: Section 1 of the bill establishes the title. Section 2 establishes a new Chapter 7-A of the consolidated laws enti- tled "Cannabis Law' as follows: Article 1 of the Cannabis Law provides legislative findings and intent and offers definitions of terms. Arti- cle 2 of the Cannabis Law establishes the Office of Cannabis Management; defines the powers of the cannabis control board, executive director, chief equity officer, and state cannabis advisory board; and establishes rulemaking authority and procedures for the office. Article 3 of the Cannabis Law provides for the regulation of medical cannabis by the Office of Cannabis Management. Article 4 of the Cannabis Law provides for the regulation of adult-use cannabis by the Office of Cannabis Management. Article 5 of the Cannabis Law provides for the regulation of cannabinoid hemp and hemp extract by the Office of Cannabis Management. Article 6 of the Cannabis Law establishes general provisions for the Cannabis Law. Sections 3 through 62-h of the bill amend various sections of law to conform New York State law as it relates to the Cannabis Law and the purposes of this act, including to: * remove marihuana from the schedule of controlled substances; * provide for the lawful possession, use, and personal growth of canna- bis; * expand sealing and expungement opportunities for past marijuana convictions; * establish parameters related to cannabis and probation, parole, and Family Court matters; * provide for the taxation of cannabis; * provide for the distribution of tax revenues, including: * 40% to the community grants reinvestment fund; * 40% to education in order to add to the State's current investment in education; * 20% for mental health services; youth cannabis use prevention; public health campaigns; and drug treatment, prevention, and harm reduction services; and * certain administrative costs to implement this act. * provide for vehicle and traffic, and other public safety measures; * clarify workplace standards and employee/employer rights and protections related to cannabis; * research potential technologies to assist in detecting motorist canna- bis impairment; and * transfer certain functions and employees from various state agencies to the Office of Cannabis Management. Section 63 is the severability clause. Section 64 is the effective date.   JUSTIFICATION: New York's marihuana policies are broken, unjust, and outdated. The Marihuana Regulation and Taxation Act (MRTA) is based on the recognition that New York's existing marihuana policies have failed to protect the welfare of our communities. Marihuana prohibition has thrust thousands of New Yorkers into the criminal justice system for non-violent offenses, denying many the fundamental right to participate in the demo- cratic process of voting and inhibiting otherwise law-abiding citizens' ability to access housing, student loans, employment opportunities, and other vital services. Additionally, rather than curtailing youth-mari- huana usage, existing marihuana laws have led to an illicit market that has done little to address marihuana usage by minors. Existing marihuana laws have led to costly overuse of law enforcement resources and in some instances discriminatory police practices that have perpetuated systematic racism and discrimination increasing the prison population with non-violent offenders. Over the past two decades, New York has become the marihuana arrest capital of the country, with nearly 800,000 marihuana arrests and summons. These arrests dispropor- tionately impact the lives of African-American and Latinx communities. Black and Brown New Yorkers are swept into the criminal justice system for marihuana use while white New Yorkers have generally been evaded prosecution While government studies show that whites of all ages use marihuana at the same rate as People of Color, a stark difference in arrest rates remains. Across New York City, African-Americans are arrested on low-level marihuana charges at eight times the rate of white, non-Hispanic people and Latinxs are arrested at five times the rate of whites. Thus, one of the largest drivers of racial disparity in criminalization and incarceration rates is the inequity of how the law is applied in marihuana arrests. The intent of this act is to regulate, control, and tax cannabis. The MRTA will generate millions of dollars in new revenue, prevent access to marihuana by those under the age of twenty-one, reduce the illegal drug market and violent crime, help transition otherwise law-abiding citizens engaged in the Legacy market to the legal market, and create new indus- tries and increase employment. With the enactment of the MRTA, the New York State Legislature has an opportunity to end the racially disparate impact of existing marihuana policies and their enforcement. Sixty million Americans now live in states where adult-use cannabis is legal. Nationwide, public perception of cannabis is growing more favora- ble, with 6l% of the population supporting legalization. In NYC fatal drug overdoses are now four times more common than homicides. The New York Department of Health concluded that marihuana is a far safer pain reliever than opioids, and reduces the risk of fatal overdoses that are prevalent across the state and country. In states that have legalized cannabis, opioid overdose rates were 25% lower compared with states with no legal access to cannabis. Additionally, two-thirds of Americans also view cannabis as being safer than opioids in the management of pain. There are roughly 1.5 million regular cannabis users -in New York, half of whom live in New York City. In May of 2018, NYC Comptroller Stringer released a report which estimates a $3.1 billion adult-use cannabis market for New York State, with $1.1 billion just in New York City. With the enactment of the MRTA New York State could realize a projected $436 million in tax revenue, while New York City could accrue an additional $336 million in tax revenue. The need to repair the harms wrought on communities of color by the war on drugs requires a definitive frame- work, in statute, for reinvestment. This legislation directs 50% of the tax revenue to establish the Community Grants Reinvestment Fund, aimed at giving back to the communities that have been the most disproportion- ately affected by current marihuana laws. States across the country that have recently legalized marihuana, from Massachusetts to Alaska, are reinvesting in programs that offer people a new start through community re-entry programs, schools, job development, drug treatment, and legal services. New York has the opportunity to become a leading example in sustainable reinvestment with this explicitly dedicated revenue percent- age and type of fund.   PRIOR LEGISLATIVE HISTORY: 2019-2020: A.1617C/S.1527C 2017-2018: A.3506C/S.3040C 2015-2016: A.3089A/S.1747 2013-2014: A.8341/S.6005   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: The increase of revenue for state and local governments will be deter- mined.   EFFECTIVE DATE: This act shall take effect immediately; provided, however, that sections six and six-a of this act shall take effect six months after the full cannabis control board created by article two of the cannabis law has been appointed and provided that the governor shall notify the legisla- tive bill drafting commission upon such full appointment in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legislative law and section 70-b of the public officers law; provided, further that the expungement of marihuana convictions under section 160.50 of the crimi- nal procedure law, added by the amendment in section seventeen of this act, shall occur promptly and in any event no later than two years after the effective date of this act; the amendments to article 20-B of the tax law made by sections thirty-four, thirty-seven and thirty-eight of this act shall not affect the repeal of such article and shall be deemed repealed therewith; and provided, further, that sections thirty nine and forty of this act shall take effect April 1, 2022, and shall apply on and after such date to the sale or transfer of adult-use cannabis products to a retail dispensary; provided, further, that the amendments to article 179 of the penal law made by section forty-seven of this act shall not affect the repeal of such article and shall be deemed to be repealed therewith; provided, further, that the amendments to section 89-h of the state finance law made by section fifty of this act shall not affect the repeal of such section and shall be deemed repealed 03/27/21 255 65156-02-1 therewith; provided, further, that the amend- ments to subdivision 3 of section 853 of the general business law made by section fifty-six-a of this act shall not affect the repeal of such section and shall be deemed repealed therewith; and provided, further, that the amendments to subdivision 2 of section 3371 of the public health law made by section fifty-six-b of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith.
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A01248 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1248--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 7, 2021
                                       ___________
 
        Introduced  by  M.  of  A.  PEOPLES-STOKES, GOTTFRIED, LUPARDO, SOLAGES,
          HUNTER,   HYNDMAN,   WEPRIN,   PICHARDO,    L. ROSENTHAL,    DINOWITZ,
          JEAN-PIERRE,   ABINANTI,  RICHARDSON,  HEVESI,  WALKER,  VANEL,  NIOU,
          BICHOTTE HERMELYN, CAHILL, EPSTEIN, QUART,  REYES,  DICKENS,  FRONTUS,
          CRUZ,   DARLING,  RODRIGUEZ,  FERNANDEZ,  BRONSON,  DE LA ROSA,  FALL,
          CARROLL, RAMOS, BENEDETTO, SIMON, KIM, AUBRY, KELLES, BURDICK,  ANDER-
          SON,  FORREST,  BURGOS,  GONZALEZ-ROJAS,  GALLAGHER,  CLARK, LUNSFORD,
          MAMDANI, JACKSON, MEEKS -- Multi-Sponsored by -- M. of  A.  SEAWRIGHT,
          STECK,  TAYLOR, ZINERMAN -- read once and referred to the Committee on
          Codes -- 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 labor law, the family court act, 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 amend
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02565-03-1

        A. 1248--A                          2
 
          chapter 174 of the laws of 1968  constituting  the  urban  development
          corporation  act,  in  relation to loans to social and economic equity
          applicants,  providing  increased  drug  recognition   awareness   and
          Advanced  Roadside  Impaired  Driver Enforcement training, directing a
          study designed to evaluate  methodologies  and  technologies  for  the
          detection  of cannabis-impaired driving, providing for the transfer of
          employees and functions from the department of health to the office of
          cannabis management; to repeal certain provisions of the public health
          law relating to growing of cannabis and medical use of  marihuana;  to
          repeal  article  221  of  the penal law relating to offenses involving
          marihuana; to repeal paragraph (f) of subdivision 2 of section 850  of
          the  general  business law relating to drug related paraphernalia; and
          to repeal certain provisions of  the  penal  law  relating  to  making
          conforming changes
 
          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
    29  cannabis  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,  protect  the  environment,  improve  the
    35  state's  resiliency to climate change, protect the public health, safety

        A. 1248--A                          3
 
     1  and welfare  of  the  people  of  the  state,  increase  employment  and
     2  strengthen New York's agriculture sector.
     3    Nothing  in  this  act  is  intended  to  limit  the  authority of any
     4  district, government agency or office or employers to enact and  enforce
     5  policies pertaining to cannabis in the workplace; to allow driving under
     6  the  influence  of  cannabis;  to allow individuals to engage in conduct
     7  that endangers others; to allow smoking cannabis in any  location  where
     8  smoking tobacco is prohibited; or to require any individual to engage in
     9  any  conduct  that  violates  federal  law  or to exempt anyone from any
    10  requirement of federal law or pose any obstacle to the federal  enforce-
    11  ment of federal law.
    12    The  legislature  further  finds  and  declares that it is in the best
    13  interest of the state to regulate medical cannabis, adult-use  cannabis,
    14  cannabinoid  hemp and hemp extracts under independent entities, known as
    15  the cannabis control board and the office of cannabis management.
    16    § 3. Definitions. Whenever used  in  this  chapter,  unless  otherwise
    17  expressly  stated  or  unless  the  context or subject matter requires a
    18  different meaning, the following terms  shall  have  the  representative
    19  meanings hereinafter set forth or indicated:
    20    1.  "Applicant" unless otherwise specified in this chapter, shall mean
    21  a person applying for any cannabis, medical cannabis or cannabinoid hemp
    22  license or permit issued by the New York state  cannabis  control  board
    23  pursuant  to  this  chapter that: has a significant presence in New York
    24  state, either individually or by having a principal  corporate  location
    25  in  the  state; is incorporated or otherwise organized under the laws of
    26  this state; or a majority of the ownership are residents of this  state.
    27  For  the  purposes  of  this  subdivision, "person" means an individual,
    28  institution, corporation,  government  or  governmental  subdivision  or
    29  agency,  business  trust,  estate, trust, partnership or association, or
    30  any other legal entity.
    31    2. "Cannabinoid" means the phytocannabinoids found in  hemp  and  does
    32  not  include  synthetic cannabinoids as that term is defined in subdivi-
    33  sion (g) of schedule I of section thirty-three hundred six of the public
    34  health law.
    35    3. "Cannabinoid hemp" means any hemp  and  any  product  processed  or
    36  derived from hemp, that is used for human consumption provided that when
    37  such  product  is  packaged or offered for retail sale to a consumer, it
    38  shall not have a concentration of more than three tenths  of  a  percent
    39  delta-9 tetrahydrocannabinol.
    40    4. "Cannabinoid hemp processor license" means a license granted by the
    41  office to process, extract, pack or manufacture cannabinoid hemp or hemp
    42  extract  into  products, whether in intermediate or final form, used for
    43  human consumption.
    44    5. "Cannabis" means all parts of the  plant  of  the  genus  Cannabis,
    45  whether  growing or not; the seeds thereof; the resin extracted from any
    46  part of the plant; and every compound,  manufacture,  salt,  derivative,
    47  mixture,  or  preparation of the plant, its seeds or resin.  It does not
    48  include the mature stalks of the plant, fiber produced from the  stalks,
    49  oil  or cake made from the seeds of the plant, any other compound, manu-
    50  facture, salt, derivative, mixture, or preparation of the mature  stalks
    51  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    52  sterilized seed of the plant which is incapable of germination.  It does
    53  not include hemp, cannabinoid hemp or hemp extract as  defined  by  this
    54  section  or  any  drug  products  approved  by the federal Food and Drug
    55  Administration.

        A. 1248--A                          4
 
     1    6. "Cannabis consumer" means a person twenty-one years of age or older
     2  acting in accordance with any provision of this chapter.
     3    7. "Cannabis control board" or "board" means the New York state canna-
     4  bis control board created pursuant to article two of this chapter.
     5    8. "Cannabis flower" means the flower of a plant of the genus Cannabis
     6  that  has  been  harvested,  dried,  and  cured, prior to any processing
     7  whereby the plant material is transformed into a concentrate, including,
     8  but not limited to, concentrated cannabis, or an edible or topical prod-
     9  uct containing cannabis or concentrated cannabis and other  ingredients.
    10  Cannabis flower excludes leaves and stem.
    11    9.  "Cannabis product" or "adult-use cannabis product" means cannabis,
    12  concentrated cannabis, and cannabis-infused products for use by a canna-
    13  bis consumer.
    14    10. "Cannabis-infused products" means products that have been manufac-
    15  tured and contain either cannabis or  concentrated  cannabis  and  other
    16  ingredients that are intended for use or consumption.
    17    11. "Cannabis trim" means all parts of the plant of the genus Cannabis
    18  other  than  cannabis flower that have been harvested, dried, and cured,
    19  but prior to any further processing.
    20    12. "Caring for" means treating a patient, in the course of which  the
    21  practitioner  has  completed  a full assessment of the patient's medical
    22  history and current medical condition.
    23    13. "Certification" means a certification made under this chapter.
    24    14. "Certified medical use"  includes  the  acquisition,  cultivation,
    25  manufacture,   delivery,  harvest,  possession,  preparation,  transfer,
    26  transportation, or use of medical cannabis for a certified  patient,  or
    27  the  acquisition,  administration,  cultivation,  manufacture, delivery,
    28  harvest, possession, preparation, transfer, or transportation of medical
    29  cannabis by a designated caregiver or designated caregiver facility,  or
    30  paraphernalia  relating  to  the  administration  of cannabis, including
    31  whole cannabis flower, to  treat  or  alleviate  a  certified  patient's
    32  medical  condition  or  symptoms  associated  with the patient's medical
    33  condition.
    34    15. "Certified patient" means a patient who is a resident of New  York
    35  state or receiving care and treatment in New York state as determined by
    36  the board in regulation, and is certified under this chapter.
    37    16.  "Chief  equity  officer"  means  the  chief equity officer of the
    38  office of cannabis management.
    39    17. "Concentrated cannabis" means: (a) the  separated  resin,  whether
    40  crude  or  purified, obtained from cannabis; or (b) a material, prepara-
    41  tion, mixture, compound or other  substance  which  contains  more  than
    42  three  percent  by  weight or by volume of total THC, as defined in this
    43  section.
    44    18. "Condition" means having one of the following conditions:  cancer,
    45  positive  status  for  human  immunodeficiency  virus or acquired immune
    46  deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease,
    47  multiple sclerosis, damage to the nervous tissue of the spinal cord with
    48  objective neurological indication of intractable  spasticity,  epilepsy,
    49  inflammatory  bowel  disease,  neuropathies, Huntington's disease, post-
    50  traumatic stress disorder, pain  that  degrades  health  and  functional
    51  capability where the use of medical cannabis is an alternative to opioid
    52  use,  substance use disorder, Alzheimer's, muscular dystrophy, dystonia,
    53  rheumatoid arthritis, autism or any other  condition  certified  by  the
    54  practitioner.

        A. 1248--A                          5
 
     1    19.  "Cultivation" means growing, cloning, harvesting, drying, curing,
     2  grading, and trimming of cannabis plants for sale to certain other cate-
     3  gories of cannabis license- and permit-holders.
     4    20.  "Delivery"  means  the  direct delivery of cannabis products by a
     5  retail licensee, microbusiness  licensee,  or  delivery  licensee  to  a
     6  cannabis consumer.
     7    21.  "Designated  caregiver  facility" means a facility that registers
     8  with the office to assist one or more certified patients with the acqui-
     9  sition,  possession,  delivery,  transportation  or  administration   of
    10  medical  cannabis and is a:  general hospital or residential health care
    11  facility operating pursuant to article twenty-eight of the public health
    12  law; an adult care facility operating pursuant to title two  of  article
    13  seven  of  the  social services law; a community mental health residence
    14  established pursuant to section 41.44  of  the  mental  hygiene  law;  a
    15  hospital operating pursuant to section 7.17 of the mental hygiene law; a
    16  mental  hygiene facility operating pursuant to article thirty-one of the
    17  mental hygiene law; an inpatient or residential treatment program certi-
    18  fied pursuant to article thirty-two of the mental hygiene law;  a  resi-
    19  dential  facility  for  the  care and treatment of persons with develop-
    20  mental disabilities operating pursuant to article sixteen of the  mental
    21  hygiene  law;  a  residential  treatment facility for children and youth
    22  operating pursuant to article thirty-one of the mental  hygiene  law;  a
    23  private  or  public school; research institution with an internal review
    24  board; or any other facility as determined by the board in regulation.
    25    22. "Designated caregiver" means an individual designated by a  certi-
    26  fied  patient  in a registry application. A certified patient may desig-
    27  nate up to five designated caregivers not counting designated  caregiver
    28  facilities or designated caregiver facilities' employees.
    29    23.  "Designated  caregiver  facility employee" means an employee of a
    30  designated caregiver facility.
    31    24. "Distributor" means any person who sells at wholesale any cannabis
    32  product, except medical cannabis, for the sale of  which  a  license  is
    33  required under the provisions of this chapter.
    34    25. "Executive director" means the executive director of the office of
    35  cannabis management.
    36    26.  "Form  of  medical cannabis" means characteristics of the medical
    37  cannabis recommended or limited  for  a  particular  certified  patient,
    38  including  the method of consumption and any particular strain, variety,
    39  and quantity or percentage of cannabis or particular active  ingredient,
    40  or whole cannabis flower.
    41    27.  "Hemp"  means  the  plant Cannabis sativa L. and any part of such
    42  plant, including the seeds thereof and all derivatives, extracts, canna-
    43  binoids, isomers, acids, salts, and salts of isomers, whether growing or
    44  not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more
    45  than three-tenths of a percent on a  dry  weight  basis.  It  shall  not
    46  include "medical cannabis" as defined in this section.
    47    28.  "Hemp  extract"  means  all  derivatives, extracts, cannabinoids,
    48  isomers, acids, salts, and salts of isomers derived from hemp,  used  or
    49  intended  for  human  consumption,  for  its cannabinoid content, with a
    50  delta-9 tetrahydrocannabinol concentration of not more  than  an  amount
    51  determined by the office in regulation. For the purpose of this article,
    52  hemp  extract  excludes  (a)  any food, food ingredient or food additive
    53  that is generally recognized as safe pursuant to federal law; or (b) any
    54  hemp extract that is not  used  for  human  consumption.  Such  excluded
    55  substances  shall  not  be  regulated pursuant to the provisions of this

        A. 1248--A                          6
 
     1  article but are subject to other provisions  of  applicable  state  law,
     2  rules and regulations.
     3    29. "Labor peace agreement" means an agreement between an entity and a
     4  labor  organization that, at a minimum, protects the state's proprietary
     5  interests by prohibiting labor organizations and members  from  engaging
     6  in picketing, work stoppages, boycotts, and any other economic interfer-
     7  ence with the entity.
     8    30.  "Laboratory  testing  facility"  means any independent laboratory
     9  capable of testing cannabis and  cannabis  products  for  adult-use  and
    10  medical-use; cannabinoid hemp and hemp extract; or for all categories of
    11  cannabis and cannabis products as per regulations set forth by the state
    12  cannabis control board.
    13    31.  "License"  means  a  written authorization as provided under this
    14  chapter permitting persons to engage in a specified activity  authorized
    15  pursuant to this chapter.
    16    32. "Licensee" means an individual or an entity who has been granted a
    17  license under this chapter.
    18    33.  "Medical  cannabis"  means  cannabis  as defined in this section,
    19  intended for a certified medical use, as  determined  by  the  board  in
    20  consultation with the commissioner of health.
    21    34.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
    22  producer for the cultivation of cannabis, a cannabis processor, a canna-
    23  bis distributor and a cannabis retailer  under  this  article;  provided
    24  such  licensee complies with all requirements imposed by this article on
    25  licensed producers, processors, distributors and retailers to the extent
    26  the licensee engages in such activities.
    27    35. "Nursery" means a licensee that  produces  only  clones,  immature
    28  plants, seeds, and other agricultural products used specifically for the
    29  planting, propagation, and cultivation of cannabis by licensed adult use
    30  cannabis   cultivators,  microbusinesses,  cooperatives  and  registered
    31  organizations.
    32    36. "Office" or "office of cannabis management"  means  the  New  York
    33  state office of cannabis management.
    34    37. "On-site consumption" means the consumption of cannabis in an area
    35  licensed as provided for in this chapter.
    36    38.  "Package"  means  any  container  or  receptacle used for holding
    37  cannabis or cannabis products.
    38    39. "Permit" means a permit issued pursuant to this chapter.
    39    40. "Permittee" means any person to whom  a  permit  has  been  issued
    40  pursuant to this chapter.
    41    41. "Practitioner" means a practitioner who is licensed, registered or
    42  certified  by  New  York state to prescribe controlled substances within
    43  the state.  Nothing in this chapter shall be interpreted so as  to  give
    44  any  such  person  authority  to  act outside their scope of practice as
    45  defined by title eight of the education law.  Additionally,  nothing  in
    46  this chapter shall be interpreted to allow any unlicensed, unregistered,
    47  or  uncertified  person to act in a manner that would require a license,
    48  registration, or certification pursuant to title eight of the  education
    49  law.
    50    42.  "Processor"  means a licensee that extracts concentrated cannabis
    51  and/or compounds, blends, extracts, infuses, or  otherwise  manufactures
    52  concentrated  cannabis  or cannabis products, but not the cultivation of
    53  the cannabis contained in the cannabis product.
    54    43. "Registered organization" means an organization  registered  under
    55  article three of this chapter.

        A. 1248--A                          7
 
     1    44. "Registry application" means an application properly completed and
     2  filed  with the board by a certified patient under article three of this
     3  chapter.
     4    45.  "Registry identification card" means a document that identifies a
     5  certified patient or designated caregiver, as provided under this  chap-
     6  ter.
     7    46. "Retail sale" means to solicit or receive an order for, to keep or
     8  expose  for  sale, and to keep with intent to sell, made by any licensed
     9  person, whether principal, proprietor, agent, or employee, of any canna-
    10  bis, cannabis product, cannabinoid hemp or hemp  extract  product  to  a
    11  cannabis consumer for any purpose other than resale.
    12    47. "Retailer" means any person who sells at retail any cannabis prod-
    13  uct,  the  sale  of  which a license is required under the provisions of
    14  this chapter.
    15    48. "Small business" means small business as defined  in  section  one
    16  hundred  thirty-one of the economic development law, and shall apply for
    17  purposes of this chapter where any inconsistencies exist.
    18    49. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    19  any other matter or substance which contains cannabis including the  use
    20  of an electronic smoking device that creates an aerosol or vapor.
    21    50.  "Social  and economic equity applicant" means an individual or an
    22  entity who is eligible for priority licensing pursuant to  the  criteria
    23  established in article four of this chapter.
    24    51.  "Terminally ill" means an individual has a medical prognosis that
    25  the individual's life expectancy is approximately one year  or  less  if
    26  the illness runs its normal course.
    27    52. "THC" means Delta-9-tetrahydrocannabinol; Delta-8-tetrahydrocanna-
    28  binol;  Delta-10-tetrahydrocannabinol  and  the  optical  isomer of such
    29  substances.
    30    53. "Total THC" means the sum of the percentage by  weight  or  volume
    31  measurement  of  tetrahydrocannabinolic  acid multiplied by 0.877, plus,
    32  the percentage by weight or volume measurement of THC.
    33    54. "Warehouse" means and includes a place in which cannabis  products
    34  are securely housed or stored.
    35    55.  "Wholesale"  means to solicit or receive an order for, to keep or
    36  expose for sale, and to keep with intent to sell, made by  any  licensed
    37  person,  whether principal, proprietor, agent, or employee of any adult-
    38  use, medical-use cannabis or cannabis product, or cannabinoid  hemp  and
    39  hemp extract product for purposes of resale.
 
    40                                  ARTICLE 2
    41                    NEW YORK STATE CANNABIS CONTROL BOARD
 
    42  Section 7.  Establishment of the cannabis control board or "board".
    43          8.  Establishment of an office of cannabis management.
    44          9.  Executive director.
    45          10. Powers and duties of the cannabis control board.
    46          11. Functions,  powers  and  duties  of  the executive director;
    47                office of cannabis control.
    48          12. Chief equity officer.
    49          13. Rulemaking authority.
    50          14. State cannabis advisory board.
    51          15. Disposition of moneys received for license fees.
    52          16. Violations of cannabis laws or  regulations;  penalties  and
    53                injunctions.
    54          17. Formal hearings; notice and procedure.

        A. 1248--A                          8
 
     1          18. Ethics, transparency and accountability.
     2          19. Public health and education campaign.
     3          20. Uniform policies and best practices.
     4    §  7.  Establishment of the cannabis control board or "board".  1. The
     5  cannabis control board is hereby created and shall consist of  a  chair-
     6  person  nominated by the governor and with the advice and consent of the
     7  senate, with one vote, and four other voting board members  as  provided
     8  for in subdivision two of this section.
     9    2.  Appointments.   In addition to the chairperson, the governor shall
    10  have two direct appointments to the board, and the  temporary  president
    11  of the senate and the speaker of the assembly shall each have one direct
    12  appointment  to  the  board.   Appointments shall be for a term of three
    13  years each and should, to the extent  possible,  be  geographically  and
    14  demographically representative of the state and communities historically
    15  affected by the war on drugs. Board members shall be citizens and perma-
    16  nent  residents of this state. The chairperson and the remaining members
    17  of such board shall continue to serve as chairperson and members of  the
    18  board  until  the expiration of the respective terms for which they were
    19  appointed. Upon the expiration of such respective terms  the  successors
    20  of  such  chairperson and members shall be appointed to serve for a term
    21  of three years each and until their successors have been  appointed  and
    22  qualified.  The members, except for the chairperson, shall when perform-
    23  ing the work of the board, be compensated at a rate of two hundred sixty
    24  dollars per day, and together with an allowance for actual and necessary
    25  expenses incurred in the discharge of their  duties.    The  chairperson
    26  shall  receive  an  annual  salary  not to exceed an amount appropriated
    27  therefor by the legislature, and their expenses actually and necessarily
    28  incurred in the performance of their official duties,  unless  otherwise
    29  provided by the legislature. No member or member's spouse or minor child
    30  shall have any interest in an entity regulated by the board.
    31    3.  Expenses.  Each  member  of  the  board shall be entitled to their
    32  expenses actually and necessarily incurred by them in the performance of
    33  their duties.
    34    4. Removal. Any member of the board may be removed by the governor for
    35  good cause after notice and an opportunity to be heard. A  statement  of
    36  the  good  cause for their removal shall be filed by the governor in the
    37  office of the secretary of state.
    38    5. Vacancies; quorum. (A) In the event of  a  vacancy  caused  by  the
    39  death, resignation, removal or inability to perform his or her duties of
    40  any  board  member,  the  vacancy  shall  be filled in the manner as the
    41  original appointment for the remainder of the unexpired term.
    42    (B)(i) In the event of a vacancy caused  by  the  death,  resignation,
    43  removal,  or  inability to act of the chair, the vacancy shall be filled
    44  in the same manner as the original appointment for the remainder of  the
    45  unexpired  term.  Notwithstanding  any  other  provision  of  law to the
    46  contrary, the governor  shall  designate  one  of  the  remaining  board
    47  members  to  serve  as acting chairperson for a period not to exceed six
    48  months or until a  successor  chairperson  has  been  confirmed  by  the
    49  senate.   Upon the expiration of the six month term, if the governor has
    50  nominated a successor chairperson, but the senate has not acted upon the
    51  nomination, the acting chairperson  can  continue  to  serve  as  acting
    52  chairperson  for  an  additional  ninety  days  or  until the governor's
    53  successor chairperson nomination is confirmed by the  senate,  whichever
    54  comes first;

        A. 1248--A                          9
 
     1    (ii) The governor shall provide immediate written notice to the tempo-
     2  rary  president  of  the  senate  and the speaker of the assembly of the
     3  designation of a board member as acting chairperson;
     4    (iii)  If  (a)  the governor has not nominated a successor chairperson
     5  upon the expiration of the six month term or (b)  the  senate  does  not
     6  confirm the governor's successor nomination within the additional ninety
     7  days,  the board member designated as acting chairperson shall no longer
     8  be able to serve as acting chairperson and the  governor  is  prohibited
     9  from extending the powers of that acting chairperson or from designating
    10  another board member to serve as acting chairperson; and
    11    (iv)  A board member serving as the acting chairperson of the cannabis
    12  control board shall be deemed a state officer for  purposes  of  section
    13  seventy-three of the public officers law.
    14    (C)  A majority of the voting board members of the board shall consti-
    15  tute a quorum for the purpose of conducting the business thereof  and  a
    16  majority  vote  of  all  the  members  in  office shall be necessary for
    17  action. Provided, however, that a board member designated as  an  acting
    18  chairperson  pursuant  to  this  chapter  shall  have  only one vote for
    19  purposes of conducting the business of the cannabis control board.
    20    6. The cannabis control board and office of cannabis management  shall
    21  have  its  principal  office  in the city of Albany, and maintain branch
    22  offices in the cities of New York and Buffalo and such other  places  as
    23  it may deem necessary.
    24    The  board shall establish appropriate procedures to ensure that hear-
    25  ing officers are shielded from  ex  parte  communications  with  alleged
    26  violators  and their attorneys and from other employees of the office of
    27  cannabis management and shall take such other steps  as  it  shall  deem
    28  necessary  and  proper to shield its judicial processes from unwarranted
    29  and inappropriate communications and attempts to influence.
    30    7. Disqualification of members of  the  board  and  employees  of  the
    31  office  of  cannabis management.  No member of the board or any officer,
    32  deputy, assistant, inspector or employee or spouse or minor child there-
    33  of shall have any interest, direct or indirect, either proprietary or by
    34  means of any loan, mortgage or lien, or in any other manner,  in  or  on
    35  any premises where cannabis is manufactured or sold; nor shall they have
    36  any  interest,  direct  or indirect, in any business wholly or partially
    37  devoted to the cultivation, manufacture, distribution, sale, transporta-
    38  tion or storage of cannabis, or own any stock in any  corporation  which
    39  has  any  interest, proprietary or otherwise, direct or indirect, in any
    40  premises where cannabis or hemp extract is cultivated  or  manufactured,
    41  distributed,  or sold, or in any business wholly or partially devoted to
    42  the cultivation,  manufacture,  distribution,  sale,  transportation  or
    43  storage  of cannabis or hemp extract or receive any commission or profit
    44  whatsoever, direct or indirect, from any person applying for or  receiv-
    45  ing  any  license  or  permit  provided for in this chapter, or hold any
    46  other public office in the state or in any political subdivision  except
    47  upon  the  written  permission of the board, such member of the board or
    48  office of cannabis management or officer, deputy,  assistant,  inspector
    49  or  employee  thereof  may  hold  the  public office of notary public or
    50  member of a community board of education in the city school district  of
    51  the  city of New York. Anyone who violates any of the provisions of this
    52  section shall be removed.
    53    § 8. Establishment of an office of cannabis management. There is here-
    54  by established, within the division of alcoholic  beverage  control,  an
    55  independent  office  of  cannabis management, which shall have exclusive
    56  jurisdiction to exercise the powers and duties provided by this chapter.

        A. 1248--A                         10
 
     1  The office shall exercise its authority  by  and  through  an  executive
     2  director.
     3    §  9.  Executive  director.  The  office shall exercise its authority,
     4  other than powers and duties specifically granted to the board,  by  and
     5  through  an  executive  director  nominated by the governor and with the
     6  advice and consent of the senate.   The executive director  shall  serve
     7  for  a  term  of three years and once confirmed, may only be removed for
     8  good cause with appropriate notice. The executive director of the  state
     9  office  of  cannabis  management  shall  receive an annual salary not to
    10  exceed an amount appropriated therefor by the legislature and his or her
    11  expenses actually and necessarily incurred in the performance of his  or
    12  her official duties, unless otherwise provided by the legislature.
    13    §  10.  Powers  and duties of the cannabis control board. The cannabis
    14  control board or "board" shall have the following functions, powers  and
    15  duties as provided for in this chapter:
    16    1. Discretion to issue or refuse to issue any registration, license or
    17  permit  provided for in this chapter, as follows: the chairperson, after
    18  receiving a recommendation and relevant application information from the
    19  office and providing such information to all board members, shall  issue
    20  a  preliminary  determination  on  whether  the license, registration or
    21  permit shall be granted, denied, or  held  for  further  action.  Within
    22  fourteen  days of the chairperson's preliminary determination, any board
    23  member may object to the  chairperson's  preliminary  determination,  or
    24  request  the  matter be brought before the full board for consideration.
    25  Any preliminary determination by the chairperson shall take effect four-
    26  teen days after it has been issued by the chairperson, provided that  no
    27  board  member  objects  or requests the matter be considered by the full
    28  board, as adopted by the board through resolution.
    29    2. Sole discretion to limit, or not to limit, the number of  registra-
    30  tions,  licenses and permits of each class to be issued within the state
    31  or any political subdivision  thereof,  in  a  manner  that  prioritizes
    32  social  and  economic  equity  applicants with the goal of fifty percent
    33  awarded to such applicants, and considers small  business  opportunities
    34  and  concerns,  avoids  market dominance in sectors of the industry, and
    35  reflects the demographics of the state.
    36    3. Sole discretion to revoke, cancel or suspend for cause  any  regis-
    37  tration, license, or permit issued under this chapter and/or to impose a
    38  civil  penalty for cause, after notice and an opportunity for a hearing,
    39  against any holder of a registration, license, or permit issued pursuant
    40  to this chapter.
    41    4. To fix by rule and regulation the  standards  and  requirements  of
    42  cultivation,  processing,  packaging,  marketing,  and  sale  of medical
    43  cannabis, adult-use cannabis and cannabis product, and cannabinoid  hemp
    44  and  hemp extract, including but not limited to, the ability to regulate
    45  excipients, and the types, forms, and concentration  of  products  which
    46  may  be manufactured and/or processed, in order to ensure the health and
    47  safety of the public and the use of proper ingredients  and  methods  in
    48  the  manufacture  of  all  medical, adult-use, cannabinoid hemp and hemp
    49  extract to be sold or consumed in the state and to ensure that  products
    50  are  not  packaged,  marketed,  or otherwise sold in a way which targets
    51  minors or promotes increased use or cannabis use disorders.
    52    5. To limit or prohibit, at any time of public emergency  and  without
    53  previous  notice or advertisement, the cultivation, processing, distrib-
    54  ution or sale of any or  all  cannabis  products,  medical  cannabis  or
    55  cannabinoid  hemp  and  hemp  extract, for and during the period of such
    56  emergency.

        A. 1248--A                         11
 
     1    6. To hold hearings,  subpoena  witnesses,  compel  their  attendance,
     2  administer  oaths,  to  examine  any person under oath and in connection
     3  therewith to require the production of any books or records relative  to
     4  the  inquiry. A subpoena issued under this section shall be regulated by
     5  the civil practice law and rules.
     6    7. To appoint any necessary directors, deputies, counsels, assistants,
     7  investigators,  and other employees within the limits provided by appro-
     8  priation.  Directors, deputies and counsels, including the chief  equity
     9  officer,  and  confidential secretaries to board members shall be in the
    10  exempt class of the civil service. The other  assistants,  investigators
    11  and employees of the office shall all be in the competitive class of the
    12  civil  service  and shall be considered for purposes of article fourteen
    13  of the civil service law to be public employees of the state, and  shall
    14  be  assigned  to  the  appropriate  bargaining  unit.  Investigators  so
    15  employed by the office shall be deemed to be peace officers only for the
    16  purposes of enforcing the provisions of this  chapter  or  judgments  or
    17  orders  obtained for violation thereof, with all the powers set forth in
    18  section 2.20 of the criminal procedure law. Employees transferred to the
    19  office shall be transferred without further examination or qualification
    20  to the same or similar titles and shall remain in  the  same  collective
    21  bargaining units and shall retain their respective civil service classi-
    22  fications,  status  and  rights  pursuant to their collective bargaining
    23  units and collective bargaining agreements. Employees serving  in  posi-
    24  tions  in  newly  created  titles  shall  be assigned to the appropriate
    25  collective bargaining unit as they would have been assigned to were such
    26  titles created prior to the establishment  of  the  office  of  cannabis
    27  management.  Any action taken under this subdivision shall be subject to
    28  and  in  accordance  with the civil service law.  The executive director
    29  shall appoint a deputy director for health and safety  who  shall  be  a
    30  licensed health care practitioner within the state and who shall oversee
    31  all clinical aspects of the office.
    32    8.  To inspect or provide authorization for the inspection at any time
    33  of any premises where medical cannabis, adult-use cannabis  or  cannabi-
    34  noid hemp and hemp extract is cultivated, processed, stored, distributed
    35  or sold.
    36    9.  To prescribe forms of applications for registrations, licenses and
    37  permits under this chapter and of all reports deemed  necessary  by  the
    38  board.
    39    10. To appoint such advisory groups and committees as deemed necessary
    40  to  provide assistance to the board to carry out the purposes and objec-
    41  tives of this chapter.
    42    11. To exercise the powers and perform the duties in relation  to  the
    43  administration of the board and the office of cannabis management as are
    44  necessary but not specifically vested by this chapter, including but not
    45  limited to budgetary and fiscal matters.
    46    12. To develop and establish minimum criteria for certifying employees
    47  to  work in the cannabis industry in positions requiring advanced train-
    48  ing and education.
    49    13. To enter into contracts, memoranda of  understanding,  and  agree-
    50  ments as deemed appropriate to effectuate the policy and purpose of this
    51  chapter.
    52    14.  To advise the office of cannabis management and/or urban develop-
    53  ment corporation in making low interest or zero-interest loans to quali-
    54  fied social and economic equity applicants as provided for in this chap-
    55  ter.

        A. 1248--A                         12
 
     1    15. If public health, safety, or welfare imperatively  requires  emer-
     2  gency  action,  and  incorporates  a finding to that effect in an order,
     3  summary suspension of a license may be ordered, effective  on  the  date
     4  specified  in  such  order  or  upon service of a certified copy of such
     5  order on the licensee, whichever shall be later, pending proceedings for
     6  revocation  or  other action. These proceedings shall be promptly insti-
     7  tuted and determined. In addition, the board may be  directed  to  order
     8  the  administrative  seizure of product, issue a stop order, or take any
     9  other action necessary to effectuate and enforce the policy and  purpose
    10  of this chapter.
    11    16.  To  draft  and  provide for public comment and issue regulations,
    12  declaratory rulings, guidance and industry advisories.
    13    17. To draft and provide an annual report on the effectiveness of this
    14  chapter.  The annual report shall be prepared, in consultation with  the
    15  division  of  the budget, the urban development corporation, the depart-
    16  ment of taxation and finance, the department of  health,  department  of
    17  agriculture  and  markets,  office  of  addiction services and supports,
    18  office of mental health, New York  state  police,  department  of  motor
    19  vehicles  and  the  division  of criminal justice services.   The report
    20  shall provide, but not be limited to, the following information:
    21    (a) the number of registrations, licenses, and permits applied for  by
    22  geographic  region  of the state; the number of registrations, licenses,
    23  and permits approved or denied by geographic region of the state;
    24    (b) the economic and fiscal  impacts  associated  with  this  chapter,
    25  including  revenue  from  licensing  or  other  fees, fines and taxation
    26  related to the  cultivation,  distribution  and  sale  of  cannabis  for
    27  medical  and  adult-use  and  cannabinoid  hemp and hemp extract in this
    28  state;
    29    (c) specific programs and progress made by the cannabis control  board
    30  and  the  office  of  cannabis  management in achieving the goals of the
    31  social and economic equity plan, and other social justice goals  includ-
    32  ing,  but not limited to, restorative justice, minority- and women-owned
    33  businesses, distressed farmers and service disabled veterans;
    34    (d) demographic data on owners and employees in the medical  cannabis,
    35  adult-use cannabis and cannabinoid hemp and hemp extract industry;
    36    (e)  impacts  to  public  health  and  safety, including substance use
    37  disorder;
    38    (f) impacts associated with public safety, including, but not  limited
    39  to,  traffic-related  issues,  law  enforcement, under-age prevention in
    40  relation to accessing adult-use cannabis, and efforts to  eliminate  the
    41  illegal market for cannabis products in New York;
    42    (g) any other information or data deemed significant; and
    43    (h)  the  board  shall  make recommendations regarding the appropriate
    44  level of taxation of adult-use cannabis, as well  as  changes  necessary
    45  to:  improve  registration,  licensing  and  permitting;  promoting  and
    46  encouraging social and economic equity applicants; improve  and  protect
    47  the  public  health and safety of New Yorkers; improve access and avail-
    48  ability for substance abuse treatment programs; and any other  recommen-
    49  dations deemed necessary and appropriate. Such report shall be published
    50  on  the  office's  website  and  presented to the governor, the majority
    51  leader of the senate and the speaker of  the  assembly,  no  later  than
    52  January first, two thousand twenty-three and annually thereafter.
    53    18.  When  an  administrative  decision is appealed to the board by an
    54  applicant, registered organization, licensee or permittee, issue a final
    55  determination of the office.

        A. 1248--A                         13
 
     1    19. Approve the opening of new license application periods,  and  when
     2  new  or additional licenses are made available pursuant to this chapter,
     3  provided, however, that the initial adult-use cannabis retail dispensary
     4  license application period shall be opened for  all  applicants  at  the
     5  same time.
     6    20.  Approve  any  price quotas or price controls set by the executive
     7  director as provided by this chapter.
     8    21. Approve the office's social and economic equity plan  pursuant  to
     9  section eighty-four of this chapter.
    10    22. To enter into tribal-state compacts with the New York state Indian
    11  nations and tribes, as defined by section two of the Indian law, author-
    12  izing  such  Indian  nations or tribes to acquire, possess, manufacture,
    13  sell, deliver, transport,  distribute  or  dispense  adult-use  cannabis
    14  and/or medical cannabis.
    15    23.  With  the  exception  of  promulgating rules and regulations, the
    16  board shall have the power to delegate any functions, powers and  duties
    17  as  provided for in this section to the executive director of the office
    18  of cannabis management. Any such delegation shall be  through  a  resol-
    19  ution voted on and approved by the board members.
    20    24. The board shall, two years after the first retail sale pursuant to
    21  this  chapter,  review the impact of licenses issued pursuant to article
    22  four of this chapter with substantial market share for any  category  of
    23  licensure,  to determine if such licensees are impairing the achievement
    24  of the goals of inclusion of social equity licensees, fairness for small
    25  businesses and distressed farmers, adequate  supplies  of  cannabis  and
    26  prevention  of dominant marketplace participation in the cannabis indus-
    27  try. The board may modify the terms of the licensee's license consistent
    28  with the determination and   to better achieve  those  goals.  Any  such
    29  modification  may  be  appealed  by the licensee for a formal hearing as
    30  provided in section seventeen of this article.  For  any  licensee  such
    31  review  shall  include  violations of New York state labor law and labor
    32  peace agreements. Further, an existing collective  bargaining  agreement
    33  shall  not  be infringed or voided by any licensee who after such review
    34  suffers from a reduction in market share.
    35    § 11. Functions, powers and duties of the executive  director;  office
    36  of  cannabis  management.   The executive director, as authorized by and
    37  through this chapter, shall have the  following  functions,  powers  and
    38  duties as provided for in this chapter:
    39    1.  To  exercise  the powers and perform the duties in relation to the
    40  administration of the office of cannabis management as are  not  specif-
    41  ically  vested by this chapter in, or delegated by, the cannabis control
    42  board.
    43    2. To keep records in such form as they may prescribe of all registra-
    44  tions, licenses and permits issued and revoked within  the  state;  such
    45  records shall be so kept as to provide ready information as to the iden-
    46  tity  of all licensees including the names of the officers and directors
    47  of corporate licensees and the location of all  licensed  premises.  The
    48  executive  director  may  contract  to  furnish copies of the records of
    49  licenses and permits of each class and type issued within the  state  or
    50  any  political  subdivision  thereof,  for any license or permit year or
    51  term of years not exceeding five years.
    52    3. To inspect or provide for the  inspection  of  any  premises  where
    53  medical  cannabis, adult-use cannabis, hemp cannabis are manufactured or
    54  sold.
    55    4. To prescribe forms of applications for licenses and  permits  under
    56  this chapter and of all reports deemed necessary by the board.

        A. 1248--A                         14
 
     1    5. To inspect or provide for the inspection of any licensed or permit-
     2  ted  premises where medical, adult-use or hemp is cultivated, processed,
     3  stored, distributed or sold.
     4    6.  To prescribe forms of applications for registrations, licenses and
     5  permits under this chapter and of all reports deemed  necessary  by  the
     6  board.
     7    7. To delegate the powers provided in this section to such other offi-
     8  cers  or  employees as may be deemed appropriate by the executive direc-
     9  tor.
    10    8. To exercise the powers and perform the duties as delegated  by  the
    11  board  in relation to the administration of the office as are necessary,
    12  including but not limited to budgetary and fiscal matters.
    13    9. To enter into contracts, memoranda of understanding, and agreements
    14  to effectuate the policy and purpose of this chapter.
    15    10. To advise and assist the board in carrying out any  of  its  func-
    16  tions, powers and duties.
    17    11.  To  coordinate  across state agencies and departments in order to
    18  research and study any changes in  cannabis  use  and  the  impact  that
    19  cannabis  use  and the regulated cannabis industry may have on access to
    20  cannabis products, public health, and public safety.
    21    12. To issue guidance and industry advisories.
    22    § 12. Chief equity officer. The board, by an affirmative  vote  of  at
    23  least  four  members,  shall  appoint a chief equity officer.  The chief
    24  equity officer shall receive an annual salary not to  exceed  an  amount
    25  appropriated therefor by the legislature and their expenses actually and
    26  necessarily  incurred  in  the  performance  of  official duties, unless
    27  otherwise provided by the legislature.
    28    1. The chief equity officer shall  assist  with  the  development  and
    29  implementation  of, and ensure the cannabis control board and the office
    30  of cannabis management's  continued  compliance  with,  the  social  and
    31  economic  equity plan, required to be developed pursuant to article four
    32  of this chapter.
    33    2. The chief equity officer shall establish public education  program-
    34  ming  dedicated  to  providing  communities  that  have been impacted by
    35  cannabis prohibition with information detailing  the  licensing  process
    36  and  informing  individuals of the support and resources that the office
    37  can provide to individuals and entities interested in  participating  in
    38  activity licensed under this chapter.
    39    3.  The  chief  equity officer shall provide a report to the board, no
    40  later than January first, two thousand twenty-three, and annually there-
    41  after, of their activities in ensuring compliance with  the  social  and
    42  economic  equity plan, required to be developed pursuant to article four
    43  of this chapter, and the board shall provide such report to the legisla-
    44  ture.
    45    § 13. Rulemaking authority.   1. The board shall  perform  such  acts,
    46  prescribe  such  forms and propose such rules, regulations and orders as
    47  it may deem necessary or proper to fully effectuate  the  provisions  of
    48  this chapter.
    49    2.  The  board  shall, in consultation with the executive director and
    50  the chief equity officer, have the authority to promulgate any  and  all
    51  necessary  rules and regulations governing the cultivation, manufacture,
    52  processing, transportation, distribution, testing, delivery, and sale of
    53  medical cannabis, adult-use cannabis,  and  cannabinoid  hemp  and  hemp
    54  extract,  including but not limited to the registration of organizations
    55  authorized to sell medical cannabis, the licensing and/or permitting  of
    56  adult-use cannabis cultivators, processors, cooperatives, microbusiness,

        A. 1248--A                         15
 
     1  distributors, laboratories, and retailers, and the licensing of cannabi-
     2  noid  hemp  and  hemp  extract producers and processors pursuant to this
     3  chapter, including, but not limited to:
     4    (a) prescribing forms and establishing application, reinstatement, and
     5  renewal fees;
     6    (b)  the  qualifications  and  selection  criteria  for  registration,
     7  licensing, or permitting;
     8    (c) the books and records to be created and maintained by  all  regis-
     9  tered organizations, licensees, and permittees, including the reports to
    10  be  made  thereon to the office, and inspection of any and all books and
    11  records maintained by any registered organization, licensee, or  permit-
    12  tee  and  on  the  premises of any registered organization, licensee, or
    13  permittee;
    14    (d) methods of producing, processing, and packaging cannabis,  medical
    15  cannabis, cannabis-infused products, concentrated cannabis, and cannabi-
    16  noid  hemp  and hemp extract; conditions of sanitation, and standards of
    17  ingredients, quality, and  identity  of  cannabis  products  cultivated,
    18  processed,  packaged, or sold by any registered organizations and licen-
    19  sees;
    20    (e) security requirements for medical cannabis and adult-use  cannabis
    21  retail dispensaries and premises where cannabis products, medical canna-
    22  bis,  and  cannabinoid  hemp and hemp extract, are cultivated, produced,
    23  processed, or stored, and safety protocols for registered organizations,
    24  licensees and their employees;
    25    (f) hearing procedures and additional causes for cancellation, suspen-
    26  sion, revocation, and/or civil penalties against any person  registered,
    27  licensed, or permitted by the board; and
    28    (g)  the  circumstances,  manner  and  process  by which an applicant,
    29  registered organization, licensee, or permittee, may apply to change  or
    30  alter  its  previously  submitted or approved owners, managers, members,
    31  directors, financiers, or interest holders.
    32    3. The board shall promulgate rules and regulations that are  designed
    33  to:
    34    (a) prevent the distribution of adult-use cannabis or cannabis product
    35  to  persons under twenty-one years of age, including the modification of
    36  tobacco vaping products for use with cannabis;
    37    (b) prevent the revenue from the sale of cannabis from going to crimi-
    38  nal enterprises;
    39    (c) prevent the diversion and inversion of cannabis from this state to
    40  other states and from other states into this state, insofar as  cannabis
    41  remains federally prohibited;
    42    (d) prevent cannabis, hemp, cannabinoid hemp and hemp extract activity
    43  that  is legal under state law from being used as a cover or pretext for
    44  the trafficking of other illegal drugs or other illegal activity;
    45    (e) inform the public about the dangers of driving while impaired  and
    46  the public health consequences associated with the use of cannabis;
    47    (f) prevent the growing of cannabis on public lands;
    48    (g)  inform the public about the prohibition on the possession and use
    49  of cannabis on federal property; and
    50    (h) establish application, licensing, and permitting  processes  which
    51  ensure  all  material owners and interest holders are disclosed and that
    52  officials or other individuals with control  over  the  approval  of  an
    53  application,  permit,  or license do not themselves have any interest in
    54  an application, license, or permit.
    55    4. The board, in consultation with the department of  agriculture  and
    56  markets  and the department of environmental conservation, shall promul-

        A. 1248--A                         16

     1  gate necessary rules and regulations governing the  safe  production  of
     2  cannabis,  including environmental and energy standards and restrictions
     3  on the use of pesticides and best practices for water and energy conser-
     4  vation.
     5    5.  Emergency  rules  and regulations: In adopting any emergency rule,
     6  the board shall comply with the provisions of subdivision six of section
     7  two hundred two of the state administrative procedure act  and  subdivi-
     8  sion  three of section one hundred one-a of the executive law; provided,
     9  however, that notwithstanding the provisions of such laws:
    10    (a) Such emergency rule may remain in effect for no  longer  than  one
    11  hundred twenty days, unless within such time the board complies with the
    12  provisions of such laws and adopts the rule as a permanent rule;
    13    (b)  If,  prior  to  the expiration of a rule adopted pursuant to this
    14  paragraph, the board finds that the readoption of such rule on an  emer-
    15  gency  basis or the adoption of a substantially similar rule on an emer-
    16  gency basis is necessary for the  preservation  of  the  public  health,
    17  safety  or  general  welfare  the agency may only readopt the rule on an
    18  emergency basis or adopt a substantially similar rule  on  an  emergency
    19  basis if on or before the date of such action the board has also submit-
    20  ted  a  notice  of  proposed  rule making pursuant to subdivision six of
    21  section two hundred two of the state administrative  procedure  act  and
    22  subdivision  three of section one hundred one-a of the executive law. An
    23  emergency rule adopted pursuant to this paragraph may remain  in  effect
    24  for no longer than one hundred twenty days;
    25    (c)  An  emergency  rule  adopted  pursuant  to  this subdivision or a
    26  substantially similar rule adopted on an emergency basis may  remain  in
    27  effect  for no longer than one hundred twenty days, but upon the expira-
    28  tion of such one hundred twenty-day period  no  further  readoptions  or
    29  adoptions of substantially similar rules shall be permitted for a period
    30  of  one hundred twenty days.  Nothing in this subdivision shall preclude
    31  the adoption of such rule by submitting a notice of adoption pursuant to
    32  subdivision five of section two hundred two of the state  administrative
    33  procedure act; and
    34    (d) Strict compliance with the provisions of this subdivision shall be
    35  required, and any emergency rule or substantially similar rule that does
    36  not so comply shall be void and of no legal effect.
    37    6.  The  board  shall  have  the  authority  to promulgate regulations
    38  governing the appropriate use and  licensure  of  the  manufacturing  of
    39  cannabinoids,  or  other  compounds contained within the cannabis plant,
    40  through any method other than planting, growing, cloning, harvesting, or
    41  other traditional means of plant agriculture.
    42    § 14. State cannabis advisory board. 1. The  state  cannabis  advisory
    43  board  or  "advisory board" is established within the office of cannabis
    44  management and directed to  work  in  collaboration  with  the  cannabis
    45  control board and the executive director to advise and issue recommenda-
    46  tions on the use of medical cannabis, adult-use cannabis and cannabinoid
    47  hemp  and  hemp  extract  in the state of New York, and shall govern and
    48  administer the New York state community grants reinvestment fund  pursu-
    49  ant to section 99-kk of the state finance law.
    50    2.  The state cannabis advisory board shall consist of thirteen voting
    51  appointed members, along with a representative from  the  department  of
    52  environmental  conservation,  the department of agriculture and markets,
    53  the office of children and family services, the department of labor, the
    54  department of health, the division of housing and community renewal, the
    55  office of addiction services and supports, and the department of  educa-
    56  tion,  serving as non-voting ex-officio members. The governor shall have

        A. 1248--A                         17
 
     1  seven appointments, the temporary president of the senate and the speak-
     2  er of the assembly shall each have three appointments to the board.  The
     3  members  shall  be  appointed  to each serve three year terms and in the
     4  event  of  a  vacancy,  the vacancy shall be filled in the manner of the
     5  original appointment for the remainder  of  the  term.    The  appointed
     6  members  and  representatives  shall  receive  no compensation for their
     7  services but shall  be  allowed  their  actual  and  necessary  expenses
     8  incurred in the performance of their duties as board members.
     9    3.  Advisory  board  members shall have statewide geographic represen-
    10  tation that is  balanced  and  diverse  in  its  composition.  Appointed
    11  members  shall  have  an  expertise  in  public  and  behavioral health,
    12  substance use disorder treatment, effective rehabilitative treatment for
    13  adults and juveniles, homelessness and  housing,  economic  development,
    14  environmental   conservation,   job  training  and  placement,  criminal
    15  justice, and drug policy. Further,  the  advisory  board  shall  include
    16  residents from communities most impacted by cannabis prohibition, people
    17  with  prior  drug  convictions, the formerly incarcerated, and represen-
    18  tatives from the farming industry, cannabis industry, and  organizations
    19  serving communities impacted by past federal and state drug policies.
    20    4.  The  chairperson  of  the  advisory board and the vice chairperson
    21  shall be elected from among the members of the  advisory  board  by  the
    22  members of such advisory board. The vice chairperson shall represent the
    23  advisory  board  in the absence of the chairperson at all official advi-
    24  sory board functions.
    25    5. The advisory board  shall  make  recommendations  to  the  cannabis
    26  control  board,  the  office  and  the  legislature on cannabis and hemp
    27  cultivation, processing, distribution, transport,  social  and  economic
    28  equity  in  the  cannabis  and hemp industries, criminal justice, public
    29  health and safety concerns, law  enforcement  related  to  cannabis  and
    30  cannabis  products, and on the testing and sale of cannabis and cannabis
    31  products.
    32    6. The advisory board shall meet as frequently  as  its  business  may
    33  require.  The advisory board shall enact and from time to time may amend
    34  bylaws in relation to its meetings and the transaction of its  business.
    35  A  majority  of the total number of voting members which the board would
    36  have were there no vacancies, shall constitute a  quorum  and  shall  be
    37  required for the board to conduct business. All meetings of the advisory
    38  board  shall  be  conducted in accordance with the provisions of article
    39  seven of the public officers law.
    40    § 15. Disposition of moneys received for  license  fees.    The  board
    41  shall  establish  a  scale  of application, licensing, and renewal fees,
    42  based upon the cost of enforcing this chapter and the size of the canna-
    43  bis business being licensed, as follows:
    44    1. The board shall charge each registered organization,  licensee  and
    45  permittee  a  registration, licensure or permit fee, and renewal fee, as
    46  applicable.  The fees may vary depending upon the nature  and  scope  of
    47  the different registration, licensure and permit activities.
    48    2. The total fees assessed pursuant to this chapter shall be set at an
    49  amount  that  will  generate  sufficient total revenue to, at a minimum,
    50  fully cover the total costs of administering this chapter.
    51    3. All registration and licensure fees shall be set on a scaled  basis
    52  by the board, dependent on the size and capacity of the business and for
    53  social  and  economic  equity  applicants  such  fees may be assessed to
    54  accomplish the goals of this chapter.

        A. 1248--A                         18
 
     1    4. The board shall deposit all fees collected in the  New  York  state
     2  cannabis  revenue fund established pursuant to section ninety-nine-ii of
     3  the state finance law.
     4    §  16.  Violations  of  cannabis  laws  or  regulations; penalties and
     5  injunctions. 1. Any person who violates, disobeys or disregards any term
     6  or provision of this chapter or of any lawful  notice,  order  or  regu-
     7  lation  pursuant  thereto  for  which a civil or criminal penalty is not
     8  otherwise expressly prescribed by law, shall be liable to the people  of
     9  the state for a civil penalty of not to exceed five thousand dollars for
    10  every such violation.
    11    2.  The penalty provided for in subdivision one of this section may be
    12  recovered by an action brought by the board in any  court  of  competent
    13  jurisdiction.
    14    3.  Such  civil  penalty  may  be released or compromised by the board
    15  before the matter has been referred to the attorney general,  and  where
    16  such  matter has been referred to the attorney general, any such penalty
    17  may be released or compromised and any action commenced to  recover  the
    18  same  may  be  settled and discontinued by the attorney general with the
    19  consent of the board.
    20    4. It shall be the duty of the attorney general upon  the  request  of
    21  the  board  to  bring an action for an injunction against any person who
    22  violates, disobeys or disregards any term or provision of  this  chapter
    23  or of any lawful notice, order or regulation pursuant thereto; provided,
    24  however,  that the executive director shall furnish the attorney general
    25  with such material, evidentiary matter or proof as may be  requested  by
    26  the attorney general for the prosecution of such an action.
    27    5. It is the purpose of this section to provide additional and cumula-
    28  tive  remedies,  and  nothing  herein  contained  shall abridge or alter
    29  rights of action or remedies now or hereafter existing,  nor  shall  any
    30  provision  of  this  section,  nor  any  action  done  by virtue of this
    31  section, be construed as estopping the state, persons or  municipalities
    32  in the exercising of their respective rights.
    33    §  17.  Formal  hearings;  notice  and procedure. 1. The board, or any
    34  person designated by them for this  purpose,  may  issue  subpoenas  and
    35  administer  oaths  in connection with any hearing or investigation under
    36  or pursuant to this chapter, and it shall be the duty of the  board  and
    37  any  persons  designated  by them for such purpose to issue subpoenas at
    38  the request of and upon behalf of the respondent.
    39    2. The board and those designated by them shall not be  bound  by  the
    40  laws of evidence in the conduct of hearing proceedings, but the determi-
    41  nation shall be founded upon preponderance of evidence to sustain it.
    42    3. Notice and right of hearing as provided in the state administrative
    43  procedure act shall be served at least fifteen days prior to the date of
    44  the  hearing,  provided  that,  whenever because of danger to the public
    45  health, safety or welfare it appears prejudicial to the interests of the
    46  people of the state to delay action for  fifteen  days,  the  board  may
    47  serve  the  respondent  with  an  order  requiring certain action or the
    48  cessation of certain activities immediately or within a specified period
    49  of less than fifteen days.
    50    4. Service of notice of hearing or order shall  be  made  by  personal
    51  service  or  by  registered or certified mail. Where service, whether by
    52  personal service or by registered or certified mail,  is  made  upon  an
    53  incompetent,  partnership,  or  corporation,  it  shall be made upon the
    54  person or persons designated to  receive  personal  service  by  article
    55  three of the civil practice law and rules.

        A. 1248--A                         19
 
     1    5.  At  a  hearing,  that  to the greatest extent practicable shall be
     2  reasonably near the respondent, the respondent  may  appear  personally,
     3  shall have the right of counsel, and may cross-examine witnesses against
     4  him or her and produce evidence and witnesses on his or her behalf.
     5    6.  Following a hearing, the board may make appropriate determinations
     6  and issue a final order in accordance therewith.
     7    7. The board may adopt, amend  and  repeal  administrative  rules  and
     8  regulations  governing  the  procedures  to  be followed with respect to
     9  hearings, such rules to be consistent with the  policy  and  purpose  of
    10  this chapter and the effective and fair enforcement of its provisions.
    11    8.  The provisions of this section shall be applicable to all hearings
    12  held pursuant to this chapter, except where  other  provisions  of  this
    13  chapter  applicable  thereto  are inconsistent therewith, in which event
    14  such other provisions shall apply.
    15    § 18. Ethics, transparency and accountability.  No member of the board
    16  or office or any officer, deputy, assistant, inspector or  employee,  or
    17  spouse  or  minor child of such member, officer, assistant, inspector or
    18  employee thereof shall have any interest,  direct  or  indirect,  either
    19  proprietary  or  by means of any loan, mortgage or lien, or in any other
    20  manner, in or on any premises where adult-use cannabis, medical cannabis
    21  or cannabinoid hemp and hemp extract is cultivated, processed,  distrib-
    22  uted or sold; nor shall he or she have any interest, direct or indirect,
    23  in any business wholly or partially devoted to the cultivation, process-
    24  ing,  distribution,  sale, transportation or storage of adult-use canna-
    25  bis, medical cannabis or cannabinoid hemp and hemp extract, or  own  any
    26  stock  in  any corporation which has any interest, proprietary or other-
    27  wise, direct or indirect, in any  premises  where  adult  use  cannabis,
    28  medical  cannabis  or  cannabinoid  hemp and hemp extract is cultivated,
    29  processed, distributed or sold, or in any business wholly  or  partially
    30  devoted  to the cultivation, processing, distribution, sale, transporta-
    31  tion or storage of adult-use cannabis, medical cannabis  or  cannabinoid
    32  hemp  and  hemp extract, or receive any commission or profit whatsoever,
    33  direct or indirect, from  any  person  applying  for  or  receiving  any
    34  license  or  permit  provided  for  in  this  chapter, or hold any other
    35  elected public office in the state  or  in  any  political  subdivision.
    36  After notice and opportunity to be heard, anyone found to have knowingly
    37  violated  any  of the provisions of this section shall, after notice, be
    38  removed and shall divest themselves of such direct  or  indirect  inter-
    39  ests, in addition to any other penalty provided by law.
    40    §  19.  Public health and education campaign. The office, in consulta-
    41  tion with the commissioners of  the  department  of  health,  office  of
    42  addiction  services  and  supports,  and  office of mental health, shall
    43  develop and implement a comprehensive public health monitoring, surveil-
    44  lance and education campaign regarding  the  legalization  of  adult-use
    45  cannabis and the impact of cannabis use on public health and safety. The
    46  public  health  and education campaign shall also include general educa-
    47  tion to the public about the cannabis law.
    48    § 20. Establish uniform policies and best practices. The office  shall
    49  engage in activities with other states, territories, or jurisdictions in
    50  order to coordinate and establish uniform policies and best practices in
    51  cannabis regulation. These activities shall prioritize coordination with
    52  neighboring and regional states, and may include, but not be limited to,
    53  establishing working groups related to laboratory testing, product safe-
    54  ty,  taxation,  road safety, compliance and adherence with federal poli-
    55  cies which promote or  facilitate  cannabis  research,  commerce  and/or
    56  regulation, and any other issues identified by the executive director.

        A. 1248--A                         20
 
     1                                  ARTICLE 3
     2                              MEDICAL CANNABIS
 
     3  Section 30. Certification of patients.
     4          31. Lawful medical use.
     5          32. Registry identification cards.
     6          33. Registration as a designated caregiver facility.
     7          34. Registered organizations.
     8          35. Registering of registered organizations.
     9          36. Reports of registered organizations.
    10          37. Evaluation; research programs; report by board.
    11          38. Cannabis research license.
    12          39. Registered organizations and adult-use cannabis.
    13          40. Relation to other laws.
    14          41. Home cultivation of medical cannabis.
    15          42. Protections for the medical use of cannabis.
    16          43. Regulations.
    17          44. Suspend; terminate.
    18          45. Pricing.
    19    §  30. Certification of patients.  1. A patient certification may only
    20  be issued if:
    21    (a) the patient has a condition,  which  shall  be  specified  in  the
    22  patient's health care record;
    23    (b)  the  practitioner by training or experience is qualified to treat
    24  the condition;
    25    (c) the patient is under the practitioner's continuing  care  for  the
    26  condition; and
    27    (d)  in  the  practitioner's  professional  opinion and review of past
    28  treatments, the patient is likely to receive therapeutic  or  palliative
    29  benefit  from  the  primary  or adjunctive treatment with medical use of
    30  cannabis for the condition.
    31    2. The certification shall include: (a) the name, date  of  birth  and
    32  address of the patient; (b) a statement that the patient has a condition
    33  and  the patient is under the practitioner's care for the condition; (c)
    34  a statement attesting that all requirements of subdivision one  of  this
    35  section  have  been  satisfied; (d) the date; and (e) the name, address,
    36  telephone number, and the signature of the certifying practitioner.  The
    37  board  may  require  by  regulation that the certification shall be on a
    38  form provided by the office. The practitioner may state in  the  certif-
    39  ication  that,  in  the practitioner's professional opinion, the patient
    40  would benefit from medical cannabis only until  a  specified  date.  The
    41  practitioner  may state in the certification that, in the practitioner's
    42  professional opinion, the patient is terminally ill and that the certif-
    43  ication shall not expire until the patient dies.
    44    3. In making a certification, the practitioner may consider  the  form
    45  of  medical cannabis the patient should consume, including the method of
    46  consumption and any particular strain, variety, and quantity or percent-
    47  age of cannabis or particular active ingredient, and appropriate dosage.
    48  The practitioner may state in the certification  any  recommendation  or
    49  limitation  the  practitioner makes, in his or her professional opinion,
    50  concerning the appropriate form or forms of medical cannabis and dosage.
    51    4.  Every  practitioner  shall  consult  the  prescription  monitoring
    52  program  registry  prior  to  making or issuing a certification, for the
    53  purpose of reviewing  a  patient's  controlled  substance  history.  For
    54  purposes  of  this  section,  a practitioner may authorize a designee to
    55  consult the prescription monitoring  program  registry  on  his  or  her

        A. 1248--A                         21
 
     1  behalf,  provided  that  such  designation is in accordance with section
     2  thirty-three hundred forty-three-a of the public health law.
     3    5.  The  practitioner  shall  give  the certification to the certified
     4  patient, and place a copy in the patient's health care record.
     5    6. No practitioner shall issue a certification under this section  for
     6  themselves.
     7    7.  A  registry  identification  card  based  on a certification shall
     8  expire one year after the date the certification is signed by the  prac-
     9  titioner, except as provided for in subdivision eight of this section.
    10    8.  (a)  If  the practitioner states in the certification that, in the
    11  practitioner's professional opinion,  the  patient  would  benefit  from
    12  medical  cannabis only until a specified earlier date, then the registry
    13  identification card shall expire on that date; (b) if  the  practitioner
    14  states  in  the  certification  that  in the practitioner's professional
    15  opinion the patient is terminally ill and that the  certification  shall
    16  not expire until the patient dies, then the registry identification card
    17  shall state that the patient is terminally ill and that the registration
    18  card  shall  not  expire until the patient dies; (c) if the practitioner
    19  re-issues the certification to terminate the certification on an earlier
    20  date, then the registry identification card shall expire  on  that  date
    21  and  shall  be  promptly  destroyed by the certified patient; (d) if the
    22  certification so provides, the registry identification card shall  state
    23  any  recommendation  or limitation by the practitioner as to the form or
    24  forms of medical cannabis or dosage for the certified patient;  and  (e)
    25  the board shall make regulations to implement this subdivision.
    26    9.  (a) A certification may be a special certification if, in addition
    27  to the other requirements for a certification, the  practitioner  certi-
    28  fies  in  the  certification that the patient's condition is progressive
    29  and degenerative or that delay in the patient's certified medical use of
    30  cannabis poses a risk to the patient's life or health.
    31    (b) The office shall create the form to be used for a special  certif-
    32  ication  and  shall  make  that form available to be downloaded from the
    33  office's website.
    34    10. Prior to issuing a certification a practitioner must complete,  at
    35  a  minimum,  a two-hour course as determined by the board in regulation.
    36  For the purposes of this article a person's status as a practitioner  is
    37  deemed  to  be  a  "license"  for  the  purposes of section thirty-three
    38  hundred ninety of the public health law and shall be subject to the same
    39  revocation process.
    40    § 31. Lawful medical use. The possession, acquisition, use,  delivery,
    41  transfer,  transportation,  or  administration  of medical cannabis by a
    42  certified patient, designated caregiver or the employees of a designated
    43  caregiver facility, for certified medical use,  shall  be  lawful  under
    44  this article provided that:
    45    1. the cannabis that may be possessed by a certified patient shall not
    46  exceed  a sixty-day supply of the dosage determined by the practitioner,
    47  consistent with any  guidance  and  regulations  issued  by  the  board,
    48  provided  that  during  the last seven days of any sixty-day period, the
    49  certified patient may also possess  up  to  such  amount  for  the  next
    50  sixty-day period;
    51    2.  the  cannabis  that may be possessed by designated caregivers does
    52  not exceed the quantities referred to in subdivision one of this section
    53  for each certified patient for whom  the  caregiver  possesses  a  valid
    54  registry identification card, up to four certified patients;
    55    3.  the cannabis that may be possessed by designated caregiver facili-
    56  ties does not exceed the quantities referred to in  subdivision  one  of

        A. 1248--A                         22
 
     1  this  section  for each certified patient under the care or treatment of
     2  the facility;
     3    4.  the form or forms of medical cannabis that may be possessed by the
     4  certified patient, designated caregiver or designated caregiver facility
     5  pursuant to a certification shall be in compliance with any  recommenda-
     6  tion  or  limitation  by  the  practitioner  as  to the form or forms of
     7  medical cannabis or dosage for the  certified  patient  in  the  certif-
     8  ication;
     9    5. the medical cannabis shall be kept in the original package in which
    10  it  was dispensed under this article, except for the portion removed for
    11  immediate  consumption  for  certified  medical  use  by  the  certified
    12  patient; and
    13    6.  in  the  case  of  a  designated  caregiver facility, the employee
    14  assisting the patient has been designated  as  such  by  the  designated
    15  caregiver facility.
    16    §  32. Registry identification cards.  1. Upon approval of the certif-
    17  ication, the office shall issue registry identification cards for certi-
    18  fied patients and designated caregivers. A registry identification  card
    19  shall  expire  as  provided  in this article or as otherwise provided in
    20  this section.  The office shall begin  issuing  registry  identification
    21  cards  as  soon as practicable after the certifications required by this
    22  chapter are granted. The office may specify a form for a registry appli-
    23  cation, in which case the office shall  provide  the  form  on  request,
    24  reproductions  of  the form may be used, and the form shall be available
    25  for downloading from the board's or office's website.
    26    2. To obtain, amend or renew a registry identification card, a  certi-
    27  fied  patient  or designated caregiver shall file a registry application
    28  with the office, unless otherwise exempted by the board  in  regulation.
    29  The registry application or renewal application shall include:
    30    (a) in the case of a certified patient:
    31    (i)  the patient's certification, a new written certification shall be
    32  provided with a renewal application if required by the office;
    33    (ii) the name, address, and date of birth of the patient;
    34    (iii) the date of the certification;
    35    (iv) if the patient has a registry  identification  card  based  on  a
    36  current  valid  certification,  the  registry  identification number and
    37  expiration date of that registry identification card;
    38    (v) the specified date until which  the  patient  would  benefit  from
    39  medical cannabis, if the certification states such a date;
    40    (vi) the name, address, and telephone number of the certifying practi-
    41  tioner;
    42    (vii)  any  recommendation or limitation by the practitioner as to the
    43  form or forms of medical cannabis or dosage for the certified patient;
    44    (viii) if the certified patient designates a designated caregiver, the
    45  name, address, and date of birth of the designated caregiver, and  other
    46  individual identifying information required by the board;
    47    (ix) if the designated caregiver is a cannabis research license holder
    48  under  this  chapter,  the  name  of  the  organization  conducting  the
    49  research, the address, phone number, name of the individual leading  the
    50  research  or  appropriate  designee,  and  other identifying information
    51  required by the board; and
    52    (x) other individual identifying information required by the office;
    53    (b) in the case of a designated caregiver:
    54    (i) the name, address, and date of birth of the designated caregiver;

        A. 1248--A                         23
 
     1    (ii) if the designated caregiver has a registry  identification  card,
     2  the  registry identification number and expiration date of that registry
     3  identification card; and
     4    (iii) other individual identifying information required by the office;
     5    (c)  a  statement  that  a  false statement made in the application is
     6  punishable under section 210.45 of the penal law;
     7    (d) the date of the application and the  signature  of  the  certified
     8  patient or designated caregiver, as the case may be;
     9    (e) any other requirements determined by the board.
    10    3. Where a certified patient is under the age of eighteen or otherwise
    11  incapable of consent:
    12    (a)  The  application for a registry identification card shall be made
    13  by the person responsible for  making  health  care  decisions  for  the
    14  patient.
    15    (b)  The designated caregiver shall be: (i) a parent or legal guardian
    16  of the certified patient; (ii) a person designated by a parent or  legal
    17  guardian;  (iii) an employee of a designated caregiver facility, includ-
    18  ing a cannabis research license holder; or (iv)  an  appropriate  person
    19  approved by the office upon a sufficient showing that no parent or legal
    20  guardian is appropriate or available.
    21    4.  No  person  may  be  a designated caregiver if the person is under
    22  twenty-one years of age unless a  sufficient  showing  is  made  to  the
    23  office  that  the  person  should  be permitted to serve as a designated
    24  caregiver. The requirements for such a showing shall  be  determined  by
    25  the board.
    26    5.  No  person may be a designated caregiver for more than four certi-
    27  fied patients at one time; provided, however, that this limitation shall
    28  not apply to a  designated  caregiver  facility,  or  cannabis  research
    29  license holder as defined by this chapter.
    30    6.  If  a  certified  patient wishes to change or terminate his or her
    31  designated caregiver, for whatever reason, the certified  patient  shall
    32  notify  the  office  as  soon  as  practicable. The office shall issue a
    33  notification to the designated caregiver that their registration card is
    34  invalid and must be promptly destroyed. The newly  designated  caregiver
    35  must comply with all requirements set forth in this section.
    36    7.  If the certification so provides, the registry identification card
    37  shall contain any recommendation or limitation by the practitioner as to
    38  the form or forms of  medical  cannabis  or  dosage  for  the  certified
    39  patient.
    40    8.  The  office shall issue separate registry identification cards for
    41  certified patients and designated caregivers as soon as reasonably prac-
    42  ticable after receiving  a  complete  application  under  this  section,
    43  unless  it  determines  that  the application is incomplete or factually
    44  inaccurate, in which case it shall promptly notify the applicant.
    45    9. If the application of a certified patient designates an  individual
    46  as a designated caregiver who is not authorized to be a designated care-
    47  giver, that portion of the application shall be denied by the office but
    48  that shall not affect the approval of the balance of the application.
    49    10. A registry identification card shall:
    50    (a)  contain the name of the certified patient or the designated care-
    51  giver as the case may be;
    52    (b) contain the date of issuance and expiration date of  the  registry
    53  identification card;
    54    (c) contain a registry identification number for the certified patient
    55  or  designated  caregiver, as the case may be and a registry identifica-
    56  tion number;

        A. 1248--A                         24
 
     1    (d) contain a photograph of the individual to whom the registry  iden-
     2  tification  card  is being issued, which shall be obtained by the office
     3  in a manner specified by the board in  regulations;  provided,  however,
     4  that if the office requires certified patients to submit photographs for
     5  this  purpose,  there  shall  be a reasonable accommodation of certified
     6  patients who are confined to their homes due to their medical conditions
     7  and may therefore have difficulty procuring photographs;
     8    (e) be a secure document as determined by the board;
     9    (f) plainly state any recommendation or limitation by the practitioner
    10  as to the form or forms of medical cannabis or dosage for the  certified
    11  patient; and
    12    (g) any other requirements determined by the board.
    13    11.  A certified patient or designated caregiver who has been issued a
    14  registry identification card shall notify the office of  any  change  in
    15  his or her name or address or, with respect to the patient, if he or she
    16  ceases  to have the condition noted on the certification within ten days
    17  of such change. The certified patient's or designated caregiver's regis-
    18  try identification card shall be deemed invalid and  shall  be  promptly
    19  destroyed.
    20    12.  If  a  certified patient or designated caregiver loses his or her
    21  registry identification card, he or she shall notify the  office  within
    22  ten days of losing the card. The office shall issue a new registry iden-
    23  tification card as soon as practicable, which may contain a new registry
    24  identification number, to the certified patient or designated caregiver,
    25  as the case may be.
    26    13.  The  office  shall maintain a confidential list of the persons to
    27  whom it has issued registry identification cards. Individual identifying
    28  information obtained by the office under this article shall be confiden-
    29  tial and exempt from disclosure under article six of the public officers
    30  law.
    31    14. The board shall verify to law enforcement personnel in  an  appro-
    32  priate  case  whether  a  registry  identification card is valid and any
    33  other relevant information necessary  to  protect  patients'  rights  to
    34  medical cannabis by confirming compliance with this article.
    35    15.  If a certified patient or designated caregiver willfully violates
    36  any provision of this article as determined by the  board,  his  or  her
    37  certification  and  registry  identification  card  may  be suspended or
    38  revoked. This is in addition to any other penalty that may apply.
    39    16. The board shall make regulations for special certifications, which
    40  shall include expedited procedures and which may require  the  applicant
    41  to  submit  additional documentation establishing the clinical basis for
    42  the special certification. If the board has  not  established  and  made
    43  available a form for a registry application or renewal application, then
    44  in  the  case  of  a  special  certification,  a registry application or
    45  renewal application that otherwise conforms  with  the  requirements  of
    46  this section shall not require the use of a form.
    47    §  33. Registration as a designated caregiver facility.  1. To obtain,
    48  amend or renew a registration as a designated  caregiver  facility,  the
    49  facility shall file a registry application with the office. The registry
    50  application or renewal application shall include:
    51    (a) the facility's full name and address;
    52    (b) operating certificate or license number where appropriate;
    53    (c)  name,  title,  and  signature of an authorized facility represen-
    54  tative;
    55    (d) a statement that the facility agrees to secure and  ensure  proper
    56  handling of all medical cannabis products;

        A. 1248--A                         25

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

        A. 1248--A                         26
 
     1  electronic means on a real-time basis as  the  board  shall  require  by
     2  regulation.  When filing receipt and certification information electron-
     3  ically pursuant to this paragraph,  the  proprietor  of  the  registered
     4  organization  shall  dispose of any electronically recorded prescription
     5  information in such manner as the board shall by regulation require.
     6    5. (a) No registered organization may  sell,  deliver,  distribute  or
     7  dispense  to any certified patient or designated caregiver a quantity of
     8  medical cannabis larger than that individual would be allowed to possess
     9  under this chapter.
    10    (b) When dispensing medical cannabis to a certified patient or  desig-
    11  nated caregiver, the registered organization:  (i) shall not dispense an
    12  amount  greater than a sixty-day supply to a certified patient until the
    13  certified patient has exhausted all but  a  seven  day  supply  provided
    14  pursuant to a previously issued certification; and (ii) shall verify the
    15  information  in  subparagraph  (i)  of  this paragraph by consulting the
    16  prescription monitoring program registry under this article.
    17    (c) Medical cannabis dispensed to a certified  patient  or  designated
    18  caregiver  by a registered organization shall conform to any recommenda-
    19  tion or limitation by the practitioner  as  to  the  form  or  forms  of
    20  medical cannabis or dosage for the certified patient.
    21    6.  When  a  registered  organization  sells, delivers, distributes or
    22  dispenses medical cannabis to a certified patient or designated caregiv-
    23  er, it shall provide to that individual a safety  insert,  developed  by
    24  the  registered  organization subject to regulations issued by the board
    25  and include, but not be limited to, information on:
    26    (a) methods for administering medical cannabis,
    27    (b) any potential dangers stemming from the use of medical cannabis,
    28    (c) how to recognize what may be problematic usage of medical cannabis
    29  and obtain appropriate services or treatment for problematic usage, and
    30    (d) other information as determined by the board.
    31    7.  Registered organizations shall not be managed by or employ  anyone
    32  who  has  been  convicted within three years of the date of hire, of any
    33  felony related to the functions  or  duties  of  operating  a  business,
    34  except  that  if  the  board  determines that the manager or employee is
    35  otherwise suitable to be hired, and hiring the manager or employee would
    36  not compromise public safety, the board shall conduct a thorough  review
    37  of  the  nature of the crime, conviction, circumstances, and evidence of
    38  rehabilitation of the manager or employee, and shall evaluate the  suit-
    39  ability  of  the manager or employee based on the evidence found through
    40  the review. In determining which offenses are substantially  related  to
    41  the  functions  or  duties  of  operating  a  business,  the board shall
    42  include, but not be limited to, the following:
    43    (a) a felony conviction involving fraud, money laundering, forgery and
    44  other unlawful conduct related to owning and operating a business; and
    45    (b) a felony conviction for hiring, employing  or  using  a  minor  in
    46  transporting,  carrying,  selling,  giving  away, preparing for sale, or
    47  peddling, any  controlled  substance,  or  selling,  offering  to  sell,
    48  furnishing, offering to furnish, administering, or giving any controlled
    49  substance to a minor.
    50    A felony conviction for the sale or possession of drugs, narcotics, or
    51  controlled  substances  is  not  substantially related. This subdivision
    52  shall only apply to managers or employees who come into contact with  or
    53  handle medical cannabis.
    54    8.  Manufacturing  of  medical  cannabis  by a registered organization
    55  shall only be done in a secure facility located in New York state, which

        A. 1248--A                         27
 
     1  may include a greenhouse. The board shall promulgate regulations  estab-
     2  lishing requirements for such facilities.
     3    9.  Dispensing  of medical cannabis by a registered organization shall
     4  only be done in an indoor, enclosed, secure facility located in New York
     5  state. The board shall promulgate regulations establishing  requirements
     6  for such facilities.
     7    10.  A registered organization may contract with a person or entity to
     8  provide facilities, equipment or services  that  are  ancillary  to  the
     9  registered  organization's  functions  or  activities under this article
    10  including, but not  limited  to,  shipping,  maintenance,  construction,
    11  repair,  and  security,  provided  that  the  person or entity shall not
    12  perform any function or activity directly involving the planting,  grow-
    13  ing,  tending,  harvesting, processing, or packaging of cannabis plants,
    14  medical cannabis, or medical cannabis products  being  produced  by  the
    15  registered  organization; or any other function directly involving manu-
    16  facturing or retailing of medical cannabis.  All  laws  and  regulations
    17  applicable to such facilities, equipment, or services shall apply to the
    18  contract.  The registered organization and other parties to the contract
    19  shall each be responsible for compliance with such laws and  regulations
    20  under  the contract. The board may make regulations consistent with this
    21  article relating to contracts and parties to contracts under this subdi-
    22  vision.
    23    11. A registered organization shall, based on the findings of an inde-
    24  pendent laboratory, provide documentation of  the  quality,  safety  and
    25  clinical  strength  of the medical cannabis manufactured or dispensed by
    26  the registered organization to the office and to any person or entity to
    27  which the medical cannabis is sold or dispensed.
    28    12. A registered organization shall be deemed to  be  a  "health  care
    29  provider"  for  the purposes of title two-D of article two of the public
    30  health law.
    31    13. Medical cannabis shall be dispensed  to  a  certified  patient  or
    32  designated  caregiver  in  a  sealed  and  properly labeled package. The
    33  labeling shall contain: (a) the information required to be  included  in
    34  the receipt provided to the certified patient or designated caregiver by
    35  the  registered organization; (b) the packaging date; (c) any applicable
    36  date by which the medical cannabis should be used; (d) a  warning  stat-
    37  ing,  "This  product is for medicinal use only. Women should not consume
    38  during pregnancy or while breastfeeding except  on  the  advice  of  the
    39  certifying  health  care  practitioner, and in the case of breastfeeding
    40  mothers, including the infant's pediatrician. This product might  impair
    41  the ability to drive. Keep out of reach of children."; (e) the amount of
    42  individual  doses  contained  within; and (f) a warning that the medical
    43  cannabis must be  kept  in  the  original  container  in  which  it  was
    44  dispensed.
    45    14.  The board is authorized to make rules and regulations restricting
    46  the advertising and marketing of medical cannabis.
    47    15. A registered organization shall operate in accordance with minimum
    48  operating and recordkeeping requirements  determined  by  the  board  in
    49  regulation.
    50    §  35.  Registering  of registered organizations.  1. (a) An applicant
    51  for registration as a registered organization under section  thirty-four
    52  of  this  article shall include such information prepared in such manner
    53  and detail as the board may require, including but not limited to:
    54    (i) a description of the activities in which it intends to engage as a
    55  registered organization;
    56    (ii) that the applicant:

        A. 1248--A                         28
 
     1    (A) is of good moral character;
     2    (B)  possesses or has the right to use sufficient land, buildings, and
     3  other premises, which shall be specified in the application, and  equip-
     4  ment  to properly carry on the activity described in the application, or
     5  in the alternative posts a bond of not less than two million dollars;
     6    (C) is able to maintain effective  security  and  control  to  prevent
     7  diversion,  abuse,  and  other illegal conduct relating to the cannabis;
     8  and
     9    (D) is able to comply with all applicable state laws  and  regulations
    10  relating  to  the  activities  in  which  it intends to engage under the
    11  registration;
    12    (iii) that the applicant has entered into a labor peace agreement with
    13  a bona fide labor organization that is actively engaged in  representing
    14  or attempting to represent the applicant's employees and the maintenance
    15  of  such  a labor peace agreement shall be an ongoing material condition
    16  of certification;
    17    (iv) the applicant's status as a for-profit business  entity  or  not-
    18  for-profit corporation; and
    19    (v)  the  application  shall  include  the name, residence address and
    20  title of each of the officers and directors and the name  and  residence
    21  address  of any person or entity that is a member of the applicant. Each
    22  such person, if an individual, or lawful representative if a legal enti-
    23  ty, shall submit an affidavit with the application setting forth:
    24    (A) any position of  management,  interest  or  ownership  during  the
    25  preceding ten years of a ten per centum or greater interest in any other
    26  cannabis business, or applicant, located in or outside this state, manu-
    27  facturing or distributing drugs including indirect management, interest,
    28  or ownership of parent companies, subsidiaries, or affiliates;
    29    (B)  whether  such person or any such business has been convicted of a
    30  felony or had a registration or license  suspended  or  revoked  in  any
    31  administrative or judicial proceeding, and if applicable, the history of
    32  violations  or  administrative  penalties with respect to any license to
    33  cultivate, manufacture, distribute or sell adult-use cannabis or medical
    34  cannabis; and
    35    (C) such other information as the board may reasonably require.
    36    2. The applicant shall be under a continuing duty  to  report  to  the
    37  office any change in facts or circumstances reflected in the application
    38  or  any  newly  discovered  or  occurring  fact or circumstance which is
    39  required to be included in the application.
    40    3. (a) The board shall grant a registration or amendment to  a  regis-
    41  tration under this section if they are satisfied that:
    42    (i)  the  applicant will be able to maintain effective control against
    43  diversion of cannabis;
    44    (ii) the applicant will be able to comply with  all  applicable  state
    45  laws;
    46    (iii)  the  applicant  and its officers are ready, willing and able to
    47  properly carry on the manufacturing or distributing activity for which a
    48  registration is sought;
    49    (iv) the applicant possesses or has the right to use sufficient  land,
    50  buildings  and  equipment to properly carry on the activity described in
    51  the application;
    52    (v) it is in the public interest that such  registration  be  granted,
    53  including but not limited to:
    54    (A)  whether the number of registered organizations in an area will be
    55  adequate or excessive to reasonably serve the area;

        A. 1248--A                         29
 
     1    (B) whether the registered organization is  a  minority  and/or  woman
     2  owned business enterprise, a service-disabled veteran-owned business, or
     3  from communities disproportionally impacted by the enforcement of canna-
     4  bis prohibition;
     5    (C)   whether  the  registered  organization  provides  education  and
     6  outreach to practitioners;
     7    (D) whether the registered  organization  promotes  the  research  and
     8  development of medical cannabis and patient outreach;
     9    (E)  the  affordability  of  medical  cannabis products offered by the
    10  registered organization;
    11    (F) whether the registered organization is culturally, linguistically,
    12  and medically competent to provide services to unserved and  underserved
    13  areas; and
    14    (G)  whether  the registered organization promotes racial, ethnic, and
    15  gender diversity in their workforce;
    16    (vi) the applicant and its managing officers are of good moral charac-
    17  ter;
    18    (vii) the applicant has entered into a labor peace  agreement  with  a
    19  bona fide labor organization that is actively engaged in representing or
    20  attempting  to  represent the applicant's employees; and the maintenance
    21  of such a labor peace agreement shall be an ongoing  material  condition
    22  of registration; and
    23    (viii)  the  applicant satisfies any other conditions as determined by
    24  the board.
    25    (b) If the board is not satisfied that the applicant should be  issued
    26  a registration, he or she shall notify the applicant in writing of those
    27  factors  upon  which further evidence is required. Within thirty days of
    28  the receipt of such notification, the applicant  may  submit  additional
    29  material to the board or demand a hearing, or both.
    30    (c)  The  fee for a registration under this section shall be an amount
    31  determined by the board in regulations; provided, however, if the regis-
    32  tration is issued for a period greater than two years the fee  shall  be
    33  increased, pro rata, for each additional month of validity.
    34    (d)  Registrations  issued  under this section shall be effective only
    35  for the registered organization and shall specify:
    36    (i) the name and address of the registered organization;
    37    (ii) which activities of a registered organization  are  permitted  by
    38  the registration;
    39    (iii)  the  land,  buildings  and  facilities that may be used for the
    40  permitted activities of the registered organization; and
    41    (iv) such other information as the board shall reasonably  provide  to
    42  assure compliance with this article.
    43    (e)  Upon application of a registered organization, a registration may
    44  be amended to allow the registered organization to relocate  within  the
    45  state  or  to add or delete permitted registered organization activities
    46  or facilities. The fee for such amendment shall  be  determined  by  the
    47  board  in regulation and be based off the administrative burden to proc-
    48  ess and review the amendment by the office, provided  no  fee  shall  be
    49  greater than two thousand dollars.
    50    4.  A  registration  issued  under this section shall be valid for two
    51  years from the date of issue, except that in  order  to  facilitate  the
    52  renewals  of such registrations, the board may upon the initial applica-
    53  tion for a registration, issue some registrations which may remain valid
    54  for a period of time greater than two years but not exceeding  an  addi-
    55  tional eleven months.

        A. 1248--A                         30

     1    5.    (a)  An  application  for the renewal of any registration issued
     2  under this section shall be filed with  the  board  not  more  than  six
     3  months  nor  less  than  four  months prior to the expiration thereof. A
     4  late-filed application for the renewal of a  registration  may,  in  the
     5  discretion  of  the  board,  be treated as an application for an initial
     6  license.
     7    (b)  The  application  for  renewal  shall  include  such  information
     8  prepared  in  the  manner and detail as the board may require, including
     9  but not limited to:
    10    (i) any material change in the  circumstances  or  factors  listed  in
    11  subdivision one of this section; and
    12    (ii)  every known charge or investigation, pending or concluded during
    13  the period of the registration, by any  governmental  or  administrative
    14  agency with respect to:
    15    (A)  each  incident  or alleged incident involving the theft, loss, or
    16  possible diversion of medical cannabis manufactured  or  distributed  by
    17  the applicant; and
    18    (B)  compliance  by  the  applicant  with  the  laws of the state with
    19  respect to  the  cultivation,  manufacture,  distribution,  or  sale  of
    20  medical cannabis or adult-use cannabis, where applicable.
    21    (c)  An  applicant  for  renewal  shall  be under a continuing duty to
    22  report to the board any change in facts or  circumstances  reflected  in
    23  the  application  or  any  newly discovered or occurring fact or circum-
    24  stance which is required to be included in the application and to obtain
    25  approval prior to any material change in management, interest or  owner-
    26  ship.
    27    (d)  If  the  board  is not satisfied that the registered organization
    28  applicant is entitled to a renewal of the registration, the board  shall
    29  within  a  reasonably  practicable  time  as determined by the executive
    30  director, serve upon the registered  organization  or  its  attorney  of
    31  record  in  person or by registered or certified mail an order directing
    32  the registered organization  to  show  cause  why  its  application  for
    33  renewal  should  not  be  denied.  The order shall specify in detail the
    34  respects in which the applicant has not satisfied  the  board  that  the
    35  registration should be renewed.
    36    (e) Within a reasonably practicable time as determined by the board of
    37  such order, the applicant may submit additional material to the board or
    38  demand a hearing or both; if a hearing is demanded the board shall fix a
    39  date as soon as reasonably practicable.
    40    6.  (a)  The  board shall renew a registration unless he or she deter-
    41  mines and finds that:
    42    (i) the applicant is unlikely to  maintain  or  be  able  to  maintain
    43  effective control against diversion;
    44    (ii)  the applicant is unlikely to comply with all state laws applica-
    45  ble to the activities in which it may engage under the registration;
    46    (iii) it is not in the  public  interest  to  renew  the  registration
    47  because  the  number of registered organizations in an area is excessive
    48  to reasonably serve the area;
    49    (iv) the applicant has either violated or terminated its  labor  peace
    50  agreement; or
    51    (v)  the  applicant  has  substantively  violated  the laws of another
    52  jurisdiction, in which they operate or have operated a cannabis  license
    53  or registration, related to the operation of a cannabis business.
    54    (b)  For  purposes  of this section, proof that a registered organiza-
    55  tion, during the period of its  registration,  has  failed  to  maintain
    56  effective  control  against  diversion,  violates  any provision of this

        A. 1248--A                         31
 
     1  article, or has knowingly or negligently failed to comply with  applica-
     2  ble  state laws relating to the activities in which it engages under the
     3  registration, may constitute  grounds  for  suspension,  termination  or
     4  limitation  of  the  registered organization's registration or as deter-
     5  mined by the board. The registered organization shall also  be  under  a
     6  continuing  duty  to report to the office any material change or fact or
     7  circumstance to the information provided  in  the  registered  organiza-
     8  tion's application.
     9    7. The board may suspend or terminate the registration of a registered
    10  organization,  on grounds and using procedures under this article relat-
    11  ing to a license, to the extent consistent with this article.  The board
    12  shall suspend or terminate the registration in the event that  a  regis-
    13  tered  organization  violates  or  terminates the applicable labor peace
    14  agreement. Conduct in compliance with this  article  which  may  violate
    15  conflicting  federal law, shall not be grounds to suspend or terminate a
    16  registration.
    17    8. A registered organization that manufactures  medical  cannabis  may
    18  have  no  more  than  four dispensing sites wholly owned and operated by
    19  such registered organization. Such registered organization may  have  an
    20  additional  four dispensing sites; provided, however, that the first two
    21  additional dispensing sites shall be located in underserved or  unserved
    22  geographic locations, as determined by the board. The board shall ensure
    23  that  such  registered  organizations and dispensing sites are geograph-
    24  ically distributed across the state and that  their  ownership  reflects
    25  the demographics of the state.
    26    9.  In  coordination  with  the  chief  equity officer the board shall
    27  register additional registered  organizations  to  provide  services  to
    28  unserved  and underserved areas of the state. Pursuant to the social and
    29  economic equity plan established by section eighty-seven of  this  chap-
    30  ter,  those  additional  registered organizations shall be reflective of
    31  the demographics of the state, be representative of communities  dispro-
    32  portionately  impacted  by  cannabis  prohibition,  and  be  culturally,
    33  linguistically, and medically competent to  serve  unserved  and  under-
    34  served  areas  of  the  state.  The board shall actively promote racial,
    35  ethnic, and gender  diversity  when  registering  additional  registered
    36  organizations.
    37    §  36.  Reports  of registered organizations.   1. The board shall, by
    38  regulation, require each registered organization to file reports by  the
    39  registered  organization  during  a  particular  period. The board shall
    40  determine the information to be reported and the forms, time, and manner
    41  of the reporting.
    42    2. The board shall, by regulation, require each  registered  organiza-
    43  tion  to  adopt  and maintain security, tracking, record keeping, record
    44  retention and surveillance systems, relating to all medical cannabis  at
    45  every  stage  of  acquiring,  possession,  manufacture,  sale, delivery,
    46  transporting, distributing, or dispensing by  the  registered  organiza-
    47  tion, subject to regulations of the board.
    48    §  37.  Evaluation;  research programs; report by board.  1. The board
    49  may provide for the analysis and evaluation of  the  operation  of  this
    50  article.  The  board may enter into agreements with one or more persons,
    51  not-for-profit corporations or other organizations, for the  performance
    52  of  an  evaluation of the implementation and effectiveness of this arti-
    53  cle.
    54    2. The board may develop, seek any necessary federal approval for, and
    55  carry out research programs relating to medical use of cannabis. Partic-

        A. 1248--A                         32
 
     1  ipation in any such research program shall be voluntary on the  part  of
     2  practitioners, patients, and designated caregivers.
     3    3.  The  board shall report every two years, beginning two years after
     4  the effective date of this article, to the governor and the  legislature
     5  on  the  medical use of cannabis under this article and make appropriate
     6  recommendations.
     7    § 38. Cannabis research license.   1.  The  board  shall  establish  a
     8  cannabis  research  license that permits a licensee to produce, process,
     9  purchase and/or possess cannabis  for  the  following  limited  research
    10  purposes:
    11    (a) to test chemical potency and composition levels;
    12    (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
    13  products;
    14    (c) to conduct research on the efficacy and  safety  of  administering
    15  cannabis as part of medical treatment; and
    16    (d) to conduct genomic or agricultural research.
    17    2. As part of the application process for a cannabis research license,
    18  an applicant must submit to the board a description of the research that
    19  is  intended  to  be  conducted  as well as the amount of cannabis to be
    20  grown or purchased. The  board  shall  review  an  applicant's  research
    21  project  and  determine whether it meets the requirements of subdivision
    22  one of this section. In addition, the board shall assess the application
    23  based on the following criteria:
    24    (a) project quality, study design, value, and impact;
    25    (b) whether the applicant has the  appropriate  personnel,  expertise,
    26  facilities  and  infrastructure,  funding,  and  human, animal, or other
    27  approvals in place to successfully conduct the project; and
    28    (c) whether the amount of cannabis to be grown  or  purchased  by  the
    29  applicant  is  consistent  with  the  project's  scope and goals. If the
    30  office determines that the research project does not meet  the  require-
    31  ments  of  subdivision  one  of  this  section,  the application must be
    32  denied.
    33    3. A cannabis research licensee may only sell cannabis grown or within
    34  its operation to other cannabis research licensees. The board may revoke
    35  a cannabis research license for violations of this section.
    36    4. A cannabis research licensee may contract with  an  institution  of
    37  higher  education,  including  but  not limited to a hospital within the
    38  state university of New York, to perform research  in  conjunction  with
    39  such  institution.    All  research  projects,  entered  into under this
    40  section must be approved by the  board  and  meet  the  requirements  of
    41  subdivision one of this section.
    42    5.  In  establishing  a cannabis research license, the board may adopt
    43  regulations on the following:
    44    (a) application requirements;
    45    (b) cannabis research license renewal requirements, including  whether
    46  additional research projects may be added or considered;
    47    (c) conditions for license revocation;
    48    (d)  security  measures to ensure cannabis is not diverted to purposes
    49  other than research;
    50    (e) amount of plants,  useable  cannabis,  cannabis  concentrates,  or
    51  cannabis-infused products a licensee may have on its premises;
    52    (f) licensee reporting requirements;
    53    (g) conditions under which cannabis grown by licensed cannabis produc-
    54  ers  and  other  product  types from licensed cannabis processors may be
    55  donated to cannabis research licensees; and
    56    (h) any additional requirements deemed necessary by the board.

        A. 1248--A                         33
 
     1    6. A cannabis research license issued pursuant to this section must be
     2  issued in the name of the applicant and specify the  location  at  which
     3  the  cannabis  researcher  intends  to operate, which must be within the
     4  state of New York.
     5    7. The application fee for a cannabis research license shall be deter-
     6  mined  by  the  board  on  an annual basis and may be based on the size,
     7  scope and duration of the research proposed.
     8    8. Each cannabis research licensee shall issue an annual report to the
     9  board. The board shall review such report and make a determination as to
    10  whether the research project continues to meet the  research  qualifica-
    11  tions under this section.
    12    § 39. Registered organizations and adult-use cannabis. The board shall
    13  have  the authority to grant some or all of the registered organizations
    14  registered with the department of health and currently registered and in
    15  good standing with the office, the ability to obtain adult-use  cannabis
    16  licenses  pursuant  to article four of this chapter subject to any fees,
    17  rules or conditions prescribed by the board in regulation.
    18    § 40. Relation to other laws.  1. The provisions of this article shall
    19  apply, except that where a provision  of  this  article  conflicts  with
    20  another provision of this chapter, this article shall apply.
    21    2. Medical cannabis shall not be deemed to be a "drug" for purposes of
    22  article one hundred thirty-seven of the education law.
    23    §  41. Home cultivation of medical cannabis.  Certified patients twen-
    24  ty-one years of age or older may cultivate cannabis  for  personal  use.
    25  Designated  caregivers  twenty-one  years  of  age  or older, caring for
    26  certified patients either younger than twenty-one years of age or  whose
    27  physical  or  cognitive impairments prevent them from cultivating canna-
    28  bis, may cultivate cannabis for use by such patients, provided  that  no
    29  other  caregiver  is  growing  for said patient or patients.  All culti-
    30  vation under this section shall be in accordance with section 222.15  of
    31  the  penal  law and any regulations made by the board, provided that the
    32  maximum number of cannabis plants a designated caregiver  is  authorized
    33  to  grow  is proportionately increased for each patient they are growing
    34  for.
    35    § 42. Protections for  the  medical  use  of  cannabis.  1.  Certified
    36  patients,  designated  caregivers,  designated  caregiver facilities and
    37  employees of designated caregiver facilities, practitioners,  registered
    38  organizations  and the employees of registered organizations, and canna-
    39  bis researchers shall not be subject to arrest, prosecution, or  penalty
    40  in  any  manner,  or  denied  any  right or privilege, including but not
    41  limited to civil penalty or disciplinary action by a business or occupa-
    42  tional or professional licensing board or bureau, solely for the  certi-
    43  fied  medical use or manufacture of cannabis, or for any other action or
    44  conduct in accordance with this article.
    45    2. Being a certified patient shall be deemed to be having a "disabili-
    46  ty" under article fifteen of the executive law, section forty-c  of  the
    47  civil  rights law, sections 240.00, 485.00, and 485.05 of the penal law,
    48  and section 200.50 of the criminal procedure law. This subdivision shall
    49  not bar the  enforcement  of  a  policy  prohibiting  an  employee  from
    50  performing  his  or her employment duties while impaired by a controlled
    51  substance. This subdivision shall not require any person or entity to do
    52  any act that would put the person  or  entity  in  direct  violation  of
    53  federal law or cause it to lose a federal contract or funding.
    54    3.  The  fact  that  a  person is a certified patient and/or acting in
    55  accordance with this article, shall not be a consideration in a proceed-

        A. 1248--A                         34
 
     1  ing pursuant to applicable sections of the domestic relations  law,  the
     2  social services law and the family court act.
     3    4.  (a) Certification applications, certification forms, any certified
     4  patient information contained within a database, and copies of  registry
     5  identification cards shall be deemed exempt from public disclosure under
     6  sections  eighty-seven and eighty-nine of the public officers law.  Upon
     7  specific request by a certified patient to the office, the office  shall
     8  verify  the  requesting patient's status as a valid certified patient to
     9  the patient's school or employer or other designated  party,  to  ensure
    10  compliance with the protections afforded by this section.
    11    (b)  The  name, contact information, and other information relating to
    12  practitioners registered with the board  under  this  article  shall  be
    13  public information and shall be maintained on the board's website acces-
    14  sible to the public in searchable form. However, if a practitioner noti-
    15  fies  the  board in writing that he or she does not want his or her name
    16  and other information disclosed,  that  practitioner's  name  and  other
    17  information  shall thereafter not be public information or maintained on
    18  the board's website, unless the practitioner cancels the request.
    19    5. A person currently under parole, probation or other state or  local
    20  supervision,  or  released on bail awaiting trial may not be punished or
    21  otherwise penalized for conduct allowed under this article.
    22    6. Employees who use medical  cannabis  shall  be  afforded  the  same
    23  rights,  procedures and protections that are available and applicable to
    24  injured workers under the workers' compensation law,  or  any  rules  or
    25  regulations  promulgated  thereunder,  when  such  injured  workers  are
    26  prescribed medications that  may  prohibit,  restrict,  or  require  the
    27  modification of the performance of their duties.
    28    § 43. Regulations. The board shall promulgate regulations to implement
    29  this  article.  The  cannabis advisory board may make recommendations to
    30  the board.
    31    § 44. Suspend; terminate. Based upon the recommendation of the  board,
    32  executive  director and/or the superintendent of state police that there
    33  is a risk to the public health or safety, the governor  may  immediately
    34  suspend or terminate all licenses issued to registered organizations.
    35    §  45. Pricing. Registered organizations shall submit documentation to
    36  the executive director of any change in pricing per dose for any medical
    37  cannabis product within fifteen days of such change. Prior  approval  by
    38  the  executive  director  shall  not  be  required  for any such change;
    39  provided however that the board is authorized to modify  the  price  per
    40  dose  for  any  medical cannabis product if necessary to maintain public
    41  access to appropriate medication.
 
    42                                  ARTICLE 4
    43                             ADULT-USE CANNABIS
 
    44  Section 61.   License application.
    45          62.   Information to be requested in applications for licenses.
    46          63.   Fees.
    47          64.   Selection criteria.
    48          65.   Limitations of licensure; duration.
    49          66.   License renewal.
    50          67.   Amendments; changes in ownership and organizational struc-
    51                  ture.
    52          68.   Adult-use cultivator license.
    53          68-a. Registered  organization  adult-use  cultivator  processor
    54                  distributor retail dispensary license.

        A. 1248--A                         35

     1          68-b. Registered  organization  adult-use  cultivator, processor
     2                  and distributor license.
     3          69.   Adult-use processor license.
     4          70.   Adult-use cooperative license.
     5          71.   Adult-use distributor license.
     6          72.   Adult-use retail dispensary license.
     7          73.   Microbusiness license.
     8          74.   Delivery license.
     9          75.   Nursery license.
    10          76.   Notification to municipalities of adult-use retail dispen-
    11                  sary or on-site consumption license.
    12          77.   Adult-use  on-site consumption license; provisions govern-
    13                  ing on-site consumption licenses.
    14          78.   Record keeping and tracking.
    15          79.   Inspections and ongoing requirements.
    16          80.   Adult-use cultivators, processors or distributors  not  to
    17                  be interested in retail dispensaries.
    18          81.   Packaging,   labeling,  and  administration  of  adult-use
    19                  cannabis products.
    20          82.   Laboratory testing.
    21          83.   Provisions governing the  cultivation  and  processing  of
    22                  adult-use cannabis.
    23          84.   Provisions  governing the distribution of adult-use canna-
    24                  bis.
    25          85.   Provisions governing adult-use cannabis retail  dispensar-
    26                  ies.
    27          86.   Adult-use cannabis advertising and marketing.
    28          87.   Social and economic equity, minority and women-owned busi-
    29                  nesses,  distressed  farmers and service-disabled veter-
    30                  ans; incubator program.
    31          88.   Data collection and reporting.
    32          89.   Regulations.
    33    § 61. License application. 1. Any person may apply to the board for  a
    34  license  to cultivate, process, distribute, deliver or dispense cannabis
    35  within this state for sale. Such application shall  be  in  writing  and
    36  verified  and shall contain such information as the board shall require.
    37  Such application shall be accompanied by a check or draft for the amount
    38  required by this article for such license. If the  board  shall  approve
    39  the  application,  it  shall  issue  a  license in such form as shall be
    40  determined by its rules. Such license shall contain a description of the
    41  licensed premises and in form and in substance shall be a license to the
    42  person therein specifically designated to cultivate,  process,  distrib-
    43  ute,  deliver  or dispense cannabis in the premises therein specifically
    44  licensed.
    45    2. Except as otherwise provided in this article,  a  separate  license
    46  shall  be  required  for each facility at which cultivation, processing,
    47  distribution or retail dispensing is conducted.
    48    3. An applicant shall not be denied a license under this article based
    49  solely on a conviction for a violation of article two hundred twenty  or
    50  section  240.36  of the penal law, prior to the date article two hundred
    51  twenty-one of the penal law took effect, a conviction for a violation of
    52  article two hundred twenty-one of the penal law, or a conviction  for  a
    53  violation  of  article two hundred twenty-two of the penal law after the
    54  effective date of this chapter.
    55    § 62. Information to be requested in applications for  licenses.    1.
    56  The  board  shall have the authority to prescribe the manner and form in

        A. 1248--A                         36
 
     1  which an application must be submitted to the office for licensure under
     2  this article.
     3    2. The board is authorized to adopt regulations, including by emergen-
     4  cy  rule, establishing information which must be included on an applica-
     5  tion for licensure under this article. Such information may include, but
     6  is not limited to:  information about the applicant's identity,  includ-
     7  ing  racial  and ethnic diversity; ownership and investment information,
     8  including the corporate structure; evidence  of  good  moral  character,
     9  including  the  submission of fingerprints by the applicant to the divi-
    10  sion of criminal justice services; information about the premises to  be
    11  licensed;  financial statements; and any other information prescribed by
    12  regulation.
    13    3. All license applications shall be signed by the  applicant  (if  an
    14  individual),  by  a managing member (if a limited liability company), by
    15  an officer (if a corporation), or by all partners  (if  a  partnership).
    16  Each  person  signing such application shall verify or affirm it as true
    17  under the penalties of perjury.
    18    4. All license or permit applications shall be accompanied by a check,
    19  draft or other forms of payment as the board may require or authorize in
    20  the amount required by this article for such license or permit.
    21    5. If there are any proposed changes, after the filing of the applica-
    22  tion or the granting of a  license  or  permit,  in  any  of  the  facts
    23  required  to  be set forth in such application, a supplemental statement
    24  giving notice of such proposed change, cost and source of money involved
    25  in the change, duly verified or affirmed, shall be filed with the  board
    26  at  least  thirty  days prior to such proposed change.  Failure to do so
    27  shall, if willful and deliberate, be cause for denial or  revocation  of
    28  the license.
    29    6. In giving any notice, or taking any action in reference to a regis-
    30  tered  organization  or  licensee  of a licensed premises, the board may
    31  rely upon the information furnished  in  such  application  and  in  any
    32  supplemental  statement connected therewith, and such information may be
    33  presumed to be correct, and shall be binding upon  registered  organiza-
    34  tions,  licensee  or  licensed  premises  as if correct. All information
    35  required to be furnished in such application or supplemental  statements
    36  shall  be deemed material in any prosecution for perjury, any proceeding
    37  to revoke, cancel or suspend any  license,  and  in  the  board's  final
    38  determination to approve or deny the license.
    39    7.  The  board may waive the submission of non-material information or
    40  documentation described in this section, the waiver of which  would  not
    41  be  inconsistent  with the purposes and goals set forth in this article,
    42  for any category of license or permit, provided that  it  shall  not  be
    43  permitted  to  waive the requirement for submission of any such category
    44  of information solely for an individual applicant or applicants.
    45    8. The board  pursuant  to  regulation,  may  wholly  prohibit  and/or
    46  prescribe  specific  criteria  under  which  it  will consider and allow
    47  limited transfers or changes of ownership, interest, or  control  during
    48  the  registration  or  license application period and/or up to two years
    49  after an approved applicant commences licensed activities.
    50    § 63. Fees. 1. The board shall have the authority to charge applicants
    51  for licensure under this article a non-refundable application fee.  Such
    52  fee  may  be  based  on the type of licensure sought, cultivation and/or
    53  production volume, or any other factors deemed reasonable and  appropri-
    54  ate by the board to achieve the policy and purpose of this chapter.
    55    1-a.  The  board  shall also have the authority to assess a registered
    56  organization with a one-time special  licensing  fee  for  a  registered

        A. 1248--A                         37
 
     1  organization  adult-use cultivator processor, distributor retail dispen-
     2  sary license.  Such fee shall be assessed at  an  amount  to  adequately
     3  fund  social  and  economic  equity and incubator assistance pursuant to
     4  this  article  and paragraph (c) of subdivision three of section ninety-
     5  nine-ii of the state finance law.   Provided, however,  that  the  board
     6  shall  not allow registered organizations to dispense adult-use cannabis
     7  from more than three of their  medical  cannabis  dispensing  locations.
     8  The  timing  and manner in which registered organizations may be granted
     9  such authority shall be determined by  the board in regulation.
    10    2. The board shall have the authority to charge licensees  a  biennial
    11  license  fee.  Such  fee  shall be based on the amount of cannabis to be
    12  cultivated, processed, distributed and/or dispensed by the  licensee  or
    13  the gross annual receipts of the licensee for the previous license peri-
    14  od,  and  any  other  factors  deemed  reasonable and appropriate by the
    15  board.
    16    3. The board shall waive or reduce fees pursuant to this  section  for
    17  social and economic equity applicants.
    18    §  64. Selection criteria.  1. The board shall develop regulations for
    19  use by the office in determining whether or not an applicant  should  be
    20  granted  the  privilege  of an initial adult-use cannabis license, based
    21  on, but not limited to, the following criteria:
    22    (a) the applicant is a social and economic equity applicant;
    23    (b) the applicant will be able to maintain effective  control  against
    24  the illegal diversion or inversion of cannabis;
    25    (c)  the  applicant  will  be able to comply with all applicable state
    26  laws and regulations;
    27    (d) the applicant and its officers are ready,  willing,  and  able  to
    28  properly carry on the activities for which a license is sought including
    29  with  assistance  from  the  social  and  economic  equity and incubator
    30  program, if applicable;
    31    (e) where appropriate and applicable, the applicant possesses  or  has
    32  the  right  to use sufficient land, buildings, and equipment to properly
    33  carry on the activity described in the application or has a plan  to  do
    34  so if qualifying as a social and economic equity applicant;
    35    (f)  the applicant qualifies as a social and economic equity applicant
    36  or sets out a plan for  benefiting  communities  and  people  dispropor-
    37  tionally impacted by  enforcement of cannabis laws;
    38    (g)  it is in the public interest that such license be granted, taking
    39  into consideration, but not limited to, the following criteria:
    40    (i) that it is a privilege, and not a right,  to  cultivate,  process,
    41  distribute, and sell adult-use cannabis;
    42    (ii) the number, classes, and character of other licenses in proximity
    43  to  the location and in the particular municipality, subdivision thereof
    44  or geographic boundary as established by the board;
    45    (iii) evidence that all necessary licenses and permits  have  been  or
    46  will be obtained from the state and all other relevant governing bodies;
    47    (iv)  effect  of  the  grant of the license on pedestrian or vehicular
    48  traffic, and parking, in proximity to the location;
    49    (v) the existing noise level at the location and any increase in noise
    50  level that would be generated by the proposed premises;
    51    (vi) the ability to increase climate resiliency and minimize or elimi-
    52  nate adverse environmental impacts, including but not limited  to  water
    53  usage, energy usage, carbon emissions, waste, pollutants, harmful chemi-
    54  cals and single use plastics;
    55    (vii) the effect on the production, price and availability of cannabis
    56  and cannabis products;

        A. 1248--A                         38
 
     1    (viii)  the  applicant's history of violations and compliance with the
     2  laws of another jurisdiction, in which they operate or have  operated  a
     3  cannabis license or registration, related to the operation of a cannabis
     4  business;
     5    (ix) the applicant's history of violations related to the operation of
     6  a  business,  including  but not limited to, violations related to labor
     7  laws, federal occupational safety and health law and tax compliance; and
     8    (x) any other factors specified by law or regulation that are relevant
     9  to determine that granting a license would  promote  public  convenience
    10  and  advantage,  public health and safety and the public interest of the
    11  state, county or community.
    12    (h) the applicant and its managing officers are of good moral  charac-
    13  ter  and  do  not  have  an  ownership  or  controlling interest in more
    14  licenses or permits than allowed by this  chapter,  or  any  regulations
    15  promulgated hereunder;
    16    (i)  the  applicant  has  entered  into a labor peace agreement with a
    17  bona-fide labor organization that is actively engaged in representing or
    18  attempting to represent the applicant's employees, and  the  maintenance
    19  of  such  a labor peace agreement shall be an ongoing material condition
    20  of licensure.  In evaluating applications from entities with twenty-five
    21  or more employees, the office shall give consideration to whether appli-
    22  cants have entered into an agreement with a statewide or local bona-fide
    23  building and construction trades organization for construction  work  on
    24  its licensed facilities;
    25    (j) the applicant will contribute to communities and people dispropor-
    26  tionately  harmed by enforcement of cannabis laws through including, but
    27  not limited to, the  social  responsibility  framework  as  provided  in
    28  section  sixty-six of this article and report these contributions to the
    29  board;
    30    (k) if the application is for an  adult-use  cultivator  or  processor
    31  license,  the environmental and energy impact, including compliance with
    32  energy standards, of the facility to be licensed;
    33    (l) the applicant satisfies any other conditions as determined by  the
    34  board; and
    35    (m)  if the applicant is a registered organization, the organization's
    36  maintenance of effort in manufacturing and/or dispensing and/or research
    37  of medical cannabis for certified patients and caregivers.
    38    2. If the board is not satisfied that the applicant should be issued a
    39  license, the executive director shall notify the applicant in writing of
    40  the specific reason or reasons recommended by the board for denial.
    41    3. The state cannabis advisory  board  shall  have  the  authority  to
    42  recommend  to  the  board the number of licenses issued pursuant to this
    43  article to ensure a competitive market where no licensee is dominant  in
    44  the statewide marketplace or in any individual category of licensing, to
    45  actively  promote  and  potentially  license  social and economic equity
    46  applicants, and carry out the goals of this chapter.
    47    § 65. Limitations of licensure; duration.  1. No license of  any  kind
    48  may  be  issued to a person under the age of twenty-one years, nor shall
    49  any licensee employ anyone under the age of eighteen years.  Any employ-
    50  ee eighteen years of age or older but under twenty-one years of age  may
    51  not  have  direct  interaction  with  customers inside a licensed retail
    52  store.
    53    2. (a) No licensee shall sell, deliver,  or  give  away  or  cause  or
    54  permit  or  procure  to be sold, delivered or given away any cannabis or
    55  cannabis product to any person, actually or apparently, under the age of
    56  twenty-one years or any visibly intoxicated person.

        A. 1248--A                         39
 
     1    (b) It shall be an affirmative defense that such person had produced a
     2  photographic identification card apparently  issued  by  a  governmental
     3  entity  and  that the cannabis had been sold, delivered or given to such
     4  person in reasonable reliance upon such  identification.  In  evaluating
     5  the applicability of such affirmative defense, the board shall take into
     6  consideration  any written policy or training adopted and implemented by
     7  the licensee to prevent sales to minors.
     8    3. No licensee or permittee shall knowingly sell, deliver or give away
     9  or cause or permit or procure to be sold, delivered or given away  to  a
    10  lawful  cannabis  consumer  any amount of cannabis which they know would
    11  cause the lawful cannabis consumer to be in violation of this chapter or
    12  possession limits established by article two hundred twenty-two  of  the
    13  penal law.
    14    4.  The  board,  on  the  recommendation  of the office shall have the
    15  authority to limit, by canopy, plant  count,  square  footage  or  other
    16  means,  the  amount of cannabis allowed to be grown, processed, distrib-
    17  uted or sold by a licensee.
    18    5. All licenses under this article shall expire two  years  after  the
    19  date of issue.
    20    § 66. License renewal.  1. Each license, issued pursuant to this arti-
    21  cle,  may  be renewed upon application therefore by the licensee and the
    22  payment of the fee for such license as prescribed by  this  article.  In
    23  the  case  of applications for renewals, the board may dispense with the
    24  requirements of such statements as it deems unnecessary in view of those
    25  contained in the application made for the original license, but  in  any
    26  event  the  submission  of photographs of the licensed premises shall be
    27  dispensed with, provided the applicant for such  renewal  shall  file  a
    28  statement with the board to the effect that there has been no alteration
    29  of  such  premises  since the original license was issued. The board may
    30  make such rules as it deems necessary, not inconsistent with this  chap-
    31  ter, regarding applications for renewals of licenses and permits and the
    32  time for making the same.
    33    2.  Each  applicant  must  submit  to  the office documentation of the
    34  racial, ethnic, and gender diversity of the  applicant's  employees  and
    35  owners  prior  to  a license being renewed. In addition, the board shall
    36  consult with the chief equity officer and executive director to create a
    37  social responsibility framework agreement that fosters  racial,  ethnic,
    38  and  gender  diversity in their workplace and make the adherence to such
    39  agreement a conditional requirement of license renewal.
    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.

        A. 1248--A                         40
 
     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 fifty-one percent or  more  of  the
    22  officers and/or directors, or a transfer of fifty-one percent or more of
    23  stock  of  such corporation, or an existing stockholder obtaining fifty-
    24  one percent or more of the stock of such corporation; or
    25    (b) for a limited liability company, a change of fifty-one percent  or
    26  more  of the managing members of the company, or a transfer of fifty-one
    27  percent or more of ownership interest in said company,  or  an  existing
    28  member obtaining a cumulative of fifty-one percent or more of the owner-
    29  ship interest in said company; or
    30    (c)  for  a  partnership, a change of fifty-one percent or more of the
    31  managing partners of the company, or a transfer of fifty-one percent  or
    32  more  of  ownership  interest  in  said  company,  or an existing member
    33  obtaining a cumulative of fifty-one percent or  more  of  the  ownership
    34  interest 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 and one distributor's license solely
    47  for the distribution of their own products.
    48    4.  A  person  holding  an adult-use cultivator's license may not also
    49  hold a retail dispensary license pursuant to this article and no  adult-
    50  use  cannabis  cultivator  shall  have  a  direct  or indirect interest,
    51  including by stock ownership, interlocking directors, mortgage or  lien,
    52  personal  or real property, management agreement, share parent companies
    53  or affiliated  organizations,  or  any  other  means,  in  any  premises
    54  licensed  as  an adult-use cannabis retail dispensary or in any business
    55  licensed as an adult-use cannabis retail dispensary or in any registered
    56  organization registered pursuant to article three of this chapter.

        A. 1248--A                         41
 
     1    5. 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, provided that  one  adult-use  cultivator  license  may
     4  authorize  adult-use  cultivation  in more than one location pursuant to
     5  criteria established by the board in regulation.
     6    §  68-a.    Registered  organization  adult-use  cultivator  processor
     7  distributor retail dispensary  license.  1.  A  registered  organization
     8  cultivator  processor  distributor  retail dispensary license shall have
     9  the same authorization and conditions as adult-use cultivator, adult-use
    10  processor,  adult-use  distributor  and  adult-use   retail   dispensary
    11  licenses  issued  pursuant  to  this  article provided, however that the
    12  location of its adult-use dispensaries shall be limited to only three of
    13  the organization's medical dispensaries' premises and facilities author-
    14  ized pursuant to article three of this chapter, and  that  it  may  only
    15  distribute  its  own  products.    Provided further that such registered
    16  organization shall maintain its medical cannabis  license  and  continue
    17  offering  medical  cannabis to a degree established by regulation of the
    18  board.  Such license does not qualify such organization  for  any  other
    19  adult-use license.
    20    2.  A  person  holding  a registered organization adult-use cultivator
    21  processor distributor retail dispensary license may not also hold anoth-
    22  er retail dispensary license pursuant to this article and no  registered
    23  organization  adult-use  cultivator processor distributor retail dispen-
    24  sary shall have a direct or indirect interest, including by stock owner-
    25  ship, interlocking directors, mortgage or lien,  personal or real  prop-
    26  erty,   management  agreement,  share  parent  companies  or  affiliated
    27  organizations, or any other  means,  in  any  premises  licensed  as  an
    28  adult-use  cannabis  retail dispensary or in any business licensed as an
    29  adult-use cannabis retail dispensary.
    30    § 68-b. Registered organization adult-use  cultivator,  processor  and
    31  distributor license. A registered organization cultivator, processor and
    32  distributor  license shall have the same authorization and conditions as
    33  an adult-use cultivator, processor, and distributor  license,  provided,
    34  however,  that  such  license does not qualify such organization for any
    35  other adult-use license and may only authorize the distribution  of  the
    36  licensee's own products.
    37    §  69.  Adult-use  processor license.   1. A processor's license shall
    38  authorize the acquisition, possession, processing and sale  of  cannabis
    39  from  the licensed premises of the adult-use cultivator by such licensee
    40  to duly licensed processors  or  distributors.    A  person  holding  an
    41  adult-use  processor's  license may apply for, and obtain, one distribu-
    42  tor's license solely for the distribution of their own products.
    43    2. For purposes of this section, processing shall include, but not  be
    44  limited  to, blending, extracting, infusing, packaging, labeling, brand-
    45  ing and otherwise making  or  preparing  cannabis  products.  Processing
    46  shall not include the cultivation of cannabis.
    47    3. No processor shall be engaged in any other business on the premises
    48  to be licensed; except that a person issued an adult-use cannabis culti-
    49  vator,  processor,  and/or  distributor license may hold and operate all
    50  issued licenses on the same premises.
    51    4. No cannabis processor licensee may  hold  more  than  one  cannabis
    52  processor  license  provided  a  single  license may authorize processor
    53  activities at multiple locations, as  set  out  in  regulations  by  the
    54  board.
    55    5.  No  adult-use  cannabis  processor shall have a direct or indirect
    56  interest, including by stock ownership, interlocking directors, mortgage

        A. 1248--A                         42
 
     1  or lien, personal or real property, management agreement,  share  parent
     2  companies  or  affiliated organizations or any other means, in any prem-
     3  ises licensed as an adult-use cannabis retail dispensary or in any busi-
     4  ness  licensed  as  an  adult-use  cannabis  retail dispensary or in any
     5  registered organization registered pursuant to  article  three  of  this
     6  chapter.
     7    6.  Adult-use  processor  licensees  are  subject to minimum operating
     8  requirements as determined by the board in regulation.
     9    § 70. Adult-use cooperative license.  1. A cooperative  license  shall
    10  authorize the acquisition, possession, cultivation, processing, distrib-
    11  ution  and  sale from the licensed premises of the adult-use cooperative
    12  by such licensee to  duly  licensed  distributors,  on-site  consumption
    13  sites,  registered  organization  and/or  retail  dispensaries;  but not
    14  directly to cannabis consumers.
    15    2. To be licensed as an adult-use cooperative, the cooperative must:
    16    (a) be comprised of residents of the state of New York  as  a  limited
    17  liability company or limited liability partnership under the laws of the
    18  state, or an appropriate business structure as determined and authorized
    19  by the board;
    20    (b)  subordinate capital, both as regards control over the cooperative
    21  undertaking, and as regards the  ownership  of  the  pecuniary  benefits
    22  arising therefrom;
    23    (c)  be  democratically  controlled  by  the members themselves on the
    24  basis of one vote per member;
    25    (d) vest in and allocate with priority to and among the members of all
    26  increases arising from their cooperative endeavor in proportion  to  the
    27  members' active participation in the cooperative endeavor; and
    28    (e)  the  cooperative  must operate according to the seven cooperative
    29  principles published by the International Cooperative Alliance in  nine-
    30  teen hundred ninety-five.
    31    3.  A  cooperative member shall be a natural person and shall not be a
    32  member of more than one adult-use cooperative licensed pursuant to  this
    33  section.
    34    4. No natural person or member of an adult-use cooperative license may
    35  have a direct or indirect financial or controlling interest in any other
    36  adult-use cannabis license issued pursuant to this chapter.
    37    5.  No  adult-use cannabis cooperative shall have a direct or indirect
    38  interest, including by stock ownership, interlocking directors, mortgage
    39  or lien, personal or real property, or any other means, in any  premises
    40  licensed  as  an adult-use cannabis retail dispensary or in any business
    41  licensed as an adult-use cannabis retail  dispensary  pursuant  to  this
    42  chapter.
    43    6.  The  board  shall  promulgate  regulations  governing  cooperative
    44  licenses, including, but not limited to,  the  establishment  of  canopy
    45  limits  on  the size and scope of cooperative licensees, and other meas-
    46  ures designed to incentivize the use and licensure of cooperatives.
    47    § 71. Adult-use distributor license.  1. A distributor's license shall
    48  authorize the acquisition, possession, distribution and sale of cannabis
    49  from the licensed premises of a licensed adult-use cultivator,  process-
    50  or,  adult-use  cooperative,  microbusiness,  or registered organization
    51  authorized pursuant to this chapter to sell adult-use cannabis, to  duly
    52  licensed retail dispensaries and on-site consumption sites.
    53    2. No distributor shall have a direct or indirect economic interest in
    54  any   microbusiness,  adult-use  retail  dispensary,  adult-use  on-site
    55  consumption licensee or in any registered organization registered pursu-
    56  ant to article three of this chapter. This restriction shall not prohib-

        A. 1248--A                         43
 
     1  it a registered organization authorized pursuant to section  thirty-nine
     2  of this chapter, from being granted licensure by the board to distribute
     3  adult-use  cannabis  products cultivated and processed by the registered
     4  organization to licensed adult-use retail dispensaries.
     5    3.  Any  distributor  with a direct or indirect interest in a licensed
     6  cultivator or processor, shall  only  distribute  cannabis  or  cannabis
     7  products cultivated and/or processed by such licensee.
     8    4. Nothing in subdivision two of this section shall prevent a distrib-
     9  utor  from charging an appropriate fee, authorized by the board, for the
    10  distribution of cannabis, including based  on  the  volume  of  cannabis
    11  distributed.
    12    5.  Adult-use  distributor  licensees are subject to minimum operating
    13  requirements as determined by the board in regulation.
    14    § 72. Adult-use retail dispensary license.   1.  A  retail  dispensary
    15  license  shall  authorize the acquisition, possession, sale and delivery
    16  of cannabis from the licensed premises of the retail dispensary by  such
    17  licensee to cannabis consumers.
    18    2.  No  person  may have a direct or indirect financial or controlling
    19  interest in more than three adult-use retail dispensary licenses  issued
    20  pursuant to this chapter.
    21    3.  No  person  holding  a  retail dispensary license may also hold an
    22  adult-use cultivation, processor, microbusiness, cooperative or distrib-
    23  utor license pursuant to this article or be registered as  a  registered
    24  organization  pursuant to article three of this chapter, except for such
    25  organizations licensed pursuant to  sections  sixty-eight-a  and  sixty-
    26  eight-b of this article.
    27    4.  No  retail  license  shall be granted for any premises, unless the
    28  applicant shall be the owner thereof, or shall be  able  to  demonstrate
    29  possession  of  the premises within thirty days of final approval of the
    30  license through a lease, management agreement or other agreement  giving
    31  the applicant control over the premises, in writing, for a term not less
    32  than the license period.
    33    5. With the exception of delivery or microbusiness licensees, no prem-
    34  ises  shall  be licensed to sell cannabis products, unless said premises
    35  shall be located in a store, the principal entrance to  which  shall  be
    36  from  the  street level and located on a public thoroughfare in premises
    37  which may be occupied, operated or  conducted  for  business,  trade  or
    38  industry.
    39    6.  No  cannabis retail licensee shall locate a storefront within five
    40  hundred feet of a school grounds as such term is defined in  the  educa-
    41  tion law or within two hundred feet of a house of worship.
    42    § 73. Microbusiness license.  1. A microbusiness license shall author-
    43  ize  the  limited  cultivation,  processing, distribution, delivery, and
    44  dispensing of their own adult-use cannabis and cannabis products.
    45    2. A microbusiness licensee may not hold any direct or indirect inter-
    46  est in any other license in this chapter and may only distribute its own
    47  cannabis and cannabis products to dispensaries.
    48    3. The size, scope and eligibility criteria of a  microbusiness  shall
    49  be determined in regulation by the board in consultation with the execu-
    50  tive  director  and  the  chief  equity  officer.  The  granting of such
    51  licenses shall promote social and economic equity applicants as provided
    52  for in this chapter.
    53    § 74. Delivery license. A delivery license shall authorize the  deliv-
    54  ery of cannabis and cannabis products by licensees independent of anoth-
    55  er  adult-use cannabis license, provided that each delivery licensee may
    56  have a total of no more than twenty-five individuals, or the  equivalent

        A. 1248--A                         44
 
     1  thereof,  providing full-time paid delivery services to cannabis consum-
     2  ers per week under one license. For the purposes  of  this  section  the
     3  state cannabis advisory board shall provide recommendations to the board
     4  for  the  application  process,  license criteria, and scope of licensed
     5  activities for this class of license.  No person may have  a  direct  or
     6  indirect  financial  or  controlling  interest in more than one delivery
     7  license. The granting of such licenses shall promote social and economic
     8  equity applicants as provided for in this chapter.
     9    § 75. Nursery license.  1.  A  nursery  license  shall  authorize  the
    10  production, sale and distribution of clones, immature plants, seeds, and
    11  other  agricultural  products used specifically for the planting, propa-
    12  gation, and cultivation of cannabis by licensed  adult-use  cultivators,
    13  cooperatives,  microbusinesses  or  registered  organizations.   For the
    14  purposes of this section, the office shall  provide  recommendations  to
    15  the  board  for  the  application process, license criteria and scope of
    16  licensed activities for this class of  license.  The  granting  of  such
    17  licenses shall promote social and economic equity applicants as provided
    18  for in this chapter.
    19    2.  A  person  or entity holding an adult-use cultivator's license may
    20  apply for, and obtain, one nursery license to  sell  directly  to  other
    21  cultivators, cooperatives, microbusinesses, or registered organizations.
    22    § 76. Notification to municipalities of adult-use retail dispensary or
    23  on-site  consumption license. 1. Not less than thirty days nor more than
    24  two hundred seventy days before filing an application for  licensure  as
    25  an  adult-use  retail  dispensary  or  registered organization adult-use
    26  cultivator  processor  distributor  retail  dispensary  or  an   on-site
    27  consumption  licensee,  an  applicant  shall  notify the municipality in
    28  which the premises is located of such applicant's intent to file such an
    29  application.
    30    2. Such notification shall be made to the clerk of the  village,  town
    31  or  city,  as  the  case  may  be,  wherein the premises is located. For
    32  purposes of this section:
    33    (a) notification need only be given to the clerk of a village when the
    34  premises is located within the boundaries of the village; and
    35    (b) in the city of New York, the community board established  pursuant
    36  to section twenty-eight hundred of the New York city charter with juris-
    37  diction  over the area in which the premises is located shall be consid-
    38  ered the appropriate public body to which notification shall be given.
    39    3. Such notification shall be made in such form as shall be prescribed
    40  by the rules of the board.
    41    4. When a city, town, or village, and in New  York  city  a  community
    42  board,  expresses  an opinion for or against the granting of such regis-
    43  tration, license or permit application, any such opinion shall be deemed
    44  part of the record upon which the office makes its recommendation to the
    45  board to grant or deny the application and the board  shall  respond  in
    46  writing  to such city, town, village or community board with an explana-
    47  tion of how such opinion was considered in the granting or denial of  an
    48  application.
    49    5.  Such  notification  shall  be  made by: (a) certified mail, return
    50  receipt requested; (b) overnight delivery service with proof of mailing;
    51  or (c) personal service upon the  offices  of  the  clerk  or  community
    52  board.
    53    6.  The  board shall require such notification to be on a standardized
    54  form that can be obtained on the internet or from  the  board  and  such
    55  notification to include:

        A. 1248--A                         45
 
     1    (a)  the trade name or "doing business as" name, if any, of the estab-
     2  lishment;
     3    (b) the full name of the applicant;
     4    (c)  the  street  address  of  the  establishment, including the floor
     5  location or room number, if applicable;
     6    (d) the mailing address of the establishment, if  different  than  the
     7  street address;
     8    (e)  the  name, address and telephone number of the attorney or repre-
     9  sentative of the applicant, if any;
    10    (f) a statement indicating whether the application is for:
    11    (i) a new establishment;
    12    (ii) a transfer of an existing licensed business;
    13    (iii) a renewal of an existing license; or
    14    (iv) an alteration of an existing licensed premises;
    15    (g) if the establishment is a transfer or  previously  licensed  prem-
    16  ises,  the name of the old establishment and such establishment's regis-
    17  tration or license number;
    18    (h) in the case of a renewal or alteration application, the  registra-
    19  tion or license number of the applicant; and
    20    (i) the type of license.
    21    §  77.  Adult-use  on-site  consumption  license; provisions governing
    22  on-site consumption licenses.   1. No  applicant  shall  be  granted  an
    23  adult-use  on-site  consumption  license  for  any  premises, unless the
    24  applicant shall be the owner thereof, or shall be in possession of  said
    25  premises under a lease, in writing, for a term not less than the license
    26  period  except,  however,  that  such  license may thereafter be renewed
    27  without the requirement of a lease as provided  in  this  section.  This
    28  subdivision shall not apply to premises leased from government agencies;
    29  provided, however, that the appropriate administrator of such government
    30  agency  provides  some form of written documentation regarding the terms
    31  of occupancy under which the applicant is leasing said premises from the
    32  government agency for presentation to the office  at  the  time  of  the
    33  license application. Such documentation shall include the terms of occu-
    34  pancy  between  the  applicant and the government agency, including, but
    35  not limited to, any short-term leasing agreements or  written  occupancy
    36  agreements.
    37    2.  No  person  may have a direct or indirect financial or controlling
    38  interest in more  than  three  adult-use  on-site  consumption  licenses
    39  issued pursuant to this chapter.
    40    3. No person holding an adult-use on-site consumption license may also
    41  hold  an adult-use retail dispensary, cultivation, processor, microbusi-
    42  ness, cooperative or distributor license pursuant to this article or  be
    43  registered  as  a  registered  organization pursuant to article three of
    44  this chapter.
    45    4. No applicant shall be  granted  an  adult-use  on-site  consumption
    46  license  for  any premises within five hundred feet of school grounds as
    47  such term is defined in the education law or two  hundred  feet  from  a
    48  house of worship.
    49    5.  The  board may consider any or all of the following in determining
    50  whether public convenience and advantage and the public interest will be
    51  promoted by the granting of an adult-use on-site consumption license  at
    52  a particular location:
    53    (a)  that  it  is a privilege, and not a right, to cultivate, process,
    54  distribute, and sell cannabis;

        A. 1248--A                         46
 
     1    (b) the number, classes, and character of other licenses in  proximity
     2  to the location and in the particular municipality or subdivision there-
     3  of;
     4    (c)  evidence  that  all  necessary  licenses  and  permits  have been
     5  obtained from the state and all other governing bodies;
     6    (d) whether there is a demonstrated need for spaces to consume  canna-
     7  bis;
     8    (e)  effect  of  the  grant  of the license on pedestrian or vehicular
     9  traffic, and parking, in proximity to the location;
    10    (f) the existing noise level at the location and any increase in noise
    11  level that would be generated by the proposed premises; and
    12    (g) any other factors specified by law or regulation that are relevant
    13  to determine that granting a license would  promote  public  convenience
    14  and advantage and the public interest of the community.
    15    6.  If  the  board  shall  disapprove  an  application  for an on-site
    16  consumption license, it shall state and file in its offices the  reasons
    17  therefor  and  shall  notify  the  applicant thereof. Such applicant may
    18  thereupon apply to the board for a review of such action in a manner  to
    19  be prescribed by the rules of the board.
    20    7.  No adult-use cannabis on-site consumption licensee shall keep upon
    21  the licensed premises  any  adult-use  cannabis  products  except  those
    22  purchased  from  a licensed adult-use distributor; registered  organiza-
    23  tion adult-use  cultivator    processor  distributor  retail  dispenser;
    24  registered  organization  adult-use  cultivator, processor and distribu-
    25  tor; cooperative, or microbusiness authorized to sell  adult-use  canna-
    26  bis, and only in containers approved by the board. Such containers shall
    27  have  affixed thereto such labels as may be required by the rules of the
    28  board. No adult-use on-site consumption licensee  shall  reuse,  refill,
    29  tamper with, adulterate, dilute or fortify the contents of any container
    30  of cannabis products as received from the manufacturer or distributor.
    31    8.  No  adult-use  on-site consumption licensee shall sell, deliver or
    32  give away, or cause or permit or procure to be sold, delivered or  given
    33  away  any  cannabis  for  consumption  on  the  premises where sold in a
    34  container or package containing a quantity or number  of  servings  more
    35  than authorized by the board.
    36    9.  No  adult-use on-site consumption licensee shall suffer, permit or
    37  promote activities or events on its premises wherein  any  person  shall
    38  use  such  premises for activities including, but not limited to, gambl-
    39  ing, exposing or simulating, contests, or fireworks that are  prohibited
    40  by  subdivision six, six-a, six-b, six-c or seven of section one hundred
    41  six of the alcoholic beverage control law or any  other  similar  activ-
    42  ities the board deems to be prohibited.
    43    10.  No  premises  licensed  to  sell  adult-use  cannabis for on-site
    44  consumption under this chapter shall be permitted to have any opening or
    45  means of entrance or  passageway  for  persons  or  things  between  the
    46  licensed premises and any other room or place in the building containing
    47  the  licensed  premises,  or  any adjoining or abutting premises, unless
    48  ingress and egress is restricted by an employee, agent of the  licensee,
    49  or  other  method  approved  by  the  board of controlling access to the
    50  facility.
    51    11. Each adult-use on-site consumption licensee shall keep  and  main-
    52  tain  upon  the  licensed premises, adequate records of all transactions
    53  involving the business transacted by such licensee which shall show  the
    54  amount  of  cannabis  products,  in  an  applicable  metric measurement,
    55  purchased by such licensee together with the names, license numbers  and
    56  places of business of the persons from whom the same were purchased, the

        A. 1248--A                         47
 
     1  amount  involved  in  such  purchases,  as well as the sales of cannabis
     2  products made by such  licensee.  The  board  is  hereby  authorized  to
     3  promulgate  rules and regulations permitting an on-site licensee operat-
     4  ing  two  or more premises separately licensed to sell cannabis products
     5  for on-site consumption to inaugurate or retain in this state methods or
     6  practices  of  centralized  accounting,  bookkeeping,  control  records,
     7  reporting,  billing, invoicing or payment respecting purchases, sales or
     8  deliveries of cannabis products, or methods and practices of centralized
     9  receipt or storage of cannabis products within this state without segre-
    10  gation or earmarking for any such separately licensed premises, wherever
    11  such methods and practices assure the availability, at  such  licensee's
    12  central  or main office in this state, of data reasonably needed for the
    13  enforcement of  this  chapter.  Such  records  shall  be  available  for
    14  inspection by any authorized representative of the board.
    15    12.  All  licensed  adult-use  on-site  consumption  premises shall be
    16  subject to inspection by any peace officer, acting pursuant  to  his  or
    17  her  special duties, or police officer and by the duly authorized repre-
    18  sentatives of the board, during the hours when  the  said  premises  are
    19  open for the transaction of business.
    20    13. An adult-use on-site consumption licensee shall not provide canna-
    21  bis products to any person under the age of twenty-one.  No person under
    22  the  age  of twenty-one shall be permitted on the premises of a cannabis
    23  on-site consumption facility.
    24    14. The provisions of article thirteen-E  of  the  public  health  law
    25  restricting  the smoking or vaping of cannabis shall not apply to adult-
    26  use on-site consumption premises.
    27    § 78. Record keeping and tracking. 1. The board shall, by  regulation,
    28  require  each  licensee  pursuant  to this article to adopt and maintain
    29  security, tracking, record keeping, record  retention  and  surveillance
    30  systems,   relating  to  all  cannabis  at  every  stage  of  acquiring,
    31  possession,  manufacture,  sale,  delivery,  transporting,  testing   or
    32  distributing by the licensee, subject to regulations of the board.
    33    2.  Every licensee shall keep and maintain upon the licensed premises,
    34  adequate books and records of all transactions  involving  the  licensee
    35  and  sale  of  its products, which shall include, but is not limited to,
    36  all information required by any rules promulgated by the  board.    Such
    37  regulations  may  require  the  utilization  of an approved seed-to-sale
    38  tracking system compiling a licensee's  cannabis  inventory  and  trans-
    39  action data.
    40    §  79. Inspections and ongoing requirements. All licensed or permitted
    41  premises, regardless of the type of premises, and all records  including
    42  but  not  limited to financial statements and corporate documents, shall
    43  be subject to inspection by the office, by the duly authorized represen-
    44  tatives of the board, by any peace officer acting pursuant to his or her
    45  special duties, or by a police officer.  The board shall make reasonable
    46  accommodations so that ordinary business is not interrupted  and  safety
    47  and  security procedures are not compromised by the inspection. A person
    48  who holds a license or permit must make himself or herself, or an  agent
    49  thereof, available and present for any inspection required by the board.
    50  Such  inspection may include, but is not limited to, ensuring compliance
    51  by the licensee or permittee with all of the requirements of this  arti-
    52  cle,  the regulations promulgated pursuant thereto, and other applicable
    53  state and local building codes, fire, health, safety, and other applica-
    54  ble regulations.
    55    § 80. Adult-use cultivators, processors  or  distributors  not  to  be
    56  interested  in  retail  dispensaries.    1. It shall be unlawful for any

        A. 1248--A                         48
 
     1  person authorized to cultivate, process, or distribute under this  arti-
     2  cle to:
     3    (a)  be  interested  directly  or indirectly in any premises where any
     4  cannabis product is sold at retail, including for  on-site  consumption;
     5  or  in  any business devoted wholly or partially to the sale or delivery
     6  of any cannabis product at retail, including for on-site consumption, by
     7  stock  ownership,  interlocking  directors,  mortgage  or  lien  or  any
     8  personal or real property, or by any other means;
     9    (b)  make,  or cause to be made, any loan to any person engaged in the
    10  manufacture or sale of any cannabis product at wholesale or retail;
    11    (c) make any gift or  render  any  service  of  any  kind  whatsoever,
    12  directly  or indirectly, to any person licensed under this chapter which
    13  in the judgment of the board may influence such licensee to purchase the
    14  product of such cultivator or processor or distributor; or
    15    (d) enter into any contract or  agreement  with  any  retail,  on-site
    16  consumption or delivery licensee whereby such licensee agrees to confine
    17  his  or  her  sales  to cannabis products manufactured or sold by one or
    18  more such cultivator or processors or distributors. Any such contract or
    19  agreement shall  be  void  and  subject  the  licenses  of  all  parties
    20  concerned  to  revocation  for  cause  and any applicable administrative
    21  enforcement and penalties.
    22    2. The provisions of this section  shall  not  prohibit  a  registered
    23  organization authorized pursuant to section thirty-nine or sixty-eight-a
    24  of  this chapter, or microbusiness authorized pursuant to section seven-
    25  ty-three of this  chapter,  from  cultivating,  processing,  or  selling
    26  adult-use  cannabis  under  this article, at facilities wholly owned and
    27  operated by such registered organization or  microbusiness,  subject  to
    28  any conditions, limitations or restrictions established by this chapter.
    29    3.  The  board  shall  develop rules and regulations in regard to this
    30  section.
    31    § 81. Packaging, labeling, and administration  of  adult-use  cannabis
    32  products.  1.  The  board  is  hereby authorized to promulgate rules and
    33  regulations governing the advertising, branding,  marketing,  packaging,
    34  labeling  and  unconventional methods of administration or ingestion, of
    35  cannabis products, sold or possessed for sale in New York state, includ-
    36  ing rules pertaining to the accuracy of information and rules  restrict-
    37  ing marketing and advertising to youth.
    38    2.  Such  regulations  shall include, but not be limited to, requiring
    39  that:
    40    (a) packaging  meets  requirements  similar  to  the  federal  "poison
    41  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    42    (b)  prior  to  delivery  or sale at a retailer, cannabis and cannabis
    43  products shall be labeled according  to  regulations  and  placed  in  a
    44  resealable, child-resistant package; and
    45    (c)  packages,  labels,  shapes  and  products shall not be made to be
    46  attractive to or target persons under the age of twenty-one.
    47    3. Such regulations shall include requiring labels  warning  consumers
    48  of  any  potential impact on human health resulting from the consumption
    49  of cannabis products that shall be affixed to those products when  sold,
    50  if  such  labels  are  deemed  warranted  by the board and may establish
    51  standardized and/or uniform  packaging  and  labeling  requirements  for
    52  adult-use products.
    53    4.  Such  rules and regulations shall establish methods and procedures
    54  for determining serving sizes for  cannabis  products,  active  cannabis
    55  concentration  per serving size, and number of servings per container or
    56  package, and the methods of separating or clearly  delineating  servings

        A. 1248--A                         49
 
     1  within  a  container  or  package.   Such regulations may also require a
     2  nutritional or supplement fact panel that  incorporates  data  regarding
     3  serving sizes and potency thereof.
     4    5.  Such  rules and regulations shall establish approved product types
     5  and forms and establish an application and review process  to  determine
     6  the  suitability  of  new product types and forms, taking into consider-
     7  ation the consumer and public health and safety implications of  differ-
     8  ent product varieties, manufacturing processes, product types and forms,
     9  the  means and  methods of administration associated with specific prod-
    10  uct types, and any other criteria identified by the board for  consider-
    11  ation to protect public health and safety.
    12    6.  Such  regulations  shall also require product labels to accurately
    13  display the total THC of each product.
    14    7. The packaging, sale, marketing, branding, advertising, labeling  or
    15  possession  by  any  licensee  of  any  cannabis  product not labeled or
    16  offered in conformity with rules and regulations promulgated in  accord-
    17  ance  with  this  section shall be grounds for the imposition of a fine,
    18  and/or the suspension,  revocation  or  cancellation  of  a  license  in
    19  accordance with the provisions of this chapter.
    20    §  82.  Laboratory  testing.  1. Every processor of adult-use cannabis
    21  shall contract with an  independent  laboratory  permitted  pursuant  to
    22  section  one  hundred  twenty-nine of this chapter, to test the cannabis
    23  products it produces pursuant to rules and regulations prescribed by the
    24  office.  The board may assign an approved testing laboratory, which  the
    25  processor  of  adult-use  cannabis must use, and may establish consortia
    26  with neighboring states, to inform best practices, and share  laboratory
    27  data.
    28    2.  Adult-use  cannabis  processors, microbusinesses, cooperatives and
    29  registered organizations shall make laboratory test reports available to
    30  licensed distributors,  retail  dispensaries,  and  on-site  consumption
    31  sites  for all cannabis products manufactured by the processor or licen-
    32  see.
    33    3. Licensed retail dispensaries shall maintain accurate  documentation
    34  of laboratory test reports for each cannabis product offered for sale to
    35  cannabis  consumers. Such documentation shall be made publicly available
    36  by the licensed retail dispensary.
    37    4. Onsite laboratory testing by licensees is  permissible  subject  to
    38  regulation;  however,  such  testing shall not be certified by the board
    39  and does not exempt the licensee from the requirements of quality assur-
    40  ance testing at a testing laboratory pursuant to this section.
    41    5. An owner of a cannabis laboratory testing permit shall not  hold  a
    42  license,  or  interest  in  a license, in any other category within this
    43  article and shall not own or have ownership  interest  in  a  registered
    44  organization  registered  pursuant to article three of this chapter or a
    45  cannabinoid hemp processor license pursuant  to  article  five  of  this
    46  chapter.
    47    6.  The  board  shall have the authority to require any licensee under
    48  this article to submit cannabis or cannabis  products  to  one  or  more
    49  independent  laboratories for testing and the board may promulgate regu-
    50  lations related to all aspects of third-party testing and quality assur-
    51  ance including but not limited to:
    52    (a) minimum testing and sampling requirements;
    53    (b) testing and sampling methodologies;
    54    (c) testing reporting requirements;
    55    (d) retesting; and
    56    (e) product quarantine, hold, recall, and remediation.

        A. 1248--A                         50
 
     1    § 83. Provisions governing the cultivation and processing of adult-use
     2  cannabis.  1. Cultivation and processing of cannabis shall  comply  with
     3  regulations  promulgated by the board governing minimum requirements for
     4  adult-use cultivators, nurseries, processors,  microbusinesses,  cooper-
     5  atives,  registered  organizations, and registered organization cultiva-
     6  tors.
     7    2. No cultivator or processor of adult-use  cannabis  shall  sell,  or
     8  agree to sell or deliver in the state any cannabis products, as the case
     9  may  be, except in originally sealed containers containing quantities in
    10  accordance with size standards pursuant to rules adopted by  the  board.
    11  Such containers shall have affixed thereto such labels or other means of
    12  tracking  and  identification  as  may  be  required by the rules of the
    13  board.
    14    3. No cultivator or processor of adult-use cannabis shall  furnish  or
    15  cause  to  be  furnished to any licensee, any exterior or interior sign,
    16  printed, painted, electric or otherwise, except  as  authorized  by  the
    17  board.  The board may make such rules as it deems necessary to carry out
    18  the purpose and intent of this subdivision.
    19    4. Cultivators of adult-use cannabis consistent with protecting public
    20  health and safety, shall  comply  with  plant  cultivation  regulations,
    21  standards,  and  guidelines consistent with the provisions applicable to
    22  hemp, cannabinoid hemp, and hemp extract and issued  by  the  board,  in
    23  consultation  with  the department of environmental conservation and the
    24  department of agriculture and markets.  Such regulations, standards, and
    25  guidelines shall be guided by sustainable farming principles  and  prac-
    26  tices  such  as  organic,  regenerative,  and integrated pest management
    27  models to the extent possible, and shall restrict whenever possible, the
    28  use of pesticides to those that are  registered  by  the  department  of
    29  environmental  conservation  or that specifically meet the United States
    30  environmental protection  agency  registration  exemption  criteria  for
    31  minimum  risk, used in compliance with rules, regulations, standards and
    32  guidelines issued by the department of  environmental  conservation  for
    33  pesticides.
    34    5.  No  cultivator  or processor of adult-use cannabis shall transport
    35  any cannabis products, except in vehicles owned  and  operated  by  such
    36  cultivator  or  processor,  or hired by such cultivator or processor and
    37  operated by a trucking or transportation  company  registered  with  the
    38  office,  and  shall only make deliveries at the licensed premises of the
    39  purchaser.
    40    6. No cultivator or processor  of  adult-use  cannabis,  including  an
    41  adult-use  cannabis  cooperative, microbusiness, or registered organiza-
    42  tion may offer any incentive, payment or other  benefit  to  a  licensed
    43  cannabis  distributor  or  retail dispensary in  return for carrying the
    44  cultivator, processor, cooperative, microbusiness or  registered  organ-
    45  ization products, or preferential shelf placement.
    46    7.  All  cannabis  products shall be processed in accordance with good
    47  manufacturing practices for the product  category,  pursuant  to  either
    48  Part  111 or Part 117 of Title 21 of the Code of Federal Regulations, as
    49  may be modified by the board in regulation.
    50    8. 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    9. The use or integration of alcoholic beverages or nicotine in canna-
    54  bis products is strictly prohibited.
    55    10.  The  board  shall  promulgate  regulations  governing the minimum
    56  requirements for the secure transport of adult-use cannabis.

        A. 1248--A                         51
 
     1    § 84. Provisions governing the distribution of adult-use cannabis.  1.
     2  No distributor shall sell, or agree to  sell  or  deliver  any  cannabis
     3  products, as the case may be, in any container, except in a sealed pack-
     4  age.  Such  containers  shall have affixed thereto such labels as may be
     5  required by the rules of the board.
     6    2. No distributor shall deliver any cannabis products, except in vehi-
     7  cles  owned  and  operated by such distributor, or hired and operated by
     8  such distributor from a trucking or  transportation  company  registered
     9  with  the board, and shall only make deliveries at the licensed premises
    10  of the purchaser.
    11    3.  Each distributor shall keep and maintain upon the  licensed  prem-
    12  ises, adequate books and records of all transactions involving the busi-
    13  ness  transacted  by  such  distributor,  which shall show the amount of
    14  cannabis products purchased  by  such  distributor  and  the  total  THC
    15  content  of  purchased  cannabis  products  as  reflected on the product
    16  labels together with the names, license numbers and places  of  business
    17  of  the persons from whom the same was purchased and the amount involved
    18  in such purchases, as well as the amount of cannabis  products  sold  by
    19  such distributor together and the total THC content of cannabis products
    20  sold  as  reflected  on  the  final  product  labels,  with  the  names,
    21  addresses, and license numbers of such purchasers and any other informa-
    22  tion required in regulation.  Each sale shall be recorded separately  on
    23  a  numbered  invoice,  which  shall have printed thereon the number, the
    24  name of the licensee, the address of  the  licensed  premises,  and  the
    25  current  license number. Such distributor shall deliver to the purchaser
    26  a true duplicate invoice stating the name and address of the  purchaser,
    27  the  quantity  of  cannabis  products, the total THC content of cannabis
    28  products sold as reflected on the product labels, description by  brands
    29  and  the  price  of  such  cannabis  products,  and a true, accurate and
    30  complete statement of the terms and conditions on  which  such  sale  is
    31  made.  Such  books,  records  and invoices shall be kept for a period of
    32  five years and shall be  available  for  inspection  by  any  authorized
    33  representative of the board.
    34    4. No distributor shall furnish or cause to be furnished to any licen-
    35  see, any exterior or interior sign, printed, painted, electric or other-
    36  wise, unless authorized by the board.
    37    5.  No  distributor  shall  provide  any  discount, rebate or customer
    38  loyalty program to any licensed retailer, except as otherwise authorized
    39  by the board.
    40    6. The board is authorized to promulgate  regulations  establishing  a
    41  maximum  margin  for  which a distributor may mark up a cannabis product
    42  for sale to a retail dispensary. Any adult-use cannabis product sold  by
    43  a  distributor  for  more than the maximum markup allowed in regulation,
    44  shall be unlawful.
    45    7. Each distributor shall keep and maintain upon  the  licensed  prem-
    46  ises, adequate books and records to demonstrate the distributor's actual
    47  cost of doing business, using accounting standards and methods regularly
    48  employed in the determination of costs for the purpose of federal income
    49  tax  reporting,  for  the  total  operation of the licensee. Such books,
    50  records and invoices shall be kept for a period of five years and  shall
    51  be  available  for  inspection  by  any authorized representative of the
    52  office for use in determining the maximum markup allowed  in  regulation
    53  pursuant to subdivision six of this section.
    54    § 85. Provisions governing adult-use cannabis retail dispensaries.  1.
    55  No  cannabis  retail licensee shall sell, deliver, or give away or cause
    56  or permit or procure to be sold, delivered or given away any cannabis to

        A. 1248--A                         52
 
     1  any person, actually or apparently, under the age  of  twenty-one  years
     2  or, any visibly intoxicated person.
     3    2.  Valid  proof of age is required for each transaction. No licensee,
     4  or agent or employee of such licensee shall accept as  written  evidence
     5  of  age  by any such person for the purchase of any cannabis or cannabis
     6  product, any documentation other than: (a) a valid driver's  license  or
     7  non-driver identification card issued by the commissioner of motor vehi-
     8  cles,  the federal government, any United States territory, commonwealth
     9  or possession, the District of Columbia, a state government  within  the
    10  United  States  or a provincial government of the dominion of Canada, or
    11  (b) a valid passport issued by the United States government or any other
    12  country, or (c) an identification card issued by the armed forces of the
    13  United States. Upon the presentation of such driver's  license  or  non-
    14  driver  identification card issued by a governmental entity, such licen-
    15  see or agent or employee thereof may perform a  transaction  scan  as  a
    16  precondition to the sale of any cannabis or cannabis product. Nothing in
    17  this  section  shall  prohibit  a  licensee  or  agent  or employee from
    18  performing such a transaction scan on any of the other documents  listed
    19  in  this  subdivision  if  such documents include a bar code or magnetic
    20  strip that may be scanned by a device capable of deciphering  any  elec-
    21  tronically  readable  format.  In  instances where the information deci-
    22  phered by the transaction scan fails to match the information printed on
    23  the driver's license or non-driver identification card presented by  the
    24  card  holder,  or if the transaction scan indicates that the information
    25  is false or fraudulent, the attempted purchase of the cannabis or canna-
    26  bis product shall be denied.
    27    3. No cannabis retail licensee shall  sell  alcoholic  beverages,  nor
    28  have  or possess a license or permit to sell alcoholic beverages, on the
    29  same premises where cannabis products are sold.
    30    4. No sign of any kind printed, painted or electric,  advertising  any
    31  brand  shall  be permitted on the exterior or interior of such premises,
    32  except by permission of the board.
    33    5. No cannabis retail licensee shall  sell  or  deliver  any  cannabis
    34  products  to  any  person with knowledge of, or with reasonable cause to
    35  believe, that the person to whom such cannabis products are being  sold,
    36  has  acquired the same for the purpose of selling or giving them away in
    37  violation of the provisions of this chapter or in violation of the rules
    38  and regulations of the board.
    39    6. All premises licensed  under  this  section  shall  be  subject  to
    40  inspection by any peace officer described in subdivision four of section
    41  2.10 of the criminal procedure law acting pursuant to his or her special
    42  duties,  or  police officer or any duly authorized representative of the
    43  board.  All licensees shall be subject to reasonable inspection  by  the
    44  office and a person who holds a license must make himself or herself, or
    45  an  agent  thereof, available and present for any inspection required by
    46  the office. The office shall  make  reasonable  accommodations  so  that
    47  ordinary business is not interrupted, and safety and security procedures
    48  are not compromised by the inspection.
    49    7.  No cannabis retail licensee shall be interested, directly or indi-
    50  rectly, in any cultivator, processor, distributor or microbusiness oper-
    51  ator licensed pursuant to this article, by stock ownership, interlocking
    52  directors, mortgage or lien on any personal or real property or  by  any
    53  other  means.  Any  lien, mortgage or other interest or estate, however,
    54  now held by such retailer on or in the personal or real property of such
    55  manufacturer or distributor, which mortgage, lien,  interest  or  estate
    56  was  acquired on or before December thirty-first, two thousand nineteen,

        A. 1248--A                         53
 
     1  shall not  be  included  within  the  provisions  of  this  subdivision;
     2  provided, however, the burden of establishing the time of the accrual of
     3  the  interest comprehended by this subdivision, shall be upon the person
     4  who claims to be entitled to the protection and exemption afforded here-
     5  by.
     6    8. No cannabis retail licensee shall make or cause to be made any loan
     7  to  any person engaged in the cultivation, processing or distribution of
     8  cannabis pursuant to this article.
     9    9. Each cannabis retail licensee shall designate  the  price  of  each
    10  item  of  cannabis  by  attaching to or otherwise displaying immediately
    11  adjacent to each such item displayed in the  interior  of  the  licensed
    12  premises where sales are made a price tag, sign or placard setting forth
    13  the price at which each such item is offered for sale therein.
    14    10.  No  person  licensed  to  sell cannabis products at retail, shall
    15  allow or permit any gambling, or offer  any  gambling  on  the  licensed
    16  premises, or allow or permit illicit drug activity on the licensed prem-
    17  ises.
    18    11.   All adult-use dispensing facilities shall make educational mate-
    19  rials and resources available to cannabis  consumers  at  the  point  of
    20  sale, as prescribed by the board.
    21    12.  The  board  is  authorized,  to  promulgate regulations governing
    22  licensed adult-use dispensing facilities, including but not limited  to,
    23  the  hours  of  operation,  size  and location of the licensed facility,
    24  types and concentration of product servings offered and  establishing  a
    25  minimum  and  maximum  margin  for retail dispensary markups of cannabis
    26  product or products before selling to a cannabis consumer. It  shall  be
    27  unlawful  for any retail dispensary to sell any adult-use cannabis prod-
    28  uct for less than the minimum markup allowed in regulation.
    29    § 86. Adult-use cannabis advertising and  marketing.    1.  The  board
    30  shall promulgate rules and regulations governing the form and content of
    31  advertising and marketing of licensed cannabis and any cannabis products
    32  or services.
    33    2.  The board shall promulgate regulations for advertising and market-
    34  ing content including but not  limited  to  explicit  rules  prohibiting
    35  advertising that:
    36    (a) is false, deceptive, or misleading;
    37    (b) promotes overconsumption;
    38    (c) depicts consumption;
    39    (d) is designed in any way to appeal to children or other minors;
    40    (e)  is  within or is readily observed within five hundred feet of the
    41  perimeter of a school grounds, playground,  child  day  care  providers,
    42  public park, or library;
    43    (f) is in public transit vehicles and stations;
    44    (g) is in the form of an unsolicited internet pop-up;
    45    (h) is on publicly owned or operated property;
    46    (i)  makes medical claims or promotes adult-use cannabis for a medical
    47  or wellness purpose;
    48    (j) promotes or implements discounts, coupons, or other means of sell-
    49  ing adult-use cannabis products below market  value  or  whose  discount
    50  would subvert local and state tax collections;
    51    (k) is in the form of a billboard; or
    52    (l)  fails to satisfy any other advertising or marketing rule or regu-
    53  lations promulgated by the board related to  marketing  or  advertising,
    54  not inconsistent with this chapter.
    55    3. The board shall promulgate explicit rules prohibiting all marketing
    56  strategies  and  implementation including, but not limited to, branding,

        A. 1248--A                         54
 
     1  packaging, labeling, location of cannabis retailers, and  advertisements
     2  that are designed to:
     3    (a)  appeal  to persons less then twenty-one years of age and/or popu-
     4  lations at-risk of increased adverse health consequences  as  determined
     5  by the board in regulation; or
     6    (b) disseminate false or misleading information to customers.
     7    4. The board shall promulgate regulations requiring that:
     8    (a)  all  advertisements and marketing accurately and legibly identify
     9  the party or other business responsible for its content; and
    10    (b) any broadcast, cable,  radio,  print  and  digital  communications
    11  advertisements  only be placed where the audience is reasonably expected
    12  to be twenty-one years of age  or  older,  as  determined  by  reliable,
    13  up-to-date  audience  composition  data.    The  burden  of proving this
    14  requirement lies with the party that has paid  for  or  facilitated  the
    15  advertisement.
    16    5.  The board may establish procedures to review and enforce advertis-
    17  ing and marketing requirements.
    18    § 87. Social and economic equity, minority and women-owned businesses,
    19  distressed farmers and service-disabled veterans; incubator program.  1.
    20  The board, in consultation with the chief equity officer  and  executive
    21  director,  and after receiving public input shall create and implement a
    22  social and economic equity plan and  actively  promote  applicants  from
    23  communities  disproportionately  impacted  by  cannabis prohibition, and
    24  promote racial, ethnic, and gender diversity when issuing  licenses  for
    25  adult-use  cannabis  related  activities,  including mentoring potential
    26  applicants, by prioritizing consideration of applications by  applicants
    27  who  are from communities disproportionately impacted by the enforcement
    28  of cannabis prohibition or who qualify  as  a  minority  or  women-owned
    29  business, distressed farmers, or service-disabled veterans.  Such quali-
    30  fications  shall  be  determined by the board, with recommendations from
    31  the state cannabis advisory board, the chief equity officer  and  execu-
    32  tive director, by regulation.
    33    2.  The  board's  social  and  economic equity plan shall also promote
    34  diversity in commerce, ownership and employment, and  opportunities  for
    35  social  and  economic  equity in the adult-use cannabis industry. A goal
    36  shall be established  to  award  fifty  percent  of  adult-use  cannabis
    37  licenses  to  social and economic equity applicants and ensure inclusion
    38  of:
    39    (a) individuals from communities disproportionately  impacted  by  the
    40  enforcement of cannabis prohibition;
    41    (b) minority-owned businesses;
    42    (c) women-owned businesses;
    43    (d)  minority  and women-owned businesses, as defined in paragraph (d)
    44  of subdivision five of this section;
    45    (e) distressed  farmers,  as  defined  in  subdivision  five  of  this
    46  section; and
    47    (f) service-disabled veterans.
    48    3. The social and economic equity plan shall require the consideration
    49  of additional criteria in its licensing determinations. Under the social
    50  and  economic equity plan, extra priority shall be given to applications
    51  that demonstrate that an applicant:
    52    (a) is a member of a  community  disproportionately  impacted  by  the
    53  enforcement of cannabis prohibition;
    54    (b)  has  an  income lower than eighty percent of the median income of
    55  the county in which the applicant resides; and

        A. 1248--A                         55
 
     1    (c) was convicted of a marihuana-related offense prior to  the  effec-
     2  tive  date of this chapter, or had a parent, guardian, child, spouse, or
     3  dependent, or was a dependent of an individual who, prior to the  effec-
     4  tive date of this chapter, was convicted of a marihuana-related offense.
     5    4.  The board in consultation with the cannabis advisory board and the
     6  chief equity officer, shall also create an incubator program to  encour-
     7  age  social  and  economic equity applicants to apply and, if granted an
     8  adult-use cannabis license, permit or registration,  the  program  shall
     9  provide  direct  support  in the form of counseling services, education,
    10  small business coaching and financial planning, and  compliance  assist-
    11  ance.
    12    5.  For  the purposes of this section, the following definitions shall
    13  apply:
    14    (a)  "Minority-owned  business"  shall  mean  a  business  enterprise,
    15  including  a sole proprietorship, partnership, limited liability company
    16  or corporation that is:
    17    (i) at least fifty-one percent owned by one  or  more  minority  group
    18  members;
    19    (ii)  an enterprise in which such minority ownership is real, substan-
    20  tial and continuing;
    21    (iii) an enterprise in which such minority ownership has and exercises
    22  the authority to control independently the day-to-day business decisions
    23  of the enterprise;
    24    (iv) an enterprise authorized to do business in this state  and  inde-
    25  pendently owned and operated; and
    26    (v) an enterprise that is a small business.
    27    (b)  "Minority  group  member"  shall  mean a United States citizen or
    28  permanent resident alien who is and can demonstrate membership in one of
    29  the following groups:
    30    (i) black persons having origins in any of the  black  African  racial
    31  groups;
    32    (ii)  Hispanic  persons  of  Mexican,  Puerto Rican, Dominican, Cuban,
    33  Central or South American of either Indian or Hispanic  origin,  regard-
    34  less of race;
    35    (iii)  Native American or Alaskan native persons having origins in any
    36  of the original peoples of North America; or
    37    (iv) Asian and Pacific Islander persons having origins in any  of  the
    38  far  east  countries,  south  east  Asia, the Indian subcontinent or the
    39  Pacific islands.
    40    (c) "Women-owned business" shall mean a business enterprise, including
    41  a sole proprietorship, partnership, limited liability company or  corpo-
    42  ration that is:
    43    (i)  at  least  fifty-one  percent  owned by one or more United States
    44  citizens or permanent resident aliens who are women;
    45    (ii) an enterprise in which the ownership interest of  such  women  is
    46  real, substantial and continuing;
    47    (iii)  an  enterprise  in which such women ownership has and exercises
    48  the authority to control independently the day-to-day business decisions
    49  of the enterprise;
    50    (iv) an enterprise authorized to do business in this state  and  inde-
    51  pendently owned and operated; and
    52    (v) an enterprise that is a small business.
    53    (d) A firm owned by a minority group member who is also a woman may be
    54  defined as a minority-owned business, a women-owned business, or both.
    55    (e)  "Distressed  farmer" shall mean: (i) a New York state resident or
    56  business  enterprise,  including  a  sole  proprietorship,  partnership,

        A. 1248--A                         56
 
     1  limited  liability  company  or  corporation,  that meets the small farm
     2  classification developed by the Economic Research Service of the  United
     3  States  Department  of  Agriculture,  has  filed  a schedule F with farm
     4  receipts  for the last three years, qualifies for an agriculture assess-
     5  ment and meets other qualifications defined in regulation by  the  board
     6  to  demonstrate that they operate a farm operation as defined in section
     7  three hundred one of the  agriculture  and  markets  law  and  has  been
     8  disproportionately  impacted,  including  but  not  limited to incurring
     9  operating losses, by low commodity prices and faces the loss of farmland
    10  through development or suburban sprawl and meets  any  other  qualifica-
    11  tions  as defined in regulation by board; or (ii) a New York state resi-
    12  dent or business enterprise, including a sole  proprietorship,  partner-
    13  ship,  limited  liability  company  or corporation, that is a small farm
    14  operator and a member of a group that has been historically  underrepre-
    15  sented  in  farm ownership and meets any other qualifications as defined
    16  in regulation by board.
    17    (f) "Service-disabled veterans" shall  mean  persons  qualified  under
    18  article seventeen-B of the executive law.
    19    (g)  "Communities  disproportionately impacted" shall mean, but not be
    20  limited to, a history of arrests, convictions, and other law enforcement
    21  practices in a certain geographic area, such as,  but  not  limited  to,
    22  precincts,   zip   codes,  neighborhoods,  and  political  subdivisions,
    23  reflecting a disparate enforcement  of  cannabis  prohibition  during  a
    24  certain  time period, when compared to the rest of the state.  The board
    25  shall, with recommendations from the state cannabis advisory board,  the
    26  chief  equity officer and executive director, issue guidelines to deter-
    27  mine how  to  assess  which  communities  have  been  disproportionately
    28  impacted and how to assess if someone is a member of a community dispro-
    29  portionately impacted.
    30    6.  The  board  shall  actively promote applicants that foster racial,
    31  ethnic, and gender diversity in their workforce.
    32    7. Licenses issued under the social and economic equity plan shall not
    33  be transferred or sold within the first three years of issue, except  to
    34  a  qualified  social  and  economic  equity applicant and with the prior
    35  written approval of the board. In the event a social and economic equity
    36  applicant seeks to transfer or sell their license  at  any  point  after
    37  issue  and the transferee is to a person or entity that does not qualify
    38  as a social and economic equity applicant, the transfer agreement  shall
    39  require  the  new  license  holder  to  pay to the board any outstanding
    40  amount owed by the transferor to the board  as  repayment  of  any  loan
    41  issued by the board as well as any other fee or assessment as determined
    42  by the board.
    43    §  88.  Data  collection and reporting.  The board shall collect demo-
    44  graphic data on owners and employees in the adult-use cannabis  industry
    45  and shall annually publish such data in its annual report.
    46    § 89. Regulations.  The board shall promulgate regulations with recom-
    47  mendations  from  the  state  cannabis  advisory board to implement this
    48  article.
 
    49                                  ARTICLE 5
    50                      CANNABINOID HEMP AND HEMP EXTRACT
 
    51  Section 90.  Definitions.
    52          91.  Rulemaking authority.
    53          92.  Cannabinoid hemp processor license.
    54          93.  Cannabinoid hemp retailer license.

        A. 1248--A                         57
 
     1          94.  Cannabinoid license applications.
     2          95.  Information to be requested in applications for licenses.
     3          96.  Fees.
     4          97.  Selection criteria.
     5          98.  License renewal.
     6          99.  Form of license.
     7          100. Transferability;  amendment to license; change in ownership
     8                 or control.
     9          101. Granting, suspending or revoking licenses.
    10          102. Record keeping and tracking.
    11          103. Packaging  and  labeling  of  cannabinoid  hemp  and   hemp
    12                 extract.
    13          104. Processing of cannabinoid hemp and hemp extract.
    14          105. Laboratory testing.
    15          106. New York hemp product.
    16          107. Penalties.
    17          108. Hemp workgroup.
    18          109. Prohibitions.
    19          110. Special use permits.
    20          111. Severability.
    21    § 90. Definitions.  As used in this article, the following terms shall
    22  have the following meanings, unless the context clearly requires  other-
    23  wise:
    24    1.  "Cannabinoid"  means  the phytocannabinoids found in hemp and does
    25  not include synthetic cannabinoids as that term is defined  in  subdivi-
    26  sion (g) of schedule I of section thirty-three hundred six of the public
    27  health law.
    28    2.  "Cannabinoid  hemp"  means  any  hemp and any product processed or
    29  derived from hemp, that is used for human consumption provided that when
    30  such product is packaged or offered for retail sale to  a  consumer,  it
    31  shall  not have a concentration of more than three tenths of one percent
    32  delta-9 tetrahydrocannabinol.
    33    3. "Used for human consumption" means intended by the manufacturer  or
    34  distributor  to  be:  (a) used for human consumption for its cannabinoid
    35  content; or (b) used in, on or by the human  body  for  its  cannabinoid
    36  content.
    37    4.  "Hemp"  means  the  plant  Cannabis sativa L. and any part of such
    38  plant, including the seeds thereof and all derivatives, extracts, canna-
    39  binoids, isomers, acids, salts, and salts of isomers, whether growing or
    40  not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more
    41  than three-tenths of a percent on a  dry  weight  basis.  It  shall  not
    42  include "medical cannabis" as defined in section three of this chapter.
    43    5. "Hemp extract" means all derivatives, extracts, cannabinoids, isom-
    44  ers,  acids,  salts,  and  salts  of  isomers derived from hemp, used or
    45  intended for human consumption, for  its  cannabinoid  content,  with  a
    46  delta-9  tetrahydrocannabinol  concentration  of not more than an amount
    47  determined by the board in regulation. For the purpose of this  article,
    48  hemp  extract  excludes  (a)  any food, food ingredient or food additive
    49  that is generally recognized as safe pursuant to federal law; or (b) any
    50  hemp extract that is not  used  for  human  consumption.  Such  excluded
    51  substances  shall  not  be  regulated pursuant to the provisions of this
    52  article but are subject to other provisions  of  applicable  state  law,
    53  rules and regulations.
    54    6. "License" means a license issued pursuant to this article.
    55    7. "Cannabinoid hemp processor license" means a license granted by the
    56  board  to process, extract, pack or manufacture cannabinoid hemp or hemp

        A. 1248--A                         58

     1  extract into products, whether in intermediate or final form,  used  for
     2  human consumption.
     3    8.  "Processing"  means  extracting,  preparing,  treating, modifying,
     4  compounding, manufacturing or otherwise manipulating cannabinoid hemp to
     5  concentrate or extract its cannabinoids, or creating product, whether in
     6  intermediate or final form, used for human consumption. For purposes  of
     7  this  article,  processing  does  not include: (a) growing, cultivation,
     8  cloning, harvesting, drying, curing, grinding or trimming  when  author-
     9  ized pursuant to article twenty-nine of the agriculture and markets law;
    10  or
    11    (b)  mere  transportation, such as by common carrier or another entity
    12  or individual.
    13    9. "Cannabinoid hemp flower" means the flower of  the  plant  Cannabis
    14  sativa  L.  that  has  been  harvested, dried, and cured, with a delta-9
    15  tetrahydrocannabinol concentration of not more than three-tenths of  one
    16  percent, on a dry weight basis, prior to any processing.
    17    10.  "Cannabinoid  hemp  flower product" means cannabinoid hemp flower
    18  that has been minimally processed consistent with  the  requirements  of
    19  this article, intended for retail sale to consumers.
    20    § 91. Rulemaking authority. The board may make regulations pursuant to
    21  this article for the processing, distribution, marketing, transportation
    22  and  sale  of cannabinoid hemp and hemp extracts used for human consump-
    23  tion, which may include, but not be limited to:
    24    1. Specifying forms,  establishing  application,  reasonable  adminis-
    25  tration and renewal fees, or license duration;
    26    2.  Establishing  the  qualifications  and  criteria for licensing, as
    27  authorized by law;
    28    3. The books and records to be created and maintained by licensees and
    29  lawful procedures for their inspection;
    30    4. Any reporting requirements;
    31    5. Methods  and  standards  of  processing,  labeling,  packaging  and
    32  marketing  of cannabinoid hemp, hemp extract and products derived there-
    33  from;
    34    6. Procedures for how cannabinoid hemp, hemp extract  or  ingredients,
    35  additives, or products derived therefrom can be deemed as acceptable for
    36  sale in the state;
    37    7. Provisions governing the modes and forms of administration, includ-
    38  ing inhalation;
    39    8.  Procedures  for determining whether cannabinoid hemp, hemp extract
    40  or  ingredients,  additives,  or  products  derived  therefrom  produced
    41  outside  the  state  or within the state meet the standards and require-
    42  ments of this article and can therefore be sold within the state;
    43    9. Procedures for the granting, cancellation, revocation or suspension
    44  of licenses, consistent with the state administrative procedures act;
    45    10. Restrictions governing the advertising and marketing  of  cannabi-
    46  noid hemp, hemp extract and products derived therefrom;
    47    11. Any other regulations necessary to implement this article;
    48    12. Nothing in this article shall prevent the sale of cannabinoid hemp
    49  flower;  provided however, that any cannabinoid hemp flower product sold
    50  shall be limited to a person over twenty-one years of age and  shall  be
    51  subject  to  regulations promulgated by the board; provided further that
    52  such regulations shall not unduly restrict the availability of  cannabi-
    53  noid hemp flower; and
    54    13.  Any cannabinoid hemp flower product clearly labeled or advertised
    55  for the purposes of smoking, or in the form of a  cigarette,  cigar,  or
    56  pre-roll,  or  packaged or combined with other items designed to facili-

        A. 1248--A                         59
 
     1  tate smoking such as rolling papers or pipes, shall only be offered  for
     2  sale  in  adult-use  cannabis  retail  dispensaries licensed pursuant to
     3  article four of this chapter.
     4    § 92. Cannabinoid hemp processor license. 1. Persons processing canna-
     5  binoid  hemp  or  hemp  extract  used  for human consumption, whether in
     6  intermediate or final form, shall be required to  obtain  a  cannabinoid
     7  hemp processor license from the board.
     8    2. A cannabinoid hemp processor license authorizes one or more specif-
     9  ic  activities  related  to  the  processing  of  cannabinoid  hemp into
    10  products used for human consumption, whether in  intermediate  or  final
    11  form,  and  the  distribution  or sale thereof by the licensee.  Nothing
    12  herein shall prevent  a  cannabinoid  hemp  processor  from  processing,
    13  extracting  and  processing  hemp  products  not  to  be  used for human
    14  consumption.
    15    3. Persons authorized to grow hemp pursuant to article twenty-nine  of
    16  the agriculture and markets law are not authorized to engage in process-
    17  ing  of cannabinoid hemp or hemp extract without first being licensed as
    18  a cannabinoid hemp processor under this article.
    19    4. This article shall  not  apply  to  hemp,  cannabinoid  hemp,  hemp
    20  extracts  or  products  derived  therefrom  that  are not used for human
    21  consumption. This article also shall  not  apply  to  hemp,  cannabinoid
    22  hemp,  hemp extracts or products derived therefrom that have been deemed
    23  generally recognized as safe pursuant to federal law.
    24    5. The board shall have the authority to set reasonable fees for  such
    25  license, to limit the activities permitted by such license, to establish
    26  the  period  during which such license is authorized, which shall be two
    27  years or more, and to make rules and regulations necessary to  implement
    28  this section.
    29    6.  Any  person  holding an active research partnership agreement with
    30  the department of agriculture and markets, authorizing  that  person  to
    31  process cannabinoid hemp, shall be awarded licensure under this section,
    32  provided  that  the  research  partner  is  actively performing research
    33  pursuant to such agreement and is able to  demonstrate  compliance  with
    34  this  article,  as determined by the board, after notice and an opportu-
    35  nity to be heard.
    36    § 93. Cannabinoid hemp retailer license. 1. Retailers selling cannabi-
    37  noid hemp, in final  form  to  consumers  within  the  state,  shall  be
    38  required to obtain a cannabinoid hemp retailer license from the board.
    39    2.  The board shall have the authority to set reasonable fees for such
    40  license, to establish the period during which such  license  is  author-
    41  ized, which shall be one year or more, and to make rules and regulations
    42  necessary to implement this section.
    43    § 94. Cannabinoid  license  applications. 1. Persons shall apply for a
    44  license under this article by submitting  an  application  upon  a  form
    45  supplied by the board, providing all the relevant requested information,
    46  verified  by the applicant or an authorized representative of the appli-
    47  cant.
    48    2. A separate license shall be required for  each  facility  at  which
    49  processing  or  retail  sales  are  conducted; however, an applicant may
    50  submit one application for separate licensure at multiple locations.
    51    3. Each applicant shall remit with its application the  fee  for  each
    52  requested license, which shall be a reasonable fee.
    53    § 95. Information to be requested in applications for licenses. 1. The
    54  board  may  specify the manner and form in which an application shall be
    55  submitted to the board for licensure under this article.

        A. 1248--A                         60
 
     1    2. The board may adopt regulations establishing what relevant informa-
     2  tion shall be included on an application for licensure under this  arti-
     3  cle.  Such  information  may include, but is not limited to: information
     4  about the applicant's identity; ownership  and  investment  information,
     5  including  the  corporate  structure;  evidence of good moral character;
     6  financial statements; information about the  premises  to  be  licensed;
     7  information  about the activities to be licensed; and any other relevant
     8  information specified in regulation.
     9    3. All license applications shall be signed by  the  applicant  if  an
    10  individual,  by a managing partner if a limited liability company, by an
    11  officer if a corporation, or by all  partners  if  a  partnership.  Each
    12  person signing such application shall verify it as true under the penal-
    13  ties of perjury.
    14    4.  All license applications shall be accompanied by a check, draft or
    15  other forms of payment as the board may  require  or  authorize  in  the
    16  reasonable amount required by this article for such license.
    17    5.  If there be any change, after the filing of the application or the
    18  granting, modification or renewal of a license, in any of  the  material
    19  facts  required  to  be  set  forth  in such application, a supplemental
    20  statement giving notice of such change, duly verified,  shall  be  filed
    21  with  the  board within ten days after such change. Failure to do so, if
    22  willful and deliberate, may be grounds for revocation of the license.
    23    § 96. Fees. The board may charge licensees a reasonable  license  fee.
    24  Such  fee  may  be based on the activities permitted by the license, the
    25  amount of cannabinoid hemp or hemp extract to be processed or  extracted
    26  by  the  licensee,  the  gross  annual  receipts of the licensee for the
    27  previous license period, or any other factors reasonably  deemed  appro-
    28  priate by the board.
    29    § 97. Selection  criteria. 1. The applicant, if an individual or indi-
    30  viduals, shall furnish evidence of the individual's good  moral  charac-
    31  ter,  and if an entity, the applicant shall furnish evidence of the good
    32  moral character of the individuals who have  or  will  have  substantial
    33  responsibility  for  the  licensed  or  authorized activity and those in
    34  control of the entity, including principals, officers,  or  others  with
    35  such control.
    36    2.  The applicant shall furnish evidence of the applicant's experience
    37  and competency, and that the applicant has or will have adequate facili-
    38  ties, equipment, process  controls,  and  security  to  undertake  those
    39  activities for which licensure is sought.
    40    3.  The applicant shall furnish evidence of his, her or its ability to
    41  comply with all applicable state and local laws, rules and regulations.
    42    4. If the board is not satisfied that the applicant should be issued a
    43  license, the board shall notify the applicant in writing of the specific
    44  reason or reasons for denial.
    45    5. No license pursuant to this article may be issued to an  individual
    46  under the age of eighteen years.
    47    § 98. License  renewal. 1. Each license, issued pursuant to this arti-
    48  cle, may be renewed upon application therefor by the  licensee  and  the
    49  payment  of  the  reasonable  fee  for such license as specified by this
    50  article.
    51    2. In the case of applications for renewals, the  board  may  dispense
    52  with the requirements of such statements as it deems unnecessary in view
    53  of those contained in the application made for the original license.
    54    3.  The  board shall provide an application for renewal of any license
    55  issued under this article not less than ninety days prior to the expira-
    56  tion of the current license.

        A. 1248--A                         61
 
     1    4. The board may only issue a renewal  license  upon  receipt  of  the
     2  specified  renewal  application  and  renewal fee from a licensee if, in
     3  addition to  the  selection  criteria  set  out  in  this  article,  the
     4  licensee's license is not under suspension and has not been revoked.
     5    § 99. Form  of license. Licenses issued pursuant to this article shall
     6  specify:
     7    1. The name and address of the licensee;
     8    2. The activities permitted by the license;
     9    3. The land, buildings  and  facilities  that  may  be  used  for  the
    10  licensed activities of the licensee;
    11    4. A unique license number issued by the board to the licensee; and
    12    5.  Such other information as the board shall deem necessary to assure
    13  compliance with this article.
    14    § 100. Transferability; amendment to license; change in  ownership  or
    15  control.  1.  Licenses  issued  under this article are not transferable,
    16  absent written consent of the board.
    17    2. Upon application of a licensee, a license may be amended to add  or
    18  delete permitted activities.
    19    3.  A  license shall become void by a change in ownership, substantial
    20  corporate change or change of location without prior written approval of
    21  the board. The board may make regulations allowing for certain types  of
    22  changes in ownership without the need for prior written approval.
    23    § 101. Granting, suspending or revoking licenses. After due notice and
    24  an  opportunity  to  be heard, established by rules and regulations, the
    25  board may decline to grant a new license, impose  conditions  or  limits
    26  with  respect  to  the grant of a license, modify an existing license or
    27  decline to renew a license, and may suspend or revoke a license  already
    28  granted  after due notice and an opportunity to be heard, as established
    29  by rules and regulations, whenever the board finds that:
    30    1. A material statement contained in an application is or was false or
    31  misleading;
    32    2. The applicant or licensee, or a person in a position of  management
    33  and  control  thereof  or  of  the licensed activity, does not have good
    34  moral character, necessary experience or  competency,  adequate  facili-
    35  ties,  equipment,  process controls, or security to process, distribute,
    36  transport or sell cannabinoid hemp, hemp  extract  or  products  derived
    37  therefrom;
    38    3. After appropriate notice and opportunity, the applicant or licensee
    39  has  failed or refused to produce any records or provide any information
    40  required by this article or the regulations promulgated pursuant  there-
    41  to;
    42    4.  The  licensee has conducted activities outside of those activities
    43  permitted on its license; or
    44    5. The applicant or licensee, or any officer,  director,  partner,  or
    45  any other person exercising any position of management or control there-
    46  of  or  of the licensed activity has willfully failed to comply with any
    47  of the provisions of this article or regulations under it and other laws
    48  of this state applicable to the licensed activity.
    49    § 102. Record keeping and tracking. Every licensee shall keep, in such
    50  form as the board may direct, such relevant records as may  be  required
    51  pursuant to regulations under this article.
    52    § 103. Packaging and labeling of cannabinoid hemp and hemp extract. 1.
    53  Cannabinoid  hemp  processors  shall  be required to provide appropriate
    54  label warning to consumers, and restricted from making unapproved  label
    55  claims,  as  determined by the board, concerning the potential impact on
    56  or benefit to human health resulting from the use of  cannabinoid  hemp,

        A. 1248--A                         62

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

        A. 1248--A                         63
 
     1  any way, to perform any testing on hemp, cannabinoid hemp, hemp  extract
     2  or product derived therefrom.
     3    § 106. New  York hemp product. The board may establish and adopt offi-
     4  cial grades  and  standards  for  cannabinoid  hemp,  hemp  extract  and
     5  products  derived  therefrom, as the board may deem advisable, which are
     6  produced for sale in this state and, from time to  time,  may  amend  or
     7  modify such grades and standards.
     8    § 107. Penalties.  Notwithstanding  the  provision  of  any law to the
     9  contrary, the failure to comply with a requirement of this article, or a
    10  regulation thereunder, may be punishable by a civil penalty of not  more
    11  than  one  thousand  dollars  for  a first violation; not more than five
    12  thousand dollars for a second violation within three years; and not more
    13  than ten thousand dollars for a  third  violation  and  each  subsequent
    14  violation thereafter, within three years.
    15    § 108. Hemp workgroup. The board, in consultation with the commission-
    16  er  of the department of agriculture and markets, may appoint a New York
    17  state hemp and hemp extract workgroup, composed of growers, researchers,
    18  producers, processors, manufacturers and  trade  associations,  to  make
    19  recommendations  for  the industrial hemp and cannabinoid hemp programs,
    20  state and federal policies and policy initiatives, and opportunities for
    21  the promotion and marketing of cannabinoid  hemp  and  hemp  extract  as
    22  consistent with federal and state laws, rules and regulations.
    23    § 109. Prohibitions. 1. Except as authorized by the United States food
    24  and  drug  administration,  the  processing  of cannabinoid hemp or hemp
    25  extract used for human consumption is prohibited within the state unless
    26  the processor is licensed under this article.
    27    2. Cannabinoid hemp and hemp extracts used for human  consumption  and
    28  grown or processed outside the state shall not be distributed or sold at
    29  retail  within the state, unless they meet all standards established for
    30  cannabinoid hemp under state law and regulations.
    31    3. The retail sale of cannabinoid hemp is  prohibited  in  this  state
    32  unless the retailer is licensed under this article.
    33    § 110. Special  use  permits.  The  board  shall have the authority to
    34  issue temporary permits for carrying on any activity related to cannabi-
    35  noid hemp, hemp extract and products derived therefrom,  licensed  under
    36  this  article.  The  board  may set reasonable fees for such permits, to
    37  establish the periods during which such permits are valid, and  to  make
    38  rules and regulations to implement this section.
    39    § 111. Severability.  If any provision of this article or the applica-
    40  tion thereof to any person or circumstances is held invalid, such  inva-
    41  lidity shall not affect other provisions or applications of this article
    42  which  can be given effect without the invalid provision or application,
    43  and to this end the provisions of this article are declared to be sever-
    44  able.
 
    45                                  ARTICLE 6
    46                             GENERAL PROVISIONS

    47  Section 125.   General prohibitions and restrictions.
    48          126.   License to be confined to premises licensed; premises for
    49                   which no license shall be granted; transporting  canna-
    50                   bis.
    51          127.   Protections  for  the use of cannabis; unlawful discrimi-
    52                   nations prohibited.
    53          128.   Permits, registrations and licenses.
    54          129.   Laboratory testing permits.

        A. 1248--A                         64
 
     1          130.   Special use permits.
     2          131.   Local opt-out; municipal control and preemption.
     3          131-a. Office to be necessary party to certain proceedings.
     4          132.   Penalties for violation of this chapter.
     5          133.   Revocation  of  registrations,  licenses  and permits for
     6                   cause; procedure for revocation or cancellation.
     7          134.   Lawful actions pursuant to this chapter.
     8          135.   Review by courts.
     9          136.   Illicit cannabis.
    10          137.   Persons forbidden to traffic cannabis; certain  officials
    11                   not to be interested in manufacture or sale of cannabis
    12                   products.
    13          138.   Access  to criminal history information through the divi-
    14                   sion of criminal justice services.
    15          138-a. Injunction for unlawful manufacturing, sale, or  distrib-
    16                   ution of cannabis.
    17          139. Severability.
    18    §  125.  General  prohibitions  and  restrictions.  1. No person shall
    19  cultivate, process, distribute for sale or sell at wholesale  or  retail
    20  or deliver to consumers any cannabis, cannabis product, medical cannabis
    21  or  cannabinoid  hemp  or  hemp extract product within the state without
    22  obtaining the appropriate  registration,  license,  or  permit  therefor
    23  required by this chapter unless otherwise authorized by law.
    24    2.  No registered organization, licensee, or permittee or other entity
    25  under the jurisdiction of the board shall sell,  or  agree  to  sell  or
    26  deliver  in  this state any cannabis or cannabinoid hemp or hemp extract
    27  for the purposes of resale to any person who  is  not  duly  registered,
    28  licensed  or permitted pursuant to this chapter to sell such product, at
    29  wholesale or retail, as the case may be, at the time of  such  agreement
    30  and sale.
    31    3.  No registered organization, licensee, or permittee or other entity
    32  under the jurisdiction of the  board  shall  employ,  or  permit  to  be
    33  employed, or shall allow to work, on any premises registered or licensed
    34  for retail sale hereunder, any person under the age of eighteen years in
    35  any  capacity  where  the  duties  of such person require or permit such
    36  person to sell, dispense or handle  cannabis.    Any  employee  eighteen
    37  years  of  age  or  older and under twenty-one years of age may not have
    38  direct interaction with customers inside a licensed retail store.
    39    4. No registered organization, licensee, or permittee, or other entity
    40  under the jurisdiction of the board, shall sell, deliver or  give  away,
    41  or  cause,  permit  or  procure  to be sold, delivered or given away any
    42  cannabis, cannabis product, or medical cannabis on credit; except that a
    43  registered organization, licensee or permittee may  accept  third  party
    44  credit  cards for the sale of any cannabis, cannabis product, or medical
    45  cannabis for which it is registered, licensed or permitted  to  dispense
    46  or  sell  to  patients  or cannabis consumers. This includes, but is not
    47  limited to, any consignment sale of any kind.
    48    5. No registered organization, licensee, or permittee, or other entity
    49  under the jurisdiction of the board, shall cease to  be  operated  as  a
    50  bona  fide or legitimate premises within the contemplation of the regis-
    51  tration, license, or permit issued  for  such  premises,  as  determined
    52  within the judgment of the board.
    53    6. No registered organization, licensee, or permittee, or other entity
    54  under  the jurisdiction of the board, shall refuse, nor any person hold-
    55  ing a registration, license, or permit refuse, nor any officer or direc-
    56  tor of any corporation or organization holding a registration,  license,

        A. 1248--A                         65
 
     1  or  permit  refuse, to appear and/or testify under oath at an inquiry or
     2  hearing held by the board, with respect to any matter bearing  upon  the
     3  registration,  license,  or  permit,  the  conduct  of any people at the
     4  licensed  premises,  or  bearing  upon  the character or fitness of such
     5  registrant, licensee, or permittee, or other entity under the  jurisdic-
     6  tion  of  the  board,  to continue to hold any registration, license, or
     7  permit. Nor shall any of the above offer false testimony under  oath  at
     8  such inquiry or hearing.
     9    7. No registered organization, licensee, or permittee, or other entity
    10  under  the  jurisdiction  of the board, shall engage, participate in, or
    11  aid or abet any violation of any provision of this chapter, or the rules
    12  or regulations of the board.
    13    8. It shall be the  responsibility  of  the  registered  organization,
    14  licensee  or  permittee,  or  other entity under the jurisdiction of the
    15  board, to exercise adequate supervision over the registered, licensed or
    16  permitted location.  Persons registered, licensed, or permitted shall be
    17  held strictly accountable for any and all violations that occur upon any
    18  registered, licensed,  or  permitted  premises,  and  for  any  and  all
    19  violations  committed  by or permitted by any manager, agent or employee
    20  of such registered, licensed, or permitted person.
    21    9. As it is a privilege under the law to be registered,  licensed,  or
    22  permitted to cultivate, process, distribute, or sell cannabis, the board
    23  may  impose any such further restrictions upon any registrant, licensee,
    24  or permittee in particular instances as it deems  necessary  to  further
    25  state  policy and best serve the public interest. A violation or failure
    26  of any person registered, licensed, or  permitted  to  comply  with  any
    27  condition,  stipulation,  or  agreement,  upon  which  any registration,
    28  license, or permit was issued or renewed by the board may, in accordance
    29  with this chapter subject the  registrant,  licensee,  or  permittee  to
    30  suspension,  cancellation, revocation, and/or civil penalties in accord-
    31  ance with this chapter, as determined by the board.
    32    10. No adult-use cannabis or medical cannabis may be imported  to,  or
    33  exported  out  of, New York state by a registered organization, licensee
    34  or person holding a license and/or  permit  pursuant  to  this  chapter,
    35  until  such  time  as  it  may  become legal to do so under federal law.
    36  Should it become legal to do so under federal law, the board may promul-
    37  gate such rules and regulations as it deems  necessary  to  protect  the
    38  public  and the policy of the state, including but not limited to prior-
    39  itize and promote New York cannabis.   Further,  all  such  cannabis  or
    40  cannabis  products  must  be distributed in a manner consistent with the
    41  provisions of this chapter.
    42    11. No registered organization, licensee or any of its  agents,  serv-
    43  ants  or  employees shall sell any cannabis product, or medical cannabis
    44  from house to house by means of a truck or otherwise, where the sale  is
    45  consummated  and delivery made concurrently at the residence or place of
    46  business of a cannabis consumer. This subdivision shall not prohibit the
    47  delivery by a registered organization to  certified  patients  or  their
    48  designated caregivers, pursuant to article three of this chapter.
    49    12.  No  licensee  shall  employ  any  canvasser  or solicitor for the
    50  purpose of receiving an order from a certified patient, designated care-
    51  giver or cannabis consumer for any cannabis product, or medical cannabis
    52  at the residence or place of business  of  such  patient,  caregiver  or
    53  consumer,  nor  shall  any licensee receive or accept any order, for the
    54  sale of any cannabis product, or medical cannabis which shall be  solic-
    55  ited  at  the  residence or place of business of a patient, caregiver or
    56  consumer. This subdivision shall not  prohibit  the  solicitation  by  a

        A. 1248--A                         66
 
     1  distributor  of  an  order from any licensee at the licensed premises of
     2  such licensee.
     3    § 126. License to be confined to premises licensed; premises for which
     4  no  license shall be granted; transporting cannabis.  1. A registration,
     5  license, or permit issued to any person, pursuant to this  chapter,  for
     6  any  registered, licensed, or permitted premises shall not be transfera-
     7  ble to any other person, to any other location or premises,  or  to  any
     8  other  building or part of the building containing the licensed premises
     9  except in the discretion of the office. All privileges  granted  by  any
    10  registration,  license,  or permit shall be available only to the person
    11  therein specified, and only for  the  premises  licensed  and  no  other
    12  except  if  authorized  by  the  board.    Provided,  however,  that the
    13  provisions of this section shall not be deemed to prohibit the amendment
    14  of a registration  or  license  as  provided  for  in  this  chapter.  A
    15  violation  of  this  section shall subject the registration, license, or
    16  permit to revocation for cause.
    17    2. Where a registration or license for premises has been revoked,  the
    18  board  in its discretion may refuse to issue a registration, license, or
    19  permit under this chapter, for a period of up to five years  after  such
    20  revocation, for such premises or for any part of the building containing
    21  such premises and connected therewith.
    22    3.  In determining whether to issue such a proscription against grant-
    23  ing any registration, license, or permit for such five-year  period,  in
    24  addition  to  any  other factors deemed relevant to the board, the board
    25  shall, in the case of a license revoked due to the sale of cannabis to a
    26  person under the age of twenty-one  not  otherwise  authorized  by  this
    27  chapter, determine whether the proposed subsequent licensee has obtained
    28  such  premises  through an arm's length transaction, and, if such trans-
    29  action is not found to be an arm's length transaction, the office  shall
    30  deny the issuance of such license.
    31    4. For purposes of this section, "arm's length transaction" shall mean
    32  a  sale  of  a  fee  of all undivided interests in real property, lease,
    33  management agreement, or other agreement giving  the  applicant  control
    34  over  the  cannabis  at  the  premises, or any part thereof, in the open
    35  market, between an informed and willing buyer and seller  where  neither
    36  is under any compulsion to participate in the transaction, unaffected by
    37  any unusual conditions indicating a reasonable possibility that the sale
    38  was  made  for  the purpose of permitting the original licensee to avoid
    39  the effect of the revocation. The following sales shall be presumed  not
    40  to  be  arm's  length  transactions  unless  adequate  documentation  is
    41  provided demonstrating that the sale, lease,  management  agreement,  or
    42  other  agreement  giving  the applicant control over the cannabis at the
    43  premises, was not conducted, in whole or in part,  for  the  purpose  of
    44  permitting the original licensee to avoid the effect of the revocation:
    45    (a) a sale between relatives;
    46    (b) a sale between related companies or partners in a business; or
    47    (c) a sale, lease, management agreement, or other agreement giving the
    48  applicant  control  over the cannabis at the premises, affected by other
    49  facts or circumstances that would indicate that the sale, lease, manage-
    50  ment agreement, or other agreement giving the applicant control over the
    51  cannabis at the premises, is entered into for  the  primary  purpose  of
    52  permitting the original licensee to avoid the effect of the revocation.
    53    5.  No  registered organization, licensee or permittee shall transport
    54  cannabis products or medical cannabis except in vehicles owned and oper-
    55  ated by such registered organization, licensee or  permittee,  or  hired
    56  and operated by such registered organization, licensee or permittee from

        A. 1248--A                         67
 
     1  a  trucking  or transportation company permitted and registered with the
     2  board.
     3    6.  No common carrier or person operating a transportation facility in
     4  this state, other than the United  States  government,  shall  knowingly
     5  receive  for  transportation  or  delivery within the state any cannabis
     6  products or medical cannabis unless the shipment  is  accompanied  by  a
     7  copy  of  a  bill  of  lading,  or  other document, showing the name and
     8  address of the consignor, the name and address  of  the  consignee,  the
     9  date  of the shipment, and the quantity and kind of cannabis products or
    10  medical cannabis contained therein.
    11    § 127. Protections for the use of cannabis;  unlawful  discriminations
    12  prohibited.   1. No person, registered organization, licensee or permit-
    13  tee, employees, or their agents shall be subject to arrest, prosecution,
    14  or penalty in any manner, or denied any right  or  privilege,  including
    15  but  not limited to civil liability or disciplinary action by a business
    16  or occupational or professional licensing board or  office,  solely  for
    17  conduct  permitted  under  this chapter. For the avoidance of doubt, the
    18  appellate division of the supreme court of the state of  New  York,  and
    19  any  disciplinary or character and fitness committees established by law
    20  are occupational and professional licensing boards within the meaning of
    21  this section. State or local law enforcement agencies shall not  cooper-
    22  ate with or provide assistance to the government of the United States or
    23  any  agency  thereof  in enforcing the federal controlled substances act
    24  solely for actions consistent with this chapter, except as pursuant to a
    25  valid court order.
    26    2. No landlord may refuse to lease to and may not  otherwise  penalize
    27  an individual solely for conduct authorized under this chapter, except:
    28    (a) if failing to do so would cause the landlord to lose a monetary or
    29  licensing related benefit under federal law or regulations; or
    30    (b) if a property has in place a smoke-free policy, it is not required
    31  to  permit the smoking of cannabis products on its premises, provided no
    32  such restriction may be construed to limit the certified medical use  of
    33  cannabis.
    34    2-a. No school, college or university may refuse to enroll and may not
    35  otherwise  penalize a person solely for conduct allowed under this chap-
    36  ter, except:
    37    (a) if failing to do so would cause the school, college or  university
    38  to  lose  a  monetary  or licensing related benefit under federal law or
    39  regulations; or
    40    (b) if the school, college or university has adopted a code of conduct
    41  prohibiting cannabis use on the basis of a sincere religious  belief  of
    42  the school, college or university.
    43    3.  For  the  purposes of medical care, including organ transplants, a
    44  certified patient's authorized use of medical cannabis must  be  consid-
    45  ered  the equivalent of the use of any other medication under the direc-
    46  tion of a practitioner and does not constitute the  use  of  an  illicit
    47  substance  or  otherwise disqualify a registered qualifying patient from
    48  medical care.
    49    4. An employer shall adhere to  policies  regarding  cannabis  use  in
    50  accordance with section two hundred one-d of the labor law.
    51    5.  No person may be denied custody of or visitation or parenting time
    52  with a minor under the family  court  act,  domestic  relations  law  or
    53  social  services  law,  solely  for conduct permitted under this chapter
    54  including, but not limited to, section 222.05 or  222.15  of  the  penal
    55  law,  unless  it  is  in  the best interest of the child and the child's
    56  physical, mental or emotional condition has  been  impaired,  or  is  in

        A. 1248--A                         68
 
     1  imminent  danger of becoming impaired as a result of the person's behav-
     2  ior as established by a fair preponderance  of  the  evidence.  For  the
     3  purposes  of  this section, this determination cannot be based solely on
     4  whether,  when,  and  how  often a person uses cannabis without separate
     5  evidence of harm.
     6    6. A person currently under parole, probation or  other  state  super-
     7  vision,  or  released  on recognizance, non-monetary conditions, or bail
     8  prior to being convicted, shall not be punished or  otherwise  penalized
     9  for  conduct  allowed under this chapter unless the terms and conditions
    10  of said parole, probation, or state supervision  explicitly  prohibit  a
    11  person's  cannabis use or any other conduct otherwise allowed under this
    12  chapter. A person's use of cannabis or conduct under this chapter  shall
    13  not  be  prohibited  unless  it  has  been shown by clear and convincing
    14  evidence that the prohibition is reasonably related  to  the  underlying
    15  crime.  Nothing  in this provision shall restrict the rights of a certi-
    16  fied medical patient.
    17    § 128. Permits, registrations and licenses.  1. No  permit,  registra-
    18  tion or license shall be transferable or assignable except that notwith-
    19  standing any other provision of law, the permit, registration or license
    20  of a sole proprietor converting to corporate form, where such proprietor
    21  becomes  the  sole stockholder and only officer and director of such new
    22  corporation, may be  transferred  to  the  subject  corporation  if  all
    23  requirements  of  this  chapter  remain  the  same  with respect to such
    24  permit, registration or license as transferred and, further, the  regis-
    25  tered  organization  or licensee shall transmit to the board, within ten
    26  days of the transfer of license allowable under this subdivision,  on  a
    27  form  prescribed  by  the  board,  notification  of the transfer of such
    28  license.
    29    2. No permit, registration or license shall be pledged or deposited as
    30  collateral security for any loan or upon any other  condition;  and  any
    31  such  pledge  or  deposit, and any contract providing therefor, shall be
    32  void.
    33    3. Permits, registrations and licenses issued under this chapter shall
    34  contain, in addition to  any  further  information  or  material  to  be
    35  prescribed  by  the  rules  and  regulations of the board, the following
    36  information:
    37    (a) name of the person to whom the license is issued;
    38    (b) type of license and what type  of  cannabis  commerce  is  thereby
    39  permitted;
    40    (c)  description by street and number, or otherwise, of licensed prem-
    41  ises; and
    42    (d) a statement in substance that such license shall not be  deemed  a
    43  property  or vested right, and that it may be revoked at any time pursu-
    44  ant to law.
    45    § 129. Laboratory testing permits. 1.  The  board  shall  approve  and
    46  permit  one  or  more  independent cannabis testing laboratories to test
    47  medical cannabis, adult-use cannabis and/or  cannabinoid  hemp  or  hemp
    48  extract.
    49    2. To be permitted as an independent cannabis laboratory, a laboratory
    50  must  apply  to  the office, on a form and in a manner prescribed by the
    51  office, which may include a reasonable fee,  and  must  demonstrate  the
    52  following to the satisfaction of the board:
    53    (a) the owners and directors of the laboratory are of good moral char-
    54  acter;
    55    (b)  the laboratory and its staff has the skills, resources and exper-
    56  tise needed to accurately and consistently perform all  of  the  testing

        A. 1248--A                         69
 
     1  required  for  adult-use  cannabis,  medical cannabis and/or cannabinoid
     2  hemp or hemp extract;
     3    (c)  the  laboratory has in place and will maintain adequate policies,
     4  procedures, and facility security to ensure proper:  collection,  label-
     5  ing, accessioning, preparation, analysis, result reporting, disposal and
     6  storage of adult-use cannabis, and/or medical cannabis;
     7    (d)  for the testing of cannabis, the laboratory is physically located
     8  in New York state; and
     9    (e) the laboratory meets any and all requirements prescribed  by  this
    10  chapter and by the board in regulation.
    11    3.  The  owner of a laboratory testing permit under this section shall
    12  not hold a permit, registration or license in any category of this chap-
    13  ter and shall not have any direct or indirect ownership interest in such
    14  registered organization or licensee. No board member, officer,  manager,
    15  owner,  partner,  principal stakeholder or member of a registered organ-
    16  ization or licensee under this chapter, or such person's immediate fami-
    17  ly member, shall have an interest or voting  rights  in  any  laboratory
    18  testing permittee.
    19    4.  The board shall require that the permitted laboratory report test-
    20  ing results to the board in a manner, form and timeframe  as  determined
    21  by the office.
    22    5.  The  board  is  authorized to promulgate regulations, establishing
    23  minimum operating and  testing  requirements,  and  requiring  permitted
    24  laboratories to perform certain tests and services.
    25    6. A laboratory granted a laboratory testing permit under this chapter
    26  shall  not required to be licensed by the federal drug enforcement agen-
    27  cy.
    28    7. The board is authorized to enter into  contracts  or  memoranda  of
    29  understanding  with any other state for the purposes of aligning labora-
    30  tory testing requirements or establishing best practices in  testing  of
    31  cannabis.
    32    §  130.  Special  use permits.   The board shall have the authority to
    33  issue temporary permits for carrying on activities consistent  with  the
    34  policy  and purpose of this chapter with respect to cannabis. No special
    35  use permit shall extend for a period longer than ninety days  and  shall
    36  not be renewable, except where a permit is being issued to a licensee as
    37  defined  in  article four of this chapter. A special use permit shall be
    38  issued pursuant to an abbreviated application process. The  special  use
    39  permit  holder  shall have ninety days in which to become fully licensed
    40  by satisfying all of the remaining conditions for licensure  which  were
    41  not required for the issuance of the special use permit.
    42    The  board may set reasonable fees for such permits and make rules and
    43  regulations to implement this section.
    44    1. Industrial cannabis permit - to purchase cannabis from one  of  the
    45  entities  licensed  by  the board for use in the manufacture and sale of
    46  any of the following, when such cannabis is not otherwise  suitable  for
    47  consumption  purposes,  namely:   (a) apparel, energy, paper, and tools;
    48  (b) scientific, chemical, mechanical and industrial products; or (c) any
    49  other industrial use as determined by the board in regulation.
    50    2. Trucking permit - to allow for the trucking  or  transportation  of
    51  cannabis  products,  or medical cannabis by a person other than a regis-
    52  tered organization or licensee under this chapter.
    53    3. Warehouse permit - to allow for the storage of  cannabis,  cannabis
    54  products,  or medical cannabis at a location not otherwise registered or
    55  licensed by the office.

        A. 1248--A                         70
 
     1    4. Packaging permit - to authorize a licensed cannabis distributor  to
     2  sort,  package,  label  and  bundle  cannabis  products from one or more
     3  registered organizations or licensed processors, on the premises of  the
     4  licensed  cannabis  distributor or at a warehouse for which a permit has
     5  been issued under this section.
     6    §  131. Local opt-out; municipal control and preemption. 1. The licen-
     7  sure and establishment of a retail  dispensary  license  and/or  on-site
     8  consumption license under the provisions of article four of this chapter
     9  authorizing  the retail sale of adult-use cannabis to cannabis consumers
    10  shall not be applicable to a town, city  or  village  which,  after  the
    11  effective  date of this chapter, and, on or before the later of December
    12  thirty-first, two thousand twenty-one or nine months after the effective
    13  date of this section, adopts a local law, subject to permissive referen-
    14  dum governed by section twenty-four of  the  municipal  home  rule  law,
    15  requesting  the  cannabis control board to prohibit the establishment of
    16  such retail dispensary  licenses  and/or  on-site  consumption  licenses
    17  contained  in  article  four of this chapter, within the jurisdiction of
    18  the town, city or village. Provided, however, that any  town  law  shall
    19  apply  to  the area of the town outside of any village within such town.
    20  No local law may be adopted after the later  of  December  thirty-first,
    21  two  thousand twenty-one or nine months after the effective date of this
    22  section prohibiting the  establishment  of  retail  dispensary  licenses
    23  and/or on-site consumption licenses; provided, however, that a local law
    24  repealing such prohibition may be adopted after such date.
    25    2.  Except  as  provided  for  in subdivision one of this section, all
    26  county, town, city and village governing  bodies  are  hereby  preempted
    27  from  adopting  any  law,  rule,  ordinance,  regulation  or prohibition
    28  pertaining to the operation or licensure  of  registered  organizations,
    29  adult-use  cannabis  licenses  or  cannabinoid  hemp  licenses. However,
    30  towns, cities and villages may pass local laws and regulations governing
    31  the time, place and manner of the operation of licensed adult-use canna-
    32  bis retail dispensaries and/or on-site consumption site,  provided  such
    33  law  or  regulation  does not make the operation of such licensed retail
    34  dispensaries or on-site consumption sites unreasonably impracticable  as
    35  determined by the board.
    36    §  131-a.  Office  to  be  necessary party to certain proceedings. The
    37  office shall be made a party to all actions and proceedings affecting in
    38  any manner the possession, ownership  or  transfer  of  a  registration,
    39  license  or  permit  to  operate  within  a municipality and to all such
    40  injunction proceedings.
    41    § 132. Penalties for violation of this  chapter.  1.  Any  person  who
    42  cultivates  for  sale  or  sells cannabis, cannabis products, or medical
    43  cannabis without having an appropriate registration, license  or  permit
    44  therefor,  or  whose  registration, license, or permit has been revoked,
    45  surrendered or cancelled, may be subject to  prosecution  in  accordance
    46  with article two hundred twenty-two of the penal law.
    47    2. Any registered organization or licensee, who has received notifica-
    48  tion  of a registration or license suspension pursuant to the provisions
    49  of this chapter, who sells cannabis, cannabis products, medical cannabis
    50  or cannabinoid hemp or hemp extract during the suspension period,  shall
    51  be  subject to prosecution as provided in article two hundred twenty-two
    52  of the penal law, and upon conviction thereof under this section may  be
    53  subject to a civil penalty of not more than five thousand dollars.
    54    3.  Any person who shall knowingly make any materially false statement
    55  in the application for a registration, license or a  permit  under  this
    56  chapter  may  be  subject to license or registration suspension, revoca-

        A. 1248--A                         71
 
     1  tion, or denial subject to the board, and may  be  subject  to  a  civil
     2  penalty of not more than two thousand dollars.
     3    4. Any person under the age of twenty-one found to be in possession of
     4  cannabis or cannabis products who is not a certified patient pursuant to
     5  article  three of this chapter shall be in violation of this chapter and
     6  shall be subject to the following penalty:
     7    (a) (i) The person shall be subject to a civil  penalty  of  not  more
     8  than  fifty dollars. The civil penalty shall be payable to the office of
     9  cannabis management.
    10    (ii) Any identifying information provided by  the  enforcement  agency
    11  for  the  purpose of facilitating payment of the civil penalty shall not
    12  be shared or disclosed under any circumstances with any other agency  or
    13  law enforcement division.
    14    (b)  The  person shall, upon payment of the required civil penalty, be
    15  provided with information related to the  dangers  of  underage  use  of
    16  cannabis and information related to cannabis use disorder by the office.
    17    (c) The issuance and subsequent payment of such civil penalty shall in
    18  no way qualify as a criminal accusation, admission of guilt, or a crimi-
    19  nal  conviction and shall in no way operate as a disqualification of any
    20  such person from holding public office, attaining public employment,  or
    21  as a forfeiture of any right or privilege.
    22    5.  Cannabis  recovered  from  individuals  who  are  found  to  be in
    23  violation of this chapter may after notice and opportunity for a hearing
    24  be considered a nuisance and shall be disposed of or destroyed.
    25    6. After due notice and opportunity to be  heard,  as  established  by
    26  rules  and regulations, nothing in this section shall prohibit the board
    27  from suspending, revoking, or denying a license,  permit,  registration,
    28  or application in addition to the penalties prescribed in this section.
    29    §  133.  Revocation  of registrations, licenses and permits for cause;
    30  procedure for revocation or cancellation.  1. Any registration,  license
    31  or  permit  issued  pursuant  to this chapter may be revoked, cancelled,
    32  suspended and/or subjected to the imposition  of  a  civil  penalty  for
    33  cause.
    34    2.    There  shall  be  a rebuttable presumption of revocation for the
    35  following causes:
    36    (a) conviction of the registered organization, licensee, permittee  or
    37  his  or  her  agent  or employee for selling any illicit cannabis on the
    38  premises registered, licensed or permitted; or
    39    (b) for  transferring,  assigning  or  hypothecating  a  registration,
    40  license or permit without prior written approval of the office.
    41    3.  Notwithstanding  the issuance of a registration, license or permit
    42  by way of renewal, the board may revoke, cancel or suspend  such  regis-
    43  tration, license or permit and/or may impose a civil penalty against any
    44  holder  of  such  registration, license or permit, as prescribed by this
    45  section, for causes or violations occurring during  the  license  period
    46  immediately  preceding  the  issuance  of  such registration, license or
    47  permit.
    48    4. (a) As used in this  section,  the  term  "for  cause"  shall  also
    49  include  the  existence of a sustained and continuing pattern of miscon-
    50  duct, failure to adequately prevent diversion or disorder  on  or  about
    51  the  registered, licensed or permitted premises, or in the area in front
    52  of or adjacent to the registered or licensed premises, or in any parking
    53  lot provided by the registered  organization  or  licensee  for  use  by
    54  registered  organization  or  licensee's  patrons,  which  significantly
    55  adversely  affects  or  tends  to  significantly  adversely  affect  the

        A. 1248--A                         72
 
     1  protection, health, welfare, safety, or repose of the inhabitants of the
     2  area in which the registered or licensed premises is located.
     3    (b)  (i)  As  used  in  this  section, the term "for cause" shall also
     4  include deliberately misleading the board or office of cannabis  manage-
     5  ment:
     6    (A)  as  to the nature and character of the business to be operated by
     7  the registered organization, licensee or permittee; or
     8    (B) by substantially altering the nature or character of such business
     9  during the registration or licensing period without seeking  appropriate
    10  approvals from the board.
    11    (ii) As used in this subdivision, the term "substantially altering the
    12  nature  or  character"  of  such business shall mean any significant and
    13  material alteration in the scope of business activities conducted  by  a
    14  registered  organization,  licensee  or  permittee  that  would  require
    15  obtaining an alternate form of registration, license or permit.
    16    5. As used in this chapter, the existence of a sustained and  continu-
    17  ing  pattern  of  misconduct or disorder on or about the premises may be
    18  presumed upon the sixth incident reported to the board by a law enforce-
    19  ment agency, or discovered by the board during the course of any  inves-
    20  tigation,  of misconduct or disorder on or about the premises or related
    21  to the operation of the premises, absent clear and  convincing  evidence
    22  of  either fraudulent intent on the part of any complainant or a factual
    23  error with  respect  to  the  content  of  any  report  concerning  such
    24  complaint relied upon by the board.
    25    6. Any registration, license or permit issued by the board pursuant to
    26  this  chapter may be revoked, cancelled or suspended and/or be subjected
    27  to the imposition of a monetary penalty set forth in this chapter in the
    28  manner prescribed by this section.
    29    7. The board may on its own initiative, or on complaint of any person,
    30  institute proceedings to revoke, cancel or suspend any adult-use  canna-
    31  bis  retail dispensary license or adult-use cannabis on-site consumption
    32  license and may impose a civil penalty  against  the  licensee  after  a
    33  hearing at which the licensee shall be given an opportunity to be heard.
    34  Such hearing shall be held in such manner and upon such notice as may be
    35  prescribed in regulation by the board.
    36    8.  All  other  registrations,  licenses  or permits issued under this
    37  chapter may be revoked, cancelled, suspended and/or made subject to  the
    38  imposition  of  a civil penalty by the office after a hearing to be held
    39  in such manner and upon such notice as may be prescribed  in  regulation
    40  by the board.
    41    9.  Where a licensee or permittee is convicted of two or more qualify-
    42  ing offenses within a five-year period,  the  office,  upon  receipt  of
    43  notification of such second or subsequent conviction, shall, in addition
    44  to  any  other sanction or civil or criminal penalty imposed pursuant to
    45  this chapter, impose on such licensee a civil penalty not to exceed  ten
    46  thousand dollars. For purposes of this subdivision, a qualifying offense
    47  shall  mean the sale of cannabis to a person under the age of twenty-one
    48  not otherwise authorized by this chapter. For purposes of this  subdivi-
    49  sion  only,  a  conviction of a licensee or an employee or agent of such
    50  licensee shall constitute a conviction of such licensee.
    51    10. The board may adopt rules and regulations based on  federal  guid-
    52  ance,  provided  those rules and regulations are designed to comply with
    53  federal guidance and mitigate federal enforcement against the  registra-
    54  tions,  licenses,  or permits issued under this chapter, or the cannabis
    55  industry as a whole. This may include regulations which permit the shar-
    56  ing of licensee, registrant, or permit holder  information  with  desig-

        A. 1248--A                         73
 
     1  nated  banking or financial institutions, provided these regulations are
     2  designed to aid cannabis industry participants' access  to  banking  and
     3  financial services.
     4    §  134.  Lawful actions pursuant to this chapter. 1. Contracts related
     5  to the operation of registered organizations, licenses and permits under
     6  this chapter shall be lawful and shall not be  deemed  unenforceable  on
     7  the  basis  that  the  actions  permitted  pursuant to the registration,
     8  license or permit are prohibited by federal law.
     9    2. The following actions are not unlawful as provided under this chap-
    10  ter, shall not be an offense under any state or local law, and shall not
    11  result in any civil penalty, fine, seizure, or forfeiture of assets,  or
    12  be  the  basis  for  detention  or  search  against any person acting in
    13  accordance with this chapter:
    14    (a) Actions of a registered organization, licensee, or  permittee,  or
    15  the  employees  or  agents  of such registered organization, licensee or
    16  permittee, as permitted by this chapter and consistent  with  rules  and
    17  regulations  of the office, pursuant to a valid registration, license or
    18  permit issued by the board.
    19    (b) Actions of those who allow property to be  used  by  a  registered
    20  organization, licensee, or permittee, or the employees or agents of such
    21  registered  organization,  licensee  or  permittee, as permitted by this
    22  chapter and consistent with rules and regulations of the office,  pursu-
    23  ant to a valid registration, license or permit issued by the board.
    24    (c)  Actions of any person or entity, their employees, or their agents
    25  providing a service to a registered organization, licensee, permittee or
    26  a potential registered organization, licensee, or permittee, as  permit-
    27  ted  by  this  chapter  and consistent with rules and regulations of the
    28  office, relating to the formation of a business.
    29    (d) The purchase, cultivation, possession, or consumption of  cannabis
    30  and medical cannabis, as permitted by law, and consistent with rules and
    31  regulations of the board.
    32    §  135.  Review  by courts. An action by the board shall be subject to
    33  review by the supreme court in the manner provided in  article  seventy-
    34  eight of the civil practice law and rules including, but not limited to:
    35    (a)  Refusal  by  the  board  to  issue  a registration, license, or a
    36  permit.
    37    (b) The revocation, cancellation  or  suspension  of  a  registration,
    38  license, or permit by the board.
    39    (c)  The failure or refusal by the board to render a decision upon any
    40  application or hearing submitted to or held by the  board  within  sixty
    41  days after such submission or hearing.
    42    (d) The transfer by the board of a registration, license, or permit to
    43  any  other entity or premises, or the failure or refusal by the board to
    44  approve such a transfer.
    45    (e) Refusal to approve alteration of premises.
    46    (f) Refusal to approve a corporate change in stockholders,  stockhold-
    47  ings, officers or directors.
    48    §  136. Illicit cannabis. 1. "Illicit cannabis" means and includes any
    49  cannabis flower, concentrated cannabis and cannabis product on which any
    50  tax required to have been paid under any applicable state law,  has  not
    51  been  paid.  Illicit  cannabis  shall  not include any cannabis lawfully
    52  possessed in accordance with this chapter or the penal law.
    53    2. Any person holding a license, permit  or  registration  under  this
    54  chapter who shall knowingly possess or have under his or her control any
    55  cannabis known by the person to be illicit cannabis is guilty of a class
    56  B misdemeanor.

        A. 1248--A                         74
 
     1    3.  Any  person  holding a license, permit or registration pursuant to
     2  this chapter who shall knowingly barter,  exchange,  give  or  sell,  or
     3  offer to barter, exchange, give or sell any cannabis known by the person
     4  to be illicit cannabis is guilty of a misdemeanor.
     5    4.  Any  person  holding a license, permit or registration pursuant to
     6  this chapter who shall knowingly  possess  or  have  under  his  or  her
     7  control  or  transport  any  cannabis  known by the person to be illicit
     8  cannabis with intent to barter, exchange, give or sell such cannabis  is
     9  guilty of a class B misdemeanor.
    10    5.  Any  person  who, being the owner, lessee or occupant of any room,
    11  shed, tenement, booth, building, float, vessel or part thereof who know-
    12  ingly permits the same to  be  used  for  the  cultivation,  processing,
    13  distribution,  purchase,  sale,  warehousing  or  transportation  of any
    14  cannabis, in violation of a possession limit in the penal law, known  by
    15  the person to be illicit cannabis, is guilty of a violation.
    16    § 137. Persons forbidden to traffic cannabis; certain officials not to
    17  be  interested  in  manufacture  or  sale  of  cannabis products. 1. The
    18  following are forbidden to traffic in cannabis except  in  extraordinary
    19  circumstances as determined by the board:
    20    (a)  An individual who has been convicted of an offense related to the
    21  functions or duties of owning and  operating  a  business  within  three
    22  years  of the application date, except that if the board determines that
    23  the owner or licensee is otherwise suitable to be issued a license,  and
    24  the  board  determines  granting  the  license  is not inconsistent with
    25  public safety, the board shall conduct a thorough review of  the  nature
    26  of  the  crime, conviction, circumstances and evidence of rehabilitation
    27  of the owner in accordance with article twenty-three-A of the correction
    28  law, and shall evaluate the suitability of the owner or licensee  to  be
    29  issued  a  license  based  on  the evidence found through the review. In
    30  determining which offenses are substantially related to the functions or
    31  duties of owning and operating a business, the board shall include,  but
    32  not be limited to, the following:
    33    (i)  a  felony  conviction within the past five years involving fraud,
    34  money laundering, forgery or other unlawful conduct  related  to  owning
    35  and operating a business; and
    36    (ii)  a  felony  conviction  within  the  past  five years for hiring,
    37  employing, or using a minor in transporting, carrying,  selling,  giving
    38  away,  preparing  for  sale,  or peddling, any controlled substance to a
    39  minor; or selling, offering to sell, furnishing,  offering  to  furnish,
    40  administering, or giving any controlled substance to a minor.
    41    (b) A person under the age of twenty-one years;
    42    (c) A partnership or a corporation, unless each member of the partner-
    43  ship,  or  each  of  the  principal officers and directors of the corpo-
    44  ration, is a citizen of the United States or a person lawfully  admitted
    45  for  permanent  residence in the United States, not less than twenty-one
    46  years of age;  provided  however  that  a  corporation  which  otherwise
    47  conforms to the requirements of this section and chapter may be licensed
    48  if  each  of its principal officers and more than one-half of its direc-
    49  tors are citizens of the United States or persons lawfully admitted  for
    50  permanent  residence  in  the United States; and provided further that a
    51  corporation organized under the not-for-profit corporation  law  or  the
    52  education  law  which  otherwise  conforms  to  the requirements of this
    53  section and chapter may be licensed if each of  its  principal  officers
    54  and  directors  are not less than twenty-one years of age; and provided,
    55  further, that a corporation organized under  the  not-for-profit  corpo-
    56  ration law or the education law and located on the premises of a college

        A. 1248--A                         75
 
     1  as  defined by section two of the education law which otherwise conforms
     2  to the requirements of this section and chapter may be licensed if  each
     3  of  its  principal  officers and each of its directors are not less than
     4  twenty-one years of age;
     5    (d)  A  person  who  shall have had any registration or license issued
     6  under this chapter revoked for cause, until the expiration of  one  year
     7  from the date of such revocation;
     8    (e)  A  person not registered or licensed under the provisions of this
     9  chapter, who has been convicted of a misdemeanor or felony in  violation
    10  of  this chapter, until the expiration of one year from the date of such
    11  conviction; or
    12    (f) A corporation or partnership, if any officer and director  or  any
    13  partner,  while  not  licensed under the provisions of this chapter, has
    14  been convicted of a misdemeanor or felony in violation of this  chapter,
    15  or  has  had a registration or license issued under this chapter revoked
    16  for cause, until the expiration of up to one year from the date of  such
    17  conviction or revocation as determined by the board.
    18    2.  Except as may otherwise be provided for in regulation, it shall be
    19  unlawful for any chief of police, police officer or subordinate  of  any
    20  police  department  in  the  state,  to be either directly or indirectly
    21  interested in the cultivation,  processing,  distribution,  or  sale  of
    22  cannabis  products  or to offer for sale, or recommend to any registered
    23  organization or licensee any cannabis products.  A  person  may  not  be
    24  denied  any registration or license granted under the provisions of this
    25  chapter solely on the grounds of being the spouse or domestic partner of
    26  a public servant described in this section. The solicitation  or  recom-
    27  mendation  made  to any registered organization or licensee, to purchase
    28  any cannabis products by any police official or subordinate as  hereina-
    29  bove  described,  shall  be presumptive evidence of the interest of such
    30  official or subordinate in the cultivation, processing, distribution, or
    31  sale of cannabis products.
    32    3. No elected village officer shall be subject to the limitations  set
    33  forth  in  subdivision  two  of this section unless such elected village
    34  officer shall be assigned duties directly relating to the  operation  or
    35  management of the police department.
    36    §  138. Access to criminal history information through the division of
    37  criminal justice services.   In connection with  the  administration  of
    38  this  chapter,  the  board  is authorized to request, receive and review
    39  criminal history information through the division  of  criminal  justice
    40  services  with  respect  to  any person seeking a registration, license,
    41  permit or  authorization  to  cultivate,  process,  distribute  or  sell
    42  medical  cannabis, adult-use cannabis, cannabinoid hemp or hemp extract.
    43  At the board's request, each person, member, principal and/or officer of
    44  the applicant shall submit to the board his or her fingerprints in  such
    45  form and in such manner as specified by the division, for the purpose of
    46  conducting  a  criminal  history search identifying criminal convictions
    47  and pending criminal charges and returning a report thereon  in  accord-
    48  ance  with  the  procedures and requirements established by the division
    49  pursuant to the provisions of article thirty-five of the executive  law,
    50  which  shall include the payment of the reasonable prescribed processing
    51  fees for the cost of the division's full search  and  retain  procedures
    52  and a national criminal history record check. The board, or their desig-
    53  nee,  shall submit such fingerprints and the processing fee to the divi-
    54  sion. The division shall forward to the board a report with  respect  to
    55  the  applicant's  previous criminal history, if any, or a statement that
    56  the applicant has no previous criminal history according to  its  files.

        A. 1248--A                         76
 
     1  Fingerprints  submitted to the division pursuant to this subdivision may
     2  also be submitted to the federal bureau of investigation for a  national
     3  criminal  history record check. If additional copies of fingerprints are
     4  required, the applicant shall furnish them upon request. Upon receipt of
     5  such  criminal  history information, the board shall provide such appli-
     6  cant with a copy of such criminal history information, together  with  a
     7  copy  of  article  twenty-three-A of the correction law, and inform such
     8  applicant of his or her right to seek correction of any incorrect infor-
     9  mation contained in such criminal history information pursuant to  regu-
    10  lations  and  procedures established by the division of criminal justice
    11  services.
    12    § 138-a. Injunction for unlawful manufacturing, sale, or  distribution
    13  of  cannabis. The office of cannabis management shall have the authority
    14  to request an injunction against any person who is unlawfully  cultivat-
    15  ing,  processing, distributing or selling cannabis in this state without
    16  obtaining the appropriate registration, license, or permit therefor,  in
    17  accordance with this chapter and any applicable state law.
    18    §  139.  Severability. If any provision of this chapter or application
    19  thereof to any person or circumstances is held invalid, such  invalidity
    20  shall  not  affect other provisions or applications of this chapter that
    21  can be given effect without the invalid provision or application, and to
    22  this end the provisions of this chapter are declared severable.
    23    § 3. Section 3302 of the public health law, as added by chapter 878 of
    24  the laws of 1972, subdivisions 1, 14, 16,  17  and  27  as  amended  and
    25  subdivisions  4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 22, 23, 24, 25,
    26  26, 28, 29 and 30 as renumbered by chapter 537  of  the  laws  of  1998,
    27  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
    28  and  40  as  added  by chapter 178 of the laws of 2010, paragraph (a) of
    29  subdivision 20, the opening paragraph of subdivision 22 and  subdivision
    30  29  as  amended  by  chapter  163 of the laws of 1973, subdivision 21 as
    31  amended by chapter 1 of the laws of 2020, subdivision 31 as  amended  by
    32  section 4 of part A of chapter 58 of the laws of 2004, subdivision 41 as
    33  added  by  section  6  of part A of chapter 447 of the laws of 2012, and
    34  subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of
    35  the laws of 2014, is amended to read as follows:
    36    § 3302. Definitions of terms of general use in  this  article.  Except
    37  where   different   meanings   are  expressly  specified  in  subsequent
    38  provisions of this article, the following terms have the following mean-
    39  ings:
    40    1. "Addict" means a person who habitually uses a controlled  substance
    41  for  a  non-legitimate or unlawful use, and who by reason of such use is
    42  dependent thereon.
    43    2.  "Administer"  means  the  direct  application  of   a   controlled
    44  substance,  whether  by  injection,  inhalation, ingestion, or any other
    45  means, to the body of a patient or research subject.
    46    3. "Agent" means an authorized person who acts on behalf of or at  the
    47  direction of a manufacturer, distributor, or dispenser. No person may be
    48  authorized  to  so  act  if  under  title VIII of the education law such
    49  person would not be permitted to engage in such  conduct.  It  does  not
    50  include  a  common or contract carrier, public warehouseman, or employee
    51  of the carrier or warehouseman when  acting  in  the  usual  and  lawful
    52  course of the carrier's or warehouseman's business.
    53    4. ["Concentrated Cannabis" means
    54    (a)  the  separated  resin, whether crude or purified, obtained from a
    55  plant of the genus Cannabis; or

        A. 1248--A                         77

     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.

        A. 1248--A                         78
 
     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.

        A. 1248--A                         79

     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.

        A. 1248--A                         80
 
     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

        A. 1248--A                         81
 
     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).   Any Federal  Food  and  Drug
    12  Administration  approved  product  containing tetrahydrocannabinol shall
    13  not be considered a synthetic tetrahydrocannabinol.
    14    [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
    15  names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
    16  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    17    [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
    18  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    19    [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
    20  names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
    21  phencyclidine, TPCP, TCP.
    22    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    23    [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
    24  N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
    25  MDE, MDEA.
    26    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    27  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    28  N-hydroxy MDA.
    29    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    30  names: TCPY.
    31    [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
    32  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    33  3- (2-aminobutyl) indole; Alpha-ET or AET.
    34    [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
    35  names: DOET.
    36    [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
    37  names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
    38  DOB; 2C-B, Nexus.
    39    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    40  optical isomers, salts and salts of isomers.
    41    §  5.  Subdivision  8  of  section 1399-n of the public health law, as
    42  amended by chapter 131 of the laws  of  2019,  is  amended  to  read  as
    43  follows:
    44    8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    45  any other matter or substance  which  contains  tobacco  or  [marihuana]
    46  cannabis  as  defined  in  section  [thirty-three  hundred  two  of this
    47  chapter] 222.00 of the penal law, or  cannabinoid  hemp  as  defined  in
    48  section three of the cannabis law.
    49    §  5-a. Section 1399-q of the public health law, as amended by chapter
    50  335 of the laws of 2017, is amended to read as follows:
    51    § 1399-q.  Smoking  and  vaping  restrictions  inapplicable.  1.  This
    52  article shall not apply to:
    53    [1.]   (a)  Private  homes[,]  and  private  residences  [and  private
    54  automobiles];
    55    [2.] (b) Private automobiles;
    56    (c) A hotel or motel room rented to one or more guests;

        A. 1248--A                         82
 
     1    [3.] (d) Retail tobacco businesses;
     2    [4.]  (e) Membership associations; provided, however, that smoking and
     3  vaping shall only be allowed in membership associations in which all  of
     4  the duties with respect to the operation of such association, including,
     5  but  not  limited to, the preparation of food and beverages, the service
     6  of food and beverages, reception and secretarial work, and the  security
     7  services  of the membership association are performed by members of such
     8  membership association who do not receive compensation of any kind  from
     9  the  membership  association  or any other entity for the performance of
    10  such duties;
    11    [5.] (f) Cigar bars that, in the calendar year ending  December  thir-
    12  ty-first,  two  thousand two, generated ten percent or more of its total
    13  annual gross income from the on-site sale of tobacco  products  and  the
    14  rental  of  on-site  humidors,  not  including  any  sales  from vending
    15  machines, and is registered with the appropriate enforcement officer, as
    16  defined in subdivision one of section thirteen hundred ninety-nine-t  of
    17  this  article. Such registration shall remain in effect for one year and
    18  shall be renewable only if: (a) in  the  preceding  calendar  year,  the
    19  cigar bar generated ten percent or more of its total annual gross income
    20  from  the  on-site  sale  of  tobacco products and the rental of on-site
    21  humidors, and (b) the cigar bar has not expanded its size or changed its
    22  location from its size or  location  since  December  thirty-first,  two
    23  thousand two;
    24    [6.]  (g)  Outdoor dining areas of food service establishments with no
    25  roof or other ceiling enclosure; provided,  however,  that  smoking  and
    26  vaping  may be permitted in a contiguous area designated for smoking and
    27  vaping so long as such area: (a) constitutes no  more  than  twenty-five
    28  percent  of the outdoor seating capacity of such food service establish-
    29  ment, (b) is at least three feet away from the outdoor area of such food
    30  service establishment not designated for smoking and vaping, and (c)  is
    31  clearly designated with written signage as a smoking and vaping area;
    32    [7.] (h) Enclosed rooms in food service establishments, bars, catering
    33  halls,  convention  halls,  hotel  and motel conference rooms, and other
    34  such similar facilities during the time such enclosed areas or rooms are
    35  being used exclusively for functions where the public is invited for the
    36  primary purpose of promoting and sampling tobacco products or electronic
    37  cigarettes, and the service of food and  drink  is  incidental  to  such
    38  purpose,  provided  that  the  sponsor  or organizer gives notice in any
    39  promotional material or advertisements that smoking and vaping will  not
    40  be  restricted,  and  prominently  posts  notice  at the entrance of the
    41  facility and has provided notice of such  function  to  the  appropriate
    42  enforcement  officer,  as defined in subdivision one of section thirteen
    43  hundred ninety-nine-t of this article, at least two weeks prior to  such
    44  function.  The  enforcement  officer  shall keep a record of all tobacco
    45  sampling events, and such record shall  be  made  available  for  public
    46  inspection.  No such facility shall permit smoking and vaping under this
    47  subdivision for more than two days in any calendar year; [and
    48    8.] (i) Retail electronic cigarette  stores,  provided  however,  that
    49  such stores may only permit the use of electronic cigarettes[.]; and
    50    (j)  Adult-use  on-site  consumption  premises  authorized pursuant to
    51  article four of the cannabis law, provided however, that such  locations
    52  may only permit the smoking or vaping of cannabis.
    53    2. The restrictions of this article on the smoking or vaping of canna-
    54  bis  shall continue to apply to those locations identified in paragraphs
    55  (b), (d), (f), (g), (h) and (i) of subdivision one of this section.
    56    § 6. Title 5-A of article 33 of the public health law is REPEALED.

        A. 1248--A                         83
 
     1    § 6-a. Article 33-B of the public health law is REPEALED.
     2    § 6-b. The commissioner of health and the cannabis control board shall
     3  work  in  conjunction  to  expeditiously  transfer  the oversight of the
     4  medical use of cannabis to ensure continuity of care, and the  responsi-
     5  bility  for  regulation  of  cannabinoid hemp and hemp extract, from the
     6  department of health to the  office  of  cannabis  management.  For  the
     7  purposes  of  this  section continuity of care shall include, but not be
     8  limited to, a certified  patient's  ability  to  engage  in  the  lawful
     9  medical  use  of  cannabis,  and  a registered organization's ability to
    10  conduct its lawful operations.
    11    § 6-c. Section 3382 of the public health law is REPEALED.
    12    § 7. Paragraph (d) of subdivision 3, subdivision  3-a  and  paragraphs
    13  (a)  and (b) of subdivision 11 of section 1311 of the civil practice law
    14  and rules, paragraph (d) of subdivision 3 and subdivision 3-a  as  added
    15  by  chapter 655 of the laws of 1990 and paragraphs (a) and (b) of subdi-
    16  vision 11 as amended by section 47 of part A1 of chapter 56 of the  laws
    17  of 2010, are amended to read as follows:
    18    (d) In a forfeiture action commenced by a claiming authority against a
    19  defendant, the following rebuttable presumption shall apply: all curren-
    20  cy  or negotiable instruments payable to the bearer shall be presumed to
    21  be the proceeds of a pre-conviction forfeiture crime when such  currency
    22  or  negotiable  instruments  are  (i)  found  in  close  proximity  to a
    23  controlled substance unlawfully possessed by the defendant in an  amount
    24  sufficient  to constitute a violation of section 220.18 or 220.21 of the
    25  penal law, or (ii) found  in  close  proximity  to  any  quantity  of  a
    26  controlled substance [or marihuana] unlawfully possessed by such defend-
    27  ant  in  a room, other than a public place, under circumstances evincing
    28  an intent to unlawfully mix, compound, distribute, package or  otherwise
    29  prepare for sale such controlled substance [or marihuana].
    30    3-a.  Conviction  of  a person in a criminal action upon an accusatory
    31  instrument which includes one or  more  of  the  felonies  specified  in
    32  subdivision  four-b  of section thirteen hundred ten of this article, of
    33  any felony other than such felonies, shall not preclude a defendant,  in
    34  any subsequent proceeding under this article where that conviction is at
    35  issue, from adducing evidence that the conduct underlying the conviction
    36  would  not  establish  the  elements of any of the felonies specified in
    37  such subdivision other than the one to which the criminal defendant pled
    38  guilty. If the defendant does adduce such evidence, the burden shall  be
    39  upon  the claiming authority to prove, by clear and convincing evidence,
    40  that the conduct underlying the criminal conviction would establish  the
    41  elements  of the felony specified in such subdivision. Nothing contained
    42  in this subdivision shall affect the validity of  a  settlement  of  any
    43  forfeiture action negotiated between the claiming authority and a crimi-
    44  nal defendant contemporaneously with the taking of a plea of guilty in a
    45  criminal  action to any felony defined in article two hundred twenty [or
    46  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    47  commit the same.
    48    (a) Any stipulation or settlement agreement between the parties  to  a
    49  forfeiture  action  shall  be filed with the clerk of the court in which
    50  the forfeiture action is pending. No stipulation or settlement agreement
    51  shall be accepted for filing unless it is accompanied  by  an  affidavit
    52  from  the  claiming  authority that written notice of the stipulation or
    53  settlement agreement, including the terms of such, has been given to the
    54  office of victim  services,  the  state  division  of  criminal  justice
    55  services[,  and in the case of a forfeiture based on a felony defined in

        A. 1248--A                         84

     1  article two hundred twenty or section 221.30 or 221.55 of the penal law,
     2  to the state division of substance abuse services].
     3    (b)  No  judgment  or order of forfeiture shall be accepted for filing
     4  unless it is accompanied by an affidavit  from  the  claiming  authority
     5  that  written  notice of judgment or order, including the terms of such,
     6  has been given to the office of victim services, the state  division  of
     7  criminal  justice  services[, and in the case of a forfeiture based on a
     8  felony defined in article two hundred twenty or section 221.30 or 221.55
     9  of the penal law, to the state division of substance abuse services].
    10    § 8. Subdivision 1 of section 3397-b of  the  public  health  law,  as
    11  added by chapter 810 of the laws of 1980, is amended to read as follows:
    12    1.  ["Marijuana"]  "Cannabis" means [marijuana] cannabis as defined in
    13  [section thirty-three hundred two of this chapter] section 222.00 of the
    14  penal law and shall also include  tetrahydrocannabinols  or  a  chemical
    15  derivative of tetrahydrocannabinol.
    16    § 9. Section 114-a of the vehicle and traffic law, as added by chapter
    17  163 of the laws of 1973, is amended to read as follows:
    18    § 114-a. Drug.  The  term  "drug" when used in this chapter, means and
    19  includes any substance listed in section thirty-three hundred six of the
    20  public health law and cannabis and concentrated cannabis as  defined  in
    21  section 222.00 of the penal law.
    22    §  9-a.  Paragraphs  b  and c of subdivision 2 of section 201-d of the
    23  labor law, as added by chapter 776 of the laws of 1992, are  amended  to
    24  read as follows:
    25    b.  an individual's legal use of consumable products, including canna-
    26  bis in accordance with state law, prior to the beginning  or  after  the
    27  conclusion of the employee's work hours, and off of the employer's prem-
    28  ises and without use of the employer's equipment or other property;
    29    c.  an  individual's legal recreational activities, including cannabis
    30  in accordance with state law, outside work hours, off of the  employer's
    31  premises  and without use of the employer's equipment or other property;
    32  or
    33    § 9-b. Section 201-d of the labor law, as amended by  chapter  778  of
    34  the laws of 1992, is amended by adding a new subdivision 4-a, to read as
    35  follows:
    36    4-a.  Notwithstanding  the  provisions of subdivision three or four of
    37  this section, an employer shall not be  in  violation  of  this  section
    38  where  the employer takes action related to the use of cannabis based on
    39  the following:
    40    (i) the employer's actions were required by state or federal  statute,
    41  regulation, ordinance, or other state or federal governmental mandate;
    42    (ii)  the  employee  is  impaired  by the use of cannabis, meaning the
    43  employee manifests specific  articulable  symptoms  while  working  that
    44  decrease  or lessen the employee's performance of the duties or tasks of
    45  the employee's job  position,  or  such  specific  articulable  symptoms
    46  interfere  with  an  employer's obligation to provide a safe and healthy
    47  work place, free from recognized  hazards,  as  required  by  state  and
    48  federal occupational safety and health law; or
    49    (iii) the employer's actions would require such employer to commit any
    50  act  that  would cause the employer to be in violation of federal law or
    51  would result in the loss of a federal contract or federal funding.
    52    § 10. Subdivision 9 of section 220.00 of the penal law, as amended  by
    53  chapter 664 of the laws of 1985, is amended to read as follows:
    54    9.  "Hallucinogen"  means any controlled substance listed in [schedule
    55  I(d)] paragraphs (5), [(18), (19), (20),  (21)  and  (22)]  (17),  (18),

        A. 1248--A                         85
 
     1  (19),  (20) and (21) of subdivision (d) of schedule I of section thirty-
     2  three hundred six of the public health law.
     3    §  10-a.  Subdivision 5 of section 220.00 of the penal law, as amended
     4  by chapter 537 of the laws of 1998, is amended to read as follows:
     5    5. "Controlled substance" means any substance listed  in  schedule  I,
     6  II,  III,  IV  or  V  of  section thirty-three hundred six of the public
     7  health law [other than marihuana, but including concentrated cannabis as
     8  defined in paragraph (a) of subdivision  four  of  section  thirty-three
     9  hundred two of such law].
    10    § 11. Subdivision 4 of section 220.06 of the penal law is REPEALED.
    11    § 12. Subdivision 10 of section 220.09 of the penal law is REPEALED.
    12    § 13. Subdivision 3 of section 220.34 of the penal law is REPEALED.
    13    § 14. Subdivision 6 of section 220.00 of the penal law is REPEALED.
    14    § 15. Article 221 of the penal law is REPEALED.
    15    §  16. The penal law is amended by adding a new article 222 to read as
    16  follows:
    17                                 ARTICLE 222
    18                                  CANNABIS
    19  Section 222.00 Cannabis; definitions.
    20          222.05 Personal use of cannabis.
    21          222.10 Restrictions on cannabis use.
    22          222.15 Personal cultivation and home possession of cannabis.
    23          222.20 Licensing  of  cannabis  production   and   distribution;
    24                   defense.
    25          222.25 Unlawful possession of cannabis.
    26          222.30 Criminal possession of cannabis in the third degree.
    27          222.35 Criminal possession of cannabis in the second degree.
    28          222.40 Criminal possession of cannabis in the first degree.
    29          222.45 Unlawful sale of cannabis.
    30          222.50 Criminal sale of cannabis in the third degree.
    31          222.55 Criminal sale of cannabis in the second degree.
    32          222.60 Criminal sale of cannabis in the first degree.
    33          222.65 Aggravated criminal sale of cannabis.
    34  § 222.00 Cannabis; definitions.
    35    1.  "Cannabis"  means  all  parts  of the plant of the genus Cannabis,
    36  whether growing or not; the seeds thereof; the resin extracted from  any
    37  part  of  the  plant; and every compound, manufacture, salt, derivative,
    38  mixture, or preparation of the plant, its seeds or resin.  It  does  not
    39  include  the mature stalks of the plant, fiber produced from the stalks,
    40  oil or cake made from the seeds of the plant, any other compound,  manu-
    41  facture,  salt, derivative, mixture, or preparation of the mature stalks
    42  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    43  sterilized seed of the plant which is incapable of germination.  It does
    44  not include hemp, cannabinoid hemp or hemp extract as defined in section
    45  three  of the cannabis law or drug products approved by the Federal Food
    46  and Drug Administration.
    47    2. "Concentrated cannabis" means:
    48    (a) the separated resin, whether crude or purified,  obtained  from  a
    49  plant of the genus Cannabis; or
    50    (b)  a  material,  preparation,  mixture,  compound or other substance
    51  which contains more than three percent by weight of delta-9  tetrahydro-
    52  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
    53  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
    54  numbering system.
    55    3.  For  the  purposes  of  this  article,  "sell" shall mean to sell,
    56  exchange or dispose of for compensation. "Sell" shall  not  include  the

        A. 1248--A                         86
 
     1  transfer of cannabis or concentrated cannabis between persons twenty-one
     2  years  of age or older without compensation in the quantities authorized
     3  in paragraph (b) of subdivision one of section 222.05 of this article.
     4    4.  For  the  purposes  of this article, "smoking" shall have the same
     5  meaning as that term is defined in section three of the cannabis law.
     6  § 222.05 Personal use of cannabis.
     7    Notwithstanding any other provision of law to the contrary:
     8    1. The following acts are lawful for persons twenty-one years  of  age
     9  or  older:  (a) possessing, displaying, purchasing, obtaining, or trans-
    10  porting up to three ounces of cannabis and up to  twenty-four  grams  of
    11  concentrated cannabis;
    12    (b)  transferring,  without compensation, to a person twenty-one years
    13  of age or older, up to three ounces of cannabis and  up  to  twenty-four
    14  grams of concentrated cannabis;
    15    (c)  using,  smoking, ingesting, or consuming cannabis or concentrated
    16  cannabis unless otherwise prohibited by state law;
    17    (d) possessing, using, displaying, purchasing, obtaining,  manufactur-
    18  ing,  transporting  or  giving  to any person twenty-one years of age or
    19  older cannabis paraphernalia or concentrated cannabis paraphernalia;
    20    (e) planting, cultivating, harvesting, drying, processing or  possess-
    21  ing  cultivated cannabis in accordance with section 222.15 of this arti-
    22  cle; and
    23    (f) assisting another person who is twenty-one years of age or  older,
    24  or  allowing  property to be used, in any of the acts described in para-
    25  graphs (a) through (e) of this subdivision.
    26    2. Cannabis, concentrated cannabis, cannabis paraphernalia or  concen-
    27  trated  cannabis  paraphernalia  involved in any way with conduct deemed
    28  lawful by this section are not contraband  nor  subject  to  seizure  or
    29  forfeiture  of assets under article four hundred eighty of this chapter,
    30  section thirteen hundred eleven of the civil practice law and rules,  or
    31  other applicable law, and no conduct deemed lawful by this section shall
    32  constitute the basis for approach, search, seizure, arrest or detention.
    33    3.  Except  as  provided  in  subdivision four of this section, in any
    34  criminal proceeding including proceedings pursuant to section 710.20  of
    35  the  criminal  procedure  law, no finding or determination of reasonable
    36  cause to believe a crime has been committed shall  be  based  solely  on
    37  evidence  of  the following facts and circumstances, either individually
    38  or in combination with each other:
    39    (a) the odor of cannabis;
    40    (b) the odor of burnt cannabis;
    41    (c) the possession of or the suspicion of possession  of  cannabis  or
    42  concentrated cannabis in the amounts authorized in this article;
    43    (d) the possession of multiple containers of cannabis without evidence
    44  of concentrated cannabis in the amounts authorized in this article;
    45    (e)  the  presence  of  cash  or  currency in proximity to cannabis or
    46  concentrated cannabis; or
    47    (f) the  planting,  cultivating,  harvesting,  drying,  processing  or
    48  possessing cultivated cannabis in accordance with section 222.15 of this
    49  article.
    50    4.  Paragraph (b) of subdivision three of this section shall not apply
    51  when a law enforcement officer is  investigating  whether  a  person  is
    52  operating  a motor vehicle, vessel or snowmobile while impaired by drugs
    53  or the combined influence of drugs or of alcohol and any drug  or  drugs
    54  in violation of subdivision four or subdivision four-a of section eleven
    55  hundred  ninety-two  of the vehicle and traffic law, or paragraph (e) of
    56  subdivision two of section forty-nine-a of the navigation law, or  para-

        A. 1248--A                         87
 
     1  graph  (d)  of subdivision one of section 25.24 of the parks, recreation
     2  and historic preservation law.  During such investigations, the odor  of
     3  burnt  cannabis shall not provide probable cause to search any area of a
     4  vehicle  that  is  not  readily  accessible to the driver and reasonably
     5  likely to contain evidence relevant to the driver's condition.
     6  § 222.10 Restrictions on cannabis use.
     7    Unless otherwise authorized by law or regulation, no person shall:
     8    1. smoke or vape cannabis in a location where smoking or vaping canna-
     9  bis is prohibited pursuant to article thirteen-E of  the  public  health
    10  law; or
    11    2.  smoke, vape or ingest cannabis or concentrated cannabis in or upon
    12  the grounds of a school, as defined in subdivision ten of section eleven
    13  hundred twenty-five of the education law or in or on a  school  bus,  as
    14  defined in section one hundred forty-two of the vehicle and traffic law;
    15  provided,  however,  provisions  of  this subdivision shall not apply to
    16  acts that are in compliance with article three of the cannabis law.
    17    Notwithstanding any other section of law, violations  of  restrictions
    18  on cannabis use are subject to a civil penalty not exceeding twenty-five
    19  dollars or an amount of community service not exceeding twenty hours.
    20  § 222.15 Personal cultivation and home possession of cannabis.
    21    1.  Except  as  provided for in section forty-one of the cannabis law,
    22  and unless otherwise authorized by law or regulation, no person may:
    23    (a) plant, cultivate, harvest, dry, process or possess more than three
    24  mature cannabis plants and three immature cannabis  plants  at  any  one
    25  time; or
    26    (b)  plant, cultivate, harvest, dry, process or possess, within his or
    27  her private residence, or on the grounds of his  or  her  private  resi-
    28  dence,  more than three mature cannabis plants and three immature canna-
    29  bis plants at any one time; or
    30    (c) being under the age of twenty-one, plant, cultivate, harvest, dry,
    31  process or possess cannabis plants.
    32    2. No more than six mature and six immature  cannabis  plants  may  be
    33  cultivated, harvested, dried, or possessed within any private residence,
    34  or on the grounds of a person's private residence.
    35    3.  The personal cultivation of cannabis shall only be permitted with-
    36  in, or on the grounds of, a person's private residence.
    37    4. Any mature or immature cannabis plant described in paragraph (a) or
    38  (b) of subdivision one of this section, and any cannabis produced by any
    39  such cannabis plant or plants cultivated, harvested, dried, processed or
    40  possessed pursuant to paragraph (a) or (b) of subdivision  one  of  this
    41  section  shall,  unless  otherwise  authorized  by law or regulation, be
    42  stored within such person's private residence or on the grounds of  such
    43  person's  private  residence.    Such person shall take reasonable steps
    44  designed to ensure that such cultivated cannabis is in a  secured  place
    45  and not accessible to any person under the age of twenty-one.
    46    5.  Notwithstanding  any  law  to  the contrary, a person may lawfully
    47  possess up to five pounds of cannabis in their private residence  or  on
    48  the  grounds  of such person's private residence. Such person shall take
    49  reasonable steps designed to ensure that such cannabis is in  a  secured
    50  place not accessible to any person under the age of twenty-one.
    51    6.  A  county, town, city or village may enact and enforce regulations
    52  to reasonably regulate the actions and conduct set forth in  subdivision
    53  one of this section; provided that:
    54    (a)  a violation of any such a regulation, as approved by such county,
    55  town, city or village enacting the regulation, may  constitute  no  more

        A. 1248--A                         88
 
     1  than an infraction and may be punishable by no more than a discretionary
     2  civil penalty of two hundred dollars or less; and
     3    (b)  no  county,  town,  city or village may enact or enforce any such
     4  regulation or regulations that may completely or essentially prohibit  a
     5  person  from engaging in the action or conduct authorized by subdivision
     6  one of this section.
     7    A violation of this section, other than paragraph (a)  of  subdivision
     8  six  of  this  section,  may  be subject to a civil penalty of up to one
     9  hundred twenty-five dollars per violation.
    10    7. The office of cannabis management shall issue regulations  for  the
    11  home  cultivation  of  cannabis. The office of cannabis management shall
    12  enact, and may enforce, regulations to regulate the actions and  conduct
    13  set  forth  in  this section including requirements for, or restrictions
    14  and prohibitions on, the use of any compressed  flammable  gas  solvents
    15  such  as propane, butane, or other hexane gases for cannabis processing;
    16  or other  forms  of  home  cultivation,  manufacturing,  or  cannabinoid
    17  production and processing, which the office determines poses a danger to
    18  public  safety;  and  to  ensure the home cultivation of cannabis is for
    19  personal use by an adult over the age of  twenty-one  in  possession  of
    20  cannabis  plants,  and not utilized for unlicensed commercial or illicit
    21  activity, provided any  regulations  issued  by  the  office  shall  not
    22  completely  or essentially prohibit a person from engaging in the action
    23  or conduct authorized by this section.
    24    8. The office of cannabis management may issue guidance or  advisories
    25  for  the  education  and  promotion of safe practices for activities and
    26  conduct authorized in subdivision one of this section.
    27    9. Subdivisions one through five of this section shall not take effect
    28  until such a time as the office of cannabis management has issued  regu-
    29  lations  governing  the  home  cultivation of cannabis. The office shall
    30  issue rules and regulations governing the home cultivation  of  cannabis
    31  by  certified  patients as defined in section three of the cannabis law,
    32  no later than six months after the effective date of  this  article  and
    33  shall  issue  rules  and  regulations  governing the home cultivation of
    34  cannabis for cannabis consumers as  defined  by  section  three  of  the
    35  cannabis  law  no later than eighteen months following the first author-
    36  ized retail sale of adult-use cannabis products to a cannabis consumer.
    37  § 222.20 Licensing of cannabis production and distribution; defense.
    38    In any prosecution for an offense involving cannabis under this  arti-
    39  cle  or  an authorized local law, it is a defense that the defendant was
    40  engaged in such activity in compliance with the cannabis law.
    41  § 222.25 Unlawful possession of cannabis.
    42    A person is guilty of unlawful possession of cannabis when he  or  she
    43  knowingly  and  unlawfully  possesses  cannabis and such cannabis weighs
    44  more than three ounces or concentrated cannabis  and  such  concentrated
    45  cannabis weighs more than twenty-four grams.
    46    Unlawful possession of cannabis is a violation punishable by a fine of
    47  not more than one hundred twenty-five dollars.
    48  § 222.30 Criminal possession of cannabis in the third degree.
    49    A  person  is  guilty  of criminal possession of cannabis in the third
    50  degree when he or she knowingly and unlawfully possesses:
    51    1. cannabis and such cannabis weighs more than sixteen ounces; or
    52    2. concentrated cannabis and such concentrated  cannabis  weighs  more
    53  than five ounces.
    54    Criminal  possession  of  cannabis  in  the  third degree is a class A
    55  misdemeanor.
    56  § 222.35 Criminal possession of cannabis in the second degree.

        A. 1248--A                         89
 
     1    A person is guilty of criminal possession of cannabis  in  the  second
     2  degree when he or she knowingly and unlawfully possesses:
     3    1. cannabis and such cannabis weighs more than five pounds; or
     4    2.  concentrated  cannabis  and such concentrated cannabis weighs more
     5  than two pounds.
     6    Criminal possession of cannabis in the second  degree  is  a  class  E
     7  felony.
     8  § 222.40 Criminal possession of cannabis in the first degree.
     9    A  person  is  guilty  of criminal possession of cannabis in the first
    10  degree when he or she knowingly and unlawfully possesses:
    11    1. cannabis and such cannabis weighs more than ten pounds; or
    12    2. concentrated cannabis and such concentrated  cannabis  weighs  more
    13  than four pounds.
    14    Criminal possession of cannabis in the first degree is a class D felo-
    15  ny.
    16  § 222.45 Unlawful sale of cannabis.
    17    A  person  is guilty of unlawful sale of cannabis when he or she know-
    18  ingly and unlawfully sells cannabis or concentrated cannabis.
    19    Unlawful sale of cannabis is a violation punishable by a fine  of  not
    20  more than two hundred fifty dollars.
    21  § 222.50 Criminal sale of cannabis in the third degree.
    22    A  person  is  guilty of criminal sale of cannabis in the third degree
    23  when:
    24    1. he or she knowingly and unlawfully sells more than three ounces  of
    25  cannabis or more than twenty-four grams of concentrated cannabis; or
    26    2.  being  twenty-one  years  of age or older, he or she knowingly and
    27  unlawfully sells or gives, or causes to be given or  sold,  cannabis  or
    28  concentrated  cannabis  to  a  person less than twenty-one years of age;
    29  except that in any prosecution under this subdivision, it is  a  defense
    30  that the defendant was less than three years older than the person under
    31  the age of twenty-one at the time of the offense. This subdivision shall
    32  not apply to designated caregivers, practitioners, employees of a regis-
    33  tered  organization  or  employees  of  a  designated caregiver facility
    34  acting in compliance with article three of the cannabis law.
    35    Criminal sale of cannabis in the third degree is a class  A  misdemea-
    36  nor.
    37  § 222.55 Criminal sale of cannabis in the second degree.
    38    A  person  is guilty of criminal sale of cannabis in the second degree
    39  when:
    40    1. he or she knowingly and unlawfully sells more than  sixteen  ounces
    41  of cannabis or more than five ounces of concentrated cannabis; or
    42    2.  being  twenty-one  years  of age or older, he or she knowingly and
    43  unlawfully sells or gives, or causes to be  given  or  sold,  more  than
    44  three  ounces of cannabis or more than twenty-four grams of concentrated
    45  cannabis to a person less than eighteen years of age.  This  subdivision
    46  shall  not apply to designated caregivers, practitioners, employees of a
    47  registered organization or employees of a designated caregiver  facility
    48  acting in compliance with article three of the cannabis law.
    49    Criminal sale of cannabis in the second degree is a class E felony.
    50  § 222.60 Criminal sale of cannabis in the first degree.
    51    A  person  is  guilty of criminal sale of cannabis in the first degree
    52  when he or she knowingly and unlawfully sells more than five  pounds  of
    53  cannabis or more than two pounds of concentrated cannabis.
    54    Criminal sale of cannabis in the first degree is a class D felony.
    55  § 222.65 Aggravated criminal sale of cannabis.

        A. 1248--A                         90
 
     1    A  person is guilty of aggravated criminal sale of cannabis when he or
     2  she knowingly and unlawfully sells  cannabis  or  concentrated  cannabis
     3  weighing one hundred pounds or more.
     4    Aggravated criminal sale of cannabis is a class C felony.
     5    § 17. Paragraph (k) of subdivision 3 of section 160.50 of the criminal
     6  procedure  law,  as amended by chapter 132 of the laws of 2019, subpara-
     7  graphs (iii) and (iv) as amended by chapter 23 of the laws of  2021,  is
     8  amended to read as follows:
     9    (k)  (i)  The  conviction  was  for a violation of article two hundred
    10  twenty or section 240.36 of the penal law prior to the effective date of
    11  article two hundred twenty-one of the penal law, and the sole controlled
    12  substance involved was marihuana and  the  conviction  was  only  for  a
    13  misdemeanor and/or violation [or violations]; or
    14    (ii)  the  conviction  is  for an offense defined in section 221.05 or
    15  221.10 of the penal law prior to the effective date of [the] chapter one
    16  hundred thirty-two of the laws of two thousand  nineteen  [that  amended
    17  this paragraph]; or
    18    (iii)  the  conviction  is  for an offense defined in [section] former
    19  section 221.05 [or] 221.10, 221.15, 221.20, 221.35,  or  221.40  of  the
    20  penal law; or
    21    (iv)  the  conviction  was for an offense defined in section 240.37 of
    22  the penal law; or
    23    (v) the conviction was for a violation of section 220.03 or 220.06  of
    24  the  penal law prior to the effective date of the chapter of the laws of
    25  two thousand twenty-one  that  amended  this  paragraph,  and  the  sole
    26  controlled substance involved was concentrated cannabis; or
    27    (vi)  the  conviction  was  for  an offense defined in section 222.10,
    28  222.15, 222.25 or 222.45 of the penal law.
    29    No defendant shall be required or permitted to waive  eligibility  for
    30  sealing  or  expungement  pursuant  to this section as part of a plea of
    31  guilty, sentence  or  any  agreement  related  to  a  conviction  for  a
    32  violation of [section 221.05] section 222.10, 222.15, 222.25 or [section
    33  221.10] 222.45 of the penal law and any such waiver shall be deemed void
    34  and wholly unenforceable.
    35    § 18. Paragraph (k) of subdivision 1 of section 440.10 of the criminal
    36  procedure  law,  as added by chapter 132 of the laws of 2019, is amended
    37  to read as follows:
    38    (k) The judgment occurred prior to the effective date of the  laws  of
    39  two  thousand twenty-one that amended this paragraph and is a conviction
    40  for an offense as defined in subparagraphs (i) [or], (ii), (iii) or (iv)
    41  of paragraph (k) of subdivision three of section 160.50 of this part, in
    42  which case the court shall presume that a conviction  by  plea  for  the
    43  aforementioned offenses was not knowing, voluntary and intelligent if it
    44  has  severe or ongoing consequences, including but not limited to poten-
    45  tial or actual  immigration  consequences,  and  shall  presume  that  a
    46  conviction  by verdict for the aforementioned offenses constitutes cruel
    47  and unusual punishment under section five of article one  of  the  state
    48  constitution,  based  on  those consequences. The people may rebut these
    49  presumptions.
    50    § 19. Intentionally omitted.
    51    § 19-a. Paragraphs (a) and (b) of subdivision 1 of  section  70.70  of
    52  the  penal law, as added by chapter 738 of the laws of 2004, are amended
    53  to read as follows:
    54    (a) "Felony drug offender" means a defendant who stands  convicted  of
    55  any  felony, defined in article two hundred twenty or two hundred [twen-
    56  ty-one] twenty-two of this chapter other than a class A felony.

        A. 1248--A                         91
 
     1    (b) "Second felony drug offender" means a second  felony  offender  as
     2  that  term  is defined in subdivision one of section 70.06 of this arti-
     3  cle, who stands convicted of any felony, defined in article two  hundred
     4  twenty or two hundred [twenty-one] twenty-two of this chapter other than
     5  a class A felony.
     6    §  19-b.  Paragraphs  (b) and (c) of subdivision 2 of section 70.70 of
     7  the penal law, paragraph (b) as amended by section 22 and paragraph  (c)
     8  as  amended by section 23 of part AAA of chapter 56 of the laws of 2009,
     9  are amended to read as follows:
    10    (b) Probation. Notwithstanding any other provision of law,  the  court
    11  may  sentence  a  defendant  convicted of a class B, class C, class D or
    12  class E felony offense defined in article  two  hundred  twenty  or  two
    13  hundred  [twenty-one] twenty-two of this chapter to probation in accord-
    14  ance with the provisions of sections 60.04 and 65.00 of this chapter.
    15    (c) Alternative definite sentence for class B, class C, class  D,  and
    16  class  E felonies. If the court, having regard to the nature and circum-
    17  stances of the crime and to the history and character of the  defendant,
    18  is  of the opinion that a sentence of imprisonment is necessary but that
    19  it would be unduly harsh to impose a determinate sentence upon a  person
    20  convicted  of  a  class  C, class D or class E felony offense defined in
    21  article two hundred twenty or two  hundred  [twenty-one]  twenty-two  of
    22  this  chapter, or a class B felony defined in article two hundred twenty
    23  of this chapter, other than the class B felony defined in section 220.48
    24  of this chapter, as added by a chapter of the laws of two thousand  nine
    25  the  court may impose a definite sentence of imprisonment and fix a term
    26  of one year or less.
    27    § 19-c. The opening paragraph of paragraph (b) and  paragraph  (e)  of
    28  subdivision  3  of section 70.70 of the penal law, the opening paragraph
    29  of paragraph (b) as amended by section 23 and paragraph (e) as added  by
    30  section 25 of part AAA of chapter 56 of the laws of 2009, are amended to
    31  read as follows:
    32    Except as provided in paragraphs (c), (d) and (e) of this subdivision,
    33  when the court has found pursuant to the provisions of section 400.21 of
    34  the  criminal  procedure  law  that  a defendant is a second felony drug
    35  offender who stands convicted of a class B, class C, class D or class  E
    36  felony  offense  defined  in  article  two hundred twenty or two hundred
    37  [twenty-one] twenty-two of this chapter the court shall impose a  deter-
    38  minate sentence of imprisonment. Such determinate sentence shall include
    39  as  a  part  thereof  a period of post-release supervision in accordance
    40  with section 70.45 of  this  article.  The  terms  of  such  determinate
    41  sentence  shall  be  imposed  by  the  court  in  whole or half years as
    42  follows:
    43    (e) Alternate definite sentence for class C, class D and class E felo-
    44  nies. If the court, having regard to the nature and circumstances of the
    45  crime and to the history and character of the defendant, is of the opin-
    46  ion that a sentence of imprisonment is necessary but that  it  would  be
    47  unduly harsh to impose a determinate sentence upon a person convicted of
    48  a  class  C,  class  D  or class E felony offense defined in article two
    49  hundred twenty or two hundred [twenty-one] twenty-two of  this  chapter,
    50  the  court may impose a definite sentence of imprisonment and fix a term
    51  of one year or less.
    52    § 19-d. The opening paragraph of paragraph (b)  of  subdivision  4  of
    53  section  70.70  of the penal law, as added by chapter 738 of the laws of
    54  2004, is amended to read as follows:
    55    When the court has found pursuant to the provisions of section  400.21
    56  of  the  criminal procedure law that a defendant is a second felony drug

        A. 1248--A                         92
 
     1  offender whose prior felony conviction was a violent felony, who  stands
     2  convicted  of  a  class  B,  class  C, class D or class E felony offense
     3  defined in article two hundred twenty or two hundred [twenty-one]  twen-
     4  ty-two of this chapter, the court shall impose a determinate sentence of
     5  imprisonment.  Such determinate sentence shall include as a part thereof
     6  a period of post-release supervision in accordance with section 70.45 of
     7  this article. The terms of such determinate sentence shall be imposed by
     8  the court in whole or half years as follows:
     9    § 20. Intentionally omitted.
    10    § 21. Intentionally omitted.
    11    § 22. Subdivision 1 of section 170.56 of the criminal  procedure  law,
    12  as  amended  by  chapter  360 of the laws of 1977, is amended to read as
    13  follows:
    14    1.  Upon or after arraignment in a local criminal court upon an infor-
    15  mation, a prosecutor's information or a misdemeanor complaint, where the
    16  sole remaining count or counts  charge  a  violation  or  violations  of
    17  section  [221.05,  221.10,  221.15,  221.35  or  221.40] 222.10, 222.15,
    18  222.25, 222.30, 222.45 or 222.50 of the penal law, or upon summons for a
    19  nuisance offense under section sixty-five-c of  the  alcoholic  beverage
    20  control  law  and  before  the  entry  of  a  plea  of guilty thereto or
    21  commencement of  a trial thereof, the court, upon motion of a defendant,
    22  may order that all proceedings be suspended and the action adjourned  in
    23  contemplation of dismissal, or upon a finding that adjournment would not
    24  be  necessary  or appropriate and the setting forth in the record of the
    25  reasons for such findings, may dismiss in  furtherance  of  justice  the
    26  accusatory  instrument;  provided, however, that the court may not order
    27  such adjournment in contemplation of dismissal or dismiss the accusatory
    28  instrument if: (a)  the  defendant  has  previously  been  granted  such
    29  adjournment  in  contemplation  of  dismissal,  or (b) the defendant has
    30  previously been granted a dismissal  under  this  section,  or  (c)  the
    31  defendant  has  previously  been  convicted  of  any  offense  involving
    32  controlled  substances,  or  (d)  the  defendant  has  previously   been
    33  convicted  of  a crime and the district attorney does not consent or (e)
    34  the defendant has previously been adjudicated a youthful offender on the
    35  basis of any  act  or  acts  involving  controlled  substances  and  the
    36  district attorney does not consent.  Notwithstanding the limitations set
    37  forth  in  this subdivision, the court may order that all proceedings be
    38  suspended and the action adjourned in contemplation of  dismissal  based
    39  upon a finding of exceptional circumstances. For purposes of this subdi-
    40  vision, exceptional circumstances exist when, regardless of the ultimate
    41  disposition  of  the  case,  the  entry of a plea of guilty is likely to
    42  result in severe or ongoing consequences, including, but not limited to,
    43  potential or actual immigration consequences.
    44    § 23. Intentionally omitted.
    45    § 24. The criminal procedure law is amended by adding  a  new  section
    46  440.46-a to read as follows:
    47  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    48              offenses.
    49    1. When a person is serving a sentence for a conviction in this state,
    50  whether  by  trial  verdict  or  guilty  plea,  under former article two
    51  hundred twenty-one of the  penal  law,  and  such  persons'  conduct  as
    52  alleged  in the accusatory instrument and/or shown by the guilty plea or
    53  trial verdict would not have been a  crime  under  article  two  hundred
    54  twenty-two  of  the  penal  law, had such article two hundred twenty-two
    55  rather than former article two hundred twenty-one of the penal law  been
    56  in  effect  at  the  time of such conduct, then the chief administrative

        A. 1248--A                         93
 
     1  judge of the state of New York shall, in accordance with  this  section,
     2  automatically  vacate, dismiss and expunge such conviction in accordance
     3  with section 160.50 of this chapter, and the office  of  court  adminis-
     4  tration  shall immediately notify the state division of criminal justice
     5  services, state department of corrections and community supervision  and
     6  the  appropriate  local  correctional  facility  which shall immediately
     7  effectuate the appropriate relief. Such notification to the division  of
     8  criminal  justice services shall also direct that such agency notify all
     9  relevant police and law enforcement agencies of their  duty  to  destroy
    10  and/or  mark  records  related  to  such case in accordance with section
    11  160.50 of this chapter. Nothing in this section shall prevent  a  person
    12  who  believes  his  or  her  sentence  is required by this section to be
    13  vacated, dismissed and/or expunged from filing a petition with the court
    14  to effectuate all appropriate relief.
    15    2. (a) When a person is serving or has completed  serving  a  sentence
    16  for a conviction in this state, whether by trial verdict or guilty plea,
    17  under  former  article two hundred twenty-one of the penal law, and such
    18  person's conduct as alleged in the accusatory instrument and/or shown by
    19  the guilty plea or trial verdict, or shown  by  other  information:  (i)
    20  would  not have been a crime under article two hundred twenty-two of the
    21  penal law, had such article two hundred twenty-two  rather  than  former
    22  article  two  hundred  twenty-one of the penal law been in effect at the
    23  time of such conduct; or (ii) under such circumstances such person would
    24  have been guilty of a lesser or potentially less onerous  offense  under
    25  such article two hundred twenty-two than such former article two hundred
    26  twenty-one  of the penal law; then such person may petition the court of
    27  conviction pursuant to this article for vacatur of such conviction.
    28    (b) (i) Upon receiving a served and filed motion under  paragraph  (a)
    29  of this subdivision, the court shall presume that any conviction by plea
    30  was  not  knowing,  voluntary and intelligent and that any conviction by
    31  verdict and any accompanying  sentence  constitutes  cruel  and  unusual
    32  punishment  under the state constitution if either has severe or ongoing
    33  consequences, including but not limited to  potential  or  actual  immi-
    34  gration  consequences;  and  the  court  shall  further presume that the
    35  movant satisfies the criteria in such paragraph (a) and  thereupon  make
    36  such  finding  and  grant  the  motion to vacate such conviction on such
    37  grounds in a written order unless the party opposing the motion  proves,
    38  by  clear  and convincing evidence, that the movant does not satisfy the
    39  criteria to bring such motion.  (ii) If the petition meets the  criteria
    40  in  subparagraph  (i)  of  paragraph  (a) of this subdivision, the court
    41  after affording the parties an  opportunity  to  be  heard  and  present
    42  evidence,  may  substitute, unless it is not in the interests of justice
    43  to do so, a conviction for an appropriate lesser offense  under  article
    44  two hundred twenty-two of the penal law.
    45    (c)  In  the event of any vacatur and/or substitution pursuant to this
    46  subdivision, the office of court administration shall immediately notify
    47  the state division of criminal justice services concerning such determi-
    48  nation. Such notification to the division of criminal  justice  services
    49  shall  also  direct  that such agency notify all relevant police and law
    50  enforcement agencies of  their  duty  to  destroy  and/or  mark  records
    51  related  to  such case in accordance with section 160.50 of this chapter
    52  or, where conviction for a crime is substituted pursuant to this  subdi-
    53  vision, update such agencies' records accordingly.
    54    3.  Under  no circumstances may substitution under this section result
    55  in the imposition of a term of imprisonment or  sentencing  term,  obli-
    56  gation  or condition that is in any way either harsher than the original

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

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     1  sale of a controlled substance in the first degree as defined in section
     2  220.43 of the penal law, criminally possessing a  hypodermic  instrument
     3  as  defined  in  section  220.45  of  the  penal law, criminal sale of a
     4  prescription  for  a controlled substance or a controlled substance by a
     5  practitioner or pharmacist as defined in section  220.65  of  the  penal
     6  law,  criminal  possession  of methamphetamine manufacturing material in
     7  the second degree as defined in section 220.70 of the penal law,  crimi-
     8  nal  possession  of  methamphetamine manufacturing material in the first
     9  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
    10  possession of precursors of methamphetamine as defined in section 220.72
    11  of  the  penal law, unlawful manufacture of methamphetamine in the third
    12  degree as defined in section 220.73 of the penal law, unlawful  manufac-
    13  ture  of  methamphetamine  in  the  second  degree as defined in section
    14  220.74 of the penal law, unlawful manufacture of methamphetamine in  the
    15  first  degree  as  defined  in section 220.75 of the penal law, unlawful
    16  disposal of methamphetamine laboratory material as  defined  in  section
    17  220.76  of  the penal law, operating as a major trafficker as defined in
    18  section 220.77 of the penal law, [criminal possession  of  marihuana  in
    19  the first degree as defined in section 221.30 of the penal law, criminal
    20  sale  of  marihuana  in the first degree as defined in section 221.55 of
    21  the penal law,] promoting gambling in the second degree  as  defined  in
    22  section  225.05 of the penal law, promoting gambling in the first degree
    23  as defined in section 225.10 of the penal law,  possession  of  gambling
    24  records  in  the second degree as defined in section 225.15 of the penal
    25  law, possession of gambling records in the first degree  as  defined  in
    26  section  225.20 of the penal law, and possession of a gambling device as
    27  defined in section 225.30 of the penal law;
    28    § 26. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
    29  9 of section 1310 of the civil practice law and  rules,  paragraphs  (b)
    30  and  (c)  of subdivision 4-b as added by chapter 655 of the laws of 1990
    31  and subdivisions 6 and 9 as added by chapter 669 of the  laws  of  1984,
    32  are amended to read as follows:
    33    (b)  on  three  or  more occasions, engaging in conduct constituting a
    34  violation of any of the felonies  defined  in  section  220.09,  220.16,
    35  220.18,  220.21, 220.31, 220.34, 220.39, 220.41[,] or 220.43 [or 221.55]
    36  of the penal law, which violations do not constitute a  single  criminal
    37  offense  as  defined in subdivision one of section 40.10 of the criminal
    38  procedure law, or a single criminal transaction, as defined in paragraph
    39  (a) of subdivision two of section 40.10 of the criminal  procedure  law,
    40  and  at  least one of which resulted in a conviction of such offense, or
    41  where the accusatory instrument charges one or more  of  such  felonies,
    42  conviction  upon  a  plea  of  guilty to a felony for which such plea is
    43  otherwise authorized by law; or
    44    (c) a conviction of a  person  for  a  violation  of  section  220.09,
    45  220.16,  220.34 or 220.39 of the penal law, [or a conviction of a crimi-
    46  nal defendant for a violation of section 221.30 of the  penal  law,]  or
    47  where the accusatory instrument charges any such felony, conviction upon
    48  a  plea of guilty to a felony for which the plea is otherwise authorized
    49  by law, together with evidence which: (i) provides  substantial  indicia
    50  that  the  defendant  used  the  real property to engage in a continual,
    51  ongoing course of conduct involving the  unlawful  mixing,  compounding,
    52  manufacturing,  warehousing,  or  packaging of controlled substances [or
    53  where the conviction is for a violation of section 221.30 of  the  penal
    54  law,  marijuana,]  as part of an illegal trade or business for gain; and
    55  (ii) establishes, where the conviction is for possession of a controlled
    56  substance [or where the conviction is for a violation of section  221.30

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

        A. 1248--A                         97
 
     1  sections 220.06, 220.09, 220.16, 220.18 and 220.21; criminal sale  of  a
     2  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
     3  220.41, 220.43 and 220.44; criminal sale of [marijuana] cannabis  pursu-
     4  ant  to  sections [221.45, 221.50 and 221.55] 222.55, 222.60 and 222.65;
     5  riot in the first degree, aggravated harassment  in  the  first  degree,
     6  criminal  nuisance in the first degree and falsely reporting an incident
     7  in the second or first degree pursuant to article two hundred forty; and
     8  crimes against public safety pursuant to article two hundred  sixty-five
     9  of the penal law.
    10    §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
    11  business law is REPEALED.
    12    § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
    13  business  law, as amended by chapter 812 of the laws of 1980, is amended
    14  to read as follows:
    15    (h) Objects, used or designed for the purpose of ingesting,  inhaling,
    16  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
    17  into the human body.
    18    § 30. Subdivision 7 of section 995 of the executive law, as amended by
    19  chapter 19 of the laws of 2012, is amended to read as follows:
    20    7.  "Designated  offender"  means  a  person  convicted  of any felony
    21  defined in any chapter of the laws  of  the  state  or  any  misdemeanor
    22  defined  in  the  penal  law  [except that where the person is convicted
    23  under section 221.10 of the penal law, only  a  person  convicted  under
    24  subdivision two of such section, or a person convicted under subdivision
    25  one  of  such  section  who  stands previously convicted of any crime as
    26  defined in subdivision six of section 10.00 of the penal law].
    27    § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
    28  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    29  56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
    30  laws of 1990, are amended to read as follows:
    31    (b) three or more violations of any of the felonies defined in section
    32  220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
    33  220.43[,] or 220.77[, or 221.55] of this chapter,  which  violations  do
    34  not  constitute  a single criminal offense as defined in subdivision one
    35  of section 40.10 of the criminal procedure law,  or  a  single  criminal
    36  transaction,  as  defined in paragraph (a) of subdivision two of section
    37  40.10 of the criminal procedure law, and at least one of which  resulted
    38  in  a  conviction  of  such  offense, or where the accusatory instrument
    39  charges one or more of such felonies, conviction upon a plea  of  guilty
    40  to a felony for which such plea is otherwise authorized by law; or
    41    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    42  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
    43  accusatory instrument charges any such felony, conviction upon a plea of
    44  guilty  to  a  felony for which the plea is otherwise authorized by law,
    45  together with evidence which: (i) provides substantial indicia that  the
    46  defendant  used  the  real  property  to  engage in a continual, ongoing
    47  course of conduct involving the unlawful mixing,  compounding,  manufac-
    48  turing, warehousing, or packaging of controlled substances [or where the
    49  conviction  is  for a violation of section 221.30 of this chapter, mari-
    50  juana] as part of an illegal trade or business for gain; and (ii) estab-
    51  lishes, where the conviction is for possession of a controlled substance
    52  [or where the conviction is for a violation of section  221.30  of  this
    53  chapter,  marijuana],  that  such possession was with the intent to sell
    54  it.

        A. 1248--A                         98
 
     1    § 32. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
     2  and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
     3  amended to read as follows:
     4    (c)  The  offenses referred to in subparagraph (i) of paragraph (b) of
     5  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
     6  of this section that result in disqualification for  a  period  of  five
     7  years  shall include a conviction under sections 100.10, 105.13, 115.05,
     8  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
     9  125.40,  125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55, 140.17,
    10  140.25, 140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06,  220.09,
    11  220.16, 220.31, 220.34, 220.60, 220.65, [221.30, 221.50, 221.55,] subdi-
    12  vision two of section 222.50, subdivision two of section 222.55, 230.00,
    13  230.05,  230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05, 235.06,
    14  235.07, 235.21, 240.06,  245.00,  260.10,  subdivision  two  of  section
    15  260.20  and  sections  260.25,  265.02,  265.03, 265.08, 265.09, 265.10,
    16  265.12, 265.35 of the penal law or an attempt to commit any of the afor-
    17  esaid offenses under section 110.00 of the penal  law,  or  any  similar
    18  offenses  committed  under  a  former  section  of the penal law, or any
    19  offenses committed under a former section of the penal law  which  would
    20  constitute violations of the aforesaid sections of the penal law, or any
    21  offenses  committed outside this state which would constitute violations
    22  of the aforesaid sections of the penal law.
    23    § 33. Intentionally omitted.
    24    § 33-a. Subdivision 1 of section 1227 of the vehicle and traffic  law,
    25  as  amended by section 3 of part F of chapter 60 of the laws of 2005, is
    26  amended to read as follows:
    27    1.  The drinking of alcoholic beverages or consumption of cannabis, or
    28  the possession of an open container containing an alcoholic beverage, in
    29  a motor vehicle located upon the public highways or right-of-way  public
    30  highway  is prohibited. Any operator or passenger violating this section
    31  shall be guilty of a traffic infraction.
    32    The provisions of this section shall not be  deemed  to  prohibit  the
    33  drinking  of  alcoholic  beverages, the consumption of cannabis by means
    34  other than burning, or the possession of an open container containing an
    35  alcoholic beverage by passengers in passenger vehicles operated pursuant
    36  to a certificate or permit issued by the department of transportation or
    37  the United  States  department  of  transportation.    Furthermore,  the
    38  provisions  of  this  section  shall  not  be  deemed  to  prohibit  the
    39  possession of wine  which  is:  (a)  resealed  in  accordance  with  the
    40  provisions  of  subdivision  four of section eighty-one of the alcoholic
    41  beverage control law; and (b) is transported in the vehicle's  trunk  or
    42  is  transported  behind the last upright seat or in an area not normally
    43  occupied by the driver or passenger in  a  motor  vehicle  that  is  not
    44  equipped with a trunk.
    45    §  34. The article heading of article 20-B of the tax law, as added by
    46  chapter 90 of the laws of 2014, is amended to read as follows:
    47                  EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
    48    § 35. Subdivision 1 of section 171-a of the tax  law,  as  amended  by
    49  section  3  of  part XX of chapter 59 of the laws of 2019, is amended to
    50  read as follows:
    51    1. All taxes, interest, penalties and fees collected  or  received  by
    52  the commissioner or the commissioner's duly authorized agent under arti-
    53  cles nine (except section one hundred eighty-two-a thereof and except as
    54  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    55  twelve-A (except as otherwise provided in section  two  hundred  eighty-
    56  four-d  thereof),  thirteen, thirteen-A (except as otherwise provided in

        A. 1248--A                         99
 
     1  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
     2  (except  as otherwise provided in section four hundred eighty-two there-
     3  of), twenty-B, twenty-C, twenty-D, twenty-one, twenty-two,  twenty-four,
     4  twenty-six, twenty-eight (except as otherwise provided in section eleven
     5  hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
     6  nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
     7  hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
     8  chapter shall be deposited daily in one account  with  such  responsible
     9  banks,  banking  houses  or  trust companies as may be designated by the
    10  comptroller, to the credit of the comptroller. Such an  account  may  be
    11  established  in one or more of such depositories. Such deposits shall be
    12  kept separate and apart from all other money in the  possession  of  the
    13  comptroller.  The  comptroller  shall require adequate security from all
    14  such depositories. Of the total revenue collected or received under such
    15  articles of this chapter, the comptroller  shall  retain  in  the  comp-
    16  troller's  hands  such  amount  as  the commissioner may determine to be
    17  necessary for refunds or reimbursements  under  such  articles  of  this
    18  chapter  out  of  which  amount the comptroller shall pay any refunds or
    19  reimbursements to which taxpayers shall be entitled under the provisions
    20  of such articles of this chapter. The commissioner and  the  comptroller
    21  shall  maintain  a  system  of  accounts  showing  the amount of revenue
    22  collected or received from each of the taxes imposed by  such  articles.
    23  The  comptroller,  after  reserving  the  amount  to pay such refunds or
    24  reimbursements, shall, on or before the tenth day  of  each  month,  pay
    25  into  the  state  treasury to the credit of the general fund all revenue
    26  deposited under this section during the  preceding  calendar  month  and
    27  remaining  to the comptroller's credit on the last day of such preceding
    28  month, (i) except that the comptroller shall pay to the state department
    29  of social services that amount of overpayments of tax imposed by article
    30  twenty-two of this chapter and the interest  on  such  amount  which  is
    31  certified  to  the  comptroller  by the commissioner as the amount to be
    32  credited against past-due support pursuant to subdivision six of section
    33  one hundred seventy-one-c of this article,  (ii)  and  except  that  the
    34  comptroller  shall  pay  to the New York state higher education services
    35  corporation and the state university of New York or the city  university
    36  of  New  York respectively that amount of overpayments of tax imposed by
    37  article twenty-two of this chapter and the interest on such amount which
    38  is certified to the comptroller by the commissioner as the amount to  be
    39  credited  against  the  amount  of  defaults  in repayment of guaranteed
    40  student loans and state university loans or city university loans pursu-
    41  ant to subdivision five of section one hundred seventy-one-d and  subdi-
    42  vision  six  of section one hundred seventy-one-e of this article, (iii)
    43  and except further that, notwithstanding any law, the comptroller  shall
    44  credit   to   the   revenue   arrearage  account,  pursuant  to  section
    45  ninety-one-a of the state finance law, that amount of overpayment of tax
    46  imposed by article nine, nine-A, twenty-two, thirty, thirty-A,  thirty-B
    47  or  thirty-three  of  this  chapter,  and any interest thereon, which is
    48  certified to the comptroller by the commissioner as  the  amount  to  be
    49  credited  against  a  past-due  legally enforceable debt owed to a state
    50  agency pursuant to paragraph (a)  of  subdivision  six  of  section  one
    51  hundred seventy-one-f of this article, provided, however, he shall cred-
    52  it  to the special offset fiduciary account, pursuant to section ninety-
    53  one-c of the state finance law, any such amount creditable as a  liabil-
    54  ity  as  set  forth  in  paragraph (b) of subdivision six of section one
    55  hundred seventy-one-f of this article, (iv) and except further that  the
    56  comptroller shall pay to the city of New York that amount of overpayment

        A. 1248--A                         100
 
     1  of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
     2  thirty-B or thirty-three of this chapter and any interest  thereon  that
     3  is  certified to the comptroller by the commissioner as the amount to be
     4  credited  against city of New York tax warrant judgment debt pursuant to
     5  section one hundred  seventy-one-l  of  this  article,  (v)  and  except
     6  further  that  the  comptroller shall pay to a non-obligated spouse that
     7  amount of overpayment of tax imposed by article twenty-two of this chap-
     8  ter and the interest on such amount which has been credited pursuant  to
     9  section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
    10  hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
    11  ty-one-l  of  this  article and which is certified to the comptroller by
    12  the commissioner as the amount due such non-obligated spouse pursuant to
    13  paragraph six of subsection (b) of section six hundred fifty-one of this
    14  chapter; and (vi) the comptroller shall deduct a like amount  which  the
    15  comptroller  shall  pay  into  the treasury to the credit of the general
    16  fund from amounts subsequently  payable  to  the  department  of  social
    17  services,  the  state university of New York, the city university of New
    18  York, or the higher  education  services  corporation,  or  the  revenue
    19  arrearage  account  or  special  offset  fiduciary  account  pursuant to
    20  section ninety-one-a or ninety-one-c of the state finance  law,  as  the
    21  case  may be, whichever had been credited the amount originally withheld
    22  from such overpayment, and (vii)  with  respect  to  amounts  originally
    23  withheld  from such overpayment pursuant to section one hundred seventy-
    24  one-l of this article and paid to the city of New York, the  comptroller
    25  shall collect a like amount from the city of New York.
    26    § 36. Intentionally omitted.
    27    §  37.  Section 490 of the tax law, as added by chapter 90 of the laws
    28  of 2014, is amended to read as follows:
    29    § 490. [Definitions] Excise tax on medical  cannabis.    1.  (a)  [All
    30  definitions  of terms applicable to title five-A of article thirty-three
    31  of the public health law shall apply to this article.] For  purposes  of
    32  this  article,  the terms "medical cannabis," "registered organization,"
    33  "certified patient," and "designated  caregiver"  shall  have  the  same
    34  definitions as in section three of the cannabis law.
    35    (b)  As used in this section, where not otherwise specifically defined
    36  and unless a different meaning is clearly required "gross receipt" means
    37  the amount received in or by reason of any sale, conditional  or  other-
    38  wise, of medical [marihuana] cannabis or in or by reason of the furnish-
    39  ing of medical [marihuana] cannabis from the sale of medical [marihuana]
    40  cannabis provided by a registered organization to a certified patient or
    41  designated caregiver.  Gross receipt is expressed in money, whether paid
    42  in  cash,  credit or property of any kind or nature, and shall be deter-
    43  mined without any deduction therefrom on account  of  the  cost  of  the
    44  service  sold  or the cost of materials, labor or services used or other
    45  costs, interest or discount paid,  or  any  other  expenses  whatsoever.
    46  "Amount received" for the purpose of the definition of gross receipt, as
    47  the term gross receipt is used throughout this article, means the amount
    48  charged for the provision of medical [marihuana] cannabis.
    49    2.  There  is  hereby imposed an excise tax on the gross receipts from
    50  the sale of medical [marihuana] cannabis by a registered organization to
    51  a certified patient or designated caregiver, to be paid  by  the  regis-
    52  tered  organization,  at  the  rate of seven percent. The tax imposed by
    53  this article shall be charged against and  be  paid  by  the  registered
    54  organization and shall not be added as a separate charge or line item on
    55  any sales slip, invoice, receipt or other statement or memorandum of the
    56  price given to the retail customer.

        A. 1248--A                         101

     1    3.  The  commissioner  may  make,  adopt and amend rules, regulations,
     2  procedures and forms necessary for the  proper  administration  of  this
     3  article.
     4    4. Every registered organization that makes sales of medical [marihua-
     5  na]  cannabis  subject  to  the tax imposed by this article shall, on or
     6  before the twentieth date of each month, file with  the  commissioner  a
     7  return  on  forms  to  be  prescribed  by  the commissioner, showing its
     8  receipts from the retail sale of medical [marihuana] cannabis during the
     9  preceding calendar month and the amount of tax due thereon. Such returns
    10  shall contain such further information as the commissioner may  require.
    11  Every  registered  organization  required  to  file  a return under this
    12  section shall, at the time of filing such return, pay to the commission-
    13  er the total amount of tax due on its retail sales of medical  [marihua-
    14  na]  cannabis  for the period covered by such return. If a return is not
    15  filed when due, the tax shall be due on the day on which the  return  is
    16  required to be filed.
    17    5.  Whenever the commissioner shall determine that any moneys received
    18  under the provisions of this article were paid in error,  he  may  cause
    19  the  same  to  be refunded, with interest, in accordance with such rules
    20  and regulations as he may prescribe, except that no  interest  shall  be
    21  allowed  or  paid  if  the amount thereof would be less than one dollar.
    22  Such interest shall be at the overpayment rate set by  the  commissioner
    23  pursuant  to subdivision twenty-sixth of section one hundred seventy-one
    24  of this chapter, or if no rate is set, at the rate of  six  percent  per
    25  annum,  from  the  date when the tax, penalty or interest to be refunded
    26  was paid to a date preceding the date of the refund check  by  not  more
    27  than  thirty  days.  Provided,  however,  that  for the purposes of this
    28  subdivision, any tax paid before the last day prescribed for its payment
    29  shall be deemed to have been paid on such last day. Such moneys received
    30  under the provisions of this article which the commissioner shall deter-
    31  mine were paid in error, may be refunded out of funds in the custody  of
    32  the  comptroller  to  the  credit  of such taxes provided an application
    33  therefor is filed with the commissioner within two years from  the  time
    34  the erroneous payment was made.
    35    6.  The provisions of article twenty-seven of this chapter shall apply
    36  to the tax imposed by this article in the same manner and with the  same
    37  force  and  effect  as if the language of such article had been incorpo-
    38  rated in full into this section and had expressly referred  to  the  tax
    39  imposed by this article, except to the extent that any provision of such
    40  article  is  either  inconsistent with a provision of this article or is
    41  not relevant to this article.
    42    7. All taxes, interest and penalties  collected  or  received  by  the
    43  commissioner  under  this  article  shall  be  deposited and disposed of
    44  pursuant to the provisions of section one hundred seventy-one-a of  this
    45  chapter,  provided that an amount equal to one hundred percent collected
    46  under this article less any amount determined by the commissioner to  be
    47  reserved  by the comptroller for refunds or reimbursements shall be paid
    48  by the comptroller to the credit of  the  medical  [marihuana]  cannabis
    49  trust  fund  established  by  section eighty-nine-h of the state finance
    50  law.
    51    8. A registered organization that dispenses medical [marihuana] canna-
    52  bis shall provide to the department information  on  where  the  medical
    53  [marihuana]  cannabis  was  dispensed  and where the medical [marihuana]
    54  cannabis was manufactured. A registered organization that obtains [mari-
    55  huana] cannabis from another registered organization shall  obtain  from

        A. 1248--A                         102
 
     1  such  registered organization information on where the medical [marihua-
     2  na] cannabis was manufactured.
     3    §  38.  Section 491 of the tax law, as added by chapter 90 of the laws
     4  of 2014, subdivision 1 as amended by section 1 of part II of chapter  60
     5  of the laws of 2016, is amended to read as follows:
     6    § 491. Returns to be secret. 1. Except in accordance with proper judi-
     7  cial  order or as in this section or otherwise provided by law, it shall
     8  be unlawful for the commissioner, any officer or employee of the depart-
     9  ment, or any officer or person who, pursuant to this section, is permit-
    10  ted to inspect any return or report or to whom a copy, an abstract or  a
    11  portion of any return or report is furnished, or to whom any information
    12  contained in any return or report is furnished, or any person engaged or
    13  retained  by  such  department  on  an independent contract basis or any
    14  person who in any manner may acquire knowledge  of  the  contents  of  a
    15  return or report filed pursuant to this article to divulge or make known
    16  in  any  manner  the  contents  or any other information relating to the
    17  business of a distributor, owner or other person contained in any return
    18  or report required under this article. The  officers  charged  with  the
    19  custody  of such returns or reports shall not be required to produce any
    20  of them or evidence of anything contained  in  them  in  any  action  or
    21  proceeding  in  any  court,  except  on  behalf of the state, [the state
    22  department of health] office of cannabis management, or the commissioner
    23  in an action or proceeding under the provisions of this  chapter  or  on
    24  behalf  of the state or the commissioner in any other action or proceed-
    25  ing involving the collection of a tax due under this  chapter  to  which
    26  the  state  or the commissioner is a party or a claimant or on behalf of
    27  any party to any action or proceeding under the provisions of this arti-
    28  cle, when the returns or the reports or  the  facts  shown  thereby  are
    29  directly  involved  in  such  action  or  proceeding, or in an action or
    30  proceeding relating to the regulation or taxation of medical [marihuana]
    31  cannabis on behalf of officers  to  whom  information  shall  have  been
    32  supplied as provided in subdivision two of this section, in any of which
    33  events  the  court  may  require  the  production  of,  and may admit in
    34  evidence so much of said returns or reports or of the facts shown there-
    35  by as are pertinent to the action or proceeding  and  no  more.  Nothing
    36  herein  shall  be  construed to prohibit the commissioner, in his or her
    37  discretion, from allowing the inspection or delivery of a certified copy
    38  of any return or report filed under this article or of  any  information
    39  contained  in any such return or report by or to a duly authorized offi-
    40  cer or employee of the [state department of health] office  of  cannabis
    41  management;  or  by  or to the attorney general or other legal represen-
    42  tatives of the state when an  action  shall  have  been  recommended  or
    43  commenced  pursuant  to this chapter in which such returns or reports or
    44  the facts shown thereby are directly involved; or the inspection of  the
    45  returns  or  reports  required  under this article by the comptroller or
    46  duly designated officer or employee of the state department of audit and
    47  control, for purposes of the audit of a refund of  any  tax  paid  by  a
    48  registered  organization  or  other  person  under  this article; nor to
    49  prohibit the delivery to a registered organization, or a duly authorized
    50  representative of such registered organization, a certified copy of  any
    51  return  or report filed by such registered organization pursuant to this
    52  article, nor to prohibit the publication of statistics so classified  as
    53  to  prevent  the identification of particular returns or reports and the
    54  items thereof. This section shall also not be construed to prohibit  the
    55  disclosure,  for  tax  administration  purposes,  to the division of the
    56  budget and the office of the state comptroller,  of  information  aggre-

        A. 1248--A                         103
 
     1  gated  from the returns filed by all the registered organizations making
     2  sales of, or manufacturing, medical [marihuana] cannabis in a  specified
     3  county,  whether  the  number of such registered organizations is one or
     4  more.  Provided  further  that,  notwithstanding  the provisions of this
     5  subdivision, the commissioner may, in his or her discretion, permit  the
     6  proper  officer of any county entitled to receive an allocation, follow-
     7  ing appropriation by the  legislature,  pursuant  to  this  article  and
     8  section eighty-nine-h of the state finance law, or the authorized repre-
     9  sentative  of such officer, to inspect any return filed under this arti-
    10  cle, or may furnish to such officer or the officer's  authorized  repre-
    11  sentative  an abstract of any such return or supply such officer or such
    12  representative with information concerning an item contained in any such
    13  return, or disclosed by any investigation of tax  liability  under  this
    14  article.
    15    2.  The  commissioner,  in  his or her discretion and pursuant to such
    16  rules and regulations as he or she may adopt, may  permit  [the  commis-
    17  sioner  of  internal  revenue  of the United States, or] the appropriate
    18  officers of any other state which regulates or taxes medical [marihuana]
    19  cannabis, or the duly authorized representatives of  such  [commissioner
    20  or of any such] officers, to inspect returns or reports made pursuant to
    21  this  article,  or may furnish to such [commissioner or] other officers,
    22  or duly authorized representatives, a copy of any such return or  report
    23  or  an  abstract  of  the  information therein contained, or any portion
    24  thereof, or may supply [such commissioner or] any such officers or  such
    25  representatives  with  information  relating to the business of a regis-
    26  tered organization making returns or reports hereunder. The commissioner
    27  may refuse to supply information pursuant to this  subdivision  [to  the
    28  commissioner  of  internal revenue of the United States or] to the offi-
    29  cers of any other state if the statutes [of the United  States,  or]  of
    30  the state represented by such officers, do not grant substantially simi-
    31  lar privileges to the commissioner, but such refusal shall not be manda-
    32  tory. Information shall not be supplied to [the commissioner of internal
    33  revenue  of  the United States or] the appropriate officers of any other
    34  state which regulates or taxes medical [marihuana] cannabis, or the duly
    35  authorized representatives [of such commissioner  or]  of  any  of  such
    36  officers,  unless  such [commissioner,] officer or other representatives
    37  shall agree not to divulge or make known in any manner  the  information
    38  so  supplied,  but  such officers may transmit such information to their
    39  employees or legal representatives when necessary, who in turn shall  be
    40  subject  to  the  same  restrictions  as  those hereby imposed upon such
    41  [commissioner,] officer or other representatives.
    42    3. (a) Any officer or employee of the state who willfully violates the
    43  provisions of subdivision one or two of this section shall be  dismissed
    44  from  office and be incapable of holding any public office in this state
    45  for a period of five years thereafter.
    46    (b) Cross-reference: For criminal penalties, see article  thirty-seven
    47  of this chapter.
    48    §  39.  The tax law is amended by adding a new article 20-C to read as
    49  follows:
    50                                ARTICLE 20-C
    51                     TAX ON ADULT-USE CANNABIS PRODUCTS
    52  Section 492. Definitions.
    53          493. Imposition of tax.
    54          494. Registration and renewal.
    55          495. Returns and payment of tax.
    56          496. Records to be kept; penalties.

        A. 1248--A                         104
 
     1          496-a. Returns to be secret.
     2          496-b. Administrative provisions.
     3          496-c. Illicit cannabis penalty.
     4    §  492. Definitions. For purposes of this article, the following defi-
     5  nitions shall apply:
     6    (a) "Adult-use cannabis product" or "adult-use cannabis" has the  same
     7  meaning as the term is defined in section three of the cannabis law. For
     8  purposes  of this article, under no circumstances shall adult-use canna-
     9  bis product include medical cannabis  or  cannabinoid  hemp  product  as
    10  defined in section three of the cannabis law.
    11    (b)  "Cannabis"  means all parts of the a plant of the genus cannabis,
    12  whether growing or not; the seeds thereof; the resin extracted from  any
    13  part  of  the  plant; and every compound, manufacture, salt, derivative,
    14  mixture, or preparation of the plant, its seeds or resin.  For  purposes
    15  of  this article, cannabis does not include medical cannabis or cannabi-
    16  noid hemp product as defined in section three of the cannabis law.
    17    (c) "Cannabis edible  product"  means  a  product,  containing  either
    18  cannabis  or  concentrated  cannabis and other ingredients, intended for
    19  use or consumption  through  ingestion,  including  sublingual  or  oral
    20  absorption.
    21    (d)  "Cannabis flower" means the flower of a plant of the genus canna-
    22  bis that has been harvested, dried and cured but has not  undergone  any
    23  processing whereby the plant material is transformed into a concentrate,
    24  including,  but not limited to, concentrated cannabis, or into an edible
    25  or topical product containing  cannabis  or  concentrated  cannabis  and
    26  other ingredients. Cannabis flower excludes leaves and stem.
    27    (e)  "Concentrated  cannabis"  has  the  same  meaning  as the term is
    28  defined in section three of the cannabis law.
    29    (f) "Distributor" has the same meaning  as  the  term  is  defined  in
    30  section three of the cannabis law.
    31    (g)  "Illicit  cannabis"  means  and includes cannabis flower, concen-
    32  trated cannabis, cannabis edible product and cannabis plant on which any
    33  tax required to have been paid under this chapter  has  not  been  paid.
    34  Illicit  cannabis  shall  not include any cannabis lawfully possessed in
    35  accordance with the cannabis law or penal law.
    36    (h) "Cannabis plant" means cannabis that has not  been  harvested,  or
    37  undergone processing, drying or curing.
    38    (i)  "Person"  means  every individual, partnership, limited liability
    39  company, society, association, joint stock company, corporation, estate,
    40  receiver, trustee, assignee, referee, and any other person acting  in  a
    41  fiduciary  or  representative  capacity, whether appointed by a court or
    42  otherwise, and any combination of the foregoing.
    43    (j) "Sale" means any transfer of title, possession or  both,  exchange
    44  or  barter,  rental, lease or license to use or consume, conditional, or
    45  otherwise, in any manner or by any means whatsoever for a  consideration
    46  or any agreement therefor.
    47    (k)  "Total  THC"  has the same meaning as the term defined in section
    48  three of the cannabis law.
    49    § 493. Imposition of tax.   (a) There  is  hereby  imposed  a  tax  on
    50  adult-use  cannabis products sold by a distributor to a person who sells
    51  adult-use cannabis products at retail at the following rates:
    52    (1) cannabis flower at the rate of five-tenths of one cent per  milli-
    53  gram of the amount of total THC, as reflected on the product label;
    54    (2)  concentrated cannabis at the rate of eight-tenths of one cent per
    55  milligram of the amount of total THC, as reflected on the product label;
    56  and

        A. 1248--A                         105
 
     1    (3) cannabis edible product at the rate of three cents  per  milligram
     2  of  the amount of total THC, as reflected on the product label. This tax
     3  shall accrue at the time of such sale or transfer. Where  a  person  who
     4  distributes  adult-use  cannabis is licensed under the cannabis law as a
     5  microbusiness  or  registered  organization, such person shall be liable
     6  for the tax, and such tax shall accrue at the time of the retail sale.
     7    (b) In addition to any other tax imposed by this chapter or other law,
     8  there is hereby imposed a tax of nine percent of the amount charged  for
     9  the sale or transfer of adult-use cannabis products to a retail customer
    10  by  a  person who sells adult-use cannabis products at retail.  This tax
    11  is imposed on the person who sells  adult-use  cannabis  at  retail  and
    12  shall accrue at the time of such sale or transfer.
    13    (c)  In  addition  to the taxes imposed by subdivisions (a) and (b) of
    14  this section, there is hereby imposed a tax on the sale or  transfer  of
    15  adult-use  cannabis products  to a retail customer by a person who sells
    16  adult-use cannabis products at retail at the rate of four percent of the
    17  amount charged by such   person   for such adult-use  cannabis  product,
    18  which  tax  shall  accrue  at the time of such sale or transfer. The tax
    19  imposed by this subdivision is imposed on a person who  sells  adult-use
    20  cannabis  products  at  retail, and shall be paid to the commissioner in
    21  trust for and on account of a city having a population of a  million  or
    22  more,  and  counties  (other  than  counties wholly within such a city),
    23  towns, villages, and cities with a population of less than a million  in
    24  which a retail dispensary is located.
    25    (d)  The  taxes  imposed  by  this section shall not apply to sales of
    26  adult-use cannabis to a person holding a cannabis research license under
    27  section thirty-nine of the cannabis law.
    28    § 494. Registration and renewal.  (a) (i) Every  distributor  on  whom
    29  tax  is  imposed under this article and every person who sells adult-use
    30  cannabis products at retail must file with the commissioner  a  properly
    31  completed  application for a certificate of registration before engaging
    32  in business. An application for a certificate of  registration  must  be
    33  submitted  electronically, on a form prescribed by the commissioner, and
    34  must be accompanied by a non-refundable application fee of  six  hundred
    35  dollars. A certificate of registration shall not be assignable or trans-
    36  ferable  and  shall be destroyed immediately upon such person ceasing to
    37  do business as specified in such certificate, or in the event that  such
    38  business never commenced.
    39    (ii)  Provided,  however, that the commissioner shall refund or credit
    40  an application fee paid with respect to the registration of an adult-use
    41  cannabis business in this state if, prior to the beginning of the period
    42  with respect to which such  registration  relates,  the  certificate  of
    43  registration described in subparagraph (i) of this paragraph is returned
    44  to the department or, if such certificate has been destroyed, the opera-
    45  tor of such business satisfactorily accounts to the commissioner for the
    46  missing  certificate,  but such business may not sell adult-use cannabis
    47  products in this state during such period, unless it  is  re-registered.
    48  Such  refund  or  credit  shall be deemed a refund of tax paid in error,
    49  provided, however, no interest shall be allowed  or  paid  on  any  such
    50  refund.
    51    (b) (1) The commissioner shall refuse to issue a certificate of regis-
    52  tration  to  any applicant and shall revoke the certificate of registra-
    53  tion of any such person who does not possess a valid  license  from  the
    54  office  of  cannabis  management. The commissioner may refuse to issue a
    55  certificate of registration to any applicant where such applicant:

        A. 1248--A                         106

     1    (i) has a past-due liability as that term is defined  in  section  one
     2  hundred seventy-one-v of this chapter;
     3    (ii)  has  had  a  certificate  of  registration under this article, a
     4  license from the office of cannabis management, or any license or regis-
     5  tration provided for in this chapter revoked  or  suspended  where  such
     6  revocation  or  suspension was in effect on the date the application was
     7  filed or ended within one year from the date on which  such  application
     8  was filed;
     9    (iii) has been convicted of a crime provided for in this chapter with-
    10  in  one  year  from  the date on which such application was filed or the
    11  certificate was issued, as applicable;
    12    (iv) willfully fails to file a report or return required by this arti-
    13  cle;
    14    (v) willfully files, causes to be filed, gives or causes to be given a
    15  report, return, certificate or affidavit required by this article  which
    16  is false; or
    17    (vi)  willfully fails to collect or truthfully account for or pay over
    18  any tax imposed by this article.
    19    (2) In addition to the grounds for revocation in paragraph (1) of this
    20  subdivision, where a person who holds a certificate of  registration  is
    21  determined  to  have possessed or sold illicit cannabis: (1) such regis-
    22  tration may be revoked for a period of up to one year for the first such
    23  possession or sale; (2) for a second such possession or  sale  within  a
    24  period of five years by such person, the registration of such person may
    25  be  revoked  for  a  period  of  up to three years; (3) for a third such
    26  possession or sale within a period of up to five years by  such  person,
    27  the  registration  of  such  person  may be revoked for a period of five
    28  years.  A certificate of registration may be revoked  pursuant  to  this
    29  paragraph  immediately  upon  such person's receipt of written notice of
    30  revocation from the commissioner.
    31    (c) A certificate of registration shall be valid for the period speci-
    32  fied thereon, unless earlier suspended or revoked. Upon  the  expiration
    33  of  the  term  stated on a certificate of registration, such certificate
    34  shall be null and void.
    35    (d) Every holder of a certificate  of  registration  must  notify  the
    36  commissioner  of changes to any of the information stated on the certif-
    37  icate, or of changes to any information contained in the application for
    38  the certificate of registration. Such notification must be  made  on  or
    39  before  the  last  day of the month in which a change occurs and must be
    40  made electronically on a form prescribed by the commissioner.
    41    (e) Every holder of a certificate of registration under  this  article
    42  shall  be  required  to  reapply prior to such certificate's expiration,
    43  during a reapplication period  established  by  the  commissioner.  Such
    44  reapplication  period  shall  not  occur  more frequently than every two
    45  years. Such reapplication shall be subject to the same requirements  and
    46  conditions  as an initial application, including grounds for refusal and
    47  the payment of the application fee.
    48    (f) Any person who is required to obtain a certificate of registration
    49  under subdivision (a) of this section who possesses  adult-use  cannabis
    50  products  without such certificate shall be subject to a penalty of five
    51  hundred dollars for each month or part thereof  during  which  adult-use
    52  cannabis  products are possessed without such certificate, not to exceed
    53  ten thousand dollars in the aggregate.
    54    § 495. Returns and payment of tax. (a) Every person  on  whom  tax  is
    55  imposed  under this article shall, on or before the twentieth day of the
    56  month following each quarterly period ending on the last day  of  Febru-

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     1  ary,  May,  August, and November, respectively, file electronically with
     2  the commissioner a return on forms to be prescribed by the commissioner,
     3  showing the total amount of  tax  due  in  such  quarterly  period,  and
     4  including such other information as the commissioner may require.
     5    (b)  Every  person required to file a return under this section shall,
     6  at the time of filing such return, pay electronically to the commission-
     7  er the total amount of tax due for the period covered by such return. If
     8  a return is not filed when due, the tax shall be due on the day on which
     9  the return is required to be filed.
    10    § 496. Records to be kept; penalties. (a) Records to  be  kept.  Every
    11  distributor  on  whom tax is imposed under this article and every person
    12  who sells adult-use cannabis products at retail shall maintain  complete
    13  and  accurate  records  in  such  form  as  the commissioner may require
    14  including, but not limited to, such items as the total  THC  content  of
    15  the  adult-use  cannabis  products  sold  to or produced by such person;
    16  complete records of every retail sale of  adult-use  cannabis,  and  any
    17  other  record  or information required by the commissioner. Such records
    18  must be preserved for a period of three years after the  filing  of  the
    19  return  to which such records relate and must be provided to the commis-
    20  sioner upon request.
    21    (b) Penalties. In addition to any other penalty provided in this arti-
    22  cle or otherwise imposed by  law,  every  distributor  on  whom  tax  is
    23  imposed under this article and every person who sells adult-use cannabis
    24  products  at  retail  who  fails  to  maintain  or make available to the
    25  commissioner the records required by this section is subject to a penal-
    26  ty not to exceed five hundred dollars for each month or part thereof for
    27  which the failure occurs. This penalty may not be imposed more than once
    28  for failures for the same monthly  period  or  part  thereof.    If  the
    29  commissioner  determines  that  a  failure to maintain or make available
    30  records in any month was entirely due to reasonable  cause  and  not  to
    31  willful neglect, the commissioner must remit the penalty for that month.
    32    §  496-a.  Returns  to be secret. (a) Except in accordance with proper
    33  judicial order or as in this section or otherwise provided  by  law,  it
    34  shall  be  unlawful for the commissioner, any officer or employee of the
    35  department, or any officer or person who, pursuant to this  section,  is
    36  permitted to inspect any return or report or to whom a copy, an abstract
    37  or a portion of any return or report is furnished, or to whom any infor-
    38  mation contained in any return or report is furnished, or any person who
    39  in  any  manner  may  acquire  knowledge  of the contents of a return or
    40  report filed pursuant to this article to divulge or make  known  in  any
    41  manner  the  content or any other information contained in any return or
    42  report required under this article. The officers charged with the custo-
    43  dy of such returns or reports shall not be required to  produce  any  of
    44  them  or evidence of anything contained in them in any action or preced-
    45  ing in any court, except on behalf of the state, the office of  cannabis
    46  management, or the commissioner in an action or proceeding involving the
    47  collection  of  tax  due  under  this  chapter to which the state or the
    48  commissioner is a party or a claimant or on behalf of any party  to  any
    49  action  or  proceeding  under  the  provisions of this article, when the
    50  returns or the reports or the facts shown thereby are directly  involved
    51  in  such  action or proceeding, or in an action or proceeding related to
    52  the regulation or taxation of adult-use cannabis products on  behalf  of
    53  officers  to  whom  information  shall have been supplied as provided in
    54  this section,  in  any  of  which  events  the  court  may  require  the
    55  production  of,  and  may  admit  in evidence so much of said returns or
    56  reports or of the facts shown thereby as are pertinent to the action  or

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     1  proceeding  and  no  more. Nothing herein shall be construed to prohibit
     2  the commissioner, in his or her discretion, from allowing the inspection
     3  or delivery of a certified copy of any return or report filed under this
     4  article  or of any information contained in any such return or report by
     5  or to a duly authorized officer or employee of the  office  of  cannabis
     6  management;  or  by  or to the attorney general or other legal represen-
     7  tatives of the state when an  action  shall  have  been  recommended  or
     8  commenced  pursuant  to this chapter in which such returns or reports or
     9  the facts shown thereby are directly involved; or the inspection of  the
    10  returns  or  reports  required  under this article by the comptroller or
    11  duly designated officer or employee of the state department of audit and
    12  control, for purposes of the audit of a refund of any tax  paid  by  any
    13  person  under  this article; nor to prohibit the delivery to such person
    14  or a duly authorized representative of such person, a certified copy  of
    15  any  return or report filed by such person pursuant to this article, nor
    16  to prohibit the publication of statistics so classified  as  to  prevent
    17  the identification of particular returns or reports and the items there-
    18  of. This section shall also not be construed to prohibit the disclosure,
    19  for  tax  administration purposes, to the division of the budget and the
    20  office of the state comptroller,  of  information  aggregated  from  the
    21  returns  filed  by all persons subject to the taxes imposed by the arti-
    22  cle, whether the number of such  persons  is  one  or  more.    Provided
    23  further  that,  notwithstanding  the provisions of this subdivision, the
    24  commissioner may, in his or her discretion, permit the proper officer of
    25  any county entitled  to receive any distribution of the monies  received
    26  on account of the tax imposed by subdivision (c) of section four hundred
    27  ninety-three  of  this article, or the authorized representative of such
    28  officer, to inspect any return filed under this article, or may  furnish
    29  to  such  officer or the officer's authorized representative an abstract
    30  of any such return or supply such officer or representative with  infor-
    31  mation  concerning an item contained in any such return, or disclosed by
    32  any investigation of tax liability under this article.
    33    (b) The commissioner, in his or her discretion, may permit the  appro-
    34  priate  officers  of any other state that regulates or taxes cannabis or
    35  the duly authorized representatives of any  such  officers,  to  inspect
    36  returns or reports made pursuant to this article, or may furnish to such
    37  other  officers, or their duly authorized representatives, a copy of any
    38  such return  or  report  or  an  abstract  of  the  information  therein
    39  contained,  or  any  portion thereof, or may supply any such officers or
    40  such representatives with information relating  to  the  business  of  a
    41  person  making  returns  or reports hereunder solely for purposes of tax
    42  administration. The commissioner may refuse to supply information pursu-
    43  ant to this subdivision to the officers of any other state if the  stat-
    44  utes of the state represented by such officers do not grant substantial-
    45  ly similar privileges to the commissioner, but such refusal shall not be
    46  mandatory.  Information  shall  not  be  supplied to the officers of any
    47  state that regulates or taxes cannabis, or their duly authorized  repre-
    48  sentatives  of any such officers, unless such officer or other represen-
    49  tatives shall agree not to divulge or  make  known  in  any  manner  the
    50  information so supplied, but such officers may transmit such information
    51  to  their employees or legal representatives when necessary, who in turn
    52  shall be subject to the same restrictions as those hereby  imposed  upon
    53  such officer or other representatives.
    54    (c)(1) Any officer or employee of the state who willfully violates the
    55  provisions  of subdivision (a) or (b) of this section shall be dismissed

        A. 1248--A                         109
 
     1  from office and be incapable of holding any public office in this  state
     2  for a period of five years thereafter.
     3    (2) For criminal penalties, see article thirty-seven of this chapter.
     4    §  496-b.  Administrative  provisions.  (a)  The provisions of article
     5  twenty-seven of this chapter shall apply to the taxes imposed by section
     6  four hundred ninety-three of this article in the same  manner  and  with
     7  the  same  force  and effect as if the language of such article had been
     8  incorporated in full into this section and had expressly referred to the
     9  tax imposed by this article, except to the extent that any provision  of
    10  such  article is either inconsistent with a provision of this article or
    11  is not relevant to this article.
    12    (b)(1) All taxes, interest, and penalties collected or received by the
    13  commissioner under this article  shall  be  deposited  and  disposed  of
    14  pursuant  to the provisions of section one hundred seventy-one-a of this
    15  chapter, provided that an amount equal to one hundred percent  collected
    16  under  this article less any amount determined by the commissioner to be
    17  reserved by the comptroller for refunds or reimbursements shall be  paid
    18  by  the  comptroller  to  the credit of the cannabis revenue fund estab-
    19  lished by section ninety-nine-ii of the state finance law. Of the  total
    20  revenue  collected or received under this article, the comptroller shall
    21  retain such amount as the commissioner may determine to be necessary for
    22  refunds. The commissioner is authorized and directed to deduct from  the
    23  registration  fees under subdivision (a) of section four hundred ninety-
    24  four of this article, before deposit  into  the  cannabis  revenue  fund
    25  designated by the comptroller, a reasonable amount necessary to effectu-
    26  ate refunds of appropriations of the department to reimburse the depart-
    27  ment  for  the costs incurred to administer, collect, and distribute the
    28  taxes imposed by this article.
    29    (2) All taxes, interest, and penalties collected or  received  by  the
    30  commissioner  under subdivision (c) of section four hundred ninety-three
    31  of this article shall be deposited  and  disposed  of  pursuant  to  the
    32  provisions  of  section  one  hundred  seventy-one-a  of  this  chapter,
    33  provided that an amount equal to one  hundred  percent  collected  under
    34  such  subdivision (c), less any amount determined by the commissioner to
    35  be reserved by the comptroller for refunds or reimbursements,  shall  be
    36  paid to the comptroller  and the commissioner shall certify to the comp-
    37  troller  the  amount  of  tax,  penalties,  and interest attributable to
    38  retail sales within a city with a population of a million  or  more  and
    39  counties (other than a county wholly within such city). Such amount will
    40  be  distributed by the comptroller to such city and such counties.  Such
    41  counties shall be entitled to retain twenty-five percent of  the  monies
    42  so  distributed.   Such counties shall distribute the remaining seventy-
    43  five percent of such monies to the towns, villages,  and  cities  within
    44  such county in which a retail dispensary is located in proportion to the
    45  sales  of adult-use cannabis products by the retail dispensaries in such
    46  towns, villages  and  cities  as  reported  by  a  seed-to-sale  system,
    47  provided,  however,  where  a  retail dispensary is located in a village
    48  within a town that both permit cannabis retail sales,  then  the  county
    49  shall  distribute  the  monies attributable to such retail dispensary to
    50  such town and village in such proportion as may be agreed  upon  by  the
    51  elective  governing  body  of  such  town and of such village or, in the
    52  absence of such an agreement, shall evenly divide  such  monies  between
    53  such  town  and  village.  Such  counties  shall  distribute  the monies
    54  received for each quarter ending on  the  last  day  of  February,  May,
    55  August  or November to such towns, villages and cities no later than the
    56  thirtieth day after receipt of such monies from the comptroller.

        A. 1248--A                         110

     1    § 496-c. Illicit cannabis penalty. (a) In addition to any other  civil
     2  or criminal penalties that may apply, any person knowingly in possession
     3  of  or  knowingly  having  control  over illicit cannabis, as defined in
     4  section four hundred ninety-two of this article,  after  notice  and  an
     5  opportunity  for  a  hearing, shall be liable for a civil penalty of not
     6  less than two hundred dollars per ounce of illicit cannabis flower, five
     7  dollars per milligram of the total weight of any illicit cannabis edible
     8  product, fifty dollars per gram of  the  total  weight  of  any  product
     9  containing  illicit  cannabis  concentrate, and five hundred dollars per
    10  illicit cannabis plant, but not to exceed four hundred dollars per ounce
    11  of illicit cannabis flower, ten  dollars  per  milligram  of  the  total
    12  weight  of  any illicit cannabis edible product, one hundred dollars per
    13  gram of the total weight of  any  product  containing  illicit  cannabis
    14  concentrate,  and  one thousand dollars per illicit cannabis plant for a
    15  first violation, and for a second and subsequent violation within  three
    16  years following a prior violation shall be liable for a civil penalty of
    17  not less than four hundred dollars per ounce of illicit cannabis flower,
    18  ten  dollars  per  milligram of the total weight of any illicit cannabis
    19  edible product, one hundred dollars per gram of the total weight of  any
    20  product  containing  illicit  cannabis  concentrate,  and  one  thousand
    21  dollars per illicit cannabis plant,  but  not  to  exceed  five  hundred
    22  dollars  per ounce of illicit cannabis flower, twenty dollars per milli-
    23  gram of the total weight of any illicit  cannabis  edible  product,  two
    24  hundred  dollars  per gram of the total weight of any product containing
    25  illicit cannabis concentrate,  and  two  thousand  dollars  per  illicit
    26  cannabis plant.
    27    (b)  No enforcement action taken under this section shall be construed
    28  to limit any other criminal or civil liability of anyone  in  possession
    29  of illicit cannabis.
    30    (c)  The  penalty  imposed  by this section shall not apply to persons
    31  lawfully in possession of less than two ounces of adult-use cannabis  or
    32  ten  grams  of concentrated cannabis in accordance with the cannabis law
    33  or penal law.
    34    § 40. Subdivision (a) of section 1115 of the tax  law  is  amended  by
    35  adding a new paragraph 3-b to read as follows:
    36    (3-b)  Adult-use  cannabis  products as defined by article twenty-C of
    37  this chapter.
    38    § 40-a. Intentionally omitted.
    39    § 40-b. Intentionally omitted.
    40    § 40-c. Section 471 of the tax law is amended by adding a new subdivi-
    41  sion 7 to read as follows:
    42    7. The taxes imposed under this section shall not apply  to  adult-use
    43  cannabis products subject to tax under article twenty-C of this chapter.
    44    §  40-d. Section 1181 of the tax law, as added by section 1 of part UU
    45  of chapter 59 of the laws of 2019, is amended to read as follows:
    46    § 1181. Imposition of tax. In addition to any  other  tax  imposed  by
    47  this  chapter  or  other  law,  there  is hereby imposed a tax of twenty
    48  percent on receipts from the retail sale of vapor products sold in  this
    49  state.  The  tax  is imposed on the purchaser and collected by the vapor
    50  products dealer as defined in subdivision (b) of section eleven  hundred
    51  eighty  of  this article, in trust for and on account of the state.  The
    52  taxes imposed under this section shall not apply to  adult-use  cannabis
    53  products subject to tax under article twenty-C of this chapter.
    54    § 40-e. Intentionally omitted.
    55    § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
    56  health  law,  the  tax  law, the state finance law, the general business

        A. 1248--A                         111

     1  law, the penal law and the criminal procedure law  relating  to  medical
     2  use of marihuana, is amended to read as follows:
     3    §  12. This act shall take effect immediately [and]; provided, however
     4  that sections one, three, four, five, six, seven-a, eight, nine, ten and
     5  eleven of this act shall expire and be deemed repealed [seven]  fourteen
     6  years  after such date; provided that the amendments to section 171-a of
     7  the tax law made by section seven of this act shall take effect  on  the
     8  same  date  and in the same manner as section 54 of part A of chapter 59
     9  of the laws of 2014 takes effect and shall  not  expire  and  be  deemed
    10  repealed; and provided, further, that the amendments to subdivision 5 of
    11  section  410.91  of the criminal procedure law made by section eleven of
    12  this act shall not affect the expiration and repeal of such section  and
    13  shall expire and be deemed repealed therewith.
    14    § 42. The cannabis control board, in consultation with the division of
    15  the  budget,  the  department of taxation and finance, the department of
    16  health, office of addiction services  and  supports,  office  of  mental
    17  health,  New  York  state police, department of   motor vehicles and the
    18  division of criminal justice services, shall conduct a    study  of  the
    19  implementation of this act. Such study shall examine all aspects of this
    20  act,  including  economic  and  fiscal impacts, the impact on the public
    21  health and safety of New York residents, the progress made in  achieving
    22  social  and  economic  justice goals, and toward eliminating the illegal
    23  market for cannabis products in New York. The board shall make recommen-
    24  dations regarding if the changes  to  level  of  taxation  of  adult-use
    25  cannabis  is  appropriate,  as  well  as  changes,  if any, necessary to
    26  improve and protect the public health and safety of  New  Yorkers.  Such
    27  study  shall  be  completed and presented to the governor, the temporary
    28  president of the senate and the speaker of the assembly, no  later  than
    29  October 1, 2024.
    30    §  43. Section 102 of the alcoholic beverage control law is amended by
    31  adding a new subdivision 8 to read as follows:
    32    8. No alcoholic beverage  retail  licensee  shall  sell  cannabis,  as
    33  defined  in  section  three  of  the cannabis law, nor have or possess a
    34  license or permit to sell cannabis, on the same premises where alcoholic
    35  beverages are sold.
    36    § 44. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
    37  general  obligations  law,  as added by chapter 406 of the laws of 2000,
    38  are amended to read as follows:
    39    1. "Illegal drug" means any controlled substance  [or  marijuana]  the
    40  possession  of  which  is  an offense under the public health law or the
    41  penal law.
    42    4. "Grade one violation" means  possession  of  one-quarter  ounce  or
    43  more,  but less than four ounces, or distribution of less than one ounce
    44  of an illegal drug [other than marijuana, or possession of one pound  or
    45  twenty-five  plants  or more, but less than four pounds or fifty plants,
    46  or distribution of less than one pound of marijuana].
    47    5. "Grade two violation" means possession of four ounces or more,  but
    48  less  than  eight ounces, or distribution of one ounce or more, but less
    49  than two ounces, of an illegal drug [other than marijuana, or possession
    50  of four pounds or more or fifty plants or distribution of more than  one
    51  pound but less than ten pounds of marijuana].
    52    6.  "Grade  three violation" means possession of eight ounces or more,
    53  but less than sixteen ounces, or distribution of two ounces or more, but
    54  less than four ounces, of a specified illegal  drug  [or  possession  of
    55  eight  pounds  or  more  or  seventy-five  plants or more, but less than

        A. 1248--A                         112

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

        A. 1248--A                         113
 
     1  recommend additional opportunities for improvement to  the  director  of
     2  the  facility  or provider agency, if appropriate; (iii) review incident
     3  trends and patterns  concerning  reportable  incidents;  and  (iv)  make
     4  recommendations  to  the  director of the facility or provider agency to
     5  assist in reducing reportable incidents. Members of the committee  shall
     6  be  trained  in  confidentiality  laws and regulations, and shall comply
     7  with section seventy-four of the public officers law[.]; and
     8    (g) safe storage, administration, and  diversion  prevention  policies
     9  regarding controlled substances and medical cannabis.
    10    §  47. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the penal
    11  law, as added by chapter 90 of the laws of 2014, are amended to read  as
    12  follows:
    13  § 179.00 Criminal  diversion  of  medical  [marihuana]  cannabis;  defi-
    14             nitions.
    15    The following definitions are applicable to this article:
    16    1. "Medical [marihuana] cannabis" means medical  [marihuana]  cannabis
    17  as  defined  in [subdivision eight of section thirty-three hundred sixty
    18  of the public health law] section three of the cannabis law.
    19    2. "Certification" means a certification, made under section  [thirty-
    20  three hundred sixty-one of the public health law] thirty of the cannabis
    21  law.
    22  § 179.05 Criminal  diversion  of  medical  [marihuana] cannabis; limita-
    23             tions.
    24    The provisions of this article shall not apply to:
    25    1. a practitioner authorized to issue a  certification  who  acted  in
    26  good faith in the lawful course of his or her profession; or
    27    2.  a  registered organization as that term is defined in [subdivision
    28  nine of section thirty-three hundred sixty of  the  public  health  law]
    29  section  thirty-four  of the cannabis law who acted in good faith in the
    30  lawful course of the practice of pharmacy; or
    31    3. a person who acted in good faith seeking treatment  for  a  medical
    32  condition  or assisting another person to obtain treatment for a medical
    33  condition.
    34  § 179.10 Criminal diversion of medical [marihuana] cannabis in the first
    35             degree.
    36    A person is guilty of criminal diversion of medical [marihuana] canna-
    37  bis in the first degree when he or she is a practitioner, as  that  term
    38  is  defined in [subdivision twelve of section thirty-three hundred sixty
    39  of the public health law] section three of the cannabis law, who  issues
    40  a  certification  with  knowledge of reasonable grounds to know that (i)
    41  the recipient has no medical need for it, or (ii) it is  for  a  purpose
    42  other  than  to  treat  a [serious] condition as defined in [subdivision
    43  seven of section thirty-three hundred sixty of the  public  health  law]
    44  section three of the cannabis law.
    45    Criminal diversion of medical [marihuana] cannabis in the first degree
    46  is a class E felony.
    47  § 179.11 Criminal  diversion  of  medical  [marihuana]  cannabis  in the
    48             second degree.
    49    A person is guilty of criminal diversion of medical [marihuana] canna-
    50  bis in the second degree when he or  she  sells,  trades,  delivers,  or
    51  otherwise  provides  medical  [marihuana] cannabis to another with know-
    52  ledge or reasonable grounds to know that the recipient is not registered
    53  under [title five-A of article thirty-three of the  public  health  law]
    54  article three of the cannabis law.
    55    Criminal  diversion  of  medical  [marihuana]  cannabis  in the second
    56  degree is a class B misdemeanor.

        A. 1248--A                         114
 
     1  § 179.15 Criminal retention of medical [marihuana] cannabis.
     2    A person is guilty of criminal retention of medical [marihuana] canna-
     3  bis  when,  being  a certified patient or designated caregiver, as those
     4  terms are defined in [subdivisions three and  five  of  section  thirty-
     5  three  hundred  sixty  of  the  public health law, respectively] section
     6  three of the cannabis law,  he  or  she  knowingly  obtains,  possesses,
     7  stores  or  maintains an amount of [marihuana] cannabis in excess of the
     8  amount he or she is authorized to possess under the provisions of [title
     9  five-A of article thirty-three of the public health law]  article  three
    10  of the cannabis law.
    11    Criminal  retention  of  medical  [marihuana is a class A misdemeanor]
    12  cannabis shall be punishable as provided in section 222.25 of this chap-
    13  ter.
    14    § 48. Section 220.78 of the penal law, as added by chapter 154 of  the
    15  laws of 2011, is amended to read as follows:
    16  § 220.78 Witness or victim of drug or alcohol overdose.
    17    1.  A  person who, in good faith, seeks health care for someone who is
    18  experiencing a drug  or  alcohol  overdose  or  other  life  threatening
    19  medical  emergency  shall  not be charged or prosecuted for a controlled
    20  substance offense under this article [two hundred twenty] or a [marihua-
    21  na] cannabis offense under article two hundred  [twenty-one]  twenty-two
    22  of this title, other than an offense involving sale for consideration or
    23  other  benefit or gain, or charged or prosecuted for possession of alco-
    24  hol by a person under age twenty-one years under section sixty-five-c of
    25  the alcoholic beverage control law, or for possession of drug  parapher-
    26  nalia  under  article  thirty-nine  of  the  general  business law, with
    27  respect to any controlled substance, [marihuana]  cannabis,  alcohol  or
    28  paraphernalia that was obtained as a result of such seeking or receiving
    29  of health care.
    30    2.  A  person  who is experiencing a drug or alcohol overdose or other
    31  life threatening medical emergency and, in good faith, seeks health care
    32  for himself or herself or is the subject of such a  good  faith  request
    33  for  health  care,  shall  not be charged or prosecuted for a controlled
    34  substance offense under this article or a [marihuana]  cannabis  offense
    35  under  article  two hundred [twenty-one] twenty-two of this title, other
    36  than an offense involving sale for consideration  or  other  benefit  or
    37  gain,  or  charged  or  prosecuted for possession of alcohol by a person
    38  under age twenty-one years under section sixty-five-c of  the  alcoholic
    39  beverage  control law, or charged or prosecuted for possession of canna-
    40  bis or concentrated cannabis by a person under  the  age  of  twenty-one
    41  under  section  one  hundred  thirty-two  of  the  cannabis  law, or for
    42  possession of drug paraphernalia under article thirty-nine of the gener-
    43  al business law, with respect to any  substance,  [marihuana]  cannabis,
    44  alcohol  or  paraphernalia that was obtained as a result of such seeking
    45  or receiving of health care.
    46    3. Definitions. As used in this section the following terms shall have
    47  the following meanings:
    48    (a) "Drug or alcohol overdose" or "overdose" means an acute  condition
    49  including,  but  not limited to, physical illness, coma, mania, hysteria
    50  or death, which is the result of consumption  or  use  of  a  controlled
    51  substance  or alcohol and relates to an adverse reaction to or the quan-
    52  tity of the controlled substance or alcohol or a  substance  with  which
    53  the  controlled  substance  or  alcohol  was  combined;  provided that a
    54  patient's condition shall be deemed to be a drug or alcohol overdose  if
    55  a  prudent  layperson,  possessing  an average knowledge of medicine and

        A. 1248--A                         115
 
     1  health, could reasonably believe that the condition is in fact a drug or
     2  alcohol overdose and (except as to death) requires health care.
     3    (b) "Health care" means the professional services provided to a person
     4  experiencing  a  drug  or alcohol overdose by a health care professional
     5  licensed, registered or certified under title eight of the education law
     6  or article thirty of the public health law who, acting within his or her
     7  lawful scope of practice, may provide diagnosis, treatment or  emergency
     8  services for a person experiencing a drug or alcohol overdose.
     9    4.  It  shall  be an affirmative defense to a criminal sale controlled
    10  substance offense under this article or a criminal sale  of  [marihuana]
    11  cannabis  offense  under  article two hundred [twenty-one] twenty-two of
    12  this title, not covered by subdivision one or two of this section,  with
    13  respect  to  any  controlled substance or [marihuana] cannabis which was
    14  obtained as a result of such seeking or receiving of health care, that:
    15    (a) the defendant, in good faith, seeks health care for someone or for
    16  him or herself who is experiencing a drug or alcohol overdose  or  other
    17  life threatening medical emergency; and
    18    (b)  the  defendant  has  no  prior  conviction  for the commission or
    19  attempted commission of a class A-I, A-II or B felony under  this  arti-
    20  cle.
    21    5. Nothing in this section shall be construed to bar the admissibility
    22  of  any evidence in connection with the investigation and prosecution of
    23  a crime with regard to another  defendant  who  does  not  independently
    24  qualify  for  the bar to prosecution or for the affirmative defense; nor
    25  with regard to other crimes committed by a person who  otherwise  quali-
    26  fies under this section; nor shall anything in this section be construed
    27  to  bar any seizure pursuant to law, including but not limited to pursu-
    28  ant to section thirty-three hundred eighty-seven of  the  public  health
    29  law.
    30    6.  The  bar  to  prosecution described in subdivisions one and two of
    31  this section shall not apply to the prosecution of a  class  A-I  felony
    32  under this article, and the affirmative defense described in subdivision
    33  four  of  this section shall not apply to the prosecution of a class A-I
    34  or A-II felony under this article.
    35    § 49. Subdivision 1 of section 260.20 of the penal law, as amended  by
    36  chapter 362 of the laws of 1992, is amended to read as follows:
    37    1.  He knowingly permits a child less than eighteen years old to enter
    38  or remain in or upon a place, premises  or  establishment  where  sexual
    39  activity as defined by article one hundred thirty, two hundred thirty or
    40  two  hundred  sixty-three  of  this [chapter] part or activity involving
    41  controlled substances as defined by article two hundred twenty  of  this
    42  [chapter  or involving marihuana as defined by article two hundred twen-
    43  ty-one of this chapter] part is maintained or conducted, and he knows or
    44  has reason to know that such activity is being maintained or  conducted;
    45  or
    46    § 50. Section 89-h of the state finance law, as added by chapter 90 of
    47  the laws of 2014, is amended to read as follows:
    48    §  89-h.  Medical  [marihuana] cannabis trust fund. 1. There is hereby
    49  established in the joint  custody  of  the  state  comptroller  and  the
    50  commissioner  of  taxation and finance a special fund to be known as the
    51  "medical [marihuana] cannabis trust fund."
    52    2. The medical [marihuana] cannabis trust fund shall  consist  of  all
    53  moneys  required  to  be  deposited  in the medical [marihuana] cannabis
    54  trust fund pursuant to the provisions of section four hundred ninety  of
    55  the tax law.

        A. 1248--A                         116
 
     1    3.  The moneys in the medical [marihuana] cannabis trust fund shall be
     2  kept separate and shall not be commingled with any other moneys  in  the
     3  custody  of the commissioner of taxation and finance and the state comp-
     4  troller.
     5    4.  The moneys of the medical [marihuana] cannabis trust fund, follow-
     6  ing appropriation by the legislature, shall be allocated upon a  certif-
     7  icate  of  approval  of  availability  by  the director of the budget as
     8  follows:  (a) Twenty-two and five-tenths percent of the monies shall  be
     9  transferred  to  the  counties  in  New  York state in which the medical
    10  [marihuana] cannabis was manufactured and allocated in proportion to the
    11  gross sales originating from medical [marihuana]  cannabis  manufactured
    12  in  each  such  county;  (b)  twenty-two  and five-tenths percent of the
    13  moneys shall be transferred to the counties in New York state  in  which
    14  the  medical [marihuana] cannabis was dispensed and allocated in propor-
    15  tion to the gross sales occurring in each such county; (c) five  percent
    16  of  the  monies  shall  be  transferred to the office of [alcoholism and
    17  substance abuse services] addiction services and supports,  which  shall
    18  use  that  revenue  for additional drug abuse prevention, counseling and
    19  treatment services; [and] (d) five percent of the  revenue  received  by
    20  the  department shall be transferred to the division of criminal justice
    21  services, which shall use that revenue for a  program  of  discretionary
    22  grants  to  state  and local law enforcement agencies that demonstrate a
    23  need relating to [title five-A of article  thirty-three  of  the  public
    24  health law] article three of the cannabis law; said grants could be used
    25  for personnel costs of state and local law enforcement agencies; and (e)
    26  forty-five  percent  of  the monies shall be transferred to the New York
    27  state cannabis revenue fund. For purposes of this subdivision, the  city
    28  of New York shall be deemed to be a county.
    29    §  51.  The  state finance law is amended by adding three new sections
    30  99-ii, 99-jj and 99-kk to read as follows:
    31    § 99-ii. New York state cannabis revenue  fund.  1.  There  is  hereby
    32  established  in  the  joint  custody  of  the  state comptroller and the
    33  commissioner of taxation and finance a special fund to be known  as  the
    34  "New York state cannabis revenue fund".
    35    2.  Such fund shall consist of all revenues received by the department
    36  of taxation and finance, pursuant to the provisions of article  twenty-C
    37  of the tax law and all other moneys credited or transferred thereto from
    38  any  other  fund  or  source pursuant to law.  Nothing contained in this
    39  section shall prevent the state from receiving grants, gifts or bequests
    40  for the purposes of the fund as defined in this section  and  depositing
    41  them into the fund according to law.
    42    3.  The  moneys  in  such  fund  shall  be  expended for the following
    43  purposes:
    44    (a) Reasonable costs  incurred  by  the  department  of  taxation  and
    45  finance for administering and collecting the taxes imposed by this part.
    46    (b) Reasonable costs incurred by the office of cannabis management and
    47  the  cannabis control board for implementing, administering, and enforc-
    48  ing the marihuana regulation and taxation act.
    49    (c) Actual and necessary costs incurred  by  the  office  of  cannabis
    50  management  and  the  cannabis  control board, and the urban development
    51  corporation, related to  the  administration  of  incubators  and  other
    52  assistance  to qualified social and economic equity applicants including
    53  the administration, capitalization, and provision of low and zero inter-
    54  est loans to such applicants pursuant to section sixteen-ee of the urban
    55  development corporation act. Such costs shall be paid  out  of  revenues
    56  received, including, but not limited to, from special one-time fees paid

        A. 1248--A                         117
 
     1  by  registered  organizations  pursuant  to  section  sixty-three of the
     2  cannabis law.
     3    (d)  Beginning  with the two thousand twenty-two--two thousand twenty-
     4  three fiscal year and continuing through the two  thousand  thirty-two--
     5  two  thousand thirty-three fiscal year, the commissioner of taxation and
     6  finance shall annually disburse the following sums for the  purposes  of
     7  data collection and reporting:
     8    (i)  Reasonable costs incurred by the office of cannabis management to
     9  track and report data related to the licensing of  cannabis  businesses,
    10  including  the  geographic location, structure, and function of licensed
    11  cannabis businesses, and demographic data,  including  race,  ethnicity,
    12  and  gender,  of  applicants  and  license holders. The cannabis control
    13  board shall publish reports on its findings annually and shall make  the
    14  reports available to the public.
    15    (ii)  Reasonable  costs incurred by the department of criminal justice
    16  services  to  track  and  report  data  related  to   any   infractions,
    17  violations,  or criminal convictions that occur under any of the remain-
    18  ing cannabis statutes.   The department  of  criminal  justice  services
    19  shall  publish  reports  on  its  findings  annually  and shall make the
    20  reports available to the public.
    21    (iii) Reasonable costs incurred by agencies of  the  state,  including
    22  the  state university of New York to research and evaluate the implemen-
    23  tation and effect of the cannabis law. No  more  than  four  percent  of
    24  these monies may be used for expenses related to administrative costs of
    25  conducting  such  research, and to, if appropriate, make recommendations
    26  to the legislature and governor regarding  possible  amendments  to  the
    27  cannabis  law.  The  recipients  of these funds shall publish reports on
    28  their findings at a minimum of  every  two  years  and  shall  make  the
    29  reports  available  to  the public. The research funded pursuant to this
    30  subdivision shall include but not necessarily be limited to:
    31    (A) the impact on public health,  including  health  costs  associated
    32  with cannabis use, as well as whether cannabis use is associated with an
    33  increase or decrease in use of alcohol or other drugs;
    34    (B)  the  impact of treatment for cannabis use disorder and the effec-
    35  tiveness of different treatment programs;
    36    (C) public safety issues related to cannabis use, including,  but  not
    37  limited  to  studying  the  effectiveness  of the packaging and labeling
    38  requirements and advertising and marketing restrictions contained in the
    39  act at preventing underage access to and use of  cannabis  and  cannabis
    40  products, and studying the health-related effects among users of varying
    41  potency levels of cannabis and cannabis products;
    42    (D)  cannabis  use  rates, maladaptive use rates for adults and youth,
    43  and diagnosis rates of cannabis-related substance use disorders;
    44    (E) cannabis market prices, illicit market prices, tax structures  and
    45  rates,  including  an  evaluation  of  how to best tax cannabis based on
    46  potency, and the structure and function of licensed cannabis businesses;
    47    (F) whether additional protections  are  needed  to  prevent  unlawful
    48  monopolies  or  anti-competitive behavior from occurring in the cannabis
    49  industry and, if so, recommendations as to the most  effective  measures
    50  for preventing such behavior;
    51    (G)  the economic impacts in the private and public sectors, including
    52  but not necessarily limited to, job creation, workplace  safety,  reven-
    53  ues,  taxes  generated for state and local budgets, and criminal justice
    54  impacts, including, but not  necessarily  limited  to,  impacts  on  law
    55  enforcement  and  public  resources, short and long term consequences of

        A. 1248--A                         118
 
     1  involvement in the criminal justice system, and state and local  govern-
     2  ment agency administrative costs and revenue;
     3    (H) the extent to which the regulatory agencies tasked with implement-
     4  ing  and  enforcing  the marihuana regulation and taxation act have been
     5  able to implement the provisions of such act, consistent with its intent
     6  and purposes, and whether different agencies might be able to do so more
     7  effectively; and
     8    (I)  any  environmental  impacts  and  hazards  related  to   cannabis
     9  production.
    10    (e)  Reasonable  costs incurred by the state police and the department
    11  of motor vehicles to implement the provisions of section  sixty  of  the
    12  marihuana  regulation  and  taxation act, to expand and enhance the drug
    13  recognition expert training program and  technologies  utilized  in  the
    14  process of maintaining road safety.
    15    (f) Reasonable costs, subject to available appropriations, incurred by
    16  the  office  of cannabis management, the cannabis advisory board, or the
    17  urban development corporation to administer grants for qualified  commu-
    18  nity-based  nonprofit  organizations and approved local government enti-
    19  ties for the purpose of reinvesting  in  communities  disproportionately
    20  affected by past federal and state drug policies, in accordance with the
    21  allowable  uses  of  moneys  deposited  in  the New York state community
    22  grants reinvestment fund established by section ninety-nine-kk  of  this
    23  article.
    24    (g) Reasonable costs, subject to available appropriations, incurred by
    25  the division of criminal justice services and the office of court admin-
    26  istration  to implement the expungement provisions of sections seventeen
    27  and twenty-four of the marihuana regulation and taxation act,  as  added
    28  by  a  chapter  of  the laws of two thousand twenty-one which added this
    29  section.
    30    4. After the dispersal of moneys pursuant to subdivision three of this
    31  section, the remaining moneys in the fund  deposited  during  the  prior
    32  fiscal year shall be disbursed into the state lottery fund and two addi-
    33  tional  sub-funds  created within the cannabis revenue fund known as the
    34  drug treatment and public education fund and the community grants  rein-
    35  vestment fund, as follows:
    36    (a)  forty  percent  shall  be deposited in the state lottery fund for
    37  additional lottery grants  to  eligible  school  districts  pursuant  to
    38  subparagraph  four of paragraph b of subdivision four of section ninety-
    39  two-c of this article, and shall be used to increase the total amount of
    40  funding available for general support for public schools; provided  that
    41  notwithstanding any inconsistent provision of law, the amounts appropri-
    42  ated  for  such  additional  lottery  grants  shall be excluded from the
    43  calculation of: (i) the allowable growth  amount  computed  pursuant  to
    44  paragraph dd of subdivision one of section thirty-six hundred two of the
    45  education  law; (ii)  the preliminary growth amount computed pursuant to
    46  paragraph ff of subdivision one of section thirty-six hundred two of the
    47  education  law; and  (iii) the allocable growth amount computed pursuant
    48  to  paragraph gg of subdivision one of section thirty-six hundred two of
    49  the education law;
    50    (b) twenty percent shall be deposited in the drug treatment and public
    51  education fund established by section ninety-nine-jj  of  this  article;
    52  and
    53    (c) forty percent shall be deposited in the community grants reinvest-
    54  ment fund established by section ninety-nine-kk of this article.
    55    §  99-jj.  New York state drug treatment and public education fund. 1.
    56  There is hereby established in the joint  custody  of  the  state  comp-

        A. 1248--A                         119
 
     1  troller  and  the commissioner of taxation and finance a special fund to
     2  be known as the "New York state drug treatment public education fund".
     3    2.  Such  fund  shall  consist  of  revenues  received pursuant to the
     4  provisions of section ninety-nine-ii  of  this  article  and  all  other
     5  moneys  credited  or  transferred  thereto from any other fund or source
     6  pursuant to law. Nothing contained in this  section  shall  prevent  the
     7  state  from  receiving grants, gifts or bequests for the purposes of the
     8  fund as defined in this  section  and  depositing  them  into  the  fund
     9  according to law.
    10    3.  The  moneys  in such fund shall be expended to the commissioner of
    11  the office of addiction services and supports and disbursed, in  consul-
    12  tation  with the commissioner of the department of health, the office of
    13  mental health, the office of cannabis management and the commissioner of
    14  education for the following purposes:
    15    (a) Reasonable costs incurred, subject to available appropriations, by
    16  the office of addiction services and supports, to  administer  funds  in
    17  accordance  with  the allowable uses in paragraphs (b), (c), (d) and (e)
    18  of this subdivision.
    19    (b) To develop and implement a youth-focused public  health  education
    20  and prevention campaign, including school-based prevention, early inter-
    21  vention,  and  health  care  services and programs to reduce the risk of
    22  cannabis and other substance use by school-aged children;
    23    (c) To develop  and  implement  a  statewide  public  health  campaign
    24  focused  on  the  health effects of cannabis and legal use, including an
    25  ongoing education and prevention  campaign  that  educates  the  general
    26  public,  including parents, consumers and retailers, on the legal use of
    27  cannabis, the importance of preventing youth access, the  importance  of
    28  safe storage and preventing secondhand cannabis smoke exposure, informa-
    29  tion  for  pregnant  or  breastfeeding women, and the overconsumption of
    30  edible cannabis products;
    31    (d) To provide substance use disorder treatment programs for youth and
    32  adults, with an emphasis on programs  that  are  culturally  and  gender
    33  competent,  trauma-informed,  evidence-based  and provide a continuum of
    34  care that includes screening and assessment (substance use  disorder  as
    35  well  as  mental  health),  early intervention, active treatment, family
    36  involvement, case management, overdose prevention, prevention of  commu-
    37  nicable  diseases  related  to  substance  use,  relapse  management for
    38  substance use and other co-occurring behavioral health disorders,  voca-
    39  tional  services,  literacy  services, parenting classes, family therapy
    40  and counseling  services,  medication-assisted  treatments,  psychiatric
    41  medication and psychotherapy; and
    42    (e)  To  evaluate  the programs being funded to determine their effec-
    43  tiveness.
    44    4. On or before the first day of February each year, the  commissioner
    45  of the office of addiction services and supports shall provide a written
    46  report  to  the temporary president of the senate, speaker of the assem-
    47  bly, chair of the senate finance committee, chair of the  assembly  ways
    48  and  means  committee,  chair  of the senate committee on alcoholism and
    49  drug abuse, chair of the assembly alcoholism and drug  abuse  committee,
    50  the  state  comptroller and the public. Such report shall detail how the
    51  moneys of the fund were utilized during the preceding calendar year, and
    52  shall include:
    53    (a) the amount of money dispersed from the fund and the award  process
    54  used for such disbursements;
    55    (b) recipients of awards from the fund;
    56    (c) the amount awarded to each recipient of an award from the fund;

        A. 1248--A                         120
 
     1    (d) the purposes for which such awards were granted; and
     2    (e) a summary financial plan for such monies which shall include esti-
     3  mates of all receipts and all disbursements for the current and succeed-
     4  ing  fiscal  years,  along with the actual results from the prior fiscal
     5  year.
     6    5. Moneys shall be payable from the fund on the audit and  warrant  of
     7  the  comptroller  on vouchers approved and certified by the commissioner
     8  of addiction services and supports.
     9    § 99-kk. New York state community grants reinvestment fund.  1.  There
    10  is  hereby established in the joint custody of the state comptroller and
    11  the commissioner of taxation and finance a special fund to be  known  as
    12  the "New York state community grants reinvestment fund".
    13    2.  Such  fund  shall consist of all revenues received pursuant to the
    14  provisions of section ninety-nine-ii  of  this  article  and  all  other
    15  moneys  credited  or  transferred  thereto from any other fund or source
    16  pursuant to law. Nothing contained in this  section  shall  prevent  the
    17  state  from  receiving grants, gifts or bequests for the purposes of the
    18  fund as defined in this  section  and  depositing  them  into  the  fund
    19  according to law.
    20    3.  The  fund shall be governed and administered by the state cannabis
    21  advisory board as set out under article two of the cannabis law.
    22    4. The moneys in such fund shall be  awarded  by  the  state  cannabis
    23  advisory  board and administered and disbursed by the office of cannabis
    24  management and/or the urban development corporation  to  provide  grants
    25  for qualified community-based nonprofit organizations and approved local
    26  government  entities  for  the  purpose  of  reinvesting  in communities
    27  disproportionately affected by past federal  and  state  drug  policies.
    28  Such  grants shall be used, including but not limited to, to support job
    29  placement, job skills services, adult education,  mental  health  treat-
    30  ment,  substance  use  disorder  treatment, housing, financial literacy,
    31  community banking,  nutrition  services,  services  to  address  adverse
    32  childhood experiences, afterschool and child care services, system navi-
    33  gation  services, legal services to address barriers to reentry, includ-
    34  ing, but not limited to, providing representation and related assistance
    35  with expungement, vacatur, substitution and resentencing  of  marihuana-
    36  related  convictions,  and  linkages  to  medical  care,  women's health
    37  services and other community-based supportive services. The grants  from
    38  this program may also be used to further support the social and economic
    39  equity program created by article four of the cannabis law and as estab-
    40  lished by the cannabis control board.
    41    5.  On  or  before  the first day of February each year, the office of
    42  cannabis management shall provide a  written  report  to  the  temporary
    43  president  of  the  senate, speaker of the assembly, chair of the senate
    44  finance committee, chair of the assembly ways and means committee, chair
    45  of the senate committee on children and families, chair of the  assembly
    46  children and families committee, chair of the senate committee on labor,
    47  chair  of the assembly labor committee, chair of the senate committee on
    48  health, chair of the assembly health  committee,  chair  of  the  senate
    49  committee  on  education, chair of the assembly education committee, the
    50  state comptroller and the public.  Such  report  shall  detail  how  the
    51  monies of the fund were utilized during the preceding calendar year, and
    52  shall include:
    53    (a)  the amount of money available and dispersed from the fund and the
    54  award process used for such disbursements;
    55    (b) recipients of awards from the fund;
    56    (c) the amount awarded to each recipient of an award from the fund;

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     1    (d) the purposes for which such awards were granted; and
     2    (e) a summary financial plan for such monies which shall include esti-
     3  mates of all receipts and all disbursements for the current and succeed-
     4  ing  fiscal  years,  along with the actual results from the prior fiscal
     5  year.
     6    6. Moneys shall be payable from the fund on the audit and  warrant  of
     7  the  comptroller  on  vouchers  approved  and certified by the office of
     8  cannabis management.
     9    § 52. Paragraphs (a), (b) and (c) of subdivision 3-a of section  390-b
    10  of  the  social services law, as added by section 9 of part H of chapter
    11  56 of the laws of 2019, are amended to read as follows:
    12    (a) In relation to child day care programs and any  enrolled  legally-
    13  exempt  provider,  when  a  clearance conducted pursuant to this section
    14  reveals that any existing operator, director, caregiver, or person  over
    15  the  age  of  eighteen who is not related in any way to all children for
    16  whom child care services are or will be provided, that resides in a home
    17  where child care is provided in a home setting where the child does  not
    18  reside has been convicted of a crime other than one set forth in subpar-
    19  agraph  (iv)  of paragraph (a) of subdivision three of this section, and
    20  unless such crime is eligible for expungement pursuant to section 160.50
    21  of the criminal  procedure  law,  the  office  of  children  and  family
    22  services  shall  conduct a safety assessment of the program and take all
    23  appropriate steps to protect the health and safety of  the  children  in
    24  the  program,  and  may  deny,  limit,  suspend,  revoke  or reject such
    25  program's license or registration or terminate or reject such  program's
    26  enrollment,  as  applicable,  unless  the  office of children and family
    27  services, determines in its discretion, that continued operation by  the
    28  child  day  care program or enrolled legally-exempt provider will not in
    29  any way jeopardize the health, safety or welfare of the  children  cared
    30  for in the program or by the provider.
    31    (b)  In  relation to child day care programs and any enrolled legally-
    32  exempt provider, when a clearance conducted  pursuant  to  this  section
    33  reveals  that  any existing employee or volunteer with the potential for
    34  unsupervised contact with children has been convicted of a  crime  other
    35  than  one set forth in subparagraph (iv) of paragraph (a) of subdivision
    36  three of this section, and unless such crime is eligible for expungement
    37  pursuant to section 160.50 of the criminal procedure law, the office  of
    38  children  of  family  services  shall conduct a safety assessment of the
    39  program and take all appropriate steps to protect the health and  safety
    40  of  the  children  in  the  program.  The  office of children and family
    41  services may direct the program or provider to terminate the employee or
    42  volunteer  based  on  such  a  conviction,   consistent   with   article
    43  twenty-three-A of the correction law.
    44    (c)  (i)  In  relation to any child day care programs and any enrolled
    45  legally-exempt providers, where a clearance conducted pursuant  to  this
    46  section  reveals  a  conviction  for a crime other than one set forth in
    47  subparagraph (iv) of paragraph (a) of subdivision three of this section,
    48  and unless such crime is eligible for expungement  pursuant  to  section
    49  160.50  of  the  criminal procedure law, for any prospective employee or
    50  volunteer, the office of children and family services  may  direct  that
    51  such  person  not  be  hired, as applicable, based on such a conviction,
    52  consistent with article twenty-three-A of the correction law.
    53    (ii) In relation to any child day care program and any enrolled legal-
    54  ly-exempt provider, when a clearance conducted pursuant to this  section
    55  reveals  a  conviction  for a crime other than one set forth in subpara-
    56  graph (iv) of paragraph (a) of subdivision three of  this  section,  and

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     1  unless such crime is eligible for expungement pursuant to section 160.50
     2  of  the  criminal  procedure  law, for any prospective caregiver seeking
     3  enrollment, or applicant to be a director or  operator,  the  office  of
     4  children  and  family  services  may deny the application or enrollment,
     5  consistent with article twenty-three-A of the correction law.
     6    § 53. Subparagraph 1 of paragraph (e)  of  subdivision  2  of  section
     7  378-a  of the social services law, as amended by section 10 of part L of
     8  chapter 56 of the laws of 2015, is amended to read as follows:
     9    (1) Notwithstanding any other provision of law  to  the  contrary,  an
    10  application for certification or approval of a prospective foster parent
    11  or  prospective  adoptive  parent  shall  be denied and, in the event of
    12  death or incapacity of a relative  guardian,  an  agreement  to  provide
    13  payments  to  a  prospective successor guardian pursuant to title ten of
    14  this article shall not be approved  pursuant  to  subparagraph  (ii)  of
    15  paragraph  (b) of subdivision five of section four hundred fifty-eight-b
    16  of this article, as applicable, where a criminal history record  of  the
    17  prospective  foster  parent,  prospective adoptive parent or prospective
    18  successor guardian, as applicable, reveals a conviction for:
    19    (A) a felony conviction at any time  involving:  (i)  child  abuse  or
    20  neglect;  (ii)  spousal  abuse; (iii) a crime against a child, including
    21  child pornography; or (iv) a crime involving violence,  including  rape,
    22  sexual  assault,  or  homicide,  other  than  a crime involving physical
    23  assault or battery; or
    24    (B) a felony conviction  within  the  past  five  years  for  physical
    25  assault,  battery,  or  a  drug-related  offense, unless such offense is
    26  eligible for expungement pursuant to  section  160.50  of  the  criminal
    27  procedure law; or
    28    §  54.  Paragraph  (b)  of  subdivision 4 of section 132 of the social
    29  services law, as added by section 23 of part B of  chapter  436  of  the
    30  laws of 1997, is amended to read as follows:
    31    (b)  When  the  screening  process  indicates  that there is reason to
    32  believe that an applicant or recipient is abusing or dependent on  alco-
    33  hol  or drugs, the social services district shall require a formal alco-
    34  hol or substance abuse assessment, which may include drug testing, to be
    35  performed by an alcohol and/or substance abuse professional credentialed
    36  by the office of [alcoholism and  substance  abuse  services]  addiction
    37  services  and supports.  Provided however, if the applicant or recipient
    38  tests positive for the presence of cannabis, the positive  result  alone
    39  shall  not  be  sufficient  to  establish  a  dependence for purposes of
    40  requiring an individual to participate in a treatment  program  pursuant
    41  to  paragraph  (c)  of this subdivision. The assessment may be performed
    42  directly by the district or pursuant to contract with the district.
    43    § 55. Subdivision 6 of section 422 of  the  social  services  law,  as
    44  amended  by  section  7 of part D of chapter 501 of the laws of 2012, is
    45  amended to read as follows:
    46    6. In all other cases, the record  of  the  report  to  the  statewide
    47  central register shall be expunged ten years after the eighteenth birth-
    48  day of the youngest child named in the report. In the case of a child in
    49  residential  care  the  record  of  the  report to the statewide central
    50  register shall be expunged ten years after the  reported  child's  eigh-
    51  teenth  birthday.  In  any case and at any time, the commissioner of the
    52  office of children and family services may amend any  record  upon  good
    53  cause  shown  and notice to the subjects of the report and other persons
    54  named  in  the  report.  Provided  however,  any  report  indicated  for
    55  maltreatment  based solely on the purchase, possession or consumption of
    56  cannabis, without  a  showing  that  the  child's  physical,  mental  or

        A. 1248--A                         123
 
     1  emotional  condition  was impaired or was in imminent danger of becoming
     2  impaired in accordance with the  definition  of  child  maltreatment  as
     3  provided for in section four hundred twelve of this title is established
     4  by a fair preponderance of the evidence shall immediately be sealed upon
     5  a  request pursuant to subdivision eight of this section or section four
     6  hundred twenty-four-a of this title.
     7    § 56. Intentionally omitted.
     8    § 56-a. Subdivision 3 of section 853 of the general business  law,  as
     9  added by chapter 90 of the laws of 2014, is amended to read as follows:
    10    3.  This article shall not apply to any sale, furnishing or possession
    11  which is for a lawful purpose under [title  five-A  of  article  thirty-
    12  three of the public health law] the cannabis law.
    13    §  56-b.  Subdivision  2  of section 3371 of the public health law, as
    14  amended by chapter 90 of the  laws  of  2014,  is  amended  to  read  as
    15  follows:
    16    2. The prescription monitoring program registry may be accessed, under
    17  such  terms  and  conditions  as  are  established by the department for
    18  purposes of maintaining the security and confidentiality of the informa-
    19  tion contained in the registry, by:
    20    (a) a practitioner, or a  designee  authorized  by  such  practitioner
    21  pursuant  to  paragraph  (b)  of subdivision two of section thirty-three
    22  hundred forty-three-a [or], section thirty-three  hundred  sixty-one  of
    23  this article or section thirty of the cannabis law, for the purposes of:
    24  (i)  informing  the  practitioner  that a patient may be under treatment
    25  with a controlled substance by another practitioner; (ii) providing  the
    26  practitioner  with  notifications  of  controlled  substance activity as
    27  deemed relevant by the  department,  including  but  not  limited  to  a
    28  notification made available on a monthly or other periodic basis through
    29  the  registry of controlled substances activity pertaining to his or her
    30  patient; (iii) allowing the practitioner, through  consultation  of  the
    31  prescription monitoring program registry, to review his or her patient's
    32  controlled  substances  history  as  required  by  section  thirty-three
    33  hundred forty-three-a [or], section thirty-three  hundred  sixty-one  of
    34  this  article  or section thirty of the cannabis law; and (iv) providing
    35  to his or her patient, or person authorized pursuant to paragraph (j) of
    36  subdivision one of this section, upon request, a copy of such  patient's
    37  controlled substance history as is available to the practitioner through
    38  the prescription monitoring program registry; or
    39    (b)  a pharmacist, pharmacy intern or other designee authorized by the
    40  pharmacist pursuant to paragraph (b) of  subdivision  three  of  section
    41  thirty-three hundred forty-three-a of this article, for the purposes of:
    42  (i)  consulting  the  prescription monitoring program registry to review
    43  the controlled substances history of an individual for whom one or  more
    44  prescriptions  for controlled substances or certifications for [marihua-
    45  na] cannabis is presented to the pharmacist, pursuant to  section  thir-
    46  ty-three  hundred forty-three-a of this article; and (ii) receiving from
    47  the department such notifications of controlled  substance  activity  as
    48  are made available by the department; or
    49    (c)  an individual employed by a registered organization as defined in
    50  section three of the  cannabis law, for the purpose  of  consulting  the
    51  prescription  monitoring  program  registry  to  review  the  controlled
    52  substances history of an individual for whom one or more  certifications
    53  for  [marihuana]  cannabis is presented to that registered organization,
    54  pursuant to section thirty-three hundred sixty-four of this  article  or
    55  section  thirty-four of the cannabis law. Unless otherwise authorized by
    56  this article or by the cannabis law, an individual employed by a  regis-

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     1  tered  organization will be provided access to the prescription monitor-
     2  ing program in the sole discretion of the commissioner.
     3    §  57.  Subdivision  (a)  of  section  712 of the family court act, as
     4  amended by section 1 of part K of chapter 56 of the  laws  of  2019,  is
     5  amended to read as follows:
     6    (a) "Person in need of supervision". A person less than eighteen years
     7  of age: (i) who does not attend school in accordance with the provisions
     8  of  part  one  of  article  sixty-five of the education law; (ii) who is
     9  incorrigible, ungovernable or  habitually  disobedient  and  beyond  the
    10  lawful  control of a parent or other person legally responsible for such
    11  child's  care,  or  other  lawful  authority;  (iii)  who  violates  the
    12  provisions  of[: (1) section 221.05; or (2)] section 230.00 of the penal
    13  law; (iv) or who appears to be a sexually exploited child as defined  in
    14  paragraph  (a),  (c)  or  (d) of subdivision one of section four hundred
    15  forty-seven-a of the social services law, but only if the child consents
    16  to the filing of a petition under this article.
    17    § 58. Paragraph (iii) of subdivision (a) of section 1046 of the family
    18  court act, as amended by chapter 984 of the laws of 1981, is amended  to
    19  read as follows:
    20    (iii)  proof that a person repeatedly misuses a drug or drugs or alco-
    21  holic beverages, to the extent that it has or would ordinarily have  the
    22  effect  of  producing in the user thereof a substantial state of stupor,
    23  unconsciousness, intoxication, hallucination, disorientation, or  incom-
    24  petence,  or  a  substantial  impairment  of  judgment, or a substantial
    25  manifestation of irrationality, shall be prima  facie  evidence  that  a
    26  child  of  or  who  is  the  legal  responsibility  of  such person is a
    27  neglected child except that such  drug,  or  alcoholic  beverage  misuse
    28  shall  not be prima facie evidence of neglect when such person is volun-
    29  tarily  and  regularly  participating  in  a  recognized  rehabilitative
    30  program.  Provided  however,  the  sole fact that an individual consumes
    31  cannabis, without a separate finding that the child's physical mental or
    32  emotional condition was impaired or is in imminent  danger  of  becoming
    33  impaired  established  by a fair preponderance of the evidence shall not
    34  be sufficient to establish prima facie evidence of neglect; and
    35    § 59. Section 1 of chapter 174 of the laws of 1968,  constituting  the
    36  New York state urban development corporation act, is amended by adding a
    37  new section 16-ee to read as follows:
    38    §  16-ee.  Loans  to social and economic equity applicants. The corpo-
    39  ration is authorized,  on  the  recommendation  of  the  state  cannabis
    40  control  board, to provide low interest or zero-interest loans to quali-
    41  fied social and economic equity applicants and to provide  funds  neces-
    42  sary for the provision of such loans, as provided for in article four of
    43  the cannabis law.
    44    §  60.  1.  The  division  of state police shall, subject to available
    45  appropriations, increase the number of trained and certified drug recog-
    46  nition experts within the state, and provide increased drug  recognition
    47  awareness  and  advanced  roadside impaired driving enforcement training
    48  under its drug recognition program.
    49    2. a. The commissioner of health shall select one or more  appropriate
    50  higher  education research institutions to conduct a controlled research
    51  study designed  to  evaluate  methodologies  and  technologies  for  the
    52  detection  of  cannabis-impaired driving. Such controlled research study
    53  shall be based on verifiable research documentation  employing  accepted
    54  scientific  research  principles,  and shall include, but not be limited
    55  to:

        A. 1248--A                         125
 
     1    i. the examination, evaluation,  and  review  of  scientifically-sound
     2  methodologies  and technologies to be utilized in recognizing the effect
     3  of cannabis in the impairment of operators of  motor  vehicles,  with  a
     4  focus on distinguishing the indications of an actual and currently pres-
     5  ent  impairing  effect  by cannabis on a person's physical and cognitive
     6  abilities from the presence of cannabis metabolites and potential toler-
     7  ance acquired by a person's habitual cannabis use;
     8    ii. an examination and evaluation of the effectiveness and reliability
     9  of the aforementioned methodologies and technologies  for  detecting  an
    10  actual  and currently present impairing effect by cannabis on a person's
    11  physical and cognitive abilities;
    12    iii. a toxicology study, review and analysis of the impact of the time
    13  and manner of the consumption of cannabis, as well as the impact of  the
    14  potency and form of the cannabis products consumed, on impairment; and
    15    iv.  a  review  and  analysis  of the role and extent of impairment by
    16  cannabis as a causal factor in motor vehicle crashes and the  extent  of
    17  such  cannabis-impaired driving, including an examination of motor vehi-
    18  cle crash, fatality and injury statistics on an annual basis both before
    19  and after the effective date of this subdivision.
    20    b. Any personal identifying information or biological samples gathered
    21  or resulting from the  controlled  research  study  authorized  by  this
    22  subdivision  shall  be  obtained  only from consenting participants in a
    23  laboratory setting, anonymized and kept confidential, and shall  not  be
    24  used  for  law  enforcement  purposes,  genetic testing, DNA analysis or
    25  profiling, or any other purpose but may be utilized only for the specif-
    26  ic and necessary research purposes of such study.    Biological  samples
    27  gathered  or resulting from the controlled research study established by
    28  this subdivision shall be destroyed at the end of the  testing  process,
    29  or not more than 60 days after the sample was taken, whichever is earli-
    30  er.
    31    c.  Upon the completion of the controlled research study authorized by
    32  this subdivision, the one or more higher education research institutions
    33  that conducted such study shall issue a report  on  such  study  to  the
    34  governor,  the  majority leader of the senate, the speaker of the assem-
    35  bly, the minority leader of the  senate,  the  minority  leader  of  the
    36  assembly, and the commissioner of health on or before December 31, 2022.
    37  Such  report  shall  provide  a  description  of  the parameters, scope,
    38  results and findings of such study, and detail the evidence and support-
    39  ing documentation of its findings.
    40    d.  Upon  the  completion  of  such  controlled  research  study   and
    41  submission of the report required by this subdivision, the department of
    42  health  may  promulgate  rules  and regulations to approve and certify a
    43  test for the presence of cannabis for the  purpose  of  detecting  indi-
    44  cations  of an actual and currently present impairing effect by cannabis
    45  on the physical and cognitive abilities of operators of  motor  vehicles
    46  if  such  test:  (i)  is based upon the findings of such study; and (ii)
    47  produces accurate results in  detecting  such  indications.  Such  indi-
    48  cations shall include the presence, amount and timing of the consumption
    49  of  cannabis  having an actual and currently present impairing effect on
    50  the tested person. Any such regulations promulgated by the department of
    51  health shall provide for the safe and proper  use  of  such  technology.
    52  Notwithstanding  the  provisions  of subdivision 6 of section 202 of the
    53  state administrative procedure act or any other law to the contrary, the
    54  department of health shall promulgate such regulations without  adopting
    55  the regulations on an emergency basis, and the provisions of subdivision

        A. 1248--A                         126
 
     1  6  of section 202 of the state administrative procedure act and subdivi-
     2  sion 3 of section 101-a of the executive law shall not be used.
     3    § 61. The commissioner of education shall, subject to available appro-
     4  priations,  establish  a  grant  program  to  provide  awards  to school
     5  districts and boards of cooperative educational services for the purpose
     6  of establishing school-based programs for initiatives such as  anti-vap-
     7  ing  programs, drug prevention and awareness programs, the use of liquid
     8  cannabis in vaping products, and the over-consumption of edible products
     9  that contain cannabis. Provided that such grants shall be awarded by the
    10  commissioner of education to applicants based on factors  including  but
    11  not  limited  to:  (A) community and parental engagement; (B) the appli-
    12  cant's program design to meet the specific needs of  students;  and  (C)
    13  proposal  quality.  Provided further, that such funds shall only be used
    14  to supplement, and not supplant, current local expenditures of  federal,
    15  state  or  local  funds.  Provided further, that no district or board of
    16  cooperative educational services shall receive a grant in excess of  the
    17  total actual grant expenditures incurred by the school district or board
    18  of  cooperative  educational  services  in  the  current school year, as
    19  approved by the commissioner of education.
    20    § 62. The  commissioner  of  the  office  of  addiction  services  and
    21  supports,  in  consultation with the commissioner of health, the commis-
    22  sioner of education, the commissioner of the office  of  mental  health,
    23  and  the  office  of  cannabis  management,  shall, subject to available
    24  appropriations, immediately to the extent possible  execute  the  activ-
    25  ities  described  in subdivision 3 of section 99-jj of the state finance
    26  law, as added by section fifty-one of this act.
    27    § 62-a. Transfer of employees. Notwithstanding any other provision  of
    28  law, rule, or regulation to the contrary, upon the transfer of any func-
    29  tions from the department of health to the office of cannabis management
    30  for  the regulation and control of medical cannabis and cannabinoid hemp
    31  and hemp extract pursuant to this act, employees performing those  func-
    32  tions shall be transferred to the office of cannabis management pursuant
    33  to  subdivision  2  of  section  70  of the civil service law. Employees
    34  transferred pursuant  to  this  section  shall  be  transferred  without
    35  further  examination  or qualification and shall retain their respective
    36  civil service classifications, status  and  collective  bargaining  unit
    37  designations and collective bargaining agreements.
    38    §  62-b.  Transfer  of records. All books, papers, and property of the
    39  department of health related to the administration of the medical  mari-
    40  juana  program and cannabinoid hemp program shall be deemed to be in the
    41  possession of the executive director of the office of  cannabis  manage-
    42  ment  and  shall  continue  to  be  maintained by the office of cannabis
    43  management.
    44    § 62-c. Continuity of authority. For the purpose of succession of  all
    45  functions,  powers,  duties and obligations transferred and assigned to,
    46  devolved upon and assumed by it pursuant to  this  act,  the  office  of
    47  cannabis management shall be deemed and held to constitute the continua-
    48  tion  of the department of health's medical marijuana program and canna-
    49  binoid hemp program.
    50    § 62-d. Completion of  unfinished  business.  Any  business  or  other
    51  matter undertaken or commenced by the department of health pertaining to
    52  or  connected  with the functions, powers, obligations and duties hereby
    53  transferred and assigned to the office of cannabis management and  pend-
    54  ing on the effective date of this act, may be conducted and completed by
    55  the office of cannabis management.

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     1    § 62-e. Continuation of rules and regulations. All rules, regulations,
     2  acts,  orders, determinations, and decisions of the department of health
     3  pertaining to medical marijuana and cannabinoid hemp and  hemp  extract,
     4  including  the functions and powers transferred and assigned pursuant to
     5  this  act,  in  force at the time of such transfer and assumption, shall
     6  continue in full force and effect as rules, regulations,  acts,  orders,
     7  determinations  and decisions of the office of cannabis management until
     8  duly modified or abrogated by  the  board  of  the  office  of  cannabis
     9  management.
    10    § 62-f. Terms occurring in laws, contracts and other documents.  When-
    11  ever  the  department of health, or commissioner thereof, is referred to
    12  or designated in any law, contract or document pertaining to  the  func-
    13  tions, powers, obligations and duties hereby transferred to and assigned
    14  to  the  office  of  cannabis  management, such reference or designation
    15  shall be deemed to refer to the board of  cannabis  management,  or  the
    16  executive director thereof, as applicable.
    17    §  62-g.  Existing rights and remedies preserved. No existing right or
    18  remedy of any character shall be  lost,  impaired  or  affected  by  any
    19  provisions of this act.
    20    § 62-h. Pending actions and proceedings. No action or proceeding pend-
    21  ing  at  the time when this act shall take effect, brought by or against
    22  the department of health, or the commissioner thereof, shall be affected
    23  by any provision of this act, but the same may be prosecuted or defended
    24  in the name of the executive director of the office of cannabis  manage-
    25  ment. In all such actions and proceedings, the executive director of the
    26  office  of  cannabis management, upon application to the court, shall be
    27  substituted as a party.
    28    § 63. Severability. If any provision or term of this act  is  for  any
    29  reason declared unconstitutional or invalid or ineffective by any compe-
    30  tent  jurisdiction,  such  decision shall not affect the validity of the
    31  effectiveness of the remaining portions of this act or any part thereof.
    32    § 64. This act shall take effect immediately; provided, however,  that
    33  sections  six  and  six-a of this act shall take effect six months after
    34  the full cannabis control board created by article two of  the  cannabis
    35  law  has  been appointed and provided that the governor shall notify the
    36  legislative bill drafting commission upon such full appointment in order
    37  that the commission may maintain an accurate and timely  effective  data
    38  base of the official text of the laws of the state of New York in furth-
    39  erance  of  effectuating the provisions of section 44 of the legislative
    40  law and section 70-b of the public officers law; provided, further  that
    41  the  expungement  of  marihuana  convictions under section 160.50 of the
    42  criminal procedure law, added by the amendment in section  seventeen  of
    43  this  act, shall occur promptly and in any event no later than two years
    44  after the effective date of this act; the amendments to article 20-B  of
    45  the  tax law made by sections thirty-four, thirty-seven and thirty-eight
    46  of this act shall not affect the repeal of such  article  and  shall  be
    47  deemed  repealed therewith; and provided, further, that sections thirty-
    48  nine and forty of this act shall take effect April 1,  2022,  and  shall
    49  apply on and after such date to the sale or transfer of adult-use canna-
    50  bis  products to a retail dispensary; provided, further, that the amend-
    51  ments to article 179 of the penal law made  by  section  forty-seven  of
    52  this act shall not affect the repeal of such article and shall be deemed
    53  to  be  repealed  therewith;  provided,  further, that the amendments to
    54  section 89-h of the state finance law made by section fifty of this  act
    55  shall not affect the repeal of such section and shall be deemed repealed
    56  therewith;  provided,  further,  that the amendments to subdivision 3 of

        A. 1248--A                         128
 
     1  section 853 of the general business law made by section  fifty-six-a  of
     2  this act shall not affect the repeal of such section and shall be deemed
     3  repealed therewith; and provided, further, that the amendments to subdi-
     4  vision  2  of  section  3371  of  the  public health law made by section
     5  fifty-six-b of this act shall not affect the expiration of such subdivi-
     6  sion and shall be deemed to expire therewith.
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