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S01527 Summary:

BILL NOS01527A
 
SAME ASSAME AS A01617-A
 
SPONSORKRUEGER
 
COSPNSRBAILEY, BIAGGI, COMRIE, GIANARIS, HOYLMAN, JACKSON, KENNEDY, LIU, MAY, MONTGOMERY, MYRIE, PARKER, RAMOS, RIVERA, SALAZAR, SANDERS, SEPULVEDA, SERRANO
 
MLTSPNSR
 
Amd Various Laws, generally
 
Enacts the "marihuana regulation and taxation act"; relates to the description of marihuana, and the growing of and use of marihuana by persons twenty-one years of age or older; makes technical changes regarding the definition of marihuana; relates to removing certain references to marihuana relating to forfeiture actions; relates to the qualification of certain offenses involving marihuana and exempts certain persons from prosecution for the use, consumption, display, production or distribution of marihuana; relates to the definition of smoking; provides for the licensure of persons authorized to produce, process and sell marihuana; levies an excise tax on certain sales of marihuana; repeals certain provisions of the penal law relating to the criminal sale of marihuana and provisions of the general business law relating to drug paraphernalia; creates the New York state marihuana revenue fund, the New York state drug treatment public education fund, the New York state community grants reinvestment fund, and the marihuana microbusiness and marihuana license revolving loan fund; makes an appropriation therefor.
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S01527 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1527--A
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                    January 15, 2019
                                       ___________
 
        Introduced  by Sens. KRUEGER, BAILEY, BIAGGI, COMRIE, GIANARIS, HOYLMAN,
          JACKSON, KENNEDY, LIU, MAY, MONTGOMERY, MYRIE, PARKER, RAMOS,  RIVERA,
          SALAZAR,  SANDERS, SEPULVEDA, SERRANO -- read twice and ordered print-
          ed, and when printed to be committed to the Committee  on  Finance  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee
 
        AN ACT in relation to constituting chapter 7-A of the consolidated laws,
          in relation to the creation of a new office of cannabis management, as
          an independent  entity  within  the  division  of  alcoholic  beverage
          control,  providing  for the licensure of persons authorized to culti-
          vate, process, distribute and sell cannabis and the use of cannabis by
          persons aged twenty-one or older; to amend the public health  law,  in
          relation  to  the  description of cannabis; to amend the penal law, in
          relation to the growing and use  of  cannabis  by  persons  twenty-one
          years  of age or older; to amend the tax law, in relation to providing
          for the levying of taxes on cannabis; to amend the criminal  procedure
          law,  the  civil practice law and rules, the general business law, the
          state finance law, the executive law, the  penal  law,  the  alcoholic
          beverage control law, the general obligations law, the social services
          law,  the agriculture and markets law and the vehicle and traffic law,
          in relation to making conforming changes; to amend the  public  health
          law,  in  relation  to  the  definition of smoking; to amend the state
          finance law, in relation to establishing the New York  state  cannabis
          revenue  fund,  the New York state drug treatment and public education
          fund and the New York state community  grants  reinvestment  fund;  to
          amend  chapter  90 of the laws of 2014 amending the public health law,
          the tax law, the state finance law,  the  general  business  law,  the
          penal  law  and  the criminal procedure law relating to medical use of
          marihuana, in relation to the effectiveness thereof; to repeal certain
          provisions of the public health law relating to  growing  of  cannabis
          and  medical  use of marihuana; to repeal article 221 of the penal law
          relating to offenses involving marihuana; to repeal paragraph  (f)  of
          subdivision  2  of section 850 of the general business law relating to
          drug related paraphernalia; to repeal certain provisions of the crimi-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07592-04-9

        S. 1527--A                          2
 
          nal procedure law relating to certain criminal actions; and to  repeal
          certain  provisions  of  the  agriculture  and markets law relating to
          industrial hemp

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known and may be cited as the  "marihuana
     2  regulation and taxation act".
     3    §  2.  Chapter  7-A  of  the  consolidated laws is enacted, to read as
     4  follows:
 
     5                    CHAPTER 7-A OF THE CONSOLIDATED LAWS
     6                                CANNABIS LAW
     7                                  ARTICLE 1
     8                SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT;
     9                                 DEFINITIONS
 
    10  Section 1. Short title.
    11          2. Legislative findings and intent
    12          3. Definitions.
 
    13    Section 1. Short title.  This chapter shall be known and may be  cited
    14  and referred to as the "cannabis law".
    15    §  2.  Legislative  findings  and intent.   The legislature finds that
    16  existing marihuana laws have not been beneficial to the welfare  of  the
    17  general public. Existing laws have been ineffective in reducing or curb-
    18  ing  marihuana  use  and have instead resulted in devastating collateral
    19  consequences that inhibit an otherwise law-abiding citizen's ability  to
    20  access  housing,  employment  opportunities,  and  other vital services.
    21  Existing laws have also created an illicit  market  which  represents  a
    22  threat  to  public  health and reduces the ability of the legislature to
    23  deter the accessing of marihuana by minors. Existing marihuana laws have
    24  also disproportionately impacted African-American  and  Latino  communi-
    25  ties.
    26    The intent of this act is to regulate, control, and tax marihuana in a
    27  manner  similar to alcohol, generate millions of dollars in new revenue,
    28  prevent access to marihuana by those under the age of twenty-one  years,
    29  reduce  the illegal drug market and reduce violent crime, reduce partic-
    30  ipation of otherwise law-abiding citizens in the illicit market, end the
    31  racially disparate impact of existing  marihuana  laws  and  create  new
    32  industries and increase employment.
    33    Nothing in this act is intended to limit the authority of any district
    34  government  agency  or office or employers to enact and enforce policies
    35  pertaining to marihuana in the workplace, to  allow  driving  under  the
    36  influence  of  marihuana, to allow individuals to engage in conduct that
    37  endangers others, to allow smoking marihuana in any location where smok-
    38  ing tobacco is prohibited, or to require any individual to engage in any
    39  conduct that violates federal law or to exempt anyone from any  require-
    40  ment  of  federal law or pose any obstacle to the federal enforcement of
    41  federal law.
    42    It is the intent of this act that no child shall be the subject  of  a
    43  child  neglect  or  abuse  investigation or proceeding based solely on a
    44  parent's alleged marihuana use, or activity made lawful by this act.   A
    45  newborn  child's positive toxicology result for marihuana, is not suffi-

        S. 1527--A                          3
 
     1  cient on its own to support a finding of child neglect or abuse.  Enact-
     2  ment  of  this  act shall provide sufficient basis for New York state to
     3  favorably resolve open investigations and to amend and seal individuals'
     4  family  court  records  and  records of indicated child abuse or neglect
     5  reports currently in the statewide central register of child  abuse  and
     6  maltreatment  based solely on the use of marihuana or where the reporter
     7  of suspected abuse or neglect was a  law  enforcement  agency  or  staff
     8  person  and  the  report  was  based solely upon the presence of a child
     9  during a marihuana-related arrest.
    10    § 3. Definitions. Whenever used  in  this  chapter,  unless  otherwise
    11  expressly  stated  or  unless  the  context or subject matter requires a
    12  different meaning, the following terms  shall  have  the  representative
    13  meanings hereinafter set forth or indicated:
    14    1.  "Applicant"  means  a  resident  of New York state aged twenty-one
    15  years or older applying for any cannabis or hemp license or special  use
    16  permit issued by the office of cannabis management.
    17    2.  "Cannabinoid  extractor"  means a person licensed by the office to
    18  acquire, possess, extract and manufacture hemp  cannabis  from  licensed
    19  cannabinoid  growers  for  the  manufacture  and  sale  of hemp cannabis
    20  products marketed for cannabinoid content and used or intended for human
    21  or animal consumption or use.
    22    3. "Cannabinoid grower" means a person licensed by the office, and  in
    23  compliance  with article twenty-nine of the agriculture and markets law,
    24  to acquire, possess, cultivate, and sell hemp cannabis for its  cannabi-
    25  noid content.
    26    4.  "Cannabis"  means  all  parts  of the plant of the genus Cannabis,
    27  whether growing or not; the seeds thereof; the resin extracted from  any
    28  part  of  the  plant; and every compound, manufacture, salt, derivative,
    29  mixture, or preparation of the plant, its seeds or resin.   It does  not
    30  include  the mature stalks of the plant, fiber produced from the stalks,
    31  oil or cake made from the seeds of the plant, any other compound,  manu-
    32  facture,  salt, derivative, mixture, or preparation of the mature stalks
    33  (except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
    34  sterilized seed of the plant which is incapable of germination.  It does
    35  not include hemp cannabis as defined by this section.
    36    5. "Cannabis consumer" means a person twenty-one years of age or older
    37  acting in accordance with any provision of this chapter.
    38    6. "Cannabis flower" means the flower of a plant of the genus Cannabis
    39  that  has  been harvested, dried, and cured, and prior to any processing
    40  whereby the plant material is transformed into a concentrate, including,
    41  but not limited to, concentrated cannabis, or an edible or topical prod-
    42  uct containing cannabis or concentrated cannabis and other  ingredients.
    43  Cannabis flower excludes leaves and stem.
    44    7.  "Cannabis product" or "adult-use cannabis" means cannabis, concen-
    45  trated cannabis, and cannabis-infused products for  use  by  a  cannabis
    46  consumer.
    47    8.  "Cannabis-infused products" means products that have been manufac-
    48  tured and contain either cannabis or  concentrated  cannabis  and  other
    49  ingredients that are intended for use or consumption.
    50    9.  "Cannabis trim" means all parts of the plant of the genus Cannabis
    51  other than cannabis flower that have been harvested, dried,  and  cured,
    52  but prior to any further processing.
    53    10.  "Caring for" means treating a patient, in the course of which the
    54  practitioner has completed a full assessment of  the  patient's  medical
    55  history and current medical condition.
    56    11. "Certification" means a certification made under this chapter.

        S. 1527--A                          4
 
     1    12.  "Certified medical use" includes the acquisition, administration,
     2  cultivation, manufacture, delivery,  harvest,  possession,  preparation,
     3  transfer,  transportation,  or use of cannabis or paraphernalia relating
     4  to the administration of cannabis to  treat  or  alleviate  a  certified
     5  patient's  medical  condition  or symptoms associated with the patient's
     6  medical condition.
     7    13. "Certified patient" means a patient who is a resident of New  York
     8  state or receiving care and treatment in New York state as determined by
     9  the  executive director in regulation, and is certified under this chap-
    10  ter.
    11    14. "Commercial cannabis activity" means the production,  cultivation,
    12  manufacturing,  processing,  possession,  storing,  laboratory  testing,
    13  packaging, labeling, transportation, delivery, or sale of  cannabis  and
    14  cannabis products as provided for in this chapter.
    15    15.  "Concentrated  cannabis"  means: (a) the separated resin, whether
    16  crude or purified, obtained from a plant of the genus Cannabis; or (b) a
    17  material,  preparation,  mixture,  compound  or  other  substance  which
    18  contains more than three percent by weight of delta-9 tetrahydrocannabi-
    19  nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
    20  tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
    21  system.
    22    16.  "Condition" means having one of the following conditions: cancer,
    23  positive status for human  immunodeficiency  virus  or  acquired  immune
    24  deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease,
    25  multiple sclerosis, damage to the nervous tissue of the spinal cord with
    26  objective  neurological  indication of intractable spasticity, epilepsy,
    27  inflammatory bowel disease, neuropathies,  Huntington's  disease,  post-
    28  traumatic  stress  disorder,  pain  that  degrades health and functional
    29  capability where the use of medical cannabis is an alternative to opioid
    30  use, substance use disorder, Alzheimer's, muscular dystrophy,  dystonia,
    31  rheumatoid  arthritis,  autism  or  any other condition certified by the
    32  practitioner.
    33    17. "Cultivation" means growing, cloning, harvesting, drying,  curing,
    34  grading, and trimming of cannabis plants for sale to certain other cate-
    35  gories of cannabis license- and permit-holders.
    36    18.  "Delivery"  means  the  direct delivery of cannabis products by a
    37  retail licensee, microbusiness licensee, or delivery permit holder to  a
    38  cannabis consumer.
    39    19.  "Designated caregiver facility" means a general hospital or resi-
    40  dential health care facility operating pursuant to article  twenty-eight
    41  of  the  public health law; an adult care facility operating pursuant to
    42  title two of article seven of  the  social  services  law;  a  community
    43  mental  health  residence  established  pursuant to section 41.44 of the
    44  mental hygiene law; a hospital operating pursuant to section 7.17 of the
    45  mental hygiene law; a mental  hygiene  facility  operating  pursuant  to
    46  article  thirty-one  of the mental hygiene law; an inpatient or residen-
    47  tial treatment program certified pursuant to article thirty-two  of  the
    48  mental hygiene law; a residential facility for the care and treatment of
    49  persons  with  developmental  disabilities operating pursuant to article
    50  sixteen of the mental hygiene law; a residential treatment facility  for
    51  children  and  youth  operating  pursuant  to  article thirty-one of the
    52  mental hygiene law; a private or  public  school;  research  institution
    53  with  an  internal  review board; or any other facility as determined by
    54  the executive director in regulation; that registers with the office  to
    55  assist  one or more certified patients with the acquisition, possession,
    56  delivery, transportation or administration of medical cannabis.

        S. 1527--A                          5
 
     1    20. "Designated caregiver" means an individual designated by a  certi-
     2  fied  patient  in a registry application. A certified patient may desig-
     3  nate up to five designated caregivers.  The five  designated  caregivers
     4  need  not  include  the  employees  of  a  designated caregiver facility
     5  already authorized to assist certified patients.
     6    21. "Distributor" means any person who sells at wholesale any cannabis
     7  product,  except  medical  cannabis,  for the sale of which a license is
     8  required under the provisions of this chapter.
     9    22. "Executive director" means the executive director of the office of
    10  cannabis management.
    11    23. "Form of medical cannabis" means characteristics  of  the  medical
    12  cannabis  recommended  or  limited  for  a particular certified patient,
    13  including the method of consumption and any particular strain,  variety,
    14  and quantity or percentage of cannabis or particular active ingredient.
    15    24. "Hemp cannabis" means the plant Cannabis sativa L. and any part of
    16  such  plant,  including the seeds thereof and all derivatives, extracts,
    17  cannabinoids, isomers, acids, salts, and salts of isomers, whether grow-
    18  ing or not, with a delta-9  tetrahydrocannabinol  concentration  of  not
    19  more  than  an  amount  determined  by the office in regulation, used or
    20  intended for human or animal consumption  or  use  for  its  cannabinoid
    21  content,  as  determined  by  the executive director in regulation. Hemp
    22  cannabis excludes industrial hemp used or intended  exclusively  for  an
    23  industrial purpose.
    24    25.  "Industrial hemp" means the plant Cannabis sativa L. and any part
    25  of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
    26  extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,
    27  whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
    28  tration  of  not  more  than three-tenths of one percent on a dry weight
    29  basis, used or intended for an industrial purpose.
    30    26. "Labor peace agreement" means an agreement between an entity and a
    31  labor organization that, at a minimum, protects the state's  proprietary
    32  interests  by  prohibiting labor organizations and members from engaging
    33  in picketing, work stoppages, boycotts, and any other economic interfer-
    34  ence with the registered organization's business.
    35    27. "Laboratory testing facility"  means  any  independent  laboratory
    36  capable  of  testing  cannabis  and  cannabis products for adult-use and
    37  medical-use; hemp cannabis; or for all categories of cannabis and canna-
    38  bis products as per regulations set forth by the office.
    39    28. "License" means a written authorization issued by  the  office  of
    40  cannabis management permitting persons to engage in a specified activity
    41  with respect to controlled substances.
    42    29.  "Medical  cannabis"  means  cannabis  as defined in this section,
    43  intended for a certified medical use, as  determined  by  the  executive
    44  director in consultation with the commissioner of health.
    45    30.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
    46  producer for the cultivation of cannabis, a cannabis  processor,  and  a
    47  cannabis  retailer  under  this article; provided such licensee complies
    48  with all requirements imposed by this  article  on  licensed  producers,
    49  processors,  and  retailers  to  the extent the licensee engages in such
    50  activities. A "microbusiness" may distribute its cannabis  and  cannabis
    51  products  to other licensed cannabis businesses and may deliver cannabis
    52  and cannabis products to customers.
    53    31. "Nursery" means a licensee that  produces  only  clones,  immature
    54  plants, seeds, and other agricultural products used specifically for the
    55  planting, propagation, and cultivation of cannabis.

        S. 1527--A                          6
 
     1    32.  "Office"  or  "office  of cannabis management" means the New York
     2  state office of cannabis management.
     3    33. "On-site consumption" means the consumption of cannabis in an area
     4  licensed for such activity by the office.
     5    34.  "Owner"  means an individual with an aggregate ownership interest
     6  of twenty percent or more in a cannabis business  licensed  pursuant  to
     7  this chapter, unless such interest is solely a security, lien, or encum-
     8  brance,  or  an  individual that will be participating in the direction,
     9  control, or management of the licensed cannabis business.
    10    35. "Package" means any  container  or  receptacle  used  for  holding
    11  cannabis or cannabis products.
    12    36. "Permit" means a permit issued pursuant to this chapter.
    13    37.  "Permittee"  means  any  person  to whom a permit has been issued
    14  pursuant to this chapter.
    15    38. "Practitioner" means a practitioner  who:  (i)  is  authorized  to
    16  prescribe  controlled  substances  within the state, (ii) by training or
    17  experience is qualified to treat patients; and  (iii)  completes,  at  a
    18  minimum,  a  two-hour  course as determined by the executive director in
    19  regulation.  A person's status as a practitioner under this  chapter  is
    20  deemed  to  be  a "license" for purposes of section thirty-three hundred
    21  ninety of the public health law and shall be subject to the same revoca-
    22  tion process.
    23    39. "Processor" means a licensee  that  compounds,  blends,  extracts,
    24  infuses,  or  otherwise  manufactures  concentrated cannabis or cannabis
    25  products, but not the cultivation  of  the  cannabis  contained  in  the
    26  cannabis product.
    27    40.  "Registered  organization" means an organization registered under
    28  article four of this chapter.
    29    41. "Registry application" means an application properly completed and
    30  filed with the office of cannabis  management  by  a  certified  patient
    31  under article three of this chapter.
    32    42.  "Registry identification card" means a document that identifies a
    33  certified patient or designated caregiver, as provided under this  chap-
    34  ter.
    35    43. "Retail sale" 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 person,
    37  whether principal, proprietor, agent,  or  employee,  of  any  cannabis,
    38  cannabis  product,  or  hemp cannabis product to a cannabis consumer for
    39  any purpose other than resale.
    40    44. "Retailer" means any person who sells at retail any cannabis prod-
    41  uct, the sale of which a license is required  under  the  provisions  of
    42  this chapter.
    43    45. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    44  any  other  matter  or  substance  which  contains  tobacco  or cannabis
    45  provided that it does not include  the  use  of  an  electronic  smoking
    46  device  that creates an aerosol or vapor, unless local or state statutes
    47  extend prohibitions on smoking to electronic smoking devices.
    48    46. "Warehouse" means and includes a place in which cannabis  products
    49  are housed or stored.
    50    47.  "Wholesale"  means to solicit or receive an order for, to keep or
    51  expose for sale, and to keep with intent to sell, made  by  any  person,
    52  whether  principal,  proprietor,  agent,  or  employee of any adult-use,
    53  medical-use, or hemp cannabis product for purposes of resale.
 
    54                                  ARTICLE 2
    55                NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT

        S. 1527--A                          7
 
     1  Section 9. Establishment of an office of cannabis management.
     2          10. Executive director.
     3          11. Functions,  powers  and  duties  of the office and executive
     4                director.
     5          12. Rulemaking authority.
     6          13. State cannabis advisory board.
     7          14. Disposition of moneys received for license fees.
     8          15. Legal presumptions.
     9          16. Violations of cannabis laws or  regulations;  penalties  and
    10                injunctions.
    11          17. Formal hearings; notice and procedure.
    12          18. Ethics, transparency and accountability.
    13    § 9. Establishment of an office of cannabis management. There is here-
    14  by  established,  within  the division of alcoholic beverage control, an
    15  independent office of cannabis management, which  shall  have  exclusive
    16  jurisdiction to exercise the powers and duties provided by this chapter.
    17  The  office  shall  exercise  its  authority by and through an executive
    18  director.
    19    § 10. Executive director.  The executive director shall  be  appointed
    20  by  the  governor and confirmed by the senate. The executive director of
    21  the state office of cannabis management shall receive an  annual  salary
    22  not to exceed an amount appropriated therefor by the legislature and his
    23  or  her expenses actually and necessarily incurred in the performance of
    24  official duties, unless otherwise provided by the legislature.
    25    § 11. Functions, powers and duties of the office and executive  direc-
    26  tor.    The  office of cannabis management, by and through its executive
    27  director, shall have the following powers and duties:
    28    1. To issue or refuse to issue any  registration,  license  or  permit
    29  provided for in this chapter.
    30    2. To issue temporary or provisional licenses.
    31    3.  To limit, or not to limit, in the executive director's discretion,
    32  the number of registrations, licenses and permits of each  class  to  be
    33  issued  within  the  state  or any political subdivision thereof, and in
    34  connection therewith to prohibit the acceptance of applications for such
    35  classes which have been so limited.   Such  limitations  shall  consider
    36  consumer access, market demand, and geographic diversity.
    37    4.  To  develop  testing standards and certify testing laboratories in
    38  the state.
    39    5. To regulate advertising, marketing, branding, packaging, and label-
    40  ing, including regulating the accuracy of information about cannabis and
    41  cannabis products and restricting marketing and advertising to youth.
    42    6. To revoke, cancel or suspend for cause any  registration,  license,
    43  or permit issued under this chapter and/or to impose a civil penalty for
    44  cause  against  any  holder of a registration, license, or permit issued
    45  pursuant to this chapter.
    46    7. To fix by rule the  standards  of  cultivation  and  processing  of
    47  medical  cannabis,  adult  use cannabis and hemp cannabis, including but
    48  not limited to, the  ability  to  regulate  potency  and  the  types  of
    49  products  which may be manufactured and/or processed, in order to ensure
    50  the health and safety of the public and the use  of  proper  ingredients
    51  and methods in the manufacture of all medical cannabis, adult use canna-
    52  bis, and hemp cannabis to be sold or consumed in the state.
    53    8.  To  hold  hearings,  subpoena  witnesses, compel their attendance,
    54  administer oaths, to examine any person under  oath  and  in  connection
    55  therewith  to require the production of any books or records relative to

        S. 1527--A                          8
 
     1  the inquiry. A subpoena issued under this section shall be regulated  by
     2  the civil practice law and rules.
     3    9. To appoint any necessary directors, deputies, counsels, assistants,
     4  investigators,  and other employees within the limits provided by appro-
     5  priation.  Investigators so employed by the office shall be deemed to be
     6  peace officers for the purpose of enforcing the provisions of the canna-
     7  bis control law or judgements or orders obtained for violation  thereof,
     8  with  all the powers set forth in section 2.20 of the criminal procedure
     9  law.
    10    10. To remove any employee of the office for cause, after giving  such
    11  employee  a  copy  of  the charges against him or her in writing, and an
    12  opportunity to be heard thereon. Any action taken under this subdivision
    13  shall be subject to and in accordance with the civil service law.
    14    11. To inspect or provide for the inspection at any time of any  prem-
    15  ises  where  medical  cannabis,  adult use cannabis, or hemp cannabis is
    16  cultivated, processed, stored, distributed or sold.
    17    12. To prescribe forms of applications for registrations, licenses and
    18  permits under this chapter and of all reports deemed  necessary  by  the
    19  office.
    20    13.  To  delegate  the  powers  provided in this section to such other
    21  officers or employees or other state agencies as may be deemed appropri-
    22  ate by the executive director.
    23    14. To appoint such advisory groups and committees  as  the  executive
    24  director  deems  necessary  to provide assistance to the office to carry
    25  out the purposes and objectives of this chapter.
    26    15. To exercise the powers and perform the duties in relation  to  the
    27  administration of the office as are necessary but not specifically vest-
    28  ed  by  this  chapter, including but not limited to budgetary and fiscal
    29  matters.
    30    16. To develop and establish minimum criteria for certifying employees
    31  to work in the cannabis  industry,  including  the  establishment  of  a
    32  cannabis workers certification program.
    33    17.  To  enter  into contracts, memoranda of understanding, and agree-
    34  ments as deemed appropriate by the executive director to effectuate  the
    35  policy and purpose of this chapter.
    36    18.  To  issue  and  administer low interest or zero-interest loans to
    37  qualified social equity applicants.
    38    19. If the executive director finds that  public  health,  safety,  or
    39  welfare imperatively requires emergency action, and incorporates a find-
    40  ing  to  that effect in an order, summary suspension of a license may be
    41  ordered, effective on the date specified in such order or  upon  service
    42  of  a  certified  copy of such order on the licensee, whichever shall be
    43  later,  pending  proceedings  for  revocation  or  other  action.  These
    44  proceedings  shall  be  promptly instituted and determined. In addition,
    45  the executive director may order the administrative seizure of  product,
    46  issue a stop order, or take any other action necessary to effectuate and
    47  enforce the policy and purpose of this chapter.
    48    20.  To  issue regulations, declaratory rulings, guidance and industry
    49  advisories.
    50    § 12. Rulemaking authority.  1. The office shall  perform  such  acts,
    51  prescribe  such  forms and propose such rules, regulations and orders as
    52  it may deem necessary or proper to fully effectuate  the  provisions  of
    53  this chapter.
    54    2. The office shall have the power to promulgate any and all necessary
    55  rules  and  regulations governing the cultivation, manufacture, process-
    56  ing,  transportation,  distribution,  testing,  delivery,  and  sale  of

        S. 1527--A                          9

     1  medical  cannabis,  adult use cannabis, and hemp cannabis, including but
     2  not limited to the registration of organizations authorized  to  traffic
     3  in medical cannabis, the licensing and/or permitting of adult-use canna-
     4  bis  cultivators,  processors, cooperatives, distributors, laboratories,
     5  and retailers, and the licensing of hemp cannabis producers and process-
     6  ors, including, but not limited to:
     7    (a) prescribing forms and establishing application, reinstatement, and
     8  renewal fees;
     9    (b)  the  qualifications  and  selection  criteria  for  registration,
    10  licensing, or permitting;
    11    (c)  the  books and records to be created and maintained by registered
    12  organizations, licensees, and permittees, including the  reports  to  be
    13  made  thereon  to  the  office,  and inspection of any and all books and
    14  records maintained by any registered organization, licensee, or permitee
    15  and on the premise of any registered organization, licensee, or  permit-
    16  tee;
    17    (d)  methods of producing, processing, and packaging cannabis, medical
    18  cannabis, cannabis-infused products,  concentrated  cannabis,  and  hemp
    19  cannabis; conditions of sanitation, and standards of ingredients, quali-
    20  ty,  and  identity of cannabis products cultivated, processed, packaged,
    21  or sold by registered organizations and licensees;
    22    (e) security requirements for adult-use cannabis  retail  dispensaries
    23  and  premises where cannabis products, medical cannabis, and hemp canna-
    24  bis, are cultivated, produced, processed, or stored, and  safety  proto-
    25  cols for registered organizations, licensees and their employees; and
    26    (f) hearing procedures and additional causes for cancellation, revoca-
    27  tion, and/or civil penalties against any person registered, licensed, or
    28  permitted by the authority.
    29    3. The office shall promulgate rules and regulations that are designed
    30  to:
    31    (a)  prevent  the  distribution of adult-use cannabis to persons under
    32  twenty-one years of age;
    33    (b) prevent the revenue from the sale of cannabis from going to crimi-
    34  nal enterprises, gangs, and cartels;
    35    (c) prevent the diversion of cannabis from this state to other states;
    36    (d) prevent cannabis activity that is legal under state law from being
    37  used as a cover or pretext for the trafficking of other illegal drugs or
    38  other illegal activity;
    39    (e) prevent drugged driving and  the  exacerbation  of  other  adverse
    40  public health consequences associated with the use of cannabis;
    41    (f) prevent the growing of cannabis on public lands; and
    42    (g) prevent the possession and use of cannabis on federal property.
    43    4.  The office, in consultation with the department of agriculture and
    44  markets and the department of environmental conservation, shall  promul-
    45  gate  necessary  rules  and regulations governing the safe production of
    46  cannabis, including environmental and energy standards and  restrictions
    47  on the use of pesticides.
    48    §  13. State cannabis advisory board.  1. The executive director shall
    49  establish within the office a state cannabis  advisory  board  prior  to
    50  engaging  in  rulemaking, which may consider all matters submitted to it
    51  by the executive director, and advise the office and the legislature  on
    52  cannabis cultivation, processing, distribution, transport, equity in the
    53  cannabis  industry,  public  health concerns related to cannabis, and on
    54  the testing and sale of cannabis and cannabis products.
    55    2. The executive director of the office shall serve as the chairperson
    56  of the board. The vice chairperson  shall  be  elected  from  among  the

        S. 1527--A                         10
 
     1  members  of  the board by the members of such board, and shall represent
     2  the board in the absence of the chairperson at all official board  func-
     3  tions.
     4    3. The members of the board shall be appointed by the temporary presi-
     5  dent  of the senate and the speaker of the assembly and shall receive no
     6  compensation for their services but shall be allowed  their  actual  and
     7  necessary  expenses incurred in the performance of their duties as board
     8  members.
     9    4. The executive director shall  promulgate  regulations  establishing
    10  the  number  of  members on the board, the term of the board members and
    11  any other terms or conditions  regarding  the  state  cannabis  advisory
    12  board.
    13    5.  Every effort shall be made to ensure a balanced and diverse board,
    14  which shall have expertise in public and  behavioral  health,  substance
    15  use  disorder  treatment,  effective rehabilitative treatment for adults
    16  and juveniles, economic  development,  environmental  conservation,  job
    17  training  and placement, criminal justice, and drug policy. Further, the
    18  board shall include residents from communities most impacted by cannabis
    19  prohibition, people with prior drug convictions, the formerly  incarcer-
    20  ated,  and representatives of organizations serving communities impacted
    21  by past federal and state drug policies.
    22    § 14. Disposition of moneys received for license  fees.    The  office
    23  shall  establish  a  scale  of application, licensing, and renewal fees,
    24  based upon the cost of enforcing this chapter and the size of the canna-
    25  bis business being licensed, as follows:
    26    1. The office shall charge each registered organization, licensee  and
    27  permittee  a  registration, licensure or permit fee, and renewal fee, as
    28  applicable.  The fees may vary depending upon the nature  and  scope  of
    29  the different registration, licensure and permit activities.
    30    2. The total fees assessed pursuant to this chapter shall be set at an
    31  amount  that  will  generate  sufficient total revenue to, at a minimum,
    32  fully cover the total costs of administering this chapter.
    33    3. All registration and licensure fees shall be set on a scaled  basis
    34  by the office, dependent on the size and capacity of the business.
    35    4.  The  office shall deposit all fees collected in the New York state
    36  cannabis revenue fund established pursuant to section ninety-nine-hh  of
    37  the state finance law.
    38    §  15.  Legal  presumptions.   The action, proceedings, authority, and
    39  orders of the office in enforcing the provisions of the cannabis law and
    40  applying them to specific cases shall at all times  be  regarded  as  in
    41  their  nature  judicial,  and  shall  be treated as prima facie just and
    42  legal.
    43    § 16. Violations  of  cannabis  laws  or  regulations;  penalties  and
    44  injunctions.    1. A person who willfully violates any provision of this
    45  chapter, or any regulation lawfully made or established  by  any  public
    46  officer  under  authority  of this chapter, the punishment for violating
    47  which is not otherwise prescribed by this chapter or any other  law,  is
    48  punishable  by  imprisonment  not  exceeding  one year, or by a fine not
    49  exceeding five thousand dollars or by both.
    50    2. Any person  who  violates,  disobeys  or  disregards  any  term  or
    51  provision  of  this chapter or of any lawful notice, order or regulation
    52  pursuant thereto for which a civil penalty is  not  otherwise  expressly
    53  prescribed  by  law,  shall  be  liable to the people of the state for a
    54  civil penalty of not to exceed five  thousand  dollars  for  every  such
    55  violation.

        S. 1527--A                         11
 
     1    3.  The penalty provided for in subdivision one of this section may be
     2  recovered by an action brought by the executive director in any court of
     3  competent jurisdiction.
     4    4.  Such civil penalty may be released or compromised by the executive
     5  director before the matter has been referred to  the  attorney  general,
     6  and  where  such  matter  has been referred to the attorney general, any
     7  such penalty may be released or compromised and any action commenced  to
     8  recover the same may be settled and discontinued by the attorney general
     9  with the consent of the executive director.
    10    5.  It  shall  be the duty of the attorney general upon the request of
    11  the executive director to bring an action for an injunction against  any
    12  person  who  violates,  disobeys  or disregards any term or provision of
    13  this chapter or of any lawful notice, order or regulation pursuant ther-
    14  eto; provided, however, that the executive director  shall  furnish  the
    15  attorney  general with such material, evidentiary matter or proof as may
    16  be requested by the attorney general for  the  prosecution  of  such  an
    17  action.
    18    6. It is the purpose of this section to provide additional and cumula-
    19  tive  remedies,  and  nothing  herein  contained  shall abridge or alter
    20  rights of action or remedies now or hereafter existing,  nor  shall  any
    21  provision  of  this  section,  nor  any  action  done  by virtue of this
    22  section, be construed as estopping the state, persons or  municipalities
    23  in the exercising of their respective rights.
    24    §  17. Formal hearings; notice and procedure.  1. The executive direc-
    25  tor, or any person designated by him or her for this purpose, may  issue
    26  subpoenas  and administer oaths in connection with any hearing or inves-
    27  tigation under or pursuant to this chapter, and it shall be the duty  of
    28  the executive director and any persons designated by him or her for such
    29  purpose  to  issue  subpoenas  at  the request of and upon behalf of the
    30  respondent.
    31    2. The executive director and those designated by him or her shall not
    32  be bound by the laws of evidence in the conduct of hearing  proceedings,
    33  but  the  determination  shall  be  founded  upon sufficient evidence to
    34  sustain it.
    35    3. Notice of hearing shall be served at least fifteen  days  prior  to
    36  the  date  of  the hearing, provided that, whenever because of danger to
    37  the public health, safety or  welfare  it  appears  prejudicial  to  the
    38  interests  of  the people of the state to delay action for fifteen days,
    39  the executive director may serve the respondent with an order  requiring
    40  certain  action  or  the  cessation of certain activities immediately or
    41  within a specified period of less than fifteen days.
    42    4. Service of notice of hearing or order shall  be  made  by  personal
    43  service  or  by  registered or certified mail. Where service, whether by
    44  personal service or by registered or certified mail,  is  made  upon  an
    45  incompetent,  partnership,  or  corporation,  it  shall be made upon the
    46  person or persons designated to  receive  personal  service  by  article
    47  three of the civil practice law and rules.
    48    5.  At a hearing, the respondent may appear personally, shall have the
    49  right of counsel, and may cross-examine witnesses against him or her and
    50  produce evidence and witnesses in his or her behalf.
    51    6. Following a hearing, the executive director  may  make  appropriate
    52  determinations and issue a final order in accordance therewith.
    53    7.  The  executive director may adopt, amend and repeal administrative
    54  rules and regulations governing  the  procedures  to  be  followed  with
    55  respect  to  hearings,  such  rules to be consistent with the policy and

        S. 1527--A                         12
 
     1  purpose of this chapter and the effective and fair  enforcement  of  its
     2  provisions.
     3    8.  The provisions of this section shall be applicable to all hearings
     4  held pursuant to this chapter, except where  other  provisions  of  this
     5  chapter  applicable  thereto  are inconsistent therewith, in which event
     6  such other provisions shall apply.
     7    § 18. Ethics, transparency and  accountability.    No  member  of  the
     8  office  or any officer, deputy, assistant, inspector or employee thereof
     9  shall have any interest, direct or indirect, either  proprietary  or  by
    10  means  of  any  loan, mortgage or lien, or in any other manner, in or on
    11  any premises where adult use cannabis, medical cannabis or hemp cannabis
    12  is cultivated, processed, distributed or sold; nor shall he or she  have
    13  any  interest,  direct  or indirect, in any business wholly or partially
    14  devoted to the cultivation, processing, distribution, sale,  transporta-
    15  tion  or  storage of adult use cannabis, medical cannabis or hemp canna-
    16  bis, or own any stock in any corporation which has any interest, propri-
    17  etary or otherwise, direct or indirect, in any premises where adult  use
    18  cannabis,  medical  cannabis  or hemp cannabis is cultivated, processed,
    19  distributed or sold, or in any business wholly or partially  devoted  to
    20  the cultivation, processing, distribution, sale, transportation or stor-
    21  age of adult use cannabis, medical cannabis or hemp cannabis, or receive
    22  any commission or profit whatsoever, direct or indirect, from any person
    23  applying  for  or  receiving  any license or permit provided for in this
    24  chapter, or hold any other elected or appointed  public  office  in  the
    25  state  or  in  any political subdivision. Anyone who violates any of the
    26  provisions of this section shall be removed and shall divulge themselves
    27  of such direct or indirect interests, in addition to any  other  penalty
    28  provided by law.
 
    29                                  ARTICLE 3
    30                              MEDICAL CANNABIS
 
    31  Section 30. Certification of patients.
    32          31. Lawful medical use.
    33          32. Registry identification cards.
    34          33. Registration as a designated caregiver facility.
    35          34. Registered organizations.
    36          35. Registering of registered organizations.
    37          36. Intentionally omitted.
    38          37. Reports of registered organizations.
    39          38. Evaluation; research programs; report by office.
    40          39. Cannabis research license.
    41          40. Registered organizations and adult-use cannabis.
    42          41. Relation to other laws.
    43          42. Protections for the medical use of cannabis.
    44          43. Regulations.
    45          44. Suspend; terminate.
    46          45. Pricing.
    47    §  30. Certification of patients.  1. A patient certification may only
    48  be issued if:
    49    (a) the patient has a condition,  which  shall  be  specified  in  the
    50  patient's health care record;
    51    (b)  the  practitioner by training or experience is qualified to treat
    52  the condition;
    53    (c) the patient is under the practitioner's continuing  care  for  the
    54  condition; and

        S. 1527--A                         13
 
     1    (d)  in  the  practitioner's  professional  opinion and review of past
     2  treatments, the patient is likely to receive therapeutic  or  palliative
     3  benefit  from  the  primary  or adjunctive treatment with medical use of
     4  cannabis for the condition.
     5    2.  The  certification  shall include: (a) the name, date of birth and
     6  address of the patient; (b) a statement that the patient has a condition
     7  and the patient is under the practitioner's care for the condition;  (c)
     8  a  statement  attesting that all requirements of subdivision one of this
     9  section have been satisfied; (d) the date; and (e)  the  name,  address,
    10  telephone  number, and the signature of the certifying practitioner. The
    11  executive director may require  by  regulation  that  the  certification
    12  shall be on a form provided by the office. The practitioner may state in
    13  the  certification that, in the practitioner's professional opinion, the
    14  patient would benefit from medical cannabis only until a specified date.
    15  The practitioner may state in the certification that, in the practition-
    16  er's professional opinion, the patient is terminally ill  and  that  the
    17  certification shall not expire until the patient dies.
    18    3.  In  making a certification, the practitioner may consider the form
    19  of medical cannabis the patient should consume, including the method  of
    20  consumption and any particular strain, variety, and quantity or percent-
    21  age of cannabis or particular active ingredient, and appropriate dosage.
    22  The  practitioner  may  state in the certification any recommendation or
    23  limitation the practitioner makes, in his or her  professional  opinion,
    24  concerning the appropriate form or forms of medical cannabis and dosage.
    25    4.  Every  practitioner  shall  consult  the  prescription  monitoring
    26  program registry prior to making or issuing  a  certification,  for  the
    27  purpose  of  reviewing  a  patient's  controlled  substance history. For
    28  purposes of this section, a practitioner may  authorize  a  designee  to
    29  consult  the  prescription  monitoring  program  registry  on his or her
    30  behalf, provided that such designation is  in  accordance  with  section
    31  thirty-three hundred forty-three-a of the public health law.
    32    5.  The  practitioner  shall  give  the certification to the certified
    33  patient, and place a copy in the patient's health care record.
    34    6. No practitioner shall issue a certification under this section  for
    35  themselves.
    36    7.  A  registry  identification  card  based  on a certification shall
    37  expire one year after the date the certification is signed by the  prac-
    38  titioner.
    39    8.  (a)  If  the practitioner states in the certification that, in the
    40  practitioner's professional opinion,  the  patient  would  benefit  from
    41  medical  cannabis only until a specified earlier date, then the registry
    42  identification card shall expire on that date; (b) if  the  practitioner
    43  states  in  the  certification  that  in the practitioner's professional
    44  opinion the patient is terminally ill and that the  certification  shall
    45  not expire until the patient dies, then the registry identification card
    46  shall state that the patient is terminally ill and that the registration
    47  card  shall  not  expire until the patient dies; (c) if the practitioner
    48  re-issues the certification to terminate the certification on an earlier
    49  date, then the registry identification card shall expire  on  that  date
    50  and  shall  be  promptly  destroyed by the certified patient; (d) if the
    51  certification so provides, the registry identification card shall  state
    52  any  recommendation  or limitation by the practitioner as to the form or
    53  forms of medical cannabis or dosage for the certified patient;  and  (e)
    54  the executive director shall make regulations to implement this subdivi-
    55  sion.

        S. 1527--A                         14
 
     1    §  31. Lawful medical use. The possession, acquisition, use, delivery,
     2  transfer, transportation, or administration of  medical  cannabis  by  a
     3  certified patient, designated caregiver or the employees of a designated
     4  caregiver  facility,  for  certified  medical use, shall be lawful under
     5  this article provided that:
     6    1. the cannabis that may be possessed by a certified patient shall not
     7  exceed a sixty-day supply of the dosage if determined by the practition-
     8  er, consistent with any guidance and regulations issued by the executive
     9  director,  provided  that  during  the  last seven days of any sixty-day
    10  period, the certified patient may also possess up to such amount for the
    11  next sixty-day period;
    12    2. the cannabis that may be possessed by  designated  caregivers  does
    13  not exceed the quantities referred to in subdivision one of this section
    14  for  each  certified  patient  for  whom the caregiver possesses a valid
    15  registry identification card, up to five certified patients;
    16    3. the cannabis that may be possessed by designated caregiver  facili-
    17  ties  does  not  exceed the quantities referred to in subdivision one of
    18  this section for each certified patient under the care or  treatment  of
    19  the facility;
    20    4.  the form or forms of medical cannabis that may be possessed by the
    21  certified patient, designated caregiver or designated caregiver facility
    22  pursuant to a certification shall be in compliance with any  recommenda-
    23  tion  or  limitation  by  the  practitioner  as  to the form or forms of
    24  medical cannabis or dosage for the  certified  patient  in  the  certif-
    25  ication;
    26    5. the medical cannabis shall be kept in the original package in which
    27  it  was dispensed under this article, except for the portion removed for
    28  immediate  consumption  for  certified  medical  use  by  the  certified
    29  patient; and
    30    6.  in  the  case  of  a  designated  caregiver facility, the employee
    31  assisting the patient has been designated  as  such  by  the  designated
    32  caregiver facility.
    33    §  32. Registry identification cards.  1. Upon approval of the certif-
    34  ication, the office shall issue registry identification cards for certi-
    35  fied patients and designated caregivers. A registry identification  card
    36  shall  expire  as  provided  in this article or as otherwise provided in
    37  this section.  The office shall begin  issuing  registry  identification
    38  cards  as  soon as practicable after the certifications required by this
    39  chapter are granted. The office may specify a form for a registry appli-
    40  cation, in which case the office shall  provide  the  form  on  request,
    41  reproductions  of  the form may be used, and the form shall be available
    42  for downloading from the office's website.
    43    2. To obtain, amend or renew a registry identification card, a  certi-
    44  fied  patient  or designated caregiver shall file a registry application
    45  with the office, unless otherwise exempted by the executive director  in
    46  regulation.  The  registry  application  or  renewal  application  shall
    47  include:
    48    (a) in the case of a certified patient:
    49    (i) the patient's certification, a new written certification shall  be
    50  provided with a renewal application;
    51    (ii) the name, address, and date of birth of the patient;
    52    (iii) the date of the certification;
    53    (iv)  if  the  patient  has  a registry identification card based on a
    54  current valid certification,  the  registry  identification  number  and
    55  expiration date of that registry identification card;

        S. 1527--A                         15
 
     1    (v)  the  specified  date  until  which the patient would benefit from
     2  medical cannabis, if the certification states such a date;
     3    (vi) the name, address, and telephone number of the certifying practi-
     4  tioner;
     5    (vii)  any  recommendation or limitation by the practitioner as to the
     6  form or forms of medical cannabis or dosage for the certified patient;
     7    (viii) if the certified patient designates a designated caregiver, the
     8  name, address, and date of birth of the designated caregiver, and  other
     9  individual identifying information required by the office;
    10    (ix) if the designated caregiver is a cannabis research license holder
    11  under  this  chapter,  the  name  of  the  organization  conducting  the
    12  research, the address, phone number, name of the individual leading  the
    13  research  or  appropriate  designee,  and  other identifying information
    14  required by the executive director; and
    15    (x) other individual identifying information required by the office;
    16    (b) in the case of a designated caregiver:
    17    (i) the name, address, and date of birth of the designated caregiver;
    18    (ii) if the designated caregiver has a registry  identification  card,
    19  the  registry identification number and expiration date of that registry
    20  identification card; and
    21    (iii) other individual identifying information required by the office;
    22    (c) a statement that a false statement  made  in  the  application  is
    23  punishable under section 210.45 of the penal law;
    24    (d)  the  date  of  the application and the signature of the certified
    25  patient or designated caregiver, as the case may be;
    26    (e) any other requirements determined by the executive director.
    27    3. Where a certified patient is under the age of eighteen or otherwise
    28  incapable of consent:
    29    (a) The application for a registry identification card shall  be  made
    30  by  the  person  responsible  for  making  health care decisions for the
    31  patient.
    32    (b) The designated caregiver shall be: (i) a parent or legal  guardian
    33  of  the certified patient; (ii) a person designated by a parent or legal
    34  guardian; (iii) an employee of a designated caregiver facility,  includ-
    35  ing  a  cannabis  research license holder; or (iv) an appropriate person
    36  approved by the office upon a sufficient showing that no parent or legal
    37  guardian is appropriate or available.
    38    4. No person may be a designated caregiver  if  the  person  is  under
    39  twenty-one  years  of  age  unless  a  sufficient showing is made to the
    40  office that the person should be permitted  to  serve  as  a  designated
    41  caregiver.  The  requirements  for such a showing shall be determined by
    42  the executive director.
    43    5. No person may be a designated caregiver for more than  five  certi-
    44  fied patients at one time; provided, however, that this limitation shall
    45  not  apply  to  a  designated  caregiver  facility, or cannabis research
    46  license holder as defined by this chapter.
    47    6. If a certified patient wishes to change or  terminate  his  or  her
    48  designated  caregiver,  for whatever reason, the certified patient shall
    49  notify the office as soon as  practicable.  The  office  shall  issue  a
    50  notification to the designated caregiver that their registration card is
    51  invalid  and  must be promptly destroyed. The newly designated caregiver
    52  must comply with all requirements set forth in this section.
    53    7. If the certification so provides, the registry identification  card
    54  shall contain any recommendation or limitation by the practitioner as to
    55  the  form  or  forms  of  medical  cannabis  or dosage for the certified
    56  patient.

        S. 1527--A                         16
 
     1    8. The office shall issue separate registry identification  cards  for
     2  certified patients and designated caregivers as soon as reasonably prac-
     3  ticable  after  receiving  a  complete  application  under this section,
     4  unless it determines that the application  is  incomplete  or  factually
     5  inaccurate, in which case it shall promptly notify the applicant.
     6    9.  If the application of a certified patient designates an individual
     7  as a designated caregiver who is not authorized to be a designated care-
     8  giver, that portion of the application shall be denied by the office but
     9  that shall not affect the approval of the balance of the application.
    10    10. A registry identification card shall:
    11    (a) contain the name of the certified patient or the designated  care-
    12  giver as the case may be;
    13    (b)  contain  the date of issuance and expiration date of the registry
    14  identification card;
    15    (c) contain a registry identification number for the certified patient
    16  or designated caregiver, as the case may be and a  registry  identifica-
    17  tion number;
    18    (d)  contain a photograph of the individual to whom the registry iden-
    19  tification card is being issued, which shall be obtained by  the  office
    20  in  a  manner  specified  by  the  executive  director  in  regulations;
    21  provided, however, that if the office  requires  certified  patients  to
    22  submit  photographs for this purpose, there shall be a reasonable accom-
    23  modation of certified patients who are confined to their  homes  due  to
    24  their  medical  conditions  and  may therefore have difficulty procuring
    25  photographs;
    26    (e) be a secure document as determined by the office;
    27    (f) plainly state any recommendation or limitation by the practitioner
    28  as to the form or forms of medical cannabis or dosage for the  certified
    29  patient; and
    30    (g) any other requirements determined by the executive director.
    31    11.  A certified patient or designated caregiver who has been issued a
    32  registry identification card shall notify the office of  any  change  in
    33  his or her name or address or, with respect to the patient, if he or she
    34  ceases  to have the condition noted on the certification within ten days
    35  of such change. The certified patient's or designated caregiver's regis-
    36  try identification card shall be deemed invalid and  shall  be  promptly
    37  destroyed.
    38    12.  If  a  certified patient or designated caregiver loses his or her
    39  registry identification card, he or she shall notify the  office  within
    40  ten days of losing the card. The office shall issue a new registry iden-
    41  tification card as soon as practicable, which may contain a new registry
    42  identification number, to the certified patient or designated caregiver,
    43  as the case may be.
    44    13.  The  office  shall maintain a confidential list of the persons to
    45  whom it has issued registry identification cards. Individual identifying
    46  information obtained by the office under this article shall be confiden-
    47  tial and exempt from disclosure under article six of the public officers
    48  law.  Notwithstanding this subdivision, the office may notify any appro-
    49  priate law enforcement agency of information relating to  any  violation
    50  or suspected violation of this article.
    51    14.  The office shall verify to law enforcement personnel in an appro-
    52  priate case whether a registry identification card is valid.
    53    15. If a certified patient or designated caregiver willfully  violates
    54  any  provision  of this article as determined by the executive director,
    55  his or  her  certification  and  registry  identification  card  may  be

        S. 1527--A                         17
 
     1  suspended  or revoked. This is in addition to any other penalty that may
     2  apply.
     3    §  33. Registration as a designated caregiver facility.  1. To obtain,
     4  amend or renew a registration as a designated  caregiver  facility,  the
     5  facility shall file a registry application with the office. The registry
     6  application or renewal application shall include:
     7    (a) the facility's full name and address;
     8    (b) operating certificate or license number where appropriate;
     9    (c)  printed  name,  title,  and  signature  of an authorized facility
    10  representative;
    11    (d) a statement that the facility agrees to secure and  ensure  proper
    12  handling of all medical cannabis products;
    13    (e)  an  acknowledgement  that a false statement in the application is
    14  punishable under section 210.45 of the penal law; and
    15    (f) any other information that may be required by the executive direc-
    16  tor.
    17    2. Prior to issuing or renewing a designated caregiver facility regis-
    18  tration, the office may verify the information submitted by  the  appli-
    19  cant.  The applicant shall provide, at the office's request, such infor-
    20  mation and documentation, including any consents or authorizations  that
    21  may be necessary for the office to verify the information.
    22    3.  The  office shall approve, deny or determine incomplete or inaccu-
    23  rate an initial or renewal application within thirty days of receipt  of
    24  the  application.  If  the application is approved within the thirty-day
    25  period, the office shall issue a registration as soon as  is  reasonably
    26  practicable.
    27    4. An applicant shall have thirty days from the date of a notification
    28  of an incomplete or factually inaccurate application to submit the mate-
    29  rials  required  to  complete, revise or substantiate information in the
    30  application. If the applicant fails to  submit  the  required  materials
    31  within  such  thirty-day time period, the application shall be denied by
    32  the office.
    33    5. Registrations issued under this section shall remain valid for  two
    34  years from the date of issuance.
    35    § 34. Registered organizations.  1. A registered organization shall be
    36  a for-profit business entity or not-for-profit corporation organized for
    37  the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
    38  ing, transporting, distributing or  dispensing  cannabis  for  certified
    39  medical use.
    40    2.  The acquiring, possession, manufacture, sale, delivery, transport-
    41  ing, distributing or dispensing of  medical  cannabis  by  a  registered
    42  organization  under  this  article  in  accordance with its registration
    43  under this article or a renewal thereof shall be lawful under this chap-
    44  ter.
    45    3. Each registered organization shall  contract  with  an  independent
    46  laboratory permitted by the office to test the medical cannabis produced
    47  by the registered organization. The executive director shall approve the
    48  laboratory  used by the registered organization and may require that the
    49  registered organization use a particular testing laboratory.  The execu-
    50  tive director is authorized to issue regulations requiring the laborato-
    51  ry to perform certain tests and services.
    52    4. (a) A registered organization may lawfully, in  good  faith,  sell,
    53  deliver,  distribute or dispense medical cannabis to a certified patient
    54  or designated caregiver upon presentation to the registered organization
    55  of a valid registry identification card for that  certified  patient  or
    56  designated  caregiver.   When presented with the registry identification

        S. 1527--A                         18
 
     1  card, the registered organization shall provide to the certified patient
     2  or designated caregiver a receipt, which shall state: the name, address,
     3  and registry identification number of the registered  organization;  the
     4  name and registry identification number of the certified patient and the
     5  designated caregiver, if any; the date the cannabis was sold; any recom-
     6  mendation  or  limitation by the practitioner as to the form or forms of
     7  medical cannabis or dosage for the certified patient; and the  form  and
     8  the quantity of medical cannabis sold. The registered organization shall
     9  retain  a  copy  of the registry identification card and the receipt for
    10  six years.
    11    (b) The proprietor of a registered organization shall file or cause to
    12  be filed any receipt and certification information with  the  office  by
    13  electronic  means  on  a real-time basis as the executive director shall
    14  require by regulation. When filing receipt and certification information
    15  electronically pursuant to this paragraph, the proprietor of the  regis-
    16  tered   organization   shall  dispose  of  any  electronically  recorded
    17  prescription information in such manner as the executive director  shall
    18  by regulation require.
    19    5.  (a)  No  registered  organization may sell, deliver, distribute or
    20  dispense to any certified patient or designated caregiver a quantity  of
    21  medical cannabis larger than that individual would be allowed to possess
    22  under this chapter.
    23    (b)  When dispensing medical cannabis to a certified patient or desig-
    24  nated caregiver, the registered organization:  (i) shall not dispense an
    25  amount greater than a sixty-day supply to a certified patient until  the
    26  certified  patient  has  exhausted  all  but a seven day supply provided
    27  pursuant to a previously issued certification; and (ii) shall verify the
    28  information in subparagraph (i) of  this  paragraph  by  consulting  the
    29  prescription monitoring program registry under this article.
    30    (c)  Medical  cannabis  dispensed to a certified patient or designated
    31  caregiver by a registered organization shall conform to any  recommenda-
    32  tion  or  limitation  by  the  practitioner  as  to the form or forms of
    33  medical cannabis or dosage for the certified patient.
    34    6. When a registered  organization  sells,  delivers,  distributes  or
    35  dispenses medical cannabis to a certified patient or designated caregiv-
    36  er,  it  shall provide to that individual a safety insert, which will be
    37  developed by the registered organization and approved by  the  executive
    38  director and include, but not be limited to, information on:
    39    (a) methods for administering medical cannabis,
    40    (b) any potential dangers stemming from the use of medical cannabis,
    41    (c) how to recognize what may be problematic usage of medical cannabis
    42  and obtain appropriate services or treatment for problematic usage, and
    43    (d) other information as determined by the executive director.
    44    7.   Registered organizations shall not be managed by or employ anyone
    45  who has been convicted within three years of the date of  hire,  of  any
    46  felony  related  to  the  functions  or  duties of operating a business,
    47  except that if the executive director determines  that  the  manager  or
    48  employee  is  otherwise  suitable to be hired, and hiring the manager or
    49  employee would not compromise  public  safety,  the  executive  director
    50  shall  conduct a thorough review of the nature of the crime, conviction,
    51  circumstances, and evidence of rehabilitation of the manager or  employ-
    52  ee,  and shall evaluate the suitability of the manager or employee based
    53  on the evidence found through the review. In determining which  offenses
    54  are  substantially  related  to  the  functions or duties of operating a
    55  business, the executive director shall include, but not be  limited  to,
    56  the following:

        S. 1527--A                         19
 
     1    (a) a felony conviction involving fraud, money laundering, forgery and
     2  other unlawful conduct related to owning and operating a business; and
     3    (b)  a  felony  conviction  for  hiring, employing or using a minor in
     4  transporting, carrying, selling, giving away,  preparing  for  sale,  or
     5  peddling,  any  controlled  substance,  or  selling,  offering  to sell,
     6  furnishing, offering to furnish, administering, or giving any controlled
     7  substance to a minor.
     8    A felony conviction for the sale or possession of drugs, narcotics, or
     9  controlled substances is not  substantially  related.  This  subdivision
    10  shall  only apply to managers or employees who come into contact with or
    11  handle medical cannabis.
    12    8. Manufacturing of medical  cannabis  by  a  registered  organization
    13  shall  only  be  done in an indoor, enclosed, secure facility located in
    14  New York state, which may include a greenhouse. The  executive  director
    15  shall  promulgate regulations establishing requirements for such facili-
    16  ties.
    17    9. Dispensing of medical cannabis by a registered  organization  shall
    18  only be done in an indoor, enclosed, secure facility located in New York
    19  state,  which  may  include  a  greenhouse. The executive director shall
    20  promulgate regulations establishing requirements for such facilities.
    21    10. A registered organization may contract with a person or entity  to
    22  provide  facilities,  equipment  or  services  that are ancillary to the
    23  registered organization's functions or  activities  under  this  section
    24  including,  but  not  limited  to,  shipping, maintenance, construction,
    25  repair, and security. All laws and regulations applicable to such facil-
    26  ities, equipment, or services shall apply to the  contract.  The  regis-
    27  tered  organization  and  other  parties  to  the contract shall each be
    28  responsible for compliance with such  laws  and  regulations  under  the
    29  contract.  The  executive  director  may  make  regulations  relating to
    30  contracts and parties to contracts under this chapter.
    31    11. A registered organization shall, based on the findings of an inde-
    32  pendent laboratory, provide documentation of  the  quality,  safety  and
    33  clinical  strength  of the medical cannabis manufactured or dispensed by
    34  the registered organization to the office and to any person or entity to
    35  which the medical cannabis is sold or dispensed.
    36    12. A registered organization shall be deemed to  be  a  "health  care
    37  provider"  for  the purposes of title two-D of article two of the public
    38  health law.
    39    13. Medical cannabis shall be dispensed  to  a  certified  patient  or
    40  designated  caregiver  in  a  sealed  and  properly labeled package. The
    41  labeling shall contain: (a) the information required to be  included  in
    42  the receipt provided to the certified patient or designated caregiver by
    43  the  registered organization; (b) the packaging date; (c) any applicable
    44  date by which the medical cannabis should be used; (d) a  warning  stat-
    45  ing,  "This  product is for medicinal use only. Women should not consume
    46  during pregnancy or while breastfeeding except  on  the  advice  of  the
    47  certifying  health  care  practitioner, and in the case of breastfeeding
    48  mothers, including the infant's pediatrician. This product might  impair
    49  the ability to drive. Keep out of reach of children."; (e) the amount of
    50  individual  doses  contained  within; and (f) a warning that the medical
    51  cannabis must be  kept  in  the  original  container  in  which  it  was
    52  dispensed.
    53    14. The executive director is authorized to make rules and regulations
    54  restricting the advertising and marketing of medical cannabis.
    55    §  35.  Registering  of registered organizations.  1. (a) An applicant
    56  for registration as a registered organization under section  thirty-four

        S. 1527--A                         20
 
     1  of  this  article shall include such information prepared in such manner
     2  and detail as the executive director  may  require,  including  but  not
     3  limited to:
     4    (i) a description of the activities in which it intends to engage as a
     5  registered organization;
     6    (ii) that the applicant:
     7    (A) is of good moral character;
     8    (B)  possesses or has the right to use sufficient land, buildings, and
     9  other premises, which shall be specified in the application, and  equip-
    10  ment  to properly carry on the activity described in the application, or
    11  in the alternative posts a bond of not less than two million dollars;
    12    (C) is able to maintain effective  security  and  control  to  prevent
    13  diversion,  abuse,  and  other illegal conduct relating to the cannabis;
    14  and
    15    (D) is able to comply with all applicable state laws  and  regulations
    16  relating  to  the  activities  in  which  it intends to engage under the
    17  registration;
    18    (iii) that the applicant has entered into a labor peace agreement with
    19  a bona fide labor organization that is actively engaged in  representing
    20  or 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 certification;
    23    (iv) the applicant's status as a for-profit business  entity  or  not-
    24  for-profit corporation; and
    25    (v)  the  application  shall  include  the name, residence address and
    26  title of each of the officers and directors and the name  and  residence
    27  address  of any person or entity that is a member of the applicant. Each
    28  such person, if an individual, or lawful representative if a legal enti-
    29  ty, shall submit an affidavit with the application setting forth:
    30    (A) any position of management or ownership during the  preceding  ten
    31  years  of a twenty per centum or greater interest in any other business,
    32  located in or outside this state, manufacturing or distributing drugs;
    33    (B) whether such person or any such business has been convicted  of  a
    34  felony  or  had  a  registration  or license suspended or revoked in any
    35  administrative or judicial proceeding; and
    36    (C) such other information as the executive  director  may  reasonably
    37  require.
    38    2.  The  applicant  shall  be under a continuing duty to report to the
    39  office any change in facts or circumstances reflected in the application
    40  or any newly discovered or  occurring  fact  or  circumstance  which  is
    41  required to be included in the application.
    42    3.  (a) The executive director shall grant a registration or amendment
    43  to a registration under this section if he or she is satisfied that:
    44    (i) the applicant will be able to maintain effective  control  against
    45  diversion of cannabis;
    46    (ii)  the  applicant  will be able to comply with all applicable state
    47  laws;
    48    (iii) the applicant and its officers are ready, willing  and  able  to
    49  properly carry on the manufacturing or distributing activity for which a
    50  registration is sought;
    51    (iv)  the applicant possesses or has the right to use sufficient land,
    52  buildings and equipment to properly carry on the activity  described  in
    53  the application;
    54    (v)  it  is  in the public interest that such registration be granted,
    55  including but not limited to:

        S. 1527--A                         21
 
     1    (A) whether the number of registered organizations in an area will  be
     2  adequate or excessive to reasonably serve the area;
     3    (B)  whether  the  registered  organization is a minority and/or woman
     4  owned business enterprise or a service-disabled veteran-owned business;
     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; and
     9    (E) the affordability of medical  cannabis  products  offered  by  the
    10  registered organization;
    11    (vi) the applicant and its managing officers are of good moral charac-
    12  ter;
    13    (vii)  the  applicant  has entered into a labor peace agreement with a
    14  bona fide labor organization that is actively engaged in representing or
    15  attempting to represent the applicant's employees; and  the  maintenance
    16  of  such  a labor peace agreement shall be an ongoing material condition
    17  of registration; and
    18    (viii) the applicant satisfies any other conditions as  determined  by
    19  the executive director.
    20    (b)  If  the  executive  director  is not satisfied that the applicant
    21  should be issued a registration, he or she shall notify the applicant in
    22  writing of those factors upon which the denial is based.  Within  thirty
    23  days  of  the  receipt  of such notification, the applicant may submit a
    24  written request to the executive director to appeal the decision.
    25    (c) The fee for a registration under this section shall be  an  amount
    26  determined  by  the  office  in  regulations;  provided, however, if the
    27  registration is issued for a period greater than two years the fee shall
    28  be increased, pro rata, for each additional month of validity.
    29    (d) Registrations issued under this section shall  be  effective  only
    30  for the registered organization and shall specify:
    31    (i) the name and address of the registered organization;
    32    (ii)  which  activities  of a registered organization are permitted by
    33  the registration;
    34    (iii) the land, buildings and facilities that  may  be  used  for  the
    35  permitted activities of the registered organization; and
    36    (iv) such other information as the executive director shall reasonably
    37  provide to assure compliance with this article.
    38    (e)  Upon application of a registered organization, a registration may
    39  be amended to allow the registered organization to relocate  within  the
    40  state  or  to add or delete permitted registered organization activities
    41  or facilities. The fee for such amendment shall  be  two  hundred  fifty
    42  dollars.
    43    4.  A  registration  issued  under this section shall be valid for two
    44  years from the date of issue, except that in  order  to  facilitate  the
    45  renewals  of  such  registrations,  the  executive director may upon the
    46  initial application for a registration, issue some  registrations  which
    47  may  remain  valid  for  a period of time greater than two years but not
    48  exceeding an additional eleven months.
    49    5.  (a) An application for the  renewal  of  any  registration  issued
    50  under  this  section  shall  be  filed with the office not more than six
    51  months nor less than four months prior  to  the  expiration  thereof.  A
    52  late-filed  application  for  the  renewal of a registration may, in the
    53  discretion of the executive director, be treated as an  application  for
    54  an initial license.

        S. 1527--A                         22
 
     1    (b)  The  application  for  renewal  shall  include  such  information
     2  prepared in the manner and detail as the executive director may require,
     3  including but not limited to:
     4    (i)  any  material  change  in  the circumstances or factors listed in
     5  subdivision one of this section; and
     6    (ii) every known charge or investigation, pending or concluded  during
     7  the  period  of  the registration, by any governmental or administrative
     8  agency with respect to:
     9    (A) each incident or alleged incident involving the  theft,  loss,  or
    10  possible  diversion  of  medical cannabis manufactured or distributed by
    11  the applicant; and
    12    (B) compliance by the applicant  with  the  laws  of  the  state  with
    13  respect  to  any substance listed in section thirty-three hundred six of
    14  the public health law.
    15    (c) An applicant for renewal shall  be  under  a  continuing  duty  to
    16  report  to  the office any change in facts or circumstances reflected in
    17  the application or any newly discovered or  occurring  fact  or  circum-
    18  stance which is required to be included in the application.
    19    (d)  If  the  executive  director is not satisfied that the registered
    20  organization applicant is entitled to a renewal of the registration,  he
    21  or  she  shall within a reasonably practicable time as determined by the
    22  executive director, serve upon the registered organization or its attor-
    23  ney of record in person or by registered  or  certified  mail  an  order
    24  directing  the registered organization to show cause why its application
    25  for renewal should not be denied. The order shall specify in detail  the
    26  respects in which the applicant has not satisfied the executive director
    27  that the registration should be renewed.
    28    6.  (a) The executive director shall renew a registration unless he or
    29  she determines and finds that:
    30    (i) the applicant is unlikely to  maintain  or  be  able  to  maintain
    31  effective control against diversion;
    32    (ii)  the applicant is unlikely to comply with all state laws applica-
    33  ble to the activities in which it may engage under the registration;
    34    (iii) it is not in the  public  interest  to  renew  the  registration
    35  because  the  number of registered organizations in an area is excessive
    36  to reasonably serve the area; or
    37    (iv) the applicant has either violated or terminated its  labor  peace
    38  agreement.
    39    (b)  For  purposes  of this section, proof that a registered organiza-
    40  tion, during the period of its  registration,  has  failed  to  maintain
    41  effective  control  against  diversion,  violates  any provision of this
    42  article, or has knowingly or negligently failed to comply with  applica-
    43  ble  state laws relating to the activities in which it engages under the
    44  registration, shall constitute grounds for  suspension,  termination  or
    45  limitation  of  the  registered organization's registration or as deter-
    46  mined by the executive director. The registered organization shall  also
    47  be  under  a  continuing  duty  to  report to the authority any material
    48  change or fact or circumstance to the information provided in the regis-
    49  tered organization's application.
    50    7. The office may suspend or terminate the registration  of  a  regis-
    51  tered  organization,  on grounds and using procedures under this article
    52  relating to a license, to the extent consistent with this article.   The
    53  authority  shall suspend or terminate the registration in the event that
    54  a registered organization violates or terminates  the  applicable  labor
    55  peace  agreement.  Conduct  in  compliance  with  this article which may

        S. 1527--A                         23
 
     1  violate conflicting federal law, shall not  be  grounds  to  suspend  or
     2  terminate a registration.
     3    8.  The  executive  director  shall  register  at least ten registered
     4  organizations that manufacture medical cannabis with no more  than  four
     5  dispensing  sites wholly owned and operated by such registered organiza-
     6  tion. The executive director shall ensure that such registered organiza-
     7  tions and dispensing sites are  geographically  distributed  across  the
     8  state  and  that their ownership reflects the demographics of the state.
     9  The executive director may register additional registered organizations,
    10  as needed.
    11    § 36. Intentionally omitted.
    12    § 37. Reports of registered organizations.  1. The executive  director
    13  shall,  by  regulation,  require  each  registered  organization to file
    14  reports by the registered organization during a particular  period.  The
    15  executive  director  shall  determine the information to be reported and
    16  the forms, time, and manner of the reporting.
    17    2. The executive director shall, by regulation,  require  each  regis-
    18  tered  organization  to  adopt  and  maintain security, tracking, record
    19  keeping, record retention and  surveillance  systems,  relating  to  all
    20  medical  cannabis  at every stage of acquiring, possession, manufacture,
    21  sale, delivery, transporting, distributing, or dispensing by the  regis-
    22  tered organization, subject to regulations of the executive director.
    23    §  38. Evaluation; research programs; report by office.  1. The execu-
    24  tive director may provide for the analysis and evaluation of the  opera-
    25  tion  of this article.  The executive director may enter into agreements
    26  with one or more persons, not-for-profit corporations or other organiza-
    27  tions, for the performance of an evaluation of  the  implementation  and
    28  effectiveness of this article.
    29    2.  The  office  may develop, seek any necessary federal approval for,
    30  and carry out research programs relating to  medical  use  of  cannabis.
    31  Participation  in  any  such  research program shall be voluntary on the
    32  part of practitioners, patients, and designated caregivers.
    33    3. The office shall report every two years, beginning two years  after
    34  the  effective date of this chapter, to the governor and the legislature
    35  on the medical use of cannabis under this article and  make  appropriate
    36  recommendations.
    37    §  39.  Cannabis  research  license.   1. The executive director shall
    38  establish a  cannabis  research  license  that  permits  a  licensee  to
    39  produce, process, purchase and possess cannabis for the following limit-
    40  ed research purposes:
    41    (a) to test chemical potency and composition levels;
    42    (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
    43  products;
    44    (c) to conduct research on the efficacy and  safety  of  administering
    45  cannabis as part of medical treatment; and
    46    (d) to conduct genomic or agricultural research.
    47    2. As part of the application process for a cannabis research license,
    48  an  applicant  must  submit  to the office a description of the research
    49  that is intended to be conducted as well as the amount of cannabis to be
    50  grown or purchased. The office  shall  review  an  applicant's  research
    51  project  and  determine whether it meets the requirements of subdivision
    52  one of this section. In addition, the office shall assess  the  applica-
    53  tion based on the following criteria:
    54    (a) project quality, study design, value, and impact;

        S. 1527--A                         24
 
     1    (b)  whether  the  applicant has the appropriate personnel, expertise,
     2  facilities and infrastructure, funding,  and  human,  animal,  or  other
     3  approvals in place to successfully conduct the project; and
     4    (c)  whether  the  amount  of cannabis to be grown or purchased by the
     5  applicant is consistent with the  project's  scope  and  goals.  If  the
     6  office  determines  that the research project does not meet the require-
     7  ments of subdivision one  of  this  section,  the  application  must  be
     8  denied.
     9    3. A cannabis research licensee may only sell cannabis grown or within
    10  its  operation  to  other  cannabis  research  licensees. The office may
    11  revoke a cannabis research license for violations of this subsection.
    12    4. A cannabis research licensee may contract with the higher education
    13  institutions to perform research in conjunction with the university. All
    14  research projects, entered into under this section must be  approved  by
    15  the office and meet the requirements of subdivision one of this section.
    16    5. In establishing a cannabis research license, the executive director
    17  may adopt regulations on the following:
    18    (a) application requirements;
    19    (b)  cannabis research license renewal requirements, including whether
    20  additional research projects may be added or considered;
    21    (c) conditions for license revocation;
    22    (d) security measures to ensure cannabis is not diverted  to  purposes
    23  other than research;
    24    (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
    25  cannabis-infused products a licensee may have on its premises;
    26    (f) licensee reporting requirements;
    27    (g) conditions under which cannabis grown by licensed cannabis produc-
    28  ers and other product types from licensed  cannabis  processors  may  be
    29  donated to cannabis research licensees; and
    30    (h) any additional requirements deemed necessary by the office.
    31    6. A cannabis research license issued pursuant to this section must be
    32  issued  in  the  name of the applicant and specify the location at which
    33  the cannabis researcher intends to operate, which  must  be  within  the
    34  state of New York.
    35    7. The application fee for a cannabis research license shall be deter-
    36  mined by the executive director on an annual basis.
    37    8. Each cannabis research licensee shall issue an annual report to the
    38  office.  The office shall review such report and make a determination as
    39  to whether the research project continues to meet  the  research  quali-
    40  fications under this section.
    41    §  40. Registered organizations and adult-use cannabis.  1. The execu-
    42  tive director shall have the authority to  grant  some  or  all  of  the
    43  registered  organizations  registered  with the department of health and
    44  currently registered and in good standing with the office,  the  ability
    45  to  be  licensed  to  cultivate,  process,  distribute or sell adult-use
    46  cannabis and cannabis products, pursuant to any fees,  rules  or  condi-
    47  tions  prescribed by the executive director in regulation and subject to
    48  the restrictions on  licensed  adult-use  cultivators,  processors,  and
    49  distributors  on  having  any ownership interest in a licensed adult-use
    50  retail dispensary pursuant to this chapter.
    51    2. However, the office shall have the authority to assess  the  regis-
    52  tered  organization  with  a one-time special licensing fee so that they
    53  may become authorized to bypass the restrictions on having any ownership
    54  interest in a licensed adult-use retail dispensary,  provided  that  the
    55  fees  generated from such assessment shall be used to administer incuba-
    56  tors and low or zero-interest loans to qualified  social  equity  appli-

        S. 1527--A                         25
 
     1  cants.  The  timing  and manner in which registered organizations may be
     2  granted such authority shall be determined by the executive director  in
     3  regulation.
     4    § 41. Relation to other laws.  1. The provisions of this article shall
     5  apply,  except  that  where  a  provision of this article conflicts with
     6  another provision of this chapter, this article shall apply.
     7    2. Medical cannabis shall not be deemed to be a "drug" for purposes of
     8  article one hundred thirty-seven of the education law.
     9    § 42. Protections for the medical  use  of  cannabis.    1.  Certified
    10  patients,  designated caregivers, designated caregiver facilities, prac-
    11  titioners, registered organizations  and  the  employees  of  registered
    12  organizations,  and cannabis researchers shall not be subject to arrest,
    13  prosecution, or penalty in any manner, or denied any right or privilege,
    14  including but not limited to civil penalty or disciplinary action  by  a
    15  business  or  occupational  or  professional  licensing board or bureau,
    16  solely for the certified medical use or manufacture of cannabis, or  for
    17  any other action or conduct in accordance with this article.
    18    2. Being a certified patient shall be deemed to be having a "disabili-
    19  ty"  under  article fifteen of the executive law, section forty-c of the
    20  civil rights law, sections 240.00, 485.00, and 485.05 of the penal  law,
    21  and section 200.50 of the criminal procedure law. This subdivision shall
    22  not  bar  the  enforcement  of  a  policy  prohibiting  an employee from
    23  performing his or her employment duties while impaired by  a  controlled
    24  substance. This subdivision shall not require any person or entity to do
    25  any  act  that  would  put  the  person or entity in direct violation of
    26  federal law or cause it to lose a federal contract or funding.
    27    3. The fact that a person is a  certified  patient  and/or  acting  in
    28  accordance with this article, shall not be a consideration in a proceed-
    29  ing  pursuant  to applicable sections of the domestic relations law, the
    30  social services law and the family court act.
    31    4. (a) Certification applications, certification forms, any  certified
    32  patient  information contained within a database, and copies of registry
    33  identification cards shall be deemed exempt from public disclosure under
    34  sections eighty-seven and eighty-nine of the public officers law.
    35    (b) The name, contact information, and other information  relating  to
    36  practitioners  registered  with  the  office under this article shall be
    37  public information and shall be maintained by the executive director  on
    38  the office's website accessible to the public in searchable form. Howev-
    39  er, if a practitioner notifies the office in writing that he or she does
    40  not  want  his or her name and other information disclosed, that practi-
    41  tioner's name and other  information  shall  thereafter  not  be  public
    42  information  or  maintained  on the office's website, unless the practi-
    43  tioner cancels the request.
    44    § 43. Regulations.  The executive director shall make  regulations  to
    45  implement this article.
    46    § 44. Suspend; terminate.  Based upon the recommendation of the execu-
    47  tive  director and/or the superintendent of state police that there is a
    48  risk to the public health or safety, the governor may immediately termi-
    49  nate all licenses issued to registered organizations.
    50    § 45. Pricing.  Registered organizations shall submit documentation to
    51  the executive director of any change in pricing per dose for any medical
    52  cannabis product within fifteen days of such change. Prior  approval  by
    53  the  executive  director  shall  not  be  required  for any such change;
    54  provided however that the executive director is authorized to modify the
    55  price per dose for any medical cannabis product if necessary to maintain
    56  public access to appropriate medication.

        S. 1527--A                         26
 
     1                                  ARTICLE 4
     2                             ADULT-USE CANNABIS
 
     3  Section 60. Licenses issued.
     4          61. License application.
     5          62. Information to be requested in applications for licenses.
     6          63. Fees.
     7          64. Selection criteria.
     8          65. Limitations of licensure; duration.
     9          66. License renewal.
    10          67. Amendments;  changes  in ownership and organizational struc-
    11                ture.
    12          68. Adult-use cultivator license.
    13          69. Adult-use processor license.
    14          70. Adult-use cooperative license.
    15          71. Adult-use distributor license.
    16          72. Adult-use retail dispensary license.
    17          73. Micro business license.
    18          74. Notification to municipalities of adult-use  retail  dispen-
    19                sary.
    20          75. On-site  consumption  license;  provisions governing on-site
    21                consumption licenses.
    22          76. Record keeping and tracking.
    23          77. Inspections and ongoing requirements.
    24          78. Adult-use cultivators, processors or distributors not to  be
    25                interested in retail dispensaries.
    26          79. Packaging and labeling of adult-use cannabis products.
    27          80. Laboratory testing.
    28          81. Provisions  governing  the  cultivation  and  processing  of
    29                adult-use cannabis.
    30          82. Provisions governing the distribution of adult-use cannabis.
    31          83. Provisions governing adult-use cannabis retail dispensaries.
    32          84. Adult-use cannabis advertising.
    33          85. Minority, women-owned businesses and disadvantaged  farmers;
    34                incubator program.
    35          86. Regulations.
    36    §  60.  Licenses  issued.    The  following kinds of licenses shall be
    37  issued by  the  executive  director  for  the  cultivation,  processing,
    38  distribution  and sale of cannabis, cannabis producers, and concentrated
    39  cannabis to cannabis consumers:
    40    1. Adult-use cultivator license;
    41    2. Adult-use processor license;
    42    3. Adult-use cooperative license;
    43    4. Adult-use distributor license;
    44    5. Adult-use retail dispensary license;
    45    6. On-site consumption license;
    46    7. Microbusiness license;
    47    8. Delivery license;
    48    9. Nursery license; and
    49    10. Any other type of license as prescribed by the executive  director
    50  in regulation.
    51    §  61. License Application.  1. Any person may apply to the office for
    52  a license to cultivate, process, distribute or dispense cannabis  within
    53  this  state  for sale. Such application shall be in writing and verified
    54  and shall contain such information as the  office  shall  require.  Such
    55  application  shall  be  accompanied  by  a check or draft for the amount

        S. 1527--A                         27
 
     1  required by this article for such license. If the office  shall  approve
     2  the  application,  it  shall  issue  a  license in such form as shall be
     3  determined by its rules. Such license shall contain a description of the
     4  licensed premises and in form and in substance shall be a license to the
     5  person therein specifically designated to cultivate, process, distribute
     6  or dispense cannabis in the premises therein specifically licensed.
     7    2.  Except  as  otherwise provided in this article, a separate license
     8  shall be required for each facility at  which  cultivation,  processing,
     9  distribution or retail dispensing is conducted.
    10    3. An applicant shall not be denied a license under this article based
    11  solely  on a conviction for a violation of article two hundred twenty or
    12  section 240.36 of the penal law, prior to the date article  two  hundred
    13  twenty-one of the penal law took effect, or a conviction for a violation
    14  of  article  two hundred twenty-one of the penal law after the effective
    15  date of this chapter.
    16    § 62. Information to be requested in applications for  licenses.    1.
    17  The  office shall have the authority to prescribe the manner and form in
    18  which an application must be submitted to the office for licensure under
    19  this article.
    20    2. The executive director is authorized to adopt regulations,  includ-
    21  ing  by  emergency rule, establishing information which must be included
    22  on an application for licensure under this article. Such information may
    23  include, but is not limited to:  information about the applicant's iden-
    24  tity, including racial and ethnic diversity;  ownership  and  investment
    25  information,  including  the corporate structure; evidence of good moral
    26  character, including the submission of fingerprints by the applicant  to
    27  the  division  of criminal justice services; information about the prem-
    28  ises to be licensed; financial statements;  and  any  other  information
    29  prescribed by regulation.
    30    3.  All  license  applications shall be signed by the applicant (if an
    31  individual), by a managing member (if a limited liability  corporation),
    32  by an officer (if a corporation), or by all partners (if a partnership).
    33  Each  person  signing  such  application shall verify it or affirm it as
    34  true under the penalties of perjury.
    35    4. All license or permit applications shall be accompanied by a check,
    36  draft or other forms of payment as the office may require  or  authorize
    37  in the amount required by this article for such license or permit.
    38    5.  If there be any change, after the filing of the application or the
    39  granting of a license, in any of the facts required to be set  forth  in
    40  such application, a supplemental statement giving notice of such change,
    41  cost and source of money involved in the change, duly verified, shall be
    42  filed  with  the office within ten days after such change. Failure to do
    43  so shall, if willful and deliberate, be cause for denial  or  revocation
    44  of the license.
    45    6. In giving any notice, or taking any action in reference to a regis-
    46  tered  organization  or  licensee of a licensed premises, the office may
    47  rely upon the information furnished  in  such  application  and  in  any
    48  supplemental  statement connected therewith, and such information may be
    49  presumed to be correct, and shall be binding upon a registered organiza-
    50  tions, licensee or licensed premises  as  if  correct.  All  information
    51  required  to be furnished in such application or supplemental statements
    52  shall be deemed material in any prosecution for perjury, any  proceeding
    53  to  revoke,  cancel or suspend any license, and in the office's determi-
    54  nation to approve or deny the license.
    55    § 63. Fees. 1. The office shall have the authority  to  charge  appli-
    56  cants for licensure under this article a non-refundable application fee.

        S. 1527--A                         28
 
     1  Such  fee  may  be  based  on  the type of licensure sought, cultivation
     2  and/or production volume, or any other  factors  deemed  reasonable  and
     3  appropriate  by  the  office  to  achieve the policy and purpose of this
     4  chapter.
     5    2.  The office shall have the authority to charge licensees a biennial
     6  license fee. Such fee shall be based on the amount  of  cannabis  to  be
     7  cultivated,  processed,  distributed and/or dispensed by the licensee or
     8  the gross annual receipts of the licensee for the previous license peri-
     9  od, and any other factors  deemed  reasonable  and  appropriate  by  the
    10  office.
    11    3.  The  office  shall  have the authority to waive or reduce fees for
    12  social and economic equity applicants.
    13    § 64. Selection criteria.   1. The executive  director  shall  develop
    14  regulations for determining whether or not an applicant should be grant-
    15  ed  the  privilege  of  an adult-use cannabis license, based on, but not
    16  limited to, the following criteria:
    17    (a) the applicant will be able to maintain effective  control  against
    18  the illegal diversion of cannabis;
    19    (b)  the  applicant  will  be able to comply with all applicable state
    20  laws and regulations;
    21    (c) the applicant and its officers are ready,  willing,  and  able  to
    22  properly carry on the activities for which a license is sought;
    23    (d)  the  applicant possesses or has the right to use sufficient land,
    24  buildings, and equipment to properly carry on the activity described  in
    25  the application;
    26    (e) the applicant qualifies as a social equity applicant or sets out a
    27  plan for benefiting communities and people disproportionally impacted by
    28  cannabis law enforcement;
    29    (f)  it is in the public interest that such license be granted, taking
    30  into consideration, but not limited to, the following criteria:
    31    (i) that it is a privilege, and not a right,  to  cultivate,  process,
    32  distribute, and sell cannabis;
    33    (ii) the number, classes, and character of other licenses in proximity
    34  to the location and in the particular municipality or subdivision there-
    35  of;
    36    (iii)  evidence  that  all  necessary  licenses  and permits have been
    37  obtained from the state and all other governing bodies;
    38    (iv) effect of the grant of the license  on  pedestrian  or  vehicular
    39  traffic, and parking, in proximity to the location;
    40    (v) the existing noise level at the location and any increase in noise
    41  level that would be generated by the proposed premises;
    42    (vi) the history of regulatory violations under the alcoholic beverage
    43  control  law or the cannabis law at the location, as well as any pattern
    44  of violations under the alcoholic beverage control law or  the  cannabis
    45  law, and reported criminal activity at the proposed premises;
    46    (vii)  the  effect  on the production and availability of cannabis and
    47  cannabis products; and
    48    (viii) any other factors specified by law or regulation that are rele-
    49  vant to determine that granting a license would promote  public  conven-
    50  ience and advantage and the public interest of the community;
    51    (g)  the applicant and its managing officers are of good moral charac-
    52  ter and do not  have  an  ownership  or  controlling  interest  in  more
    53  licenses or permits than allowed by this chapter;
    54    (h)  the  applicant  has  entered  into a labor peace agreement with a
    55  bona-fide labor organization that is actively engaged in representing or
    56  attempting to represent the applicant's employees, and  the  maintenance

        S. 1527--A                         29
 
     1  of  such  a labor peace agreement shall be an ongoing material condition
     2  of licensure. In evaluating applications from entities with  twenty-five
     3  or more employees, the office shall give priority to applicants that are
     4  a  party  to  a  collective  bargaining agreement with a bona-fide labor
     5  organization in New York or in another state, and uses  union  labor  to
     6  construct its licensed facility;
     7    (i) the applicant will contribute to communities and people dispropor-
     8  tionately  harmed  by cannabis law enforcement and report these contrib-
     9  utions to the office;
    10    (j) if the application is for an  adult-use  cultivator  or  processor
    11  license, the environmental impact of the facility to be licensed; and
    12    (k)  the applicant satisfies any other conditions as determined by the
    13  executive director.
    14    2. If the executive director  is  not  satisfied  that  the  applicant
    15  should  be  issued  a  license,  the executive director shall notify the
    16  applicant in writing of the specific reason or reasons for denial.
    17    3. The executive director shall have the authority to, in consultation
    18  with the cannabis advisory  board,  determine  the  number  of  licenses
    19  issued pursuant to this article.
    20    §  65.  Limitations of licensure; duration.  1. No license of any kind
    21  may be issued to a person under the age of twenty-one years,  nor  shall
    22  any licensee employ anyone under the age of twenty-one years.
    23    2. No licensee shall sell, deliver, or give away or cause or permit or
    24  procure  to be sold, delivered or given away any cannabis to any person,
    25  actually or apparently, under the age of  twenty-one  years  unless  the
    26  person  under twenty-one is also a certified patient and the licensee is
    27  appropriately licensed under article three of this chapter.
    28    3. The office shall have the authority  to  limit,  by  canopy,  plant
    29  count,  square footage or other means, the amount of cannabis allowed to
    30  be grown, processed, distributed or sold by a licensee.
    31    4. All licenses under this article shall expire two  years  after  the
    32  date of issue.
    33    § 66. License renewal.  1. Each license, issued pursuant to this arti-
    34  cle,  may  be renewed upon application therefore by the licensee and the
    35  payment of the fee for such license as prescribed by  this  article.  In
    36  the  case of applications for renewals, the office may dispense with the
    37  requirements of such statements as it deems unnecessary in view of those
    38  contained in the application made for the original license, but  in  any
    39  event  the  submission  of photographs of the licensed premises shall be
    40  dispensed with, provided the applicant for such  renewal  shall  file  a
    41  statement  with  the  office to the effect that there has been no alter-
    42  ation of such premises since the original license was issued. The office
    43  may make such rules as it deems necessary, not  inconsistent  with  this
    44  chapter, regarding applications for renewals of licenses and permits and
    45  the time for making the same.
    46    2.  Each  applicant  must  submit  to  the office documentation of the
    47  racial, ethnic, and gender diversity of the  applicant's  employees  and
    48  owners  prior  to  a  license being renewed. In addition, the office may
    49  create a social responsibility framework agreement and make  the  adher-
    50  ence to such agreement a conditional requirement of license renewal.
    51    3.  The  office  shall provide an application for renewal of a license
    52  issued under this article not less than ninety days prior to the expira-
    53  tion of the current license.
    54    4. The office may only issue a renewal license  upon  receipt  of  the
    55  prescribed  renewal  application  and renewal fee from a licensee if, in

        S. 1527--A                         30
 
     1  addition to the criteria in this section, the licensee's license is  not
     2  under suspension and has not been revoked.
     3    5.  Each  applicant must maintain a labor peace agreement with a bona-
     4  fide labor organization that is  actively  engaged  in  representing  or
     5  attempting to represent the applicant's employees and the maintenance of
     6  such  a  labor peace agreement shall be an ongoing material condition of
     7  licensure.
     8    § 67. Amendments; changes in ownership and  organizational  structure.
     9  1. Licenses issued pursuant to this article shall specify:
    10    (a) the name and address of the licensee;
    11    (b) the activities permitted by the license;
    12    (c)  the  land,  buildings  and  facilities  that  may be used for the
    13  licensed activities of the licensee;
    14    (d) a unique license number issued by the office to the licensee; and
    15    (e) such other information as the executive director shall deem neces-
    16  sary to assure compliance with this chapter.
    17    2. Upon application of a licensee to the  office,  a  license  may  be
    18  amended  to  allow  the licensee to relocate within the state, to add or
    19  delete licensed activities or facilities, or to amend the  ownership  or
    20  organizational  structure of the entity that is the licensee. The execu-
    21  tive director shall establish a fee for such amendments.
    22    3. A license shall become void by a change in  ownership,  substantial
    23  corporate change or location without prior written approval of the exec-
    24  utive director. The executive director may promulgate regulations allow-
    25  ing for certain types of changes in ownership without the need for prior
    26  written approval.
    27    4.  For purposes of this section, "substantial corporate change" shall
    28  mean:
    29    (a) for a corporation, a change of eighty percent or more of the offi-
    30  cers and/or directors, or a transfer of eighty percent or more of  stock
    31  of such corporation, or an existing stockholder obtaining eighty percent
    32  or more of the stock of such corporation; or
    33    (b)  for  a  limited  liability company, a change of eighty percent or
    34  more of the managing members of the company, or  a  transfer  of  eighty
    35  percent  or  more  of ownership interest in said company, or an existing
    36  member obtaining a cumulative of eighty percent or more of the ownership
    37  interest in said company.
    38    § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
    39  license  shall  authorize  the  acquisition, possession, cultivation and
    40  sale of cannabis from the licensed premises of the adult-use  cultivator
    41  by  such  licensee to duly licensed processors in this state. The execu-
    42  tive director may  establish  regulations  allowing  licensed  adult-use
    43  cultivators  to  perform certain types of minimal processing without the
    44  need for an adult-use processor license.
    45    2. For purposes of this section, cultivation shall include, but not be
    46  limited to, the planting, growing, cloning, harvesting, drying,  curing,
    47  grading and trimming of cannabis.
    48    3.  A  person holding an adult-use cultivator's license may apply for,
    49  and obtain, one processor's license and one distributor's license.
    50    4. A person holding an adult-use cultivator's  license  may  not  also
    51  hold  a retail dispensary license pursuant to this article and no adult-
    52  use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
    53  including  by stock ownership, interlocking directors, mortgage or lien,
    54  personal or real property, or any other means, in any premises  licensed
    55  as  an  adult-use cannabis retail dispensary or in any business licensed
    56  as an adult-use cannabis retail dispensary pursuant to this article.

        S. 1527--A                         31
 
     1    5. A person holding an adult-use cultivator's license may not  hold  a
     2  license  to  distribute  cannabis under this article unless the licensed
     3  cultivator is also licensed as a processor under this article.
     4    6.  No  person  may have a direct or indirect financial or controlling
     5  interest in more than one adult-use cultivator license  issued  pursuant
     6  to this chapter.
     7    §  69.  Adult-use  processor license.   1. A processor's license shall
     8  authorize the acquisition, possession, processing and sale  of  cannabis
     9  from  the licensed premises of the adult-use cultivator by such licensee
    10  to duly licensed distributors.
    11    2. For purposes of this section, processing shall include, but not  be
    12  limited  to, blending, extracting, infusing, packaging, labeling, brand-
    13  ing and otherwise making  or  preparing  cannabis  products.  Processing
    14  shall not include the cultivation of cannabis.
    15    3. No processor shall be engaged in any other business on the premises
    16  to  be  licensed;  except  that  nothing contained in this chapter shall
    17  prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
    18  utor from operating on the same premises and from a person  holding  all
    19  three licenses.
    20    4.  No  cannabis  processor licensee may hold more than three cannabis
    21  processor licenses.
    22    5. No adult-use cannabis processor shall have  a  direct  or  indirect
    23  interest, including by stock ownership, interlocking directors, mortgage
    24  or  lien, personal or real property, or any other means, in any premises
    25  licensed as an adult-use cannabis retail dispensary or in  any  business
    26  licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
    27  article.
    28    § 70. Adult-use cooperative license.  1. A cooperative  license  shall
    29  authorize  the acquisition, possession, cultivation, processing and sale
    30  from the licensed premises of the adult-use cooperative by such licensee
    31  to duly  licensed  distributors  and/or  retail  dispensaries;  but  not
    32  directly to cannabis consumers.
    33    2. To be licensed as an adult-use cooperative, the cooperative must:
    34    (i)  be  comprised  of residents of the state of New York as a limited
    35  liability company or limited liability partnership under the laws of the
    36  state, or an appropriate business structure as determined by the  execu-
    37  tive director;
    38    (ii)  at least one member of the cooperative must have filed a Federal
    39  Schedule F (Form 1040) for three of the past five years; and
    40    (iii) the cooperative must operate according to the seven  cooperative
    41  principles  published by the International Cooperative Alliance in nine-
    42  teen hundred ninety-five.
    43    3. No person shall be a member of more than one adult-use  cooperative
    44  licensed pursuant to this section.
    45    4.  No person or member of an adult-use cooperative license may have a
    46  direct or indirect  financial  or  controlling  interest  in  any  other
    47  adult-use cannabis license issued pursuant to this chapter.
    48    5.  No  adult-use cannabis cooperative shall have a direct or indirect
    49  interest, including by stock ownership, interlocking directors, mortgage
    50  or lien, personal or real property, or any other means, in any  premises
    51  licensed  as  an adult-use cannabis retail dispensary or in any business
    52  licensed as an adult-use cannabis retail  dispensary  pursuant  to  this
    53  article.
    54    6. The executive director shall promulgate regulations governing coop-
    55  erative  licenses,  including,  but not limited to, the establishment of

        S. 1527--A                         32
 
     1  canopy limits on the size and scope of cooperative licensees, and  other
     2  measures designed to incentivize the use and licensure of cooperatives.
     3    § 71. Adult-use distributor license.  1. A distributor's license shall
     4  authorize the acquisition, possession, distribution and sale of cannabis
     5  from the licensed premises of a licensed adult-use processor, microbusi-
     6  ness  or  registered organization authorized to sell adult-use cannabis,
     7  to duly licensed retail dispensaries.
     8    2. No distributor shall have a direct or indirect economic interest in
     9  any adult-use retail dispensary licensed pursuant to this article, or in
    10  any registered organization registered pursuant to article three of this
    11  chapter. This restriction shall not prohibit a  registered  organization
    12  authorized pursuant to section forty of this chapter, from being granted
    13  licensure by the office to distribute adult-use cannabis products culti-
    14  vated  and  processed  by  the registered organization to the registered
    15  organization's own licensed adult-use retail dispensaries.
    16    3. Nothing in subdivision two of this section shall prevent a distrib-
    17  utor from charging an appropriate fee for the distribution of  cannabis,
    18  including based on the volume of cannabis distributed.
    19    §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
    20  license shall authorize the acquisition, possession and sale of cannabis
    21  from the licensed premises of the retail dispensary by such licensee  to
    22  cannabis consumers.
    23    2.  No  person  may have a direct or indirect financial or controlling
    24  interest in more than three retail dispensary licenses  issued  pursuant
    25  to this chapter.
    26    3.  No  person  holding  a  retail dispensary license may also hold an
    27  adult-use cultivation, processor, microbusiness, cooperative or distrib-
    28  utor license pursuant to this article.
    29    4. No retail license shall be granted for  any  premises,  unless  the
    30  applicant  shall  be  the owner thereof, or shall be able to demonstrate
    31  possession of the premises within thirty days of initial approval of the
    32  license through a lease, management agreement or other agreement  giving
    33  the applicant control over the premises, in writing, for a term not less
    34  than the license period.
    35    5. With the exception of microbusiness licensees, no premises shall be
    36  licensed  to  sell  cannabis  products,  unless  said  premises shall be
    37  located in a store, the principal entrance to which shall  be  from  the
    38  street  level and located on a public thoroughfare in premises which may
    39  be occupied, operated or conducted for business, trade or industry or on
    40  an arcade or sub-surface thoroughfare leading to a railroad terminal.
    41    6. No cannabis retail license shall be granted for any premises within
    42  two hundred feet of a school grounds as such  term  is  defined  in  the
    43  education law.
    44    §  73. Microbusiness license. 1. A microbusiness license shall author-
    45  ize the limited cultivation, processing, distribution and dispensing  of
    46  adult use cannabis and cannabis products.
    47    2.  A  microbusiness  licensee  may  not  hold  interest  in any other
    48  license.
    49    3. The size and scope of a microbusiness shall be  determined  by  the
    50  executive director.
    51    §  74.  Notification to municipalities of adult-use retail dispensary.
    52  1. Not less than thirty days nor more  than  two  hundred  seventy  days
    53  before  filing  an  application  for  licensure as an adult-use cannabis
    54  retail dispensary, an applicant shall notify the municipality  in  which
    55  the  premises  is  located  of  such  applicant's intent to file such an
    56  application.

        S. 1527--A                         33
 
     1    2. Such notification shall be made to the clerk of the  village,  town
     2  or  city,  as  the  case  may  be,  wherein the premises is located. For
     3  purposes of this section:
     4    (a) notification need only be given to the clerk of a village when the
     5  premises is located within the boundaries of the village; and
     6    (b)  in the city of New York, the community board established pursuant
     7  to section twenty-eight hundred of the New York city charter with juris-
     8  diction over the area in which the premises is located shall be  consid-
     9  ered the appropriate public body to which notification shall be given.
    10    3. Such notification shall be made in such form as shall be prescribed
    11  by the rules of the office.
    12    4.  A  municipality may express an opinion for or against the granting
    13  of such application. Any such opinion shall be deemed part of the record
    14  upon which the office makes its  determination  to  grant  or  deny  the
    15  application.
    16    5.  Such  notification  shall  be  made by: (a) certified mail, return
    17  receipt requested; (b) overnight delivery service with proof of mailing;
    18  or (c) personal service upon the  offices  of  the  clerk  or  community
    19  board.
    20    6.  The office shall require such notification to be on a standardized
    21  form that can be obtained on the internet or from the  office  and  such
    22  notification to include:
    23    (a)  the trade name or "doing business as" name, if any, of the estab-
    24  lishment;
    25    (b) the full name of the applicant;
    26    (c) the street address  of  the  establishment,  including  the  floor
    27  location or room number, if applicable;
    28    (d)  the  mailing  address of the establishment, if different than the
    29  street address;
    30    (e) the name, address and telephone number of the attorney  or  repre-
    31  sentative of the applicant, if any;
    32    (f) a statement indicating whether the application is for:
    33    (i) a new establishment;
    34    (ii) a transfer of an existing licensed business;
    35    (iii) a renewal of an existing license; or
    36    (iv) an alteration of an existing licensed premises;
    37    (g)  if  the  establishment is a transfer or previously licensed prem-
    38  ises, the name of the old establishment and such establishment's  regis-
    39  tration or license number;
    40    (h)  in the case of a renewal or alteration application, the registra-
    41  tion or license number of the applicant; and
    42    (i) the type of license.
    43    §  75.  On-site  consumption  license;  provisions  governing  on-site
    44  consumption  licenses.  1. No licensed adult-use cannabis retail dispen-
    45  sary shall be granted a cannabis on-site  consumption  license  for  any
    46  premises,  unless  the applicant shall be the owner thereof, or shall be
    47  in possession of said premises under a lease, in writing, for a term not
    48  less than the license period except,  however,  that  such  license  may
    49  thereafter  be renewed without the requirement of a lease as provided in
    50  this section. This subdivision shall not apply to premises  leased  from
    51  government agencies; provided, however, that the appropriate administra-
    52  tor  of  such government agency provides some form of written documenta-
    53  tion regarding the terms of occupancy under which the applicant is leas-
    54  ing said premises from the government agency  for  presentation  to  the
    55  office  at the time of the license application. Such documentation shall
    56  include the terms of occupancy between the applicant and the  government

        S. 1527--A                         34
 
     1  agency, including, but not limited to, any short-term leasing agreements
     2  or written occupancy agreements.
     3    2. No adult-use cannabis retail dispensary shall be granted a cannabis
     4  on-site  consumption license for any premises within two hundred feet of
     5  school grounds as such term is defined in the education law.
     6    3. The office may consider any or all of the following in  determining
     7  whether public convenience and advantage and the public interest will be
     8  promoted  by  the granting of a license for an on-site cannabis consump-
     9  tion at a particular location:
    10    (a) that it is a privilege, and not a right,  to  cultivate,  process,
    11  distribute, and sell cannabis;
    12    (b)  the number, classes, and character of other licenses in proximity
    13  to the location and in the particular municipality or subdivision there-
    14  of;
    15    (c) evidence  that  all  necessary  licenses  and  permits  have  been
    16  obtained from the state and all other governing bodies;
    17    (d)  whether there is a demonstrated need for spaces to consume canna-
    18  bis;
    19    (e) effect of the grant of the  license  on  pedestrian  or  vehicular
    20  traffic, and parking, in proximity to the location;
    21    (f) the existing noise level at the location and any increase in noise
    22  level that would be generated by the proposed premises;
    23    (g) the history of violations under the alcoholic beverage control law
    24  or  this  chapter  at the location, as well as any pattern of violations
    25  under the alcoholic beverage control law or this chapter,  and  reported
    26  criminal activity at the proposed premises; and
    27    (h) any other factors specified by law or regulation that are relevant
    28  to  determine  that  granting a license would promote public convenience
    29  and advantage and the public interest of the community.
    30    4. If the office  shall  disapprove  an  application  for  an  on-site
    31  consumption  license, it shall state and file in its offices the reasons
    32  therefor and shall notify the  applicant  thereof.  Such  applicant  may
    33  thereupon apply to the office for a review of such action in a manner to
    34  be prescribed by the rules of the office.
    35    5.  No adult-use cannabis on-site consumption licensee shall keep upon
    36  the licensed premises  any  adult-use  cannabis  products  except  those
    37  purchased  from  a  licensed  distributor,  microbusiness  or registered
    38  organization authorized to sell adult-use cannabis, and only in contain-
    39  ers approved by the office. Such containers shall have  affixed  thereto
    40  such  labels as may be required by the rules of the office.  No cannabis
    41  retail licensee for on-site  consumption  shall  reuse,  refill,  tamper
    42  with,  adulterate,  dilute  or  fortify the contents of any container of
    43  cannabis products as received from the manufacturer or distributor.
    44    6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
    45  give  away, or cause or permit or procure to be sold, delivered or given
    46  away any cannabis for consumption  on  the  premises  where  sold  in  a
    47  container or package containing more than one gram of cannabis.
    48    7.  Except  where  a  permit  to do so is obtained pursuant to section
    49  405.10 of the penal law, no cannabis on-site consumption licensee  shall
    50  suffer,  permit,  or promote an event on its premises wherein any person
    51  shall use, explode, or cause to explode, any fireworks  or  other  pyro-
    52  technics  in  a building as defined in paragraph e of subdivision one of
    53  section 405.10 of the penal law, that is  covered  by  such  license  or
    54  possess  such fireworks or pyrotechnics for such purpose. In addition to
    55  any other penalty provided by law, a violation of this subdivision shall
    56  constitute an adequate ground for instituting a proceeding  to  suspend,

        S. 1527--A                         35
 
     1  cancel,  or  revoke  the  license of the violator in accordance with the
     2  applicable procedures specified in this chapter;  provided  however,  if
     3  more than one licensee is participating in a single event, upon approval
     4  by the office, only one licensee must obtain such permit.
     5    8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
     6  consumption under this chapter shall be permitted to have any opening or
     7  means of entrance or  passageway  for  persons  or  things  between  the
     8  licensed premises and any other room or place in the building containing
     9  the  licensed  premises,  or  any adjoining or abutting premises, unless
    10  ingress and egress is restricted by an employee, agent of the  licensee,
    11  or  other  method  approved  by  the office of controlling access to the
    12  facility.
    13    9. Each cannabis on-site consumption licensee shall keep and  maintain
    14  upon the licensed premises, adequate records of all transactions involv-
    15  ing the business transacted by such licensee which shall show the amount
    16  of  cannabis products, in an applicable metric measurement, purchased by
    17  such licensee together with the names, license  numbers  and  places  of
    18  business  of  the  persons from whom the same were purchased, the amount
    19  involved in such purchases, as well as the sales  of  cannabis  products
    20  made  by  such  licensee.  The office is hereby authorized to promulgate
    21  rules and regulations permitting an on-site licensee  operating  two  or
    22  more  premises separately licensed to sell cannabis products for on-site
    23  consumption to inaugurate or retain in this state methods  or  practices
    24  of  centralized  accounting,  bookkeeping,  control  records, reporting,
    25  billing, invoicing or payment respecting purchases, sales or  deliveries
    26  of cannabis products, or methods and practices of centralized receipt or
    27  storage  of  cannabis  products within this state without segregation or
    28  earmarking for any such  separately  licensed  premises,  wherever  such
    29  methods  and  practices  assure  the  availability,  at  such licensee's
    30  central or main office in this state, of data reasonably needed for  the
    31  enforcement  of  this  chapter.  Such  records  shall  be  available for
    32  inspection by any authorized representative of the office.
    33    10. All retail licensed premises shall be subject to inspection by any
    34  peace officer, acting pursuant to his or her special duties,  or  police
    35  officer and by the duly authorized representatives of the office, during
    36  the  hours  when the said premises are open for the transaction of busi-
    37  ness.
    38    11. A cannabis on-site consumption licensee shall not provide cannabis
    39  products to any person under the age of twenty-one.
    40    § 76. Record keeping and tracking. 1. The executive director shall, by
    41  regulation, require each licensee pursuant to this article to adopt  and
    42  maintain  security,  tracking,  record  keeping,  record  retention  and
    43  surveillance systems, relating to all cannabis at every stage of acquir-
    44  ing, possession, manufacture, sale, delivery, transporting,  testing  or
    45  distributing  by  the  licensee, subject to regulations of the executive
    46  director.
    47    2. Every licensee shall keep and maintain upon the  licensed  premises
    48  adequate  books  and  records of all transactions involving the licensee
    49  and sale of its products, which shall include, but is  not  limited  to,
    50  all information required by any rules promulgated by the office.
    51    3. Each sale shall be recorded separately on a numbered invoice, which
    52  shall  have  printed  thereon  the number, the name of the licensee, the
    53  address of the  licensed  premises,  and  the  current  license  number.
    54  Licensed  producers  shall  deliver  to  the licensed distributor a true
    55  duplicate invoice stating the name and address  of  the  purchaser,  the
    56  quantity  purchased,  description  and  the  price of the product, and a

        S. 1527--A                         36
 
     1  true, accurate and complete statement of the  terms  and  conditions  on
     2  which such sale is made.
     3    4. Such books, records and invoices shall be kept for a period of five
     4  years  and shall be available for inspection by any authorized represen-
     5  tative of the office.
     6    5. Each  adult-use  cannabis  retail  dispensary,  microbusiness,  and
     7  on-site  consumption  licensee shall keep and maintain upon the licensed
     8  premises, adequate records of all transactions  involving  the  business
     9  transacted  by such licensee which shall show the amount of cannabis, in
    10  weight, purchased by such licensee  together  with  the  names,  license
    11  numbers  and  places  of business of the persons from whom the same were
    12  purchased, the amount involved in such purchases, as well as  the  sales
    13  of cannabis made by such licensee.
    14    §  77. Inspections and ongoing requirements. All licensed or permitted
    15  premises, regardless of the  type  of  premises,  shall  be  subject  to
    16  inspection  by the office, by the duly authorized representatives of the
    17  office, by any peace officer acting  pursuant  to  his  or  her  special
    18  duties,  or by a police officer, during the hours when the said premises
    19  are open for the transaction of business. The office shall make  reason-
    20  able  accommodations  so  that  ordinary business is not interrupted and
    21  safety and security procedures are not compromised by the inspection.  A
    22  person who holds a license or permit must make himself or herself, or an
    23  agent  thereof, available and present for any inspection required by the
    24  office.  Such inspection may include, but is not  limited  to,  ensuring
    25  compliance by the licensee or permittee with all other applicable build-
    26  ing codes, fire, health, safety, and governmental regulations, including
    27  at the municipal, county, and state level.
    28    §  78.  Adult-use  cultivators,  processors  or distributors not to be
    29  interested in retail dispensaries.  1. It shall be unlawful for a culti-
    30  vator, processor, cooperative or distributor licensed under this article
    31  to:
    32    (a) be interested directly or indirectly in  any  premises  where  any
    33  cannabis product is sold at retail; or in any business devoted wholly or
    34  partially  to the sale of any cannabis product at retail by stock owner-
    35  ship, interlocking directors, mortgage or lien or any personal  or  real
    36  property, or by any other means.
    37    (b)  make,  or cause to be made, any loan to any person engaged in the
    38  manufacture or sale of any cannabis product at wholesale or retail.
    39    (c) make any gift or  render  any  service  of  any  kind  whatsoever,
    40  directly  or indirectly, to any person licensed under this chapter which
    41  in the judgment of the office may tend to  influence  such  licensee  to
    42  purchase the product of such cultivator or processor or distributor.
    43    (d)  enter  into  any  contract  with any retail licensee whereby such
    44  licensee agrees to confine his sales to cannabis  products  manufactured
    45  or  sold  by  one or more such cultivator or processors or distributors.
    46  Any such contract shall be void and subject the licenses of all  parties
    47  concerned to revocation for cause.
    48    2.  The  provisions  of  this  section shall not prohibit a registered
    49  organization authorized pursuant to section forty of this chapter,  from
    50  cultivating,  processing,  distributing  or  selling  adult-use cannabis
    51  under this article, at facilities wholly  owned  and  operated  by  such
    52  registered  organization,  subject  to  any  conditions,  limitations or
    53  restrictions established by the office and this chapter.
    54    3. The office shall have the power to create rules and regulations  in
    55  regard to this section.

        S. 1527--A                         37
 
     1    §  79.  Packaging  and labeling of adult-use cannabis products. 1. The
     2  office is hereby authorized to promulgate rules and regulations  govern-
     3  ing  the  advertising,  branding,  marketing,  packaging and labeling of
     4  cannabis products, sold or possessed for sale in New York state, includ-
     5  ing  rules pertaining to the accuracy of information and rules restrict-
     6  ing marketing and advertising to youth.
     7    2. Such regulations shall include, but not be  limited  to,  requiring
     8  that:
     9    (a)  packaging  meets  requirements  similar  to  the  federal "poison
    10  prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
    11    (b) all cannabis-infused products shall have a separate packaging  for
    12  each serving;
    13    (c)  prior  to  delivery  or sale at a retailer, cannabis and cannabis
    14  products shall be labeled and placed in  a  resealable,  child-resistant
    15  package; and
    16    (d) packages and labels shall not be made to be attractive to minors.
    17    3.  Such  regulations shall include requiring labels warning consumers
    18  of any potential impact on human health resulting from  the  consumption
    19  of  cannabis products that shall be affixed to those products when sold,
    20  if such labels are deemed warranted by the office.
    21    4. Such rules and regulations shall establish methods  and  procedures
    22  for  determining  serving sizes for cannabis-infused products and active
    23  cannabis concentration per serving size.  Such  regulations  shall  also
    24  require  a nutritional fact panel that incorporates data regarding serv-
    25  ing sizes and potency thereof.
    26    5. The packaging, sale, marketing, branding, advertising, labeling  or
    27  possession  by  any  licensee  of  any  cannabis  product not labeled or
    28  offered in conformity with rules and regulations promulgated in  accord-
    29  ance  with  this  section shall be grounds for the imposition of a fine,
    30  and/or the suspension, revocation or cancellation of a license.
    31    § 80. Laboratory testing. 1. Every  processor  of  adult-use  cannabis
    32  shall  contract  with  an  independent  laboratory permitted pursuant to
    33  section one hundred twenty-nine of this chapter, to  test  the  cannabis
    34  products it produces pursuant to rules and regulations prescribed by the
    35  office.  The executive director may assign an approved testing laborato-
    36  ry, which the processor of adult-use cannabis must use.
    37    2.  Adult-use  cannabis  processors shall make laboratory test reports
    38  available to licensed  distributors  and  retail  dispensaries  for  all
    39  cannabis products manufactured by the processor.
    40    3.  Licensed retail dispensaries shall maintain accurate documentation
    41  of laboratory test reports for each cannabis product offered for sale to
    42  cannabis consumers. Such documentation shall be made publicly  available
    43  by the licensed retail dispensary.
    44    4.  Onsite  laboratory  testing  by licensees is permissible; however,
    45  such testing shall not be certified by the office and  does  not  exempt
    46  the  licensee  from  the  requirements of quality assurance testing at a
    47  testing laboratory pursuant to this section.
    48    5. An owner of a cannabis laboratory testing permit shall not  hold  a
    49  license  in  any other category within this article and shall not own or
    50  have ownership interest in a registered organization registered pursuant
    51  to article three of this chapter.
    52    6. The office shall have the authority to require any  licensee  under
    53  this  article  to  submit  cannabis  or cannabis products to one or more
    54  independent laboratories for testing.

        S. 1527--A                         38
 
     1    § 81. Provisions governing the cultivation and processing of adult-use
     2  cannabis. 1. Cultivation of cannabis must not be visible from  a  public
     3  place by normal unaided vision.
     4    2.  No  cultivator  or  processor of adult-use cannabis shall sell, or
     5  agree to sell or deliver in the state any cannabis products, as the case
     6  may be, except in sealed containers containing quantities in  accordance
     7  with  size  standards  pursuant  to  rules  adopted  by the office. Such
     8  containers shall have affixed thereto such labels as may be required  by
     9  the rules of the office.
    10    3.  No  cultivator or processor of adult-use cannabis shall furnish or
    11  cause to be furnished to any licensee, any exterior  or  interior  sign,
    12  printed,  painted,  electric  or  otherwise, except as authorized by the
    13  office. The office may make such rules as it deems  necessary  to  carry
    14  out the purpose and intent of this subdivision.
    15    4.  Cultivators  of  adult-use cannabis shall only use pesticides that
    16  are registered by the department of environmental conservation  or  that
    17  specifically  meet  the  United  States  environmental protection agency
    18  registration exemption criteria for minimum risk pesticides, and only in
    19  compliance with regulations, standards  and  guidelines  issued  by  the
    20  department of environmental conservation.
    21    5.  No  cultivator  or  processor  of adult-use cannabis, including an
    22  adult-use cannabis cooperative or microbusiness may offer any incentive,
    23  payment or other benefit to a licensed  cannabis  retail  dispensary  in
    24  return for carrying the cultivator, processor, cooperative or microbusi-
    25  ness products, or preferential shelf placement.
    26    6.  All  cannabis  products shall be processed in accordance with good
    27  manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
    28  Federal Regulations, as may be modified by  the  executive  director  in
    29  regulation.
    30    7. No processor of adult-use cannabis shall produce any product which,
    31  in  the  discretion of the office, is designed to appeal to anyone under
    32  the age of twenty-one years.
    33    8. The use or integration of alcohol or nicotine in cannabis  products
    34  is strictly prohibited.
    35    § 82. Provisions governing the distribution of adult-use cannabis.  1.
    36  No  distributor  shall  sell,  or  agree to sell or deliver any cannabis
    37  products, as the case may be, in any container, except in a sealed pack-
    38  age. Such containers shall have affixed thereto such labels  as  may  be
    39  required by the rules of the office.
    40    2. No distributor shall deliver any cannabis products, except in vehi-
    41  cles  owned  and  operated by such distributor, or hired and operated by
    42  such distributor from a trucking or  transportation  company  registered
    43  with the office, and shall only make deliveries at the licensed premises
    44  of the purchaser.
    45    3.  Each  distributor  shall keep and maintain upon the licensed prem-
    46  ises, adequate books and records of all transactions involving the busi-
    47  ness transacted by such distributor, which  shall  show  the  amount  of
    48  cannabis products purchased by such distributor together with the names,
    49  license numbers and places of business of the persons from whom the same
    50  was  purchased and the amount involved in such purchases, as well as the
    51  amount of cannabis products sold by such distributor together  with  the
    52  names,  addresses,  and  license  numbers  of such purchasers. Each sale
    53  shall be recorded separately on a numbered  invoice,  which  shall  have
    54  printed thereon the number, the name of the licensee, the address of the
    55  licensed  premises,  and  the  current  license number. Such distributor
    56  shall deliver to the purchaser a true duplicate invoice stating the name

        S. 1527--A                         39
 
     1  and address  of  the  purchaser,  the  quantity  of  cannabis  products,
     2  description  by  brands  and  the price of such cannabis products, and a
     3  true, accurate and complete statement of the  terms  and  conditions  on
     4  which  such sale is made. Such books, records and invoices shall be kept
     5  for a period of five years and shall be available for inspection by  any
     6  authorized representative of the office.
     7    4. No distributor shall furnish or cause to be furnished to any licen-
     8  see, any exterior or interior sign, printed, painted, electric or other-
     9  wise, unless authorized by the office.
    10    5.  No  distributor  shall  provide  any  discount, rebate or customer
    11  loyalty program to any licensed retailer, except as otherwise allowed by
    12  the office.
    13    6. The executive director  is  authorized  to  promulgate  regulations
    14  establishing  a  maximum  margin  for  which a distributor may mark up a
    15  cannabis product for sale to a retail dispensary. Any adult-use cannabis
    16  product sold by a distributor for more than the maximum  markup  allowed
    17  in regulation, shall be unlawful.
    18    7.  Each  distributor  shall keep and maintain upon the licensed prem-
    19  ises, adequate books and records to demonstrate the distributor's actual
    20  cost of doing business, using accounting standards and methods regularly
    21  employed in the determination of costs for the purpose of federal income
    22  tax reporting, for the total operation  of  the  licensee.  Such  books,
    23  records  and invoices shall be kept for a period of five years and shall
    24  be available for inspection by  any  authorized  representative  of  the
    25  office  for  use in determining the maximum markup allowed in regulation
    26  pursuant to subdivision six of this section.
    27    § 83. Provisions governing adult-use cannabis retail dispensaries.  1.
    28  No cannabis retail licensee shall sell, deliver, or give away  or  cause
    29  or permit or procure to be sold, delivered or given away any cannabis to
    30  any person, actually or apparently, under the age of twenty-one years.
    31    2.  No  cannabis  retail  licensee shall sell alcoholic beverages, nor
    32  have or possess a license or permit to sell alcoholic beverages, on  the
    33  same premises where cannabis products are sold.
    34    3.  No  sign of any kind printed, painted or electric, advertising any
    35  brand shall be permitted on the exterior or interior of  such  premises,
    36  except by permission of the office.
    37    4.  No  cannabis  retail  licensee  shall sell or deliver any cannabis
    38  products to any person with knowledge of, or with  reasonable  cause  to
    39  believe,  that the person to whom such cannabis products are being sold,
    40  has acquired the same for the purpose of selling or giving them away  in
    41  violation of the provisions of this chapter or in violation of the rules
    42  and regulations of the office.
    43    5.  All  premises  licensed  under  this  section  shall be subject to
    44  inspection by any peace officer described in subdivision four of section
    45  2.10 of the criminal procedure law acting pursuant to his or her special
    46  duties, or police officer or any duly authorized representative  of  the
    47  office,  during the hours when the said premises are open for the trans-
    48  action of business.
    49    6. 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  eighteen,

        S. 1527--A                         40
 
     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    7. 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    8. 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    9. No person licensed to sell cannabis products at retail, shall allow
    15  or  permit any gambling, or offer any gambling on the licensed premises,
    16  or allow or permit illicit drug activity on the licensed  premises.  The
    17  use of the licensed premises or any part thereof for the sale of lottery
    18  tickets,  when duly authorized and lawfully conducted thereon, shall not
    19  constitute gambling within the meaning of this subdivision.
    20    10. If an employee of a  cannabis  retail  licensee  suspects  that  a
    21  cannabis  consumer  may  be  abusing  cannabis,  such  an employee shall
    22  encourage such cannabis consumer to  seek  help  from  a  substance  use
    23  disorder  program  or harm reduction services. Cannabis retail licensees
    24  shall develop standard operating procedures and  written  materials  for
    25  employees  to  utilize  when  consulting  consumers for purposes of this
    26  subdivision.
    27    11. The executive director is  authorized  to  promulgate  regulations
    28  governing  licensed  adult-use  dispensing facilities, including but not
    29  limited to, the hours of operation, size and location  of  the  licensed
    30  facility, potency and types of products offered and establishing a mini-
    31  mum  margin for which a retail dispensary must markup a cannabis product
    32  or products before selling to a cannabis consumer. Any adult-use  canna-
    33  bis product sold by a retail dispensary for less than the minimum markup
    34  allowed in regulation, shall be unlawful.
    35    § 84. Adult-use cannabis advertising.  1. The office is hereby author-
    36  ized  to  promulgate rules and regulations governing the advertising and
    37  marketing of licensed cannabis and any cannabis products or services.
    38    2. The office shall promulgate explicit rules prohibiting  advertising
    39  that:
    40    (a) is false, deceptive, or misleading;
    41    (b) promotes overconsumption;
    42    (c) depicts consumption by children or other minors;
    43    (d) is designed in any way to appeal to children or other minors;
    44    (e)  is  within two hundred feet of the perimeter of a school grounds,
    45  playground, child care center, public park, or library;
    46    (f) is within two hundred feet of  school  grounds  as  such  term  is
    47  defined in section 220.00 of the penal law;
    48    (g) is in public transit vehicles and stations;
    49    (h) is in the form of an unsolicited internet pop-up;
    50    (i) is on publicly owned or operated property; or
    51    (j)  makes medical claims or promotes adult-use cannabis for a medical
    52  or wellness purpose.
    53    3. The office shall promulgate explicit rules prohibiting all  market-
    54  ing  strategies and implementation including, but not limited to, brand-
    55  ing, packaging, labeling, location of cannabis retailers, and advertise-
    56  ments that are designed to:

        S. 1527--A                         41
 
     1    (a) appeal to persons less then twenty-one years of age; or
     2    (b) disseminate false or misleading information to customers.
     3    4. The office shall promulgate explicit rules requiring that:
     4    (a)  all  advertisements and marketing accurately and legibly identify
     5  the licensee or other business responsible for its content; and
     6    (b) any broadcast, cable,  radio,  print  and  digital  communications
     7  advertisements  only be placed where the audience is reasonably expected
     8  to be twenty-one years of age  or  older,  as  determined  by  reliable,
     9  up-to-date audience composition data.
    10    §  85.  Minority,  women-owned  businesses  and disadvantaged farmers;
    11  incubator program.  1. The office shall implement a social and  economic
    12  equity  plan  and  actively promote racial, ethnic, and gender diversity
    13  when issuing licenses for adult-use cannabis related activities, includ-
    14  ing by prioritizing consideration  of  applications  by  applicants  who
    15  qualify as a minority and women-owned business or disadvantaged farmers.
    16  Such qualifications shall be determined by the office in regulation.
    17    2.  The  office  shall  create  a  social  and economic equity plan to
    18  promote diversity in ownership and employment in the adult-use  cannabis
    19  industry and ensure inclusion of:
    20    (a) minority-owned businesses;
    21    (b) women-owned businesses;
    22    (c)  minority  and  women-owned  businesses, as defined in subdivision
    23  five of this section; and
    24    (d) disadvantaged farmers, as defined  in  subdivision  five  of  this
    25  section.
    26    3.  The  social  and  economic  equity  plan shall consider additional
    27  criteria in its licensing determinations. Under the social and  economic
    28  equity  plan,  extra  weight  shall be given to applications that demon-
    29  strate that an applicant:
    30    (a) is a member of a community group that has been  disproportionately
    31  impacted by the enforcement of cannabis prohibition;
    32    (b)  has  an  income lower than eighty percent of the median income of
    33  the county in which the applicant resides; and
    34    (c) was convicted of a cannabis-related offense prior to the effective
    35  date of this chapter, or had  a  parent,  guardian,  child,  spouse,  or
    36  dependent,  or was a dependent of an individual who, prior to the effec-
    37  tive date of this chapter, was convicted of a cannabis-related offense.
    38    4. The office shall also create an incubator program to provide direct
    39  support to social and economic equity applicants after  they  have  been
    40  granted  licenses.  The program shall provide direct support in the form
    41  of counseling services, education, small business coaching, and  compli-
    42  ance assistance.
    43    5.  For  the purposes of this section, the following definitions shall
    44  apply:
    45    (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
    46  including  a sole proprietorship, partnership, limited liability company
    47  or corporation that is:
    48    (i) at least fifty-one percent owned by one  or  more  minority  group
    49  members;
    50    (ii)  an enterprise in which such minority ownership is real, substan-
    51  tial and continuing;
    52    (iii) an enterprise in which such minority ownership has and exercises
    53  the authority to control independently the day-to-day business decisions
    54  of the enterprise;
    55    (iv) an enterprise authorized to do business in this state  and  inde-
    56  pendently owned and operated; and

        S. 1527--A                         42
 
     1    (v) an enterprise that is a small business.
     2    (b)  "minority  group  member"  shall  mean a United States citizen or
     3  permanent resident alien who is and can demonstrate membership in one of
     4  the following groups:
     5    (i) black persons having origins in any of the  black  African  racial
     6  groups;
     7    (ii)  Hispanic  persons  of  Mexican,  Puerto Rican, Dominican, Cuban,
     8  Central or South American of either Indian or Hispanic  origin,  regard-
     9  less of race;
    10    (iii)  Native American or Alaskan native persons having origins in any
    11  of the original peoples of North America; or
    12    (iv) Asian and Pacific Islander persons having origins in any  of  the
    13  far  east  countries,  south  east  Asia, the Indian subcontinent or the
    14  Pacific islands.
    15    (c) "women-owned business" shall mean a business enterprise, including
    16  a sole proprietorship, partnership, limited liability company or  corpo-
    17  ration that is:
    18    (i)  at  least  fifty-one  percent  owned by one or more United States
    19  citizens or permanent resident aliens who are women;
    20    (ii) an enterprise in which the ownership interest of  such  women  is
    21  real, substantial and continuing;
    22    (iii)  an  enterprise  in which such women ownership has and exercises
    23  the authority to control independently the day-to-day business decisions
    24  of the enterprise;
    25    (iv) an enterprise authorized to do business in this state  and  inde-
    26  pendently owned and operated; and
    27    (v) an enterprise that is a small business.
    28    (d) a firm owned by a minority group member who is also a woman may be
    29  defined as a minority-owned business, a women-owned business, or both.
    30    (e)  "disadvantaged  farmer"  shall  mean a New York state resident or
    31  business  enterprise,  including  a  sole  proprietorship,  partnership,
    32  limited  liability  company  or  corporation, that has reported at least
    33  two-thirds of its federal gross income as income  from  farming,  in  at
    34  least one of the past five preceding tax years, and who:
    35    (i) farms in a county that has greater than ten percent rate of pover-
    36  ty  according  to  the  latest U.S. Census Bureau's American Communities
    37  Survey;
    38    (ii) has been disproportionately impacted by low commodity  prices  or
    39  faces the loss of farmland through development or suburban sprawl; and
    40    (iii)  meets  any other qualifications as defined in regulation by the
    41  office.
    42    6. The office shall actively promote applicants  that  foster  racial,
    43  ethnic, and gender diversity in their workforce.
    44    7. Licenses issued under the social and economic equity plan shall not
    45  be  transferable  except  to qualified social and economic equity appli-
    46  cants and only upon prior written approval of the executive director.
    47    8. The office shall collect demographic data on owners  and  employees
    48  in the adult-use cannabis industry and shall annually publish such data.
    49    §  86. Regulations.   The executive director shall make regulations to
    50  implement this article.
 
    51                                  ARTICLE 5
    52                                HEMP CANNABIS
 
    53  Section 90.  Cannabinoid related hemp cannabis licensing.
    54          91.  Cannabinoid grower licenses.

        S. 1527--A                         43
 
     1          92.  Cannabinoid extractor license.
     2          93.  Cannabinoid license applications.
     3          94.  Information to be requested in applications for licenses.
     4          95.  Fees.
     5          96.  Selection criteria.
     6          97.  Limitations of licensure; duration.
     7          98.  License renewal.
     8          99.  Form of license.
     9          100. Amendments  to  license  and  duty  to  update  information
    10                 submitted for licensing.
    11          101. Record keeping and tracking.
    12          102. Inspections and ongoing requirements.
    13          103. Packaging and labeling of hemp cannabis.
    14          104. Provisions governing the growing  and  extracting  of  hemp
    15                 cannabis.
    16          105. Laboratory testing.
    17          106. Advertising.
    18          107. Research.
    19          108. Regulations.
    20    §  90.  Cannabinoid related hemp cannabis licensing.  1. Persons grow-
    21  ing, processing,  extracting,  and/or  manufacturing  hemp  cannabis  or
    22  producing  hemp  cannabis  products  distributed,  sold  or marketed for
    23  cannabinoid content and used or intended for human or animal consumption
    24  or use, shall be required to obtain the following  license  or  licenses
    25  from the office, depending upon the operation:
    26    (a) cannabinoid grower license; and/or
    27    (b) cannabinoid extractor license.
    28    2. Notwithstanding subsection one of this section, those persons grow-
    29  ing,  processing  or  manufacturing  food  or food ingredients from hemp
    30  shall be subject to regulation and/or licensing  under  the  agriculture
    31  and markets law.
    32    §  91. Cannabinoid grower licenses.  1. A cannabinoid grower's license
    33  authorizes the acquisition, possession, cultivation  and  sale  of  hemp
    34  cannabis grown or used for its cannabinoid content on the licensed prem-
    35  ises of the grower.
    36    2. A person holding a cannabinoid grower's license shall not sell hemp
    37  products  marketed,  distributed or sold for its cannabinoid content and
    38  intended for human consumption or use without also being licensed as  an
    39  extractor pursuant to this article.
    40    3.  Persons growing industrial hemp pursuant to article twenty-nine of
    41  the agriculture and markets law are not authorized to and shall not sell
    42  hemp cannabis for human or animal consumption.
    43    4. A person licensed under article twenty-nine of the agriculture  and
    44  markets  law  as  an  industrial hemp grower may apply for a cannabinoid
    45  grower's license provided that it can demonstrate to the office that its
    46  cultivation of industrial hemp  meets  all  the  requirements  for  hemp
    47  cannabis cultivated under a cannabinoid grower's license.
    48    §  92.  Cannabinoid  extractor  license.    1. A cannabinoid extractor
    49  license authorizes the licensee's  acquisition,  possession,  extraction
    50  and manufacture of hemp from a licensed cannabinoid grower for the proc-
    51  essing  of  hemp  cannabis  or  the production of hemp cannabis products
    52  marketed, distributed or  sold  for  cannabinoid  content  and  used  or
    53  intended for human or animal consumption or use.
    54    2.  No  cannabinoid extractor licensee shall engage in any other busi-
    55  ness on the licensed premises; except that  nothing  contained  in  this

        S. 1527--A                         44
 
     1  chapter  shall  prevent a cannabinoid extractor licensee from also being
     2  licensed as a cannabinoid grower on the same premises.
     3    3.  Notwithstanding  subdivisions one and two of this section, nothing
     4  shall prevent a cannabinoid extractor from manufacturing  hemp  products
     5  not used or intended for human or animal consumption or use.
     6    §  93.  Cannabinoid license applications. 1. Persons shall apply for a
     7  cannabinoid grower license and/or a  cannabinoid  extractor  license  by
     8  submitting  an application upon a form supplied by the office, providing
     9  all the requested information, verified by the applicant or  an  author-
    10  ized representative of the applicant.
    11    2.  A  separate  license  shall be required for each facility at which
    12  growing or extracting is conducted.
    13    3. Each application shall remit with its application the fee for  each
    14  requested license.
    15    §  94.  Information  to be requested in applications for licenses.  1.
    16  The office shall have the authority to prescribe the manner and form  in
    17  which an application must be submitted to the office for licensure under
    18  this article.
    19    2.  The executive director is authorized to adopt regulations, includ-
    20  ing by emergency rule, establishing information which must  be  included
    21  on an application for licensure under this article. Such information may
    22  include, but is not limited to:  information about the applicant's iden-
    23  tity,  including  racial  and ethnic diversity; ownership and investment
    24  information, including the corporate structure; evidence of  good  moral
    25  character,  including the submission of fingerprints by the applicant to
    26  the division of criminal justice services; information about  the  prem-
    27  ises  to  be  licensed;  financial statements; and any other information
    28  prescribed by in regulation.
    29    3. All license applications shall be signed by the  applicant  (if  an
    30  individual), by a managing partner (if a limited liability corporation),
    31  by an officer (if a corporation), or by all partners (if a partnership).
    32  Each  person  signing  such  application shall verify it or affirm it as
    33  true under the penalties of perjury.
    34    4. All license or permit applications shall be accompanied by a check,
    35  draft or other forms of payment as the office may require  or  authorize
    36  in the amount required by this article for such license or permit.
    37    5.  If there be any change, after the filing of the application or the
    38  granting of a license, in any of the facts required to be set  forth  in
    39  such application, a supplemental statement giving notice of such change,
    40  cost and source of money involved in the change, duly verified, shall be
    41  filed  with  the office within ten days after such change. Failure to do
    42  so shall, if willful and deliberate, be  cause  for  revocation  of  the
    43  license.
    44    6. In giving any notice, or taking any action in reference to a licen-
    45  see  of  a  licensed  premises, the office may rely upon the information
    46  furnished  in  such  application  and  in  any  supplemental   statement
    47  connected therewith, and such information may be presumed to be correct,
    48  and  shall  be  binding  upon  a  registered  organization,  licensee or
    49  licensed  premises  as  if  correct.  All  information  required  to  be
    50  furnished in such application or supplemental statements shall be deemed
    51  material  in  any  prosecution  for  perjury,  any proceeding to revoke,
    52  cancel or suspend any license, and  in  the  office's  determination  to
    53  approve or deny the license.
    54    7.  The  office  may,  in  its discretion, waive the submission of any
    55  category of information described in this section for  any  category  of
    56  license  or permit, provided that it shall not be permitted to waive the

        S. 1527--A                         45
 
     1  requirement for submission of any such category  of  information  solely
     2  for an individual applicant or applicants.
     3    §  95. Fees. The office shall have the authority to charge licensees a
     4  biennial license fee. Such fee may be based on the amount of hemp canna-
     5  bis to be grown, processed or extracted by the licensee, the gross annu-
     6  al receipts of the licensee for the  previous  license  period,  or  any
     7  other factors deemed appropriate by the office.
     8    § 96. Selection criteria. 1. An applicant shall furnish evidence:
     9    (a) its ability to effectively maintain a delta-9 tetrahydrocannabinol
    10  concentration  that  does not exceed a percentage of delta-9 tetrahydro-
    11  cannabinol cannabis set by the executive director on a dry weight  basis
    12  of  any part of the plant of the genus cannabis, or per volume or weight
    13  of cannabis product, or the combined percent of delta-9 tetrahydrocanna-
    14  binol and tetrahydrocannabinolic acid in any part of the  plant  of  the
    15  genus cannabis regardless of moisture content, for all hemp cannabis and
    16  hemp  derived  products cultivated, processed or extracted by the appli-
    17  cant;
    18    (b) its ability to comply with all applicable  state  laws  and  regu-
    19  lations,  including, without limitation, the provisions of article four-
    20  teen of the agriculture and markets law;
    21    (c) that the applicant is ready, willing and able to properly carry on
    22  the activities for which a license is sought; and
    23    (d) that the applicant is in possession of or has  the  right  to  use
    24  land, buildings and equipment sufficient to properly carry on the activ-
    25  ity described in the application.
    26    2.  The  office,  in considering whether to grant the license applica-
    27  tion, shall consider whether:
    28    (a) it is in the public interest that such license be granted,  taking
    29  into  consideration  whether  the number of licenses will be adequate or
    30  excessive to reasonably serve demand;
    31    (b) the applicant and its managing officers are of good moral  charac-
    32  ter  and  do  not  have  an  ownership  or  controlling interest in more
    33  licenses or permits than allowed by this chapter; and
    34    (c) the applicant satisfies any other conditions as determined by  the
    35  office.
    36    3.  If  the  executive  director  is  not satisfied that the applicant
    37  should be issued a license, the  executive  director  shall  notify  the
    38  applicant in writing of the specific reason or reasons for denial.
    39    4.  The  office  shall  give priority in licensing to residents of the
    40  state of New York. Applicants must have lived in New York state  for  at
    41  least  three  years  prior  to  the effective date of this chapter to be
    42  granted such priority.
    43    5. The executive director shall have authority and sole discretion  to
    44  determine the number of licenses issued pursuant to this article.
    45    §  97.  Limitations  of licensure; duration. 1. No license pursuant to
    46  this article may be issued to a  person  under  the  age  of  twenty-one
    47  years.
    48    2.  The  office  shall  have  the authority to limit, by canopy, plant
    49  count or other means, the amount of hemp cannabis allowed to  be  culti-
    50  vated, processed, extracted or sold by a licensee.
    51    3.  All  licenses  under this article shall expire two years after the
    52  date of issue and be subject to any rules or limitations  prescribed  by
    53  the executive director in regulation.
    54    §  98. License renewal. 1. Each license, issued pursuant to this arti-
    55  cle, may be renewed upon application therefor by the  licensee  and  the
    56  payment of the fee for such license as prescribed by this article.

        S. 1527--A                         46
 
     1    2.  In  the case of applications for renewals, the office may dispense
     2  with the requirements of such statements as it deems unnecessary in view
     3  of those contained in the application made for the original license, but
     4  in any event the submission of  photographs  of  the  licensed  premises
     5  shall  be  dispensed with, provided the applicant for such renewal shall
     6  file a statement with the office to the effect that there  has  been  no
     7  alteration of such premises since the original license was issued.
     8    3.  The office may make such rules as may be necessary, not inconsist-
     9  ent with this chapter, regarding applications for renewals  of  licenses
    10  and permits and the time for making the same.
    11    4.  The  office  shall provide an application for renewal of a license
    12  issued under this article not less than ninety days prior to the expira-
    13  tion of the current license.
    14    5. The office may only issue a renewal license  upon  receipt  of  the
    15  prescribed  renewal  application  and renewal fee from a licensee if, in
    16  addition to the criteria in section ninety-four  of  this  article,  the
    17  license's license is not under suspension and has not been revoked.
    18    6. The office shall have the authority to charge applicants for licen-
    19  sure  under  this article a non-refundable application fee. Such fee may
    20  be based on the type of licensure sought, cultivation and/or  production
    21  volume,  or  any  other factors deemed reasonable and appropriate by the
    22  office to achieve the policy and purpose of this chapter.
    23    § 99. Form of license. Licenses issued pursuant to this article  shall
    24  specify:
    25    1. the name and address of the licensee;
    26    2. the activities permitted by the license;
    27    3.  the  land,  buildings  and  facilities  that  may  be used for the
    28  licensed activities of the licensee;
    29    4. a unique license number issued by the office to the licensee; and
    30    5. such other information as the executive director shall deem  neces-
    31  sary to assure compliance with this chapter.
    32    §  100. Amendments to license and duty to update information submitted
    33  for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
    34  license  may  be  amended  to  allow the licensee to relocate within the
    35  state, to add or delete licensed activities or facilities, or  to  amend
    36  the  ownership  or  organizational  structure  of the entity that is the
    37  licensee. The fee for such amendment shall be two hundred fifty dollars.
    38    2. In the event that any of the information provided by the  applicant
    39  changes  either while the application is pending or after the license is
    40  granted, within ten days of any such change, the applicant  or  licensee
    41  shall submit to the office a verified statement setting forth the change
    42  in circumstances of facts set forth in the application. Failure to do so
    43  shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
    44  license.
    45    3. A license shall become void by a change in  ownership,  substantial
    46  corporate change or location without prior written approval of the exec-
    47  utive  director.    The  executive  director  may promulgate regulations
    48  allowing for certain types of changes in ownership without the need  for
    49  prior written approval.
    50    4.  For purposes of this section, "substantial corporate change" shall
    51  mean:
    52    (a) for a corporation, a change of eighty percent or more of the offi-
    53  cers and/or directors, or a transfer of eighty percent or more of  stock
    54  of such corporation, or an existing stockholder obtaining eighty percent
    55  or more of the stock of such corporation; and

        S. 1527--A                         47
 
     1    (b)  for  a  limited  liability company, a change of eighty percent or
     2  more of the managing members of the company, or  a  transfer  of  eighty
     3  percent  or  more  of ownership interest in said company, or an existing
     4  member obtaining a cumulative of eighty percent or more of the ownership
     5  interest in said company.
     6    §  101.  Record keeping and tracking. 1. The executive director shall,
     7  by regulation, require each licensee pursuant to this article  to  adopt
     8  and  maintain  security,  tracking, record keeping, record retention and
     9  surveillance systems, relating to all hemp cannabis at  every  stage  of
    10  acquiring,  possession,  manufacture,  transport,  sale, or delivery, or
    11  distribution by the licensee, subject to regulations  of  the  executive
    12  director.
    13    2.  Every licensee shall keep and maintain upon the licensed premises,
    14  adequate books and records of all transactions  involving  the  licensee
    15  and  sale  of its products, which shall include all information required
    16  by rules promulgated by the office.
    17    3. Each sale shall be recorded separately on a numbered invoice, which
    18  shall have printed thereon the number, the name  of  the  licensee,  the
    19  address of the licensed premises, and the current license number.
    20    4. Such books, records and invoices shall be kept for a period of five
    21  years  and shall be available for inspection by any authorized represen-
    22  tative of the office.
    23    § 102. Inspections and ongoing requirements. All  licensees  shall  be
    24  subject to reasonable inspection by the office, and a person who holds a
    25  license must make himself or herself, or an agent thereof, available and
    26  present for any inspection required by the office. The office shall make
    27  reasonable  accommodations  so that ordinary business is not interrupted
    28  and  safety  and  security  procedures  are  not  compromised   by   the
    29  inspection.
    30    §  103.  Packaging  and  labeling of hemp cannabis.   1. The office is
    31  hereby authorized to promulgate  rules  and  regulations  governing  the
    32  packaging  and labeling of hemp cannabis products, sold or possessed for
    33  sale in New York state.
    34    2. Such regulations shall include, but not be  limited  to,  requiring
    35  labels warning consumers of any potential impact on human health result-
    36  ing from the consumption of hemp cannabis products that shall be affixed
    37  to  those products when sold, if such labels are deemed warranted by the
    38  office.
    39    3. Such rules and regulations shall establish methods  and  procedures
    40  for  determining,  among  other  things, serving sizes for hemp cannabis
    41  products, active cannabinoid concentration per serving size, and  number
    42  of  servings per container. Such regulations shall also require a nutri-
    43  tional fact panel that incorporates data  regarding  serving  sizes  and
    44  potency thereof.
    45    4.  The  packaging,  sale,  or  possession by any licensee of any hemp
    46  product intended for human or animal consumption or use not  labeled  or
    47  offered  in conformity with rules and regulations promulgated in accord-
    48  ance with this section shall be grounds for the imposition  of  a  fine,
    49  and/or the suspension, revocation or cancellation of a license.
    50    §  104. Provisions governing the growing and extracting of hemp canna-
    51  bis.  1. No licensed cannabinoid grower  or  extractor  shall  sell,  or
    52  agree to sell or deliver in the state any hemp cannabis products, as the
    53  case  may  be,  except  in  sealed  containers  containing quantities in
    54  accordance with size standards pursuant to rules adopted by the  office.
    55  Such  containers  shall  have  affixed  thereto  such  labels  as may be
    56  required by the rules of the office.

        S. 1527--A                         48
 
     1    2. Licensed cannabinoid growers shall only  use  pesticides  that  are
     2  registered  by  the New York state department of environmental conserva-
     3  tion  or  that  specifically  meet  the  United   States   environmental
     4  protection  agency  registration  exemption  criteria  for  minimum risk
     5  pesticides,  and  only  in  compliance  with  regulations, standards and
     6  guidelines issued by the department of environmental conservation.
     7    3. All hemp cannabis products shall be extracted and  manufactured  in
     8  accordance  with  good  manufacturing processes, pursuant to Part 111 of
     9  Title 21 of the Code of Federal Regulations as may be  modified  by  the
    10  executive director in regulation.
    11    4.  The  use  or  integration  of alcohol or nicotine in hemp cannabis
    12  products is strictly prohibited.
    13    § 105.  Laboratory  testing.  1.  Every  cannabinoid  extractor  shall
    14  contract  with  an  independent laboratory to test the cannabis products
    15  produced by the licensed extractor. The executive director, in consulta-
    16  tion with the commissioner of health, shall approve the  laboratory  and
    17  require  that  the  laboratory report testing results in a manner deter-
    18  mined by the executive director. The executive director is authorized to
    19  issue regulations requiring the laboratory to perform certain tests  and
    20  services.
    21    2. Cannabinoid extractors shall make laboratory test reports available
    22  to  persons holding a cannabinoid permit pursuant to article six of this
    23  chapter for all cannabis products manufactured by the licensee.
    24    3. On-site laboratory testing by licensees  is  permissible;  however,
    25  such  testing  shall  not be certified by the office and does not exempt
    26  the licensee from the requirements of quality  assurance  testing  at  a
    27  testing laboratory pursuant to this section.
    28    §  106. Advertising. The office shall promulgate rules and regulations
    29  governing the  advertising  of  hemp  cannabis  and  any  other  related
    30  products or services as determined by the executive director.
    31    §  107. Research. 1. The office shall promote research and development
    32  through public-private partnerships  to  bring  new  hemp  cannabis  and
    33  industrial hemp derived products to market within the state.
    34    2.  The executive director may develop and carry out research programs
    35  relating to industrial hemp and hemp cannabis.
    36    § 108. Regulations. The executive director shall make  regulations  to
    37  implement this article.
 
    38                                  ARTICLE 6
    39                             GENERAL PROVISIONS
 
    40  Section 125. General prohibitions and restrictions.
    41          126. License  to  be confined to premises licensed; premises for
    42                 which no license shall be granted; transporting cannabis.
    43          127. Protections for the use  of  cannabis;  unlawful  discrimi-
    44                 nations prohibited.
    45          128. Registrations and licenses.
    46          129. Laboratory testing permit.
    47          130. Special use permits.
    48          131. Professional and medical record keeping.
    49          132. Local opt-out; municipal control and preemption.
    50          133. Personal cultivation.
    51          134. Executive   director  to  be  necessary  party  to  certain
    52                 proceedings.
    53          135. Penalties for violation of this chapter.

        S. 1527--A                         49

     1          136. Revocation  of  registrations,  licenses  and  permits  for
     2                 cause; procedure for revocation or cancellation.
     3          137. Lawful actions pursuant to this chapter.
     4          138. Review by courts.
     5          139. Illicit cannabis.
     6          140. Injunction for unlawful manufacture, sale or consumption of
     7                 cannabis.
     8          141. Persons  forbidden  to  traffic cannabis; certain officials
     9                 not to be interested in manufacture or sale  of  cannabis
    10                 products.
    11          142. Access to criminal history information through the division
    12                 of criminal justice services.
    13    §  125.  General  prohibitions  and restrictions.   1. No person shall
    14  cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
    15  retail any cannabis, cannabis product, medical cannabis or hemp cannabis
    16  product within the state without obtaining the appropriate registration,
    17  license, or permit therefor required by this chapter.
    18    2.  No  registered organization, licensee, or permittee shall sell, or
    19  agree to sell or deliver in this state any cannabis or hemp cannabis for
    20  the purposes of resale  to  any  person  who  is  not  duly  registered,
    21  licensed  or permitted pursuant to this chapter to sell such product, at
    22  wholesale or retail, as the case may be, at the time of  such  agreement
    23  and sale.
    24    3. No registered organization, licensee, or permittee shall employ, or
    25  permit  to  be  employed, or shall allow to work, on any premises regis-
    26  tered or licensed for retail sale hereunder, any person under the age of
    27  twenty-one years in any capacity where the duties of such person require
    28  or permit such person to sell,  dispense  or  handle  cannabis  or  hemp
    29  cannabis.
    30    4.  No  registered  organization,  licensee,  or permittee shall sell,
    31  deliver or give away, or cause, permit or procure to be sold,  delivered
    32  or  given  away any cannabis, cannabis product, medical cannabis or hemp
    33  cannabis on credit; except that a registered organization,  licensee  or
    34  permittee may accept third party credit cards for the sale of any canna-
    35  bis, cannabis product, medical cannabis or hemp cannabis for which it is
    36  registered,  licensed  or  permitted  to dispense or sell to patients or
    37  cannabis consumers. This includes, but is not limited to,  any  consign-
    38  ment sale of any kind.
    39    5.  No  registered organization, licensee, or permittee shall cease to
    40  be operated as a bona fide or legitimate  premises  within  the  contem-
    41  plation  of  the  registration, license, or permit issued for such prem-
    42  ises, as determined within the judgment of the office.
    43    6. No registered organization, licensee, or  permittee  shall  refuse,
    44  nor  any  person  holding a registration, license, or permit refuse, nor
    45  any officer or director of any corporation  or  organization  holding  a
    46  registration,  license, or permit refuse, to appear and/or testify under
    47  oath at an inquiry or hearing held by the office, with  respect  to  any
    48  matter bearing upon the registration, license, or permit, the conduct of
    49  any  people  at  the licensed premises, or bearing upon the character or
    50  fitness of such registrant, licensee, or permittee to continue  to  hold
    51  any  registration,  license, or permit. Nor shall any of the above offer
    52  false testimony under oath at such inquiry or hearing.
    53    7. No registered organization, licensee, or  permittee  shall  engage,
    54  participate  in, or aid or abet any violation or provision of this chap-
    55  ter, or the rules or regulations of the office.

        S. 1527--A                         50
 
     1    8. The proper conduct of registered, licensed, or  permitted  premises
     2  is  essential  to the public interest. Failure of a registered organiza-
     3  tion, licensee, or permittee to exercise adequate supervision  over  the
     4  registered, licensed, or permitted location poses a substantial risk not
     5  only  to the objectives of this chapter but imperils the health, safety,
     6  and welfare of the people of this state. It shall be the  obligation  of
     7  each  person  registered,  licensed,  or permitted under this chapter to
     8  ensure that a high degree of supervision is exercised over any  and  all
     9  conduct  at  any  registered, licensed, or permitted location at any and
    10  all times in order to safeguard against abuses of the privilege of being
    11  registered, licensed, or permitted, as well as other violations of  law,
    12  statute, rule, or regulation. Persons registered, licensed, or permitted
    13  shall be held strictly accountable for any and all violations that occur
    14  upon  any  registered,  licensed, or permitted premises, and for any and
    15  all violations committed by  or  permitted  by  any  manager,  agent  or
    16  employee of such registered, licensed, or permitted person.
    17    9.  It  shall  be  unlawful for any person, partnership or corporation
    18  operating a place for profit or pecuniary gain, with a capacity for  the
    19  assemblage  of  twenty  or more persons to permit a person or persons to
    20  come to the place of assembly for the purpose of  cultivating,  process-
    21  ing,  distributing,  or  retail distribution or sale of cannabis on said
    22  premises. This includes, but is not limited, to, cannabis that is either
    23  provided by the operator of the place of assembly, his agents,  servants
    24  or  employees,  or  cannabis  that  is brought onto said premises by the
    25  person or persons assembling at such place, unless an appropriate regis-
    26  tration, license, or permit has first been obtained from the  office  of
    27  cannabis management by the operator of said place of assembly.
    28    10.  As it is a privilege under the law to be registered, licensed, or
    29  permitted to cultivate, process, distribute, traffic, or sell  cannabis,
    30  the office may impose any such further restrictions upon any registrant,
    31  licensee,  or permittee in particular instances as it deems necessary to
    32  further state policy and best serve the public interest. A violation  or
    33  failure  of any person registered, licensed, or permitted to comply with
    34  any condition, stipulation, or agreement, upon which  any  registration,
    35  license, or permit was issued or renewed by the office shall subject the
    36  registrant,  licensee, or permittee to suspension, cancellation, revoca-
    37  tion, and/or civil penalties as determined by the office.
    38    11. No adult-use cannabis or medical cannabis may be imported  to,  or
    39  exported  out  of, New York state by a registered organization, licensee
    40  or person holding a license and/or  permit  pursuant  to  this  chapter,
    41  until  such  time  as  it  may  become legal to do so under federal law.
    42  Should it become legal to do so under federal law, the office is granted
    43  the power to promulgate such rules and regulations as it deems necessary
    44  to protect the public and the policy of the state.
    45    12. No registered organization, licensee or any of its  agents,  serv-
    46  ants or employees shall peddle any cannabis product, medical cannabis or
    47  hemp  cannabis  from  house  to  house by means of a truck or otherwise,
    48  where the sale is consummated and  delivery  made  concurrently  at  the
    49  residence  or place of business of a cannabis consumer. This subdivision
    50  shall not prohibit the delivery by a registered organization  to  certi-
    51  fied  patients or their designated caregivers, pursuant to article three
    52  of this chapter.
    53    13. No licensee shall  employ  any  canvasser  or  solicitor  for  the
    54  purpose of receiving an order from a certified patient, designated care-
    55  giver or cannabis consumer for any cannabis product, medical cannabis or
    56  hemp  cannabis  at  the  residence or place of business of such patient,

        S. 1527--A                         51
 
     1  caregiver or consumer, nor shall any  licensee  receive  or  accept  any
     2  order,  for  the  sale of any cannabis product, medical cannabis or hemp
     3  cannabis which shall be solicited at the residence or place of  business
     4  of a patient, caregiver or consumer. This subdivision shall not prohibit
     5  the  solicitation  by a distributor of an order from any licensee at the
     6  licensed premises of such licensee.
     7    § 126. License to be confined to premises licensed; premises for which
     8  no license shall be granted; transporting cannabis.  1. A  registration,
     9  license,  or  permit issued to any person, pursuant to this chapter, for
    10  any registered, licensed, or permitted premises shall not be  transfera-
    11  ble  to  any  other person, to any other location or premises, or to any
    12  other building or part of the building containing the licensed  premises
    13  except  in  the  discretion of the office. All privileges granted by any
    14  registration, license, or permit shall be available only to  the  person
    15  therein  specified,  and  only  for  the  premises licensed and no other
    16  except if authorized  by  the  office.    Provided,  however,  that  the
    17  provisions of this section shall not be deemed to prohibit the amendment
    18  of  a  registration  or  license  as  provided  for  in  this chapter. A
    19  violation of this section shall subject the  registration,  license,  or
    20  permit to revocation for cause.
    21    2.  Where a registration or license for premises has been revoked, the
    22  office in its discretion may refuse to issue a registration, license, or
    23  permit under this chapter, for a period of up to five years  after  such
    24  revocation, for such premises or for any part of the building containing
    25  such premises and connected therewith.
    26    3.  In determining whether to issue such a proscription against grant-
    27  ing any registration, license, or permit for such five-year  period,  in
    28  addition  to any other factors deemed relevant to the office, the office
    29  shall, in the case of a license revoked  due  to  the  illegal  sale  of
    30  cannabis  to a minor, determine whether the proposed subsequent licensee
    31  has obtained such premises through an arm's length transaction, and,  if
    32  such  transaction  is  not  found to be an arm's length transaction, the
    33  office shall deny the issuance of such license.
    34    4. For purposes of this section, "arm's length transaction" shall mean
    35  a sale of a fee of all undivided  interests  in  real  property,  lease,
    36  management  agreement,  or  other agreement giving the applicant control
    37  over the cannabis at the premises, or any  part  thereof,  in  the  open
    38  market,  between  an informed and willing buyer and seller where neither
    39  is under any compulsion to participate in the transaction, unaffected by
    40  any unusual conditions indicating a reasonable possibility that the sale
    41  was made for the purpose of permitting the original  licensee  to  avoid
    42  the  effect of the revocation. The following sales shall be presumed not
    43  to  be  arm's  length  transactions  unless  adequate  documentation  is
    44  provided  demonstrating  that  the sale, lease, management agreement, or
    45  other agreement giving the applicant control over the  cannabis  at  the
    46  premises,  was  not  conducted,  in whole or in part, for the purpose of
    47  permitting the original licensee to avoid the effect of the revocation:
    48    (a) a sale between relatives;
    49    (b) a sale between related companies or partners in a business; or
    50    (c) a sale, lease, management agreement, or other agreement giving the
    51  applicant control over the cannabis at the premises, affected  by  other
    52  facts or circumstances that would indicate that the sale, lease, manage-
    53  ment agreement, or other agreement giving the applicant control over the
    54  cannabis  at  the  premises,  is entered into for the primary purpose of
    55  permitting the original licensee to avoid the effect of the revocation.

        S. 1527--A                         52
 
     1    5. No registered organization, licensee or permittee  shall  transport
     2  cannabis products or medical cannabis except in vehicles owned and oper-
     3  ated  by  such  registered organization, licensee or permittee, or hired
     4  and operated by such registered organization, licensee or permittee from
     5  a  trucking  or transportation company permitted and registered with the
     6  office.
     7    6. No common carrier or person operating a transportation facility  in
     8  this  state,  other than the United States government, shall receive for
     9  transportation or delivery within the state  any  cannabis  products  or
    10  medical cannabis unless the shipment is accompanied by copy of a bill of
    11  lading,  or  other document, showing the name and address of the consig-
    12  nor, the name and address of the consignee, the date  of  the  shipment,
    13  and  the  quantity  and  kind  of  cannabis products or medical cannabis
    14  contained therein.
    15    § 127. Protections for the use of cannabis;  unlawful  discriminations
    16  prohibited.   1. No person, registered organization, licensee or permit-
    17  tee, employees, or their agents shall be subject to arrest, prosecution,
    18  or penalty in any manner, or denied any right  or  privilege,  including
    19  but  not limited to civil liability or disciplinary action by a business
    20  or occupational or professional licensing board or  office,  solely  for
    21  conduct  permitted  under  this chapter. For the avoidance of doubt, the
    22  appellate division of the supreme court of the state of  New  York,  and
    23  any disciplinary or character and fitness committees established by them
    24  are occupational and professional licensing boards within the meaning of
    25  this  section. State or local law enforcement agencies shall not cooper-
    26  ate with or provide assistance to the government of the United States or
    27  any agency thereof in enforcing the federal  controlled  substances  act
    28  solely for actions consistent with this chapter, except as pursuant to a
    29  valid court order.
    30    2.  No school or landlord may refuse to enroll or lease to and may not
    31  otherwise penalize a person solely for conduct allowed under this  chap-
    32  ter, except as exempted:
    33    (a)  if  failing to do so would cause the school or landlord to lose a
    34  monetary or licensing related benefit under federal law or regulations;
    35    (b) if the institution has  adopted  a  code  of  conduct  prohibiting
    36  cannabis use on the basis of religious belief; or
    37    (c)  if  a property is registered with the New York smoke-free housing
    38  registry, it is not required to permit the smoking of cannabis  products
    39  on its premises.
    40    3.  For  the  purposes of medical care, including organ transplants, a
    41  certified patient's authorized use of medical cannabis must  be  consid-
    42  ered  the equivalent of the use of any other medication under the direc-
    43  tion of a practitioner and does not constitute the  use  of  an  illicit
    44  substance  or  otherwise disqualify a registered qualifying patient from
    45  medical care.
    46    4. Unless an employer establishes that the lawful use of cannabis  has
    47  impaired  the employee's ability to perform the employee's job responsi-
    48  bilities, it shall be unlawful to take  any  adverse  employment  action
    49  against an employee based on conduct allowed under this chapter.
    50    5.  For  the  purposes  of  this  section, an employer may consider an
    51  employee's ability to perform the employee's job responsibilities to  be
    52  impaired when the employee manifests specific articulable symptoms while
    53  working that decrease or lessen the employee's performance of the duties
    54  or tasks of the employee's job position.
    55    6.  Nothing  in  this  section shall restrict an employer's ability to
    56  prohibit or take adverse employment action for the possession or use  of

        S. 1527--A                         53
 
     1  intoxicating  substances  during  work  hours, or require an employer to
     2  commit any act that would cause the  employer  to  be  in  violation  of
     3  federal  law,  or that would result in the loss of a federal contract or
     4  federal funding.
     5    7. As used in this section, "adverse employment action" means refusing
     6  to  hire  or employ, barring or discharging from employment, requiring a
     7  person to retire from employment, or discriminating against  in  compen-
     8  sation or in terms, conditions, or privileges of employment.
     9    8.  A  person  currently under parole, probation or other state super-
    10  vision, or released on bail awaiting trial may not be punished or other-
    11  wise penalized for conduct allowed under this chapter.
    12    9. No person may be denied custody of or visitation or parenting  time
    13  with  a minor, and there is no presumption of neglect or child endanger-
    14  ment for conduct allowed under section 222.05 of the penal  law,  unless
    15  the  person's  behavior  creates an unreasonable danger to the safety of
    16  the minor as established by  clear  and  convincing  evidence.  For  the
    17  purposes  of this section, an "unreasonable danger" determination cannot
    18  be based solely on whether, when, and how often a person  uses  cannabis
    19  without separate evidence of harm.
    20    §  128.  Registrations  and  licenses.   1. No registration or license
    21  shall be transferable or  assignable  except  that  notwithstanding  any
    22  other provision of law, the registration or license of a sole proprietor
    23  converting  to  corporate  form,  where such proprietor becomes the sole
    24  stockholder and only officer and director of such new  corporation,  may
    25  be  transferred  to  the subject corporation if all requirements of this
    26  chapter remain the same with respect to such registration or license  as
    27  transferred  and, further, the registered organization or licensee shall
    28  transmit to the office, within ten  days  of  the  transfer  of  license
    29  allowable  under  this  subdivision, on a form prescribed by the office,
    30  notification of the transfer of such license.
    31    2. No registration or license shall be pledged or deposited as collat-
    32  eral security for any loan or upon any other  condition;  and  any  such
    33  pledge or deposit, and any contract providing therefor, shall be void.
    34    3.  Licenses  issued  under this chapter shall contain, in addition to
    35  any further information or material to be prescribed by the rules of the
    36  office, the following information:
    37    (a) name of the person to whom the license is issued;
    38    (b) kind of license and what kind of traffic in  cannabis  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 permit.   1. The  executive  director  shall
    46  approve and permit one or more independent cannabis testing laboratories
    47  to test medical cannabis, adult-use cannabis and/or hemp cannabis.
    48    2. To be permitted as an independent cannabis laboratory, a laboratory
    49  must  apply  to  the office, on a form and in a manner prescribed by the
    50  office, and must demonstrate the following to the  satisfaction  of  the
    51  executive director:
    52    (a) the owners and directors of the laboratory are of good moral char-
    53  acter;
    54    (b)  the laboratory and its staff has the skills, resources and exper-
    55  tise needed to accurately and consistently perform all  of  the  testing
    56  required for adult-use cannabis, medical cannabis and/or hemp cannabis;

        S. 1527--A                         54
 
     1    (c)  the  laboratory has in place and will maintain adequate policies,
     2  procedures, and facility security to ensure proper:  collection,  label-
     3  ing, accessioning, preparation, analysis, result reporting, disposal and
     4  storage of adult-use cannabis, medical cannabis and/or hemp cannabis;
     5    (d) the laboratory is physically located in New York state;
     6    (e)  the  laboratory  has  been  approved  by the department of health
     7  pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
     8  lations, pertaining to laboratories performing  environmental  analysis;
     9  and
    10    (f)  the  laboratory meets any and all requirements prescribed by this
    11  chapter and by the executive director in regulation.
    12    3. The owner of a laboratory testing permit under this  section  shall
    13  not  hold  a registration or license in any category of this chapter and
    14  shall not have any direct or indirect ownership interest in such  regis-
    15  tered  organization  or  licensee.  No  board  member, officer, manager,
    16  owner, partner, principal stakeholder or member of a  registered  organ-
    17  ization or licensee under this chapter, or such person's immediate fami-
    18  ly  member,  shall  have  an interest or voting rights in any laboratory
    19  testing permittee.
    20    4. The executive director shall require that the permitted  laboratory
    21  report  testing results to the office in a manner, form and timeframe as
    22  determined by the executive director.
    23    5. The executive director is  authorized  to  promulgate  regulations,
    24  requiring permitted laboratories to perform certain tests and services.
    25    §  130. Special use permits.  The office is hereby authorized to issue
    26  the following kinds of permits for  carrying  on  activities  consistent
    27  with  the  policy  and purpose of this chapter with respect to cannabis.
    28  The executive director has the authority to set  fees  for  all  permits
    29  issued  pursuant  to this section, to establish the periods during which
    30  permits are authorized, and to make  rules  and  regulations,  including
    31  emergency regulations, to implement this section.
    32    1.  Industrial  cannabis permit - to purchase cannabis from one of the
    33  entities licensed by the office for use in the manufacture and  sale  of
    34  any  of  the following, when such cannabis is not otherwise suitable for
    35  consumption purposes, namely:  (a) apparel, energy,  paper,  and  tools;
    36  (b) scientific, chemical, mechanical and industrial products; or (c) any
    37  other  industrial  use  as determined by the executive director in regu-
    38  lation.
    39    2. Trucking permit - to allow for the trucking  or  transportation  of
    40  cannabis  products,  medical cannabis or hemp cannabis by a person other
    41  than a registered organization or licensee under this chapter.
    42    3. Warehouse permit - to allow for the storage of  cannabis,  cannabis
    43  products,  medical cannabis or hemp cannabis at a location not otherwise
    44  registered or licensed by the office.
    45    4. Cannabinoid permit - to sell cannabinoid products derived from hemp
    46  cannabis for off-premises consumption.
    47    5. Temporary retail cannabis permit - to authorize the retail sale  of
    48  adult-use cannabis to cannabis consumers, for a limited purpose or dura-
    49  tion.
    50    6. Caterer's permit - to authorize the service of cannabis products at
    51  a  function, occasion or event in a hotel, restaurant, club, ballroom or
    52  other premises, which shall authorize within  the  hours  fixed  by  the
    53  office,  during  which  cannabis  may  lawfully be sold or served on the
    54  premises in which such function, occasion or event is held.
    55    7. Packaging permit - to authorize a licensed cannabis distributor  to
    56  sort,  package,  label  and  bundle  cannabis  products from one or more

        S. 1527--A                         55
 
     1  registered organizations or licensed processors, on the premises of  the
     2  licensed  cannabis  distributor or at a warehouse for which a permit has
     3  been issued under this section.
     4    8.  Miscellaneous  permits  -  to  purchase, receive or sell cannabis,
     5  cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
     6  contracts  or other documents pertaining to cannabis, cannabis products,
     7  or medical cannabis, in cases not expressly provided for by  this  chap-
     8  ter,  when  in  the  judgment  of the office it would be appropriate and
     9  consistent with the policy and purpose of this chapter.
    10    § 131. Professional and medical  record  keeping.    Any  professional
    11  providing services in connection with a licensed or potentially licensed
    12  business under this chapter, or in connection with other conduct permit-
    13  ted  under  this chapter, and any medical professional providing medical
    14  care to a patient, other than a certified patient, may agree with  their
    15  client  or patient to maintain no record, or any reduced level of record
    16  keeping that professional and client or patient may agree.  In  case  of
    17  such agreement, the professional's only obligation shall be to keep such
    18  records  as  agreed, and to keep a record of the agreement. Such reduced
    19  record keeping is conduct permitted under this chapter.
    20    § 132. Local opt-out;  municipal  control  and  preemption.    1.  The
    21  provisions of article four of this chapter, authorizing the cultivation,
    22  processing,  distribution  and  sale  of  adult-use cannabis to cannabis
    23  consumers, shall not be applicable to a town,  city  or  village  which,
    24  after  a  mandatory  referendum held pursuant to section twenty-three of
    25  the municipal home rule law, adopts a local law to prohibit  the  estab-
    26  lishment  or  operation  of  one  or more types of licenses contained in
    27  article four of this chapter, within the jurisdiction of the town,  city
    28  or village. Provided, however, that any town law shall apply to the area
    29  of the town outside of any village within such town.
    30    2.  Except  as  provided  for  in subdivision one of this section, all
    31  county, town, city and village governing  bodies  are  hereby  preempted
    32  from  adopting any rule, ordinance, regulation or prohibition pertaining
    33  to the operation or licensure  of  registered  organizations,  adult-use
    34  cannabis  licenses  or  hemp  licenses. However, municipalities may pass
    35  local laws and ordinances  governing  the  time,  place  and  manner  of
    36  licensed adult-use cannabis retail dispensaries, provided such ordinance
    37  or  regulation  does  not  make  the  operation  of such licensed retail
    38  dispensaries unreasonably impracticable as determined by  the  executive
    39  director in his or her sole discretion.
    40    §  133.  Personal cultivation. 1. Notwithstanding any provision of law
    41  to the contrary, a person over the age of twenty-one shall  be  able  to
    42  plant,  cultivate,  harvest,  dry  or  process cannabis for personal use
    43  subject to the following restrictions:
    44    (a) all cultivation shall be done in accordance with local ordinances;
    45  and
    46    (b) the living plants and any  cannabis  produced  by  the  plants  in
    47  excess  of  three  ounces must be kept within the person's private resi-
    48  dence, or upon the grounds  of  that  private  residence  (e.g.,  in  an
    49  outdoor  garden  area),  in  a  locked  space, and not visible by normal
    50  unaided vision from a public place; and
    51    (c) not more than  six  living  plants  may  be  planted,  cultivated,
    52  harvested, dried or processed within a single private residence, or upon
    53  the grounds of that private residence, at one time.
    54    2.  A  town,  city  or  village  may  enact and enforce regulations to
    55  reasonably regulate the actions and conduct under this section.    Regu-

        S. 1527--A                         56
 
     1  lations  may  not  completely  prohibit persons engaging in conduct made
     2  lawful under subdivision one of this section.
     3    3.  A  violation  of subdivision one of this section is a misdemeanor,
     4  punishable under section 222.10 of the penal law and subject to a  local
     5  fine of not more than one hundred dollars.
     6    §   134.   Executive   director  to  be  necessary  party  to  certain
     7  proceedings.   The executive director shall  be  made  a  party  to  all
     8  actions  and proceedings affecting in any manner the ability of a regis-
     9  tered organization or licensee to operate within a municipality, or  the
    10  result of any vote thereupon; to all actions and proceedings relative to
    11  issuance  or  revocation  of  registrations, licenses or permits; to all
    12  injunction proceedings, and to all other civil  actions  or  proceedings
    13  which in any manner affect the enjoyment of the privileges or the opera-
    14  tion of the restrictions provided for in this chapter.
    15    §  135.  Penalties  for  violation of this chapter.  1. Any person who
    16  cultivates for sale or sells cannabis, cannabis products, medical canna-
    17  bis or hemp cannabis without having an appropriate registration, license
    18  or permit therefor, or whose registration, license, or permit  has  been
    19  revoked,  surrendered  or  cancelled,  shall be subject to conviction as
    20  provided by article two hundred twenty-two of the penal law.
    21    2. Any registered organization  or  licensee,  whose  registration  or
    22  license  has  been suspended pursuant to the provisions of this chapter,
    23  who sells cannabis, cannabis products, medical cannabis or hemp cannabis
    24  during the suspension period, shall be subject to conviction as provided
    25  by article two hundred twenty-two of the penal law, and upon  conviction
    26  thereof  shall  be  punished  by  a  fine of not more than five thousand
    27  dollars per instance.
    28    3. Any person who shall make any false statement  in  the  application
    29  for  a  registration,  license  or  a permit under this chapter shall be
    30  guilty of a misdemeanor, and upon conviction thereof shall be punishable
    31  by a fine of not more than five thousand dollars, or by imprisonment  in
    32  a  county jail or penitentiary for a term of not more than six months or
    33  both.
    34    4. Any violation by any person of any provision of  this  chapter  for
    35  which  no  punishment or penalty is otherwise provided shall be a misde-
    36  meanor.
    37    § 136. Revocation of registrations, licenses and  permits  for  cause;
    38  procedure  for revocation or cancellation.  1. Any registration, license
    39  or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
    40  suspended  and/or  subjected  to  the  imposition of a civil penalty for
    41  cause, and must be revoked for the following causes:
    42    (a) conviction of the registered organization, licensee, permittee  or
    43  his  or  her  agent  or employee for selling any illegal cannabis on the
    44  premises registered, licensed or permitted; or
    45    (b) for  transferring,  assigning  or  hypothecating  a  registration,
    46  license or permit without prior written approval of the office.
    47    2.  Notwithstanding  the issuance of a registration, license or permit
    48  by way of renewal, the office may revoke, cancel or suspend such  regis-
    49  tration, license or permit and/or may impose a civil penalty against any
    50  holder  of  such  registration, license or permit, as prescribed by this
    51  section, for causes or violations occurring during  the  license  period
    52  immediately  preceding  the  issuance  of  such registration, license or
    53  permit.
    54    3. (a) As used in this  section,  the  term  "for  cause"  shall  also
    55  include  the  existence of a sustained and continuing pattern of miscon-
    56  duct, failure to adequately prevent diversion or disorder  on  or  about

        S. 1527--A                         57
 
     1  the  registered, licensed or permitted premises, or in the area in front
     2  of or adjacent to the registered or licensed premises, or in any parking
     3  lot provided by the registered  organization  or  licensee  for  use  by
     4  registered organization or licensee's patrons, which, in the judgment of
     5  the office, adversely affects or tends to affect the protection, health,
     6  welfare,  safety,  or repose of the inhabitants of the area in which the
     7  registered or licensed premises is located, or results in  the  licensed
     8  premises becoming a focal point for police attention, or is offensive to
     9  public decency.
    10    (b)  (i)  As  used  in  this  section, the term "for cause" shall also
    11  include deliberately misleading the authority:
    12    (A) as to the nature and character of the business to be  operated  by
    13  the registered organization, licensee or permittee; or
    14    (B) by substantially altering the nature or character of such business
    15  during  the registration or licensing period without seeking appropriate
    16  approvals from the office.
    17    (ii) As used in this subdivision, the term "substantially altering the
    18  nature or character" of such business shall mean any significant  alter-
    19  ation  in  the  scope  of  business activities conducted by a registered
    20  organization, licensee or permittee  that  would  require  obtaining  an
    21  alternate form of registration, license or permit.
    22    4.  As used in this chapter, the existence of a sustained and continu-
    23  ing pattern of misconduct, failure to adequately  prevent  diversion  or
    24  disorder  on  or about the premises may be presumed upon the sixth inci-
    25  dent reported to the office by a law enforcement agency,  or  discovered
    26  by  the  office  during  the course of any investigation, of misconduct,
    27  diversion or disorder on or about the premises or related to the  opera-
    28  tion  of  the  premises,  absent clear and convincing evidence of either
    29  fraudulent intent on the part of any complainant or a factual error with
    30  respect to the content of any report concerning  such  complaint  relied
    31  upon by the office.
    32    5.  Notwithstanding any other provision of this chapter to the contra-
    33  ry, a suspension imposed under this section  against  the  holder  of  a
    34  registration  issued  pursuant  to  article three of this chapter, shall
    35  only suspend the licensed activities related to the  type  of  cannabis,
    36  medical cannabis or adult-use cannabis involved in the violation result-
    37  ing in the suspension.
    38    6.  Any  registration, license or permit issued by the office pursuant
    39  to this chapter  may  be  revoked,  cancelled  or  suspended  and/or  be
    40  subjected  to  the  imposition  of  a  monetary  penalty  in  the manner
    41  prescribed by this section and by the executive director in regulation.
    42    7. The office may on its  own  initiative,  or  on  complaint  of  any
    43  person, institute proceedings to revoke, cancel or suspend any adult-use
    44  cannabis   retail  dispensary  license  or  adult-use  cannabis  on-site
    45  consumption license and may impose a civil penalty against the  licensee
    46  after  a  hearing at which the licensee shall be given an opportunity to
    47  be heard. Such hearing shall be held in such manner and upon such notice
    48  as may be prescribed in regulation by the executive director.
    49    8. All other registrations, licenses  or  permits  issued  under  this
    50  chapter  may be revoked, cancelled, suspended and/or made subject to the
    51  imposition of a civil penalty by the office after a hearing to  be  held
    52  in  such  manner and upon such notice as may be prescribed in regulation
    53  by the executive director.
    54    9. Where a licensee or permittee is convicted of two or more  qualify-
    55  ing  offenses  within  a  five-year  period, the office, upon receipt of
    56  notification of such second or subsequent conviction, shall, in addition

        S. 1527--A                         58

     1  to any other sanction or civil or criminal penalty imposed  pursuant  to
     2  this  chapter, impose on such licensee a civil penalty not to exceed ten
     3  thousand dollars.   For  purposes  of  this  subdivision,  a  qualifying
     4  offense  shall  mean the unlawful sale of cannabis to a person under the
     5  age of twenty-one. For purposes of this subdivision, a conviction  of  a
     6  licensee  or  an  employee  or agent of such licensee shall constitute a
     7  conviction of such licensee.
     8    § 137. Lawful actions pursuant to this chapter.  1. Contracts  related
     9  to the operation of registered organizations, licenses and permits under
    10  this  chapter  shall  be lawful and shall not be deemed unenforceable on
    11  the basis that the  actions  permitted  pursuant  to  the  registration,
    12  license or permit are prohibited by federal law.
    13    2. The following actions are not unlawful as provided under this chap-
    14  ter, shall not be an offense under any state or local law, and shall not
    15  result  in  any  civil fine, seizure, or forfeiture of assets, or be the
    16  basis for detention or search against any person  acting  in  accordance
    17  with this chapter:
    18    (a)  Actions  of a registered organization, licensee, or permittee, or
    19  the employees or agents of such  registered  organization,  licensee  or
    20  permittee,  as  permitted  by this chapter and consistent with rules and
    21  regulations of the office, pursuant to a valid registration, license  or
    22  permit issued by the office.
    23    (b)  Actions  of  those  who allow property to be used by a registered
    24  organization, licensee, or permittee, or the employees or agents of such
    25  registered organization, licensee or permittee,  as  permitted  by  this
    26  chapter  and consistent with rules and regulations of the office, pursu-
    27  ant to a valid registration, license or permit issued by the office.
    28    (c) Actions of any person or entity, their employees, or their  agents
    29  providing a service to a registered organization, licensee, permittee or
    30  a  potential registered organization, licensee, or permittee, as permit-
    31  ted by this chapter and consistent with rules  and  regulations  of  the
    32  office, relating to the formation of a business.
    33    (d)  The  purchase,  possession,  or  consumption of cannabis, medical
    34  cannabis and hemp cannabis, as permitted by this chapter and  consistent
    35  with rules and regulations of the office, obtained from a validly regis-
    36  tered, licensed or permitted retailer.
    37    §  138. Review by courts.  1. The following actions by the office, and
    38  only the following actions by the office, shall be subject to review  by
    39  the supreme court in the manner provided in article seventy-eight of the
    40  civil practice law and rules:
    41    (a)  Refusal  by  the  office  to  issue a registration, license, or a
    42  permit.
    43    (b) The revocation, cancellation  or  suspension  of  a  registration,
    44  license, or permit by the office.
    45    (c) The failure or refusal by the office to render a decision upon any
    46  application  or  hearing submitted to or held by the office within sixty
    47  days after such submission or hearing.
    48    (d) The transfer by the office of a registration, license,  or  permit
    49  to any other entity or premises, or the failure or refusal by the office
    50  to approve such a transfer.
    51    (e) Refusal to approve alteration of premises.
    52    (f)  Refusal to approve a corporate change in stockholders, stockhold-
    53  ings, officers or directors.
    54    2. No stay shall be granted pending the determination of  such  matter
    55  except on notice to the office and only for a period of less than thirty
    56  days. In no instance shall a stay be granted where the office has issued

        S. 1527--A                         59
 
     1  a  summary  suspension  of  a  registration,  license, or permit for the
     2  protection of the public health, safety, and welfare.
     3    § 139. Illicit cannabis.  1. "Illicit cannabis" means and includes any
     4  cannabis  product,  medical cannabis or hemp cannabis owned, cultivated,
     5  distributed, bought, sold, packaged, rectified, blended, treated, forti-
     6  fied, mixed, processed, warehoused,  possessed  or  transported,  or  on
     7  which  any tax required to have been paid under any applicable state law
     8  has not been paid.
     9    2. Any person who shall knowingly possess or have  under  his  or  her
    10  control any cannabis known by the person to be illicit cannabis is guil-
    11  ty of a misdemeanor.
    12    3.  Any  person  who shall knowingly barter or exchange with, or sell,
    13  give or offer to sell or to give  another  any  cannabis  known  by  the
    14  person to be illicit cannabis is guilty of a misdemeanor.
    15    4.  Any  person  who shall possess or have under his or her control or
    16  transport any cannabis known by the person to be illicit  cannabis  with
    17  intent  to  barter  or  exchange with, or to sell or give to another the
    18  same or any part thereof is guilty of  a  misdemeanor.  Such  intent  is
    19  presumptively  established  by proof that the person knowingly possessed
    20  or had under his or her control one or more ounces of illicit  cannabis.
    21  This presumption may be rebutted.
    22    5.  Any  person who, being the owner, lessee, or occupant of any room,
    23  shed, tenement, booth or building, float or  vessel,  or  part  thereof,
    24  knowingly  permits  the same to be used for the cultivation, processing,
    25  distribution, purchase, sale, warehousing, transportation, or storage of
    26  any illicit cannabis, is guilty of a misdemeanor.
    27    § 140. Injunction for unlawful manufacture,  sale  or  consumption  of
    28  cannabis.    1. If any person shall engage or participate or be about to
    29  engage or participate  in  the  cultivation,  production,  distribution,
    30  traffic, or sale of cannabis products, medical cannabis or hemp cannabis
    31  in  this  state without obtaining the appropriate registration, license,
    32  or permit therefor, or  shall  traffic  in  cannabis  products,  medical
    33  cannabis  or hemp cannabis contrary to any provision of this chapter, or
    34  otherwise unlawfully, or shall traffic  in  illicit  cannabis  products,
    35  medical  cannabis  or hemp cannabis, or, operating a place for profit or
    36  pecuniary gain, with a capacity for the assemblage  of  twenty  or  more
    37  persons,  shall  permit  a  person  or  persons to come to such place of
    38  assembly for the purpose of consuming cannabis products  without  having
    39  the  appropriate  license  or  permit therefor, the office may present a
    40  verified petition or complaint to a justice of the supreme  court  at  a
    41  special term of the supreme court of the judicial district in which such
    42  city,  village  or  town is situated, for an order enjoining such person
    43  engaging or participating in such activity  or  from  carrying  on  such
    44  business.  Such  petition  or complaint shall state the facts upon which
    45  such application is based. Upon the  presentation  of  the  petition  or
    46  complaint, the justice or court may grant an order temporarily restrain-
    47  ing  any person from continuing to engage in conduct as specified in the
    48  petition or complaint, and shall grant an order requiring such person to
    49  appear before such justice or court at or before a special term  of  the
    50  supreme  court  in  such judicial district on the day specified therein,
    51  not more than ten days after the granting thereof,  to  show  cause  why
    52  such  person should not be permanently enjoined from engaging or partic-
    53  ipating in such activity or from carrying on such business, or why  such
    54  person should not be enjoined from carrying on such business contrary to
    55  the provisions of this chapter. A copy of such petition or complaint and
    56  order  shall  be  served upon the person, in the manner directed by such

        S. 1527--A                         60
 
     1  order, not less than three days before the return day  thereof.  On  the
     2  day  specified  in such order, the justice or court before whom the same
     3  is returnable shall hear the proofs of the parties and  may,  if  deemed
     4  necessary  or  proper,  take testimony in relation to the allegations of
     5  the petition or complaint. If the justice or  court  is  satisfied  that
     6  such person is about to engage or participate in the unlawful traffic in
     7  cannabis,  medical  cannabis  or  hemp cannabis or has unlawfully culti-
     8  vated, processed, or sold cannabis products, medical  cannabis  or  hemp
     9  cannabis  without  having obtained a registration or license or contrary
    10  to the provisions of this chapter, or has trafficked in  illicit  canna-
    11  bis,  or,  is  operating or is about to operate such place for profit or
    12  pecuniary gain, with such capacity, and has permitted  or  is  about  to
    13  permit  a  person  or  persons to come to such place of assembly for the
    14  purpose of consuming cannabis products without having  such  appropriate
    15  license, an order shall be granted enjoining such person from thereafter
    16  engaging  or  participating in or carrying on such activity or business.
    17  If, after the entry of such an order in the county clerk's office of the
    18  county in which the principal place of business of  the  corporation  or
    19  partnership  is  located, or in which the individual so enjoined resides
    20  or conducts such business, and the service of a copy thereof  upon  such
    21  person,  or  such  substituted  service  as  the  court may direct, such
    22  person, partnership or corporation shall, in violation  of  such  order,
    23  cultivate, process, distribute or sell cannabis products, medical canna-
    24  bis  or hemp cannabis, or illicit cannabis products, medical cannabis or
    25  hemp cannabis, or permit a person or persons to come to  such  place  of
    26  assembly  for  the purpose of consuming cannabis products, such activity
    27  shall be deemed a contempt of court and  be  punishable  in  the  manner
    28  provided  by the judiciary law, and, in addition to any such punishment,
    29  the justice or court before whom or which the petition or  complaint  is
    30  heard,  may,  in his or its discretion, order the seizure and forfeiture
    31  of any cannabis products and any fixtures, equipment and  supplies  used
    32  in the operation or promotion of such illegal activity and such property
    33  shall  be subject to forfeiture pursuant to law. Costs upon the applica-
    34  tion for such injunction may be awarded in  favor  of  and  against  the
    35  parties  thereto  in  such  sums  as in the discretion of the justice or
    36  court before whom or which the petition or complaint is heard  may  seem
    37  proper.
    38    2. The owner, lessor and lessee of a building, erection or place where
    39  cannabis  products,  medical  cannabis  or  hemp  cannabis is unlawfully
    40  cultivated, processed, distributed, sold, consumed or  permitted  to  be
    41  unlawfully  cultivated,  processed, distributed, sold or consumed may be
    42  made a respondent or defendant in the proceeding or action.
    43    § 141. Persons forbidden to traffic cannabis; certain officials not to
    44  be interested in manufacture  or  sale  of  cannabis  products.  1.  The
    45  following are forbidden to traffic in cannabis:
    46    (a)  An individual who has been convicted of an offense related to the
    47  functions or duties of owning and  operating  a  business  within  three
    48  years of the application date, except that if the office determines that
    49  the  owner or licensee is otherwise suitable to be issued a license, and
    50  granting the license would not  compromise  public  safety,  the  office
    51  shall  conduct a thorough review of the nature of the crime, conviction,
    52  circumstances and evidence of rehabilitation of  the  owner,  and  shall
    53  evaluate the suitability of the owner or licensee to be issued a license
    54  based  on  the  evidence  found through the review. In determining which
    55  offenses are substantially related to the functions or duties of  owning

        S. 1527--A                         61
 
     1  and  operating  a business, the office shall include, but not be limited
     2  to, the following:
     3    (i) a felony conviction involving fraud, money laundering, forgery and
     4  other unlawful conduct related to owning and operating a business; and
     5    (ii)  a  felony  conviction for hiring, employing, or using a minor in
     6  transporting, carrying, selling, giving away,  preparing  for  sale,  or
     7  peddling,  any  controlled substance to a minor; or selling, offering to
     8  sell, furnishing, offering to  furnish,  administering,  or  giving  any
     9  controlled substance to a minor.
    10    (b) A person under the age of twenty-one years;
    11    (c)  A  person  who  is not a citizen of the United States or an alien
    12  lawfully admitted for permanent residence in the United States;
    13    (d) A partnership or a corporation, unless each member of the partner-
    14  ship, or each of the principal officers  and  directors  of  the  corpo-
    15  ration,  is a citizen of the United States or an alien lawfully admitted
    16  for permanent residence in the United States, not less  than  twenty-one
    17  years  of  age;  provided  however  that  a  corporation which otherwise
    18  conforms to the requirements of this section and chapter may be licensed
    19  if each of its principal officers and more than one-half of  its  direc-
    20  tors  are  citizens of the United States or aliens lawfully admitted for
    21  permanent residence in the United States; and provided  further  that  a
    22  corporation  organized  under  the not-for-profit corporation law or the
    23  education law which otherwise  conforms  to  the  requirements  of  this
    24  section  and  chapter  may be licensed if each of its principal officers
    25  and directors are not less than twenty-one years of age;  and  provided,
    26  further,  that  a  corporation organized under the not-for-profit corpo-
    27  ration law or the education law and located on the premises of a college
    28  as defined by section two of the education law which otherwise  conforms
    29  to  the requirements of this section and chapter may be licensed if each
    30  of its principal officers and each of its directors are  not  less  than
    31  twenty-one years of age;
    32    (e)  A  person  who  shall have had any registration or license issued
    33  under this chapter revoked for cause, until the expiration of two  years
    34  from the date of such revocation;
    35    (f)  A  person not registered or licensed under the provisions of this
    36  chapter, who has been convicted of a violation of  this  chapter,  until
    37  the expiration of two years from the date of such conviction; or
    38    (g)  A  corporation or partnership, if any officer and director or any
    39  partner, while not licensed under the provisions of  this  chapter,  has
    40  been convicted of a violation of this chapter, or has had a registration
    41  or  license issued under this chapter revoked for cause, until the expi-
    42  ration of two years from the date of such conviction or revocation.
    43    2. Except as may otherwise be provided for in regulation, it shall  be
    44  unlawful   for  any  police  commissioner,  police  inspector,  captain,
    45  sergeant, roundsman, patrolman or other police official  or  subordinate
    46  of  any  police  department in the state, to be either directly or indi-
    47  rectly interested in the cultivation, processing, distribution, or  sale
    48  of  cannabis  products  or to offer for sale, or recommend to any regis-
    49  tered organization or licensee any cannabis products. A person  may  not
    50  be  denied  any  registration or license granted under the provisions of
    51  this chapter solely on the grounds of being the spouse of a public serv-
    52  ant described in this section. The solicitation or  recommendation  made
    53  to  any  registered  organization  or licensee, to purchase any cannabis
    54  products by any police official or subordinate as hereinabove described,
    55  shall be presumptive evidence of the interest of such official or subor-

        S. 1527--A                         62
 
     1  dinate in the cultivation, processing, distribution, or sale of cannabis
     2  products.
     3    3. No elective village officer shall be subject to the limitations set
     4  forth  in  subdivision  two of this section unless such elective village
     5  officer shall be assigned duties directly relating to the  operation  or
     6  management of the police department.
     7    §  142. Access to criminal history information through the division of
     8  criminal justice services.   In connection with  the  administration  of
     9  this  chapter,  the executive director is authorized to request, receive
    10  and review criminal history information through the division of criminal
    11  justice services with respect to  any  person  seeking  a  registration,
    12  license,  permit  or  authorization to cultivate, process, distribute or
    13  sell medical cannabis, adult use cannabis or hemp cannabis. At the exec-
    14  utive director's request, each person, member, principal and/or  officer
    15  of  the  applicant shall submit to the office his or her fingerprints in
    16  such form and in such manner as  specified  by  the  division,  for  the
    17  purpose  of  conducting a criminal history search and returning a report
    18  thereon in accordance with the procedures and  requirements  established
    19  by the division pursuant to the provisions of article thirty-five of the
    20  executive  law,  which shall include the payment of the prescribed proc-
    21  essing fees for the cost of the division's full search and retain proce-
    22  dures and a national criminal history record check. The executive direc-
    23  tor, or his or her designee, shall  submit  such  fingerprints  and  the
    24  processing fee to the division. The division shall forward to the execu-
    25  tive director a report with respect to the applicant's previous criminal
    26  history, if any, or a statement that the applicant has no previous crim-
    27  inal history according to its files. Fingerprints submitted to the divi-
    28  sion  pursuant  to this subdivision may also be submitted to the federal
    29  bureau of investigation for a national criminal history record check. If
    30  additional copies of fingerprints  are  required,  the  applicant  shall
    31  furnish them upon request.
    32    § 3. Section 3302 of the public health law, as added by chapter 878 of
    33  the  laws  of  1972,  subdivisions  1,  14, 16, 17 and 27 as amended and
    34  subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23,  24,
    35  25,  26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998,
    36  subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39
    37  and 40 as added by chapter 178 of the laws of  2010,  paragraph  (a)  of
    38  subdivision  20, the opening paragraph of subdivision 22 and subdivision
    39  29 as amended by chapter 163 of the laws  of  1973,  subdivision  31  as
    40  amended by section 4 of part A of chapter 58 of the laws of 2004, subdi-
    41  vision  41 as added by section 6 of part A of chapter 447 of the laws of
    42  2012, and subdivisions 42 and 43 as added by section 13  of  part  D  of
    43  chapter 60 of the laws of 2014, is amended to read as follows:
    44    §  3302.  Definitions  of terms of general use in this article. Except
    45  where  different  meanings  are  expressly   specified   in   subsequent
    46  provisions of this article, the following terms have the following mean-
    47  ings:
    48    1.  "Addict" means a person who habitually uses a controlled substance
    49  for a non-legitimate or unlawful use, and who by reason of such  use  is
    50  dependent thereon.
    51    2.   "Administer"   means  the  direct  application  of  a  controlled
    52  substance, whether by injection, inhalation,  ingestion,  or  any  other
    53  means, to the body of a patient or research subject.
    54    3.  "Agent" means an authorized person who acts on behalf of or at the
    55  direction of a manufacturer, distributor, or dispenser. No person may be
    56  authorized to so act if under title  VIII  of  the  education  law  such

        S. 1527--A                         63
 
     1  person  would  not  be  permitted to engage in such conduct. It does not
     2  include a common or contract carrier, public warehouseman,  or  employee
     3  of  the  carrier  or  warehouseman  when  acting in the usual and lawful
     4  course of the carrier's or warehouseman's business.
     5    4. ["Concentrated Cannabis" means
     6    (a)  the  separated  resin, whether crude or purified, obtained from a
     7  plant of the genus Cannabis; or
     8    (b) a material, preparation,  mixture,  compound  or  other  substance
     9  which  contains  more than two and one-half percent by weight of delta-9
    10  tetrahydrocannabinol, or  its  isomer,  delta-8  dibenzopyran  numbering
    11  system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono-
    12  terpene numbering system.
    13    5.]  "Controlled  substance" means a substance or substances listed in
    14  section thirty-three hundred six of this [chapter] title.
    15    [6.] 5. "Commissioner" means commissioner of health of  the  state  of
    16  New York.
    17    [7.]  6.  "Deliver"  or  "delivery"  means the actual, constructive or
    18  attempted transfer from one person to another of a controlled substance,
    19  whether or not there is an agency relationship.
    20    [8.] 7. "Department" means the department of health of  the  state  of
    21  New York.
    22    [9.] 8. "Dispense" means to deliver a controlled substance to an ulti-
    23  mate user or research subject by lawful means, including by means of the
    24  internet, and includes the packaging, labeling, or compounding necessary
    25  to prepare the substance for such delivery.
    26    [10.] 9. "Distribute" means to deliver a controlled substance, includ-
    27  ing by means of the internet, other than by administering or dispensing.
    28    [11.]  10.  "Distributor"  means a person who distributes a controlled
    29  substance.
    30    [12.] 11. "Diversion" means manufacture, possession, delivery  or  use
    31  of  a  controlled  substance by a person or in a manner not specifically
    32  authorized by law.
    33    [13.] 12. "Drug" means
    34    (a) substances recognized as drugs in the official United States Phar-
    35  macopoeia, official Homeopathic Pharmacopoeia of the United  States,  or
    36  official National Formulary, or any supplement to any of them;
    37    (b)  substances  intended  for use in the diagnosis, cure, mitigation,
    38  treatment, or prevention of disease in man or animals; and
    39    (c) substances (other than food) intended to affect the structure or a
    40  function of the body of man or animal. It does not  include  devices  or
    41  their components, parts, or accessories.
    42    [14.]  13. "Federal agency" means the Drug Enforcement Administration,
    43  United States Department of Justice, or its successor agency.
    44    [15.] 14. "Federal controlled substances act" means the  Comprehensive
    45  Drug  Abuse  Prevention  and Control Act of 1970, Public Law 91-513, and
    46  any act or  acts  amendatory  or  supplemental  thereto  or  regulations
    47  promulgated thereunder.
    48    [16.]  15. "Federal registration number" means such number assigned by
    49  the Federal agency to any person authorized to manufacture,  distribute,
    50  sell, dispense or administer controlled substances.
    51    [17.]  16.  "Habitual  user"  means any person who is, or by reason of
    52  repeated use of any controlled substance for non-legitimate or  unlawful
    53  use is in danger of becoming, dependent upon such substance.
    54    [18.]  17.  "Institutional  dispenser"  means  a  hospital, veterinary
    55  hospital, clinic,  dispensary,  maternity  home,  nursing  home,  mental
    56  hospital or similar facility approved and certified by the department as

        S. 1527--A                         64
 
     1  authorized  to  obtain  controlled  substances  by  distribution  and to
     2  dispense and administer such substances pursuant to the order of a prac-
     3  titioner.
     4    [19.]  18.  "License"  means  a  written  authorization  issued by the
     5  department or the New York  state  department  of  education  permitting
     6  persons  to  engage  in  a specified activity with respect to controlled
     7  substances.
     8    [20.] 19. "Manufacture"  means  the  production,  preparation,  propa-
     9  gation,   compounding,   cultivation,  conversion  or  processing  of  a
    10  controlled substance, either directly or  indirectly  or  by  extraction
    11  from substances of natural origin, or independently by means of chemical
    12  synthesis, or by a combination of extraction and chemical synthesis, and
    13  includes  any  packaging  or repackaging of the substance or labeling or
    14  relabeling of its container, except that this term does not include  the
    15  preparation,   compounding,   packaging  or  labeling  of  a  controlled
    16  substance:
    17    (a) by a practitioner as an incident to his administering or  dispens-
    18  ing  of  a  controlled substance in the course of his professional prac-
    19  tice; or
    20    (b) by a practitioner, or by his authorized  agent  under  his  super-
    21  vision, for the purpose of, or as an incident to, research, teaching, or
    22  chemical analysis and not for sale; or
    23    (c)  by  a pharmacist as an incident to his dispensing of a controlled
    24  substance in the course of his professional practice.
    25    [21. "Marihuana" means all parts of the plant of the  genus  Cannabis,
    26  whether  growing or not; the seeds thereof; the resin extracted from any
    27  part of the plant; and every compound,  manufacture,  salt,  derivative,
    28  mixture,  or  preparation  of the plant, its seeds or resin. It does not
    29  include the mature stalks of the plant, fiber produced from the  stalks,
    30  oil  or cake made from the seeds of the plant, any other compound, manu-
    31  facture, salt, derivative, mixture, or preparation of the mature  stalks
    32  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    33  sterilized seed of the plant which is incapable of germination.
    34    22.] 20. "Narcotic drug" means any of the following, whether  produced
    35  directly  or  indirectly  by  extraction  from  substances  of vegetable
    36  origin, or independently by means of chemical synthesis, or by a  combi-
    37  nation of extraction and chemical synthesis:
    38    (a)  opium and opiate, and any salt, compound, derivative, or prepara-
    39  tion of opium or opiate;
    40    (b) any salt, compound, isomer,  derivative,  or  preparation  thereof
    41  which  is  chemically equivalent or identical with any of the substances
    42  referred to in [subdivision] paragraph (a) of this subdivision, but  not
    43  including the isoquinoline alkaloids of opium;
    44    (c) opium poppy and poppy straw.
    45    [23.]  21. "Opiate" means any substance having an addiction-forming or
    46  addiction-sustaining liability similar to morphine or being  capable  of
    47  conversion  into a drug having addiction-forming or addiction-sustaining
    48  liability. It  does  not  include,  unless  specifically  designated  as
    49  controlled  under section [3306] thirty-three hundred six of this [arti-
    50  cle] title, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and
    51  its salts (dextromethorphan). It does include its racemic and  levorota-
    52  tory forms.
    53    [24.]  22.  "Opium  poppy"  means  the  plant  of  the species Papaver
    54  somniferum L., except its seeds.

        S. 1527--A                         65
 
     1    [25.] 23. "Person" means individual, institution, corporation, govern-
     2  ment or governmental subdivision  or  agency,  business  trust,  estate,
     3  trust, partnership or association, or any other legal entity.
     4    [26.]  24. "Pharmacist" means any person licensed by the state depart-
     5  ment of education to practice pharmacy.
     6    [27.] 25. "Pharmacy" means any place registered as  such  by  the  New
     7  York  state  board  of  pharmacy  and registered with the Federal agency
     8  pursuant to the federal controlled substances act.
     9    [28.] 26. "Poppy straw" means all parts,  except  the  seeds,  of  the
    10  opium poppy, after mowing.
    11    [29.] 27. "Practitioner" means:
    12    A  physician,  dentist,  podiatrist, veterinarian, scientific investi-
    13  gator, or other person licensed, or  otherwise  permitted  to  dispense,
    14  administer or conduct research with respect to a controlled substance in
    15  the  course  of  a  licensed  professional practice or research licensed
    16  pursuant to this article. Such person shall be deemed  a  "practitioner"
    17  only  as  to such substances, or conduct relating to such substances, as
    18  is permitted by his license, permit or otherwise permitted by law.
    19    [30.]  28.  "Prescribe"  means  a  direction  or   authorization,   by
    20  prescription,  permitting an ultimate user lawfully to obtain controlled
    21  substances  from  any  person  authorized  by  law  to   dispense   such
    22  substances.
    23    [31.]  29.  "Prescription"  shall  mean  an  official  New  York state
    24  prescription, an electronic prescription, an oral prescription[,] or  an
    25  out-of-state prescription[, or any one].
    26    [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth-
    27  er, or offer or agree to do the same.
    28    [33.]  31.  "Ultimate  user"  means  a person who lawfully obtains and
    29  possesses a controlled substance for his own use or the use by a  member
    30  of  his  household  or  for an animal owned by him or in his custody. It
    31  shall also mean and include a person designated, by a practitioner on  a
    32  prescription, to obtain such substance on behalf of the patient for whom
    33  such substance is intended.
    34    [34.]  32.  "Internet"  means  collectively  computer and telecommuni-
    35  cations facilities which comprise the worldwide network of networks that
    36  employ a set of industry standards and protocols, or any predecessor  or
    37  successor  protocol  to  such  protocol,  to exchange information of all
    38  kinds.  "Internet,"  as  used  in  this  article,  also  includes  other
    39  networks,  whether  private  or  public, used to transmit information by
    40  electronic means.
    41    [35.] 33. "By  means  of  the  internet"  means  any  sale,  delivery,
    42  distribution,  or  dispensing  of  a  controlled substance that uses the
    43  internet, is initiated by use of the internet or causes the internet  to
    44  be used.
    45    [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person
    46  in  the  United  States  that sells, delivers or dispenses, or offers to
    47  sell, deliver, or dispense, a  controlled  substance  by  means  of  the
    48  internet.
    49    [37.]  35.  "Electronic prescription" means a prescription issued with
    50  an electronic signature and transmitted by electronic means  in  accord-
    51  ance with regulations of the commissioner and the commissioner of educa-
    52  tion  and consistent with federal requirements. A prescription generated
    53  on an electronic system that is printed out or transmitted via facsimile
    54  is not considered  an  electronic  prescription  and  must  be  manually
    55  signed.

        S. 1527--A                         66
 
     1    [38.] 36. "Electronic" means of or relating to technology having elec-
     2  trical, digital, magnetic, wireless, optical, electromagnetic or similar
     3  capabilities. "Electronic" shall not include facsimile.
     4    [39.]  37.  "Electronic  record"  means  a  paperless  record  that is
     5  created, generated, transmitted, communicated,  received  or  stored  by
     6  means  of electronic equipment and includes the preservation, retrieval,
     7  use and disposition in accordance with regulations of  the  commissioner
     8  and the commissioner of education and in compliance with federal law and
     9  regulations.
    10    [40.] 38. "Electronic signature" means an electronic sound, symbol, or
    11  process,  attached  to or logically associated with an electronic record
    12  and executed or adopted by a person with the intent to sign the  record,
    13  in  accordance with regulations of the commissioner and the commissioner
    14  of education.
    15    [41.] 39. "Registry" or  "prescription  monitoring  program  registry"
    16  means  the prescription monitoring program registry established pursuant
    17  to section thirty-three hundred forty-three-a of this article.
    18    [42.] 40. "Compounding" means the combining, admixing, mixing,  dilut-
    19  ing,  pooling,  reconstituting,  or otherwise altering of a drug or bulk
    20  drug substance to create a drug with respect to an outsourcing  facility
    21  under  section  503B  of  the  federal  Food,  Drug and Cosmetic Act and
    22  further defined in this section.
    23    [43.] 41. "Outsourcing facility" means a facility that:
    24    (a) is engaged in the compounding  of  sterile  drugs  as  defined  in
    25  section sixty-eight hundred two of the education law;
    26    (b)  is  currently  registered  as an outsourcing facility pursuant to
    27  article one hundred thirty-seven of the education law; and
    28    (c) complies with all applicable requirements  of  federal  and  state
    29  law, including the Federal Food, Drug and Cosmetic Act.
    30    Notwithstanding  any  other  provision of law to the contrary, when an
    31  outsourcing facility distributes or dispenses any  drug  to  any  person
    32  pursuant to a prescription, such outsourcing facility shall be deemed to
    33  be  providing  pharmacy services and shall be subject to all laws, rules
    34  and regulations governing pharmacies and pharmacy services.
    35    § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22,  23,  24,  25,
    36  26,  27,  28,  29,  30,  31  and  32 of subdivision (d) of schedule I of
    37  section 3306 of the public health law, paragraphs 13, 14,  15,  16,  17,
    38  18,  19,  20,  21,  22, 23 and 24 as added by chapter 664 of the laws of
    39  1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by  chapter  589  of
    40  the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the
    41  laws of 2006, are amended to read as follows:
    42    (13) [Marihuana.
    43    (14)] Mescaline.
    44    [(15)] (14)  Parahexyl.  Some trade or other names: 3-Hexyl-1-hydroxy-
    45  7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran.
    46    [(16)] (15) Peyote. Meaning all parts of the plant  presently  classi-
    47  fied  botanically  as  Lophophora williamsii Lemaire, whether growing or
    48  not, the seeds thereof, any extract from any part  of  such  plant,  and
    49  every  compound, manufacture, salts, derivative, mixture, or preparation
    50  of such plant, its seeds or extracts.
    51    [(17)] (16) N-ethyl-3-piperidyl benzilate.
    52    [(18)] (17) N-methyl-3-piperidyl benzilate.
    53    [(19)] (18) Psilocybin.
    54    [(20)] (19) Psilocyn.
    55    [(21)] (20) Tetrahydrocannabinols. Synthetic tetrahydrocannabinols not
    56  derived from the cannabis plant that are equivalents of  the  substances

        S. 1527--A                         67
 
     1  contained  in the plant, or in the resinous extractives of cannabis, sp.
     2  and/or synthetic substances, derivatives, and their isomers with similar
     3  chemical structure and pharmacological activity such as the following:
     4    [/\]  delta  1  cis  or  trans tetrahydrocannabinol, and their optical
     5  isomers
     6    [/\] delta 6 cis or  trans  tetrahydrocannabinol,  and  their  optical
     7  isomers
     8    [/\]  delta  3,  4  cis or trans tetrahydrocannabinol, and its optical
     9  isomers (since nomenclature of these substances is  not  internationally
    10  standardized,  compounds  of  these  structures, regardless of numerical
    11  designation of atomic positions covered).
    12    [(22)] (21) Ethylamine analog of phencyclidine. Some  trade  or  other
    13  names:    N-ethyl-1-phenylcyclohexylamine,  (1-phenylcyclohexyl) ethyla-
    14  mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE.
    15    [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade  or  other
    16  names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP.
    17    [(24)]  (23)  Thiophene  analog  of phencyclidine. Some trade or other
    18  names:    1-{1-(2-thienyl)-cyclohexyl}-piperidine,  2-thienylanalog   of
    19  phencyclidine, TPCP, TCP.
    20    [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA).
    21    [(26)]   (25) 3,4-methylendioxy-N-ethylamphetamine   (also   known  as
    22  N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine,  N-ethyl  MDA,
    23  MDE, MDEA.
    24    [(27)] (26)  N-hydroxy-3,4-methylenedioxyamphetamine  (also  known  as
    25  N-hydroxy-alpha-methyl-3,4    (methylenedioxy)    phenethylamine,    and
    26  N-hydroxy MDA.
    27    [(28)] (27)  1-{1- (2-thienyl)  cyclohexyl}  pyrrolidine.  Some  other
    28  names: TCPY.
    29    [(29)] (28)  Alpha-ethyltryptamine.  Some  trade   or   other   names:
    30  etryptamine;         Monase;         Alpha-ethyl-1H-indole-3-ethanamine;
    31  3- (2-aminobutyl) indole; Alpha-ET or AET.
    32    [(30)] (29)  2,5-dimethoxy-4-ethylamphetamine.  Some  trade  or  other
    33  names: DOET.
    34    [(31)] (30)  4-Bromo-2,5-dimethoxyphenethylamine.  Some trade or other
    35  names:  2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane;   alpha-desmethyl
    36  DOB; 2C-B, Nexus.
    37    [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its
    38  optical isomers, salts and salts of isomers.
    39    § 5. Section 3382 of the public health law is REPEALED.
    40    § 6. Title 5-A of article 33 of the public health law is REPEALED.
    41    §  7.  Paragraph  (d) of subdivision 3, subdivision 3-a and paragraphs
    42  (a) and (b) of subdivision 11 of section 1311 of the civil practice  law
    43  and  rules,  paragraph (d) of subdivision 3 and subdivision 3-a as added
    44  by chapter 655 of the laws  of  1990  and  paragraphs  (a)  and  (b)  of
    45  subdivision  11 as amended by section 47 of part A1 of chapter 56 of the
    46  laws of 2010, are amended to read as follows:
    47    (d) In a forfeiture action commenced by a claiming authority against a
    48  defendant,  the  following  rebuttable  presumption  shall  apply:   all
    49  currency  or  negotiable  instruments  payable  to  the  bearer shall be
    50  presumed to be the proceeds of a pre-conviction  forfeiture  crime  when
    51  such currency or negotiable instruments are (i) found in close proximity
    52  to  a  controlled  substance unlawfully possessed by the defendant in an
    53  amount sufficient to constitute a violation of section 220.18 or  220.21
    54  of  the penal law, or (ii) found in close proximity to any quantity of a
    55  controlled  substance  [or  marihuana]  unlawfully  possessed  by   such
    56  defendant  in  a  room,  other  than a public place, under circumstances

        S. 1527--A                         68
 
     1  evincing an intent to unlawfully mix, compound, distribute,  package  or
     2  otherwise prepare for sale such controlled substance [or marihuana].
     3    3-a.  Conviction  of  a person in a criminal action upon an accusatory
     4  instrument which includes one or  more  of  the  felonies  specified  in
     5  subdivision  four-b  of section thirteen hundred ten of this article, of
     6  any felony other than such felonies, shall not preclude a defendant,  in
     7  any subsequent proceeding under this article where that conviction is at
     8  issue, from adducing evidence that the conduct underlying the conviction
     9  would  not  establish  the  elements of any of the felonies specified in
    10  such subdivision other than the one to which the criminal defendant pled
    11  guilty. If the defendant does adduce such evidence, the burden shall  be
    12  upon  the claiming authority to prove, by clear and convincing evidence,
    13  that the conduct underlying the criminal conviction would establish  the
    14  elements  of the felony specified in such subdivision. Nothing contained
    15  in this subdivision shall affect the validity of  a  settlement  of  any
    16  forfeiture action negotiated between the claiming authority and a crimi-
    17  nal defendant contemporaneously with the taking of a plea of guilty in a
    18  criminal  action to any felony defined in article two hundred twenty [or
    19  section 221.30 or 221.55] of the penal law, or to a felony conspiracy to
    20  commit the same.
    21    (a) Any stipulation or settlement agreement between the parties  to  a
    22  forfeiture  action  shall  be filed with the clerk of the court in which
    23  the forfeiture action is pending. No stipulation or settlement agreement
    24  shall be accepted for filing unless it is accompanied  by  an  affidavit
    25  from  the  claiming  authority that written notice of the stipulation or
    26  settlement agreement, including the terms of such, has been given to the
    27  office of victim  services,  the  state  division  of  criminal  justice
    28  services[,  and in the case of a forfeiture based on a felony defined in
    29  article two hundred twenty or section 221.30 or 221.55 of the penal law,
    30  to the state division of substance abuse services].
    31    (b) No judgment or order of forfeiture shall be  accepted  for  filing
    32  unless  it  is  accompanied  by an affidavit from the claiming authority
    33  that written notice of judgment or order, including the terms  of  such,
    34  has  been  given to the office of victim services, the state division of
    35  criminal justice services[, and in the case of a forfeiture based  on  a
    36  felony defined in article two hundred twenty or section 221.30 or 221.55
    37  of the penal law, to the state division of substance abuse services].
    38    §  8.  Subdivision  1  of  section 3397-b of the public health law, as
    39  added by chapter 810 of the laws of 1980, is amended to read as follows:
    40    1. ["Marijuana"] "Cannabis" means [marijuana] cannabis as  defined  in
    41  [section  thirty-three  hundred  two of this chapter] subdivision six of
    42  section 220.00 of the penal law and shall also include  tetrahydrocanna-
    43  binols or a chemical derivative of tetrahydrocannabinol.
    44    § 9. Section 114-a of the vehicle and traffic law, as added by chapter
    45  163 of the laws of 1973, is amended to read as follows:
    46    § 114-a. Drug.  The  term  "drug" when used in this chapter, means and
    47  includes any substance listed in section thirty-three hundred six of the
    48  public health law and cannabis and concentrated cannabis as  defined  in
    49  section 220.00 of the penal law.
    50    §  10.  Subdivisions  5,  6  and 9 of section 220.00 of the penal law,
    51  subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision
    52  6 as amended by chapter 1051 of the laws of 1973 and  subdivision  9  as
    53  amended  by  chapter  664  of  the laws of 1985, are amended and two new
    54  subdivisions 21 and 22 are added to read as follows:
    55    5. "Controlled substance" means any substance listed  in  schedule  I,
    56  II,  III,  IV  or  V  of  section thirty-three hundred six of the public

        S. 1527--A                         69
 
     1  health law other than [marihuana] cannabis, but  including  concentrated
     2  cannabis  as  defined  in  [paragraph (a) of subdivision four of section
     3  thirty-three hundred two of such law]  subdivision  twenty-one  of  this
     4  section.
     5    6. ["Marihuana"] "Cannabis" means ["marihuana" or "concentrated canna-
     6  bis"  as  those terms are defined in section thirty-three hundred two of
     7  the public health law] all parts of the plant  of  the  genus  Cannabis,
     8  whether  growing or not; the seeds thereof; the resin extracted from any
     9  part of the plant; and every compound,  manufacture,  salt,  derivative,
    10  mixture,  or  preparation of the plant, its seeds or resin.  It does not
    11  include the mature stalks of the plant, fiber produced from the  stalks,
    12  oil  or cake made from the seeds of the plant, any other compound, manu-
    13  facture, salt, derivative, mixture, or preparation of the mature  stalks
    14  (except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
    15  sterilized seed of the plant which is incapable of germination. It  does
    16  not  include  all parts of the plant Cannabis sativa L., whether growing
    17  or not, having no more than three-tenths of one percent tetrahydrocanna-
    18  binol (THC).
    19    9. "Hallucinogen" means any controlled substance listed  in  [schedule
    20  I(d)]  paragraphs  (5),  [(18),  (19),  (20), (21) and (22)] (17), (18),
    21  (19), (20) and (21) of subdivision (d) of schedule I of section  thirty-
    22  three hundred six of the public health law.
    23    21. "Concentrated cannabis" means:
    24    (a)  the  separated  resin, whether crude or purified, obtained from a
    25  plant of the genus Cannabis; or
    26    (b) a material, preparation,  mixture,  compound  or  other  substance
    27  which  contains more than three percent by weight of delta-9 tetrahydro-
    28  cannabinol, or its isomer, delta-8  dibenzopyran  numbering  system,  or
    29  delta-1  tetrahydrocannabinol  or  its  isomer,  delta 1 (6) monoterpene
    30  numbering system.
    31    22. "Cannabis products" means  cannabis,  concentrated  cannabis,  and
    32  cannabis-infused  products  containing  concentrated  cannabis and other
    33  ingredients.
    34    § 11.  Subdivision 4 of section 220.06 of the penal law, as amended by
    35  chapter 537 of the laws of 1998, is amended to read as follows:
    36    4.  one  or  more  preparations,  compounds,  mixtures  or  substances
    37  containing  concentrated cannabis as defined in [paragraph (a) of subdi-
    38  vision four of section thirty-three hundred two  of  the  public  health
    39  law]  subdivision  twenty-one of section 220.00 of this article and said
    40  preparations, compounds, mixtures or  substances  are  of  an  aggregate
    41  weight of one-fourth ounce or more; or
    42    § 12. Subdivision 10 of section 220.09 of the penal law, as amended by
    43  chapter 537 of the laws of 1998, is amended to read as follows:
    44    10.  one  or  more  preparations,  compounds,  mixtures  or substances
    45  containing concentrated cannabis as defined in [paragraph (a) of  subdi-
    46  vision  four  of  section  thirty-three hundred two of the public health
    47  law] subdivision twenty-one of section 220.00 of this article  and  said
    48  preparations,  compounds,  mixtures  or  substances  are of an aggregate
    49  weight of one ounce or more; or
    50    § 13. Subdivision 3 of section 220.34 of the penal law, as amended  by
    51  chapter 537 of the laws of 1998, is amended to read as follows:
    52    3.  concentrated  cannabis as defined in [paragraph (a) of subdivision
    53  four of section thirty-three hundred  two  of  the  public  health  law]
    54  subdivision twenty-one of section 220.00 of this article; or
    55    §  14.  Section  220.50 of the penal law, as amended by chapter 627 of
    56  the laws of 1990, is amended to read as follows:

        S. 1527--A                         70
 
     1  § 220.50 Criminally using drug paraphernalia in the second degree.
     2    A  person  is  guilty  of  criminally  using drug paraphernalia in the
     3  second degree when he knowingly possesses or sells:
     4    1. Diluents, dilutants or adulterants, including but not  limited  to,
     5  any  of the following: quinine hydrochloride, mannitol, mannite, lactose
     6  or dextrose, adapted for the dilution of narcotic  drugs  or  stimulants
     7  under  circumstances  evincing  an intent to use, or under circumstances
     8  evincing knowledge that  some  person  intends  to  use,  the  same  for
     9  purposes  of  unlawfully mixing, compounding, or otherwise preparing any
    10  narcotic  drug  or  stimulant,  other  than  cannabis  or   concentrated
    11  cannabis; or
    12    2. Gelatine capsules, glassine envelopes, vials, capsules or any other
    13  material suitable for the packaging of individual quantities of narcotic
    14  drugs  or  stimulants  under circumstances evincing an intent to use, or
    15  under circumstances evincing knowledge that some person intends to  use,
    16  the  same  for  the  purpose  of  unlawfully manufacturing, packaging or
    17  dispensing of any narcotic drug or stimulant,  other  than  cannabis  or
    18  concentrated cannabis; or
    19    3. Scales and balances used or designed for the purpose of weighing or
    20  measuring  controlled substances, under circumstances evincing an intent
    21  to use, or under  circumstances  evincing  knowledge  that  some  person
    22  intends  to use, the same for purpose of unlawfully manufacturing, pack-
    23  aging or dispensing of any narcotic drug or stimulant, other than canna-
    24  bis or concentrated cannabis.
    25    Criminally using drug paraphernalia in the second degree is a class  A
    26  misdemeanor.
    27    § 15. Article 221 of the penal law is REPEALED.
    28    §  16. The penal law is amended by adding a new article 222 to read as
    29  follows:
    30                                 ARTICLE 222
    31                                  CANNABIS
    32  Section 222.00 Cannabis; definitions.
    33          222.05 Personal use of cannabis.
    34          222.10 Unlawful cultivation of cannabis.
    35          222.15 Licensing of cannabis production and distribution.
    36          222.20 Unlawful possession of cannabis.
    37          222.25 Unlicensed sale of cannabis in the second degree.
    38          222.30 Unlicensed sale of cannabis in the first degree.
    39          222.35 Sale of cannabis to a person less than  twenty-one  years
    40                   of age in the second degree.
    41          222.40 Sale  of  cannabis to a person less than twenty-one years
    42                   of age in the first degree.
    43  § 222.00 Cannabis; definitions.
    44    1. "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 all parts of the plant Cannabis sativa L.,  whether  growing
    54  or not, having no more than three-tenths of one percent tetrahydrocanna-
    55  binol (THC).
    56    2. "Concentrated cannabis" means:

        S. 1527--A                         71

     1    (a)  the  separated  resin, whether crude or purified, obtained from a
     2  plant of the genus Cannabis; or
     3    (b)  a  material,  preparation,  mixture,  compound or other substance
     4  which contains more than three percent by weight of delta-9  tetrahydro-
     5  cannabinol,  or  its  isomer,  delta-8 dibenzopyran numbering system, or
     6  delta-1 tetrahydrocannabinol or its  isomer,  delta  1  (6)  monoterpene
     7  numbering system.
     8    3.  "Cannabis-infused products" means products that have been manufac-
     9  tured and contain either cannabis or  concentrated  cannabis  and  other
    10  ingredients that are intended for use or consumption.
    11    4.  "Mature  cannabis  plant"  means  a cannabis plant with observable
    12  flowers or buds.
    13    5. For the purposes of  this  article,  "sale"  shall  mean  to  sell,
    14  exchange  or  dispose  of for compensation. "Sale" shall not include the
    15  transfer of cannabis, concentrated cannabis or cannabis-infused  product
    16  between persons twenty-one years of age or older without compensation in
    17  the quantities authorized in paragraph (b) of subdivision one of section
    18  222.05 of this article.
    19  § 222.05 Personal use of cannabis.
    20    Notwithstanding any other provision of law to the contrary:
    21    1.  The  following acts are lawful for persons twenty-one years of age
    22  or older:  (a) possessing, displaying, purchasing, obtaining, or  trans-
    23  porting  up  to  three ounces of cannabis and up to twenty-four grams of
    24  concentrated  cannabis,  or  equivalent   amount   of   cannabis-infused
    25  products;
    26    (b)  transferring,  without compensation, to a person twenty-one years
    27  of age or older, up to three ounces of cannabis and  up  to  twenty-four
    28  grams of concentrated cannabis, or equivalent amount of cannabis-infused
    29  products;
    30    (c)  using,  smoking,  ingesting,  or consuming cannabis, concentrated
    31  cannabis or cannabis-infused products  unless  otherwise  prohibited  by
    32  state law or regulation;
    33    (d)  possessing, using, displaying, purchasing, obtaining, manufactur-
    34  ing, transporting or giving to any person twenty-one  years  of  age  or
    35  older cannabis paraphernalia or concentrated cannabis paraphernalia; and
    36    (e)  assisting another person who is twenty-one years of age or older,
    37  or allowing property to be used, in any of the acts described  in  para-
    38  graphs (a) through (d) of this subdivision.
    39    2.  Cannabis, concentrated cannabis, cannabis-infused products, canna-
    40  bis paraphernalia or concentrated cannabis paraphernalia involved in any
    41  way with conduct deemed lawful by this section are  not  contraband  nor
    42  subject  to  seizure  or forfeiture of assets under article four hundred
    43  eighty of this chapter, section thirteen hundred  eleven  of  the  civil
    44  practice  law  and rules, or other applicable law, and no conduct deemed
    45  lawful by this section shall constitute the basis for approach,  search,
    46  seizure, arrest or detention.
    47    3. Except as provided in subdivision four of this section, none of the
    48  following shall, individually or in combination with each other, consti-
    49  tute  reasonable suspicion of a crime or be used as evidence of probable
    50  cause in any criminal proceeding against a defendant twenty-one years of
    51  age or older:
    52    (a) the odor of cannabis or of burnt cannabis;
    53    (b) the possession of or the  suspicion  of  possession  of  cannabis,
    54  concentrated  cannabis  or  cannabis-infused  products  in  the  amounts
    55  authorized in this section;

        S. 1527--A                         72
 
     1    (c) the possession of multiple containers of cannabis without evidence
     2  of possession of more than three ounces of cannabis,  twenty-four  grams
     3  of  concentrated  cannabis  or the equivalent amount of cannabis-infused
     4  products; or
     5    (d) the presence of cash or currency in proximity to cannabis, concen-
     6  trated cannabis or cannabis-infused products.
     7    4.  Subdivision  three  of  this  section  shall  not apply when a law
     8  enforcement officer is investigating: (a) an alleged offense pursuant to
     9  section 222.20, 222.25, 222.30, 222.35 or 222.40 of this article; or (b)
    10  whether a person is operating or in physical control  of  a  vehicle  or
    11  watercraft  while  intoxicated,  under  the influence of, or impaired by
    12  alcohol or a drug or any combination thereof  in  violation  of  article
    13  thirty-one of the vehicle and traffic law.
    14    5. (a) Nothing in this section shall be construed to permit any person
    15  to:
    16    (i) smoke cannabis in public;
    17    (ii)  smoke  cannabis  products in a location where smoking tobacco is
    18  prohibited pursuant to section thirteen  hundred  ninety-nine-o  of  the
    19  public health law;
    20    (iii)  possess,  smoke  or  ingest  cannabis  products  in or upon the
    21  grounds of any school property used for school purposes which  is  owned
    22  by or leased to any elementary or secondary school or school board while
    23  children are present; or
    24    (iv)  smoke  or  ingest  cannabis  products while driving, operating a
    25  motor vehicle, boat, vessel, aircraft, or other vehicle used for  trans-
    26  portation.
    27    (b) For purposes of this section:
    28    (i)  "Smoke"  means  to  inhale, exhale, burn, or carry any lighted or
    29  heated device or pipe, or  any  other  lighted  or  heated  cannabis  or
    30  concentrated  cannabis  product intended for inhalation, whether natural
    31  or synthetic, in any manner or in any form.
    32    (ii) "Smoke" does not include the use of an electronic smoking  device
    33  that  creates an aerosol or vapor, unless local or state statutes extend
    34  prohibitions on smoking to electronic smoking devices.
    35    (c) Violations of the restrictions under this subdivision are  subject
    36  to  a fine not exceeding twenty-five dollars or an appropriate amount of
    37  community service not to exceed twenty hours.
    38  § 222.10 Unlawful cultivation of cannabis.
    39    A person is guilty of unlawful cultivation of cannabis when he or  she
    40  knowingly  and  unlawfully plants, cultivates, harvests, dries, or proc-
    41  esses cannabis on public lands or otherwise in violation of article  six
    42  of the cannabis law.
    43    Unlawful cultivation of cannabis is a class B misdemeanor.
    44  § 222.15 Licensing of cannabis production and distribution.
    45    The  criminal penalties pursuant to the provisions of this article for
    46  possessing, manufacturing, transporting, distributing, selling or trans-
    47  ferring cannabis, concentrated  cannabis  or  cannabis-infused  products
    48  shall  not  apply  to  any person engaged in such activity in compliance
    49  with the cannabis law.
    50  § 222.20 Unlawful possession of cannabis.
    51    A person is guilty of unlawful possession of cannabis when he  or  she
    52  knowingly and unlawfully possesses:
    53    1. cannabis and such cannabis weighs more than three ounces; or
    54    2.  concentrated  cannabis  and such concentrated cannabis weighs more
    55  than twenty-four grams; or
    56    3. equivalent amount of cannabis-infused products.

        S. 1527--A                         73
 
     1    Unlawful possession of cannabis is a violation punishable by a fine of
     2  not more than one hundred twenty-five dollars.
     3  § 222.25 Unlicensed sale of cannabis in the second degree.
     4    1.  A  person  is  guilty of unlicensed sale of cannabis in the second
     5  degree when he or she knowingly and unlawfully sells  cannabis,  concen-
     6  trated cannabis or equivalent amount of cannabis-infused products.
     7    2.  A violation of this section is subject to the following penalties,
     8  as applicable:
     9    (a) violation punishable by a fine of not more than one hundred  twen-
    10  ty-five dollars;
    11    (b) if, within the previous five years, the defendant was convicted of
    12  the  crime  of  unlicensed sale of cannabis in the first degree, sale of
    13  cannabis to a person less than twenty-one years of  age  in  the  second
    14  degree,  sale  of cannabis to a person less than twenty-one years of age
    15  in the first degree or this section, then a violation  punishable  by  a
    16  fine  of  not  more  than  two  hundred  fifty dollars for a second such
    17  offense; or
    18    (c) if, within the previous five years, the defendant was convicted of
    19  the crime of unlicensed sale of cannabis in the first  degree,  sale  of
    20  cannabis  to  a  person  less than twenty-one years of age in the second
    21  degree, sale of cannabis to a person less than twenty-one years  of  age
    22  in the first degree or this section, then a class B misdemeanor for such
    23  third or subsequent offense.
    24  § 222.30 Unlicensed sale of cannabis in the first degree.
    25    1.  A  person  is  guilty  of unlicensed sale of cannabis in the first
    26  degree when he or she knowingly and unlawfully sells more than two ounc-
    27  es of cannabis, more than sixteen grams of concentrated cannabis or  the
    28  equivalent amount of cannabis-infused products.
    29    2.  A violation of this section is subject to the following penalties,
    30  as applicable:
    31    (a) a violation punishable by a fine of  not  more  than  two  hundred
    32  fifty dollars;
    33    (b) if, within the previous five years, the defendant was convicted of
    34  the  crime  of unlicensed sale of cannabis in the second degree, sale of
    35  cannabis to a person less than twenty-one years of  age  in  the  second
    36  degree,  sale  of cannabis to a person less than twenty-one years of age
    37  in the first degree or this section, then a violation  punishable  by  a
    38  fine of not more than five hundred dollars for such second offense; or
    39    (c) if, within the previous five years, the defendant was convicted of
    40  the  crime  of unlicensed sale of cannabis in the second degree, sale of
    41  cannabis to a person less than twenty-one years of  age  in  the  second
    42  degree,  sale  of cannabis to a person less than twenty-one years of age
    43  in the first degree or this section, then a class A misdemeanor for such
    44  third or subsequent offense.
    45  § 222.35 Sale of cannabis to a person less than twenty-one years of  age
    46             in the second degree.
    47    A  person  twenty-one  years  of age or older is guilty of the sale of
    48  cannabis to a person less than twenty-one years of  age  in  the  second
    49  degree when, being twenty-one years of age or older, he or she knowingly
    50  and unlawfully sells cannabis, concentrated cannabis or cannabis-infused
    51  products to a person less than twenty-one years of age.
    52    Sale  of  cannabis  to  a  person under twenty-one years of age in the
    53  second degree is a class A misdemeanor.
    54  § 222.40 Sale of cannabis to a person less than twenty-one years of  age
    55             in the first degree.

        S. 1527--A                         74
 
     1    A  person  twenty-one  years of age and older is guilty of the sale of
     2  cannabis to a person under twenty-one years of age in the  first  degree
     3  when,  being  twenty-one  years of age or older, he or she knowingly and
     4  unlawfully sells more than three ounces of cannabis, more  than  twenty-
     5  four  grams  of concentrated cannabis or the equivalent amount of canna-
     6  bis-infused products.
     7    Sale of cannabis to a person less than twenty-one years of age in  the
     8  first degree is a class E felony.
     9    §  17.  Subdivision  8  of section 1399-n of the public health law, as
    10  amended by chapter 13 of the  laws  of  2003,  is  amended  to  read  as
    11  follows:
    12    8.  "Smoking" means the burning of a lighted cigar, cigarette, pipe or
    13  any other matter  or  substance  which  contains  tobacco  or  cannabis;
    14  provided  that  it  does  not  include  the use of an electronic smoking
    15  device that creates an aerosol or vapor, unless local or state  statutes
    16  extend prohibitions on smoking to electronic smoking devices.
    17    §  18. Section 1.20 of the criminal procedure law is amended by adding
    18  a new subdivision 45 to read as follows:
    19    45. "Expunge" means, where an  arrest  and  any  enforcement  activity
    20  connected with that arrest, including prosecution and any disposition in
    21  any  New  York  state  court,  is  deemed  a  nullity and the accused is
    22  restored, in contemplation of the law, to  the  status  such  individual
    23  occupied  before  the  arrest  and/or  prosecution; that records of such
    24  arrest, prosecution and/or disposition shall be marked  as  expunged  or
    25  shall  be  destroyed  as  set  forth  in section 160.50 of this chapter.
    26  Neither the arrest nor prosecution and/or  disposition,  if  any,  of  a
    27  matter  deemed  a  nullity  shall  operate  as a disqualification of any
    28  person so accused to pursue or engage in any  lawful  activity,  occupa-
    29  tion,  profession  or  calling.  Except  where  specifically required or
    30  permitted by statute or upon specific authorization of a superior court,
    31  no such person shall be required to divulge  information  pertaining  to
    32  the arrest, prosecution and/or disposition of such a matter.
    33    §  19.  Subdivision 1 of section 160.50 of the criminal procedure law,
    34  as amended by chapter 169 of the laws of 1994, paragraph (d) as  amended
    35  by chapter 449 of the laws of 2015, is amended and a new subdivision 1-a
    36  is added to read as follows:
    37    1.  Upon  the termination of a criminal action or proceeding against a
    38  person in favor of such person, as defined in subdivision three of  this
    39  section,  unless  the  district  attorney upon motion with not less than
    40  five days notice to such person or his or her attorney  demonstrates  to
    41  the  satisfaction  of  the  court  that the interests of justice require
    42  otherwise, or the court on its own motion with not less than  five  days
    43  notice  to such person or his or her attorney determines that the inter-
    44  ests of justice require otherwise and states the reasons for such deter-
    45  mination on the record, [the record of such action or  proceeding  shall
    46  be  sealed  and  the  clerk of the court wherein such criminal action or
    47  proceeding was terminated shall immediately notify the  commissioner  of
    48  the division of criminal justice services and the heads of all appropri-
    49  ate  police  departments  and  other  law  enforcement agencies that the
    50  action has been terminated in favor of the accused, and unless the court
    51  has directed otherwise, that the record of  such  action  or  proceeding
    52  shall  be  sealed.  Upon receipt of notification of such termination and
    53  sealing] such action or proceeding shall be deemed a nullity and records
    54  of such action or proceeding expunged, and the clerk of the court where-
    55  in such criminal action or proceeding was terminated  shall  immediately
    56  notify the commissioner of the division of criminal justice services and

        S. 1527--A                         75
 
     1  the  heads  of all appropriate police departments and other law enforce-
     2  ment agencies that the action  has  been  terminated  in  favor  of  the
     3  accused  and  deemed a nullity, and unless the court has directed other-
     4  wise,  that the record of or relating to such action or proceeding shall
     5  be immediately expunged as follows:
     6    (a) every photograph of such person and photographic plate  or  proof,
     7  and  all palmprints and fingerprints, retina scans or DNA material taken
     8  or made of such person pursuant to the provisions  of  this  article  in
     9  regard  to  the  action  or  proceeding  terminated, [except a dismissal
    10  pursuant to section 170.56 or 210.46 of this chapter,]  and  all  dupli-
    11  cates  and  copies  thereof,  except  a  digital fingerprint image where
    12  authorized pursuant to paragraph (e) of this subdivision,  shall  forth-
    13  with  be[,  at the discretion of the recipient agency, either] destroyed
    14  [or returned to such person, or to the  attorney  who  represented  such
    15  person]  at the time of the termination of the action or proceeding[, at
    16  the address given by such  person  or  attorney  during  the  action  or
    17  proceeding,]  by  the  division  of criminal justice services and by any
    18  police department or law enforcement agency having any such  photograph,
    19  photographic  plate or proof, palmprint [or], fingerprints, retina scans
    20  or DNA material in its possession or under its control;
    21    (b) any police department or law  enforcement  agency,  including  the
    22  division  of  criminal  justice services, which transmitted or otherwise
    23  forwarded to any agency of the United States or of any other state or of
    24  any other jurisdiction outside the state of New York copies of any  such
    25  photographs,  photographic  plates  or proofs, palmprints [and], finger-
    26  prints, retina scans  or  DNA  material,  including  those  relating  to
    27  actions  or  proceedings which were dismissed pursuant to section 170.56
    28  or 210.46 of this [chapter] part, shall forthwith formally [request  in]
    29  inform them in writing that [all such copies be destroyed or returned to
    30  the  police  department  or  law enforcement agency which transmitted or
    31  forwarded them, and, if returned, such department or  agency  shall,  at
    32  its discretion, either destroy or return them as provided herein, except
    33  that  those  relating to dismissals pursuant to section 170.56 or 210.46
    34  of this chapter shall not be destroyed or returned by such department or
    35  agency] the matter has been expunged and request  in  writing  that  all
    36  such copies be destroyed;
    37    (c) all official records and papers, including judgments and orders of
    38  a  court  but  not  including  published  court decisions or opinions or
    39  records and briefs on appeal, relating to  the  arrest  or  prosecution,
    40  including  all  duplicates and copies thereof, on file with the division
    41  of criminal justice services, any court, police agency, or  prosecutor's
    42  office  shall  be [sealed and not made available to any person or public
    43  or private agency] marked as expunged by conspicuously indicating on the
    44  face of the record or at the beginning of  the  digitized  file  of  the
    45  record that the record has been designated as expunged. Such records and
    46  papers  shall not be made available to any person, except the individual
    47  whose case has been deemed a nullity or their designated  agent  as  set
    48  forth  in paragraph (d) of this subdivision, or to any public or private
    49  agency;
    50    (d) [such] records set forth in  paragraph  (c)  of  this  subdivision
    51  shall be made available to the person accused or to such person's desig-
    52  nated  agent,  and  shall  be  made available to (i) a prosecutor in any
    53  proceeding in which the accused has  moved  for  an  order  pursuant  to
    54  section  170.56 or 210.46 of this [chapter] part, or (ii) a law enforce-
    55  ment agency upon ex parte motion  in  any  superior  court,  or  in  any
    56  district court, city court or the criminal court of the city of New York

        S. 1527--A                         76
 
     1  provided  that  such  court originally sealed or expunged the record, if
     2  such agency demonstrates to the satisfaction of the court  that  justice
     3  requires  that  such records be made available to it, or (iii) any state
     4  or  local  officer  or  agency  with  responsibility for the issuance of
     5  licenses to possess guns, when the accused has made application for such
     6  a license, or (iv) the New York  state  department  of  corrections  and
     7  community  supervision  when  the  accused is on parole supervision as a
     8  result of conditional release or a parole release  granted  by  the  New
     9  York  state  board of parole, and the arrest which is the subject of the
    10  inquiry is one which occurred while the accused was  under  such  super-
    11  vision,  or  (v)  any  prospective employer of a police officer or peace
    12  officer as those terms are  defined  in  subdivisions  thirty-three  and
    13  thirty-four  of section 1.20 of this chapter, in relation to an applica-
    14  tion for employment as a police  officer  or  peace  officer;  provided,
    15  however,  that  every  person  who  is  an applicant for the position of
    16  police officer or peace officer shall be furnished with a  copy  of  all
    17  records  obtained  under  this  paragraph and afforded an opportunity to
    18  make an explanation thereto, or (vi) the probation department  responsi-
    19  ble  for supervision of the accused when the arrest which is the subject
    20  of the inquiry is one which occurred while the accused  was  under  such
    21  supervision; and
    22    (e)  where fingerprints subject to the provisions of this section have
    23  been received by the division of criminal justice services and have been
    24  filed by the division as digital images, such images  may  be  retained,
    25  provided  that  a fingerprint card of the individual is on file with the
    26  division which was not [sealed] destroyed pursuant to  this  section  or
    27  section 160.55 of this article.
    28    (1-a) Cases previously sealed pursuant to this section shall be deemed
    29  expunged, and digital records shall be so marked.
    30    §  20.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
    31  of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
    32  ter  905  of  the laws of 1977, paragraph (k) as added by chapter 835 of
    33  the laws of 1977 and as relettered by chapter 192 of the  laws  of  1980
    34  and  such  subdivision as renumbered by chapter 142 of the laws of 1991,
    35  are amended to read as follows:
    36    (i) prior to the filing of an accusatory instrument in a local  crimi-
    37  nal  court  against  such person, the prosecutor elects not to prosecute
    38  such person. In such event, the prosecutor shall serve  a  certification
    39  of  such  disposition upon the division of criminal justice services and
    40  upon the appropriate police department or law enforcement agency  which,
    41  upon  receipt  thereof,  shall  comply with the provisions of paragraphs
    42  (a), (b), (c) and (d) of subdivision one of this  section  in  the  same
    43  manner  as  is  required  thereunder with respect to an order of a court
    44  entered pursuant to said subdivision one[.]; or
    45    (j) following the arrest of such person, the arresting police  agency,
    46  prior  to  the  filing  of  an accusatory instrument in a local criminal
    47  court but subsequent to the forwarding of a copy of the fingerprints  of
    48  such  person to the division of criminal justice services, elects not to
    49  proceed further. In such event, the head of the arresting police  agency
    50  shall  serve  a  certification  of such disposition upon the division of
    51  criminal justice services which, upon receipt thereof, shall comply with
    52  the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
    53  this section in the same manner as is required thereunder  with  respect
    54  to an order of a court entered pursuant to said subdivision one[.]; or
    55    (k)  (i)  The accusatory instrument alleged a violation of article two
    56  hundred twenty or section 240.36 of the penal law, prior to  the  taking

        S. 1527--A                         77
 
     1  effect  of  article  two  hundred twenty-one of the penal law, or by the
     2  conviction of such person of a violation of [article two  hundred  twen-
     3  ty-one]  section  221.45 of the penal law on or after the effective date
     4  of  the  chapter  of the laws of two thousand nineteen that amended this
     5  paragraph or a violation of  section  221.05,  221.10,  221.15,  221.20,
     6  221.25, 221.30, 221.35 or 221.40 of the penal law prior to the effective
     7  date  of  the  chapter of the laws of two thousand nineteen that amended
     8  this paragraph; and (ii)  the  sole  controlled  substance  involved  is
     9  [marijuana; (iii) the conviction was only for a violation or violations;
    10  and  (iv)  at  least three years have passed since the offense occurred]
    11  marihuana. No defendant shall be required or permitted to  waive  eligi-
    12  bility for sealing pursuant to this paragraph as part of a plea of guil-
    13  ty, sentence or any agreement related to a conviction for a violation of
    14  section  221.45  of  the penal law. Any such waiver shall be deemed void
    15  and wholly unenforceable.
    16    § 21. Subdivision 4 of section 160.50 of the criminal procedure law is
    17  REPEALED, and three new subdivisions 4, 5, and 6 are added  to  read  as
    18  follows:
    19    4.  (a)  Records of any action or proceeding terminated for any reason
    20  other than a criminal  conviction  prior  to  November  first,  nineteen
    21  hundred  ninety-one shall be expunged.  The division of criminal justice
    22  services shall identify such records within six months of the  effective
    23  date  of this subdivision, and notify the New York state office of court
    24  administration (hereinafter OCA) that such action qualifies for expunge-
    25  ment. Upon receipt of such notification, the matter shall be expunged as
    26  described in subdivision one of this section.
    27    (b) Where a criminal action or proceeding was terminated,  as  defined
    28  in  paragraph  (k)  of  subdivision  three of this section, prior to the
    29  effective date of this subdivision, such criminal action  or  proceeding
    30  shall  be  automatically  vacated and dismissed, and all records of such
    31  action or proceeding expunged as set forth in subdivision  one  of  this
    32  section,  and the matter terminated in favor of the accused and deemed a
    33  nullity, because the prior conviction is now legally invalid. OCA  shall
    34  automatically  notify  the  commissioner  of  the  division  of criminal
    35  justice services and the heads of all appropriate police departments and
    36  other law enforcement agencies that the prior conviction is now  legally
    37  invalid and that the action has been vacated, dismissed and expunged and
    38  thus terminated in favor of the accused. Upon receipt of notification of
    39  such  vacatur,  termination and expungement, all records relating to the
    40  criminal action shall be expunged as described  in  subdivision  one  of
    41  this section.
    42    5.  In  situations where automatic vacatur, dismissal, expungement and
    43  record destruction is required by paragraph (b) of subdivision  four  of
    44  this  section but has not taken place, or where supporting court records
    45  cannot be located or have been destroyed, and  an  individual  or  their
    46  attorney  presents  to  OCA  fingerprint records from the New York state
    47  division of criminal justice services or a court disposition which indi-
    48  cate that a criminal action or  proceeding  against  the  applicant  was
    49  terminated  by  a  conviction for section 221.05, 221.10 221.15, 221.20,
    50  221.25, 221.30, 221.35, or 221.40 of the penal law in  effect  prior  to
    51  the  effective date of this subdivision, within thirty days of notice to
    52  OCA, the action shall forthwith be vacated, dismissed, and  expunged  as
    53  set forth in subdivision one of this section.
    54    6. Vacatur, dismissal and expungement as set forth in paragraph (a) or
    55  (b)  of  subdivision four or subdivision five of this section is without
    56  prejudice to an individual or  their  attorney  seeking  further  relief

        S. 1527--A                         78
 
     1  pursuant  to  section  440.10  of  this part. Nothing in this section is
     2  intended to diminish or abrogate any rights or remedies otherwise avail-
     3  able to the individual.
     4    §  22.  Subdivision 1 of section 170.56 of the criminal procedure law,
     5  as amended by chapter 360 of the laws of 1977, is  amended  to  read  as
     6  follows:
     7    1.  Upon or after arraignment in a local criminal court upon an infor-
     8  mation, a prosecutor's information or a misdemeanor complaint, where the
     9  sole  remaining  count  or  counts  charge  a violation or violations of
    10  section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
    11  law,  or  upon summons for a nuisance offense under section sixty-five-c
    12  of the alcoholic beverage control law and before the entry of a plea  of
    13  guilty  thereto  or  commencement  of   a trial thereof, the court, upon
    14  motion of a defendant, may order that all proceedings be  suspended  and
    15  the  action  adjourned  in contemplation of dismissal, or upon a finding
    16  that adjournment would not be necessary or appropriate and  the  setting
    17  forth  in  the  record  of the reasons for such findings, may dismiss in
    18  furtherance of justice the  accusatory  instrument;  provided,  however,
    19  that  the  court  may  not  order  such  adjournment in contemplation of
    20  dismissal or dismiss the accusatory instrument if: (a) the defendant has
    21  previously been granted such adjournment in contemplation of  dismissal,
    22  or  (b) the defendant has previously been granted a dismissal under this
    23  section, or (c) the defendant  has  previously  been  convicted  of  any
    24  offense involving controlled substances, or (d) the defendant has previ-
    25  ously  been  convicted  of  a  crime  and the district attorney does not
    26  consent or (e) the defendant has previously been adjudicated a  youthful
    27  offender on the basis of any act or acts involving controlled substances
    28  and the district attorney does not consent.  Notwithstanding the limita-
    29  tions  set  forth  in  this  subdivision,  the  court may order that all
    30  proceedings be suspended and the action adjourned  in  contemplation  of
    31  dismissal  based  upon  a  finding  of  exceptional  circumstances.  For
    32  purposes of this  subdivision,  exceptional  circumstances  exist  when,
    33  regardless  of the ultimate disposition of the case, the entry of a plea
    34  of guilty is likely to result in severe or ongoing consequences, includ-
    35  ing, but not limited to, potential or actual immigration consequences.
    36    § 23. Paragraph (j) of subdivision 1 of section 440.10 of the criminal
    37  procedure law, as amended by section 2 of part MMM of chapter 59 of  the
    38  laws  of  2019,  is  amended and a new paragraph (k) is added to read as
    39  follows:
    40    (j) The judgment is a conviction for a class A or unclassified  misde-
    41  meanor  entered prior to the effective date of this paragraph and satis-
    42  fies the ground prescribed in paragraph (h) of this subdivision.   There
    43  shall  be  a rebuttable presumption that a conviction by plea to such an
    44  offense was not knowing, voluntary and  intelligent,  based  on  ongoing
    45  collateral  consequences,  including  potential  or  actual  immigration
    46  consequences, and  there  shall  be  a  rebuttable  presumption  that  a
    47  conviction  by  verdict  constitutes  cruel and unusual punishment under
    48  section five of article one of the  state  constitution  based  on  such
    49  consequences[.]; or
    50    (k)  if  pertinent,  such relief is available notwithstanding that the
    51  judgment was for a violation of section 221.05, 221.10, 221.15,  221.20,
    52  221.25,  221.30,  221.35,  or 221.40 of the penal law in effect prior to
    53  the effective date of this paragraph and that the underlying  action  or
    54  proceeding  has already been vacated, dismissed and expunged pursuant to
    55  paragraph (b) of subdivision four of section 160.50  of  this  part,  in
    56  which  case  the  court  shall  presume  that a conviction by plea for a

        S. 1527--A                         79
 
     1  violation of the aforementioned sections of the then penal law  was  not
     2  knowing and voluntary, if it has ongoing consequences, including but not
     3  limited  to,  potential  or  actual  immigration consequences, and shall
     4  presume  that  a conviction by verdict of the aforementioned sections of
     5  the then penal law constitutes cruel and unusual  punishment  under  the
     6  state  constitution,  based  on  those consequences. The prosecution may
     7  rebut these presumptions.
     8    § 24. The criminal procedure law is amended by adding  a  new  section
     9  440.46-a to read as follows:
    10  § 440.46-a Motion for resentence; persons convicted of certain marihuana
    11              offenses.
    12    1.  Where  a  person is currently serving a sentence for a conviction,
    13  whether by verdict or by open or negotiated plea,  who  would  not  have
    14  been  guilty  of an offense after the effective date of this section had
    15  this section been in effect at the time of their conviction, the  office
    16  of  court administration shall automatically vacate, dismiss and expunge
    17  such conviction pursuant to paragraph (b) of subdivision four of section
    18  160.50 of this part and immediately notify the New York state department
    19  of corrections and community supervision and local jails, which entities
    20  shall immediately effectuate the appropriate relief. The office of court
    21  administration shall likewise automatically notify the division of crim-
    22  inal justice services and any  police  department  and  law  enforcement
    23  agency,  which  division,  department or agency must immediately destroy
    24  appurtenant records as set forth in paragraph (b) of subdivision four of
    25  section 160.50 of this part.
    26    2. (a) A person currently serving a sentence for a conviction, whether
    27  by verdict or by open or negotiated plea, who would have been guilty  of
    28  a  lesser  offense  after  the  effective  date of this section had this
    29  section been in effect at the time of their conviction may petition  for
    30  a recall of sentence before the trial court that entered the judgment of
    31  conviction  in  their  case  to  request resentencing in accordance with
    32  article two hundred twenty-two of the penal law.
    33    (b) Upon receiving a motion under paragraph (a) of  this  subdivision,
    34  the  court shall presume the movant satisfies the criteria in such para-
    35  graph (a) unless the party opposing  the  motion  proves  by  clear  and
    36  convincing  evidence  that  the movant does not satisfy the criteria. If
    37  the movant satisfies the criteria in paragraph (a) of this  subdivision,
    38  the court shall grant the motion to resentence.
    39    3.  Under  no circumstances may resentencing under this section result
    40  in the imposition of a term longer than the original  sentence,  or  the
    41  reinstatement  of charges dismissed pursuant to a negotiated plea agree-
    42  ment.
    43    4. (a) A person who has completed his or her sentence for a conviction
    44  under the former article two hundred twenty-one of the penal law, wheth-
    45  er by trial or open or negotiated plea, who would have been guilty of  a
    46  lesser  offense on and after the effective date of this section had this
    47  section been in effect at the time of his or her conviction, may file an
    48  application  before  the  trial  court  that  entered  the  judgment  of
    49  conviction  in  his  or her case to have the conviction redesignated (or
    50  "reclassified"), in accordance with article two  hundred  twenty-two  of
    51  the penal law.
    52    (b)  Upon  receiving a motion under paragraph (a) of this subdivision,
    53  the court shall presume the movant satisfies the criteria  in  paragraph
    54  (a)  of  this subdivision unless the party opposing the motion proves by
    55  clear and convincing evidence that  the  movant  does  not  satisfy  the
    56  criteria.  If the movant satisfies the criteria in paragraph (a) of this

        S. 1527--A                         80
 
     1  subdivision, the  court  shall  grant  the  motion  to  redesignate  (or
     2  "reclassify") the conviction.
     3    5. (a) If the court that originally sentenced the movant is not avail-
     4  able,  the  presiding judge shall designate another judge to rule on the
     5  petition or application.
     6    (b) Unless requested by the movant, no hearing is necessary  to  grant
     7  an application filed under subdivision two or four of this section.
     8    (c) Any felony conviction that is vacated and resentenced under subdi-
     9  vision  two  of this section or designated as a misdemeanor or violation
    10  under subdivision four of this section shall be considered a misdemeanor
    11  or violation for  all  purposes.  Any  misdemeanor  conviction  that  is
    12  vacated  and resentenced under subdivision two of this section or desig-
    13  nated as a violation under subdivision four of  this  section  shall  be
    14  considered a violation for all purposes.
    15    (d)  Nothing  in  this section is intended to diminish or abrogate any
    16  rights or remedies otherwise available to the petitioner or applicant.
    17    (e) Nothing in this and related sections is intended  to  diminish  or
    18  abrogate  the  finality  of judgments in any case not falling within the
    19  purview of this section.
    20    (f) The provisions of this section shall  apply  equally  to  juvenile
    21  delinquency  adjudications  and  dispositions under section five hundred
    22  one-e of the executive law if the juvenile would not have been guilty of
    23  an offense or would have been guilty of  a  lesser  offense  under  this
    24  section  had  this  section  been  in  effect  at the time of his or her
    25  conviction.
    26    (g) The office of  court  administration  shall  promulgate  and  make
    27  available  all necessary forms to enable the filing of the petitions and
    28  applications provided in this section no later than sixty days following
    29  the effective date of this section.
    30    § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
    31  procedure law, as amended by chapter 37 of the laws of 2014, is  amended
    32  to read as follows:
    33    (c)  Criminal  possession  of  a  controlled  substance in the seventh
    34  degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
    35  possession  of  a controlled substance in the fifth degree as defined in
    36  section 220.06 of the penal law, criminal  possession  of  a  controlled
    37  substance in the fourth degree as defined in section 220.09 of the penal
    38  law,  criminal  possession of a controlled substance in the third degree
    39  as defined in section 220.16 of the penal law, criminal possession of  a
    40  controlled  substance  in the second degree as defined in section 220.18
    41  of the penal law, criminal possession of a controlled substance  in  the
    42  first  degree  as  defined  in section 220.21 of the penal law, criminal
    43  sale of a controlled substance in the fifth degree as defined in section
    44  220.31 of the penal law, criminal sale of a controlled substance in  the
    45  fourth  degree  as  defined in section 220.34 of the penal law, criminal
    46  sale of a controlled substance in the third degree as defined in section
    47  220.39 of the penal law, criminal sale of a controlled substance in  the
    48  second  degree  as  defined in section 220.41 of the penal law, criminal
    49  sale of a controlled substance in the first degree as defined in section
    50  220.43 of the penal law, criminally possessing a  hypodermic  instrument
    51  as  defined  in  section  220.45  of  the  penal law, criminal sale of a
    52  prescription for a controlled substance or a controlled substance  by  a
    53  practitioner  or  pharmacist  as  defined in section 220.65 of the penal
    54  law, criminal possession of methamphetamine  manufacturing  material  in
    55  the  second degree as defined in section 220.70 of the penal law, crimi-
    56  nal possession of methamphetamine manufacturing material  in  the  first

        S. 1527--A                         81
 
     1  degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
     2  possession of precursors of methamphetamine as defined in section 220.72
     3  of the penal law, unlawful manufacture of methamphetamine in  the  third
     4  degree  as defined in section 220.73 of the penal law, unlawful manufac-
     5  ture of methamphetamine in the  second  degree  as  defined  in  section
     6  220.74  of the penal law, unlawful manufacture of methamphetamine in the
     7  first degree as defined in section 220.75 of  the  penal  law,  unlawful
     8  disposal  of  methamphetamine  laboratory material as defined in section
     9  220.76 of the penal law, operating as a major trafficker as  defined  in
    10  section  220.77  of  the penal law, [criminal possession of marihuana in
    11  the first degree as defined in section 221.30 of the penal law, criminal
    12  sale of marihuana in the first degree as defined in  section  221.55  of
    13  the  penal  law,]  promoting gambling in the second degree as defined in
    14  section 225.05 of the penal law, promoting gambling in the first  degree
    15  as  defined  in  section 225.10 of the penal law, possession of gambling
    16  records in the second degree as defined in section 225.15 of  the  penal
    17  law,  possession  of  gambling records in the first degree as defined in
    18  section 225.20 of the penal law, and possession of a gambling device  as
    19  defined in section 225.30 of the penal law;
    20    § 26. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
    21  9  of  section  1310 of the civil practice law and rules, paragraphs (b)
    22  and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
    23  and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
    24  are amended to read as follows:
    25    (b) on three or more occasions, engaging  in  conduct  constituting  a
    26  violation  of  any  of  the  felonies defined in section 220.09, 220.16,
    27  220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] or 220.43 [or  221.55]
    28  of  the  penal law, which violations do not constitute a single criminal
    29  offense as defined in subdivision one of section 40.10 of  the  criminal
    30  procedure law, or a single criminal transaction, as defined in paragraph
    31  (a)  of  subdivision two of section 40.10 of the criminal procedure law,
    32  and at least one of which resulted in a conviction of such  offense,  or
    33  where  the  accusatory  instrument charges one or more of such felonies,
    34  conviction upon a plea of guilty to a felony  for  which  such  plea  is
    35  otherwise authorized by law; or
    36    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    37  220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
    38  nal  defendant  for  a violation of section 221.30 of the penal law,] or
    39  where the accusatory instrument charges any such felony, conviction upon
    40  a plea of guilty to a felony for which the plea is otherwise  authorized
    41  by  law,  together with evidence which: (i) provides substantial indicia
    42  that the defendant used the real property  to  engage  in  a  continual,
    43  ongoing  course  of  conduct involving the unlawful mixing, compounding,
    44  manufacturing, warehousing, or packaging of  controlled  substances  [or
    45  where  the  conviction is for a violation of section 221.30 of the penal
    46  law, marijuana,] as part of an illegal trade or business for  gain;  and
    47  (ii) establishes, where the conviction is for possession of a controlled
    48  substance  [or where the conviction is for a violation of section 221.30
    49  of the penal law, marijuana], that such possession was with  the  intent
    50  to sell it.
    51    [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
    52  article two hundred twenty or section 221.30  or  221.55  of  the  penal
    53  law.]
    54    9.  "Criminal defendant" means a person who has criminal liability for
    55  a crime defined in [subdivisions] subdivision five [and six  hereof]  of
    56  this  section.  For  purposes  of  this  article,  a person has criminal

        S. 1527--A                         82

     1  liability when [(a)] he has been convicted of a post-conviction  forfei-
     2  ture  crime[, or (b) the claiming authority proves by clear and convinc-
     3  ing evidence that such person has committed an act in violation of arti-
     4  cle two hundred twenty or section 221.30 or 221.55 of the penal law].
     5    §  27.  Subdivision 13 of section 89-f of the general business law, as
     6  added by chapter 336 of the laws of 1992, is amended to read as follows:
     7    13. "Serious offense" shall mean any  felony  involving  the  offenses
     8  enumerated  in  the  closing  paragraph  of this subdivision; a criminal
     9  solicitation of or a conspiracy to commit or an attempt to commit  or  a
    10  criminal  facilitation  of a felony involving the offenses enumerated in
    11  the closing paragraph of this subdivision, which criminal  solicitation,
    12  conspiracy, attempt or criminal facilitation itself constitutes a felony
    13  or  any  offense  in  any  other jurisdiction which if committed in this
    14  state would constitute a felony; any offense in any  other  jurisdiction
    15  which if committed in this state would constitute a felony provided that
    16  for the purposes of this article, none of the following shall be consid-
    17  ered  criminal  convictions  or  reported  as such: (i) a conviction for
    18  which an executive pardon has been issued pursuant to the executive law;
    19  (ii) a conviction which has been vacated  and  replaced  by  a  youthful
    20  offender  finding pursuant to article seven hundred twenty of the crimi-
    21  nal procedure law, or the applicable provisions  of  law  of  any  other
    22  jurisdiction;  or  (iii)  a  conviction  the  records of which have been
    23  sealed pursuant to the applicable provisions of the laws of  this  state
    24  or  of  any  other  jurisdiction;  and (iv) a conviction for which other
    25  evidence of successful rehabilitation to remove the disability has  been
    26  issued.
    27    Felonies involving: assault, aggravated assault and reckless endanger-
    28  ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
    29  manslaughter and murder pursuant to article one hundred twenty-five; sex
    30  offenses pursuant to article one hundred thirty; unlawful  imprisonment,
    31  kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
    32  criminal trespass and burglary pursuant to article  one  hundred  forty;
    33  criminal  mischief,  criminal  tampering  and  tampering with a consumer
    34  product pursuant to article one hundred forty-five;  arson  pursuant  to
    35  article one hundred fifty; larceny and offenses involving theft pursuant
    36  to article one hundred fifty-five; offenses involving computers pursuant
    37  to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
    38  hundred sixty; criminal possession of stolen property pursuant to  arti-
    39  cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
    40  article one hundred seventy; involving false written statements pursuant
    41  to article one hundred seventy-five; commercial bribing  and  commercial
    42  bribe  receiving pursuant to article one hundred eighty; criminal imper-
    43  sonation and scheme to defraud pursuant to article one  hundred  ninety;
    44  bribery involving public servants and related offenses pursuant to arti-
    45  cle  two  hundred;  perjury and related offenses pursuant to article two
    46  hundred ten; tampering with a witness, intimidating a victim or  witness
    47  and  tampering  with  physical  evidence pursuant to article two hundred
    48  fifteen; criminal possession  of  a  controlled  substance  pursuant  to
    49  sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
    50  controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
    51  220.41,  220.43  and  220.44;  [criminal] unlicensed sale of [marijuana]
    52  cannabis in the first degree pursuant to [sections  221.45,  221.50  and
    53  221.55]  section 222.30; riot in the first degree, aggravated harassment
    54  in the first degree, criminal nuisance in the first degree  and  falsely
    55  reporting  an incident in the second or first degree pursuant to article

        S. 1527--A                         83
 
     1  two hundred forty; and crimes against public safety pursuant to  article
     2  two hundred sixty-five of the penal law.
     3    §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
     4  business law is REPEALED.
     5    § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
     6  business  law, as amended by chapter 812 of the laws of 1980, is amended
     7  to read as follows:
     8    (h) Objects, used or designed for the purpose of ingesting,  inhaling,
     9  or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
    10  into the human body.
    11    § 30. Subdivision 7 of section 995 of the executive law, as amended by
    12  chapter 19 of the laws of 2012, is amended to read as follows:
    13    7.  "Designated  offender"  means  a  person  convicted  of any felony
    14  defined in any chapter of the laws  of  the  state  or  any  misdemeanor
    15  defined  in  the  penal  law  [except that where the person is convicted
    16  under section 221.10 of the penal law, only  a  person  convicted  under
    17  subdivision two of such section, or a person convicted under subdivision
    18  one  of  such  section  who  stands previously convicted of any crime as
    19  defined in subdivision six of section 10.00 of the penal law].
    20    § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
    21  penal law, paragraph (b) as amended by section 31 of part AAA of chapter
    22  56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
    23  laws of 1990, are amended to read as follows:
    24    (b) three or more violations of any of the felonies defined in section
    25  220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
    26  220.43[,] or 220.77[, or 221.55] of this chapter,  which  violations  do
    27  not  constitute  a single criminal offense as defined in subdivision one
    28  of section 40.10 of the criminal procedure law,  or  a  single  criminal
    29  transaction,  as  defined in paragraph (a) of subdivision two of section
    30  40.10 of the criminal procedure law, and at least one of which  resulted
    31  in  a  conviction  of  such  offense, or where the accusatory instrument
    32  charges one or more of such felonies, conviction upon a plea  of  guilty
    33  to a felony for which such plea is otherwise authorized by law; or
    34    (c)  a  conviction  of  a  person  for  a violation of section 220.09,
    35  220.16, 220.34[,] or 220.39[, or 221.30] of this chapter, or  where  the
    36  accusatory instrument charges any such felony, conviction upon a plea of
    37  guilty  to  a  felony for which the plea is otherwise authorized by law,
    38  together with evidence which: (i) provides substantial indicia that  the
    39  defendant  used  the  real  property  to  engage in a continual, ongoing
    40  course of conduct involving the unlawful mixing,  compounding,  manufac-
    41  turing, warehousing, or packaging of controlled substances [or where the
    42  conviction  is  for a violation of section 221.30 of this chapter, mari-
    43  juana] as part of an illegal trade or business for gain; and (ii) estab-
    44  lishes, where the conviction is for possession of a controlled substance
    45  [or where the conviction is for a violation of section  221.30  of  this
    46  chapter,  marijuana],  that  such possession was with the intent to sell
    47  it.
    48    § 32. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
    49  and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
    50  amended to read as follows:
    51    (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
    52  subdivision one and subparagraph (i) of paragraph (c) of subdivision two
    53  of  this  section  that  result in disqualification for a period of five
    54  years shall include a conviction under sections 100.10, 105.13,  115.05,
    55  120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
    56  125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,

        S. 1527--A                         84
 
     1  140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
     2  220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
     3  230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
     4  235.06,  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision two of
     5  section 260.20 and sections  260.25,  265.02,  265.03,  265.08,  265.09,
     6  265.10,  265.12,  265.35 of the penal law or an attempt to commit any of
     7  the aforesaid offenses under section 110.00 of the  penal  law,  or  any
     8  similar  offenses  committed under a former section of the penal law, or
     9  any offenses committed under a former section of  the  penal  law  which
    10  would  constitute violations of the aforesaid sections of the penal law,
    11  or any offenses committed outside  this  state  which  would  constitute
    12  violations of the aforesaid sections of the penal law.
    13    §  33.  The  opening  paragraph  of  paragraph (a) of subdivision 2 of
    14  section 1194 of the vehicle and traffic law, as amended by  chapter  196
    15  of the laws of 1996, is amended to read as follows:
    16    When authorized. Any person who operates a motor vehicle in this state
    17  shall  be deemed to have given consent to a chemical test of one or more
    18  of the following:   breath, blood[,] or  urine[,  or  saliva,]  for  the
    19  purpose  of  determining  the  alcoholic and/or drug content, other than
    20  cannabis content  including  but  not  limited  to  tetrahydrocannabinol
    21  content,  of  the blood provided that such test is administered by or at
    22  the direction of a police officer with respect to  a  chemical  test  of
    23  breath,  urine [or saliva] or, with respect to a chemical test of blood,
    24  at the direction of a police officer:
    25    § 34. The article heading of article 20-B of the tax law, as added  by
    26  chapter 90 of the laws of 2014, is amended to read as follows:
    27                                 ARTICLE 20-B
    28                 EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
    29    §  35.  Subdivision  1  of section 171-a of the tax law, as amended by
    30  section 3 of part XX of chapter 59 of the laws of 2019,  is  amended  to
    31  read as follows:
    32    1.  All  taxes,  interest, penalties and fees collected or received by
    33  the commissioner or the commissioner's duly authorized agent under arti-
    34  cles nine (except section one hundred eighty-two-a thereof and except as
    35  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    36  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    37  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    38  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    39  (except as otherwise provided in section four hundred eighty-two  there-
    40  of),  twenty-B, twenty-C, twenty-D, twenty-one, twenty-two, twenty-four,
    41  twenty-six, twenty-eight (except as otherwise provided in section eleven
    42  hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
    43  nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
    44  hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
    45  chapter  shall  be  deposited daily in one account with such responsible
    46  banks, banking houses or trust companies as may  be  designated  by  the
    47  comptroller,  to  the  credit of the comptroller. Such an account may be
    48  established in one or more of such depositories. Such deposits shall  be
    49  kept  separate  and  apart from all other money in the possession of the
    50  comptroller. The comptroller shall require adequate  security  from  all
    51  such depositories. Of the total revenue collected or received under such
    52  articles  of  this  chapter,  the  comptroller shall retain in the comp-
    53  troller's hands such amount as the  commissioner  may  determine  to  be
    54  necessary  for  refunds  or  reimbursements  under such articles of this
    55  chapter out of which amount the comptroller shall  pay  any  refunds  or
    56  reimbursements to which taxpayers shall be entitled under the provisions

        S. 1527--A                         85
 
     1  of  such  articles of this chapter. The commissioner and the comptroller
     2  shall maintain a system  of  accounts  showing  the  amount  of  revenue
     3  collected  or  received from each of the taxes imposed by such articles.
     4  The  comptroller,  after  reserving  the  amount  to pay such refunds or
     5  reimbursements, shall, on or before the tenth day  of  each  month,  pay
     6  into  the  state  treasury to the credit of the general fund all revenue
     7  deposited under this section during the  preceding  calendar  month  and
     8  remaining  to the comptroller's credit on the last day of such preceding
     9  month, (i) except that the comptroller shall pay to the state department
    10  of social services that amount of overpayments of tax imposed by article
    11  twenty-two of this chapter and the interest  on  such  amount  which  is
    12  certified  to  the  comptroller  by the commissioner as the amount to be
    13  credited against past-due support pursuant to subdivision six of section
    14  one hundred seventy-one-c of this article,  (ii)  and  except  that  the
    15  comptroller  shall  pay  to the New York state higher education services
    16  corporation and the state university of New York or the city  university
    17  of  New  York respectively that amount of overpayments of tax imposed by
    18  article twenty-two of this chapter and the interest on such amount which
    19  is certified to the comptroller by the commissioner as the amount to  be
    20  credited  against  the  amount  of  defaults  in repayment of guaranteed
    21  student loans and state university loans or city university loans pursu-
    22  ant to subdivision five of section one hundred seventy-one-d and  subdi-
    23  vision  six  of section one hundred seventy-one-e of this article, (iii)
    24  and except further that, notwithstanding any law, the comptroller  shall
    25  credit   to   the   revenue   arrearage  account,  pursuant  to  section
    26  ninety-one-a of the state finance law, that amount of overpayment of tax
    27  imposed by article nine, nine-A, twenty-two, thirty, thirty-A,  thirty-B
    28  or  thirty-three  of  this  chapter,  and any interest thereon, which is
    29  certified to the comptroller by the commissioner as  the  amount  to  be
    30  credited  against  a  past-due  legally enforceable debt owed to a state
    31  agency pursuant to paragraph (a)  of  subdivision  six  of  section  one
    32  hundred seventy-one-f of this article, provided, however, he shall cred-
    33  it  to the special offset fiduciary account, pursuant to section ninety-
    34  one-c of the state finance law, any such amount creditable as a  liabil-
    35  ity  as  set  forth  in  paragraph (b) of subdivision six of section one
    36  hundred seventy-one-f of this article, (iv) and except further that  the
    37  comptroller shall pay to the city of New York that amount of overpayment
    38  of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
    39  thirty-B or thirty-three of this chapter and any interest  thereon  that
    40  is  certified to the comptroller by the commissioner as the amount to be
    41  credited against city of New York tax warrant judgment debt pursuant  to
    42  section  one  hundred  seventy-one-l  of  this  article,  (v) and except
    43  further that the comptroller shall pay to a  non-obligated  spouse  that
    44  amount of overpayment of tax imposed by article twenty-two of this chap-
    45  ter  and the interest on such amount which has been credited pursuant to
    46  section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
    47  hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
    48  ty-one-l of this article and which is certified to  the  comptroller  by
    49  the commissioner as the amount due such non-obligated spouse pursuant to
    50  paragraph six of subsection (b) of section six hundred fifty-one of this
    51  chapter;  and  (vi) the comptroller shall deduct a like amount which the
    52  comptroller shall pay into the treasury to the  credit  of  the  general
    53  fund  from  amounts  subsequently  payable  to  the department of social
    54  services, the state university of New York, the city university  of  New
    55  York,  or  the  higher  education  services  corporation, or the revenue
    56  arrearage account  or  special  offset  fiduciary  account  pursuant  to

        S. 1527--A                         86
 
     1  section  ninety-one-a  or  ninety-one-c of the state finance law, as the
     2  case may be, whichever had been credited the amount originally  withheld
     3  from  such  overpayment,  and  (vii)  with respect to amounts originally
     4  withheld  from such overpayment pursuant to section one hundred seventy-
     5  one-l of this article and paid to the city of New York, the  comptroller
     6  shall collect a like amount from the city of New York.
     7    §  36.  Subdivision  1  of section 171-a of the tax law, as amended by
     8  section 4 of part XX of chapter 59 of the laws of 2019,  is  amended  to
     9  read as follows:
    10    1.  All  taxes,  interest, penalties and fees collected or received by
    11  the commissioner or the commissioner's duly authorized agent under arti-
    12  cles nine (except section one hundred eighty-two-a thereof and except as
    13  otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
    14  twelve-A  (except  as  otherwise provided in section two hundred eighty-
    15  four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
    16  section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
    17  (except as otherwise provided in section four hundred eighty-two  there-
    18  of),  twenty-C,  twenty-D,  twenty-one, twenty-two, twenty-four, twenty-
    19  six, twenty-eight  (except  as  otherwise  provided  in  section  eleven
    20  hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
    21  nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
    22  hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
    23  chapter shall be deposited daily in one account  with  such  responsible
    24  banks,  banking  houses  or  trust companies as may be designated by the
    25  comptroller, to the credit of the comptroller. Such an  account  may  be
    26  established  in one or more of such depositories. Such deposits shall be
    27  kept separate and apart from all other money in the  possession  of  the
    28  comptroller.  The  comptroller  shall require adequate security from all
    29  such depositories. Of the total revenue collected or received under such
    30  articles of this chapter, the comptroller  shall  retain  in  the  comp-
    31  troller's  hands  such  amount  as  the commissioner may determine to be
    32  necessary for refunds or reimbursements  under  such  articles  of  this
    33  chapter  out  of  which  amount the comptroller shall pay any refunds or
    34  reimbursements to which taxpayers shall be entitled under the provisions
    35  of such articles of this chapter. The commissioner and  the  comptroller
    36  shall  maintain  a  system  of  accounts  showing  the amount of revenue
    37  collected or received from each of the taxes imposed by  such  articles.
    38  The  comptroller,  after  reserving  the  amount  to pay such refunds or
    39  reimbursements, shall, on or before the tenth day  of  each  month,  pay
    40  into  the  state  treasury to the credit of the general fund all revenue
    41  deposited under this section during the  preceding  calendar  month  and
    42  remaining  to the comptroller's credit on the last day of such preceding
    43  month, (i) except that the comptroller shall pay to the state department
    44  of social services that amount of overpayments of tax imposed by article
    45  twenty-two of this chapter and the interest  on  such  amount  which  is
    46  certified  to  the  comptroller  by the commissioner as the amount to be
    47  credited against past-due support pursuant to subdivision six of section
    48  one hundred seventy-one-c of this article,  (ii)  and  except  that  the
    49  comptroller  shall  pay  to the New York state higher education services
    50  corporation and the state university of New York or the city  university
    51  of  New  York respectively that amount of overpayments of tax imposed by
    52  article twenty-two of this chapter and the interest on such amount which
    53  is certified to the comptroller by the commissioner as the amount to  be
    54  credited  against  the  amount  of  defaults  in repayment of guaranteed
    55  student loans and state university loans or city university loans pursu-
    56  ant to subdivision five of section one hundred seventy-one-d and  subdi-

        S. 1527--A                         87
 
     1  vision  six  of section one hundred seventy-one-e of this article, (iii)
     2  and except further that, notwithstanding any law, the comptroller  shall
     3  credit   to   the   revenue   arrearage  account,  pursuant  to  section
     4  ninety-one-a of the state finance law, that amount of overpayment of tax
     5  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
     6  or thirty-three of this chapter, and  any  interest  thereon,  which  is
     7  certified  to  the  comptroller  by the commissioner as the amount to be
     8  credited against a past-due legally enforceable debt  owed  to  a  state
     9  agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
    10  hundred seventy-one-f of this article, provided, however, he shall cred-
    11  it to the special offset fiduciary account, pursuant to section  ninety-
    12  one-c  of the state finance law, any such amount creditable as a liabil-
    13  ity as set forth in paragraph (b) of  subdivision  six  of  section  one
    14  hundred  seventy-one-f of this article, (iv) and except further that the
    15  comptroller shall pay to the city of New York that amount of overpayment
    16  of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
    17  thirty-B  or  thirty-three of this chapter and any interest thereon that
    18  is certified to the comptroller by the commissioner as the amount to  be
    19  credited  against city of New York tax warrant judgment debt pursuant to
    20  section one hundred  seventy-one-l  of  this  article,  (v)  and  except
    21  further  that  the  comptroller shall pay to a non-obligated spouse that
    22  amount of overpayment of tax imposed by article twenty-two of this chap-
    23  ter and the interest on such amount which has been credited pursuant  to
    24  section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
    25  hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
    26  ty-one-l  of  this  article and which is certified to the comptroller by
    27  the commissioner as the amount due such non-obligated spouse pursuant to
    28  paragraph six of subsection (b) of section six hundred fifty-one of this
    29  chapter; and (vi) the comptroller shall deduct a like amount  which  the
    30  comptroller  shall  pay  into  the treasury to the credit of the general
    31  fund from amounts subsequently  payable  to  the  department  of  social
    32  services,  the  state university of New York, the city university of New
    33  York, or the higher  education  services  corporation,  or  the  revenue
    34  arrearage  account  or  special  offset  fiduciary  account  pursuant to
    35  section ninety-one-a or ninety-one-c of the state finance  law,  as  the
    36  case  may be, whichever had been credited the amount originally withheld
    37  from such overpayment, and (vii)  with  respect  to  amounts  originally
    38  withheld  from such overpayment pursuant to section one hundred seventy-
    39  one-l of this article and paid to the city of New York, the  comptroller
    40  shall collect a like amount from the city of New York.
    41    §  37.  Section 490 of the tax law, as added by chapter 90 of the laws
    42  of 2014, is amended to read as follows:
    43    § 490. [Definitions] Excise tax on medical  cannabis.    1.  (a)  [All
    44  definitions  of terms applicable to title five-A of article thirty-three
    45  of the public health law shall apply to this article.] For  purposes  of
    46  this  article,  the terms "medical cannabis," "registered organization,"
    47  "certified patient," and "designated  caregiver"  shall  have  the  same
    48  definitions as in section three of the cannabis law.
    49    (b)  As used in this section, where not otherwise specifically defined
    50  and unless a different meaning is clearly required "gross receipt" means
    51  the amount received in or by reason of any sale, conditional  or  other-
    52  wise, of medical [marihuana] cannabis or in or by reason of the furnish-
    53  ing of medical [marihuana] cannabis from the sale of medical [marihuana]
    54  cannabis provided by a registered organization to a certified patient or
    55  designated caregiver.  Gross receipt is expressed in money, whether paid
    56  in  cash,  credit or property of any kind or nature, and shall be deter-

        S. 1527--A                         88
 
     1  mined without any deduction therefrom on account  of  the  cost  of  the
     2  service  sold  or the cost of materials, labor or services used or other
     3  costs, interest or discount paid,  or  any  other  expenses  whatsoever.
     4  "Amount received" for the purpose of the definition of gross receipt, as
     5  the term gross receipt is used throughout this article, means the amount
     6  charged for the provision of medical [marihuana] cannabis.
     7    2.  There  is  hereby imposed an excise tax on the gross receipts from
     8  the sale of medical [marihuana] cannabis by a registered organization to
     9  a certified patient or designated caregiver, to be paid  by  the  regis-
    10  tered  organization,  at  the  rate of seven percent. The tax imposed by
    11  this article shall be charged against and  be  paid  by  the  registered
    12  organization and shall not be added as a separate charge or line item on
    13  any sales slip, invoice, receipt or other statement or memorandum of the
    14  price given to the retail customer.
    15    3.  The  commissioner  may  make,  adopt and amend rules, regulations,
    16  procedures and forms necessary for the  proper  administration  of  this
    17  article.
    18    4. Every registered organization that makes sales of medical [marihua-
    19  na]  cannabis  subject  to  the tax imposed by this article shall, on or
    20  before the twentieth date of each month, file with  the  commissioner  a
    21  return  on  forms  to  be  prescribed  by  the commissioner, showing its
    22  receipts from the retail sale of medical [marihuana] cannabis during the
    23  preceding calendar month and the amount of tax due thereon. Such returns
    24  shall contain such further information as the commissioner may  require.
    25  Every  registered  organization  required  to  file  a return under this
    26  section shall, at the time of filing such return, pay to the commission-
    27  er the total amount of tax due on its retail sales of medical  [marihua-
    28  na]  cannabis  for the period covered by such return. If a return is not
    29  filed when due, the tax shall be due on the day on which the  return  is
    30  required to be filed.
    31    5.  Whenever the commissioner shall determine that any moneys received
    32  under the provisions of this article were paid in error,  he  may  cause
    33  the  same  to  be refunded, with interest, in accordance with such rules
    34  and regulations as he may prescribe, except that no  interest  shall  be
    35  allowed  or  paid  if  the amount thereof would be less than one dollar.
    36  Such interest shall be at the overpayment rate set by  the  commissioner
    37  pursuant  to subdivision twenty-sixth of section one hundred seventy-one
    38  of this chapter, or if no rate is set, at the rate of  six  percent  per
    39  annum,  from  the  date when the tax, penalty or interest to be refunded
    40  was paid to a date preceding the date of the refund check  by  not  more
    41  than  thirty  days.  Provided,  however,  that  for the purposes of this
    42  subdivision, any tax paid before the last day prescribed for its payment
    43  shall be deemed to have been paid on such last day. Such moneys received
    44  under the provisions of this article which the commissioner shall deter-
    45  mine were paid in error, may be refunded out of funds in the custody  of
    46  the  comptroller  to  the  credit  of such taxes provided an application
    47  therefor is filed with the commissioner within two years from  the  time
    48  the erroneous payment was made.
    49    6.  The provisions of article twenty-seven of this chapter shall apply
    50  to the tax imposed by this article in the same manner and with the  same
    51  force  and  effect  as if the language of such article had been incorpo-
    52  rated in full into this section and had expressly referred  to  the  tax
    53  imposed by this article, except to the extent that any provision of such
    54  article  is  either  inconsistent with a provision of this article or is
    55  not relevant to this article.

        S. 1527--A                         89
 
     1    7. All taxes, interest and penalties  collected  or  received  by  the
     2  commissioner  under  this  article  shall  be  deposited and disposed of
     3  pursuant to the provisions of section one hundred seventy-one-a of  this
     4  chapter,  provided that an amount equal to one hundred percent collected
     5  under  this article less any amount determined by the commissioner to be
     6  reserved by the comptroller for refunds or reimbursements shall be  paid
     7  by  the  comptroller  to  the credit of the medical [marihuana] cannabis
     8  trust fund established by section eighty-nine-h  of  the  state  finance
     9  law.
    10    8. A registered organization that dispenses medical [marihuana] canna-
    11  bis  shall  provide  to  the department information on where the medical
    12  [marihuana] cannabis was dispensed and  where  the  medical  [marihuana]
    13  cannabis was manufactured. A registered organization that obtains [mari-
    14  huana]  cannabis  from another registered organization shall obtain from
    15  such registered organization information on where the medical  [marihua-
    16  na] cannabis was manufactured.
    17    §  38.  Section 491 of the tax law, as added by chapter 90 of the laws
    18  of 2014, subdivision 1 as amended by section 1 of part II of chapter  60
    19  of the laws of 2016, is amended to read as follows:
    20    § 491. Returns to be secret. 1. Except in accordance with proper judi-
    21  cial  order or as in this section or otherwise provided by law, it shall
    22  be unlawful for the commissioner, any officer or employee of the depart-
    23  ment, or any officer or person who, pursuant to this section, is permit-
    24  ted to inspect any return or report or to whom a copy, an abstract or  a
    25  portion of any return or report is furnished, or to whom any information
    26  contained in any return or report is furnished, or any person engaged or
    27  retained  by  such  department  on  an independent contract basis or any
    28  person who in any manner may acquire knowledge  of  the  contents  of  a
    29  return or report filed pursuant to this article to divulge or make known
    30  in  any  manner  the  contents  or any other information relating to the
    31  business of a distributor, owner or other person contained in any return
    32  or report required under this article. The  officers  charged  with  the
    33  custody  of such returns or reports shall not be required to produce any
    34  of them or evidence of anything contained  in  them  in  any  action  or
    35  proceeding  in  any  court,  except  on  behalf of the state, [the state
    36  department of health] office of cannabis management, or the commissioner
    37  in an action or proceeding under the provisions of this  chapter  or  on
    38  behalf  of the state or the commissioner in any other action or proceed-
    39  ing involving the collection of a tax due under this  chapter  to  which
    40  the  state  or the commissioner is a party or a claimant or on behalf of
    41  any party to any action or proceeding under the provisions of this arti-
    42  cle, when the returns or the reports or  the  facts  shown  thereby  are
    43  directly  involved  in  such  action  or  proceeding, or in an action or
    44  proceeding relating to the regulation or taxation of medical [marihuana]
    45  cannabis on behalf of officers  to  whom  information  shall  have  been
    46  supplied as provided in subdivision two of this section, in any of which
    47  events  the  court  may  require  the  production  of,  and may admit in
    48  evidence so much of said returns or reports or of the facts shown there-
    49  by as are pertinent to the action or proceeding  and  no  more.  Nothing
    50  herein  shall  be  construed to prohibit the commissioner, in his or her
    51  discretion, from allowing the inspection or delivery of a certified copy
    52  of any return or report filed under this article or of  any  information
    53  contained  in any such return or report by or to a duly authorized offi-
    54  cer or employee of the [state department of health] office  of  cannabis
    55  management;  or  by  or to the attorney general or other legal represen-
    56  tatives of the state when an  action  shall  have  been  recommended  or

        S. 1527--A                         90
 
     1  commenced  pursuant  to this chapter in which such returns or reports or
     2  the facts shown thereby are directly involved; or the inspection of  the
     3  returns  or  reports  required  under this article by the comptroller or
     4  duly designated officer or employee of the state department of audit and
     5  control,  for  purposes  of  the  audit of a refund of any tax paid by a
     6  registered organization or other  person  under  this  article;  nor  to
     7  prohibit the delivery to a registered organization, or a duly authorized
     8  representative  of such registered organization, a certified copy of any
     9  return or report filed by such registered organization pursuant to  this
    10  article,  nor to prohibit the publication of statistics so classified as
    11  to prevent the identification of particular returns or reports  and  the
    12  items  thereof. This section shall also not be construed to prohibit the
    13  disclosure, for tax administration purposes,  to  the  division  of  the
    14  budget  and  the  office of the state comptroller, of information aggre-
    15  gated from the returns filed by all the registered organizations  making
    16  sales  of, or manufacturing, medical [marihuana] cannabis in a specified
    17  county, whether the number of such registered organizations  is  one  or
    18  more.  Provided  further  that,  notwithstanding  the provisions of this
    19  subdivision, the commissioner may, in his or her discretion, permit  the
    20  proper  officer of any county entitled to receive an allocation, follow-
    21  ing appropriation by the  legislature,  pursuant  to  this  article  and
    22  section eighty-nine-h of the state finance law, or the authorized repre-
    23  sentative  of such officer, to inspect any return filed under this arti-
    24  cle, or may furnish to such officer or the officer's  authorized  repre-
    25  sentative  an abstract of any such return or supply such officer or such
    26  representative with information concerning an item contained in any such
    27  return, or disclosed by any investigation of tax  liability  under  this
    28  article.
    29    2.  The  commissioner,  in  his or her discretion and pursuant to such
    30  rules and regulations as he or she may adopt, may  permit  [the  commis-
    31  sioner  of  internal  revenue  of the United States, or] the appropriate
    32  officers of any other state which regulates or taxes medical [marihuana]
    33  cannabis, or the duly authorized representatives of  such  [commissioner
    34  or of any such] officers, to inspect returns or reports made pursuant to
    35  this  article,  or may furnish to such [commissioner or] other officers,
    36  or duly authorized representatives, a copy of any such return or  report
    37  or  an  abstract  of  the  information therein contained, or any portion
    38  thereof, or may supply [such commissioner or] any such officers or  such
    39  representatives  with  information  relating to the business of a regis-
    40  tered organization making returns or reports hereunder. The commissioner
    41  may refuse to supply information pursuant to this  subdivision  [to  the
    42  commissioner  of  internal revenue of the United States or] to the offi-
    43  cers of any other state if the statutes [of the United  States,  or]  of
    44  the state represented by such officers, do not grant substantially simi-
    45  lar privileges to the commissioner, but such refusal shall not be manda-
    46  tory. Information shall not be supplied to [the commissioner of internal
    47  revenue  of  the United States or] the appropriate officers of any other
    48  state which regulates or taxes medical [marihuana] cannabis, or the duly
    49  authorized representatives [of such commissioner  or]  of  any  of  such
    50  officers,  unless  such [commissioner,] officer or other representatives
    51  shall agree not to divulge or make known in any manner  the  information
    52  so  supplied,  but  such officers may transmit such information to their
    53  employees or legal representatives when necessary, who in turn shall  be
    54  subject  to  the  same  restrictions  as  those hereby imposed upon such
    55  [commissioner,] officer or other representatives.

        S. 1527--A                         91
 
     1    3. (a) Any officer or employee of the state who willfully violates the
     2  provisions of subdivision one or two of this section shall be  dismissed
     3  from  office and be incapable of holding any public office in this state
     4  for a period of five years thereafter.
     5    (b)  Cross-reference: For criminal penalties, see article thirty-seven
     6  of this chapter.
     7    § 39. The tax law is amended by adding a new article 20-C to  read  as
     8  follows:
 
     9                                ARTICLE 20-C
    10                     TAX ON ADULT-USE CANNABIS PRODUCTS
    11  Section 492. Definitions.
    12          493. Tax on cannabis.
    13          494. Registration and renewal.
    14          495. Returns and payment of tax.
    15          496. Returns to be kept secret.
    16    §  492. Definitions. For purposes of this article, the following defi-
    17  nitions shall apply:
    18    (a) "Cannabis" means all parts of  a  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. For purposes
    22  of this article, cannabis does not  include  medical  cannabis  or  hemp
    23  cannabis as defined in section three of the cannabis law.
    24    (b)  "Cannabis flower" means the flower of a plant of the genus canna-
    25  bis that has been harvested, dried, and cured, and prior to any process-
    26  ing whereby the  plant  material  is  transformed  into  a  concentrate,
    27  including,  but  not  limited to, concentrated cannabis, or an edible or
    28  topical product containing cannabis or concentrated cannabis  and  other
    29  ingredients. Cannabis flower excludes leaves and stem.
    30    (c)  "Cannabis  trim" means all parts of a plant of the genus cannabis
    31  other than cannabis flowers that have been harvested, dried, and  cured,
    32  and  prior  to  any processing whereby the plant material is transformed
    33  into a concentrate, including, but not limited to,  concentrated  canna-
    34  bis,  or  an  edible  or  topical  product containing cannabis and other
    35  ingredients.
    36    (d) "Cannabis product" or "adult use cannabis" means a cannabis  prod-
    37  uct  as  defined  in  section three of the cannabis law. For purposes of
    38  this article, under no circumstances shall  adult-use  cannabis  product
    39  include medical cannabis or hemp cannabis as defined in section three of
    40  the cannabis law.
    41    (e)  "Person"  means  every individual, partnership, limited liability
    42  company, society, association, joint stock company, corporation, estate,
    43  receiver, trustee, assignee, referee, and any other person acting  in  a
    44  fiduciary  or  representative  capacity, whether appointed by a court or
    45  otherwise, and any combination of the foregoing.
    46    (f) "Wholesaler" means any person that sells  or  transfers  adult-use
    47  cannabis  products  to  a retail dispensary licensed pursuant to section
    48  seventy-two of the cannabis law. Where the cultivator  or  processor  is
    49  also  the  retail  dispensary, the retail dispensary shall be the whole-
    50  saler for purposes of this article.
    51    (g) "Cultivation" has the same meaning as described in subdivision two
    52  of section sixty-eight of the cannabis law.
    53    (h) "Retail dispensary" means a dispensary licensed to sell  adult-use
    54  cannabis products pursuant to section seventy-two of the cannabis law.

        S. 1527--A                         92
 
     1    (i)  "Transfer"  means  to  grant,  convey,  hand  over, assign, sell,
     2  exchange or barter, in any manner or  by  any  means,  with  or  without
     3  consideration.
     4    (j)  "Sale"  means any transfer of title, possession or both, exchange
     5  or barter, rental, lease or license to use or  consume,  conditional  or
     6  otherwise,  in any manner or by any means whatsoever for a consideration
     7  or any agreement therefor.
     8    (k) "Processor" has the same meaning as described in  subdivision  two
     9  of section sixty-nine of the cannabis law.
    10    §  493. Tax on cannabis. (a) There is hereby imposed and shall be paid
    11  a tax on the cultivation of cannabis flower and  cannabis  trim  at  the
    12  rate  of  one  dollar per dry-weight gram of cannabis flower and twenty-
    13  five cents per dry-weight gram of cannabis trim. Where the wholesaler is
    14  not the cultivator, such tax shall be collected from the  cultivator  by
    15  the  wholesaler  at  the  time such flower or trim is transferred to the
    16  wholesaler. Where the wholesaler is the cultivator, such  tax  shall  be
    17  paid  by the wholesaler and shall accrue at the time of sale or transfer
    18  to a retail dispensary.  Where the cultivator is also the retail dispen-
    19  sary, such tax shall accrue at the  time  of  the  sale  to  the  retail
    20  customer.
    21    (b) In addition to the tax imposed by subdivision (a) of this section,
    22  there is hereby imposed a tax on the sale or transfer by a wholesaler to
    23  a  retail  dispensary of adult-use cannabis products, to be paid by such
    24  wholesaler. Where the wholesaler is not the retail dispensary, such  tax
    25  shall  be  at the rate of twenty percent of the invoice price charged by
    26  the wholesaler to a retail dispensary, and shall accrue at the  time  of
    27  such sale. Where the wholesaler is the retail dispensary, such tax shall
    28  be  at  the  rate  of  twenty percent of the price charged to the retail
    29  customer and shall accrue at the time of such sale.
    30    (c) In addition to the taxes imposed by subdivisions (a)  and  (b)  of
    31  this section, there is hereby imposed a tax on the sale or transfer by a
    32  wholesaler  to  a  retail  dispensary of adult-use cannabis products, in
    33  trust for and on account of the county in which the retail dispensary is
    34  located. Such tax shall be paid by the wholesaler and  shall  accrue  at
    35  the  time  of such sale.  Where the wholesaler is not the retail dispen-
    36  sary, such tax shall be at the rate of two percent of the invoice  price
    37  charged  by  the wholesaler to a retail dispensary. Where the wholesaler
    38  is the retail dispensary, such tax shall be at the rate of  two  percent
    39  of the price charged to the retail customer.
    40    (d)  Notwithstanding  any  other provision of law to the contrary, the
    41  taxes imposed by article twenty of this chapter shall not apply  to  any
    42  product subject to tax under this article.
    43    §  494.  Registration and renewal. (a) Every wholesaler must file with
    44  the commissioner a properly completed application for a  certificate  of
    45  registration  before  engaging  in  business. In order to apply for such
    46  certificate of registration, such person must first be in possession  of
    47  a  valid  license from the office of cannabis management. An application
    48  for a certificate of registration must be submitted electronically, on a
    49  form prescribed by the commissioner, and must be accompanied by  a  non-
    50  refundable  application  fee  of  six  hundred dollars. A certificate of
    51  registration shall not  be  assignable  or  transferable  and  shall  be
    52  destroyed  immediately upon such person ceasing to do business as speci-
    53  fied in such certificate, or in  the  event  that  such  business  never
    54  commenced.
    55    (b)  The commissioner shall refuse to issue a certificate of registra-
    56  tion to any applicant and shall revoke the certificate  of  registration

        S. 1527--A                         93
 
     1  of  any such person who does not possess a valid license from the office
     2  of cannabis management. The commissioner may refuse to issue  a  certif-
     3  icate  of  registration to any applicant where such applicant: (1) has a
     4  past-due liability as that term is defined in section one hundred seven-
     5  ty-one-v  of  this  chapter;  (2)  has had a certificate of registration
     6  under this article, a license from the office of cannabis management, or
     7  any license or registration provided for in this chapter revoked  within
     8  one year from the date on which such application was filed; (3) has been
     9  convicted  of  a crime provided for in this chapter within one year from
    10  the date on which such application was filed of the certificate's  issu-
    11  ance;  (4)  willfully  fails to file a report or return required by this
    12  article; (5) willfully files, causes to be filed, gives or causes to  be
    13  given  a report, return, certificate or affidavit required by this arti-
    14  cle which is false; or (6) willfully  fails  to  collect  or  truthfully
    15  account for or pay over any tax imposed by this article.
    16    (c) A certificate of registration shall be valid for the period speci-
    17  fied  thereon,  unless earlier suspended or revoked. Upon the expiration
    18  of the term stated on a certificate of  registration,  such  certificate
    19  shall be null and void.
    20    (d)  Every  holder  of  a  certificate of registration must notify the
    21  commissioner of changes to any of the information stated on the  certif-
    22  icate, or of changes to any information contained in the application for
    23  the  certificate  of  registration. Such notification must be made on or
    24  before the last day of the month in which a change occurs  and  must  be
    25  made electronically on a form prescribed by the commissioner.
    26    (e)  Every  holder of a certificate of registration under this article
    27  shall be required to reapply prior  to  such  certificate's  expiration,
    28  during  a  reapplication  period  established  by the commissioner. Such
    29  reapplication period shall not occur  more  frequently  than  every  two
    30  years.  Such reapplication shall be subject to the same requirements and
    31  conditions, including grounds for refusal, as  an  initial  application,
    32  including the payment of the application fee.
    33    (f)  Penalties. A person to whom adult-use cannabis products have been
    34  transferred or who sells adult-use cannabis  products  without  a  valid
    35  certificate  of registration pursuant to subdivision (a) of this section
    36  shall be subject to a penalty of five hundred dollars for each month  or
    37  part  thereof  during  which  such person continues to possess adult-use
    38  cannabis products that have been transferred to such person or who sells
    39  such products after the expiration of the first month after  which  such
    40  person  operates  without  a  valid  certificate of registration, not to
    41  exceed ten thousand dollars in the aggregate.
    42    § 495. Returns and payment of tax. (a) 1. Every wholesaler  shall,  on
    43  or  before  the twentieth day of the month, file with the commissioner a
    44  return on forms to be prescribed by the commissioner, showing the  total
    45  weight  of  cannabis flower and cannabis trim subject to tax pursuant to
    46  subdivision (a) of section four hundred ninety-three of this article and
    47  the total amount of tax due thereon in the preceding calendar month, and
    48  the total amount of tax due under  subdivisions  (b)  and  (c)  of  such
    49  section  on its sales to a retail dispensary during the preceding calen-
    50  dar month, along with such other information  as  the  commissioner  may
    51  require.  Every  person  required  to  file  a return under this section
    52  shall, at the time of filing such return, pay to  the  commissioner  the
    53  total  amount  of  tax  due  for the period covered by such return. If a
    54  return is not filed when due, the tax shall be due on the day  on  which
    55  the return is required to be filed.

        S. 1527--A                         94
 
     1    2.  The  wholesaler  shall  maintain  such records in such form as the
     2  commissioner may require regarding such items as: where  the  wholesaler
     3  is  not  the  cultivator, the weight of the cannabis flower and cannabis
     4  trim transferred to it by a cultivator or, where the wholesaler  is  the
     5  cultivator,  the  weight  of  such  flower  and trim produced by it; the
     6  geographic location of every retail dispensary to which it  sold  adult-
     7  use  cannabis  products; and any other record or information required by
     8  the commissioner. This information must be kept by  such  person  for  a
     9  period of three years after the return was filed.
    10    (b) The provisions of article twenty-seven of this chapter shall apply
    11  to  the tax imposed by this article in the same manner and with the same
    12  force and effect as if the language of such article  had  been  incorpo-
    13  rated  in  full  into this section and had expressly referred to the tax
    14  imposed by this article, except to the extent that any provision of such
    15  article is either inconsistent with a provision of this  article  or  is
    16  not relevant to this article.
    17    (c) 1. All taxes, interest, and penalties collected or received by the
    18  commissioner  under  this  article  shall  be  deposited and disposed of
    19  pursuant to the provisions of section one hundred seventy-one-a of  this
    20  chapter,  provided that an amount equal to one hundred percent collected
    21  under this article less any amount determined by the commissioner to  be
    22  reserved  by the comptroller for refunds or reimbursements shall be paid
    23  by the comptroller to the credit of the  cannabis  revenue  fund  estab-
    24  lished  by section ninety-nine-hh of the state finance law. Of the total
    25  revenue collected or received under this article, the comptroller  shall
    26  retain such amount as the commissioner may determine to be necessary for
    27  refunds.  The commissioner is authorized and directed to deduct from the
    28  registration fees under subdivision (a) of section four hundred  ninety-
    29  four  of  this  article,  before  deposit into the cannabis revenue fund
    30  designated by the comptroller, a reasonable amount necessary to effectu-
    31  ate refunds of appropriations of the department to reimburse the depart-
    32  ment for the costs incurred to administer, collect, and  distribute  the
    33  taxes imposed by this article.
    34    2.  Notwithstanding  the  foregoing, the commissioner shall certify to
    35  the comptroller the total amount of tax, penalty and  interest  received
    36  by  him  or  her  on  account  of  the tax imposed by subdivision (c) of
    37  section four hundred ninety-three of this article in trust  for  and  on
    38  account  of  each  county in which a retail dispensary is located. On or
    39  before the twelfth day of each month, the comptroller,  after  reserving
    40  such  refund  fund,  shall pay to the appropriate fiscal officer of each
    41  such county the taxes, penalties and interest received and certified  by
    42  the commissioner for the preceding calendar month.
    43    § 496. Returns to be kept secret. (a) Except in accordance with proper
    44  judicial  order  or  as in this section or otherwise provided by law, it
    45  shall be unlawful for the commissioner, any officer or employee  of  the
    46  department,  or  any officer or person who, pursuant to this section, is
    47  permitted to inspect any return or report or to whom a copy, an abstract
    48  or a portion of any return or report is furnished, or to whom any infor-
    49  mation contained in any return or report is furnished, or any person who
    50  in any manner may acquire knowledge of  the  contents  of  a  return  or
    51  report  filed  pursuant  to this article to divulge or make known in any
    52  manner the content or any other information related to the  business  of
    53  the  wholesaler  contained  in  any return or report required under this
    54  article. The officers charged  with  the  custody  of  such  returns  or
    55  reports  shall  not  be  required  to produce any of them or evidence of
    56  anything contained in them in any action or  proceeding  in  any  court,

        S. 1527--A                         95
 
     1  except on behalf of the state, the office of cannabis management, or the
     2  commissioner  in an action or proceeding involving the collection of tax
     3  due under this chapter to which the state or the commissioner is a party
     4  or  a  claimant  or  on  behalf of any party to any action or proceeding
     5  under the provisions of this article, when the returns or the reports or
     6  the facts shown thereby are directly involved in such action or proceed-
     7  ing, or in an action or proceeding related to the regulation or taxation
     8  of adult-use cannabis products on behalf of officers to whom information
     9  shall have been supplied as provided in this section, in  any  of  which
    10  events  the  courts  may  require  the  production  of, and may admit in
    11  evidence so much of said returns or reports or of the facts shown there-
    12  by as are pertinent to the action or proceeding  and  no  more.  Nothing
    13  herein  shall  be  construed to prohibit the commissioner, in his or her
    14  discretion, from allowing the inspection or delivery of a certified copy
    15  of any return or report filed under this article or of  any  information
    16  contained  in any such return or report by or to a duly authorized offi-
    17  cer or employee of the office of cannabis management or  by  or  to  the
    18  attorney  general  or  other  legal representatives of the state when an
    19  action shall have been recommended or commenced pursuant to this chapter
    20  in which such returns or reports or the facts shown thereby are directly
    21  involved; or the inspection of the returns  or  reports  required  under
    22  this  article  by the comptroller or duly designated officer or employee
    23  of the state department of audit and control, for purposes of the  audit
    24  of a refund of any tax paid by the wholesaler under this article; nor to
    25  prohibit the delivery to such person or a duly authorized representative
    26  of  such  person, a certified copy of any return or report filed by such
    27  person pursuant to this article, nor  to  prohibit  the  publication  of
    28  statistics  so classified as to prevent the identification of particular
    29  returns or reports and the items thereof. This section shall also not be
    30  construed to prohibit the disclosure, for tax  administration  purposes,
    31  to  the  division of the budget and the office of the state comptroller,
    32  of information aggregated from the  returns  filed  by  all  wholesalers
    33  purchasing and selling such products in the state, whether the number of
    34  such  persons is one or more. Provided further that, notwithstanding the
    35  provisions of this subdivision, the  commissioner  may  in  his  or  her
    36  discretion,  permit the proper officer of any county entitled to receive
    37  any distribution of the monies received on account of the tax imposed by
    38  subdivision (c) of section four hundred ninety-three of this article, or
    39  the authorized representative of such officer,  to  inspect  any  return
    40  filed  under  this  article, or may furnish to such officer or the offi-
    41  cer's authorized representative an abstract of any such return or supply
    42  such officer or  representative  with  information  concerning  an  item
    43  contained  in  any such return, or disclosed by any investigation of tax
    44  liability under this article.
    45    (b) The commissioner, in his or her discretion, may permit the  appro-
    46  priate  officers  of any other state that regulates or taxes cannabis or
    47  the duly authorized representatives of such commissioner or of any  such
    48  officers,  to  inspect returns or reports made pursuant to this article,
    49  or may furnish to the commissioner or other officer, or duly  authorized
    50  representatives,  a  copy of any such return or report or an abstract of
    51  the information therein contained, or any portion thereof, or may supply
    52  such commissioner or any such  officers  or  such  representatives  with
    53  information  relating  to the business of a wholesaler making returns or
    54  reports hereunder solely for purposes of tax administration. The commis-
    55  sioner may refuse to supply information pursuant to this subdivision  to
    56  the officers of any other state if the statutes of the state represented

        S. 1527--A                         96
 
     1  by  such  officers  do not grant substantially similar privileges to the
     2  commissioner, but such refusal shall not be mandatory. Information shall
     3  not be supplied to the appropriate officers of any state that  regulates
     4  or  taxes  cannabis,  or  the  duly  authorized  representatives of such
     5  commissioner or of any such officers, unless such commissioner, officer,
     6  or other representatives shall agree not to divulge or make known in any
     7  manner the information so supplied, but such officers may transmit  such
     8  information  to their employees or legal representatives when necessary,
     9  who in turn shall be subject to the same restrictions  as  those  hereby
    10  imposed upon such commissioner, officer or other representatives.
    11    (c) 1. Any officer or employee of the state who willfully violates the
    12  provisions  of subdivision (a) or (b) of this section shall be dismissed
    13  from office and be incapable of holding any public office in  the  state
    14  for a period of five years thereafter.
    15    2. For criminal penalties, see article thirty-seven of this chapter.
    16    §  40.  Subdivision  (a)  of section 1115 of the tax law is amended by
    17  adding a new paragraph 3-b to read as follows:
    18    (3-b) Adult-use cannabis products as defined by  article  twenty-C  of
    19  this chapter.
    20    § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
    21  health  law,  the  tax  law, the state finance law, the general business
    22  law, the penal law and the criminal procedure law  relating  to  medical
    23  use of marihuana, is amended to read as follows:
    24    §  12. This act shall take effect immediately [and]; provided, however
    25  that sections one, three, five, six, seven-a, eight, nine, ten and elev-
    26  en of this act shall expire and be deemed  repealed  seven  years  after
    27  such  date; provided that the amendments to section 171-a of the tax law
    28  made by section seven of this act shall take effect on the same date and
    29  in the same manner as section 54 of part A of chapter 59 of the laws  of
    30  2014  takes  effect  and  shall  not  expire and be deemed repealed; and
    31  provided, further, that the  amendments  to  subdivision  5  of  section
    32  410.91  of the criminal procedure law made by section eleven of this act
    33  shall not affect the expiration and repeal of  such  section  and  shall
    34  expire and be deemed repealed therewith.
    35    §  42.  The  office  of  cannabis management, in consultation with the
    36  division of the budget, the department  of  taxation  and  finance,  the
    37  department of health, office of alcoholism and substance abuse services,
    38  office of mental health, New York state police and the division of crim-
    39  inal  justice  services,  shall conduct a  study of the effectiveness of
    40  this act. Such study shall examine all aspects of  this  act,  including
    41  economic  and fiscal impacts, the impact on the public health and safety
    42  of New York residents and the progress made in achieving social  justice
    43  goals and toward eliminating the illegal market for cannabis products in
    44  New  York. The office shall make recommendations regarding the appropri-
    45  ate level of taxation of adult-use cannabis, as well as changes, if any,
    46  necessary to improve and protect the public health  and  safety  of  New
    47  Yorkers.  Such  study  shall  be conducted two years after the effective
    48  date of this act and shall be presented to the  governor,  the  majority
    49  leader  of  the  senate  and  the speaker of the assembly, no later than
    50  October 1, 2022.
    51    § 43. Section 102 of the alcoholic beverage control law is amended  by
    52  adding a new subdivision 8 to read as follows:
    53    8. No alcoholic beverage retail licensee shall sell cannabis, nor have
    54  or  possess  a  license or permit to sell cannabis, on the same premises
    55  where alcoholic beverages are sold.

        S. 1527--A                         97
 
     1    § 44. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
     2  general  obligations  law,  as added by chapter 406 of the laws of 2000,
     3  are amended to read as follows:
     4    1.  "Illegal  drug"  means any controlled substance [or marijuana] the
     5  possession of which is an offense under the public  health  law  or  the
     6  penal law.
     7    4.  "Grade  one  violation"  means  possession of one-quarter ounce or
     8  more, but less than four ounces, or distribution of less than one  ounce
     9  of  an illegal drug [other than marijuana, or possession of one pound or
    10  twenty-five plants or more, but less than four pounds or  fifty  plants,
    11  or distribution of less than one pound of marijuana].
    12    5.  "Grade two violation" means possession of four ounces or more, but
    13  less than eight ounces, or distribution of one ounce or more,  but  less
    14  than two ounces, of an illegal drug [other than marijuana, or possession
    15  of  four pounds or more or fifty plants or distribution of more than one
    16  pound but less than ten pounds of marijuana].
    17    6. "Grade three violation" means possession of eight ounces  or  more,
    18  but less than sixteen ounces, or distribution of two ounces or more, but
    19  less  than  four  ounces,  of a specified illegal drug [or possession of
    20  eight pounds or more or seventy-five  plants  or  more,  but  less  than
    21  sixteen  pounds or one hundred plants, or distribution of more than five
    22  pounds but less than ten pounds of marijuana].
    23    7. "Grade four violation" means possession of sixteen ounces  or  more
    24  or  distribution  of four ounces or more of a specified illegal drug [or
    25  possession of sixteen pounds or more or one hundred plants  or  more  or
    26  distribution of ten pounds or more of marijuana].
    27    13. "Drug trafficker" means a person convicted of a class A or class B
    28  felony  controlled  substance  [or marijuana offense] who, in connection
    29  with the  criminal  conduct  for  which  he  or  she  stands  convicted,
    30  possessed, distributed, sold or conspired to sell a controlled substance
    31  [or  marijuana] which, by virtue of its quantity, the person's prominent
    32  role in the enterprise responsible for the sale or distribution of  such
    33  controlled  substance  and  other circumstances related to such criminal
    34  conduct  indicate  that  such  person's  criminal  possession,  sale  or
    35  conspiracy to sell such substance was not an isolated occurrence and was
    36  part  of  an ongoing pattern of criminal activity from which such person
    37  derived substantial income or resources and in which such person  played
    38  a leadership role.
    39    §  45.  Paragraph  (g)  of  subdivision 1 of section 488 of the social
    40  services law, as added by section 1 of part B of chapter 501 of the laws
    41  of 2012, is amended to read as follows:
    42    (g) "Unlawful use or administration of a controlled substance,"  which
    43  shall  mean any administration by a custodian to a service recipient of:
    44  a controlled substance as defined by article thirty-three of the  public
    45  health law, without a prescription; or other medication not approved for
    46  any  use  by  the  federal  food and drug administration, except for the
    47  administration of  medical  cannabis  when  such  administration  is  in
    48  accordance  with  article  three of the cannabis law and any regulations
    49  promulgated thereunder as well as the rules, regulations,  policies,  or
    50  procedures  of  the  state  oversight  agency or agencies governing such
    51  custodians. It also  shall  include  a  custodian  unlawfully  using  or
    52  distributing  a  controlled substance as defined by article thirty-three
    53  of the public health law, at the workplace or while on duty.
    54    § 46. Paragraphs (e) and (f) of subdivision 1 of section  490  of  the
    55  social  services  law, as added by section 1 of part B of chapter 501 of

        S. 1527--A                         98
 
     1  the laws of 2012, are amended and a new paragraph (g) is added  to  read
     2  as follows:
     3    (e)  information  regarding  individual reportable incidents, incident
     4  patterns and trends, and  patterns  and  trends  in  the  reporting  and
     5  response  to  reportable incidents is shared, consistent with applicable
     6  law, with the justice center, in the form and  manner  required  by  the
     7  justice  center  and,  for  facilities or provider agencies that are not
     8  state operated, with the applicable state oversight agency  which  shall
     9  provide such information to the justice center; [and]
    10    (f)  incident  review  committees  are established; provided, however,
    11  that the regulations may authorize an exemption from  this  requirement,
    12  when  appropriate,  based on the size of the facility or provider agency
    13  or other relevant factors. Such committees shall be composed of  members
    14  of  the  governing  body  of  the  facility or provider agency and other
    15  persons identified by the director of the facility or  provider  agency,
    16  including  some members of the following: direct support staff, licensed
    17  health care practitioners, service  recipients  and  representatives  of
    18  family,  consumer and other advocacy organizations, but not the director
    19  of the facility or provider agency. Such committee shall meet  regularly
    20  to:  (i)  review the timeliness, thoroughness and appropriateness of the
    21  facility or provider agency's responses to  reportable  incidents;  (ii)
    22  recommend  additional  opportunities  for improvement to the director of
    23  the facility or provider agency, if appropriate; (iii)  review  incident
    24  trends  and  patterns  concerning  reportable  incidents;  and (iv) make
    25  recommendations to the director of the facility or  provider  agency  to
    26  assist  in reducing reportable incidents. Members of the committee shall
    27  be trained in confidentiality laws and  regulations,  and  shall  comply
    28  with section seventy-four of the public officers law[.]; and
    29    (g)  safe  storage,  administration, and diversion prevention policies
    30  regarding controlled substances and medical cannabis.
    31    § 47. Subdivision 1 of section 505 of the agriculture and markets law,
    32  as added by chapter 524 of the laws of  2014,  is  amended  to  read  as
    33  follows:
    34    1.  "Industrial  hemp" means the plant Cannabis sativa L. and any part
    35  of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
    36  extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,
    37  whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
    38  tration of not more than 0.3 percent on a dry weight basis.
    39    §  48.  Section  506 of the agriculture and markets law, as amended by
    40  section 1 of part OO of chapter 58 of the laws of 2017,  is  amended  to
    41  read as follows:
    42    §  506.  Growth,  sale, distribution, transportation and processing of
    43  industrial hemp and products derived from such hemp permitted. [Notwith-
    44  standing any provision of law to the contrary, industrial] 1. Industrial
    45  hemp and products derived from such hemp are agricultural products which
    46  may be grown, produced [and],  possessed  [in  the  state,  and],  sold,
    47  distributed,  transported  [or] and/or processed [either] in [or out of]
    48  state [as part of agricultural pilot programs pursuant to  authorization
    49  under  federal  law  and  the  provisions  of  this article] pursuant to
    50  authorization under federal law, the provisions of this  article  and/or
    51  the cannabis law.  [Notwithstanding any provision of law to the contrary
    52  restricting  the growing or cultivating, sale, distribution, transporta-
    53  tion or processing of industrial hemp and  products  derived  from  such
    54  hemp, and subject to authorization under federal law, the]
    55    2. The commissioner may authorize the growing or cultivating of indus-
    56  trial  hemp  as  part  of  agricultural  pilot programs conducted by the

        S. 1527--A                         99
 
     1  department and/or an institution of higher education to study the growth
     2  and cultivation, sale, distribution, transportation  and  processing  of
     3  such  hemp  and  products derived from such hemp provided that the sites
     4  and  programs used for growing or cultivating industrial hemp are certi-
     5  fied by, and registered with, the department.
     6    3. In addition to the  department's  licensing  authority  hereinafter
     7  provided  in  this  article,  the  office  of  cannabis management shall
     8  license and regulate the growth, extraction, processing and/or  manufac-
     9  turing  of hemp for derivatives, extracts, cannabinoids, isomers, acids,
    10  salts and salts or isomers and/or hemp  products  for  human  or  animal
    11  consumption  or  use (except for those food and/or food ingredients that
    12  are generally recognized as safe).
    13    4. Nothing in this section shall limit the jurisdiction of the depart-
    14  ment under any other article of this chapter.
    15    § 49. Section 507 of the agriculture and markets law is REPEALED and a
    16  new section 507 is added to read as follows:
    17    § 507. Licensing; fees. 1. No person shall: (a) grow  industrial  hemp
    18  in  the  state  and/or  sell  or distribute industrial hemp grown in the
    19  state unless licensed biennially by the commissioner or (b) grow,  proc-
    20  ess and/or produce industrial hemp and products derived from hemp in the
    21  state  or  sell  or  distribute unless authorized by the commissioner as
    22  part of an agricultural research pilot program  established  under  this
    23  article.
    24    2.  Application  for  a  license to grow industrial hemp shall be made
    25  upon a form prescribed by the commissioner, accompanied by a non-refund-
    26  able application fee of five hundred dollars.
    27    3. The applicant shall furnish evidence of his or her good  character,
    28  experience  and  competency, that the applicant has adequate facilities,
    29  equipment, process controls, testing capability  and  security  to  grow
    30  hemp.
    31    4. Growers who intend to cultivate hemp for cannabinoids shall also be
    32  required to obtain a license from the office of cannabis management.
    33    5.  A  renewal  application  shall be submitted to the commissioner at
    34  least thirty days prior to the commencement of the next license period.
    35    § 50. Section 508 of the agriculture and markets law is REPEALED and a
    36  new section 508 is added to read as follows:
    37    § 508. Compliance action plan. If the commissioner  determines,  after
    38  notice  and  an opportunity for hearing, that a licensee has negligently
    39  violated a provision of this article, that licensee shall be required to
    40  comply with a corrective action plan established by the commissioner  to
    41  correct the violation by a reasonable date and to periodically report to
    42  the  commissioner  with  respect  to the licensee's compliance with this
    43  article for a period of no less than the next two calendar years follow-
    44  ing the commencement date of the compliance action plan. The  provisions
    45  of  this section shall not be applicable to research partners conducting
    46  hemp research pursuant to a research partner  agreement,  the  terms  of
    47  which shall control.
    48    § 51. Section 509 of the agriculture and markets law is REPEALED and a
    49  new section 509 is added to read as follows:
    50    §  509.  Granting,  suspending or revoking licenses.  The commissioner
    51  may decline to grant a new license, may decline to renew a license,  may
    52  suspend  or revoke a license already granted after due notice and oppor-
    53  tunity for hearing whenever he or she finds that:
    54    (1) any statement contained in an  application  for  an  applicant  or
    55  licensee is or was false or misleading;

        S. 1527--A                         100
 
     1    (2)  the  applicant  or  licensee  does  not  have good character, the
     2  required experience and/or competency, adequate  facilities,  equipment,
     3  process  controls, testing capability and/or security to produce hemp or
     4  products derived from hemp;
     5    (3)  the  applicant  or  licensee has failed or refused to produce any
     6  records or provide any information demanded by the commissioner  reason-
     7  ably related to the administration and enforcement of this article; or
     8    (4)  the  applicant  or  licensee,  or any officer, director, partner,
     9  holder of ten percent of the voting stock, or any other person  exercis-
    10  ing  any position of management or control has failed to comply with any
    11  of the provisions of this article or rules and  regulations  promulgated
    12  pursuant thereto.
    13    § 52. Section 510 of the agriculture and markets law is REPEALED and a
    14  new section 510 is added to read as follows:
    15    § 510. Regulations.  The commissioner may develop regulations consist-
    16  ent with the provisions of this article for the growing and cultivation,
    17  sale,  distribution,  and transportation of industrial hemp grown in the
    18  state, including:
    19    (a) the authorization or licensing of any person who may:  acquire  or
    20  possess  hemp  plants  or  seeds;  grow or cultivate hemp plants; and/or
    21  sell, purchase, distribute, or transport such plants,  plant  parts,  or
    22  seeds;
    23    (b)  maintaining  relevant  information regarding land on which indus-
    24  trial hemp is produced within the state, including the legal description
    25  of the land, for a period of not less than three calendar years;
    26    (c) the procedure for testing of industrial hemp produced in the state
    27  for delta-9 tetrahydrocannabinol levels, using post  decarboxylation  or
    28  other similarly reliable methods;
    29    (d)  the procedure for effective disposal of industrial hemp plants or
    30  products derived from hemp that are produced in violation of this  arti-
    31  cle;
    32    (e)  a procedure for conducting at least a random sample of industrial
    33  hemp producers to verify that hemp is not produced in violation of  this
    34  article;
    35    (f) any required security measures; and
    36    (g) such other and further regulation as the commissioner deems appro-
    37  priate or necessary.
    38    § 53. Section 511 of the agriculture and markets law is REPEALED and a
    39  new section 511 is added to read as follows:
    40    §  511.  Prohibitions.    Except as authorized by state law, and regu-
    41  lations promulgated thereunder,  the  growth,  cultivation,  processing,
    42  sale, and/or distribution of industrial hemp is prohibited.
    43    § 54. Section 512 of the agriculture and markets law is REPEALED and a
    44  new section 512 is added to read as follows:
    45    §  512.  Industrial  hemp  data collection and best farming practices.
    46  The commissioner shall have the power to collect and  publish  data  and
    47  research  concerning,  among  other  things,  the  growth,  cultivation,
    48  production and  processing  methods  of  industrial  hemp  and  products
    49  derived  from  industrial  hemp  and  work  with the cornell cooperative
    50  extension to promote best farming practices for  industrial  hemp  which
    51  are  compatible  with state water quality and other environmental objec-
    52  tives.
    53    § 55. Sections 513 and 514 of the  agriculture  and  markets  law  are
    54  REPEALED and a new section 513 is added to read as follows:
    55    §  513. Access to criminal history information through the division of
    56  criminal justice services.   In connection with  the  administration  of

        S. 1527--A                         101
 
     1  this  article,  the  commissioner  is authorized to request, receive and
     2  review criminal history information through  the  division  of  criminal
     3  justice services (division) with respect to any person seeking a license
     4  or  authorization  to undertake a hemp pilot project. At the commission-
     5  er's request, each researcher, principal and/or officer of the applicant
     6  shall submit to the department his or her fingerprints in such form  and
     7  in such manner as specified by the division, for the purpose of conduct-
     8  ing  a criminal history search and returning a report thereon in accord-
     9  ance with the procedures and requirements established  by  the  division
    10  pursuant  to the provisions of article thirty-five of the executive law,
    11  which shall include the payment of the prescribed  processing  fees  for
    12  the  cost  of  the  division's  full  search and retain procedures and a
    13  national criminal history record check. The commissioner, or his or  her
    14  designee,  shall  submit such fingerprints and the processing fee to the
    15  division.  The division shall forward to the commissioner a report  with
    16  respect  to  the  applicant's  previous  criminal  history, if any, or a
    17  statement that the applicant has no previous criminal history  according
    18  to its files. Fingerprints submitted to the division of criminal justice
    19  services  pursuant  to  this  subdivision  may  also be submitted to the
    20  federal bureau of investigation for a national criminal  history  record
    21  check.  If additional copies of fingerprints are required, the applicant
    22  shall furnish them upon request.
    23    § 56. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the  penal
    24  law,  as added by chapter 90 of the laws of 2014, are amended to read as
    25  follows:
    26  § 179.00 Criminal  diversion  of  medical  [marihuana]  cannabis;  defi-
    27             nitions.
    28    The following definitions are applicable to this article:
    29    1.  "Medical  [marihuana] cannabis" means medical [marihuana] cannabis
    30  as defined in [subdivision eight of section thirty-three  hundred  sixty
    31  of the public health law] section three of the cannabis law.
    32    2.  "Certification" means a certification, made under section [thirty-
    33  three hundred sixty-one of the public health law] thirty of the cannabis
    34  law.
    35  § 179.05 Criminal diversion of  medical  [marihuana]  cannabis;  limita-
    36             tions.
    37    The provisions of this article shall not apply to:
    38    1.  a  practitioner  authorized  to issue a certification who acted in
    39  good faith in the lawful course of his or her profession; or
    40    2. a registered organization as that term is defined  in  [subdivision
    41  nine  of  section  thirty-three  hundred sixty of the public health law]
    42  section thirty-four of the cannabis law who acted in good faith  in  the
    43  lawful course of the practice of pharmacy; or
    44    3.  a  person  who acted in good faith seeking treatment for a medical
    45  condition or assisting another person to obtain treatment for a  medical
    46  condition.
    47  § 179.10 Criminal diversion of medical [marihuana] cannabis in the first
    48             degree.
    49    A person is guilty of criminal diversion of medical [marihuana] canna-
    50  bis  in  the first degree when he or she is a practitioner, as that term
    51  is defined in [subdivision twelve of section thirty-three hundred  sixty
    52  of  the public health law] section three of the cannabis law, who issues
    53  a certification with knowledge of reasonable grounds to  know  that  (i)
    54  the  recipient  has  no medical need for it, or (ii) it is for a purpose
    55  other than to treat a serious condition as defined in [subdivision seven

        S. 1527--A                         102

     1  of section thirty-three hundred sixty of the public health law]  section
     2  three of the cannabis law.
     3    Criminal diversion of medical [marihuana] cannabis in the first degree
     4  is a class E felony.
     5  § 179.11 Criminal  diversion  of  medical  [marihuana]  cannabis  in the
     6             second degree.
     7    A person is guilty of criminal diversion of medical [marihuana] canna-
     8  bis in the second degree when he or  she  sells,  trades,  delivers,  or
     9  otherwise  provides  medical  [marihuana] cannabis to another with know-
    10  ledge or reasonable grounds to know that the recipient is not registered
    11  under [title five-A of article thirty-three of the  public  health  law]
    12  article three of the cannabis law.
    13    Criminal  diversion  of  medical  [marihuana]  cannabis  in the second
    14  degree is a class B misdemeanor.
    15  § 179.15 Criminal retention of medical [marihuana] cannabis.
    16    A person is guilty of criminal retention of medical [marihuana] canna-
    17  bis when, being a certified patient or designated  caregiver,  as  those
    18  terms  are  defined  in  [subdivisions three and five of section thirty-
    19  three hundred sixty of the  public  health  law,  respectively]  section
    20  three  of  the  cannabis  law,  he  or she knowingly obtains, possesses,
    21  stores or maintains an amount of [marihuana] cannabis in excess  of  the
    22  amount he or she is authorized to possess under the provisions of [title
    23  five-A  of  article thirty-three of the public health law] article three
    24  of the cannabis law.
    25    Criminal retention of medical [marihuana] cannabis is a class A misde-
    26  meanor.
    27    § 57. Section 220.78 of the penal law, as added by chapter 154 of  the
    28  laws of 2011, is amended to read as follows:
    29  § 220.78 Witness or victim of drug or alcohol overdose.
    30    1.  A  person who, in good faith, seeks health care for someone who is
    31  experiencing a drug  or  alcohol  overdose  or  other  life  threatening
    32  medical  emergency  shall  not be charged or prosecuted for a controlled
    33  substance offense under this article [two hundred twenty] or a [marihua-
    34  na] cannabis offense under article two hundred  [twenty-one]  twenty-two
    35  of this title, other than an offense involving sale for consideration or
    36  other  benefit or gain, or charged or prosecuted for possession of alco-
    37  hol by a person under age twenty-one years under section sixty-five-c of
    38  the alcoholic beverage control law, or for possession of drug  parapher-
    39  nalia  under  article  thirty-nine  of  the  general  business law, with
    40  respect to any controlled substance, [marihuana]  cannabis,  alcohol  or
    41  paraphernalia that was obtained as a result of such seeking or receiving
    42  of health care.
    43    2.  A  person  who is experiencing a drug or alcohol overdose or other
    44  life threatening medical emergency and, in good faith, seeks health care
    45  for himself or herself or is the subject of such a  good  faith  request
    46  for  health  care,  shall  not be charged or prosecuted for a controlled
    47  substance offense under this article or a [marihuana]  cannabis  offense
    48  under  article  two hundred [twenty-one] twenty-two of this title, other
    49  than an offense involving sale for consideration  or  other  benefit  or
    50  gain,  or  charged  or  prosecuted for possession of alcohol by a person
    51  under age twenty-one years under section sixty-five-c of  the  alcoholic
    52  beverage  control  law,  or  for  possession of drug paraphernalia under
    53  article thirty-nine of the general business law,  with  respect  to  any
    54  substance,  [marihuana]  cannabis,  alcohol  or  paraphernalia  that was
    55  obtained as a result of such seeking or receiving of health care.

        S. 1527--A                         103
 
     1    3. Definitions. As used in this section the following terms shall have
     2  the following meanings:
     3    (a)  "Drug or alcohol overdose" or "overdose" means an acute condition
     4  including, but not limited to, physical illness, coma,  mania,  hysteria
     5  or  death,  which  is  the  result of consumption or use of a controlled
     6  substance or alcohol and relates to an adverse reaction to or the  quan-
     7  tity  of  the  controlled substance or alcohol or a substance with which
     8  the controlled substance  or  alcohol  was  combined;  provided  that  a
     9  patient's  condition shall be deemed to be a drug or alcohol overdose if
    10  a prudent layperson, possessing an average  knowledge  of  medicine  and
    11  health, could reasonably believe that the condition is in fact a drug or
    12  alcohol overdose and (except as to death) requires health care.
    13    (b) "Health care" means the professional services provided to a person
    14  experiencing  a  drug  or alcohol overdose by a health care professional
    15  licensed, registered or certified under title eight of the education law
    16  or article thirty of the public health law who, acting within his or her
    17  lawful scope of practice, may provide diagnosis, treatment or  emergency
    18  services for a person experiencing a drug or alcohol overdose.
    19    4.  It  shall  be an affirmative defense to a criminal sale controlled
    20  substance offense under this article or a criminal sale  of  [marihuana]
    21  cannabis  offense  under  article two hundred [twenty-one] twenty-two of
    22  this title, not covered by subdivision one or two of this section,  with
    23  respect  to  any  controlled substance or [marihuana] cannabis which was
    24  obtained as a result of such seeking or receiving of health care, that:
    25    (a) the defendant, in good faith, seeks health care for someone or for
    26  him or herself who is experiencing a drug or alcohol overdose  or  other
    27  life threatening medical emergency; and
    28    (b)  the  defendant  has  no  prior  conviction  for the commission or
    29  attempted commission of a class A-I, A-II or B felony under  this  arti-
    30  cle.
    31    5. Nothing in this section shall be construed to bar the admissibility
    32  of  any evidence in connection with the investigation and prosecution of
    33  a crime with regard to another  defendant  who  does  not  independently
    34  qualify  for  the bar to prosecution or for the affirmative defense; nor
    35  with regard to other crimes committed by a person who  otherwise  quali-
    36  fies under this section; nor shall anything in this section be construed
    37  to  bar any seizure pursuant to law, including but not limited to pursu-
    38  ant to section thirty-three hundred eighty-seven of  the  public  health
    39  law.
    40    6.  The  bar  to  prosecution described in subdivisions one and two of
    41  this section shall not apply to the prosecution of a  class  A-I  felony
    42  under this article, and the affirmative defense described in subdivision
    43  four  of  this section shall not apply to the prosecution of a class A-I
    44  or A-II felony under this article.
    45    § 58. Subdivision 1 of section 260.20 of the penal law, as amended  by
    46  chapter 362 of the laws of 1992, is amended as follows:
    47    1.  He knowingly permits a child less than eighteen years old to enter
    48  or remain in or upon a place, premises  or  establishment  where  sexual
    49  activity as defined by article one hundred thirty, two hundred thirty or
    50  two  hundred  sixty-three  of  this [chapter] part or activity involving
    51  controlled substances as defined by article two hundred twenty  of  this
    52  [chapter  or involving marihuana as defined by article two hundred twen-
    53  ty-one of this chapter] part is maintained or conducted, and he knows or
    54  has reason to know that such activity is being maintained or  conducted;
    55  or

        S. 1527--A                         104
 
     1    § 59. Section 89-h of the state finance law, as added by chapter 90 of
     2  the laws of 2014, is amended to read as follows:
     3    §  89-h.  Medical  [marihuana] cannabis trust fund. 1. There is hereby
     4  established in the joint  custody  of  the  state  comptroller  and  the
     5  commissioner  of  taxation and finance a special fund to be known as the
     6  "medical [marihuana] cannabis trust fund."
     7    2. The medical [marihuana] cannabis trust fund shall  consist  of  all
     8  moneys  required  to  be  deposited  in the medical [marihuana] cannabis
     9  trust fund pursuant to the provisions of section four hundred ninety  of
    10  the tax law.
    11    3.  The moneys in the medical [marihuana] cannabis trust fund shall be
    12  kept separate and shall not be commingled with any other moneys  in  the
    13  custody  of the commissioner of taxation and finance and the state comp-
    14  troller.
    15    4. The moneys of the medical [marihuana] cannabis trust fund,  follow-
    16  ing  appropriation by the legislature, shall be allocated upon a certif-
    17  icate of approval of availability by  the  director  of  the  budget  as
    18  follows:   (a) Twenty-two and five-tenths percent of the monies shall be
    19  transferred to the counties in New  York  state  in  which  the  medical
    20  [marihuana] cannabis was manufactured and allocated in proportion to the
    21  gross  sales  originating from medical [marihuana] cannabis manufactured
    22  in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
    23  moneys  shall  be transferred to the counties in New York state in which
    24  the medical [marihuana] cannabis was dispensed and allocated in  propor-
    25  tion  to the gross sales occurring in each such county; (c) five percent
    26  of the monies shall be transferred  to  the  office  of  alcoholism  and
    27  substance  abuse  services,  which shall use that revenue for additional
    28  drug abuse prevention, counseling and treatment services; and  (d)  five
    29  percent  of  the revenue received by the department shall be transferred
    30  to the division of criminal  justice  services,  which  shall  use  that
    31  revenue  for  a  program  of discretionary grants to state and local law
    32  enforcement agencies that demonstrate a need relating to  [title  five-A
    33  of  article  thirty-three of the public health law] article three of the
    34  cannabis law; said grants could be used for personnel costs of state and
    35  local law enforcement agencies. For purposes of  this  subdivision,  the
    36  city of New York shall be deemed to be a county.
    37    §  60.  The  state finance law is amended by adding three new sections
    38  99-hh, 99-ii and 99-jj to read as follows:
    39    § 99-hh. New York state cannabis revenue  fund.  1.  There  is  hereby
    40  established  in  the  joint  custody  of  the  state comptroller and the
    41  commissioner of taxation and finance a special fund to be known  as  the
    42  "New York state cannabis revenue fund".
    43    2.  Such fund shall consist of all revenues received by the department
    44  of taxation and finance, pursuant to the  provisions  of  article  eigh-
    45  teen-A of the tax law and all other moneys appropriated thereto from any
    46  other fund or source pursuant to law.  Nothing contained in this section
    47  shall prevent the state from receiving grants, gifts or bequests for the
    48  purposes of the fund as defined in this section and depositing them into
    49  the fund according to law.
    50    3.  The  moneys  in  such  fund  shall  be  expended for the following
    51  purposes:
    52    (a) Reasonable costs  incurred  by  the  department  of  taxation  and
    53  finance for administering and collecting the taxes imposed by this part;
    54  provided,  however,  such  costs  shall  not  exceed four percent of tax
    55  revenues received.

        S. 1527--A                         105
 
     1    (b) Reasonable costs incurred by the office of cannabis management for
     2  implementing, administering, and enforcing the marihuana regulation  and
     3  taxation  act  to  the extent those costs are not reimbursed pursuant to
     4  the cannabis law. This paragraph shall remain operative through the  two
     5  thousand twenty-four--two thousand twenty-five fiscal year.
     6    (c)  Beginning  with the two thousand twenty-one--two thousand twenty-
     7  two fiscal year and continuing  through  the  two  thousand  thirty--two
     8  thousand  thirty-one  fiscal  year,  the  commissioner  of  taxation and
     9  finance shall annually disburse the following sums for the  purposes  of
    10  data collection and reporting:
    11    (i)  Seven  hundred  fifty  thousand dollars to the office of cannabis
    12  management policy to track and report data related to the  licensing  of
    13  cannabis  businesses,  including the geographic location, structure, and
    14  function of licensed cannabis businesses, and demographic data,  includ-
    15  ing  race,  ethnicity,  and  gender,  of  license holders. The office of
    16  cannabis management shall publish reports on its findings  annually  and
    17  shall make the reports available to the public.
    18    (ii)  Seven hundred fifty thousand dollars to the department of crimi-
    19  nal justice services to track and report data  related  to  any  infrac-
    20  tions,  violations,  or criminal convictions that occur under any of the
    21  remaining  cannabis  statutes.    The  department  of  criminal  justice
    22  services  shall  publish reports on its findings annually and shall make
    23  the reports available to the public.
    24    (iii) One million dollars to the  state  university  of  New  York  to
    25  research  and  evaluate  the  implementation and effect of the marihuana
    26  regulation and taxation act.  No more than four percent of these  monies
    27  may  be  used for expenses related to administrative costs of conducting
    28  such research, and to,  if  appropriate,  make  recommendations  to  the
    29  legislature  and governor regarding possible amendments to the marihuana
    30  regulation and taxation act. The recipients of these funds shall publish
    31  reports on their findings at a minimum of every two years and shall make
    32  the reports available to the public. The  research  funded  pursuant  to
    33  this subdivision shall include but not necessarily be limited to:
    34    (A)  the  impacts  on public health, including health costs associated
    35  with cannabis use, as well as whether cannabis use is associated with an
    36  increase or decrease in use of alcohol or other drugs;
    37    (B) the impact of treatment for cannabis use disorder and  the  effec-
    38  tiveness of different treatment programs;
    39    (C)  public  safety issues related to cannabis use, including studying
    40  the effectiveness of the packaging and labeling requirements and  adver-
    41  tising  and  marketing  restrictions  contained in the act at preventing
    42  underage access to and use of cannabis and cannabis products, and study-
    43  ing the health-related effects among users of varying potency levels  of
    44  cannabis and cannabis products;
    45    (D)  cannabis  use  rates, maladaptive use rates for adults and youth,
    46  and diagnosis rates of cannabis-related substance use disorders;
    47    (E) cannabis market prices, illicit market prices, tax structures  and
    48  rates,  including  an  evaluation  of  how to best tax cannabis based on
    49  potency, and the structure and function of licensed cannabis businesses;
    50    (F) whether additional protections  are  needed  to  prevent  unlawful
    51  monopolies  or  anti-competitive behavior from occurring in the cannabis
    52  industry and, if so, recommendations as to the most  effective  measures
    53  for preventing such behavior;
    54    (G)  the economic impacts in the private and public sectors, including
    55  but not necessarily limited to, job creation, workplace  safety,  reven-
    56  ues,  taxes  generated for state and local budgets, and criminal justice

        S. 1527--A                         106
 
     1  impacts, including, but not  necessarily  limited  to,  impacts  on  law
     2  enforcement  and  public  resources, short and long term consequences of
     3  involvement in the criminal justice system, and state and local  govern-
     4  ment agency administrative costs and revenue;
     5    (H)  whether  the  regulatory  agencies  tasked  with implementing and
     6  enforcing the  marihuana  regulation  and  taxation  act  are  doing  so
     7  consistent  with the purposes of the act, and whether different agencies
     8  might do so more effectively; and
     9    (I) any environmental issues related to cannabis  production  and  the
    10  criminal prohibition of cannabis production.
    11    (d)  One million dollars annually, for a period of three years, to the
    12  state police to expand and enhance the drug recognition expert  training
    13  program  and  technologies  utilized  in the process of maintaining road
    14  safety.
    15    4. After the dispersal of moneys pursuant to subdivision three of this
    16  section, the remaining moneys in the fund  deposited  during  the  prior
    17  fiscal year shall be disbursed into the state lottery fund and two addi-
    18  tional  sub-funds  created within the cannabis revenue fund known as the
    19  drug treatment and public education fund and the community grants  rein-
    20  vestment fund, as follows:
    21    (a)  twenty-five  percent shall be deposited in the state lottery fund
    22  established by section ninety-two-c of this article; provided that  such
    23  moneys shall be distributed to the department of education in accordance
    24  with  subdivisions  two and four of section ninety-two-c of this article
    25  and shall not be utilized for the purposes of subdivision three of  such
    26  section.  Monies  allocated  by  this article may enhance, but shall not
    27  supplant, existing dedicated funds to the department of education;
    28    (b) twenty-five percent shall be deposited in the drug  treatment  and
    29  public  education  fund  established  by  section ninety-nine-ii of this
    30  article; and
    31    (c) fifty percent shall be deposited in the community grants reinvest-
    32  ment fund established by section ninety-nine-jj of this article.
    33    5. On or before the first day of February each year, the  commissioner
    34  of  taxation and finance shall provide a written report to the temporary
    35  president of the senate, speaker of the assembly, chair  of  the  senate
    36  finance  committee,  chair of the assembly ways and means committee, the
    37  state comptroller and the public.  Such  report  shall  detail  how  the
    38  moneys of the fund were utilized during the preceding calendar year, and
    39  shall include:
    40    (a)  the amount of money dispersed from the fund and the award process
    41  used for such disbursements;
    42    (b) recipients of awards from the fund;
    43    (c) the amount awarded to each recipient of an award from the fund;
    44    (d) the purposes for which such awards were granted; and
    45    (e) a summary financial plan for such monies which shall include esti-
    46  mates of all receipts and all disbursements for the current and succeed-
    47  ing fiscal years, along with the actual results from  the  prior  fiscal
    48  year.
    49    6.  Moneys shall be payable directly from the cannabis revenue fund to
    50  the department.
    51    § 99-ii. New York state drug treatment and public education  fund.  1.
    52  There  is  hereby  established  in  the joint custody of the state comp-
    53  troller and the commissioner of taxation and finance a special  fund  to
    54  be known as the "New York state drug treatment public education fund".
    55    2.  Such  fund  shall  consist  of  revenues  received pursuant to the
    56  provisions of section ninety-nine-hh  of  this  article  and  all  other

        S. 1527--A                         107
 
     1  moneys  appropriated  thereto  from any other fund or source pursuant to
     2  law. Nothing contained in this section  shall  prevent  the  state  from
     3  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
     4  defined  in  this section and depositing them into the fund according to
     5  law.
     6    3. The moneys in such fund shall be expended to  the  commissioner  of
     7  the  office of alcoholism and substance abuse and disbursed in consulta-
     8  tion with the commissioner of health for the following purposes:
     9    (a) To develop and implement a youth-focused public  health  education
    10  and prevention campaign, including school-based prevention, early inter-
    11  vention,  and  health  care  services and programs to reduce the risk of
    12  cannabis and other substance use by school-aged children;
    13    (b) To develop  and  implement  a  statewide  public  health  campaign
    14  focused  on  the  health effects of cannabis and legal use, including an
    15  ongoing education and prevention  campaign  that  educates  the  general
    16  public,  including parents, consumers and retailers, on the legal use of
    17  cannabis, the importance of preventing youth access, the  importance  of
    18  safe storage and preventing secondhand cannabis smoke exposure, informa-
    19  tion  for  pregnant  or  breastfeeding women, and the overconsumption of
    20  edibles;
    21    (c) To provide substance use disorder treatment programs for youth and
    22  adults, with an emphasis on programs  that  are  culturally  and  gender
    23  competent,  trauma-informed,  evidence-based  and provide a continuum of
    24  care that includes screening and assessment (substance use  disorder  as
    25  well  as  mental  health),  early intervention, active treatment, family
    26  involvement, case management, overdose prevention, prevention of  commu-
    27  nicable  diseases  related  to  substance  use,  relapse  management for
    28  substance use and other co-occurring behavioral health disorders,  voca-
    29  tional  services,  literacy  services, parenting classes, family therapy
    30  and counseling  services,  medication-assisted  treatments,  psychiatric
    31  medication and psychotherapy; and
    32    (d)  To  evaluate  the programs being funded to determine their effec-
    33  tiveness.
    34    4. On or before the first day of February each year, the  commissioner
    35  of the office of alcoholism and substance abuse services shall provide a
    36  written  report to the temporary president of the senate, speaker of the
    37  assembly, chair of the senate finance committee, chair of  the  assembly
    38  ways  and  means  committee, chair of the senate committee on alcoholism
    39  and drug abuse, chair of the assembly alcoholism and drug abuse  commit-
    40  tee,  the state comptroller and the public. Such report shall detail how
    41  the moneys of the fund were utilized during the preceding calendar year,
    42  and shall include:
    43    (a) the amount of money dispersed from the fund and the award  process
    44  used for such disbursements;
    45    (b) recipients of awards from the fund;
    46    (c) the amount awarded to each recipient of an award from the fund;
    47    (d) the purposes for which such awards were granted; and
    48    (e) a summary financial plan for such monies which shall include esti-
    49  mates of all receipts and all disbursements for the current and succeed-
    50  ing  fiscal  years,  along with the actual results from the prior fiscal
    51  year.
    52    5. Moneys shall be payable from the fund on the audit and  warrant  of
    53  the  comptroller  on vouchers approved and certified by the commissioner
    54  of education.
    55    § 99-jj. New York state community grants reinvestment fund.  1.  There
    56  is  hereby established in the joint custody of the state comptroller and

        S. 1527--A                         108
 
     1  the commissioner of taxation and finance a special fund to be  known  as
     2  the "New York state community grants reinvestment fund".
     3    2.  Such  fund  shall consist of all revenues received pursuant to the
     4  provisions of section ninety-nine-hh  of  this  article  and  all  other
     5  moneys  appropriated  thereto  from any other fund or source pursuant to
     6  law. Nothing contained in this section  shall  prevent  the  state  from
     7  receiving  grants,  gifts  or  bequests  for the purposes of the fund as
     8  defined in this section and depositing them into the fund  according  to
     9  law.
    10    3.  The fund shall be governed and administered by an executive steer-
    11  ing committee of thirteen members established by the office of  children
    12  and  family  services  and including additional representatives from the
    13  labor department, and the health department appointed  by  the  governor
    14  and  a representative of the education department appointed by the board
    15  of regents. In addition, the majority and minority leaders of the senate
    16  and assembly shall each appoint one member to  the  steering  committee,
    17  the comptroller shall appoint three additional members, and the attorney
    18  general shall appoint two additional members from relevant local govern-
    19  ment  entities and community-based organizations. Every effort should be
    20  made to ensure a balanced and diverse committee, which shall have exper-
    21  tise in job placement, homelessness and housing, behavioral  health  and
    22  substance use disorder treatment, and effective rehabilitative treatment
    23  for adults and juveniles, and shall include representatives of organiza-
    24  tions  serving communities impacted by past federal and state drug poli-
    25  cies.
    26    4. The moneys in such fund shall be expended by the executive steering
    27  committee to qualified community-based nonprofit organizations  for  the
    28  purpose  of  reinvesting  in  communities disproportionately affected by
    29  past federal and state drug policies. The grants from this program shall
    30  be used to support job placement, job skills services, adult  education,
    31  mental  health treatment, substance use disorder treatment, system navi-
    32  gation services, legal services to  address  barriers  to  reentry,  and
    33  linkages  to  medical care, women's health services and other community-
    34  based supportive services.
    35    5. On or before the first day of February each year, the  commissioner
    36  of  the  office  of children and family services shall provide a written
    37  report to the temporary president of the senate, speaker of  the  assem-
    38  bly,  chair  of the senate finance committee, chair of the assembly ways
    39  and means committee, chair of the senate committee on children and fami-
    40  lies, chair of the assembly children and families  committee,  chair  of
    41  the  senate  committee  on labor, chair of the assembly labor committee,
    42  chair of the senate committee on health, chair of  the  assembly  health
    43  committee,  chair  of  the  senate  committee on education, chair of the
    44  assembly education committee, the state comptroller and the public. Such
    45  report shall detail how the monies of the fund were utilized during  the
    46  preceding calendar year, and shall include:
    47    (a)  the amount of money dispersed from the fund and the award process
    48  used for such disbursements;
    49    (b) recipients of awards from the fund;
    50    (c) the amount awarded to each recipient of an award from the fund;
    51    (d) the purposes for which such awards were granted; and
    52    (e) a summary financial plan for such monies which shall include esti-
    53  mates of all receipts and all disbursements for the current and succeed-
    54  ing fiscal years, along with the actual results from  the  prior  fiscal
    55  year.

        S. 1527--A                         109
 
     1    6.  Moneys  shall be payable from the fund on the audit and warrant of
     2  the comptroller on vouchers approved and certified by  the  commissioner
     3  of education.
     4    §  61.  This act shall take effect immediately; provided, however that
     5  if section 3 of part XX of chapter 59 of the laws of 2019 shall not have
     6  taken effect on or before such date then section thirty-five of this act
     7  shall take effect on the same date and in the same manner as such  chap-
     8  ter  of  the laws of 2019 takes effect; provided, further, that sections
     9  thirty-nine and forty of this act shall take effect April 1,  2020,  and
    10  shall  apply  on and after such date: (a) to the cultivation of cannabis
    11  flower and cannabis trim transferred by a cultivator who is not a whole-
    12  saler; (b) to the cultivation of cannabis flower and cannabis trim  sold
    13  or  transferred  to  a retail dispensary by a cultivator who is a whole-
    14  saler; and (c) to the sale or transfer of adult use cannabis products to
    15  a retail dispensary; provided, further, that the amendments  to  article
    16  179  of  the  penal  law made by section fifty-six of this act shall not
    17  affect the repeal of such article and shall be  deemed  to  be  repealed
    18  therewith; provided, further, that the amendments to section 89-h of the
    19  state  finance  law  made  by  section  fifty-nine of this act shall not
    20  affect the repeal of such section and shall be  deemed  repealed  there-
    21  with;  and  provided,  further, that the amendments to  subdivision 1 of
    22  section 171-a of the tax law made by section  thirty-five  of  this  act
    23  shall  not  affect  the  expiration of such subdivision and shall expire
    24  therewith, when upon such date the provisions of section  thirty-six  of
    25  this act shall take effect.
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