[ ] is old law to be omitted. LBD07592-36-0 S. 1527--C 2 provisions of the public health law relating to growing of cannabis and medical use of marihuana; to repeal article 221 of the penal law relating to offenses involving marihuana; to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; to repeal certain provisions of the crimi- nal procedure law relating to certain criminal actions; and to repeal certain provisions of the agriculture and markets law relating to industrial hemp THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "marihuana regulation and taxation act". § 2. Chapter 7-A of the consolidated laws is enacted, to read as follows: CHAPTER 7-A OF THE CONSOLIDATED LAWS CANNABIS LAW ARTICLE 1 SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT; DEFINITIONS Section 1. Short title. 2. Legislative findings and intent. 3. Definitions. Section 1. Short title. This chapter shall be known and may be cited and referred to as the "cannabis law". § 2. Legislative findings and intent. The legislature finds that existing marihuana laws have not been beneficial to the welfare of the general public. Existing laws have been ineffective in reducing or curb- ing marihuana use and have instead resulted in devastating collateral consequences including mass incarceration and other complex generational trauma, that inhibit an otherwise law-abiding citizen's ability to access housing, employment opportunities, and other vital services. Existing laws have also created an illicit market which represents a threat to public health and reduces the ability of the legislature to deter the accessing of marihuana by minors. Existing marihuana laws have disproportionately impacted African-American and Latinx communities. The intent of this act is to regulate, control, and tax marihuana, heretofore known as cannabis, generate significant new revenue, make substantial investments in communities and people most impacted by mari- huana criminalization to address the collateral consequences of such criminalization, prevent access to cannabis by those under the age of twenty-one years, reduce the illegal drug market and reduce violent crime, reduce participation of otherwise law-abiding citizens in the illicit market, end the racially disparate impact of existing cannabis laws, create new industries and increase employment and strengthen New York's agriculture sector. Nothing in this act is intended to limit the authority of any district government agency or office or employers to enact and enforce policies pertaining to cannabis in the workplace, to allow driving under the influence of cannabis, to allow individuals to engage in conduct that endangers others, to allow smoking cannabis in any location where smok- ing tobacco is prohibited, or to require any individual to engage in any conduct that violates federal law or to exempt anyone from any require- S. 1527--C 3 ment of federal law or pose any obstacle to the federal enforcement of federal law. The legislature further finds and declares that it is in the best interest of the state to regulate medical cannabis, adult-use cannabis, cannabinoid hemp and hemp extracts under independent entities, known as the cannabis control board and the office of cannabis management. § 3. Definitions. Whenever used in this chapter, unless otherwise expressly stated or unless the context or subject matter requires a different meaning, the following terms shall have the representative meanings hereinafter set forth or indicated: 1. "Applicant" means a resident of New York state who is a citizen of the United States or a person lawfully admitted for permanent residency in the United States aged twenty-one years or older applying for any cannabis or hemp licenses or special use permits issued by the New York state cannabis control board pursuant to this chapter; provided, however applicants for hemp licenses may be aged eighteen years or older. 2. "Cannabinoid" means the phytocannabinoids found in hemp and does not include synthetic cannabinoids as that term is defined in subdivi- sion (g) of schedule I of section thirty-three hundred six of the public health law. 3. "Cannabinoid hemp" means any hemp and any product processed or derived from hemp, that is used for human consumption provided that when such product is packaged or offered for retail sale to a consumer, it shall not have a concentration of more than three tenths of a percent delta-9 tetrahydrocannabinol. 4. "Cannabinoid hemp processor license" means a license granted by the department to process, extract, pack or manufacture cannabinoid hemp or hemp extract into products, whether in intermediate or final form, used for human consumption. 5. "Cannabis" means all parts of the plant of the genus Cannabis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manu- facture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. It does not include hemp, cannabinoid hemp or hemp extract as defined by this section. 6. "Cannabis consumer" means a person twenty-one years of age or older acting in accordance with any provision of this chapter. 7. "Cannabis control board" means the New York state cannabis control board created pursuant to article two of this chapter. 8. "Cannabis flower" means the flower of a plant of the genus Cannabis that has been harvested, dried, and cured, prior to any processing whereby the plant material is transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical prod- uct containing cannabis or concentrated cannabis and other ingredients. Cannabis flower excludes leaves and stem. 9. "Cannabis product" or "adult-use cannabis product" means cannabis, concentrated cannabis, and cannabis-infused products for use by a canna- bis consumer. 10. "Cannabis-infused products" means products that have been manufac- tured and contain either cannabis or concentrated cannabis and other ingredients that are intended for use or consumption. S. 1527--C 4 11. "Cannabis trim" means all parts of the plant of the genus Cannabis other than cannabis flower that have been harvested, dried, and cured, but prior to any further processing. 12. "Caring for" means treating a patient, in the course of which the practitioner has completed a full assessment of the patient's medical history and current medical condition. 13. "Certification" means a certification made under this chapter. 14. "Certified medical use" includes the acquisition, administration, cultivation, manufacture, delivery, harvest, possession, preparation, transfer, transportation, or use of cannabis or paraphernalia relating to the administration of cannabis to treat or alleviate a certified patient's medical condition or symptoms associated with the patient's medical condition. 15. "Certified patient" means a patient who is a resident of New York state or receiving care and treatment in New York state as determined by the board in regulation, and is certified under this chapter. 16. "Chief equity officer" means the chief equity officer of the office of cannabis management. 17. "Commercial cannabis activity" means the production, cultivation, manufacturing, processing, possession, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this chapter. 18. "Concentrated cannabis" means: (a) the separated resin, whether crude or purified, obtained from a plant of the genus Cannabis; or (b) a material, preparation, mixture, compound or other substance which contains more than three percent by weight of delta-9 tetrahydrocannabi- nol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) monoterpene numbering system. 19. "Condition" means having one of the following conditions: cancer, positive status for human immunodeficiency virus or acquired immune deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease, multiple sclerosis, damage to the nervous tissue of the spinal cord with objective neurological indication of intractable spasticity, epilepsy, inflammatory bowel disease, neuropathies, Huntington's disease, post- traumatic stress disorder, pain that degrades health and functional capability where the use of medical cannabis is an alternative to opioid use, substance use disorder, Alzheimer's, muscular dystrophy, dystonia, rheumatoid arthritis, autism or any other condition certified by the practitioner. 20. "Cultivation" means growing, cloning, harvesting, drying, curing, grading, and trimming of cannabis plants for sale to certain other cate- gories of cannabis license- and permit-holders. 21. "Delivery" means the direct delivery of cannabis products by a retail licensee, microbusiness licensee, or delivery license holder to a cannabis consumer. 22. "Designated caregiver facility" means a general hospital or resi- dential health care facility operating pursuant to article twenty-eight of the public health law; an adult care facility operating pursuant to title two of article seven of the social services law; a community mental health residence established pursuant to section 41.44 of the mental hygiene law; a hospital operating pursuant to section 7.17 of the mental hygiene law; a mental hygiene facility operating pursuant to article thirty-one of the mental hygiene law; an inpatient or residen- tial treatment program certified pursuant to article thirty-two of the mental hygiene law; a residential facility for the care and treatment of S. 1527--C 5 persons with developmental disabilities operating pursuant to article sixteen of the mental hygiene law; a residential treatment facility for children and youth operating pursuant to article thirty-one of the mental hygiene law; a private or public school; research institution with an internal review board; or any other facility as determined by the board in regulation; that registers with the office to assist one or more certified patients with the acquisition, possession, delivery, transportation or administration of medical cannabis. 23. "Designated caregiver" means an individual designated by a certi- fied patient in a registry application. A certified patient may desig- nate up to five designated caregivers not counting designated caregiver facilities or designated caregiver facilities' employees. 24. "Designated caregiver facility employee" means an employee of a designated caregiver facility. 25. "Distributor" means any person who sells at wholesale any cannabis product, except medical cannabis, for the sale of which a license is required under the provisions of this chapter. 26. "Executive director" means the executive director of the office of cannabis management. 27. "Form of medical cannabis" means characteristics of the medical cannabis recommended or limited for a particular certified patient, including the method of consumption and any particular strain, variety, and quantity or percentage of cannabis or particular active ingredient. 28. "Hemp" means the plant Cannabis sativa L. and any part of such plant, including the seeds thereof and all derivatives, extracts, canna- binoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration (THC) of not more than three-tenths of a percent on a dry weight basis. It shall not include "medical cannabis" as defined in this section. 29. "Hemp extract" means all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers derived from hemp, used or intended for human consumption, for its cannabinoid content, with a delta-9 tetrahydrocannabinol concentration of not more than an amount determined by the department in regulation. For the purpose of this article, hemp extract excludes (a) any food, food ingredient or food additive that is generally recognized as safe pursuant to federal law; or (b) any hemp extract that is not used for human consumption. Such excluded substances shall not be regulated pursuant to the provisions of this article but are subject to other provisions of applicable state law, rules and regulations. 30. "Labor peace agreement" means an agreement between an entity and a labor organization that, at a minimum, protects the state's proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interfer- ence with the entity. 31. "Laboratory testing facility" means any independent laboratory capable of testing cannabis and cannabis products for adult-use and medical-use; cannabinoid hemp and hemp extract; or for all categories of cannabis and cannabis products as per regulations set forth by the state cannabis control board. 32. "License" means a written authorization as provided under this chapter permitting persons to engage in a specified activity authorized pursuant to this chapter. 33. "Licensee" means an individual or an entity who has been granted a license under this chapter. S. 1527--C 6 34. "Medical cannabis" means cannabis as defined in this section, intended for a certified medical use, as determined by the board in consultation with the commissioner of health. 35. "Microbusiness" means a licensee that may act as a cannabis producer for the cultivation of cannabis, a cannabis processor, a canna- bis distributor and a cannabis retailer under this article; provided such licensee complies with all requirements imposed by this article on licensed producers, processors, distributors and retailers to the extent the licensee engages in such activities. 36. "Nursery" means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. 37. "Office" or "office of cannabis management" means the New York state office of cannabis management. 38. "On-site consumption" means the consumption of cannabis in an area licensed as provided for in this chapter. 39. "Owner" means an individual with an aggregate ownership interest of twenty percent or more in a cannabis business licensed pursuant to this chapter, unless such interest is solely a security, lien, or encum- brance, or an individual that will be participating in the direction, control, or management of the licensed cannabis business. 40. "Package" means any container or receptacle used for holding cannabis or cannabis products. 41. "Permit" means a permit issued pursuant to this chapter. 42. "Permittee" means any person to whom a permit has been issued pursuant to this chapter. 43. "Practitioner" means a practitioner who is licensed, registered or certified by New York state to prescribe controlled substances within the state. Nothing in this chapter shall be interpreted so as to give any such person authority to act outside their scope of practice as defined by title eight of the education law. Additionally, nothing in this chapter shall be interpreted to allow any unlicensed, unregistered, or uncertified person to act in a manner that would require a license, registration, or certification pursuant to title eight of the education law. 44. "Processor" means a licensee that extracts concentrated cannabis and/or compounds, blends, extracts, infuses, or otherwise manufactures concentrated cannabis or cannabis products, but not the cultivation of the cannabis contained in the cannabis product. 45. "Registered organization" means an organization registered under article three of this chapter. 46. "Registry application" means an application properly completed and filed with the board by a certified patient under article three of this chapter. 47. "Registry identification card" means a document that identifies a certified patient or designated caregiver, as provided under this chap- ter. 48. "Retail sale" means to solicit or receive an order for, to keep or expose for sale, and to keep with intent to sell, made by any licensed person, whether principal, proprietor, agent, or employee, of any canna- bis, cannabis product, cannabinoid hemp or hemp extract product to a cannabis consumer for any purpose other than resale. 49. "Retailer" means any person who sells at retail any cannabis prod- uct, the sale of which a license is required under the provisions of this chapter. S. 1527--C 7 50. "Small business" means small business as defined in section one hundred thirty-one of the economic development law, and shall apply for purposes of this chapter where any inconsistencies exist. 51. "Smoking" means the burning of a lighted cigar, cigarette, pipe or any other matter or substance which contains cannabis including the use of an electronic smoking device that creates an aerosol or vapor. 52. "Social and economic equity applicant" means an individual or an entity who is eligible for priority licensing pursuant to the criteria established in article four of this chapter. 53. "Terminally ill" means an individual has a medical prognosis that the individual's life expectancy is approximately one year or less if the illness runs its normal course. 54. "Warehouse" means and includes a place in which cannabis products are securely housed or stored. 55. "Wholesale" means to solicit or receive an order for, to keep or expose for sale, and to keep with intent to sell, made by any licensed person, whether principal, proprietor, agent, or employee of any adult- use, medical-use cannabis or cannabis product, or cannabinoid hemp and hemp extract product for purposes of resale. ARTICLE 2 NEW YORK STATE CANNABIS CONTROL BOARD Section 7. Establishment of the cannabis control board or "board". 8. Establishment of an office of cannabis management. 9. Executive director. 10. Powers and duties of the cannabis control board. 11. Functions, powers and duties of the executive director; office of cannabis control. 12. Chief equity officer. 13. Rulemaking authority. 14. State cannabis advisory board. 15. Disposition of moneys received for license fees. 16. Violations of cannabis laws or regulations; penalties and injunctions. 17. Formal hearings; notice and procedure. 18. Ethics, transparency and accountability. § 7. Establishment of the cannabis control board or "board". 1. The cannabis control board is hereby created and shall consist of a chair- person nominated by the governor and with the advice and consent of the senate, with one vote, and four other voting board members as provided for in subdivision two of this section. In addition, the commissioners of the departments of environmental conservation, health, agriculture and markets, taxation and finance, the superintendent of financial services, and the director of the office of addiction services and supports or their designees shall serve as ex-officio members in an advisory capacity. 2. Appointments. The governor shall have three appointments with the advice and consent of the senate, the temporary president of the senate and the speaker of the assembly shall each have one appointment to the board. Appointments shall be for a term of three years each and shall be geographically and demographically representative of the state and communities historically affected by the war on drugs. Board members shall be citizens and permanent residents of this state. The chairperson and the remaining members of such board shall continue to serve as chairperson and members of the board until the expiration of the respec- S. 1527--C 8 tive terms for which they were appointed. Upon the expiration of such respective terms the successors of such chairperson and members shall be appointed to serve for a term of three years each and until their successors have been appointed and qualified. The members shall when performing the work of the board, be compensated at a rate of two hundred sixty dollars per day, and together with an allowance for actual and necessary expenses incurred in the discharge of their duties. No member or member's spouse or minor child shall have any interest in an entity regulated by the board. 3. Expenses. Each member of the board shall be entitled to their expenses actually and necessarily incurred by them in the performance of their duties. 4. Removal. Any member of the board may be removed by the governor for good cause after notice and an opportunity to be heard. A statement of the good cause for their removal shall be filed by the governor in the office of the secretary of state. 5. Vacancies; quorum. (A) In the event of a vacancy caused by the death, resignation, removal or inability to perform his or her duties of any board member, the vacancy shall be filled in the manner as the original appointment for the remainder of the unexpired term. (B)(i) In the event of a vacancy caused by the death, resignation, removal, or inability to act of the chair, the vacancy shall be filled in the same manner as the original appointment for the remainder of the unexpired term. Notwithstanding any other provision of law to the contrary, the governor shall designate one of the remaining board members to serve as acting chairperson for a period not to exceed six months or until a successor chairperson has been confirmed by the senate. Upon the expiration of the six month term, if the governor has nominated a successor chairperson, but the senate has not acted upon the nomination, the acting chairperson can continue to serve as acting chairperson for an additional ninety days or until the governor's successor chairperson nomination is confirmed by the senate, whichever comes first; (ii) The governor shall provide immediate written notice to the tempo- rary president of the senate and the speaker of the assembly of the designation of a board member as acting chairperson; (iii) If (a) the governor has not nominated a successor chairperson upon the expiration of the six month term or (b) the senate does not confirm the governor's successor nomination within the additional ninety days, the board member designated as acting chairperson shall no longer be able to serve as acting chairperson and the governor is prohibited from extending the powers of that acting chairperson or from designating another board member to serve as acting chairperson; and (iv) A board member serving as the acting chairperson of the cannabis control board shall be deemed a state officer for purposes of section seventy-three of the public officers law. (C) A majority of the voting board members of the board shall consti- tute a quorum for the purpose of conducting the business thereof and a majority vote of all the members in office shall be necessary for action. Provided, however, that a board member designated as an acting chairperson pursuant to this chapter shall have only one vote for purposes of conducting the business of the cannabis control board. 6. Officers; employees; offices. (A) The board shall have power to appoint any necessary deputies, counsels, assistants, investigators, and other employees within the limits provided by appropriation. Investi- gators so employed by the board shall be deemed to be peace officers S. 1527--C 9 only for the purpose of enforcing the provisions of the cannabis law or judgments or orders obtained for violation thereof, with all the powers set forth in section 2.20 of the criminal procedure law. The counsel, secretary, chief executive officer, assistant chief executive officers, chief equity officer, confidential secretaries to board members and deputies shall be in the exempt class of the civil service. The other assistants, investigators and employees of the office of cannabis management shall all be in the competitive class of the civil service and shall be considered for purposes of article fourteen of the civil service law to be public employees in the civil service of the state, and shall be assigned to the appropriate collective bargaining unit. Employees serving in positions in newly created titles shall be assigned to the same collective bargaining units as they would have been assigned to were such titles created prior to the establishment of the office of cannabis management by this chapter. The cannabis control board and office of cannabis management shall have its principal office in the city of Albany, and maintain branch offices in the cities of New York and Buffalo and such other places as it may deem necessary. (B) The board shall establish appropriate procedures to ensure that hearing officers are shielded from ex parte communications with alleged violators and their attorneys and from other employees of the office of cannabis management and shall take such other steps as it shall deem necessary and proper to shield its judicial processes from unwarranted and inappropriate communications and attempts to influence. 7. Disqualification of members of the board and employees of the office of cannabis management. No member of the board or any officer, deputy, assistant, inspector or employee or spouse or minor child there- of shall have any interest, direct or indirect, either proprietary or by means of any loan, mortgage or lien, or in any other manner, in or on any premises where cannabis is manufactured or sold; nor shall they have any interest, direct or indirect, in any business wholly or partially devoted to the cultivation, manufacture, distribution, sale, transporta- tion or storage of cannabis, or own any stock in any corporation which has any interest, proprietary or otherwise, direct or indirect, in any premises where cannabis or hemp extract is cultivated or manufactured, distributed, or sold, or in any business wholly or partially devoted to the cultivation, manufacture, distribution, sale, transportation or storage of cannabis or hemp extract or receive any commission or profit whatsoever, direct or indirect, from any person applying for or receiv- ing any license or permit provided for in this chapter, or hold any other public office in the state or in any political subdivision except upon the written permission of the board, such member of the board or office of cannabis management or officer, deputy, assistant, inspector or employee thereof may hold the public office of notary public or member of a community board of education in the city school district of the city of New York. Anyone who violates any of the provisions of this section shall be removed. § 8. Establishment of an office of cannabis management. There is here- by established, within the division of alcoholic beverage control, an independent office of cannabis management, which shall have exclusive jurisdiction to exercise the powers and duties provided by this chapter. The office shall exercise its authority by and through an executive director. § 9. Executive director. The office shall exercise its authority, other than powers and duties specifically granted to the board, by and S. 1527--C 10 through an executive director nominated by the governor and confirmed by the senate. The executive director shall serve for a term of three years and once confirmed, may only be removed for good cause with appro- priate notice. The executive director of the state office of cannabis management shall receive an annual salary not to exceed an amount appro- priated therefor by the legislature and his or her expenses actually and necessarily incurred in the performance of his or her official duties, unless otherwise provided by the legislature. § 10. Powers and duties of the cannabis control board. The cannabis control board or "board" shall have the following functions, powers and duties as provided for in this chapter: 1. Sole discretion to issue or refuse to issue any registration, license or permit provided for in this chapter. 2. Sole discretion to limit, or not to limit, the number of registra- tions, licenses and permits of each class to be issued within the state or any political subdivision thereof, in a manner that prioritizes social and economic equity applicants with the goal of fifty percent awarded to such applicants, and considers small business opportunities and concerns, avoids market dominance in sectors of the industry, and reflects the demographics of the state. 3. Sole discretion to revoke, cancel or suspend for cause any regis- tration, license, or permit issued under this chapter and/or to impose a civil penalty for cause, after notice and an opportunity for a hearing, against any holder of a registration, license, or permit issued pursuant to this chapter. 4. To fix by rule and regulation the standards of cultivation and processing of medical cannabis, adult use cannabis and cannabis product, and cannabinoid hemp and hemp extract, including but not limited to, the ability to regulate potency and the types of products which may be manu- factured and/or processed, in order to ensure the health and safety of the public and the use of proper ingredients and methods in the manufac- ture of all medical, adult-use, cannabinoid hemp and hemp extract to be sold or consumed in the state. 5. To limit or prohibit, at any time of public emergency and without previous notice or advertisement, the cultivation, processing, distrib- ution or sale of any or all cannabis products, medical cannabis or cannabinoid hemp and hemp extract, for and during the period of such emergency. 6. To hold hearings, subpoena witnesses, compel their attendance, administer oaths, to examine any person under oath and in connection therewith to require the production of any books or records relative to the inquiry. A subpoena issued under this section shall be regulated by the civil practice law and rules. 7. To appoint any necessary directors, deputies, counsels, assistants, investigators, and other employees within the limits provided by appro- priation. Directors, deputies and counsels shall be in the exempt class of the civil service. The other assistants, investigators and employees of the office shall all be in the competitive class of the civil service and shall be considered for purposes of article fourteen of the civil service law to be public employees of the state, and shall be assigned to the appropriate bargaining unit. Investigators so employed by the office shall be deemed to be peace officers only for the purposes of enforcing the provisions of this chapter or judgments or orders obtained for violation thereof, with all the powers set forth in section 2.20 of the criminal procedure law. Employees transferred to the office shall be transferred without further examination or qualification to the same or S. 1527--C 11 similar titles and shall remain in the same collective bargaining units and shall retain their respective civil service classifications, status and rights pursuant to their collective bargaining units and collective bargaining agreements. Employees serving in positions in newly created titles shall be assigned to the appropriate collective bargaining unit as they would have been assigned to were such titles created prior to the establishment of the office of cannabis management. Any action taken under this subdivision shall be subject to and in accordance with the civil service law. 8. To inspect or provide authorization for the inspection at any time of any premises where medical cannabis, adult-use cannabis or cannabi- noid hemp and hemp extract is cultivated, processed, stored, distributed or sold. 9. To prescribe forms of applications for registrations, licenses and permits under this chapter and of all reports deemed necessary by the board. 10. To appoint such advisory groups and committees as deemed necessary to provide assistance to the board to carry out the purposes and objec- tives of this chapter. 11. To exercise the powers and perform the duties in relation to the administration of the board and the office of cannabis management as are necessary but not specifically vested by this chapter, including but not limited to budgetary and fiscal matters. 12. To develop and establish minimum criteria for certifying employees to work in the cannabis industry in positions requiring advanced train- ing and education. 13. To enter into contracts, memoranda of understanding, and agree- ments as deemed appropriate to effectuate the policy and purpose of this chapter. 14. To advise the urban development corporation in making low interest or zero-interest loans to qualified social and economic equity appli- cants as provided for in this chapter. 15. If public health, safety, or welfare imperatively requires emer- gency action, and incorporates a finding to that effect in an order, summary suspension of a license may be ordered, effective on the date specified in such order or upon service of a certified copy of such order on the licensee, whichever shall be later, pending proceedings for revocation or other action. These proceedings shall be promptly insti- tuted and determined. In addition, the board may be directed to order the administrative seizure of product, issue a stop order, or take any other action necessary to effectuate and enforce the policy and purpose of this chapter. 16. To draft and provide for public comment and issue regulations, declaratory rulings, guidance and industry advisories. 17. To draft and provide an annual report on the effectiveness of this chapter no later than January first, two thousand twenty-two and annual- ly thereafter. The annual report shall be prepared, in consultation with the division of the budget, the urban development corporation, the department of taxation and finance, the department of health, department of agriculture and markets, office of addiction services and supports, office of mental health, New York state police and the division of crim- inal justice services. The report shall provide, but not be limited to, the following information: (a) the number of registrations, licenses, and permits applied for by geographic region of the state; the number of registrations, licenses, and permits approved or denied by geographic region of the state; S. 1527--C 12 (b) the economic and fiscal impacts associated with this chapter, including revenue from licensing or other fees, fines and taxation related to the cultivation, distribution and sale of cannabis for medical and adult-use and cannabinoid hemp and hemp extract in this state; (c) specific programs and progress made by the cannabis control board and the office of cannabis management in achieving the goals of the social and economic equity plan, and other social justice goals includ- ing, but not limited to, restorative justice, minority- and women-owned businesses, disadvantaged farmers business and service disabled veter- ans; (d) collect demographic data on owners and employees in the medical cannabis, adult-use cannabis and cannabinoid hemp and hemp extract industry; (e) impacts to public health and safety, including substance use disorder; (f) impacts associated with public safety, including, but not limited to, traffic-related issues, law enforcement, under-age prevention in relation to accessing adult-use cannabis, and efforts to eliminate the illegal market for cannabis products in New York; and (g) any other information or data deemed significant. 18. The board shall make recommendations regarding the appropriate level of taxation of adult-use cannabis, as well as changes necessary to: improve registration, licensing and permitting; promoting and encouraging social and economic equity applicants; improve and protect the public health and safety of New Yorkers; improve access and avail- ability for substance abuse treatment programs; and any other recommen- dations deemed necessary and appropriate. Such report shall be presented to the governor, the majority leader of the senate and the speaker of the assembly, no later than January first, two thousand twenty-two and annually thereafter. § 11. Functions, powers and duties of the executive director; office of cannabis management. The executive director, as authorized by and through this chapter, shall have the following functions, powers and duties as provided for in this chapter: 1. To exercise the powers and perform the duties in relation to the administration of the office of cannabis management as are not specif- ically vested by this chapter in the cannabis control board. 2. To keep records in such form as he or she may prescribe of all registrations, licenses and permits issued and revoked within the state; such records shall be so kept as to provide ready information as to the identity of all licensees including the names of the officers and direc- tors of corporate licensees and the location of all licensed premises. The executive director may contract to furnish copies of the records of licenses and permits of each class and type issued within the state or any political subdivision thereof, for any license or permit year or term of years not exceeding five years. 3. To inspect or provide for the inspection of any premises where medical cannabis, adult-use cannabis, hemp cannabis are manufactured or sold. 4. To prescribe forms of applications for licenses and permits under this chapter and of all reports deemed necessary by the board. 5. As authorized by the board, to inspect or provide for the inspection of any licensed or permitted premises where medical, adult- use or hemp is cultivated, processed, stored, distributed or sold. S. 1527--C 13 6. To prescribe forms of applications for registrations, licenses and permits under this chapter and of all reports deemed necessary by the board. 7. To delegate the powers provided in this section to such other offi- cers or employees as may be deemed appropriate by the executive direc- tor. 8. To exercise the powers and perform the duties as delegated by the board in relation to the administration of the office as are necessary, including but not limited to budgetary and fiscal matters. 9. To enter into contracts, memoranda of understanding, and agreements on the recommendation of the executive director and as authorized by the board to effectuate the policy and purpose of this chapter. 10. To advise and assist the board in carrying out any of its func- tions, powers and duties. § 12. Chief equity officer. The chief equity officer shall be nomi- nated by the governor and confirmed by the senate. The chief equity officer shall receive an annual salary not to exceed an amount appropri- ated therefor by the legislature and their expenses actually and neces- sarily incurred in the performance of official duties, unless otherwise provided by the legislature. 1. The chief equity officer shall assist with the development and implementation of, and ensure the cannabis control board and the office of cannabis management's continued compliance with, the social and economic equity plan, required to be developed pursuant to article four of this chapter. 2. The chief equity officer shall establish public education program- ming dedicated to providing communities that have been impacted by cannabis prohibition with information detailing the licensing process and informing individuals of the support and resources that the office can provide to individuals and entities interested in participating in activity licensed under this chapter. 3. The chief equity officer shall provide a report to the legislature, no later than January first, two thousand twenty-two, and annually ther- eafter, of their activities in ensuring compliance with the social and economic equity plan, required to be developed pursuant to article four of this chapter. § 13. Rulemaking authority. 1. The board shall perform such acts, prescribe such forms and propose such rules, regulations and orders as it may deem necessary or proper to fully effectuate the provisions of this chapter. 2. The board shall, in consultation with the executive director, the chief equity officer and the state cannabis advisory board, have the authority to promulgate any and all necessary rules and regulations governing the cultivation, manufacture, processing, transportation, distribution, testing, delivery, and sale of medical cannabis, adult-use cannabis, and cannabinoid hemp and hemp extract, including but not limited to the registration of organizations authorized to sell medical cannabis, the licensing and/or permitting of adult-use cannabis cultiva- tors, processors, cooperatives, microbusiness, distributors, laborato- ries, and retailers, and the licensing of cannabinoid hemp and hemp extract producers and processors pursuant to this chapter, including, but not limited to: (a) prescribing forms and establishing application, reinstatement, and renewal fees; (b) the qualifications and selection criteria for registration, licensing, or permitting; S. 1527--C 14 (c) the books and records to be created and maintained by all regis- tered organizations, licensees, and permittees, including the reports to be made thereon to the office, and inspection of any and all books and records maintained by any registered organization, licensee, or permit- tee and on the premise of any registered organization, licensee, or permittee; (d) methods of producing, processing, and packaging cannabis, medical cannabis, cannabis-infused products, concentrated cannabis, and cannabi- noid hemp and hemp extract; conditions of sanitation, and standards of ingredients, quality, and identity of cannabis products cultivated, processed, packaged, or sold by any registered organizations and licen- sees; (e) security requirements for medical cannabis and adult-use cannabis retail dispensaries and premises where cannabis products, medical canna- bis, and cannabinoid hemp and hemp extract, are cultivated, produced, processed, or stored, and safety protocols for registered organizations, licensees and their employees; and (f) hearing procedures and additional causes for cancellation, suspen- sion, revocation, and/or civil penalties against any person registered, licensed, or permitted by the authority. 3. The board, in consultation with the state cannabis advisory board, shall promulgate rules and regulations that are designed to: (a) prevent the distribution of adult-use cannabis or cannabis product to persons under twenty-one years of age, including the modification of tobacco vaping products for use with cannabis; (b) prevent the revenue from the sale of cannabis from going to crimi- nal enterprises; (c) prevent the diversion of cannabis from this state to other states; (d) prevent cannabis, hemp, cannabinoid hemp and hemp extract activity that is legal under state law from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; (e) prevent driving while impaired and the exacerbation of other adverse public health consequences associated with the use of cannabis; (f) prevent the growing of cannabis on public lands; and (g) inform the public about the prohibition on the possession and use of cannabis on federal property. 4. The board, in consultation with the department of agriculture and markets and the department of environmental conservation, shall promul- gate necessary rules and regulations governing the safe production of cannabis, including environmental and energy standards and restrictions on the use of pesticides and best practices for water and energy conser- vation. 5. Emergency rules and regulations: In adopting any emergency rule, the board shall comply with the provisions of subdivision six of section two hundred two of the state administrative procedure act and subdivi- sion three of section one hundred one-a of the executive law; provided, however, that notwithstanding the provisions of such laws: (a) Such emergency rule may remain in effect for no longer than one hundred twenty days, unless within such time the board complies with the provisions of such laws and adopts the rule as a permanent rule; (b) If, prior to the expiration of a rule adopted pursuant to this paragraph, the board finds that the readoption of such rule on an emer- gency basis or the adoption of a substantially similar rule on an emer- gency basis is necessary for the preservation of the public health, safety or general welfare the agency may only readopt the rule on an emergency basis or adopt a substantially similar rule on an emergency S. 1527--C 15 basis if on or before the date of such action the board has also submit- ted a notice of proposed rule making pursuant to subdivision six of section two hundred two of the state administrative procedure act and subdivision three of section one hundred one-a of the executive law. An emergency rule adopted pursuant to this paragraph may remain in effect for no longer than one hundred twenty days; (c) An emergency rule adopted pursuant to this subdivision or a substantially similar rule may be adopted on an emergency basis may remain in effect for no longer than one hundred twenty days, but upon the expiration of such one hundred twenty-day period no further readoptions or adoptions of substantially similar rules shall be permit- ted for a period of one hundred twenty days. Nothing in this subdivi- sion shall preclude the adoption of such rule by submitting a notice of adoption pursuant to subdivision five of section two hundred two of the state administrative procedure act. (d) Strict compliance with the provisions of this subdivision shall be required, and any emergency rule or substantially similar rule that does not so comply shall be void and of no legal effect. § 14. State cannabis advisory board. 1. The state cannabis advisory board or "advisory board" is established within the office of cannabis management and directed to work in collaboration with the cannabis control board and the executive director to regulate and control the use of medical cannabis, adult-use cannabis and cannabinoid hemp and hemp extract in the state of New York. 2. The state cannabis advisory board, shall consist of thirteen voting appointed members, along with the commissioners of environmental conser- vation, health, agriculture and markets and addiction services and supports serving as ex-officio members. The governor shall have seven appointments, the temporary president of the senate and the speaker of the assembly shall each have three appointments to the board. The members shall be appointed to each serve three year terms and in the event of a vacancy, the vacancy shall be filled in the manner of the original appointment for the remainder of the term. The appointed members and commissioners shall receive no compensation for their services but shall be allowed their actual and necessary expenses incurred in the performance of their duties as board members. 3. Advisory board members shall have statewide geographic represen- tation that is balanced and diverse in its composition. Appointed members shall have an expertise in public and behavioral health, substance use disorder treatment, effective rehabilitative treatment for adults and juveniles, economic development, environmental conservation, job training and placement, criminal justice, and drug policy. Further, the advisory board shall include residents from communities most impacted by cannabis prohibition, people with prior drug convictions, the formerly incarcerated, and representatives of organizations serving communities impacted by past federal and state drug policies. 4. The chairperson of the advisory board and the vice chairperson shall be elected from among the members of the advisory board by the members of such advisory board. The vice chairperson shall represent the advisory board in the absence of the chairperson at all official advi- sory board functions. 5. The advisory board shall work in collaboration with the cannabis control board and the executive director prior to the adoption of any rules and regulations governing the medical cannabis, adult-use cannabis or cannabinoid hemp and hemp extract industries. The advisory board shall also make recommendations to the cannabis control board, the S. 1527--C 16 office and the legislature on cannabis and hemp cultivation, processing, distribution, transport, social and economic equity in the cannabis and hemp industries, criminal justice, public health and safety concerns, law enforcement related to cannabis and cannabis products, and on the testing and sale of cannabis and cannabis products. § 15. Disposition of moneys received for license fees. The board shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this chapter and the size of the canna- bis business being licensed, as follows: 1. The board shall charge each registered organization, licensee and permittee a registration, licensure or permit fee, and renewal fee, as applicable. The fees may vary depending upon the nature and scope of the different registration, licensure and permit activities. 2. The total fees assessed pursuant to this chapter shall be set at an amount that will generate sufficient total revenue to, at a minimum, fully cover the total costs of administering this chapter. 3. All registration and licensure fees shall be set on a scaled basis by the board, dependent on the size and capacity of the business and for social and economic equity applicants such fees may be assessed to accomplish the goals of this chapter. 4. The board shall deposit all fees collected in the New York state cannabis revenue fund established pursuant to section ninety-nine-hh of the state finance law. § 16. Violations of cannabis laws or regulations; penalties and injunctions. 1. Any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regu- lation pursuant thereto for which a civil or criminal penalty is not otherwise expressly prescribed by law, shall be liable to the people of the state for a civil penalty of not to exceed five thousand dollars for every such violation. 2. The penalty provided for in subdivision one of this section may be recovered by an action brought by the board in any court of competent jurisdiction. 3. Such civil penalty may be released or compromised by the board before the matter has been referred to the attorney general, and where such matter has been referred to the attorney general, any such penalty may be released or compromised and any action commenced to recover the same may be settled and discontinued by the attorney general with the consent of the board. 4. It shall be the duty of the attorney general upon the request of the board to bring an action for an injunction against any person who violates, disobeys or disregards any term or provision of this chapter or of any lawful notice, order or regulation pursuant thereto; provided, however, that the executive director shall furnish the attorney general with such material, evidentiary matter or proof as may be requested by the attorney general for the prosecution of such an action. 5. It is the purpose of this section to provide additional and cumula- tive remedies, and nothing herein contained shall abridge or alter rights of action or remedies now or hereafter existing, nor shall any provision of this section, nor any action done by virtue of this section, be construed as estopping the state, persons or municipalities in the exercising of their respective rights. § 17. Formal hearings; notice and procedure. 1. The board, or any person designated by them for this purpose, may issue subpoenas and administer oaths in connection with any hearing or investigation under or pursuant to this chapter, and it shall be the duty of the board and S. 1527--C 17 any persons designated by them for such purpose to issue subpoenas at the request of and upon behalf of the respondent. 2. The board and those designated by them shall not be bound by the laws of evidence in the conduct of hearing proceedings, but the determi- nation shall be founded upon preponderance of evidence to sustain it. 3. Notice and right of hearing as provided in the state administrative procedure act, shall be served at least fifteen days prior to the date of the hearing, provided that, whenever because of danger to the public health, safety or welfare it appears prejudicial to the interests of the people of the state to delay action for fifteen days, the board may serve the respondent with an order requiring certain action or the cessation of certain activities immediately or within a specified period of less than fifteen days. 4. Service of notice of hearing or order shall be made by personal service or by registered or certified mail. Where service, whether by personal service or by registered or certified mail, is made upon an incompetent, partnership, or corporation, it shall be made upon the person or persons designated to receive personal service by article three of the civil practice law and rules. 5. At a hearing, that to the greatest extent practicable shall be reasonably near the respondent, the respondent may appear personally, shall have the right of counsel, and may cross-examine witnesses against him or her and produce evidence and witnesses in his or her behalf. 6. Following a hearing, the board may make appropriate determinations and issue a final order in accordance therewith. 7. The board may adopt, amend and repeal administrative rules and regulations governing the procedures to be followed with respect to hearings, such rules to be consistent with the policy and purpose of this chapter and the effective and fair enforcement of its provisions. 8. The provisions of this section shall be applicable to all hearings held pursuant to this chapter, except where other provisions of this chapter applicable thereto are inconsistent therewith, in which event such other provisions shall apply. § 18. Ethics, transparency and accountability. No member of the board or office or any officer, deputy, assistant, inspector or employee, or spouse or minor child of such member, officer, assistant, inspector or employee thereof shall have any interest, direct or indirect, either proprietary or by means of any loan, mortgage or lien, or in any other manner, in or on any premises where adult-use cannabis, medical cannabis or cannabinoid hemp and hemp extract is cultivated, processed, distrib- uted or sold; nor shall he or she have any interest, direct or indirect, in any business wholly or partially devoted to the cultivation, process- ing, distribution, sale, transportation or storage of adult-use canna- bis, medical cannabis or cannabinoid hemp and hemp extract, or own any stock in any corporation which has any interest, proprietary or other- wise, direct or indirect, in any premises where adult use cannabis, medical cannabis or cannabinoid hemp and hemp extract is cultivated, processed, distributed or sold, or in any business wholly or partially devoted to the cultivation, processing, distribution, sale, transporta- tion or storage of adult-use cannabis, medical cannabis or cannabinoid hemp and hemp extract, or receive any commission or profit whatsoever, direct or indirect, from any person applying for or receiving any license or permit provided for in this chapter, or hold any other elected or appointed public office in the state or in any political subdivision. After notice and opportunity to be heard, anyone found to have knowingly violated any of the provisions of this section shall, S. 1527--C 18 after notice, be removed and shall divest themselves of such direct or indirect interests, in addition to any other penalty provided by law. ARTICLE 3 MEDICAL CANNABIS Section 30. Certification of patients. 31. Lawful medical use. 32. Registry identification cards. 33. Registration as a designated caregiver facility. 34. Registered organizations. 35. Registering of registered organizations. 36. Reports of registered organizations. 37. Evaluation; research programs; report by board. 38. Cannabis research license. 39. Registered organizations and adult-use cannabis. 40. Relation to other laws. 41. Home cultivation of medical cannabis. 42. Protections for the medical use of cannabis. 43. Regulations. 44. Suspend; terminate. 45. Pricing. § 30. Certification of patients. 1. A patient certification may only be issued if: (a) the patient has a condition, which shall be specified in the patient's health care record; (b) the practitioner by training or experience is qualified to treat the condition; (c) the patient is under the practitioner's continuing care for the condition; and (d) in the practitioner's professional opinion and review of past treatments, the patient is likely to receive therapeutic or palliative benefit from the primary or adjunctive treatment with medical use of cannabis for the condition. 2. The certification shall include: (a) the name, date of birth and address of the patient; (b) a statement that the patient has a condition and the patient is under the practitioner's care for the condition; (c) a statement attesting that all requirements of subdivision one of this section have been satisfied; (d) the date; and (e) the name, address, telephone number, and the signature of the certifying practitioner. The board may require by regulation that the certification shall be on a form provided by the office. The practitioner may state in the certif- ication that, in the practitioner's professional opinion, the patient would benefit from medical cannabis only until a specified date. The practitioner may state in the certification that, in the practitioner's professional opinion, the patient is terminally ill and that the certif- ication shall not expire until the patient dies. 3. In making a certification, the practitioner may consider the form of medical cannabis the patient should consume, including the method of consumption and any particular strain, variety, and quantity or percent- age of cannabis or particular active ingredient, and appropriate dosage. The practitioner may state in the certification any recommendation or limitation the practitioner makes, in his or her professional opinion, concerning the appropriate form or forms of medical cannabis and dosage. 4. Every practitioner shall consult the prescription monitoring program registry prior to making or issuing a certification, for the S. 1527--C 19 purpose of reviewing a patient's controlled substance history. For purposes of this section, a practitioner may authorize a designee to consult the prescription monitoring program registry on his or her behalf, provided that such designation is in accordance with section thirty-three hundred forty-three-a of the public health law. 5. The practitioner shall give the certification to the certified patient, and place a copy in the patient's health care record. 6. No practitioner shall issue a certification under this section for themselves. 7. A registry identification card based on a certification shall expire one year after the date the certification is signed by the prac- titioner, except as provided for in subdivision eight of this section. 8. (a) If the practitioner states in the certification that, in the practitioner's professional opinion, the patient would benefit from medical cannabis only until a specified earlier date, then the registry identification card shall expire on that date; (b) if the practitioner states in the certification that in the practitioner's professional opinion the patient is terminally ill and that the certification shall not expire until the patient dies, then the registry identification card shall state that the patient is terminally ill and that the registration card shall not expire until the patient dies; (c) if the practitioner re-issues the certification to terminate the certification on an earlier date, then the registry identification card shall expire on that date and shall be promptly destroyed by the certified patient; (d) if the certification so provides, the registry identification card shall state any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and (e) the board shall make regulations to implement this subdivision. 9. (a) A certification may be a special certification if, in addition to the other requirements for a certification, the practitioner certi- fies in the certification that the patient's condition is progressive and degenerative or that delay in the patient's certified medical use of cannabis poses a risk to the patient's life or health. (b) The office shall create the form to be used for a special certif- ication and shall make that form available to be downloaded from the office's website. 10. Prior to issuing a certification a practitioner must complete, at a minimum, a two-hour course as determined by the board in regulation. For the purposes of this article a person's status as a practitioner is deemed to be a "license" for the purposes of section thirty-three hundred ninety of the public health law and shall be subject to the same revocation process. § 31. Lawful medical use. The possession, acquisition, use, delivery, transfer, transportation, or administration of medical cannabis by a certified patient, designated caregiver or the employees of a designated caregiver facility, for certified medical use, shall be lawful under this article provided that: 1. the cannabis that may be possessed by a certified patient shall not exceed a sixty-day supply of the dosage if determined by the practition- er, consistent with any guidance and regulations issued by the board, provided that during the last seven days of any sixty-day period, the certified patient may also possess up to such amount for the next sixty-day period; 2. the cannabis that may be possessed by designated caregivers does not exceed the quantities referred to in subdivision one of this section S. 1527--C 20 for each certified patient for whom the caregiver possesses a valid registry identification card, up to five certified patients; 3. the cannabis that may be possessed by designated caregiver facili- ties does not exceed the quantities referred to in subdivision one of this section for each certified patient under the care or treatment of the facility; 4. the form or forms of medical cannabis that may be possessed by the certified patient, designated caregiver or designated caregiver facility pursuant to a certification shall be in compliance with any recommenda- tion or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient in the certif- ication; 5. the medical cannabis shall be kept in the original package in which it was dispensed under this article, except for the portion removed for immediate consumption for certified medical use by the certified patient; and 6. in the case of a designated caregiver facility, the employee assisting the patient has been designated as such by the designated caregiver facility. § 32. Registry identification cards. 1. Upon approval of the certif- ication, the office shall issue registry identification cards for certi- fied patients and designated caregivers. A registry identification card shall expire as provided in this article or as otherwise provided in this section. The office shall begin issuing registry identification cards as soon as practicable after the certifications required by this chapter are granted. The office may specify a form for a registry appli- cation, in which case the office shall provide the form on request, reproductions of the form may be used, and the form shall be available for downloading from the board's or office's website. 2. To obtain, amend or renew a registry identification card, a certi- fied patient or designated caregiver shall file a registry application with the office, unless otherwise exempted by the board in regulation. The registry application or renewal application shall include: (a) in the case of a certified patient: (i) the patient's certification, a new written certification shall be provided with a renewal application; (ii) the name, address, and date of birth of the patient; (iii) the date of the certification; (iv) if the patient has a registry identification card based on a current valid certification, the registry identification number and expiration date of that registry identification card; (v) the specified date until which the patient would benefit from medical cannabis, if the certification states such a date; (vi) the name, address, and telephone number of the certifying practi- tioner; (vii) any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; (viii) if the certified patient designates a designated caregiver, the name, address, and date of birth of the designated caregiver, and other individual identifying information required by the board; (ix) if the designated caregiver is a cannabis research license holder under this chapter, the name of the organization conducting the research, the address, phone number, name of the individual leading the research or appropriate designee, and other identifying information required by the board; and (x) other individual identifying information required by the office; S. 1527--C 21 (b) in the case of a designated caregiver: (i) the name, address, and date of birth of the designated caregiver; (ii) if the designated caregiver has a registry identification card, the registry identification number and expiration date of that registry identification card; and (iii) other individual identifying information required by the office; (c) a statement that a false statement made in the application is punishable under section 210.45 of the penal law; (d) the date of the application and the signature of the certified patient or designated caregiver, as the case may be; (e) any other requirements determined by the board. 3. Where a certified patient is under the age of eighteen or otherwise incapable of consent: (a) The application for a registry identification card shall be made by the person responsible for making health care decisions for the patient. (b) The designated caregiver shall be: (i) a parent or legal guardian of the certified patient; (ii) a person designated by a parent or legal guardian; (iii) an employee of a designated caregiver facility, includ- ing a cannabis research license holder; or (iv) an appropriate person approved by the office upon a sufficient showing that no parent or legal guardian is appropriate or available. 4. No person may be a designated caregiver if the person is under twenty-one years of age unless a sufficient showing is made to the office that the person should be permitted to serve as a designated caregiver. The requirements for such a showing shall be determined by the board. 5. No person may be a designated caregiver for more than five certi- fied patients at one time; provided, however, that this limitation shall not apply to a designated caregiver facility, or cannabis research license holder as defined by this chapter. 6. If a certified patient wishes to change or terminate his or her designated caregiver, for whatever reason, the certified patient shall notify the office as soon as practicable. The office shall issue a notification to the designated caregiver that their registration card is invalid and must be promptly destroyed. The newly designated caregiver must comply with all requirements set forth in this section. 7. If the certification so provides, the registry identification card shall contain any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient. 8. The office shall issue separate registry identification cards for certified patients and designated caregivers as soon as reasonably prac- ticable after receiving a complete application under this section, unless it determines that the application is incomplete or factually inaccurate, in which case it shall promptly notify the applicant. 9. If the application of a certified patient designates an individual as a designated caregiver who is not authorized to be a designated care- giver, that portion of the application shall be denied by the office but that shall not affect the approval of the balance of the application. 10. A registry identification card shall: (a) contain the name of the certified patient or the designated care- giver as the case may be; (b) contain the date of issuance and expiration date of the registry identification card; S. 1527--C 22 (c) contain a registry identification number for the certified patient or designated caregiver, as the case may be and a registry identifica- tion number; (d) contain a photograph of the individual to whom the registry iden- tification card is being issued, which shall be obtained by the office in a manner specified by the board in regulations; provided, however, that if the office requires certified patients to submit photographs for this purpose, there shall be a reasonable accommodation of certified patients who are confined to their homes due to their medical conditions and may therefore have difficulty procuring photographs; (e) be a secure document as determined by the board; (f) plainly state any recommendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and (g) any other requirements determined by the board. 11. A certified patient or designated caregiver who has been issued a registry identification card shall notify the office of any change in his or her name or address or, with respect to the patient, if he or she ceases to have the condition noted on the certification within ten days of such change. The certified patient's or designated caregiver's regis- try identification card shall be deemed invalid and shall be promptly destroyed. 12. If a certified patient or designated caregiver loses his or her registry identification card, he or she shall notify the office within ten days of losing the card. The office shall issue a new registry iden- tification card as soon as practicable, which may contain a new registry identification number, to the certified patient or designated caregiver, as the case may be. 13. The office shall maintain a confidential list of the persons to whom it has issued registry identification cards. Individual identifying information obtained by the office under this article shall be confiden- tial and exempt from disclosure under article six of the public officers law. 14. The board shall verify to law enforcement personnel in an appro- priate case whether a registry identification card is valid. 15. If a certified patient or designated caregiver willfully violates any provision of this article as determined by the board, his or her certification and registry identification card may be suspended or revoked. This is in addition to any other penalty that may apply. 16. The board shall make regulations for special certifications, which shall include expedited procedures and which may require the applicant to submit additional documentation establishing the clinical basis for the special certification. If the board has not established and made available a form for a registry application or renewal application, or established and made available a form for a registry application or renewal application, then in the case of a special certification, a registry application or renewal application that otherwise conforms with the requirements of this section shall not require the use of a form. § 33. Registration as a designated caregiver facility. 1. To obtain, amend or renew a registration as a designated caregiver facility, the facility shall file a registry application with the office. The registry application or renewal application shall include: (a) the facility's full name and address; (b) operating certificate or license number where appropriate; (c) printed name, title, and signature of an authorized facility representative; S. 1527--C 23 (d) a statement that the facility agrees to secure and ensure proper handling of all medical cannabis products; (e) an acknowledgement that a false statement in the application is punishable under section 210.45 of the penal law; and (f) any other information that may be required by the board. 2. Prior to issuing or renewing a designated caregiver facility regis- tration, the office may verify the information submitted by the appli- cant. The applicant shall provide, at the office's request, such infor- mation and documentation, including any consents or authorizations that may be necessary for the office to verify the information. 3. The office shall approve, deny or determine incomplete or inaccu- rate an initial or renewal application within thirty days of receipt of the application. If the application is approved within the thirty-day period, the office shall issue a registration as soon as is reasonably practicable. 4. An applicant shall have thirty days from the date of a notification of an incomplete or factually inaccurate application to submit the mate- rials required to complete, revise or substantiate information in the application. If the applicant fails to submit the required materials within such thirty-day time period, the application shall be denied by the office. 5. Registrations issued under this section shall remain valid for two years from the date of issuance. § 34. Registered organizations. 1. A registered organization shall be a for-profit business entity or not-for-profit corporation organized for the purpose of acquiring, possessing, manufacturing, selling, deliver- ing, transporting, distributing or dispensing cannabis for certified medical use. 2. The acquiring, possession, manufacture, sale, delivery, transport- ing, distributing or dispensing of medical cannabis by a registered organization under this article in accordance with its registration under this article or a renewal thereof shall be lawful under this chap- ter. 3. Each registered organization shall contract with an independent laboratory permitted by the board to test the medical cannabis produced by the registered organization. The board shall approve the laboratory used by the registered organization and may require that the registered organization use a particular testing laboratory. The board is author- ized to issue regulations requiring the laboratory to perform certain tests and services. 4. (a) A registered organization may lawfully, in good faith, sell, deliver, distribute or dispense medical cannabis to a certified patient or designated caregiver upon presentation to the registered organization of a valid registry identification card for that certified patient or designated caregiver. When presented with the registry identification card, the registered organization shall provide to the certified patient or designated caregiver a receipt, which shall state: the name, address, and registry identification number of the registered organization; the name and registry identification number of the certified patient and the designated caregiver, if any; the date the cannabis was sold; any recom- mendation or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient; and the form and the quantity of medical cannabis sold. The registered organization shall retain a copy of the registry identification card and the receipt for six years. S. 1527--C 24 (b) The proprietor of a registered organization shall file or cause to be filed any receipt and certification information with the office by electronic means on a real-time basis as the board shall require by regulation. When filing receipt and certification information electron- ically pursuant to this paragraph, the proprietor of the registered organization shall dispose of any electronically recorded prescription information in such manner as the board shall by regulation require. 5. (a) No registered organization may sell, deliver, distribute or dispense to any certified patient or designated caregiver a quantity of medical cannabis larger than that individual would be allowed to possess under this chapter. (b) When dispensing medical cannabis to a certified patient or desig- nated caregiver, the registered organization: (i) shall not dispense an amount greater than a sixty-day supply to a certified patient until the certified patient has exhausted all but a seven day supply provided pursuant to a previously issued certification; and (ii) shall verify the information in subparagraph (i) of this paragraph by consulting the prescription monitoring program registry under this article. (c) Medical cannabis dispensed to a certified patient or designated caregiver by a registered organization shall conform to any recommenda- tion or limitation by the practitioner as to the form or forms of medical cannabis or dosage for the certified patient. 6. When a registered organization sells, delivers, distributes or dispenses medical cannabis to a certified patient or designated caregiv- er, it shall provide to that individual a safety insert, which will be developed by the registered organization and approved by the board and include, but not be limited to, information on: (a) methods for administering medical cannabis, (b) any potential dangers stemming from the use of medical cannabis, (c) how to recognize what may be problematic usage of medical cannabis and obtain appropriate services or treatment for problematic usage, and (d) other information as determined by the board. 7. Registered organizations shall not be managed by or employ anyone who has been convicted within three years of the date of hire, of any felony related to the functions or duties of operating a business, except that if the board determines that the manager or employee is otherwise suitable to be hired, and hiring the manager or employee would not compromise public safety, the board shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the manager or employee, and shall evaluate the suit- ability of the manager or employee based on the evidence found through the review. In determining which offenses are substantially related to the functions or duties of operating a business, the board shall include, but not be limited to, the following: (a) a felony conviction involving fraud, money laundering, forgery and other unlawful conduct related to owning and operating a business; and (b) a felony conviction for hiring, employing or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance, or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor. A felony conviction for the sale or possession of drugs, narcotics, or controlled substances is not substantially related. This subdivision shall only apply to managers or employees who come into contact with or handle medical cannabis. S. 1527--C 25 8. Manufacturing of medical cannabis by a registered organization shall only be done in an indoor, enclosed, secure facility located in New York state, which may include a greenhouse. The board shall promul- gate regulations establishing requirements for such facilities. 9. Dispensing of medical cannabis by a registered organization shall only be done in an indoor, enclosed, secure facility located in New York state, which may include a greenhouse. The board shall promulgate regu- lations establishing requirements for such facilities. 10. A registered organization may contract with a person or entity to provide facilities, equipment or services that are ancillary to the registered organization's functions or activities under this article including, but not limited to, shipping, maintenance, construction, repair, and security, provided that the person or entity shall not perform any function or activity directly involving the planting, grow- ing, tending, harvesting, processing, or packaging of cannabis plants, medical cannabis, or medical cannabis products being produced by the registered organization; or any other function directly involving manu- facturing or retailing of medical cannabis. All laws and regulations applicable to such facilities, equipment, or services shall apply to the contract. The registered organization and other parties to the contract shall each be responsible for compliance with such laws and regulations under the contract. The board may make regulations consistent with this article relating to contracts and parties to contracts under this subdi- vision. 11. A registered organization shall, based on the findings of an inde- pendent laboratory, provide documentation of the quality, safety and clinical strength of the medical cannabis manufactured or dispensed by the registered organization to the office and to any person or entity to which the medical cannabis is sold or dispensed. 12. A registered organization shall be deemed to be a "health care provider" for the purposes of title two-D of article two of the public health law. 13. Medical cannabis shall be dispensed to a certified patient or designated caregiver in a sealed and properly labeled package. The labeling shall contain: (a) the information required to be included in the receipt provided to the certified patient or designated caregiver by the registered organization; (b) the packaging date; (c) any applicable date by which the medical cannabis should be used; (d) a warning stat- ing, "This product is for medicinal use only. Women should not consume during pregnancy or while breastfeeding except on the advice of the certifying health care practitioner, and in the case of breastfeeding mothers, including the infant's pediatrician. This product might impair the ability to drive. Keep out of reach of children."; (e) the amount of individual doses contained within; and (f) a warning that the medical cannabis must be kept in the original container in which it was dispensed. 14. The board is authorized to make rules and regulations restricting the advertising and marketing of medical cannabis. § 35. Registering of registered organizations. 1. (a) An applicant for registration as a registered organization under section thirty-four of this article shall include such information prepared in such manner and detail as the board may require, including but not limited to: (i) a description of the activities in which it intends to engage as a registered organization; (ii) that the applicant: (A) is of good moral character; S. 1527--C 26 (B) possesses or has the right to use sufficient land, buildings, and other premises, which shall be specified in the application, and equip- ment to properly carry on the activity described in the application, or in the alternative posts a bond of not less than two million dollars; (C) is able to maintain effective security and control to prevent diversion, abuse, and other illegal conduct relating to the cannabis; and (D) is able to comply with all applicable state laws and regulations relating to the activities in which it intends to engage under the registration; (iii) that the applicant has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees and the maintenance of such a labor peace agreement shall be an ongoing material condition of certification; (iv) the applicant's status as a for-profit business entity or not- for-profit corporation; and (v) the application shall include the name, residence address and title of each of the officers and directors and the name and residence address of any person or entity that is a member of the applicant. Each such person, if an individual, or lawful representative if a legal enti- ty, shall submit an affidavit with the application setting forth: (A) any position of management or ownership during the preceding ten years of a twenty per centum or greater interest in any other business, located in or outside this state, manufacturing or distributing drugs; (B) whether such person or any such business has been convicted of a felony or had a registration or license suspended or revoked in any administrative or judicial proceeding; and (C) such other information as the board may reasonably require. 2. The applicant shall be under a continuing duty to report to the office any change in facts or circumstances reflected in the application or any newly discovered or occurring fact or circumstance which is required to be included in the application. 3. (a) The board shall grant a registration or amendment to a regis- tration under this section if he or she is satisfied that: (i) the applicant will be able to maintain effective control against diversion of cannabis; (ii) the applicant will be able to comply with all applicable state laws; (iii) the applicant and its officers are ready, willing and able to properly carry on the manufacturing or distributing activity for which a registration is sought; (iv) the applicant possesses or has the right to use sufficient land, buildings and equipment to properly carry on the activity described in the application; (v) it is in the public interest that such registration be granted, including but not limited to: (A) whether the number of registered organizations in an area will be adequate or excessive to reasonably serve the area; (B) whether the registered organization is a minority and/or woman owned business enterprise or a service-disabled veteran-owned business; (C) whether the registered organization provides education and outreach to practitioners; (D) whether the registered organization promotes the research and development of medical cannabis and patient outreach; and S. 1527--C 27 (E) the affordability of medical cannabis products offered by the registered organization; (vi) the applicant and its managing officers are of good moral charac- ter; (vii) the applicant has entered into a labor peace agreement with a bona fide labor organization that is actively engaged in representing or attempting to represent the applicant's employees; and the maintenance of such a labor peace agreement shall be an ongoing material condition of registration; and (viii) the applicant satisfies any other conditions as determined by the board. (b) If the board is not satisfied that the applicant should be issued a registration, he or she shall notify the applicant in writing of those factors upon which further evidence is required. Within thirty days of the receipt of such notification, the applicant may submit additional material to the board or demand a hearing, or both. (c) The fee for a registration under this section shall be an amount determined by the board in regulations; provided, however, if the regis- tration is issued for a period greater than two years the fee shall be increased, pro rata, for each additional month of validity. (d) Registrations issued under this section shall be effective only for the registered organization and shall specify: (i) the name and address of the registered organization; (ii) which activities of a registered organization are permitted by the registration; (iii) the land, buildings and facilities that may be used for the permitted activities of the registered organization; and (iv) such other information as the board shall reasonably provide to assure compliance with this article. (e) Upon application of a registered organization, a registration may be amended to allow the registered organization to relocate within the state or to add or delete permitted registered organization activities or facilities. The fee for such amendment shall be two hundred fifty dollars. 4. A registration issued under this section shall be valid for two years from the date of issue, except that in order to facilitate the renewals of such registrations, the board may upon the initial applica- tion for a registration, issue some registrations which may remain valid for a period of time greater than two years but not exceeding an addi- tional eleven months. 5. (a) An application for the renewal of any registration issued under this section shall be filed with the board not more than six months nor less than four months prior to the expiration thereof. A late-filed application for the renewal of a registration may, in the discretion of the board, be treated as an application for an initial license. (b) The application for renewal shall include such information prepared in the manner and detail as the board may require, including but not limited to: (i) any material change in the circumstances or factors listed in subdivision one of this section; and (ii) every known charge or investigation, pending or concluded during the period of the registration, by any governmental or administrative agency with respect to: S. 1527--C 28 (A) each incident or alleged incident involving the theft, loss, or possible diversion of medical cannabis manufactured or distributed by the applicant; and (B) compliance by the applicant with the laws of the state with respect to any substance listed in section thirty-three hundred six of the public health law. (c) An applicant for renewal shall be under a continuing duty to report to the board any change in facts or circumstances reflected in the application or any newly discovered or occurring fact or circum- stance which is required to be included in the application. (d) If the board is not satisfied that the registered organization applicant is entitled to a renewal of the registration, the board shall within a reasonably practicable time as determined by the executive director, serve upon the registered organization or its attorney of record in person or by registered or certified mail an order directing the registered organization to show cause why its application for renewal should not be denied. The order shall specify in detail the respects in which the applicant has not satisfied the board that the registration should be renewed. (e) Within a reasonably practicable time as determined by the board of such order, the applicant may submit additional material to the board or demand a hearing or both; if a hearing is demanded the board shall fix a date as soon as reasonably practicable. 6. (a) The board shall renew a registration unless he or she deter- mines and finds that: (i) the applicant is unlikely to maintain or be able to maintain effective control against diversion; (ii) the applicant is unlikely to comply with all state laws applica- ble to the activities in which it may engage under the registration; (iii) it is not in the public interest to renew the registration because the number of registered organizations in an area is excessive to reasonably serve the area; or (iv) the applicant has either violated or terminated its labor peace agreement. (b) For purposes of this section, proof that a registered organiza- tion, during the period of its registration, has failed to maintain effective control against diversion, violates any provision of this article, or has knowingly or negligently failed to comply with applica- ble state laws relating to the activities in which it engages under the registration, shall constitute grounds for suspension, termination or limitation of the registered organization's registration or as deter- mined by the board. The registered organization shall also be under a continuing duty to report to the authority any material change or fact or circumstance to the information provided in the registered organiza- tion's application. 7. The board may suspend or terminate the registration of a registered organization, on grounds and using procedures under this article relat- ing to a license, to the extent consistent with this article. The authority shall suspend or terminate the registration in the event that a registered organization violates or terminates the applicable labor peace agreement. Conduct in compliance with this article which may violate conflicting federal law, shall not be grounds to suspend or terminate a registration. 8. A registered organization that manufactures medical cannabis may have no more than four dispensing sites wholly owned and operated by such registered organization. Such registered organization may have an S. 1527--C 29 additional four dispensing sites; provided, however, that the first two additional dispensing sites shall be located in underserved or unserved geographic locations, as determined by the board. The board shall ensure that such registered organizations and dispensing sites are geograph- ically distributed across the state and that their ownership reflects the demographics of the state. The board shall register additional registered organizations to provide services to unserved and underserved areas of the state. Additional registered organization shall be reflec- tive of the demographics of the state. § 36. Reports of registered organizations. 1. The board shall, by regulation, require each registered organization to file reports by the registered organization during a particular period. The board shall determine the information to be reported and the forms, time, and manner of the reporting. 2. The board shall, by regulation, require each registered organiza- tion to adopt and maintain security, tracking, record keeping, record retention and surveillance systems, relating to all medical cannabis at every stage of acquiring, possession, manufacture, sale, delivery, transporting, distributing, or dispensing by the registered organiza- tion, subject to regulations of the board. § 37. Evaluation; research programs; report by board. 1. The board may provide for the analysis and evaluation of the operation of this article. The board may enter into agreements with one or more persons, not-for-profit corporations or other organizations, for the performance of an evaluation of the implementation and effectiveness of this arti- cle. 2. The board may develop, seek any necessary federal approval for, and carry out research programs relating to medical use of cannabis. Partic- ipation in any such research program shall be voluntary on the part of practitioners, patients, and designated caregivers. 3. The board shall report every two years, beginning two years after the effective date of this article, to the governor and the legislature on the medical use of cannabis under this article and make appropriate recommendations. § 38. Cannabis research license. 1. The board shall establish a cannabis research license that permits a licensee to produce, process, purchase and possess cannabis for the following limited research purposes: (a) to test chemical potency and composition levels; (b) to conduct clinical investigations of cannabis-derived drug products; (c) to conduct research on the efficacy and safety of administering cannabis as part of medical treatment; and (d) to conduct genomic or agricultural research. 2. As part of the application process for a cannabis research license, an applicant must submit to the board a description of the research that is intended to be conducted as well as the amount of cannabis to be grown or purchased. The board shall review an applicant's research project and determine whether it meets the requirements of subdivision one of this section. In addition, the board shall assess the application based on the following criteria: (a) project quality, study design, value, and impact; (b) whether the applicant has the appropriate personnel, expertise, facilities and infrastructure, funding, and human, animal, or other approvals in place to successfully conduct the project; and S. 1527--C 30 (c) whether the amount of cannabis to be grown or purchased by the applicant is consistent with the project's scope and goals. If the office determines that the research project does not meet the require- ments of subdivision one of this section, the application must be denied. 3. A cannabis research licensee may only sell cannabis grown or within its operation to other cannabis research licensees. The board may revoke a cannabis research license for violations of this section. 4. A cannabis research licensee may contract with an institution of higher education, including but not limited to a hospital within the state university of New York, to perform research in conjunction with such institution. All research projects, entered into under this section must be approved by the board and meet the requirements of subdivision one of this section. 5. In establishing a cannabis research license, the board may adopt regulations on the following: (a) application requirements; (b) cannabis research license renewal requirements, including whether additional research projects may be added or considered; (c) conditions for license revocation; (d) security measures to ensure cannabis is not diverted to purposes other than research; (e) amount of plants, useable cannabis, cannabis concentrates, or cannabis-infused products a licensee may have on its premises; (f) licensee reporting requirements; (g) conditions under which cannabis grown by licensed cannabis produc- ers and other product types from licensed cannabis processors may be donated to cannabis research licensees; and (h) any additional requirements deemed necessary by the board. 6. A cannabis research license issued pursuant to this section must be issued in the name of the applicant and specify the location at which the cannabis researcher intends to operate, which must be within the state of New York. 7. The application fee for a cannabis research license shall be deter- mined by the board on an annual basis. 8. Each cannabis research licensee shall issue an annual report to the board. The board shall review such report and make a determination as to whether the research project continues to meet the research qualifica- tions under this section. § 39. Registered organizations and adult-use cannabis. The board shall have the authority to grant some or all of the registered organizations registered with the department of health and currently registered and in good standing with the office, the ability to obtain adult-use cannabis licenses pursuant to article four of this chapter subject to any fees, rules or conditions prescribed by the board in regulation. § 40. Relation to other laws. 1. The provisions of this article shall apply, except that where a provision of this article conflicts with another provision of this chapter, this article shall apply. 2. Medical cannabis shall not be deemed to be a "drug" for purposes of article one hundred thirty-seven of the education law. § 41. Home cultivation of medical cannabis. 1. Notwithstanding the provisions of section thirty-three hundred eighty-two of the public health law certified patients and their designated caregiver(s) twenty- one years of age or older may: (a) plant, cultivate, harvest, dry, process or possess no more than six mature cannabis plants at any one time; or S. 1527--C 31 (b) plant, cultivate, harvest, dry, process or possess, within his or her private residence, or on the grounds of his or her private resi- dence, no more than six mature cannabis plan