[ ] is old law to be omitted. LBD05327-10-8 S. 3040--C 2 221.25, 221.30, 221.35 and 221.40 of the penal law relating to the criminal possession and sale of marihuana; to repeal paragraph (f) of subdivision 2 of section 850 of the general business law relating to drug related paraphernalia; to repeal section 150.75 of the criminal procedure law relating to appearance tickets for certain marihuana offenses; and making an appropriation therefor 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. 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 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 also disproportionately impacted African-American and Latino communi- ties. The intent of this act is to regulate, control, and tax marihuana in a manner similar to alcohol, generate millions of dollars in new revenue, prevent access to marihuana by those under the age of twenty-one years, reduce the illegal drug market and reduce violent crime, reduce partic- ipation of otherwise law-abiding citizens in the illicit market, end the racially disparate impact of existing marihuana laws and create new industries and increase employment. 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 marihuana in the workplace, to allow driving under the influence of marihuana, to allow individuals to engage in conduct that endangers others, to allow smoking marihuana 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- ment of federal law or pose any obstacle to the federal enforcement of federal law. Nothing in this act is intended to limit any privileges or rights of a medical marihuana patient or medical marihuana caregiver under the New York Compassionate Care Act. It is the intent of this act that no child shall be the subject of a child neglect or abuse investigation or proceeding based solely on a parent's alleged use of marihuana. A newborn child's positive toxicology result for marihuana, is not sufficient on its own to support a finding of child neglect or abuse. Enactment of this act shall provide suffi- cient basis for New York state to favorably resolve open investigations and to amend and seal individuals' family court records and records of indicated child abuse or neglect reports currently in the statewide central register of child abuse and maltreatment based solely on the use of marihuana or where the reporter of suspected abuse or neglect was a law enforcement agency or staff person and the report was based solely upon the presence of a child during a marihuana-related arrest. S. 3040--C 3 § 3. Section 3302 of the public health law, as added by chapter 878 of the laws of 1972, subdivisions 1, 14, 16, 17 and 27 as amended and subdivisions 4, 5, 6, 7, 8, 11, 12, 13, 15, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28, 29 and 30 as renumbered by chapter 537 of the laws of 1998, subdivisions 9 and 10 as amended and subdivisions 34, 35, 36, 37, 38, 39 and 40 as added by chapter 178 of the laws of 2010, paragraph (a) of subdivision 20, the opening paragraph of subdivision 22 and subdivision 29 as amended by chapter 163 of the laws of 1973, subdivision 31 as amended by section 4 of part A of chapter 58 of the laws of 2004, subdi- vision 41 as added by section 6 of part A of chapter 447 of the laws of 2012, and subdivisions 42 and 43 as added by section 13 of part D of chapter 60 of the laws of 2014, is amended to read as follows: § 3302. Definitions of terms of general use in this article. Except where different meanings are expressly specified in subsequent provisions of this article, the following terms have the following mean- ings: 1. "Addict" means a person who habitually uses a controlled substance for a non-legitimate or unlawful use, and who by reason of such use is dependent thereon. 2. "Administer" means the direct application of a controlled substance, whether by injection, inhalation, ingestion, or any other means, to the body of a patient or research subject. 3. "Agent" means an authorized person who acts on behalf of or at the direction of a manufacturer, distributor, or dispenser. No person may be authorized to so act if under title VIII of the education law such person would not be permitted to engage in such conduct. It does not include a common or contract carrier, public warehouseman, or employee of the carrier or warehouseman when acting in the usual and lawful course of the carrier's or warehouseman's business. 4. ["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 two and one-half percent by weight of delta-9 tetrahydrocannabinol, or its isomer, delta-8 dibenzopyran numbering system, or delta-1 tetrahydrocannabinol or its isomer, delta 1 (6) mono- terpene numbering system. 5.] "Controlled substance" means a substance or substances listed in section thirty-three hundred six of this [chapter] TITLE. [6.] 5. "Commissioner" means commissioner of health of the state of New York. [7.] 6. "Deliver" or "delivery" means the actual, constructive or attempted transfer from one person to another of a controlled substance, whether or not there is an agency relationship. [8.] 7. "Department" means the department of health of the state of New York. [9.] 8. "Dispense" means to deliver a controlled substance to an ulti- mate user or research subject by lawful means, including by means of the internet, and includes the packaging, labeling, or compounding necessary to prepare the substance for such delivery. [10.] 9. "Distribute" means to deliver a controlled substance, includ- ing by means of the internet, other than by administering or dispensing. [11.] 10. "Distributor" means a person who distributes a controlled substance. S. 3040--C 4 [12.] 11. "Diversion" means manufacture, possession, delivery or use of a controlled substance by a person or in a manner not specifically authorized by law. [13.] 12. "Drug" means (a) substances recognized as drugs in the official United States Phar- macopoeia, official Homeopathic Pharmacopoeia of the United States, or official National Formulary, or any supplement to any of them; (b) substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or animals; and (c) substances (other than food) intended to affect the structure or a function of the body of man or animal. It does not include devices or their components, parts, or accessories. [14.] 13. "Federal agency" means the Drug Enforcement Administration, United States Department of Justice, or its successor agency. [15.] 14. "Federal controlled substances act" means the Comprehensive Drug Abuse Prevention and Control Act of 1970, Public Law 91-513, and any act or acts amendatory or supplemental thereto or regulations promulgated thereunder. [16.] 15. "Federal registration number" means such number assigned by the Federal agency to any person authorized to manufacture, distribute, sell, dispense or administer controlled substances. [17.] 16. "Habitual user" means any person who is, or by reason of repeated use of any controlled substance for non-legitimate or unlawful use is in danger of becoming, dependent upon such substance. [18.] 17. "Institutional dispenser" means a hospital, veterinary hospital, clinic, dispensary, maternity home, nursing home, mental hospital or similar facility approved and certified by the department as authorized to obtain controlled substances by distribution and to dispense and administer such substances pursuant to the order of a prac- titioner. [19.] 18. "License" means a written authorization issued by the department or the New York state department of education permitting persons to engage in a specified activity with respect to controlled substances. [20.] 19. "Manufacture" means the production, preparation, propa- gation, compounding, cultivation, conversion or processing of a controlled substance, either directly or indirectly or by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and includes any packaging or repackaging of the substance or labeling or relabeling of its container, except that this term does not include the preparation, compounding, packaging or labeling of a controlled substance: (a) by a practitioner as an incident to his administering or dispens- ing of a controlled substance in the course of his professional prac- tice; or (b) by a practitioner, or by his authorized agent under his super- vision, for the purpose of, or as an incident to, research, teaching, or chemical analysis and not for sale; or (c) by a pharmacist as an incident to his dispensing of a controlled substance in the course of his professional practice. [21. "Marihuana" 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, S. 3040--C 5 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. 22.] 20. "Narcotic drug" means any of the following, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by a combi- nation of extraction and chemical synthesis: (a) opium and opiate, and any salt, compound, derivative, or prepara- tion of opium or opiate; (b) any salt, compound, isomer, derivative, or preparation thereof which is chemically equivalent or identical with any of the substances referred to in [subdivision] PARAGRAPH (a) OF THIS SUBDIVISION, but not including the isoquinoline alkaloids of opium; (c) opium poppy and poppy straw. [23.] 21. "Opiate" means any substance having an addiction-forming or addiction-sustaining liability similar to morphine or being capable of conversion into a drug having addiction-forming or addiction-sustaining liability. It does not include, unless specifically designated as controlled under section [3306] THIRTY-THREE HUNDRED SIX of this [arti- cle] TITLE, the dextrorotatory isomer of 3-methoxy-n-methylmorphinan and its salts (dextromethorphan). It does include its racemic and levorota- tory forms. [24.] 22. "Opium poppy" means the plant of the species Papaver somniferum L., except its seeds. [25.] 23. "Person" means individual, institution, corporation, govern- ment or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. [26.] 24. "Pharmacist" means any person licensed by the state depart- ment of education to practice pharmacy. [27.] 25. "Pharmacy" means any place registered as such by the New York state board of pharmacy and registered with the Federal agency pursuant to the federal controlled substances act. [28.] 26. "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing. [29.] 27. "Practitioner" means: A physician, dentist, podiatrist, veterinarian, scientific investi- gator, or other person licensed, or otherwise permitted to dispense, administer or conduct research with respect to a controlled substance in the course of a licensed professional practice or research licensed pursuant to this article. Such person shall be deemed a "practitioner" only as to such substances, or conduct relating to such substances, as is permitted by his license, permit or otherwise permitted by law. [30.] 28. "Prescribe" means a direction or authorization, by prescription, permitting an ultimate user lawfully to obtain controlled substances from any person authorized by law to dispense such substances. [31.] 29. "Prescription" shall mean an official New York state prescription, an electronic prescription, an oral prescription[,] OR an out-of-state prescription[, or any one]. [32.] 30. "Sell" means to sell, exchange, give or dispose of to anoth- er, or offer or agree to do the same. [33.] 31. "Ultimate user" means a person who lawfully obtains and possesses a controlled substance for his own use or the use by a member of his household or for an animal owned by him or in his custody. It shall also mean and include a person designated, by a practitioner on a S. 3040--C 6 prescription, to obtain such substance on behalf of the patient for whom such substance is intended. [34.] 32. "Internet" means collectively computer and telecommuni- cations facilities which comprise the worldwide network of networks that employ a set of industry standards and protocols, or any predecessor or successor protocol to such protocol, to exchange information of all kinds. "Internet," as used in this article, also includes other networks, whether private or public, used to transmit information by electronic means. [35.] 33. "By means of the internet" means any sale, delivery, distribution, or dispensing of a controlled substance that uses the internet, is initiated by use of the internet or causes the internet to be used. [36.] 34. "Online dispenser" means a practitioner, pharmacy, or person in the United States that sells, delivers or dispenses, or offers to sell, deliver, or dispense, a controlled substance by means of the internet. [37.] 35. "Electronic prescription" means a prescription issued with an electronic signature and transmitted by electronic means in accord- ance with regulations of the commissioner and the commissioner of educa- tion and consistent with federal requirements. A prescription generated on an electronic system that is printed out or transmitted via facsimile is not considered an electronic prescription and must be manually signed. [38.] 36. "Electronic" means of or relating to technology having elec- trical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities. "Electronic" shall not include facsimile. [39.] 37. "Electronic record" means a paperless record that is created, generated, transmitted, communicated, received or stored by means of electronic equipment and includes the preservation, retrieval, use and disposition in accordance with regulations of the commissioner and the commissioner of education and in compliance with federal law and regulations. [40.] 38. "Electronic signature" means an electronic sound, symbol, or process, attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the record, in accordance with regulations of the commissioner and the commissioner of education. [41.] 39. "Registry" or "prescription monitoring program registry" means the prescription monitoring program registry established pursuant to section thirty-three hundred forty-three-a of this article. [42.] 40. "Compounding" means the combining, admixing, mixing, dilut- ing, pooling, reconstituting, or otherwise altering of a drug or bulk drug substance to create a drug with respect to an outsourcing facility under section 503B of the federal Food, Drug and Cosmetic Act and further defined in this section. [43.] 41. "Outsourcing facility" means a facility that: (a) is engaged in the compounding of sterile drugs as defined in section sixty-eight hundred two of the education law; (b) is currently registered as an outsourcing facility pursuant to article one hundred thirty-seven of the education law; and (c) complies with all applicable requirements of federal and state law, including the Federal Food, Drug and Cosmetic Act. Notwithstanding any other provision of law to the contrary, when an outsourcing facility distributes or dispenses any drug to any person pursuant to a prescription, such outsourcing facility shall be deemed to S. 3040--C 7 be providing pharmacy services and shall be subject to all laws, rules and regulations governing pharmacies and pharmacy services. § 4. Paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31 and 32 of subdivision (d) of schedule I of section 3306 of the public health law, paragraphs 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 and 24 as added by chapter 664 of the laws of 1985, paragraphs 25, 26, 27, 28, 29 and 30 as added by chapter 589 of the laws of 1996 and paragraphs 31 and 32 as added by chapter 457 of the laws of 2006, are amended to read as follows: (13) [Marihuana. (14)] Mescaline. [(15)] (14) Parahexyl. Some trade or other names: 3-Hexyl-1-hydroxy- 7,8,9,10-tetra hydro-6,6,9-trimethyl-6H-dibenfo{b,d} pyran. [(16)] (15) Peyote. Meaning all parts of the plant presently classi- fied botanically as Lophophora williamsii Lemaire, whether growing or not, the seeds thereof, any extract from any part of such plant, and every compound, manufacture, salts, derivative, mixture, or preparation of such plant, its seeds or extracts. [(17)] (16) N-ethyl-3-piperidyl benzilate. [(18)] (17) N-methyl-3-piperidyl benzilate. [(19)] (18) Psilocybin. [(20)] (19) Psilocyn. [(21)] (20) Tetrahydrocannabinols. Synthetic TETRAHYDROCANNABINOLS NOT DERIVED FROM THE CANNABIS PLANT THAT ARE equivalents of the substances contained in the plant, or in the resinous extractives of cannabis, sp. and/or synthetic substances, derivatives, and their isomers with similar chemical structure and pharmacological activity such as the following: [/\] DELTA 1 cis or trans tetrahydrocannabinol, and their optical isomers [/\] DELTA 6 cis or trans tetrahydrocannabinol, and their optical isomers [/\] DELTA 3, 4 cis or trans tetrahydrocannabinol, and its optical isomers (since nomenclature of these substances is not internationally standardized, compounds of these structures, regardless of numerical designation of atomic positions covered). [(22)] (21) Ethylamine analog of phencyclidine. Some trade or other names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl) ethyla- mine, N-(1-phenylcyclohexyl) ethylamine cyclohexamine, PCE. [(23)] (22) Pyrrolidine analog of phencyclidine. Some trade or other names 1-(1-phenylcyclohexyl)-pyrrolidine; PCPy, PHP. [(24)] (23) Thiophene analog of phencyclidine. Some trade or other names: 1-{1-(2-thienyl)-cyclohexyl}-piperidine, 2-thienylanalog of phencyclidine, TPCP, TCP. [(25)] (24) 3,4-methylenedioxymethamphetamine (MDMA). [(26)] (25) 3,4-methylendioxy-N-ethylamphetamine (also known as N-ethyl-alpha-methyl-3,4 (methylenedioxy) phenethylamine, N-ethyl MDA, MDE, MDEA. [(27)] (26) N-hydroxy-3,4-methylenedioxyamphetamine (also known as N-hydroxy-alpha-methyl-3,4 (methylenedioxy) phenethylamine, and N-hydroxy MDA. [(28)] (27) 1-{1- (2-thienyl) cyclohexyl} pyrrolidine. Some other names: TCPY. [(29)] (28) Alpha-ethyltryptamine. Some trade or other names: etryptamine; Monase; Alpha-ethyl-1H-indole-3-ethanamine; 3- (2-aminobutyl) indole; Alpha-ET or AET. S. 3040--C 8 [(30)] (29) 2,5-dimethoxy-4-ethylamphetamine. Some trade or other names: DOET. [(31)] (30) 4-Bromo-2,5-dimethoxyphenethylamine. Some trade or other names: 2-(4-bromo-2,5-dimethoxyphenyl)-1-aminoethane; alpha-desmethyl DOB; 2C-B, Nexus. [(32)] (31) 2,5-dimethoxy-4-(n)-propylthiophenethylamine (2C-T-7), its optical isomers, salts and salts of isomers. § 5. Section 3382 of the public health law, as added by chapter 878 of the laws of 1972, is amended to read as follows: § 3382. Growing of the plant known as Cannabis by unlicensed persons. A person who, without being licensed so to do under this article, grows the plant of the genus Cannabis or knowingly allows it to grow on his land without destroying the same, shall be guilty of a class A misdemea- nor, UNLESS THE PERSON GROWS IN ACCORDANCE WITH SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW. § 6. Paragraph (d) of subdivision 3, subdivision 3-a and paragraphs (a) and (b) of subdivision 11 of section 1311 of the civil practice law and rules, paragraph (d) of subdivision three and subdivision 3-a as added by chapter 655 of the laws of 1990 and paragraphs (a) and (b) of subdivision 11 as amended by section 47 of part A-1 of chapter 56 of the laws of 2010, are amended to read as follows: (d) In a forfeiture action commenced by a claiming authority against a defendant, the following rebuttable presumption shall apply: all curren- cy or negotiable instruments payable to the bearer shall be presumed to be the proceeds of a pre-conviction forfeiture crime when such currency or negotiable instruments are (i) found in close proximity to a controlled substance unlawfully possessed by the defendant in an amount sufficient to constitute a violation of section 220.18 or 220.21 of the penal law, or (ii) found in close proximity to any quantity of a controlled substance [or marihuana] unlawfully possessed by such defend- ant in a room, other than a public place, under circumstances evincing an intent to unlawfully mix, compound, distribute, package or otherwise prepare for sale such controlled substance [or marihuana]. 3-a. Conviction of a person in a criminal action upon an accusatory instrument which includes one or more of the felonies specified in subdivision four-b of section thirteen hundred ten of this article, of any felony other than such felonies, shall not preclude a defendant, in any subsequent proceeding under this article where that conviction is at issue, from adducing evidence that the conduct underlying the conviction would not establish the elements of any of the felonies specified in such subdivision other than the one to which the criminal defendant pled guilty. If the defendant does adduce such evidence, the burden shall be upon the claiming authority to prove, by clear and convincing evidence, that the conduct underlying the criminal conviction would establish the elements of the felony specified in such subdivision. Nothing contained in this subdivision shall affect the validity of a settlement of any forfeiture action negotiated between the claiming authority and a crimi- nal defendant contemporaneously with the taking of a plea of guilty in a criminal action to any felony defined in article two hundred twenty [or section 221.30 or 221.55] of the penal law, or to a felony conspiracy to commit the same. (a) Any stipulation or settlement agreement between the parties to a forfeiture action shall be filed with the clerk of the court in which the forfeiture action is pending. No stipulation or settlement agreement shall be accepted for filing unless it is accompanied by an affidavit from the claiming authority that written notice of the stipulation or S. 3040--C 9 settlement agreement, including the terms of such, has been given to the office of victim services, the state division of criminal justice services[, and in the case of a forfeiture based on a felony defined in article two hundred twenty or section 221.30 or 221.55 of the penal law, to the state division of substance abuse services]. (b) No judgment or order of forfeiture shall be accepted for filing unless it is accompanied by an affidavit from the claiming authority that written notice of judgment or order, including the terms of such, has been given to the office of victim services, the state division of criminal justice services[, and in the case of a forfeiture based on a felony defined in article two hundred twenty or section 221.30 or 221.55 of the penal law, to the state division of substance abuse services]. § 7. Subdivision 1 of section 3397-b of the public health law, as added by chapter 810 of the laws of 1980, is amended to read as follows: 1. ["Marijuana"] "MARIHUANA" means [marijuana] MARIHUANA as defined in [section thirty-three hundred two of this chapter] SUBDIVISION SIX OF SECTION 220.00 OF THE PENAL LAW and shall also include tetrahydrocanna- binols or a chemical derivative of tetrahydrocannabinol. § 8. Section 114-a of the vehicle and traffic law, as added by chapter 163 of the laws of 1973, is amended to read as follows: § 114-a. Drug. The term "drug" when used in this chapter, means and includes any substance listed in section thirty-three hundred six of the public health law AND MARIHUANA AND CONCENTRATED CANNABIS AS DEFINED IN SECTION 220.00 OF THE PENAL LAW. § 9. Subdivisions 5, 6 and 9 of section 220.00 of the penal law, subdivision 5 as amended by chapter 537 of the laws of 1998, subdivision 6 as amended by chapter 1051 of the laws of 1973 and subdivision 9 as amended by chapter 664 of the laws of 1985, are amended and two new subdivisions 21 and 22 are added to read as follows: 5. "Controlled substance" means any substance listed in schedule I, II, III, IV or V of section thirty-three hundred six of the public health law other than marihuana, but including concentrated cannabis as defined in [paragraph (a) of subdivision four of section thirty-three hundred two of such law] SUBDIVISION TWENTY-ONE OF THIS SECTION. 6. "Marihuana" means ["marihuana" or "concentrated cannabis" as those terms are defined in section thirty-three hundred two of the public health law] ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROW- ING 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, MANUFACTURE, 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 ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNABINOL (THC). 9. "Hallucinogen" means any controlled substance listed in [schedule I(d)] PARAGRAPHS (5), [(18), (19), (20), (21) and (22)] (17), (18), (19), (20) AND (21) OF SUBDIVISION (D) OF SCHEDULE I OF SECTION THIRTY- THREE HUNDRED SIX OF THE PUBLIC HEALTH LAW. 21. "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 TETRAHYDRO- S. 3040--C 10 CANNABINOL, OR ITS ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1 TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1 (6) MONOTERPENE NUMBERING SYSTEM. 22. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA-INFUSED PRODUCTS CONTAINING CONCENTRATED MARIHUANA OR CANNABIS AND OTHER INGREDIENTS. § 10. Subdivision 4 of section 220.06 of the penal law, as amended by chapter 537 of the laws of 1998, is amended to read as follows: 4. one or more preparations, compounds, mixtures or substances containing concentrated cannabis as defined in [paragraph (a) of subdi- vision four of section thirty-three hundred two of the public health law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said preparations, compounds, mixtures or substances are of an aggregate weight of one-fourth ounce or more; or § 11. Subdivision 10 of section 220.09 of the penal law, as amended by chapter 537 of the laws of 1998, is amended to read as follows: 10. one or more preparations, compounds, mixtures or substances containing concentrated cannabis as defined in [paragraph (a) of subdi- vision four of section thirty-three hundred two of the public health law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE and said preparations, compounds, mixtures or substances are of an aggregate weight of one ounce or more; or § 12. Subdivision 3 of section 220.34 of the penal law, as amended by chapter 537 of the laws of 1998, is amended to read as follows: 3. concentrated cannabis as defined in [paragraph (a) of subdivision four of section thirty-three hundred two of the public health law] SUBDIVISION TWENTY-ONE OF SECTION 220.00 OF THIS ARTICLE; or § 13. Section 220.50 of the penal law, as amended by chapter 627 of the laws of 1990, is amended to read as follows: § 220.50 Criminally using drug paraphernalia in the second degree. A person is guilty of criminally using drug paraphernalia in the second degree when he knowingly possesses or sells: 1. Diluents, dilutants or adulterants, including but not limited to, any of the following: quinine hydrochloride, mannitol, mannite, lactose or dextrose, adapted for the dilution of narcotic drugs or stimulants under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for purposes of unlawfully mixing, compounding, or otherwise preparing any narcotic drug or stimulant, OTHER THAN MARIHUANA OR CONCENTRATED CANNA- BIS; or 2. Gelatine capsules, glassine envelopes, vials, capsules or any other material suitable for the packaging of individual quantities of narcotic drugs or stimulants under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for the purpose of unlawfully manufacturing, packaging or dispensing of any narcotic drug or stimulant, OTHER THAN MARIHUANA OR CONCENTRATED CANNABIS; or 3. Scales and balances used or designed for the purpose of weighing or measuring controlled substances, under circumstances evincing an intent to use, or under circumstances evincing knowledge that some person intends to use, the same for purpose of unlawfully manufacturing, pack- aging or dispensing of any narcotic drug or stimulant, OTHER THAN MARI- HUANA OR CONCENTRATED CANNABIS. Criminally using drug paraphernalia in the second degree is a class A misdemeanor. S. 3040--C 11 § 14. Sections 221.05, 221.10, 221.15, 221.20, 221.25, 221.30, 221.35 and 221.40 of the penal law are REPEALED. § 15. The penal law is amended by adding two new sections 221.05 and 221.05-a to read as follows: § 221.05 PERSONAL USE OF MARIHUANA. 1. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, THE FOLLOWING ACTS ARE LAWFUL UNDER STATE AND LOCAL LAW FOR PERSONS TWENTY-ONE YEARS OF AGE AND OLDER: (A) POSSESSING, USING, BEING UNDER THE INFLUENCE, DISPLAYING, PURCHAS- ING, OBTAINING, OR TRANSPORTING UP TO TWO POUNDS OF MARIHUANA AND FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS; (B) TRANSFERRING, WITHOUT REMUNERATION, TO A PERSON TWENTY-ONE YEARS OF AGE AND OLDER UP TO TWO POUNDS OF MARIHUANA AND FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS; (C) POSSESSING, PLANTING, CULTIVATING, HARVESTING, DRYING, PROCESSING OR TRANSPORTING NOT MORE THAN SIX LIVING MARIHUANA PLANTS AND POSSESSING THE MARIHUANA AND CONCENTRATED CANNABIS PRODUCED BY THE PLANTS; (D) SMOKING, INGESTING OR OTHERWISE CONSUMING MARIHUANA PRODUCTS; (E) POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING, MANUFACTUR- ING, TRANSPORTING OR GIVING AWAY TO PERSONS TWENTY-ONE YEARS OF AGE AND OLDER MARIHUANA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND (F) ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE AND OLDER OR ALLOW PROPERTY TO BE USED IN ANY OF THE ACTS DESCRIBED IN PARAGRAPHS (A) THROUGH (E) OF THIS SUBDIVISION. 2. PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION IS INTENDED TO MEET THE REQUIREMENTS OF SUBSECTION (F) OF SECTION 863 OF TITLE TWENTY- ONE OF THE UNITED STATES CODE (21 U.S.C. § 863 (F)) BY AUTHORIZING, UNDER STATE LAW, ANY PERSON IN COMPLIANCE WITH THIS SECTION TO MANUFAC- TURE, POSSESS, OR DISTRIBUTE MARIHUANA PARAPHERNALIA. 3. MARIHUANA PRODUCTS INVOLVED IN ANY WAY WITH CONDUCT DEEMED LAWFUL BY THIS SECTION ARE NOT CONTRABAND NOR SUBJECT TO SEIZURE OR FORFEITURE OF ASSETS UNDER ARTICLE FOUR HUNDRED EIGHTY OF THIS CHAPTER, SECTION THIRTEEN HUNDRED ELEVEN OF THE CIVIL PRACTICE LAW AND RULES, OR OTHER APPLICABLE LAW, AND NO CONDUCT DEEMED LAWFUL BY THIS SECTION SHALL CONSTITUTE THE BASIS FOR APPROACH, SEARCH, SEIZURE, ARREST, AND/OR DETENTION. 4. (A) EXCEPT AS PROVIDED IN SUBDIVISION FIVE OF THIS SECTION, NONE OF THE FOLLOWING SHALL, INDIVIDUALLY OR IN COMBINATION WITH EACH OTHER, CONSTITUTE REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE IN ANY CRIMINAL PROCEEDING: (1) THE ODOR OF MARIHUANA OR OF BURNT MARIHUANA; (2) THE POSSESSION OF OR THE SUSPICION OF POSSESSION OF MARIHUANA PRODUCTS; (3) THE POSSESSION OF MULTIPLE CONTAINERS OF MARIHUANA WITHOUT EVIDENCE OF MARIHUANA QUANTITY IN EXCESS OF SIXTEEN OUNCES OR CONCEN- TRATED CANNABIS QUANTITY IN EXCESS OF FOUR AND ONE-HALF OUNCES; OR (4) THE PRESENCE OF CASH OR CURRENCY CANNOT BE USED AS EVIDENCE IN ANY CASES INVOLVING UNLICENSED SALE OF MARIHUANA. (B) THE POSSESSION OF NOT MORE THAN TWO POUNDS OF MARIHUANA OR NOT MORE THAN FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS CANNOT BE USED AS EVIDENCE IN ANY CASES INVOLVING UNLICENSED SALE OF MARIHUANA. 5. SUBDIVISION FOUR OF THIS SECTION SHALL NOT APPLY WHEN A LAW ENFORCEMENT OFFICER IS INVESTIGATING WHETHER A PERSON IS OPERATING OR IN PHYSICAL CONTROL OF A VEHICLE OR WATERCRAFT WHILE INTOXICATED, UNDER THE INFLUENCE OF, OR IMPAIRED BY ALCOHOL OR A DRUG OR ANY COMBINATION THERE- S. 3040--C 12 OF IN VIOLATION OF SECTION ELEVEN HUNDRED NINETY-TWO OF THE VEHICLE AND TRAFFIC LAW. 6. POSSESSION OF GREATER THAN TWO POUNDS OF MARIHUANA AND GREATER THAN FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS IS A VIOLATION PUNISH- ABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER OFFENSE. § 221.05-A PERSONAL CULTIVATION OF MARIHUANA. 1. PERSONAL CULTIVATION OF MARIHUANA UNDER PARAGRAPH (C) OF SUBDIVI- SION ONE OF SECTION 221.05 OF THIS ARTICLE IS SUBJECT TO THE FOLLOWING RESTRICTIONS: (A) A PERSON SHALL PLANT, CULTIVATE, HARVEST, DRY, OR PROCESS PLANTS IN ACCORDANCE WITH LOCAL ORDINANCES, IF ANY, ADOPTED IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION; (B) THE LIVING PLANTS AND ANY MARIHUANA PRODUCED BY THE PLANTS IN EXCESS OF TWO POUNDS ARE KEPT WITHIN THE PERSON'S PRIVATE RESIDENCE, OR UPON THE GROUNDS OF THAT PRIVATE RESIDENCE (E.G., IN AN OUTDOOR GARDEN AREA), ARE IN A LOCKED SPACE, AND ARE NOT VISIBLE BY NORMAL UNAIDED VISION FROM A PUBLIC PLACE; AND (C) NOT MORE THAN SIX LIVING PLANTS MAY BE PLANTED, CULTIVATED, HARVESTED, DRIED, OR PROCESSED WITHIN A SINGLE PRIVATE RESIDENCE, OR UPON THE GROUNDS OF THAT PRIVATE RESIDENCE, AT ONE TIME. 2. (A) A TOWN, CITY OR VILLAGE MAY ENACT AND ENFORCE REASONABLE REGU- LATIONS TO REASONABLY REGULATE THE ACTIONS AND CONDUCT IN PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION 221.05 OF THIS ARTICLE, PROVIDED THAT A VIOLATION OF SUCH A REGULATION IS ONLY SUBJECT TO AN INFRACTION AND FINE. (B) NOTWITHSTANDING PARAGRAPH (A) OF THIS SUBDIVISION, NO TOWN, CITY OR VILLAGE MAY COMPLETELY PROHIBIT PERSONS ENGAGING IN THE ACTIONS AND CONDUCT UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION 221.05 OF THIS ARTICLE. 3. A VIOLATION OF SUBDIVISION ONE OR TWO OF THIS SECTION IS A VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS PER OFFENSE. § 16. Section 221.45 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.45 [Criminal] UNLICENSED sale of marihuana in the third degree. A person is guilty of [criminal] UNLICENSED sale of marihuana in the third degree when he knowingly and unlawfully sells [one or more prepa- rations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of more than twenty-five grams] WITH REMUNERATION NOT MORE THAN TWO POUNDS OF MARIHUANA OR NOT MORE THAN FOUR AND ONE-HALF OUNCES OF CONCENTRATED CANNABIS, NOT INCLUDING THE WEIGHT OF ANY OTHER INGREDIENT COMBINED WITH MARIHUANA TO PREPARE TOPICAL OR ORAL ADMINISTRATIONS, FOOD, DRINK, OR OTHER PRODUCT. [Criminal] UNLICENSED sale of marihuana in the third degree is [a class E felony] SUBJECT TO THE FOLLOWING: 1. A VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWEN- TY-FIVE DOLLARS, FOR A FIRST OFFENSE; 2. A VIOLATION PUBLISHABLE BY A FINE OF NOT MORE THAN TWO HUNDRED FIFTY DOLLARS FOR A SECOND OFFENSE; 3. A CLASS B MISDEMEANOR AND A FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR A THIRD OR SUBSEQUENT OFFENSE. S. 3040--C 13 § 17. Section 221.50 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.50 [Criminal] UNLICENSED sale of marihuana in the second degree. A person TWENTY-ONE YEARS OF AGE AND OLDER is guilty of [criminal] UNLICENSED sale of marihuana in the second degree when he knowingly and unlawfully sells one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of more than four ounces, or knowingly and unlawfully sells one or more preparations, compounds, mixtures [or substances containing marihuana] to a person less than [eighteen] TWENTY-ONE years of age. [Criminal] UNLICENSED sale of marihuana in the second degree is a class [D] E felony. § 18. Section 221.55 of the penal law, as amended by chapter 265 of the laws of 1979, the opening paragraph as amended by chapter 75 of the laws of 1995, is amended to read as follows: § 221.55 [Criminal] UNLICENSED sale of marihuana in the first degree. A person is guilty of [criminal] UNLICENSED sale of marihuana in the first degree when he knowingly and unlawfully sells TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE one or more preparations, compounds, mixtures or substances containing marihuana and the preparations, compounds, mixtures or substances are of an aggregate weight of more than sixteen ounces. [Criminal] UNLICENSED sale of marihuana in the first degree is a class [C] E felony. § 19. The penal law is amended by adding a new section 221.60 to read as follows: § 221.60 LICENSING OF MARIHUANA PRODUCTION AND DISTRIBUTION. THE PROVISIONS OF THIS ARTICLE AND OF ARTICLE TWO HUNDRED TWENTY OF THIS TITLE SHALL NOT APPLY TO ANY PERSON EXEMPTED FROM CRIMINAL PENAL- TIES PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR POSSESSING, MANUFAC- TURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANSFERRING MARIHUANA OR CONCENTRATED CANNABIS, OR ENGAGED IN ANY OTHER ACTION THAT IS IN COMPLI- ANCE WITH ARTICLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW. § 20. Subdivision 8 of section 1399-n of the public health law, as amended by chapter 13 of the laws of 2003, is amended to read as follows: 8. "Smoking" means the burning of a lighted cigar, cigarette, pipe or any other matter or substance which contains tobacco OR MARIHUANA; PROVIDED THAT IT DOES NOT INCLUDE THE USE OF AN ELECTRONIC SMOKING DEVICE THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES. § 21. Section 2 of the alcoholic beverage control law, as amended by chapter 406 of the laws of 2014, is amended to read as follows: § 2. Policy of state and purpose of chapter. It is hereby declared as the policy of the state that it is necessary to regulate and control the manufacture, sale and distribution within the state of alcoholic bever- ages AND MARIHUANA PRODUCTS for the purpose of fostering and promoting temperance in their consumption and respect for and obedience to law; for the primary purpose of promoting the health, welfare and safety of the people of the state, promoting temperance in the consumption of alcoholic beverages AND MARIHUANA PRODUCTS; and, to the extent possible, supporting economic growth, job development, and the state's alcoholic beverage production industries, MARIHUANA PRODUCTION INDUSTRIES and its tourism and recreation industry; and which promotes the conservation and S. 3040--C 14 enhancement of state agricultural lands; provided that such activities do not conflict with the primary regulatory objectives of this chapter. It is hereby declared that such policies will best be carried out by empowering the liquor authority of the state to determine whether public convenience and advantage will be promoted by the issuance of licenses to traffic in alcoholic beverages AND MARIHUANA PRODUCTS, the increase or decrease in the number thereof and the location of premises licensed thereby, subject only to the right of judicial review provided for in this chapter. It is the purpose of this chapter to carry out these poli- cies in the public interest. § 22. Subdivisions 20-a, 20-b, 20-c, 20-d and 20-e of section 3 of the alcoholic beverage control law are renumbered subdivisions 20-j, 20-k, 20-l, 20-m and 20-n and ten new subdivisions 7-e, 20-a, 20-b, 20-c, 20-d, 20-e, 20-f, 20-g, 20-h and 20-i are added to read as follows: 7-E. "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 TETRAHYDRO- CANNABINOL, OR ITS ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1 TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1 (6) MONOTERPENE NUMBERING SYSTEM. 20-A. "MARIHUANA" 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 ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA- BINOL (THC). 20-B. "MARIHUANA CONSUMER" MEANS A PERSON TWENTY-ONE YEARS OF AGE OR OLDER WHO PURCHASES MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE BY PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS. 20-C. "MARIHUANA PROCESSOR" MEANS A PERSON LICENSED BY THE BUREAU TO PURCHASE MARIHUANA AND CONCENTRATED CANNABIS FROM MARIHUANA PRODUCERS, TO PROCESS MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA INFUSED PRODUCTS, PACKAGE AND LABEL MARIHUANA, CONCENTRATED CANNABIS AND MARI- HUANA INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND SELL MARIHUANA, CONCENTRATED CANNABIS AND MARIHUANA INFUSED PRODUCTS AT WHOLESALE TO MARIHUANA RETAILERS. 20-D. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY THE BUREAU TO PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED CANNABIS AT WHOLE- SALE TO MARIHUANA PROCESSORS, MARIHUANA RETAILERS, OR OTHER MARIHUANA PRODUCERS, BUT NOT TO CONSUMERS. 20-E. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA-INFUSED PRODUCTS. 20-F. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARI- HUANA, OR CONCENTRATED CANNABIS AND ARE INTENDED FOR HUMAN USE OR CONSUMPTION, SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINTMENTS, AND TINCTURES. 20-G. "MARIHUANA RETAILER" MEANS A PERSON LICENSED BY THE BUREAU TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA-INFUSED PRODUCTS FROM MARIHUANA PRODUCERS AND MARIHUANA PROCESSORS AND SELL S. 3040--C 15 MARIHUANA, MARIHUANA INFUSED PRODUCTS, AND CONCENTRATED CANNABIS IN A RETAIL OUTLET. 20-H. "MARIHUANA RETAILER FOR ON-PREMISES CONSUMPTION" MEANS A PERSON LICENSED BY THE BUREAU TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA INFUSED PRODUCTS FROM MARIHUANA PRODUCERS, MARIHUANA RETAIL- ERS, AND MARIHUANA PROCESSORS AND SELL MARIHUANA PRODUCTS FOR A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN A FACILITY. 20-I. "UNREASONABLY IMPRACTICABLE" MEANS THAT THE MEASURES NECESSARY TO COMPLY WITH THE REGULATIONS REQUIRE SUCH A HIGH INVESTMENT OF RISK, MONEY, TIME OR OTHER RESOURCE OR ASSET THAT THE OPERATION OF A MARIHUANA ESTABLISHMENT IS NOT WORTHY OF BEING CARRIED OUT BY A REASONABLY PRUDENT BUSINESSPERSON. § 23. Section 65-b of the alcoholic beverage control law, as amended by chapter 519 of the laws of 1999, paragraphs (b) and (c) of subdivi- sion 3 as amended by chapter 257 of the laws of 2013 and the opening paragraph of subdivision 6 as amended by chapter 503 of the laws of 2000, is amended to read as follows: § 65-b. Offense for one under age of twenty-one years to purchase or attempt to purchase an alcoholic beverage OR MARIHUANA PRODUCTS through fraudulent means. 1. As used in this section: (a) "A device capable of deciphering any electronically readable format" or "device" shall mean any commercial device or combination of devices used at a point of sale or entry that is capable of reading the information encoded on the magnetic strip or bar code of a driver's license or non-driver identifi- cation card issued by the commissioner of motor vehicles; (b) "Card holder" means any person presenting a driver's license or non-driver identification card to a licensee, or to the agent or employ- ee of such licensee under this chapter; and (c) "Transaction scan" means the process involving a device capable of deciphering any electronically readable format by which a licensee, or agent or employee of a licensee under this chapter reviews a driver's license or non-driver identification card presented as a precondition for the purchase of an alcoholic beverage OR MARIHUANA PRODUCTS as required by subdivision two of this section or as a precondition for admission to an establishment licensed for the on-premises sale of alco- holic beverages OR MARIHUANA PRODUCTS where admission is restricted to persons twenty-one years or older. 2. (a) No person under the age of twenty-one years shall present or offer to any licensee under this chapter, or to the agent or employee of such licensee, any written evidence of age which is false, fraudulent or not actually his OR HER own, for the purpose of purchasing or attempting to purchase any alcoholic beverage OR MARIHUANA PRODUCTS. (b) No licensee, or agent or employee of such licensee shall accept as written evidence of age by any such person for the purchase of any alco- holic beverage OR MARIHUANA PRODUCTS, any documentation other than: (i) a valid driver's license or non-driver identification card issued by the commissioner of motor vehicles, the federal government, any United States territory, commonwealth or possession, the District of Columbia, a state government within the United States or a provincial government of the dominion of Canada, or (ii) a valid passport issued by the United States government or any other country, or (iii) an identification card issued by the armed forces of the United States. Upon the presentation of such driver's license or non-driver identification card issued by a governmental entity, such licensee or agent or employee thereof may perform a transaction scan as a precondition to the sale of any alcohol- ic beverage. Nothing in this section shall prohibit a licensee or agent S. 3040--C 16 or employee from performing such a transaction scan on any of the other documents listed in this subdivision if such documents include a bar code or magnetic strip that [that] may be scanned by a device capable of deciphering any electronically readable format. (c) In instances where the information deciphered by the transaction scan fails to match the information printed on the driver's license or non-driver identification card presented by the card holder, or if the transaction scan indicates that the information is false or fraudulent, the attempted purchase of the alcoholic beverage OR MARIHUANA PRODUCTS shall be denied. 3. A person violating the provisions of paragraph (a) of subdivision two of this section shall be guilty of a violation and shall be sentenced in accordance with the following: (a) For a first violation, the court shall order payment of a fine of not more than one hundred dollars and/or an appropriate amount of commu- nity service not to exceed thirty hours. In addition, the court may order completion of an alcohol awareness program established pursuant to section 19.25 of the mental hygiene law OR OF A MARIHUANA AWARENESS PROGRAM. (b) For a second violation, the court shall order payment of a fine of not less than fifty dollars nor more than three hundred fifty dollars and/or an appropriate amount of community service not to exceed sixty hours. The court also shall order completion of an alcohol OR MARIHUANA awareness program as referenced in paragraph (a) of this subdivision if such program has not previously been completed by the offender, unless the court determines that attendance at such program is not feasible due to the lack of availability of such program within a reasonably close proximity to the locality in which the offender resides or matriculates, as appropriate. (c) For third and subsequent violations, the court shall order payment of a fine of not less than fifty dollars nor more than seven hundred fifty dollars and/or an appropriate amount of community service not to exceed ninety hours. The court also shall order that such person submit to an evaluation by an appropriate agency certified or licensed by the office of alcoholism and substance abuse services to determine whether the person suffers from [the disease of alcoholism or] alcohol [abuse] USE DISORDER OR CANNABIS USE DISORDER, unless the court determines that under the circumstances presented such an evaluation is not necessary, in which case the court shall state on the record the basis for such determination. Payment for such evaluation shall be made by such person. If, based on such evaluation, a need for treatment is indicated, such person may choose to participate in a treatment plan developed by an agency certified or licensed by the office of alcoholism and substance abuse services. If such person elects to participate in recommended treatment, the court shall order that payment of such fine and community service be suspended pending the completion of such treatment. (d) Evaluation procedures. For purposes of this subdivision, the following shall apply: (i) The contents of an evaluation pursuant to paragraph (c) of this subdivision shall be used for the sole purpose of [determining if such person suffers from the disease of alcoholism or alcohol abuse] DETER- MINING IF SUCH PERSON MEETS THE CRITERIA FOR AN ALCOHOL USE DISORDER OR CANNABIS USE DISORDER. (ii) The agency designated by the court to perform such evaluation shall conduct the evaluation and return the results to the court within thirty days, subject to any state or federal confidentiality law, rule S. 3040--C 17 or regulation governing the confidentiality of alcohol and substance [abuse] USE DISORDER treatment records. (iii) The office of alcoholism and substance abuse services shall make available to each supreme court law library in this state, or, if no supreme court law library is available in a certain county, to the coun- ty court law library of such county, a list of agencies certified to perform evaluations as required by subdivision (f) of section 19.07 of the mental hygiene law. (iv) All evaluations required under this subdivision shall be in writ- ing and the person so evaluated or his or her counsel shall receive a copy of such evaluation prior to its use by the court. (v) A minor evaluated under this subdivision shall have, and shall be informed by the court of, the right to obtain a second opinion regarding his or her need for [alcoholism] treatment OF AN ALCOHOL OR OTHER SUBSTANCE USE DISORDER. 4. A person violating the provisions of paragraph (b) of subdivision two of this section shall be guilty of a violation punishable by a fine of not more than one hundred dollars, and/or an appropriate amount of community service not to exceed thirty hours. In addition, the court may order completion of an alcohol OR SUBSTANCE USE DISORDER training aware- ness program established pursuant to subdivision twelve of section seventeen of this chapter where such program is located within a reason- ably close proximity to the locality in which the offender is employed or resides. 5. No determination of guilt pursuant to this section shall operate as a disqualification of any such person subsequently to hold public office, public employment, or as a forfeiture of any right or privilege or to receive any license granted by public authority; and no such person shall be denominated a criminal by reason of such determination. 6. In addition to the penalties otherwise provided in subdivision three of this section, if a determination is made sustaining a charge of illegally purchasing or attempting to illegally purchase an alcoholic beverage OR MARIHUANA PRODUCTS, the court may suspend such person's license to drive a motor vehicle and the privilege of an unlicensed person of obtaining such license, in accordance with the following and for the following periods, if it is found that a driver's license was used for the purpose of such illegal purchase or attempt to illegally purchase; provided, however, that where a person is sentenced pursuant to paragraph (b) or (c) of subdivision three of this section, the court shall impose such license suspension if it is found that a driver's license was used for the purpose of such illegal purchase or attempt to illegally purchase: (a) For a first violation of paragraph (a) of subdivision two of this section, a three month suspension. (b) For a second violation of paragraph (a) of subdivision two of this section, a six month suspension. (c) For a third or subsequent violation of paragraph (a) of subdivi- sion two of this section, a suspension for one year or until the holder reaches the age of twenty-one, whichever is the greater period of time. Such person may thereafter apply for and be issued a restricted use license in accordance with the provisions of section five hundred thirty of the vehicle and traffic law. 7. (a) In any proceeding pursuant to subdivision one of section sixty-five of this article, it shall be an affirmative defense that such person had produced a driver's license or non-driver identification card apparently issued by a governmental entity, successfully completed the S. 3040--C 18 transaction scan, and that the alcoholic beverage OR MARIHUANA PRODUCTS had been sold, delivered or given to such person in reasonable reliance upon such identification and transaction scan. In evaluating the appli- cability of such affirmative defense, the liquor authority shall take into consideration any written policy adopted and implemented by the seller to carry out the provisions of this chapter. Use of a transaction scan shall not excuse any licensee under this chapter, or agent or employee of such licensee, from the exercise of reasonable diligence otherwise required by this section. Notwithstanding the above provisions, any such affirmative defense shall not be applicable in any other civil or criminal proceeding, or in any other forum. (b) A licensee or agent or employee of a licensee may electronically or mechanically record and maintain only the information from a trans- action scan necessary to effectuate the purposes of this section. Such information shall be limited to the following: (i) name, (ii) date of birth, (iii) driver's license or non-driver identification number, and (iv) expiration date. The liquor authority and the state commissioner of motor vehicles shall jointly promulgate any regulation necessary to govern the recording and maintenance of these records by a licensee under this chapter. The liquor authority and the commissioner of health shall jointly promulgate any regulations necessary to ensure quality control in the use of transaction scan devices. 8. A licensee or agent or employee of such licensee shall only use the information recorded and maintained through the use of such devices for the purposes contained in paragraph (a) of subdivision seven of this section, and shall only use such devices for the purposes contained in subdivision two of this section. No licensee or agent or employee of a licensee shall resell or disseminate the information recorded during such scan to any third person. Such prohibited resale or dissemination includes, but is not limited to, any advertising, marketing or promo- tional activities. Notwithstanding the restrictions imposed by this subdivision, such records may be released pursuant to a court ordered subpoena or pursuant to any other statute that specifically authorizes the release of such information. Each violation of this subdivision shall be punishable by a civil penalty of not more than one thousand dollars. § 24. Section 65-c of the alcoholic beverage control law, as added by chapter 592 of the laws of 1989, paragraph (a) of subdivision 2 as amended by chapter 409 of the laws of 2016 and subdivision 3 as amended by chapter 137 of the laws of 2001, is amended to read as follows: § 65-c. Unlawful possession of an alcoholic beverage OR MARIHUANA PRODUCT with the intent to consume by persons under the age of twenty- one years. 1. Except as hereinafter provided, no person under the age of twenty-one years shall possess any alcoholic beverage OR MARIHUANA PROD- UCT, as defined in this chapter, with the intent to consume such bever- age OR MARIHUANA PRODUCT. 2. A person under the age of twenty-one years may possess any alcohol- ic beverage OR MARIHUANA PRODUCT with intent to consume if the alcoholic beverage OR MARIHUANA PRODUCT is given: (a) to a person who is a student in a curriculum licensed or regis- tered by the state education department and the student is required to taste or imbibe alcoholic beverages OR MARIHUANA PRODUCTS in on-campus or off-campus courses which are a part of the required curriculum, provided such alcoholic beverages OR MARIHUANA PRODUCTS are used only for instructional purposes during class conducted pursuant to such curriculum; or S. 3040--C 19 (b) to the person under twenty-one years of age by that person's parent or guardian. 3. Any person who unlawfully possesses an alcoholic beverage OR MARI- HUANA PRODUCT with intent to consume may be summoned before and examined by a court having jurisdiction of that charge; provided, however, that nothing contained herein shall authorize, or be construed to authorize, a peace officer as defined in subdivision thirty-three of section 1.20 of the criminal procedure law or a police officer as defined in subdivi- sion thirty-four of section 1.20 of such law to arrest a person who unlawfully possesses an alcoholic beverage OR MARIHUANA PRODUCT with intent to consume. If a determination is made sustaining such charge the court may impose a fine not exceeding fifty dollars and/or completion of an alcohol OR DRUG awareness program established pursuant to section 19.25 of the mental hygiene law and/or an appropriate amount of communi- ty service not to exceed thirty hours. 4. No such determination shall operate as a disqualification of any such person subsequently to hold public office, public employment, or as a forfeiture of any right or privilege or to receive any license granted by public authority; and no such person shall be denominated a criminal by reason of such determination, nor shall such determination be deemed a conviction. 5. Whenever a peace officer as defined in subdivision thirty-three of section 1.20 of the criminal procedure law or police officer as defined in subdivision thirty-four of section 1.20 of the criminal procedure law shall observe a person under twenty-one years of age openly in possession of an alcoholic beverage OR MARIHUANA PRODUCT as defined in this chapter, with the intent to consume such beverage OR PRODUCT in violation of this section, said officer may seize the beverage OR PROD- UCT, and shall deliver it to the custody of his or her department. 6. Any alcoholic beverage OR MARIHUANA PRODUCT seized in violation of this section is hereby declared a nuisance. The official to whom the beverage OR PRODUCT has been delivered shall, no earlier than three days following the return date for initial appearance on the summons, dispose of or destroy the alcoholic beverage OR MARIHUANA PRODUCT seized or cause it to be disposed of or destroyed. Any person claiming ownership of an alcoholic beverage OR MARIHUANA PRODUCT seized under this section may, on the initial return date of the summons or earlier on five days notice to the official or department in possession of the beverage OR PRODUCT, apply to the court for an order preventing the destruction or disposal of the alcoholic beverage OR MARIHUANA PRODUCT seized and ordering the return of that beverage OR PRODUCT. The court may order the beverage OR PRODUCT returned if it is determined that return of the beverage OR PRODUCT would be in the interest of justice or that the beverage OR PRODUCT was improperly seized. § 25. The alcoholic beverage control law is amended by adding a new section 65-e to read as follows: § 65-E. RESTRICTIONS ON PERSONAL CONSUMPTION OF MARIHUANA. 1. NOTHING IN SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW SHALL BE CONSTRUED TO PERMIT ANY PERSON TO: (A) SMOKE MARIHUANA IN PUBLIC; (B) SMOKE MARIHUANA PRODUCTS IN A LOCATION WHERE SMOKING TOBACCO IS PROHIBITED PURSUANT TO SECTION THIRTEEN HUNDRED NINETY-NINE-O OF THE PUBLIC HEALTH LAW; (C) POSSESS, SMOKE OR INGEST MARIHUANA PRODUCTS IN OR UPON THE GROUNDS OF ANY SCHOOL PROPERTY USED FOR SCHOOL PURPOSES WHICH IS OWNED BY OR S. 3040--C 20 LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE CHIL- DREN ARE PRESENT; OR (D) SMOKE OR INGEST MARIHUANA PRODUCTS WHILE DRIVING, OPERATING A MOTOR VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR TRANS- PORTATION. 2. FOR PURPOSES OF THIS SECTION: (A) "SMOKE" MEANS TO INHALE, EXHALE, BURN, OR CARRY ANY LIGHTED OR HEATED DEVICE OR PIPE, OR ANY OTHER LIGHTED OR HEATED MARIHUANA OR CONCENTRATED CANNABIS PRODUCT INTENDED FOR INHALATION, WHETHER NATURAL OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM. (B) "SMOKE" DOES NOT INCLUDE THE USE OF AN ELECTRONIC SMOKING DEVICE THAT CREATES AN AEROSOL OR VAPOR, UNLESS LOCAL OR STATE STATUTES EXTEND PROHIBITIONS ON SMOKING TO ELECTRONIC SMOKING DEVICES. 3. VIOLATIONS OF THE RESTRICTIONS UNDER THIS SECTION ARE SUBJECT TO A FINE NOT EXCEEDING TWENTY-FIVE DOLLARS OR AN APPROPRIATE AMOUNT OF COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS. § 26. Section 140 of the alcoholic beverage control law, as amended by chapter 810 of the laws of 1981, is amended to read as follows: § 140. Applicability of chapter before local option. Until such time as it shall become unlawful to sell alcoholic beverages OR MARIHUANA PRODUCTS in any town or city by the vote of the voters in such town or city in the manner provided in this article, all of the provisions of this chapter shall apply throughout the entire state. This article shall not apply to the Whiteface mountain ski center, owned by the state and located in the town of Wilmington, county of Essex. § 27. Section 141 of the alcoholic beverage control law, as amended by chapter 319 of the laws of 2007, is amended to read as follows: § 141. Local option for towns. 1. Not less than sixty days nor more than seventy-five days before the general election in any town at which the submission of the questions hereinafter stated is authorized by this article, a petition signed by electors of the town to a number amounting to twenty-five per centum of the votes cast in the town for governor at the then last preceding gubernatorial election, acknowledged by the signers or authenticated by witnesses as provided in the election law in respect of a nominating petition, requesting the submission at such election to the electors of the town of one or more of the following questions, may be filed with the town clerk: Question 1. Tavern alcoholic beverage license. Shall a person be allowed to obtain a license to operate a tavern with a limited-service menu (sandwiches, salads, soups, etc.) which permits the tavern operator to sell alcoholic beverages for a customer to drink while the customer is within the tavern. In addition, unopened containers of beer (such as six-packs and kegs) may be sold "to go" for the customer to open and drink at another location (such as, for example, at his home)? Question 2. Restaurant alcoholic beverage license. Shall the operator of a full-service restaurant be allowed to obtain a license which permits the restaurant operator to sell alcoholic beverages for a customer to drink while the customer is within the restaurant. In addi- tion, unopened containers of beer (such as six-packs and kegs) may be sold "to go" for the customer to open and drink at another location (such as, for example, at his home)? Question 3. Year-round hotel alcoholic beverage license. Shall the operator of a year-round hotel with a full-service restaurant be allowed to obtain a license which permits the year-round hotel to sell alcoholic beverages for a customer to drink while the customer is within the hotel. In addition, unopened containers of beer (such as six-packs and S. 3040--C 21 kegs) may be sold "to go" for the customer to open and drink at another location (such as, for example, at his home)? Question 4. Summer hotel alcoholic beverage license. Shall the opera- tor of a summer hotel with a full-service restaurant, open for business only within the period from May first to October thirty-first in each year, be allowed to obtain a license which permits the summer hotel to sell alcoholic beverages for a customer to drink while the customer is within the hotel. In addition, unopened containers of beer (such as six-packs and kegs) may be sold "to go" for the customer to open and drink at another location (such as, for example, at his home)? Question 5. Retail package liquor or wine store license. Shall a person be allowed to obtain a license to operate a retail package liquor-and-wine or wine-without-liquor store, to sell "to go" unopened bottles of liquor or wine to a customer to be taken from the store for the customer to open and drink at another location (such as, for exam- ple, at his home)? Question 6. Off-premises beer and wine cooler license. Shall the oper- ator of a grocery store, drugstore or supply ship operating in the harbors of Lake Erie be allowed to obtain a license which permits the operator to sell "to go" unopened containers of beer (such as six-packs and kegs) and wine coolers with not more than 6% alcohol to a customer to be taken from the store for the customer to open and drink at another location (such as, for example, at his home)? Question 7. Baseball park, racetrack, athletic field or stadium license. Shall a person be allowed to obtain a license which permits the sale of beer for a patron's consumption while the patron is within a baseball park, racetrack, or other athletic field or stadium where admission fees are charged? QUESTION 8. MARIHUANA RETAILER LICENSE. SHALL A PERSON BE ALLOWED TO OBTAIN A LICENSE TO OPERATE A RETAIL MARIHUANA STORE, TO SELL UNOPENED MARIHUANA PRODUCTS TO A CUSTOMER TO BE TAKEN FROM THE STORE FOR THE CUSTOMER TO OPEN AND CONSUME AT ANOTHER LOCATION (SUCH AS, FOR EXAMPLE, AT HIS HOME)? QUESTION 9. ON-PREMISES MARIHUANA RETAILER LICENSES. SHALL A PERSON BE ALLOWED TO OBTAIN A LICENSE TO OPERATE A FACILITY WHERE THE SERVICE OF FOOD IS ONLY INCIDENTAL AND PERMITS THE FACILITY OPERATOR TO SELL MARI- HUANA PRODUCTS FOR A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN THE FACILITY? 2. Upon the due filing of such petition complying with the foregoing provisions, such questions shall be submitted in accordance therewith. 3. The town clerk shall, within five days from the filing of such petition in his office, prepare and file in the office of the board of elections, as defined by the election law, of the county, a certified copy of such petition. Such questions may be submitted only at the time of a general election. At least ten days before such general election, the board of elections shall cause to be printed and posted in at least four public places in such town, a notice of the fact that all of the local option questions will be voted on at such general election; and the said notice shall also be published at least five days before the vote is to be taken once in a newspaper published in the county in which such town is situated, which shall be a newspaper published in the town, if there be one. Whenever such questions are to be submitted under the provisions of this article the board of elections shall cause the proper ballot labels to be printed and placed on all voting machines used in the town in which such questions are to be submitted, in the form prescribed by the election law in respect of other propositions or ques- S. 3040--C 22 tions, upon the face of which shall be printed in full the said ques- tions. Any elector qualified to vote for state officers shall be enti- tled to vote upon such local option questions. As soon as the election shall be held, a return of the votes cast and counted shall be made as provided by law and the returns canvassed by the inspectors of election. If a majority of the votes cast shall be in the negative on all or any of the questions, no person shall, after such election, sell alcoholic beverages OR MARIHUANA PRODUCTS in such town contrary to such vote or to the provisions of this chapter; provided, however, that the result of such vote shall not shorten the term for which any license may have been lawfully issued under this chapter or affect the rights of the licensee thereunder; and no person shall after such vote apply for or receive a license to sell alcoholic beverages OR MARIHUANA PRODUCTS at retail in such town contrary to such vote, until, by referendum as hereinafter provided for, such sale shall again become lawful. § 28. Subdivision 3 of section 142 of the alcoholic beverage control law is amended to read as follows: 3. If a majority of the votes cast shall be in the negative on any or all of the questions, no person shall, after such election, sell alco- holic beverages OR MARIHUANA PRODUCTS in such city contrary to such vote or to the provisions of this chapter; provided, however, that the result of such vote shall not shorten the term for which any license may have been lawfully issued under this chapter or affect the rights of the licensee thereunder; and no person shall after such vote apply for or receive a license to sell alcoholic beverages OR MARIHUANA PRODUCTS at retail in such city contrary to such vote, until, by referendum as here- inafter provided for, such sale shall again become lawful. § 29. Subdivision 2 of section 147 of the alcoholic beverage control law is amended to read as follows: 2. If at the time of any subsequent submission of such questions it shall be lawful to sell alcoholic beverages OR MARIHUANA PRODUCTS and a majority of the votes cast shall be in the negative on such questions, then all of the provisions of this article applicable thereto shall become effective. § 30. Article 11 and sections 160, 161, 162, 163 and 164 of the alco- holic beverage control law, article 11 and sections 160, 161, 162 and 163 as renumbered by chapter 725 of the laws of 1954, are renumbered article 12 and sections 200, 201, 202, 203, and 204. § 31. The alcoholic beverage control law is amended by adding a new article 11 to read as follows: ARTICLE 11 PROVISIONS RELATING TO MARIHUANA SECTION 165. DEFINITIONS. 166. BUREAU OF MARIHUANA POLICY. 167. ADMINISTRATION OF THE BUREAU OF MARIHUANA POLICY. 168. AUTHORITY TO PROMULGATE RULES AND REGULATIONS. 169. LICENSES ISSUED. 170. LICENSING LIMITS. 171. ACTIONS TAKEN PURSUANT TO A VALID LICENSE ARE LAWFUL. 172. GENERAL PROHIBITIONS AND RESTRICTIONS. 173. CERTAIN OFFICIALS NOT TO BE INTERESTED IN THE MANUFACTURE OR SALE OF MARIHUANA. 174. PROVISIONS GOVERNING INITIAL RULEMAKING. 175. PROVISIONS GOVERNING MARIHUANA PRODUCERS. 176. PROVISIONS GOVERNING PROCESSORS. 177. PROVISIONS GOVERNING MARIHUANA RETAILERS. S. 3040--C 23 178. PROVISIONS GOVERNING MARIHUANA ON-SITE CONSUMPTION LICENSES. 179. ADVERTISING AND FORMS FOR THE ISSUANCE OF LICENSES. 180. PACKAGING OF MARIHUANA PRODUCTS. 181. LABELING OF MARIHUANA PRODUCTS. 182. SEED TO SALE TRACKING. 183. RENEWALS OF LICENSES AND PERMITS. 184. INFORMATION TO BE PROVIDED BY APPLICANTS. 185. NOTIFICATION TO TOWNS, CITIES OR VILLAGES. 186. LICENSES, PUBLICATION, GENERAL PROVISIONS. 187. REVOCATION OF LICENSES FOR CAUSE. 188. PROCEDURE FOR REVOCATION OR CANCELLATION. 189. DECISIONS OF THE BUREAU OF MARIHUANA POLICY AND REVIEW BY THE COURTS. 190. MINORITY AND WOMEN-OWNED BUSINESSES AND INCUBATOR PROGRAM. 191. DISPOSITION OF MONEYS RECEIVED FOR LICENSE FEES. 192. PERSONS FORBIDDEN TO TRAFFIC IN MARIHUANA. 193. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS. 194. PROTECTIONS FOR THE USE OF MARIHUANA. 195. DISCRIMINATION PROTECTIONS FOR THE USE OF MARIHUANA OR MEDICAL MARIHUANA. 196. EMPLOYMENT PROTECTIONS. 197. PROTECTIONS FOR PERSONS UNDER STATE SUPERVISION. 198. PROFESSIONAL AND MEDICAL RECORD KEEPING. § 165. DEFINITIONS. WHENEVER USED IN THIS CHAPTER, UNLESS THE CONTEXT REQUIRES OTHERWISE: 1. "APPLICANT" MEANS AN OWNER APPLYING FOR A LICENSE PURSUANT TO THIS ARTICLE. 2."BUREAU" MEANS THE BUREAU OF MARIHUANA POLICY WITHIN THE AUTHORITY. 3. "COMMERCIAL MARIHUANA ACTIVITY" MEANS THE PRODUCTION, PROCESSING, POSSESSION, STORING, LABORATORY TESTING, PACKAGING, LABELING, TRANSPOR- TATION, DELIVERY, OR SALE OF MARIHUANA AND MARIHUANA PRODUCTS AS PROVIDED FOR IN THIS ARTICLE. 4. "CUSTOMER" MEANS A NATURAL PERSON TWENTY-ONE YEARS OF AGE OR OLDER. 5. "DELIVERY" MEANS A LICENSEE THAT DELIVERS RETAIL MARIHUANA AND MARIHUANA PRODUCTS TO CUSTOMERS. RETAILER LICENSEES AND MICROBUSINESS LICENSEES ARE PERMITTED TO DELIVER RETAIL MARIHUANA AND MARIHUANA PRODUCTS TO CUSTOMERS WITHOUT OBTAINING AN ADDITIONAL DISTRIBUTOR LICENSE. 6. "DISTRIBUTION" MEANS THE PROCUREMENT, SALE, AND TRANSPORT OF MARI- HUANA AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTICLE. 7. "DISTRIBUTOR" MEANS A LICENSEE FOR THE DISTRIBUTION OF MARIHUANA AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTI- CLE. PRODUCER LICENSEES, PROCESSOR LICENSEES, AND MICROBUSINESS LICEN- SEES ARE PERMITTED TO DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS BETWEEN ENTITIES LICENSED PURSUANT TO THIS ARTICLE WITHOUT OBTAINING AN ADDITIONAL DISTRIBUTOR LICENSE. 8. "LABELING" MEANS ANY LABEL OR OTHER WRITTEN, PRINTED, OR GRAPHIC MATTER UPON A MARIHUANA PRODUCT, OR UPON ITS CONTAINER OR WRAPPER, OR THAT ACCOMPANIES ANY MARIHUANA PRODUCT. 9. "LICENSE" MEANS A STATE LICENSE ISSUED UNDER THIS ARTICLE. EACH LICENSE ISSUED PURSUANT TO THIS ARTICLE CORRESPONDS TO A SINGLE PLACE OF BUSINESS. 10. "LICENSEE" MEANS ANY PERSON OR ENTITY HOLDING A LICENSE UNDER THIS ARTICLE. S. 3040--C 24 11. "MARIHUANA" 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 ALL PARTS OF THE PLANT CANNABIS SATIVA I., WHETHER GROWING OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA- BINOL (THC). 12. "MARIHUANA PRODUCTS" MEANS MARIHUANA, CONCENTRATED CANNABIS, AND MARIHUANA-INFUSED PRODUCTS. 13. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARIHUA- NA, OR CONCENTRATED CANNABIS AND ARE INTENDED FOR HUMAN USE OR CONSUMP- TION, SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINTMENTS, AND TINC- TURES. 14. "MICROBUSINESS" MEANS A LICENSEE THAT MAY ACT AS A MARIHUANA PRODUCER FOR THE CULTIVATION OF MARIHUANA ON AN AREA LESS THAN TEN THOU- SAND SQUARE FEET, A MARIHUANA PROCESSOR, AND A MARIHUANA RETAILER UNDER THIS ARTICLE, PROVIDED SUCH LICENSEE COMPLIES WITH ALL REQUIREMENTS IMPOSED BY THIS ARTICLE ON LICENSED PRODUCERS, PROCESSORS, AND RETAILERS TO THE EXTENT THE LICENSEE ENGAGES IN SUCH ACTIVITIES. A "MICROBUSINESS" MAY DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED MARI- HUANA BUSINESSES AND MAY DELIVER MARIHUANA AND MARIHUANA PRODUCTS TO CUSTOMERS. 15. "NURSERY" MEANS A LICENSEE THAT PRODUCES ONLY CLONES, IMMATURE PLANTS, SEEDS, AND OTHER AGRICULTURAL PRODUCTS USED SPECIFICALLY FOR THE PLANTING, PROPAGATION, AND CULTIVATION OF MARIHUANA. 16. "ONSITE CONSUMPTION" MEANS A MARIHUANA RETAIL LICENSEE OR A MARI- HUANA MICROBUSINESS THAT PERMITS THE CONSUMPTION OF MARIHUANA AND MARI- HUANA PRODUCTS AT THE LICENSEE'S PLACE OF BUSINESS. 17. "OWNER" MEANS AN INDIVIDUAL WITH AN AGGREGATE OWNERSHIP INTEREST OF TWENTY PERCENT OR MORE IN A MARIHUANA BUSINESS LICENSED PURSUANT TO THIS ARTICLE, 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 MARIHUANA BUSINESS. 18. "PACKAGE" MEANS ANY CONTAINER OR RECEPTACLE USED FOR HOLDING MARI- HUANA OR MARIHUANA PRODUCTS. 19. "PROCESSOR" MEANS A LICENSEE THAT COMPOUNDS, BLENDS, EXTRACTS, INFUSES, OR OTHERWISE MAKES OR PREPARES MARIHUANA PRODUCTS, BUT NOT THE PRODUCTION OF THE MARIHUANA CONTAINED IN THE MARIHUANA PRODUCT. A "PROCESSOR" MAY ALSO DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED MARIHUANA BUSINESSES. 20. "PRODUCER" MEANS A LICENSEE THAT PLANTS, GROWS, HARVESTS, DRIES, CURES, GRADES, OR TRIMS MARIHUANA. A "PRODUCER" MAY ALSO DISTRIBUTE MARIHUANA TO OTHER LICENSED MARIHUANA BUSINESSES. 21. "RETAILER" MEANS A LICENSEE THAT SELLS MARIHUANA OR MARIHUANA PRODUCTS DIRECTLY TO CUSTOMERS. A "RETAILER" MAY DELIVER MARIHUANA AND MARIHUANA PRODUCTS TO CUSTOMERS. 22. "TESTING FACILITY" MEANS A LICENSEE THAT TESTS MARIHUANA AND MARI- HUANA PRODUCTS. § 166. BUREAU OF MARIHUANA POLICY. THERE IS HEREBY ESTABLISHED IN THE AUTHORITY A BUREAU OF MARIHUANA POLICY. THE BUREAU SHALL CONSIST OF THREE MEMBERS. THE MEMBERS OF THE BUREAU SHALL BE APPOINTED BY THE S. 3040--C 25 GOVERNOR BY AND WITH THE ADVICE AND CONSENT OF THE SENATE. NOT MORE THAN TWO MEMBERS OF THE BUREAU SHALL BELONG TO THE SAME POLITICAL PARTY. THE CHAIRMAN OF THE BUREAU OF MARIHUANA POLICY HERETOFORE APPOINTED AND DESIGNATED BY THE GOVERNOR AND THE REMAINING MEMBERS OF SUCH BOARD HERE- TOFORE APPOINTED BY THE GOVERNOR SHALL CONTINUE TO SERVE AS CHAIRMAN AND MEMBERS OF THE BUREAU UNTIL THE EXPIRATION OF THE RESPECTIVE TERMS FOR WHICH THEY WERE APPOINTED. UPON THE EXPIRATION OF SUCH RESPECTIVE TERMS THE SUCCESSORS OF SUCH CHAIRMAN AND MEMBERS SHALL BE APPOINTED TO SERVE FOR A TERM OF THREE YEARS EACH AND UNTIL THEIR SUCCESSORS HAVE BEEN APPOINTED AND QUALIFIED. THE COMMISSIONERS SHALL, WHEN PERFORMING THE WORK OF THE BUREAU, BE COMPENSATED AT A RATE OF TWO HUNDRED SIXTY DOLLARS PER DAY, TOGETHER WITH AN ALLOWANCE FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE DISCHARGE OF THEIR DUTIES. § 167. ADMINISTRATION OF THE BUREAU OF MARIHUANA POLICY. 1. THE BUREAU ESTABLISHED IN SECTION ONE HUNDRED SIXTY-SIX OF THIS ARTICLE SHALL HERETOFORE HAVE THE POWER, DUTY, PURPOSE, RESPONSIBILITY, AND JURISDICTION TO REGULATE COMMERCIAL MARIHUANA ACTIVITY AS PROVIDED IN THE MARIHUANA REGULATION AND TAXATION ACT. 2. THE BUREAU SHALL HAVE THE EXCLUSIVE AUTHORITY TO CREATE, ISSUE, RENEW, DISCIPLINE, SUSPEND, OR REVOKE LICENSES FOR COMMERCIAL MARIHUANA ACTIVITIES IN ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE ACT. (A) THE BUREAU SHALL CONSULT WITH THE DEPARTMENT OF AGRICULTURE AND MARKETS REGARDING RULES, REGULATIONS, AND LICENSES FOR THE CULTIVATION OF MARIHUANA. (B) THE BUREAU SHALL NOTIFY THE PUBLIC OF ALL LICENSING RULES AND REGULATIONS PROMULGATED PURSUANT TO THE MARIHUANA REGULATION AND TAXA- TION ACT, WHICH SHALL INCLUDE INSTRUCTIONAL MATERIALS. IN ADDITION, THE BUREAU SHALL HOLD PUBLIC FORUMS IN ALL REGIONS OF THE STATE, AS DETER- MINED BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT, TO HELP THE PUBLIC UNDERSTAND AND NAVIGATE THE LICENSING PROCESS. (C) THE BUREAU SHALL BEGIN ISSUING LICENSES NOT LATER THAN EIGHTEEN MONTHS FOLLOWING THE EFFECTIVE DATE OF THE MARIHUANA REGULATION AND TAXATION ACT. (I) THE BUREAU SHALL BEGIN ACCEPTING APPLICATIONS NO MORE THAN FIFTEEN MONTHS FOLLOWING THE EFFECTIVE DATE OF THE MARIHUANA REGULATION AND TAXATION ACT. (II) PURSUANT TO SECTION ONE HUNDRED EIGHTY-FIVE OF THIS ARTICLE, THE BUREAU SHALL NOTIFY ANY TOWN, CITY OR VILLAGE OF ANY APPLICATIONS FOR LICENSE. (III) THE BUREAU SHALL ISSUE AN ANNUAL LICENSE TO THE APPLICANT BETWEEN FORTY-FIVE AND NINETY DAYS AFTER RECEIPT OF AN APPLICATION UNLESS THE BUREAU FINDS THE APPLICANT IS NOT IN COMPLIANCE WITH REGU- LATIONS ENACTED PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF THIS ARTICLE OR THE DEPARTMENT IS NOTIFIED BY THE RELEVANT TOWN, CITY OR VILLAGE THAT THE APPLICANT IS NOT IN COMPLIANCE WITH SUCH REGULATIONS. (D) THE BUREAU SHALL HAVE THE AUTHORITY TO COLLECT FEES IN CONNECTION WITH ACTIVITIES THEY REGULATE CONCERNING MARIHUANA PURSUANT TO SECTION ONE HUNDRED NINETY-ONE OF THIS ARTICLE. 3. (A) NOT LATER THAN TEN MONTHS FOLLOWING THE ENACTMENT OF THIS ARTI- CLE, EACH TOWN, CITY OR VILLAGE MAY ENACT AN ORDINANCE OR REGULATION SPECIFYING THE ENTITY WITHIN THE TOWN, CITY OR VILLAGE THAT IS RESPONSI- BLE FOR PROCESSING APPLICATIONS SUBMITTED FOR A LICENSE TO OPERATE A MARIHUANA ESTABLISHMENT WITHIN THE BOUNDARIES OF THE TOWN, CITY OR VILLAGE AND FOR THE ISSUANCE OF SUCH LICENSES SHOULD THE ISSUANCE BY THE TOWN, CITY OR VILLAGE BECOME NECESSARY BECAUSE OF A FAILURE BY THE BUREAU TO ADOPT REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR S. 3040--C 26 OF THIS ARTICLE OR BECAUSE OF A FAILURE BY THE BUREAU TO PROCESS AND ISSUE LICENSES AS REQUIRED BY SUBDIVISION TWO OF THIS SECTION. (B) A TOWN, CITY OR VILLAGE MAY ENACT ORDINANCES OR REGULATIONS, NOT IN CONFLICT WITH THIS SECTION OR WITH REGULATIONS OR LEGISLATION ENACTED PURSUANT TO THIS SECTION, GOVERNING THE TIME, PLACE, MANNER AND NUMBER OF MARIHUANA ESTABLISHMENT OPERATIONS; ESTABLISHING PROCEDURES FOR THE ISSUANCE, SUSPENSION, AND REVOCATION OF A LICENSE ISSUED BY THE MUNICI- PALITY IN ACCORDANCE WITH PARAGRAPHS (C) AND (D) OF THIS SUBDIVISION, SUCH PROCEDURES TO BE SUBJECT TO ALL REQUIREMENTS OF THE STATE ADMINIS- TRATIVE PROCEDURE ACT OR ANY SUCCESSOR PROVISION, ESTABLISHING A SCHED- ULE OF ANNUAL OPERATING, LICENSING, AND APPLICATION FEES FOR MARIHUANA ESTABLISHMENTS, PROVIDED, THE APPLICATION FEE SHALL ONLY BE DUE IF AN APPLICATION IS SUBMITTED TO A TOWN, CITY OR VILLAGE IN ACCORDANCE WITH PARAGRAPH (D) OF THIS SUBDIVISION AND A LICENSING FEE SHALL ONLY BE DUE IF A LICENSE IS ISSUED BY A MUNICIPALITY IN ACCORDANCE WITH PARAGRAPH (C) OR (D) OF THIS SUBDIVISION; AND ESTABLISHING CIVIL PENALTIES FOR VIOLATION OF AN ORDINANCE OR REGULATION GOVERNING THE TIME, PLACE, AND MANNER OF A MARIHUANA ESTABLISHMENT THAT MAY OPERATE IN SUCH A TOWN, CITY OR VILLAGE. A TOWN, CITY OR VILLAGE MAY PROHIBIT THE OPERATION OF MARIHUANA PRODUCTION FACILITIES, MARIHUANA PROCESSING FACILITIES, MARI- HUANA RETAIL STORES, MARIHUANA MICROBUSINESSES, OR MARIHUANA TESTING FACILITIES THROUGH THE ENACTMENT OF AN ORDINANCE. (C) IF THE BUREAU DOES NOT ISSUE A LICENSE TO AN APPLICANT WITHIN NINETY DAYS OF RECEIPT OF THE APPLICATION FILED IN ACCORDANCE WITH SUBDIVISION TWO AND DOES NOT NOTIFY THE APPLICANT OF THE SPECIFIC REASON FOR ITS DENIAL, IN WRITING AND WITHIN SUCH TIME PERIOD, OR IF THE BUREAU HAS ADOPTED REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF THIS ARTICLE BUT HAS NOT ISSUED ANY LICENSES WITHIN EIGHTEEN MONTHS OF THE EFFECTIVE DATE OF THIS ARTICLE, FOR ANY TOWN, CITY OR VILLAGE ENACT- ING AN ORDINANCE PROVIDING FOR LOCAL PROCESSING OF APPLICATIONS, THE APPLICANT MAY RESUBMIT ITS APPLICATION DIRECTLY TO THE TOWN, CITY OR VILLAGE PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, AND THE TOWN, CITY OR VILLAGE MAY ISSUE AN ANNUAL LICENSE TO THE APPLICANT. A TOWN, CITY OR VILLAGE ISSUING A LICENSE TO AN APPLICANT SHALL DO SO WITHIN NINETY DAYS OF RECEIPT OF THE RESUBMITTED APPLICATION UNLESS THE TOWN, CITY OR VILLAGE FINDS AND NOTIFIES THE APPLICANT THAT THE APPLICANT IS NOT IN COMPLIANCE WITH THE ORDINANCES AND REGULATIONS MADE PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME THE APPLICATION IS RESUBMITTED AND THE TOWN, CITY OR VILLAGE SHALL NOTIFY THE BUREAU IF AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. IF AN APPLICATION IS SUBMITTED TO A TOWN, CITY OR VILLAGE UNDER THIS PARAGRAPH, THE BUREAU SHALL FORWARD TO THE TOWN, CITY OR VILLAGE THE APPLICATION FEE PAID BY THE APPLICANT TO THE BUREAU UPON REQUEST BY THE TOWN, CITY OR VILLAGE. A LICENSE ISSUED BY A TOWN, CITY OR VILLAGE IN ACCORDANCE WITH THIS PARA- GRAPH SHALL HAVE THE SAME FORCE AND EFFECT AS A LICENSE ISSUED BY THE BUREAU IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION AND THE HOLDER OF SUCH LICENSE SHALL NOT BE SUBJECT TO REGULATION OR ENFORCEMENT BY THE BUREAU DURING THE TERM OF THAT LICENSE. A SUBSEQUENT OR RENEWED LICENSE MAY BE ISSUED UNDER THIS PARAGRAPH ON AN ANNUAL BASIS ONLY UPON RESUB- MISSION TO THE TOWN, CITY OR VILLAGE OF A NEW APPLICATION SUBMITTED TO THE BUREAU PURSUANT TO SUBDIVISION TWO OF THIS SECTION. NOTHING IN THIS PARAGRAPH SHALL LIMIT SUCH RELIEF AS MAY BE AVAILABLE TO AN AGGRIEVED PARTY UNDER SECTION FOUR HUNDRED ONE OF THE STATE ADMINISTRATIVE PROCE- DURE ACT OR ANY SUCCESSOR PROVISION. (D) IF THE BUREAU DOES NOT ADOPT REGULATIONS REQUIRED BY SECTION ONE HUNDRED SEVENTY-FOUR OF THIS ARTICLE, AN APPLICANT MAY SUBMIT AN APPLI- S. 3040--C 27 CATION DIRECTLY TO A TOWN, CITY OR VILLAGE FIFTEEN MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE AND THE TOWN, CITY OR VILLAGE MAY ISSUE AN ANNUAL LICENSE TO THE APPLICANT. A TOWN, CITY OR VILLAGE ISSUING A LICENSE TO AN APPLICANT SHALL DO SO WITHIN NINETY DAYS OF RECEIPT OF THE APPLICATION UNLESS IT FINDS AND NOTIFIES THE APPLICANT THAT THE APPLI- CANT IS NOT IN COMPLIANCE WITH ORDINANCES AND REGULATIONS MADE PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION IN EFFECT AT THE TIME OF APPLICA- TION AND SHALL NOTIFY THE BUREAU IF AN ANNUAL LICENSE HAS BEEN ISSUED TO THE APPLICANT. A LICENSE ISSUED BY A TOWN, CITY OR VILLAGE IN ACCORDANCE WITH THIS PARAGRAPH SHALL HAVE THE SAME FORCE AND EFFECT AS A LICENSE ISSUED BY THE BUREAU IN ACCORDANCE WITH SUBDIVISION TWO OF THIS SECTION AND THE LICENSEE SHALL NOT BE SUBJECT TO REGULATION OR ENFORCEMENT BY THE BUREAU DURING THE TERM OF THAT LICENSE. A SUBSEQUENT OR RENEWED LICENSE MAY BE ISSUED UNDER THIS PARAGRAPH ON AN ANNUAL BASIS IF THE BUREAU HAS NOT ADOPTED REGULATIONS REQUIRED BY SECTION ONE HUNDRED SEVENTY-FOUR OF THIS ARTICLE AT LEAST NINETY DAYS PRIOR TO THE DATE UPON WHICH SUCH SUBSEQUENT OR RENEWED LICENSE WOULD BE EFFECTIVE OR IF THE DEPARTMENT HAS ADOPTED REGULATIONS PURSUANT TO SECTION ONE HUNDRED SEVENTY-FOUR OF THIS ARTICLE BUT HAS NOT, AT LEAST NINETY DAYS AFTER THE ADOPTION OF SUCH REGULATIONS, ISSUED LICENSES PURSUANT TO SUBDIVISION TWO OF THIS SECTION. 4. THE BUREAU MAY LIMIT THE TOTAL AMOUNT OF MARIHUANA PRODUCED IN NEW YORK BASED ON THE DEMAND FOR MARIHUANA AND MARIHUANA PRODUCTS AND IN AN EFFORT TO REDUCE ILLICIT MARIHUANA MARKETS. § 168. AUTHORITY TO PROMULGATE RULES AND REGULATIONS. THE BUREAU SHALL PROMULGATE AND IMPLEMENT ALL RULES AND REGULATIONS AS IT DEEMS NECESSARY TO CARRY OUT THE REQUIREMENTS, PURPOSE AND INTENT OF THIS ARTICLE. § 169. LICENSES ISSUED. THE FOLLOWING KINDS OF LICENSES SHALL BE ISSUED BY THE BUREAU FOR THE MANUFACTURE, PRODUCTION, PROCESSING, TEST- ING, RETAIL SALE AND DELIVERY OF MARIHUANA: 1. MARIHUANA NURSERY LICENSE; 2. MARIHUANA PRODUCER LICENSE; 3. MARIHUANA PROCESSOR LICENSE; 4. MARIHUANA DISTRIBUTOR LICENSE; 5. MARIHUANA RETAILER LICENSE; 6. MARIHUANA MICROBUSINESS LICENSE; 7. MARIHUANA ON-SITE CONSUMPTION LICENSE; 8. MARIHUANA DELIVERY LICENSE; 9. MARIHUANA TESTING LICENSE; AND 10. ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU. § 170. LICENSING LIMITS. 1. ALL LICENSES ISSUED UNDER THIS ARTICLE SHALL BEAR A CLEAR DESIGNATION INDICATING THAT THE LICENSE IS FOR COMMERCIAL MARIHUANA ACTIVITY AS DISTINCT FROM MEDICAL MARIHUANA MANU- FACTURED, PRODUCED AND SOLD FOR MEDICAL USE PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW. 2. AN OWNER OF A MARIHUANA RETAIL STORE SHALL NOT HOLD A LICENSE IN ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTI- CLE, SHALL NOT OWN OR HAVE OWNERSHIP INTEREST IN AN ENTITY LICENSED PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW, AND SHALL HOLD NOT MORE THAN THREE RETAIL LICENSES. 3. AN OWNER OF A MARIHUANA MICROBUSINESS SHALL NOT HOLD A LICENSE IN ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTI- CLE, SHALL NOT OWN OR HAVE OWNERSHIP INTEREST IN A FACILITY LICENSED PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW, AND SHALL HOLD NOT MORE THAN ONE MICROBUSINESS LICENSE. S. 3040--C 28 4. AN OWNER OF A MARIHUANA TESTING FACILITY SHALL NOT HOLD A LICENSE IN ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTICLE AND SHALL NOT OWN OR HAVE OWNERSHIP INTEREST IN A FACILITY LICENSED PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW. 5. ONLY A MARIHUANA RETAIL LICENSEE MAY BE ISSUED AN ON-SITE CONSUMP- TION LICENSE. 6. ONLY A MARIHUANA RETAIL LICENSEE, MARIHUANA MICROBUSINESS LICENSEE, OR MARIHUANA DELIVERY LICENSEE MAY BE PERMITTED TO DELIVER MARIHUANA DIRECTLY TO CUSTOMERS. 7. ONLY A MARIHUANA PRODUCER LICENSEE, MARIHUANA PROCESSOR LICENSEE, MARIHUANA MICROBUSINESS LICENSEE, OR MARIHUANA DISTRIBUTOR LICENSEE MAY DISTRIBUTE MARIHUANA AND MARIHUANA PRODUCTS TO OTHER LICENSED MARIHUANA BUSINESSES. 8. NO MARIHUANA DELIVERY OWNER MAY HOLD MORE THAN ONE MARIHUANA DELIV- ERY LICENSE. 9. NO MARIHUANA DISTRIBUTOR OWNER MAY HOLD MORE THAN ONE MARIHUANA DISTRIBUTOR LICENSE. 10. THE BUREAU SHALL ISSUE A SERIES OF PRODUCER LICENSES DISTINGUISHED BY CANOPY SIZE AND TYPE OF LIGHTING USED, NATURAL/OUTDOOR LIGHT, INDOOR LIGHT, OR MIXED-LIGHT. 11. NO MARIHUANA PRODUCER OWNER MAY HOLD MORE THAN ONE MARIHUANA PRODUCER AND ONE MARIHUANA PROCESSOR LICENSE. 12. NO MARIHUANA PROCESSOR OWNER MAY HOLD MORE THAN THREE MARIHUANA PROCESSOR LICENSES. 13. AN OWNER OF A MARIHUANA NURSERY MAY HOLD A MARIHUANA PRODUCER OR MARIHUANA PROCESSOR LICENSE BUT SHALL NOT HOLD ANOTHER LICENSE CATEGORY OF SECTION ONE HUNDRED SIXTY-NINE OF THIS ARTICLE, SHALL NOT OWN OR HAVE OWNERSHIP INTEREST IN A FACILITY LICENSED PURSUANT TO TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW, AND SHALL HOLD NOT MORE THAN ONE NURSERY LICENSE. LICENSING LIMITS IMPOSED BY SUBDIVISIONS ELEV- EN AND TWELVE OF THIS SECTION SHALL APPLY. § 171. ACTIONS TAKEN PURSUANT TO A VALID LICENSE ARE LAWFUL. NO CONTRACTS RELATED TO THE OPERATION OF LICENSES UNDER THIS CHAPTER SHALL BE DEEMED UNENFORCEABLE ON THE BASIS THAT THE ACTIONS PERMITTED PURSUANT TO THE LICENSE ARE PROHIBITED BY FEDERAL LAW. THE FOLLOWING ACTIONS ARE NOT UNLAWFUL AS PROVIDED UNDER THIS CHAPTER, SHALL NOT BE AN OFFENSE UNDER ANY STATE OR LOCAL LAW, AND SHALL NOT RESULT IN ANY CIVIL FINE, SEIZURE, OR FORFEITURE OF ASSETS AGAINST ANY PERSON ACTING IN ACCORDANCE WITH THIS CHAPTER: 1. ACTIONS OF A LICENSEE, ITS EMPLOYEES, AND ITS AGENTS, AS PERMITTED BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU, PURSUANT TO A VALID LICENSE ISSUED BY THE BUREAU. 2. ACTIONS OF THOSE WHO ALLOW PROPERTY TO BE USED BY A LICENSEE, ITS EMPLOYEES, AND ITS AGENTS, AS PERMITTED BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU, PURSUANT TO A VALID LICENSE ISSUED BY THE BUREAU. 3. ACTIONS OF ANY PERSON OR ENTITY, THEIR EMPLOYEES, OR THEIR AGENTS PROVIDING A SERVICE TO A LICENSEE OR POTENTIAL LICENSEE, AS PERMITTED BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU, RELATING TO THE FORMATION OF A BUSINESS. 4. THE PURCHASE, POSSESSION, OR CONSUMPTION OF MARIHUANA, AS PERMITTED BY THIS CHAPTER AND CONSISTENT WITH RULES AND REGULATIONS OF THE BUREAU, OBTAINED FROM A VALIDLY LICENSED RETAILER. § 172. GENERAL PROHIBITIONS AND RESTRICTIONS. 1. NO MARIHUANA PRODUCTS MAY BE IMPORTED INTO OR EXPORTED FROM NEW YORK STATE. S. 3040--C 29 2. NO PERSON MAY BE ISSUED A LICENSE UNDER SECTION ONE HUNDRED SIXTY- NINE OF THIS ARTICLE IF THEY HAVE BEEN CONVICTED OF AN OFFENSE RELATED TO THE FUNCTIONS, OR DUTIES OF OWNING AND OPERATING A BUSINESS WITHIN THREE YEARS OF THE APPLICATION DATE, EXCEPT THAT IF THE BUREAU DETER- MINES THAT THE OWNER OR LICENSEE IS OTHERWISE SUITABLE TO BE ISSUED A LICENSE, AND GRANTING THE LICENSE WOULD NOT COMPROMISE PUBLIC SAFETY, THE BUREAU SHALL CONDUCT A THOROUGH REVIEW OF THE NATURE OF THE CRIME, CONVICTION, CIRCUMSTANCES, AND EVIDENCE OF REHABILITATION OF THE OWNER, AND SHALL EVALUATE THE SUITABILITY OF THE OWNER OR LICENSEE TO BE ISSUED A LICENSE BASED ON THE EVIDENCE FOUND THROUGH THE REVIEW. IN DETERMINING WHICH OFFENSES ARE SUBSTANTIALLY RELATED TO THE FUNCTIONS OR DUTIES OF OWNING AND OPERATING A BUSINESS, THE BUREAU 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. (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 TO A MINOR; OR SELLING, OFFERING TO SELL, FURNISHING, OFFERING TO FURNISH, ADMINISTERING, OR GIVING ANY CONTROLLED SUBSTANCE TO A MINOR. 3. NO LICENSE OF ANY KIND MAY BE ISSUED TO A PERSON UNDER THE AGE OF TWENTY-ONE YEARS, NOR SHALL ANY LICENSEE EMPLOY ANYONE UNDER THE AGE OF TWENTY-ONE YEARS. § 173. CERTAIN OFFICIALS NOT TO BE INTERESTED IN THE MANUFACTURE OR SALE OF MARIHUANA. 1. EXCEPT AS OTHERWISE PROVIDED IN SECTION ONE HUNDRED TWENTY-EIGHT-A OF THIS CHAPTER, IT SHALL BE UNLAWFUL FOR ANY POLICE COMMISSIONER, POLICE INSPECTOR, CAPTAIN, SERGEANT, ROUNDSMAN, PATROLMAN OR OTHER POLICE OFFICIAL OR SUBORDINATE OF ANY POLICE DEPART- MENT IN THE STATE, TO BE EITHER DIRECTLY OR INDIRECTLY INTERESTED IN THE MANUFACTURE OR SALE OF MARIHUANA OR TO OFFER FOR SALE, OR RECOMMEND TO ANY LICENSEE ANY MARIHUANA. A PERSON MAY NOT BE DENIED ANY LICENSE GRANTED UNDER THE PROVISIONS OF SECTIONS FIFTY-FOUR, FIFTY-FIVE, FIFTY- NINE, SIXTY-THREE, SIXTY-FOUR, SEVENTY-NINE, EIGHTY-ONE, OR ARTICLE SEVEN OF THIS CHAPTER SOLELY ON THE GROUNDS OF BEING THE SPOUSE OF A PUBLIC SERVANT DESCRIBED IN THIS SUBDIVISION. THE SOLICITATION OR RECOM- MENDATION MADE TO ANY LICENSEE, TO PURCHASE ANY MARIHUANA BY ANY POLICE OFFICIAL OR SUBORDINATE AS DESCRIBED IN THIS SUBDIVISION, SHALL BE PRESUMPTIVE EVIDENCE OF THE INTEREST OF SUCH OFFICIAL OR SUBORDINATE IN THE MANUFACTURE OR SALE OF MARIHUANA. 2. NO ELECTIVE VILLAGE OFFICER SHALL BE SUBJECT TO THE LIMITATIONS SET FORTH IN SUBDIVISION ONE OF THIS SECTION UNLESS SUCH ELECTIVE VILLAGE OFFICER SHALL BE ASSIGNED DUTIES DIRECTLY RELATING TO THE OPERATION OR MANAGEMENT OF THE POLICE DEPARTMENT. § 174. PROVISIONS GOVERNING INITIAL RULEMAKING. 1. WITHIN TWO HUNDRED FORTY DAYS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE BUREAU SHALL PERFORM SUCH ACTS, PRESCRIBE SUCH FORMS AND MAKE SUCH RULES, REGULATIONS AND ORDERS AS IT MAY DEEM NECESSARY OR PROPER TO FULLY EFFECTUATE THE PROVISIONS OF THIS ARTICLE. 2. THE BUREAU SHALL PROMULGATE NECESSARY RULES AND REGULATIONS GOVERN- ING THE LICENSING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARIHUA- NA RETAILERS AND MARIHUANA RETAILERS FOR CONSUMPTION ON-SITE, INCLUDING: (A) PRESCRIBING FORMS AND ESTABLISHING APPLICATION, REINSTATEMENT, AND RENEWAL FEES; (B) THE QUALIFICATIONS FOR LICENSURE; S. 3040--C 30 (C) THE BOOKS AND RECORDS TO BE CREATED AND MAINTAINED BY LICENSEES, THE REPORTS TO BE MADE THEREON TO THE BUREAU, AND INSPECTION OF THE BOOKS AND RECORDS; (D) METHODS OF PRODUCING, PROCESSING, AND PACKAGING MARIHUANA, MARI- HUANA-INFUSED PRODUCTS, AND CONCENTRATED CANNABIS; CONDITIONS OF SANITA- TION, AND STANDARDS OF INGREDIENTS, QUALITY, AND IDENTITY OF MARIHUANA PRODUCTS PRODUCED, PROCESSED, PACKAGED, OR SOLD BY LICENSEES; AND (E) SECURITY REQUIREMENTS FOR MARIHUANA RETAILERS AND PREMISES WHERE MARIHUANA PRODUCTS ARE PRODUCED OR PROCESSED, AND SAFETY PROTOCOLS FOR LICENSEES AND THEIR EMPLOYEES. 3. THE BUREAU SHALL PROMULGATE RULES AND REGULATIONS THAT ARE CALCU- LATED TO: (A) PREVENT THE DISTRIBUTION OF MARIHUANA TO PERSONS UNDER TWENTY-ONE YEARS OF AGE; (B) PREVENT THE REVENUE FROM THE SALE OF MARIHUANA FROM GOING TO ORGANIZED CRIMINAL ENTERPRISES AND CARTELS; (C) PREVENT THE DIVERSION OF MARIHUANA FROM THIS STATE TO OTHER STATES; (D) PREVENT MARIHUANA 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 VIOLENCE AND THE USE OF FIREARMS IN THE CULTIVATION AND DISTRIBUTION OF MARIHUANA; (F) PREVENT IMPAIRED DRIVING AND THE EXACERBATION OF OTHER ADVERSE PUBLIC HEALTH CONSEQUENCES ASSOCIATED WITH THE USE OF MARIHUANA; (G) PREVENT THE GROWING OF MARIHUANA ON PUBLIC LANDS AND THE ATTENDANT PUBLIC SAFETY AND ENVIRONMENTAL DANGERS POSED BY MARIHUANA PRODUCTION ON PUBLIC LANDS; AND (H) PREVENT THE POSSESSION AND USE OF MARIHUANA ON FEDERAL PROPERTY. 4. RULES AND REGULATIONS PROMULGATED BY THE BUREAU PURSUANT TO SUBDI- VISION THREE OF THIS SECTION SHALL NOT PROHIBIT THE OPERATION OF MARI- HUANA ESTABLISHMENTS EITHER EXPRESSLY OR THROUGH REGULATIONS THAT MAKE THEIR OPERATION UNREASONABLY IMPRACTICABLE. 5. THE BUREAU, 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 MARIHUANA, INCLUDING RESTRICTIONS ON THE USE OF PESTICIDES, INSECTICIDES AND HERBICIDES. § 175. PROVISIONS GOVERNING MARIHUANA PRODUCERS. 1. NO PRODUCER SHALL SELL, OR AGREE TO SELL OR DELIVER IN THE STATE ANY MARIHUANA PRODUCTS, AS THE CASE MAY BE, EXCEPT IN SEALED CONTAINERS CONTAINING QUANTITIES IN ACCORDANCE WITH SIZE STANDARDS PURSUANT TO RULES ADOPTED BY THE BUREAU. SUCH CONTAINERS SHALL HAVE AFFIXED THERETO SUCH LABELS AS MAY BE REQUIRED BY THE RULES OF THE BUREAU, TOGETHER WITH ALL NECESSARY NEW YORK STATE EXCISE TAX STAMPS, AS REQUIRED BY LAW. 2. NO PRODUCER SHALL DELIVER ANY MARIHUANA PRODUCTS, EXCEPT IN VEHI- CLES OWNED AND OPERATED BY SUCH PRODUCER, OR HIRED AND OPERATED BY SUCH PRODUCER FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED WITH THE BUREAU, AND SHALL ONLY MAKE D