S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8427

                            I N  S E N A T E

                              July 6, 2010
                               ___________

Introduced  by  Sen.  DUANE  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the public health law and the general business  law,  in
  relation to medical use of marihuana

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings and intent. The legislature finds that
thousands of New Yorkers have serious medical  conditions  that  can  be
improved  by  medically-approved  use  of  marihuana. The law should not
stand between them and treatment necessary for  life  and  health.  This
legislation follows the well-established public policy that a controlled
substance  can have a legitimate medical use. Many controlled substances
that are legal for medical use (such as morphine and steroids) are ille-
gal for any other use. The purposes of article 33 of the  public  health
law  include  allowing legitimate use of controlled substances in health
care, including palliative care. This policy and this legislation do not
in any way diminish New York  state's  strong  public  policy  and  laws
against illegal drug use, nor should it be deemed in any manner to advo-
cate, authorize, promote, or legally or socially accept the use of mari-
huana  for children or adults, for any non-medical use. This legislation
is an appropriate exercise of the state's legislative power  to  protect
the  health of its people under article 17 of the state constitution and
the tenth amendment of the United States constitution.
  It is the legislative intent that this act be implemented consistently
with these findings and principles, through a  reasonable  and  workable
system with appropriate oversight, evaluation and continuing research.
  S  2.  Article  33 of the public health law is amended by adding a new
title 5-A to read as follows:
                                TITLE V-A
                        MEDICAL USE OF MARIHUANA
SECTION 3360. DEFINITIONS.
        3361. CERTIFICATION OF PATIENTS.
        3362. POSSESSION.
        3363. REGISTRY IDENTIFICATION CARDS.

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

                                                           LBD07082-13-0

S. 8427                             2

        3364. REGISTERED ORGANIZATIONS.
        3365. REGISTERING OF REGISTERED ORGANIZATIONS.
        3366. REPORTS BY REGISTERED ORGANIZATIONS.
        3367. EVALUATION; RESEARCH PROGRAMS; REPORT BY DEPARTMENT.
        3368. REGISTERED ORGANIZATION ASSESSMENTS.
        3369. RELATION TO OTHER LAWS.
  S  3360. DEFINITIONS. AS USED IN THIS TITLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS, UNLESS THE CONTEXT CLEARLY REQUIRES  OTHER-
WISE:
  1.  "CERTIFIED  MEDICAL  USE"  MEANS THE ACQUISITION, POSSESSION, USE,
DELIVERY, TRANSFER, TRANSPORTATION, OR ADMINISTRATION OF  MEDICAL  MARI-
HUANA  BY A CERTIFIED PATIENT OR DESIGNATED CAREGIVER FOR USE AS PART OF
THE TREATMENT OF THE PATIENT'S SERIOUS CONDITION SPECIFIED IN A  CERTIF-
ICATION  UNDER  SECTION  THIRTY-THREE  HUNDRED  SIXTY-ONE OF THIS TITLE,
INCLUDING ENABLING THE PATIENT TO TOLERATE  TREATMENT  FOR  THE  SERIOUS
CONDITION.
  2.  "CERTIFIED PATIENT" MEANS A PATIENT WHO IS CERTIFIED UNDER SECTION
THIRTY-THREE HUNDRED SIXTY-ONE OF THIS TITLE.
  3.  "CERTIFICATION"  MEANS  A  CERTIFICATION,   MADE   UNDER   SECTION
THIRTY-THREE HUNDRED SIXTY-ONE OF THIS TITLE.
  4.  "DESIGNATED CAREGIVER" MEANS THE INDIVIDUAL DESIGNATED BY A CERTI-
FIED PATIENT IN A REGISTRY APPLICATION.
  5. "PUBLIC PLACE" MEANS A PUBLIC PLACE AS DEFINED IN SECTION 240.00 OF
THE PENAL LAW, A MOTOR VEHICLE AS DEFINED IN SECTION ONE  HUNDRED  TWEN-
TY-FIVE  OF  THE  VEHICLE  AND  TRAFFIC  LAW,  AN AIRCRAFT AS DEFINED IN
SECTION TWO HUNDRED FORTY OF THE GENERAL BUSINESS LAW  OR  A  VESSEL  AS
DEFINED IN SECTION TWO OF THE NAVIGATION LAW.
  6. "SERIOUS CONDITION" MEANS A SEVERE DEBILITATING OR LIFE-THREATENING
CONDITION,  OR  A  CONDITION ASSOCIATED WITH OR A COMPLICATION OF SUCH A
CONDITION OR ITS TREATMENT (INCLUDING BUT NOT LIMITED  TO  INABILITY  TO
TOLERATE FOOD, NAUSEA, VOMITING, DYSPHORIA OR PAIN).
  7. "MEDICAL MARIHUANA" MEANS MARIHUANA AS DEFINED IN SUBDIVISION TWEN-
TY-ONE  OF SECTION THIRTY-THREE HUNDRED TWO OF THIS TITLE INTENDED FOR A
CERTIFIED MEDICAL USE.
  8. "REGISTERED ORGANIZATION" MEANS  A  REGISTERED  ORGANIZATION  UNDER
SECTIONS   THIRTY-THREE  HUNDRED  SIXTY-FOUR  AND  THIRTY-THREE  HUNDRED
SIXTY-FIVE OF THIS TITLE.
  9. "REGISTRY APPLICATION" MEANS AN APPLICATION PROPERLY COMPLETED  AND
FILED   WITH  THE  DEPARTMENT  BY  A  CERTIFIED  PATIENT  UNDER  SECTION
THIRTY-THREE HUNDRED SIXTY-THREE OF THIS TITLE.
  10. "REGISTRY IDENTIFICATION CARD" MEANS A DOCUMENT THAT IDENTIFIES  A
CERTIFIED  PATIENT  OR  DESIGNATED  CAREGIVER, AS PROVIDED UNDER SECTION
THIRTY-THREE HUNDRED SIXTY-THREE OF THIS TITLE.
  11. "PRACTITIONER" MEANS A PRACTITIONER WHO IS A PHYSICIAN,  PHYSICIAN
ASSISTANT,  OR  NURSE  PRACTITIONER,  ACTING  WITHIN  THE PRACTITIONER'S
LAWFUL SCOPE OF PRACTICE.
  S 3361. CERTIFICATION OF PATIENTS. 1. A PATIENT CERTIFICATION MAY ONLY
BE ISSUED IF A PRACTITIONER WHO IS CARING FOR THE PATIENT FOR A  SERIOUS
CONDITION CERTIFIES THAT: (A) THE PATIENT HAS A SERIOUS CONDITION, WHICH
SHALL  BE SPECIFIED IN THE PATIENT'S HEALTH CARE RECORD; (B) THE PATIENT
IS UNDER THE PRACTITIONER'S CARE FOR THE SERIOUS CONDITION; AND  (C)  IN
THE  PRACTITIONER'S  PROFESSIONAL  OPINION,  THE  PATIENT  IS  LIKELY TO
RECEIVE THERAPEUTIC OR PALLIATIVE BENEFIT FROM THE PRIMARY OR ADJUNCTIVE
TREATMENT WITH MEDICAL USE OF MARIHUANA FOR THE SERIOUS CONDITION.
  2. THE CERTIFICATION SHALL BE IN WRITING AND  INCLUDE  (A)  THE  NAME,
DATE  OF  BIRTH  AND  ADDRESS  OF  THE PATIENT; (B) A STATEMENT THAT THE

S. 8427                             3

PATIENT HAS A SERIOUS CONDITION; THE PATIENT IS UNDER THE PRACTITIONER'S
CARE FOR THE SERIOUS CONDITION AND, IN THE  PRACTITIONER'S  PROFESSIONAL
OPINION,  THE  PATIENT  IS  LIKELY  TO RECEIVE THERAPEUTIC OR PALLIATIVE
BENEFIT  FROM  THE  PRIMARY  OR ADJUNCTIVE TREATMENT WITH MEDICAL USE OF
MARIHUANA FOR THE SERIOUS CONDITION; (C) THE DATE;  AND  (D)  THE  NAME,
ADDRESS,  FEDERAL  REGISTRATION  NUMBER, TELEPHONE NUMBER, AND THE HAND-
WRITTEN SIGNATURE OF THE CERTIFYING PRACTITIONER.  THE COMMISSIONER  MAY
REQUIRE BY REGULATION THAT THE CERTIFICATION SHALL BE ON A FORM PROVIDED
BY  THE DEPARTMENT IF THE COMMISSIONER DETERMINES THAT THE DEPARTMENT IS
MAKING CERTIFICATION FORMS ADEQUATELY AVAILABLE.
  3. THE PRACTITIONER SHALL GIVE  THE  CERTIFICATION  TO  THE  CERTIFIED
PATIENT, AND PLACE A COPY IN THE PATIENT'S HEALTH CARE RECORD.
  4.  NO PRACTITIONER SHALL ISSUE A CERTIFICATION UNDER THIS SECTION FOR
HIMSELF OR HERSELF.
  5. A REGISTRY IDENTIFICATION  CARD  BASED  ON  A  CERTIFICATION  SHALL
EXPIRE  ONE YEAR AFTER THE DATE THE CERTIFICATION IS SIGNED BY THE PRAC-
TITIONER; EXCEPT THAT WHERE A CERTIFIED PATIENT HAS A REGISTRY IDENTIFI-
CATION CARD BASED ON A CURRENT VALID CERTIFICATION, A NEW REGISTRY IDEN-
TIFICATION CARD BASED ON A NEW CERTIFICATION SHALL EXPIRE ONE YEAR AFTER
THE EXPIRATION OF THE REGISTRY IDENTIFICATION CARD BASED ON THE  CURRENT
VALID  CERTIFICATION. HOWEVER, IF THE PRACTITIONER STATES IN THE CERTIF-
ICATION THAT HE OR SHE BELIEVES THE PATIENT WOULD BENEFIT  FROM  MEDICAL
MARIHUANA  ONLY  UNTIL A SPECIFIED EARLIER DATE, THEN THE REGISTRY IDEN-
TIFICATION CARD SHALL EXPIRE ON THAT DATE.
  S 3362. POSSESSION. 1. THE  POSSESSION,  ACQUISITION,  USE,  DELIVERY,
TRANSFER,  TRANSPORTATION,  OR  ADMINISTRATION OF MEDICAL MARIHUANA BY A
CERTIFIED PATIENT OR DESIGNATED CAREGIVER POSSESSING  A  VALID  REGISTRY
IDENTIFICATION  CARD,  FOR  CERTIFIED MEDICAL USE, SHALL BE LAWFUL UNDER
THIS TITLE; PROVIDED THAT THE MARIHUANA  THAT  MAY  BE  POSSESSED  BY  A
CERTIFIED PATIENT AND SUCH CERTIFIED PATIENT'S DESIGNATED CAREGIVER DOES
NOT  EXCEED A TOTAL AGGREGATE WEIGHT OF TWO AND ONE-HALF OUNCES OF MARI-
HUANA.  A DESIGNATED CAREGIVER MAY POSSESS THE QUANTITIES REFERRED TO IN
THIS SUBDIVISION FOR EACH  CERTIFIED  PATIENT  FOR  WHOM  THE  CAREGIVER
POSSESSES  A  VALID  REGISTRY  IDENTIFICATION CARD, UP TO FIVE CERTIFIED
PATIENTS.
  2. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION: (A) POSSESSION  OF
MARIHUANA  SHALL  NOT  BE  LAWFUL  UNDER THIS TITLE IF IT IS CONSUMED OR
DISPLAYED IN A PUBLIC PLACE; (B) MEDICAL MARIHUANA MAY NOT BE SMOKED  IN
ANY  PLACE  WHERE  TOBACCO MAY NOT BE SMOKED UNDER ARTICLE THIRTEEN-E OF
THIS CHAPTER; (C) EXCEPT THAT IN A HEALTH CARE FACILITY,  MEDICAL  MARI-
HUANA  MAY  BE  SMOKED  BY  A  PATIENT OF THE FACILITY, SUBJECT TO OTHER
PROVISIONS OF THIS TITLE, IN AN AREA, AND UNDER CIRCUMSTANCES, PERMITTED
BY THE FACILITY, PROVIDED THAT THE PATIENT DOES NOT SMOKE IN  THE  PRES-
ENCE OF PATIENTS WHO ARE NOT CERTIFIED UNDER THIS TITLE.
  3.  IT  SHALL BE LAWFUL UNDER THIS ARTICLE TO GIVE OR DISPOSE OF MARI-
HUANA, OBTAINED UNDER THIS TITLE FOR THE CERTIFIED PATIENT TO THE CERTI-
FIED PATIENT OR DESIGNATED CAREGIVER FOR A CERTIFIED MEDICAL  USE  WHERE
NOTHING  OF  VALUE IS TRANSFERRED IN RETURN, OR TO OFFER TO DO THE SAME.
THIS PROHIBITION ON TRANSFERRING OR OFFERING  TO  TRANSFER  A  THING  OF
VALUE SHALL NOT (A) APPLY TO SALE OF MEDICAL MARIHUANA TO OR BY A REGIS-
TERED  ORGANIZATION  UNDER  THIS  ARTICLE;  NOR (B) PREVENT A DESIGNATED
CAREGIVER FROM BEING REIMBURSED FOR ACTIVITIES RELATING TO CARING FOR  A
CERTIFIED  PATIENT,  INCLUDING,  BUT  NOT  LIMITED TO, REIMBURSEMENT FOR
LEGITIMATE EXPENSES RELATING TO THE PURCHASE OF MEDICAL MARIHUANA FROM A
REGISTERED ORGANIZATION UNDER SECTION THIRTY-THREE HUNDRED SIXTY-SIX  OF
THIS TITLE.

S. 8427                             4

  S  3363.  REGISTRY IDENTIFICATION CARDS. 1. THE DEPARTMENT SHALL ISSUE
REGISTRY IDENTIFICATION CARDS  FOR  CERTIFIED  PATIENTS  AND  DESIGNATED
CAREGIVERS.  A  REGISTRY IDENTIFICATION CARD SHALL EXPIRE AS PROVIDED IN
SECTION THIRTY-THREE HUNDRED SIXTY-ONE OF THIS  TITLE  OR  AS  OTHERWISE
PROVIDED  IN  THIS  SECTION. THE DEPARTMENT SHALL BEGIN ISSUING REGISTRY
IDENTIFICATION CARDS NO LATER THAN JUNE FIRST, TWO THOUSAND ELEVEN.  THE
DEPARTMENT  MAY SPECIFY A FORM FOR A REGISTRY APPLICATION, IN WHICH CASE
THE DEPARTMENT SHALL PROVIDE THE FORM ON REQUEST, REPRODUCTIONS  OF  THE
FORM  MAY  BE USED, AND THE FORM SHALL BE AVAILABLE FOR DOWNLOADING FROM
THE DEPARTMENT'S WEBSITE.
  2. TO OBTAIN OR RENEW A  REGISTRY  IDENTIFICATION  CARD,  A  CERTIFIED
PATIENT  SHALL  FILE  A  REGISTRY  APPLICATION  WITH THE DEPARTMENT. THE
REGISTRY APPLICATION OR RENEWAL APPLICATION SHALL INCLUDE:
  (A) THE ORIGINAL PATIENT'S CERTIFICATION (A NEW WRITTEN  CERTIFICATION
SHALL BE PROVIDED WITH A RENEWAL APPLICATION);
  (B)  (I) THE NAME, ADDRESS, AND DATE OF BIRTH OF THE PATIENT; (II) THE
DATE OF THE CERTIFICATION; (III) IF THE PATIENT HAS A REGISTRY IDENTIFI-
CATION CARD BASED ON A CURRENT VALID CERTIFICATION, THE  REGISTRY  IDEN-
TIFICATION  NUMBER  AND  EXPIRATION DATE OF THAT REGISTRY IDENTIFICATION
CARD; (IV) THE SPECIFIED DATE UNTIL WHICH THE PATIENT WOULD BENEFIT FROM
MEDICAL MARIHUANA, IF THE CERTIFICATION STATES  SUCH  A  DATE;  (V)  THE
NAME,  ADDRESS, FEDERAL REGISTRATION NUMBER, AND TELEPHONE NUMBER OF THE
CERTIFYING PRACTITIONER; AND (VI) OTHER INDIVIDUAL IDENTIFYING  INFORMA-
TION REQUIRED BY THE DEPARTMENT;
  (C)  IF  THE  PATIENT  DESIGNATES  A  DESIGNATED  CAREGIVER, THE NAME,
ADDRESS, AND DATE OF BIRTH OF THE DESIGNATED CAREGIVER, AND OTHER  INDI-
VIDUAL  IDENTIFYING  INFORMATION REQUIRED BY THE DEPARTMENT; A CERTIFIED
PATIENT MAY DESIGNATE UP TO TWO DESIGNATED CAREGIVERS;
  (D) A STATEMENT THAT A FALSE STATEMENT  MADE  IN  THE  APPLICATION  IS
PUNISHABLE UNDER SECTION 210.45 OF THE PENAL LAW;
  (E)  THE  DATE  OF  THE APPLICATION AND THE SIGNATURE OF THE CERTIFIED
PATIENT; AND
  (F) A REASONABLE APPLICATION FEE, AS  DETERMINED  BY  THE  DEPARTMENT;
PROVIDED,  THAT  THE  DEPARTMENT MAY WAIVE OR REDUCE THE FEE IN CASES OF
FINANCIAL HARDSHIP.
  3. WHERE A CERTIFIED PATIENT IS UNDER THE AGE OF EIGHTEEN:
  (A) THE APPLICATION FOR A REGISTRY IDENTIFICATION CARD SHALL  BE  MADE
BY  AN  APPROPRIATE PERSON OVER TWENTY-ONE YEARS OF AGE. THE APPLICATION
SHALL STATE FACTS DEMONSTRATING THAT THE PERSON IS APPROPRIATE.
  (B) THE DESIGNATED CAREGIVER SHALL BE (I) A PARENT OR  LEGAL  GUARDIAN
OF  THE CERTIFIED PATIENT, (II) A PERSON DESIGNATED BY A PARENT OR LEGAL
GUARDIAN, OR (III) AN APPROPRIATE PERSON APPROVED BY THE DEPARTMENT UPON
A SUFFICIENT SHOWING THAT NO PARENT OR LEGAL GUARDIAN IS APPROPRIATE  OR
AVAILABLE.
  4.  NO  PERSON  MAY  BE  A DESIGNATED CAREGIVER IF THE PERSON IS UNDER
TWENTY-ONE YEARS OF AGE UNLESS A  SUFFICIENT  SHOWING  IS  MADE  TO  THE
DEPARTMENT  THAT THE PERSON SHOULD BE PERMITTED TO SERVE AS A DESIGNATED
CAREGIVER.
  5.  NO PERSON MAY BE A DESIGNATED CAREGIVER FOR MORE THAN FIVE  CERTI-
FIED PATIENTS AT ONE TIME. A DESIGNATED CAREGIVER SHALL CARRY A SEPARATE
REGISTRY  IDENTIFICATION  CARD FOR EACH CERTIFIED PATIENT FOR WHOM HE OR
SHE IS A DESIGNATED CAREGIVER. EACH REGISTRY IDENTIFICATION  CARD  SHALL
CONTAIN  THE  SAME  REGISTRY  IDENTIFICATION  NUMBER  SPECIFIED  IN THIS
SECTION.
  6. THE DEPARTMENT SHALL ISSUE SEPARATE REGISTRY  IDENTIFICATION  CARDS
FOR THE CERTIFIED PATIENT AND THE DESIGNATED CAREGIVER (IF ONE IS DESIG-

S. 8427                             5

NATED  IN  THE  REGISTRY  APPLICATION) WITHIN THIRTY DAYS OF RECEIVING A
COMPLETE APPLICATION UNDER THIS SECTION, UNLESS IT DETERMINES  THAT  THE
APPLICATION IS INCOMPLETE OR FACIALLY INACCURATE, IN WHICH CASE IT SHALL
PROMPTLY NOTIFY THE APPLICANT.
  7.   IF THE DEPARTMENT DOES NOT APPROVE THE DESIGNATION OF AN INDIVID-
UAL AS A DESIGNATED CAREGIVER, THAT SHALL NOT AFFECT THE APPROVAL OF THE
APPLICATION AS TO THE CERTIFIED PATIENT.
  8. A REGISTRY IDENTIFICATION CARD SHALL CONTAIN:
  (A) THE NAME, ADDRESS, AND DATE OF BIRTH OF THE CERTIFIED PATIENT  AND
THE  DESIGNATED CAREGIVER (IF ONE IS DESIGNATED IN THE REGISTRY APPLICA-
TION);
  (B) THE DATE OF ISSUANCE AND EXPIRATION DATE OF THE REGISTRY IDENTIFI-
CATION CARD;
  (C) A REGISTRY IDENTIFICATION NUMBER FOR THE CERTIFIED PATIENT  AND  A
REGISTRY  IDENTIFICATION  NUMBER FOR THE DESIGNATED CAREGIVER (IF ONE IS
DESIGNATED IN THE REGISTRY APPLICATION); AND
  (D) A PHOTOGRAPH OF THE INDIVIDUAL TO WHOM THE REGISTRY IDENTIFICATION
CARD IS BEING ISSUED, WHICH SHALL BE OBTAINED BY  THE  DEPARTMENT  IN  A
MANNER  SPECIFIED BY THE COMMISSIONER IN REGULATIONS; PROVIDED, HOWEVER,
THAT IF THE DEPARTMENT REQUIRED CERTIFIED PATIENTS TO SUBMIT PHOTOGRAPHS
FOR THIS PURPOSE, THERE SHALL BE A REASONABLE ACCOMMODATION OF CERTIFIED
PATIENTS WHO ARE CONFINED TO THEIR HOMES DUE TO THEIR MEDICAL CONDITIONS
AND MAY THEREFORE HAVE DIFFICULTY PROCURING PHOTOGRAPHS.
  9. A CERTIFIED PATIENT OR DESIGNATED CAREGIVER WHO HAS BEEN  ISSUED  A
REGISTRY  IDENTIFICATION  CARD SHALL NOTIFY THE DEPARTMENT OF ANY CHANGE
IN HIS OR HER NAME OR ADDRESS OR, WITH RESPECT TO THE PATIENT, OR IF  HE
OR  SHE CEASES TO HAVE THE SERIOUS CONDITION NOTED ON THE CERTIFICATION,
WITHIN TEN DAYS OF SUCH CHANGE.
  10. IF A CERTIFIED PATIENT OR DESIGNATED CAREGIVER LOSES  HIS  OR  HER
REGISTRY  IDENTIFICATION CARD, HE OR SHE SHALL NOTIFY THE DEPARTMENT AND
SUBMIT A TEN DOLLAR FEE WITHIN TEN DAYS OF LOSING THE CARD  TO  MAINTAIN
THE  REGISTRATION.  THE DEPARTMENT MAY ESTABLISH HIGHER FEES FOR ISSUING
A NEW REGISTRY IDENTIFICATION CARD FOR SECOND  AND  SUBSEQUENT  REPLACE-
MENTS FOR A LOST CARD, PROVIDED, THAT THE DEPARTMENT MAY WAIVE OR REDUCE
THE  FEE  IN  CASES OF FINANCIAL HARDSHIP.   WITHIN FIVE DAYS AFTER SUCH
NOTIFICATION AND PAYMENT, THE DEPARTMENT  SHALL  ISSUE  A  NEW  REGISTRY
IDENTIFICATION  CARD,  WHICH  MAY  CONTAIN A NEW REGISTRY IDENTIFICATION
NUMBER, TO THE CERTIFIED PATIENT OR DESIGNATED CAREGIVER,  AS  THE  CASE
MAY BE.
  11.  THE  DEPARTMENT SHALL MAINTAIN A CONFIDENTIAL LIST OF THE PERSONS
TO WHOM IT HAS ISSUED REGISTRY IDENTIFICATION CARDS. INDIVIDUAL  IDENTI-
FYING  INFORMATION  OBTAINED BY THE DEPARTMENT UNDER THIS TITLE SHALL BE
CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER ARTICLE SIX OF THE  PUBLIC
OFFICERS LAW. NOTWITHSTANDING THIS SUBDIVISION, THE DEPARTMENT MAY NOTI-
FY ANY APPROPRIATE LAW ENFORCEMENT AGENCY OF INFORMATION RELATING TO ANY
VIOLATION OR SUSPECTED VIOLATION OF THIS TITLE.
  12.  THE  DEPARTMENT  SHALL  VERIFY TO LAW ENFORCEMENT PERSONNEL IN AN
APPROPRIATE CASE WHETHER A REGISTRY IDENTIFICATION CARD IS VALID.
  13. IF A CERTIFIED PATIENT OR DESIGNATED CAREGIVER WILLFULLY  VIOLATES
ANY  PROVISION OF THIS TITLE AS DETERMINED BY THE DEPARTMENT, HIS OR HER
REGISTRY IDENTIFICATION CARD MAY BE REVOKED. THIS IS IN ADDITION TO  ANY
OTHER PENALTY THAT MAY APPLY.
  14. (A) REGISTRY IMPLEMENTATION DATE. AS USED IN THIS SUBDIVISION, THE
"REGISTRY IMPLEMENTATION DATE" IS THE DATE DETERMINED BY THE COMMISSION-
ER  WHEN  THE  DEPARTMENT  IS  READY TO RECEIVE AND EXPEDITIOUSLY ACT ON
APPLICATIONS FOR REGISTRY IDENTIFICATION CARDS UNDER THIS SECTION.

S. 8427                             6

  (B) ON AND AFTER THE REGISTRY IMPLEMENTATION DATE, UPON RECEIPT OF  AN
APPLICATION  FOR  A  REGISTRY  IDENTIFICATION CARD, THE DEPARTMENT SHALL
SEND TO THE APPLICANT A LETTER ACKNOWLEDGING  SUCH  RECEIPT.  WHILE  THE
APPLICATION FOR A REGISTRY IDENTIFICATION CARD IS PENDING, A COPY OF THE
REGISTRY  APPLICATION,  TOGETHER  WITH A COPY OF THE CERTIFICATION AND A
COPY OF THE LETTER OF RECEIPT FROM THE DEPARTMENT, SHALL  SERVE  AS  AND
HAVE THE SAME EFFECT AS A REGISTRY IDENTIFICATION CARD FOR THE CERTIFIED
PATIENT  AND  DESIGNATED CAREGIVER IF ANY, PROVIDED THAT A CERTIFICATION
AND APPLICATION SHALL NOT SERVE AS A VALID REGISTRY IDENTIFICATION  CARD
AFTER  THE  INITIAL  THIRTY  DAY  PERIOD  UNDER  SUBDIVISION SIX OF THIS
SECTION.  THIS PARAGRAPH SHALL EXPIRE AND HAVE NO EFFECT ONE YEAR  AFTER
THE REGISTRY IMPLEMENTATION DATE.
  S  3364.  REGISTERED ORGANIZATIONS. 1. A REGISTERED ORGANIZATION SHALL
BE:
  (A) A PHARMACY;
  (B) A FACILITY LICENSED UNDER ARTICLE TWENTY-EIGHT OF THIS CHAPTER;
  (C) A NOT-FOR-PROFIT CORPORATION ORGANIZED FOR THE PURPOSE OF  ACQUIR-
ING,  POSSESSING,  MANUFACTURING,  SELLING,  DELIVERING, TRANSPORTING OR
DISTRIBUTING MARIHUANA FOR CERTIFIED MEDICAL USE;
  (D) THE DEPARTMENT;
  (E) A LOCAL HEALTH DEPARTMENT; OR
  (F) A REGISTERED PRODUCER, WHICH SHALL BE A  PERSON  OR  ENTITY,  WITH
APPROPRIATE  EXPERTISE  IN  AGRICULTURE,  REGISTERED  FOR THE PURPOSE OF
ACQUIRING OR MANUFACTURING MARIHUANA AND SELLING, DELIVERING, TRANSPORT-
ING, OR DISTRIBUTING IT TO ANOTHER REGISTERED ORGANIZATION; A  CERTIFIED
PRODUCER  SHALL NOT SELL, DELIVER OR DISTRIBUTE MARIHUANA TO A CERTIFIED
PATIENT OR DESIGNATED CAREGIVER FOR THAT PERSON'S USE.
  1-A. THE DEPARTMENT MAY CONTRACT,  THROUGH  A  REQUEST  FOR  PROPOSALS
PROCESS, WITH AN ENTITY TO MANUFACTURE MEDICAL MARIHUANA FOR SALE TO THE
DEPARTMENT IN THE DEPARTMENT'S CAPACITY AS A REGISTERED ORGANIZATION. AN
ENTITY  CONTRACTING  WITH THE DEPARTMENT UNDER THIS SUBDIVISION SHALL BE
DEEMED TO BE A REGISTERED PRODUCER WHEN ACTING UNDER THAT CONTRACT.
  2. THE ACQUIRING, POSSESSION, MANUFACTURE, SALE, DELIVERY,  TRANSPORT-
ING OR DISTRIBUTING OF MARIHUANA BY A REGISTERED ORGANIZATION UNDER THIS
TITLE  IN  ACCORDANCE  WITH  ITS REGISTRATION UNDER SECTION THIRTY-THREE
HUNDRED SIXTY-FIVE OF THIS TITLE OR A RENEWAL THEREOF  SHALL  BE  LAWFUL
UNDER THIS TITLE.
  3.  A  REGISTERED  ORGANIZATION (OTHER THAN A REGISTERED PRODUCER) MAY
LAWFULLY, IN GOOD FAITH, SELL, DELIVER OR DISTRIBUTE  MEDICAL  MARIHUANA
TO  A CERTIFIED PATIENT OR DESIGNATED CAREGIVER UPON PRESENTATION TO THE
REGISTERED ORGANIZATION OF A VALID REGISTRY IDENTIFICATION CARD FOR THAT
CERTIFIED PATIENT OR  DESIGNATED  CAREGIVER.  WHEN  PRESENTED  WITH  THE
REGISTRY  IDENTIFICATION CARD, THE REGISTERED ORGANIZATION SHALL PROVIDE
TO THE CERTIFIED PATIENT OR DESIGNATED CAREGIVER A RECEIPT, WHICH  SHALL
STATE:  THE  NAME,  ADDRESS,  AND  REGISTRY IDENTIFICATION NUMBER OF THE
REGISTERED ORGANIZATION;  THE  REGISTRY  IDENTIFICATION  NUMBER  OF  THE
CERTIFIED PATIENT AND THE DESIGNATED CAREGIVER (IF ANY); AND THE QUANTI-
TY OF MARIHUANA SOLD. THE REGISTERED ORGANIZATION SHALL RETAIN A COPY OF
THE REGISTRY IDENTIFICATION CARD AND THE RECEIPT FOR ONE YEAR.
  4.  NO  REGISTERED ORGANIZATION MAY SELL, DELIVER OR DISTRIBUTE TO ANY
CERTIFIED PATIENT OR DESIGNATED CAREGIVER A QUANTITY OF MEDICAL MARIHUA-
NA LARGER THAN THAT INDIVIDUAL WOULD BE ALLOWED TO  POSSESS  UNDER  THIS
TITLE.
  5.  WHEN  A  REGISTERED  ORGANIZATION  SELLS,  DELIVERS OR DISTRIBUTES
MEDICAL MARIHUANA TO A CERTIFIED PATIENT  OR  DESIGNATED  CAREGIVER,  IT
SHALL  PROVIDE  TO THAT INDIVIDUAL A SAFETY INSERT, WHICH WILL BE DEVEL-

S. 8427                             7

OPED AND APPROVED BY THE COMMISSIONER AND INCLUDE, BUT  NOT  BE  LIMITED
TO, INFORMATION ON: (A) METHODS FOR ADMINISTERING MEDICAL MARIHUANA, (B)
ANY  POTENTIAL  DANGERS  STEMMING FROM THE USE OF MEDICAL MARIHUANA, AND
(C)  HOW TO RECOGNIZE WHAT MAY BE PROBLEMATIC USAGE OF MEDICAL MARIHUANA
AND OBTAIN APPROPRIATE SERVICES OR TREATMENT  FOR PROBLEMATIC USAGE.
  S 3365. REGISTERING OF REGISTERED ORGANIZATIONS.  1.  APPLICATION  FOR
INITIAL  REGISTRATION. (A) AN APPLICANT FOR REGISTRATION AS A REGISTERED
ORGANIZATION UNDER SECTION THIRTY-THREE HUNDRED SIXTY-FOUR OF THIS TITLE
SHALL FURNISH TO THE DEPARTMENT A DESCRIPTION OF THE ACTIVITIES IN WHICH
IT INTENDS TO ENGAGE AS A REGISTERED ORGANIZATION  AND  ANY  INFORMATION
THE DEPARTMENT SHALL REASONABLY REQUIRE AND EVIDENCE THAT THE APPLICANT:
  (I) AND ITS MANAGING OFFICERS ARE OF GOOD MORAL CHARACTER;
  (II)  POSSESSES OR HAS THE RIGHT TO USE SUFFICIENT LAND, BUILDINGS AND
EQUIPMENT TO PROPERLY CARRY ON THE ACTIVITY DESCRIBED  IN  THE  APPLICA-
TION;
  (III)  IS  ABLE TO MAINTAIN EFFECTIVE CONTROL AGAINST DIVERSION OF THE
MARIHUANA; AND
  (IV) IS ABLE TO COMPLY WITH ALL APPLICABLE STATE LAWS AND  REGULATIONS
RELATING  TO  THE  ACTIVITIES  IN  WHICH  IT INTENDS TO ENGAGE UNDER THE
REGISTRATION.
  (B) THE APPLICATION SHALL ESTABLISH THE APPLICANT'S STATUS UNDER PARA-
GRAPH  (A),  (B),  (C),  (D)  OR  (E)  OF  SUBDIVISION  ONE  OF  SECTION
THIRTY-THREE HUNDRED SIXTY-FOUR OF THIS TITLE, OR ITS INTENTION TO QUAL-
IFY   UNDER   PARAGRAPH  (C)  OR  (F)  OF  SUBDIVISION  ONE  OF  SECTION
THIRTY-THREE HUNDRED SIXTY-FOUR OF THIS TITLE.
  (C) THE APPLICATION SHALL INCLUDE  THE  NAME,  RESIDENCE  ADDRESS  AND
TITLE  OF  EACH OF THE OFFICERS AND DIRECTORS AND THE NAME AND RESIDENCE
ADDRESS OF ANY PERSON OR ENTITY THAT IS A MEMBER OF THE APPLICANT.  EACH
SUCH PERSON, IF AN INDIVIDUAL, OR LAWFUL REPRESENTATIVE IF A LEGAL ENTI-
TY, SHALL SUBMIT AN AFFIDAVIT WITH THE APPLICATION SETTING FORTH:
  (I)  ANY  POSITION OF MANAGEMENT OR OWNERSHIP DURING THE PRECEDING TEN
YEARS OF A TEN PER CENTUM OR GREATER INTEREST  IN  ANY  OTHER  BUSINESS,
LOCATED IN OR OUTSIDE THIS STATE, MANUFACTURING OR DISTRIBUTING DRUGS;
  (II)  WHETHER  SUCH  PERSON  OR  ANY SUCH BUSINESS HAS BEEN CONVICTED,
FINED, CENSURED OR HAD A REGISTRATION SUSPENDED OR REVOKED IN ANY ADMIN-
ISTRATIVE OR JUDICIAL PROCEEDING RELATING TO OR ARISING OUT OF THE MANU-
FACTURE, DISTRIBUTION, SALE, OR POSSESSION OF DRUGS; AND
  (III) SUCH  OTHER  INFORMATION  AS  THE  COMMISSIONER  MAY  REASONABLY
REQUIRE.
  (D)  THE  APPLICANT  SHALL BE UNDER A CONTINUING DUTY TO REPORT TO THE
DEPARTMENT ANY CHANGE IN FACTS OR CIRCUMSTANCES REFLECTED IN THE  APPLI-
CATION  OR  ANY NEWLY DISCOVERED OR OCCURRING FACT OR CIRCUMSTANCE WHICH
IS REQUIRED TO BE INCLUDED IN THE APPLICATION.
  2. GRANTING OF REGISTRATION. (A) THE COMMISSIONER SHALL GRANT A REGIS-
TRATION OR AMENDMENT TO A REGISTRATION UNDER THIS SECTION IF HE  OR  SHE
IS SATISFIED THAT:
  (I)  THE  APPLICANT WILL BE ABLE TO MAINTAIN EFFECTIVE CONTROL AGAINST
DIVERSION OF MARIHUANA;
  (II) THE APPLICANT WILL BE ABLE TO COMPLY WITH  ALL  APPLICABLE  STATE
LAWS;
  (III)  THE  APPLICANT  AND ITS OFFICERS ARE READY, WILLING AND ABLE TO
PROPERLY CARRY ON THE MANUFACTURING OR DISTRIBUTING ACTIVITY FOR WHICH A
REGISTRATION IS SOUGHT;
  (IV) THE APPLICANT POSSESSES OR HAS THE RIGHT TO USE SUFFICIENT  LAND,
BUILDINGS  AND  EQUIPMENT TO PROPERLY CARRY ON THE ACTIVITY DESCRIBED IN
THE APPLICATION;

S. 8427                             8

  (V) IT IS IN THE PUBLIC INTEREST THAT SUCH REGISTRATION BE GRANTED; IN
THE CASE OF AN APPLICANT UNDER  PARAGRAPH  (C)  OF  SUBDIVISION  ONE  OF
SECTION  THIRTY-THREE HUNDRED SIXTY-FOUR OF THIS TITLE, THE COMMISSIONER
MAY CONSIDER WHETHER THE NUMBER OF REGISTERED ORGANIZATIONS IN  AN  AREA
WILL BE ADEQUATE OR EXCESSIVE TO REASONABLY SERVE THE AREA; AND
  (VI) THE APPLICANT AND ITS MANAGING OFFICERS ARE OF GOOD MORAL CHARAC-
TER.
  (B)  IF THE COMMISSIONER IS NOT SATISFIED THAT THE APPLICANT SHOULD BE
ISSUED A REGISTRATION, HE OR SHE SHALL NOTIFY THE APPLICANT  IN  WRITING
OF  THOSE FACTORS UPON WHICH FURTHER EVIDENCE IS REQUIRED. WITHIN THIRTY
DAYS OF THE RECEIPT OF SUCH NOTIFICATION, THE APPLICANT MAY SUBMIT ADDI-
TIONAL MATERIAL TO THE COMMISSIONER.
  (C) THE FEE FOR A REGISTRATION UNDER THIS SECTION SHALL BE  AN  AMOUNT
DETERMINED  BY  THE  DEPARTMENT IN REGULATIONS; PROVIDED HOWEVER, IF THE
REGISTRATION IS ISSUED FOR A PERIOD GREATER THAN TWO YEARS THE FEE SHALL
BE INCREASED, PRO RATA, FOR EACH ADDITIONAL MONTH OF VALIDITY.
  (D) REGISTRATIONS ISSUED UNDER THIS SECTION SHALL  BE  EFFECTIVE  ONLY
FOR AND SHALL SPECIFY:
  (I) THE NAME AND ADDRESS OF THE REGISTERED ORGANIZATION; AND
  (II)  WHICH  ACTIVITIES  OF A REGISTERED ORGANIZATION ARE PERMITTED BY
THE REGISTRATION.
  (E) UPON APPLICATION OF A REGISTERED ORGANIZATION, A REGISTRATION  MAY
BE  AMENDED  TO ALLOW THE REGISTERED ORGANIZATION TO RELOCATE WITHIN THE
STATE OR TO ADD OR DELETE PERMITTED REGISTERED ORGANIZATION  ACTIVITIES.
THE FEE FOR SUCH AMENDMENT SHALL BE TWO HUNDRED FIFTY DOLLARS.
  3.  A  REGISTRATION  ISSUED  UNDER THIS SECTION SHALL BE VALID FOR TWO
YEARS FROM THE DATE OF ISSUE, EXCEPT THAT IN  ORDER  TO  FACILITATE  THE
RENEWALS  OF  SUCH  REGISTRATIONS, THE COMMISSIONER MAY UPON THE INITIAL
APPLICATION FOR A  REGISTRATION,  ISSUE  SOME  REGISTRATIONS  WHICH  MAY
REMAIN VALID FOR A PERIOD OF TIME GREATER THAN TWO YEARS BUT NOT EXCEED-
ING AN ADDITIONAL ELEVEN MONTHS.
  4.  APPLICATIONS  FOR RENEWAL OF REGISTRATIONS. (A) AN APPLICATION FOR
THE RENEWAL OF ANY REGISTRATION ISSUED UNDER THIS SECTION SHALL BE FILED
WITH THE DEPARTMENT NOT MORE THAN SIX MONTHS NOR LESS THAN  FOUR  MONTHS
PRIOR  TO  THE  EXPIRATION  THEREOF.  A  LATE-FILED  APPLICATION FOR THE
RENEWAL OF A REGISTRATION MAY, IN THE DISCRETION OF THE COMMISSIONER, BE
TREATED AS AN APPLICATION FOR AN INITIAL LICENSE.
  (B)  THE  APPLICATION  FOR  RENEWAL  SHALL  INCLUDE  SUCH  INFORMATION
PREPARED  IN  THE  MANNER  AND  DETAIL  AS THE COMMISSIONER MAY REQUIRE,
INCLUDING BUT NOT LIMITED TO:
  (I) ANY MATERIAL CHANGE IN THE  CIRCUMSTANCES  OR  FACTORS  LISTED  IN
SUBDIVISION ONE OF THIS SECTION; AND
  (II)  EVERY KNOWN CHARGE OR INVESTIGATION, PENDING OR CONCLUDED DURING
THE PERIOD OF THE REGISTRATION, BY ANY GOVERNMENTAL AGENCY WITH  RESPECT
TO:
  (1)  EACH  INCIDENT  OR ALLEGED INCIDENT INVOLVING THE THEFT, LOSS, OR
POSSIBLE DIVERSION OF  MARIHUANA  MANUFACTURED  OR  DISTRIBUTED  BY  THE
APPLICANT; AND
  (2)  COMPLIANCE  BY  THE  APPLICANT  WITH  THE  LAWS OF THE STATE WITH
RESPECT TO ANY SUBSTANCE LISTED IN SECTION THIRTY-THREE HUNDRED  SIX  OF
THIS ARTICLE.
  (C)  AN  APPLICANT  FOR  RENEWAL  SHALL  BE UNDER A CONTINUING DUTY TO
REPORT TO THE DEPARTMENT ANY CHANGE IN FACTS OR CIRCUMSTANCES  REFLECTED
IN  THE APPLICATION OR ANY NEWLY DISCOVERED OR OCCURRING FACT OR CIRCUM-
STANCE WHICH IS REQUIRED TO BE INCLUDED IN THE APPLICATION.

S. 8427                             9

  (D) IF THE COMMISSIONER IS NOT SATISFIED THAT THE APPLICANT  IS  ENTI-
TLED TO A RENEWAL OF THE REGISTRATION, HE OR SHE SHALL WITHIN FORTY-FIVE
DAYS AFTER THE FILING OF THE APPLICATION SERVE UPON THE APPLICANT OR HIS
OR  HER  ATTORNEY OF RECORD IN PERSON OR BY REGISTERED OR CERTIFIED MAIL
AN  ORDER  DIRECTING THE APPLICANT TO SHOW CAUSE WHY HIS OR HER APPLICA-
TION FOR RENEWAL SHOULD NOT BE DENIED. THE ORDER SHALL SPECIFY IN DETAIL
THE RESPECTS IN WHICH THE APPLICANT HAS NOT SATISFIED  THE  COMMISSIONER
THAT THE REGISTRATION SHOULD BE RENEWED.
  (E)  WITHIN  THIRTY  DAYS  OF SERVICE OF SUCH ORDER, THE APPLICANT MAY
EITHER SUBMIT ADDITIONAL MATERIAL TO THE COMMISSIONER.
  5. GRANTING OF RENEWAL OF REGISTRATIONS. (A)  THE  COMMISSIONER  SHALL
RENEW  A  REGISTRATION  UNLESS  HE  OR SHE DETERMINES AND FINDS THAT THE
APPLICANT:
  (I) IS UNLIKELY TO MAINTAIN OR BE ABLE TO MAINTAIN  EFFECTIVE  CONTROL
AGAINST DIVERSION; OR
  (II)  IS  UNLIKELY  TO  COMPLY  WITH  ALL STATE LAWS APPLICABLE TO THE
ACTIVITIES IN WHICH IT MAY ENGAGE UNDER THE REGISTRATION; OR
  (III) IS AN APPLICANT  UNDER  PARAGRAPH  (C)  OF  SUBDIVISION  ONE  OF
SECTION THIRTY-THREE HUNDRED SIXTY-FOUR OF THIS TITLE, IN WHICH CASE THE
COMMISSIONER MAY CONSIDER WHETHER THE NUMBER OF REGISTERED ORGANIZATIONS
IN AN AREA IS ADEQUATE OR EXCESSIVE TO REASONABLY SERVE THE AREA.
  (B)  FOR  PURPOSES  OF THIS SECTION, PROOF THAT A REGISTERED ORGANIZA-
TION, DURING THE PERIOD OF ITS  REGISTRATION,  HAS  FAILED  TO  MAINTAIN
EFFECTIVE  CONTROL  AGAINST  DIVERSION  OR  HAS KNOWINGLY OR NEGLIGENTLY
FAILED TO COMPLY WITH APPLICABLE STATE LAWS RELATING TO  THE  ACTIVITIES
IN WHICH IT ENGAGES UNDER THE REGISTRATION, SHALL CONSTITUTE SUBSTANTIAL
EVIDENCE  THAT  THE  APPLICANT  WILL  BE  UNLIKELY TO MAINTAIN EFFECTIVE
CONTROL AGAINST DIVERSION OR WILL BE UNLIKELY TO COMPLY WITH THE  APPLI-
CABLE STATE STATUTES DURING THE PERIOD OF PROPOSED RENEWAL.
  6.  THE  DEPARTMENT  MAY  SUSPEND  OR  TERMINATE THE REGISTRATION OF A
REGISTERED ORGANIZATION, ON GROUNDS  AND  USING  PROCEDURES  UNDER  THIS
ARTICLE RELATING TO A LICENSE, TO THE EXTENT CONSISTENT WITH THIS TITLE.
  S  3366.  REPORTS  BY  REGISTERED  ORGANIZATIONS.  1. THE COMMISSIONER
SHALL, BY REGULATION, REQUIRE EACH REGISTERED ORGANIZATION  THAT  SELLS,
DELIVERS  OR  DISTRIBUTES  MEDICAL  MARIHUANA  TO A CERTIFIED PATIENT OR
DESIGNATED CAREGIVER TO FILE REPORTS OF ALL SUCH  SALES,  DELIVERIES  OR
DISTRIBUTIONS BY THE REGISTERED ORGANIZATION DURING A PARTICULAR PERIOD,
ON FORMS PROVIDED BY THE DEPARTMENT. REPORTS SHALL BE NOT MORE FREQUENT-
LY THAN EVERY SIX MONTHS.  EACH REPORT SHALL INCLUDE FOR EACH SUCH SALE,
DELIVERY  OR  DISTRIBUTION:  THE  DATE,  THE QUANTITY SOLD, DELIVERED OR
DISTRIBUTED; AND THE NAME, ADDRESS AND REGISTRY IDENTIFICATION NUMBER OF
THE CERTIFIED PATIENT AND THE DESIGNATED CAREGIVER (IF ANY).
  2. THE COMMISSIONER SHALL,  BY  REGULATION,  REQUIRE  EACH  REGISTERED
PRODUCER  TO  FILE  REPORTS OF ALL SALES, DELIVERIES OR DISTRIBUTIONS OF
MEDICAL MARIHUANA BY THE REGISTERED PRODUCER DURING A PARTICULAR PERIOD,
ON FORMS PROVIDED BY THE DEPARTMENT. REPORTS SHALL BE NOT MORE FREQUENT-
LY THAN EVERY MONTH. EACH REPORT  SHALL  INCLUDE  FOR  EACH  SUCH  SALE,
DELIVERY  OR  DISTRIBUTION:  THE  DATE,  THE QUANTITY SOLD, DELIVERED OR
DISTRIBUTED; AND THE NAME AND ADDRESS OF THE REGISTERED ORGANIZATION  TO
WHICH THE SALE, DELIVERY OR DISTRIBUTION WAS MADE.
  S  3367.  EVALUATION;  RESEARCH PROGRAMS; REPORT BY DEPARTMENT. 1. THE
COMMISSIONER MAY PROVIDE FOR THE ANALYSIS AND EVALUATION OF  THE  OPERA-
TION  OF THIS TITLE. THE COMMISSIONER MAY ENTER INTO AGREEMENTS WITH ONE
OR MORE PERSONS, NOT-FOR-PROFIT CORPORATIONS OR OTHER ORGANIZATIONS, FOR
THE PERFORMANCE OF AN EVALUATION OF THE IMPLEMENTATION AND EFFECTIVENESS
OF THIS TITLE.

S. 8427                            10

  2. THE DEPARTMENT MAY DEVELOP, SEEK  ANY  NECESSARY  FEDERAL  APPROVAL
FOR, AND CARRY OUT RESEARCH PROGRAMS RELATING TO MEDICAL USE OF MARIHUA-
NA.    PARTICIPATION  IN ANY SUCH RESEARCH PROGRAM SHALL BE VOLUNTARY ON
THE PART OF PRACTITIONERS, PATIENTS, AND DESIGNATED CAREGIVERS.
  3.  THE  DEPARTMENT  SHALL REPORT EVERY TWO YEARS, BEGINNING TWO YEARS
AFTER THE EFFECTIVE DATE OF THIS TITLE, TO THE GOVERNOR AND THE LEGISLA-
TURE ON THE MEDICAL USE OF MARIHUANA UNDER THIS TITLE AND MAKE APPROPRI-
ATE RECOMMENDATIONS.
  S 3368. REGISTERED ORGANIZATION ASSESSMENTS. 1. EACH REGISTERED ORGAN-
IZATION SHALL BE CHARGED AN  ASSESSMENT  IN  THE  AMOUNT  OF  SEVEN  AND
ONE-TENTH  PERCENT OF ITS GROSS RECEIPTS RECEIVED FROM ALL MEDICAL MARI-
HUANA SOLD, DELIVERED OR DISTRIBUTED, LESS REFUNDS,  ON  A  CASH  BASIS.
THE  ASSESSMENT  SHALL  BE  SUBMITTED  BY OR ON BEHALF OF THE REGISTERED
ORGANIZATION TO THE COMMISSIONER OR HIS OR HER DESIGNEE ON A SCHEDULE TO
BE DETERMINED BY THE COMMISSIONER.
  2. THE GROSS RECEIPTS TAX OWED  BY  A  REGISTERED  ORGANIZATION  UNDER
SECTION  TWENTY-EIGHT  HUNDRED  SEVEN-D OF THIS CHAPTER, ATTRIBUTABLE TO
THE SALE, DELIVERY OR  DISTRIBUTION  OF  MEDICAL  MARIHUANA  UNDER  THIS
TITLE, SHALL BE DEDUCTIBLE BY THE REGISTERED ORGANIZATION FROM ANY GROSS
RECEIPTS ASSESSMENT OWED BY IT UNDER THIS TITLE.
  3. THE REGISTERED ORGANIZATION SHALL MAINTAIN THE DOCUMENTATION NECES-
SARY  TO ESTABLISH WHAT AMOUNT IS OWED PURSUANT TO THIS SECTION AND SUCH
RECORDS SHALL BE SUBJECT TO AUDIT BY THE  COMMISSIONER  OR  HIS  OR  HER
DESIGNEE.
  4. NO GOVERNMENTAL AGENCY OPERATING AS A REGISTERED ORGANIZATION SHALL
PAY AN ASSESSMENT PURSUANT TO THIS SECTION.
  S  3369.  RELATION  TO  OTHER  LAWS. 1. THE PROVISIONS OF THIS ARTICLE
SHALL APPLY TO THIS TITLE, EXCEPT THAT WHERE A PROVISION OF  THIS  TITLE
CONFLICTS  WITH  ANOTHER  PROVISION  OF  THIS  ARTICLE, THIS TITLE SHALL
APPLY.
  2. NOTHING IN THIS TITLE SHALL BE CONSTRUED TO REQUIRE OR PROHIBIT  AN
INSURER  OR HEALTH PLAN UNDER THE INSURANCE LAW OR THE PUBLIC HEALTH LAW
TO PROVIDE COVERAGE FOR MEDICAL MARIHUANA. NOTHING IN THIS  TITLE  SHALL
BE  CONSTRUED  TO  REQUIRE  COVERAGE FOR MEDICAL MARIHUANA UNDER ARTICLE
TWENTY-FIVE OF THIS CHAPTER OR ARTICLE FIVE OF THE SOCIAL SERVICES LAW.
  3. A PERSON OR ENTITY SHALL  NOT  BE  SUBJECT  TO  CRIMINAL  OR  CIVIL
LIABILITY  OR  PROFESSIONAL DISCIPLINE FOR ACTING REASONABLY AND IN GOOD
FAITH PURSUANT TO THIS TITLE.
  S 3. Section 853 of the general business law is amended  by  adding  a
new subdivision 3 to read as follows:
  3.  THIS ARTICLE SHALL NOT APPLY TO ANY SALE, FURNISHING OR POSSESSION
WHICH IS FOR A LAWFUL PURPOSE UNDER TITLE FIVE-A OF ARTICLE THIRTY-THREE
OF THE PUBLIC HEALTH LAW.
  S 4. This act shall take effect immediately.