senate Bill S2774

Legalizes the possession, manufacture, use, delivery, transfer, transport or administration of marihuana by a certified patient or designated caregiver

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 01 / Feb / 2011
    • REFERRED TO HEALTH
  • 04 / Jan / 2012
    • REFERRED TO HEALTH
  • 20 / Mar / 2012
    • RECOMMIT, ENACTING CLAUSE STRICKEN

Summary

Legalizes the possession, manufacture, use, delivery, transfer, transport or administration of marihuana by a certified patient or designated caregiver for a certified medical use; prescribes procedures for such possession, manufacture, etc. including certification of patients by their practitioner, and that, in the practitioner's professional judgment, the serious condition should be treated with the medical use of marihuana; provides that possession or manufacture of marihuana shall be lawful under these provisions provided that the marihuana possessed does not exceed a total aggregate weight of two and a half ounces; directs the department of health to monitor such use and promulgate rules and regulations for registry identification cards; provides for reports by the department of health to the governor and legislature on the medical use of marihuana.

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Bill Details

See Assembly Version of this Bill:
A7347
Versions:
S2774
Legislative Cycle:
2011-2012
Current Committee:
Senate Health
Law Section:
Public Health Law
Laws Affected:
Add Art 33 Title 5-A §§3360 - 3369, Pub Health L; amd §853, Gen Bus L
Versions Introduced in 2009-2010 Legislative Cycle:
S8427, A11565, S7283

Sponsor Memo

BILL NUMBER:S2774

TITLE OF BILL:
An act
to amend the public health law and the general business law,
in relation to
medical use of marihuana

PURPOSE OR GENERAL IDEA OF BILL:
Allows patient to use marihuana to
treat a serious illness under medical supervision.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Legislative findings and Intent.

Section 2. Amends Public Health Law Article 33 by adding a new Title
V-A, Medical Use of Marihuana.

§3360 defines certified medical use, certified patient, certification,
designated caregiver, public place, serious condition, medical
marihuana, registry application, registry identification card, and
usable marihuana. A serious condition is defined as a severe
debilitating or life threatening condition or a condition associated
with or a complication of such a condition, or its treatment.

§3361 allows a licensed practitioner (the defined term in the Public
Health Law for people who may prescribe controlled substances) to
certify that a patient has a serious condition that in the
practitioner's judgment can and should be treated with the medical
use of marihuana. A copy of the certification will be placed in the
patient's medical records and the patient will get the original. A
prescriber is not allowed to certify medical marijuana for himself or
herself. A certification will be valid for a maximum of one year from
the date it is written.

§3362 allows the possession of up to two and one half ounces of
marihuana by a certified patient in possession of a valid registry
identification card, for medical use. A designated caregiver may
possess that amount for each patient for whom her or she is the
caregiver. Use of medical marihuana is not allowed in a public place.

§3363 directs the Department of Health to issue registry
identification cards to certified patients and designated caregivers.
No individual shall be a designated caregiver for more than five
patients.

§3364 creates registered organizations for the purpose of acquiring,
possessing, manufacturing, selling, delivering, transporting or
distributing marihuana for certified medical use. A registered
organization may be a pharmacy; an Article 28-licensed facility
(hospital, clinic, etc.);
a not-for-profit corporation organized to be a registered
organization; the Department; a local health department; or a
registered producer (an entity that produces marihuana, solely for
sale to other registered organizations).


§3365 establishes guidelines for the registering of registered
organizations.
Allows the department to suspend or terminate a registration on
grounds, and using procedures under this article relating to a
license, to the extent consistent with this title.

§3366 requires registered organizations to report to the commissioner
all sales, deliveries or distributions of medical marihuana to
certified patients or designated caregivers during a particular period.

§3367 directs the Health Department to contract with a third party to
conduct an evaluation of the operation of the law.

§3368 applies other provisions of Article 33 to this title. Where a
provision of this title conflicts with another provision of Article
33, this title applies. The bill does not require any public or
private health plan to cover medical marihuana. Re-states the rule
that reasonable good-faith actions in compliance with this title,
absent some other element, would not subject a person or entity to
criminal or civil liability or professional discipline.

Section 3 of the bill amends Section 853-g of the General Business Law
to allow for the sale, furnishing and possession of materials used in
the lawful administration of medical marihuana to a certified patient.

JUSTIFICATION:
Thousands of New Yorkers have serious medical
conditions that may benefit from medical use of marijuana. The
National Academy of Sciences' Institute of Medicine concluded in a
1999 report that "nausea, appetite loss, pain and anxiety...all can
be mitigated by marijuana." Doctors and patients have documented that
marijuana can be an effective treatment - where other medications
have failed - for at least some patients who suffer from HIV/AIDS,
cancer, epilepsy, multiple sclerosis, and other life-threatening or
debilitating conditions.
Although other drugs are more effective than marijuana for some
patients, the Institute of Medicine noted that "there will likely
always be a subpopulation of patients who do not respond well to
other medications." Medical marihuana must be available to those
patients.

The active ingredient in marijuana, THC, has been approved for medical
use by the Federal Food and Drug Administration and the Drug
Enforcement Agency since 1986 in synthetic pill form. But consuming
it in natural form - which many physicians say is more effective -
continues to be illegal. In an editorial in the January 30, 1997 New
England Journal of Medicine, Dr. Jerome P. Kassirer, editor of the
Journal, explained that inhaling THC is more effective than taking
the synthetic pill: "smoking marijuana produces a rapid increase in
the blood level of the active ingredients and is thus more likely to
be therapeutic." It also enables tighter control of the amount
ingested. According to the Institute of Medicine, "it is well
recognized that (the) oral route of administration hampers its
effectiveness because of slow absorption and patients' desire for
more control over dosing."


Legalizing the medical use of effective medicine does not undermine
the message that nonmedical use of illegal drugs is wrong. Many
controlled substances that are legal for medical use (such as
morphine, Valium and steroids) are otherwise illegal. In the same New
England Journal of
Medicine editorial, Dr. Kassirer argued that "it is also hypocritical
to forbid physicians to prescribe marijuana while permitting them to
use morphine and meperidine to relive extreme dyspnea and pain."

The bill amends the Public Health Law rather than the Penal Law
because the Penal Law's controlled substances provisions all relate
back to the Public Health Law. Thus, all the acts that the bill makes
lawful under the Public Health Law would, by definition, be legal
under the Penal Law.

PRIOR LEGISLATIVE HISTORY:

1997-98: A.6407 - referred to Health
1999-00: A.8082 - referred to Health
2001-02: A.5878 - referred to Health
2003: A.5796 - reported to Rules
2004: A.57960-A - reported to Rules
2005-06: A.8265 - reported to Rules
2007-08: A.4867-A and B - passed Assembly

FISCAL IMPLICATIONS:
Minimal administrative expenses, largely covered
by registration fees and substantial Medicaid savings.

EFFECTIVE DATE:
Immediately.

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

                                  2774

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 1, 2011
                               ___________

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

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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02415-01-1

S. 2774                             2

        3361. CERTIFICATION OF PATIENTS.
        3362. POSSESSION.
        3363. REGISTRY IDENTIFICATION CARDS.
        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

S. 2774                             3

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
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

S. 2774                             4

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  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 TWELVE.  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

S. 2774                             5

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-
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.

S. 2774                             6

  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.
  (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-

S. 2774                             7

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-
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;

S. 2774                             8

  (III) THE APPLICANT AND ITS OFFICERS ARE READY, WILLING  AND  ABLE  TO
PROPERLY CARRY ON THE MANUFACTURING OR DISTRIBUTING ACTIVITY FOR WHICH A
REGISTRATION IS SOUGHT;
  (IV)  THE APPLICANT POSSESSES OR HAS THE RIGHT TO USE SUFFICIENT LAND,
BUILDINGS AND EQUIPMENT TO PROPERLY CARRY ON THE ACTIVITY  DESCRIBED  IN
THE APPLICATION;
  (V) IT IS IN THE PUBLIC INTEREST THAT SUCH REGISTRATION BE GRANTED; 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

S. 2774                             9

  (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.
  (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

S. 2774                            10

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.
  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.

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