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

                                  9507

                          I N  A S S E M B L Y

                             March 10, 2016
                               ___________

Introduced  by  M.  of  A.  GOTTFRIED, DINOWITZ, HEVESI, LUPARDO, BLAKE,
  ZEBROWSKI, SKARTADOS, ORTIZ, BRINDISI -- Multi-Sponsored by --  M.  of
  A.  CERETTO,  SEPULVEDA  -- read once and referred to the Committee on
  Health

AN ACT to amend the public health  law,  in  relation  to  organizations
  registered to sell, deliver, distribute or dispense medical marihuana

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

  Section 1. Subdivisions 4, 6 and 13 of  section  3364  of  the  public
health  law, as added by chapter 90 of the laws of 2014, are amended and
two new subdivisions 14 and 15 are added to read as follows:
  4. (a) A registered organization may lawfully, in  good  faith,  sell,
deliver, distribute or dispense 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
name and registry identification number of the certified patient and the
designated caregiver (if any); the date  the  marihuana  was  sold;  any
recommendation or limitation by the practitioner as to the form or forms
of  medical  marihuana or dosage for the certified patient; and the form
and the quantity of medical marihuana sold. The registered  organization
shall  retain a copy of the registry identification card and the receipt
for six years.
  (b) The [proprietor of a] registered organization shall file or  cause
to  be  filed any receipt and certification information with the depart-
ment by electronic means on a real time basis as the commissioner  shall
require by regulation. When filing receipt and certification information
electronically  pursuant to this paragraph, the proprietor of the regis-
tered  organization  shall  dispose  of  any   electronically   recorded
prescription  information  in  such  manner as the commissioner shall by
regulation require.

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

                                                           LBD13605-01-6

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  6. When a registered  organization  sells,  delivers,  distributes  or
dispenses  medical  marihuana to a certified patient or designated care-
giver, it shall provide to that individual a safety insert,  which  will
be  developed  and  approved by the commissioner and include, but not be
limited to, information on:
  (a) methods for administering medical marihuana in individual doses,
  (b) any potential dangers stemming from the use of medical marihuana,
  (c) how to recognize what may be problematic usage of medical marihua-
na  and  obtain appropriate services or treatment for problematic usage,
and
  (d)  other  information  as  determined   by   the   commissioner   IN
REGULATIONS.
  13.  The  commissioner  is  authorized to make [rules and] regulations
restricting the advertising and marketing of  medical  marihuana,  which
shall  be consistent with the federal regulations governing prescription
drug advertising and marketing.
  14. A REGISTERED ORGANIZATION MAY CONTRACT WITH A PERSON OR ENTITY  TO
PROVIDE FACILITIES, EQUIPMENT OR SERVICES THAT ARE PART OF OR INCIDENTAL
TO  THE  REGISTERED  ORGANIZATION'S  FUNCTIONS  OR ACTIVITIES UNDER THIS
SECTION. ALL LAWS AND REGULATIONS APPLICABLE TO THE REGISTERED ORGANIZA-
TION SHALL APPLY TO THE CONTRACT. THE REGISTERED ORGANIZATION AND  OTHER
PARTIES  TO  THE  CONTRACT SHALL EACH BE RESPONSIBLE AND ACCOUNTABLE FOR
COMPLIANCE WITH SUCH  LAWS  AND  REGULATIONS  UNDER  THE  CONTRACT.  THE
COMMISSIONER MAY MAKE REGULATIONS CONSISTENT WITH THIS TITLE RELATING TO
CONTRACTS AND PARTIES TO CONTRACTS UNDER THIS SUBDIVISION.
  15.  A  REGISTERED  ORGANIZATION  MAY  LAWFULLY,  IN GOOD FAITH, SELL,
DELIVER, OR DISTRIBUTE MEDICAL MARIHUANA TO  A  REGISTERED  ORGANIZATION
AND  MAY  ACQUIRE  MEDICAL  MARIHUANA FROM A REGISTERED ORGANIZATION, IN
ACCORDANCE WITH THE REGISTRATION OF BOTH REGISTERED ORGANIZATIONS.
  S 2. Subdivisions 1, 3, 8 and 9 of section 3365 of the  public  health
law,  as added by chapter 90 of the laws of 2014, are amended to read as
follows:
  1. Application for initial registration. (a) An applicant  for  regis-
tration  as a registered organization under section thirty-three hundred
sixty-four of this title shall include such information prepared in such
manner and detail as the commissioner may  require,  including  but  not
limited to:
  (i) a description of the activities in which it intends to engage as a
registered organization;
  (ii) that the applicant:
  (A) is of good moral character;
  (B)  possesses or has the right to use sufficient land, buildings, and
other premises (which shall be specified in the application) and  equip-
ment  to  properly  carry on the activity OR ACTIVITIES described in the
application, or in the alternative posts a bond of  not  less  than  two
million dollars;
  (C)  is  able  to  maintain  effective security and control to prevent
diversion, abuse, and other illegal conduct relating to the marihuana;
  (D) is able to comply with all applicable state laws  and  regulations
relating  to  the  activities  in  which  it intends to engage under the
registration;
  (iii) that the applicant has entered into a labor peace agreement with
a bona-fide labor organization that is actively engaged in  representing
or attempting to represent the applicant's employees. The maintenance of
such  a  labor peace agreement shall be an ongoing material condition of
certification.

A. 9507                             3

  (iv) the applicant's status under subdivision one of  section  thirty-
three hundred sixty-four of this title; and
  (v)  the  application  shall  include  the name, residence address and
title of each of the officers and directors and the name  and  residence
address  of any person or entity that is a member of the applicant. Each
such person, if an individual, or lawful representative if a legal enti-
ty, shall submit an affidavit with the application setting forth:
  (A) any position of management or ownership during the  preceding  ten
years  of  a  ten  per centum or greater interest in any other business,
located in or outside this state, manufacturing or distributing drugs;
  (B) whether such person or any such business has been convicted  of  a
felony  or  had  a  registration  or license suspended or revoked in any
administrative or judicial proceeding; and
  (C) such other information as the commissioner may reasonably require.
  3. 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 OR ACTIVITIES
described in the application;
  (v) it is in the public interest that such  registration  be  granted;
the commissioner may consider whether the number of registered organiza-
tions  in  an area will be adequate or excessive to reasonably serve the
area;
  (vi) the applicant and its managing officers are of good moral charac-
ter;
  (vii) the applicant has entered into a labor peace  agreement  with  a
bona-fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees; and
  (viii)  the  applicant satisfies any other conditions as determined by
the commissioner.
  (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 or demand a hearing, or both.
  (c)  The  fee for a registration under this section shall be a reason-
able 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 the registered organization and shall specify:
  (i) the name and address of the registered organization;
  (ii)  which  activities  of a registered organization are permitted by
the registration;
  (iii) the land, buildings and facilities that  may  be  used  for  the
permitted activities of the registered organization; and

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  (iv)  such  other  information  as  the  commissioner shall reasonably
provide to assure compliance with this title.
  (e)  Upon application of a registered organization, a registration may
be amended to allow the registered organization to relocate  within  the
state  or  to add or delete permitted registered organization activities
or facilities. The fee for such amendment shall  be  two  hundred  fifty
dollars.
  8.  The  department  shall  begin issuing registrations for registered
organizations as soon as practicable after the [certifications]  CERTIF-
ICATION  required  by  section thirty-three hundred sixty-nine-b of this
title [are] IS given.
  9. The commissioner shall register  [no  more  than  five]  registered
organizations [that manufacture medical marihuana with no more than four
dispensing  sites wholly owned and operated by such registered organiza-
tion] AND FACILITIES TO PROMOTE REASONABLE ACCESS TO  MEDICAL  MARIHUANA
IN  THE INTEREST OF CERTIFIED PATIENTS AND THE PUBLIC.  The commissioner
shall ensure that [such] registered organizations and  dispensing  sites
are  geographically  distributed  across the state AND SHALL NOT REQUIRE
THAT DISPENSING SITES BE OWNED OR OPERATED BY THE  REGISTERED  ORGANIZA-
TION  LICENSED  TO  MANUFACTURE  MEDICAL  MARIHUANA. [The commission may
register additional registered organizations.]
  S 3. This act shall take effect immediately; provided that the  amend-
ments  to  title 5-a of article 33 of the public health law made by this
act shall not affect the expiration and repeal of such title  and  shall
expire and be deemed repealed therewith.