The New York State Senate

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

                                  1617

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2019
                               ___________

Introduced by M. of A. PEOPLES-STOKES, GOTTFRIED, LUPARDO, WEPRIN, HUNT-
  ER,   HYNDMAN,   PICHARDO,   BLAKE,  L. ROSENTHAL,  JAFFEE,  DINOWITZ,
  JEAN-PIERRE,  ABINANTI,  RICHARDSON,  HEVESI,  WALKER,  VANEL,   NIOU,
  WRIGHT,  BICHOTTE,  CAHILL,  LIFTON  -- Multi-Sponsored by -- M. of A.
  EPSTEIN, MOSLEY, SEAWRIGHT, SIMON, STECK,  TAYLOR  --  read  once  and
  referred to the Committee on Codes

AN ACT to amend the public health law, in relation to the description of
  marihuana,  and the growing of and use of marihuana by persons twenty-
  one years of age or older; to amend the civil practice law and  rules,
  in  relation  to  removing certain references to marihuana relating to
  forfeiture actions; to amend the vehicle and traffic law, in  relation
  to  making technical changes regarding the definition of marihuana; to
  amend the penal law, in  relation  to  the  qualification  of  certain
  offenses involving marihuana and to exempt certain persons from prose-
  cution  for  the use, consumption, display, production or distribution
  of marihuana; to amend the public health law in relation to the  defi-
  nition  of  smoking;  to  amend the alcoholic beverage control law, in
  relation to providing for  the  licensure  of  persons  authorized  to
  produce,  process  and sell marihuana; to amend the state finance law,
  in relation to establishing the New York state marihuana revenue fund,
  the New York state drug treatment education  fund  and  the  New  York
  state  community  grants  reinvestment  fund; to amend the tax law, in
  relation to providing for the levying of  an  excise  tax  on  certain
  sales  of  marihuana;  to  amend the criminal procedure law, the civil
  practice law and rules, the general business law,  the  state  finance
  law,  the  executive  law, the penal law, the vehicle and traffic law,
  and the family court act in relation to making conforming changes;  to
  amend  the  alcoholic  beverage control law, in relation to alcohol or
  substance use disorder training awareness programs; to amend the state
  finance law, in relation to a revolving loan fund; to repeal  sections
  221.05,  221.10,  221.15, 221.20, 221.25, 221.30, 221.35 and 221.40 of
  the penal law relating to the criminal possession and sale of marihua-
  na; to repeal paragraph (f) of subdivision 2 of  section  850  of  the
  general business law relating to drug related paraphernalia; to repeal

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD07592-01-9

A. 1617                             2

  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.
  § 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,

A. 1617                             3

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.
  [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. 1617                             4

  (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,
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.

A. 1617                             5

  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
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

A. 1617                             6

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
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

A. 1617                             7

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.
  [(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.

A. 1617                             8

  [(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
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].

A. 1617                             9

  (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-
CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
NUMBERING SYSTEM.

A. 1617                            10

  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.
  § 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:

A. 1617                            11

§ 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-
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-

A. 1617                            12

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.
  § 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

A. 1617                            13

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
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

A. 1617                            14

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, 20-e, 20-f, and 20-g of
section 3 of the alcoholic beverage control law are renumbered  subdivi-
sions  20-j, 20-k, 20-l, 20-m, 20-n, 20-o, and 20-p and ten new subdivi-
sions 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
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-

A. 1617                            15

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
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.

A. 1617                            16

  (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
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

A. 1617                            17

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
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

A. 1617                            18

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
  (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

A. 1617                            19

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
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.

A. 1617                            20

  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
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

A. 1617                            21

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-
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.

A. 1617                            22

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.
        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.

A. 1617                            23

        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.
  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,

A. 1617                            24

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
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

A. 1617                            25

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
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

A. 1617                            26

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-
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-

A. 1617                            27

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.
  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.

A. 1617                            28

  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.
  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

A. 1617                            29

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;
  (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

A. 1617                            30

  (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 DELIVERIES AT THE LICENSED PREMISES OF THE
PURCHASER.
  3. EACH PRODUCER SHALL KEEP AND MAINTAIN UPON THE  LICENSED  PREMISES,
ADEQUATE  BOOKS  AND  RECORDS OF ALL TRANSACTIONS INVOLVING THE PRODUCER
AND SALE OF HIS OR ITS PRODUCTS, WHICH  SHALL  INCLUDE  ALL  INFORMATION
REQUIRED BY RULES PROMULGATED BY THE BUREAU. EACH SALE SHALL BE RECORDED
SEPARATELY  ON  A NUMBERED INVOICE, WHICH SHALL HAVE PRINTED THEREON THE
NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE LICENSED  PREMISES,
AND  THE  CURRENT  LICENSE  NUMBER.  SUCH  PRODUCER SHALL DELIVER TO THE
PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND ADDRESS  OF  THE
PURCHASER,  THE  QUANTITY  PURCHASED,  DESCRIPTION  AND THE PRICE OF THE
PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF  THE  TERMS  AND
CONDITIONS  ON WHICH SUCH SALE IS MADE. SUCH BOOKS, RECORDS AND INVOICES
SHALL BE KEPT FOR A PERIOD OF TWO  YEARS  AND  SHALL  BE  AVAILABLE  FOR
INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.

A. 1617                            31

  4. NO PRODUCER SHALL FURNISH OR CAUSE TO BE FURNISHED TO ANY LICENSEE,
ANY  EXTERIOR OR INTERIOR SIGN, PRINTED, PAINTED, ELECTRIC OR OTHERWISE,
EXCEPT AS AUTHORIZED BY THE BUREAU. THE BUREAU MAY MAKE SUCH RULES AS IT
DEEMS NECESSARY TO CARRY OUT THE PURPOSE AND INTENT OF THIS SUBDIVISION.
  §  176.  PROVISIONS  GOVERNING  PROCESSORS.  1.  NO PROCESSOR SHALL BE
ENGAGED IN ANY OTHER BUSINESS ON THE PREMISES  TO  BE  LICENSED;  EXCEPT
THAT NOTHING CONTAINED IN THIS CHAPTER SHALL PREVENT A MARIHUANA PRODUC-
ER  AND  A  MARIHUANA  PROCESSOR FROM OPERATING ON THE SAME PREMISES AND
FROM A PERSON HOLDING BOTH LICENSES.
  2. NO PROCESSOR SHALL SELL, OR AGREE TO SELL OR DELIVER IN  THE  STATE
ANY MARIHUANA PRODUCTS, EXCEPT IN A SEALED PACKAGE 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.
  3.  NO  PROCESSOR SHALL DELIVER ANY PRODUCTS, EXCEPT IN VEHICLES OWNED
AND OPERATED BY SUCH PROCESSOR, OR HIRED AND OPERATED BY SUCH  PROCESSOR
FROM  A  TRUCKING  OR TRANSPORTATION COMPANY REGISTERED WITH THE BUREAU,
AND SHALL ONLY MAKE DELIVERIES AT THE LICENSED PREMISES OF THE  PURCHAS-
ER.
  4.  EACH PROCESSOR SHALL KEEP AND MAINTAIN UPON THE LICENSED PREMISES,
ADEQUATE BOOKS AND RECORDS OF ALL TRANSACTIONS  INVOLVING  THE  BUSINESS
TRANSACTED  BY  SUCH PROCESSOR, WHICH SHALL SHOW THE AMOUNT OF MARIHUANA
PRODUCTS, PURCHASED BY SUCH PROCESSOR TOGETHER WITH THE  NAMES,  LICENSE
NUMBERS  AND  PLACES  OF  BUSINESS OF THE PERSONS FROM WHOM THE SAME WAS
PURCHASED AND THE AMOUNT INVOLVED IN SUCH  PURCHASES,  AS  WELL  AS  THE
AMOUNT  OF  MARIHUANA  PRODUCTS SOLD BY SUCH PROCESSOR TOGETHER WITH THE
NAMES, ADDRESSES, AND LICENSE NUMBERS  OF  SUCH  PURCHASERS.  EACH  SALE
SHALL  BE  RECORDED  SEPARATELY  ON A NUMBERED INVOICE, WHICH SHALL HAVE
PRINTED THEREON THE NUMBER, THE NAME OF THE LICENSEE, THE ADDRESS OF THE
LICENSED PREMISES, AND THE CURRENT LICENSE NUMBER. SUCH PROCESSOR  SHALL
DELIVER  TO  THE PURCHASER A TRUE DUPLICATE INVOICE STATING THE NAME AND
ADDRESS OF THE PURCHASER, QUANTITY PURCHASED, DESCRIPTION AND THE  PRICE
OF THE PRODUCT, AND A TRUE, ACCURATE AND COMPLETE STATEMENT OF THE TERMS
AND  CONDITIONS  ON  WHICH  SUCH  SALE  IS MADE. SUCH BOOKS, RECORDS AND
INVOICES SHALL BE KEPT FOR A PERIOD OF TWO YEARS AND SHALL BE  AVAILABLE
FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  §  177. PROVISIONS GOVERNING MARIHUANA RETAILERS. 1. NO RETAIL LICENSE
SHALL BE GRANTED FOR ANY PREMISES, UNLESS THE  APPLICANT  SHALL  BE  THE
OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A LEASE,
MANAGEMENT  AGREEMENT  OR  OTHER  AGREEMENT GIVING THE APPLICANT CONTROL
OVER THE PREMISES, IN WRITING, FOR A TERM  NOT  LESS  THAN  THE  LICENSE
PERIOD.
  2.  NO  PREMISES  SHALL BE LICENSED TO SELL MARIHUANA PRODUCTS, UNLESS
SAID PREMISES SHALL BE LOCATED IN A STORE,  THE  PRINCIPAL  ENTRANCE  TO
WHICH  SHALL  BE FROM THE STREET LEVEL AND LOCATED ON A PUBLIC THOROUGH-
FARE IN PREMISES WHICH MAY BE OCCUPIED, OPERATED OR CONDUCTED FOR  BUSI-
NESS,  TRADE  OR  INDUSTRY  OR  ON AN ARCADE OR SUB-SURFACE THOROUGHFARE
LEADING TO A RAILROAD TERMINAL. THERE MAY BE NOT  MORE  THAN  ONE  ADDI-
TIONAL  ENTRANCE WHICH SHALL BE FROM THE STREET LEVEL AND LOCATED ON AND
GIVING ACCESS TO AND FROM A PUBLIC OR PRIVATE  PARKING  LOT  OR  PARKING
AREA HAVING SPACE FOR NOT LESS THAN FIVE AUTOMOBILES.
  3. NO MARIHUANA RETAIL LICENSE SHALL BE GRANTED FOR ANY PREMISES WHICH
A  LICENSE  WOULD  NOT  BE  ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF
ALCOHOL OFF THE PREMISES BASED ON ITS PROXIMITY TO A  BUILDING  OCCUPIED

A. 1617                            32

EXCLUSIVELY  AS  A  SCHOOL,  CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4.  NO  MARIHUANA  RETAIL  LICENSEE SHALL OFFER FOR SALE ANY MARIHUANA
PRODUCTS IN ANY OTHER CONTAINER, EXCEPT IN THE ORIGINAL SEALED  PACKAGE,
AS RECEIVED FROM THE PRODUCER, DISTRIBUTOR OR PROCESSOR. SUCH CONTAINERS
SHALL  HAVE  AFFIXED THERETO SUCH LABELS AS MAY BE REQUIRED BY THE RULES
OF THE BUREAU, TOGETHER WITH ALL NEW YORK STATE EXCISE  TAX  STAMPS,  AS
REQUIRED  BY  LAW.  SUCH CONTAINERS SHALL NOT BE OPENED NOR ITS CONTENTS
CONSUMED ON THE PREMISES WHERE SOLD.
  5. NO MARIHUANA RETAIL  LICENSEE  SHALL  SELL  OR  TRANSFER  MARIHUANA
PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
  6.  NO MARIHUANA RETAIL LICENSEE SHALL SELL ALCOHOLIC BEVERAGES ON THE
SAME PREMISES WHERE MARIHUANA PRODUCTS ARE SOLD.
  7. NO SIGN OF ANY KIND PRINTED, PAINTED OR ELECTRIC,  ADVERTISING  ANY
BRAND  SHALL  BE PERMITTED ON THE EXTERIOR OR INTERIOR OF SUCH PREMISES,
EXCEPT BY PERMISSION OF THE BUREAU.
  8. NO RETAIL LICENSEE SHALL DELIVER ANY MARIHUANA PRODUCTS  EXCEPT  IN
VEHICLES  OWNED  AND OPERATED BY SUCH LICENSEE, OR HIRED AND OPERATED BY
SUCH LICENSEE FROM A TRUCKING OR TRANSPORTATION COMPANY REGISTERED  WITH
THE  BUREAU,  AND SHALL ONLY MAKE SUCH DELIVERIES AT THE PREMISES OF THE
PURCHASER.
  9. NO RETAIL LICENSEE SHALL  KEEP  OR  PERMIT  TO  BE  KEPT  UPON  THE
LICENSED PREMISES, ANY MARIHUANA PRODUCTS IN ANY UNSEALED CONTAINER.
  10. NO PREMISES LICENSED AS A MARIHUANA RETAILER SHALL BE PERMITTED TO
REMAIN OPEN DURING A TIME WHEN A PREMISES LICENSED TO SELL LIQUOR AND/OR
WINE FOR OFF-PREMISES CONSUMPTION IS NOT PERMITTED TO REMAIN OPEN PURSU-
ANT TO THE PROVISIONS OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  11.  EACH  MARIHUANA  RETAIL LICENSEE SHALL KEEP AND MAINTAIN UPON THE
LICENSED PREMISES,  ADEQUATE  BOOKS  AND  RECORDS  OF  ALL  TRANSACTIONS
INVOLVING THE BUSINESS TRANSACTED BY SUCH LICENSEE, WHICH SHALL SHOW THE
AMOUNT  OF  MARIHUANA PRODUCTS, PURCHASED BY SUCH LICENSEE TOGETHER WITH
THE NAMES, LICENSE NUMBERS AND PLACES OF BUSINESS OF  THE  PERSONS  FROM
WHOM THE SAME WERE PURCHASED, AND THE AMOUNT INVOLVED IN SUCH PURCHASES,
AS  WELL AS THE AMOUNT OF MARIHUANA PRODUCTS, SOLD BY SUCH LICENSEE, AND
THE AMOUNT INVOLVED IN EACH SALE. SUCH BOOKS AND RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  12. ALL PREMISES LICENSED UNDER  THIS  SECTION  SHALL  BE  SUBJECT  TO
INSPECTION BY ANY PEACE OFFICER DESCRIBED IN SUBDIVISION FOUR OF SECTION
2.10 OF THE CRIMINAL PROCEDURE LAW ACTING PURSUANT TO HIS OR HER SPECIAL
DUTIES,  OR  POLICE OFFICER OR ANY DULY AUTHORIZED REPRESENTATIVE OF THE
BUREAU, DURING THE HOURS WHEN THE SAID PREMISES ARE OPEN FOR THE  TRANS-
ACTION OF BUSINESS.
  § 178. PROVISIONS GOVERNING MARIHUANA ON-SITE CONSUMPTION LICENSES. 1.
NO  MARIHUANA  RETAILER  OR  MICROBUSINESS  SHALL BE GRANTED A MARIHUANA
ON-SITE CONSUMPTION LICENSE FOR A PREMISES LOCATED IN WHOLE OR  IN  PART
INSIDE  THE  BOUNDARIES  OF  ANY CITY, VILLAGE OR TOWN, UNLESS THE LOCAL
LEGISLATIVE BODY OF SUCH CITY, VILLAGE OR TOWN, BY RESOLUTION, EXPRESSLY
AUTHORIZES THE LICENSING OF SUCH FACILITIES IN  SUCH  CITY,  VILLAGE  OR
TOWN.  THE  LOCAL  LEGISLATIVE  BODY  MAY DIRECT AN APPROPRIATE OFFICER,
BOARD OR BODY OF SUCH CITY, VILLAGE  OR  TOWN  AS  THE  LOCAL  LICENSING
AUTHORITY  TO  AUTHORIZE  INDIVIDUAL MARIHUANA FACILITY LICENSE APPLICA-
TIONS. IN CITIES OF ONE MILLION OR  MORE  RESIDENTS,  SHOULD  THE  LOCAL
LEGISLATIVE  BODY  AUTHORIZE SUCH LICENSE, NO MARIHUANA RETAILER LICENSE
FOR CONSUMPTION ON-SITE SHALL BE  GRANTED  UNLESS  THE  COMMUNITY  BOARD
ESTABLISHED  PURSUANT  TO  SECTION  TWENTY-EIGHT HUNDRED OF THE NEW YORK

A. 1617                            33

CITY CHARTER WITH JURISDICTION OVER THE AREA IN WHICH THE PREMISES  WILL
BE LOCATED SHALL ALSO AUTHORIZE SUCH LICENSE.
  2. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
ON-SITE CONSUMPTION LICENSE FOR ANY PREMISES, UNLESS THE APPLICANT SHALL
BE THE OWNER THEREOF, OR SHALL BE IN POSSESSION OF SAID PREMISES UNDER A
LEASE,  IN  WRITING, FOR A TERM NOT LESS THAN THE LICENSE PERIOD EXCEPT,
HOWEVER, THAT  SUCH  LICENSE  MAY  THEREAFTER  BE  RENEWED  WITHOUT  THE
REQUIREMENT  OF  A  LEASE AS HEREIN PROVIDED. THIS SUBDIVISION SHALL NOT
APPLY TO PREMISES LEASED FROM  GOVERNMENT  AGENCIES,  AS  DEFINED  UNDER
SUBDIVISION  TWELVE-C OF SECTION THREE OF THIS CHAPTER; PROVIDED, HOWEV-
ER,  THAT  THE  APPROPRIATE  ADMINISTRATOR  OF  SUCH  GOVERNMENT  AGENCY
PROVIDES SOME FORM OF WRITTEN DOCUMENTATION REGARDING THE TERMS OF OCCU-
PANCY  UNDER  WHICH  THE  APPLICANT  IS  LEASING  SAID PREMISES FROM THE
GOVERNMENT AGENCY FOR PRESENTATION TO THE BUREAU  AT  THE  TIME  OF  THE
LICENSE APPLICATION. SUCH DOCUMENTATION SHALL INCLUDE THE TERMS OF OCCU-
PANCY  BETWEEN  THE  APPLICANT AND THE GOVERNMENT AGENCY, INCLUDING, BUT
NOT LIMITED TO, ANY SHORT-TERM LEASING AGREEMENTS OR  WRITTEN  OCCUPANCY
AGREEMENTS.
  3. NO MARIHUANA RETAILER OR MICROBUSINESS SHALL BE GRANTED A MARIHUANA
ON-SITE  CONSUMPTION  LICENSE FOR ANY PREMISES WHERE A LICENSE WOULD NOT
BE ALLOWED TO SELL AT RETAIL FOR CONSUMPTION OF ALCOHOL ON THE  PREMISES
BASED  ON  ITS PROXIMITY TO A BUILDING OCCUPIED EXCLUSIVELY AS A SCHOOL,
CHURCH, SYNAGOGUE OR OTHER PLACE OF WORSHIP PURSUANT TO  THE  PROVISIONS
OF SECTION ONE HUNDRED FIVE OF THIS CHAPTER.
  4.  THE BUREAU MAY CONSIDER ANY OR ALL OF THE FOLLOWING IN DETERMINING
WHETHER PUBLIC CONVENIENCE AND ADVANTAGE AND THE PUBLIC INTEREST WILL BE
PROMOTED BY THE GRANTING OF LICENSES AND PERMITS FOR A MARIHUANA ON-SITE
CONSUMPTION LICENSE AT A PARTICULAR UNLICENSED LOCATION:
  (A) THE NUMBER, CLASSES AND CHARACTER OF LICENSES IN PROXIMITY TO  THE
LOCATION  AND  IN  THE  PARTICULAR  TOWN, CITY OR VILLAGE OR SUBDIVISION
THEREOF.
  (B) EVIDENCE  THAT  ALL  NECESSARY  LICENSES  AND  PERMITS  HAVE  BEEN
OBTAINED FROM THE STATE AND ALL OTHER GOVERNING BODIES.
  (C)  EFFECT OF THE GRANT OF THE LICENSE ON VEHICULAR TRAFFIC AND PARK-
ING IN PROXIMITY TO THE LOCATION.
  (D) THE EXISTING NOISE LEVEL AT THE LOCATION AND ANY INCREASE IN NOISE
LEVEL THAT WOULD BE GENERATED BY THE PROPOSED PREMISES.
  (E) ANY OTHER FACTORS SPECIFIED BY LAW OR REGULATION THAT ARE RELEVANT
TO DETERMINE THE PUBLIC CONVENIENCE AND ADVANTAGE AND PUBLIC INTEREST OF
THE COMMUNITY.
  5. IF THE BUREAU SHALL DISAPPROVE AN  APPLICATION  FOR  A  LICENSE  OR
PERMIT,  IT SHALL STATE AND FILE IN ITS OFFICES THE REASONS THEREFOR AND
SHALL NOTIFY THE APPLICANT THEREOF. SUCH APPLICANT MAY  THEREUPON  APPLY
TO  THE  BUREAU FOR A REVIEW OF SUCH ACTION IN A MANNER TO BE PRESCRIBED
BY THE RULES OF THE BUREAU. A HEARING UPON NOTICE TO THE APPLICANT SHALL
THEREUPON BE HELD BY THE BUREAU OR BY ONE OF ITS MEMBERS AT  ITS  OFFICE
MOST  CONVENIENTLY  SITUATED TO THE OFFICE OF ITS DULY AUTHORIZED REPRE-
SENTATIVE IN A MANNER TO BE PRESCRIBED IN ITS RULES; AND ON SUCH HEARING
PROOF MAY BE TAKEN BY ORAL TESTIMONY OR BY AFFIDAVIT  RELATIVE  THERETO.
AFTER  SUCH  HEARING,  IF THE BUREAU CONFIRMS SUCH DISAPPROVAL, IT SHALL
ENDORSE SUCH APPLICATION ACCORDINGLY AND SHALL SEND NOTICE TO THE APPLI-
CANT OF ITS ACTION IN SUCH FORM AS THE  BUREAU  MAY  PRESCRIBE.  IF  THE
BUREAU  DOES NOT CONFIRM THE DISAPPROVAL ACTION IT MAY GRANT SUCH APPLI-
CATION AND ISSUE SUCH LICENSE.
  6. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE, EXCEPT PERSONS OR CORPO-
RATIONS OPERATING A HOTEL, AS DEFINED IN SUBDIVISION FOURTEEN OF SECTION

A. 1617                            34

THREE OF THIS CHAPTER, FOR EXCLUSIVE  USE  IN  THE  FURNISHING  OF  ROOM
SERVICE  IN  THE  MANNER PRESCRIBED BY RULE OR REGULATION OF THE BUREAU,
SHALL KEEP UPON THE LICENSED PREMISES  ANY  MARIHUANA  PRODUCTS,  EXCEPT
THOSE  PURCHASED FROM A LICENSED PRODUCER, AND IN CONTAINERS APPROVED 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
EXCISE STAMPS AS REQUIRED BY  LAW.  NO  MARIHUANA  RETAIL  LICENSEE  FOR
ON-SITE CONSUMPTION SHALL REUSE, REFILL, TAMPER WITH, ADULTERATE, DILUTE
OR  FORTIFY  THE  CONTENTS  OF  ANY  CONTAINER  OF MARIHUANA PRODUCTS AS
RECEIVED FROM THE MANUFACTURER OR WHOLESALER.
  7. NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL  SELL,  DELIVER  OR
GIVE  AWAY, OR CAUSE OR PERMIT OR PROCURE TO BE SOLD, DELIVERED OR GIVEN
AWAY ANY MARIHUANA FOR CONSUMPTION ON  THE  PREMISES  WHERE  SOLD  IN  A
CONTAINER OR PACKAGE CONTAINING MORE THAN ONE GRAM OF MARIHUANA.
  8.  EXCEPT  WHERE  A  PERMIT  TO DO SO IS OBTAINED PURSUANT TO SECTION
405.10 OF THE PENAL LAW, NO MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL
SUFFER, PERMIT, OR PROMOTE AN EVENT ON ITS PREMISES WHEREIN  ANY  PERSON
SHALL  USE,  EXPLODE,  OR CAUSE TO EXPLODE, ANY FIREWORKS OR OTHER PYRO-
TECHNICS IN A BUILDING AS DEFINED IN PARAGRAPH E OF SUBDIVISION  ONE  OF
SECTION  405.10  OF  THE  PENAL  LAW, THAT IS COVERED BY SUCH LICENSE OR
POSSESS SUCH FIREWORKS OR PYROTECHNICS FOR SUCH PURPOSE. IN ADDITION  TO
ANY OTHER PENALTY PROVIDED BY LAW, A VIOLATION OF THIS SUBDIVISION SHALL
CONSTITUTE  AN  ADEQUATE GROUND FOR INSTITUTING A PROCEEDING TO SUSPEND,
CANCEL, OR REVOKE THE LICENSE OF THE VIOLATOR  IN  ACCORDANCE  WITH  THE
APPLICABLE  PROCEDURES SPECIFIED IN SECTION ONE HUNDRED NINETEEN OF THIS
CHAPTER; PROVIDED HOWEVER, IF MORE THAN ONE LICENSEE IS PARTICIPATING IN
A SINGLE EVENT, UPON APPROVAL BY THE  BUREAU,  ONLY  ONE  LICENSEE  MUST
OBTAIN SUCH PERMIT.
  9.  NO  RESTAURANT AND NO PREMISES LICENSED TO SELL MARIHUANA PRODUCTS
FOR ON-SITE CONSUMPTION  UNDER  PARAGRAPH  (A)  OF  SUBDIVISION  SIX  OF
SECTION  SIXTY-FOUR-A  OF  THIS  CHAPTER  SHALL BE PERMITTED TO HAVE ANY
OPENING OR MEANS OF ENTRANCE OR PASSAGEWAY FOR PERSONS OR THINGS BETWEEN
THE LICENSED PREMISES AND ANY  OTHER  ROOM  OR  PLACE  IN  THE  BUILDING
CONTAINING THE LICENSED PREMISES, OR ANY ADJOINING OR ABUTTING PREMISES,
UNLESS  INGRESS  AND  EGRESS  IS RESTRICTED BY AN EMPLOYEE, AGENT OF THE
LICENSEE, OR OTHER APPROVED METHOD OF CONTROLLING ACCESS TO THE  FACILI-
TY,  OR UNLESS SUCH PREMISES ARE A BONA FIDE RESTAURANT WITH SUCH ACCESS
FOR PATRONS AND GUESTS FROM ANY PART OF SUCH BUILDING  OR  ADJOINING  OR
ABUTTING  PREMISES AS SHALL SERVE PUBLIC CONVENIENCE IN A REASONABLE AND
SUITABLE MANNER; OR UNLESS SUCH LICENSED  PREMISES  ARE  IN  A  BUILDING
OWNED  OR  OPERATED  BY  ANY  TOWN, CITY, VILLAGE OR PUBLIC AUTHORITY OR
AGENCY, IN A PARK OR OTHER SIMILAR PLACE OF  PUBLIC  ACCOMMODATION.  ALL
GLASS IN ANY WINDOW OR DOOR ON SAID LICENSED PREMISES SHALL BE CLEAR AND
SHALL NOT BE OPAQUE, COLORED, STAINED OR FROSTED.
  10.  A VESSEL LICENSED TO SELL MARIHUANA PRODUCTS FOR ON-SITE CONSUMP-
TION SHALL NOT BE PERMITTED TO SELL ANY MARIHUANA PRODUCTS,  WHILE  SAID
VESSEL  IS  MOORED  TO  A  PIER  OR DOCK, EXCEPT THAT VESSELS SAILING ON
ESTABLISHED SCHEDULES SHALL BE PERMITTED TO SELL MARIHUANA PRODUCTS  FOR
A PERIOD OF THREE HOURS PRIOR TO THE REGULAR ADVERTISED SAILING TIME.
  11.  EACH  MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL KEEP AND MAIN-
TAIN UPON THE LICENSED PREMISES, ADEQUATE RECORDS  OF  ALL  TRANSACTIONS
INVOLVING  THE BUSINESS TRANSACTED BY SUCH LICENSEE WHICH SHALL SHOW THE
AMOUNT OF MARIHUANA  PRODUCTS,  IN  AN  APPLICABLE  METRIC  MEASUREMENT,
PURCHASED  BY SUCH LICENSEE TOGETHER WITH THE NAMES, LICENSE NUMBERS AND
PLACES OF BUSINESS OF THE PERSONS FROM WHOM THE SAME WERE PURCHASED, THE
AMOUNT INVOLVED IN SUCH PURCHASES, AS WELL AS  THE  SALES  OF  MARIHUANA

A. 1617                            35

PRODUCTS  MADE  BY  SUCH  LICENSEE.  THE  BUREAU IS HEREBY AUTHORIZED TO
PROMULGATE RULES AND REGULATIONS PERMITTING AN ON-SITE LICENSEE  OPERAT-
ING  TWO OR MORE PREMISES SEPARATELY LICENSED TO SELL MARIHUANA PRODUCTS
FOR ON-SITE CONSUMPTION TO INAUGURATE OR RETAIN IN THIS STATE METHODS OR
PRACTICES  OF  CENTRALIZED  ACCOUNTING,  BOOKKEEPING,  CONTROL  RECORDS,
REPORTING, BILLING, INVOICING OR PAYMENT RESPECTING PURCHASES, SALES  OR
DELIVERIES  OF  MARIHUANA PRODUCTS, OR METHODS AND PRACTICES OF CENTRAL-
IZED RECEIPT OR STORAGE OF MARIHUANA PRODUCTS WITHIN THIS STATE  WITHOUT
SEGREGATION  OR  EARMARKING  FOR  ANY SUCH SEPARATELY LICENSED PREMISES,
WHEREVER SUCH METHODS AND PRACTICES ASSURE  THE  AVAILABILITY,  AT  SUCH
LICENSEE'S  CENTRAL  OR  MAIN  OFFICE  IN THIS STATE, OF DATA REASONABLY
NEEDED FOR THE ENFORCEMENT OF THIS CHAPTER. SUCH RECORDS SHALL BE AVAIL-
ABLE FOR INSPECTION BY ANY AUTHORIZED REPRESENTATIVE OF THE BUREAU.
  12. ALL RETAIL LICENSED PREMISES SHALL BE SUBJECT TO INSPECTION BY ANY
PEACE OFFICER, ACTING PURSUANT TO HIS OR HER SPECIAL DUTIES,  OR  POLICE
OFFICER AND BY THE DULY AUTHORIZED REPRESENTATIVES OF THE BUREAU, DURING
THE  HOURS  WHEN THE SAID PREMISES ARE OPEN FOR THE TRANSACTION OF BUSI-
NESS.
  13. A MARIHUANA ON-SITE CONSUMPTION LICENSEE SHALL NOT  PROVIDE  MARI-
HUANA PRODUCTS TO ANY PERSON UNDER THE AGE OF TWENTY-ONE.
  §  179.  ADVERTISING  AND  FORMS  FOR THE ISSUANCE OF LICENSES. 1. THE
BUREAU IS HEREBY AUTHORIZED TO PROMULGATE RULES AND REGULATIONS  GOVERN-
ING  THE ADVERTISING OF MARIHUANA PRODUCERS, MARIHUANA PROCESSORS, MARI-
HUANA RETAILERS, AND ANY MARIHUANA RELATED PRODUCTS OR SERVICES.
  2. THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING  ADVERTISING
THAT:
  (A) IS FALSE, DECEPTIVE, OR MISLEADING;
  (B) PROMOTES OVERCONSUMPTION;
  (C) DEPICTS CONSUMPTION BY CHILDREN OR OTHER MINORS;
  (D) IS DESIGNED IN ANY WAY TO APPEAL TO CHILDREN OR OTHER MINORS;
  (E) IS WITHIN TWO HUNDRED FEET OF THE PERIMETER OF A PLAYGROUND, CHILD
CARE CENTER, PUBLIC PARK, LIBRARY OR SCHOOL GROUNDS;
  (F) IS IN PUBLIC TRANSIT VEHICLES AND STATIONS;
  (G) IS IN THE FORM OF AN UNSOLICITED INTERNET POP-UP; OR
  (H) IS ON PUBLICLY OWNED OR OPERATED PROPERTY.
  3.  THE BUREAU SHALL PROMULGATE EXPLICIT RULES PROHIBITING ALL MARKET-
ING STRATEGIES AND IMPLEMENTATION INCLUDING, BUT NOT LIMITED TO,  BRAND-
ING,  PACKAGING, LABELING, LOCATION OF MARIHUANA RETAILERS AND MARIHUANA
MICROBUSINESSES, AND ADVERTISEMENTS THAT ARE DESIGNED TO:
  (A) APPEAL TO PERSONS LESS THEN TWENTY-ONE YEARS OF AGE; OR
  (B) DISSEMINATE FALSE OR MISLEADING INFORMATION TO CUSTOMERS.
  4. THE BUREAU SHALL PROMULGATE EXPLICIT RULES REQUIRING THAT:
  (A) ALL ADVERTISEMENTS AND MARKETING ACCURATELY AND  LEGIBLY  IDENTIFY
THE LICENSEE RESPONSIBLE FOR ITS CONTENT; AND
  (B)  ANY  BROADCAST,  CABLE,  RADIO,  PRINT AND DIGITAL COMMUNICATIONS
ADVERTISEMENTS ONLY BE PLACED WHERE THE AUDIENCE IS REASONABLY  EXPECTED
TO  BE  TWENTY-ONE  YEARS  OF  AGE  OR OLDER, AS DETERMINED BY RELIABLE,
UP-TO-DATE AUDIENCE COMPOSITION DATA.
  § 180. PACKAGING OF  MARIHUANA  PRODUCTS.  1.  THE  BUREAU  IS  HEREBY
AUTHORIZED  TO  PROMULGATE RULES AND REGULATIONS GOVERNING THE PACKAGING
OF MARIHUANA PRODUCTS, SOLD OR POSSESSED FOR SALE IN NEW YORK STATE.
  2. SUCH REGULATIONS SHALL INCLUDE REQUIRING THAT:
  (A) PACKAGING  MEETS  REQUIREMENTS  SIMILAR  TO  THE  FEDERAL  "POISON
PREVENTION PACKAGING ACT OF 1970," 15 U.S.C. SEC 1471 ET SEQ.;
  (B) ALL MARIHUANA-INFUSED PRODUCTS SHALL HAVE A SEPARATE PACKAGING FOR
EACH SERVING;

A. 1617                            36

  (C)  PRIOR  TO DELIVERY OR SALE AT A RETAILER, MARIHUANA AND MARIHUANA
PRODUCTS SHALL BE LABELED AND PLACED IN  A  RESEALABLE,  CHILD-RESISTANT
PACKAGE; AND
  (D)  PACKAGES  AND  LABELS SHALL NOT BE MADE TO BE ATTRACTIVE TO CHIL-
DREN.
  § 181. LABELING OF MARIHUANA PRODUCTS. 1. THE BUREAU IS HEREBY AUTHOR-
IZED TO PROMULGATE RULES AND  REGULATIONS  GOVERNING  THE  LABELING  AND
OFFERING OF MARIHUANA PRODUCTS FOR SALE WITHIN THIS STATE.
  2.  SUCH  RULES  AND  REGULATIONS SHALL BE CALCULATED TO: (A) PROHIBIT
DECEPTION OF THE CONSUMER; (B) AFFORD ADEQUATE INFORMATION AS TO QUALITY
AND IDENTITY OF THE PRODUCT; AND (C) ACHIEVE NATIONAL UNIFORMITY IN THIS
BUSINESS.
  3. THE BUREAU MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF HEALTH WHEN
NECESSARY BEFORE PROMULGATING RULES AND REGULATIONS UNDER THIS SECTION.
  4. SUCH REGULATIONS SHALL INCLUDE REQUIRING LABELS  WARNING  CONSUMERS
OF  ANY  POTENTIAL IMPACT ON HUMAN HEALTH RESULTING FROM THE CONSUMPTION
OF MARIHUANA PRODUCTS THAT SHALL BE AFFIXED TO THOSE PRODUCTS WHEN SOLD,
IF SUCH LABELS ARE DEEMED WARRANTED BY  THE  BUREAU  AFTER  CONSULTATION
WITH THE DEPARTMENT OF HEALTH.
  5.  ALL  MARIHUANA  AND  MARIHUANA  PRODUCT  LABELS  AND INSERTS SHALL
INCLUDE THE FOLLOWING INFORMATION PROMINENTLY DISPLAYED IN A  CLEAR  AND
LEGIBLE  FASHION  IN  ACCORDANCE  WITH  THE REQUIREMENTS, INCLUDING FONT
SIZE, PRESCRIBED BY THE BUREAU OR THE DEPARTMENT  OF  HEALTH:  NOT  LESS
THAN 8 POINT FONT:
  (A) MANUFACTURE DATE AND SOURCE;
  (B) FOR PACKAGES CONTAINING ONLY DRIED FLOWER, THE NET WEIGHT OF MARI-
HUANA IN THE PACKAGE;
  (C)  IDENTIFICATION OF THE SOURCE AND DATE OF CULTIVATION, THE TYPE OF
MARIHUANA OR MARIHUANA PRODUCT AND THE DATE OF MANUFACTURING AND PACKAG-
ING;
  (D) LIST OF PHARMACOLOGICALLY ACTIVE INGREDIENTS, INCLUDING,  BUT  NOT
LIMITED  TO,  TETRAHYDROCANNABINOL  (THC),  CANNABIDIOL (CBD), AND OTHER
CANNABINOID CONTENT, THE THC AND OTHER CANNABINOID AMOUNT IN  MILLIGRAMS
PER  SERVING,  SERVINGS  PER  PACKAGE, AND THE THC AND OTHER CANNABINOID
AMOUNT IN MILLIGRAMS FOR THE PACKAGE TOTAL, AND THE POTENCY OF THE MARI-
HUANA OR MARIHUANA PRODUCT BY REFERENCE TO THE AMOUNT OF  TETRAHYDROCAN-
NABINOL AND CANNABIDIOL IN EACH SERVING;
  (E)  FOR  MARIHUANA PRODUCTS, A LIST OF ALL INGREDIENTS AND DISCLOSURE
OF NUTRITIONAL INFORMATION IN THE SAME MANNER AS THE FEDERAL NUTRITIONAL
LABELING REQUIREMENTS IN 21 C.F.R. SECTION 101.9;
  (F) A LIST OF ANY SOLVENTS,  NONORGANIC  PESTICIDES,  HERBICIDES,  AND
FERTILIZERS  THAT WERE USED IN THE CULTIVATION, PRODUCTION, AND MANUFAC-
TURE OF SUCH MARIHUANA OR MARIHUANA PRODUCT;
  (G) A WARNING IF NUTS OR OTHER KNOWN ALLERGENS ARE USED;
  (H) INFORMATION ASSOCIATED WITH THE UNIQUE IDENTIFIER  ISSUED  BY  THE
BUREAU OF MARIHUANA POLICY; AND
  (I) ANY OTHER REQUIREMENTS SET BY THE BUREAU OF MARIHUANA POLICY.
  6.  ONLY GENERIC FOOD NAMES MAY BE USED TO DESCRIBE THE INGREDIENTS IN
EDIBLE MARIHUANA PRODUCTS.
  7. SUCH RULES AND REGULATIONS SHALL ESTABLISH METHODS  AND  PROCEDURES
FOR  DETERMINING  SERVING  SIZES  FOR MARIHUANA-INFUSED PRODUCTS, ACTIVE
CANNABIS CONCENTRATION PER SERVING SIZE,  AND  NUMBER  OF  SERVINGS  PER
CONTAINER.  SUCH REGULATIONS SHALL ALSO REQUIRE A NUTRITIONAL FACT PANEL
THAT INCORPORATES DATA REGARDING SERVING SIZES AND POTENCY THEREOF.

A. 1617                            37

  8. SUCH RULES AND REGULATIONS SHALL REQUIRE INFORMATION CONTAINING THE
LICENSE NUMBER OF THE MARIHUANA PRODUCER AND PROCESSOR FACILITIES  WHERE
THE MARIHUANA WAS GROWN AND PROCESSED.
  9. THE PACKAGING, SALE, OR POSSESSION BY ANY LICENSEE OF ANY MARIHUANA
PRODUCT  NOT LABELED OR OFFERED IN CONFORMITY WITH RULES AND REGULATIONS
PROMULGATED IN ACCORDANCE WITH THIS SECTION SHALL  BE  GROUNDS  FOR  THE
IMPOSITION  OF A FINE, AND/OR THE SUSPENSION, REVOCATION OR CANCELLATION
OF THE LICENSE.
  § 182. SEED TO SALE TRACKING. 1. NO LATER THAN FIFTEEN MONTHS  FOLLOW-
ING THE EFFECTIVE DATE OF THE MARIHUANA REGULATION AND TAXATION ACT, THE
BUREAU SHALL ESTABLISH A SEED TO SALE TRACKING PROGRAM FOR REPORTING THE
MOVEMENT OF MARIHUANA AND MARIHUANA PRODUCTS THROUGHOUT THE DISTRIBUTION
CHAIN  THAT  UTILIZES  A  UNIQUE  IDENTIFIER AND SECURE PACKAGING AND IS
CAPABLE OF PROVIDING INFORMATION THAT CAPTURES, AT A MINIMUM, ALL OF THE
FOLLOWING:
  (A) THE LICENSEE RECEIVING THE PRODUCT;
  (B) THE TRANSACTION DATE; AND
  (C) THE PRODUCER FROM WHICH  THE  PRODUCT  ORIGINATES,  INCLUDING  THE
ASSOCIATED UNIQUE IDENTIFIER.
  2.  (A)  THE BUREAU SHALL CREATE AN ELECTRONIC DATABASE CONTAINING THE
ELECTRONIC SHIPPING MANIFESTS TO FACILITATE THE  ADMINISTRATION  OF  THE
SEED  TO  SALE PROGRAM TRACKING, WHICH SHALL INCLUDE, BUT NOT BE LIMITED
TO, THE FOLLOWING INFORMATION:
  (B) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS SHIPPED;
  (C) THE ESTIMATED TIMES OF DEPARTURE AND ARRIVAL;
  (D) THE QUANTITY, OR WEIGHT, AND VARIETY OF PRODUCTS RECEIVED;
  (E) THE ACTUAL TIME OF DEPARTURE AND ARRIVAL;
  (F) A CATEGORIZATION OF THE PRODUCT; AND
  (G) THE LICENSE NUMBER AND UNIQUE IDENTIFIER ISSUED BY THE BUREAU  FOR
ALL  LICENSEES  INVOLVED  IN  THE  SHIPPING  PROCESS, INCLUDING, BUT NOT
LIMITED TO, PRODUCER, PROCESSOR, RETAILER, AND DELIVERY LICENSEES.
  3. THE DATABASE SHALL BE  DESIGNED  TO  FLAG  IRREGULARITIES  FOR  THE
BUREAU TO INVESTIGATE.
  §  183.  RENEWALS OF LICENSES AND PERMITS. 1. EACH LICENSE AND PERMIT,
ISSUED PURSUANT TO THIS ARTICLE MAY BE RENEWED UPON APPLICATION THEREFOR
BY THE LICENSEE OR PERMITTEE AND THE PAYMENT OF THE ANNUAL FEE FOR  SUCH
LICENSE OR PERMIT AS PRESCRIBED BY THIS ARTICLE. IN THE CASE OF APPLICA-
TIONS  FOR  RENEWALS,  THE  BUREAU MAY DISPENSE WITH THE REQUIREMENTS OF
SUCH STATEMENTS AS IT DEEMS UNNECESSARY IN VIEW OF  THOSE  CONTAINED  IN
THE  APPLICATION  MADE  FOR  THE  ORIGINAL LICENSE OR PERMIT, BUT IN ANY
EVENT THE SUBMISSION OF PHOTOGRAPHS OF THE LICENSED  PREMISES  SHALL  BE
DISPENSED  WITH,  PROVIDED  THE  APPLICANT FOR SUCH RENEWAL SHALL FILE A
STATEMENT WITH SUCH BUREAU TO THE EFFECT THAT THERE HAS BEEN  NO  ALTER-
ATION  OF  SUCH  PREMISES  SINCE  THE ORIGINAL LICENSE WAS ISSUED.   THE
BUREAU MAY MAKE SUCH RULES AS MAY BE  NECESSARY  NOT  INCONSISTENT  WITH
THIS CHAPTER REGARDING APPLICATIONS FOR RENEWALS OF LICENSES AND PERMITS
AND  THE  TIME  FOR MAKING THE SAME.   EACH APPLICANT MUST SUBMIT TO THE
BUREAU DOCUMENTATION OF THE RACIAL, ETHNIC, AND GENDER DIVERSITY OF  THE
APPLICANT'S  EMPLOYEES  AND  OWNERS  PRIOR  TO A LICENSE OR PERMIT BEING
RENEWED.
  2. THE BUREAU SHALL PROVIDE AN APPLICATION FOR RENEWAL  OF  A  LICENSE
ISSUED  UNDER THIS ARTICLE NOT LESS THAN SIXTY DAYS PRIOR TO THE EXPIRA-
TION OF THE CURRENT LICENSE.
  § 184. INFORMATION TO BE PROVIDED BY APPLICANTS.    1.  THE  FOLLOWING
SHALL  BE  THE  INFORMATION  REQUIRED ON AN APPLICATION FOR A LICENSE OR
PERMIT:

A. 1617                            38

  (A) A STATEMENT OF IDENTITY AS FOLLOWS:
  (I) IF THE APPLICANT IS AN INDIVIDUAL, HIS OR HER NAME, DATE AND PLACE
OF  BIRTH,  CITIZENSHIP,  PERMANENT  HOME  ADDRESS, TELEPHONE NUMBER AND
SOCIAL SECURITY NUMBER, AS WELL AS ANY OTHER NAMES BY WHICH  HE  OR  SHE
HAS CONDUCTED A BUSINESS AT ANY TIME.
  (II)  IF  THE APPLICANT IS A CORPORATION OR A LIMITED LIABILITY CORPO-
RATION, THE CORPORATE NAME OF THE APPLICANT, ITS PLACE OF INCORPORATION,
ITS MAIN BUSINESS ADDRESS (AND IF SUCH  MAIN  BUSINESS  ADDRESS  IS  NOT
WITHIN  THE  STATE, THE ADDRESS OF ITS MAIN PLACE OF BUSINESS WITHIN THE
STATE), OTHER NAMES BY WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS
AT ANY TIME, ITS TELEPHONE NUMBER, ITS FEDERAL  EMPLOYER  IDENTIFICATION
NUMBER,  AND  THE NAMES, AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES
OF ITS DIRECTORS, OFFICERS AND ITS SHAREHOLDERS (EXCEPT THAT IF THERE BE
MORE THAN TEN SHAREHOLDERS THEN THOSE SHAREHOLDERS HOLDING  TEN  PERCENT
OR MORE OF ANY CLASS OF ITS SHARES).
  (III)  IF  THE APPLICANT IS A PARTNERSHIP, ITS NAME, ITS MAIN BUSINESS
ADDRESS (AND IF SUCH MAIN BUSINESS ADDRESS IS NOT WITHIN THE STATE,  THE
ADDRESS  OF ITS MAIN PLACE OF BUSINESS WITHIN THE STATE), OTHER NAMES BY
WHICH IT HAS BEEN KNOWN OR HAS CONDUCTED BUSINESS AT ANY TIME, ITS TELE-
PHONE NUMBER, ITS FEDERAL EMPLOYER IDENTIFICATION NUMBER, AND THE NAMES,
AGES, CITIZENSHIP, AND PERMANENT HOME ADDRESSES OF EACH OF ITS PARTNERS.
  (B) A STATEMENT IDENTIFYING THE STREET AND NUMBER OF THE  PREMISES  TO
BE LICENSED, IF THE PREMISES HAS A STREET AND NUMBER, AND OTHERWISE SUCH
DESCRIPTION AS WILL REASONABLY INDICATE THE TOWN, CITY OR VILLAGE THERE-
OF;  PHOTOGRAPHS,  DRAWINGS  OR OTHER ITEMS RELATED TO THE APPEARANCE OF
THE INTERIOR OR EXTERIOR OF SUCH PREMISES, AND A FLOOR PLAN OF THE INTE-
RIOR, SHALL BE REQUIRED. THE APPLICANT SHALL ALSO STATE  THE  NATURE  OF
HIS  OR  HER  INTEREST IN THE PREMISES; AND THE NAME OF ANY OTHER PERSON
INTERESTED AS A PARTNER, JOINT VENTURER, INVESTOR  OR  LENDER  WITH  THE
APPLICANT EITHER IN THE PREMISES OR IN THE BUSINESS TO BE LICENSED.
  (C)  A DESCRIPTION OF ANY OTHER MARIHUANA LICENSE OR PERMIT UNDER THIS
ARTICLE, WITHIN THE PAST TEN YEARS, THE APPLICANT (INCLUDING  ANY  OFFI-
CERS,  DIRECTORS,  SHAREHOLDERS  OR  PARTNERS LISTED IN THE STATEMENT OF
IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION OR THE  SPOUSE  OF  ANY
SUCH PERSON) OR THE APPLICANT'S SPOUSE HELD OR APPLIED FOR.
  (D)  A  DESCRIPTION  OF THE APPLICANT'S PLAN TO ENSURE DIVERSITY AMONG
THE APPLICANT'S EMPLOYEES, INCLUDING STRATEGIES FOR ENSURING:
  (I) GENDER DIVERSITY;
  (II) RACIAL AND ETHNIC DIVERSITY THAT REFLECTS THE DEMOGRAPHICS WITHIN
THE TOWN, CITY OR VILLAGE IN WHICH  THE  APPLICANT'S  PROPOSED  BUSINESS
WILL BE LOCATED; AND
  (III) THAT PERSONS WITH PRIOR CRIMINAL CONVICTIONS ARE NOT BARRED FROM
EMPLOYMENT.
  (E) FOR AN APPLICANT WITH MORE THAN TWENTY-FIVE EMPLOYEES, A STATEMENT
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.
  (F) A STATEMENT THAT THE LOCATION AND LAYOUT OF  THE  PREMISES  TO  BE
LICENSED  DOES  NOT  VIOLATE ANY REQUIREMENT OF THIS CHAPTER RELATING TO
LOCATION AND LAYOUT OF LICENSED PREMISES, WITH A COPY OF THE CERTIFICATE
OF OCCUPANCY FOR THE PREMISES.
  (G) A STATEMENT THAT THE APPLICANT HAS CONTROL OF THE PREMISES  TO  BE
LICENSED  BY  OWNERSHIP OF A FEE INTEREST OR VIA A LEASEHOLD, MANAGEMENT
AGREEMENT, OR OTHER AGREEMENT GIVING  THE  APPLICANT  CONTROL  OVER  THE

A. 1617                            39

PREMISES,  WITH  A  TERM  AT  LEAST AS LONG AS THE LICENSE FOR WHICH THE
APPLICATION IS BEING MADE, OR BY A BINDING CONTRACT TO ACQUIRE THE  SAME
AND  A STATEMENT OF IDENTITY UNDER PARAGRAPH (A) OF THIS SUBDIVISION FOR
THE  LESSOR  OF  ANY  LEASEHOLD, MANAGER OF ANY MANAGEMENT AGREEMENT, OR
OTHER AGREEMENT GIVING THE APPLICANT CONTROL OVER THE PREMISES,  WITH  A
COPY  OF  THE  LEASE, CONTRACT, MANAGEMENT AGREEMENT, OR OTHER AGREEMENT
GIVING THE APPLICANT CONTROL OVER THE FOOD AND BEVERAGE AT THE PREMISES,
OR DEED EVIDENCING FEE OWNERSHIP OF THE PREMISES.
  (H) A FINANCIAL STATEMENT ADEQUATE TO SHOW ALL PERSONS  WHO,  DIRECTLY
OR INDIRECTLY HAVE AN ECONOMIC INTEREST IN THE ESTABLISHMENT OR ACQUISI-
TION  OF  THE  BUSINESS  FOR  WHICH THE LICENSE OR PERMIT APPLICATION IS
BEING MADE, TO IDENTIFY THE SOURCES OF  FUNDS  TO  BE  APPLIED  IN  SUCH
ESTABLISHMENT  OR  ACQUISITION, AND TO DESCRIBE THE TERMS AND CONDITIONS
GOVERNING SUCH ESTABLISHMENT WITH COPIES OF SUCH FINANCIAL DOCUMENTS  AS
THE BUREAU MAY REASONABLY REQUIRE.
  (I)  THE FINGERPRINTS OF THE APPLICANTS. FINGERPRINTS SUBMITTED BY THE
APPLICANTS SHALL BE TRANSMITTED TO  THE  DIVISION  OF  CRIMINAL  JUSTICE
SERVICES AND MAY BE SUBMITTED TO THE FEDERAL BUREAU OF INVESTIGATION FOR
STATE AND NATIONAL CRIMINAL HISTORY RECORD CHECKS.
  2. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE SIGNED BY THE APPLICANT
(IF AN INDIVIDUAL), BY A MANAGING PARTNER (IF A LIMITED LIABILITY CORPO-
RATION),  BY  AN  OFFICER  (IF  A CORPORATION), OR BY ALL PARTNERS (IF A
PARTNERSHIP). EACH PERSON SIGNING SUCH APPLICATION SHALL  VERIFY  IT  OR
AFFIRM IT AS TRUE UNDER THE PENALTIES OF PERJURY.
  3. ALL LICENSE OR PERMIT APPLICATIONS SHALL BE ACCOMPANIED BY A CHECK,
DRAFT  OR  OTHER FORMS OF PAYMENT AS THE BUREAU MAY REQUIRE OR AUTHORIZE
IN THE AMOUNT REQUIRED BY THIS ARTICLE FOR SUCH LICENSE OR PERMIT.
  4. IF THERE BE ANY CHANGE, AFTER THE FILING OF THE APPLICATION OR  THE
GRANTING  OF  A LICENSE, IN ANY OF THE FACTS REQUIRED TO BE SET FORTH IN
SUCH APPLICATION, A SUPPLEMENTAL STATEMENT GIVING NOTICE OF SUCH CHANGE,
COST AND SOURCE OF MONEY INVOLVED IN THE CHANGE, DULY VERIFIED, SHALL BE
FILED WITH THE BUREAU WITHIN TEN DAYS AFTER SUCH CHANGE. FAILURE  TO  DO
SO  SHALL,  IF  WILLFUL  AND  DELIBERATE, BE CAUSE FOR REVOCATION OF THE
LICENSE.
  5. IN GIVING ANY NOTICE, OR TAKING ANY ACTION IN REFERENCE TO A LICEN-
SEE OF A LICENSED PREMISES, THE BUREAU MAY  RELY  UPON  THE  INFORMATION
FURNISHED   IN  SUCH  APPLICATION  AND  IN  ANY  SUPPLEMENTAL  STATEMENT
CONNECTED THEREWITH, AND SUCH INFORMATION MAY BE PRESUMED TO BE CORRECT,
AND SHALL BE BINDING UPON A LICENSEE OR LICENSED PREMISES AS IF CORRECT.
ALL INFORMATION REQUIRED TO BE FURNISHED IN SUCH APPLICATION OR  SUPPLE-
MENTAL STATEMENTS SHALL BE DEEMED MATERIAL IN ANY PROSECUTION FOR PERJU-
RY,  ANY PROCEEDING TO REVOKE, CANCEL OR SUSPEND ANY LICENSE, AND IN THE
BUREAU'S DETERMINATION TO APPROVE OR DENY THE LICENSE.
  6. THE BUREAU MAY IN ITS DISCRETION WAIVE THE SUBMISSION OF ANY  CATE-
GORY  OF  INFORMATION  DESCRIBED  IN  THIS  SECTION  FOR ANY CATEGORY OF
LICENSE OR PERMIT, PROVIDED THAT IT SHALL NOT BE, EXCEPT FOR  PARAGRAPHS
(A)  AND  (D) OF SUBDIVISION ONE OF THIS SECTION, PERMITTED TO WAIVE THE
REQUIREMENT FOR SUBMISSION OF ANY SUCH CATEGORY  OF  INFORMATION  SOLELY
FOR AN INDIVIDUAL APPLICANT OR APPLICANTS.
  §  185.  NOTIFICATION  TO  TOWNS, CITIES OR VILLAGES. 1. NOT LESS THAN
THIRTY DAYS BEFORE FILING ANY OF THE FOLLOWING APPLICATIONS,  AN  APPLI-
CANT  SHALL  NOTIFY  THE  TOWN, CITY OR VILLAGE IN WHICH THE PREMISES IS
LOCATED OF SUCH APPLICANT'S INTENT TO FILE SUCH AN APPLICATION FOR A:
  (A) MARIHUANA PRODUCER LICENSE;
  (B) MARIHUANA PROCESSOR LICENSE;
  (C) MARIHUANA MICROBUSINESS LICENSE;

A. 1617                            40

  (D) MARIHUANA RETAILER LICENSE;
  (E) MARIHUANA RETAILER LICENSE FOR ON-SITE CONSUMPTION;
  (F) MARIHUANA DELIVERY LICENSE;
  (G) MARIHUANA TESTING LICENSE; AND/OR
  (H) ANY OTHER TYPE OF LICENSES ALLOWED BY THE BUREAU.
  2.  SUCH  NOTIFICATION SHALL BE MADE TO THE CLERK OF THE VILLAGE, TOWN
OR CITY, AS THE CASE MAY  BE,  WHEREIN  THE  PREMISES  IS  LOCATED.  FOR
PURPOSES OF THIS SECTION:
  (A) NOTIFICATION NEED ONLY BE GIVEN TO THE CLERK OF A VILLAGE WHEN THE
PREMISES  IS LOCATED WITHIN THE BOUNDARIES OF THE TOWN, CITY OR VILLAGE;
AND
  (B) IN THE CITY OF NEW YORK, THE COMMUNITY BOARD ESTABLISHED  PURSUANT
TO SECTION TWENTY-EIGHT HUNDRED OF THE NEW YORK CITY CHARTER WITH JURIS-
DICTION  OVER THE AREA IN WHICH THE PREMISES IS LOCATED SHALL BE CONSID-
ERED THE APPROPRIATE PUBLIC BODY TO WHICH NOTIFICATION SHALL BE GIVEN.
  3. FOR PURPOSES OF THIS SECTION, "SUBSTANTIAL CORPORATE CHANGE"  SHALL
MEAN:
  (A) FOR A CORPORATION, A CHANGE OF EIGHTY PERCENT OR MORE OF THE OFFI-
CERS  AND/OR DIRECTORS, OR A TRANSFER OF EIGHTY PERCENT OR MORE OF STOCK
OF SUCH CORPORATION, OR AN EXISTING STOCKHOLDER OBTAINING EIGHTY PERCENT
OR MORE OF THE STOCK OF SUCH CORPORATION;
  (B) FOR A LIMITED LIABILITY COMPANY, A CHANGE  OF  EIGHTY  PERCENT  OR
MORE  OF  THE  MANAGING  MEMBERS OF THE COMPANY, OR A TRANSFER OF EIGHTY
PERCENT OR MORE OF OWNERSHIP INTEREST IN SAID COMPANY,  OR  AN  EXISTING
MEMBER OBTAINING A CUMULATIVE OF EIGHTY PERCENT OR MORE OF THE OWNERSHIP
INTEREST IN SAID COMPANY; AND
  (C) FOR A PARTNERSHIP, A CHANGE OF EIGHTY PERCENT OR MORE OF THE PART-
NERS,  OR  A TRANSFER OF EIGHTY PERCENT OR MORE OF OWNERSHIP INTEREST IN
SAID PARTNERSHIP, OR AN  EXISTING  PARTNER  OBTAINING  A  CUMULATIVE  OF
EIGHTY PERCENT OR MORE OF THE OWNERSHIP INTEREST IN SAID COMPANY.
  4. SUCH NOTIFICATION SHALL BE MADE IN SUCH FORM AS SHALL BE PRESCRIBED
BY THE RULES OF THE BUREAU.
  5.  A  TOWN, CITY OR VILLAGE MAY EXPRESS AN OPINION FOR OR AGAINST THE
GRANTING OF SUCH APPLICATION. ANY SUCH OPINION SHALL BE DEEMED  PART  OF
THE  RECORD  UPON  WHICH  THE BUREAU MAKES ITS DETERMINATION TO GRANT OR
DENY THE APPLICATION.
  6. SUCH NOTIFICATION SHALL BE MADE BY: CERTIFIED MAIL, RETURN  RECEIPT
REQUESTED; OVERNIGHT DELIVERY SERVICE WITH PROOF OF MAILING; OR PERSONAL
SERVICE UPON THE OFFICES OF THE CLERK OR COMMUNITY BOARD.
  7.  THE BUREAU SHALL REQUIRE SUCH NOTIFICATION TO BE ON A STANDARDIZED
FORM THAT CAN BE OBTAINED ON THE INTERNET OR FROM THE  BUREAU  AND  SUCH
NOTIFICATION TO INCLUDE:
  (A)  THE TRADE NAME OR "DOING BUSINESS AS" NAME, IF ANY, OF THE ESTAB-
LISHMENT;
  (B) THE FULL NAME OF THE APPLICANT;
  (C) THE STREET ADDRESS  OF  THE  ESTABLISHMENT,  INCLUDING  THE  FLOOR
LOCATION OR ROOM NUMBER, IF APPLICABLE;
  (D)  THE  MAILING  ADDRESS OF THE ESTABLISHMENT, IF DIFFERENT THAN THE
STREET ADDRESS;
  (E) THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE ATTORNEY  OR  REPRE-
SENTATIVE OF THE APPLICANT, IF ANY;
  (F) A STATEMENT INDICATING WHETHER THE APPLICATION IS FOR:
  (I) A NEW ESTABLISHMENT;
  (II) A TRANSFER OF AN EXISTING LICENSED BUSINESS;
  (III) A RENEWAL OF AN EXISTING LICENSE; OR
  (IV) AN ALTERATION OF AN EXISTING LICENSED PREMISES;

A. 1617                            41

  (G)  IF  THE  ESTABLISHMENT IS A TRANSFER OR PREVIOUSLY LICENSED PREM-
ISES, THE NAME OF THE OLD ESTABLISHMENT AND SUCH ESTABLISHMENT'S LICENSE
SERIAL NUMBER;
  (H)  IN  THE  CASE OF A RENEWAL OR ALTERATION APPLICATION, THE LICENSE
SERIAL NUMBER OF THE APPLICANT; AND
  (I) THE TYPE OF LICENSE.
  § 186. LICENSES, PUBLICATION, GENERAL PROVISIONS. 1. THE VARIOUS TYPES
OF LICENSES ISSUED PURSUANT TO THIS  ARTICLE  SHALL  BE  DISTINCTIVE  IN
COLOR AND DESIGN SO AS TO BE READILY DISTINGUISHABLE FROM EACH OTHER.
  2. NO LICENSE SHALL BE TRANSFERABLE OR ASSIGNABLE EXCEPT THAT NOTWITH-
STANDING  ANY  OTHER  PROVISION OF LAW, THE LICENSE OF A SOLE PROPRIETOR
CONVERTING TO CORPORATE FORM, WHERE SUCH  PROPRIETOR  BECOMES  THE  SOLE
STOCKHOLDER  AND  ONLY OFFICER AND DIRECTOR OF SUCH NEW CORPORATION, MAY
BE TRANSFERRED TO THE SUBJECT CORPORATION IF ALL  REQUIREMENTS  OF  THIS
CHAPTER REMAIN THE SAME WITH RESPECT TO SUCH LICENSE AS TRANSFERRED AND,
FURTHER,  THE  LICENSEE SHALL TRANSMIT TO THE BUREAU, WITHIN TEN DAYS OF
THE TRANSFER OF LICENSE ALLOWABLE UNDER  THIS  SUBDIVISION,  ON  A  FORM
PRESCRIBED BY THE BUREAU, NOTIFICATION OF THE TRANSFER OF SUCH LICENSE.
  3. NO LICENSE SHALL BE PLEDGED OR DEPOSITED AS COLLATERAL SECURITY FOR
ANY  LOAN  OR  UPON ANY OTHER CONDITION; AND ANY SUCH PLEDGE OR DEPOSIT,
AND ANY CONTRACT PROVIDING THEREFOR, SHALL BE VOID.
  4. LICENSES ISSUED UNDER THIS ARTICLE SHALL CONTAIN,  IN  ADDITION  TO
ANY FURTHER INFORMATION OR MATERIAL TO BE PRESCRIBED BY THE RULES OF THE
BUREAU, THE FOLLOWING INFORMATION: (A) NAME OF PERSON TO WHOM LICENSE IS
ISSUED;  (B)  KIND  OF  LICENSE AND WHAT KIND OF TRAFFIC IN MARIHUANA IS
THEREBY PERMITTED; (C) DESCRIPTION BY STREET AND NUMBER,  OR  OTHERWISE,
OF LICENSED PREMISES; AND (D) A STATEMENT IN SUBSTANCE THAT SUCH LICENSE
SHALL  NOT  BE  DEEMED  A  PROPERTY  OR VESTED RIGHT, AND THAT IT MAY BE
REVOKED AT ANY TIME PURSUANT TO LAW.
  5. THERE SHALL BE PRINTED AND FURNISHED BY THE BUREAU TO EACH LICENSEE
A STATEMENT OF THE CAUSES FOR WHICH LICENSES MAY BE REVOKED. SUCH STATE-
MENT SHALL BE PREPARED BY THE BUREAU AND DELIVERED TO THE LICENSEE  WITH
HIS  OR  HER  LICENSE  OR  AS SOON THEREAFTER AS MAY BE PRACTICABLE. ANY
AMENDMENTS THERETO SHALL ALSO BE SENT BY THE BUREAU TO ALL LICENSEES  AS
SOON  AS  MAY BE PRACTICABLE AFTER SUCH AMENDMENTS. FAILURE TO SEND SUCH
STATEMENTS OR CHANGES THEREIN, OR FAILURE TO RECEIVE THE  SAME,  OR  ANY
MISSTATEMENT  OR ERROR CONTAINED IN SUCH STATEMENTS OR AMENDMENTS SHALL,
HOWEVER, NOT BE AN EXCUSE OR JUSTIFICATION FOR ANY VIOLATION OF LAW,  OR
PREVENT, OR REMIT, OR DECREASE ANY PENALTY OR FORFEITURE THEREFOR.
  6.  BEFORE  COMMENCING  OR DOING ANY BUSINESS FOR THE TIME FOR WHICH A
LICENSE HAS BEEN ISSUED SAID LICENSE SHALL BE  ENCLOSED  IN  A  SUITABLE
WOOD OR METAL FRAME HAVING A CLEAR GLASS SPACE AND A SUBSTANTIAL WOOD OR
METAL  BACK  SO  THAT THE WHOLE OF SAID LICENSE MAY BE SEEN THEREIN, AND
SHALL BE POSTED UP AND AT ALL TIMES DISPLAYED IN A CONSPICUOUS PLACE  IN
THE ROOM WHERE SUCH BUSINESS IS CARRIED ON, SO THAT ALL PERSONS VISITING
SUCH PLACE MAY READILY SEE THE SAME. IT SHALL BE UNLAWFUL FOR ANY PERSON
HOLDING  A  LICENSE TO POST SUCH LICENSE OR TO PERMIT SUCH LICENSE TO BE
POSTED UPON PREMISES OTHER THAN THE PREMISES LICENSED, OR UPON  PREMISES
WHERE  TRAFFIC IN MARIHUANA IS BEING CARRIED ON BY ANY PERSON OTHER THAN
THE LICENSEE, OR KNOWINGLY TO DEFACE, DESTROY OR ALTER ANY SUCH  LICENSE
IN  ANY  RESPECT.  WHENEVER A LICENSE SHALL BE LOST OR DESTROYED WITHOUT
FAULT ON THE PART OF THE LICENSEE OR HIS OR HER AGENTS OR  EMPLOYEES,  A
DUPLICATE  LICENSE  IN  LIEU  THEREOF MAY BE ISSUED BY THE BUREAU IN ITS
DISCRETION AND IN ACCORDANCE WITH SUCH RULES  AND  REGULATIONS  AND  THE
PAYMENT OF SUCH FEES, NOT EXCEEDING FIVE DOLLARS, AS IT MAY PRESCRIBE.

A. 1617                            42

  §  187.  REVOCATION  OF  LICENSES  FOR CAUSE. 1. ANY LICENSE OR PERMIT
ISSUED PURSUANT TO THIS ARTICLE MAY  BE  REVOKED,  CANCELLED,  SUSPENDED
AND/OR  SUBJECTED  TO  THE  IMPOSITION OF A CIVIL PENALTY FOR CAUSE, AND
MUST BE REVOKED FOR THE FOLLOWING CAUSES:
  (A)  CONVICTION  OF  THE  LICENSEE,  PERMITTEE  OR HIS OR HER AGENT OR
EMPLOYEE FOR SELLING ANY ILLEGAL MARIHUANA OR MARIHUANA PRODUCTS ON  THE
PREMISES LICENSED.
  (B) FOR TRANSFERRING, ASSIGNING OR HYPOTHECATING A LICENSE OR PERMIT.
  2.  NOTWITHSTANDING  THE  ISSUANCE  OF  A  LICENSE OR PERMIT BY WAY OF
RENEWAL, THE BUREAU MAY REVOKE, CANCEL OR SUSPEND SUCH LICENSE OR PERMIT
AND/OR MAY IMPOSE A CIVIL PENALTY AGAINST ANY HOLDER OF SUCH LICENSE  OR
PERMIT,  AS  PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED NINETEEN
OF THIS CHAPTER, FOR CAUSES OR VIOLATIONS OCCURRING DURING  THE  LICENSE
PERIOD IMMEDIATELY PRECEDING THE ISSUANCE OF SUCH LICENSE OR PERMIT, AND
MAY  RECOVER, AS PROVIDED IN SECTION ONE HUNDRED TWELVE OF THIS CHAPTER,
THE PENAL SUM OF THE BOND ON FILE DURING SAID PERIOD.
  3. AS USED IN THIS SECTION, THE TERM "FOR CAUSE"  SHALL  ALSO  INCLUDE
THE  EXISTENCE  OF A SUSTAINED AND CONTINUING PATTERN OF NOISE, DISTURB-
ANCE, MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES, RELATED
TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF  ITS  PATRONS,  WHICH
ADVERSELY  AFFECTS  THE  HEALTH, WELFARE OR SAFETY OF THE INHABITANTS OF
THE AREA IN WHICH SUCH LICENSED PREMISES ARE LOCATED.
  4. THE EXISTENCE OF A  SUSTAINED  AND  CONTINUING  PATTERN  OF  NOISE,
DISTURBANCE,  MISCONDUCT, OR DISORDER ON OR ABOUT THE LICENSED PREMISES,
RELATED TO THE OPERATION OF THE PREMISES OR THE CONDUCT OF ITS  PATRONS,
WILL BE PRESUMED UPON THE SIXTH INCIDENT REPORTED TO THE BUREAU BY A LAW
ENFORCEMENT  AGENCY OF NOISE OR DISTURBANCE OR MISCONDUCT OR DISORDER ON
OR ABOUT THE LICENSED PREMISES OR RELATED TO THE OPERATION OF THE  PREM-
ISES  OR  THE  CONDUCT  OF  ITS PATRONS, IN ANY SIXTY DAY PERIOD, ABSENT
CLEAR AND CONVINCING EVIDENCE OF EITHER FRAUDULENT INTENT ON THE PART OF
ANY COMPLAINANT OR A FACTUAL ERROR WITH RESPECT TO THE  CONTENT  OF  ANY
REPORT CONCERNING SUCH COMPLAINT RELIED UPON BY THE BUREAU.
  §  188.  PROCEDURE  FOR  REVOCATION OR CANCELLATION. 1. ANY LICENSE OR
PERMIT ISSUED BY THE BUREAU PURSUANT TO THIS  ARTICLE  MAY  BE  REVOKED,
CANCELLED  OR SUSPENDED AND/OR BE SUBJECTED TO THE IMPOSITION OF A MONE-
TARY PENALTY IN THE MANNER PRESCRIBED BY THIS SECTION.
  2. THE BUREAU MAY ON ITS OWN INITIATIVE OR ON COMPLAINT OF ANY  PERSON
INSTITUTE  PROCEEDINGS  TO  REVOKE, CANCEL OR SUSPEND ANY RETAIL LICENSE
AND MAY IMPOSE A CIVIL PENALTY AGAINST THE LICENSEE AFTER A  HEARING  AT
WHICH THE LICENSEE SHALL BE GIVEN AN OPPORTUNITY TO BE HEARD. SUCH HEAR-
ING  SHALL  BE  HELD  IN  SUCH  MANNER  AND  UPON  SUCH NOTICE AS MAY BE
PRESCRIBED BY THE RULES OF THE BUREAU.
  § 189. DECISIONS OF THE BUREAU OF MARIHUANA POLICY AND REVIEW  BY  THE
COURTS.   PROVISIONS OF SECTIONS ONE HUNDRED TWENTY, ONE HUNDRED TWENTY-
ONE AND ONE HUNDRED TWENTY-FOUR OF THIS CHAPTER SHALL APPLY TO MARIHUANA
LICENSES ISSUED UNDER THIS ARTICLE.
  § 190. MINORITY AND WOMEN-OWNED BUSINESSES AND INCUBATOR PROGRAM.  THE
BUREAU SHALL:
  1. IMPLEMENT A SOCIAL EQUITY PLAN AND ACTIVELY PROMOTE RACIAL, ETHNIC,
AND  GENDER DIVERSITY WHEN ISSUING LICENSES FOR MARIHUANA RELATED ACTIV-
ITIES, INCLUDING BY PRIORITIZING CONSIDERATION OF APPLICATIONS BY APPLI-
CANTS WHO QUALIFY AS A MINORITY AND WOMEN-OWNED  BUSINESS.  SUCH  QUALI-
FICATIONS SHALL BE DETERMINED BY THE BUREAU.
  2.  THE  BUREAU SHALL CREATE A SOCIAL EQUITY PLAN TO PROMOTE DIVERSITY
IN OWNERSHIP AND EMPLOYMENT IN THE MARIHUANA INDUSTRY AND ENSURE  INCLU-
SION  OF: (A) MINORITY-OWNED BUSINESSES; (B) WOMEN-OWNED BUSINESSES; AND

A. 1617                            43

(C) MINORITY AND WOMEN-OWNED BUSINESSES, AS DEFINED IN SUBDIVISION  FIVE
OF THIS SECTION.
  3.  THE  SOCIAL  EQUITY PLAN SHALL CONSIDER ADDITIONAL CRITERIA IN ITS
LICENSING DETERMINATIONS. UNDER THE SOCIAL  EQUITY  PLAN,  EXTRA  WEIGHT
SHALL BE GIVEN TO APPLICATIONS THAT DEMONSTRATE THAT AN APPLICANT:
  (A)  IS A MEMBER OF A COMMUNITY GROUP THAT HAS BEEN DISPROPORTIONATELY
IMPACTED BY THE ENFORCEMENT OF MARIHUANA PROHIBITION;
  (B) HAS AN INCOME LOWER THAN EIGHTY PERCENT OF THE  MEDIAN  INCOME  OF
THE COUNTY IN WHICH THE APPLICANT RESIDES; AND
  (C)  WAS  CONVICTED OF A MARIHUANA-RELATED OFFENSE PRIOR TO THE EFFEC-
TIVE DATE OF THIS BILL.
  4. THE BUREAU SHALL ALSO CREATE AN INCUBATOR PROGRAM TO PROVIDE DIRECT
SUPPORT TO  SOCIAL  EQUITY  APPLICANTS  AFTER  THEY  HAVE  BEEN  GRANTED
LICENSES.  THE PROGRAM SHALL PROVIDE DIRECT SUPPORT IN THE FORM OF COUN-
SELING SERVICES, EDUCATION,  SMALL  BUSINESS  COACHING,  AND  COMPLIANCE
ASSISTANCE.
  5.  FOR  THE PURPOSES OF THIS SECTION, THE FOLLOWING DEFINITIONS SHALL
APPLY:
  (A)  "MINORITY-OWNED  BUSINESS"  SHALL  MEAN  A  BUSINESS  ENTERPRISE,
INCLUDING  A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY
OR CORPORATION THAT IS:
  (I) AT LEAST FIFTY-ONE PERCENT OWNED BY ONE  OR  MORE  MINORITY  GROUP
MEMBERS;
  (II)  AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP IS REAL, SUBSTAN-
TIAL AND CONTINUING;
  (III) AN ENTERPRISE IN WHICH SUCH MINORITY OWNERSHIP HAS AND EXERCISES
THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
OF THE ENTERPRISE;
  (IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE  AND  INDE-
PENDENTLY OWNED AND OPERATED;
  (V) AN ENTERPRISE THAT IS A SMALL BUSINESS.
  (B)  "MINORITY  GROUP  MEMBER"  SHALL  MEAN A UNITED STATES CITIZEN OR
PERMANENT RESIDENT ALIEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN ONE OF
THE FOLLOWING GROUPS:
  (I) BLACK PERSONS HAVING ORIGINS IN ANY OF THE  BLACK  AFRICAN  RACIAL
GROUPS;
  (II)  HISPANIC  PERSONS  OF  MEXICAN,  PUERTO RICAN, DOMINICAN, CUBAN,
CENTRAL OR SOUTH AMERICAN OF EITHER INDIAN OR HISPANIC  ORIGIN,  REGARD-
LESS OF RACE;
  (III)  NATIVE AMERICAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY
OF THE ORIGINAL PEOPLES OF NORTH AMERICA;
  (IV) ASIAN AND PACIFIC ISLANDER PERSONS HAVING ORIGINS IN ANY  OF  THE
FAR  EAST  COUNTRIES,  SOUTH  EAST  ASIA, THE INDIAN SUBCONTINENT OR THE
PACIFIC ISLANDS.
  (C) "WOMEN-OWNED BUSINESS" SHALL MEAN A BUSINESS ENTERPRISE, INCLUDING
A SOLE PROPRIETORSHIP, PARTNERSHIP, LIMITED LIABILITY COMPANY OR  CORPO-
RATION THAT IS:
  (I)  AT  LEAST  FIFTY-ONE  PERCENT  OWNED BY ONE OR MORE UNITED STATES
CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE WOMEN;
  (II) AN ENTERPRISE IN WHICH THE OWNERSHIP INTEREST OF  SUCH  WOMEN  IS
REAL, SUBSTANTIAL AND CONTINUING;
  (III)  AN  ENTERPRISE  IN WHICH SUCH WOMEN OWNERSHIP HAS AND EXERCISES
THE AUTHORITY TO CONTROL INDEPENDENTLY THE DAY-TO-DAY BUSINESS DECISIONS
OF THE ENTERPRISE;
  (IV) AN ENTERPRISE AUTHORIZED TO DO BUSINESS IN THIS STATE  AND  INDE-
PENDENTLY OWNED AND OPERATED;

A. 1617                            44

  (V)  AN  ENTERPRISE  THAT  IS A SMALL BUSINESS PURSUANT TO SUBDIVISION
TWENTY OF THIS SECTION.
  (D) A FIRM OWNED BY A MINORITY GROUP MEMBER WHO IS ALSO A WOMAN MAY BE
DEFINED AS A MINORITY-OWNED BUSINESS, A WOMEN-OWNED BUSINESS, OR BOTH.
  6.  THE  BUREAU  SHALL ACTIVELY PROMOTE APPLICANTS THAT FOSTER RACIAL,
ETHNIC, AND GENDER DIVERSITY IN THEIR WORKFORCE.
  7. LICENSES ISSUED TO MINORITY AND WOMEN-OWNED BUSINESSES OR UNDER THE
SOCIAL EQUITY PLAN SHALL NOT BE TRANSFERABLE EXCEPT TO QUALIFIED MINORI-
TY AND WOMEN-OWNED BUSINESSES OR SOCIAL EQUITY APPLICANTS.
  8. THE BUREAU SHALL COLLECT DEMOGRAPHIC DATA ON OWNERS  AND  EMPLOYEES
IN THE MARIHUANA INDUSTRY AND SHALL ANNUALLY PUBLISH SUCH DATA.
  §  191.  DISPOSITION  OF  MONEYS RECEIVED FOR LICENSE FEES. THE BUREAU
SHALL ESTABLISH A SCALE OF APPLICATION,  LICENSING,  AND  RENEWAL  FEES,
BASED  UPON THE COST OF ENFORCING THIS ARTICLE AND THE SIZE OF THE MARI-
HUANA BUSINESS BEING LICENSED, AS FOLLOWS:
  1. EACH LICENSING AUTHORITY SHALL CHARGE EACH LICENSEE A LICENSURE AND
RENEWAL FEE, AS APPLICABLE. THE  LICENSURE  AND  RENEWAL  FEE  SHALL  BE
CALCULATED  TO COVER THE COSTS OF ADMINISTERING THIS ARTICLE. THE LICEN-
SURE FEE MAY VARY DEPENDING  UPON  THE  VARYING  COSTS  ASSOCIATED  WITH
ADMINISTERING  THE  VARIOUS  REGULATORY  REQUIREMENTS OF THIS ARTICLE AS
THEY RELATE TO THE NATURE AND SCOPE OF THE  DIFFERENT  LICENSURE  ACTIV-
ITIES,  BUT  SHALL  NOT  EXCEED  THE  REASONABLE REGULATORY COSTS TO THE
LICENSING AUTHORITY.
  2. THE TOTAL FEES ASSESSED PURSUANT TO THIS ARTICLE SHALL BE SET AT AN
AMOUNT THAT WILL FAIRLY AND PROPORTIONATELY  GENERATE  SUFFICIENT  TOTAL
REVENUE TO FULLY COVER THE TOTAL COSTS OF ADMINISTERING THIS ARTICLE.
  3.  ALL  LICENSE  FEES  SHALL  BE SET ON A SCALED BASIS BY THE BUREAU,
DEPENDENT ON THE SIZE OF THE BUSINESS.
  4. THE BUREAU SHALL DEPOSIT ALL FEES COLLECTED IN THE NEW  YORK  STATE
MARIHUANA REVENUE FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-FF OF
THE STATE FINANCE LAW.
  §  192.  PERSONS  FORBIDDEN  TO TRAFFIC IN MARIHUANA. 1. THE FOLLOWING
PERSONS ARE FORBIDDEN TO TRAFFIC IN MARIHUANA:
  (A) A PERSON UNDER THE AGE OF TWENTY-ONE YEARS.
  (B) A PERSON WHO IS NOT A CITIZEN OF THE UNITED  STATES  OR  AN  ALIEN
LAWFULLY ADMITTED FOR PERMANENT RESIDENCE IN THE UNITED STATES.
  (C) A CO-PARTNERSHIP OR A CORPORATION, UNLESS EACH MEMBER OF THE PART-
NERSHIP,  OR  EACH OF THE PRINCIPAL OFFICERS AND DIRECTORS OF THE CORPO-
RATION, IS A CITIZEN OF THE UNITED STATES OR AN ALIEN LAWFULLY  ADMITTED
FOR  PERMANENT  RESIDENCE IN THE UNITED STATES, NOT LESS THAN TWENTY-ONE
YEARS OF AGE.
  (D) (I) A PERSON WHO SHALL HAVE HAD  ANY  LICENSE  ISSUED  UNDER  THIS
CHAPTER  REVOKED  FOR  CAUSE, UNTIL THE EXPIRATION OF TWO YEARS FROM THE
DATE OF SUCH REVOCATION.
  (II) A PERSON NOT LICENSED UNDER THE PROVISIONS OF THIS  CHAPTER,  WHO
HAS  BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, UNTIL THE EXPIRATION
OF TWO YEARS FROM THE DATE OF SUCH CONVICTION.
  (E) A CORPORATION OR CO-PARTNERSHIP, IF ANY OFFICER  AND  DIRECTOR  OR
ANY  PARTNER,  WHILE  NOT LICENSED UNDER THE PROVISIONS OF THIS CHAPTER,
HAS BEEN CONVICTED OF A VIOLATION OF THIS CHAPTER, OR HAS HAD A  LICENSE
ISSUED UNDER THIS CHAPTER REVOKED FOR CAUSE, UNTIL THE EXPIRATION OF TWO
YEARS FROM THE DATE OF SUCH CONVICTION OR REVOCATION.
  2. AN APPLICANT SHALL NOT BE DENIED A LICENSE UNDER THIS ARTICLE BASED
SOLELY  ON A CONVICTION FOR A VIOLATION OF ARTICLE TWO HUNDRED TWENTY OR
SECTION 240.36 OF THE PENAL LAW, PRIOR TO THE DATE ARTICLE  TWO  HUNDRED
TWENTY-ONE OF THE PENAL LAW TOOK EFFECT, OR A CONVICTION FOR A VIOLATION

A. 1617                            45

OF  ARTICLE  TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AFTER THE EFFECTIVE
DATE OF THIS ARTICLE.
  §  193. SURRENDER OF LICENSE; NOTICE TO POLICE OFFICIALS. WITHIN THREE
DAYS AFTER A LICENSE SHALL HAVE BEEN REVOKED PURSUANT TO  THIS  ARTICLE,
NOTICE  THEREOF  SHALL  BE  GIVEN TO THE LICENSEE BY MAILING SUCH NOTICE
ADDRESSED TO HIM AT THE PREMISES LICENSED. NOTICE SHALL ALSO  BE  MAILED
TO  THE OWNER OF THE PREMISES LICENSED. THE HOLDER OF SUCH LICENSE SHALL
THEREUPON SURRENDER SAME TO THE  BUREAU.  THE  MAILING  THEREOF  BY  THE
LICENSEE  TO  THE BUREAU BY REGISTERED MAIL OR INSURED PARCEL POST SHALL
BE DEEMED SUFFICIENT COMPLIANCE WITH THIS  SECTION.  THE  BUREAU,  IMME-
DIATELY  UPON  GIVING NOTICE OF REVOCATION, SHALL SERVE A WRITTEN NOTICE
THEREOF UPON THE COMMISSIONER OF POLICE, CHIEF OF POLICE OR CHIEF POLICE
OFFICER OF THE CITY OR VILLAGE IN  WHICH  THE  PREMISES  FOR  WHICH  THE
REVOKED LICENSE WAS ISSUED IS SITUATED, OR UPON THE SHERIFF OF THE COUN-
TY  OR  A CONSTABLE OF THE TOWN IN CASE THE LICENSE WAS ISSUED FOR PREM-
ISES SITUATED IN A TOWN AND NOT WITHIN ANY CITY OR VILLAGE.  SUCH NOTICE
SHALL INCLUDE A STATEMENT OF THE NUMBER OF SUCH LICENSE,  THE  NAME  AND
PLACE  OF  RESIDENCE OF THE HOLDER THEREOF, THE LOCATION OF THE LICENSED
PREMISES, AND THE DATE WHEN SUCH  LICENSE  WAS  REVOKED.  IN  CASE  SUCH
LICENSE  BE  NOT FORTHWITH SURRENDERED, THE BUREAU SHALL ISSUE A WRITTEN
DEMAND FOR THE SURRENDER OF SUCH LICENSE AND DELIVER SAID DEMAND TO  THE
SHERIFF  OF THE COUNTY IN WHICH THE LICENSED PREMISES ARE LOCATED, OR TO
ANY REPRESENTATIVE OF THE BUREAU, AND  SAID  SHERIFF  OR  REPRESENTATIVE
SHALL IMMEDIATELY TAKE POSSESSION OF SUCH LICENSE AND RETURN THE SAME TO
THE BUREAU.
  §  194. PROTECTIONS FOR THE USE OF MARIHUANA. INDIVIDUALS AND LICENSED
ENTITIES SHALL NOT BE SUBJECT TO ARREST, PROSECUTION, OR PENALTY IN  ANY
MANNER,  OR  DENIED ANY RIGHT OR PRIVILEGE, INCLUDING BUT NOT LIMITED TO
CIVIL LIABILITY OR DISCIPLINARY ACTION BY A BUSINESS OR OCCUPATIONAL  OR
PROFESSIONAL  LICENSING  BOARD  OR  BUREAU, SOLELY FOR CONDUCT PERMITTED
UNDER THIS ARTICLE. FOR THE AVOIDANCE OF DOUBT, THE  APPELLATE  DIVISION
OF  THE  SUPREME COURT OF THE STATE OF NEW YORK, AND ANY DISCIPLINARY OR
CHARACTER AND FITNESS COMMITTEES ESTABLISHED BY  THEM  ARE  OCCUPATIONAL
AND  PROFESSIONAL  LICENSING  BOARDS WITHIN THE MEANING OF THIS SECTION.
STATE OR LOCAL LAW ENFORCEMENT AGENCIES  SHALL  NOT  COOPERATE  WITH  OR
PROVIDE  ASSISTANCE TO THE GOVERNMENT OF THE UNITED STATES OR ANY AGENCY
THEREOF IN ENFORCING THE FEDERAL CONTROLLED SUBSTANCES ACT,  21,  U.S.C.
ET  SEQ.,  SOLELY  FOR  ACTIONS  CONSISTENT WITH THIS CHAPTER, EXCEPT AS
PURSUANT TO A VALID COURT ORDER.
  § 195. DISCRIMINATION PROTECTIONS FOR THE USE OF MARIHUANA OR  MEDICAL
MARIHUANA. 1. NO SCHOOL OR LANDLORD MAY REFUSE TO ENROLL OR LEASE TO AND
MAY  NOT  OTHERWISE  PENALIZE  A PERSON SOLELY FOR CONDUCT ALLOWED UNDER
SECTIONS 221.05 AND 221.05-A OF THE PENAL LAW OR TITLE FIVE-A OF ARTICLE
THIRTY-THREE OF THE PUBLIC HEALTH LAW, EXCEPT AS EXEMPTED:
  (A) IF FAILING TO DO SO WOULD CAUSE THE SCHOOL OR LANDLORD TO  LOSE  A
MONETARY OR LICENSING RELATED BENEFIT UNDER FEDERAL LAW OR REGULATIONS;
  (B) IF THE INSTITUTION HAS ADOPTED A CODE OF CONDUCT PROHIBITING MARI-
HUANA USE ON THE BASIS OF RELIGIOUS BELIEF;
  (C)  IF  A PROPERTY IS REGISTERED WITH THE NEW YORK SMOKE-FREE HOUSING
REGISTRY, IT IS NOT REQUIRED TO PERMIT THE SMOKING OF MARIHUANA PRODUCTS
ON ITS PREMISES.
  2. FOR THE PURPOSES OF MEDICAL CARE, INCLUDING  ORGAN  TRANSPLANTS,  A
REGISTERED QUALIFYING PATIENT'S AUTHORIZED USE OF MEDICAL MARIHUANA MUST
BE  CONSIDERED  THE  EQUIVALENT OF THE USE OF ANY OTHER MEDICATION UNDER
THE DIRECTION OF A PRACTITIONER AND DOES NOT CONSTITUTE THE  USE  OF  AN

A. 1617                            46

ILLICIT  SUBSTANCE  OR  OTHERWISE  DISQUALIFY  A  REGISTERED  QUALIFYING
PATIENT FROM MEDICAL CARE.
  3.  NO PERSON MAY BE DENIED CUSTODY OF OR VISITATION OR PARENTING TIME
WITH A MINOR, AND THERE IS NO PRESUMPTION OF NEGLECT OR CHILD  ENDANGER-
MENT FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
LAW,  UNLESS THE PERSON'S BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE
SAFETY OF THE MINOR AS ESTABLISHED BY CLEAR AND CONVINCING EVIDENCE. FOR
THE PURPOSES OF THIS SECTION,  AN  "UNREASONABLE  DANGER"  DETERMINATION
CANNOT  BE  BASED  SOLELY  ON WHETHER, WHEN, AND HOW OFTEN A PERSON USES
MARIHUANA WITHOUT SEPARATE EVIDENCE OF HARM.
  § 196. EMPLOYMENT PROTECTIONS. 1.  UNLESS AN EMPLOYER ESTABLISHES BY A
PREPONDERANCE OF THE EVIDENCE THAT  THE  LAWFUL  USE  OF  MARIHUANA  HAS
IMPAIRED  THE EMPLOYEE'S ABILITY TO PERFORM THE EMPLOYEE'S JOB RESPONSI-
BILITIES, IT SHALL BE UNLAWFUL TO TAKE  ANY  ADVERSE  EMPLOYMENT  ACTION
AGAINST AN EMPLOYEE BASED ON EITHER:
  (A)  CONDUCT  ALLOWED  UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
LAW; OR
  (B) THE EMPLOYEE'S POSITIVE DRUG  TEST  FOR  MARIHUANA  COMPONENTS  OR
METABOLITES.
  2.  FOR  THE  PURPOSES  OF  THIS  SECTION, AN EMPLOYER MAY CONSIDER AN
EMPLOYEE'S ABILITY TO PERFORM THE EMPLOYEE'S JOB RESPONSIBILITIES TO  BE
IMPAIRED WHEN THE EMPLOYEE MANIFESTS SPECIFIC ARTICULABLE SYMPTOMS WHILE
WORKING THAT DECREASE OR LESSEN THE EMPLOYEE'S PERFORMANCE OF THE DUTIES
OR TASKS OF THE EMPLOYEE'S JOB POSITION.
  3.  NOTHING  IN  THIS  SECTION SHALL RESTRICT AN EMPLOYER'S ABILITY TO
PROHIBIT OR TAKE ADVERSE EMPLOYMENT ACTION FOR THE POSSESSION OR USE  OF
INTOXICATING  SUBSTANCES  DURING  WORK  HOURS, OR REQUIRE AN EMPLOYER TO
COMMIT ANY ACT THAT WOULD CAUSE THE  EMPLOYER  TO  BE  IN  VIOLATION  OF
FEDERAL  LAW,  OR THAT WOULD RESULT IN THE LOSS OF A FEDERAL CONTRACT OR
FEDERAL FUNDING.
  4. AS USED IN THIS SECTION, "ADVERSE EMPLOYMENT ACTION" MEANS REFUSING
TO HIRE OR EMPLOY, BARRING OR DISCHARGING FROM EMPLOYMENT,  REQUIRING  A
PERSON  TO  RETIRE FROM EMPLOYMENT, OR DISCRIMINATING AGAINST IN COMPEN-
SATION OR IN TERMS, CONDITIONS, OR PRIVILEGES OF EMPLOYMENT.
  § 197. PROTECTIONS FOR  PERSONS  UNDER  STATE  SUPERVISION.  A  PERSON
CURRENTLY  UNDER  PAROLE,  PROBATION  OR  OTHER  STATE  SUPERVISION,  OR
RELEASED ON BAIL AWAITING TRIAL MAY NOT BE PUNISHED OR OTHERWISE  PENAL-
IZED FOR CONDUCT ALLOWED UNDER SECTIONS 221.05 AND 221.05-A OF THE PENAL
LAW.
  §  198.  PROFESSIONAL  AND  MEDICAL  RECORD  KEEPING. ANY PROFESSIONAL
PROVIDING SERVICES IN CONNECTION WITH A LICENSED OR POTENTIALLY LICENSED
BUSINESS UNDER THIS CHAPTER, OR IN CONNECTION WITH OTHER CONDUCT PERMIT-
TED UNDER THIS CHAPTER, AND ANY MEDICAL PROFESSIONAL  PROVIDING  MEDICAL
CARE TO A PATIENT, MAY AGREE WITH THEIR CLIENT OR PATIENT TO MAINTAIN NO
RECORD,  OR  ANY  REDUCED  LEVEL OF RECORD KEEPING THAT PROFESSIONAL AND
CLIENT OR PATIENT MAY AGREE. IN CASE  OF  SUCH  AGREEMENT,  THE  PROFES-
SIONAL'S ONLY OBLIGATION SHALL BE TO KEEP SUCH RECORDS AS AGREED, AND TO
KEEP  A RECORD OF THE AGREEMENT.  SUCH REDUCED RECORD KEEPING IS CONDUCT
PERMITTED UNDER THIS CHAPTER,  AND  SHALL  ATTRACT  THE  PROTECTIONS  OF
SECTION ONE HUNDRED NINETY-FOUR OF THIS ARTICLE.
  §  32.  The  state finance law is amended by adding three new sections
99-ff, 99-gg and 99-hh to read as follows:
  § 99-FF. NEW YORK STATE MARIHUANA REVENUE FUND.  1.  THERE  IS  HEREBY
ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
"NEW YORK STATE MARIHUANA REVENUE FUND".

A. 1617                            47

  2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
OF TAXATION AND FINANCE, PURSUANT TO THE  PROVISIONS  OF  ARTICLE  EIGH-
TEEN-A OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED THERETO FROM ANY
OTHER FUND OR SOURCE PURSUANT TO LAW.  NOTHING CONTAINED IN THIS SECTION
SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE FUND ACCORDING TO LAW.
  3.  THE  MONEYS  IN  SUCH  FUND  SHALL  BE  EXPENDED FOR THE FOLLOWING
PURPOSES:
  (A) REASONABLE COSTS  INCURRED  BY  THE  DEPARTMENT  OF  TAXATION  AND
FINANCE FOR ADMINISTERING AND COLLECTING THE TAXES IMPOSED BY THIS PART;
PROVIDED,  HOWEVER,  SUCH  COSTS  SHALL  NOT  EXCEED FOUR PERCENT OF TAX
REVENUES RECEIVED.
  (B) REASONABLE COSTS INCURRED BY THE BUREAU OF  MARIHUANA  POLICY  FOR
IMPLEMENTING,  ADMINISTERING, AND ENFORCING THE MARIHUANA REGULATION AND
TAXATION ACT TO THE EXTENT THOSE COSTS ARE NOT  REIMBURSED  PURSUANT  TO
SECTIONS ONE HUNDRED EIGHTY-NINE AND ONE HUNDRED NINETY OF ARTICLE ELEV-
EN  OF  THE  ALCOHOLIC BEVERAGE CONTROL LAW. THIS PARAGRAPH SHALL REMAIN
OPERATIVE THROUGH THE TWO THOUSAND TWENTY-FOUR -- TWO  THOUSAND  TWENTY-
FIVE FISCAL YEAR.
  (C)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE -- TWO THOUSAND TWEN-
TY-TWO FISCAL YEAR AND CONTINUING THROUGH THE TWO THOUSAND  TWENTY-THREE
--  TWO  THOUSAND  TWENTY-FOUR FISCAL YEAR, THE COMMISSIONER OF TAXATION
AND FINANCE SHALL ANNUALLY DISBURSE ONE MILLION DOLLARS TO THE MARIHUANA
MICROBUSINESS AND MARIHUANA  LICENSE  REVOLVING  LOAN  FUND  ESTABLISHED
PURSUANT TO SECTION NINETY-NINE-II OF THE STATE FINANCE LAW.
  (D)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE -- TWO THOUSAND TWEN-
TY-TWO FISCAL YEAR AND CONTINUING THROUGH THE TWO THOUSAND THIRTY -- TWO
THOUSAND THIRTY-ONE  FISCAL  YEAR,  THE  COMMISSIONER  OF  TAXATION  AND
FINANCE  SHALL  ANNUALLY DISBURSE THE FOLLOWING SUMS FOR THE PURPOSES OF
DATA COLLECTION AND REPORTING:
  (1) SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE  BUREAU  OF  MARIHUANA
POLICY  TO  TRACK  AND REPORT DATA RELATED TO THE LICENSING OF MARIHUANA
BUSINESSES, INCLUDING THE GEOGRAPHIC LOCATION, STRUCTURE,  AND  FUNCTION
OF  LICENSED MARIHUANA BUSINESSES, AND DEMOGRAPHIC DATA, INCLUDING RACE,
ETHNICITY, AND GENDER, OF LICENSE HOLDERS. THE BUREAU OF MARIHUANA POLI-
CY SHALL PUBLISH REPORTS ON ITS FINDINGS ANNUALLY  AND  SHALL  MAKE  THE
REPORTS AVAILABLE TO THE PUBLIC.
  (2) SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE DEPARTMENT OF CRIMINAL
JUSTICE  SERVICES  TO  TRACK AND REPORT DATA RELATED TO ANY INFRACTIONS,
VIOLATIONS, OR CRIMINAL CONVICTIONS THAT OCCUR UNDER ANY OF THE  REMAIN-
ING  MARIHUANA  STATUTES.    THE DEPARTMENT OF CRIMINAL JUSTICE SERVICES
SHALL PUBLISH REPORTS ON  ITS  FINDINGS  ANNUALLY  AND  SHALL  MAKE  THE
REPORTS AVAILABLE TO THE PUBLIC.
  (3)  ONE  MILLION  DOLLARS  TO  THE  STATE  UNIVERSITY  OF NEW YORK TO
RESEARCH AND EVALUATE THE IMPLEMENTATION AND  EFFECT  OF  THE  MARIHUANA
REGULATION  AND TAXATION ACT.  NO MORE THAN FOUR PERCENT OF THESE MONIES
MAY BE USED FOR EXPENSES RELATED TO ADMINISTRATIVE COSTS  OF  CONDUCTING
SUCH  RESEARCH,  AND  TO,  IF  APPROPRIATE,  MAKE RECOMMENDATIONS TO THE
LEGISLATURE AND GOVERNOR REGARDING POSSIBLE AMENDMENTS TO THE  MARIHUANA
REGULATION AND TAXATION ACT. THE RECIPIENTS OF THESE FUNDS SHALL PUBLISH
REPORTS ON THEIR FINDINGS AT A MINIMUM OF EVERY TWO YEARS AND SHALL MAKE
THE  REPORTS  AVAILABLE  TO  THE PUBLIC. THE RESEARCH FUNDED PURSUANT TO
THIS SUBDIVISION SHALL INCLUDE BUT NOT NECESSARILY BE LIMITED TO:

A. 1617                            48

  (A) THE IMPACTS ON PUBLIC HEALTH, INCLUDING  HEALTH  COSTS  ASSOCIATED
WITH  MARIHUANA USE, AS WELL AS WHETHER MARIHUANA USE IS ASSOCIATED WITH
AN INCREASE OR DECREASE IN USE OF ALCOHOL OR OTHER DRUGS;
  (B)  THE  IMPACT OF TREATMENT FOR CANNABIS USE DISORDER AND THE EFFEC-
TIVENESS OF DIFFERENT TREATMENT PROGRAMS;
  (C) PUBLIC SAFETY ISSUES RELATED TO MARIHUANA USE, INCLUDING  STUDYING
THE  EFFECTIVENESS OF THE PACKAGING AND LABELING REQUIREMENTS AND ADVER-
TISING AND MARKETING RESTRICTIONS CONTAINED IN  THE  ACT  AT  PREVENTING
UNDERAGE  ACCESS  TO  AND  USE  OF MARIHUANA AND MARIHUANA PRODUCTS, AND
STUDYING THE HEALTH-RELATED  EFFECTS  AMONG  USERS  OF  VARYING  POTENCY
LEVELS OF MARIHUANA AND MARIHUANA PRODUCTS;
  (D)  MARIHUANA  USE RATES, MALADAPTIVE USE RATES FOR ADULTS AND YOUTH,
AND DIAGNOSIS RATES OF MARIHUANA-RELATED SUBSTANCE USE DISORDERS;
  (E) MARIHUANA MARKET PRICES, ILLICIT MARKET PRICES, TAX STRUCTURES AND
RATES, INCLUDING AN EVALUATION OF HOW TO BEST  TAX  MARIHUANA  BASED  ON
POTENCY,  AND  THE  STRUCTURE  AND  FUNCTION OF LICENSED MARIHUANA BUSI-
NESSES;
  (F) WHETHER ADDITIONAL PROTECTIONS  ARE  NEEDED  TO  PREVENT  UNLAWFUL
MONOPOLIES OR ANTI-COMPETITIVE BEHAVIOR FROM OCCURRING IN THE NONMEDICAL
MARIHUANA  INDUSTRY AND, IF SO, RECOMMENDATIONS AS TO THE MOST EFFECTIVE
MEASURES FOR PREVENTING SUCH BEHAVIOR;
  (G) THE ECONOMIC IMPACTS IN THE PRIVATE AND PUBLIC SECTORS,  INCLUDING
BUT  NOT  NECESSARILY LIMITED TO, JOB CREATION, WORKPLACE SAFETY, REVEN-
UES, TAXES GENERATED FOR STATE AND LOCAL BUDGETS, AND  CRIMINAL  JUSTICE
IMPACTS,  INCLUDING,  BUT  NOT  NECESSARILY  LIMITED  TO, IMPACTS ON LAW
ENFORCEMENT AND PUBLIC RESOURCES, SHORT AND LONG  TERM  CONSEQUENCES  OF
INVOLVEMENT  IN THE CRIMINAL JUSTICE SYSTEM, AND STATE AND LOCAL GOVERN-
MENT AGENCY ADMINISTRATIVE COSTS AND REVENUE;
  (H) WHETHER THE  REGULATORY  AGENCIES  TASKED  WITH  IMPLEMENTING  AND
ENFORCING  THE  MARIHUANA  REGULATION  AND  TAXATION  ACT  ARE  DOING SO
CONSISTENT WITH THE PURPOSES OF THE ACT, AND WHETHER DIFFERENT  AGENCIES
MIGHT DO SO MORE EFFECTIVELY; AND
  (I)  ANY  ENVIRONMENTAL ISSUES RELATED TO MARIHUANA PRODUCTION AND THE
CRIMINAL PROHIBITION OF MARIHUANA PRODUCTION.
  4. AFTER THE DISPERSAL OF MONEYS PURSUANT TO SUBDIVISION THREE OF THIS
SECTION, THE REMAINING MONEYS IN THE FUND  DEPOSITED  DURING  THE  PRIOR
FISCAL YEAR SHALL BE DISBURSED INTO THE STATE LOTTERY FUND AND TWO ADDI-
TIONAL  SUB-FUNDS CREATED WITHIN THE MARIHUANA REVENUE FUND KNOWN AS THE
DRUG TREATMENT AND PUBLIC EDUCATION FUND AND THE COMMUNITY GRANTS  REIN-
VESTMENT FUND, AS FOLLOWS:
  (A)  TWENTY-FIVE  PERCENT SHALL BE DEPOSITED IN THE STATE LOTTERY FUND
ESTABLISHED BY SECTION NINETY-TWO-C OF THIS ARTICLE; PROVIDED THAT  SUCH
MONEYS SHALL BE DISTRIBUTED TO THE DEPARTMENT OF EDUCATION IN ACCORDANCE
WITH  SUBDIVISIONS  TWO AND FOUR OF SECTION NINETY-TWO-C OF THIS ARTICLE
AND SHALL NOT BE UTILIZED FOR THE PURPOSES OF SUBDIVISION THREE OF  SUCH
SECTION.  MONIES  ALLOCATED  BY  THIS ARTICLE MAY ENHANCE, BUT SHALL NOT
SUPPLANT, EXISTING DEDICATED FUNDS TO THE DEPARTMENT OF EDUCATION;
  (B) TWENTY-FIVE PERCENT SHALL BE DEPOSITED IN THE DRUG  TREATMENT  AND
PUBLIC  EDUCATION  FUND  ESTABLISHED  BY  SECTION NINETY-NINE-GG OF THIS
ARTICLE; AND
  (C) FIFTY PERCENT SHALL BE DEPOSITED IN THE COMMUNITY GRANTS REINVEST-
MENT FUND ESTABLISHED BY SECTION NINETY-NINE-HH OF THIS ARTICLE.
  5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
OF  TAXATION AND FINANCE SHALL PROVIDE A WRITTEN REPORT TO THE TEMPORARY
PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR  OF  THE  SENATE
FINANCE  COMMITTEE,  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE

A. 1617                            49

STATE COMPTROLLER AND THE PUBLIC.  SUCH  REPORT  SHALL  DETAIL  HOW  THE
MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND
SHALL INCLUDE:
  (I)  THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD PROCESS
USED FOR SUCH DISBURSEMENTS;
  (II) RECIPIENTS OF AWARDS FROM THE FUND;
  (III) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (IV) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (V) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
YEAR.
  6. MONEYS SHALL BE PAYABLE DIRECTLY FROM THE MARIHUANA REVENUE FUND TO
THE DEPARTMENT.
  §  99-GG.  NEW  YORK  STATE  DRUG  TREATMENT PUBLIC EDUCATION FUND. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  STATE  COMP-
TROLLER  AND  THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO
BE KNOWN AS THE "NEW YORK STATE DRUG TREATMENT PUBLIC EDUCATION FUND".
  2. SUCH FUND SHALL  CONSIST  OF  REVENUES  RECEIVED  PURSUANT  TO  THE
PROVISIONS  OF  SECTION  NINETY-NINE-FF  OF  THIS  ARTICLE AND ALL OTHER
MONEYS APPROPRIATED THERETO FROM ANY OTHER FUND OR  SOURCE  PURSUANT  TO
LAW.  NOTHING  CONTAINED  IN  THIS  SECTION SHALL PREVENT THE STATE FROM
RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE  PURPOSES  OF  THE  FUND  AS
DEFINED  IN  THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO
LAW.
  3. THE MONEYS IN SUCH FUND SHALL BE EXPENDED TO  THE  COMMISSIONER  OF
THE  OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE AND DISBURSED IN CONSULTA-
TION WITH THE COMMISSIONER OF HEALTH FOR THE FOLLOWING PURPOSES:
  (A) TO DEVELOP AND IMPLEMENT A YOUTH-FOCUSED PUBLIC  HEALTH  EDUCATION
AND PREVENTION CAMPAIGN, INCLUDING SCHOOL-BASED PREVENTION, EARLY INTER-
VENTION,  AND  HEALTH  CARE  SERVICES AND PROGRAMS TO REDUCE THE RISK OF
MARIHUANA AND OTHER SUBSTANCE USE BY SCHOOL-AGED CHILDREN;
  (B) TO DEVELOP  AND  IMPLEMENT  A  STATEWIDE  PUBLIC  HEALTH  CAMPAIGN
FOCUSED  ON  THE HEALTH EFFECTS OF MARIHUANA AND LEGAL USE, INCLUDING AN
ONGOING EDUCATION AND PREVENTION  CAMPAIGN  THAT  EDUCATES  THE  GENERAL
PUBLIC,  INCLUDING PARENTS, CONSUMERS AND RETAILERS, ON THE LEGAL USE OF
MARIHUANA, THE IMPORTANCE OF PREVENTING YOUTH ACCESS, THE IMPORTANCE  OF
SAFE  STORAGE AND PREVENTING SECONDHAND MARIHUANA SMOKE EXPOSURE, INFOR-
MATION FOR PREGNANT OR BREASTFEEDING WOMEN, AND THE  OVERCONSUMPTION  OF
EDIBLES;
  (C) TO PROVIDE SUBSTANCE USE DISORDER TREATMENT PROGRAMS FOR YOUTH AND
ADULTS,  WITH  AN  EMPHASIS  ON  PROGRAMS THAT ARE CULTURALLY AND GENDER
COMPETENT, TRAUMA-INFORMED, EVIDENCE-BASED AND PROVIDE  A  CONTINUUM  OF
CARE  THAT  INCLUDES SCREENING AND ASSESSMENT (SUBSTANCE USE DISORDER AS
WELL AS MENTAL HEALTH), EARLY  INTERVENTION,  ACTIVE  TREATMENT,  FAMILY
INVOLVEMENT,  CASE MANAGEMENT, OVERDOSE PREVENTION, PREVENTION OF COMMU-
NICABLE DISEASES  RELATED  TO  SUBSTANCE  USE,  RELAPSE  MANAGEMENT  FOR
SUBSTANCE  USE AND OTHER CO-OCCURRING BEHAVIORAL HEALTH DISORDERS, VOCA-
TIONAL SERVICES, LITERACY SERVICES, PARENTING  CLASSES,  FAMILY  THERAPY
AND  COUNSELING  SERVICES,  MEDICATION-ASSISTED  TREATMENTS, PSYCHIATRIC
MEDICATION AND PSYCHOTHERAPY; AND
  (D) TO EVALUATE THE PROGRAMS BEING FUNDED TO  DETERMINE  THEIR  EFFEC-
TIVENESS.
  4.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL PROVIDE A
WRITTEN REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE

A. 1617                            50

ASSEMBLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY
WAYS AND MEANS COMMITTEE, CHAIR OF THE SENATE  COMMITTEE  ON  ALCOHOLISM
AND  DRUG ABUSE, CHAIR OF THE ASSEMBLY ALCOHOLISM AND DRUG ABUSE COMMIT-
TEE,  THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL DETAIL HOW
THE MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR,
AND SHALL INCLUDE:
  (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
USED FOR SUCH DISBURSEMENTS;
  (B) RECIPIENTS OF AWARDS FROM THE FUND;
  (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
YEAR.
  5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
  § 99-HH. NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND.  1.  THERE
IS  HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND
THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE  KNOWN  AS
THE "NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND".
  2.  SUCH  FUND  SHALL CONSIST OF ALL REVENUES RECEIVED PURSUANT TO THE
PROVISIONS OF SECTION NINETY-NINE-FF  OF  THIS  ARTICLE  AND  ALL  OTHER
MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND  ACCORDING  TO
LAW.
  3.  THE FUND SHALL BE GOVERNED AND ADMINISTERED BY AN EXECUTIVE STEER-
ING COMMITTEE OF THIRTEEN MEMBERS ESTABLISHED BY THE OFFICE OF  CHILDREN
AND  FAMILY  SERVICES  AND INCLUDING ADDITIONAL REPRESENTATIVES FROM THE
LABOR DEPARTMENT, AND THE HEALTH DEPARTMENT APPOINTED  BY  THE  GOVERNOR
AND  A REPRESENTATIVE OF THE EDUCATION DEPARTMENT APPOINTED BY THE BOARD
OF REGENTS. IN ADDITION, THE MAJORITY AND MINORITY LEADERS OF THE SENATE
AND ASSEMBLY SHALL EACH APPOINT ONE MEMBER TO  THE  STEERING  COMMITTEE,
THE COMPTROLLER SHALL APPOINT THREE ADDITIONAL MEMBERS, AND THE ATTORNEY
GENERAL SHALL APPOINT TWO ADDITIONAL MEMBERS FROM RELEVANT LOCAL GOVERN-
MENT  ENTITIES AND COMMUNITY-BASED ORGANIZATIONS. EVERY EFFORT SHOULD BE
MADE TO ENSURE A BALANCED AND DIVERSE COMMITTEE, WHICH SHALL HAVE EXPER-
TISE IN JOB PLACEMENT, HOMELESSNESS AND HOUSING, BEHAVIORAL  HEALTH  AND
SUBSTANCE USE DISORDER TREATMENT, AND EFFECTIVE REHABILITATIVE TREATMENT
FOR ADULTS AND JUVENILES, AND SHALL INCLUDE REPRESENTATIVES OF ORGANIZA-
TIONS  SERVING COMMUNITIES IMPACTED BY PAST FEDERAL AND STATE DRUG POLI-
CIES.
  4. THE MONEYS IN SUCH FUND SHALL BE EXPENDED BY THE EXECUTIVE STEERING
COMMITTEE TO QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZATIONS  FOR  THE
PURPOSE  OF  REINVESTING  IN  COMMUNITIES DISPROPORTIONATELY AFFECTED BY
PAST FEDERAL AND STATE DRUG POLICIES. THE GRANTS FROM THIS PROGRAM SHALL
BE USED TO SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT  EDUCATION,
MENTAL  HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT, SYSTEM NAVI-
GATION SERVICES, LEGAL SERVICES TO  ADDRESS  BARRIERS  TO  REENTRY,  AND
LINKAGES  TO  MEDICAL CARE, WOMEN'S HEALTH SERVICES AND OTHER COMMUNITY-
BASED SUPPORTIVE SERVICES.
  5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
OF  THE  OFFICE  OF CHILDREN AND FAMILY SERVICES SHALL PROVIDE A WRITTEN

A. 1617                            51

REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE  ASSEM-
BLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON CHILDREN AND FAMI-
LIES,  CHAIR  OF  THE ASSEMBLY CHILDREN AND FAMILIES COMMITTEE, CHAIR OF
THE SENATE COMMITTEE ON LABOR, CHAIR OF THE  ASSEMBLY  LABOR  COMMITTEE,
CHAIR  OF  THE  SENATE COMMITTEE ON HEALTH, CHAIR OF THE ASSEMBLY HEALTH
COMMITTEE, CHAIR OF THE SENATE COMMITTEE  ON  EDUCATION,  CHAIR  OF  THE
ASSEMBLY EDUCATION COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH
REPORT  SHALL DETAIL HOW THE MONIES OF THE FUND WERE UTILIZED DURING THE
PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:
  (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
USED FOR SUCH DISBURSEMENTS;
  (B) RECIPIENTS OF AWARDS FROM THE FUND;
  (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
YEAR.
  6. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
  § 33. The tax law is amended by adding a new article 18-A to  read  as
follows:
                              ARTICLE 18-A
                    PROVISIONS RELATING TO MARIHUANA
SECTION 446.   DEFINITIONS.
        447.   TAXES IMPOSED.
        447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN.
        447-B. ORDINARY  AND  NECESSARY  EXPENSES  DEDUCTIBLE  FROM  NET
                 INCOME.
        448.   SURETY BOND.
        449.   COLLECTION OF TAX.
  § 446. DEFINITIONS. AS USED IN THIS ARTICLE:
  1.  "COMMERCIAL MARKET ACTIVITY" INCLUDES THE CULTIVATION, POSSESSION,
MANUFACTURE,  DISTRIBUTION,  PROCESSING,  STORING,  LABORATORY  TESTING,
LABELING,  TRANSPORTATION,  DELIVERY  OR SALE OF MARIHUANA AND MARIHUANA
PRODUCTS, AS PROVIDED FOR IN ARTICLE ELEVEN OF  THE  ALCOHOLIC  BEVERAGE
CONTROL LAW, BUT SHALL NOT INCLUDE MEDICAL MARIHUANA ACTIVITIES PROVIDED
FOR IN TITLE FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC HEALTH LAW.
  2.    "CONCENTRATED  CANNABIS"  MEANS (A) THE SEPARATED RESIN, WHETHER
CRUDE OR PURIFIED, OBTAINED FROM A PLANT OF THE GENUS CANNABIS; OR (B) A
MATERIAL,  PREPARATION,  MIXTURE,  COMPOUND  OR  OTHER  SUBSTANCE  WHICH
CONTAINS MORE THAN THREE PERCENT BY WEIGHT OF DELTA-9 TETRAHYDROCANNABI-
NOL,  OR  ITS  ISOMER, DELTA-8 DIBENZOPYRAN NUMBERING SYSTEM, OR DELTA-1
TETRAHYDROCANNABINOL OR ITS ISOMER, DELTA 1  (6)  MONOTERPENE  NUMBERING
SYSTEM.
  3.  "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

A. 1617                            52

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).
  4.  "MARIHUANA  CONSUMER"  MEANS  A  PERSON TWENTY-ONE YEARS OF AGE OR
OLDER WHO PURCHASED MARIHUANA OR MARIHUANA PRODUCTS FOR PERSONAL USE  BY
PERSONS TWENTY-ONE YEARS OF AGE OR OLDER, BUT NOT FOR RESALE TO OTHERS.
  5.  "MARIHUANA  FLOWERS" SHALL MEAN THE DRIED FLOWERS OF THE MARIHUANA
PLANT.
  6. "MARIHUANA LEAVES" SHALL MEAN ALL  PARTS  OF  THE  MARIHUANA  PLANT
OTHER THAN MARIHUANA FLOWERS THAT ARE SOLD OR CONSUMED.
  7.  "MARIHUANA  PROCESSOR"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
MARIHUANA POLICY 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 MARIHUANA-INFUSED PRODUCTS FOR SALE IN RETAIL OUTLETS, AND
SELL MARIHUANA, CONCENTRATED CANNABIS AND MARIHUANA INFUSED PRODUCTS  AT
WHOLESALE TO MARIHUANA RETAILERS.
  8. "MARIHUANA PRODUCER" MEANS A PERSON LICENSED BY THE BUREAU OF MARI-
HUANA  POLICY  TO  PRODUCE, PROCESS, AND SELL MARIHUANA AND CONCENTRATED
CANNABIS AT WHOLESALE TO MARIHUANA PROCESSORS, MARIHUANA  RETAILERS,  OR
OTHER MARIHUANA PRODUCERS, BUT NOT TO CONSUMERS.
  9.  "MARIHUANA  PRODUCTS"  MEANS MARIHUANA, CONCENTRATED CANNABIS, AND
MARIHUANA-INFUSED PRODUCTS.
  10. "MARIHUANA-INFUSED PRODUCTS" MEANS PRODUCTS THAT CONTAIN MARIHUANA
OR CONCENTRATED CANNABIS AND ARE INTENDED FOR HUMAN USE OR  CONSUMPTION,
SUCH AS, BUT NOT LIMITED TO, EDIBLE PRODUCTS, OINTMENTS, AND TINCTURES.
  11. "IMMATURE MARIHUANA PLANT" MEANS A MARIHUANA PLANT WITH NO OBSERV-
ABLE FLOWERS OR BUDS.
  12.  "MARIHUANA  RETAILER"  MEANS  A  PERSON LICENSED BY THE BUREAU OF
MARIHUANA POLICY TO PURCHASE MARIHUANA, CONCENTRATED CANNABIS, AND MARI-
HUANA-INFUSED PRODUCTS FROM MARIHUANA PRODUCERS AND MARIHUANA PROCESSORS
AND SELL MARIHUANA, MARIHUANA-INFUSED PRODUCTS, AND CONCENTRATED  CANNA-
BIS IN A RETAIL OUTLET.
  13.  "MARIHUANA  RETAILER  FOR ON-PREMISES CONSUMPTION" MEANS A PERSON
LICENSED BY THE  BUREAU  OF  MARIHUANA  POLICY  TO  PURCHASE  MARIHUANA,
CONCENTRATED  CANNABIS,  AND  MARIHUANA  INFUSED PRODUCTS FROM MARIHUANA
PRODUCERS, MARIHUANA RETAILERS AND MARIHUANA PROCESSORS AND  SELL  MARI-
HUANA  PRODUCTS  FOR  A CUSTOMER TO CONSUME WHILE THE CUSTOMER IS WITHIN
THE FACILITY.
  § 447. TAXES IMPOSED.  1. (A) THERE IS HEREBY  LEVIED  AND  IMPOSED  A
CULTIVATION  TAX UPON ALL HARVESTED MARIHUANA THAT ENTERS THE COMMERCIAL
MARKET UPON ALL PERSONS REQUIRED TO BE LICENSED TO  CULTIVATE  MARIHUANA
PURSUANT  TO  ARTICLE  ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW. THE
TAX SHALL BE DUE AFTER THE MARIHUANA IS HARVESTED.
  (I) MARIHUANA FLOWERS SHALL BE TAXED AT A RATE OF SIXTY-TWO CENTS  PER
DRY-WEIGHT GRAM.
  (II)  MARIHUANA  LEAVES SHALL BE TAXED AT A RATE OF TEN CENTS PER DRY-
WEIGHT GRAM.
  (B) THERE IS HEREBY LEVIED AND IMPOSED A NURSERY TAX UPON ALL IMMATURE
PLANTS THAT ENTER THE COMMERCIAL MARKET UPON ALL PERSONS REQUIRED TO  BE
LICENSED  TO  PRODUCE  IMMATURE PLANTS PURSUANT TO ARTICLE ELEVEN OF THE
ALCOHOLIC BEVERAGE CONTROL LAW. IMMATURE PLANTS SHALL BE TAXED AT A RATE
OF ONE DOLLAR AND THIRTY-FIVE CENTS EACH.
  (C) THERE IS HEREBY LEVIED AND IMPOSED A TAX UPON  MARIHUANA  SOLD  OR
OTHERWISE  TRANSFERRED  BY A MARIHUANA PRODUCER TO A MARIHUANA PROCESSOR

A. 1617                            53

OR MARIHUANA RETAILER AT A RATE EQUIVALENT TO THE RATE ESTABLISHED UNDER
ARTICLE TWENTY-EIGHT OF THIS CHAPTER.
  (D) A MARIHUANA EXCISE TAX IS HEREBY LEVIED AND IMPOSED UPON CUSTOMERS
OF  NONMEDICAL  MARIHUANA  OR NONMEDICAL MARIHUANA PRODUCTS SOLD IN THIS
STATE AT THE RATE FIFTEEN PERCENT OF ANY SALE BY A RETAILER,  MICROBUSI-
NESS, OR OTHER PERSON REQUIRED TO BE LICENSED PURSUANT TO ARTICLE ELEVEN
OF  THE  ALCOHOLIC  BEVERAGE CONTROL LAW TO SELL MARIHUANA AND MARIHUANA
PRODUCTS DIRECTLY TO A CUSTOMER.
  (E) THE DEPARTMENT SHALL ESTABLISH PROCEDURES FOR  THE  COLLECTION  OF
ALL TAXES LEVIED.
  (F)  NO  TAX  ESTABLISHED BY THIS SECTION SHALL BE LEVIED UPON MEDICAL
MARIHUANA INTENDED FOR SALE TO A CERTIFIED PATIENT OR  DESIGNATED  CARE-
GIVER  PURSUANT  TO  TITLE  FIVE-A OF ARTICLE THIRTY-THREE OF THE PUBLIC
HEALTH LAW.
  2. FOR REPORTING PERIODS BEGINNING LATER THAN ONE YEAR  FOLLOWING  THE
EFFECTIVE  DATE  OF THIS ARTICLE, THE RATES OF TAX UNDER SUBDIVISION ONE
OF THIS SECTION SHALL BE ADJUSTED FOR EACH  BIENNIUM  ACCORDING  TO  THE
COST-OF-LIVING ADJUSTMENT FOR THE CALENDAR YEAR.
  3.  THE  DEPARTMENT  SHALL REGULARLY REVIEW THE RATES OF THE TAX UNDER
SUBDIVISION ONE OF THIS SECTION AND MAKE RECOMMENDATIONS TO THE LEGISLA-
TURE REGARDING APPROPRIATE ADJUSTMENTS TO THE RATES  THAT  WILL  FURTHER
THE PURPOSES OF:
  (A) MAXIMIZING NET REVENUE;
  (B) MINIMIZING THE ILLEGAL MARIHUANA INDUSTRY; AND
  (C) DISCOURAGING THE USE OF MARIHUANA BY MINORS UNDER TWENTY-ONE YEARS
OF AGE.
  §  447-A. LOCAL TAXES ON MARIHUANA BY A CITY OR TOWN. ANY CITY OR TOWN
IN THIS STATE, ACTING THROUGH ITS  LOCAL  LEGISLATIVE  BODY,  IS  HEREBY
AUTHORIZED  AND  EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOSING IN ANY
SUCH CITY OR TOWN A SALES TAX ON MARIHUANA RETAILERS AT  A  RATE  OF  NO
MORE  THAN TWO PERCENT OF THE SALE PRICE OF MARIHUANA PRODUCTS SOLD TO A
MARIHUANA CONSUMER. ANY TAXES IMPOSED PURSUANT TO THE AUTHORITY OF  THIS
SECTION  SHALL  BE  ADMINISTERED  AND COLLECTED BY THE DEPARTMENT IN THE
SAME MANNER AS THE TAXES IMPOSED UNDER SECTION FOUR  HUNDRED  FORTY-NINE
OF  THIS  ARTICLE.  THE  COMMISSIONER  IS  HEREBY EMPOWERED TO MAKE SUCH
PROVISIONS AS IT  DEEMS  NECESSARY  FOR  THE  JOINT  ADMINISTRATION  AND
COLLECTION  OF  THE STATE AND LOCAL TAXES IMPOSED AND AUTHORIZED BY THIS
ARTICLE.
  § 447-B. ORDINARY AND NECESSARY EXPENSES DEDUCTIBLE FROM  NET  INCOME.
NOTWITHSTANDING  ANY  FEDERAL  TAX LAW TO THE CONTRARY, IN COMPUTING NET
INCOME FOR BUSINESSES EXEMPTED FROM CRIMINAL  PENALTIES  UNDER  ARTICLES
TWO HUNDRED TWENTY AND TWO HUNDRED TWENTY-ONE OF THE PENAL LAW AND ARTI-
CLE ELEVEN OF THE ALCOHOLIC BEVERAGE CONTROL LAW, THERE SHALL BE ALLOWED
AS  A DEDUCTION FROM STATE TAXES ALL THE ORDINARY AND NECESSARY EXPENSES
PAID OR INCURRED DURING THE TAXABLE YEAR IN CARRYING  ON  ANY  TRADE  OR
BUSINESS,  INCLUDING  BUT NOT LIMITED TO, REASONABLE ALLOWANCE FOR SALA-
RIES OR OTHER COMPENSATION FOR PERSONAL SERVICES ACTUALLY RENDERED.
  § 448. SURETY BOND. MARIHUANA  RETAILER  APPLICANTS  ARE  REQUIRED  TO
SUBMIT  A  SURETY  BOND  WITH  THE DEPARTMENT EQUAL TO TWO MONTHS OF THE
CULTIVATION FACILITY'S ANTICIPATED  RETAIL  MARIHUANA  EXCISE  TAX.  THE
SURETY BOND MUST BE ISSUED BY A COMPANY AUTHORIZED TO DO BUSINESS IN THE
STATE.  PROOF  OF  SURETY  BOND  IS REQUIRED FOR APPROVAL OF APPLICANT'S
RETAIL LICENSE.
  § 449. COLLECTION OF TAX. THIS TAX SHALL BE COLLECTED BY  THE  COMMIS-
SIONER WHO SHALL ESTABLISH A PROCEDURE FOR THE COLLECTION OF THIS TAX.

A. 1617                            54

  §  34.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
ter 905 of the laws of 1977 and paragraph (k) as added by chapter 835 of
the  laws  of 1977 and as relettered by chapter 192 of the laws of 1980,
are amended to read as follows:
  (i)  prior to the filing of an accusatory instrument in a local crimi-
nal court against such person, the prosecutor elects  not  to  prosecute
such  person.  In such event, the prosecutor shall serve a certification
of such disposition upon the division of criminal justice  services  and
upon  the appropriate police department or law enforcement agency which,
upon receipt thereof, shall comply with  the  provisions  of  paragraphs
(a),  (b),  (c)  and  (d) of subdivision one of this section in the same
manner as is required thereunder with respect to an  order  of  a  court
entered pursuant to said subdivision one[.]; OR
  (j)  following the arrest of such person, the arresting police agency,
prior to the filing of an accusatory  instrument  in  a  local  criminal
court  but subsequent to the forwarding of a copy of the fingerprints of
such person to the division of criminal justice services, elects not  to
proceed  further. In such event, the head of the arresting police agency
shall serve a certification of such disposition  upon  the  division  of
criminal justice services which, upon receipt thereof, shall comply with
the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
this  section  in the same manner as is required thereunder with respect
to an order of a court entered pursuant to said subdivision one[.]; OR
  (k) (i) The accusatory instrument alleged a violation of  article  two
hundred  twenty  or section 240.36 of the penal law, prior to the taking
effect of article two hundred twenty-one of the penal  law,  or  BY  THE
CONVICTION  OF  SUCH PERSON OF a violation of [article two hundred twen-
ty-one] SECTION 221.45 of the penal law ON OR AFTER THE  EFFECTIVE  DATE
OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS
SUBDIVISION OR A VIOLATION OF SECTION 221.05,  221.10,  221.15,  221.20,
221.25, 221.30, 221.35 OR 221.40 OF THE PENAL LAW PRIOR TO THE EFFECTIVE
DATE  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED
THIS SUBDIVISION; AND (ii) the sole  controlled  substance  involved  is
[marijuana; (iii) the conviction was only for a violation or violations;
and  (iv)  at  least three years have passed since the offense occurred]
MARIHUANA.  NO DEFENDANT SHALL BE REQUIRED OR PERMITTED TO WAIVE  ELIGI-
BILITY FOR SEALING PURSUANT TO THIS PARAGRAPH AS PART OF A PLEA OF GUIL-
TY, SENTENCE OR ANY AGREEMENT RELATED TO A CONVICTION FOR A VIOLATION OF
SECTION  221.45  OF  THE PENAL LAW. ANY SUCH WAIVER SHALL BE DEEMED VOID
AND WHOLLY UNENFORCEABLE.
  § 35. Subdivision 4 of section 160.50 of the criminal  procedure  law,
as  amended by chapter 905 of the laws of 1977 and renumbered by chapter
142 of the laws of 1991, is amended to read as follows:
  4. A person in whose favor a criminal action or proceeding was  termi-
nated,  as defined in [paragraph] PARAGRAPHS (a) through (h), (K) OR (L)
of subdivision [two] THREE of this section, prior to the effective  date
of  [this  section,  may  upon  motion  apply to the court in which such
termination occurred, upon not less  than  twenty  days  notice  to  the
district  attorney,  for an order granting to such person the relief set
forth in subdivision one of this section, and such order shall be grant-
ed unless the district attorney demonstrates to the satisfaction of  the
court that the interests of justice require otherwise. A person in whose
favor  a  criminal  action  or  proceeding was terminated, as defined in
paragraph (i) or (j) of subdivision two of this section,  prior  to  the
effective  date of this section, may apply to the appropriate prosecutor

A. 1617                            55

or police agency for a certification as described in said paragraph  (i)
or  (j)  granting  to such person the relief set forth therein, and such
certification shall be granted by such prosecutor or police agency.] THE
CHAPTER  OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS SUBDIVI-
SION, AND WHOSE RECORDS HAVE NOT BEEN SEALED PURSUANT TO SUBDIVISION ONE
OF THIS SECTION, MAY APPLY TO HAVE THE RECORDS OF SUCH  CRIMINAL  ACTION
OR  PROCEEDING  SEALED  AT THE CLERK'S OFFICE FOR THE COURT IN WHICH THE
CRIMINAL ACTION OR PROCEEDING WAS TERMINATED. APPLICATION MAY BE MADE BY
THE PERSON OR HIS OR HER ATTORNEY. UPON A  DETERMINATION  BY  THE  CLERK
THAT  THE  ACTION  OR PROCEEDING WAS TERMINATED IN THE PERSON'S FAVOR AS
DEFINED IN SUBDIVISION THREE OF THIS SECTION, THE  CLERK  OF  THE  COURT
SHALL  IMMEDIATELY  NOTIFY  THE COMMISSIONER OF THE DIVISION OF CRIMINAL
JUSTICE SERVICES AND THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND
OTHER LAW ENFORCEMENT AGENCIES THAT THE ACTION HAS  BEEN  TERMINATED  IN
FAVOR  OF  THE ACCUSED AND THAT THE RECORD OF SUCH ACTION OR PROCEEDINGS
SHALL BE SEALED. UPON RECEIPT OF NOTIFICATION OF  SUCH  TERMINATION  AND
SEALING, ALL RECORDS RELATING TO THE CRIMINAL ACTION SHALL BE SEALED, AS
REQUIRED UNDER PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, AND ALL
PHOTOGRAPHS,  PHOTOGRAPHIC PLATES OR PROOFS, PALMPRINTS AND FINGERPRINTS
SHALL BE DESTROYED OR RETURNED AS SPECIFIED IN PARAGRAPHS (A) AND (B) OF
SUBDIVISION ONE OF THIS SECTION. THIS PARAGRAPH SHALL NOT APPLY TO CASES
IN WHICH THE COURT DECLINED TO SEAL FOR REASONS STATED  ON  THE  RECORD,
PURSUANT  TO  SUBDIVISION  ONE  OF THIS SECTION. WHEN AN APPLICANT UNDER
THIS SUBDIVISION PRESENTS TO THE COURT CLERK  FINGERPRINT  RECORDS  FROM
NEW YORK STATE DIVISION OF CRIMINAL JUSTICE SERVICES OR A COURT DISPOSI-
TION  WHICH  INDICATE  THAT  A CRIMINAL ACTION OR PROCEEDING AGAINST THE
APPLICANT WAS DISMISSED BUT  THE  SUPPORTING  COURT  RECORDS  CANNOT  BE
LOCATED,  HAVE  BEEN DESTROYED, OR DO NOT INDICATE WHETHER THE DISMISSAL
WAS A "TERMINATION IN FAVOR OF" THE ACCUSED AS THAT TERM IS  DEFINED  IN
SUBDIVISION  THREE  OF THIS SECTION, THE CLERK OF THE COURT WHEREIN SUCH
CRIMINAL ACTION OR PROCEEDING WAS TERMINATED SHALL  PROCEED  AS  IF  THE
MATTER HAD BEEN SO TERMINATED.
  § 36. Subdivisions 1 and 2 of section 170.56 of the criminal procedure
law,  subdivision  1  as  amended by chapter 360 of the laws of 1977 and
subdivision 2 as added by chapter 1042 of the laws of 1971, are  amended
to read as follows:
  1.  Upon or after arraignment in a local criminal court upon an infor-
mation, a prosecutor's information or a misdemeanor complaint, where the
sole  remaining  count  or  counts  charge  a violation or violations of
section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
law,  OR  UPON SUMMONS FOR A NUISANCE OFFENSE UNDER SECTION SIXTY-FIVE-C
OF THE ALCOHOLIC BEVERAGE CONTROL LAW and before the entry of a plea  of
guilty  thereto  or  commencement  of   a trial thereof, the court, upon
motion of a defendant, may order that all proceedings be  suspended  and
the  action  adjourned  in contemplation of dismissal, or upon a finding
that adjournment would not be necessary or appropriate and  the  setting
forth  in  the  record  of the reasons for such findings, may dismiss in
furtherance of justice the  accusatory  instrument;  provided,  however,
that  the  court  may  not  order  such  adjournment in contemplation of
dismissal or dismiss the accusatory instrument if: (a) the defendant has
previously been granted such adjournment in contemplation of  dismissal,
or  (b) the defendant has previously been granted a dismissal under this
section, or (c) the defendant  has  previously  been  convicted  of  any
offense involving controlled substances, or (d) the defendant has previ-
ously  been  convicted  of  a  crime  and the district attorney does not
consent or (e) the defendant has previously been adjudicated a  youthful

A. 1617                            56

offender on the basis of any act or acts involving controlled substances
and the district attorney does not consent.  NOTWITHSTANDING THE LIMITA-
TIONS  SET  FORTH  IN  THIS  SUBDIVISION,  THE  COURT MAY ORDER THAT ALL
PROCEEDINGS  BE  SUSPENDED  AND THE ACTION ADJOURNED IN CONTEMPLATION OF
DISMISSAL  BASED  UPON  A  FINDING  OF  EXCEPTIONAL  CIRCUMSTANCES.  FOR
PURPOSES  OF  THIS  SUBDIVISION,  EXCEPTIONAL  CIRCUMSTANCES EXIST WHEN,
REGARDLESS OF THE ULTIMATE DISPOSITION OF THE CASE, THE ENTRY OF A  PLEA
OF GUILTY IS LIKELY TO RESULT IN SEVERE COLLATERAL CONSEQUENCES, INCLUD-
ING,  BUT NOT LIMITED TO, THOSE THAT COULD LEAVE A NONCITIZEN INADMISSI-
BLE OR REMOVABLE FROM THE UNITED STATES.
  2.  Upon ordering the action adjourned in contemplation of  dismissal,
the  court  must  set and specify such conditions for the adjournment as
may be appropriate, and such conditions may include placing the  defend-
ant  under the supervision of any public or private agency.  At any time
prior to dismissal the court may modify  the  conditions  or  extend  or
reduce  the  term  of  the  adjournment, except that the total period of
adjournment shall not exceed [twelve] SIX months.  Upon violation of any
condition fixed by the court, the court may revoke its order and restore
the case to the calendar and the prosecution thereupon must proceed.  If
the case is not so restored to the calendar during the period  fixed  by
the court, the accusatory instrument is, at the expiration of such peri-
od, deemed to have been dismissed in the furtherance of justice.
  §  37.  Section  210.46  of  the criminal procedure law, as amended by
chapter 360 of the laws of 1977, is amended to read as follows:
§ 210.46  Adjournment in contemplation of dismissal in  marihuana  cases
        in a superior court.
  Upon or after arraignment in a superior court upon an indictment where
the  sole  remaining count or counts charge a violation or violations of
section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
law  and before the entry of a plea of guilty thereto or commencement of
a  trial  thereof, the court, upon motion of a defendant, may order that
all proceedings be suspended and the action adjourned  in  contemplation
of dismissal or may dismiss the indictment in furtherance of justice, in
accordance with the provisions of section 170.56 of this chapter.
  § 38. Paragraph (h) and subparagraph (ii) of paragraph (i) of subdivi-
sion 1 of section 440.10 of the criminal procedure law, paragraph (h) as
amended  by  chapter  332  of  the laws of 2010 and subparagraph (ii) of
paragraph (i) as amended by chapter 368 of the laws of 2015, are amended
and a new paragraph (j) is added to read as follows:
  (h) The judgment was obtained in violation of a right of the defendant
under the constitution of this state or of the United States; [or]
  (ii) official documentation of the defendant's status as a  victim  of
trafficking,  compelling  prostitution  or trafficking in persons at the
time of the offense from a federal, state  or  local  government  agency
shall  create  a  presumption  that the defendant's participation in the
offense was a result of having been a victim of sex trafficking, compel-
ling prostitution or trafficking in persons, but shall not  be  required
for granting a motion under this paragraph[.]; OR
  (J)  THE  JUDGMENT  OCCURRED PRIOR TO THE EFFECTIVE DATE OF THIS PARA-
GRAPH AND IS A CONVICTION FOR:
  (I) AN OFFENSE AS DEFINED BY SECTION 221.05 OR 221.10 OF THE PENAL LAW
(CRIMINAL POSSESSION OF MARIHUANA IN THE FIFTH  DEGREE),  AS  IN  EFFECT
PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH, PROVIDED THAT THE ACCUSA-
TORY  INSTRUMENT THAT UNDERLIES THE JUDGMENT DOES NOT INCLUDE AN ALLEGA-
TION THAT THE DEFENDANT POSSESSED MORE THAN TWENTY-FIVE GRAMS  OF  MARI-
HUANA; OR

A. 1617                            57

  (II)  AN  OFFENSE AS DEFINED BY FORMER SECTION 221.35 OF THE PENAL LAW
(CRIMINAL SALE OF MARIHUANA IN THE FIFTH DEGREE).
  §  39.  Subdivision 6 of section 440.10 of the criminal procedure law,
as added by chapter 332 of the laws of  2010,  is  amended  to  read  as
follows:
  6.  If  the court grants a motion under paragraph (i) OR PARAGRAPH (J)
of subdivision one of this section, it  must  vacate  the  judgment  and
dismiss  the  accusatory instrument, and may take such additional action
as is appropriate in the circumstances.
  § 40. The criminal procedure law is amended by adding  a  new  section
440.46-a to read as follows:
§ 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
             OFFENSES.
  1.  A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER BY
TRIAL OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE BEEN  GUILTY  OF
AN  OFFENSE  OR  WHO  WOULD  HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT
AT THE TIME OF HIS OR HER  CONVICTION  MAY  PETITION  FOR  A  RECALL  OR
DISMISSAL  OF  SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT
OF CONVICTION IN HIS OR HER CASE TO REQUEST RESENTENCING OR DISMISSAL IN
ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW.
  2. UPON RECEIVING A MOTION UNDER SUBDIVISION ONE OF THIS  SECTION  THE
COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE
OF THIS SECTION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY CLEAR AND
CONVINCING  EVIDENCE  THAT  THE MOVANT DOES NOT SATISFY THE CRITERIA. IF
THE MOVANT SATISFIES THE CRITERIA IN SUBDIVISION ONE  OF  THIS  SECTION,
THE COURT SHALL GRANT THE MOTION TO VACATE THE SENTENCE OR TO RESENTENCE
BECAUSE  IT  IS LEGALLY INVALID. IN EXERCISING ITS DISCRETION, THE COURT
MAY CONSIDER, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING:
  (A) THE MOVANT'S CRIMINAL CONVICTION HISTORY, INCLUDING  THE  TYPE  OF
CRIMES  COMMITTED,  THE EXTENT OF INJURY TO VICTIMS, THE LENGTH OF PRIOR
PRISON COMMITMENTS, AND THE REMOTENESS OF THE CRIMES.
  (B) THE MOVANT'S DISCIPLINARY  RECORD  AND  RECORD  OF  REHABILITATION
WHILE INCARCERATED.
  3.  A  PERSON  WHO  IS  SERVING A SENTENCE AND RESENTENCED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION SHALL  BE  GIVEN  CREDIT  FOR  ANY  TIME
ALREADY  SERVED AND SHALL BE SUBJECT TO SUPERVISION FOR ONE YEAR FOLLOW-
ING COMPLETION OF HIS OR HER TIME IN CUSTODY  OR  SHALL  BE  SUBJECT  TO
WHATEVER SUPERVISION TIME HE OR SHE WOULD HAVE OTHERWISE BEEN SUBJECT TO
AFTER   RELEASE,   WHICHEVER  IS  SHORTER,  UNLESS  THE  COURT,  IN  ITS
DISCRETION, AS PART OF ITS RESENTENCING ORDER, RELEASES THE PERSON  FROM
SUPERVISION.  SUCH PERSON IS SUBJECT TO PAROLE SUPERVISION UNDER SECTION
60.04 OF THE PENAL LAW OR POST-RELEASE SUPERVISION UNDER  SECTION  70.45
OF  THE  PENAL  LAW BY THE DESIGNATED AGENCY AND THE JURISDICTION OF THE
COURT IN THE COUNTY IN WHICH THE OFFENDER IS RELEASED OR RESIDES, OR  IN
WHICH  AN ALLEGED VIOLATION OF SUPERVISION HAS OCCURRED, FOR THE PURPOSE
OF HEARING PETITIONS TO REVOKE SUPERVISION AND IMPOSE A TERM OF CUSTODY.
  4. UNDER NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS  SECTION  RESULT
IN  THE  IMPOSITION  OF A TERM LONGER THAN THE ORIGINAL SENTENCE, OR THE
REINSTATEMENT OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA  AGREE-
MENT.
  5.  A  PERSON  WHO  HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
ER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD NOT HAVE  BEEN  GUILTY
OF  AN  OFFENSE OR WHO WOULD HAVE BEEN GUILTY OF A LESSER OFFENSE ON AND
AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS SECTION BEEN IN EFFECT

A. 1617                            58

AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN APPLICATION BEFORE THE
TRIAL COURT THAT ENTERED THE JUDGMENT OF CONVICTION IN HIS OR  HER  CASE
TO  HAVE  THE CONVICTION, IN ACCORDANCE WITH ARTICLE TWO HUNDRED TWENTY-
ONE OF THE PENAL LAW:
  (A)  DISMISSED BECAUSE THE PRIOR CONVICTION IS NOW LEGALLY INVALID AND
SEALED IN ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER;
  (B) REDESIGNATED (OR "RECLASSIFIED") AS  A  VIOLATION  AND  SEALED  IN
ACCORDANCE WITH SECTION 160.50 OF THIS CHAPTER; OR
  (C) REDESIGNATED (RECLASSIFIED) AS A MISDEMEANOR.
  6.  THE  COURT  SHALL PRESUME THE PETITIONER SATISFIES THE CRITERIA IN
SUBDIVISION FIVE UNLESS THE PARTY OPPOSING  THE  APPLICATION  PROVES  BY
CLEAR  AND  CONVINCING EVIDENCE THAT THE PETITIONER DOES NOT SATISFY THE
CRITERIA IN SUBDIVISION FIVE. ONCE THE APPLICANT SATISFIES THE  CRITERIA
IN  SUBDIVISION  FIVE, THE COURT SHALL REDESIGNATE (OR "RECLASSIFY") THE
CONVICTION AS A MISDEMEANOR, REDESIGNATE (RECLASSIFY) THE CONVICTION  AS
A  VIOLATION AND SEAL THE CONVICTION, OR DISMISS AND SEAL THE CONVICTION
AS LEGALLY INVALID UNDER THIS SECTION HAD THIS SECTION BEEN IN EFFECT AT
THE TIME OF HIS OR HER CONVICTION.
  7. UNLESS REQUESTED BY THE APPLICANT, NO HEARING IS NECESSARY TO GRANT
OR DENY AN APPLICATION FILED UNDER SUBDIVISION FIVE OF THIS SECTION.
  8. ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER  SUBDI-
VISION TWO OR DESIGNATED AS A MISDEMEANOR OR VIOLATION UNDER SUBDIVISION
SIX  OF  THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR OR VIOLATION FOR
ALL PURPOSES. ANY MISDEMEANOR CONVICTION THAT IS VACATED AND RESENTENCED
UNDER SUBDIVISION TWO OF THIS SECTION OR DESIGNATED AS A VIOLATION UNDER
SUBDIVISION SIX OF THIS SECTION SHALL BE CONSIDERED A VIOLATION FOR  ALL
PURPOSES.
  9. IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAILABLE,
THE  PRESIDING  JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON THE PETI-
TION OR APPLICATION.
  10. NOTHING IN THIS SECTION IS INTENDED TO DIMINISH  OR  ABROGATE  ANY
RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
  11.  NOTHING  IN  THIS AND RELATED SECTIONS IS INTENDED TO DIMINISH OR
ABROGATE THE FINALITY OF JUDGEMENTS IN ANY CASE NOT FALLING  WITHIN  THE
PURVIEW OF THIS SECTION.
  12.  THE  PROVISIONS  OF  THIS SECTION SHALL APPLY EQUALLY TO JUVENILE
DELINQUENCY ADJUDICATIONS AND DISPOSITIONS UNDER  SECTION  FIVE  HUNDRED
ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
AN  OFFENSE  OR  WOULD  HAVE  BEEN GUILTY OF A LESSER OFFENSE UNDER THIS
SECTION HAD THIS SECTION BEEN IN EFFECT  AT  THE  TIME  OF  HIS  OR  HER
CONVICTION.
  13.  THE  OFFICE  OF  COURT  ADMINISTRATION  SHALL PROMULGATE AND MAKE
AVAILABLE ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS  AND
APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
THE EFFECTIVE DATE OF THIS SECTION.
  § 41. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
procedure  law, as amended by chapter 37 of the laws of 2014, is amended
to read as follows:
  (c) Criminal possession of  a  controlled  substance  in  the  seventh
degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
possession of a controlled substance in the fifth degree as  defined  in
section  220.06  of  the  penal law, criminal possession of a controlled
substance in the fourth degree as defined in section 220.09 of the penal
law, criminal possession of a controlled substance in the  third  degree
as  defined in section 220.16 of the penal law, criminal possession of a
controlled substance in the second degree as defined in  section  220.18

A. 1617                            59

of  the  penal law, criminal possession of a controlled substance in the
first degree as defined in section 220.21 of  the  penal  law,  criminal
sale of a controlled substance in the fifth degree as defined in section
220.31  of the penal law, criminal sale of a controlled substance in the
fourth degree as defined in section 220.34 of the  penal  law,  criminal
sale of a controlled substance in the third degree as defined in section
220.39  of the penal law, criminal sale of a controlled substance in the
second degree as defined in section 220.41 of the  penal  law,  criminal
sale of a controlled substance in the first degree as defined in section
220.43  of  the penal law, criminally possessing a hypodermic instrument
as defined in section 220.45 of  the  penal  law,  criminal  sale  of  a
prescription  for  a controlled substance or a controlled substance by a
practitioner or pharmacist as defined in section  220.65  of  the  penal
law,  criminal  possession  of methamphetamine manufacturing material in
the second degree as defined in section 220.70 of the penal law,  crimi-
nal  possession  of  methamphetamine manufacturing material in the first
degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
possession of precursors of methamphetamine as defined in section 220.72
of  the  penal law, unlawful manufacture of methamphetamine in the third
degree as defined in section 220.73 of the penal law, unlawful  manufac-
ture  of  methamphetamine  in  the  second  degree as defined in section
220.74 of the penal law, unlawful manufacture of methamphetamine in  the
first  degree  as  defined  in section 220.75 of the penal law, unlawful
disposal of methamphetamine laboratory material as  defined  in  section
220.76  of  the penal law, operating as a major trafficker as defined in
section 220.77 of the penal law, [criminal possession  of  marihuana  in
the first degree as defined in section 221.30 of the penal law, criminal
sale  of  marihuana  in the first degree as defined in section 221.55 of
the penal law,] promoting gambling in the second degree  as  defined  in
section  225.05 of the penal law, promoting gambling in the first degree
as defined in section 225.10 of the penal law,  possession  of  gambling
records  in  the second degree as defined in section 225.15 of the penal
law, possession of gambling records in the first degree  as  defined  in
section  225.20 of the penal law, and possession of a gambling device as
defined in section 225.30 of the penal law;
  § 42. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
9 of section 1310 of the civil practice law and  rules,  paragraphs  (b)
and  (c)  of subdivision 4-b as added by chapter 655 of the laws of 1990
and subdivisions 6 and 9 as added by chapter 669 of the  laws  of  1984,
are amended to read as follows:
  (b)  on  three  or  more occasions, engaging in conduct constituting a
violation of any of the felonies  defined  in  section  220.09,  220.16,
220.18,  220.21, 220.31, 220.34, 220.39, 220.41[,] OR 220.43 [or 221.55]
of the penal law, which violations do not constitute a  single  criminal
offense  as  defined in subdivision one of section 40.10 of the criminal
procedure law, or a single criminal transaction, as defined in paragraph
(a) of subdivision two of section 40.10 of the criminal  procedure  law,
and  at  least one of which resulted in a conviction of such offense, or
where the accusatory instrument charges one or more  of  such  felonies,
conviction  upon  a  plea  of  guilty to a felony for which such plea is
otherwise authorized by law; or
  (c) a conviction of a  person  for  a  violation  of  section  220.09,
220.16,  220.34 or 220.39 of the penal law, [or a conviction of a crimi-
nal defendant for a violation of section 221.30 of the  penal  law,]  or
where the accusatory instrument charges any such felony, conviction upon
a  plea of guilty to a felony for which the plea is otherwise authorized

A. 1617                            60

by law, together with evidence which: (i) provides  substantial  indicia
that  the  defendant  used  the  real property to engage in a continual,
ongoing course of conduct involving the  unlawful  mixing,  compounding,
manufacturing,  warehousing,  or  packaging of controlled substances [or
where the conviction is for a violation of section 221.30 of  the  penal
law,  marijuana,]  as part of an illegal trade or business for gain; and
(ii) establishes, where the conviction is for possession of a controlled
substance [or where the conviction is for a violation of section  221.30
of  the  penal law, marijuana], that such possession was with the intent
to sell it.
  [6. "Pre-conviction forfeiture crime" means only a felony  defined  in
article  two  hundred  twenty  or  section 221.30 or 221.55 of the penal
law.]
  9. "Criminal defendant" means a person who has criminal liability  for
a  crime  defined in [subdivisions] SUBDIVISION five [and six hereof] OF
THIS SECTION. For purposes  of  this  article,  a  person  has  criminal
liability  when [(a)] he has been convicted of a post-conviction forfei-
ture crime[, or (b) the claiming authority proves by clear and  convinc-
ing evidence that such person has committed an act in violation of arti-
cle two hundred twenty or section 221.30 or 221.55 of the penal law].
  §  43.  Subdivision 13 of section 89-f of the general business law, as
added by chapter 336 of the laws of 1992, is amended to read as follows:
  13. "Serious offense" shall mean any  felony  involving  the  offenses
enumerated  in  the  closing  paragraph  of this subdivision; a criminal
solicitation of or a conspiracy to commit or an attempt to commit  or  a
criminal  facilitation  of a felony involving the offenses enumerated in
the closing paragraph of this subdivision, which criminal  solicitation,
conspiracy, attempt or criminal facilitation itself constitutes a felony
or  any  offense  in  any  other jurisdiction which if committed in this
state would constitute a felony; any offense in any  other  jurisdiction
which if committed in this state would constitute a felony provided that
for the purposes of this article, none of the following shall be consid-
ered  criminal  convictions  or  reported  as such: (i) a conviction for
which an executive pardon has been issued pursuant to the executive law;
(ii) a conviction which has been vacated  and  replaced  by  a  youthful
offender  finding pursuant to article seven hundred twenty of the crimi-
nal procedure law, or the applicable provisions  of  law  of  any  other
jurisdiction;  or  (iii)  a  conviction  the  records of which have been
sealed pursuant to the applicable provisions of the laws of  this  state
or  of  any  other  jurisdiction;  and (iv) a conviction for which other
evidence of successful rehabilitation to remove the disability has  been
issued.
  Felonies involving: assault, aggravated assault and reckless endanger-
ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
manslaughter and murder pursuant to article one hundred twenty-five; sex
offenses pursuant to article one hundred thirty; unlawful  imprisonment,
kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
criminal trespass and burglary pursuant to article  one  hundred  forty;
criminal  mischief,  criminal  tampering  and  tampering with a consumer
product pursuant to article one hundred forty-five;  arson  pursuant  to
article one hundred fifty; larceny and offenses involving theft pursuant
to article one hundred fifty-five; offenses involving computers pursuant
to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
hundred sixty; criminal possession of stolen property pursuant to  arti-
cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
article one hundred seventy; involving false written statements pursuant

A. 1617                            61

to article one hundred seventy-five; commercial bribing  and  commercial
bribe  receiving pursuant to article one hundred eighty; criminal imper-
sonation and scheme to defraud pursuant to article one  hundred  ninety;
bribery involving public servants and related offenses pursuant to arti-
cle  two  hundred;  perjury and related offenses pursuant to article two
hundred ten; tampering with a witness, intimidating a victim or  witness
and  tampering  with  physical  evidence pursuant to article two hundred
fifteen; criminal possession  of  a  controlled  substance  pursuant  to
sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
220.41,  220.43  and  220.44;  [criminal] UNLICENSED sale of [marijuana]
MARIHUANA IN THE FIRST DEGREE pursuant to  [sections]  SECTION  221.45[,
221.50  and  221.55]; riot in the first degree, aggravated harassment in
the first degree, criminal nuisance in  the  first  degree  and  falsely
reporting  an incident in the second or first degree pursuant to article
two hundred forty; and crimes against public safety pursuant to  article
two hundred sixty-five of the penal law.
  §  44.  Paragraph  (f)  of subdivision 2 of section 850 of the general
business law is REPEALED.
  § 45. Paragraph (h) of subdivision 2 of section  850  of  the  general
business  law, as amended by chapter 812 of the laws of 1980, is amended
to read as follows:
  (h) Objects, used or designed for the purpose of ingesting,  inhaling,
or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
into the human body.
  §  46.  Paragraph  a  of  subdivision  4-a of section 165 of the state
finance law, as added by chapter 95 of the laws of 2000, is  amended  to
read as follows:
  a.  In  order  to  advance  specific  economic  goals,  New York state
labelled wines, as defined in subdivision [twenty-a] TWENTY-J of section
three of the alcoholic beverage control law, shall have  favored  source
status for the purposes of procurement in accordance with the provisions
of this subdivision.  Procurement of these New York state labelled wines
shall  be  exempt from the competitive procurement provisions of section
one hundred sixty-three of this article and other  competitive  procure-
ment  statutes.    Such exemption shall apply to New York state labelled
wines as defined in subdivision [twenty-a] TWENTY-J of section three  of
the  alcoholic  beverage  control  law  produced by a licensed winery as
defined in section seventy-six of the alcoholic beverage control law.
  § 47. Subdivision 7 of section 995 of the executive law, as amended by
chapter 19 of the laws of 2012, is amended to read as follows:
  7. "Designated offender"  means  a  person  convicted  of  any  felony
defined  in  any  chapter  of  the  laws of the state or any misdemeanor
defined in the penal law [except that  where  the  person  is  convicted
under  section  221.10  of  the penal law, only a person convicted under
subdivision two of such section, or a person convicted under subdivision
one of such section who stands previously  convicted  of  any  crime  as
defined in subdivision six of section 10.00 of the penal law].
  § 48. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
penal law, paragraph (b) as amended by section 31 of part AAA of chapter
56  of the laws of 2009 and paragraph (c) as added by chapter 655 of the
laws of 1990, are amended to read as follows:
  (b) three or more violations of any of the felonies defined in section
220.09,  220.16,  220.18,  220.21,  220.31,  220.34,   220.39,   220.41,
220.43[,]  OR  220.77[,  or 221.55] of this chapter, which violations do
not constitute a single criminal offense as defined in  subdivision  one

A. 1617                            62

of  section  40.10  of  the criminal procedure law, or a single criminal
transaction, as defined in paragraph (a) of subdivision two  of  section
40.10  of the criminal procedure law, and at least one of which resulted
in  a  conviction  of  such  offense, or where the accusatory instrument
charges one or more of such felonies, conviction upon a plea  of  guilty
to a felony for which such plea is otherwise authorized by law; or
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or  where  the
accusatory instrument charges any such felony, conviction upon a plea of
guilty  to  a  felony for which the plea is otherwise authorized by law,
together with evidence which: (i) provides substantial indicia that  the
defendant  used  the  real  property  to  engage in a continual, ongoing
course of conduct involving the unlawful mixing,  compounding,  manufac-
turing, warehousing, or packaging of controlled substances [or where the
conviction  is  for a violation of section 221.30 of this chapter, mari-
juana] as part of an illegal trade or business for gain; and (ii) estab-
lishes, where the conviction is for possession of a controlled substance
[or where the conviction is for a violation of section  221.30  of  this
chapter,  marijuana],  that  such possession was with the intent to sell
it.
  § 49. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
amended to read as follows:
  (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
subdivision one and subparagraph (i) of paragraph (c) of subdivision two
of  this  section  that  result in disqualification for a period of five
years shall include a conviction under sections 100.10, 105.13,  115.05,
120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,
140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
235.06, 235.07, 235.21,  240.06,  245.00,  260.10,  subdivision  two  of
section  260.20  and  sections  260.25,  265.02, 265.03, 265.08, 265.09,
265.10, 265.12, 265.35 of the penal law or an attempt to commit  any  of
the  aforesaid  offenses  under  section 110.00 of the penal law, or any
similar offenses committed under a former section of the penal  law,  or
any  offenses  committed  under  a former section of the penal law which
would constitute violations of the aforesaid sections of the penal  law,
or  any  offenses  committed  outside  this state which would constitute
violations of the aforesaid sections of the penal law.
  § 50. The opening paragraph of  paragraph  (a)  of  subdivision  2  of
section  1194  of the vehicle and traffic law, as amended by chapter 196
of the laws of 1996, is amended to read as follows:
  When authorized. Any person who operates a motor vehicle in this state
shall be deemed to have given consent to a chemical test of one or  more
of  the  following:  breath, blood, urine, or saliva, for the purpose of
determining the alcoholic and/or  drug  content,  OTHER  THAN  MARIHUANA
CONTENT  INCLUDING  BUT  NOT LIMITED TO TETRAHYDROCANNABINOL CONTENT, of
the blood provided that such test is administered by or at the direction
of a police officer with respect to a chemical test of breath, urine  or
saliva or, with respect to a chemical test of blood, at the direction of
a police officer:
  §  51.  Section 17 of the alcoholic beverage control law is amended by
adding a new subdivision 12 to read as follows:

A. 1617                            63

  12. TO DEVELOP AND ESTABLISH MINIMUM CRITERIA FOR ALCOHOL OR SUBSTANCE
USE DISORDER TRAINING AWARENESS PROGRAMS WHICH MAY BE GIVEN AND ADMINIS-
TERED BY SCHOOLS; OTHER  ENTITIES  INCLUDING  TRADE  ASSOCIATIONS  WHOSE
MEMBERS  ARE  ENGAGED  IN  OR  INVOLVED  IN THE RETAIL SALE OF ALCOHOLIC
BEVERAGES;  NATIONAL  AND REGIONAL FRANCHISORS WHO HAVE GRANTED AT LEAST
FIVE FRANCHISES IN THE STATE WHICH ARE LICENSED TO SELL BEER  AT  RETAIL
FOR  OFF-PREMISES  CONSUMPTION;  LICENSEES  AUTHORIZED TO SELL ALCOHOLIC
BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION OPERATING FIVE OR  MORE
LICENSED  PREMISES;  AND  PERSONS  INTERESTED,  WHETHER AS AN INDIVIDUAL
PROPRIETOR OR PARTNER OR OFFICER OR MEMBER OF A LIMITED LIABILITY COMPA-
NY, IN FIVE OR MORE LICENSEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES  AT
RETAIL FOR OFF-PREMISES CONSUMPTION. THE AUTHORITY SHALL PROVIDE FOR THE
ISSUANCE  OF  CERTIFICATES  OF  APPROVAL  TO  ALL  CERTIFIED  ALCOHOL OR
SUBSTANCE USE DISORDER  TRAINING  AWARENESS  PROGRAMS.  CERTIFICATES  OF
APPROVAL  MAY  BE  REVOKED BY THE AUTHORITY FOR FAILURE TO ADHERE TO THE
AUTHORITY'S RULES AND REGULATIONS.  SUCH  RULES  AND  REGULATIONS  SHALL
AFFORD  THOSE WHO HAVE BEEN ISSUED A CERTIFICATE OF APPROVAL AN OPPORTU-
NITY FOR A HEARING PRIOR TO ANY DETERMINATION OF  WHETHER  SUCH  CERTIF-
ICATE SHOULD BE REVOKED.
  NO  LICENSEE  SHALL  BE  REQUIRED TO APPLY FOR ANY SUCH CERTIFICATE OR
RENEWAL CERTIFICATE AND THE LICENSEE MAY VOLUNTARILY  SURRENDER  SUCH  A
CERTIFICATE  OR  RENEWAL CERTIFICATE AT ANY TIME. A FEE IN THE AMOUNT OF
NINE HUNDRED DOLLARS SHALL BE PAID TO THE AUTHORITY WITH  EACH  APPLICA-
TION FOR A CERTIFICATE OF APPROVAL OR RENEWAL CERTIFICATE.  THE AUTHORI-
TY  SHALL PROMPTLY REFUND SUCH FEE TO AN APPLICANT WHOSE APPLICATION WAS
DENIED. EACH CERTIFICATE OF APPROVAL AND RENEWAL THEREOF SHALL BE ISSUED
FOR A PERIOD OF THREE YEARS. TO EFFECTUATE THE PROVISIONS OF THIS SUBDI-
VISION, THE AUTHORITY IS EMPOWERED TO  REQUIRE  IN  CONNECTION  WITH  AN
APPLICATION  THE  SUBMISSION  OF  SUCH  INFORMATION AS THE AUTHORITY MAY
DIRECT; TO PRESCRIBE FORMS OF APPLICATIONS AND OF ALL REPORTS  WHICH  IT
DEEMS  NECESSARY  TO  BE MADE BY ANY APPLICANT OR CERTIFICATE HOLDER; TO
CONDUCT INVESTIGATIONS; TO REQUIRE THE MAINTENANCE  OF  SUCH  BOOKS  AND
RECORDS  AS  THE AUTHORITY MAY DIRECT; AND TO REVOKE, CANCEL, OR SUSPEND
FOR CAUSE ANY CERTIFICATE PROVIDED FOR IN THIS SUBDIVISION. EACH  ENTITY
AUTHORIZED  TO  GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER
TRAINING AWARENESS PROGRAM SHALL ISSUE CERTIFICATES OF COMPLETION TO ALL
LICENSEES AND EMPLOYEES WHO SUCCESSFULLY COMPLETE SUCH AN APPROVED ALCO-
HOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS  PROGRAM.  SUCH  ENTITY
SHALL REGULARLY TRANSMIT TO THE AUTHORITY THE NAMES, ADDRESSES AND DATES
OF  ATTENDANCE  OF  ALL  THE  LICENSEES  AND  EMPLOYEES OF LICENSEES WHO
SUCCESSFULLY COMPLETE AN APPROVED  ALCOHOL  OR  SUBSTANCE  USE  DISORDER
TRAINING  AWARENESS  PROGRAM.  SUCH  TRANSMITTAL  SHALL BE IN A FORM AND
MANNER PRESCRIBED BY THE AUTHORITY. THE AUTHORITY SHALL ADOPT RULES  AND
REGULATIONS  TO EFFECTUATE THE PROVISIONS OF THIS SUBDIVISION, INCLUDING
THE MINIMUM REQUIREMENTS  FOR  THE  CURRICULUM  OF  EACH  SUCH  TRAINING
PROGRAM  AND  THE  REGULAR ONGOING TRAINING OF EMPLOYEES HOLDING CERTIF-
ICATES OF COMPLETION OR RENEWAL CERTIFICATES.    SUCH  RULES  AND  REGU-
LATIONS SHALL INCLUDE THE MINIMUM REQUIREMENTS FOR A SEPARATE CURRICULUM
FOR LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES
AT RETAIL FOR OFF-PREMISES CONSUMPTION, MINIMUM REQUIREMENTS FOR A SEPA-
RATE  CURRICULUM  FOR  LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL
ALCOHOLIC BEVERAGES AT RETAIL FOR ON-PREMISES CONSUMPTION, AND THE  FORM
OF  A  CERTIFICATE  OF  COMPLETION  OR  RENEWAL  THEREOF TO BE ISSUED IN
RESPECT TO EACH SUCH TYPE OF PROGRAM. A  CERTIFICATE  OF  COMPLETION  OR
RENEWAL THEREOF ISSUED BY AN ENTITY AUTHORIZED TO GIVE AND ADMINISTER AN
ALCOHOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS PROGRAM PURSUANT TO

A. 1617                            64

THIS  SUBDIVISION  TO  LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL
ALCOHOLIC BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION SHALL NOT  BE
INVALIDATED  BY  A  CHANGE  OF  EMPLOYMENT  TO  ANOTHER SUCH LICENSEE. A
CERTIFICATE OF COMPLETION OR RENEWAL THEREOF ISSUED BY AN ENTITY AUTHOR-
IZED  TO GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER TRAIN-
ING AWARENESS PROGRAM PURSUANT TO  THIS  SUBDIVISION  TO  LICENSEES  AND
THEIR  EMPLOYEES  AUTHORIZED  TO  SELL ALCOHOLIC BEVERAGES AT RETAIL FOR
ON-PREMISES CONSUMPTION SHALL NOT BE INVALIDATED BY A CHANGE OF  EMPLOY-
MENT  TO  ANOTHER  SUCH  LICENSEE.  ATTENDANCE AT ANY COURSE ESTABLISHED
PURSUANT TO THIS SECTION SHALL BE IN PERSON, THROUGH  DISTANCE  LEARNING
METHODS, OR THROUGH AN INTERNET BASED ONLINE PROGRAM.
  §  52.  Subdivision 12 of section 17 of the alcoholic beverage control
law, as amended by chapter 549 of the laws of 2001,  the  closing  para-
graph  as amended by chapter 435 of the laws of 2010, is amended to read
as follows:
  12. To develop and establish minimum criteria for alcohol OR SUBSTANCE
USE DISORDER training awareness programs which may be given and adminis-
tered by schools; other  entities  including  trade  associations  whose
members  are  engaged  in  or  involved  in the retail sale of alcoholic
beverages; national and regional franchisors who have granted  at  least
five  franchises  in the state which are licensed to sell beer at retail
for off-premises consumption; licensees  authorized  to  sell  alcoholic
beverages  at retail for off-premises consumption operating five or more
licensed premises; and persons  interested,  whether  as  an  individual
proprietor or partner or officer or member of a limited liability compa-
ny,  in five or more licensees authorized to sell alcoholic beverages at
retail for off-premises consumption. The authority shall provide for the
issuance of  certificates  of  approval  to  all  certified  alcohol  OR
SUBSTANCE  USE  DISORDER  training  awareness  programs. Certificates of
approval may be revoked by the authority for failure to  adhere  to  the
authority's  rules  and  regulations.  Such  rules and regulations shall
afford those who have been issued a certificate of approval an  opportu-
nity  for  a  hearing prior to any determination of whether such certif-
icate should be revoked.
  No licensee shall be required to apply for  any  such  certificate  or
renewal  certificate  and  the licensee may voluntarily surrender such a
certificate or renewal certificate at any time. A fee in the  amount  of
nine  hundred  dollars shall be paid to the authority with each applica-
tion for a certificate of approval or renewal certificate. The authority
shall promptly refund such fee to an  applicant  whose  application  was
denied. Each certificate of approval and renewal thereof shall be issued
for a period of three years. To effectuate the provisions of this subdi-
vision,  the  authority  is  empowered  to require in connection with an
application the submission of such  information  as  the  authority  may
direct;  to  prescribe forms of applications and of all reports which it
deems necessary to be made by any applicant or  certificate  holder;  to
conduct  investigations;  to  require  the maintenance of such books and
records as the authority may direct; to revoke, cancel, or  suspend  for
cause  any  certificate  provided  for  in this subdivision. Each entity
authorized to give and administer an alcohol OR SUBSTANCE  USE  DISORDER
training awareness program shall issue certificates of completion to all
licensees and employees who successfully complete such an approved alco-
hol  OR  SUBSTANCE  USE DISORDER training awareness program. Such entity
shall regularly transmit to the authority the names, addresses and dates
of attendance of all  the  licensees  and  employees  of  licensees  who
successfully  complete  an  approved  alcohol  OR SUBSTANCE USE DISORDER

A. 1617                            65

training awareness program.  Such transmittal shall be  in  a  form  and
manner  prescribed by the authority. The authority shall adopt rules and
regulations to effectuate the provisions of this subdivision,  including
the  minimum  requirements  for  the  curriculum  of  each such training
program and the regular ongoing training of  employees  holding  certif-
icates of completion or renewal certificates. Such rules and regulations
shall  include  the  minimum  requirements for a separate curriculum for
licensees and their employees authorized to sell alcoholic beverages  at
retail for off-premises consumption, minimum requirements for a separate
curriculum for licensees and their employees authorized to sell alcohol-
ic  beverages  at  retail for on-premises consumption, and the form of a
certificate of completion or renewal thereof to be issued in respect  to
each such type of program. A certificate of completion or renewal there-
of  issued  by an entity authorized to give and administer an alcohol OR
SUBSTANCE USE DISORDER  training  awareness  program  pursuant  to  this
subdivision to licensees and their employees authorized to sell alcohol-
ic beverages at retail for off-premises consumption shall not be invali-
dated  by a change of employment to another such licensee. A certificate
of completion or renewal thereof issued by an entity authorized to  give
and  administer  an alcohol OR SUBSTANCE USE DISORDER training awareness
program pursuant to this subdivision to licensees  and  their  employees
authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
consumption shall not be invalidated by a change of employment to anoth-
er such licensee. Attendance at any course established pursuant to  this
section  shall  be  in  person,  through  distance  learning methods, or
through an internet based online program.
  § 53. Subdivision 10 of section 18 of the alcoholic  beverage  control
law,  as  amended by chapter 118 of the laws of 2012, is amended to read
as follows:
  10. To develop and establish minimum criteria for alcohol OR SUBSTANCE
USE DISORDER training awareness programs which may be given and adminis-
tered by schools; other  entities  including  trade  associations  whose
members  are  engaged  in  or  involved  in the retail sale of alcoholic
beverages; national and regional franchisors who have granted  at  least
five  franchises  in the state which are licensed to sell beer at retail
for off-premises consumption; licensees  authorized  to  sell  alcoholic
beverages  at retail for off-premises consumption operating five or more
licensed premises; and persons  interested,  whether  as  an  individual
proprietor or partner or officer or member of a limited liability compa-
ny,  in five or more licensees authorized to sell alcoholic beverages at
retail for off-premises consumption. The authority shall provide for the
issuance of  certificates  of  approval  to  all  certified  alcohol  OR
SUBSTANCE  USE  DISORDER  training  awareness  programs. Certificates of
approval may be revoked by the authority for failure to  adhere  to  the
authority's  rules  and  regulations.  Such  rules and regulations shall
afford those who have been issued a certificate of approval an  opportu-
nity  for  a  hearing prior to any determination of whether such certif-
icate should be revoked.
  No licensee shall be required to apply for  any  such  certificate  or
renewal  certificate  and  the licensee may voluntarily surrender such a
certificate or renewal certificate at any time. A fee in the  amount  of
nine  hundred  dollars shall be paid to the authority with each applica-
tion for a certificate of approval or renewal certificate. The authority
shall promptly refund such fee to an  applicant  whose  application  was
denied. Each certificate of approval and renewal thereof shall be issued
for a period of three years. To effectuate the provisions of this subdi-

A. 1617                            66

vision,  the  authority  is  empowered  to require in connection with an
application the submission of such  information  as  the  authority  may
direct;  to  prescribe forms of applications and of all reports which it
deems  necessary  to  be made by any applicant or certificate holder; to
conduct investigations; to require the maintenance  of  such  books  and
records  as  the authority may direct; to revoke, cancel, or suspend for
cause any certificate provided for  in  this  subdivision.  Each  entity
authorized  to  give and administer an alcohol OR SUBSTANCE USE DISORDER
training awareness program shall issue certificates of completion to all
licensees and employees who successfully complete such an approved alco-
hol OR SUBSTANCE USE DISORDER training awareness  program.  Such  entity
shall regularly transmit to the authority the names, addresses and dates
of  attendance  of  all  the  licensees  and  employees of licensees who
successfully complete an approved  alcohol  OR  SUBSTANCE  USE  DISORDER
training  awareness  program.    Such transmittal shall be in a form and
manner prescribed by the authority. The authority shall adopt rules  and
regulations  to effectuate the provisions of this subdivision, including
the minimum requirements  for  the  curriculum  of  each  such  training
program  and  the  regular ongoing training of employees holding certif-
icates of completion or renewal certificates. Such rules and regulations
shall include the minimum requirements for  a  separate  curriculum  for
licensees  and their employees authorized to sell alcoholic beverages at
retail for off-premises consumption, minimum requirements for a separate
curriculum for licensees and their employees authorized to sell alcohol-
ic beverages at retail for on-premises consumption, and the  form  of  a
certificate  of completion or renewal thereof to be issued in respect to
each such type of program. A certificate of completion or renewal there-
of issued by an entity authorized to give and administer an  alcohol  OR
SUBSTANCE  USE  DISORDER  training  awareness  program  pursuant to this
subdivision to licensees and their employees authorized to sell alcohol-
ic beverages at retail for off-premises consumption shall not be invali-
dated by a change of employment to another such licensee. A  certificate
of  completion or renewal thereof issued by an entity authorized to give
and administer an alcohol OR SUBSTANCE USE DISORDER  training  awareness
program  pursuant  to  this subdivision to licensees and their employees
authorized  to  sell  alcoholic  beverages  at  retail  for  on-premises
consumption shall not be invalidated by a change of employment to anoth-
er  such licensee. Attendance at any course established pursuant to this
section shall be  in  person,  through  distance  learning  methods,  or
through an internet based online program.
  §  54.  Section  18 of the alcoholic beverage control law, as added by
chapter 83 of the laws of 1995, is amended by adding a  new  subdivision
10 to read as follows:
  10. TO DEVELOP AND ESTABLISH MINIMUM CRITERIA FOR ALCOHOL OR SUBSTANCE
USE DISORDER TRAINING AWARENESS PROGRAMS WHICH MAY BE GIVEN AND ADMINIS-
TERED  BY  SCHOOLS;  OTHER  ENTITIES  INCLUDING TRADE ASSOCIATIONS WHOSE
MEMBERS ARE ENGAGED IN OR INVOLVED  IN  THE  RETAIL  SALE  OF  ALCOHOLIC
BEVERAGES;  NATIONAL  AND REGIONAL FRANCHISORS WHO HAVE GRANTED AT LEAST
FIVE FRANCHISES IN THE STATE WHICH ARE LICENSED TO SELL BEER  AT  RETAIL
FOR  OFF-PREMISES  CONSUMPTION;  LICENSEES  AUTHORIZED TO SELL ALCOHOLIC
BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION OPERATING FIVE OR  MORE
LICENSED  PREMISES;  AND  PERSONS  INTERESTED,  WHETHER AS AN INDIVIDUAL
PROPRIETOR OR PARTNER OR OFFICER OR MEMBER OF A LIMITED LIABILITY COMPA-
NY, IN FIVE OR MORE LICENSEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES  AT
RETAIL FOR OFF-PREMISES CONSUMPTION. THE AUTHORITY SHALL PROVIDE FOR THE
ISSUANCE  OF  CERTIFICATES  OF  APPROVAL  TO  ALL  CERTIFIED  ALCOHOL OR

A. 1617                            67

SUBSTANCE USE DISORDER  TRAINING  AWARENESS  PROGRAMS.  CERTIFICATES  OF
APPROVAL  MAY  BE  REVOKED BY THE AUTHORITY FOR FAILURE TO ADHERE TO THE
AUTHORITY'S RULES AND REGULATIONS.  SUCH  RULES  AND  REGULATIONS  SHALL
AFFORD  THOSE WHO HAVE BEEN ISSUED A CERTIFICATE OF APPROVAL AN OPPORTU-
NITY FOR A HEARING PRIOR TO ANY DETERMINATION OF  WHETHER  SUCH  CERTIF-
ICATE SHOULD BE REVOKED.
  NO  LICENSEE  SHALL  BE  REQUIRED TO APPLY FOR ANY SUCH CERTIFICATE OR
RENEWAL CERTIFICATE AND THE LICENSEE MAY VOLUNTARILY  SURRENDER  SUCH  A
CERTIFICATE  OR  RENEWAL CERTIFICATE AT ANY TIME. A FEE IN THE AMOUNT OF
NINE HUNDRED DOLLARS SHALL BE PAID TO THE AUTHORITY WITH  EACH  APPLICA-
TION FOR A CERTIFICATE OF APPROVAL OR RENEWAL CERTIFICATE. THE AUTHORITY
SHALL  PROMPTLY  REFUND  SUCH  FEE TO AN APPLICANT WHOSE APPLICATION WAS
DENIED. EACH CERTIFICATE OF APPROVAL AND RENEWAL THEREOF SHALL BE ISSUED
FOR A PERIOD OF THREE YEARS. TO EFFECTUATE THE PROVISIONS OF THIS SUBDI-
VISION, THE AUTHORITY IS EMPOWERED TO  REQUIRE  IN  CONNECTION  WITH  AN
APPLICATION  THE  SUBMISSION  OF  SUCH  INFORMATION AS THE AUTHORITY MAY
DIRECT; TO PRESCRIBE FORMS OF APPLICATIONS AND OF ALL REPORTS  WHICH  IT
DEEMS  NECESSARY  TO  BE MADE BY ANY APPLICANT OR CERTIFICATE HOLDER; TO
CONDUCT INVESTIGATIONS; TO REQUIRE THE MAINTENANCE  OF  SUCH  BOOKS  AND
RECORDS  AS  THE AUTHORITY MAY DIRECT; TO REVOKE, CANCEL, OR SUSPEND FOR
CAUSE ANY CERTIFICATE PROVIDED FOR  IN  THIS  SUBDIVISION.  EACH  ENTITY
AUTHORIZED  TO  GIVE AND ADMINISTER AN ALCOHOL OR SUBSTANCE USE DISORDER
TRAINING AWARENESS PROGRAM SHALL ISSUE CERTIFICATES OF COMPLETION TO ALL
LICENSEES AND EMPLOYEES WHO SUCCESSFULLY COMPLETE SUCH AN APPROVED ALCO-
HOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS  PROGRAM.  SUCH  ENTITY
SHALL REGULARLY TRANSMIT TO THE AUTHORITY THE NAMES, ADDRESSES AND DATES
OF  ATTENDANCE  OF  ALL  THE  LICENSEES  AND  EMPLOYEES OF LICENSEES WHO
SUCCESSFULLY COMPLETE AN APPROVED  ALCOHOL  OR  SUBSTANCE  USE  DISORDER
TRAINING  AWARENESS  PROGRAM.  SUCH  TRANSMITTAL  SHALL BE IN A FORM AND
MANNER PRESCRIBED BY THE AUTHORITY. THE AUTHORITY SHALL ADOPT RULES  AND
REGULATIONS  TO EFFECTUATE THE PROVISIONS OF THIS SUBDIVISION, INCLUDING
THE MINIMUM REQUIREMENTS  FOR  THE  CURRICULUM  OF  EACH  SUCH  TRAINING
PROGRAM  AND  THE  REGULAR ONGOING TRAINING OF EMPLOYEES HOLDING CERTIF-
ICATES OF COMPLETION OR RENEWAL CERTIFICATES. SUCH RULES AND REGULATIONS
SHALL INCLUDE THE MINIMUM REQUIREMENTS FOR  A  SEPARATE  CURRICULUM  FOR
LICENSEES  AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOLIC BEVERAGES AT
RETAIL FOR OFF-PREMISES CONSUMPTION, MINIMUM REQUIREMENTS FOR A SEPARATE
CURRICULUM FOR LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOL-
IC BEVERAGES AT RETAIL FOR ON-PREMISES CONSUMPTION, AND THE  FORM  OF  A
CERTIFICATE  OF COMPLETION OR RENEWAL THEREOF TO BE ISSUED IN RESPECT TO
EACH SUCH TYPE OF PROGRAM. A CERTIFICATE OF COMPLETION OR RENEWAL THERE-
OF ISSUED BY AN ENTITY AUTHORIZED TO GIVE AND ADMINISTER AN  ALCOHOL  OR
SUBSTANCE  USE  DISORDER  TRAINING  AWARENESS  PROGRAM  PURSUANT TO THIS
SUBDIVISION TO LICENSEES AND THEIR EMPLOYEES AUTHORIZED TO SELL ALCOHOL-
IC BEVERAGES AT RETAIL FOR OFF-PREMISES CONSUMPTION SHALL NOT BE INVALI-
DATED BY A CHANGE OF EMPLOYMENT TO ANOTHER SUCH LICENSEE.  A CERTIFICATE
OF COMPLETION OR RENEWAL THEREOF ISSUED BY AN ENTITY AUTHORIZED TO  GIVE
AND  ADMINISTER  AN ALCOHOL OR SUBSTANCE USE DISORDER TRAINING AWARENESS
PROGRAM PURSUANT TO THIS SUBDIVISION TO LICENSEES  AND  THEIR  EMPLOYEES
AUTHORIZED  TO  SELL  ALCOHOLIC  BEVERAGES  AT  RETAIL  FOR  ON-PREMISES
CONSUMPTION SHALL NOT BE INVALIDATED BY A CHANGE OF EMPLOYMENT TO ANOTH-
ER SUCH LICENSEE.  ATTENDANCE AT ANY COURSE ESTABLISHED PURSUANT TO THIS
SECTION SHALL BE  IN  PERSON,  THROUGH  DISTANCE  LEARNING  METHODS,  OR
THROUGH AN INTERNET BASED ONLINE PROGRAM.
  § 55. Section 150.75 of the criminal procedure law is REPEALED.

A. 1617                            68

  §  56.  Subdivision  (a)  of  section  712 of the family court act, as
amended by section 7 of part G of chapter 58 of the  laws  of  2010,  is
amended to read as follows:
  (a) "Person in need of supervision". A person less than eighteen years
of  age  who does not attend school in accordance with the provisions of
part one of article sixty-five of the education law or who is incorrigi-
ble, ungovernable  or  habitually  disobedient  and  beyond  the  lawful
control of a parent or other person legally responsible for such child's
care,  or  other  lawful  authority,  or  who violates the provisions of
section [221.05 or] 230.00 of the penal law, or  who  appears  to  be  a
sexually  exploited  child  as  defined  in paragraph (a), (c) or (d) of
subdivision one of section four  hundred  forty-seven-a  of  the  social
services law, but only if the child consents to the filing of a petition
under this article.
  §  57.  The state finance law is amended by adding a new section 99-ii
to read as follows:
  § 99-II. MARIHUANA MICROBUSINESS AND MARIHUANA LICENSE REVOLVING  LOAN
FUND.  1.  THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMP-
TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE  KNOWN
AS  THE  MARIHUANA  MICROBUSINESS  AND  MARIHUANA LICENSE REVOLVING LOAN
FUND.
  2. THE FUND SHALL CONSIST OF ALL MONIES APPROPRIATED FOR ITS  PURPOSE,
ALL  MONIES  TRANSFERRED  TO  SUCH  FUND  PURSUANT TO LAW AND ALL MONIES
REQUIRED BY THE PROVISIONS OF THIS SECTION OR ANY OTHER LAW TO  BE  PAID
INTO OR CREDITED TO THIS FUND, INCLUDING ALL MONIES RECEIVED BY THE FUND
OR  DONATED  TO  IT. MONIES IN THE FUND SHALL BE KEPT SEPARATE AND SHALL
NOT BE COMMINGLED  WITH  ANY  OTHER  MONIES  OTHERWISE  APPROPRIATED  OR
RECEIVED EXCEPT AS HEREBY PROVIDED.
  3.  MONIES  OF  THE  FUND,  WHEN  ALLOCATED, SHALL BE AVAILABLE TO THE
BUREAU OF MARIHUANA POLICY FOR THE PURPOSE  OF  PROVIDING  LOW  INTEREST
LOANS  TO  INDIVIDUALS AND BUSINESSES INTERESTED IN ESTABLISHING A MARI-
HUANA MICROBUSINESS OR OTHERWISE OBTAINING A LICENSE AVAILABLE FROM  THE
BUREAU OF MARIHUANA POLICY AND PARTICIPATING IN THE MARIHUANA INDUSTRY.
  4.  THE  BUREAU  OF MARIHUANA POLICY SHALL ESTABLISH THROUGH RULES AND
REGULATIONS GUIDELINES NECESSARY  TO  ADMINISTER  THE  FUND.  GUIDELINES
SHALL  INCLUDE, BUT NOT BE LIMITED TO: QUALIFICATIONS AND CONDITIONS FOR
ASSISTANCE; TERMS OF LOAN OR INSTALLMENT PAYMENTS AND FINANCE CHARGES ON
INSTALLMENT PAYMENTS AT RATES OF  INTEREST  WHICH,  NOTWITHSTANDING  ANY
OTHER  PROVISION OF LAW, ARE OF THE LOWEST RATE POSSIBLE TO MAINTAIN THE
FUND; PRIORITIZE LOANS TO PROMOTE RACIAL, ETHNIC, AND  GENDER  DIVERSITY
IN  LICENSES  FOR  MARIHUANA RELATED ACTIVITIES; AND ANY OTHER TERMS AND
CONDITIONS THE BUREAU MAY REQUIRE AS NECESSARY  TO  PROPERLY  EFFECTUATE
THE PROVISIONS OF THIS SECTION.
  5. THE BUREAU OF MARIHUANA POLICY SHALL MAKE PUBLIC BY SEPTEMBER FIRST
OF  EACH YEAR A REPORT INCLUDING, BUT NOT LIMITED TO: THE CURRENT GUIDE-
LINES OF THE FUND; A COMPLETE FINANCIAL  STATEMENT  INCLUDING,  BUT  NOT
LIMITED  TO,  MONIES ALLOCATED, COLLECTED, TRANSFERRED OR OTHERWISE PAID
OR CREDITED TO THE FUND; A PROJECTED SCHEDULE OF DISBURSEMENTS, RECEIPTS
AND NEEDS OF THE FUND FOR THE NEXT FISCAL YEAR; AND THE NAMES AND  BUSI-
NESS ADDRESSES OF EACH CURRENT LOAN RECIPIENT.
  6.  NO MONIES SHALL BE PAYABLE FROM THIS FUND, EXCEPT ON THE AUDIT AND
WARRANT OF THE COMPTROLLER ON VOUCHERS CERTIFIED AND  SUBMITTED  BY  THE
BUREAU OF MARIHUANA POLICY.
  §  58. Appropriation.  The sum of five million dollars ($5,000,000) is
hereby appropriated to the New York State Liquor Authority  out  of  any
moneys  in  the  state treasury in the general fund to the credit of the

A. 1617                            69

state purposes account, not otherwise appropriated, and made immediately
available, for the purpose of carrying out the provisions of  this  act.
Such moneys shall be payable on the audit and warrant of the comptroller
on  vouchers certified or approved by the superintendent or the chairman
of the New York State Liquor Authority in the manner prescribed by law.
  § 59. Severability. If any provision or term of this act  is  for  any
reason  declared unconstitutional or invalid or ineffective by any court
of competent jurisdiction, such decision shall not affect  the  validity
of  the  effectiveness of the remaining portions of this act or any part
thereof.
  § 60. This act shall take effect immediately; provided, however,  that
the  amendments to section 17 of the alcoholic beverage control law made
by section fifty-one of this act shall not  affect  the  expiration  and
reversion of such section and shall expire and be deemed repealed there-
with,  when  upon  such date the provisions of section fifty-two of this
act shall take effect; provided further, however, that the amendments to
section 18 of the alcoholic beverage control law made by section  fifty-
three  of this act shall not affect the expiration and reversion of such
section and shall expire and be deemed  repealed  therewith,  when  upon
such  date  the  provisions of section fifty-four of this act shall take
effect.

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

                                 1617--A

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2019
                               ___________

Introduced  by  M.  of  A.  PEOPLES-STOKES,  GOTTFRIED, LUPARDO, WRIGHT,
  WEPRIN, HUNTER, HYNDMAN, PICHARDO, BLAKE, L. ROSENTHAL, JAFFEE, DINOW-
  ITZ, JEAN-PIERRE, ABINANTI, RICHARDSON, HEVESI, WALKER,  VANEL,  NIOU,
  BICHOTTE, CAHILL, LIFTON, EPSTEIN, QUART, ORTIZ, REYES, DICKENS, FRON-
  TUS,  CRUZ,  SOLAGES,  RAYNOR,  RODRIGUEZ, FERNANDEZ, ARROYO, BRONSON,
  DE LA ROSA, FALL, CARROLL, LENTOL, DenDEKKER, RAMOS -- Multi-Sponsored
  by -- M. of A.  MOSLEY, SEAWRIGHT, SIMON, STECK, TAYLOR --  read  once
  and  referred  to the Committee on Codes -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN ACT in relation to constituting chapter 7-A of the consolidated laws,
  in relation to the creation of a new office of cannabis management, as
  an  independent  entity  within  the  division  of  alcoholic beverage
  control, providing for the licensure of persons authorized  to  culti-
  vate, process, distribute and sell cannabis and the use of cannabis by
  persons  aged  twenty-one or older; to amend the public health law, in
  relation to the description of cannabis; to amend the  penal  law,  in
  relation  to  the  growing  and  use of cannabis by persons twenty-one
  years of age or older; to amend the tax law, in relation to  providing
  for  the levying of taxes on cannabis; to amend the criminal procedure
  law, the civil practice law and rules, the general business  law,  the
  state  finance  law,  the  executive law, the penal law, the alcoholic
  beverage control law, the general obligations law, the social services
  law, the agriculture and markets law and the vehicle and traffic  law,
  in  relation  to making conforming changes; to amend the public health
  law, in relation to the definition of  smoking;  to  amend  the  state
  finance  law,  in relation to establishing the New York state cannabis
  revenue fund, the New York state drug treatment and  public  education
  fund  and  the  New  York state community grants reinvestment fund; to
  amend chapter 90 of the laws of 2014 amending the public  health  law,
  the  tax  law,  the  state  finance law, the general business law, the
  penal law and the criminal procedure law relating to  medical  use  of
  marihuana, in relation to the effectiveness thereof; to repeal certain
  provisions  of  the  public health law relating to growing of cannabis

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD07592-05-9

A. 1617--A                          2

  and medical use of marihuana; to repeal article 221 of the  penal  law
  relating  to  offenses involving marihuana; to repeal paragraph (f) of
  subdivision 2 of section 850 of the general business law  relating  to
  drug related paraphernalia; to repeal certain provisions of the crimi-
  nal  procedure law relating to certain criminal actions; and to repeal
  certain provisions of the agriculture  and  markets  law  relating  to
  industrial hemp

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

  Section 1. This act shall be known and may be cited as the  "marihuana
regulation and taxation act".
  §  2.  Chapter  7-A  of  the  consolidated laws is enacted, to read as
follows:

                  CHAPTER 7-A OF THE CONSOLIDATED LAWS
                              CANNABIS LAW
                                ARTICLE 1
              SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT;
                               DEFINITIONS

Section 1. Short title.
        2. Legislative findings and intent
        3. Definitions.

  Section 1. Short title.  This chapter shall be known and may be  cited
and referred to as the "cannabis law".
  §  2.  Legislative  findings  and intent.   The legislature finds that
existing marihuana laws have not been beneficial to the welfare  of  the
general public. Existing laws have been ineffective in reducing or curb-
ing  marihuana  use  and have instead resulted in devastating collateral
consequences 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.

A. 1617--A                          3

  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 marihuana use, or activity made lawful by this act.   A
newborn  child's positive toxicology result for marihuana, is not suffi-
cient  on its own to support a finding of child neglect or abuse. Enact-
ment of this act shall provide sufficient 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.
  § 3. Definitions. Whenever used  in  this  chapter,  unless  otherwise
expressly  stated  or  unless  the  context or subject matter requires a
different meaning, the following terms  shall  have  the  representative
meanings hereinafter set forth or indicated:
  1.  "Applicant"  means  a  resident  of New York state aged twenty-one
years or older applying for any cannabis or hemp license or special  use
permit issued by the office of cannabis management.
  2.  "Cannabinoid  extractor"  means a person licensed by the office to
acquire, possess, extract and manufacture hemp  cannabis  from  licensed
cannabinoid  growers  for  the  manufacture  and  sale  of hemp cannabis
products marketed for cannabinoid content and used or intended for human
or animal consumption or use.
  3. "Cannabinoid grower" means a person licensed by the office, and  in
compliance  with article twenty-nine of the agriculture and markets law,
to acquire, possess, cultivate, and sell hemp cannabis for its  cannabi-
noid content.
  4.  "Cannabis"  means  all  parts  of the plant of the genus Cannabis,
whether growing or not; the seeds thereof; the resin extracted from  any
part  of  the  plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds or resin.   It does  not
include  the mature stalks of the plant, fiber produced from the stalks,
oil or cake made from the seeds of the plant, any other compound,  manu-
facture,  salt, derivative, mixture, or preparation of the mature stalks
(except the resin extracted therefrom), fiber,  oil,  or  cake,  or  the
sterilized seed of the plant which is incapable of germination.  It does
not include hemp cannabis as defined by this section.
  5. "Cannabis consumer" means a person twenty-one years of age or older
acting in accordance with any provision of this chapter.
  6. "Cannabis flower" means the flower of a plant of the genus Cannabis
that  has  been harvested, dried, and cured, and prior to any processing
whereby the plant material is transformed into a concentrate, including,
but not limited to, concentrated cannabis, or an edible or topical prod-
uct containing cannabis or concentrated cannabis and other  ingredients.
Cannabis flower excludes leaves and stem.
  7.  "Cannabis product" or "adult-use cannabis" means cannabis, concen-
trated cannabis, and cannabis-infused products for  use  by  a  cannabis
consumer.
  8.  "Cannabis-infused products" means products that have been manufac-
tured and contain either cannabis or  concentrated  cannabis  and  other
ingredients that are intended for use or consumption.
  9.  "Cannabis trim" means all parts of the plant of the genus Cannabis
other than cannabis flower that have been harvested, dried,  and  cured,
but prior to any further processing.

A. 1617--A                          4

  10.  "Caring for" means treating a patient, in the course of which the
practitioner has completed a full assessment of  the  patient's  medical
history and current medical condition.
  11. "Certification" means a certification made under this chapter.
  12.  "Certified medical use" includes the acquisition, administration,
cultivation, manufacture, delivery,  harvest,  possession,  preparation,
transfer,  transportation,  or use of cannabis or paraphernalia relating
to the administration of cannabis to  treat  or  alleviate  a  certified
patient's  medical  condition  or symptoms associated with the patient's
medical condition.
  13. "Certified patient" means a patient who is a resident of New  York
state or receiving care and treatment in New York state as determined by
the  executive director in regulation, and is certified under this chap-
ter.
  14. "Commercial cannabis activity" means the production,  cultivation,
manufacturing,  processing,  possession,  storing,  laboratory  testing,
packaging, labeling, transportation, delivery, or sale of  cannabis  and
cannabis products as provided for in this chapter.
  15.  "Concentrated  cannabis"  means: (a) the separated resin, whether
crude or purified, obtained from a plant of the genus Cannabis; or (b) a
material,  preparation,  mixture,  compound  or  other  substance  which
contains more than three percent by weight of delta-9 tetrahydrocannabi-
nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
system.
  16.  "Condition" means having one of the following conditions: cancer,
positive status for human  immunodeficiency  virus  or  acquired  immune
deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease,
multiple sclerosis, damage to the nervous tissue of the spinal cord with
objective  neurological  indication of intractable spasticity, epilepsy,
inflammatory bowel disease, neuropathies,  Huntington's  disease,  post-
traumatic  stress  disorder,  pain  that  degrades health and functional
capability where the use of medical cannabis is an alternative to opioid
use, substance use disorder, Alzheimer's, muscular dystrophy,  dystonia,
rheumatoid  arthritis,  autism  or  any other condition certified by the
practitioner.
  17. "Cultivation" means growing, cloning, harvesting, drying,  curing,
grading, and trimming of cannabis plants for sale to certain other cate-
gories of cannabis license- and permit-holders.
  18.  "Delivery"  means  the  direct delivery of cannabis products by a
retail licensee, microbusiness licensee, or delivery permit holder to  a
cannabis consumer.
  19.  "Designated caregiver facility" means a general hospital or resi-
dential health care facility operating pursuant to article  twenty-eight
of  the  public health law; an adult care facility operating pursuant to
title two of article seven of  the  social  services  law;  a  community
mental  health  residence  established  pursuant to section 41.44 of the
mental hygiene law; a hospital operating pursuant to section 7.17 of the
mental hygiene law; a mental  hygiene  facility  operating  pursuant  to
article  thirty-one  of the mental hygiene law; an inpatient or residen-
tial treatment program certified pursuant to article thirty-two  of  the
mental hygiene law; a residential facility for the care and treatment of
persons  with  developmental  disabilities operating pursuant to article
sixteen of the mental hygiene law; a residential treatment facility  for
children  and  youth  operating  pursuant  to  article thirty-one of the
mental hygiene law; a private or  public  school;  research  institution

A. 1617--A                          5

with  an  internal  review board; or any other facility as determined by
the executive director in regulation; that registers with the office  to
assist  one or more certified patients with the acquisition, possession,
delivery, transportation or administration of medical cannabis.
  20.  "Designated caregiver" means an individual designated by a certi-
fied patient in a registry application. A certified patient  may  desig-
nate  up  to five designated caregivers.  The five designated caregivers
need not include  the  employees  of  a  designated  caregiver  facility
already authorized to assist certified patients.
  21. "Distributor" means any person who sells at wholesale any cannabis
product,  except  medical  cannabis,  for the sale of which a license is
required under the provisions of this chapter.
  22. "Executive director" means the executive director of the office of
cannabis management.
  23. "Form of medical cannabis" means characteristics  of  the  medical
cannabis  recommended  or  limited  for  a particular certified patient,
including the method of consumption and any particular strain,  variety,
and quantity or percentage of cannabis or particular active ingredient.
  24. "Hemp cannabis" means the plant Cannabis sativa L. and any part of
such  plant,  including the seeds thereof and all derivatives, extracts,
cannabinoids, isomers, acids, salts, and salts of isomers, whether grow-
ing or not, with a delta-9  tetrahydrocannabinol  concentration  of  not
more  than  an  amount  determined  by the office in regulation, used or
intended for human or animal consumption  or  use  for  its  cannabinoid
content,  as  determined  by  the executive director in regulation. Hemp
cannabis excludes industrial hemp used or intended  exclusively  for  an
industrial purpose.
  25.  "Industrial hemp" means the plant Cannabis sativa L. and any part
of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
extracts,  cannabinoids,  isomers,  acids,  salts, and salts of isomers,
whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
tration  of  not  more  than three-tenths of one percent on a dry weight
basis, used or intended for an industrial purpose.
  26. "Labor peace agreement" means an agreement between an entity and a
labor organization that, at a minimum, protects the state's  proprietary
interests  by  prohibiting labor organizations and members from engaging
in picketing, work stoppages, boycotts, and any other economic interfer-
ence with the registered organization's business.
  27. "Laboratory testing facility"  means  any  independent  laboratory
capable  of  testing  cannabis  and  cannabis products for adult-use and
medical-use; hemp cannabis; or for all categories of cannabis and canna-
bis products as per regulations set forth by the office.
  28. "License" means a written authorization issued by  the  office  of
cannabis management permitting persons to engage in a specified activity
with respect to controlled substances.
  29.  "Medical  cannabis"  means  cannabis  as defined in this section,
intended for a certified medical use, as  determined  by  the  executive
director in consultation with the commissioner of health.
  30.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
producer for the cultivation of cannabis, a cannabis  processor,  and  a
cannabis  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 its cannabis  and  cannabis
products  to other licensed cannabis businesses and may deliver cannabis
and cannabis products to customers.

A. 1617--A                          6

  31. "Nursery" means a licensee that  produces  only  clones,  immature
plants, seeds, and other agricultural products used specifically for the
planting, propagation, and cultivation of cannabis.
  32.  "Office"  or  "office  of cannabis management" means the New York
state office of cannabis management.
  33. "On-site consumption" means the consumption of cannabis in an area
licensed for such activity by the office.
  34. "Owner" means an individual with an aggregate  ownership  interest
of  twenty  percent  or more in a cannabis business licensed pursuant to
this chapter, unless such interest is solely a security, lien, or encum-
brance, or an individual that will be participating  in  the  direction,
control, or management of the licensed cannabis business.
  35.  "Package"  means  any  container  or  receptacle used for holding
cannabis or cannabis products.
  36. "Permit" means a permit issued pursuant to this chapter.
  37. "Permittee" means any person to whom  a  permit  has  been  issued
pursuant to this chapter.
  38.  "Practitioner"  means  a  practitioner  who: (i) is authorized to
prescribe controlled substances within the state, (ii)  by  training  or
experience  is  qualified  to  treat patients; and (iii) completes, at a
minimum, a two-hour course as determined by the  executive  director  in
regulation.    A person's status as a practitioner under this chapter is
deemed to be a "license" for purposes of  section  thirty-three  hundred
ninety of the public health law and shall be subject to the same revoca-
tion process.
  39.  "Processor"  means  a  licensee that compounds, blends, extracts,
infuses, or otherwise manufactures  concentrated  cannabis  or  cannabis
products,  but  not  the  cultivation  of  the cannabis contained in the
cannabis product.
  40. "Registered organization" means an organization  registered  under
article four of this chapter.
  41. "Registry application" means an application properly completed and
filed  with  the  office  of  cannabis management by a certified patient
under article three of this chapter.
  42. "Registry identification card" means a document that identifies  a
certified  patient or designated caregiver, as provided under this chap-
ter.
  43. "Retail sale" means to solicit or receive an order for, to keep or
expose for sale, and to keep with intent to sell, made  by  any  person,
whether  principal,  proprietor,  agent,  or  employee, of any cannabis,
cannabis product, or hemp cannabis product to a  cannabis  consumer  for
any purpose other than resale.
  44. "Retailer" means any person who sells at retail any cannabis prod-
uct,  the  sale  of  which a license is required under the provisions of
this chapter.
  45. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
any other  matter  or  substance  which  contains  tobacco  or  cannabis
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.
  46.  "Warehouse" means and includes a place in which cannabis products
are housed or stored.
  47. "Wholesale" means to solicit or receive an order for, to  keep  or
expose  for  sale,  and to keep with intent to sell, made by any person,
whether principal, proprietor, agent,  or  employee  of  any  adult-use,
medical-use, or hemp cannabis product for purposes of resale.

A. 1617--A                          7

                                ARTICLE 2
              NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT

Section 9. Establishment of an office of cannabis management.
        10. Executive director.
        11. Functions,  powers  and  duties  of the office and executive
              director.
        12. Rulemaking authority.
        13. State cannabis advisory board.
        14. Disposition of moneys received for license fees.
        15. Legal presumptions.
        16. Violations of cannabis laws or  regulations;  penalties  and
              injunctions.
        17. Formal hearings; notice and procedure.
        18. Ethics, transparency and accountability.
  § 9. Establishment of an office of cannabis management. There is here-
by  established,  within  the division of alcoholic beverage control, an
independent office of cannabis management, which  shall  have  exclusive
jurisdiction to exercise the powers and duties provided by this chapter.
The  office  shall  exercise  its  authority by and through an executive
director.
  § 10. Executive director.  The executive director shall  be  appointed
by  the  governor and confirmed by the senate. The executive director of
the state office of cannabis management shall receive an  annual  salary
not to exceed an amount appropriated therefor by the legislature and his
or  her expenses actually and necessarily incurred in the performance of
official duties, unless otherwise provided by the legislature.
  § 11. Functions, powers and duties of the office and executive  direc-
tor.    The  office of cannabis management, by and through its executive
director, shall have the following powers and duties:
  1. To issue or refuse to issue any  registration,  license  or  permit
provided for in this chapter.
  2. To issue temporary or provisional licenses.
  3.  To limit, or not to limit, in the executive director's discretion,
the number of registrations, licenses and permits of each  class  to  be
issued  within  the  state  or any political subdivision thereof, and in
connection therewith to prohibit the acceptance of applications for such
classes which have been so limited.   Such  limitations  shall  consider
consumer access, market demand, and geographic diversity.
  4.  To  develop  testing standards and certify testing laboratories in
the state.
  5. To regulate advertising, marketing, branding, packaging, and label-
ing, including regulating the accuracy of information about cannabis and
cannabis products and restricting marketing and advertising to youth.
  6. To revoke, cancel or suspend for cause any  registration,  license,
or permit issued under this chapter and/or to impose a civil penalty for
cause  against  any  holder of a registration, license, or permit issued
pursuant to this chapter.
  7. To fix by rule the  standards  of  cultivation  and  processing  of
medical  cannabis,  adult  use cannabis and hemp cannabis, including but
not limited to, the  ability  to  regulate  potency  and  the  types  of
products  which may be manufactured and/or processed, in order to ensure
the health and safety of the public and the use  of  proper  ingredients
and methods in the manufacture of all medical cannabis, adult use canna-
bis, and hemp cannabis to be sold or consumed in the state.

A. 1617--A                          8

  8.  To  hold  hearings,  subpoena  witnesses, compel their attendance,
administer oaths, to examine any person under  oath  and  in  connection
therewith  to require the production of any books or records relative to
the inquiry. A subpoena issued under this section shall be regulated  by
the civil practice law and rules.
  9. To appoint any necessary directors, deputies, counsels, assistants,
investigators,  and other employees within the limits provided by appro-
priation.  Investigators so employed by the office shall be deemed to be
peace officers for the purpose of enforcing the provisions of the canna-
bis control law or judgements or orders obtained for violation  thereof,
with  all the powers set forth in section 2.20 of the criminal procedure
law.
  10. To remove any employee of the office for cause, after giving  such
employee  a  copy  of  the charges against him or her in writing, and an
opportunity to be heard thereon. Any action taken under this subdivision
shall be subject to and in accordance with the civil service law.
  11. To inspect or provide for the inspection at any time of any  prem-
ises  where  medical  cannabis,  adult use cannabis, or hemp cannabis is
cultivated, processed, stored, distributed or sold.
  12. To prescribe forms of applications for registrations, licenses and
permits under this chapter and of all reports deemed  necessary  by  the
office.
  13.  To  delegate  the  powers  provided in this section to such other
officers or employees or other state agencies as may be deemed appropri-
ate by the executive director.
  14. To appoint such advisory groups and committees  as  the  executive
director  deems  necessary  to provide assistance to the office to carry
out the purposes and objectives of this chapter.
  15. To exercise the powers and perform the duties in relation  to  the
administration of the office as are necessary but not specifically vest-
ed  by  this  chapter, including but not limited to budgetary and fiscal
matters.
  16. To develop and establish minimum criteria for certifying employees
to work in the cannabis  industry,  including  the  establishment  of  a
cannabis workers certification program.
  17.  To  enter  into contracts, memoranda of understanding, and agree-
ments as deemed appropriate by the executive director to effectuate  the
policy and purpose of this chapter.
  18.  To  issue  and  administer low interest or zero-interest loans to
qualified social equity applicants.
  19. If the executive director finds that  public  health,  safety,  or
welfare imperatively requires emergency action, and incorporates a find-
ing  to  that effect in an order, summary suspension of a license may be
ordered, effective on the date specified in such order or  upon  service
of  a  certified  copy of such order on the licensee, whichever shall be
later,  pending  proceedings  for  revocation  or  other  action.  These
proceedings  shall  be  promptly instituted and determined. In addition,
the executive director may order the administrative seizure of  product,
issue a stop order, or take any other action necessary to effectuate and
enforce the policy and purpose of this chapter.
  20.  To  issue regulations, declaratory rulings, guidance and industry
advisories.
  § 12. Rulemaking authority.  1. The office shall  perform  such  acts,
prescribe  such  forms and propose such rules, regulations and orders as
it may deem necessary or proper to fully effectuate  the  provisions  of
this chapter.

A. 1617--A                          9

  2. The office shall have the power to promulgate any and all necessary
rules  and  regulations governing the cultivation, manufacture, process-
ing,  transportation,  distribution,  testing,  delivery,  and  sale  of
medical  cannabis,  adult use cannabis, and hemp cannabis, including but
not  limited  to the registration of organizations authorized to traffic
in medical cannabis, the licensing and/or permitting of adult-use canna-
bis cultivators, processors, cooperatives,  distributors,  laboratories,
and retailers, and the licensing of hemp cannabis producers and process-
ors, including, but not limited to:
  (a) prescribing forms and establishing application, reinstatement, and
renewal fees;
  (b)  the  qualifications  and  selection  criteria  for  registration,
licensing, or permitting;
  (c) the books and records to be created and maintained  by  registered
organizations,  licensees,  and  permittees, including the reports to be
made thereon to the office, and inspection of  any  and  all  books  and
records maintained by any registered organization, licensee, or permitee
and  on the premise of any registered organization, licensee, or permit-
tee;
  (d) methods of producing, processing, and packaging cannabis,  medical
cannabis,  cannabis-infused  products,  concentrated  cannabis, and hemp
cannabis; conditions of sanitation, and standards of ingredients, quali-
ty, and identity of cannabis products cultivated,  processed,  packaged,
or sold by registered organizations and licensees;
  (e)  security  requirements for adult-use cannabis retail dispensaries
and premises where cannabis products, medical cannabis, and hemp  canna-
bis,  are  cultivated, produced, processed, or stored, and safety proto-
cols for registered organizations, licensees and their employees; and
  (f) hearing procedures and additional causes for cancellation, revoca-
tion, and/or civil penalties against any person registered, licensed, or
permitted by the authority.
  3. The office shall promulgate rules and regulations that are designed
to:
  (a) prevent the distribution of adult-use cannabis  to  persons  under
twenty-one years of age;
  (b) prevent the revenue from the sale of cannabis from going to crimi-
nal enterprises, gangs, and cartels;
  (c) prevent the diversion of cannabis from this state to other states;
  (d) prevent cannabis 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  drugged  driving  and  the exacerbation of other adverse
public health consequences associated with the use of cannabis;
  (f) prevent the growing of cannabis on public lands; and
  (g) prevent the possession and use of cannabis on federal property.
  4. The office, in consultation with the department of agriculture  and
markets  and the department of environmental conservation, shall promul-
gate necessary rules and regulations governing the  safe  production  of
cannabis,  including environmental and energy standards and restrictions
on the use of pesticides.
  § 13. State cannabis advisory board.  1. The executive director  shall
establish  within  the  office  a state cannabis advisory board prior to
engaging in rulemaking, which may consider all matters submitted  to  it
by  the executive director, and advise the office and the legislature on
cannabis cultivation, processing, distribution, transport, equity in the

A. 1617--A                         10

cannabis industry, public health concerns related to  cannabis,  and  on
the testing and sale of cannabis and cannabis products.
  2. The executive director of the office shall serve as the chairperson
of  the  board.  The  vice  chairperson  shall be elected from among the
members of the board by the members of such board, and  shall  represent
the  board in the absence of the chairperson at all official board func-
tions.
  3. The members of the board shall be appointed by the temporary presi-
dent of the senate and the speaker of the assembly and shall receive  no
compensation  for  their  services but shall be allowed their actual and
necessary expenses incurred in the performance of their duties as  board
members.
  4.  The  executive  director shall promulgate regulations establishing
the number of members on the board, the term of the  board  members  and
any  other  terms  or  conditions  regarding the state cannabis advisory
board.
  5. Every effort shall be made to ensure a balanced and diverse  board,
which  shall  have  expertise in public and behavioral health, substance
use disorder treatment, effective rehabilitative  treatment  for  adults
and  juveniles,  economic  development,  environmental conservation, job
training and placement, criminal justice, and drug policy. Further,  the
board shall include residents from communities most impacted by cannabis
prohibition,  people with prior drug convictions, the formerly incarcer-
ated, and representatives of organizations serving communities  impacted
by past federal and state drug policies.
  §  14.  Disposition  of  moneys received for license fees.  The office
shall establish a scale of application,  licensing,  and  renewal  fees,
based upon the cost of enforcing this chapter and the size of the canna-
bis business being licensed, as follows:
  1.  The office shall charge each registered organization, licensee and
permittee a registration, licensure or permit fee, and renewal  fee,  as
applicable.    The  fees may vary depending upon the nature and scope of
the different registration, licensure and permit activities.
  2. The total fees assessed pursuant to this chapter shall be set at an
amount that will generate sufficient total revenue  to,  at  a  minimum,
fully cover the total costs of administering this chapter.
  3.  All registration and licensure fees shall be set on a scaled basis
by the office, dependent on the size and capacity of the business.
  4. The office shall deposit all fees collected in the New  York  state
cannabis  revenue fund established pursuant to section ninety-nine-hh of
the state finance law.
  § 15. Legal presumptions.   The action,  proceedings,  authority,  and
orders of the office in enforcing the provisions of the cannabis law and
applying  them  to  specific  cases shall at all times be regarded as in
their nature judicial, and shall be treated  as  prima  facie  just  and
legal.
  §  16.  Violations  of  cannabis  laws  or  regulations; penalties and
injunctions.  1. A person who willfully violates any provision  of  this
chapter,  or  any  regulation lawfully made or established by any public
officer under authority of this chapter, the  punishment  for  violating
which  is  not otherwise prescribed by this chapter or any other law, is
punishable by imprisonment not exceeding one year,  or  by  a  fine  not
exceeding five thousand dollars or by both.
  2.  Any  person  who  violates,  disobeys  or  disregards  any term or
provision of this chapter or of any lawful notice, order  or  regulation
pursuant  thereto  for  which a civil penalty is not otherwise expressly

A. 1617--A                         11

prescribed by law, shall be liable to the people  of  the  state  for  a
civil  penalty  of  not  to  exceed five thousand dollars for every such
violation.
  3.  The penalty provided for in subdivision one of this section may be
recovered by an action brought by the executive director in any court of
competent jurisdiction.
  4. Such civil penalty may be released or compromised by the  executive
director  before  the  matter has been referred to the attorney general,
and where such matter has been referred to  the  attorney  general,  any
such  penalty may be released or compromised and any action commenced to
recover the same may be settled and discontinued by the attorney general
with the consent of the executive director.
  5. It shall be the duty of the attorney general upon  the  request  of
the  executive director to bring an action for an injunction against any
person who violates, disobeys or disregards any  term  or  provision  of
this chapter or of any lawful notice, order or regulation pursuant ther-
eto;  provided,  however,  that the executive director shall furnish the
attorney general with such material, evidentiary matter or proof as  may
be  requested  by  the  attorney  general for the prosecution of such an
action.
  6. It is the purpose of this section to provide additional and cumula-
tive remedies, and nothing  herein  contained  shall  abridge  or  alter
rights  of  action  or remedies now or hereafter existing, nor shall any
provision of this section,  nor  any  action  done  by  virtue  of  this
section,  be construed as estopping the state, persons or municipalities
in the exercising of their respective rights.
  § 17. Formal hearings; notice and procedure.  1. The executive  direc-
tor,  or any person designated by him or her for this purpose, may issue
subpoenas and administer oaths in connection with any hearing or  inves-
tigation  under or pursuant to this chapter, and it shall be the duty of
the executive director and any persons designated by him or her for such
purpose to issue subpoenas at the request of  and  upon  behalf  of  the
respondent.
  2. The executive director and those designated by him or her shall not
be  bound by the laws of evidence in the conduct of hearing proceedings,
but the determination shall  be  founded  upon  sufficient  evidence  to
sustain it.
  3.  Notice  of  hearing shall be served at least fifteen days prior to
the date of the hearing, provided that, whenever because  of  danger  to
the  public  health,  safety  or  welfare  it appears prejudicial to the
interests of the people of the state to delay action for  fifteen  days,
the  executive director may serve the respondent with an order requiring
certain action or the cessation of  certain  activities  immediately  or
within a specified period of less than fifteen days.
  4.  Service  of  notice  of hearing or order shall be made by personal
service or by registered or certified mail. Where  service,  whether  by
personal  service  or  by  registered or certified mail, is made upon an
incompetent, partnership, or corporation, it  shall  be  made  upon  the
person  or  persons  designated  to  receive personal service by article
three of the civil practice law and rules.
  5. At a hearing, the respondent may appear personally, shall have  the
right of counsel, and may cross-examine witnesses against him or her and
produce evidence and witnesses in his or her behalf.
  6.  Following  a  hearing, the executive director may make appropriate
determinations and issue a final order in accordance therewith.

A. 1617--A                         12

  7. The executive director may adopt, amend and  repeal  administrative
rules  and  regulations  governing  the  procedures  to be followed with
respect to hearings, such rules to be consistent  with  the  policy  and
purpose  of  this  chapter and the effective and fair enforcement of its
provisions.
  8.  The provisions of this section shall be applicable to all hearings
held pursuant to this chapter, except where  other  provisions  of  this
chapter  applicable  thereto  are inconsistent therewith, in which event
such other provisions shall apply.
  § 18. Ethics, transparency and  accountability.    No  member  of  the
office  or any officer, deputy, assistant, inspector or employee thereof
shall have any interest, direct or indirect, either  proprietary  or  by
means  of  any  loan, mortgage or lien, or in any other manner, in or on
any premises where adult use cannabis, medical cannabis or hemp cannabis
is cultivated, processed, distributed or sold; nor shall he or she  have
any  interest,  direct  or indirect, in any business wholly or partially
devoted to the cultivation, processing, distribution, sale,  transporta-
tion  or  storage of adult use cannabis, medical cannabis or hemp canna-
bis, or own any stock in any corporation which has any interest, propri-
etary or otherwise, direct or indirect, in any premises where adult  use
cannabis,  medical  cannabis  or hemp cannabis is cultivated, processed,
distributed or sold, or in any business wholly or partially  devoted  to
the cultivation, processing, distribution, sale, transportation or stor-
age of adult use cannabis, medical cannabis or hemp cannabis, or receive
any commission or profit whatsoever, direct or indirect, from any person
applying  for  or  receiving  any license or permit provided for in this
chapter, or hold any other elected or appointed  public  office  in  the
state  or  in  any political subdivision. Anyone who violates any of the
provisions of this section shall be removed and shall divulge themselves
of such direct or indirect interests, in addition to any  other  penalty
provided by law.

                                ARTICLE 3
                            MEDICAL CANNABIS

Section 30. Certification of patients.
        31. Lawful medical use.
        32. Registry identification cards.
        33. Registration as a designated caregiver facility.
        34. Registered organizations.
        35. Registering of registered organizations.
        36. Intentionally omitted.
        37. Reports of registered organizations.
        38. Evaluation; research programs; report by office.
        39. Cannabis research license.
        40. Registered organizations and adult-use cannabis.
        41. Relation to other laws.
        42. Protections for the medical use of cannabis.
        43. Regulations.
        44. Suspend; terminate.
        45. Pricing.
  §  30. Certification of patients.  1. A patient certification may only
be issued if:
  (a) the patient has a condition,  which  shall  be  specified  in  the
patient's health care record;

A. 1617--A                         13

  (b)  the  practitioner by training or experience is qualified to treat
the condition;
  (c)  the  patient  is under the practitioner's continuing care for the
condition; and
  (d) in the practitioner's professional  opinion  and  review  of  past
treatments,  the  patient is likely to receive therapeutic or palliative
benefit from the primary or adjunctive treatment  with  medical  use  of
cannabis for the condition.
  2.  The  certification  shall include: (a) the name, date of birth and
address of the patient; (b) a statement that the patient has a condition
and the patient is under the practitioner's care for the condition;  (c)
a  statement  attesting that all requirements of subdivision one of this
section have been satisfied; (d) the date; and (e)  the  name,  address,
telephone  number, and the signature of the certifying practitioner. The
executive director may require  by  regulation  that  the  certification
shall be on a form provided by the office. The practitioner may state in
the  certification that, in the practitioner's professional opinion, the
patient would benefit from medical cannabis only until a specified date.
The practitioner may state in the certification that, in the practition-
er's professional opinion, the patient is terminally ill  and  that  the
certification shall not expire until the patient dies.
  3.  In  making a certification, the practitioner may consider the form
of medical cannabis the patient should consume, including the method  of
consumption and any particular strain, variety, and quantity or percent-
age of cannabis or particular active ingredient, and appropriate dosage.
The  practitioner  may  state in the certification any recommendation or
limitation the practitioner makes, in his or her  professional  opinion,
concerning the appropriate form or forms of medical cannabis and dosage.
  4.  Every  practitioner  shall  consult  the  prescription  monitoring
program registry prior to making or issuing  a  certification,  for  the
purpose  of  reviewing  a  patient's  controlled  substance history. For
purposes of this section, a practitioner may  authorize  a  designee  to
consult  the  prescription  monitoring  program  registry  on his or her
behalf, provided that such designation is  in  accordance  with  section
thirty-three hundred forty-three-a of the public health law.
  5.  The  practitioner  shall  give  the certification to the certified
patient, and place a copy in the patient's health care record.
  6. No practitioner shall issue a certification under this section  for
themselves.
  7.  A  registry  identification  card  based  on a certification shall
expire one year after the date the certification is signed by the  prac-
titioner.
  8.  (a)  If  the practitioner states in the certification that, in the
practitioner's professional opinion,  the  patient  would  benefit  from
medical  cannabis only until a specified earlier date, then the registry
identification card shall expire on that date; (b) if  the  practitioner
states  in  the  certification  that  in the practitioner's professional
opinion the patient is terminally ill and that the  certification  shall
not expire until the patient dies, then the registry identification card
shall state that the patient is terminally ill and that the registration
card  shall  not  expire until the patient dies; (c) if the practitioner
re-issues the certification to terminate the certification on an earlier
date, then the registry identification card shall expire  on  that  date
and  shall  be  promptly  destroyed by the certified patient; (d) if the
certification so provides, the registry identification card shall  state
any  recommendation  or limitation by the practitioner as to the form or

A. 1617--A                         14

forms of medical cannabis or dosage for the certified patient;  and  (e)
the executive director shall make regulations to implement this subdivi-
sion.
  §  31. Lawful medical use. The possession, acquisition, use, delivery,
transfer, transportation, or administration of  medical  cannabis  by  a
certified patient, designated caregiver or the employees of a designated
caregiver  facility,  for  certified  medical use, shall be lawful under
this article provided that:
  1. the cannabis that may be possessed by a certified patient shall not
exceed a sixty-day supply of the dosage if determined by the practition-
er, consistent with any guidance and regulations issued by the executive
director, provided that during the last  seven  days  of  any  sixty-day
period, the certified patient may also possess up to such amount for the
next sixty-day period;
  2.  the  cannabis  that may be possessed by designated caregivers does
not exceed the quantities referred to in subdivision one of this section
for each certified patient for whom  the  caregiver  possesses  a  valid
registry identification card, up to five certified patients;
  3.  the cannabis that may be possessed by designated caregiver facili-
ties does not exceed the quantities referred to in  subdivision  one  of
this  section  for each certified patient under the care or treatment of
the facility;
  4. the form or forms of medical cannabis that may be possessed by  the
certified patient, designated caregiver or designated caregiver facility
pursuant  to a certification shall be in compliance with any recommenda-
tion or limitation by the practitioner  as  to  the  form  or  forms  of
medical  cannabis  or  dosage  for  the certified patient in the certif-
ication;
  5. the medical cannabis shall be kept in the original package in which
it was dispensed under this article, except for the portion removed  for
immediate  consumption  for  certified  medical  use  by  the  certified
patient; and
  6. in the case  of  a  designated  caregiver  facility,  the  employee
assisting  the  patient  has  been  designated as such by the designated
caregiver facility.
  § 32. Registry identification cards.  1. Upon approval of the  certif-
ication, the office shall issue registry identification cards for certi-
fied  patients and designated caregivers. A registry identification card
shall expire as provided in this article or  as  otherwise  provided  in
this  section.    The office shall begin issuing registry identification
cards as soon as practicable after the certifications required  by  this
chapter are granted. The office may specify a form for a registry appli-
cation,  in  which  case  the  office shall provide the form on request,
reproductions of the form may be used, and the form shall  be  available
for downloading from the office's website.
  2.  To obtain, amend or renew a registry identification card, a certi-
fied patient or designated caregiver shall file a  registry  application
with  the office, unless otherwise exempted by the executive director in
regulation.  The  registry  application  or  renewal  application  shall
include:
  (a) in the case of a certified patient:
  (i)  the patient's certification, a new written certification shall be
provided with a renewal application;
  (ii) the name, address, and date of birth of the patient;
  (iii) the date of the certification;

A. 1617--A                         15

  (iv) if the patient has a registry  identification  card  based  on  a
current  valid  certification,  the  registry  identification number and
expiration date of that registry identification card;
  (v)  the  specified  date  until  which the patient would benefit from
medical cannabis, if the certification states such a date;
  (vi) the name, address, and telephone number of the certifying practi-
tioner;
  (vii) any recommendation or limitation by the practitioner as  to  the
form or forms of medical cannabis or dosage for the certified patient;
  (viii) if the certified patient designates a designated caregiver, the
name,  address, and date of birth of the designated caregiver, and other
individual identifying information required by the office;
  (ix) if the designated caregiver is a cannabis research license holder
under  this  chapter,  the  name  of  the  organization  conducting  the
research,  the address, phone number, name of the individual leading the
research or appropriate  designee,  and  other  identifying  information
required by the executive director; and
  (x) other individual identifying information required by the office;
  (b) in the case of a designated caregiver:
  (i) the name, address, and date of birth of the designated caregiver;
  (ii)  if  the designated caregiver has a registry identification card,
the registry identification number and expiration date of that  registry
identification card; and
  (iii) other individual identifying information required by the office;
  (c)  a  statement  that  a  false statement made in the application is
punishable under section 210.45 of the penal law;
  (d) the date of the application and the  signature  of  the  certified
patient or designated caregiver, as the case may be;
  (e) any other requirements determined by the executive director.
  3. Where a certified patient is under the age of eighteen or otherwise
incapable of consent:
  (a)  The  application for a registry identification card shall be made
by the person responsible for  making  health  care  decisions  for  the
patient.
  (b)  The designated caregiver shall be: (i) a parent or legal guardian
of the certified patient; (ii) a person designated by a parent or  legal
guardian;  (iii) an employee of a designated caregiver facility, includ-
ing a cannabis research license holder; or (iv)  an  appropriate  person
approved by the office upon a sufficient showing that no parent or legal
guardian is appropriate or available.
  4.  No  person  may  be  a designated caregiver if the person is under
twenty-one years of age unless a  sufficient  showing  is  made  to  the
office  that  the  person  should  be permitted to serve as a designated
caregiver. The requirements for such a showing shall  be  determined  by
the executive director.
  5.  No  person may be a designated caregiver for more than five certi-
fied patients at one time; provided, however, that this limitation shall
not apply to a  designated  caregiver  facility,  or  cannabis  research
license holder as defined by this chapter.
  6.  If  a  certified  patient wishes to change or terminate his or her
designated caregiver, for whatever reason, the certified  patient  shall
notify  the  office  as  soon  as  practicable. The office shall issue a
notification to the designated caregiver that their registration card is
invalid and must be promptly destroyed. The newly  designated  caregiver
must comply with all requirements set forth in this section.

A. 1617--A                         16

  7.  If the certification so provides, the registry identification card
shall contain any recommendation or limitation by the practitioner as to
the form or forms of  medical  cannabis  or  dosage  for  the  certified
patient.
  8.  The  office shall issue separate registry identification cards for
certified patients and designated caregivers as soon as reasonably prac-
ticable after receiving  a  complete  application  under  this  section,
unless  it  determines  that  the application is incomplete or factually
inaccurate, in which case it shall promptly notify the applicant.
  9. If the application of a certified patient designates an  individual
as a designated caregiver who is not authorized to be a designated care-
giver, that portion of the application shall be denied by the office but
that shall not affect the approval of the balance of the application.
  10. A registry identification card shall:
  (a)  contain the name of the certified patient or the designated care-
giver as the case may be;
  (b) contain the date of issuance and expiration date of  the  registry
identification card;
  (c) contain a registry identification number for the certified patient
or  designated  caregiver, as the case may be and a registry identifica-
tion number;
  (d) contain a photograph of the individual to whom the registry  iden-
tification  card  is being issued, which shall be obtained by the office
in  a  manner  specified  by  the  executive  director  in  regulations;
provided,  however,  that  if  the office requires certified patients to
submit photographs for this purpose, there shall be a reasonable  accom-
modation  of  certified  patients who are confined to their homes due to
their medical conditions and may  therefore  have  difficulty  procuring
photographs;
  (e) be a secure document as determined by the office;
  (f) plainly state any recommendation or limitation by the practitioner
as  to the form or forms of medical cannabis or dosage for the certified
patient; and
  (g) any other requirements determined by the executive director.
  11. A certified patient or designated caregiver who has been issued  a
registry  identification  card  shall notify the office of any change in
his or her name or address or, with respect to the patient, if he or she
ceases to have the condition noted on the certification within ten  days
of such change. The certified patient's or designated caregiver's regis-
try  identification  card  shall be deemed invalid and shall be promptly
destroyed.
  12. If a certified patient or designated caregiver loses  his  or  her
registry  identification  card, he or she shall notify the office within
ten days of losing the card. The office shall issue a new registry iden-
tification card as soon as practicable, which may contain a new registry
identification number, to the certified patient or designated caregiver,
as the case may be.
  13. The office shall maintain a confidential list of  the  persons  to
whom it has issued registry identification cards. Individual identifying
information obtained by the office under this article shall be confiden-
tial and exempt from disclosure under article six of the public officers
law.  Notwithstanding this subdivision, the office may notify any appro-
priate  law  enforcement agency of information relating to any violation
or suspected violation of this article.
  14. The office shall verify to law enforcement personnel in an  appro-
priate case whether a registry identification card is valid.

A. 1617--A                         17

  15.  If a certified patient or designated caregiver willfully violates
any provision of this article as determined by the  executive  director,
his  or  her  certification  and  registry  identification  card  may be
suspended or revoked. This is in addition to any other penalty that  may
apply.
  §  33. Registration as a designated caregiver facility.  1. To obtain,
amend or renew a registration as a designated  caregiver  facility,  the
facility shall file a registry application with the office. The registry
application or renewal application shall include:
  (a) the facility's full name and address;
  (b) operating certificate or license number where appropriate;
  (c)  printed  name,  title,  and  signature  of an authorized facility
representative;
  (d) a statement that the facility agrees to secure and  ensure  proper
handling of all medical cannabis products;
  (e)  an  acknowledgement  that a false statement in the application is
punishable under section 210.45 of the penal law; and
  (f) any other information that may be required by the executive direc-
tor.
  2. Prior to issuing or renewing a designated caregiver facility regis-
tration, the office may verify the information submitted by  the  appli-
cant.  The applicant shall provide, at the office's request, such infor-
mation and documentation, including any consents or authorizations  that
may be necessary for the office to verify the information.
  3.  The  office shall approve, deny or determine incomplete or inaccu-
rate an initial or renewal application within thirty days of receipt  of
the  application.  If  the application is approved within the thirty-day
period, the office shall issue a registration as soon as  is  reasonably
practicable.
  4. An applicant shall have thirty days from the date of a notification
of an incomplete or factually inaccurate application to submit the mate-
rials  required  to  complete, revise or substantiate information in the
application. If the applicant fails to  submit  the  required  materials
within  such  thirty-day time period, the application shall be denied by
the office.
  5. Registrations issued under this section shall remain valid for  two
years from the date of issuance.
  § 34. Registered organizations.  1. A registered organization shall be
a for-profit business entity or not-for-profit corporation organized for
the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
ing, transporting, distributing or  dispensing  cannabis  for  certified
medical use.
  2.  The acquiring, possession, manufacture, sale, delivery, transport-
ing, distributing or dispensing of  medical  cannabis  by  a  registered
organization  under  this  article  in  accordance with its registration
under this article or a renewal thereof shall be lawful under this chap-
ter.
  3. Each registered organization shall  contract  with  an  independent
laboratory permitted by the office to test the medical cannabis produced
by the registered organization. The executive director shall approve the
laboratory  used by the registered organization and may require that the
registered organization use a particular testing laboratory.  The execu-
tive director is authorized to issue regulations requiring the laborato-
ry to perform certain tests and services.
  4. (a) A registered organization may lawfully, in  good  faith,  sell,
deliver,  distribute or dispense medical cannabis to a certified patient

A. 1617--A                         18

or designated caregiver upon presentation to the registered organization
of a valid registry identification card for that  certified  patient  or
designated  caregiver.   When presented with the registry identification
card, the registered organization shall provide to the certified patient
or designated caregiver a receipt, which shall state: the name, address,
and  registry  identification number of the registered organization; the
name and registry identification number of the certified patient and the
designated caregiver, if any; the date the cannabis was sold; any recom-
mendation or limitation by the practitioner as to the form or  forms  of
medical  cannabis  or dosage for the certified patient; and the form and
the quantity of medical cannabis sold. The registered organization shall
retain a copy of the registry identification card and  the  receipt  for
six years.
  (b) The proprietor of a registered organization shall file or cause to
be  filed  any  receipt and certification information with the office by
electronic means on a real-time basis as the  executive  director  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 executive director shall
by regulation require.
  5. (a) No registered organization may  sell,  deliver,  distribute  or
dispense  to any certified patient or designated caregiver a quantity of
medical cannabis larger than that individual would be allowed to possess
under this chapter.
  (b) When dispensing medical cannabis to a certified patient or  desig-
nated caregiver, the registered organization:  (i) shall not dispense an
amount  greater than a sixty-day supply to a certified patient until the
certified patient has exhausted all but  a  seven  day  supply  provided
pursuant to a previously issued certification; and (ii) shall verify the
information  in  subparagraph  (i)  of  this paragraph by consulting the
prescription monitoring program registry under this article.
  (c) Medical cannabis dispensed to a certified  patient  or  designated
caregiver  by a registered organization shall conform to any recommenda-
tion or limitation by the practitioner  as  to  the  form  or  forms  of
medical cannabis or dosage for the certified patient.
  6.  When  a  registered  organization  sells, delivers, distributes or
dispenses medical cannabis to a certified patient or designated caregiv-
er, it shall provide to that individual a safety insert, which  will  be
developed  by  the registered organization and approved by the executive
director and include, but not be limited to, information on:
  (a) methods for administering medical cannabis,
  (b) any potential dangers stemming from the use of medical cannabis,
  (c) how to recognize what may be problematic usage of medical cannabis
and obtain appropriate services or treatment for problematic usage, and
  (d) other information as determined by the executive director.
  7.  Registered organizations shall not be managed by or employ  anyone
who  has  been  convicted within three years of the date of hire, of any
felony related to the functions  or  duties  of  operating  a  business,
except  that  if  the  executive director determines that the manager or
employee is otherwise suitable to be hired, and hiring  the  manager  or
employee  would  not  compromise  public  safety, the executive director
shall conduct a thorough review of the nature of the crime,  conviction,
circumstances,  and evidence of rehabilitation of the manager or employ-
ee, and shall evaluate the suitability of the manager or employee  based
on  the evidence found through the review. In determining which offenses

A. 1617--A                         19

are substantially related to the functions  or  duties  of  operating  a
business,  the  executive director shall include, but not be limited to,
the following:
  (a) a felony conviction involving fraud, money laundering, forgery and
other unlawful conduct related to owning and operating a business; and
  (b)  a  felony  conviction  for  hiring, employing or using a minor in
transporting, carrying, selling, giving away,  preparing  for  sale,  or
peddling,  any  controlled  substance,  or  selling,  offering  to sell,
furnishing, offering to furnish, administering, or giving any controlled
substance to a minor.
  A felony conviction for the sale or possession of drugs, narcotics, or
controlled substances is not  substantially  related.  This  subdivision
shall  only apply to managers or employees who come into contact with or
handle medical cannabis.
  8. Manufacturing of medical  cannabis  by  a  registered  organization
shall  only  be  done in an indoor, enclosed, secure facility located in
New York state, which may include a greenhouse. The  executive  director
shall  promulgate regulations establishing requirements for such facili-
ties.
  9. Dispensing of medical cannabis by a registered  organization  shall
only be done in an indoor, enclosed, secure facility located in New York
state,  which  may  include  a  greenhouse. The executive director shall
promulgate regulations establishing requirements for such facilities.
  10. A registered organization may contract with a person or entity  to
provide  facilities,  equipment  or  services  that are ancillary to the
registered organization's functions or  activities  under  this  section
including,  but  not  limited  to,  shipping, maintenance, construction,
repair, and security. All laws and regulations applicable to such facil-
ities, equipment, or services shall apply to the  contract.  The  regis-
tered  organization  and  other  parties  to  the contract shall each be
responsible for compliance with such  laws  and  regulations  under  the
contract.  The  executive  director  may  make  regulations  relating to
contracts and parties to contracts under this chapter.
  11. A registered organization shall, based on the findings of an inde-
pendent laboratory, provide documentation of  the  quality,  safety  and
clinical  strength  of the medical cannabis manufactured or dispensed by
the registered organization to the office and to any person or entity to
which the medical cannabis is sold or dispensed.
  12. A registered organization shall be deemed to  be  a  "health  care
provider"  for  the purposes of title two-D of article two of the public
health law.
  13. Medical cannabis shall be dispensed  to  a  certified  patient  or
designated  caregiver  in  a  sealed  and  properly labeled package. The
labeling shall contain: (a) the information required to be  included  in
the receipt provided to the certified patient or designated caregiver by
the  registered organization; (b) the packaging date; (c) any applicable
date by which the medical cannabis should be used; (d) a  warning  stat-
ing,  "This  product is for medicinal use only. Women should not consume
during pregnancy or while breastfeeding except  on  the  advice  of  the
certifying  health  care  practitioner, and in the case of breastfeeding
mothers, including the infant's pediatrician. This product might  impair
the ability to drive. Keep out of reach of children."; (e) the amount of
individual  doses  contained  within; and (f) a warning that the medical
cannabis must be  kept  in  the  original  container  in  which  it  was
dispensed.

A. 1617--A                         20

  14. The executive director is authorized to make rules and regulations
restricting the advertising and marketing of medical cannabis.
  §  35.  Registering  of registered organizations.  1. (a) An applicant
for registration as a registered organization under section  thirty-four
of  this  article shall include such information prepared in such manner
and detail as the executive director  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 described in the application, or
in the alternative posts a bond of not less than two million dollars;
  (C) is able to maintain effective  security  and  control  to  prevent
diversion,  abuse,  and  other illegal conduct relating to the cannabis;
and
  (D) is able to comply with all applicable state laws  and  regulations
relating  to  the  activities  in  which  it intends to engage under the
registration;
  (iii) that the applicant has entered into a labor peace agreement with
a bona fide labor organization that is actively engaged in  representing
or attempting to represent the applicant's employees and the maintenance
of  such  a labor peace agreement shall be an ongoing material condition
of certification;
  (iv) the applicant's status as a for-profit business  entity  or  not-
for-profit corporation; and
  (v)  the  application  shall  include  the name, residence address and
title of each of the officers and directors and the name  and  residence
address  of any person or entity that is a member of the applicant. Each
such person, if an individual, or lawful representative if a legal enti-
ty, shall submit an affidavit with the application setting forth:
  (A) any position of management or ownership during the  preceding  ten
years  of a twenty per centum or greater interest in any other business,
located in or outside this state, manufacturing or distributing drugs;
  (B) whether such person or any such business has been convicted  of  a
felony  or  had  a  registration  or license suspended or revoked in any
administrative or judicial proceeding; and
  (C) such other information as the executive  director  may  reasonably
require.
  2.  The  applicant  shall  be under a continuing duty to report to the
office any change in facts or circumstances reflected in the application
or any newly discovered or  occurring  fact  or  circumstance  which  is
required to be included in the application.
  3.  (a) The executive director shall grant a registration 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 cannabis;
  (ii)  the  applicant  will be able to comply with all applicable state
laws;
  (iii) the applicant and its officers are ready, willing  and  able  to
properly carry on the manufacturing or distributing activity for which a
registration is sought;

A. 1617--A                         21

  (iv)  the applicant possesses or has the right to use sufficient land,
buildings and equipment to properly carry on the activity  described  in
the application;
  (v)  it  is  in the public interest that such registration be granted,
including but not limited to:
  (A) whether the number of registered organizations in an area will  be
adequate or excessive to reasonably serve the area;
  (B)  whether  the  registered  organization is a minority and/or woman
owned business enterprise or a service-disabled veteran-owned business;
  (C)  whether  the  registered  organization  provides  education   and
outreach to practitioners;
  (D)  whether  the  registered  organization  promotes the research and
development of medical cannabis and patient outreach; and
  (E) the affordability of medical  cannabis  products  offered  by  the
registered organization;
  (vi) the applicant and its managing officers are of good moral charac-
ter;
  (vii)  the  applicant  has entered into a labor peace agreement with a
bona fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees; and  the  maintenance
of  such  a labor peace agreement shall be an ongoing material condition
of registration; and
  (viii) the applicant satisfies any other conditions as  determined  by
the executive director.
  (b)  If  the  executive  director  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 the denial is based.  Within  thirty
days  of  the  receipt  of such notification, the applicant may submit a
written request to the executive director to appeal the decision.
  (c) The fee for a registration under this section shall be  an  amount
determined  by  the  office  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
  (iv) such other information as the executive director shall reasonably
provide to assure compliance with this article.
  (e)  Upon application of a registered organization, a registration may
be amended to allow the registered organization to relocate  within  the
state  or  to add or delete permitted registered organization activities
or facilities. The fee for such amendment shall  be  two  hundred  fifty
dollars.
  4.  A  registration  issued  under this section shall be valid for two
years from the date of issue, except that in  order  to  facilitate  the
renewals  of  such  registrations,  the  executive director 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
exceeding an additional eleven months.
  5.  (a) An application for the  renewal  of  any  registration  issued
under  this  section  shall  be  filed with the office not more than six
months nor less than four months prior  to  the  expiration  thereof.  A

A. 1617--A                         22

late-filed  application  for  the  renewal of a registration may, in the
discretion of the executive director, 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 executive director may require,
including but not limited to:
  (i) any material change in the  circumstances  or  factors  listed  in
subdivision one of this section; and
  (ii)  every known charge or investigation, pending or concluded during
the period of the registration, by any  governmental  or  administrative
agency with respect to:
  (A)  each  incident  or alleged incident involving the theft, loss, or
possible diversion of medical cannabis manufactured  or  distributed  by
the applicant; and
  (B)  compliance  by  the  applicant  with  the  laws of the state with
respect to any substance listed in section thirty-three hundred  six  of
the public health law.
  (c)  An  applicant  for  renewal  shall  be under a continuing duty to
report to the office 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 executive director is not  satisfied  that  the  registered
organization  applicant is entitled to a renewal of the registration, he
or she shall within a reasonably practicable time as determined  by  the
executive director, serve upon the registered organization or its attor-
ney  of  record  in  person  or by registered or certified mail an order
directing the registered organization to show cause why its  application
for  renewal should not be denied. The order shall specify in detail the
respects in which the applicant has not satisfied the executive director
that the registration should be renewed.
  6. (a) The executive director shall renew a registration unless he  or
she determines and finds that:
  (i)  the  applicant  is  unlikely  to  maintain or be able to maintain
effective control against diversion;
  (ii) the applicant is unlikely to comply with all state laws  applica-
ble to the activities in which it may engage under the registration;
  (iii)  it  is  not  in  the  public interest to renew the registration
because the number of registered organizations in an area  is  excessive
to reasonably serve the area; or
  (iv)  the  applicant has either violated or terminated its labor peace
agreement.
  (b) For purposes of this section, proof that  a  registered  organiza-
tion,  during  the  period  of  its registration, has failed to maintain
effective control against diversion,  violates  any  provision  of  this
article,  or has knowingly or negligently failed to comply with applica-
ble state laws relating to the activities in which it engages under  the
registration,  shall  constitute  grounds for suspension, termination or
limitation of the registered organization's registration  or  as  deter-
mined  by the executive director. The registered organization shall also
be under a continuing duty to  report  to  the  authority  any  material
change or fact or circumstance to the information provided in the regis-
tered organization's application.
  7.  The  office  may suspend or terminate the registration of a regis-
tered organization, on grounds and using procedures under  this  article
relating  to a license, to the extent consistent with this article.  The
authority shall suspend or terminate the registration in the event  that

A. 1617--A                         23

a  registered  organization  violates or terminates the applicable labor
peace agreement. Conduct in  compliance  with  this  article  which  may
violate  conflicting  federal  law,  shall  not be grounds to suspend or
terminate a registration.
  8.  The  executive  director  shall  register  at least ten registered
organizations that manufacture medical cannabis with no more  than  four
dispensing  sites wholly owned and operated by such registered organiza-
tion. The executive director shall ensure that such registered organiza-
tions and dispensing sites are  geographically  distributed  across  the
state  and  that their ownership reflects the demographics of the state.
The executive director may register additional registered organizations,
as needed.
  § 36. Intentionally omitted.
  § 37. Reports of registered organizations.  1. The executive  director
shall,  by  regulation,  require  each  registered  organization to file
reports by the registered organization during a particular  period.  The
executive  director  shall  determine the information to be reported and
the forms, time, and manner of the reporting.
  2. The executive director shall, by regulation,  require  each  regis-
tered  organization  to  adopt  and  maintain security, tracking, record
keeping, record retention and  surveillance  systems,  relating  to  all
medical  cannabis  at every stage of acquiring, possession, manufacture,
sale, delivery, transporting, distributing, or dispensing by the  regis-
tered organization, subject to regulations of the executive director.
  §  38. Evaluation; research programs; report by office.  1. The execu-
tive director may provide for the analysis and evaluation of the  opera-
tion  of this article.  The executive director may enter into agreements
with one or more persons, not-for-profit corporations or other organiza-
tions, for the performance of an evaluation of  the  implementation  and
effectiveness of this article.
  2.  The  office  may develop, seek any necessary federal approval for,
and carry out research programs relating to  medical  use  of  cannabis.
Participation  in  any  such  research program shall be voluntary on the
part of practitioners, patients, and designated caregivers.
  3. The office shall report every two years, beginning two years  after
the  effective date of this chapter, to the governor and the legislature
on the medical use of cannabis under this article and  make  appropriate
recommendations.
  §  39.  Cannabis  research  license.   1. The executive director shall
establish a  cannabis  research  license  that  permits  a  licensee  to
produce, process, purchase and possess cannabis for the following limit-
ed research purposes:
  (a) to test chemical potency and composition levels;
  (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
products;
  (c) to conduct research on the efficacy and  safety  of  administering
cannabis as part of medical treatment; and
  (d) to conduct genomic or agricultural research.
  2. As part of the application process for a cannabis research license,
an  applicant  must  submit  to the office a description of the research
that is intended to be conducted as well as the amount of cannabis to be
grown or purchased. The office  shall  review  an  applicant's  research
project  and  determine whether it meets the requirements of subdivision
one of this section. In addition, the office shall assess  the  applica-
tion based on the following criteria:
  (a) project quality, study design, value, and impact;

A. 1617--A                         24

  (b)  whether  the  applicant has the appropriate personnel, expertise,
facilities and infrastructure, funding,  and  human,  animal,  or  other
approvals in place to successfully conduct the project; and
  (c)  whether  the  amount  of cannabis to be grown or purchased by the
applicant is consistent with the  project's  scope  and  goals.  If  the
office  determines  that the research project does not meet the require-
ments of subdivision one  of  this  section,  the  application  must  be
denied.
  3. A cannabis research licensee may only sell cannabis grown or within
its  operation  to  other  cannabis  research  licensees. The office may
revoke a cannabis research license for violations of this subsection.
  4. A cannabis research licensee may contract with the higher education
institutions to perform research in conjunction with the university. All
research projects, entered into under this section must be  approved  by
the office and meet the requirements of subdivision one of this section.
  5. In establishing a cannabis research license, the executive director
may adopt regulations on the following:
  (a) application requirements;
  (b)  cannabis research license renewal requirements, including whether
additional research projects may be added or considered;
  (c) conditions for license revocation;
  (d) security measures to ensure cannabis is not diverted  to  purposes
other than research;
  (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
cannabis-infused products a licensee may have on its premises;
  (f) licensee reporting requirements;
  (g) conditions under which cannabis grown by licensed cannabis produc-
ers and other product types from licensed  cannabis  processors  may  be
donated to cannabis research licensees; and
  (h) any additional requirements deemed necessary by the office.
  6. A cannabis research license issued pursuant to this section must be
issued  in  the  name of the applicant and specify the location at which
the cannabis researcher intends to operate, which  must  be  within  the
state of New York.
  7. The application fee for a cannabis research license shall be deter-
mined by the executive director on an annual basis.
  8. Each cannabis research licensee shall issue an annual report to the
office.  The office shall review such report and make a determination as
to whether the research project continues to meet  the  research  quali-
fications under this section.
  §  40. Registered organizations and adult-use cannabis.  1. The execu-
tive director shall have the authority to  grant  some  or  all  of  the
registered  organizations  registered  with the department of health and
currently registered and in good standing with the office,  the  ability
to  be  licensed  to  cultivate,  process,  distribute or sell adult-use
cannabis and cannabis products, pursuant to any fees,  rules  or  condi-
tions  prescribed by the executive director in regulation and subject to
the restrictions on  licensed  adult-use  cultivators,  processors,  and
distributors  on  having  any ownership interest in a licensed adult-use
retail dispensary pursuant to this chapter.
  2. However, the office shall have the authority to assess  the  regis-
tered  organization  with  a one-time special licensing fee so that they
may become authorized to bypass the restrictions on having any ownership
interest in a licensed adult-use retail dispensary,  provided  that  the
fees  generated from such assessment shall be used to administer incuba-
tors and low or zero-interest loans to qualified  social  equity  appli-

A. 1617--A                         25

cants.  The  timing  and manner in which registered organizations may be
granted such authority shall be determined by the executive director  in
regulation.
  § 41. Relation to other laws.  1. The provisions of this article shall
apply,  except  that  where  a  provision of this article conflicts with
another provision of this chapter, this article shall apply.
  2. Medical cannabis shall not be deemed to be a "drug" for purposes of
article one hundred thirty-seven of the education law.
  § 42. Protections for the medical  use  of  cannabis.    1.  Certified
patients,  designated caregivers, designated caregiver facilities, prac-
titioners, registered organizations  and  the  employees  of  registered
organizations,  and cannabis researchers shall not be subject to arrest,
prosecution, or penalty in any manner, or denied any right or privilege,
including but not limited to civil penalty or disciplinary action  by  a
business  or  occupational  or  professional  licensing board or bureau,
solely for the certified medical use or manufacture of cannabis, or  for
any other action or conduct in accordance with this article.
  2. Being a certified patient shall be deemed to be having a "disabili-
ty"  under  article fifteen of the executive law, section forty-c of the
civil rights law, sections 240.00, 485.00, and 485.05 of the penal  law,
and section 200.50 of the criminal procedure law. This subdivision shall
not  bar  the  enforcement  of  a  policy  prohibiting  an employee from
performing his or her employment duties while impaired by  a  controlled
substance. This subdivision shall not require any person or entity to do
any  act  that  would  put  the  person or entity in direct violation of
federal law or cause it to lose a federal contract or funding.
  3. The fact that a person is a  certified  patient  and/or  acting  in
accordance with this article, shall not be a consideration in a proceed-
ing  pursuant  to applicable sections of the domestic relations law, the
social services law and the family court act.
  4. (a) Certification applications, certification forms, any  certified
patient  information contained within a database, and copies of registry
identification cards shall be deemed exempt from public disclosure under
sections eighty-seven and eighty-nine of the public officers law.
  (b) The name, contact information, and other information  relating  to
practitioners  registered  with  the  office under this article shall be
public information and shall be maintained by the executive director  on
the office's website accessible to the public in searchable form. Howev-
er, if a practitioner notifies the office in writing that he or she does
not  want  his or her name and other information disclosed, that practi-
tioner's name and other  information  shall  thereafter  not  be  public
information  or  maintained  on the office's website, unless the practi-
tioner cancels the request.
  § 43. Regulations.  The executive director shall make  regulations  to
implement this article.
  § 44. Suspend; terminate.  Based upon the recommendation of the execu-
tive  director and/or the superintendent of state police that there is a
risk to the public health or safety, the governor may immediately termi-
nate all licenses issued to registered organizations.
  § 45. Pricing.  Registered organizations shall submit documentation to
the executive director of any change in pricing per dose for any medical
cannabis product within fifteen days of such change. Prior  approval  by
the  executive  director  shall  not  be  required  for any such change;
provided however that the executive director is authorized to modify the
price per dose for any medical cannabis product if necessary to maintain
public access to appropriate medication.

A. 1617--A                         26

                                ARTICLE 4
                           ADULT-USE CANNABIS

Section 60. Licenses issued.
        61. License application.
        62. Information to be requested in applications for licenses.
        63. Fees.
        64. Selection criteria.
        65. Limitations of licensure; duration.
        66. License renewal.
        67. Amendments;  changes  in ownership and organizational struc-
              ture.
        68. Adult-use cultivator license.
        69. Adult-use processor license.
        70. Adult-use cooperative license.
        71. Adult-use distributor license.
        72. Adult-use retail dispensary license.
        73. Micro business license.
        74. Notification to municipalities of adult-use  retail  dispen-
              sary.
        75. On-site  consumption  license;  provisions governing on-site
              consumption licenses.
        76. Record keeping and tracking.
        77. Inspections and ongoing requirements.
        78. Adult-use cultivators, processors or distributors not to  be
              interested in retail dispensaries.
        79. Packaging and labeling of adult-use cannabis products.
        80. Laboratory testing.
        81. Provisions  governing  the  cultivation  and  processing  of
              adult-use cannabis.
        82. Provisions governing the distribution of adult-use cannabis.
        83. Provisions governing adult-use cannabis retail dispensaries.
        84. Adult-use cannabis advertising.
        85. Minority, women-owned businesses and disadvantaged  farmers;
              incubator program.
        86. Regulations.
  §  60.  Licenses  issued.    The  following kinds of licenses shall be
issued by  the  executive  director  for  the  cultivation,  processing,
distribution  and sale of cannabis, cannabis producers, and concentrated
cannabis to cannabis consumers:
  1. Adult-use cultivator license;
  2. Adult-use processor license;
  3. Adult-use cooperative license;
  4. Adult-use distributor license;
  5. Adult-use retail dispensary license;
  6. On-site consumption license;
  7. Microbusiness license;
  8. Delivery license;
  9. Nursery license; and
  10. Any other type of license as prescribed by the executive  director
in regulation.
  §  61. License Application.  1. Any person may apply to the office for
a license to cultivate, process, distribute or dispense cannabis  within
this  state  for sale. Such application shall be in writing and verified
and shall contain such information as the  office  shall  require.  Such
application  shall  be  accompanied  by  a check or draft for the amount

A. 1617--A                         27

required by this article for such license. If the office  shall  approve
the  application,  it  shall  issue  a  license in such form as shall be
determined by its rules. Such license shall contain a description of the
licensed premises and in form and in substance shall be a license to the
person therein specifically designated to cultivate, process, distribute
or dispense cannabis in the premises therein specifically licensed.
  2.  Except  as  otherwise provided in this article, a separate license
shall be required for each facility at  which  cultivation,  processing,
distribution or retail dispensing is conducted.
  3. An applicant shall not be denied a license under this article based
solely  on a conviction for a violation of article two hundred twenty or
section 240.36 of the penal law, prior to the date article  two  hundred
twenty-one of the penal law took effect, or a conviction for a violation
of  article  two hundred twenty-one of the penal law after the effective
date of this chapter.
  § 62. Information to be requested in applications for  licenses.    1.
The  office shall have the authority to prescribe the manner and form in
which an application must be submitted to the office for licensure under
this article.
  2. The executive director is authorized to adopt regulations,  includ-
ing  by  emergency rule, establishing information which must be included
on an application for licensure under this article. Such information may
include, but is not limited to:  information about the applicant's iden-
tity, including racial and ethnic diversity;  ownership  and  investment
information,  including  the corporate structure; evidence of good moral
character, including the submission of fingerprints by the applicant  to
the  division  of criminal justice services; information about the prem-
ises to be licensed; financial statements;  and  any  other  information
prescribed by regulation.
  3.  All  license  applications shall be signed by the applicant (if an
individual), by a managing member (if a limited liability  corporation),
by an officer (if a corporation), or by all partners (if a partnership).
Each  person  signing  such  application shall verify it or affirm it as
true under the penalties of perjury.
  4. All license or permit applications shall be accompanied by a check,
draft or other forms of payment as the office may require  or  authorize
in the amount required by this article for such license or permit.
  5.  If there be any change, after the filing of the application or the
granting of a license, in any of the facts required to be set  forth  in
such application, a supplemental statement giving notice of such change,
cost and source of money involved in the change, duly verified, shall be
filed  with  the office within ten days after such change. Failure to do
so shall, if willful and deliberate, be cause for denial  or  revocation
of the license.
  6. In giving any notice, or taking any action in reference to a regis-
tered  organization  or  licensee of a licensed premises, the office may
rely upon the information furnished  in  such  application  and  in  any
supplemental  statement connected therewith, and such information may be
presumed to be correct, and shall be binding upon a registered organiza-
tions, licensee or licensed premises  as  if  correct.  All  information
required  to be furnished in such application or supplemental statements
shall be deemed material in any prosecution for perjury, any  proceeding
to  revoke,  cancel or suspend any license, and in the office's determi-
nation to approve or deny the license.
  § 63. Fees. 1. The office shall have the authority  to  charge  appli-
cants for licensure under this article a non-refundable application fee.

A. 1617--A                         28

Such  fee  may  be  based  on  the type of licensure sought, cultivation
and/or production volume, or any other  factors  deemed  reasonable  and
appropriate  by  the  office  to  achieve the policy and purpose of this
chapter.
  2.  The office shall have the authority to charge licensees a biennial
license fee. Such fee shall be based on the amount  of  cannabis  to  be
cultivated,  processed,  distributed and/or dispensed by the licensee or
the gross annual receipts of the licensee for the previous license peri-
od, and any other factors  deemed  reasonable  and  appropriate  by  the
office.
  3.  The  office  shall  have the authority to waive or reduce fees for
social and economic equity applicants.
  § 64. Selection criteria.   1. The executive  director  shall  develop
regulations for determining whether or not an applicant should be grant-
ed  the  privilege  of  an adult-use cannabis license, based on, but not
limited to, the following criteria:
  (a) the applicant will be able to maintain effective  control  against
the illegal diversion of cannabis;
  (b)  the  applicant  will  be able to comply with all applicable state
laws and regulations;
  (c) the applicant and its officers are ready,  willing,  and  able  to
properly carry on the activities for which a license is sought;
  (d)  the  applicant possesses or has the right to use sufficient land,
buildings, and equipment to properly carry on the activity described  in
the application;
  (e) the applicant qualifies as a social equity applicant or sets out a
plan for benefiting communities and people disproportionally impacted by
cannabis law enforcement;
  (f)  it is in the public interest that such license be granted, taking
into consideration, but not limited to, the following criteria:
  (i) that it is a privilege, and not a right,  to  cultivate,  process,
distribute, and sell cannabis;
  (ii) the number, classes, and character of other licenses in proximity
to the location and in the particular municipality or subdivision there-
of;
  (iii)  evidence  that  all  necessary  licenses  and permits have been
obtained from the state and all other governing bodies;
  (iv) effect of the grant of the license  on  pedestrian  or  vehicular
traffic, and parking, in proximity to the location;
  (v) the existing noise level at the location and any increase in noise
level that would be generated by the proposed premises;
  (vi) the history of regulatory violations under the alcoholic beverage
control  law or the cannabis law at the location, as well as any pattern
of violations under the alcoholic beverage control law or  the  cannabis
law, and reported criminal activity at the proposed premises;
  (vii)  the  effect  on the production and availability of cannabis and
cannabis products; and
  (viii) any other factors specified by law or regulation that are rele-
vant to determine that granting a license would promote  public  conven-
ience and advantage and the public interest of the community;
  (g)  the applicant and its managing officers are of good moral charac-
ter and do not  have  an  ownership  or  controlling  interest  in  more
licenses or permits than allowed by this chapter;
  (h)  the  applicant  has  entered  into a labor peace agreement with a
bona-fide labor organization that is actively engaged in representing or
attempting to represent the applicant's employees, and  the  maintenance

A. 1617--A                         29

of  such  a labor peace agreement shall be an ongoing material condition
of licensure. In evaluating applications from entities with  twenty-five
or more employees, the office shall give priority to applicants that are
a  party  to  a  collective  bargaining agreement with a bona-fide labor
organization in New York or in another state, and uses  union  labor  to
construct its licensed facility;
  (i) the applicant will contribute to communities and people dispropor-
tionately  harmed  by cannabis law enforcement and report these contrib-
utions to the office;
  (j) if the application is for an  adult-use  cultivator  or  processor
license, the environmental impact of the facility to be licensed; and
  (k)  the applicant satisfies any other conditions as determined by the
executive director.
  2. If the executive director  is  not  satisfied  that  the  applicant
should  be  issued  a  license,  the executive director shall notify the
applicant in writing of the specific reason or reasons for denial.
  3. The executive director shall have the authority to, in consultation
with the cannabis advisory  board,  determine  the  number  of  licenses
issued pursuant to this article.
  §  65.  Limitations of licensure; duration.  1. 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.
  2. No licensee shall sell, deliver, or give away or cause or permit or
procure  to be sold, delivered or given away any cannabis to any person,
actually or apparently, under the age of  twenty-one  years  unless  the
person  under twenty-one is also a certified patient and the licensee is
appropriately licensed under article three of this chapter.
  3. The office shall have the authority  to  limit,  by  canopy,  plant
count,  square footage or other means, the amount of cannabis allowed to
be grown, processed, distributed or sold by a licensee.
  4. All licenses under this article shall expire two  years  after  the
date of issue.
  § 66. License renewal.  1. Each license, issued pursuant to this arti-
cle,  may  be renewed upon application therefore by the licensee and the
payment of the fee for such license as prescribed by  this  article.  In
the  case of applications for renewals, the office may dispense with the
requirements of such statements as it deems unnecessary in view of those
contained in the application made for the original license, but  in  any
event  the  submission  of photographs of the licensed premises shall be
dispensed with, provided the applicant for such  renewal  shall  file  a
statement  with  the  office to the effect that there has been no alter-
ation of such premises since the original license was issued. The office
may make such rules as it deems necessary, not  inconsistent  with  this
chapter, regarding applications for renewals of licenses and permits and
the time for making the same.
  2.  Each  applicant  must  submit  to  the office documentation of the
racial, ethnic, and gender diversity of the  applicant's  employees  and
owners  prior  to  a  license being renewed. In addition, the office may
create a social responsibility framework agreement and make  the  adher-
ence to such agreement a conditional requirement of license renewal.
  3.  The  office  shall provide an application for renewal of a license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
  4. The office may only issue a renewal license  upon  receipt  of  the
prescribed  renewal  application  and renewal fee from a licensee if, in

A. 1617--A                         30

addition to the criteria in this section, the licensee's license is  not
under suspension and has not been revoked.
  5.  Each  applicant must maintain a labor peace agreement with a bona-
fide labor organization that is  actively  engaged  in  representing  or
attempting to represent the applicant's employees and the maintenance of
such  a  labor peace agreement shall be an ongoing material condition of
licensure.
  § 67. Amendments; changes in ownership and  organizational  structure.
1. Licenses issued pursuant to this article shall specify:
  (a) the name and address of the licensee;
  (b) the activities permitted by the license;
  (c)  the  land,  buildings  and  facilities  that  may be used for the
licensed activities of the licensee;
  (d) a unique license number issued by the office to the licensee; and
  (e) such other information as the executive director shall deem neces-
sary to assure compliance with this chapter.
  2. Upon application of a licensee to the  office,  a  license  may  be
amended  to  allow  the licensee to relocate within the state, to add or
delete licensed activities or facilities, or to amend the  ownership  or
organizational  structure of the entity that is the licensee. The execu-
tive director shall establish a fee for such amendments.
  3. A license shall become void by a change in  ownership,  substantial
corporate change or location without prior written approval of the exec-
utive director. The executive director may promulgate regulations allow-
ing for certain types of changes in ownership without the need for prior
written approval.
  4.  For purposes of this section, "substantial corporate change" shall
mean:
  (a) for a corporation, a change of eighty percent or more of the offi-
cers and/or directors, or a transfer of eighty percent or more of  stock
of such corporation, or an existing stockholder obtaining eighty percent
or more of the stock of such corporation; or
  (b)  for  a  limited  liability company, a change of eighty percent or
more of the managing members of the company, or  a  transfer  of  eighty
percent  or  more  of ownership interest in said company, or an existing
member obtaining a cumulative of eighty percent or more of the ownership
interest in said company.
  § 68. Adult-use cultivator license.    1.  An  adult-use  cultivator's
license  shall  authorize  the  acquisition, possession, cultivation and
sale of cannabis from the licensed premises of the adult-use  cultivator
by  such  licensee to duly licensed processors in this state. The execu-
tive director may  establish  regulations  allowing  licensed  adult-use
cultivators  to  perform certain types of minimal processing without the
need for an adult-use processor license.
  2. For purposes of this section, cultivation shall include, but not be
limited to, the planting, growing, cloning, harvesting, drying,  curing,
grading and trimming of cannabis.
  3.  A  person holding an adult-use cultivator's license may apply for,
and obtain, one processor's license and one distributor's license.
  4. A person holding an adult-use cultivator's  license  may  not  also
hold  a retail dispensary license pursuant to this article and no adult-
use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
including  by stock ownership, interlocking directors, mortgage or lien,
personal or real property, or any other means, in any premises  licensed
as  an  adult-use cannabis retail dispensary or in any business licensed
as an adult-use cannabis retail dispensary pursuant to this article.

A. 1617--A                         31

  5. A person holding an adult-use cultivator's license may not  hold  a
license  to  distribute  cannabis under this article unless the licensed
cultivator is also licensed as a processor under this article.
  6.  No  person  may have a direct or indirect financial or controlling
interest in more than one adult-use cultivator license  issued  pursuant
to this chapter.
  §  69.  Adult-use  processor license.   1. A processor's license shall
authorize the acquisition, possession, processing and sale  of  cannabis
from  the licensed premises of the adult-use cultivator by such licensee
to duly licensed distributors.
  2. For purposes of this section, processing shall include, but not  be
limited  to, blending, extracting, infusing, packaging, labeling, brand-
ing and otherwise making  or  preparing  cannabis  products.  Processing
shall not include the cultivation of cannabis.
  3. No processor shall be engaged in any other business on the premises
to  be  licensed;  except  that  nothing contained in this chapter shall
prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
utor from operating on the same premises and from a person  holding  all
three licenses.
  4.  No  cannabis  processor licensee may hold more than three cannabis
processor licenses.
  5. No adult-use cannabis processor shall have  a  direct  or  indirect
interest, including by stock ownership, interlocking directors, mortgage
or  lien, personal or real property, or any other means, in any premises
licensed as an adult-use cannabis retail dispensary or in  any  business
licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
article.
  § 70. Adult-use cooperative license.  1. A cooperative  license  shall
authorize  the acquisition, possession, cultivation, processing and sale
from the licensed premises of the adult-use cooperative by such licensee
to duly  licensed  distributors  and/or  retail  dispensaries;  but  not
directly to cannabis consumers.
  2. To be licensed as an adult-use cooperative, the cooperative must:
  (i)  be  comprised  of residents of the state of New York as a limited
liability company or limited liability partnership under the laws of the
state, or an appropriate business structure as determined by the  execu-
tive director;
  (ii)  at least one member of the cooperative must have filed a Federal
Schedule F (Form 1040) for three of the past five years; and
  (iii) the cooperative must operate according to the seven  cooperative
principles  published by the International Cooperative Alliance in nine-
teen hundred ninety-five.
  3. No person shall be a member of more than one adult-use  cooperative
licensed pursuant to this section.
  4.  No person or member of an adult-use cooperative license may have a
direct or indirect  financial  or  controlling  interest  in  any  other
adult-use cannabis license issued pursuant to this chapter.
  5.  No  adult-use cannabis cooperative shall have a direct or indirect
interest, including by stock ownership, interlocking directors, mortgage
or lien, personal or real property, or any other means, in any  premises
licensed  as  an adult-use cannabis retail dispensary or in any business
licensed as an adult-use cannabis retail  dispensary  pursuant  to  this
article.
  6. The executive director shall promulgate regulations governing coop-
erative  licenses,  including,  but not limited to, the establishment of

A. 1617--A                         32

canopy limits on the size and scope of cooperative licensees, and  other
measures designed to incentivize the use and licensure of cooperatives.
  § 71. Adult-use distributor license.  1. A distributor's license shall
authorize the acquisition, possession, distribution and sale of cannabis
from the licensed premises of a licensed adult-use processor, microbusi-
ness  or  registered organization authorized to sell adult-use cannabis,
to duly licensed retail dispensaries.
  2. No distributor shall have a direct or indirect economic interest in
any adult-use retail dispensary licensed pursuant to this article, or in
any registered organization registered pursuant to article three of this
chapter. This restriction shall not prohibit a  registered  organization
authorized pursuant to section forty of this chapter, from being granted
licensure by the office to distribute adult-use cannabis products culti-
vated  and  processed  by  the registered organization to the registered
organization's own licensed adult-use retail dispensaries.
  3. Nothing in subdivision two of this section shall prevent a distrib-
utor from charging an appropriate fee for the distribution of  cannabis,
including based on the volume of cannabis distributed.
  §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
license shall authorize the acquisition, possession and sale of cannabis
from the licensed premises of the retail dispensary by such licensee  to
cannabis consumers.
  2.  No  person  may have a direct or indirect financial or controlling
interest in more than three retail dispensary licenses  issued  pursuant
to this chapter.
  3.  No  person  holding  a  retail dispensary license may also hold an
adult-use cultivation, processor, microbusiness, cooperative or distrib-
utor license pursuant to this article.
  4. No retail license shall be granted for  any  premises,  unless  the
applicant  shall  be  the owner thereof, or shall be able to demonstrate
possession of the premises within thirty days of initial approval of the
license through a lease, management agreement or other agreement  giving
the applicant control over the premises, in writing, for a term not less
than the license period.
  5. With the exception of microbusiness licensees, no premises shall be
licensed  to  sell  cannabis  products,  unless  said  premises shall be
located in a store, the principal entrance to which shall  be  from  the
street  level and located on a public thoroughfare in premises which may
be occupied, operated or conducted for business, trade or industry or on
an arcade or sub-surface thoroughfare leading to a railroad terminal.
  6. No cannabis retail license shall be granted for any premises within
two hundred feet of a school grounds as such  term  is  defined  in  the
education law.
  §  73. Microbusiness license. 1. A microbusiness license shall author-
ize the limited cultivation, processing, distribution and dispensing  of
adult use cannabis and cannabis products.
  2.  A  microbusiness  licensee  may  not  hold  interest  in any other
license.
  3. The size and scope of a microbusiness shall be  determined  by  the
executive director.
  §  74.  Notification to municipalities of adult-use retail dispensary.
1. Not less than thirty days nor more  than  two  hundred  seventy  days
before  filing  an  application  for  licensure as an adult-use cannabis
retail dispensary, an applicant shall notify the municipality  in  which
the  premises  is  located  of  such  applicant's intent to file such an
application.

A. 1617--A                         33

  2. Such notification shall be made to the clerk of the  village,  town
or  city,  as  the  case  may  be,  wherein the premises is located. For
purposes of this section:
  (a) notification need only be given to the clerk of a village when the
premises is located within the boundaries of the village; and
  (b)  in the city of New York, the community board established pursuant
to section twenty-eight hundred of the New York city charter with juris-
diction over the area in which the premises is located shall be  consid-
ered the appropriate public body to which notification shall be given.
  3. Such notification shall be made in such form as shall be prescribed
by the rules of the office.
  4.  A  municipality may express an opinion for or against the granting
of such application. Any such opinion shall be deemed part of the record
upon which the office makes its  determination  to  grant  or  deny  the
application.
  5.  Such  notification  shall  be  made by: (a) certified mail, return
receipt requested; (b) overnight delivery service with proof of mailing;
or (c) personal service upon the  offices  of  the  clerk  or  community
board.
  6.  The office shall require such notification to be on a standardized
form that can be obtained on the internet or from the  office  and  such
notification to include:
  (a)  the trade name or "doing business as" name, if any, of the estab-
lishment;
  (b) the full name of the applicant;
  (c) the street address  of  the  establishment,  including  the  floor
location or room number, if applicable;
  (d)  the  mailing  address of the establishment, if different than the
street address;
  (e) the name, address and telephone number of the attorney  or  repre-
sentative of the applicant, if any;
  (f) a statement indicating whether the application is for:
  (i) a new establishment;
  (ii) a transfer of an existing licensed business;
  (iii) a renewal of an existing license; or
  (iv) an alteration of an existing licensed premises;
  (g)  if  the  establishment is a transfer or previously licensed prem-
ises, the name of the old establishment and such establishment's  regis-
tration or license number;
  (h)  in the case of a renewal or alteration application, the registra-
tion or license number of the applicant; and
  (i) the type of license.
  §  75.  On-site  consumption  license;  provisions  governing  on-site
consumption  licenses.  1. No licensed adult-use cannabis retail dispen-
sary shall be granted a cannabis on-site  consumption  license  for  any
premises,  unless  the applicant shall be the owner thereof, or shall be
in possession of said premises under a lease, in writing, for a term not
less than the license period except,  however,  that  such  license  may
thereafter  be renewed without the requirement of a lease as provided in
this section. This subdivision shall not apply to premises  leased  from
government agencies; provided, however, that the appropriate administra-
tor  of  such government agency provides some form of written documenta-
tion regarding the terms of occupancy under which the applicant is leas-
ing said premises from the government agency  for  presentation  to  the
office  at the time of the license application. Such documentation shall
include the terms of occupancy between the applicant and the  government

A. 1617--A                         34

agency, including, but not limited to, any short-term leasing agreements
or written occupancy agreements.
  2. No adult-use cannabis retail dispensary shall be granted a cannabis
on-site  consumption license for any premises within two hundred feet of
school grounds as such term is defined in the education law.
  3. The office may consider any or all of the following in  determining
whether public convenience and advantage and the public interest will be
promoted  by  the granting of a license for an on-site cannabis consump-
tion at a particular location:
  (a) that it is a privilege, and not a right,  to  cultivate,  process,
distribute, and sell cannabis;
  (b)  the number, classes, and character of other licenses in proximity
to the location and in the particular municipality or subdivision there-
of;
  (c) evidence  that  all  necessary  licenses  and  permits  have  been
obtained from the state and all other governing bodies;
  (d)  whether there is a demonstrated need for spaces to consume canna-
bis;
  (e) effect of the grant of the  license  on  pedestrian  or  vehicular
traffic, and parking, in proximity to the location;
  (f) the existing noise level at the location and any increase in noise
level that would be generated by the proposed premises;
  (g) the history of violations under the alcoholic beverage control law
or  this  chapter  at the location, as well as any pattern of violations
under the alcoholic beverage control law or this chapter,  and  reported
criminal activity at the proposed premises; and
  (h) any other factors specified by law or regulation that are relevant
to  determine  that  granting a license would promote public convenience
and advantage and the public interest of the community.
  4. If the office  shall  disapprove  an  application  for  an  on-site
consumption  license, it shall state and file in its offices the reasons
therefor and shall notify the  applicant  thereof.  Such  applicant  may
thereupon apply to the office for a review of such action in a manner to
be prescribed by the rules of the office.
  5.  No adult-use cannabis on-site consumption licensee shall keep upon
the licensed premises  any  adult-use  cannabis  products  except  those
purchased  from  a  licensed  distributor,  microbusiness  or registered
organization authorized to sell adult-use cannabis, and only in contain-
ers approved by the office. Such containers shall have  affixed  thereto
such  labels as may be required by the rules of the office.  No cannabis
retail licensee for on-site  consumption  shall  reuse,  refill,  tamper
with,  adulterate,  dilute  or  fortify the contents of any container of
cannabis products as received from the manufacturer or distributor.
  6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
give  away, or cause or permit or procure to be sold, delivered or given
away any cannabis for consumption  on  the  premises  where  sold  in  a
container or package containing more than one gram of cannabis.
  7.  Except  where  a  permit  to do so is obtained pursuant to section
405.10 of the penal law, no cannabis on-site consumption licensee  shall
suffer,  permit,  or promote an event on its premises wherein any person
shall use, explode, or cause to explode, any fireworks  or  other  pyro-
technics  in  a building as defined in paragraph e of subdivision one of
section 405.10 of the penal law, that is  covered  by  such  license  or
possess  such fireworks or pyrotechnics for such purpose. In addition to
any other penalty provided by law, a violation of this subdivision shall
constitute an adequate ground for instituting a proceeding  to  suspend,

A. 1617--A                         35

cancel,  or  revoke  the  license of the violator in accordance with the
applicable procedures specified in this chapter;  provided  however,  if
more than one licensee is participating in a single event, upon approval
by the office, only one licensee must obtain such permit.
  8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
consumption under this chapter shall be permitted to have any opening or
means of entrance or  passageway  for  persons  or  things  between  the
licensed premises and any other room or place in the building containing
the  licensed  premises,  or  any adjoining or abutting premises, unless
ingress and egress is restricted by an employee, agent of the  licensee,
or  other  method  approved  by  the office of controlling access to the
facility.
  9. Each cannabis on-site consumption licensee shall keep and  maintain
upon the licensed premises, adequate records of all transactions involv-
ing the business transacted by such licensee which shall show the amount
of  cannabis products, in an applicable metric measurement, purchased by
such licensee together with the names, license  numbers  and  places  of
business  of  the  persons from whom the same were purchased, the amount
involved in such purchases, as well as the sales  of  cannabis  products
made  by  such  licensee.  The office is hereby authorized to promulgate
rules and regulations permitting an on-site licensee  operating  two  or
more  premises separately licensed to sell cannabis products for on-site
consumption to inaugurate or retain in this state methods  or  practices
of  centralized  accounting,  bookkeeping,  control  records, reporting,
billing, invoicing or payment respecting purchases, sales or  deliveries
of cannabis products, or methods and practices of centralized receipt or
storage  of  cannabis  products within this state without segregation or
earmarking for any such  separately  licensed  premises,  wherever  such
methods  and  practices  assure  the  availability,  at  such licensee's
central or main office in this state, of data reasonably needed for  the
enforcement  of  this  chapter.  Such  records  shall  be  available for
inspection by any authorized representative of the office.
  10. All retail licensed premises shall be subject to inspection by any
peace officer, acting pursuant to his or her special duties,  or  police
officer and by the duly authorized representatives of the office, during
the  hours  when the said premises are open for the transaction of busi-
ness.
  11. A cannabis on-site consumption licensee shall not provide cannabis
products to any person under the age of twenty-one.
  § 76. Record keeping and tracking. 1. The executive director shall, by
regulation, require each licensee pursuant to this article to adopt  and
maintain  security,  tracking,  record  keeping,  record  retention  and
surveillance systems, relating to all cannabis at every stage of acquir-
ing, possession, manufacture, sale, delivery, transporting,  testing  or
distributing  by  the  licensee, subject to regulations of the executive
director.
  2. Every licensee shall keep and maintain upon the  licensed  premises
adequate  books  and  records of all transactions involving the licensee
and sale of its products, which shall include, but is  not  limited  to,
all information required by any rules promulgated by the office.
  3. Each sale shall be recorded separately on a numbered invoice, which
shall  have  printed  thereon  the number, the name of the licensee, the
address of the  licensed  premises,  and  the  current  license  number.
Licensed  producers  shall  deliver  to  the licensed distributor a true
duplicate invoice stating the name and address  of  the  purchaser,  the
quantity  purchased,  description  and  the  price of the product, and a

A. 1617--A                         36

true, accurate and complete statement of the  terms  and  conditions  on
which such sale is made.
  4. Such books, records and invoices shall be kept for a period of five
years  and shall be available for inspection by any authorized represen-
tative of the office.
  5. Each  adult-use  cannabis  retail  dispensary,  microbusiness,  and
on-site  consumption  licensee shall keep and maintain upon the licensed
premises, adequate records of all transactions  involving  the  business
transacted  by such licensee which shall show the amount of cannabis, in
weight, purchased by such licensee  together  with  the  names,  license
numbers  and  places  of business of the persons from whom the same were
purchased, the amount involved in such purchases, as well as  the  sales
of cannabis made by such licensee.
  §  77. Inspections and ongoing requirements. All licensed or permitted
premises, regardless of the  type  of  premises,  shall  be  subject  to
inspection  by the office, by the duly authorized representatives of the
office, by any peace officer acting  pursuant  to  his  or  her  special
duties,  or by a police officer, during the hours when the said premises
are open for the transaction of business. The office shall make  reason-
able  accommodations  so  that  ordinary business is not interrupted and
safety and security procedures are not compromised by the inspection.  A
person who holds a license or permit must make himself or herself, or an
agent  thereof, available and present for any inspection required by the
office.  Such inspection may include, but is not  limited  to,  ensuring
compliance by the licensee or permittee with all other applicable build-
ing codes, fire, health, safety, and governmental regulations, including
at the municipal, county, and state level.
  §  78.  Adult-use  cultivators,  processors  or distributors not to be
interested in retail dispensaries.  1. It shall be unlawful for a culti-
vator, processor, cooperative or distributor licensed under this article
to:
  (a) be interested directly or indirectly in  any  premises  where  any
cannabis product is sold at retail; or in any business devoted wholly or
partially  to the sale of any cannabis product at retail by stock owner-
ship, interlocking directors, mortgage or lien or any personal  or  real
property, or by any other means.
  (b)  make,  or cause to be made, any loan to any person engaged in the
manufacture or sale of any cannabis product at wholesale or retail.
  (c) make any gift or  render  any  service  of  any  kind  whatsoever,
directly  or indirectly, to any person licensed under this chapter which
in the judgment of the office may tend to  influence  such  licensee  to
purchase the product of such cultivator or processor or distributor.
  (d)  enter  into  any  contract  with any retail licensee whereby such
licensee agrees to confine his sales to cannabis  products  manufactured
or  sold  by  one or more such cultivator or processors or distributors.
Any such contract shall be void and subject the licenses of all  parties
concerned to revocation for cause.
  2.  The  provisions  of  this  section shall not prohibit a registered
organization authorized pursuant to section forty of this chapter,  from
cultivating,  processing,  distributing  or  selling  adult-use cannabis
under this article, at facilities wholly  owned  and  operated  by  such
registered  organization,  subject  to  any  conditions,  limitations or
restrictions established by the office and this chapter.
  3. The office shall have the power to create rules and regulations  in
regard to this section.

A. 1617--A                         37

  §  79.  Packaging  and labeling of adult-use cannabis products. 1. The
office is hereby authorized to promulgate rules and regulations  govern-
ing  the  advertising,  branding,  marketing,  packaging and labeling of
cannabis products, sold or possessed for sale in New York state, includ-
ing  rules pertaining to the accuracy of information and rules restrict-
ing marketing and advertising to youth.
  2. Such regulations shall include, but not be  limited  to,  requiring
that:
  (a)  packaging  meets  requirements  similar  to  the  federal "poison
prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
  (b) all cannabis-infused products shall have a separate packaging  for
each serving;
  (c)  prior  to  delivery  or sale at a retailer, cannabis and cannabis
products shall be labeled and placed in  a  resealable,  child-resistant
package; and
  (d) packages and labels shall not be made to be attractive to minors.
  3.  Such  regulations shall include requiring labels warning consumers
of any potential impact on human health resulting from  the  consumption
of  cannabis products that shall be affixed to those products when sold,
if such labels are deemed warranted by the office.
  4. Such rules and regulations shall establish methods  and  procedures
for  determining  serving sizes for cannabis-infused products and active
cannabis concentration per serving size.  Such  regulations  shall  also
require  a nutritional fact panel that incorporates data regarding serv-
ing sizes and potency thereof.
  5. The packaging, sale, marketing, branding, advertising, labeling  or
possession  by  any  licensee  of  any  cannabis  product not labeled or
offered in conformity with rules and regulations promulgated in  accord-
ance  with  this  section shall be grounds for the imposition of a fine,
and/or the suspension, revocation or cancellation of a license.
  § 80. Laboratory testing. 1. Every  processor  of  adult-use  cannabis
shall  contract  with  an  independent  laboratory permitted pursuant to
section one hundred twenty-nine of this chapter, to  test  the  cannabis
products it produces pursuant to rules and regulations prescribed by the
office.  The executive director may assign an approved testing laborato-
ry, which the processor of adult-use cannabis must use.
  2.  Adult-use  cannabis  processors shall make laboratory test reports
available to licensed  distributors  and  retail  dispensaries  for  all
cannabis products manufactured by the processor.
  3.  Licensed retail dispensaries shall maintain accurate documentation
of laboratory test reports for each cannabis product offered for sale to
cannabis consumers. Such documentation shall be made publicly  available
by the licensed retail dispensary.
  4.  Onsite  laboratory  testing  by licensees is permissible; however,
such testing shall not be certified by the office and  does  not  exempt
the  licensee  from  the  requirements of quality assurance testing at a
testing laboratory pursuant to this section.
  5. An owner of a cannabis laboratory testing permit shall not  hold  a
license  in  any other category within this article and shall not own or
have ownership interest in a registered organization registered pursuant
to article three of this chapter.
  6. The office shall have the authority to require any  licensee  under
this  article  to  submit  cannabis  or cannabis products to one or more
independent laboratories for testing.

A. 1617--A                         38

  § 81. Provisions governing the cultivation and processing of adult-use
cannabis. 1. Cultivation of cannabis must not be visible from  a  public
place by normal unaided vision.
  2.  No  cultivator  or  processor of adult-use cannabis shall sell, or
agree to sell or deliver in the state any cannabis products, as the case
may be, except in sealed containers containing quantities in  accordance
with  size  standards  pursuant  to  rules  adopted  by the office. Such
containers shall have affixed thereto such labels as may be required  by
the rules of the office.
  3.  No  cultivator or processor of adult-use cannabis shall furnish or
cause to be furnished to any licensee, any exterior  or  interior  sign,
printed,  painted,  electric  or  otherwise, except as authorized by the
office. The office may make such rules as it deems  necessary  to  carry
out the purpose and intent of this subdivision.
  4.  Cultivators  of  adult-use cannabis shall only use pesticides that
are registered by the department of environmental conservation  or  that
specifically  meet  the  United  States  environmental protection agency
registration exemption criteria for minimum risk pesticides, and only in
compliance with regulations, standards  and  guidelines  issued  by  the
department of environmental conservation.
  5.  No  cultivator  or  processor  of adult-use cannabis, including an
adult-use cannabis cooperative or microbusiness may offer any incentive,
payment or other benefit to a licensed  cannabis  retail  dispensary  in
return for carrying the cultivator, processor, cooperative or microbusi-
ness products, or preferential shelf placement.
  6.  All  cannabis  products shall be processed in accordance with good
manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
Federal Regulations, as may be modified by  the  executive  director  in
regulation.
  7. No processor of adult-use cannabis shall produce any product which,
in  the  discretion of the office, is designed to appeal to anyone under
the age of twenty-one years.
  8. The use or integration of alcohol or nicotine in cannabis  products
is strictly prohibited.
  § 82. Provisions governing the distribution of adult-use cannabis.  1.
No  distributor  shall  sell,  or  agree to sell or deliver any cannabis
products, as the case may be, in any container, except in a sealed pack-
age. Such containers shall have affixed thereto such labels  as  may  be
required by the rules of the office.
  2. No distributor shall deliver any cannabis products, except in vehi-
cles  owned  and  operated by such distributor, or hired and operated by
such distributor from a trucking or  transportation  company  registered
with the office, and shall only make deliveries at the licensed premises
of the purchaser.
  3.  Each  distributor  shall keep and maintain upon the licensed prem-
ises, adequate books and records of all transactions involving the busi-
ness transacted by such distributor, which  shall  show  the  amount  of
cannabis products purchased by such distributor together with the names,
license numbers and places of business of the persons from whom the same
was  purchased and the amount involved in such purchases, as well as the
amount of cannabis products sold by such distributor together  with  the
names,  addresses,  and  license  numbers  of such purchasers. Each sale
shall be recorded separately on a numbered  invoice,  which  shall  have
printed thereon the number, the name of the licensee, the address of the
licensed  premises,  and  the  current  license number. Such distributor
shall deliver to the purchaser a true duplicate invoice stating the name

A. 1617--A                         39

and address  of  the  purchaser,  the  quantity  of  cannabis  products,
description  by  brands  and  the price of such cannabis products, and a
true, accurate and complete statement of the  terms  and  conditions  on
which  such sale is made. Such books, records and invoices shall be kept
for a period of five years and shall be available for inspection by  any
authorized representative of the office.
  4. No distributor shall furnish or cause to be furnished to any licen-
see, any exterior or interior sign, printed, painted, electric or other-
wise, unless authorized by the office.
  5.  No  distributor  shall  provide  any  discount, rebate or customer
loyalty program to any licensed retailer, except as otherwise allowed by
the office.
  6. The executive director  is  authorized  to  promulgate  regulations
establishing  a  maximum  margin  for  which a distributor may mark up a
cannabis product for sale to a retail dispensary. Any adult-use cannabis
product sold by a distributor for more than the maximum  markup  allowed
in regulation, shall be unlawful.
  7.  Each  distributor  shall keep and maintain upon the licensed prem-
ises, adequate books and records to demonstrate the distributor's actual
cost of doing business, using accounting standards and methods regularly
employed in the determination of costs for the purpose of federal income
tax reporting, for the total operation  of  the  licensee.  Such  books,
records  and invoices shall be kept for a period of five years and shall
be available for inspection by  any  authorized  representative  of  the
office  for  use in determining the maximum markup allowed in regulation
pursuant to subdivision six of this section.
  § 83. Provisions governing adult-use cannabis retail dispensaries.  1.
No cannabis retail licensee shall sell, deliver, or give away  or  cause
or permit or procure to be sold, delivered or given away any cannabis to
any person, actually or apparently, under the age of twenty-one years.
  2.  No  cannabis  retail  licensee shall sell alcoholic beverages, nor
have or possess a license or permit to sell alcoholic beverages, on  the
same premises where cannabis products are sold.
  3.  No  sign of any kind printed, painted or electric, advertising any
brand shall be permitted on the exterior or interior of  such  premises,
except by permission of the office.
  4.  No  cannabis  retail  licensee  shall sell or deliver any cannabis
products to any person with knowledge of, or with  reasonable  cause  to
believe,  that the person to whom such cannabis products are being sold,
has acquired the same for the purpose of selling or giving them away  in
violation of the provisions of this chapter or in violation of the rules
and regulations of the office.
  5.  All  premises  licensed  under  this  section  shall be subject to
inspection by any peace officer described in subdivision four of section
2.10 of the criminal procedure law acting pursuant to his or her special
duties, or police officer or any duly authorized representative  of  the
office,  during the hours when the said premises are open for the trans-
action of business.
  6. No cannabis retail licensee shall be interested, directly or  indi-
rectly, in any cultivator, processor, distributor or microbusiness oper-
ator licensed pursuant to this article, by stock ownership, interlocking
directors,  mortgage  or lien on any personal or real property or by any
other means. Any lien, mortgage or other interest  or  estate,  however,
now held by such retailer on or in the personal or real property of such
manufacturer  or  distributor,  which mortgage, lien, interest or estate
was acquired on or before December thirty-first, two thousand  eighteen,

A. 1617--A                         40

shall  not  be  included  within  the  provisions  of  this subdivision;
provided, however, the burden of establishing the time of the accrual of
the interest comprehended by this subdivision, shall be upon the  person
who claims to be entitled to the protection and exemption afforded here-
by.
  7. No cannabis retail licensee shall make or cause to be made any loan
to  any person engaged in the cultivation, processing or distribution of
cannabis pursuant to this article.
  8. Each cannabis retail licensee shall designate  the  price  of  each
item  of  cannabis  by  attaching to or otherwise displaying immediately
adjacent to each such item displayed in the  interior  of  the  licensed
premises where sales are made a price tag, sign or placard setting forth
the price at which each such item is offered for sale therein.
  9. No person licensed to sell cannabis products at retail, shall allow
or  permit any gambling, or offer any gambling on the licensed premises,
or allow or permit illicit drug activity on the licensed  premises.  The
use of the licensed premises or any part thereof for the sale of lottery
tickets,  when duly authorized and lawfully conducted thereon, shall not
constitute gambling within the meaning of this subdivision.
  10. If an employee of a  cannabis  retail  licensee  suspects  that  a
cannabis  consumer  may  be  abusing  cannabis,  such  an employee shall
encourage such cannabis consumer to  seek  help  from  a  substance  use
disorder  program  or harm reduction services. Cannabis retail licensees
shall develop standard operating procedures and  written  materials  for
employees  to  utilize  when  consulting  consumers for purposes of this
subdivision.
  11. The executive director is  authorized  to  promulgate  regulations
governing  licensed  adult-use  dispensing facilities, including but not
limited to, the hours of operation, size and location  of  the  licensed
facility, potency and types of products offered and establishing a mini-
mum  margin for which a retail dispensary must markup a cannabis product
or products before selling to a cannabis consumer. Any adult-use  canna-
bis product sold by a retail dispensary for less than the minimum markup
allowed in regulation, shall be unlawful.
  § 84. Adult-use cannabis advertising.  1. The office is hereby author-
ized  to  promulgate rules and regulations governing the advertising and
marketing of licensed cannabis and any cannabis products or services.
  2. The office shall promulgate explicit rules prohibiting  advertising
that:
  (a) is false, deceptive, or misleading;
  (b) promotes overconsumption;
  (c) depicts consumption by children or other minors;
  (d) is designed in any way to appeal to children or other minors;
  (e)  is  within two hundred feet of the perimeter of a school grounds,
playground, child care center, public park, or library;
  (f) is within two hundred feet of  school  grounds  as  such  term  is
defined in section 220.00 of the penal law;
  (g) is in public transit vehicles and stations;
  (h) is in the form of an unsolicited internet pop-up;
  (i) is on publicly owned or operated property; or
  (j)  makes medical claims or promotes adult-use cannabis for a medical
or wellness purpose.
  3. The office shall promulgate explicit rules prohibiting all  market-
ing  strategies and implementation including, but not limited to, brand-
ing, packaging, labeling, location of cannabis retailers, and advertise-
ments that are designed to:

A. 1617--A                         41

  (a) appeal to persons less then twenty-one years of age; or
  (b) disseminate false or misleading information to customers.
  4. The office shall promulgate explicit rules requiring that:
  (a)  all  advertisements and marketing accurately and legibly identify
the licensee or other business responsible for its content; and
  (b) any broadcast, cable,  radio,  print  and  digital  communications
advertisements  only be placed where the audience is reasonably expected
to be twenty-one years of age  or  older,  as  determined  by  reliable,
up-to-date audience composition data.
  §  85.  Minority,  women-owned  businesses  and disadvantaged farmers;
incubator program.  1. The office shall implement a social and  economic
equity  plan  and  actively promote racial, ethnic, and gender diversity
when issuing licenses for adult-use cannabis related activities, includ-
ing by prioritizing consideration  of  applications  by  applicants  who
qualify as a minority and women-owned business or disadvantaged farmers.
Such qualifications shall be determined by the office in regulation.
  2.  The  office  shall  create  a  social  and economic equity plan to
promote diversity in ownership and employment in the adult-use  cannabis
industry and ensure inclusion of:
  (a) minority-owned businesses;
  (b) women-owned businesses;
  (c)  minority  and  women-owned  businesses, as defined in subdivision
five of this section; and
  (d) disadvantaged farmers, as defined  in  subdivision  five  of  this
section.
  3.  The  social  and  economic  equity  plan shall consider additional
criteria in its licensing determinations. Under the social and  economic
equity  plan,  extra  weight  shall be given to applications that demon-
strate that an applicant:
  (a) is a member of a community group that has been  disproportionately
impacted by the enforcement of cannabis prohibition;
  (b)  has  an  income lower than eighty percent of the median income of
the county in which the applicant resides; and
  (c) was convicted of a cannabis-related offense prior to the effective
date of this chapter, or had  a  parent,  guardian,  child,  spouse,  or
dependent,  or was a dependent of an individual who, prior to the effec-
tive date of this chapter, was convicted of a cannabis-related offense.
  4. The office shall also create an incubator program to provide direct
support to social and economic equity applicants after  they  have  been
granted  licenses.  The program shall provide direct support in the form
of counseling services, education, small business coaching, and  compli-
ance assistance.
  5.  For  the purposes of this section, the following definitions shall
apply:
  (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
including  a sole proprietorship, partnership, limited liability company
or corporation that is:
  (i) at least fifty-one percent owned by one  or  more  minority  group
members;
  (ii)  an enterprise in which such minority ownership is real, substan-
tial and continuing;
  (iii) an enterprise in which such minority ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
  (iv) an enterprise authorized to do business in this state  and  inde-
pendently owned and operated; and

A. 1617--A                         42

  (v) an enterprise that is a small business.
  (b)  "minority  group  member"  shall  mean a United States citizen or
permanent resident alien who is and can demonstrate membership in one of
the following groups:
  (i) black persons having origins in any of the  black  African  racial
groups;
  (ii)  Hispanic  persons  of  Mexican,  Puerto Rican, Dominican, Cuban,
Central or South American of either Indian or Hispanic  origin,  regard-
less of race;
  (iii)  Native American or Alaskan native persons having origins in any
of the original peoples of North America; or
  (iv) Asian and Pacific Islander persons having origins in any  of  the
far  east  countries,  south  east  Asia, the Indian subcontinent or the
Pacific islands.
  (c) "women-owned business" shall mean a business enterprise, including
a sole proprietorship, partnership, limited liability company or  corpo-
ration that is:
  (i)  at  least  fifty-one  percent  owned by one or more United States
citizens or permanent resident aliens who are women;
  (ii) an enterprise in which the ownership interest of  such  women  is
real, substantial and continuing;
  (iii)  an  enterprise  in which such women ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
  (iv) an enterprise authorized to do business in this state  and  inde-
pendently owned and operated; and
  (v) an enterprise that is a small business.
  (d) a firm owned by a minority group member who is also a woman may be
defined as a minority-owned business, a women-owned business, or both.
  (e)  "disadvantaged  farmer"  shall  mean a New York state resident or
business  enterprise,  including  a  sole  proprietorship,  partnership,
limited  liability  company  or  corporation, that has reported at least
two-thirds of its federal gross income as income  from  farming,  in  at
least one of the past five preceding tax years, and who:
  (i) farms in a county that has greater than ten percent rate of pover-
ty  according  to  the  latest U.S. Census Bureau's American Communities
Survey;
  (ii) has been disproportionately impacted by low commodity  prices  or
faces the loss of farmland through development or suburban sprawl; and
  (iii)  meets  any other qualifications as defined in regulation by the
office.
  6. The office shall actively promote applicants  that  foster  racial,
ethnic, and gender diversity in their workforce.
  7. Licenses issued under the social and economic equity plan shall not
be  transferable  except  to qualified social and economic equity appli-
cants and only upon prior written approval of the executive director.
  8. The office shall collect demographic data on owners  and  employees
in the adult-use cannabis industry and shall annually publish such data.
  §  86. Regulations.   The executive director shall make regulations to
implement this article.

                                ARTICLE 5
                              HEMP CANNABIS

Section 90.  Cannabinoid related hemp cannabis licensing.
        91.  Cannabinoid grower licenses.

A. 1617--A                         43

        92.  Cannabinoid extractor license.
        93.  Cannabinoid license applications.
        94.  Information to be requested in applications for licenses.
        95.  Fees.
        96.  Selection criteria.
        97.  Limitations of licensure; duration.
        98.  License renewal.
        99.  Form of license.
        100. Amendments  to  license  and  duty  to  update  information
               submitted for licensing.
        101. Record keeping and tracking.
        102. Inspections and ongoing requirements.
        103. Packaging and labeling of hemp cannabis.
        104. Provisions governing the growing  and  extracting  of  hemp
               cannabis.
        105. Laboratory testing.
        106. Advertising.
        107. Research.
        108. Regulations.
  §  90.  Cannabinoid related hemp cannabis licensing.  1. Persons grow-
ing, processing,  extracting,  and/or  manufacturing  hemp  cannabis  or
producing  hemp  cannabis  products  distributed,  sold  or marketed for
cannabinoid content and used or intended for human or animal consumption
or use, shall be required to obtain the following  license  or  licenses
from the office, depending upon the operation:
  (a) cannabinoid grower license; and/or
  (b) cannabinoid extractor license.
  2. Notwithstanding subsection one of this section, those persons grow-
ing,  processing  or  manufacturing  food  or food ingredients from hemp
shall be subject to regulation and/or licensing  under  the  agriculture
and markets law.
  §  91. Cannabinoid grower licenses.  1. A cannabinoid grower's license
authorizes the acquisition, possession, cultivation  and  sale  of  hemp
cannabis grown or used for its cannabinoid content on the licensed prem-
ises of the grower.
  2. A person holding a cannabinoid grower's license shall not sell hemp
products  marketed,  distributed or sold for its cannabinoid content and
intended for human consumption or use without also being licensed as  an
extractor pursuant to this article.
  3.  Persons growing industrial hemp pursuant to article twenty-nine of
the agriculture and markets law are not authorized to and shall not sell
hemp cannabis for human or animal consumption.
  4. A person licensed under article twenty-nine of the agriculture  and
markets  law  as  an  industrial hemp grower may apply for a cannabinoid
grower's license provided that it can demonstrate to the office that its
cultivation of industrial hemp  meets  all  the  requirements  for  hemp
cannabis cultivated under a cannabinoid grower's license.
  §  92.  Cannabinoid  extractor  license.    1. A cannabinoid extractor
license authorizes the licensee's  acquisition,  possession,  extraction
and manufacture of hemp from a licensed cannabinoid grower for the proc-
essing  of  hemp  cannabis  or  the production of hemp cannabis products
marketed, distributed or  sold  for  cannabinoid  content  and  used  or
intended for human or animal consumption or use.
  2.  No  cannabinoid extractor licensee shall engage in any other busi-
ness on the licensed premises; except that  nothing  contained  in  this

A. 1617--A                         44

chapter  shall  prevent a cannabinoid extractor licensee from also being
licensed as a cannabinoid grower on the same premises.
  3.  Notwithstanding  subdivisions one and two of this section, nothing
shall prevent a cannabinoid extractor from manufacturing  hemp  products
not used or intended for human or animal consumption or use.
  §  93.  Cannabinoid license applications. 1. Persons shall apply for a
cannabinoid grower license and/or a  cannabinoid  extractor  license  by
submitting  an application upon a form supplied by the office, providing
all the requested information, verified by the applicant or  an  author-
ized representative of the applicant.
  2.  A  separate  license  shall be required for each facility at which
growing or extracting is conducted.
  3. Each application shall remit with its application the fee for  each
requested license.
  §  94.  Information  to be requested in applications for licenses.  1.
The office shall have the authority to prescribe the manner and form  in
which an application must be submitted to the office for licensure under
this article.
  2.  The executive director is authorized to adopt regulations, includ-
ing by emergency rule, establishing information which must  be  included
on an application for licensure under this article. Such information may
include, but is not limited to:  information about the applicant's iden-
tity,  including  racial  and ethnic diversity; ownership and investment
information, including the corporate structure; evidence of  good  moral
character,  including the submission of fingerprints by the applicant to
the division of criminal justice services; information about  the  prem-
ises  to  be  licensed;  financial statements; and any other information
prescribed by in regulation.
  3. All license applications shall be signed by the  applicant  (if  an
individual), by a managing partner (if a limited liability corporation),
by an officer (if a corporation), or by all partners (if a partnership).
Each  person  signing  such  application shall verify it or affirm it as
true under the penalties of perjury.
  4. All license or permit applications shall be accompanied by a check,
draft or other forms of payment as the office may require  or  authorize
in the amount required by this article for such license or permit.
  5.  If there be any change, after the filing of the application or the
granting of a license, in any of the facts required to be set  forth  in
such application, a supplemental statement giving notice of such change,
cost and source of money involved in the change, duly verified, shall be
filed  with  the office within ten days after such change. Failure to do
so shall, if willful and deliberate, be  cause  for  revocation  of  the
license.
  6. In giving any notice, or taking any action in reference to a licen-
see  of  a  licensed  premises, the office may rely upon the information
furnished  in  such  application  and  in  any  supplemental   statement
connected therewith, and such information may be presumed to be correct,
and  shall  be  binding  upon  a  registered  organization,  licensee or
licensed  premises  as  if  correct.  All  information  required  to  be
furnished in such application or supplemental statements shall be deemed
material  in  any  prosecution  for  perjury,  any proceeding to revoke,
cancel or suspend any license, and  in  the  office's  determination  to
approve or deny the license.
  7.  The  office  may,  in  its discretion, waive the submission of any
category of information described in this section for  any  category  of
license  or permit, provided that it shall not be permitted to waive the

A. 1617--A                         45

requirement for submission of any such category  of  information  solely
for an individual applicant or applicants.
  §  95. Fees. The office shall have the authority to charge licensees a
biennial license fee. Such fee may be based on the amount of hemp canna-
bis to be grown, processed or extracted by the licensee, the gross annu-
al receipts of the licensee for the  previous  license  period,  or  any
other factors deemed appropriate by the office.
  § 96. Selection criteria. 1. An applicant shall furnish evidence:
  (a) its ability to effectively maintain a delta-9 tetrahydrocannabinol
concentration  that  does not exceed a percentage of delta-9 tetrahydro-
cannabinol cannabis set by the executive director on a dry weight  basis
of  any part of the plant of the genus cannabis, or per volume or weight
of cannabis product, or the combined percent of delta-9 tetrahydrocanna-
binol and tetrahydrocannabinolic acid in any part of the  plant  of  the
genus cannabis regardless of moisture content, for all hemp cannabis and
hemp  derived  products cultivated, processed or extracted by the appli-
cant;
  (b) its ability to comply with all applicable  state  laws  and  regu-
lations,  including, without limitation, the provisions of article four-
teen of the agriculture and markets law;
  (c) that the applicant is ready, willing and able to properly carry on
the activities for which a license is sought; and
  (d) that the applicant is in possession of or has  the  right  to  use
land, buildings and equipment sufficient to properly carry on the activ-
ity described in the application.
  2.  The  office,  in considering whether to grant the license applica-
tion, shall consider whether:
  (a) it is in the public interest that such license be granted,  taking
into  consideration  whether  the number of licenses will be adequate or
excessive to reasonably serve demand;
  (b) the applicant and its managing officers are of good moral  charac-
ter  and  do  not  have  an  ownership  or  controlling interest in more
licenses or permits than allowed by this chapter; and
  (c) the applicant satisfies any other conditions as determined by  the
office.
  3.  If  the  executive  director  is  not satisfied that the applicant
should be issued a license, the  executive  director  shall  notify  the
applicant in writing of the specific reason or reasons for denial.
  4.  The  office  shall  give priority in licensing to residents of the
state of New York. Applicants must have lived in New York state  for  at
least  three  years  prior  to  the effective date of this chapter to be
granted such priority.
  5. The executive director shall have authority and sole discretion  to
determine the number of licenses issued pursuant to this article.
  §  97.  Limitations  of licensure; duration. 1. No license pursuant to
this article may be issued to a  person  under  the  age  of  twenty-one
years.
  2.  The  office  shall  have  the authority to limit, by canopy, plant
count or other means, the amount of hemp cannabis allowed to  be  culti-
vated, processed, extracted or sold by a licensee.
  3.  All  licenses  under this article shall expire two years after the
date of issue and be subject to any rules or limitations  prescribed  by
the executive director in regulation.
  §  98. License renewal. 1. Each license, issued pursuant to this arti-
cle, may be renewed upon application therefor by the  licensee  and  the
payment of the fee for such license as prescribed by this article.

A. 1617--A                         46

  2.  In  the case of applications for renewals, the office may dispense
with the requirements of such statements as it deems unnecessary in view
of those contained in the application made for the original license, but
in any event the submission of  photographs  of  the  licensed  premises
shall  be  dispensed with, provided the applicant for such renewal shall
file a statement with the office to the effect that there  has  been  no
alteration of such premises since the original license was issued.
  3.  The office may make such rules as may be necessary, not inconsist-
ent with this chapter, regarding applications for renewals  of  licenses
and permits and the time for making the same.
  4.  The  office  shall provide an application for renewal of a license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
  5. The office may only issue a renewal license  upon  receipt  of  the
prescribed  renewal  application  and renewal fee from a licensee if, in
addition to the criteria in section ninety-four  of  this  article,  the
license's license is not under suspension and has not been revoked.
  6. The office shall have the authority to charge applicants for licen-
sure  under  this article a non-refundable application fee. Such fee may
be based on the type of licensure sought, cultivation and/or  production
volume,  or  any  other factors deemed reasonable and appropriate by the
office to achieve the policy and purpose of this chapter.
  § 99. Form of license. Licenses issued pursuant to this article  shall
specify:
  1. the name and address of the licensee;
  2. the activities permitted by the license;
  3.  the  land,  buildings  and  facilities  that  may  be used for the
licensed activities of the licensee;
  4. a unique license number issued by the office to the licensee; and
  5. such other information as the executive director shall deem  neces-
sary to assure compliance with this chapter.
  §  100. Amendments to license and duty to update information submitted
for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
license  may  be  amended  to  allow the licensee to relocate within the
state, to add or delete licensed activities or facilities, or  to  amend
the  ownership  or  organizational  structure  of the entity that is the
licensee. The fee for such amendment shall be two hundred fifty dollars.
  2. In the event that any of the information provided by the  applicant
changes  either while the application is pending or after the license is
granted, within ten days of any such change, the applicant  or  licensee
shall submit to the office a verified statement setting forth the change
in circumstances of facts set forth in the application. Failure to do so
shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
license.
  3. A license shall become void by a change in  ownership,  substantial
corporate change or location without prior written approval of the exec-
utive  director.    The  executive  director  may promulgate regulations
allowing for certain types of changes in ownership without the need  for
prior written approval.
  4.  For purposes of this section, "substantial corporate change" shall
mean:
  (a) for a corporation, a change of eighty percent or more of the offi-
cers and/or directors, or a transfer of eighty percent or more of  stock
of such corporation, or an existing stockholder obtaining eighty percent
or more of the stock of such corporation; and

A. 1617--A                         47

  (b)  for  a  limited  liability company, a change of eighty percent or
more of the managing members of the company, or  a  transfer  of  eighty
percent  or  more  of ownership interest in said company, or an existing
member obtaining a cumulative of eighty percent or more of the ownership
interest in said company.
  §  101.  Record keeping and tracking. 1. The executive director shall,
by regulation, require each licensee pursuant to this article  to  adopt
and  maintain  security,  tracking, record keeping, record retention and
surveillance systems, relating to all hemp cannabis at  every  stage  of
acquiring,  possession,  manufacture,  transport,  sale, or delivery, or
distribution by the licensee, subject to regulations  of  the  executive
director.
  2.  Every licensee shall keep and maintain upon the licensed premises,
adequate books and records of all transactions  involving  the  licensee
and  sale  of its products, which shall include all information required
by rules promulgated by the office.
  3. Each sale shall be recorded separately on a numbered invoice, which
shall have printed thereon the number, the name  of  the  licensee,  the
address of the licensed premises, and the current license number.
  4. Such books, records and invoices shall be kept for a period of five
years  and shall be available for inspection by any authorized represen-
tative of the office.
  § 102. Inspections and ongoing requirements. All  licensees  shall  be
subject to reasonable inspection by the office, and a person who holds a
license must make himself or herself, or an agent thereof, available and
present for any inspection required by the office. The office shall make
reasonable  accommodations  so that ordinary business is not interrupted
and  safety  and  security  procedures  are  not  compromised   by   the
inspection.
  §  103.  Packaging  and  labeling of hemp cannabis.   1. The office is
hereby authorized to promulgate  rules  and  regulations  governing  the
packaging  and labeling of hemp cannabis products, sold or possessed for
sale in New York state.
  2. Such regulations shall include, but not be  limited  to,  requiring
labels warning consumers of any potential impact on human health result-
ing from the consumption of hemp cannabis products that shall be affixed
to  those products when sold, if such labels are deemed warranted by the
office.
  3. Such rules and regulations shall establish methods  and  procedures
for  determining,  among  other  things, serving sizes for hemp cannabis
products, active cannabinoid concentration per serving size, and  number
of  servings per container. Such regulations shall also require a nutri-
tional fact panel that incorporates data  regarding  serving  sizes  and
potency thereof.
  4.  The  packaging,  sale,  or  possession by any licensee of any hemp
product intended for human or animal consumption or use not  labeled  or
offered  in conformity with rules and regulations promulgated in accord-
ance with this section shall be grounds for the imposition  of  a  fine,
and/or the suspension, revocation or cancellation of a license.
  §  104. Provisions governing the growing and extracting of hemp canna-
bis.  1. No licensed cannabinoid grower  or  extractor  shall  sell,  or
agree to sell or deliver in the state any hemp cannabis products, as the
case  may  be,  except  in  sealed  containers  containing quantities in
accordance with size standards pursuant to rules adopted by the  office.
Such  containers  shall  have  affixed  thereto  such  labels  as may be
required by the rules of the office.

A. 1617--A                         48

  2. Licensed cannabinoid growers shall only  use  pesticides  that  are
registered  by  the New York state department of environmental conserva-
tion  or  that  specifically  meet  the  United   States   environmental
protection  agency  registration  exemption  criteria  for  minimum risk
pesticides,  and  only  in  compliance  with  regulations, standards and
guidelines issued by the department of environmental conservation.
  3. All hemp cannabis products shall be extracted and  manufactured  in
accordance  with  good  manufacturing processes, pursuant to Part 111 of
Title 21 of the Code of Federal Regulations as may be  modified  by  the
executive director in regulation.
  4.  The  use  or  integration  of alcohol or nicotine in hemp cannabis
products is strictly prohibited.
  § 105.  Laboratory  testing.  1.  Every  cannabinoid  extractor  shall
contract  with  an  independent laboratory to test the cannabis products
produced by the licensed extractor. The executive director, in consulta-
tion with the commissioner of health, shall approve the  laboratory  and
require  that  the  laboratory report testing results in a manner deter-
mined by the executive director. The executive director is authorized to
issue regulations requiring the laboratory to perform certain tests  and
services.
  2. Cannabinoid extractors shall make laboratory test reports available
to  persons holding a cannabinoid permit pursuant to article six of this
chapter for all cannabis products manufactured by the licensee.
  3. On-site laboratory testing by licensees  is  permissible;  however,
such  testing  shall  not be certified by the office and does not exempt
the licensee from the requirements of quality  assurance  testing  at  a
testing laboratory pursuant to this section.
  §  106. Advertising. The office shall promulgate rules and regulations
governing the  advertising  of  hemp  cannabis  and  any  other  related
products or services as determined by the executive director.
  §  107. Research. 1. The office shall promote research and development
through public-private partnerships  to  bring  new  hemp  cannabis  and
industrial hemp derived products to market within the state.
  2.  The executive director may develop and carry out research programs
relating to industrial hemp and hemp cannabis.
  § 108. Regulations. The executive director shall make  regulations  to
implement this article.

                                ARTICLE 6
                           GENERAL PROVISIONS

Section 125. General prohibitions and restrictions.
        126. License  to  be confined to premises licensed; premises for
               which no license shall be granted; transporting cannabis.
        127. Protections for the use  of  cannabis;  unlawful  discrimi-
               nations prohibited.
        128. Registrations and licenses.
        129. Laboratory testing permit.
        130. Special use permits.
        131. Professional and medical record keeping.
        132. Local opt-out; municipal control and preemption.
        133. Personal cultivation.
        134. Executive   director  to  be  necessary  party  to  certain
               proceedings.
        135. Penalties for violation of this chapter.

A. 1617--A                         49

        136. Revocation  of  registrations,  licenses  and  permits  for
               cause; procedure for revocation or cancellation.
        137. Lawful actions pursuant to this chapter.
        138. Review by courts.
        139. Illicit cannabis.
        140. Injunction for unlawful manufacture, sale or consumption of
               cannabis.
        141. Persons  forbidden  to  traffic cannabis; certain officials
               not to be interested in manufacture or sale  of  cannabis
               products.
        142. Access to criminal history information through the division
               of criminal justice services.
  §  125.  General  prohibitions  and restrictions.   1. No person shall
cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
retail any cannabis, cannabis product, medical cannabis or hemp cannabis
product within the state without obtaining the appropriate registration,
license, or permit therefor required by this chapter.
  2.  No  registered organization, licensee, or permittee shall sell, or
agree to sell or deliver in this state any cannabis or hemp cannabis for
the purposes of resale  to  any  person  who  is  not  duly  registered,
licensed  or permitted pursuant to this chapter to sell such product, at
wholesale or retail, as the case may be, at the time of  such  agreement
and sale.
  3. No registered organization, licensee, or permittee shall employ, or
permit  to  be  employed, or shall allow to work, on any premises regis-
tered or licensed for retail sale hereunder, any person under the age of
twenty-one years in any capacity where the duties of such person require
or permit such person to sell,  dispense  or  handle  cannabis  or  hemp
cannabis.
  4.  No  registered  organization,  licensee,  or permittee shall sell,
deliver or give away, or cause, permit or procure to be sold,  delivered
or  given  away any cannabis, cannabis product, medical cannabis or hemp
cannabis on credit; except that a registered organization,  licensee  or
permittee may accept third party credit cards for the sale of any canna-
bis, cannabis product, medical cannabis or hemp cannabis for which it is
registered,  licensed  or  permitted  to dispense or sell to patients or
cannabis consumers. This includes, but is not limited to,  any  consign-
ment sale of any kind.
  5.  No  registered organization, licensee, or permittee shall cease to
be operated as a bona fide or legitimate  premises  within  the  contem-
plation  of  the  registration, license, or permit issued for such prem-
ises, as determined within the judgment of the office.
  6. No registered organization, licensee, or  permittee  shall  refuse,
nor  any  person  holding a registration, license, or permit refuse, nor
any officer or director of any corporation  or  organization  holding  a
registration,  license, or permit refuse, to appear and/or testify under
oath at an inquiry or hearing held by the office, with  respect  to  any
matter bearing upon the registration, license, or permit, the conduct of
any  people  at  the licensed premises, or bearing upon the character or
fitness of such registrant, licensee, or permittee to continue  to  hold
any  registration,  license, or permit. Nor shall any of the above offer
false testimony under oath at such inquiry or hearing.
  7. No registered organization, licensee, or  permittee  shall  engage,
participate  in, or aid or abet any violation or provision of this chap-
ter, or the rules or regulations of the office.

A. 1617--A                         50

  8. The proper conduct of registered, licensed, or  permitted  premises
is  essential  to the public interest. Failure of a registered organiza-
tion, licensee, or permittee to exercise adequate supervision  over  the
registered, licensed, or permitted location poses a substantial risk not
only  to the objectives of this chapter but imperils the health, safety,
and welfare of the people of this state. It shall be the  obligation  of
each  person  registered,  licensed,  or permitted under this chapter to
ensure that a high degree of supervision is exercised over any  and  all
conduct  at  any  registered, licensed, or permitted location at any and
all times in order to safeguard against abuses of the privilege of being
registered, licensed, or permitted, as well as other violations of  law,
statute, rule, or regulation. Persons registered, licensed, or permitted
shall be held strictly accountable for any and all violations that occur
upon  any  registered,  licensed, or permitted premises, and for any and
all violations committed by  or  permitted  by  any  manager,  agent  or
employee of such registered, licensed, or permitted person.
  9.  It  shall  be  unlawful for any person, partnership or corporation
operating a place for profit or pecuniary gain, with a capacity for  the
assemblage  of  twenty  or more persons to permit a person or persons to
come to the place of assembly for the purpose of  cultivating,  process-
ing,  distributing,  or  retail distribution or sale of cannabis on said
premises. This includes, but is not limited, to, cannabis that is either
provided by the operator of the place of assembly, his agents,  servants
or  employees,  or  cannabis  that  is brought onto said premises by the
person or persons assembling at such place, unless an appropriate regis-
tration, license, or permit has first been obtained from the  office  of
cannabis management by the operator of said place of assembly.
  10.  As it is a privilege under the law to be registered, licensed, or
permitted to cultivate, process, distribute, traffic, or sell  cannabis,
the office may impose any such further restrictions upon any registrant,
licensee,  or permittee in particular instances as it deems necessary to
further state policy and best serve the public interest. A violation  or
failure  of any person registered, licensed, or permitted to comply with
any condition, stipulation, or agreement, upon which  any  registration,
license, or permit was issued or renewed by the office shall subject the
registrant,  licensee, or permittee to suspension, cancellation, revoca-
tion, and/or civil penalties as determined by the office.
  11. No adult-use cannabis or medical cannabis may be imported  to,  or
exported  out  of, New York state by a registered organization, licensee
or person holding a license and/or  permit  pursuant  to  this  chapter,
until  such  time  as  it  may  become legal to do so under federal law.
Should it become legal to do so under federal law, the office is granted
the power to promulgate such rules and regulations as it deems necessary
to protect the public and the policy of the state.
  12. No registered organization, licensee or any of its  agents,  serv-
ants or employees shall peddle any cannabis product, medical cannabis or
hemp  cannabis  from  house  to  house by means of a truck or otherwise,
where the sale is consummated and  delivery  made  concurrently  at  the
residence  or place of business of a cannabis consumer. This subdivision
shall not prohibit the delivery by a registered organization  to  certi-
fied  patients or their designated caregivers, pursuant to article three
of this chapter.
  13. No licensee shall  employ  any  canvasser  or  solicitor  for  the
purpose of receiving an order from a certified patient, designated care-
giver or cannabis consumer for any cannabis product, medical cannabis or
hemp  cannabis  at  the  residence or place of business of such patient,

A. 1617--A                         51

caregiver or consumer, nor shall any  licensee  receive  or  accept  any
order,  for  the  sale of any cannabis product, medical cannabis or hemp
cannabis which shall be solicited at the residence or place of  business
of a patient, caregiver or consumer. This subdivision shall not prohibit
the  solicitation  by a distributor of an order from any licensee at the
licensed premises of such licensee.
  § 126. License to be confined to premises licensed; premises for which
no license shall be granted; transporting cannabis.  1. A  registration,
license,  or  permit issued to any person, pursuant to this chapter, for
any registered, licensed, or permitted premises shall not be  transfera-
ble  to  any  other person, to any other location or premises, or to any
other building or part of the building containing the licensed  premises
except  in  the  discretion of the office. All privileges granted by any
registration, license, or permit shall be available only to  the  person
therein  specified,  and  only  for  the  premises licensed and no other
except if authorized  by  the  office.    Provided,  however,  that  the
provisions of this section shall not be deemed to prohibit the amendment
of  a  registration  or  license  as  provided  for  in  this chapter. A
violation of this section shall subject the  registration,  license,  or
permit to revocation for cause.
  2.  Where a registration or license for premises has been revoked, the
office in its discretion may refuse to issue a registration, license, or
permit under this chapter, for a period of up to five years  after  such
revocation, for such premises or for any part of the building containing
such premises and connected therewith.
  3.  In determining whether to issue such a proscription against grant-
ing any registration, license, or permit for such five-year  period,  in
addition  to any other factors deemed relevant to the office, the office
shall, in the case of a license revoked  due  to  the  illegal  sale  of
cannabis  to a minor, determine whether the proposed subsequent licensee
has obtained such premises through an arm's length transaction, and,  if
such  transaction  is  not  found to be an arm's length transaction, the
office shall deny the issuance of such license.
  4. For purposes of this section, "arm's length transaction" shall mean
a sale of a fee of all undivided  interests  in  real  property,  lease,
management  agreement,  or  other agreement giving the applicant control
over the cannabis at the premises, or any  part  thereof,  in  the  open
market,  between  an informed and willing buyer and seller where neither
is under any compulsion to participate in the transaction, unaffected by
any unusual conditions indicating a reasonable possibility that the sale
was made for the purpose of permitting the original  licensee  to  avoid
the  effect of the revocation. The following sales shall be presumed not
to  be  arm's  length  transactions  unless  adequate  documentation  is
provided  demonstrating  that  the sale, lease, management agreement, or
other agreement giving the applicant control over the  cannabis  at  the
premises,  was  not  conducted,  in whole or in part, for the purpose of
permitting the original licensee to avoid the effect of the revocation:
  (a) a sale between relatives;
  (b) a sale between related companies or partners in a business; or
  (c) a sale, lease, management agreement, or other agreement giving the
applicant control over the cannabis at the premises, affected  by  other
facts or circumstances that would indicate that the sale, lease, manage-
ment agreement, or other agreement giving the applicant control over the
cannabis  at  the  premises,  is entered into for the primary purpose of
permitting the original licensee to avoid the effect of the revocation.

A. 1617--A                         52

  5. No registered organization, licensee or permittee  shall  transport
cannabis products or medical cannabis except in vehicles owned and oper-
ated  by  such  registered organization, licensee or permittee, or hired
and operated by such registered organization, licensee or permittee from
a  trucking  or transportation company permitted and registered with the
office.
  6. No common carrier or person operating a transportation facility  in
this  state,  other than the United States government, shall receive for
transportation or delivery within the state  any  cannabis  products  or
medical cannabis unless the shipment is accompanied by copy of a bill of
lading,  or  other document, showing the name and address of the consig-
nor, the name and address of the consignee, the date  of  the  shipment,
and  the  quantity  and  kind  of  cannabis products or medical cannabis
contained therein.
  § 127. Protections for the use of cannabis;  unlawful  discriminations
prohibited.   1. No person, registered organization, licensee or permit-
tee, employees, or their agents shall be subject to arrest, prosecution,
or penalty in any manner, or denied any right  or  privilege,  including
but  not limited to civil liability or disciplinary action by a business
or occupational or professional licensing board or  office,  solely  for
conduct  permitted  under  this chapter. For the avoidance of doubt, the
appellate division of the supreme court of the state of  New  York,  and
any disciplinary or character and fitness committees established by them
are occupational and professional licensing boards within the meaning of
this  section. State or local law enforcement agencies shall not cooper-
ate with or provide assistance to the government of the United States or
any agency thereof in enforcing the federal  controlled  substances  act
solely for actions consistent with this chapter, except as pursuant to a
valid court order.
  2.  No school or landlord may refuse to enroll or lease to and may not
otherwise penalize a person solely for conduct allowed under this  chap-
ter, except as exempted:
  (a)  if  failing to do so would cause the school or landlord to lose a
monetary or licensing related benefit under federal law or regulations;
  (b) if the institution has  adopted  a  code  of  conduct  prohibiting
cannabis use on the basis of religious belief; or
  (c)  if  a property is registered with the New York smoke-free housing
registry, it is not required to permit the smoking of cannabis  products
on its premises.
  3.  For  the  purposes of medical care, including organ transplants, a
certified patient's authorized use of medical cannabis must  be  consid-
ered  the equivalent of the use of any other medication under the direc-
tion of a practitioner and does not constitute the  use  of  an  illicit
substance  or  otherwise disqualify a registered qualifying patient from
medical care.
  4. Unless an employer establishes that the lawful use of cannabis  has
impaired  the employee's ability to perform the employee's job responsi-
bilities, it shall be unlawful to take  any  adverse  employment  action
against an employee based on conduct allowed under this chapter.
  5.  For  the  purposes  of  this  section, an employer may consider an
employee's ability to perform the employee's job responsibilities to  be
impaired when the employee manifests specific articulable symptoms while
working that decrease or lessen the employee's performance of the duties
or tasks of the employee's job position.
  6.  Nothing  in  this  section shall restrict an employer's ability to
prohibit or take adverse employment action for the possession or use  of

A. 1617--A                         53

intoxicating  substances  during  work  hours, or require an employer to
commit any act that would cause the  employer  to  be  in  violation  of
federal  law,  or that would result in the loss of a federal contract or
federal funding.
  7. As used in this section, "adverse employment action" means refusing
to  hire  or employ, barring or discharging from employment, requiring a
person to retire from employment, or discriminating against  in  compen-
sation or in terms, conditions, or privileges of employment.
  8.  A  person  currently under parole, probation or other state super-
vision, or released on bail awaiting trial may not be punished or other-
wise penalized for conduct allowed under this chapter.
  9. No person may be denied custody of or visitation or parenting  time
with  a minor, and there is no presumption of neglect or child endanger-
ment for conduct allowed under section 222.05 of the penal  law,  unless
the  person's  behavior  creates an unreasonable danger to the safety of
the minor as established by  clear  and  convincing  evidence.  For  the
purposes  of this section, an "unreasonable danger" determination cannot
be based solely on whether, when, and how often a person  uses  cannabis
without separate evidence of harm.
  §  128.  Registrations  and  licenses.   1. No registration or license
shall be transferable or  assignable  except  that  notwithstanding  any
other provision of law, the registration or license of a sole proprietor
converting  to  corporate  form,  where such proprietor becomes the sole
stockholder and only officer and director of such new  corporation,  may
be  transferred  to  the subject corporation if all requirements of this
chapter remain the same with respect to such registration or license  as
transferred  and, further, the registered organization or licensee shall
transmit to the office, within ten  days  of  the  transfer  of  license
allowable  under  this  subdivision, on a form prescribed by the office,
notification of the transfer of such license.
  2. No registration or license shall be pledged or deposited as collat-
eral security for any loan or upon any other  condition;  and  any  such
pledge or deposit, and any contract providing therefor, shall be void.
  3.  Licenses  issued  under this chapter shall contain, in addition to
any further information or material to be prescribed by the rules of the
office, the following information:
  (a) name of the person to whom the license is issued;
  (b) kind of license and what kind of traffic in  cannabis  is  thereby
permitted;
  (c)  description by street and number, or otherwise, of licensed prem-
ises; and
  (d) a statement in substance that such license shall not be  deemed  a
property  or vested right, and that it may be revoked at any time pursu-
ant to law.
  § 129. Laboratory testing permit.   1. The  executive  director  shall
approve and permit one or more independent cannabis testing laboratories
to test medical cannabis, adult-use cannabis and/or hemp cannabis.
  2. To be permitted as an independent cannabis laboratory, a laboratory
must  apply  to  the office, on a form and in a manner prescribed by the
office, and must demonstrate the following to the  satisfaction  of  the
executive director:
  (a) the owners and directors of the laboratory are of good moral char-
acter;
  (b)  the laboratory and its staff has the skills, resources and exper-
tise needed to accurately and consistently perform all  of  the  testing
required for adult-use cannabis, medical cannabis and/or hemp cannabis;

A. 1617--A                         54

  (c)  the  laboratory has in place and will maintain adequate policies,
procedures, and facility security to ensure proper:  collection,  label-
ing, accessioning, preparation, analysis, result reporting, disposal and
storage of adult-use cannabis, medical cannabis and/or hemp cannabis;
  (d) the laboratory is physically located in New York state;
  (e)  the  laboratory  has  been  approved  by the department of health
pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
lations, pertaining to laboratories performing  environmental  analysis;
and
  (f)  the  laboratory meets any and all requirements prescribed by this
chapter and by the executive director in regulation.
  3. The owner of a laboratory testing permit under this  section  shall
not  hold  a registration or license in any category of this chapter and
shall not have any direct or indirect ownership interest in such  regis-
tered  organization  or  licensee.  No  board  member, officer, manager,
owner, partner, principal stakeholder or member of a  registered  organ-
ization or licensee under this chapter, or such person's immediate fami-
ly  member,  shall  have  an interest or voting rights in any laboratory
testing permittee.
  4. The executive director shall require that the permitted  laboratory
report  testing results to the office in a manner, form and timeframe as
determined by the executive director.
  5. The executive director is  authorized  to  promulgate  regulations,
requiring permitted laboratories to perform certain tests and services.
  §  130. Special use permits.  The office is hereby authorized to issue
the following kinds of permits for  carrying  on  activities  consistent
with  the  policy  and purpose of this chapter with respect to cannabis.
The executive director has the authority to set  fees  for  all  permits
issued  pursuant  to this section, to establish the periods during which
permits are authorized, and to make  rules  and  regulations,  including
emergency regulations, to implement this section.
  1.  Industrial  cannabis permit - to purchase cannabis from one of the
entities licensed by the office for use in the manufacture and  sale  of
any  of  the following, when such cannabis is not otherwise suitable for
consumption purposes, namely:  (a) apparel, energy,  paper,  and  tools;
(b) scientific, chemical, mechanical and industrial products; or (c) any
other  industrial  use  as determined by the executive director in regu-
lation.
  2. Trucking permit - to allow for the trucking  or  transportation  of
cannabis  products,  medical cannabis or hemp cannabis by a person other
than a registered organization or licensee under this chapter.
  3. Warehouse permit - to allow for the storage of  cannabis,  cannabis
products,  medical cannabis or hemp cannabis at a location not otherwise
registered or licensed by the office.
  4. Cannabinoid permit - to sell cannabinoid products derived from hemp
cannabis for off-premises consumption.
  5. Temporary retail cannabis permit - to authorize the retail sale  of
adult-use cannabis to cannabis consumers, for a limited purpose or dura-
tion.
  6. Caterer's permit - to authorize the service of cannabis products at
a  function, occasion or event in a hotel, restaurant, club, ballroom or
other premises, which shall authorize within  the  hours  fixed  by  the
office,  during  which  cannabis  may  lawfully be sold or served on the
premises in which such function, occasion or event is held.
  7. Packaging permit - to authorize a licensed cannabis distributor  to
sort,  package,  label  and  bundle  cannabis  products from one or more

A. 1617--A                         55

registered organizations or licensed processors, on the premises of  the
licensed  cannabis  distributor or at a warehouse for which a permit has
been issued under this section.
  8.  Miscellaneous  permits  -  to  purchase, receive or sell cannabis,
cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
contracts  or other documents pertaining to cannabis, cannabis products,
or medical cannabis, in cases not expressly provided for by  this  chap-
ter,  when  in  the  judgment  of the office it would be appropriate and
consistent with the policy and purpose of this chapter.
  § 131. Professional and medical  record  keeping.    Any  professional
providing services in connection with a licensed or potentially licensed
business under this chapter, or in connection with other conduct permit-
ted  under  this chapter, and any medical professional providing medical
care to a patient, other than a certified patient, may agree with  their
client  or patient to maintain no record, or any reduced level of record
keeping that professional and client or patient may agree.  In  case  of
such agreement, the professional's only obligation shall be to keep such
records  as  agreed, and to keep a record of the agreement. Such reduced
record keeping is conduct permitted under this chapter.
  § 132. Local opt-out;  municipal  control  and  preemption.    1.  The
provisions of article four of this chapter, authorizing the cultivation,
processing,  distribution  and  sale  of  adult-use cannabis to cannabis
consumers, shall not be applicable to a town,  city  or  village  which,
after  a  mandatory  referendum held pursuant to section twenty-three of
the municipal home rule law, adopts a local law to prohibit  the  estab-
lishment  or  operation  of  one  or more types of licenses contained in
article four of this chapter, within the jurisdiction of the town,  city
or village. Provided, however, that any town law shall apply to the area
of the town outside of any village within such town.
  2.  Except  as  provided  for  in subdivision one of this section, all
county, town, city and village governing  bodies  are  hereby  preempted
from  adopting any rule, ordinance, regulation or prohibition pertaining
to the operation or licensure  of  registered  organizations,  adult-use
cannabis  licenses  or  hemp  licenses. However, municipalities may pass
local laws and ordinances  governing  the  time,  place  and  manner  of
licensed adult-use cannabis retail dispensaries, provided such ordinance
or  regulation  does  not  make  the  operation  of such licensed retail
dispensaries unreasonably impracticable as determined by  the  executive
director in his or her sole discretion.
  §  133.  Personal cultivation. 1. Notwithstanding any provision of law
to the contrary, a person over the age of twenty-one shall  be  able  to
plant,  cultivate,  harvest,  dry  or  process cannabis for personal use
subject to the following restrictions:
  (a) all cultivation shall be done in accordance with local ordinances;
and
  (b) the living plants and any  cannabis  produced  by  the  plants  in
excess  of  three  ounces must be kept within the person's private resi-
dence, or upon the grounds  of  that  private  residence  (e.g.,  in  an
outdoor  garden  area),  in  a  locked  space, and 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  town,  city  or  village  may  enact and enforce regulations to
reasonably regulate the actions and conduct under this section.    Regu-

A. 1617--A                         56

lations  may  not  completely  prohibit persons engaging in conduct made
lawful under subdivision one of this section.
  3.  A  violation  of subdivision one of this section is a misdemeanor,
punishable under section 222.10 of the penal law and subject to a  local
fine of not more than one hundred dollars.
  §   134.   Executive   director  to  be  necessary  party  to  certain
proceedings.   The executive director shall  be  made  a  party  to  all
actions  and proceedings affecting in any manner the ability of a regis-
tered organization or licensee to operate within a municipality, or  the
result of any vote thereupon; to all actions and proceedings relative to
issuance  or  revocation  of  registrations, licenses or permits; to all
injunction proceedings, and to all other civil  actions  or  proceedings
which in any manner affect the enjoyment of the privileges or the opera-
tion of the restrictions provided for in this chapter.
  §  135.  Penalties  for  violation of this chapter.  1. Any person who
cultivates for sale or sells cannabis, cannabis products, medical canna-
bis or hemp cannabis without having an appropriate registration, license
or permit therefor, or whose registration, license, or permit  has  been
revoked,  surrendered  or  cancelled,  shall be subject to conviction as
provided by article two hundred twenty-two of the penal law.
  2. Any registered organization  or  licensee,  whose  registration  or
license  has  been suspended pursuant to the provisions of this chapter,
who sells cannabis, cannabis products, medical cannabis or hemp cannabis
during the suspension period, shall be subject to conviction as provided
by article two hundred twenty-two of the penal law, and upon  conviction
thereof  shall  be  punished  by  a  fine of not more than five thousand
dollars per instance.
  3. Any person who shall make any false statement  in  the  application
for  a  registration,  license  or  a permit under this chapter shall be
guilty of a misdemeanor, and upon conviction thereof shall be punishable
by a fine of not more than five thousand dollars, or by imprisonment  in
a  county jail or penitentiary for a term of not more than six months or
both.
  4. Any violation by any person of any provision of  this  chapter  for
which  no  punishment or penalty is otherwise provided shall be a misde-
meanor.
  § 136. Revocation of registrations, licenses and  permits  for  cause;
procedure  for revocation or cancellation.  1. Any registration, license
or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
suspended  and/or  subjected  to  the  imposition of a civil penalty for
cause, and must be revoked for the following causes:
  (a) conviction of the registered organization, licensee, permittee  or
his  or  her  agent  or employee for selling any illegal cannabis on the
premises registered, licensed or permitted; or
  (b) for  transferring,  assigning  or  hypothecating  a  registration,
license or permit without prior written approval of the office.
  2.  Notwithstanding  the issuance of a registration, license or permit
by way of renewal, the office may revoke, cancel or suspend such  regis-
tration, license or permit and/or may impose a civil penalty against any
holder  of  such  registration, license or permit, as prescribed by this
section, for causes or violations occurring during  the  license  period
immediately  preceding  the  issuance  of  such registration, license or
permit.
  3. (a) As used in this  section,  the  term  "for  cause"  shall  also
include  the  existence of a sustained and continuing pattern of miscon-
duct, failure to adequately prevent diversion or disorder  on  or  about

A. 1617--A                         57

the  registered, licensed or permitted premises, or in the area in front
of or adjacent to the registered or licensed premises, or in any parking
lot provided by the registered  organization  or  licensee  for  use  by
registered organization or licensee's patrons, which, in the judgment of
the office, adversely affects or tends to affect the protection, health,
welfare,  safety,  or repose of the inhabitants of the area in which the
registered or licensed premises is located, or results in  the  licensed
premises becoming a focal point for police attention, or is offensive to
public decency.
  (b)  (i)  As  used  in  this  section, the term "for cause" shall also
include deliberately misleading the authority:
  (A) as to the nature and character of the business to be  operated  by
the registered organization, licensee or permittee; or
  (B) by substantially altering the nature or character of such business
during  the registration or licensing period without seeking appropriate
approvals from the office.
  (ii) As used in this subdivision, the term "substantially altering the
nature or character" of such business shall mean any significant  alter-
ation  in  the  scope  of  business activities conducted by a registered
organization, licensee or permittee  that  would  require  obtaining  an
alternate form of registration, license or permit.
  4.  As used in this chapter, the existence of a sustained and continu-
ing pattern of misconduct, failure to adequately  prevent  diversion  or
disorder  on  or about the premises may be presumed upon the sixth inci-
dent reported to the office by a law enforcement agency,  or  discovered
by  the  office  during  the course of any investigation, of misconduct,
diversion or disorder on or about the premises or related to the  opera-
tion  of  the  premises,  absent clear and convincing evidence of either
fraudulent intent on the part of any complainant or a factual error with
respect to the content of any report concerning  such  complaint  relied
upon by the office.
  5.  Notwithstanding any other provision of this chapter to the contra-
ry, a suspension imposed under this section  against  the  holder  of  a
registration  issued  pursuant  to  article three of this chapter, shall
only suspend the licensed activities related to the  type  of  cannabis,
medical cannabis or adult-use cannabis involved in the violation result-
ing in the suspension.
  6.  Any  registration, license or permit issued by the office pursuant
to this chapter  may  be  revoked,  cancelled  or  suspended  and/or  be
subjected  to  the  imposition  of  a  monetary  penalty  in  the manner
prescribed by this section and by the executive director in regulation.
  7. The office may on its  own  initiative,  or  on  complaint  of  any
person, institute proceedings to revoke, cancel or suspend any adult-use
cannabis   retail  dispensary  license  or  adult-use  cannabis  on-site
consumption license and may impose a civil penalty against the  licensee
after  a  hearing at which the licensee shall be given an opportunity to
be heard. Such hearing shall be held in such manner and upon such notice
as may be prescribed in regulation by the executive director.
  8. All other registrations, licenses  or  permits  issued  under  this
chapter  may be revoked, cancelled, suspended and/or made subject to the
imposition of a civil penalty by the office after a hearing to  be  held
in  such  manner and upon such notice as may be prescribed in regulation
by the executive director.
  9. Where a licensee or permittee is convicted of two or more  qualify-
ing  offenses  within  a  five-year  period, the office, upon receipt of
notification of such second or subsequent conviction, shall, in addition

A. 1617--A                         58

to any other sanction or civil or criminal penalty imposed  pursuant  to
this  chapter, impose on such licensee a civil penalty not to exceed ten
thousand dollars.   For  purposes  of  this  subdivision,  a  qualifying
offense  shall  mean the unlawful sale of cannabis to a person under the
age of twenty-one. For purposes of this subdivision, a conviction  of  a
licensee  or  an  employee  or agent of such licensee shall constitute a
conviction of such licensee.
  § 137. Lawful actions pursuant to this chapter.  1. Contracts  related
to the operation of registered organizations, licenses and permits under
this  chapter  shall  be lawful and shall not be deemed unenforceable on
the basis that the  actions  permitted  pursuant  to  the  registration,
license or permit are prohibited by federal law.
  2. The following actions are not unlawful as provided under this chap-
ter, shall not be an offense under any state or local law, and shall not
result  in  any  civil fine, seizure, or forfeiture of assets, or be the
basis for detention or search against any person  acting  in  accordance
with this chapter:
  (a)  Actions  of a registered organization, licensee, or permittee, or
the employees or agents of such  registered  organization,  licensee  or
permittee,  as  permitted  by this chapter and consistent with rules and
regulations of the office, pursuant to a valid registration, license  or
permit issued by the office.
  (b)  Actions  of  those  who allow property to be used by a registered
organization, licensee, or permittee, or the employees or agents of such
registered organization, licensee or permittee,  as  permitted  by  this
chapter  and consistent with rules and regulations of the office, pursu-
ant to a valid registration, license or permit issued by the office.
  (c) Actions of any person or entity, their employees, or their  agents
providing a service to a registered organization, licensee, permittee or
a  potential registered organization, licensee, or permittee, as permit-
ted by this chapter and consistent with rules  and  regulations  of  the
office, relating to the formation of a business.
  (d)  The  purchase,  possession,  or  consumption of cannabis, medical
cannabis and hemp cannabis, as permitted by this chapter and  consistent
with rules and regulations of the office, obtained from a validly regis-
tered, licensed or permitted retailer.
  §  138. Review by courts.  1. The following actions by the office, and
only the following actions by the office, shall be subject to review  by
the supreme court in the manner provided in article seventy-eight of the
civil practice law and rules:
  (a)  Refusal  by  the  office  to  issue a registration, license, or a
permit.
  (b) The revocation, cancellation  or  suspension  of  a  registration,
license, or permit by the office.
  (c) The failure or refusal by the office to render a decision upon any
application  or  hearing submitted to or held by the office within sixty
days after such submission or hearing.
  (d) The transfer by the office of a registration, license,  or  permit
to any other entity or premises, or the failure or refusal by the office
to approve such a transfer.
  (e) Refusal to approve alteration of premises.
  (f)  Refusal to approve a corporate change in stockholders, stockhold-
ings, officers or directors.
  2. No stay shall be granted pending the determination of  such  matter
except on notice to the office and only for a period of less than thirty
days. In no instance shall a stay be granted where the office has issued

A. 1617--A                         59

a  summary  suspension  of  a  registration,  license, or permit for the
protection of the public health, safety, and welfare.
  § 139. Illicit cannabis.  1. "Illicit cannabis" means and includes any
cannabis  product,  medical cannabis or hemp cannabis owned, cultivated,
distributed, bought, sold, packaged, rectified, blended, treated, forti-
fied, mixed, processed, warehoused,  possessed  or  transported,  or  on
which  any tax required to have been paid under any applicable state law
has not been paid.
  2. Any person who shall knowingly possess or have  under  his  or  her
control any cannabis known by the person to be illicit cannabis is guil-
ty of a misdemeanor.
  3.  Any  person  who shall knowingly barter or exchange with, or sell,
give or offer to sell or to give  another  any  cannabis  known  by  the
person to be illicit cannabis is guilty of a misdemeanor.
  4.  Any  person  who shall possess or have under his or her control or
transport any cannabis known by the person to be illicit  cannabis  with
intent  to  barter  or  exchange with, or to sell or give to another the
same or any part thereof is guilty of  a  misdemeanor.  Such  intent  is
presumptively  established  by proof that the person knowingly possessed
or had under his or her control one or more ounces of illicit  cannabis.
This presumption may be rebutted.
  5.  Any  person who, being the owner, lessee, or occupant of any room,
shed, tenement, booth or building, float or  vessel,  or  part  thereof,
knowingly  permits  the same to be used for the cultivation, processing,
distribution, purchase, sale, warehousing, transportation, or storage of
any illicit cannabis, is guilty of a misdemeanor.
  § 140. Injunction for unlawful manufacture,  sale  or  consumption  of
cannabis.    1. If any person shall engage or participate or be about to
engage or participate  in  the  cultivation,  production,  distribution,
traffic, or sale of cannabis products, medical cannabis or hemp cannabis
in  this  state without obtaining the appropriate registration, license,
or permit therefor, or  shall  traffic  in  cannabis  products,  medical
cannabis  or hemp cannabis contrary to any provision of this chapter, or
otherwise unlawfully, or shall traffic  in  illicit  cannabis  products,
medical  cannabis  or hemp cannabis, or, operating a place for profit or
pecuniary gain, with a capacity for the assemblage  of  twenty  or  more
persons,  shall  permit  a  person  or  persons to come to such place of
assembly for the purpose of consuming cannabis products  without  having
the  appropriate  license  or  permit therefor, the office may present a
verified petition or complaint to a justice of the supreme  court  at  a
special term of the supreme court of the judicial district in which such
city,  village  or  town is situated, for an order enjoining such person
engaging or participating in such activity  or  from  carrying  on  such
business.  Such  petition  or complaint shall state the facts upon which
such application is based. Upon the  presentation  of  the  petition  or
complaint, the justice or court may grant an order temporarily restrain-
ing  any person from continuing to engage in conduct as specified in the
petition or complaint, and shall grant an order requiring such person to
appear before such justice or court at or before a special term  of  the
supreme  court  in  such judicial district on the day specified therein,
not more than ten days after the granting thereof,  to  show  cause  why
such  person should not be permanently enjoined from engaging or partic-
ipating in such activity or from carrying on such business, or why  such
person should not be enjoined from carrying on such business contrary to
the provisions of this chapter. A copy of such petition or complaint and
order  shall  be  served upon the person, in the manner directed by such

A. 1617--A                         60

order, not less than three days before the return day  thereof.  On  the
day  specified  in such order, the justice or court before whom the same
is returnable shall hear the proofs of the parties and  may,  if  deemed
necessary  or  proper,  take testimony in relation to the allegations of
the petition or complaint. If the justice or  court  is  satisfied  that
such person is about to engage or participate in the unlawful traffic in
cannabis,  medical  cannabis  or  hemp cannabis or has unlawfully culti-
vated, processed, or sold cannabis products, medical  cannabis  or  hemp
cannabis  without  having obtained a registration or license or contrary
to the provisions of this chapter, or has trafficked in  illicit  canna-
bis,  or,  is  operating or is about to operate such place for profit or
pecuniary gain, with such capacity, and has permitted  or  is  about  to
permit  a  person  or  persons to come to such place of assembly for the
purpose of consuming cannabis products without having  such  appropriate
license, an order shall be granted enjoining such person from thereafter
engaging  or  participating in or carrying on such activity or business.
If, after the entry of such an order in the county clerk's office of the
county in which the principal place of business of  the  corporation  or
partnership  is  located, or in which the individual so enjoined resides
or conducts such business, and the service of a copy thereof  upon  such
person,  or  such  substituted  service  as  the  court may direct, such
person, partnership or corporation shall, in violation  of  such  order,
cultivate, process, distribute or sell cannabis products, medical canna-
bis  or hemp cannabis, or illicit cannabis products, medical cannabis or
hemp cannabis, or permit a person or persons to come to  such  place  of
assembly  for  the purpose of consuming cannabis products, such activity
shall be deemed a contempt of court and  be  punishable  in  the  manner
provided  by the judiciary law, and, in addition to any such punishment,
the justice or court before whom or which the petition or  complaint  is
heard,  may,  in his or its discretion, order the seizure and forfeiture
of any cannabis products and any fixtures, equipment and  supplies  used
in the operation or promotion of such illegal activity and such property
shall  be subject to forfeiture pursuant to law. Costs upon the applica-
tion for such injunction may be awarded in  favor  of  and  against  the
parties  thereto  in  such  sums  as in the discretion of the justice or
court before whom or which the petition or complaint is heard  may  seem
proper.
  2. The owner, lessor and lessee of a building, erection or place where
cannabis  products,  medical  cannabis  or  hemp  cannabis is unlawfully
cultivated, processed, distributed, sold, consumed or  permitted  to  be
unlawfully  cultivated,  processed, distributed, sold or consumed may be
made a respondent or defendant in the proceeding or action.
  § 141. Persons forbidden to traffic cannabis; certain officials not to
be interested in manufacture  or  sale  of  cannabis  products.  1.  The
following are forbidden to traffic in cannabis:
  (a)  An individual who has 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 office determines that
the  owner or licensee is otherwise suitable to be issued a license, and
granting the license would not  compromise  public  safety,  the  office
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

A. 1617--A                         61

and  operating  a business, the office shall include, but not be limited
to, the following:
  (i) a felony conviction involving fraud, money laundering, forgery and
other unlawful conduct related to owning and operating a business; and
  (ii)  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.
  (b) A person under the age of twenty-one years;
  (c)  A  person  who  is not a citizen of the United States or an alien
lawfully admitted for permanent residence in the United States;
  (d) A partnership or a corporation, unless each member of the partner-
ship, or each of the principal officers  and  directors  of  the  corpo-
ration,  is a citizen of the United States or an alien lawfully admitted
for permanent residence in the United States, not less  than  twenty-one
years  of  age;  provided  however  that  a  corporation which otherwise
conforms to the requirements of this section and chapter may be licensed
if each of its principal officers and more than one-half of  its  direc-
tors  are  citizens of the United States or aliens lawfully admitted for
permanent residence in the United States; and provided  further  that  a
corporation  organized  under  the not-for-profit corporation law or the
education law which otherwise  conforms  to  the  requirements  of  this
section  and  chapter  may be licensed if each of its principal officers
and directors are not less than twenty-one years of age;  and  provided,
further,  that  a  corporation organized under the not-for-profit corpo-
ration law or the education law and located on the premises of a college
as defined by section two of the education law which otherwise  conforms
to  the requirements of this section and chapter may be licensed if each
of its principal officers and each of its directors are  not  less  than
twenty-one years of age;
  (e)  A  person  who  shall have had any registration or license issued
under this chapter revoked for cause, until the expiration of two  years
from the date of such revocation;
  (f)  A  person not registered or licensed under the provisions of this
chapter, who has been convicted of a violation of  this  chapter,  until
the expiration of two years from the date of such conviction; or
  (g)  A  corporation or partnership, if any officer and director or any
partner, while not licensed under the provisions of  this  chapter,  has
been convicted of a violation of this chapter, or has had a registration
or  license issued under this chapter revoked for cause, until the expi-
ration of two years from the date of such conviction or revocation.
  2. Except as may otherwise be provided for in regulation, it shall  be
unlawful   for  any  police  commissioner,  police  inspector,  captain,
sergeant, roundsman, patrolman or other police official  or  subordinate
of  any  police  department in the state, to be either directly or indi-
rectly interested in the cultivation, processing, distribution, or  sale
of  cannabis  products  or to offer for sale, or recommend to any regis-
tered organization or licensee any cannabis products. A person  may  not
be  denied  any  registration or license granted under the provisions of
this chapter solely on the grounds of being the spouse of a public serv-
ant described in this section. The solicitation or  recommendation  made
to  any  registered  organization  or licensee, to purchase any cannabis
products by any police official or subordinate as hereinabove described,
shall be presumptive evidence of the interest of such official or subor-

A. 1617--A                         62

dinate in the cultivation, processing, distribution, or sale of cannabis
products.
  3. No elective village officer shall be subject to the limitations set
forth  in  subdivision  two of this section unless such elective village
officer shall be assigned duties directly relating to the  operation  or
management of the police department.
  §  142. Access to criminal history information through the division of
criminal justice services.   In connection with  the  administration  of
this  chapter,  the executive director is authorized to request, receive
and review criminal history information through the division of criminal
justice services with respect to  any  person  seeking  a  registration,
license,  permit  or  authorization to cultivate, process, distribute or
sell medical cannabis, adult use cannabis or hemp cannabis. At the exec-
utive director's request, each person, member, principal and/or  officer
of  the  applicant shall submit to the office his or her fingerprints in
such form and in such manner as  specified  by  the  division,  for  the
purpose  of  conducting a criminal history search and returning a report
thereon in accordance with the procedures and  requirements  established
by the division pursuant to the provisions of article thirty-five of the
executive  law,  which shall include the payment of the prescribed proc-
essing fees for the cost of the division's full search and retain proce-
dures and a national criminal history record check. The executive direc-
tor, or his or her designee, shall  submit  such  fingerprints  and  the
processing fee to the division. The division shall forward to the execu-
tive director a report with respect to the applicant's previous criminal
history, if any, or a statement that the applicant has no previous crim-
inal history according to its files. Fingerprints submitted to the divi-
sion  pursuant  to this subdivision may also be submitted to the federal
bureau of investigation for a national criminal history record check. If
additional copies of fingerprints  are  required,  the  applicant  shall
furnish them upon request.
  § 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

A. 1617--A                         63

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.
  [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

A. 1617--A                         64

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,
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.

A. 1617--A                         65

  [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
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.

A. 1617--A                         66

  [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
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

A. 1617--A                         67

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.
  [(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 is REPEALED.
  § 6. Title 5-A of article 33 of the public health law is REPEALED.
  §  7.  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 3 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 A1 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
currency  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
defendant  in  a  room,  other  than a public place, under circumstances

A. 1617--A                         68

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
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].
  §  8.  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"] "CANNABIS" means [marijuana] CANNABIS 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.
  § 9. 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 CANNABIS AND CONCENTRATED CANNABIS AS  DEFINED  IN
SECTION 220.00 OF THE PENAL LAW.
  §  10.  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

A. 1617--A                         69

health law other than [marihuana] CANNABIS, 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"] "CANNABIS" means ["marihuana" or "concentrated canna-
bis"  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  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).
  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-
CANNABINOL, OR ITS ISOMER, DELTA-8  DIBENZOPYRAN  NUMBERING  SYSTEM,  OR
DELTA-1  TETRAHYDROCANNABINOL  OR  ITS  ISOMER,  DELTA 1 (6) MONOTERPENE
NUMBERING SYSTEM.
  22. "CANNABIS PRODUCTS" MEANS  CANNABIS,  CONCENTRATED  CANNABIS,  AND
CANNABIS-INFUSED  PRODUCTS  CONTAINING  CONCENTRATED  CANNABIS AND OTHER
INGREDIENTS.
  § 11.  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
  § 12. 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
  § 13. 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
  §  14.  Section  220.50 of the penal law, as amended by chapter 627 of
the laws of 1990, is amended to read as follows:

A. 1617--A                         70

§ 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  CANNABIS  OR   CONCENTRATED
CANNABIS; 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  CANNABIS  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 CANNA-
BIS OR CONCENTRATED CANNABIS.
  Criminally using drug paraphernalia in the second degree is a class  A
misdemeanor.
  § 15. Article 221 of the penal law is REPEALED.
  §  16. The penal law is amended by adding a new article 222 to read as
follows:
                               ARTICLE 222
                                CANNABIS
SECTION 222.00 CANNABIS; DEFINITIONS.
        222.05 PERSONAL USE OF CANNABIS.
        222.10 UNLAWFUL CULTIVATION OF CANNABIS.
        222.15 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
        222.20 UNLAWFUL POSSESSION OF CANNABIS.
        222.25 UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE.
        222.30 UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE.
        222.35 SALE OF CANNABIS TO A PERSON LESS THAN  TWENTY-ONE  YEARS
                 OF AGE IN THE SECOND DEGREE.
        222.40 SALE  OF  CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS
                 OF AGE IN THE FIRST DEGREE.
§ 222.00 CANNABIS; DEFINITIONS.
  1. "CANNABIS" MEANS ALL PARTS OF THE  PLANT  OF  THE  GENUS  CANNABIS,
WHETHER  GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM ANY
PART OF THE PLANT; AND EVERY COMPOUND,  MANUFACTURE,  SALT,  DERIVATIVE,
MIXTURE,  OR  PREPARATION  OF THE PLANT, ITS SEEDS OR RESIN. IT DOES NOT
INCLUDE THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE  STALKS,
OIL  OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND, MANU-
FACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE  STALKS
(EXCEPT  THE  RESIN  EXTRACTED  THEREFROM),  FIBER, OIL, OR CAKE, OR THE
STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION.  IT DOES
NOT INCLUDE ALL PARTS OF THE PLANT CANNABIS SATIVA L.,  WHETHER  GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  2. "CONCENTRATED CANNABIS" MEANS:

A. 1617--A                         71

  (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.
  3.  "CANNABIS-INFUSED PRODUCTS" MEANS PRODUCTS THAT HAVE BEEN MANUFAC-
TURED AND CONTAIN EITHER CANNABIS OR  CONCENTRATED  CANNABIS  AND  OTHER
INGREDIENTS THAT ARE INTENDED FOR USE OR CONSUMPTION.
  4.  "MATURE  CANNABIS  PLANT"  MEANS  A CANNABIS PLANT WITH OBSERVABLE
FLOWERS OR BUDS.
  5. FOR THE PURPOSES OF  THIS  ARTICLE,  "SALE"  SHALL  MEAN  TO  SELL,
EXCHANGE  OR  DISPOSE  OF FOR COMPENSATION. "SALE" SHALL NOT INCLUDE THE
TRANSFER OF CANNABIS, CONCENTRATED CANNABIS OR CANNABIS-INFUSED  PRODUCT
BETWEEN PERSONS TWENTY-ONE YEARS OF AGE OR OLDER WITHOUT COMPENSATION IN
THE QUANTITIES AUTHORIZED IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
222.05 OF THIS ARTICLE.
§ 222.05 PERSONAL USE OF CANNABIS.
  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY:
  1.  THE  FOLLOWING ACTS ARE LAWFUL FOR PERSONS TWENTY-ONE YEARS OF AGE
OR OLDER:  (A) POSSESSING, DISPLAYING, PURCHASING, OBTAINING, OR  TRANS-
PORTING  UP  TO  THREE OUNCES OF CANNABIS AND UP TO TWENTY-FOUR GRAMS OF
CONCENTRATED  CANNABIS,  OR  EQUIVALENT   AMOUNT   OF   CANNABIS-INFUSED
PRODUCTS;
  (B)  TRANSFERRING,  WITHOUT COMPENSATION, TO A PERSON TWENTY-ONE YEARS
OF AGE OR OLDER, UP TO THREE OUNCES OF CANNABIS AND  UP  TO  TWENTY-FOUR
GRAMS OF CONCENTRATED CANNABIS, OR EQUIVALENT AMOUNT OF CANNABIS-INFUSED
PRODUCTS;
  (C)  USING,  SMOKING,  INGESTING,  OR CONSUMING CANNABIS, CONCENTRATED
CANNABIS OR CANNABIS-INFUSED PRODUCTS  UNLESS  OTHERWISE  PROHIBITED  BY
STATE LAW OR REGULATION;
  (D)  POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING, MANUFACTUR-
ING, TRANSPORTING OR GIVING TO ANY PERSON TWENTY-ONE  YEARS  OF  AGE  OR
OLDER CANNABIS PARAPHERNALIA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND
  (E)  ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE OR OLDER,
OR ALLOWING PROPERTY TO BE USED, IN ANY OF THE ACTS DESCRIBED  IN  PARA-
GRAPHS (A) THROUGH (D) OF THIS SUBDIVISION.
  2.  CANNABIS, CONCENTRATED CANNABIS, CANNABIS-INFUSED PRODUCTS, CANNA-
BIS PARAPHERNALIA OR CONCENTRATED CANNABIS PARAPHERNALIA 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 OR DETENTION.
  3. EXCEPT AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, NONE OF THE
FOLLOWING SHALL, INDIVIDUALLY OR IN COMBINATION WITH EACH OTHER, CONSTI-
TUTE  REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE OF PROBABLE
CAUSE IN ANY CRIMINAL PROCEEDING AGAINST A DEFENDANT TWENTY-ONE YEARS OF
AGE OR OLDER:
  (A) THE ODOR OF CANNABIS OR OF BURNT CANNABIS;
  (B) THE POSSESSION OF OR THE  SUSPICION  OF  POSSESSION  OF  CANNABIS,
CONCENTRATED  CANNABIS  OR  CANNABIS-INFUSED  PRODUCTS  IN  THE  AMOUNTS
AUTHORIZED IN THIS SECTION;

A. 1617--A                         72

  (C) THE POSSESSION OF MULTIPLE CONTAINERS OF CANNABIS WITHOUT EVIDENCE
OF POSSESSION OF MORE THAN THREE OUNCES OF CANNABIS,  TWENTY-FOUR  GRAMS
OF  CONCENTRATED  CANNABIS  OR THE EQUIVALENT AMOUNT OF CANNABIS-INFUSED
PRODUCTS; OR
  (D) THE PRESENCE OF CASH OR CURRENCY IN PROXIMITY TO CANNABIS, CONCEN-
TRATED CANNABIS OR CANNABIS-INFUSED PRODUCTS.
  4.  SUBDIVISION  THREE  OF  THIS  SECTION  SHALL  NOT APPLY WHEN A LAW
ENFORCEMENT OFFICER IS INVESTIGATING: (A) AN ALLEGED OFFENSE PURSUANT TO
SECTION 222.20, 222.25, 222.30, 222.35 OR 222.40 OF THIS ARTICLE; OR (B)
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 THEREOF  IN  VIOLATION  OF  ARTICLE
THIRTY-ONE OF THE VEHICLE AND TRAFFIC LAW.
  5. (A) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PERMIT ANY PERSON
TO:
  (I) SMOKE CANNABIS IN PUBLIC;
  (II)  SMOKE  CANNABIS  PRODUCTS IN A LOCATION WHERE SMOKING TOBACCO IS
PROHIBITED PURSUANT TO SECTION THIRTEEN  HUNDRED  NINETY-NINE-O  OF  THE
PUBLIC HEALTH LAW;
  (III)  POSSESS,  SMOKE  OR  INGEST  CANNABIS  PRODUCTS  IN OR UPON THE
GROUNDS OF ANY SCHOOL PROPERTY USED FOR SCHOOL PURPOSES WHICH  IS  OWNED
BY OR LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE
CHILDREN ARE PRESENT; OR
  (IV)  SMOKE  OR  INGEST  CANNABIS  PRODUCTS WHILE DRIVING, OPERATING A
MOTOR VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR  TRANS-
PORTATION.
  (B) FOR PURPOSES OF THIS SECTION:
  (I)  "SMOKE"  MEANS  TO  INHALE, EXHALE, BURN, OR CARRY ANY LIGHTED OR
HEATED DEVICE OR PIPE, OR  ANY  OTHER  LIGHTED  OR  HEATED  CANNABIS  OR
CONCENTRATED  CANNABIS  PRODUCT INTENDED FOR INHALATION, WHETHER NATURAL
OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.
  (II) "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.
  (C) VIOLATIONS OF THE RESTRICTIONS UNDER THIS SUBDIVISION ARE  SUBJECT
TO  A FINE NOT EXCEEDING TWENTY-FIVE DOLLARS OR AN APPROPRIATE AMOUNT OF
COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
§ 222.10 UNLAWFUL CULTIVATION OF CANNABIS.
  A PERSON IS GUILTY OF UNLAWFUL CULTIVATION OF CANNABIS WHEN HE OR  SHE
KNOWINGLY  AND  UNLAWFULLY PLANTS, CULTIVATES, HARVESTS, DRIES, OR PROC-
ESSES CANNABIS ON PUBLIC LANDS OR OTHERWISE IN VIOLATION OF ARTICLE  SIX
OF THE CANNABIS LAW.
  UNLAWFUL CULTIVATION OF CANNABIS IS A CLASS B MISDEMEANOR.
§ 222.15 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
  THE  CRIMINAL PENALTIES PURSUANT TO THE PROVISIONS OF THIS ARTICLE FOR
POSSESSING, MANUFACTURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANS-
FERRING CANNABIS, CONCENTRATED  CANNABIS  OR  CANNABIS-INFUSED  PRODUCTS
SHALL  NOT  APPLY  TO  ANY PERSON ENGAGED IN SUCH ACTIVITY IN COMPLIANCE
WITH THE CANNABIS LAW.
§ 222.20 UNLAWFUL POSSESSION OF CANNABIS.
  A PERSON IS GUILTY OF UNLAWFUL POSSESSION OF CANNABIS WHEN HE  OR  SHE
KNOWINGLY AND UNLAWFULLY POSSESSES:
  1. CANNABIS AND SUCH CANNABIS WEIGHS MORE THAN THREE OUNCES; OR
  2.  CONCENTRATED  CANNABIS  AND SUCH CONCENTRATED CANNABIS WEIGHS MORE
THAN TWENTY-FOUR GRAMS; OR
  3. EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.

A. 1617--A                         73

  UNLAWFUL POSSESSION OF CANNABIS IS A VIOLATION PUNISHABLE BY A FINE OF
NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS.
§ 222.25 UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE.
  1.  A  PERSON  IS  GUILTY OF UNLICENSED SALE OF CANNABIS IN THE SECOND
DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY SELLS  CANNABIS,  CONCEN-
TRATED CANNABIS OR EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.
  2.  A VIOLATION OF THIS SECTION IS SUBJECT TO THE FOLLOWING PENALTIES,
AS APPLICABLE:
  (A) VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED  TWEN-
TY-FIVE DOLLARS;
  (B) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
THE  CRIME  OF  UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE, SALE OF
CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
IN THE FIRST DEGREE OR THIS SECTION, THEN A VIOLATION  PUNISHABLE  BY  A
FINE  OF  NOT  MORE  THAN  TWO  HUNDRED  FIFTY DOLLARS FOR A SECOND SUCH
OFFENSE; OR
  (C) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
THE CRIME OF UNLICENSED SALE OF CANNABIS IN THE FIRST  DEGREE,  SALE  OF
CANNABIS  TO  A  PERSON  LESS THAN TWENTY-ONE YEARS OF AGE IN THE SECOND
DEGREE, SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS  OF  AGE
IN THE FIRST DEGREE OR THIS SECTION, THEN A CLASS B MISDEMEANOR FOR SUCH
THIRD OR SUBSEQUENT OFFENSE.
§ 222.30 UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE.
  1.  A  PERSON  IS  GUILTY  OF UNLICENSED SALE OF CANNABIS IN THE FIRST
DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY SELLS MORE THAN TWO OUNC-
ES OF CANNABIS, MORE THAN SIXTEEN GRAMS OF CONCENTRATED CANNABIS OR  THE
EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.
  2.  A VIOLATION OF THIS SECTION IS SUBJECT TO THE FOLLOWING PENALTIES,
AS APPLICABLE:
  (A) A VIOLATION PUNISHABLE BY A FINE OF  NOT  MORE  THAN  TWO  HUNDRED
FIFTY DOLLARS;
  (B) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
THE  CRIME  OF UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE, SALE OF
CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
IN THE FIRST DEGREE OR THIS SECTION, THEN A VIOLATION  PUNISHABLE  BY  A
FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR SUCH SECOND OFFENSE; OR
  (C) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
THE  CRIME  OF UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE, SALE OF
CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
IN THE FIRST DEGREE OR THIS SECTION, THEN A CLASS A MISDEMEANOR FOR SUCH
THIRD OR SUBSEQUENT OFFENSE.
§ 222.35 SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE
           IN THE SECOND DEGREE.
  A  PERSON  TWENTY-ONE  YEARS  OF AGE OR OLDER IS GUILTY OF THE SALE OF
CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
DEGREE WHEN, BEING TWENTY-ONE YEARS OF AGE OR OLDER, HE OR SHE KNOWINGLY
AND UNLAWFULLY SELLS CANNABIS, CONCENTRATED CANNABIS OR CANNABIS-INFUSED
PRODUCTS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE.
  SALE  OF  CANNABIS  TO  A  PERSON UNDER TWENTY-ONE YEARS OF AGE IN THE
SECOND DEGREE IS A CLASS A MISDEMEANOR.
§ 222.40 SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE
           IN THE FIRST DEGREE.

A. 1617--A                         74

  A  PERSON  TWENTY-ONE  YEARS OF AGE AND OLDER IS GUILTY OF THE SALE OF
CANNABIS TO A PERSON UNDER TWENTY-ONE YEARS OF AGE IN THE  FIRST  DEGREE
WHEN,  BEING  TWENTY-ONE  YEARS OF AGE OR OLDER, HE OR SHE KNOWINGLY AND
UNLAWFULLY SELLS MORE THAN THREE OUNCES OF CANNABIS, MORE  THAN  TWENTY-
FOUR  GRAMS  OF CONCENTRATED CANNABIS OR THE EQUIVALENT AMOUNT OF CANNA-
BIS-INFUSED PRODUCTS.
  SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE IN  THE
FIRST DEGREE IS A CLASS E FELONY.
  §  17.  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  CANNABIS;
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.
  §  18. Section 1.20 of the criminal procedure law is amended by adding
a new subdivision 45 to read as follows:
  45. "EXPUNGE" MEANS, WHERE AN  ARREST  AND  ANY  ENFORCEMENT  ACTIVITY
CONNECTED WITH THAT ARREST, INCLUDING PROSECUTION AND ANY DISPOSITION IN
ANY  NEW  YORK  STATE  COURT,  IS  DEEMED  A  NULLITY AND THE ACCUSED IS
RESTORED, IN CONTEMPLATION OF THE LAW, TO  THE  STATUS  SUCH  INDIVIDUAL
OCCUPIED  BEFORE  THE  ARREST  AND/OR  PROSECUTION; THAT RECORDS OF SUCH
ARREST, PROSECUTION AND/OR DISPOSITION SHALL BE MARKED  AS  EXPUNGED  OR
SHALL  BE  DESTROYED  AS  SET  FORTH  IN SECTION 160.50 OF THIS CHAPTER.
NEITHER THE ARREST NOR PROSECUTION AND/OR  DISPOSITION,  IF  ANY,  OF  A
MATTER  DEEMED  A  NULLITY  SHALL  OPERATE  AS A DISQUALIFICATION OF ANY
PERSON SO ACCUSED TO PURSUE OR ENGAGE IN ANY  LAWFUL  ACTIVITY,  OCCUPA-
TION,  PROFESSION  OR  CALLING.  EXCEPT  WHERE  SPECIFICALLY REQUIRED OR
PERMITTED BY STATUTE OR UPON SPECIFIC AUTHORIZATION OF A SUPERIOR COURT,
NO SUCH PERSON SHALL BE REQUIRED TO DIVULGE  INFORMATION  PERTAINING  TO
THE ARREST, PROSECUTION AND/OR DISPOSITION OF SUCH A MATTER.
  §  19.  Subdivision 1 of section 160.50 of the criminal procedure law,
as amended by chapter 169 of the laws of 1994, paragraph (d) as  amended
by chapter 449 of the laws of 2015, is amended and a new subdivision 1-a
is added to read as follows:
  1.  Upon  the termination of a criminal action or proceeding against a
person in favor of such person, as defined in subdivision three of  this
section,  unless  the  district  attorney upon motion with not less than
five days notice to such person or his or her attorney  demonstrates  to
the  satisfaction  of  the  court  that the interests of justice require
otherwise, or the court on its own motion with not less than  five  days
notice  to such person or his or her attorney determines that the inter-
ests of justice require otherwise and states the reasons for such deter-
mination on the record, [the record of such action or  proceeding  shall
be  sealed  and  the  clerk of the court wherein such criminal action or
proceeding was terminated shall immediately notify the  commissioner  of
the division of criminal justice services and the heads of all appropri-
ate  police  departments  and  other  law  enforcement agencies that the
action has been terminated in favor of the accused, and unless the court
has directed otherwise, that the record of  such  action  or  proceeding
shall  be  sealed.  Upon receipt of notification of such termination and
sealing] SUCH ACTION OR PROCEEDING SHALL BE DEEMED A NULLITY AND RECORDS
OF SUCH ACTION OR PROCEEDING EXPUNGED, AND THE CLERK OF THE COURT WHERE-
IN SUCH CRIMINAL ACTION OR PROCEEDING WAS TERMINATED  SHALL  IMMEDIATELY
NOTIFY THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES AND

A. 1617--A                         75

THE  HEADS  OF ALL APPROPRIATE POLICE DEPARTMENTS AND OTHER LAW ENFORCE-
MENT AGENCIES THAT THE ACTION  HAS  BEEN  TERMINATED  IN  FAVOR  OF  THE
ACCUSED  AND  DEEMED A NULLITY, AND UNLESS THE COURT HAS DIRECTED OTHER-
WISE,  THAT THE RECORD OF OR RELATING TO SUCH ACTION OR PROCEEDING SHALL
BE IMMEDIATELY EXPUNGED AS FOLLOWS:
  (a) every photograph of such person and photographic plate  or  proof,
and  all palmprints and fingerprints, RETINA SCANS OR DNA MATERIAL taken
or made of such person pursuant to the provisions  of  this  article  in
regard  to  the  action  or  proceeding  terminated, [except a dismissal
pursuant to section 170.56 or 210.46 of this chapter,]  and  all  dupli-
cates  and  copies  thereof,  except  a  digital fingerprint image where
authorized pursuant to paragraph (e) of this subdivision,  shall  forth-
with  be[,  at the discretion of the recipient agency, either] destroyed
[or returned to such person, or to the  attorney  who  represented  such
person]  at the time of the termination of the action or proceeding[, at
the address given by such  person  or  attorney  during  the  action  or
proceeding,]  by  the  division  of criminal justice services and by any
police department or law enforcement agency having any such  photograph,
photographic  plate or proof, palmprint [or], fingerprints, RETINA SCANS
OR DNA MATERIAL in its possession or under its control;
  (b) any police department or law  enforcement  agency,  including  the
division  of  criminal  justice services, which transmitted or otherwise
forwarded to any agency of the United States or of any other state or of
any other jurisdiction outside the state of New York copies of any  such
photographs,  photographic  plates  or proofs, palmprints [and], finger-
prints, RETINA SCANS  OR  DNA  MATERIAL,  including  those  relating  to
actions  or  proceedings which were dismissed pursuant to section 170.56
or 210.46 of this [chapter] PART, shall forthwith formally [request  in]
INFORM THEM IN writing that [all such copies be destroyed or returned to
the  police  department  or  law enforcement agency which transmitted or
forwarded them, and, if returned, such department or  agency  shall,  at
its discretion, either destroy or return them as provided herein, except
that  those  relating to dismissals pursuant to section 170.56 or 210.46
of this chapter shall not be destroyed or returned by such department or
agency] THE MATTER HAS BEEN EXPUNGED AND REQUEST  IN  WRITING  THAT  ALL
SUCH COPIES BE DESTROYED;
  (c) all official records and papers, including judgments and orders of
a  court  but  not  including  published  court decisions or opinions or
records and briefs on appeal, relating to  the  arrest  or  prosecution,
including  all  duplicates and copies thereof, on file with the division
of criminal justice services, any court, police agency, or  prosecutor's
office  shall  be [sealed and not made available to any person or public
or private agency] MARKED AS EXPUNGED BY CONSPICUOUSLY INDICATING ON THE
FACE OF THE RECORD OR AT THE BEGINNING OF  THE  DIGITIZED  FILE  OF  THE
RECORD THAT THE RECORD HAS BEEN DESIGNATED AS EXPUNGED. SUCH RECORDS AND
PAPERS  SHALL NOT BE MADE AVAILABLE TO ANY PERSON, EXCEPT THE INDIVIDUAL
WHOSE CASE HAS BEEN DEEMED A NULLITY OR THEIR DESIGNATED  AGENT  AS  SET
FORTH  IN PARAGRAPH (D) OF THIS SUBDIVISION, OR TO ANY PUBLIC OR PRIVATE
AGENCY;
  (d) [such] records SET FORTH IN  PARAGRAPH  (C)  OF  THIS  SUBDIVISION
shall be made available to the person accused or to such person's desig-
nated  agent,  and  shall  be  made available to (i) a prosecutor in any
proceeding in which the accused has  moved  for  an  order  pursuant  to
section  170.56 or 210.46 of this [chapter] PART, or (ii) a law enforce-
ment agency upon ex parte motion  in  any  superior  court,  or  in  any
district court, city court or the criminal court of the city of New York

A. 1617--A                         76

provided  that  such  court ORIGINALLY sealed OR EXPUNGED the record, if
such agency demonstrates to the satisfaction of the court  that  justice
requires  that  such records be made available to it, or (iii) any state
or  local  officer  or  agency  with  responsibility for the issuance of
licenses to possess guns, when the accused has made application for such
a license, or (iv) the New York  state  department  of  corrections  and
community  supervision  when  the  accused is on parole supervision as a
result of conditional release or a parole release  granted  by  the  New
York  state  board of parole, and the arrest which is the subject of the
inquiry is one which occurred while the accused was  under  such  super-
vision,  or  (v)  any  prospective employer of a police officer or peace
officer as those terms are  defined  in  subdivisions  thirty-three  and
thirty-four  of section 1.20 of this chapter, in relation to an applica-
tion for employment as a police  officer  or  peace  officer;  provided,
however,  that  every  person  who  is  an applicant for the position of
police officer or peace officer shall be furnished with a  copy  of  all
records  obtained  under  this  paragraph and afforded an opportunity to
make an explanation thereto, or (vi) the probation department  responsi-
ble  for supervision of the accused when the arrest which is the subject
of the inquiry is one which occurred while the accused  was  under  such
supervision; and
  (e)  where fingerprints subject to the provisions of this section have
been received by the division of criminal justice services and have been
filed by the division as digital images, such images  may  be  retained,
provided  that  a fingerprint card of the individual is on file with the
division which was not [sealed] DESTROYED pursuant to  this  section  or
section 160.55 of this article.
  (1-A) CASES PREVIOUSLY SEALED PURSUANT TO THIS SECTION SHALL BE DEEMED
EXPUNGED, AND DIGITAL RECORDS SHALL BE SO MARKED.
  §  20.  Paragraphs (i), (j) and (k) of subdivision 3 of section 160.50
of the criminal procedure law, paragraphs (i) and (j) as added by  chap-
ter  905  of  the laws of 1977, paragraph (k) as added by chapter 835 of
the laws of 1977 and as relettered by chapter 192 of the  laws  of  1980
and  such  subdivision as renumbered by chapter 142 of the laws of 1991,
are amended to read as follows:
  (i) prior to the filing of an accusatory instrument in a local  crimi-
nal  court  against  such person, the prosecutor elects not to prosecute
such person. In such event, the prosecutor shall serve  a  certification
of  such  disposition upon the division of criminal justice services and
upon the appropriate police department or law enforcement agency  which,
upon  receipt  thereof,  shall  comply with the provisions of paragraphs
(a), (b), (c) and (d) of subdivision one of this  section  in  the  same
manner  as  is  required  thereunder with respect to an order of a court
entered pursuant to said subdivision one[.]; OR
  (j) following the arrest of such person, the arresting police  agency,
prior  to  the  filing  of  an accusatory instrument in a local criminal
court but subsequent to the forwarding of a copy of the fingerprints  of
such  person to the division of criminal justice services, elects not to
proceed further. In such event, the head of the arresting police  agency
shall  serve  a  certification  of such disposition upon the division of
criminal justice services which, upon receipt thereof, shall comply with
the provisions of paragraphs (a), (b), (c) and (d) of subdivision one of
this section in the same manner as is required thereunder  with  respect
to an order of a court entered pursuant to said subdivision one[.]; OR
  (k)  (i)  The accusatory instrument alleged a violation of article two
hundred twenty or section 240.36 of the penal law, prior to  the  taking

A. 1617--A                         77

effect  of  article  two  hundred twenty-one of the penal law, or BY THE
CONVICTION OF SUCH PERSON OF a violation of [article two  hundred  twen-
ty-one]  SECTION  221.45 of the penal law ON OR AFTER THE EFFECTIVE DATE
OF  THE  CHAPTER  OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED THIS
PARAGRAPH OR A VIOLATION OF  SECTION  221.05,  221.10,  221.15,  221.20,
221.25, 221.30, 221.35 OR 221.40 OF THE PENAL LAW PRIOR TO THE EFFECTIVE
DATE  OF  THE  CHAPTER OF THE LAWS OF TWO THOUSAND NINETEEN THAT AMENDED
THIS PARAGRAPH; AND (ii)  the  sole  controlled  substance  involved  is
[marijuana; (iii) the conviction was only for a violation or violations;
and  (iv)  at  least three years have passed since the offense occurred]
MARIHUANA. NO DEFENDANT SHALL BE REQUIRED OR PERMITTED TO  WAIVE  ELIGI-
BILITY FOR SEALING PURSUANT TO THIS PARAGRAPH AS PART OF A PLEA OF GUIL-
TY, SENTENCE OR ANY AGREEMENT RELATED TO A CONVICTION FOR A VIOLATION OF
SECTION  221.45  OF  THE PENAL LAW. ANY SUCH WAIVER SHALL BE DEEMED VOID
AND WHOLLY UNENFORCEABLE.
  § 21. Subdivision 4 of section 160.50 of the criminal procedure law is
REPEALED, and three new subdivisions 4, 5, and 6 are added  to  read  as
follows:
  4.  (A)  RECORDS OF ANY ACTION OR PROCEEDING TERMINATED FOR ANY REASON
OTHER THAN A CRIMINAL  CONVICTION  PRIOR  TO  NOVEMBER  FIRST,  NINETEEN
HUNDRED  NINETY-ONE SHALL BE EXPUNGED.  THE DIVISION OF CRIMINAL JUSTICE
SERVICES SHALL IDENTIFY SUCH RECORDS WITHIN SIX MONTHS OF THE  EFFECTIVE
DATE  OF THIS SUBDIVISION, AND NOTIFY THE NEW YORK STATE OFFICE OF COURT
ADMINISTRATION (HEREINAFTER OCA) THAT SUCH ACTION QUALIFIES FOR EXPUNGE-
MENT. UPON RECEIPT OF SUCH NOTIFICATION, THE MATTER SHALL BE EXPUNGED AS
DESCRIBED IN SUBDIVISION ONE OF THIS SECTION.
  (B) WHERE A CRIMINAL ACTION OR PROCEEDING WAS TERMINATED,  AS  DEFINED
IN  PARAGRAPH  (K)  OF  SUBDIVISION  THREE OF THIS SECTION, PRIOR TO THE
EFFECTIVE DATE OF THIS SUBDIVISION, SUCH CRIMINAL ACTION  OR  PROCEEDING
SHALL  BE  AUTOMATICALLY  VACATED AND DISMISSED, AND ALL RECORDS OF SUCH
ACTION OR PROCEEDING EXPUNGED AS SET FORTH IN SUBDIVISION  ONE  OF  THIS
SECTION,  AND THE MATTER TERMINATED IN FAVOR OF THE ACCUSED AND DEEMED A
NULLITY, BECAUSE THE PRIOR CONVICTION IS NOW LEGALLY INVALID. OCA  SHALL
AUTOMATICALLY  NOTIFY  THE  COMMISSIONER  OF  THE  DIVISION  OF CRIMINAL
JUSTICE SERVICES AND THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND
OTHER LAW ENFORCEMENT AGENCIES THAT THE PRIOR CONVICTION IS NOW  LEGALLY
INVALID AND THAT THE ACTION HAS BEEN VACATED, DISMISSED AND EXPUNGED AND
THUS TERMINATED IN FAVOR OF THE ACCUSED. UPON RECEIPT OF NOTIFICATION OF
SUCH  VACATUR,  TERMINATION AND EXPUNGEMENT, ALL RECORDS RELATING TO THE
CRIMINAL ACTION SHALL BE EXPUNGED AS DESCRIBED  IN  SUBDIVISION  ONE  OF
THIS SECTION.
  5.  IN  SITUATIONS WHERE AUTOMATIC VACATUR, DISMISSAL, EXPUNGEMENT AND
RECORD DESTRUCTION IS REQUIRED BY PARAGRAPH (B) OF SUBDIVISION  FOUR  OF
THIS  SECTION BUT HAS NOT TAKEN PLACE, OR WHERE SUPPORTING COURT RECORDS
CANNOT BE LOCATED OR HAVE BEEN DESTROYED, AND  AN  INDIVIDUAL  OR  THEIR
ATTORNEY  PRESENTS  TO  OCA  FINGERPRINT RECORDS FROM THE NEW YORK STATE
DIVISION OF CRIMINAL JUSTICE SERVICES OR A COURT DISPOSITION WHICH INDI-
CATE THAT A CRIMINAL ACTION OR  PROCEEDING  AGAINST  THE  APPLICANT  WAS
TERMINATED  BY  A  CONVICTION FOR SECTION 221.05, 221.10 221.15, 221.20,
221.25, 221.30, 221.35, OR 221.40 OF THE PENAL LAW IN  EFFECT  PRIOR  TO
THE  EFFECTIVE DATE OF THIS SUBDIVISION, WITHIN THIRTY DAYS OF NOTICE TO
OCA, THE ACTION SHALL FORTHWITH BE VACATED, DISMISSED, AND  EXPUNGED  AS
SET FORTH IN SUBDIVISION ONE OF THIS SECTION.
  6. VACATUR, DISMISSAL AND EXPUNGEMENT AS SET FORTH IN PARAGRAPH (A) OR
(B)  OF  SUBDIVISION FOUR OR SUBDIVISION FIVE OF THIS SECTION IS WITHOUT
PREJUDICE TO AN INDIVIDUAL OR  THEIR  ATTORNEY  SEEKING  FURTHER  RELIEF

A. 1617--A                         78

PURSUANT  TO  SECTION  440.10  OF  THIS PART. NOTHING IN THIS SECTION IS
INTENDED TO DIMINISH OR ABROGATE ANY RIGHTS OR REMEDIES OTHERWISE AVAIL-
ABLE TO THE INDIVIDUAL.
  §  22.  Subdivision 1 of section 170.56 of the criminal procedure law,
as amended by chapter 360 of the laws of 1977, is  amended  to  read  as
follows:
  1.  Upon or after arraignment in a local criminal court upon an infor-
mation, a prosecutor's information or a misdemeanor complaint, where the
sole  remaining  count  or  counts  charge  a violation or violations of
section [221.05, 221.10, 221.15, 221.35 or 221.40] 221.45 of  the  penal
law,  OR  UPON SUMMONS FOR A NUISANCE OFFENSE UNDER SECTION SIXTY-FIVE-C
OF THE ALCOHOLIC BEVERAGE CONTROL LAW and before the entry of a plea  of
guilty  thereto  or  commencement  of   a trial thereof, the court, upon
motion of a defendant, may order that all proceedings be  suspended  and
the  action  adjourned  in contemplation of dismissal, or upon a finding
that adjournment would not be necessary or appropriate and  the  setting
forth  in  the  record  of the reasons for such findings, may dismiss in
furtherance of justice the  accusatory  instrument;  provided,  however,
that  the  court  may  not  order  such  adjournment in contemplation of
dismissal or dismiss the accusatory instrument if: (a) the defendant has
previously been granted such adjournment in contemplation of  dismissal,
or  (b) the defendant has previously been granted a dismissal under this
section, or (c) the defendant  has  previously  been  convicted  of  any
offense involving controlled substances, or (d) the defendant has previ-
ously  been  convicted  of  a  crime  and the district attorney does not
consent or (e) the defendant has previously been adjudicated a  youthful
offender on the basis of any act or acts involving controlled substances
and the district attorney does not consent.  NOTWITHSTANDING THE LIMITA-
TIONS  SET  FORTH  IN  THIS  SUBDIVISION,  THE  COURT MAY ORDER THAT ALL
PROCEEDINGS BE SUSPENDED AND THE ACTION ADJOURNED  IN  CONTEMPLATION  OF
DISMISSAL  BASED  UPON  A  FINDING  OF  EXCEPTIONAL  CIRCUMSTANCES.  FOR
PURPOSES OF THIS  SUBDIVISION,  EXCEPTIONAL  CIRCUMSTANCES  EXIST  WHEN,
REGARDLESS  OF THE ULTIMATE DISPOSITION OF THE CASE, THE ENTRY OF A PLEA
OF GUILTY IS LIKELY TO RESULT IN SEVERE OR ONGOING CONSEQUENCES, INCLUD-
ING, BUT NOT LIMITED TO, POTENTIAL OR ACTUAL IMMIGRATION CONSEQUENCES.
  § 23. Paragraph (j) of subdivision 1 of section 440.10 of the criminal
procedure law, as amended by section 2 of part MMM of chapter 59 of  the
laws  of  2019,  is  amended and a new paragraph (k) is added to read as
follows:
  (j) The judgment is a conviction for a class A or unclassified  misde-
meanor  entered prior to the effective date of this paragraph and satis-
fies the ground prescribed in paragraph (h) of this subdivision.   There
shall  be  a rebuttable presumption that a conviction by plea to such an
offense was not knowing, voluntary and  intelligent,  based  on  ongoing
collateral  consequences,  including  potential  or  actual  immigration
consequences, and  there  shall  be  a  rebuttable  presumption  that  a
conviction  by  verdict  constitutes  cruel and unusual punishment under
section five of article one of the  state  constitution  based  on  such
consequences[.]; OR
  (K)  IF  PERTINENT,  SUCH RELIEF IS AVAILABLE NOTWITHSTANDING THAT THE
JUDGMENT WAS FOR A VIOLATION OF SECTION 221.05, 221.10, 221.15,  221.20,
221.25,  221.30,  221.35,  OR 221.40 OF THE PENAL LAW IN EFFECT PRIOR TO
THE EFFECTIVE DATE OF THIS PARAGRAPH AND THAT THE UNDERLYING  ACTION  OR
PROCEEDING  HAS ALREADY BEEN VACATED, DISMISSED AND EXPUNGED PURSUANT TO
PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION 160.50  OF  THIS  PART,  IN
WHICH  CASE  THE  COURT  SHALL  PRESUME  THAT A CONVICTION BY PLEA FOR A

A. 1617--A                         79

VIOLATION OF THE AFOREMENTIONED SECTIONS OF THE THEN PENAL LAW  WAS  NOT
KNOWING AND VOLUNTARY, IF IT HAS ONGOING CONSEQUENCES, INCLUDING BUT NOT
LIMITED  TO,  POTENTIAL  OR  ACTUAL  IMMIGRATION CONSEQUENCES, AND SHALL
PRESUME  THAT  A CONVICTION BY VERDICT OF THE AFOREMENTIONED SECTIONS OF
THE THEN PENAL LAW CONSTITUTES CRUEL AND UNUSUAL  PUNISHMENT  UNDER  THE
STATE  CONSTITUTION,  BASED  ON  THOSE CONSEQUENCES. THE PROSECUTION MAY
REBUT THESE PRESUMPTIONS.
  § 24. The criminal procedure law is amended by adding  a  new  section
440.46-a to read as follows:
§ 440.46-A MOTION FOR RESENTENCE; PERSONS CONVICTED OF CERTAIN MARIHUANA
            OFFENSES.
  1.  WHERE  A  PERSON IS CURRENTLY SERVING A SENTENCE FOR A CONVICTION,
WHETHER BY VERDICT OR BY OPEN OR NEGOTIATED PLEA,  WHO  WOULD  NOT  HAVE
BEEN  GUILTY  OF AN OFFENSE AFTER THE EFFECTIVE DATE OF THIS SECTION HAD
THIS SECTION BEEN IN EFFECT AT THE TIME OF THEIR CONVICTION, THE  OFFICE
OF  COURT ADMINISTRATION SHALL AUTOMATICALLY VACATE, DISMISS AND EXPUNGE
SUCH CONVICTION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION
160.50 OF THIS PART AND IMMEDIATELY NOTIFY THE NEW YORK STATE DEPARTMENT
OF CORRECTIONS AND COMMUNITY SUPERVISION AND LOCAL JAILS, WHICH ENTITIES
SHALL IMMEDIATELY EFFECTUATE THE APPROPRIATE RELIEF. THE OFFICE OF COURT
ADMINISTRATION SHALL LIKEWISE AUTOMATICALLY NOTIFY THE DIVISION OF CRIM-
INAL JUSTICE SERVICES AND ANY  POLICE  DEPARTMENT  AND  LAW  ENFORCEMENT
AGENCY,  WHICH  DIVISION,  DEPARTMENT OR AGENCY MUST IMMEDIATELY DESTROY
APPURTENANT RECORDS AS SET FORTH IN PARAGRAPH (B) OF SUBDIVISION FOUR OF
SECTION 160.50 OF THIS PART.
  2. (A) A PERSON CURRENTLY SERVING A SENTENCE FOR A CONVICTION, WHETHER
BY VERDICT OR BY OPEN OR NEGOTIATED PLEA, WHO WOULD HAVE BEEN GUILTY  OF
A  LESSER  OFFENSE  AFTER  THE  EFFECTIVE  DATE OF THIS SECTION HAD THIS
SECTION BEEN IN EFFECT AT THE TIME OF THEIR CONVICTION MAY PETITION  FOR
A RECALL OF SENTENCE BEFORE THE TRIAL COURT THAT ENTERED THE JUDGMENT OF
CONVICTION  IN  THEIR  CASE  TO  REQUEST RESENTENCING IN ACCORDANCE WITH
ARTICLE TWO HUNDRED TWENTY-TWO OF THE PENAL LAW.
  (B) UPON RECEIVING A MOTION UNDER PARAGRAPH (A) OF  THIS  SUBDIVISION,
THE  COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA IN SUCH PARA-
GRAPH (A) UNLESS THE PARTY OPPOSING  THE  MOTION  PROVES  BY  CLEAR  AND
CONVINCING  EVIDENCE  THAT  THE MOVANT DOES NOT SATISFY THE CRITERIA. IF
THE MOVANT SATISFIES THE CRITERIA IN PARAGRAPH (A) OF THIS  SUBDIVISION,
THE COURT SHALL GRANT THE MOTION TO RESENTENCE.
  3.  UNDER  NO CIRCUMSTANCES MAY RESENTENCING UNDER THIS SECTION RESULT
IN THE IMPOSITION OF A TERM LONGER THAN THE ORIGINAL  SENTENCE,  OR  THE
REINSTATEMENT  OF CHARGES DISMISSED PURSUANT TO A NEGOTIATED PLEA AGREE-
MENT.
  4. (A) A PERSON WHO HAS COMPLETED HIS OR HER SENTENCE FOR A CONVICTION
UNDER THE FORMER ARTICLE TWO HUNDRED TWENTY-ONE OF THE PENAL LAW, WHETH-
ER BY TRIAL OR OPEN OR NEGOTIATED PLEA, WHO WOULD HAVE BEEN GUILTY OF  A
LESSER  OFFENSE ON AND AFTER THE EFFECTIVE DATE OF THIS SECTION HAD THIS
SECTION BEEN IN EFFECT AT THE TIME OF HIS OR HER CONVICTION, MAY FILE AN
APPLICATION  BEFORE  THE  TRIAL  COURT  THAT  ENTERED  THE  JUDGMENT  OF
CONVICTION  IN  HIS  OR HER CASE TO HAVE THE CONVICTION REDESIGNATED (OR
"RECLASSIFIED"), IN ACCORDANCE WITH ARTICLE TWO  HUNDRED  TWENTY-TWO  OF
THE PENAL LAW.
  (B)  UPON  RECEIVING A MOTION UNDER PARAGRAPH (A) OF THIS SUBDIVISION,
THE COURT SHALL PRESUME THE MOVANT SATISFIES THE CRITERIA  IN  PARAGRAPH
(A)  OF  THIS SUBDIVISION UNLESS THE PARTY OPPOSING THE MOTION PROVES BY
CLEAR AND CONVINCING EVIDENCE THAT  THE  MOVANT  DOES  NOT  SATISFY  THE
CRITERIA.  IF THE MOVANT SATISFIES THE CRITERIA IN PARAGRAPH (A) OF THIS

A. 1617--A                         80

SUBDIVISION, THE  COURT  SHALL  GRANT  THE  MOTION  TO  REDESIGNATE  (OR
"RECLASSIFY") THE CONVICTION.
  5. (A) IF THE COURT THAT ORIGINALLY SENTENCED THE MOVANT IS NOT AVAIL-
ABLE,  THE  PRESIDING JUDGE SHALL DESIGNATE ANOTHER JUDGE TO RULE ON THE
PETITION OR APPLICATION.
  (B) UNLESS REQUESTED BY THE MOVANT, NO HEARING IS NECESSARY  TO  GRANT
AN APPLICATION FILED UNDER SUBDIVISION TWO OR FOUR OF THIS SECTION.
  (C) ANY FELONY CONVICTION THAT IS VACATED AND RESENTENCED UNDER SUBDI-
VISION  TWO  OF THIS SECTION OR DESIGNATED AS A MISDEMEANOR OR VIOLATION
UNDER SUBDIVISION FOUR OF THIS SECTION SHALL BE CONSIDERED A MISDEMEANOR
OR VIOLATION FOR  ALL  PURPOSES.  ANY  MISDEMEANOR  CONVICTION  THAT  IS
VACATED  AND RESENTENCED UNDER SUBDIVISION TWO OF THIS SECTION OR DESIG-
NATED AS A VIOLATION UNDER SUBDIVISION FOUR OF  THIS  SECTION  SHALL  BE
CONSIDERED A VIOLATION FOR ALL PURPOSES.
  (D)  NOTHING  IN  THIS SECTION IS INTENDED TO DIMINISH OR ABROGATE ANY
RIGHTS OR REMEDIES OTHERWISE AVAILABLE TO THE PETITIONER OR APPLICANT.
  (E) NOTHING IN THIS AND RELATED SECTIONS IS INTENDED  TO  DIMINISH  OR
ABROGATE  THE  FINALITY  OF JUDGMENTS IN ANY CASE NOT FALLING WITHIN THE
PURVIEW OF THIS SECTION.
  (F) THE PROVISIONS OF THIS SECTION SHALL  APPLY  EQUALLY  TO  JUVENILE
DELINQUENCY  ADJUDICATIONS  AND  DISPOSITIONS UNDER SECTION FIVE HUNDRED
ONE-E OF THE EXECUTIVE LAW IF THE JUVENILE WOULD NOT HAVE BEEN GUILTY OF
AN OFFENSE OR WOULD HAVE BEEN GUILTY OF  A  LESSER  OFFENSE  UNDER  THIS
SECTION  HAD  THIS  SECTION  BEEN  IN  EFFECT  AT THE TIME OF HIS OR HER
CONVICTION.
  (G) THE OFFICE OF  COURT  ADMINISTRATION  SHALL  PROMULGATE  AND  MAKE
AVAILABLE  ALL NECESSARY FORMS TO ENABLE THE FILING OF THE PETITIONS AND
APPLICATIONS PROVIDED IN THIS SECTION NO LATER THAN SIXTY DAYS FOLLOWING
THE EFFECTIVE DATE OF THIS SECTION.
  § 25. Paragraph (c) of subdivision 8 of section 700.05 of the criminal
procedure law, as amended by chapter 37 of the laws of 2014, is  amended
to read as follows:
  (c)  Criminal  possession  of  a  controlled  substance in the seventh
degree  as  defined  in  section  220.03  of  the  penal  law,  criminal
possession  of  a controlled substance in the fifth degree as defined in
section 220.06 of the penal law, criminal  possession  of  a  controlled
substance in the fourth degree as defined in section 220.09 of the penal
law,  criminal  possession of a controlled substance in the third degree
as defined in section 220.16 of the penal law, criminal possession of  a
controlled  substance  in the second degree as defined in section 220.18
of the penal law, criminal possession of a controlled substance  in  the
first  degree  as  defined  in section 220.21 of the penal law, criminal
sale of a controlled substance in the fifth degree as defined in section
220.31 of the penal law, criminal sale of a controlled substance in  the
fourth  degree  as  defined in section 220.34 of the penal law, criminal
sale of a controlled substance in the third degree as defined in section
220.39 of the penal law, criminal sale of a controlled substance in  the
second  degree  as  defined in section 220.41 of the penal law, criminal
sale of a controlled substance in the first degree as defined in section
220.43 of the penal law, criminally possessing a  hypodermic  instrument
as  defined  in  section  220.45  of  the  penal law, criminal sale of a
prescription for a controlled substance or a controlled substance  by  a
practitioner  or  pharmacist  as  defined in section 220.65 of the penal
law, criminal possession of methamphetamine  manufacturing  material  in
the  second degree as defined in section 220.70 of the penal law, crimi-
nal possession of methamphetamine manufacturing material  in  the  first

A. 1617--A                         81

degree  as  defined  in  section  220.71  of  the  penal  law,  criminal
possession of precursors of methamphetamine as defined in section 220.72
of the penal law, unlawful manufacture of methamphetamine in  the  third
degree  as defined in section 220.73 of the penal law, unlawful manufac-
ture of methamphetamine in the  second  degree  as  defined  in  section
220.74  of the penal law, unlawful manufacture of methamphetamine in the
first degree as defined in section 220.75 of  the  penal  law,  unlawful
disposal  of  methamphetamine  laboratory material as defined in section
220.76 of the penal law, operating as a major trafficker as  defined  in
section  220.77  of  the penal law, [criminal possession of marihuana in
the first degree as defined in section 221.30 of the penal law, criminal
sale of marihuana in the first degree as defined in  section  221.55  of
the  penal  law,]  promoting gambling in the second degree as defined in
section 225.05 of the penal law, promoting gambling in the first  degree
as  defined  in  section 225.10 of the penal law, possession of gambling
records in the second degree as defined in section 225.15 of  the  penal
law,  possession  of  gambling records in the first degree as defined in
section 225.20 of the penal law, and possession of a gambling device  as
defined in section 225.30 of the penal law;
  § 26. Paragraphs (b) and (c) of subdivision 4-b and subdivisions 6 and
9  of  section  1310 of the civil practice law and rules, paragraphs (b)
and (c) of subdivision 4-b as added by chapter 655 of the laws  of  1990
and  subdivisions  6  and 9 as added by chapter 669 of the laws of 1984,
are amended to read as follows:
  (b) on three or more occasions, engaging  in  conduct  constituting  a
violation  of  any  of  the  felonies defined in section 220.09, 220.16,
220.18, 220.21, 220.31, 220.34, 220.39, 220.41[,] OR 220.43 [or  221.55]
of  the  penal law, which violations do not constitute a single criminal
offense as defined in subdivision one of section 40.10 of  the  criminal
procedure law, or a single criminal transaction, as defined in paragraph
(a)  of  subdivision two of section 40.10 of the criminal procedure law,
and at least one of which resulted in a conviction of such  offense,  or
where  the  accusatory  instrument charges one or more of such felonies,
conviction upon a plea of guilty to a felony  for  which  such  plea  is
otherwise authorized by law; or
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34 or 220.39 of the penal law, [or a conviction of a  crimi-
nal  defendant  for  a violation of section 221.30 of the penal law,] or
where the accusatory instrument charges any such felony, conviction upon
a plea of guilty to a felony for which the plea is otherwise  authorized
by  law,  together with evidence which: (i) provides substantial indicia
that the defendant used the real property  to  engage  in  a  continual,
ongoing  course  of  conduct involving the unlawful mixing, compounding,
manufacturing, warehousing, or packaging of  controlled  substances  [or
where  the  conviction is for a violation of section 221.30 of the penal
law, marijuana,] as part of an illegal trade or business for  gain;  and
(ii) establishes, where the conviction is for possession of a controlled
substance  [or where the conviction is for a violation of section 221.30
of the penal law, marijuana], that such possession was with  the  intent
to sell it.
  [6.  "Pre-conviction  forfeiture crime" means only a felony defined in
article two hundred twenty or section 221.30  or  221.55  of  the  penal
law.]
  9.  "Criminal defendant" means a person who has criminal liability for
a crime defined in [subdivisions] SUBDIVISION five [and six  hereof]  OF
THIS  SECTION.  For  purposes  of  this  article,  a person has criminal

A. 1617--A                         82

liability when [(a)] he has been convicted of a post-conviction  forfei-
ture  crime[, or (b) the claiming authority proves by clear and convinc-
ing evidence that such person has committed an act in violation of arti-
cle two hundred twenty or section 221.30 or 221.55 of the penal law].
  §  27.  Subdivision 13 of section 89-f of the general business law, as
added by chapter 336 of the laws of 1992, is amended to read as follows:
  13. "Serious offense" shall mean any  felony  involving  the  offenses
enumerated  in  the  closing  paragraph  of this subdivision; a criminal
solicitation of or a conspiracy to commit or an attempt to commit  or  a
criminal  facilitation  of a felony involving the offenses enumerated in
the closing paragraph of this subdivision, which criminal  solicitation,
conspiracy, attempt or criminal facilitation itself constitutes a felony
or  any  offense  in  any  other jurisdiction which if committed in this
state would constitute a felony; any offense in any  other  jurisdiction
which if committed in this state would constitute a felony provided that
for the purposes of this article, none of the following shall be consid-
ered  criminal  convictions  or  reported  as such: (i) a conviction for
which an executive pardon has been issued pursuant to the executive law;
(ii) a conviction which has been vacated  and  replaced  by  a  youthful
offender  finding pursuant to article seven hundred twenty of the crimi-
nal procedure law, or the applicable provisions  of  law  of  any  other
jurisdiction;  or  (iii)  a  conviction  the  records of which have been
sealed pursuant to the applicable provisions of the laws of  this  state
or  of  any  other  jurisdiction;  and (iv) a conviction for which other
evidence of successful rehabilitation to remove the disability has  been
issued.
  Felonies involving: assault, aggravated assault and reckless endanger-
ment  pursuant  to  article  one hundred twenty; vehicular manslaughter,
manslaughter and murder pursuant to article one hundred twenty-five; sex
offenses pursuant to article one hundred thirty; unlawful  imprisonment,
kidnapping  or  coercion  pursuant  to  article one hundred thirty-five;
criminal trespass and burglary pursuant to article  one  hundred  forty;
criminal  mischief,  criminal  tampering  and  tampering with a consumer
product pursuant to article one hundred forty-five;  arson  pursuant  to
article one hundred fifty; larceny and offenses involving theft pursuant
to article one hundred fifty-five; offenses involving computers pursuant
to  article  one  hundred  fifty-six;  robbery  pursuant  to article one
hundred sixty; criminal possession of stolen property pursuant to  arti-
cle  one  hundred  sixty-five;  forgery and related offenses pursuant to
article one hundred seventy; involving false written statements pursuant
to article one hundred seventy-five; commercial bribing  and  commercial
bribe  receiving pursuant to article one hundred eighty; criminal imper-
sonation and scheme to defraud pursuant to article one  hundred  ninety;
bribery involving public servants and related offenses pursuant to arti-
cle  two  hundred;  perjury and related offenses pursuant to article two
hundred ten; tampering with a witness, intimidating a victim or  witness
and  tampering  with  physical  evidence pursuant to article two hundred
fifteen; criminal possession  of  a  controlled  substance  pursuant  to
sections  220.06,  220.09, 220.16, 220.18 and 220.21; criminal sale of a
controlled  substance  pursuant  to  sections  220.31,  220.34,  220.39,
220.41,  220.43  and  220.44;  [criminal] UNLICENSED sale of [marijuana]
CANNABIS IN THE FIRST DEGREE pursuant to [sections  221.45,  221.50  and
221.55]  SECTION 222.30; riot in the first degree, aggravated harassment
in the first degree, criminal nuisance in the first degree  and  falsely
reporting  an incident in the second or first degree pursuant to article

A. 1617--A                         83

two hundred forty; and crimes against public safety pursuant to  article
two hundred sixty-five of the penal law.
  §  28.  Paragraph  (f)  of subdivision 2 of section 850 of the general
business law is REPEALED.
  § 29. Paragraph (h) of subdivision 2 of section  850  of  the  general
business  law, as amended by chapter 812 of the laws of 1980, is amended
to read as follows:
  (h) Objects, used or designed for the purpose of ingesting,  inhaling,
or otherwise introducing [marihuana,] cocaine[, hashish, or hashish oil]
into the human body.
  § 30. Subdivision 7 of section 995 of the executive law, as amended by
chapter 19 of the laws of 2012, is amended to read as follows:
  7.  "Designated  offender"  means  a  person  convicted  of any felony
defined in any chapter of the laws  of  the  state  or  any  misdemeanor
defined  in  the  penal  law  [except that where the person is convicted
under section 221.10 of the penal law, only  a  person  convicted  under
subdivision two of such section, or a person convicted under subdivision
one  of  such  section  who  stands previously convicted of any crime as
defined in subdivision six of section 10.00 of the penal law].
  § 31. Paragraphs (b) and (c) of subdivision 7 of section 480.00 of the
penal law, paragraph (b) as amended by section 31 of part AAA of chapter
56 of the laws of 2009 and paragraph (c) as added by chapter 655 of  the
laws of 1990, are amended to read as follows:
  (b) three or more violations of any of the felonies defined in section
220.09,   220.16,   220.18,  220.21,  220.31,  220.34,  220.39,  220.41,
220.43[,] OR 220.77[, or 221.55] of this chapter,  which  violations  do
not  constitute  a single criminal offense as defined in subdivision one
of section 40.10 of the criminal procedure law,  or  a  single  criminal
transaction,  as  defined in paragraph (a) of subdivision two of section
40.10 of the criminal procedure law, and at least one of which  resulted
in  a  conviction  of  such  offense, or where the accusatory instrument
charges one or more of such felonies, conviction upon a plea  of  guilty
to a felony for which such plea is otherwise authorized by law; or
  (c)  a  conviction  of  a  person  for  a violation of section 220.09,
220.16, 220.34[,] OR 220.39[, or 221.30] of this chapter, or  where  the
accusatory instrument charges any such felony, conviction upon a plea of
guilty  to  a  felony for which the plea is otherwise authorized by law,
together with evidence which: (i) provides substantial indicia that  the
defendant  used  the  real  property  to  engage in a continual, ongoing
course of conduct involving the unlawful mixing,  compounding,  manufac-
turing, warehousing, or packaging of controlled substances [or where the
conviction  is  for a violation of section 221.30 of this chapter, mari-
juana] as part of an illegal trade or business for gain; and (ii) estab-
lishes, where the conviction is for possession of a controlled substance
[or where the conviction is for a violation of section  221.30  of  this
chapter,  marijuana],  that  such possession was with the intent to sell
it.
  § 32. Paragraph (c) of subdivision 4 of section 509-cc of the  vehicle
and  traffic  law,  as  amended  by  chapter 368 of the laws of 2015, is
amended to read as follows:
  (c) The offenses referred to in subparagraph (i) of paragraph  (b)  of
subdivision one and subparagraph (i) of paragraph (c) of subdivision two
of  this  section  that  result in disqualification for a period of five
years shall include a conviction under sections 100.10, 105.13,  115.05,
120.03,  120.04,  120.04-a,  120.05,  120.10,  120.25,  121.12,  121.13,
125.40, 125.45, 130.20, 130.25, 130.52, 130.55, 135.10, 135.55,  140.17,

A. 1617--A                         84

140.25,  140.30, 145.12, 150.10, 150.15, 160.05, 160.10, 220.06, 220.09,
220.16,  220.31,  220.34,  220.60,  220.65,  [221.30,  221.50,  221.55,]
230.00,  230.05, 230.06, 230.11, 230.12, 230.13, 230.19, 230.20, 235.05,
235.06,  235.07,  235.21,  240.06,  245.00,  260.10,  subdivision two of
section 260.20 and sections  260.25,  265.02,  265.03,  265.08,  265.09,
265.10,  265.12,  265.35 of the penal law or an attempt to commit any of
the aforesaid offenses under section 110.00 of the  penal  law,  or  any
similar  offenses  committed under a former section of the penal law, or
any offenses committed under a former section of  the  penal  law  which
would  constitute violations of the aforesaid sections of the penal law,
or any offenses committed outside  this  state  which  would  constitute
violations of the aforesaid sections of the penal law.
  §  33.  The  opening  paragraph  of  paragraph (a) of subdivision 2 of
section 1194 of the vehicle and traffic law, as amended by  chapter  196
of the laws of 1996, is amended to read as follows:
  When authorized. Any person who operates a motor vehicle in this state
shall  be deemed to have given consent to a chemical test of one or more
of the following:   breath, blood[,] OR  urine[,  or  saliva,]  for  the
purpose  of  determining  the  alcoholic and/or drug content, OTHER THAN
CANNABIS CONTENT  INCLUDING  BUT  NOT  LIMITED  TO  TETRAHYDROCANNABINOL
CONTENT,  of  the blood provided that such test is administered by or at
the direction of a police officer with respect to  a  chemical  test  of
breath,  urine [or saliva] or, with respect to a chemical test of blood,
at the direction of a police officer:
  § 34. The article heading of article 20-B of the tax law, as added  by
chapter 90 of the laws of 2014, is amended to read as follows:
                               ARTICLE 20-B
               EXCISE TAX ON MEDICAL [MARIHUANA] CANNABIS
  §  35.  Subdivision  1  of section 171-a of the tax law, as amended by
section 3 of part XX of chapter 59 of the laws of 2019,  is  amended  to
read as follows:
  1.  All  taxes,  interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A  (except  as  otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
(except as otherwise provided in section four hundred eighty-two  there-
of),  twenty-B, TWENTY-C, twenty-D, twenty-one, twenty-two, twenty-four,
twenty-six, twenty-eight (except as otherwise provided in section eleven
hundred two or eleven hundred three  thereof),  twenty-eight-A,  twenty-
nine-B,  thirty-one  (except  as  otherwise provided in section fourteen
hundred twenty-one thereof), thirty-three  and  thirty-three-A  of  this
chapter  shall  be  deposited daily in one account with such responsible
banks, banking houses or trust companies as may  be  designated  by  the
comptroller,  to  the  credit of the comptroller. Such an account may be
established in one or more of such depositories. Such deposits shall  be
kept  separate  and  apart from all other money in the possession of the
comptroller. The comptroller shall require adequate  security  from  all
such depositories. Of the total revenue collected or received under such
articles  of  this  chapter,  the  comptroller shall retain in the comp-
troller's hands such amount as the  commissioner  may  determine  to  be
necessary  for  refunds  or  reimbursements  under such articles of this
chapter out of which amount the comptroller shall  pay  any  refunds  or
reimbursements to which taxpayers shall be entitled under the provisions

A. 1617--A                         85

of  such  articles of this chapter. The commissioner and the comptroller
shall maintain a system  of  accounts  showing  the  amount  of  revenue
collected  or  received from each of the taxes imposed by such articles.
The  comptroller,  after  reserving  the  amount  to pay such refunds or
reimbursements, shall, on or before the tenth day  of  each  month,  pay
into  the  state  treasury to the credit of the general fund all revenue
deposited under this section during the  preceding  calendar  month  and
remaining  to the comptroller's credit on the last day of such preceding
month, (i) except that the comptroller shall pay to the state department
of social services that amount of overpayments of tax imposed by article
twenty-two of this chapter and the interest  on  such  amount  which  is
certified  to  the  comptroller  by the commissioner as the amount to be
credited against past-due support pursuant to subdivision six of section
one hundred seventy-one-c of this article,  (ii)  and  except  that  the
comptroller  shall  pay  to the New York state higher education services
corporation and the state university of New York or the city  university
of  New  York respectively that amount of overpayments of tax imposed by
article twenty-two of this chapter and the interest on such amount which
is certified to the comptroller by the commissioner as the amount to  be
credited  against  the  amount  of  defaults  in repayment of guaranteed
student loans and state university loans or city university loans pursu-
ant to subdivision five of section one hundred seventy-one-d and  subdi-
vision  six  of section one hundred seventy-one-e of this article, (iii)
and except further that, notwithstanding any law, the comptroller  shall
credit   to   the   revenue   arrearage  account,  pursuant  to  section
ninety-one-a of the state finance law, that amount of overpayment of tax
imposed by article nine, nine-A, twenty-two, thirty, thirty-A,  thirty-B
or  thirty-three  of  this  chapter,  and any interest thereon, which is
certified to the comptroller by the commissioner as  the  amount  to  be
credited  against  a  past-due  legally enforceable debt owed to a state
agency pursuant to paragraph (a)  of  subdivision  six  of  section  one
hundred seventy-one-f of this article, provided, however, he shall cred-
it  to the special offset fiduciary account, pursuant to section ninety-
one-c of the state finance law, any such amount creditable as a  liabil-
ity  as  set  forth  in  paragraph (b) of subdivision six of section one
hundred seventy-one-f of this article, (iv) and except further that  the
comptroller shall pay to the city of New York that amount of overpayment
of  tax  imposed  by article nine, nine-A, twenty-two, thirty, thirty-A,
thirty-B or thirty-three of this chapter and any interest  thereon  that
is  certified to the comptroller by the commissioner as the amount to be
credited against city of New York tax warrant judgment debt pursuant  to
section  one  hundred  seventy-one-l  of  this  article,  (v) and except
further that the comptroller shall pay to a  non-obligated  spouse  that
amount of overpayment of tax imposed by article twenty-two of this chap-
ter  and the interest on such amount which has been credited pursuant to
section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
hundred  seventy-one-e,  one hundred seventy-one-f or one hundred seven-
ty-one-l of this article and which is certified to  the  comptroller  by
the commissioner as the amount due such non-obligated spouse pursuant to
paragraph six of subsection (b) of section six hundred fifty-one of this
chapter;  and  (vi) the comptroller shall deduct a like amount which the
comptroller shall pay into the treasury to the  credit  of  the  general
fund  from  amounts  subsequently  payable  to  the department of social
services, the state university of New York, the city university  of  New
York,  or  the  higher  education  services  corporation, or the revenue
arrearage account  or  special  offset  fiduciary  account  pursuant  to

A. 1617--A                         86

section  ninety-one-a  or  ninety-one-c of the state finance law, as the
case may be, whichever had been credited the amount originally  withheld
from  such  overpayment,  and  (vii)  with respect to amounts originally
withheld  from such overpayment pursuant to section one hundred seventy-
one-l of this article and paid to the city of New York, the  comptroller
shall collect a like amount from the city of New York.
  §  36.  Subdivision  1  of section 171-a of the tax law, as amended by
section 4 of part XX of chapter 59 of the laws of 2019,  is  amended  to
read as follows:
  1.  All  taxes,  interest, penalties and fees collected or received by
the commissioner or the commissioner's duly authorized agent under arti-
cles nine (except section one hundred eighty-two-a thereof and except as
otherwise  provided  in  section  two  hundred  five  thereof),  nine-A,
twelve-A  (except  as  otherwise provided in section two hundred eighty-
four-d thereof), thirteen, thirteen-A (except as otherwise  provided  in
section  three  hundred  twelve  thereof),  eighteen,  nineteen,  twenty
(except as otherwise provided in section four hundred eighty-two  there-
of),  TWENTY-C,  twenty-D,  twenty-one, twenty-two, twenty-four, twenty-
six, twenty-eight  (except  as  otherwise  provided  in  section  eleven
hundred  two  or  eleven hundred three thereof), twenty-eight-A, twenty-
nine-B, thirty-one (except as otherwise  provided  in  section  fourteen
hundred  twenty-one  thereof),  thirty-three  and thirty-three-A of this
chapter shall be deposited daily in one account  with  such  responsible
banks,  banking  houses  or  trust companies as may be designated by the
comptroller, to the credit of the comptroller. Such an  account  may  be
established  in one or more of such depositories. Such deposits shall be
kept separate and apart from all other money in the  possession  of  the
comptroller.  The  comptroller  shall require adequate security from all
such depositories. Of the total revenue collected or received under such
articles of this chapter, the comptroller  shall  retain  in  the  comp-
troller's  hands  such  amount  as  the commissioner may determine to be
necessary for refunds or reimbursements  under  such  articles  of  this
chapter  out  of  which  amount the comptroller shall pay any refunds or
reimbursements to which taxpayers shall be entitled under the provisions
of such articles of this chapter. The commissioner and  the  comptroller
shall  maintain  a  system  of  accounts  showing  the amount of revenue
collected or received from each of the taxes imposed by  such  articles.
The  comptroller,  after  reserving  the  amount  to pay such refunds or
reimbursements, shall, on or before the tenth day  of  each  month,  pay
into  the  state  treasury to the credit of the general fund all revenue
deposited under this section during the  preceding  calendar  month  and
remaining  to the comptroller's credit on the last day of such preceding
month, (i) except that the comptroller shall pay to the state department
of social services that amount of overpayments of tax imposed by article
twenty-two of this chapter and the interest  on  such  amount  which  is
certified  to  the  comptroller  by the commissioner as the amount to be
credited against past-due support pursuant to subdivision six of section
one hundred seventy-one-c of this article,  (ii)  and  except  that  the
comptroller  shall  pay  to the New York state higher education services
corporation and the state university of New York or the city  university
of  New  York respectively that amount of overpayments of tax imposed by
article twenty-two of this chapter and the interest on such amount which
is certified to the comptroller by the commissioner as the amount to  be
credited  against  the  amount  of  defaults  in repayment of guaranteed
student loans and state university loans or city university loans pursu-
ant to subdivision five of section one hundred seventy-one-d and  subdi-

A. 1617--A                         87

vision  six  of section one hundred seventy-one-e of this article, (iii)
and except further that, notwithstanding any law, the comptroller  shall
credit   to   the   revenue   arrearage  account,  pursuant  to  section
ninety-one-a of the state finance law, that amount of overpayment of tax
imposed  by article nine, nine-A, twenty-two, thirty, thirty-A, thirty-B
or thirty-three of this chapter, and  any  interest  thereon,  which  is
certified  to  the  comptroller  by the commissioner as the amount to be
credited against a past-due legally enforceable debt  owed  to  a  state
agency  pursuant  to  paragraph  (a)  of  subdivision six of section one
hundred seventy-one-f of this article, provided, however, he shall cred-
it to the special offset fiduciary account, pursuant to section  ninety-
one-c  of the state finance law, any such amount creditable as a liabil-
ity as set forth in paragraph (b) of  subdivision  six  of  section  one
hundred  seventy-one-f of this article, (iv) and except further that the
comptroller shall pay to the city of New York that amount of overpayment
of tax imposed by article nine, nine-A,  twenty-two,  thirty,  thirty-A,
thirty-B  or  thirty-three of this chapter and any interest thereon that
is certified to the comptroller by the commissioner as the amount to  be
credited  against city of New York tax warrant judgment debt pursuant to
section one hundred  seventy-one-l  of  this  article,  (v)  and  except
further  that  the  comptroller shall pay to a non-obligated spouse that
amount of overpayment of tax imposed by article twenty-two of this chap-
ter and the interest on such amount which has been credited pursuant  to
section  one  hundred  seventy-one-c,  one  hundred  seventy-one-d,  one
hundred seventy-one-e, one hundred seventy-one-f or one  hundred  seven-
ty-one-l  of  this  article and which is certified to the comptroller by
the commissioner as the amount due such non-obligated spouse pursuant to
paragraph six of subsection (b) of section six hundred fifty-one of this
chapter; and (vi) the comptroller shall deduct a like amount  which  the
comptroller  shall  pay  into  the treasury to the credit of the general
fund from amounts subsequently  payable  to  the  department  of  social
services,  the  state university of New York, the city university of New
York, or the higher  education  services  corporation,  or  the  revenue
arrearage  account  or  special  offset  fiduciary  account  pursuant to
section ninety-one-a or ninety-one-c of the state finance  law,  as  the
case  may be, whichever had been credited the amount originally withheld
from such overpayment, and (vii)  with  respect  to  amounts  originally
withheld  from such overpayment pursuant to section one hundred seventy-
one-l of this article and paid to the city of New York, the  comptroller
shall collect a like amount from the city of New York.
  §  37.  Section 490 of the tax law, as added by chapter 90 of the laws
of 2014, is amended to read as follows:
  § 490. [Definitions] EXCISE TAX ON MEDICAL  CANNABIS.    1.  (a)  [All
definitions  of terms applicable to title five-A of article thirty-three
of the public health law shall apply to this article.] FOR  PURPOSES  OF
THIS  ARTICLE,  THE TERMS "MEDICAL CANNABIS," "REGISTERED ORGANIZATION,"
"CERTIFIED PATIENT," AND "DESIGNATED  CAREGIVER"  SHALL  HAVE  THE  SAME
DEFINITIONS AS IN SECTION THREE OF THE CANNABIS LAW.
  (b)  As used in this section, where not otherwise specifically defined
and unless a different meaning is clearly required "gross receipt" means
the amount received in or by reason of any sale, conditional  or  other-
wise, of medical [marihuana] CANNABIS or in or by reason of the furnish-
ing of medical [marihuana] CANNABIS from the sale of medical [marihuana]
CANNABIS provided by a registered organization to a certified patient or
designated caregiver.  Gross receipt is expressed in money, whether paid
in  cash,  credit or property of any kind or nature, and shall be deter-

A. 1617--A                         88

mined without any deduction therefrom on account  of  the  cost  of  the
service  sold  or the cost of materials, labor or services used or other
costs, interest or discount paid,  or  any  other  expenses  whatsoever.
"Amount received" for the purpose of the definition of gross receipt, as
the term gross receipt is used throughout this article, means the amount
charged for the provision of medical [marihuana] CANNABIS.
  2.  There  is  hereby imposed an excise tax on the gross receipts from
the sale of medical [marihuana] CANNABIS by a registered organization to
a certified patient or designated caregiver, to be paid  by  the  regis-
tered  organization,  at  the  rate of seven percent. The tax imposed by
this article shall be charged against and  be  paid  by  the  registered
organization and shall not be added as a separate charge or line item on
any sales slip, invoice, receipt or other statement or memorandum of the
price given to the retail customer.
  3.  The  commissioner  may  make,  adopt and amend rules, regulations,
procedures and forms necessary for the  proper  administration  of  this
article.
  4. Every registered organization that makes sales of medical [marihua-
na]  CANNABIS  subject  to  the tax imposed by this article shall, on or
before the twentieth date of each month, file with  the  commissioner  a
return  on  forms  to  be  prescribed  by  the commissioner, showing its
receipts from the retail sale of medical [marihuana] CANNABIS during the
preceding calendar month and the amount of tax due thereon. Such returns
shall contain such further information as the commissioner may  require.
Every  registered  organization  required  to  file  a return under this
section shall, at the time of filing such return, pay to the commission-
er the total amount of tax due on its retail sales of medical  [marihua-
na]  CANNABIS  for the period covered by such return. If a return is not
filed when due, the tax shall be due on the day on which the  return  is
required to be filed.
  5.  Whenever the commissioner shall determine that any moneys received
under the provisions of this article were paid in error,  he  may  cause
the  same  to  be refunded, with interest, in accordance with such rules
and regulations as he may prescribe, except that no  interest  shall  be
allowed  or  paid  if  the amount thereof would be less than one dollar.
Such interest shall be at the overpayment rate set by  the  commissioner
pursuant  to subdivision twenty-sixth of section one hundred seventy-one
of this chapter, or if no rate is set, at the rate of  six  percent  per
annum,  from  the  date when the tax, penalty or interest to be refunded
was paid to a date preceding the date of the refund check  by  not  more
than  thirty  days.  Provided,  however,  that  for the purposes of this
subdivision, any tax paid before the last day prescribed for its payment
shall be deemed to have been paid on such last day. Such moneys received
under the provisions of this article which the commissioner shall deter-
mine were paid in error, may be refunded out of funds in the custody  of
the  comptroller  to  the  credit  of such taxes provided an application
therefor is filed with the commissioner within two years from  the  time
the erroneous payment was made.
  6.  The provisions of article twenty-seven of this chapter shall apply
to the tax imposed by this article in the same manner and with the  same
force  and  effect  as if the language of such article had been incorpo-
rated in full into this section and had expressly referred  to  the  tax
imposed by this article, except to the extent that any provision of such
article  is  either  inconsistent with a provision of this article or is
not relevant to this article.

A. 1617--A                         89

  7. All taxes, interest and penalties  collected  or  received  by  the
commissioner  under  this  article  shall  be  deposited and disposed of
pursuant to the provisions of section one hundred seventy-one-a of  this
chapter,  provided that an amount equal to one hundred percent collected
under  this article less any amount determined by the commissioner to be
reserved by the comptroller for refunds or reimbursements shall be  paid
by  the  comptroller  to  the credit of the medical [marihuana] CANNABIS
trust fund established by section eighty-nine-h  of  the  state  finance
law.
  8. A registered organization that dispenses medical [marihuana] CANNA-
BIS  shall  provide  to  the department information on where the medical
[marihuana] CANNABIS was dispensed and  where  the  medical  [marihuana]
CANNABIS was manufactured. A registered organization that obtains [mari-
huana]  CANNABIS  from another registered organization shall obtain from
such registered organization information on where the medical  [marihua-
na] CANNABIS was manufactured.
  §  38.  Section 491 of the tax law, as added by chapter 90 of the laws
of 2014, subdivision 1 as amended by section 1 of part II of chapter  60
of the laws of 2016, is amended to read as follows:
  § 491. Returns to be secret. 1. Except in accordance with proper judi-
cial  order or as in this section or otherwise provided by law, it shall
be unlawful for the commissioner, any officer or employee of the depart-
ment, or any officer or person who, pursuant to this section, is permit-
ted to inspect any return or report or to whom a copy, an abstract or  a
portion of any return or report is furnished, or to whom any information
contained in any return or report is furnished, or any person engaged or
retained  by  such  department  on  an independent contract basis or any
person who in any manner may acquire knowledge  of  the  contents  of  a
return or report filed pursuant to this article to divulge or make known
in  any  manner  the  contents  or any other information relating to the
business of a distributor, owner or other person contained in any return
or report required under this article. The  officers  charged  with  the
custody  of such returns or reports shall not be required to produce any
of them or evidence of anything contained  in  them  in  any  action  or
proceeding  in  any  court,  except  on  behalf of the state, [the state
department of health] OFFICE OF CANNABIS MANAGEMENT, or the commissioner
in an action or proceeding under the provisions of this  chapter  or  on
behalf  of the state or the commissioner in any other action or proceed-
ing involving the collection of a tax due under this  chapter  to  which
the  state  or the commissioner is a party or a claimant or on behalf of
any party to any action or proceeding under the provisions of this arti-
cle, when the returns or the reports or  the  facts  shown  thereby  are
directly  involved  in  such  action  or  proceeding, or in an action or
proceeding relating to the regulation or taxation of medical [marihuana]
CANNABIS on behalf of officers  to  whom  information  shall  have  been
supplied as provided in subdivision two of this section, in any of which
events  the  court  may  require  the  production  of,  and may admit in
evidence so much of said returns or reports or of the facts shown there-
by as are pertinent to the action or proceeding  and  no  more.  Nothing
herein  shall  be  construed to prohibit the commissioner, in his or her
discretion, from allowing the inspection or delivery of a certified copy
of any return or report filed under this article or of  any  information
contained  in any such return or report by or to a duly authorized offi-
cer or employee of the [state department of health] OFFICE  OF  CANNABIS
MANAGEMENT;  or  by  or to the attorney general or other legal represen-
tatives of the state when an  action  shall  have  been  recommended  or

A. 1617--A                         90

commenced  pursuant  to this chapter in which such returns or reports or
the facts shown thereby are directly involved; or the inspection of  the
returns  or  reports  required  under this article by the comptroller or
duly designated officer or employee of the state department of audit and
control,  for  purposes  of  the  audit of a refund of any tax paid by a
registered organization or other  person  under  this  article;  nor  to
prohibit the delivery to a registered organization, or a duly authorized
representative  of such registered organization, a certified copy of any
return or report filed by such registered organization pursuant to  this
article,  nor to prohibit the publication of statistics so classified as
to prevent the identification of particular returns or reports  and  the
items  thereof. This section shall also not be construed to prohibit the
disclosure, for tax administration purposes,  to  the  division  of  the
budget  and  the  office of the state comptroller, of information aggre-
gated from the returns filed by all the registered organizations  making
sales  of, or manufacturing, medical [marihuana] CANNABIS in a specified
county, whether the number of such registered organizations  is  one  or
more.  Provided  further  that,  notwithstanding  the provisions of this
subdivision, the commissioner may, in his or her discretion, permit  the
proper  officer of any county entitled to receive an allocation, follow-
ing appropriation by the  legislature,  pursuant  to  this  article  and
section eighty-nine-h of the state finance law, or the authorized repre-
sentative  of such officer, to inspect any return filed under this arti-
cle, or may furnish to such officer or the officer's  authorized  repre-
sentative  an abstract of any such return or supply such officer or such
representative with information concerning an item contained in any such
return, or disclosed by any investigation of tax  liability  under  this
article.
  2.  The  commissioner,  in  his or her discretion and pursuant to such
rules and regulations as he or she may adopt, may  permit  [the  commis-
sioner  of  internal  revenue  of the United States, or] the appropriate
officers of any other state which regulates or taxes medical [marihuana]
CANNABIS, or the duly authorized representatives of  such  [commissioner
or of any such] officers, to inspect returns or reports made pursuant to
this  article,  or may furnish to such [commissioner or] other officers,
or duly authorized representatives, a copy of any such return or  report
or  an  abstract  of  the  information therein contained, or any portion
thereof, or may supply [such commissioner or] any such officers or  such
representatives  with  information  relating to the business of a regis-
tered organization making returns or reports hereunder. The commissioner
may refuse to supply information pursuant to this  subdivision  [to  the
commissioner  of  internal revenue of the United States or] to the offi-
cers of any other state if the statutes [of the United  States,  or]  of
the state represented by such officers, do not grant substantially simi-
lar privileges to the commissioner, but such refusal shall not be manda-
tory. Information shall not be supplied to [the commissioner of internal
revenue  of  the United States or] the appropriate officers of any other
state which regulates or taxes medical [marihuana] CANNABIS, or the duly
authorized representatives [of such commissioner  or]  of  any  of  such
officers,  unless  such [commissioner,] officer or other representatives
shall agree not to divulge or make known in any manner  the  information
so  supplied,  but  such officers may transmit such information to their
employees or legal representatives when necessary, who in turn shall  be
subject  to  the  same  restrictions  as  those hereby imposed upon such
[commissioner,] officer or other representatives.

A. 1617--A                         91

  3. (a) Any officer or employee of the state who willfully violates the
provisions of subdivision one or two of this section shall be  dismissed
from  office and be incapable of holding any public office in this state
for a period of five years thereafter.
  (b)  Cross-reference: For criminal penalties, see article thirty-seven
of this chapter.
  § 39. The tax law is amended by adding a new article 20-C to  read  as
follows:

                              ARTICLE 20-C
                   TAX ON ADULT-USE CANNABIS PRODUCTS
SECTION 492. DEFINITIONS.
        493. TAX ON CANNABIS.
        494. REGISTRATION AND RENEWAL.
        495. RETURNS AND PAYMENT OF TAX.
        496. RETURNS TO BE KEPT SECRET.
  §  492. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING DEFI-
NITIONS SHALL APPLY:
  (A) "CANNABIS" MEANS ALL PARTS OF  A  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. FOR PURPOSES
OF THIS ARTICLE, CANNABIS DOES NOT  INCLUDE  MEDICAL  CANNABIS  OR  HEMP
CANNABIS AS DEFINED IN SECTION THREE OF THE CANNABIS LAW.
  (B)  "CANNABIS FLOWER" MEANS THE FLOWER OF A PLANT OF THE GENUS CANNA-
BIS THAT HAS BEEN HARVESTED, DRIED, AND CURED, AND PRIOR TO ANY PROCESS-
ING WHEREBY THE  PLANT  MATERIAL  IS  TRANSFORMED  INTO  A  CONCENTRATE,
INCLUDING,  BUT  NOT  LIMITED TO, CONCENTRATED CANNABIS, OR AN EDIBLE OR
TOPICAL PRODUCT CONTAINING CANNABIS OR CONCENTRATED CANNABIS  AND  OTHER
INGREDIENTS. CANNABIS FLOWER EXCLUDES LEAVES AND STEM.
  (C)  "CANNABIS  TRIM" MEANS ALL PARTS OF A PLANT OF THE GENUS CANNABIS
OTHER THAN CANNABIS FLOWERS THAT HAVE BEEN HARVESTED, DRIED, AND  CURED,
AND  PRIOR  TO  ANY PROCESSING WHEREBY THE PLANT MATERIAL IS TRANSFORMED
INTO A CONCENTRATE, INCLUDING, BUT NOT LIMITED TO,  CONCENTRATED  CANNA-
BIS,  OR  AN  EDIBLE  OR  TOPICAL  PRODUCT CONTAINING CANNABIS AND OTHER
INGREDIENTS.
  (D) "CANNABIS PRODUCT" OR "ADULT USE CANNABIS" MEANS A CANNABIS  PROD-
UCT  AS  DEFINED  IN  SECTION THREE OF THE CANNABIS LAW. FOR PURPOSES OF
THIS ARTICLE, UNDER NO CIRCUMSTANCES SHALL  ADULT-USE  CANNABIS  PRODUCT
INCLUDE MEDICAL CANNABIS OR HEMP CANNABIS AS DEFINED IN SECTION THREE OF
THE CANNABIS LAW.
  (E)  "PERSON"  MEANS  EVERY INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY
COMPANY, SOCIETY, ASSOCIATION, JOINT STOCK COMPANY, CORPORATION, ESTATE,
RECEIVER, TRUSTEE, ASSIGNEE, REFEREE, AND ANY OTHER PERSON ACTING  IN  A
FIDUCIARY  OR  REPRESENTATIVE  CAPACITY, WHETHER APPOINTED BY A COURT OR
OTHERWISE, AND ANY COMBINATION OF THE FOREGOING.
  (F) "WHOLESALER" MEANS ANY PERSON THAT SELLS  OR  TRANSFERS  ADULT-USE
CANNABIS  PRODUCTS  TO  A RETAIL DISPENSARY LICENSED PURSUANT TO SECTION
SEVENTY-TWO OF THE CANNABIS LAW. WHERE THE CULTIVATOR  OR  PROCESSOR  IS
ALSO  THE  RETAIL  DISPENSARY, THE RETAIL DISPENSARY SHALL BE THE WHOLE-
SALER FOR PURPOSES OF THIS ARTICLE.
  (G) "CULTIVATION" HAS THE SAME MEANING AS DESCRIBED IN SUBDIVISION TWO
OF SECTION SIXTY-EIGHT OF THE CANNABIS LAW.
  (H) "RETAIL DISPENSARY" MEANS A DISPENSARY LICENSED TO SELL  ADULT-USE
CANNABIS PRODUCTS PURSUANT TO SECTION SEVENTY-TWO OF THE CANNABIS LAW.

A. 1617--A                         92

  (I)  "TRANSFER"  MEANS  TO  GRANT,  CONVEY,  HAND  OVER, ASSIGN, SELL,
EXCHANGE OR BARTER, IN ANY MANNER OR  BY  ANY  MEANS,  WITH  OR  WITHOUT
CONSIDERATION.
  (J)  "SALE"  MEANS ANY TRANSFER OF TITLE, POSSESSION OR BOTH, EXCHANGE
OR BARTER, RENTAL, LEASE OR LICENSE TO USE OR  CONSUME,  CONDITIONAL  OR
OTHERWISE,  IN ANY MANNER OR BY ANY MEANS WHATSOEVER FOR A CONSIDERATION
OR ANY AGREEMENT THEREFOR.
  (K) "PROCESSOR" HAS THE SAME MEANING AS DESCRIBED IN  SUBDIVISION  TWO
OF SECTION SIXTY-NINE OF THE CANNABIS LAW.
  §  493. TAX ON CANNABIS. (A) THERE IS HEREBY IMPOSED AND SHALL BE PAID
A TAX ON THE CULTIVATION OF CANNABIS FLOWER AND  CANNABIS  TRIM  AT  THE
RATE  OF  ONE  DOLLAR PER DRY-WEIGHT GRAM OF CANNABIS FLOWER AND TWENTY-
FIVE CENTS PER DRY-WEIGHT GRAM OF CANNABIS TRIM. WHERE THE WHOLESALER IS
NOT THE CULTIVATOR, SUCH TAX SHALL BE COLLECTED FROM THE  CULTIVATOR  BY
THE  WHOLESALER  AT  THE  TIME SUCH FLOWER OR TRIM IS TRANSFERRED TO THE
WHOLESALER. WHERE THE WHOLESALER IS THE CULTIVATOR, SUCH  TAX  SHALL  BE
PAID  BY THE WHOLESALER AND SHALL ACCRUE AT THE TIME OF SALE OR TRANSFER
TO A RETAIL DISPENSARY.  WHERE THE CULTIVATOR IS ALSO THE RETAIL DISPEN-
SARY, SUCH TAX SHALL ACCRUE AT THE  TIME  OF  THE  SALE  TO  THE  RETAIL
CUSTOMER.
  (B) IN ADDITION TO THE TAX IMPOSED BY SUBDIVISION (A) OF THIS SECTION,
THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A WHOLESALER TO
A  RETAIL  DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, TO BE PAID BY SUCH
WHOLESALER. WHERE THE WHOLESALER IS NOT THE RETAIL DISPENSARY, SUCH  TAX
SHALL  BE  AT THE RATE OF TWENTY PERCENT OF THE INVOICE PRICE CHARGED BY
THE WHOLESALER TO A RETAIL DISPENSARY, AND SHALL ACCRUE AT THE  TIME  OF
SUCH SALE. WHERE THE WHOLESALER IS THE RETAIL DISPENSARY, SUCH TAX SHALL
BE  AT  THE  RATE  OF  TWENTY PERCENT OF THE PRICE CHARGED TO THE RETAIL
CUSTOMER AND SHALL ACCRUE AT THE TIME OF SUCH SALE.
  (C) IN ADDITION TO THE TAXES IMPOSED BY SUBDIVISIONS (A)  AND  (B)  OF
THIS SECTION, THERE IS HEREBY IMPOSED A TAX ON THE SALE OR TRANSFER BY A
WHOLESALER  TO  A  RETAIL  DISPENSARY OF ADULT-USE CANNABIS PRODUCTS, IN
TRUST FOR AND ON ACCOUNT OF THE COUNTY IN WHICH THE RETAIL DISPENSARY IS
LOCATED. SUCH TAX SHALL BE PAID BY THE WHOLESALER AND  SHALL  ACCRUE  AT
THE  TIME  OF SUCH SALE.  WHERE THE WHOLESALER IS NOT THE RETAIL DISPEN-
SARY, SUCH TAX SHALL BE AT THE RATE OF TWO PERCENT OF THE INVOICE  PRICE
CHARGED  BY  THE WHOLESALER TO A RETAIL DISPENSARY. WHERE THE WHOLESALER
IS THE RETAIL DISPENSARY, SUCH TAX SHALL BE AT THE RATE OF  TWO  PERCENT
OF THE PRICE CHARGED TO THE RETAIL CUSTOMER.
  (D)  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, THE
TAXES IMPOSED BY ARTICLE TWENTY OF THIS CHAPTER SHALL NOT APPLY  TO  ANY
PRODUCT SUBJECT TO TAX UNDER THIS ARTICLE.
  §  494.  REGISTRATION AND RENEWAL. (A) EVERY WHOLESALER MUST FILE WITH
THE COMMISSIONER A PROPERLY COMPLETED APPLICATION FOR A  CERTIFICATE  OF
REGISTRATION  BEFORE  ENGAGING  IN  BUSINESS. IN ORDER TO APPLY FOR SUCH
CERTIFICATE OF REGISTRATION, SUCH PERSON MUST FIRST BE IN POSSESSION  OF
A  VALID  LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT. AN APPLICATION
FOR A CERTIFICATE OF REGISTRATION MUST BE SUBMITTED ELECTRONICALLY, ON A
FORM PRESCRIBED BY THE COMMISSIONER, AND MUST BE ACCOMPANIED BY  A  NON-
REFUNDABLE  APPLICATION  FEE  OF  SIX  HUNDRED DOLLARS. A CERTIFICATE OF
REGISTRATION SHALL NOT  BE  ASSIGNABLE  OR  TRANSFERABLE  AND  SHALL  BE
DESTROYED  IMMEDIATELY UPON SUCH PERSON CEASING TO DO BUSINESS AS SPECI-
FIED IN SUCH CERTIFICATE, OR IN  THE  EVENT  THAT  SUCH  BUSINESS  NEVER
COMMENCED.
  (B)  THE COMMISSIONER SHALL REFUSE TO ISSUE A CERTIFICATE OF REGISTRA-
TION TO ANY APPLICANT AND SHALL REVOKE THE CERTIFICATE  OF  REGISTRATION

A. 1617--A                         93

OF  ANY SUCH PERSON WHO DOES NOT POSSESS A VALID LICENSE FROM THE OFFICE
OF CANNABIS MANAGEMENT. THE COMMISSIONER MAY REFUSE TO ISSUE  A  CERTIF-
ICATE  OF  REGISTRATION TO ANY APPLICANT WHERE SUCH APPLICANT: (1) HAS A
PAST-DUE LIABILITY AS THAT TERM IS DEFINED IN SECTION ONE HUNDRED SEVEN-
TY-ONE-V  OF  THIS  CHAPTER;  (2)  HAS HAD A CERTIFICATE OF REGISTRATION
UNDER THIS ARTICLE, A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT, OR
ANY LICENSE OR REGISTRATION PROVIDED FOR IN THIS CHAPTER REVOKED  WITHIN
ONE YEAR FROM THE DATE ON WHICH SUCH APPLICATION WAS FILED; (3) HAS BEEN
CONVICTED  OF  A CRIME PROVIDED FOR IN THIS CHAPTER WITHIN ONE YEAR FROM
THE DATE ON WHICH SUCH APPLICATION WAS FILED OF THE CERTIFICATE'S  ISSU-
ANCE;  (4)  WILLFULLY  FAILS TO FILE A REPORT OR RETURN REQUIRED BY THIS
ARTICLE; (5) WILLFULLY FILES, CAUSES TO BE FILED, GIVES OR CAUSES TO  BE
GIVEN  A REPORT, RETURN, CERTIFICATE OR AFFIDAVIT REQUIRED BY THIS ARTI-
CLE WHICH IS FALSE; OR (6) WILLFULLY  FAILS  TO  COLLECT  OR  TRUTHFULLY
ACCOUNT FOR OR PAY OVER ANY TAX IMPOSED BY THIS ARTICLE.
  (C) A CERTIFICATE OF REGISTRATION SHALL BE VALID FOR THE PERIOD SPECI-
FIED  THEREON,  UNLESS EARLIER SUSPENDED OR REVOKED. UPON THE EXPIRATION
OF THE TERM STATED ON A CERTIFICATE OF  REGISTRATION,  SUCH  CERTIFICATE
SHALL BE NULL AND VOID.
  (D)  EVERY  HOLDER  OF  A  CERTIFICATE OF REGISTRATION MUST NOTIFY THE
COMMISSIONER OF CHANGES TO ANY OF THE INFORMATION STATED ON THE  CERTIF-
ICATE, OR OF CHANGES TO ANY INFORMATION CONTAINED IN THE APPLICATION FOR
THE  CERTIFICATE  OF  REGISTRATION. SUCH NOTIFICATION MUST BE MADE ON OR
BEFORE THE LAST DAY OF THE MONTH IN WHICH A CHANGE OCCURS  AND  MUST  BE
MADE ELECTRONICALLY ON A FORM PRESCRIBED BY THE COMMISSIONER.
  (E)  EVERY  HOLDER OF A CERTIFICATE OF REGISTRATION UNDER THIS ARTICLE
SHALL BE REQUIRED TO REAPPLY PRIOR  TO  SUCH  CERTIFICATE'S  EXPIRATION,
DURING  A  REAPPLICATION  PERIOD  ESTABLISHED  BY THE COMMISSIONER. SUCH
REAPPLICATION PERIOD SHALL NOT OCCUR  MORE  FREQUENTLY  THAN  EVERY  TWO
YEARS.  SUCH REAPPLICATION SHALL BE SUBJECT TO THE SAME REQUIREMENTS AND
CONDITIONS, INCLUDING GROUNDS FOR REFUSAL, AS  AN  INITIAL  APPLICATION,
INCLUDING THE PAYMENT OF THE APPLICATION FEE.
  (F)  PENALTIES. A PERSON TO WHOM ADULT-USE CANNABIS PRODUCTS HAVE BEEN
TRANSFERRED OR WHO SELLS ADULT-USE CANNABIS  PRODUCTS  WITHOUT  A  VALID
CERTIFICATE  OF REGISTRATION PURSUANT TO SUBDIVISION (A) OF THIS SECTION
SHALL BE SUBJECT TO A PENALTY OF FIVE HUNDRED DOLLARS FOR EACH MONTH  OR
PART  THEREOF  DURING  WHICH  SUCH PERSON CONTINUES TO POSSESS ADULT-USE
CANNABIS PRODUCTS THAT HAVE BEEN TRANSFERRED TO SUCH PERSON OR WHO SELLS
SUCH PRODUCTS AFTER THE EXPIRATION OF THE FIRST MONTH AFTER  WHICH  SUCH
PERSON  OPERATES  WITHOUT  A  VALID  CERTIFICATE OF REGISTRATION, NOT TO
EXCEED TEN THOUSAND DOLLARS IN THE AGGREGATE.
  § 495. RETURNS AND PAYMENT OF TAX. (A) 1. EVERY WHOLESALER  SHALL,  ON
OR  BEFORE  THE TWENTIETH DAY OF THE MONTH, FILE WITH THE COMMISSIONER A
RETURN ON FORMS TO BE PRESCRIBED BY THE COMMISSIONER, SHOWING THE  TOTAL
WEIGHT  OF  CANNABIS FLOWER AND CANNABIS TRIM SUBJECT TO TAX PURSUANT TO
SUBDIVISION (A) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE AND
THE TOTAL AMOUNT OF TAX DUE THEREON IN THE PRECEDING CALENDAR MONTH, AND
THE TOTAL AMOUNT OF TAX DUE UNDER  SUBDIVISIONS  (B)  AND  (C)  OF  SUCH
SECTION  ON ITS SALES TO A RETAIL DISPENSARY DURING THE PRECEDING CALEN-
DAR MONTH, ALONG WITH SUCH OTHER INFORMATION  AS  THE  COMMISSIONER  MAY
REQUIRE.  EVERY  PERSON  REQUIRED  TO  FILE  A RETURN UNDER THIS SECTION
SHALL, AT THE TIME OF FILING SUCH RETURN, PAY TO  THE  COMMISSIONER  THE
TOTAL  AMOUNT  OF  TAX  DUE  FOR THE PERIOD COVERED BY SUCH RETURN. IF A
RETURN IS NOT FILED WHEN DUE, THE TAX SHALL BE DUE ON THE DAY  ON  WHICH
THE RETURN IS REQUIRED TO BE FILED.

A. 1617--A                         94

  2.  THE  WHOLESALER  SHALL  MAINTAIN  SUCH RECORDS IN SUCH FORM AS THE
COMMISSIONER MAY REQUIRE REGARDING SUCH ITEMS AS: WHERE  THE  WHOLESALER
IS  NOT  THE  CULTIVATOR, THE WEIGHT OF THE CANNABIS FLOWER AND CANNABIS
TRIM TRANSFERRED TO IT BY A CULTIVATOR OR, WHERE THE WHOLESALER  IS  THE
CULTIVATOR,  THE  WEIGHT  OF  SUCH  FLOWER  AND TRIM PRODUCED BY IT; THE
GEOGRAPHIC LOCATION OF EVERY RETAIL DISPENSARY TO WHICH IT  SOLD  ADULT-
USE  CANNABIS  PRODUCTS; AND ANY OTHER RECORD OR INFORMATION REQUIRED BY
THE COMMISSIONER. THIS INFORMATION MUST BE KEPT BY  SUCH  PERSON  FOR  A
PERIOD OF THREE YEARS AFTER THE RETURN WAS FILED.
  (B) THE PROVISIONS OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER SHALL APPLY
TO  THE TAX IMPOSED BY THIS ARTICLE IN THE SAME MANNER AND WITH THE SAME
FORCE AND EFFECT AS IF THE LANGUAGE OF SUCH ARTICLE  HAD  BEEN  INCORPO-
RATED  IN  FULL  INTO THIS SECTION AND HAD EXPRESSLY REFERRED TO THE TAX
IMPOSED BY THIS ARTICLE, EXCEPT TO THE EXTENT THAT ANY PROVISION OF SUCH
ARTICLE IS EITHER INCONSISTENT WITH A PROVISION OF THIS  ARTICLE  OR  IS
NOT RELEVANT TO THIS ARTICLE.
  (C) 1. ALL TAXES, INTEREST, AND PENALTIES COLLECTED OR RECEIVED BY THE
COMMISSIONER  UNDER  THIS  ARTICLE  SHALL  BE  DEPOSITED AND DISPOSED OF
PURSUANT TO THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF  THIS
CHAPTER,  PROVIDED THAT AN AMOUNT EQUAL TO ONE HUNDRED PERCENT COLLECTED
UNDER THIS ARTICLE LESS ANY AMOUNT DETERMINED BY THE COMMISSIONER TO  BE
RESERVED  BY THE COMPTROLLER FOR REFUNDS OR REIMBURSEMENTS SHALL BE PAID
BY THE COMPTROLLER TO THE CREDIT OF THE  CANNABIS  REVENUE  FUND  ESTAB-
LISHED  BY SECTION NINETY-NINE-HH OF THE STATE FINANCE LAW. OF THE TOTAL
REVENUE COLLECTED OR RECEIVED UNDER THIS ARTICLE, THE COMPTROLLER  SHALL
RETAIN SUCH AMOUNT AS THE COMMISSIONER MAY DETERMINE TO BE NECESSARY FOR
REFUNDS.  THE COMMISSIONER IS AUTHORIZED AND DIRECTED TO DEDUCT FROM THE
REGISTRATION FEES UNDER SUBDIVISION (A) OF SECTION FOUR HUNDRED  NINETY-
FOUR  OF  THIS  ARTICLE,  BEFORE  DEPOSIT INTO THE CANNABIS REVENUE FUND
DESIGNATED BY THE COMPTROLLER, A REASONABLE AMOUNT NECESSARY TO EFFECTU-
ATE REFUNDS OF APPROPRIATIONS OF THE DEPARTMENT TO REIMBURSE THE DEPART-
MENT FOR THE COSTS INCURRED TO ADMINISTER, COLLECT, AND  DISTRIBUTE  THE
TAXES IMPOSED BY THIS ARTICLE.
  2.  NOTWITHSTANDING  THE  FOREGOING, THE COMMISSIONER SHALL CERTIFY TO
THE COMPTROLLER THE TOTAL AMOUNT OF TAX, PENALTY AND  INTEREST  RECEIVED
BY  HIM  OR  HER  ON  ACCOUNT  OF  THE TAX IMPOSED BY SUBDIVISION (C) OF
SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE IN TRUST  FOR  AND  ON
ACCOUNT  OF  EACH  COUNTY IN WHICH A RETAIL DISPENSARY IS LOCATED. ON OR
BEFORE THE TWELFTH DAY OF EACH MONTH, THE COMPTROLLER,  AFTER  RESERVING
SUCH  REFUND  FUND,  SHALL PAY TO THE APPROPRIATE FISCAL OFFICER OF EACH
SUCH COUNTY THE TAXES, PENALTIES AND INTEREST RECEIVED AND CERTIFIED  BY
THE COMMISSIONER FOR THE PRECEDING CALENDAR MONTH.
  § 496. RETURNS TO BE KEPT SECRET. (A) EXCEPT IN ACCORDANCE WITH PROPER
JUDICIAL  ORDER  OR  AS IN THIS SECTION OR OTHERWISE PROVIDED BY LAW, IT
SHALL BE UNLAWFUL FOR THE COMMISSIONER, ANY OFFICER OR EMPLOYEE  OF  THE
DEPARTMENT,  OR  ANY OFFICER OR PERSON WHO, PURSUANT TO THIS SECTION, IS
PERMITTED TO INSPECT ANY RETURN OR REPORT OR TO WHOM A COPY, AN ABSTRACT
OR A PORTION OF ANY RETURN OR REPORT IS FURNISHED, OR TO WHOM ANY INFOR-
MATION CONTAINED IN ANY RETURN OR REPORT IS FURNISHED, OR ANY PERSON WHO
IN ANY MANNER MAY ACQUIRE KNOWLEDGE OF  THE  CONTENTS  OF  A  RETURN  OR
REPORT  FILED  PURSUANT  TO THIS ARTICLE TO DIVULGE OR MAKE KNOWN IN ANY
MANNER THE CONTENT OR ANY OTHER INFORMATION RELATED TO THE  BUSINESS  OF
THE  WHOLESALER  CONTAINED  IN  ANY RETURN OR REPORT REQUIRED UNDER THIS
ARTICLE. THE OFFICERS CHARGED  WITH  THE  CUSTODY  OF  SUCH  RETURNS  OR
REPORTS  SHALL  NOT  BE  REQUIRED  TO PRODUCE ANY OF THEM OR EVIDENCE OF
ANYTHING CONTAINED IN THEM IN ANY ACTION OR  PROCEEDING  IN  ANY  COURT,

A. 1617--A                         95

EXCEPT ON BEHALF OF THE STATE, THE OFFICE OF CANNABIS MANAGEMENT, OR THE
COMMISSIONER  IN AN ACTION OR PROCEEDING INVOLVING THE COLLECTION OF TAX
DUE UNDER THIS CHAPTER TO WHICH THE STATE OR THE COMMISSIONER IS A PARTY
OR  A  CLAIMANT  OR  ON  BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING
UNDER THE PROVISIONS OF THIS ARTICLE, WHEN THE RETURNS OR THE REPORTS OR
THE FACTS SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEED-
ING, OR IN AN ACTION OR PROCEEDING RELATED TO THE REGULATION OR TAXATION
OF ADULT-USE CANNABIS PRODUCTS ON BEHALF OF OFFICERS TO WHOM INFORMATION
SHALL HAVE BEEN SUPPLIED AS PROVIDED IN THIS SECTION, IN  ANY  OF  WHICH
EVENTS  THE  COURTS  MAY  REQUIRE  THE  PRODUCTION  OF, AND MAY ADMIT IN
EVIDENCE SO MUCH OF SAID RETURNS OR REPORTS OR OF THE FACTS SHOWN THERE-
BY AS ARE PERTINENT TO THE ACTION OR PROCEEDING  AND  NO  MORE.  NOTHING
HEREIN  SHALL  BE  CONSTRUED TO PROHIBIT THE COMMISSIONER, IN HIS OR HER
DISCRETION, FROM ALLOWING THE INSPECTION OR DELIVERY OF A CERTIFIED COPY
OF ANY RETURN OR REPORT FILED UNDER THIS ARTICLE OR OF  ANY  INFORMATION
CONTAINED  IN ANY SUCH RETURN OR REPORT BY OR TO A DULY AUTHORIZED OFFI-
CER OR EMPLOYEE OF THE OFFICE OF CANNABIS MANAGEMENT OR  BY  OR  TO  THE
ATTORNEY  GENERAL  OR  OTHER  LEGAL REPRESENTATIVES OF THE STATE WHEN AN
ACTION SHALL HAVE BEEN RECOMMENDED OR COMMENCED PURSUANT TO THIS CHAPTER
IN WHICH SUCH RETURNS OR REPORTS OR THE FACTS SHOWN THEREBY ARE DIRECTLY
INVOLVED; OR THE INSPECTION OF THE RETURNS  OR  REPORTS  REQUIRED  UNDER
THIS  ARTICLE  BY THE COMPTROLLER OR DULY DESIGNATED OFFICER OR EMPLOYEE
OF THE STATE DEPARTMENT OF AUDIT AND CONTROL, FOR PURPOSES OF THE  AUDIT
OF A REFUND OF ANY TAX PAID BY THE WHOLESALER UNDER THIS ARTICLE; NOR TO
PROHIBIT THE DELIVERY TO SUCH PERSON OR A DULY AUTHORIZED REPRESENTATIVE
OF  SUCH  PERSON, A CERTIFIED COPY OF ANY RETURN OR REPORT FILED BY SUCH
PERSON PURSUANT TO THIS ARTICLE, NOR  TO  PROHIBIT  THE  PUBLICATION  OF
STATISTICS  SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION OF PARTICULAR
RETURNS OR REPORTS AND THE ITEMS THEREOF. THIS SECTION SHALL ALSO NOT BE
CONSTRUED TO PROHIBIT THE DISCLOSURE, FOR TAX  ADMINISTRATION  PURPOSES,
TO  THE  DIVISION OF THE BUDGET AND THE OFFICE OF THE STATE COMPTROLLER,
OF INFORMATION AGGREGATED FROM THE  RETURNS  FILED  BY  ALL  WHOLESALERS
PURCHASING AND SELLING SUCH PRODUCTS IN THE STATE, WHETHER THE NUMBER OF
SUCH  PERSONS IS ONE OR MORE. PROVIDED FURTHER THAT, NOTWITHSTANDING THE
PROVISIONS OF THIS SUBDIVISION, THE  COMMISSIONER  MAY  IN  HIS  OR  HER
DISCRETION,  PERMIT THE PROPER OFFICER OF ANY COUNTY ENTITLED TO RECEIVE
ANY DISTRIBUTION OF THE MONIES RECEIVED ON ACCOUNT OF THE TAX IMPOSED BY
SUBDIVISION (C) OF SECTION FOUR HUNDRED NINETY-THREE OF THIS ARTICLE, OR
THE AUTHORIZED REPRESENTATIVE OF SUCH OFFICER,  TO  INSPECT  ANY  RETURN
FILED  UNDER  THIS  ARTICLE, OR MAY FURNISH TO SUCH OFFICER OR THE OFFI-
CER'S AUTHORIZED REPRESENTATIVE AN ABSTRACT OF ANY SUCH RETURN OR SUPPLY
SUCH OFFICER OR  REPRESENTATIVE  WITH  INFORMATION  CONCERNING  AN  ITEM
CONTAINED  IN  ANY SUCH RETURN, OR DISCLOSED BY ANY INVESTIGATION OF TAX
LIABILITY UNDER THIS ARTICLE.
  (B) THE COMMISSIONER, IN HIS OR HER DISCRETION, MAY PERMIT THE  APPRO-
PRIATE  OFFICERS  OF ANY OTHER STATE THAT REGULATES OR TAXES CANNABIS OR
THE DULY AUTHORIZED REPRESENTATIVES OF SUCH COMMISSIONER OR OF ANY  SUCH
OFFICERS,  TO  INSPECT RETURNS OR REPORTS MADE PURSUANT TO THIS ARTICLE,
OR MAY FURNISH TO THE COMMISSIONER OR OTHER OFFICER, OR DULY  AUTHORIZED
REPRESENTATIVES,  A  COPY OF ANY SUCH RETURN OR REPORT OR AN ABSTRACT OF
THE INFORMATION THEREIN CONTAINED, OR ANY PORTION THEREOF, OR MAY SUPPLY
SUCH COMMISSIONER OR ANY SUCH  OFFICERS  OR  SUCH  REPRESENTATIVES  WITH
INFORMATION  RELATING  TO THE BUSINESS OF A WHOLESALER MAKING RETURNS OR
REPORTS HEREUNDER SOLELY FOR PURPOSES OF TAX ADMINISTRATION. THE COMMIS-
SIONER MAY REFUSE TO SUPPLY INFORMATION PURSUANT TO THIS SUBDIVISION  TO
THE OFFICERS OF ANY OTHER STATE IF THE STATUTES OF THE STATE REPRESENTED

A. 1617--A                         96

BY  SUCH  OFFICERS  DO NOT GRANT SUBSTANTIALLY SIMILAR PRIVILEGES TO THE
COMMISSIONER, BUT SUCH REFUSAL SHALL NOT BE MANDATORY. INFORMATION SHALL
NOT BE SUPPLIED TO THE APPROPRIATE OFFICERS OF ANY STATE THAT  REGULATES
OR  TAXES  CANNABIS,  OR  THE  DULY  AUTHORIZED  REPRESENTATIVES OF SUCH
COMMISSIONER OR OF ANY SUCH OFFICERS, UNLESS SUCH COMMISSIONER, OFFICER,
OR OTHER REPRESENTATIVES SHALL AGREE NOT TO DIVULGE OR MAKE KNOWN IN ANY
MANNER THE INFORMATION SO SUPPLIED, BUT SUCH OFFICERS MAY TRANSMIT  SUCH
INFORMATION  TO THEIR EMPLOYEES OR LEGAL REPRESENTATIVES WHEN NECESSARY,
WHO IN TURN SHALL BE SUBJECT TO THE SAME RESTRICTIONS  AS  THOSE  HEREBY
IMPOSED UPON SUCH COMMISSIONER, OFFICER OR OTHER REPRESENTATIVES.
  (C) 1. ANY OFFICER OR EMPLOYEE OF THE STATE WHO WILLFULLY VIOLATES THE
PROVISIONS  OF SUBDIVISION (A) OR (B) OF THIS SECTION SHALL BE DISMISSED
FROM OFFICE AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN  THE  STATE
FOR A PERIOD OF FIVE YEARS THEREAFTER.
  2. FOR CRIMINAL PENALTIES, SEE ARTICLE THIRTY-SEVEN OF THIS CHAPTER.
  §  40.  Subdivision  (a)  of section 1115 of the tax law is amended by
adding a new paragraph 3-b to read as follows:
  (3-B) ADULT-USE CANNABIS PRODUCTS AS DEFINED BY  ARTICLE  TWENTY-C  OF
THIS CHAPTER.
  § 41. Section 12 of chapter 90 of the laws of 2014 amending the public
health  law,  the  tax  law, the state finance law, the general business
law, the penal law and the criminal procedure law  relating  to  medical
use of marihuana, is amended to read as follows:
  §  12. This act shall take effect immediately [and]; PROVIDED, HOWEVER
THAT SECTIONS ONE, THREE, FIVE, SIX, SEVEN-A, EIGHT, NINE, TEN AND ELEV-
EN OF THIS ACT shall expire and be deemed  repealed  seven  years  after
such  date; provided that the amendments to section 171-a of the tax law
made by section seven of this act shall take effect on the same date and
in the same manner as section 54 of part A of chapter 59 of the laws  of
2014  takes  effect  AND  SHALL  NOT  EXPIRE AND BE DEEMED REPEALED; and
provided, further, that the  amendments  to  subdivision  5  of  section
410.91  of the criminal procedure law made by section eleven of this act
shall not affect the expiration and repeal of  such  section  and  shall
expire and be deemed repealed therewith.
  §  42.  The  office  of  cannabis management, in consultation with the
division of the budget, the department  of  taxation  and  finance,  the
department of health, office of alcoholism and substance abuse services,
office of mental health, New York state police and the division of crim-
inal  justice  services,  shall conduct a  study of the effectiveness of
this act. Such study shall examine all aspects of  this  act,  including
economic  and fiscal impacts, the impact on the public health and safety
of New York residents and the progress made in achieving social  justice
goals and toward eliminating the illegal market for cannabis products in
New  York. The office shall make recommendations regarding the appropri-
ate level of taxation of adult-use cannabis, as well as changes, if any,
necessary to improve and protect the public health  and  safety  of  New
Yorkers.  Such  study  shall  be conducted two years after the effective
date of this act and shall be presented to the  governor,  the  majority
leader  of  the  senate  and  the speaker of the assembly, no later than
October 1, 2022.
  § 43. Section 102 of the alcoholic beverage control law is amended  by
adding a new subdivision 8 to read as follows:
  8. NO ALCOHOLIC BEVERAGE RETAIL LICENSEE SHALL SELL CANNABIS, NOR HAVE
OR  POSSESS  A  LICENSE OR PERMIT TO SELL CANNABIS, ON THE SAME PREMISES
WHERE ALCOHOLIC BEVERAGES ARE SOLD.

A. 1617--A                         97

  § 44. Subdivisions 1, 4, 5, 6, 7 and  13  of  section  12-102  of  the
general  obligations  law,  as added by chapter 406 of the laws of 2000,
are amended to read as follows:
  1.  "Illegal  drug"  means any controlled substance [or marijuana] the
possession of which is an offense under the public  health  law  or  the
penal law.
  4.  "Grade  one  violation"  means  possession of one-quarter ounce or
more, but less than four ounces, or distribution of less than one  ounce
of  an illegal drug [other than marijuana, or possession of one pound or
twenty-five plants or more, but less than four pounds or  fifty  plants,
or distribution of less than one pound of marijuana].
  5.  "Grade two violation" means possession of four ounces or more, but
less than eight ounces, or distribution of one ounce or more,  but  less
than two ounces, of an illegal drug [other than marijuana, or possession
of  four pounds or more or fifty plants or distribution of more than one
pound but less than ten pounds of marijuana].
  6. "Grade three violation" means possession of eight ounces  or  more,
but less than sixteen ounces, or distribution of two ounces or more, but
less  than  four  ounces,  of a specified illegal drug [or possession of
eight pounds or more or seventy-five  plants  or  more,  but  less  than
sixteen  pounds or one hundred plants, or distribution of more than five
pounds but less than ten pounds of marijuana].
  7. "Grade four violation" means possession of sixteen ounces  or  more
or  distribution  of four ounces or more of a specified illegal drug [or
possession of sixteen pounds or more or one hundred plants  or  more  or
distribution of ten pounds or more of marijuana].
  13. "Drug trafficker" means a person convicted of a class A or class B
felony  controlled  substance  [or marijuana offense] who, in connection
with the  criminal  conduct  for  which  he  or  she  stands  convicted,
possessed, distributed, sold or conspired to sell a controlled substance
[or  marijuana] which, by virtue of its quantity, the person's prominent
role in the enterprise responsible for the sale or distribution of  such
controlled  substance  and  other circumstances related to such criminal
conduct  indicate  that  such  person's  criminal  possession,  sale  or
conspiracy to sell such substance was not an isolated occurrence and was
part  of  an ongoing pattern of criminal activity from which such person
derived substantial income or resources and in which such person  played
a leadership role.
  §  45.  Paragraph  (g)  of  subdivision 1 of section 488 of the social
services law, as added by section 1 of part B of chapter 501 of the laws
of 2012, is amended to read as follows:
  (g) "Unlawful use or administration of a controlled substance,"  which
shall  mean any administration by a custodian to a service recipient of:
a controlled substance as defined by article thirty-three of the  public
health law, without a prescription; or other medication not approved for
any  use  by  the  federal  food and drug administration, EXCEPT FOR THE
ADMINISTRATION OF  MEDICAL  CANNABIS  WHEN  SUCH  ADMINISTRATION  IS  IN
ACCORDANCE  WITH  ARTICLE  THREE OF THE CANNABIS LAW AND ANY REGULATIONS
PROMULGATED THEREUNDER AS WELL AS THE RULES, REGULATIONS,  POLICIES,  OR
PROCEDURES  OF  THE  STATE  OVERSIGHT  AGENCY OR AGENCIES GOVERNING SUCH
CUSTODIANS. It also  shall  include  a  custodian  unlawfully  using  or
distributing  a  controlled substance as defined by article thirty-three
of the public health law, at the workplace or while on duty.
  § 46. Paragraphs (e) and (f) of subdivision 1 of section  490  of  the
social  services  law, as added by section 1 of part B of chapter 501 of

A. 1617--A                         98

the laws of 2012, are amended and a new paragraph (g) is added  to  read
as follows:
  (e)  information  regarding  individual reportable incidents, incident
patterns and trends, and  patterns  and  trends  in  the  reporting  and
response  to  reportable incidents is shared, consistent with applicable
law, with the justice center, in the form and  manner  required  by  the
justice  center  and,  for  facilities or provider agencies that are not
state operated, with the applicable state oversight agency  which  shall
provide such information to the justice center; [and]
  (f)  incident  review  committees  are established; provided, however,
that the regulations may authorize an exemption from  this  requirement,
when  appropriate,  based on the size of the facility or provider agency
or other relevant factors. Such committees shall be composed of  members
of  the  governing  body  of  the  facility or provider agency and other
persons identified by the director of the facility or  provider  agency,
including  some members of the following: direct support staff, licensed
health care practitioners, service  recipients  and  representatives  of
family,  consumer and other advocacy organizations, but not the director
of the facility or provider agency. Such committee shall meet  regularly
to:  (i)  review the timeliness, thoroughness and appropriateness of the
facility or provider agency's responses to  reportable  incidents;  (ii)
recommend  additional  opportunities  for improvement to the director of
the facility or provider agency, if appropriate; (iii)  review  incident
trends  and  patterns  concerning  reportable  incidents;  and (iv) make
recommendations to the director of the facility or  provider  agency  to
assist  in reducing reportable incidents. Members of the committee shall
be trained in confidentiality laws and  regulations,  and  shall  comply
with section seventy-four of the public officers law[.]; AND
  (G)  SAFE  STORAGE,  ADMINISTRATION, AND DIVERSION PREVENTION POLICIES
REGARDING CONTROLLED SUBSTANCES AND MEDICAL CANNABIS.
  § 47. Subdivision 1 of section 505 of the agriculture and markets law,
as added by chapter 524 of the laws of  2014,  is  amended  to  read  as
follows:
  1.  "Industrial  hemp" means the plant Cannabis sativa L. and any part
of  such  plant,  INCLUDING  THE  SEEDS  THEREOF  AND  ALL  DERIVATIVES,
EXTRACTS,  CANNABINOIDS,  ISOMERS,  ACIDS,  SALTS, AND SALTS OF ISOMERS,
whether growing or not,  with  a  delta-9  tetrahydrocannabinol  concen-
tration of not more than 0.3 percent on a dry weight basis.
  §  48.  Section  506 of the agriculture and markets law, as amended by
section 1 of part OO of chapter 58 of the laws of 2017,  is  amended  to
read as follows:
  §  506.  Growth,  sale, distribution, transportation and processing of
industrial hemp and products derived from such hemp permitted. [Notwith-
standing any provision of law to the contrary, industrial] 1. INDUSTRIAL
hemp and products derived from such hemp are agricultural products which
may be grown, produced [and],  possessed  [in  the  state,  and],  sold,
distributed,  transported  [or] AND/OR processed [either] in [or out of]
state [as part of agricultural pilot programs pursuant to  authorization
under  federal  law  and  the  provisions  of  this article] PURSUANT TO
AUTHORIZATION UNDER FEDERAL LAW, THE PROVISIONS OF THIS  ARTICLE  AND/OR
THE CANNABIS LAW.  [Notwithstanding any provision of law to the contrary
restricting  the growing or cultivating, sale, distribution, transporta-
tion or processing of industrial hemp and  products  derived  from  such
hemp, and subject to authorization under federal law, the]
  2. THE commissioner may authorize the growing or cultivating of indus-
trial  hemp  as  part  of  agricultural  pilot programs conducted by the

A. 1617--A                         99

department and/or an institution of higher education to study the growth
and cultivation, sale, distribution, transportation  and  processing  of
such  hemp  and  products derived from such hemp provided that the sites
and  programs used for growing or cultivating industrial hemp are certi-
fied by, and registered with, the department.
  3. IN ADDITION TO THE  DEPARTMENT'S  LICENSING  AUTHORITY  HEREINAFTER
PROVIDED  IN  THIS  ARTICLE,  THE  OFFICE  OF  CANNABIS MANAGEMENT SHALL
LICENSE AND REGULATE THE GROWTH, EXTRACTION, PROCESSING AND/OR  MANUFAC-
TURING  OF HEMP FOR DERIVATIVES, EXTRACTS, CANNABINOIDS, ISOMERS, ACIDS,
SALTS AND SALTS OR ISOMERS AND/OR HEMP  PRODUCTS  FOR  HUMAN  OR  ANIMAL
CONSUMPTION  OR  USE (EXCEPT FOR THOSE FOOD AND/OR FOOD INGREDIENTS THAT
ARE GENERALLY RECOGNIZED AS SAFE).
  4. NOTHING IN THIS SECTION SHALL LIMIT THE JURISDICTION OF THE DEPART-
MENT UNDER ANY OTHER ARTICLE OF THIS CHAPTER.
  § 49. Section 507 of the agriculture and markets law is REPEALED and a
new section 507 is added to read as follows:
  § 507. LICENSING; FEES. 1. NO PERSON SHALL: (A) GROW  INDUSTRIAL  HEMP
IN  THE  STATE  AND/OR  SELL  OR DISTRIBUTE INDUSTRIAL HEMP GROWN IN THE
STATE UNLESS LICENSED BIENNIALLY BY THE COMMISSIONER OR (B) GROW,  PROC-
ESS AND/OR PRODUCE INDUSTRIAL HEMP AND PRODUCTS DERIVED FROM HEMP IN THE
STATE  OR  SELL  OR  DISTRIBUTE UNLESS AUTHORIZED BY THE COMMISSIONER AS
PART OF AN AGRICULTURAL RESEARCH PILOT PROGRAM  ESTABLISHED  UNDER  THIS
ARTICLE.
  2.  APPLICATION  FOR  A  LICENSE TO GROW INDUSTRIAL HEMP SHALL BE MADE
UPON A FORM PRESCRIBED BY THE COMMISSIONER, ACCOMPANIED BY A NON-REFUND-
ABLE APPLICATION FEE OF FIVE HUNDRED DOLLARS.
  3. THE APPLICANT SHALL FURNISH EVIDENCE OF HIS OR HER GOOD  CHARACTER,
EXPERIENCE  AND  COMPETENCY, THAT THE APPLICANT HAS ADEQUATE FACILITIES,
EQUIPMENT, PROCESS CONTROLS, TESTING CAPABILITY  AND  SECURITY  TO  GROW
HEMP.
  4. GROWERS WHO INTEND TO CULTIVATE HEMP FOR CANNABINOIDS SHALL ALSO BE
REQUIRED TO OBTAIN A LICENSE FROM THE OFFICE OF CANNABIS MANAGEMENT.
  5.  A  RENEWAL  APPLICATION  SHALL BE SUBMITTED TO THE COMMISSIONER AT
LEAST THIRTY DAYS PRIOR TO THE COMMENCEMENT OF THE NEXT LICENSE PERIOD.
  § 50. Section 508 of the agriculture and markets law is REPEALED and a
new section 508 is added to read as follows:
  § 508. COMPLIANCE ACTION PLAN. IF THE COMMISSIONER  DETERMINES,  AFTER
NOTICE  AND  AN OPPORTUNITY FOR HEARING, THAT A LICENSEE HAS NEGLIGENTLY
VIOLATED A PROVISION OF THIS ARTICLE, THAT LICENSEE SHALL BE REQUIRED TO
COMPLY WITH A CORRECTIVE ACTION PLAN ESTABLISHED BY THE COMMISSIONER  TO
CORRECT THE VIOLATION BY A REASONABLE DATE AND TO PERIODICALLY REPORT TO
THE  COMMISSIONER  WITH  RESPECT  TO THE LICENSEE'S COMPLIANCE WITH THIS
ARTICLE FOR A PERIOD OF NO LESS THAN THE NEXT TWO CALENDAR YEARS FOLLOW-
ING THE COMMENCEMENT DATE OF THE COMPLIANCE ACTION PLAN. THE  PROVISIONS
OF  THIS SECTION SHALL NOT BE APPLICABLE TO RESEARCH PARTNERS CONDUCTING
HEMP RESEARCH PURSUANT TO A RESEARCH PARTNER  AGREEMENT,  THE  TERMS  OF
WHICH SHALL CONTROL.
  § 51. Section 509 of the agriculture and markets law is REPEALED and a
new section 509 is added to read as follows:
  §  509.  GRANTING,  SUSPENDING OR REVOKING LICENSES.  THE COMMISSIONER
MAY DECLINE TO GRANT A NEW LICENSE, MAY DECLINE TO RENEW A LICENSE,  MAY
SUSPEND  OR REVOKE A LICENSE ALREADY GRANTED AFTER DUE NOTICE AND OPPOR-
TUNITY FOR HEARING WHENEVER HE OR SHE FINDS THAT:
  (1) ANY STATEMENT CONTAINED IN AN  APPLICATION  FOR  AN  APPLICANT  OR
LICENSEE IS OR WAS FALSE OR MISLEADING;

A. 1617--A                         100

  (2)  THE  APPLICANT  OR  LICENSEE  DOES  NOT  HAVE GOOD CHARACTER, THE
REQUIRED EXPERIENCE AND/OR COMPETENCY, ADEQUATE  FACILITIES,  EQUIPMENT,
PROCESS  CONTROLS, TESTING CAPABILITY AND/OR SECURITY TO PRODUCE HEMP OR
PRODUCTS DERIVED FROM HEMP;
  (3)  THE  APPLICANT  OR  LICENSEE HAS FAILED OR REFUSED TO PRODUCE ANY
RECORDS OR PROVIDE ANY INFORMATION DEMANDED BY THE COMMISSIONER  REASON-
ABLY RELATED TO THE ADMINISTRATION AND ENFORCEMENT OF THIS ARTICLE; OR
  (4)  THE  APPLICANT  OR  LICENSEE,  OR ANY OFFICER, DIRECTOR, PARTNER,
HOLDER OF TEN PERCENT OF THE VOTING STOCK, OR ANY OTHER PERSON  EXERCIS-
ING  ANY POSITION OF MANAGEMENT OR CONTROL HAS FAILED TO COMPLY WITH ANY
OF THE PROVISIONS OF THIS ARTICLE OR RULES AND  REGULATIONS  PROMULGATED
PURSUANT THERETO.
  § 52. Section 510 of the agriculture and markets law is REPEALED and a
new section 510 is added to read as follows:
  § 510. REGULATIONS.  THE COMMISSIONER MAY DEVELOP REGULATIONS CONSIST-
ENT WITH THE PROVISIONS OF THIS ARTICLE FOR THE GROWING AND CULTIVATION,
SALE,  DISTRIBUTION,  AND TRANSPORTATION OF INDUSTRIAL HEMP GROWN IN THE
STATE, INCLUDING:
  (A) THE AUTHORIZATION OR LICENSING OF ANY PERSON WHO MAY:  ACQUIRE  OR
POSSESS  HEMP  PLANTS  OR  SEEDS;  GROW OR CULTIVATE HEMP PLANTS; AND/OR
SELL, PURCHASE, DISTRIBUTE, OR TRANSPORT SUCH PLANTS,  PLANT  PARTS,  OR
SEEDS;
  (B)  MAINTAINING  RELEVANT  INFORMATION REGARDING LAND ON WHICH INDUS-
TRIAL HEMP IS PRODUCED WITHIN THE STATE, INCLUDING THE LEGAL DESCRIPTION
OF THE LAND, FOR A PERIOD OF NOT LESS THAN THREE CALENDAR YEARS;
  (C) THE PROCEDURE FOR TESTING OF INDUSTRIAL HEMP PRODUCED IN THE STATE
FOR DELTA-9 TETRAHYDROCANNABINOL LEVELS, USING POST  DECARBOXYLATION  OR
OTHER SIMILARLY RELIABLE METHODS;
  (D)  THE PROCEDURE FOR EFFECTIVE DISPOSAL OF INDUSTRIAL HEMP PLANTS OR
PRODUCTS DERIVED FROM HEMP THAT ARE PRODUCED IN VIOLATION OF THIS  ARTI-
CLE;
  (E)  A PROCEDURE FOR CONDUCTING AT LEAST A RANDOM SAMPLE OF INDUSTRIAL
HEMP PRODUCERS TO VERIFY THAT HEMP IS NOT PRODUCED IN VIOLATION OF  THIS
ARTICLE;
  (F) ANY REQUIRED SECURITY MEASURES; AND
  (G) SUCH OTHER AND FURTHER REGULATION AS THE COMMISSIONER DEEMS APPRO-
PRIATE OR NECESSARY.
  § 53. Section 511 of the agriculture and markets law is REPEALED and a
new section 511 is added to read as follows:
  §  511.  PROHIBITIONS.    EXCEPT AS AUTHORIZED BY STATE LAW, AND REGU-
LATIONS PROMULGATED THEREUNDER,  THE  GROWTH,  CULTIVATION,  PROCESSING,
SALE, AND/OR DISTRIBUTION OF INDUSTRIAL HEMP IS PROHIBITED.
  § 54. Section 512 of the agriculture and markets law is REPEALED and a
new section 512 is added to read as follows:
  §  512.  INDUSTRIAL  HEMP  DATA COLLECTION AND BEST FARMING PRACTICES.
THE COMMISSIONER SHALL HAVE THE POWER TO COLLECT AND  PUBLISH  DATA  AND
RESEARCH  CONCERNING,  AMONG  OTHER  THINGS,  THE  GROWTH,  CULTIVATION,
PRODUCTION AND  PROCESSING  METHODS  OF  INDUSTRIAL  HEMP  AND  PRODUCTS
DERIVED  FROM  INDUSTRIAL  HEMP  AND  WORK  WITH THE CORNELL COOPERATIVE
EXTENSION TO PROMOTE BEST FARMING PRACTICES FOR  INDUSTRIAL  HEMP  WHICH
ARE  COMPATIBLE  WITH STATE WATER QUALITY AND OTHER ENVIRONMENTAL OBJEC-
TIVES.
  § 55. Sections 513 and 514 of the  agriculture  and  markets  law  are
REPEALED and a new section 513 is added to read as follows:
  §  513. ACCESS TO CRIMINAL HISTORY INFORMATION THROUGH THE DIVISION OF
CRIMINAL JUSTICE SERVICES.   IN CONNECTION WITH  THE  ADMINISTRATION  OF

A. 1617--A                         101

THIS  ARTICLE,  THE  COMMISSIONER  IS AUTHORIZED TO REQUEST, RECEIVE AND
REVIEW CRIMINAL HISTORY INFORMATION THROUGH  THE  DIVISION  OF  CRIMINAL
JUSTICE SERVICES (DIVISION) WITH RESPECT TO ANY PERSON SEEKING A LICENSE
OR  AUTHORIZATION  TO UNDERTAKE A HEMP PILOT PROJECT. AT THE COMMISSION-
ER'S REQUEST, EACH RESEARCHER, PRINCIPAL AND/OR OFFICER OF THE APPLICANT
SHALL SUBMIT TO THE DEPARTMENT HIS OR HER FINGERPRINTS IN SUCH FORM  AND
IN SUCH MANNER AS SPECIFIED BY THE DIVISION, FOR THE PURPOSE OF CONDUCT-
ING  A CRIMINAL HISTORY SEARCH AND RETURNING A REPORT THEREON IN ACCORD-
ANCE WITH THE PROCEDURES AND REQUIREMENTS ESTABLISHED  BY  THE  DIVISION
PURSUANT  TO THE PROVISIONS OF ARTICLE THIRTY-FIVE OF THE EXECUTIVE LAW,
WHICH SHALL INCLUDE THE PAYMENT OF THE PRESCRIBED  PROCESSING  FEES  FOR
THE  COST  OF  THE  DIVISION'S  FULL  SEARCH AND RETAIN PROCEDURES AND A
NATIONAL CRIMINAL HISTORY RECORD CHECK. THE COMMISSIONER, OR HIS OR  HER
DESIGNEE,  SHALL  SUBMIT SUCH FINGERPRINTS AND THE PROCESSING FEE TO THE
DIVISION.  THE DIVISION SHALL FORWARD TO THE COMMISSIONER A REPORT  WITH
RESPECT  TO  THE  APPLICANT'S  PREVIOUS  CRIMINAL  HISTORY, IF ANY, OR A
STATEMENT THAT THE APPLICANT HAS NO PREVIOUS CRIMINAL HISTORY  ACCORDING
TO ITS FILES. FINGERPRINTS SUBMITTED TO THE DIVISION OF CRIMINAL JUSTICE
SERVICES  PURSUANT  TO  THIS  SUBDIVISION  MAY  ALSO BE SUBMITTED TO THE
FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL  HISTORY  RECORD
CHECK.  IF ADDITIONAL COPIES OF FINGERPRINTS ARE REQUIRED, THE APPLICANT
SHALL FURNISH THEM UPON REQUEST.
  § 56. Sections 179.00, 179.05, 179.10, 179.11 and 179.15 of the  penal
law,  as added by chapter 90 of the laws of 2014, are amended to read as
follows:
§ 179.00 Criminal  diversion  of  medical  [marihuana]  CANNABIS;  defi-
           nitions.
  The following definitions are applicable to this article:
  1.  "Medical  [marihuana] CANNABIS" means medical [marihuana] CANNABIS
as defined in [subdivision eight of section thirty-three  hundred  sixty
of the public health law] SECTION THREE OF THE CANNABIS LAW.
  2.  "Certification" means a certification, made under section [thirty-
three hundred sixty-one of the public health law] THIRTY OF THE CANNABIS
LAW.
§ 179.05 Criminal diversion of  medical  [marihuana]  CANNABIS;  limita-
           tions.
  The provisions of this article shall not apply to:
  1.  a  practitioner  authorized  to issue a certification who acted in
good faith in the lawful course of his or her profession; or
  2. a registered organization as that term is defined  in  [subdivision
nine  of  section  thirty-three  hundred sixty of the public health law]
SECTION THIRTY-FOUR OF THE CANNABIS LAW who acted in good faith  in  the
lawful course of the practice of pharmacy; or
  3.  a  person  who acted in good faith seeking treatment for A medical
condition or assisting another person to obtain treatment for a  medical
condition.
§ 179.10 Criminal diversion of medical [marihuana] CANNABIS in the first
           degree.
  A person is guilty of criminal diversion of medical [marihuana] CANNA-
BIS  in  the first degree when he or she is a practitioner, as that term
is defined in [subdivision twelve of section thirty-three hundred  sixty
of  the public health law] SECTION THREE OF THE CANNABIS LAW, who issues
a certification with knowledge of reasonable grounds to  know  that  (i)
the  recipient  has  no medical need for it, or (ii) it is for a purpose
other than to treat a serious condition as defined in [subdivision seven

A. 1617--A                         102

of section thirty-three hundred sixty of the public health law]  SECTION
THREE OF THE CANNABIS LAW.
  Criminal diversion of medical [marihuana] CANNABIS in the first degree
is a class E felony.
§ 179.11 Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the
           second degree.
  A person is guilty of criminal diversion of medical [marihuana] CANNA-
BIS in the second degree when he or  she  sells,  trades,  delivers,  or
otherwise  provides  medical  [marihuana] CANNABIS to another with know-
ledge or reasonable grounds to know that the recipient is not registered
under [title five-A of article thirty-three of the  public  health  law]
ARTICLE THREE OF THE CANNABIS LAW.
  Criminal  diversion  of  medical  [marihuana]  CANNABIS  in the second
degree is a class B misdemeanor.
§ 179.15 Criminal retention of medical [marihuana] CANNABIS.
  A person is guilty of criminal retention of medical [marihuana] CANNA-
BIS when, being a certified patient or designated  caregiver,  as  those
terms  are  defined  in  [subdivisions three and five of section thirty-
three hundred sixty of the  public  health  law,  respectively]  SECTION
THREE  OF  THE  CANNABIS  LAW,  he  or she knowingly obtains, possesses,
stores or maintains an amount of [marihuana] CANNABIS in excess  of  the
amount he or she is authorized to possess under the provisions of [title
five-A  of  article thirty-three of the public health law] ARTICLE THREE
OF THE CANNABIS LAW.
  Criminal retention of medical [marihuana] CANNABIS is a class A misde-
meanor.
  § 57. Section 220.78 of the penal law, as added by chapter 154 of  the
laws of 2011, is amended to read as follows:
§ 220.78 Witness or victim of drug or alcohol overdose.
  1.  A  person who, in good faith, seeks health care for someone who is
experiencing a drug  or  alcohol  overdose  or  other  life  threatening
medical  emergency  shall  not be charged or prosecuted for a controlled
substance offense under THIS article [two hundred twenty] or a [marihua-
na] CANNABIS offense under article two hundred  [twenty-one]  TWENTY-TWO
of this title, other than an offense involving sale for consideration or
other  benefit or gain, or charged or prosecuted for possession of alco-
hol by a person under age twenty-one years under section sixty-five-c of
the alcoholic beverage control law, or for possession of drug  parapher-
nalia  under  article  thirty-nine  of  the  general  business law, with
respect to any controlled substance, [marihuana]  CANNABIS,  alcohol  or
paraphernalia that was obtained as a result of such seeking or receiving
of health care.
  2.  A  person  who is experiencing a drug or alcohol overdose or other
life threatening medical emergency and, in good faith, seeks health care
for himself or herself or is the subject of such a  good  faith  request
for  health  care,  shall  not be charged or prosecuted for a controlled
substance offense under this article or a [marihuana]  CANNABIS  offense
under  article  two hundred [twenty-one] TWENTY-TWO of this title, other
than an offense involving sale for consideration  or  other  benefit  or
gain,  or  charged  or  prosecuted for possession of alcohol by a person
under age twenty-one years under section sixty-five-c of  the  alcoholic
beverage  control  law,  or  for  possession of drug paraphernalia under
article thirty-nine of the general business law,  with  respect  to  any
substance,  [marihuana]  CANNABIS,  alcohol  or  paraphernalia  that was
obtained as a result of such seeking or receiving of health care.

A. 1617--A                         103

  3. Definitions. As used in this section the following terms shall have
the following meanings:
  (a)  "Drug or alcohol overdose" or "overdose" means an acute condition
including, but not limited to, physical illness, coma,  mania,  hysteria
or  death,  which  is  the  result of consumption or use of a controlled
substance or alcohol and relates to an adverse reaction to or the  quan-
tity  of  the  controlled substance or alcohol or a substance with which
the controlled substance  or  alcohol  was  combined;  provided  that  a
patient's  condition shall be deemed to be a drug or alcohol overdose if
a prudent layperson, possessing an average  knowledge  of  medicine  and
health, could reasonably believe that the condition is in fact a drug or
alcohol overdose and (except as to death) requires health care.
  (b) "Health care" means the professional services provided to a person
experiencing  a  drug  or alcohol overdose by a health care professional
licensed, registered or certified under title eight of the education law
or article thirty of the public health law who, acting within his or her
lawful scope of practice, may provide diagnosis, treatment or  emergency
services for a person experiencing a drug or alcohol overdose.
  4.  It  shall  be an affirmative defense to a criminal sale controlled
substance offense under this article or a criminal sale  of  [marihuana]
CANNABIS  offense  under  article two hundred [twenty-one] TWENTY-TWO of
this title, not covered by subdivision one or two of this section,  with
respect  to  any  controlled substance or [marihuana] CANNABIS which was
obtained as a result of such seeking or receiving of health care, that:
  (a) the defendant, in good faith, seeks health care for someone or for
him or herself who is experiencing a drug or alcohol overdose  or  other
life threatening medical emergency; and
  (b)  the  defendant  has  no  prior  conviction  for the commission or
attempted commission of a class A-I, A-II or B felony under  this  arti-
cle.
  5. Nothing in this section shall be construed to bar the admissibility
of  any evidence in connection with the investigation and prosecution of
a crime with regard to another  defendant  who  does  not  independently
qualify  for  the bar to prosecution or for the affirmative defense; nor
with regard to other crimes committed by a person who  otherwise  quali-
fies under this section; nor shall anything in this section be construed
to  bar any seizure pursuant to law, including but not limited to pursu-
ant to section thirty-three hundred eighty-seven of  the  public  health
law.
  6.  The  bar  to  prosecution described in subdivisions one and two of
this section shall not apply to the prosecution of a  class  A-I  felony
under this article, and the affirmative defense described in subdivision
four  of  this section shall not apply to the prosecution of a class A-I
or A-II felony under this article.
  § 58. Subdivision 1 of section 260.20 of the penal law, as amended  by
chapter 362 of the laws of 1992, is amended as follows:
  1.  He knowingly permits a child less than eighteen years old to enter
or remain in or upon a place, premises  or  establishment  where  sexual
activity as defined by article one hundred thirty, two hundred thirty or
two  hundred  sixty-three  of  this [chapter] PART or activity involving
controlled substances as defined by article two hundred twenty  of  this
[chapter  or involving marihuana as defined by article two hundred twen-
ty-one of this chapter] PART is maintained or conducted, and he knows or
has reason to know that such activity is being maintained or  conducted;
or

A. 1617--A                         104

  § 59. Section 89-h of the state finance law, as added by chapter 90 of
the laws of 2014, is amended to read as follows:
  §  89-h.  Medical  [marihuana] CANNABIS trust fund. 1. There is hereby
established in the joint  custody  of  the  state  comptroller  and  the
commissioner  of  taxation and finance a special fund to be known as the
"medical [marihuana] CANNABIS trust fund."
  2. The medical [marihuana] CANNABIS trust fund shall  consist  of  all
moneys  required  to  be  deposited  in the medical [marihuana] CANNABIS
trust fund pursuant to the provisions of section four hundred ninety  of
the tax law.
  3.  The moneys in the medical [marihuana] CANNABIS trust fund shall be
kept separate and shall not be commingled with any other moneys  in  the
custody  of the commissioner of taxation and finance and the state comp-
troller.
  4. The moneys of the medical [marihuana] CANNABIS trust fund,  follow-
ing  appropriation by the legislature, shall be allocated upon a certif-
icate of approval of availability by  the  director  of  the  budget  as
follows:   (a) Twenty-two and five-tenths percent of the monies shall be
transferred to the counties in New  York  state  in  which  the  medical
[marihuana] CANNABIS was manufactured and allocated in proportion to the
gross  sales  originating from medical [marihuana] CANNABIS manufactured
in each such county; (b)  twenty-two  and  five-tenths  percent  of  the
moneys  shall  be transferred to the counties in New York state in which
the medical [marihuana] CANNABIS was dispensed and allocated in  propor-
tion  to the gross sales occurring in each such county; (c) five percent
of the monies shall be transferred  to  the  office  of  alcoholism  and
substance  abuse  services,  which shall use that revenue for additional
drug abuse prevention, counseling and treatment services; and  (d)  five
percent  of  the revenue received by the department shall be transferred
to the division of criminal  justice  services,  which  shall  use  that
revenue  for  a  program  of discretionary grants to state and local law
enforcement agencies that demonstrate a need relating to  [title  five-A
of  article  thirty-three of the public health law] ARTICLE THREE OF THE
CANNABIS LAW; said grants could be used for personnel costs of state and
local law enforcement agencies. For purposes of  this  subdivision,  the
city of New York shall be deemed to be a county.
  §  60.  The  state finance law is amended by adding three new sections
99-hh, 99-ii and 99-jj to read as follows:
  § 99-HH. NEW YORK STATE CANNABIS REVENUE  FUND.  1.  THERE  IS  HEREBY
ESTABLISHED  IN  THE  JOINT  CUSTODY  OF  THE  STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN  AS  THE
"NEW YORK STATE CANNABIS REVENUE FUND".
  2.  SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPARTMENT
OF TAXATION AND FINANCE, PURSUANT TO THE  PROVISIONS  OF  ARTICLE  EIGH-
TEEN-A OF THE TAX LAW AND ALL OTHER MONEYS APPROPRIATED THERETO FROM ANY
OTHER FUND OR SOURCE PURSUANT TO LAW.  NOTHING CONTAINED IN THIS SECTION
SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE
PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING THEM INTO
THE FUND ACCORDING TO LAW.
  3.  THE  MONEYS  IN  SUCH  FUND  SHALL  BE  EXPENDED FOR THE FOLLOWING
PURPOSES:
  (A) REASONABLE COSTS  INCURRED  BY  THE  DEPARTMENT  OF  TAXATION  AND
FINANCE FOR ADMINISTERING AND COLLECTING THE TAXES IMPOSED BY THIS PART;
PROVIDED,  HOWEVER,  SUCH  COSTS  SHALL  NOT  EXCEED FOUR PERCENT OF TAX
REVENUES RECEIVED.

A. 1617--A                         105

  (B) REASONABLE COSTS INCURRED BY THE OFFICE OF CANNABIS MANAGEMENT FOR
IMPLEMENTING, ADMINISTERING, AND ENFORCING THE MARIHUANA REGULATION  AND
TAXATION  ACT  TO  THE EXTENT THOSE COSTS ARE NOT REIMBURSED PURSUANT TO
THE CANNABIS LAW. THIS PARAGRAPH SHALL REMAIN OPERATIVE THROUGH THE  TWO
THOUSAND TWENTY-FOUR--TWO THOUSAND TWENTY-FIVE FISCAL YEAR.
  (C)  BEGINNING  WITH THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWENTY-
TWO FISCAL YEAR AND CONTINUING  THROUGH  THE  TWO  THOUSAND  THIRTY--TWO
THOUSAND  THIRTY-ONE  FISCAL  YEAR,  THE  COMMISSIONER  OF  TAXATION AND
FINANCE SHALL ANNUALLY DISBURSE THE FOLLOWING SUMS FOR THE  PURPOSES  OF
DATA COLLECTION AND REPORTING:
  (I)  SEVEN  HUNDRED  FIFTY  THOUSAND DOLLARS TO THE OFFICE OF CANNABIS
MANAGEMENT POLICY TO TRACK AND REPORT DATA RELATED TO THE  LICENSING  OF
CANNABIS  BUSINESSES,  INCLUDING THE GEOGRAPHIC LOCATION, STRUCTURE, AND
FUNCTION OF LICENSED CANNABIS BUSINESSES, AND DEMOGRAPHIC DATA,  INCLUD-
ING  RACE,  ETHNICITY,  AND  GENDER,  OF  LICENSE HOLDERS. THE OFFICE OF
CANNABIS MANAGEMENT SHALL PUBLISH REPORTS ON ITS FINDINGS  ANNUALLY  AND
SHALL MAKE THE REPORTS AVAILABLE TO THE PUBLIC.
  (II)  SEVEN HUNDRED FIFTY THOUSAND DOLLARS TO THE DEPARTMENT OF CRIMI-
NAL JUSTICE SERVICES TO TRACK AND REPORT DATA  RELATED  TO  ANY  INFRAC-
TIONS,  VIOLATIONS,  OR CRIMINAL CONVICTIONS THAT OCCUR UNDER ANY OF THE
REMAINING  CANNABIS  STATUTES.    THE  DEPARTMENT  OF  CRIMINAL  JUSTICE
SERVICES  SHALL  PUBLISH REPORTS ON ITS FINDINGS ANNUALLY AND SHALL MAKE
THE REPORTS AVAILABLE TO THE PUBLIC.
  (III) ONE MILLION DOLLARS TO THE  STATE  UNIVERSITY  OF  NEW  YORK  TO
RESEARCH  AND  EVALUATE  THE  IMPLEMENTATION AND EFFECT OF THE MARIHUANA
REGULATION AND TAXATION ACT.  NO MORE THAN FOUR PERCENT OF THESE  MONIES
MAY  BE  USED FOR EXPENSES RELATED TO ADMINISTRATIVE COSTS OF CONDUCTING
SUCH RESEARCH, AND TO,  IF  APPROPRIATE,  MAKE  RECOMMENDATIONS  TO  THE
LEGISLATURE  AND GOVERNOR REGARDING POSSIBLE AMENDMENTS TO THE MARIHUANA
REGULATION AND TAXATION ACT. THE RECIPIENTS OF THESE FUNDS SHALL PUBLISH
REPORTS ON THEIR FINDINGS AT A MINIMUM OF EVERY TWO YEARS AND SHALL MAKE
THE REPORTS AVAILABLE TO THE PUBLIC. THE  RESEARCH  FUNDED  PURSUANT  TO
THIS SUBDIVISION SHALL INCLUDE BUT NOT NECESSARILY BE LIMITED TO:
  (A)  THE  IMPACTS  ON PUBLIC HEALTH, INCLUDING HEALTH COSTS ASSOCIATED
WITH CANNABIS USE, AS WELL AS WHETHER CANNABIS USE IS ASSOCIATED WITH AN
INCREASE OR DECREASE IN USE OF ALCOHOL OR OTHER DRUGS;
  (B) THE IMPACT OF TREATMENT FOR CANNABIS USE DISORDER AND  THE  EFFEC-
TIVENESS OF DIFFERENT TREATMENT PROGRAMS;
  (C)  PUBLIC  SAFETY ISSUES RELATED TO CANNABIS USE, INCLUDING STUDYING
THE EFFECTIVENESS OF THE PACKAGING AND LABELING REQUIREMENTS AND  ADVER-
TISING  AND  MARKETING  RESTRICTIONS  CONTAINED IN THE ACT AT PREVENTING
UNDERAGE ACCESS TO AND USE OF CANNABIS AND CANNABIS PRODUCTS, AND STUDY-
ING THE HEALTH-RELATED EFFECTS AMONG USERS OF VARYING POTENCY LEVELS  OF
CANNABIS AND CANNABIS PRODUCTS;
  (D)  CANNABIS  USE  RATES, MALADAPTIVE USE RATES FOR ADULTS AND YOUTH,
AND DIAGNOSIS RATES OF CANNABIS-RELATED SUBSTANCE USE DISORDERS;
  (E) CANNABIS MARKET PRICES, ILLICIT MARKET PRICES, TAX STRUCTURES  AND
RATES,  INCLUDING  AN  EVALUATION  OF  HOW TO BEST TAX CANNABIS BASED ON
POTENCY, AND THE STRUCTURE AND FUNCTION OF LICENSED CANNABIS BUSINESSES;
  (F) WHETHER ADDITIONAL PROTECTIONS  ARE  NEEDED  TO  PREVENT  UNLAWFUL
MONOPOLIES  OR  ANTI-COMPETITIVE BEHAVIOR FROM OCCURRING IN THE CANNABIS
INDUSTRY AND, IF SO, RECOMMENDATIONS AS TO THE MOST  EFFECTIVE  MEASURES
FOR PREVENTING SUCH BEHAVIOR;
  (G)  THE ECONOMIC IMPACTS IN THE PRIVATE AND PUBLIC SECTORS, INCLUDING
BUT NOT NECESSARILY LIMITED TO, JOB CREATION, WORKPLACE  SAFETY,  REVEN-
UES,  TAXES  GENERATED FOR STATE AND LOCAL BUDGETS, AND CRIMINAL JUSTICE

A. 1617--A                         106

IMPACTS, INCLUDING, BUT NOT  NECESSARILY  LIMITED  TO,  IMPACTS  ON  LAW
ENFORCEMENT  AND  PUBLIC  RESOURCES, SHORT AND LONG TERM CONSEQUENCES OF
INVOLVEMENT IN THE CRIMINAL JUSTICE SYSTEM, AND STATE AND LOCAL  GOVERN-
MENT AGENCY ADMINISTRATIVE COSTS AND REVENUE;
  (H)  WHETHER  THE  REGULATORY  AGENCIES  TASKED  WITH IMPLEMENTING AND
ENFORCING THE  MARIHUANA  REGULATION  AND  TAXATION  ACT  ARE  DOING  SO
CONSISTENT  WITH THE PURPOSES OF THE ACT, AND WHETHER DIFFERENT AGENCIES
MIGHT DO SO MORE EFFECTIVELY; AND
  (I) ANY ENVIRONMENTAL ISSUES RELATED TO CANNABIS  PRODUCTION  AND  THE
CRIMINAL PROHIBITION OF CANNABIS PRODUCTION.
  (D)  ONE MILLION DOLLARS ANNUALLY, FOR A PERIOD OF THREE YEARS, TO THE
STATE POLICE TO EXPAND AND ENHANCE THE DRUG RECOGNITION EXPERT  TRAINING
PROGRAM  AND  TECHNOLOGIES  UTILIZED  IN THE PROCESS OF MAINTAINING ROAD
SAFETY.
  4. AFTER THE DISPERSAL OF MONEYS PURSUANT TO SUBDIVISION THREE OF THIS
SECTION, THE REMAINING MONEYS IN THE FUND  DEPOSITED  DURING  THE  PRIOR
FISCAL YEAR SHALL BE DISBURSED INTO THE STATE LOTTERY FUND AND TWO ADDI-
TIONAL  SUB-FUNDS  CREATED WITHIN THE CANNABIS REVENUE FUND KNOWN AS THE
DRUG TREATMENT AND PUBLIC EDUCATION FUND AND THE COMMUNITY GRANTS  REIN-
VESTMENT FUND, AS FOLLOWS:
  (A)  TWENTY-FIVE  PERCENT SHALL BE DEPOSITED IN THE STATE LOTTERY FUND
ESTABLISHED BY SECTION NINETY-TWO-C OF THIS ARTICLE; PROVIDED THAT  SUCH
MONEYS SHALL BE DISTRIBUTED TO THE DEPARTMENT OF EDUCATION IN ACCORDANCE
WITH  SUBDIVISIONS  TWO AND FOUR OF SECTION NINETY-TWO-C OF THIS ARTICLE
AND SHALL NOT BE UTILIZED FOR THE PURPOSES OF SUBDIVISION THREE OF  SUCH
SECTION.  MONIES  ALLOCATED  BY  THIS ARTICLE MAY ENHANCE, BUT SHALL NOT
SUPPLANT, EXISTING DEDICATED FUNDS TO THE DEPARTMENT OF EDUCATION;
  (B) TWENTY-FIVE PERCENT SHALL BE DEPOSITED IN THE DRUG  TREATMENT  AND
PUBLIC  EDUCATION  FUND  ESTABLISHED  BY  SECTION NINETY-NINE-II OF THIS
ARTICLE; AND
  (C) FIFTY PERCENT SHALL BE DEPOSITED IN THE COMMUNITY GRANTS REINVEST-
MENT FUND ESTABLISHED BY SECTION NINETY-NINE-JJ OF THIS ARTICLE.
  5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
OF  TAXATION AND FINANCE SHALL PROVIDE A WRITTEN REPORT TO THE TEMPORARY
PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEMBLY, CHAIR  OF  THE  SENATE
FINANCE  COMMITTEE,  CHAIR OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE
STATE COMPTROLLER AND THE PUBLIC.  SUCH  REPORT  SHALL  DETAIL  HOW  THE
MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR, AND
SHALL INCLUDE:
  (A)  THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD PROCESS
USED FOR SUCH DISBURSEMENTS;
  (B) RECIPIENTS OF AWARDS FROM THE FUND;
  (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
YEAR.
  6.  MONEYS SHALL BE PAYABLE DIRECTLY FROM THE CANNABIS REVENUE FUND TO
THE DEPARTMENT.
  § 99-II. NEW YORK STATE DRUG TREATMENT AND PUBLIC EDUCATION  FUND.  1.
THERE  IS  HEREBY  ESTABLISHED  IN  THE JOINT CUSTODY OF THE STATE COMP-
TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL  FUND  TO
BE KNOWN AS THE "NEW YORK STATE DRUG TREATMENT PUBLIC EDUCATION FUND".
  2.  SUCH  FUND  SHALL  CONSIST  OF  REVENUES  RECEIVED PURSUANT TO THE
PROVISIONS OF SECTION NINETY-NINE-HH  OF  THIS  ARTICLE  AND  ALL  OTHER

A. 1617--A                         107

MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
DEFINED  IN  THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO
LAW.
  3. THE MONEYS IN SUCH FUND SHALL BE EXPENDED TO  THE  COMMISSIONER  OF
THE  OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE AND DISBURSED IN CONSULTA-
TION WITH THE COMMISSIONER OF HEALTH FOR THE FOLLOWING PURPOSES:
  (A) TO DEVELOP AND IMPLEMENT A YOUTH-FOCUSED PUBLIC  HEALTH  EDUCATION
AND PREVENTION CAMPAIGN, INCLUDING SCHOOL-BASED PREVENTION, EARLY INTER-
VENTION,  AND  HEALTH  CARE  SERVICES AND PROGRAMS TO REDUCE THE RISK OF
CANNABIS AND OTHER SUBSTANCE USE BY SCHOOL-AGED CHILDREN;
  (B) TO DEVELOP  AND  IMPLEMENT  A  STATEWIDE  PUBLIC  HEALTH  CAMPAIGN
FOCUSED  ON  THE  HEALTH EFFECTS OF CANNABIS AND LEGAL USE, INCLUDING AN
ONGOING EDUCATION AND PREVENTION  CAMPAIGN  THAT  EDUCATES  THE  GENERAL
PUBLIC,  INCLUDING PARENTS, CONSUMERS AND RETAILERS, ON THE LEGAL USE OF
CANNABIS, THE IMPORTANCE OF PREVENTING YOUTH ACCESS, THE  IMPORTANCE  OF
SAFE STORAGE AND PREVENTING SECONDHAND CANNABIS SMOKE EXPOSURE, INFORMA-
TION  FOR  PREGNANT  OR  BREASTFEEDING WOMEN, AND THE OVERCONSUMPTION OF
EDIBLES;
  (C) TO PROVIDE SUBSTANCE USE DISORDER TREATMENT PROGRAMS FOR YOUTH AND
ADULTS, WITH AN EMPHASIS ON PROGRAMS  THAT  ARE  CULTURALLY  AND  GENDER
COMPETENT,  TRAUMA-INFORMED,  EVIDENCE-BASED  AND PROVIDE A CONTINUUM OF
CARE THAT INCLUDES SCREENING AND ASSESSMENT (SUBSTANCE USE  DISORDER  AS
WELL  AS  MENTAL  HEALTH),  EARLY INTERVENTION, ACTIVE TREATMENT, FAMILY
INVOLVEMENT, CASE MANAGEMENT, OVERDOSE PREVENTION, PREVENTION OF  COMMU-
NICABLE  DISEASES  RELATED  TO  SUBSTANCE  USE,  RELAPSE  MANAGEMENT FOR
SUBSTANCE USE AND OTHER CO-OCCURRING BEHAVIORAL HEALTH DISORDERS,  VOCA-
TIONAL  SERVICES,  LITERACY  SERVICES, PARENTING CLASSES, FAMILY THERAPY
AND COUNSELING  SERVICES,  MEDICATION-ASSISTED  TREATMENTS,  PSYCHIATRIC
MEDICATION AND PSYCHOTHERAPY; AND
  (D)  TO  EVALUATE  THE PROGRAMS BEING FUNDED TO DETERMINE THEIR EFFEC-
TIVENESS.
  4. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL PROVIDE A
WRITTEN  REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE
ASSEMBLY, CHAIR OF THE SENATE FINANCE COMMITTEE, CHAIR OF  THE  ASSEMBLY
WAYS  AND  MEANS  COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON ALCOHOLISM
AND DRUG ABUSE, CHAIR OF THE ASSEMBLY ALCOHOLISM AND DRUG ABUSE  COMMIT-
TEE,  THE STATE COMPTROLLER AND THE PUBLIC. SUCH REPORT SHALL DETAIL HOW
THE MONEYS OF THE FUND WERE UTILIZED DURING THE PRECEDING CALENDAR YEAR,
AND SHALL INCLUDE:
  (A) THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD  PROCESS
USED FOR SUCH DISBURSEMENTS;
  (B) RECIPIENTS OF AWARDS FROM THE FUND;
  (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
YEAR.
  5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
OF EDUCATION.
  § 99-JJ. NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND.  1.  THERE
IS  HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND

A. 1617--A                         108

THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE  KNOWN  AS
THE "NEW YORK STATE COMMUNITY GRANTS REINVESTMENT FUND".
  2.  SUCH  FUND  SHALL CONSIST OF ALL REVENUES RECEIVED PURSUANT TO THE
PROVISIONS OF SECTION NINETY-NINE-HH  OF  THIS  ARTICLE  AND  ALL  OTHER
MONEYS  APPROPRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO
LAW. NOTHING CONTAINED IN THIS SECTION  SHALL  PREVENT  THE  STATE  FROM
RECEIVING  GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS
DEFINED IN THIS SECTION AND DEPOSITING THEM INTO THE FUND  ACCORDING  TO
LAW.
  3.  THE FUND SHALL BE GOVERNED AND ADMINISTERED BY AN EXECUTIVE STEER-
ING COMMITTEE OF THIRTEEN MEMBERS ESTABLISHED BY THE OFFICE OF  CHILDREN
AND  FAMILY  SERVICES  AND INCLUDING ADDITIONAL REPRESENTATIVES FROM THE
LABOR DEPARTMENT, AND THE HEALTH DEPARTMENT APPOINTED  BY  THE  GOVERNOR
AND  A REPRESENTATIVE OF THE EDUCATION DEPARTMENT APPOINTED BY THE BOARD
OF REGENTS. IN ADDITION, THE MAJORITY AND MINORITY LEADERS OF THE SENATE
AND ASSEMBLY SHALL EACH APPOINT ONE MEMBER TO  THE  STEERING  COMMITTEE,
THE COMPTROLLER SHALL APPOINT THREE ADDITIONAL MEMBERS, AND THE ATTORNEY
GENERAL SHALL APPOINT TWO ADDITIONAL MEMBERS FROM RELEVANT LOCAL GOVERN-
MENT  ENTITIES AND COMMUNITY-BASED ORGANIZATIONS. EVERY EFFORT SHOULD BE
MADE TO ENSURE A BALANCED AND DIVERSE COMMITTEE, WHICH SHALL HAVE EXPER-
TISE IN JOB PLACEMENT, HOMELESSNESS AND HOUSING, BEHAVIORAL  HEALTH  AND
SUBSTANCE USE DISORDER TREATMENT, AND EFFECTIVE REHABILITATIVE TREATMENT
FOR ADULTS AND JUVENILES, AND SHALL INCLUDE REPRESENTATIVES OF ORGANIZA-
TIONS  SERVING COMMUNITIES IMPACTED BY PAST FEDERAL AND STATE DRUG POLI-
CIES.
  4. THE MONEYS IN SUCH FUND SHALL BE EXPENDED BY THE EXECUTIVE STEERING
COMMITTEE TO QUALIFIED COMMUNITY-BASED NONPROFIT ORGANIZATIONS  FOR  THE
PURPOSE  OF  REINVESTING  IN  COMMUNITIES DISPROPORTIONATELY AFFECTED BY
PAST FEDERAL AND STATE DRUG POLICIES. THE GRANTS FROM THIS PROGRAM SHALL
BE USED TO SUPPORT JOB PLACEMENT, JOB SKILLS SERVICES, ADULT  EDUCATION,
MENTAL  HEALTH TREATMENT, SUBSTANCE USE DISORDER TREATMENT, SYSTEM NAVI-
GATION SERVICES, LEGAL SERVICES TO  ADDRESS  BARRIERS  TO  REENTRY,  AND
LINKAGES  TO  MEDICAL CARE, WOMEN'S HEALTH SERVICES AND OTHER COMMUNITY-
BASED SUPPORTIVE SERVICES.
  5. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE  COMMISSIONER
OF  THE  OFFICE  OF CHILDREN AND FAMILY SERVICES SHALL PROVIDE A WRITTEN
REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE  ASSEM-
BLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON CHILDREN AND FAMI-
LIES, CHAIR OF THE ASSEMBLY CHILDREN AND FAMILIES  COMMITTEE,  CHAIR  OF
THE  SENATE  COMMITTEE  ON LABOR, CHAIR OF THE ASSEMBLY LABOR COMMITTEE,
CHAIR OF THE SENATE COMMITTEE ON HEALTH, CHAIR OF  THE  ASSEMBLY  HEALTH
COMMITTEE,  CHAIR  OF  THE  SENATE  COMMITTEE ON EDUCATION, CHAIR OF THE
ASSEMBLY EDUCATION COMMITTEE, THE STATE COMPTROLLER AND THE PUBLIC. SUCH
REPORT SHALL DETAIL HOW THE MONIES OF THE FUND WERE UTILIZED DURING  THE
PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:
  (A)  THE AMOUNT OF MONEY DISPERSED FROM THE FUND AND THE AWARD PROCESS
USED FOR SUCH DISBURSEMENTS;
  (B) RECIPIENTS OF AWARDS FROM THE FUND;
  (C) THE AMOUNT AWARDED TO EACH RECIPIENT OF AN AWARD FROM THE FUND;
  (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
  (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
ING FISCAL YEARS, ALONG WITH THE ACTUAL RESULTS FROM  THE  PRIOR  FISCAL
YEAR.

A. 1617--A                         109

  6.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
OF EDUCATION.
  §  61.  This act shall take effect immediately; provided, however that
if section 3 of part XX of chapter 59 of the laws of 2019 shall not have
taken effect on or before such date then section thirty-five of this act
shall take effect on the same date and in the same manner as such  chap-
ter  of  the laws of 2019 takes effect; provided, further, that sections
thirty-nine and forty of this act shall take effect April 1,  2020,  and
shall  apply  on and after such date: (a) to the cultivation of cannabis
flower and cannabis trim transferred by a cultivator who is not a whole-
saler; (b) to the cultivation of cannabis flower and cannabis trim  sold
or  transferred  to  a retail dispensary by a cultivator who is a whole-
saler; and (c) to the sale or transfer of adult use cannabis products to
a retail dispensary; provided, further, that the amendments  to  article
179  of  the  penal  law made by section fifty-six of this act shall not
affect the repeal of such article and shall be  deemed  to  be  repealed
therewith; provided, further, that the amendments to section 89-h of the
state  finance  law  made  by  section  fifty-nine of this act shall not
affect the repeal of such section and shall be  deemed  repealed  there-
with;  and  provided,  further, that the amendments to  subdivision 1 of
section 171-a of the tax law made by section  thirty-five  of  this  act
shall  not  affect  the  expiration of such subdivision and shall expire
therewith, when upon such date the provisions of section  thirty-six  of
this act shall take effect.

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

                                 1617--B

                       2019-2020 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2019
                               ___________

Introduced  by  M.  of  A.  PEOPLES-STOKES,  GOTTFRIED, LUPARDO, WRIGHT,
  WEPRIN, HUNTER, HYNDMAN, PICHARDO, BLAKE, L. ROSENTHAL, JAFFEE, DINOW-
  ITZ, JEAN-PIERRE, ABINANTI, RICHARDSON, HEVESI, WALKER,  VANEL,  NIOU,
  BICHOTTE, CAHILL, LIFTON, EPSTEIN, QUART, ORTIZ, REYES, DICKENS, FRON-
  TUS,  CRUZ,  SOLAGES,  RAYNOR,  RODRIGUEZ, FERNANDEZ, ARROYO, BRONSON,
  DE LA ROSA, FALL, CARROLL, LENTOL, DenDEKKER, RAMOS, BENEDETTO,  SIMO-
  TAS -- Multi-Sponsored by -- M. of A. MOSLEY, SEAWRIGHT, SIMON, STECK,
  TAYLOR  -- read once and referred to the Committee on Codes -- commit-
  tee discharged, bill amended, ordered reprinted as amended and  recom-
  mitted  to  said  committee -- again reported from said committee with
  amendments, ordered reprinted  as  amended  and  recommitted  to  said
  committee

AN ACT in relation to constituting chapter 7-A of the consolidated laws,
  in relation to the creation of a new office of cannabis management, as
  an  independent  entity  within  the  division  of  alcoholic beverage
  control, providing for the licensure of persons authorized  to  culti-
  vate, process, distribute and sell cannabis and the use of cannabis by
  persons  aged  twenty-one or older; to amend the public health law, in
  relation to the description of cannabis; to amend the  penal  law,  in
  relation  to  the  growing  and  use of cannabis by persons twenty-one
  years of age or older; to amend the tax law, in relation to  providing
  for  the levying of taxes on cannabis; to amend the criminal procedure
  law, the civil practice law and rules, the general business  law,  the
  state  finance  law,  the  executive law, the penal law, the alcoholic
  beverage control law, the general obligations law, the social services
  law, the agriculture and markets law and the vehicle and traffic  law,
  in  relation  to making conforming changes; to amend the public health
  law, in relation to the definition of  smoking;  to  amend  the  state
  finance  law,  in relation to establishing the New York state cannabis
  revenue fund, the New York state drug treatment and  public  education
  fund  and  the  New  York state community grants reinvestment fund; to
  amend chapter 90 of the laws of 2014 amending the public  health  law,
  the  tax  law,  the  state  finance law, the general business law, the
  penal law and the criminal procedure law relating to  medical  use  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD07592-10-9

A. 1617--B                          2

  marihuana, in relation to the effectiveness thereof; to repeal certain
  provisions  of  the  public health law relating to growing of cannabis
  and medical use of marihuana; to repeal article 221 of the  penal  law
  relating  to  offenses involving marihuana; to repeal paragraph (f) of
  subdivision 2 of section 850 of the general business law  relating  to
  drug related paraphernalia; to repeal certain provisions of the crimi-
  nal  procedure law relating to certain criminal actions; and to repeal
  certain provisions of the agriculture  and  markets  law  relating  to
  industrial hemp

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

  Section 1. This act shall be known and may be cited as the  "marihuana
regulation and taxation act".
  §  2.  Chapter  7-A  of  the  consolidated laws is enacted, to read as
follows:

                  CHAPTER 7-A OF THE CONSOLIDATED LAWS
                              CANNABIS LAW
                                ARTICLE 1
              SHORT TITLE; LEGISLATIVE FINDINGS AND INTENT;
                               DEFINITIONS

Section 1. Short title.
        2. Legislative findings and intent
        3. Definitions.

  Section 1. Short title.  This chapter shall be known and may be  cited
and referred to as the "cannabis law".
  §  2.  Legislative  findings  and  intent.  The legislature finds that
existing marihuana laws have not been beneficial to the welfare  of  the
general public. Existing laws have been ineffective in reducing or curb-
ing  marihuana  use  and have instead resulted in devastating collateral
consequences 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,
heretofore known as cannabis, generate millions of dollars in new reven-
ue, prevent access to cannabis by those  under  the  age  of  twenty-one
years,  reduce  the illegal drug market and reduce violent crime, reduce
participation of otherwise law-abiding citizens in the  illicit  market,
end  the  racially disparate impact of existing cannabis laws 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  cannabis  in  the  workplace, to allow driving under the
influence of cannabis, to allow individuals to engage  in  conduct  that
endangers  others, to allow smoking cannabis in any location where smok-
ing tobacco is prohibited, or to require any individual to engage in any
conduct that violates federal law or to exempt anyone from any  require-

A. 1617--B                          3

ment  of  federal law or pose any obstacle to the federal enforcement of
federal law.
  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  cannabis use, or activity made lawful by this act.  A
newborn child's positive toxicology result for cannabis, is  not  suffi-
cient  on its own to support a finding of child neglect or abuse. Enact-
ment of this act shall provide sufficient 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 cannabis 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 cannabis-related arrest.
  The legislature further finds and declares that  it  is  in  the  best
interest  of the state to regulate medical cannabis, adult-use cannabis,
and hemp extracts under one independent agency, known as the  office  of
cannabis management.
  §  3.  Definitions.  Whenever  used  in this chapter, unless otherwise
expressly stated or unless the context  or  subject  matter  requires  a
different  meaning,  the  following  terms shall have the representative
meanings hereinafter set forth or indicated:
  1. "Applicant" means a resident of  New  York  state  aged  twenty-one
years  or older applying for any cannabis or hemp license or special use
permit issued by the office of cannabis management.
  2. "Cannabinoid extractor" means a person licensed by  the  office  to
acquire,  possess,  extract  and  manufacture hemp extract from licensed
cannabinoid growers  for  the  manufacture  and  sale  of  hemp  extract
products marketed for cannabinoid content and used or intended for human
or animal consumption or use.
  3.  "Cannabinoid grower" means a person licensed by the office, and in
compliance with article twenty-nine of the agriculture and markets  law,
to  acquire,  possess, cultivate, and sell hemp extract for its cannabi-
noid content.
  4. "Cannabis" means all parts of the  plant  of  the  genus  Cannabis,
whether  growing or not; the seeds thereof; the resin extracted from any
part of the plant; and every compound,  manufacture,  salt,  derivative,
mixture,  or  preparation of the plant, its seeds or resin.  It does not
include the mature stalks of the plant, fiber produced from the  stalks,
oil  or cake made from the seeds of the plant, any other compound, manu-
facture, salt, derivative, mixture, or preparation of the mature  stalks
(except  the  resin  extracted  therefrom),  fiber, oil, or cake, or the
sterilized seed of the plant which is incapable of germination.  It does
not include hemp extract as defined by this section.
  5. "Cannabis consumer" means a person twenty-one years of age or older
acting in accordance with any provision of this chapter.
  6. "Cannabis flower" means the flower of a plant of the genus Cannabis
that has been harvested, dried, and cured, and prior to  any  processing
whereby the plant material is transformed into a concentrate, including,
but not limited to, concentrated cannabis, or an edible or topical prod-
uct  containing cannabis or concentrated cannabis and other ingredients.
Cannabis flower excludes leaves and stem.
  7. "Cannabis product" or "adult-use cannabis" means cannabis,  concen-
trated  cannabis,  and  cannabis-infused  products for use by a cannabis
consumer.

A. 1617--B                          4

  8. "Cannabis-infused products" means products that have been  manufac-
tured  and  contain  either  cannabis or concentrated cannabis and other
ingredients that are intended for use or consumption.
  9.  "Cannabis trim" means all parts of the plant of the genus Cannabis
other than cannabis flower that have been harvested, dried,  and  cured,
but prior to any further processing.
  10.  "Caring for" means treating a patient, in the course of which the
practitioner has completed a full assessment of  the  patient's  medical
history and current medical condition.
  11. "Certification" means a certification made under this chapter.
  12.  "Certified medical use" includes the acquisition, administration,
cultivation, manufacture, delivery,  harvest,  possession,  preparation,
transfer,  transportation,  or use of cannabis or paraphernalia relating
to the administration of cannabis to  treat  or  alleviate  a  certified
patient's  medical  condition  or symptoms associated with the patient's
medical condition.
  13. "Certified patient" means a patient who is a resident of New  York
state or receiving care and treatment in New York state as determined by
the  executive director in regulation, and is certified under this chap-
ter.
  14. "Commercial cannabis activity" means the production,  cultivation,
manufacturing,  processing,  possession,  storing,  laboratory  testing,
packaging, labeling, transportation, delivery, or sale of  cannabis  and
cannabis products as provided for in this chapter.
  15.  "Concentrated  cannabis"  means: (a) the separated resin, whether
crude or purified, obtained from a plant of the genus Cannabis; or (b) a
material,  preparation,  mixture,  compound  or  other  substance  which
contains more than three percent by weight of delta-9 tetrahydrocannabi-
nol,  or  its  isomer, delta-8 dibenzopyran numbering system, or delta-1
tetrahydrocannabinol or its isomer, delta 1  (6)  monoterpene  numbering
system.
  16.  "Condition" means having one of the following conditions: cancer,
positive status for human  immunodeficiency  virus  or  acquired  immune
deficiency syndrome, amyotrophic lateral sclerosis, Parkinson's disease,
multiple sclerosis, damage to the nervous tissue of the spinal cord with
objective  neurological  indication of intractable spasticity, epilepsy,
inflammatory bowel disease, neuropathies,  Huntington's  disease,  post-
traumatic  stress  disorder,  pain  that  degrades health and functional
capability where the use of medical cannabis is an alternative to opioid
use, substance use disorder, Alzheimer's, muscular dystrophy,  dystonia,
rheumatoid  arthritis,  autism  or  any other condition certified by the
practitioner.
  17. "Cultivation" means growing, cloning, harvesting, drying,  curing,
grading, and trimming of cannabis plants for sale to certain other cate-
gories of cannabis license- and permit-holders.
  18.  "Delivery"  means  the  direct delivery of cannabis products by a
retail licensee, microbusiness licensee, or delivery license holder to a
cannabis consumer.
  19. "Designated caregiver facility" means a general hospital or  resi-
dential  health care facility operating pursuant to article twenty-eight
of the public health law; an adult care facility operating  pursuant  to
title  two  of  article  seven  of  the social services law; a community
mental health residence established pursuant to  section  41.44  of  the
mental hygiene law; a hospital operating pursuant to section 7.17 of the
mental  hygiene  law;  a  mental  hygiene facility operating pursuant to
article thirty-one of the mental hygiene law; an inpatient  or  residen-

A. 1617--B                          5

tial  treatment  program certified pursuant to article thirty-two of the
mental hygiene law; a residential facility for the care and treatment of
persons with developmental disabilities operating  pursuant  to  article
sixteen  of the mental hygiene law; a residential treatment facility for
children and youth operating  pursuant  to  article  thirty-one  of  the
mental  hygiene  law;  a  private or public school; research institution
with an internal review board; or any other facility  as  determined  by
the  executive director in regulation; that registers with the office to
assist one or more certified patients with the acquisition,  possession,
delivery, transportation or administration of medical cannabis.
  20.  "Designated caregiver" means an individual designated by a certi-
fied patient in a registry application. A certified patient  may  desig-
nate  up to five designated caregivers not counting designated caregiver
facilities or designated caregiver facilities' employees.
  21. "Designated caregiver facility employee" means an  employee  of  a
designated caregiver facility.
  22. "Distributor" means any person who sells at wholesale any cannabis
product,  except  medical  cannabis,  for the sale of which a license is
required under the provisions of this chapter.
  23. "Executive director" means the executive director of the office of
cannabis management.
  24. "Form of medical cannabis" means characteristics  of  the  medical
cannabis  recommended  or  limited  for  a particular certified patient,
including the method of consumption and any particular strain,  variety,
and quantity or percentage of cannabis or particular active ingredient.
  25.  "Hemp  extract" means any product made or derived from industrial
hemp, including the seeds thereof and all derivatives, extracts,  canna-
binoids, isomers, acids, salts, and salts of isomers, whether growing or
not,  with a delta-9 tetrahydrocannabinol concentration of not more than
an amount determined by the office in regulation, used or  intended  for
human  or  animal  consumption  or  use  for its cannabinoid content, as
determined  by  the  executive  director  in  regulation.  Hemp  extract
excludes  industrial hemp used or intended exclusively for an industrial
purpose.
  26. "Industrial hemp" means the plant Cannabis sativa L. and any  part
of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
extracts, cannabinoids, isomers, acids, salts,  and  salts  of  isomers,
whether  growing  or  not,  with  a delta-9 tetrahydrocannabinol concen-
tration of not more than three-tenths of one percent  on  a  dry  weight
basis, used or intended for an industrial purpose.
  27. "Labor peace agreement" means an agreement between an entity and a
labor  organization that, at a minimum, protects the state's proprietary
interests by prohibiting labor organizations and members  from  engaging
in picketing, work stoppages, boycotts, and any other economic interfer-
ence with the entity.
  28.  "Laboratory  testing  facility"  means any independent laboratory
capable of testing cannabis and  cannabis  products  for  adult-use  and
medical-use;  hemp extract; or for all categories of cannabis and canna-
bis products as per regulations set forth by the office.
  29. "License" means a written authorization issued by  the  office  of
cannabis management permitting persons to engage in a specified activity
with respect to cannabis or cannabis products.
  30.  "Medical  cannabis"  means  cannabis  as defined in this section,
intended for a certified medical use, as  determined  by  the  executive
director in consultation with the commissioner of health.

A. 1617--B                          6

  31.  "Microbusiness"  means  a  licensee  that  may  act as a cannabis
producer for the cultivation of cannabis, a cannabis  processor,  and  a
cannabis  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 its cannabis  and  cannabis
products  to other licensed cannabis businesses and may deliver cannabis
and cannabis products to customers.
  32. "Nursery" means a licensee that  produces  only  clones,  immature
plants, seeds, and other agricultural products used specifically for the
planting, propagation, and cultivation of cannabis.
  33.  "Office"  or  "office  of cannabis management" means the New York
state office of cannabis management.
  34. "On-site consumption" means the consumption of cannabis in an area
licensed for such activity by the office.
  35. "Owner" means an individual with an aggregate  ownership  interest
of  twenty  percent  or more in a cannabis business licensed pursuant to
this chapter, unless such interest is solely a security, lien, or encum-
brance, or an individual that will be participating  in  the  direction,
control, or management of the licensed cannabis business.
  36.  "Package"  means  any  container  or  receptacle used for holding
cannabis or cannabis products.
  37. "Permit" means a permit issued pursuant to this chapter.
  38. "Permittee" means any person to whom  a  permit  has  been  issued
pursuant to this chapter.
  39.  "Practitioner"  means  a  practitioner  who: (i) is authorized to
prescribe controlled substances within the state, (ii)  by  training  or
experience  is  qualified  to  treat patients; and (iii) completes, at a
minimum, a two-hour course as determined by the  executive  director  in
regulation.    A person's status as a practitioner under this chapter is
deemed to be a "license" for purposes of  section  thirty-three  hundred
ninety of the public health law and shall be subject to the same revoca-
tion process.
  40.  "Processor"  means a licensee that extracts concentrated cannabis
and/or compounds, blends, extracts, infuses, or  otherwise  manufactures
concentrated  cannabis  or cannabis products, but not the cultivation of
the cannabis contained in the cannabis product.
  41. "Registered organization" means an organization  registered  under
article three of this chapter.
  42. "Registry application" means an application properly completed and
filed  with  the  office  of  cannabis management by a certified patient
under article three of this chapter.
  43. "Registry identification card" means a document that identifies  a
certified  patient or designated caregiver, as provided under this chap-
ter.
  44. "Retail sale" means to solicit or receive an order for, to keep or
expose for sale, and to keep with intent to sell, made  by  any  person,
whether  principal,  proprietor,  agent,  or  employee, of any cannabis,
cannabis product, or hemp extract product to a cannabis consumer for any
purpose other than resale.
  45. "Retailer" means any person who sells at retail any cannabis prod-
uct, the sale of which a license is required  under  the  provisions  of
this chapter.
  46. "Smoking" means the burning of a lighted cigar, cigarette, pipe or
any  other  matter  or  substance  which  contains  tobacco  or cannabis
provided that it does not include  the  use  of  an  electronic  smoking

A. 1617--B                          7

device that creates an aerosol or vapor, unless local laws or ordinances
or  state  statutes extend prohibitions on smoking to electronic smoking
devices.
  47.  "Terminally ill" means an individual has a medical prognosis that
the individual's life expectancy is approximately one year  or  less  if
the illness runs its normal course.
  48.  "Warehouse" means and includes a place in which cannabis products
are housed or stored.
  49. "Wholesale" means to solicit or receive an order for, to  keep  or
expose  for  sale,  and to keep with intent to sell, made by any person,
whether principal, proprietor, agent,  or  employee  of  any  adult-use,
medical-use, or hemp extract product for purposes of resale.

                                ARTICLE 2
              NEW YORK STATE OFFICE OF CANNABIS MANAGEMENT

Section 9. Establishment of an office of cannabis management.
        10. Executive director.
        11. Functions,  powers  and  duties  of the office and executive
              director.
        12. Rulemaking authority.
        13. State cannabis advisory board.
        14. Disposition of moneys received for license fees.
        15. Legal presumptions.
        16. Violations of cannabis laws or  regulations;  penalties  and
              injunctions.
        17. Formal hearings; notice and procedure.
        18. Ethics, transparency and accountability.
  § 9. Establishment of an office of cannabis management. There is here-
by  established,  within  the division of alcoholic beverage control, an
independent office of cannabis management, which  shall  have  exclusive
jurisdiction to exercise the powers and duties provided by this chapter.
The  office  shall  exercise  its  authority by and through an executive
director.
  § 10. Executive director.  The executive director shall  be  appointed
by  the  governor and confirmed by the senate. The executive director of
the state office of cannabis management shall receive an  annual  salary
not to exceed an amount appropriated therefor by the legislature and his
or  her expenses actually and necessarily incurred in the performance of
official duties, unless otherwise provided by the legislature.
  § 11. Functions, powers and duties of the office and executive  direc-
tor.    The  office of cannabis management, by and through its executive
director, shall have the following powers and duties:
  1. To issue or refuse to issue any  registration,  license  or  permit
provided  for  in  this  chapter,  and to issue temporary or provisional
licenses.
  2. To issue or refuse to issue registrations, licenses,  permits,  and
temporary  or  provisional  licenses in a manner that prioritizes social
equity applicants, and small business opportunities and concerns, avoids
market dominance in sectors of the industry, and reflects the demograph-
ics of the state.
  3. To limit, or not to limit, in the executive director's  discretion,
the  number  of  registrations, licenses and permits of each class to be
issued within the state or any political  subdivision  thereof,  and  in
connection therewith to prohibit the acceptance of applications for such

A. 1617--B                          8

classes  which  have  been so limited.   Such limitations shall consider
consumer access, market demand, and geographic diversity.
  4.  To  develop  testing standards and certify testing laboratories in
the state.
  5. To regulate advertising, marketing, branding, packaging, and label-
ing, including regulating the accuracy of information about cannabis and
cannabis products and restricting marketing and advertising to youth.
  6. To revoke, cancel or suspend for cause any  registration,  license,
or permit issued under this chapter and/or to impose a civil penalty for
cause  against  any  holder of a registration, license, or permit issued
pursuant to this chapter.
  7. To fix by rule the  standards  of  cultivation  and  processing  of
medical cannabis, adult use cannabis and hemp extract, including but not
limited  to,  the  ability to regulate potency and the types of products
which may be manufactured and/or  processed,  in  order  to  ensure  the
health  and  safety  of the public and the use of proper ingredients and
methods in the manufacture of all medical cannabis, adult use  cannabis,
and hemp extract to be sold or consumed in the state.
  8.  To  hold  hearings,  subpoena  witnesses, compel their attendance,
administer oaths, to examine any person under  oath  and  in  connection
therewith  to require the production of any books or records relative to
the inquiry. A subpoena issued under this section shall be regulated  by
the civil practice law and rules.
  9. To appoint any necessary directors, deputies, counsels, assistants,
investigators,  and other employees within the limits provided by appro-
priation.  Investigators so employed by the office shall be deemed to be
peace officers for the purpose of enforcing the provisions of the canna-
bis control law or judgements or orders obtained for violation  thereof,
with  all the powers set forth in section 2.20 of the criminal procedure
law.  Directors, deputies, and counsels shall be in the exempt class  of
the  civil service. The other assistants, investigators and employees of
the office shall all be in the competitive class of the  civil  service.
Employees transferred to the office shall be transferred without further
examination  or  qualification  to  the same or similar titles and shall
remain in the same collective bargaining units and  shall  retain  their
respective  civil service classifications, status and rights pursuant to
their collective bargaining units and collective bargaining  agreements.
Employees serving in positions in newly created titles shall be assigned
to the appropriate collective bargaining unit.
  10.  To remove any employee of the office for cause, after giving such
employee a copy of the charges against him or her  in  writing,  and  an
opportunity to be heard thereon. Any action taken under this subdivision
shall be subject to and in accordance with the civil service law.
  11.  To inspect or provide for the inspection at any time of any prem-
ises where medical cannabis, adult use  cannabis,  or  hemp  extract  is
cultivated, processed, stored, distributed or sold.
  12. To prescribe forms of applications for registrations, licenses and
permits  under  this  chapter and of all reports deemed necessary by the
office.
  13. To delegate the powers provided in  this  section  to  such  other
officers or employees or other state agencies as may be deemed appropri-
ate by the executive director.
  14.  To  appoint  such advisory groups and committees as the executive
director deems necessary to provide assistance to the  office  to  carry
out the purposes and objectives of this chapter.

A. 1617--B                          9

  15.  To  exercise the powers and perform the duties in relation to the
administration of the office as are necessary but not specifically vest-
ed by this chapter, including but not limited to  budgetary  and  fiscal
matters in consultation with the cannabis advisory board.
  16. To develop and establish minimum criteria for certifying employees
to  work  in  the  cannabis  industry,  including the establishment of a
cannabis workers certification program.
  17. To enter into contracts, memoranda of  understanding,  and  agree-
ments  as deemed appropriate by the executive director to effectuate the
policy and purpose of this chapter.
  18. To issue and administer low interest or  zero-interest  loans  and
other assistance to qualified social equity applicants.
  19.  If  the  executive  director finds that public health, safety, or
welfare imperatively requires emergency action, and incorporates a find-
ing to that effect in an order, summary suspension of a license  may  be
ordered,  effective  on the date specified in such order or upon service
of a certified copy of such order on the licensee,  whichever  shall  be
later,  pending  proceedings  for  revocation  or  other  action.  These
proceedings shall be promptly instituted and  determined.  In  addition,
the  executive director may order the administrative seizure of product,
issue a stop order, or take any other action necessary to effectuate and
enforce the policy and purpose of this chapter.
  20. To issue regulations, declaratory rulings, guidance  and  industry
advisories.
  §  12.  Rulemaking authority.   1. The office shall perform such acts,
prescribe such forms and propose such rules, regulations and  orders  as
it  may  deem  necessary or proper to fully effectuate the provisions of
this chapter.
  2. The office shall have the power to promulgate any and all necessary
rules and regulations governing the cultivation,  manufacture,  process-
ing,  transportation,  distribution,  testing,  delivery,  and  sale  of
medical cannabis, adult-use cannabis, and hemp  extract,  including  but
not  limited  to  the  registration  of organizations authorized to sell
medical cannabis, the licensing and/or permitting of adult-use  cannabis
cultivators,  processors,  cooperatives, distributors, laboratories, and
retailers, and the licensing of hemp extract  producers  and  processors
pursuant to this chapter, including, but not limited to:
  (a) prescribing forms and establishing application, reinstatement, and
renewal fees;
  (b)  the  qualifications  and  selection  criteria  for  registration,
licensing, or permitting;
  (c) the books and records to be created and maintained  by  registered
organizations,  licensees,  and  permittees, including the reports to be
made thereon to the office, and inspection of  any  and  all  books  and
records maintained by any registered organization, licensee, or permitee
and  on the premise of any registered organization, licensee, or permit-
tee;
  (d) methods of producing, processing, and packaging cannabis,  medical
cannabis,  cannabis-infused  products,  concentrated  cannabis, and hemp
extract; conditions of sanitation, and standards of ingredients,  quali-
ty,  and  identity of cannabis products cultivated, processed, packaged,
or sold by registered organizations and licensees;
  (e) security requirements for adult-use cannabis  retail  dispensaries
and  premises  where  cannabis  products,  medical  cannabis,  and  hemp
extract, are cultivated, produced,  processed,  or  stored,  and  safety

A. 1617--B                         10

protocols  for  registered organizations, licensees and their employees;
and
  (f) hearing procedures and additional causes for cancellation, revoca-
tion, and/or civil penalties against any person registered, licensed, or
permitted by the authority.
  3. The office shall promulgate rules and regulations that are designed
to:
  (a)  prevent  the  distribution of adult-use cannabis to persons under
twenty-one years of age;
  (b) prevent the revenue from the sale of cannabis from going to crimi-
nal enterprises, gangs, and cartels;
  (c) prevent the diversion of cannabis from this state to other states;
  (d) prevent cannabis 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 drugged driving and  the  exacerbation  of  other  adverse
public health consequences associated with the use of cannabis;
  (f) prevent the growing of cannabis on public lands; and
  (g) prevent the possession and use of cannabis on federal property.
  4.  The office, in consultation with the department of agriculture and
markets and the department of environmental conservation, shall  promul-
gate  necessary  rules  and regulations governing the safe production of
cannabis, including environmental and energy standards and  restrictions
on the use of pesticides.
  §  13. State cannabis advisory board.  1. The executive director shall
establish within the office a state cannabis  advisory  board  prior  to
engaging  in  rulemaking, which may consider all matters submitted to it
by the executive director, and advise the office and the legislature  on
cannabis cultivation, processing, distribution, transport, equity in the
cannabis  industry,  public  health concerns related to cannabis, and on
the testing and sale of cannabis and cannabis products.
  2. The executive director of the office shall serve as the chairperson
of the board. The vice chairperson  shall  be  elected  from  among  the
members  of  the board by the members of such board, and shall represent
the board in the absence of the chairperson at all official board  func-
tions.
  3. The members of the board shall be appointed by the temporary presi-
dent  of the senate and the speaker of the assembly and shall receive no
compensation for their services but shall be allowed  their  actual  and
necessary  expenses incurred in the performance of their duties as board
members.
  4. The executive director shall  promulgate  regulations  establishing
the  number  of  members on the board, the term of the board members and
any other terms or conditions  regarding  the  state  cannabis  advisory
board,  including  that  such  board  shall  include  members  from  the
geographic regions of the state.
  5. Every effort shall be made to ensure a balanced and diverse  board,
which  shall  have  expertise in public and behavioral health, substance
use disorder treatment, effective rehabilitative  treatment  for  adults
and  juveniles,  economic  development,  environmental conservation, job
training and placement, criminal justice, and drug policy. Further,  the
board shall include residents from communities most impacted by cannabis
prohibition,  people with prior drug convictions, the formerly incarcer-
ated, and representatives of organizations serving communities  impacted
by past federal and state drug policies.

A. 1617--B                         11

  §  14.  Disposition  of  moneys received for license fees.  The office
shall establish a scale of application,  licensing,  and  renewal  fees,
based upon the cost of enforcing this chapter and the size of the canna-
bis business being licensed, as follows:
  1.  The office shall charge each registered organization, licensee and
permittee a registration, licensure or permit fee, and renewal  fee,  as
applicable.    The  fees may vary depending upon the nature and scope of
the different registration, licensure and permit activities.
  2. The total fees assessed pursuant to this chapter shall be set at an
amount that will generate sufficient total revenue  to,  at  a  minimum,
fully cover the total costs of administering this chapter.
  3.  All registration and licensure fees shall be set on a scaled basis
by the office, dependent on the size and capacity of the business.
  4. The office shall deposit all fees collected in the New  York  state
cannabis  revenue fund established pursuant to section ninety-nine-hh of
the state finance law.
  § 15. Legal presumptions.   The action,  proceedings,  authority,  and
orders of the office in enforcing the provisions of the cannabis law and
applying  them  to  specific  cases shall at all times be regarded as in
their nature judicial, and shall be treated  as  prima  facie  just  and
legal.
  §  16.  Violations  of  cannabis  laws  or  regulations; penalties and
injunctions.  1. A person who willfully violates any provision  of  this
chapter,  or  any  regulation lawfully made or established by any public
officer under authority of this chapter, the  punishment  for  violating
which  is  not otherwise prescribed by this chapter or any other law, is
punishable by imprisonment not exceeding one year,  or  by  a  fine  not
exceeding five thousand dollars or by both.
  2.  Any  person  who  violates,  disobeys  or  disregards  any term or
provision of this chapter or of any lawful notice, order  or  regulation
pursuant  thereto for which a civil or criminal penalty is not otherwise
expressly prescribed by law, shall be liable to the people of the  state
for  a  civil  penalty  of not to exceed five thousand dollars for every
such violation.
  3. The penalty provided for in subdivision one of this section may  be
recovered by an action brought by the executive director in any court of
competent jurisdiction.
  4.  Such civil penalty may be released or compromised by the executive
director before the matter has been referred to  the  attorney  general,
and  where  such  matter  has been referred to the attorney general, any
such penalty may be released or compromised and any action commenced  to
recover the same may be settled and discontinued by the attorney general
with the consent of the executive director.
  5.  It  shall  be the duty of the attorney general upon the request of
the executive director to bring an action for an injunction against  any
person  who  violates,  disobeys  or disregards any term or provision of
this chapter or of any lawful notice, order or regulation pursuant ther-
eto; provided, however, that the executive director  shall  furnish  the
attorney  general with such material, evidentiary matter or proof as may
be requested by the attorney general for  the  prosecution  of  such  an
action.
  6. It is the purpose of this section to provide additional and cumula-
tive  remedies,  and  nothing  herein  contained  shall abridge or alter
rights of action or remedies now or hereafter existing,  nor  shall  any
provision  of  this  section,  nor  any  action  done  by virtue of this

A. 1617--B                         12

section, be construed as estopping the state, persons or  municipalities
in the exercising of their respective rights.
  §  17. Formal hearings; notice and procedure.  1. The executive direc-
tor, or any person designated by him or her for this purpose, may  issue
subpoenas  and administer oaths in connection with any hearing or inves-
tigation under or pursuant to this chapter, and it shall be the duty  of
the executive director and any persons designated by him or her for such
purpose  to  issue  subpoenas  at  the request of and upon behalf of the
respondent.
  2. The executive director and those designated by him or her shall not
be bound by the laws of evidence in the conduct of hearing  proceedings,
but  the  determination  shall  be  founded  upon sufficient evidence to
sustain it.
  3. Notice of hearing shall be served at least fifteen  days  prior  to
the  date  of  the hearing, provided that, whenever because of danger to
the public health, safety or  welfare  it  appears  prejudicial  to  the
interests  of  the people of the state to delay action for fifteen days,
the executive director may serve the respondent with an order  requiring
certain  action  or  the  cessation of certain activities immediately or
within a specified period of less than fifteen days.
  4. Service of notice of hearing or order shall  be  made  by  personal
service  or  by  registered or certified mail. Where service, whether by
personal service or by registered or certified mail,  is  made  upon  an
incompetent,  partnership,  or  corporation,  it  shall be made upon the
person or persons designated to  receive  personal  service  by  article
three of the civil practice law and rules.
  5.  At a hearing, the respondent may appear personally, shall have the
right of counsel, and may cross-examine witnesses against him or her and
produce evidence and witnesses in his or her behalf.
  6. Following a hearing, the executive director  may  make  appropriate
determinations and issue a final order in accordance therewith.
  7.  The  executive director may adopt, amend and repeal administrative
rules and regulations governing  the  procedures  to  be  followed  with
respect  to  hearings,  such  rules to be consistent with the policy and
purpose of this chapter and the effective and fair  enforcement  of  its
provisions.
  8.  The provisions of this section shall be applicable to all hearings
held pursuant to this chapter, except where  other  provisions  of  this
chapter  applicable  thereto  are inconsistent therewith, in which event
such other provisions shall apply.
  § 18. Ethics, transparency and  accountability.    No  member  of  the
office  or any officer, deputy, assistant, inspector or employee thereof
shall have any interest, direct or indirect, either  proprietary  or  by
means  of  any  loan, mortgage or lien, or in any other manner, in or on
any premises where adult use cannabis, medical cannabis or hemp  extract
is  cultivated, processed, distributed or sold; nor shall he or she have
any interest, direct or indirect, in any business  wholly  or  partially
devoted  to the cultivation, processing, distribution, sale, transporta-
tion or storage of adult use cannabis, medical cannabis or hemp extract,
or own any stock in any corporation which has any interest,  proprietary
or otherwise, direct or indirect, in any premises where adult use canna-
bis, medical cannabis or hemp extract is cultivated, processed, distrib-
uted  or  sold,  or  in  any business wholly or partially devoted to the
cultivation, processing, distribution, sale, transportation  or  storage
of  adult use cannabis, medical cannabis or hemp extract, or receive any
commission or profit whatsoever, direct or  indirect,  from  any  person

A. 1617--B                         13

applying  for  or  receiving  any license or permit provided for in this
chapter, or hold any other elected or appointed  public  office  in  the
state  or  in  any political subdivision. Anyone who violates any of the
provisions of this section shall be removed and shall divulge themselves
of  such  direct or indirect interests, in addition to any other penalty
provided by law.

                                ARTICLE 3
                            MEDICAL CANNABIS

Section 30. Certification of patients.
        31. Lawful medical use.
        32. Registry identification cards.
        33. Registration as a designated caregiver facility.
        34. Registered organizations.
        35. Registering of registered organizations.
        36. Reports of registered organizations.
        37. Evaluation; research programs; report by office.
        38. Cannabis research license.
        39. Registered organizations and adult-use cannabis.
        40. Relation to other laws.
        41. Protections for the medical use of cannabis.
        42. Regulations.
        43. Suspend; terminate.
        44. Pricing.
  § 30. Certification of patients.  1. A patient certification may  only
be issued if:
  (a)  the  patient  has  a  condition,  which shall be specified in the
patient's health care record;
  (b) the practitioner by training or experience is qualified  to  treat
the condition;
  (c)  the  patient  is under the practitioner's continuing care for the
condition; and
  (d) in the practitioner's professional  opinion  and  review  of  past
treatments,  the  patient is likely to receive therapeutic or palliative
benefit from the primary or adjunctive treatment  with  medical  use  of
cannabis for the condition.
  2.  The  certification  shall include: (a) the name, date of birth and
address of the patient; (b) a statement that the patient has a condition
and the patient is under the practitioner's care for the condition;  (c)
a  statement  attesting that all requirements of subdivision one of this
section have been satisfied; (d) the date; and (e)  the  name,  address,
telephone  number, and the signature of the certifying practitioner. The
executive director may require  by  regulation  that  the  certification
shall be on a form provided by the office. The practitioner may state in
the  certification that, in the practitioner's professional opinion, the
patient would benefit from medical cannabis only until a specified date.
The practitioner may state in the certification that, in the practition-
er's professional opinion, the patient is terminally ill  and  that  the
certification shall not expire until the patient dies.
  3.  In  making a certification, the practitioner may consider the form
of medical cannabis the patient should consume, including the method  of
consumption and any particular strain, variety, and quantity or percent-
age of cannabis or particular active ingredient, and appropriate dosage.
The  practitioner  may  state in the certification any recommendation or

A. 1617--B                         14

limitation the practitioner makes, in his or her  professional  opinion,
concerning the appropriate form or forms of medical cannabis and dosage.
  4.  Every  practitioner  shall  consult  the  prescription  monitoring
program registry prior to making or issuing  a  certification,  for  the
purpose  of  reviewing  a  patient's  controlled  substance history. For
purposes of this section, a practitioner may  authorize  a  designee  to
consult  the  prescription  monitoring  program  registry  on his or her
behalf, provided that such designation is  in  accordance  with  section
thirty-three hundred forty-three-a of the public health law.
  5.  The  practitioner  shall  give  the certification to the certified
patient, and place a copy in the patient's health care record.
  6. No practitioner shall issue a certification under this section  for
themselves.
  7.  A  registry  identification  card  based  on a certification shall
expire one year after the date the certification is signed by the  prac-
titioner.
  8.  (a)  If  the practitioner states in the certification that, in the
practitioner's professional opinion,  the  patient  would  benefit  from
medical  cannabis only until a specified earlier date, then the registry
identification card shall expire on that date; (b) if  the  practitioner
states  in  the  certification  that  in the practitioner's professional
opinion the patient is terminally ill and that the  certification  shall
not expire until the patient dies, then the registry identification card
shall state that the patient is terminally ill and that the registration
card  shall  not  expire until the patient dies; (c) if the practitioner
re-issues the certification to terminate the certification on an earlier
date, then the registry identification card shall expire  on  that  date
and  shall  be  promptly  destroyed by the certified patient; (d) if the
certification so provides, the registry identification card shall  state
any  recommendation  or limitation by the practitioner as to the form or
forms of medical cannabis or dosage for the certified patient;  and  (e)
the executive director shall make regulations to implement this subdivi-
sion.
  §  31. Lawful medical use. The possession, acquisition, use, delivery,
transfer, transportation, or administration of  medical  cannabis  by  a
certified patient, designated caregiver or the employees of a designated
caregiver  facility,  for  certified  medical use, shall be lawful under
this article provided that:
  1. the cannabis that may be possessed by a certified patient shall not
exceed a sixty-day supply of the dosage if determined by the practition-
er, consistent with any guidance and regulations issued by the executive
director, provided that during the last  seven  days  of  any  sixty-day
period, the certified patient may also possess up to such amount for the
next sixty-day period;
  2.  the  cannabis  that may be possessed by designated caregivers does
not exceed the quantities referred to in subdivision one of this section
for each certified patient for whom  the  caregiver  possesses  a  valid
registry identification card, up to five certified patients;
  3.  the cannabis that may be possessed by designated caregiver facili-
ties does not exceed the quantities referred to in  subdivision  one  of
this  section  for each certified patient under the care or treatment of
the facility;
  4. the form or forms of medical cannabis that may be possessed by  the
certified patient, designated caregiver or designated caregiver facility
pursuant  to a certification shall be in compliance with any recommenda-
tion or limitation by the practitioner  as  to  the  form  or  forms  of

A. 1617--B                         15

medical  cannabis  or  dosage  for  the certified patient in the certif-
ication;
  5. the medical cannabis shall be kept in the original package in which
it  was dispensed under this article, except for the portion removed for
immediate  consumption  for  certified  medical  use  by  the  certified
patient; and
  6.  in  the  case  of  a  designated  caregiver facility, the employee
assisting the patient has been designated  as  such  by  the  designated
caregiver facility.
  §  32. Registry identification cards.  1. Upon approval of the certif-
ication, the office shall issue registry identification cards for certi-
fied patients and designated caregivers. A registry identification  card
shall  expire  as  provided  in this article or as otherwise provided in
this section.  The office shall begin  issuing  registry  identification
cards  as  soon as practicable after the certifications required by this
chapter are granted. The office may specify a form for a registry appli-
cation, in which case the office shall  provide  the  form  on  request,
reproductions  of  the form may be used, and the form shall be available
for downloading from the office's website.
  2. To obtain, amend or renew a registry identification card, a  certi-
fied  patient  or designated caregiver shall file a registry application
with the office, unless otherwise exempted by the executive director  in
regulation.  The  registry  application  or  renewal  application  shall
include:
  (a) in the case of a certified patient:
  (i) the patient's certification, a new written certification shall  be
provided with a renewal application;
  (ii) the name, address, and date of birth of the patient;
  (iii) the date of the certification;
  (iv)  if  the  patient  has  a registry identification card based on a
current valid certification,  the  registry  identification  number  and
expiration date of that registry identification card;
  (v)  the  specified  date  until  which the patient would benefit from
medical cannabis, if the certification states such a date;
  (vi) the name, address, and telephone number of the certifying practi-
tioner;
  (vii) any recommendation or limitation by the practitioner as  to  the
form or forms of medical cannabis or dosage for the certified patient;
  (viii) if the certified patient designates a designated caregiver, the
name,  address, and date of birth of the designated caregiver, and other
individual identifying information required by the office;
  (ix) if the designated caregiver is a cannabis research license holder
under  this  chapter,  the  name  of  the  organization  conducting  the
research,  the address, phone number, name of the individual leading the
research or appropriate  designee,  and  other  identifying  information
required by the executive director; and
  (x) other individual identifying information required by the office;
  (b) in the case of a designated caregiver:
  (i) the name, address, and date of birth of the designated caregiver;
  (ii)  if  the designated caregiver has a registry identification card,
the registry identification number and expiration date of that  registry
identification card; and
  (iii) other individual identifying information required by the office;
  (c)  a  statement  that  a  false statement made in the application is
punishable under section 210.45 of the penal law;

A. 1617--B                         16

  (d) the date of the application and the  signature  of  the  certified
patient or designated caregiver, as the case may be;
  (e) any other requirements determined by the executive director.
  3. Where a certified patient is under the age of eighteen or otherwise
incapable of consent:
  (a)  The  application for a registry identification card shall be made
by the person responsible for  making  health  care  decisions  for  the
patient.
  (b)  The designated caregiver shall be: (i) a parent or legal guardian
of the certified patient; (ii) a person designated by a parent or  legal
guardian;  (iii) an employee of a designated caregiver facility, includ-
ing a cannabis research license holder; or (iv)  an  appropriate  person
approved by the office upon a sufficient showing that no parent or legal
guardian is appropriate or available.
  4.  No  person  may  be  a designated caregiver if the person is under
twenty-one years of age unless a  sufficient  showing  is  made  to  the
office  that  the  person  should  be permitted to serve as a designated
caregiver. The requirements for such a showing shall  be  determined  by
the executive director.
  5.  No  person may be a designated caregiver for more than five certi-
fied patients at one time; provided, however, that this limitation shall
not apply to a  designated  caregiver  facility,  or  cannabis  research
license holder as defined by this chapter.
  6.  If  a  certified  patient wishes to change or terminate his or her
designated caregiver, for whatever reason, the certified  patient  shall
notify  the  office  as  soon  as  practicable. The office shall issue a
notification to the designated caregiver that their registration card is
invalid and must be promptly destroyed. The newly  designated  caregiver
must comply with all requirements set forth in this section.
  7.  If the certification so provides, the registry identification card
shall contain any recommendation or limitation by the practitioner as to
the form or forms of  medical  cannabis  or  dosage  for  the  certified
patient.
  8.  The  office shall issue separate registry identification cards for
certified patients and designated caregivers as soon as reasonably prac-
ticable after receiving  a  complete  application  under  this  section,
unless  it  determines  that  the application is incomplete or factually
inaccurate, in which case it shall promptly notify the applicant.
  9. If the application of a certified patient designates an  individual
as a designated caregiver who is not authorized to be a designated care-
giver, that portion of the application shall be denied by the office but
that shall not affect the approval of the balance of the application.
  10. A registry identification card shall:
  (a)  contain the name of the certified patient or the designated care-
giver as the case may be;
  (b) contain the date of issuance and expiration date of  the  registry
identification card;
  (c) contain a registry identification number for the certified patient
or  designated  caregiver, as the case may be and a registry identifica-
tion number;
  (d) contain a photograph of the individual to whom the registry  iden-
tification  card  is being issued, which shall be obtained by the office
in  a  manner  specified  by  the  executive  director  in  regulations;
provided,  however,  that  if  the office requires certified patients to
submit photographs for this purpose, there shall be a reasonable  accom-
modation  of  certified  patients who are confined to their homes due to

A. 1617--B                         17

their medical conditions and may  therefore  have  difficulty  procuring
photographs;
  (e) be a secure document as determined by the office;
  (f) plainly state any recommendation or limitation by the practitioner
as  to the form or forms of medical cannabis or dosage for the certified
patient; and
  (g) any other requirements determined by the executive director.
  11. A certified patient or designated caregiver who has been issued  a
registry  identification  card  shall notify the office of any change in
his or her name or address or, with respect to the patient, if he or she
ceases to have the condition noted on the certification within ten  days
of such change. The certified patient's or designated caregiver's regis-
try  identification  card  shall be deemed invalid and shall be promptly
destroyed.
  12. If a certified patient or designated caregiver loses  his  or  her
registry  identification  card, he or she shall notify the office within
ten days of losing the card. The office shall issue a new registry iden-
tification card as soon as practicable, which may contain a new registry
identification number, to the certified patient or designated caregiver,
as the case may be.
  13. The office shall maintain a confidential list of  the  persons  to
whom it has issued registry identification cards. Individual identifying
information obtained by the office under this article shall be confiden-
tial and exempt from disclosure under article six of the public officers
law.  Notwithstanding this subdivision, the office may notify any appro-
priate  law  enforcement agency of information relating to any violation
or suspected violation of this article.
  14. The office shall verify to law enforcement personnel in an  appro-
priate case whether a registry identification card is valid.
  15.  If a certified patient or designated caregiver willfully violates
any provision of this article as determined by the  executive  director,
his  or  her  certification  and  registry  identification  card  may be
suspended or revoked. This is in addition to any other penalty that  may
apply.
  §  33. Registration as a designated caregiver facility.  1. To obtain,
amend or renew a registration as a designated  caregiver  facility,  the
facility shall file a registry application with the office. The registry
application or renewal application shall include:
  (a) the facility's full name and address;
  (b) operating certificate or license number where appropriate;
  (c)  printed  name,  title,  and  signature  of an authorized facility
representative;
  (d) a statement that the facility agrees to secure and  ensure  proper
handling of all medical cannabis products;
  (e)  an  acknowledgement  that a false statement in the application is
punishable under section 210.45 of the penal law; and
  (f) any other information that may be required by the executive direc-
tor.
  2. Prior to issuing or renewing a designated caregiver facility regis-
tration, the office may verify the information submitted by  the  appli-
cant.  The applicant shall provide, at the office's request, such infor-
mation and documentation, including any consents or authorizations  that
may be necessary for the office to verify the information.
  3.  The  office shall approve, deny or determine incomplete or inaccu-
rate an initial or renewal application within thirty days of receipt  of
the  application.  If  the application is approved within the thirty-day

A. 1617--B                         18

period, the office shall issue a registration as soon as  is  reasonably
practicable.
  4. An applicant shall have thirty days from the date of a notification
of an incomplete or factually inaccurate application to submit the mate-
rials  required  to  complete, revise or substantiate information in the
application. If the applicant fails to  submit  the  required  materials
within  such  thirty-day time period, the application shall be denied by
the office.
  5. Registrations issued under this section shall remain valid for  two
years from the date of issuance.
  § 34. Registered organizations.  1. A registered organization shall be
a for-profit business entity or not-for-profit corporation organized for
the  purpose  of acquiring, possessing, manufacturing, selling, deliver-
ing, transporting, distributing or  dispensing  cannabis  for  certified
medical use.
  2.  The acquiring, possession, manufacture, sale, delivery, transport-
ing, distributing or dispensing of  medical  cannabis  by  a  registered
organization  under  this  article  in  accordance with its registration
under this article or a renewal thereof shall be lawful under this chap-
ter.
  3. Each registered organization shall  contract  with  an  independent
laboratory permitted by the office to test the medical cannabis produced
by the registered organization. The executive director shall approve the
laboratory  used by the registered organization and may require that the
registered organization use a particular testing laboratory.  The execu-
tive director is authorized to issue regulations requiring the laborato-
ry to perform certain tests and services.
  4. (a) A registered organization may lawfully, in  good  faith,  sell,
deliver,  distribute or dispense medical cannabis to a certified patient
or designated caregiver upon presentation to the registered organization
of a valid registry identification card for that  certified  patient  or
designated  caregiver.   When presented with the registry identification
card, the registered organization shall provide to the certified patient
or designated caregiver a receipt, which shall state: the name, address,
and registry identification number of the registered  organization;  the
name and registry identification number of the certified patient and the
designated caregiver, if any; the date the cannabis was sold; any recom-
mendation  or  limitation by the practitioner as to the form or forms of
medical cannabis or dosage for the certified patient; and the  form  and
the quantity of medical cannabis sold. The registered organization shall
retain  a  copy  of the registry identification card and the receipt for
six years.
  (b) The proprietor of a registered organization shall file or cause to
be filed any receipt and certification information with  the  office  by
electronic  means  on  a real-time basis as the executive director 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 executive director  shall
by regulation require.
  5.  (a)  No  registered  organization may sell, deliver, distribute or
dispense to any certified patient or designated caregiver a quantity  of
medical cannabis larger than that individual would be allowed to possess
under this chapter.
  (b)  When dispensing medical cannabis to a certified patient or desig-
nated caregiver, the registered organization:  (i) shall not dispense an

A. 1617--B                         19

amount greater than a sixty-day supply to a certified patient until  the
certified  patient  has  exhausted  all  but a seven day supply provided
pursuant to a previously issued certification; and (ii) shall verify the
information  in  subparagraph  (i)  of  this paragraph by consulting the
prescription monitoring program registry under this article.
  (c) Medical cannabis dispensed to a certified  patient  or  designated
caregiver  by a registered organization shall conform to any recommenda-
tion or limitation by the practitioner  as  to  the  form  or  forms  of
medical cannabis or dosage for the certified patient.
  6.  When  a  registered  organization  sells, delivers, distributes or
dispenses medical cannabis to a certified patient or designated caregiv-
er, it shall provide to that individual a safety insert, which  will  be
developed  by  the registered organization and approved by the executive
director and include, but not be limited to, information on:
  (a) methods for administering medical cannabis,
  (b) any potential dangers stemming from the use of medical cannabis,
  (c) how to recognize what may be problematic usage of medical cannabis
and obtain appropriate services or treatment for problematic usage, and
  (d) other information as determined by the executive director.
  7.  Registered organizations shall not be managed by or employ  anyone
who  has  been  convicted within three years of the date of hire, of any
felony related to the functions  or  duties  of  operating  a  business,
except  that  if  the  executive director determines that the manager or
employee is otherwise suitable to be hired, and hiring  the  manager  or
employee  would  not  compromise  public  safety, the executive director
shall conduct a thorough review of the nature of the crime,  conviction,
circumstances,  and evidence of rehabilitation of the manager or employ-
ee, and shall evaluate the suitability of the manager or employee  based
on  the evidence found through the review. In determining which offenses
are substantially related to the functions  or  duties  of  operating  a
business,  the  executive director shall include, but not be limited to,
the following:
  (a) a felony conviction involving fraud, money laundering, forgery and
other unlawful conduct related to owning and operating a business; and
  (b) a felony conviction for hiring, employing  or  using  a  minor  in
transporting,  carrying,  selling,  giving  away, preparing for sale, or
peddling, any  controlled  substance,  or  selling,  offering  to  sell,
furnishing, offering to furnish, administering, or giving any controlled
substance to a minor.
  A felony conviction for the sale or possession of drugs, narcotics, or
controlled  substances  is  not  substantially related. This subdivision
shall only apply to managers or employees who come into contact with  or
handle medical cannabis.
  8.  Manufacturing  of  medical  cannabis  by a registered organization
shall only be done in an indoor, enclosed, secure  facility  located  in
New  York  state, which may include a greenhouse. The executive director
shall promulgate regulations establishing requirements for such  facili-
ties.
  9.  Dispensing  of medical cannabis by a registered organization shall
only be done in an indoor, enclosed, secure facility located in New York
state, which may include a  greenhouse.  The  executive  director  shall
promulgate regulations establishing requirements for such facilities.
  10.  A registered organization may contract with a person or entity to
provide facilities, equipment or services  that  are  ancillary  to  the
registered  organization's  functions  or  activities under this article
including, but not  limited  to,  shipping,  maintenance,  construction,

A. 1617--B                         20

repair,  and  security,  provided  that  the  person or entity shall not
perform any function or activity directly involving the planting,  grow-
ing,  tending,  harvesting, processing, or packaging of cannabis plants,
medical  cannabis,  or  medical  cannabis products being produced by the
registered organization; or any other function directly involving  manu-
facturing  or  retailing  of  medical cannabis. All laws and regulations
applicable to such facilities, equipment, or services shall apply to the
contract. The registered organization and other parties to the  contract
shall  each be responsible for compliance with such laws and regulations
under the contract. The executive director may make regulations consist-
ent with this article relating to contracts  and  parties  to  contracts
under this subdivision.
  11. A registered organization shall, based on the findings of an inde-
pendent  laboratory,  provide  documentation  of the quality, safety and
clinical strength of the medical cannabis manufactured or  dispensed  by
the registered organization to the office and to any person or entity to
which the medical cannabis is sold or dispensed.
  12.  A  registered  organization  shall be deemed to be a "health care
provider" for the purposes of title two-D of article two of  the  public
health law.
  13.  Medical  cannabis  shall  be  dispensed to a certified patient or
designated caregiver in a  sealed  and  properly  labeled  package.  The
labeling  shall  contain: (a) the information required to be included in
the receipt provided to the certified patient or designated caregiver by
the registered organization; (b) the packaging date; (c) any  applicable
date  by  which the medical cannabis should be used; (d) a warning stat-
ing, "This product is for medicinal use only. Women should  not  consume
during  pregnancy  or  while  breastfeeding  except on the advice of the
certifying health care practitioner, and in the  case  of  breastfeeding
mothers,  including the infant's pediatrician. This product might impair
the ability to drive. Keep out of reach of children."; (e) the amount of
individual doses contained within; and (f) a warning  that  the  medical
cannabis  must  be  kept  in  the  original  container  in  which it was
dispensed.
  14. The executive director is authorized to make rules and regulations
restricting the advertising and marketing of medical cannabis.
  § 35. Registering of registered organizations.   1. (a)  An  applicant
for  registration as a registered organization under section thirty-four
of this article shall include such information prepared in  such  manner
and  detail  as  the  executive  director 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 described in the application,  or
in the alternative posts a bond of not less than two million dollars;
  (C)  is  able  to  maintain  effective security and control to prevent
diversion, abuse, and other illegal conduct relating  to  the  cannabis;
and
  (D)  is  able to comply with all applicable state laws and regulations
relating to the activities in which  it  intends  to  engage  under  the
registration;

A. 1617--B                         21

  (iii) that the applicant has entered into a labor peace agreement with
a  bona fide labor organization that is actively engaged in representing
or attempting to represent the applicant's employees and the maintenance
of such a labor peace agreement shall be an ongoing  material  condition
of certification;
  (iv)  the  applicant's  status as a for-profit business entity or not-
for-profit corporation; and
  (v) the application shall include  the  name,  residence  address  and
title  of  each of the officers and directors and the name and residence
address of any person or entity that is a member of the applicant.  Each
such person, if an individual, or lawful representative if a legal enti-
ty, shall submit an affidavit with the application setting forth:
  (A)  any  position of management or ownership during the preceding ten
years of a twenty per centum or greater interest in any other  business,
located in or outside this state, manufacturing or distributing drugs;
  (B)  whether  such person or any such business has been convicted of a
felony or had a registration or license  suspended  or  revoked  in  any
administrative or judicial proceeding; and
  (C)  such  other  information as the executive director may reasonably
require.
  2. The applicant shall be under a continuing duty  to  report  to  the
office any change in facts or circumstances reflected in the application
or  any  newly  discovered  or  occurring  fact or circumstance which is
required to be included in the application.
  3. (a) The executive director shall grant a registration 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 cannabis;
  (ii) the applicant will be able to comply with  all  applicable  state
laws;
  (iii)  the  applicant  and its officers are ready, willing and able to
properly carry on the manufacturing or distributing activity for which a
registration is sought;
  (iv) the applicant possesses or has the right to use sufficient  land,
buildings  and  equipment to properly carry on the activity described in
the application;
  (v) it is in the public interest that such  registration  be  granted,
including but not limited to:
  (A)  whether the number of registered organizations in an area will be
adequate or excessive to reasonably serve the area;
  (B) whether the registered organization is  a  minority  and/or  woman
owned business enterprise or a service-disabled veteran-owned business;
  (C)   whether  the  registered  organization  provides  education  and
outreach to practitioners;
  (D) whether the registered  organization  promotes  the  research  and
development of medical cannabis and patient outreach; and
  (E)  the  affordability  of  medical  cannabis products offered by the
registered organization;
  (vi) the applicant and its managing officers are of good moral charac-
ter;
  (vii) the applicant has entered into a labor peace  agreement  with  a
bona fide labor organization that is actively engaged in representing or
attempting  to  represent the applicant's employees; and the maintenance
of such a labor peace agreement shall be an ongoing  material  condition
of registration; and

A. 1617--B                         22

  (viii)  the  applicant satisfies any other conditions as determined by
the executive director.
  (b)  If  the  executive  director  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 the denial is based.  Within  thirty
days  of  the  receipt  of such notification, the applicant may submit a
written request to the executive director to appeal the decision.
  (c) The fee for a registration under this section shall be  an  amount
determined  by  the  office  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
  (iv) such other information as the executive director shall reasonably
provide to assure compliance with this article.
  (e)  Upon application of a registered organization, a registration may
be amended to allow the registered organization to relocate  within  the
state  or  to add or delete permitted registered organization activities
or facilities. The fee for such amendment shall  be  two  hundred  fifty
dollars.
  4.  A  registration  issued  under this section shall be valid for two
years from the date of issue, except that in  order  to  facilitate  the
renewals  of  such  registrations,  the  executive director 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
exceeding an additional eleven months.
  5.  (a) An application for the  renewal  of  any  registration  issued
under  this  section  shall  be  filed with the office 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 executive director, 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 executive director may require,
including but not limited to:
  (i) any material change in the  circumstances  or  factors  listed  in
subdivision one of this section; and
  (ii)  every known charge or investigation, pending or concluded during
the period of the registration, by any  governmental  or  administrative
agency with respect to:
  (A)  each  incident  or alleged incident involving the theft, loss, or
possible diversion of medical cannabis manufactured  or  distributed  by
the applicant; and
  (B)  compliance  by  the  applicant  with  the  laws of the state with
respect to any substance listed in section thirty-three hundred  six  of
the public health law.
  (c)  An  applicant  for  renewal  shall  be under a continuing duty to
report to the office 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.

A. 1617--B                         23

  (d) If the executive director is not  satisfied  that  the  registered
organization  applicant is entitled to a renewal of the registration, he
or she shall within a reasonably practicable time as determined  by  the
executive director, serve upon the registered organization or its attor-
ney  of  record  in  person  or by registered or certified mail an order
directing the registered organization to show cause why its  application
for  renewal should not be denied. The order shall specify in detail the
respects in which the applicant has not satisfied the executive director
that the registration should be renewed.
  6. (a) The executive director shall renew a registration unless he  or
she determines and finds that:
  (i)  the  applicant  is  unlikely  to  maintain or be able to maintain
effective control against diversion;
  (ii) the applicant is unlikely to comply with all state laws  applica-
ble to the activities in which it may engage under the registration;
  (iii)  it  is  not  in  the  public interest to renew the registration
because the number of registered organizations in an area  is  excessive
to reasonably serve the area; or
  (iv)  the  applicant has either violated or terminated its labor peace
agreement.
  (b) For purposes of this section, proof that  a  registered  organiza-
tion,  during  the  period  of  its registration, has failed to maintain
effective control against diversion,  violates  any  provision  of  this
article,  or has knowingly or negligently failed to comply with applica-
ble state laws relating to the activities in which it engages under  the
registration,  shall  constitute  grounds for suspension, termination or
limitation of the registered organization's registration  or  as  deter-
mined  by the executive director. The registered organization shall also
be under a continuing duty to  report  to  the  authority  any  material
change or fact or circumstance to the information provided in the regis-
tered organization's application.
  7.  The  office  may suspend or terminate the registration of a regis-
tered organization, on grounds and using procedures under  this  article
relating  to a license, to the extent consistent with this article.  The
authority shall suspend or terminate the registration in the event  that
a  registered  organization  violates or terminates the applicable labor
peace agreement. Conduct in  compliance  with  this  article  which  may
violate  conflicting  federal  law,  shall  not be grounds to suspend or
terminate a registration.
  8. A registered organization that manufactures  medical  cannabis  may
have  no  more  than  four dispensing sites wholly owned and operated by
such registered organization. The executive director shall  ensure  that
such  registered  organizations  and dispensing sites are geographically
distributed across the state and that their ownership reflects the demo-
graphics of the state. The executive director shall register  additional
registered organizations reflecting the demographics of the state.
  §  36. Reports of registered organizations.  1. The executive director
shall, by regulation,  require  each  registered  organization  to  file
reports  by  the registered organization during a particular period. The
executive director shall determine the information to  be  reported  and
the forms, time, and manner of the reporting.
  2.  The  executive  director shall, by regulation, require each regis-
tered organization to adopt  and  maintain  security,  tracking,  record
keeping,  record  retention  and  surveillance  systems, relating to all
medical cannabis at every stage of acquiring,  possession,  manufacture,

A. 1617--B                         24

sale,  delivery, transporting, distributing, or dispensing by the regis-
tered organization, subject to regulations of the executive director.
  §  37. Evaluation; research programs; report by office.  1. The execu-
tive director may provide for the analysis and evaluation of the  opera-
tion  of this article.  The executive director may enter into agreements
with one or more persons, not-for-profit corporations or other organiza-
tions, for the performance of an evaluation of  the  implementation  and
effectiveness of this article.
  2.  The  office  may develop, seek any necessary federal approval for,
and carry out research programs relating to  medical  use  of  cannabis.
Participation  in  any  such  research program shall be voluntary on the
part of practitioners, patients, and designated caregivers.
  3. The office shall report every two years, beginning two years  after
the  effective date of this chapter, to the governor and the legislature
on the medical use of cannabis under this article and  make  appropriate
recommendations.
  §  38.  Cannabis  research  license.   1. The executive director shall
establish a  cannabis  research  license  that  permits  a  licensee  to
produce, process, purchase and possess cannabis for the following limit-
ed research purposes:
  (a) to test chemical potency and composition levels;
  (b)  to  conduct  clinical  investigations  of  cannabis-derived  drug
products;
  (c) to conduct research on the efficacy and  safety  of  administering
cannabis as part of medical treatment; and
  (d) to conduct genomic or agricultural research.
  2. As part of the application process for a cannabis research license,
an  applicant  must  submit  to the office a description of the research
that is intended to be conducted as well as the amount of cannabis to be
grown or purchased. The office  shall  review  an  applicant's  research
project  and  determine whether it meets the requirements of subdivision
one of this section. In addition, the office shall assess  the  applica-
tion based on the following criteria:
  (a) project quality, study design, value, and impact;
  (b)  whether  the  applicant has the appropriate personnel, expertise,
facilities and infrastructure, funding,  and  human,  animal,  or  other
approvals in place to successfully conduct the project; and
  (c)  whether  the  amount  of cannabis to be grown or purchased by the
applicant is consistent with the  project's  scope  and  goals.  If  the
office  determines  that the research project does not meet the require-
ments of subdivision one  of  this  section,  the  application  must  be
denied.
  3. A cannabis research licensee may only sell cannabis grown or within
its  operation  to  other  cannabis  research  licensees. The office may
revoke a cannabis research license for violations of this subsection.
  4. A cannabis research licensee may contract with the higher education
institutions to perform research in conjunction with the university. All
research projects, entered into under this section must be  approved  by
the office and meet the requirements of subdivision one of this section.
  5. In establishing a cannabis research license, the executive director
may adopt regulations on the following:
  (a) application requirements;
  (b)  cannabis research license renewal requirements, including whether
additional research projects may be added or considered;
  (c) conditions for license revocation;

A. 1617--B                         25

  (d) security measures to ensure cannabis is not diverted  to  purposes
other than research;
  (e)  amount  of  plants,  useable  cannabis, cannabis concentrates, or
cannabis-infused products a licensee may have on its premises;
  (f) licensee reporting requirements;
  (g) conditions under which cannabis grown by licensed cannabis produc-
ers and other product types from licensed  cannabis  processors  may  be
donated to cannabis research licensees; and
  (h) any additional requirements deemed necessary by the office.
  6. A cannabis research license issued pursuant to this section must be
issued  in  the  name of the applicant and specify the location at which
the cannabis researcher intends to operate, which  must  be  within  the
state of New York.
  7. The application fee for a cannabis research license shall be deter-
mined by the executive director on an annual basis.
  8. Each cannabis research licensee shall issue an annual report to the
office.  The office shall review such report and make a determination as
to whether the research project continues to meet  the  research  quali-
fications under this section.
  §  39. Registered organizations and adult-use cannabis.  1. The execu-
tive director shall have the authority to  grant  some  or  all  of  the
registered  organizations  registered  with the department of health and
currently registered and in good standing with the office,  the  ability
to  be  licensed  to  cultivate, process, or sell adult-use cannabis and
cannabis products, pursuant to any fees, rules or conditions  prescribed
by  the executive director in regulation and subject to the restrictions
on licensed adult-use cultivators and processors on having any ownership
interest in a licensed adult-use  retail  dispensary  pursuant  to  this
chapter.
  2.  Prior to granting the licenses provided by subdivision one of this
section, the office shall assess a  registered  organization  registered
prior to the enactment of this chapter with a one-time special licensing
fee  so  that  they  may become authorized to bypass the restrictions on
having any ownership interest in a licensed adult-use retail dispensary,
provided that the fees generated from such assessment shall be  used  to
administer  incubators  and low or zero-interest loans and other assist-
ance to qualified social equity applicants. The  timing  and  manner  in
which  registered  organizations  may be granted such authority shall be
determined by the executive director in regulation.
  § 40. Relation to other laws.  1. The provisions of this article shall
apply, except that where a provision  of  this  article  conflicts  with
another provision of this chapter, this article shall apply.
  2. Medical cannabis shall not be deemed to be a "drug" for purposes of
article one hundred thirty-seven of the education law.
  §  41.  Protections  for  the  medical use of cannabis.   1. Certified
patients, designated caregivers, designated caregiver facilities,  prac-
titioners,  registered  organizations  and  the  employees of registered
organizations, and cannabis researchers shall not be subject to  arrest,
prosecution, or penalty in any manner, or denied any right or privilege,
including  but  not limited to civil penalty or disciplinary action by a
business or occupational or  professional  licensing  board  or  bureau,
solely  for the certified medical use or manufacture of cannabis, or for
any other action or conduct in accordance with this article.
  2. Being a certified patient shall be deemed to be having a "disabili-
ty" under article fifteen of the executive law, section forty-c  of  the
civil  rights law, sections 240.00, 485.00, and 485.05 of the penal law,

A. 1617--B                         26

and section 200.50 of the criminal procedure law. This subdivision shall
not bar the  enforcement  of  a  policy  prohibiting  an  employee  from
performing  his  or her employment duties while impaired by a controlled
substance. This subdivision shall not require any person or entity to do
any  act  that  would  put  the  person or entity in direct violation of
federal law or cause it to lose a federal contract or funding.
  3. The fact that a person is a  certified  patient  and/or  acting  in
accordance with this article, shall not be a consideration in a proceed-
ing  pursuant  to applicable sections of the domestic relations law, the
social services law and the family court act.
  4. (a) Certification applications, certification forms, any  certified
patient  information contained within a database, and copies of registry
identification cards shall be deemed exempt from public disclosure under
sections eighty-seven and eighty-nine of the public officers law.
  (b) The name, contact information, and other information  relating  to
practitioners  registered  with  the  office under this article shall be
public information and shall be maintained by the executive director  on
the office's website accessible to the public in searchable form. Howev-
er, if a practitioner notifies the office in writing that he or she does
not  want  his or her name and other information disclosed, that practi-
tioner's name and other  information  shall  thereafter  not  be  public
information  or  maintained  on the office's website, unless the practi-
tioner cancels the request.
  § 42. Regulations.   The executive  director  shall  promulgate  regu-
lations  in  consultation  with the cannabis advisory board to implement
this article.
  § 43. Suspend; terminate.  Based upon the recommendation of the execu-
tive director and/or the superintendent of state police that there is  a
risk to the public health or safety, the governor may immediately termi-
nate all licenses issued to registered organizations.
  § 44. Pricing.  Registered organizations shall submit documentation to
the executive director of any change in pricing per dose for any medical
cannabis  product  within fifteen days of such change. Prior approval by
the executive director shall  not  be  required  for  any  such  change;
provided however that the executive director is authorized to modify the
price per dose for any medical cannabis product if necessary to maintain
public access to appropriate medication.

                                ARTICLE 4
                           ADULT-USE CANNABIS
Section 60. Licenses issued.
        61. License application.
        62. Information to be requested in applications for licenses.
        63. Fees.
        64. Selection criteria.
        65. Limitations of licensure; duration.
        66. License renewal.
        67. Amendments;  changes  in ownership and organizational struc-
              ture.
        68. Adult-use cultivator license.
        69. Adult-use processor license.
        70. Adult-use cooperative license.
        71. Adult-use distributor license.
        72. Adult-use retail dispensary license.
        73. Micro business license.

A. 1617--B                         27

        74. Notification to municipalities of adult-use  retail  dispen-
              sary.
        75. On-site  consumption  license;  provisions governing on-site
              consumption licenses.
        76. Record keeping and tracking.
        77. Inspections and ongoing requirements.
        78. Adult-use cultivators, processors or distributors not to  be
              interested in retail dispensaries.
        79. Packaging and labeling of adult-use cannabis products.
        80. Laboratory testing.
        81. Provisions  governing  the  cultivation  and  processing  of
              adult-use cannabis.
        82. Provisions governing the distribution of adult-use cannabis.
        83. Provisions governing adult-use cannabis retail dispensaries.
        84. Adult-use cannabis advertising.
        85. Social and  economic  equity,  minority,  women-owned  busi-
              nesses, and disadvantaged farmers; incubator program.
        86. Regulations.
  §  60.  Licenses  issued.    The  following kinds of licenses shall be
issued by  the  executive  director  for  the  cultivation,  processing,
distribution  and sale of cannabis, cannabis producers, and concentrated
cannabis to cannabis consumers:
  1. Adult-use cultivator license;
  2. Adult-use processor license;
  3. Adult-use cooperative license;
  4. Adult-use distributor license;
  5. Adult-use retail dispensary license;
  6. On-site consumption license;
  7. Microbusiness license;
  8. Delivery license;
  9. Nursery license; and
  10. Any other type of license as prescribed by the executive  director
in regulation.
  §  61. License Application.  1. Any person may apply to the office for
a license to cultivate, process, distribute or dispense cannabis  within
this  state  for sale. Such application shall be in writing and verified
and shall contain such information as the  office  shall  require.  Such
application  shall  be  accompanied  by  a check or draft for the amount
required by this article for such license. If the office  shall  approve
the  application,  it  shall  issue  a  license in such form as shall be
determined by its rules. Such license shall contain a description of the
licensed premises and in form and in substance shall be a license to the
person therein specifically designated to cultivate, process, distribute
or dispense cannabis in the premises therein specifically licensed.
  2. Except as otherwise provided in this article,  a  separate  license
shall  be  required  for each facility at which cultivation, processing,
distribution or retail dispensing is conducted.
  3. An applicant shall not be denied a license under this article based
solely on a conviction for a violation of article two hundred twenty  or
section  240.36  of the penal law, prior to the date article two hundred
twenty-two of the penal law took effect, or a conviction for a violation
of article two hundred twenty-two of the penal law after  the  effective
date of this chapter.
  §  62.  Information  to be requested in applications for licenses.  1.
The office shall have the authority to prescribe the manner and form  in

A. 1617--B                         28

which an application must be submitted to the office for licensure under
this article.
  2.  The executive director is authorized to adopt regulations, includ-
ing by emergency rule, establishing information which must  be  included
on an application for licensure under this article. Such information may
include, but is not limited to:  information about the applicant's iden-
tity,  including  racial  and ethnic diversity; ownership and investment
information, including the corporate structure; evidence of  good  moral
character,  including the submission of fingerprints by the applicant to
the division of criminal justice services; information about  the  prem-
ises  to  be  licensed;  financial statements; and any other information
prescribed by regulation.
  3. All license applications shall be signed by the  applicant  (if  an
individual),  by  a managing member (if a limited liability company), by
an officer (if a corporation), or by all partners  (if  a  partnership).
Each  person  signing  such  application shall verify it or affirm it as
true under the penalties of perjury.
  4. All license or permit applications shall be accompanied by a check,
draft or other forms of payment as the office may require  or  authorize
in the amount required by this article for such license or permit.
  5.  If there be any change, after the filing of the application or the
granting of a license, in any of the facts required to be set  forth  in
such application, a supplemental statement giving notice of such change,
cost and source of money involved in the change, duly verified, shall be
filed  with  the office within ten days after such change. Failure to do
so shall, if willful and deliberate, be cause for denial  or  revocation
of the license.
  6. In giving any notice, or taking any action in reference to a regis-
tered  organization  or  licensee of a licensed premises, the office may
rely upon the information furnished  in  such  application  and  in  any
supplemental  statement connected therewith, and such information may be
presumed to be correct, and shall be binding upon a registered organiza-
tions, licensee or licensed premises  as  if  correct.  All  information
required  to be furnished in such application or supplemental statements
shall be deemed material in any prosecution for perjury, any  proceeding
to  revoke,  cancel or suspend any license, and in the office's determi-
nation to approve or deny the license.
  § 63. Fees. 1. The office shall have the authority  to  charge  appli-
cants for licensure under this article a non-refundable application fee.
Such  fee  may  be  based  on  the type of licensure sought, cultivation
and/or production volume, or any other  factors  deemed  reasonable  and
appropriate  by  the  office  to  achieve the policy and purpose of this
chapter.
  2. The office shall have the authority to charge licensees a  biennial
license  fee.  Such  fee  shall be based on the amount of cannabis to be
cultivated, processed, distributed and/or dispensed by the  licensee  or
the gross annual receipts of the licensee for the previous license peri-
od,  and  any  other  factors  deemed  reasonable and appropriate by the
office.
  3. The office shall have the authority to waive  or  reduce  fees  for
social and economic equity applicants.
  §  64.  Selection  criteria.   1. The executive director shall develop
regulations for determining whether or not an applicant should be grant-
ed the privilege of an adult-use cannabis license,  based  on,  but  not
limited to, the following criteria:

A. 1617--B                         29

  (a)  the  applicant will be able to maintain effective control against
the illegal diversion of cannabis;
  (b)  the  applicant  will  be able to comply with all applicable state
laws and regulations;
  (c) the applicant and its officers are ready,  willing,  and  able  to
properly carry on the activities for which a license is sought;
  (d)  the  applicant possesses or has the right to use sufficient land,
buildings, and equipment to properly carry on the activity described  in
the application;
  (e) the applicant qualifies as a social equity applicant or sets out a
plan for benefiting communities and people disproportionally impacted by
cannabis law enforcement;
  (f)  it is in the public interest that such license be granted, taking
into consideration, but not limited to, the following criteria:
  (i) that it is a privilege, and not a right,  to  cultivate,  process,
distribute, and sell cannabis;
  (ii) the number, classes, and character of other licenses in proximity
to the location and in the particular municipality or subdivision there-
of;
  (iii)  evidence  that  all  necessary  licenses  and permits have been
obtained from the state and all other governing bodies;
  (iv) effect of the grant of the license  on  pedestrian  or  vehicular
traffic, and parking, in proximity to the location;
  (v) the existing noise level at the location and any increase in noise
level that would be generated by the proposed premises;
  (vi)  the ability to mitigate adverse environmental impacts, including
but not limited to energy usage and carbon emissions;
  (vii) the effect on the production and availability  of  cannabis  and
cannabis products; and
  (viii) any other factors specified by law or regulation that are rele-
vant  to  determine that granting a license would promote public conven-
ience and advantage and the public interest of the community;
  (g) the applicant and its managing officers are of good moral  charac-
ter  and  do  not  have  an  ownership  or  controlling interest in more
licenses or permits than allowed by this chapter;
  (h) the applicant has entered into a  labor  peace  agreement  with  a
bona-fide labor organization that is actively engaged in representing or
attempting  to  represent the applicant's employees, and the maintenance
of such a labor peace agreement shall be an ongoing  material  condition
of  licensure. In evaluating applications from entities with twenty-five
or more employees, the office shall give priority to applicants that are
a party to a collective bargaining  agreement  with  a  bona-fide  labor
organization  in  New  York or in another state, and uses union labor to
construct its licensed facility;
  (i) the applicant will contribute to communities and people dispropor-
tionately harmed by cannabis law enforcement and report  these  contrib-
utions to the office;
  (j)  if  the  application  is for an adult-use cultivator or processor
license, the environmental impact of the facility to be licensed; and
  (k) the applicant satisfies any other conditions as determined by  the
executive director.
  2.  If  the  executive  director  is  not satisfied that the applicant
should be issued a license, the  executive  director  shall  notify  the
applicant in writing of the specific reason or reasons for denial.

A. 1617--B                         30

  3. The executive director shall have the authority to, in consultation
with  the  cannabis  advisory  board,  determine  the number of licenses
issued pursuant to this article.
  §  65.  Limitations of licensure; duration.  1. 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.
  2. No licensee shall sell, deliver, or give away or cause or permit or
procure  to be sold, delivered or given away any cannabis to any person,
actually or apparently, under the age of  twenty-one  years  unless  the
person  under twenty-one is also a certified patient and the licensee is
appropriately licensed under article three of this chapter.
  3. The office shall have the authority  to  limit,  by  canopy,  plant
count,  square footage or other means, the amount of cannabis allowed to
be grown, processed, distributed or sold by a licensee.
  4. All licenses under this article shall expire two  years  after  the
date of issue.
  § 66. License renewal.  1. Each license, issued pursuant to this arti-
cle,  may  be renewed upon application therefore by the licensee and the
payment of the fee for such license as prescribed by  this  article.  In
the  case of applications for renewals, the office may dispense with the
requirements of such statements as it deems unnecessary in view of those
contained in the application made for the original license, but  in  any
event  the  submission  of photographs of the licensed premises shall be
dispensed with, provided the applicant for such  renewal  shall  file  a
statement  with  the  office to the effect that there has been no alter-
ation of such premises since the original license was issued. The office
may make such rules as it deems necessary, not  inconsistent  with  this
chapter, regarding applications for renewals of licenses and permits and
the time for making the same.
  2.  Each  applicant  must  submit  to  the office documentation of the
racial, ethnic, and gender diversity of the  applicant's  employees  and
owners  prior  to  a  license being renewed. In addition, the office may
create a social responsibility framework agreement and make  the  adher-
ence to such agreement a conditional requirement of license renewal.
  3.  The  office  shall provide an application for renewal of a license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
  4. The office may only issue a renewal license  upon  receipt  of  the
prescribed  renewal  application  and renewal fee from a licensee if, in
addition to the criteria in this section, the licensee's license is  not
under suspension and has not been revoked.
  5.  Each  applicant must maintain a labor peace agreement with a bona-
fide labor organization that is  actively  engaged  in  representing  or
attempting to represent the applicant's employees and the maintenance of
such  a  labor peace agreement shall be an ongoing material condition of
licensure. Each applicant must provide  evidence  of  the  execution  of
their  plan  for benefitting communities and people required for initial
licensing pursuant to section sixty-four of this article.
  § 67. Amendments; changes in ownership and  organizational  structure.
1. Licenses issued pursuant to this article shall specify:
  (a) the name and address of the licensee;
  (b) the activities permitted by the license;
  (c)  the  land,  buildings  and  facilities  that  may be used for the
licensed activities of the licensee;
  (d) a unique license number issued by the office to the licensee; and

A. 1617--B                         31

  (e) such other information as the executive director shall deem neces-
sary to assure compliance with this chapter.
  2.  Upon  application  of  a  licensee to the office, a license may be
amended to allow the licensee to relocate within the state,  to  add  or
delete  licensed  activities or facilities, or to amend the ownership or
organizational structure of the entity that is the licensee. The  execu-
tive director shall establish a fee for such amendments.
  3.  A  license shall become void by a change in ownership, substantial
corporate change or location without prior written approval of the exec-
utive director. The executive director may promulgate regulations allow-
ing for certain types of changes in ownership without the need for prior
written approval.
  4. For purposes of this section, "substantial corporate change"  shall
mean:
  (a) for a corporation, a change of eighty percent or more of the offi-
cers  and/or directors, or a transfer of eighty percent or more of stock
of such corporation, or an existing stockholder obtaining eighty percent
or more of the stock of such corporation; or
  (b) for a limited liability company, a change  of  eighty  percent  or
more  of  the  managing  members of the company, or a transfer of eighty
percent or more of ownership interest in said company,  or  an  existing
member obtaining a cumulative of eighty percent or more of the ownership
interest in said company.
  §  68.  Adult-use  cultivator  license.   1. An adult-use cultivator's
license shall authorize the  acquisition,  possession,  cultivation  and
sale  of cannabis from the licensed premises of the adult-use cultivator
by such licensee to duly licensed processors in this state.  The  execu-
tive  director  may  establish  regulations  allowing licensed adult-use
cultivators to perform certain types of minimal processing  without  the
need for an adult-use processor license.
  2. For purposes of this section, cultivation shall include, but not be
limited  to, the planting, growing, cloning, harvesting, drying, curing,
grading and trimming of cannabis.
  3. A person holding an adult-use cultivator's license may  apply  for,
and  obtain,  one processor's license and one distributor's license that
may only be used to distribute their own cannabis and cannabis products.
  4. A person holding an adult-use cultivator's  license  may  not  also
hold  a retail dispensary license pursuant to this article and no adult-
use cannabis cultivator  shall  have  a  direct  or  indirect  interest,
including  by stock ownership, interlocking directors, mortgage or lien,
personal or real property, or any other means, in any premises  licensed
as  an  adult-use cannabis retail dispensary or in any business licensed
as an adult-use cannabis retail dispensary pursuant to this article.
  5. A person holding an adult-use cultivator's license may not  hold  a
license  to  distribute  cannabis under this article unless the licensed
cultivator is also licensed as a processor under this article.
  6. No person may have a direct or indirect  financial  or  controlling
interest  in  more than one adult-use cultivator license issued pursuant
to this chapter.
  § 69. Adult-use processor license.   1. A  processor's  license  shall
authorize  the  acquisition, possession, processing and sale of cannabis
from the licensed premises of the adult-use cultivator by such  licensee
to duly licensed distributors.
  2.  For purposes of this section, processing shall include, but not be
limited to, blending, extracting, infusing, packaging, labeling,  brand-

A. 1617--B                         32

ing  and  otherwise  making  or  preparing cannabis products. Processing
shall not include the cultivation of cannabis.
  3. No processor shall be engaged in any other business on the premises
to  be  licensed;  except  that  nothing contained in this chapter shall
prevent a cannabis cultivator, cannabis processor, and cannabis distrib-
utor from operating on the same premises and from a person  holding  all
three licenses.
  4.  No  cannabis  processor licensee may hold more than three cannabis
processor licenses.
  5. No adult-use cannabis processor shall have  a  direct  or  indirect
interest, including by stock ownership, interlocking directors, mortgage
or  lien, personal or real property, or any other means, in any premises
licensed as an adult-use cannabis retail dispensary or in  any  business
licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
article.
  § 70. Adult-use cooperative license.  1. A cooperative  license  shall
authorize  the acquisition, possession, cultivation, processing and sale
from the licensed premises of the adult-use cooperative by such licensee
to duly licensed distributors, on-site consumption sites, and/or  retail
dispensaries; but not directly to cannabis consumers.
  2. To be licensed as an adult-use cooperative, the cooperative must:
  (i)  be  comprised  of residents of the state of New York as a limited
liability company or limited liability partnership under the laws of the
state, or an appropriate business structure as determined by the  execu-
tive director;
  (ii) subordinate capital, both as regards control over the cooperative
undertaking,  and  as  regards  the  ownership of the pecuniary benefits
arising therefrom;
  (iii) be democratically controlled by the members  themselves  on  the
basis of one vote per member;
  (iv)  vest  in  and allocate with priority to and among the members of
all increases arising from their cooperative endeavor in  proportion  to
the members' active participation in the cooperative endeavor; and
  (v)  the  cooperative  must operate according to the seven cooperative
principles published by the International Cooperative Alliance in  nine-
teen hundred ninety-five.
  3.  No  natural  person  shall  be a member of more than one adult-use
cooperative licensed pursuant to this section.
  4. No natural person or member of an adult-use cooperative license may
have a direct or indirect financial or controlling interest in any other
adult-use cannabis license issued pursuant to this chapter.
  5. No adult-use cannabis cooperative shall have a direct  or  indirect
interest, including by stock ownership, interlocking directors, mortgage
or  lien, personal or real property, or any other means, in any premises
licensed as an adult-use cannabis retail dispensary or in  any  business
licensed  as  an  adult-use  cannabis retail dispensary pursuant to this
chapter.
  6. The executive director shall promulgate regulations governing coop-
erative licenses, including, but not limited to,  the  establishment  of
canopy  limits on the size and scope of cooperative licensees, and other
measures designed to incentivize the use and licensure of cooperatives.
  § 71. Adult-use distributor license.  1. A distributor's license shall
authorize the acquisition, possession, distribution and sale of cannabis
from the licensed premises of a licensed adult-use processor, microbusi-
ness or registered organization authorized pursuant to this  chapter  to
sell adult-use cannabis, to duly licensed retail dispensaries.

A. 1617--B                         33

  2. No distributor shall have a direct or indirect economic interest in
any adult-use retail dispensary licensed pursuant to this article, or in
any registered organization registered pursuant to article three of this
chapter.  This  restriction shall not prohibit a registered organization
authorized  pursuant  to section thirty-nine of this chapter, from being
granted  licensure  by  the  office  to  distribute  adult-use  cannabis
products cultivated and processed by the registered organization only to
the  registered  organization's own licensed adult-use retail dispensar-
ies.
  3. Nothing in subdivision two of this section shall prevent a distrib-
utor from charging an appropriate fee for the distribution of  cannabis,
including based on the volume of cannabis distributed.
  §  72.  Adult-use  retail dispensary license.   1. A retail dispensary
license shall authorize the acquisition, possession and sale of cannabis
from the licensed premises of the retail dispensary by such licensee  to
cannabis consumers.
  2.  No  person  may have a direct or indirect financial or controlling
interest in more than three retail dispensary licenses  issued  pursuant
to this chapter.
  3.  No  person  holding  a  retail dispensary license may also hold an
adult-use cultivation, processor, microbusiness, cooperative or distrib-
utor license pursuant to this article.
  4. No retail license shall be granted for  any  premises,  unless  the
applicant  shall  be  the owner thereof, or shall be able to demonstrate
possession of the premises within thirty days of initial approval of the
license through a lease, management agreement or other agreement  giving
the applicant control over the premises, in writing, for a term not less
than the license period.
  5. With the exception of microbusiness licensees, no premises shall be
licensed  to  sell  cannabis  products,  unless  said  premises shall be
located in a store, the principal entrance to which shall  be  from  the
street  level and located on a public thoroughfare in premises which may
be occupied, operated or conducted for business, trade or industry or on
an arcade or sub-surface thoroughfare leading to a railroad terminal.
  6. No cannabis retail license shall be granted for any premises within
two hundred feet of a school grounds as such  term  is  defined  in  the
education law.
  §  73. Microbusiness license. 1. A microbusiness license shall author-
ize the limited cultivation, processing, distribution and dispensing  of
adult use cannabis and cannabis products.
  2. A microbusiness licensee may not hold interest in any other license
and  may  only  distribute  its  own  cannabis  and cannabis products to
dispensaries.
  3. The size and scope of a microbusiness shall be determined by  regu-
lation by the executive director in consultation with the cannabis advi-
sory board.
  §  74.  Notification to municipalities of adult-use retail dispensary.
1. Not less than thirty days nor more  than  two  hundred  seventy  days
before  filing  an  application  for  licensure as an adult-use cannabis
retail dispensary, an applicant shall notify the municipality  in  which
the  premises  is  located  of  such  applicant's intent to file such an
application.
  2. Such notification shall be made to the clerk of the  village,  town
or  city,  as  the  case  may  be,  wherein the premises is located. For
purposes of this section:

A. 1617--B                         34

  (a) notification need only be given to the clerk of a village when the
premises is located within the boundaries of the village; and
  (b)  in the city of New York, the community board established pursuant
to section twenty-eight hundred of the New York city charter with juris-
diction over the area in which the premises is located shall be  consid-
ered the appropriate public body to which notification shall be given.
  3. Such notification shall be made in such form as shall be prescribed
by the rules of the office.
  4.  A  municipality may express an opinion for or against the granting
of such application. Any such opinion shall be deemed part of the record
upon which the office makes its  determination  to  grant  or  deny  the
application.
  5.  Such  notification  shall  be  made by: (a) certified mail, return
receipt requested; (b) overnight delivery service with proof of mailing;
or (c) personal service upon the  offices  of  the  clerk  or  community
board.
  6.  The office shall require such notification to be on a standardized
form that can be obtained on the internet or from the  office  and  such
notification to include:
  (a)  the trade name or "doing business as" name, if any, of the estab-
lishment;
  (b) the full name of the applicant;
  (c) the street address  of  the  establishment,  including  the  floor
location or room number, if applicable;
  (d)  the  mailing  address of the establishment, if different than the
street address;
  (e) the name, address and telephone number of the attorney  or  repre-
sentative of the applicant, if any;
  (f) a statement indicating whether the application is for:
  (i) a new establishment;
  (ii) a transfer of an existing licensed business;
  (iii) a renewal of an existing license; or
  (iv) an alteration of an existing licensed premises;
  (g)  if  the  establishment is a transfer or previously licensed prem-
ises, the name of the old establishment and such establishment's  regis-
tration or license number;
  (h)  in the case of a renewal or alteration application, the registra-
tion or license number of the applicant; and
  (i) the type of license.
  §  75.  On-site  consumption  license;  provisions  governing  on-site
consumption  licenses.  1. No licensed adult-use cannabis retail dispen-
sary shall be granted a cannabis on-site  consumption  license  for  any
premises,  unless  the applicant shall be the owner thereof, or shall be
in possession of said premises under a lease, in writing, for a term not
less than the license period except,  however,  that  such  license  may
thereafter  be renewed without the requirement of a lease as provided in
this section. This subdivision shall not apply to premises  leased  from
government agencies; provided, however, that the appropriate administra-
tor  of  such government agency provides some form of written documenta-
tion regarding the terms of occupancy under which the applicant is leas-
ing said premises from the government agency  for  presentation  to  the
office  at the time of the license application. Such documentation shall
include the terms of occupancy between the applicant and the  government
agency, including, but not limited to, any short-term leasing agreements
or written occupancy agreements.

A. 1617--B                         35

  2. No adult-use cannabis retail dispensary shall be granted a cannabis
on-site  consumption license for any premises within two hundred feet of
school grounds as such term is defined in the education law.
  3.  The office may consider any or all of the following in determining
whether public convenience and advantage and the public interest will be
promoted by the granting of a license for an on-site  cannabis  consump-
tion at a particular location:
  (a)  that  it  is a privilege, and not a right, to cultivate, process,
distribute, and sell cannabis;
  (b) the number, classes, and character of other licenses in  proximity
to the location and in the particular municipality or subdivision there-
of;
  (c)  evidence  that  all  necessary  licenses  and  permits  have been
obtained from the state and all other governing bodies;
  (d) whether there is a demonstrated need for spaces to consume  canna-
bis;
  (e)  effect  of  the  grant  of the license on pedestrian or vehicular
traffic, and parking, in proximity to the location;
  (f) the existing noise level at the location and any increase in noise
level that would be generated by the proposed premises; and
  (g) any other factors specified by law or regulation that are relevant
to determine that granting a license would  promote  public  convenience
and advantage and the public interest of the community.
  4.  If  the  office  shall  disapprove  an  application for an on-site
consumption license, it shall state and file in its offices the  reasons
therefor  and  shall  notify  the  applicant thereof. Such applicant may
thereupon apply to the office for a review of such action in a manner to
be prescribed by the rules of the office.
  5. No adult-use cannabis on-site consumption licensee shall keep  upon
the  licensed  premises  any  adult-use  cannabis  products except those
purchased from a licensed distributor, adult-use cooperative, or  micro-
business  authorized  to sell adult-use cannabis, and only in containers
approved by the office. Such containers shall have affixed thereto  such
labels  as  may  be  required  by the rules of the office.   No cannabis
retail licensee for on-site  consumption  shall  reuse,  refill,  tamper
with,  adulterate,  dilute  or  fortify the contents of any container of
cannabis products as received from the manufacturer or distributor.
  6. No cannabis on-site consumption licensee  shall  sell,  deliver  or
give  away, or cause or permit or procure to be sold, delivered or given
away any cannabis for consumption  on  the  premises  where  sold  in  a
container or package containing more than one gram of cannabis flower or
one serving of cannabis infused product.
  7.  Except  where  a  permit  to do so is obtained pursuant to section
405.10 of the penal law, no cannabis on-site consumption licensee  shall
suffer,  permit,  or promote an event on its premises wherein any person
shall use, explode, or cause to explode, any fireworks  or  other  pyro-
technics  in  a building as defined in paragraph e of subdivision one of
section 405.10 of the penal law, that is  covered  by  such  license  or
possess  such fireworks or pyrotechnics for such purpose. In addition to
any other penalty provided by law, a violation of this subdivision shall
constitute an adequate ground for instituting a proceeding  to  suspend,
cancel,  or  revoke  the  license of the violator in accordance with the
applicable procedures specified in this chapter;  provided  however,  if
more than one licensee is participating in a single event, upon approval
by the office, only one licensee must obtain such permit.

A. 1617--B                         36

  8.  No  premises  licensed  to  sell  adult-use  cannabis  for on-site
consumption under this chapter shall be permitted to have any opening or
means of entrance or  passageway  for  persons  or  things  between  the
licensed premises and any other room or place in the building containing
the  licensed  premises,  or  any adjoining or abutting premises, unless
ingress and egress is restricted by an employee, agent of the  licensee,
or  other  method  approved  by  the office of controlling access to the
facility.
  9. Each cannabis on-site consumption licensee shall keep and  maintain
upon the licensed premises, adequate records of all transactions involv-
ing the business transacted by such licensee which shall show the amount
of  cannabis products, in an applicable metric measurement, purchased by
such licensee together with the names, license  numbers  and  places  of
business  of  the  persons from whom the same were purchased, the amount
involved in such purchases, as well as the sales  of  cannabis  products
made  by  such  licensee.  The office is hereby authorized to promulgate
rules and regulations permitting an on-site licensee  operating  two  or
more  premises separately licensed to sell cannabis products for on-site
consumption to inaugurate or retain in this state methods  or  practices
of  centralized  accounting,  bookkeeping,  control  records, reporting,
billing, invoicing or payment respecting purchases, sales or  deliveries
of cannabis products, or methods and practices of centralized receipt or
storage  of  cannabis  products within this state without segregation or
earmarking for any such  separately  licensed  premises,  wherever  such
methods  and  practices  assure  the  availability,  at  such licensee's
central or main office in this state, of data reasonably needed for  the
enforcement  of  this  chapter.  Such  records  shall  be  available for
inspection by any authorized representative of the office.
  10. All retail licensed premises shall be subject to inspection by any
peace officer, acting pursuant to his or her special duties,  or  police
officer and by the duly authorized representatives of the office, during
the  hours  when the said premises are open for the transaction of busi-
ness.
  11. A cannabis on-site consumption licensee shall not provide cannabis
products to any person under the age of twenty-one.
  § 76. Record keeping and tracking. 1. The executive director shall, by
regulation, require each licensee pursuant to this article to adopt  and
maintain  security,  tracking,  record  keeping,  record  retention  and
surveillance systems, relating to all cannabis at every stage of acquir-
ing, possession, manufacture, sale, delivery, transporting,  testing  or
distributing  by  the  licensee, subject to regulations of the executive
director.
  2. Every licensee shall keep and maintain upon the  licensed  premises
adequate  books  and  records of all transactions involving the licensee
and sale of its products, which shall include, but is  not  limited  to,
all information required by any rules promulgated by the office.
  3. Each sale shall be recorded separately on a numbered invoice, which
shall  have  printed  thereon  the number, the name of the licensee, the
address of the  licensed  premises,  and  the  current  license  number.
Licensed  producers  shall  deliver  to  the licensed distributor a true
duplicate invoice stating the name and address  of  the  purchaser,  the
quantity  purchased,  description  and  the  price of the product, and a
true, accurate and complete statement of the  terms  and  conditions  on
which such sale is made.

A. 1617--B                         37

  4. Such books, records and invoices shall be kept for a period of five
years  and shall be available for inspection by any authorized represen-
tative of the office.
  5.  Each  adult-use  cannabis  retail  dispensary,  microbusiness, and
on-site consumption licensee shall keep and maintain upon  the  licensed
premises,  adequate  records  of all transactions involving the business
transacted by such licensee which shall show the amount of cannabis,  in
weight,  purchased  by  such  licensee  together with the names, license
numbers and places of business of the persons from whom  the  same  were
purchased,  the  amount involved in such purchases, as well as the sales
of cannabis made by such licensee.
  § 77. Inspections and ongoing requirements. All licensed or  permitted
premises,  regardless  of  the  type  of  premises,  shall be subject to
inspection by the office, by the duly authorized representatives of  the
office,  by  any  peace  officer  acting  pursuant to his or her special
duties, or by a police officer, during the hours when the said  premises
are  open for the transaction of business. The office shall make reason-
able accommodations so that ordinary business  is  not  interrupted  and
safety  and security procedures are not compromised by the inspection. A
person who holds a license or permit must make himself or herself, or an
agent thereof, available and present for any inspection required by  the
office.    Such  inspection may include, but is not limited to, ensuring
compliance by the licensee or permittee with all other applicable build-
ing codes, fire, health, safety, and governmental regulations, including
at the municipal, county, and state level.
  § 78. Adult-use cultivators, processors  or  distributors  not  to  be
interested in retail dispensaries.  1. It shall be unlawful for a culti-
vator, processor, cooperative or distributor licensed under this article
to:
  (a)  be  interested  directly  or indirectly in any premises where any
cannabis product is sold at retail; or in any business devoted wholly or
partially to the sale of any cannabis product at retail by stock  owner-
ship,  interlocking  directors, mortgage or lien or any personal or real
property, or by any other means.
  (b) make, or cause to be made, any loan to any person engaged  in  the
manufacture or sale of any cannabis product at wholesale or retail.
  (c)  make  any  gift  or  render  any  service of any kind whatsoever,
directly or indirectly, to any person licensed under this chapter  which
in  the  judgment  of  the office may tend to influence such licensee to
purchase the product of such cultivator or processor or distributor.
  (d) enter into any contract with  any  retail  licensee  whereby  such
licensee  agrees  to confine his sales to cannabis products manufactured
or sold by one or more such cultivator or  processors  or  distributors.
Any  such contract shall be void and subject the licenses of all parties
concerned to revocation for cause.
  2. The provisions of this section  shall  not  prohibit  a  registered
organization authorized pursuant to section thirty-nine of this chapter,
from  cultivating,  processing, or selling adult-use cannabis under this
article, at facilities wholly owned  and  operated  by  such  registered
organization,  subject  to  any  conditions, limitations or restrictions
established by the office and this chapter.
  3. The office shall have the power to create rules and regulations  in
regard to this section.
  §  79.  Packaging  and labeling of adult-use cannabis products. 1. The
office is hereby authorized to promulgate rules and regulations  govern-
ing  the  advertising,  branding,  marketing,  packaging and labeling of

A. 1617--B                         38

cannabis products, sold or possessed for sale in New York state, includ-
ing rules pertaining to the accuracy of information and rules  restrict-
ing marketing and advertising to youth.
  2.  Such  regulations  shall include, but not be limited to, requiring
that:
  (a) packaging  meets  requirements  similar  to  the  federal  "poison
prevention packaging act of 1970," 15 U.S.C. Sec 1471 et seq.;
  (b)  all cannabis-infused products shall have a separate packaging for
each serving;
  (c) prior to delivery or sale at a  retailer,  cannabis  and  cannabis
products  shall  be  labeled and placed in a resealable, child-resistant
package; and
  (d) packages and labels shall not be made to be attractive to minors.
  3. Such regulations shall include requiring labels  warning  consumers
of  any  potential impact on human health resulting from the consumption
of cannabis products that shall be affixed to those products when  sold,
if such labels are deemed warranted by the office.
  4.  Such  rules and regulations shall establish methods and procedures
for determining serving sizes for cannabis-infused products  and  active
cannabis  concentration  per  serving  size. Such regulations shall also
require a nutritional fact panel that incorporates data regarding  serv-
ing sizes and potency thereof.
  5.  The packaging, sale, marketing, branding, advertising, labeling or
possession by any licensee  of  any  cannabis  product  not  labeled  or
offered  in conformity with rules and regulations promulgated in accord-
ance with this section shall be grounds for the imposition  of  a  fine,
and/or the suspension, revocation or cancellation of a license.
  §  80.  Laboratory  testing.  1. Every processor of adult-use cannabis
shall contract with an  independent  laboratory  permitted  pursuant  to
section  one  hundred  twenty-nine of this chapter, to test the cannabis
products it produces pursuant to rules and regulations prescribed by the
office.  The executive director may assign an approved testing laborato-
ry, which the processor of adult-use cannabis must use.
  2. Adult-use cannabis processors shall make  laboratory  test  reports
available  to  licensed  distributors  and  retail  dispensaries for all
cannabis products manufactured by the processor.
  3. Licensed retail dispensaries shall maintain accurate  documentation
of laboratory test reports for each cannabis product offered for sale to
cannabis  consumers. Such documentation shall be made publicly available
by the licensed retail dispensary.
  4. Onsite laboratory testing by  licensees  is  permissible;  however,
such  testing  shall  not be certified by the office and does not exempt
the licensee from the requirements of quality  assurance  testing  at  a
testing laboratory pursuant to this section.
  5.  An  owner of a cannabis laboratory testing permit shall not hold a
license in any other category within this article and shall not  own  or
have ownership interest in a registered organization registered pursuant
to article three of this chapter.
  6.  The  office shall have the authority to require any licensee under
this article to submit cannabis or cannabis  products  to  one  or  more
independent laboratories for testing.
  § 81. Provisions governing the cultivation and processing of adult-use
cannabis.  1.  Cultivation of cannabis must not be visible from a public
place by normal unaided vision.
  2. No cultivator or processor of adult-use  cannabis  shall  sell,  or
agree to sell or deliver in the state any cannabis products, as the case

A. 1617--B                         39

may  be, except in sealed containers containing quantities in accordance
with size standards pursuant  to  rules  adopted  by  the  office.  Such
containers  shall have affixed thereto such labels as may be required by
the rules of the office.
  3.  No  cultivator or processor of adult-use cannabis shall furnish or
cause to be furnished to any licensee, any exterior  or  interior  sign,
printed,  painted,  electric  or  otherwise, except as authorized by the
office. The office may make such rules as it deems  necessary  to  carry
out the purpose and intent of this subdivision.
  4.  Cultivators  of  adult-use cannabis shall comply with plant culti-
vation regulations, standards, and guidelines issued by the  office,  in
consultation  with  the  department  of environmental conservation. Such
regulations, standards, and guidelines shall be  guided  by  sustainable
farming  principles  and  practices  such  as organic, regenerative, and
integrated pest management models, and shall restrict whenever possible,
the use of pesticides, herbicides, and fungicides  to  those  which  are
botanical and/or biological.
  5.  No  cultivator  or  processor  of adult-use cannabis, including an
adult-use cannabis cooperative or microbusiness may offer any incentive,
payment or other benefit to a licensed  cannabis  retail  dispensary  in
return for carrying the cultivator, processor, cooperative or microbusi-
ness products, or preferential shelf placement.
  6.  All  cannabis  products shall be processed in accordance with good
manufacturing processes, pursuant to Part 111 of Title 21 of the Code of
Federal Regulations, as may be modified by  the  executive  director  in
regulation.
  7. No processor of adult-use cannabis shall produce any product which,
in  the  discretion of the office, is designed to appeal to anyone under
the age of twenty-one years.
  8. The use or integration of alcohol or nicotine in cannabis  products
is strictly prohibited.
  § 82. Provisions governing the distribution of adult-use cannabis.  1.
No  distributor  shall  sell,  or  agree to sell or deliver any cannabis
products, as the case may be, in any container, except in a sealed pack-
age. Such containers shall have affixed thereto such labels  as  may  be
required by the rules of the office.
  2. No distributor shall deliver any cannabis products, except in vehi-
cles  owned  and  operated by such distributor, or hired and operated by
such distributor from a trucking or  transportation  company  registered
with the office, and shall only make deliveries at the licensed premises
of the purchaser.
  3.  Each  distributor  shall keep and maintain upon the licensed prem-
ises, adequate books and records of all transactions involving the busi-
ness transacted by such distributor, which  shall  show  the  amount  of
cannabis products purchased by such distributor together with the names,
license numbers and places of business of the persons from whom the same
was  purchased and the amount involved in such purchases, as well as the
amount of cannabis products sold by such distributor together  with  the
names,  addresses,  and  license  numbers  of such purchasers. Each sale
shall be recorded separately on a numbered  invoice,  which  shall  have
printed thereon the number, the name of the licensee, the address of the
licensed  premises,  and  the  current  license number. Such distributor
shall deliver to the purchaser a true duplicate invoice stating the name
and address  of  the  purchaser,  the  quantity  of  cannabis  products,
description  by  brands  and  the price of such cannabis products, and a
true, accurate and complete statement of the  terms  and  conditions  on

A. 1617--B                         40

which  such sale is made. Such books, records and invoices shall be kept
for a period of five years and shall be available for inspection by  any
authorized representative of the office.
  4. No distributor shall furnish or cause to be furnished to any licen-
see, any exterior or interior sign, printed, painted, electric or other-
wise, unless authorized by the office.
  5.  No  distributor  shall  provide  any  discount, rebate or customer
loyalty program to any licensed retailer, except as otherwise allowed by
the office.
  6. The executive director  is  authorized  to  promulgate  regulations
establishing  a  maximum  margin  for  which a distributor may mark up a
cannabis product for sale to a retail dispensary. Any adult-use cannabis
product sold by a distributor for more than the maximum  markup  allowed
in regulation, shall be unlawful.
  7.  Each  distributor  shall keep and maintain upon the licensed prem-
ises, adequate books and records to demonstrate the distributor's actual
cost of doing business, using accounting standards and methods regularly
employed in the determination of costs for the purpose of federal income
tax reporting, for the total operation  of  the  licensee.  Such  books,
records  and invoices shall be kept for a period of five years and shall
be available for inspection by  any  authorized  representative  of  the
office  for  use in determining the maximum markup allowed in regulation
pursuant to subdivision six of this section.
  § 83. Provisions governing adult-use cannabis retail dispensaries.  1.
No cannabis retail licensee shall sell, deliver, or give away  or  cause
or permit or procure to be sold, delivered or given away any cannabis to
any person, actually or apparently, under the age of twenty-one years.
  2.  No  cannabis  retail  licensee shall sell alcoholic beverages, nor
have or possess a license or permit to sell alcoholic beverages, on  the
same premises where cannabis products are sold.
  3.  No  sign of any kind printed, painted or electric, advertising any
brand shall be permitted on the exterior or interior of  such  premises,
except by permission of the office.
  4.  No  cannabis  retail  licensee  shall sell or deliver any cannabis
products to any person with knowledge of, or with  reasonable  cause  to
believe,  that the person to whom such cannabis products are being sold,
has acquired the same for the purpose of selling or giving them away  in
violation of the provisions of this chapter or in violation of the rules
and regulations of the office.
  5.  All  premises  licensed  under  this  section  shall be subject to
inspection by any peace officer described in subdivision four of section
2.10 of the criminal procedure law acting pursuant to his or her special
duties, or police officer or any duly authorized representative  of  the
office,  during the hours when the said premises are open for the trans-
action of business.
  6. No cannabis retail licensee shall be interested, directly or  indi-
rectly, in any cultivator, processor, distributor or microbusiness oper-
ator licensed pursuant to this article, by stock ownership, interlocking
directors,  mortgage  or lien on any personal or real property or by any
other means. Any lien, mortgage or other interest  or  estate,  however,
now held by such retailer on or in the personal or real property of such
manufacturer  or  distributor,  which mortgage, lien, interest or estate
was acquired on or before December thirty-first, two thousand  eighteen,
shall  not  be  included  within  the  provisions  of  this subdivision;
provided, however, the burden of establishing the time of the accrual of
the interest comprehended by this subdivision, shall be upon the  person

A. 1617--B                         41

who claims to be entitled to the protection and exemption afforded here-
by.
  7. No cannabis retail licensee shall make or cause to be made any loan
to  any person engaged in the cultivation, processing or distribution of
cannabis pursuant to this article.
  8. Each cannabis retail licensee shall designate  the  price  of  each
item  of  cannabis  by  attaching to or otherwise displaying immediately
adjacent to each such item displayed in the  interior  of  the  licensed
premises where sales are made a price tag, sign or placard setting forth
the price at which each such item is offered for sale therein.
  9. No person licensed to sell cannabis products at retail, shall allow
or  permit any gambling, or offer any gambling on the licensed premises,
or allow or permit illicit drug activity on the licensed  premises.  The
use of the licensed premises or any part thereof for the sale of lottery
tickets,  when duly authorized and lawfully conducted thereon, shall not
constitute gambling within the meaning of this subdivision.
  10. If an employee of a  cannabis  retail  licensee  suspects  that  a
cannabis  consumer  may  be  abusing  cannabis,  such  an employee shall
encourage such cannabis consumer to  seek  help  from  a  substance  use
disorder  program  or harm reduction services. Cannabis retail licensees
shall develop standard operating procedures and  written  materials  for
employees  to  utilize  when  consulting  consumers for purposes of this
subdivision.
  11. The executive director is  authorized  to  promulgate  regulations
governing  licensed  adult-use  dispensing facilities, including but not
limited to, the hours of operation, size and location  of  the  licensed
facility, potency and types of products offered and establishing a mini-
mum  margin for which a retail dispensary must markup a cannabis product
or products before selling to a cannabis consumer. Any adult-use  canna-
bis product sold by a retail dispensary for less than the minimum markup
allowed in regulation, shall be unlawful.
  § 84. Adult-use cannabis advertising.  1. The office is hereby author-
ized  to  promulgate rules and regulations governing the advertising and
marketing of licensed cannabis and any cannabis products or services.
  2. The office shall promulgate explicit rules prohibiting  advertising
that:
  (a) is false, deceptive, or misleading;
  (b) promotes overconsumption;
  (c) depicts consumption by children or other minors;
  (d) is designed in any way to appeal to children or other minors;
  (e)  is  within two hundred feet of the perimeter of a school grounds,
playground, child care center, public park, or library;
  (f) is within two hundred feet of  school  grounds  as  such  term  is
defined in section 220.00 of the penal law;
  (g) is in public transit vehicles and stations;
  (h) is in the form of an unsolicited internet pop-up;
  (i) is on publicly owned or operated property; or
  (j)  makes medical claims or promotes adult-use cannabis for a medical
or wellness purpose.
  3. The office shall promulgate explicit rules prohibiting all  market-
ing  strategies and implementation including, but not limited to, brand-
ing, packaging, labeling, location of cannabis retailers, and advertise-
ments that are designed to:
  (a) appeal to persons less then twenty-one years of age; or
  (b) disseminate false or misleading information to customers.
  4. The office shall promulgate explicit rules requiring that:

A. 1617--B                         42

  (a) all advertisements and marketing accurately and  legibly  identify
the licensee or other business responsible for its content; and
  (b)  any  broadcast,  cable,  radio,  print and digital communications
advertisements only be placed where the audience is reasonably  expected
to  be  twenty-one  years  of  age  or older, as determined by reliable,
up-to-date audience composition data.
  § 85. Social and economic equity, minority and women-owned businesses,
and disadvantaged farmers; incubator  program.    1.  The  office  shall
implement  a social and economic equity plan and actively promote appli-
cants from communities disproportionately impacted by cannabis  prohibi-
tion,  and  promote  racial,  ethnic,  and gender diversity when issuing
licenses for adult-use cannabis related activities, including by  prior-
itizing  consideration of applications by applicants who are from commu-
nities disproportionately impacted by the enforcement of cannabis prohi-
bition or  who  qualify  as  a  minority  or  women-owned  business,  or
disadvantaged  farmers.  Such  qualifications shall be determined by the
office in regulation.
  2. The office shall create  a  social  and  economic  equity  plan  to
promote  diversity  in  ownership  and employment, and opportunities for
social and economic equity in the adult-use cannabis industry and ensure
inclusion of:
  (a) individuals from communities disproportionately  impacted  by  the
enforcement of cannabis prohibition;
  (b) minority-owned businesses;
  (c) women-owned businesses;
  (d)  minority  and women-owned businesses, as defined in paragraph (d)
of subdivision five of this section; and
  (e) disadvantaged farmers, as defined  in  subdivision  five  of  this
section.
  3.  The  social  and  economic  equity  plan shall consider additional
criteria in its licensing determinations. Under the social and  economic
equity  plan,  extra  weight  shall be given to applications that demon-
strate that an applicant:
  (a) is a member of a  community  disproportionately  impacted  by  the
enforcement of cannabis prohibition;
  (b)  has  an  income lower than eighty percent of the median income of
the county in which the applicant resides; and
  (c) was convicted of a cannabis-related offense prior to the effective
date of this chapter, or had  a  parent,  guardian,  child,  spouse,  or
dependent,  or was a dependent of an individual who, prior to the effec-
tive date of this chapter, was convicted of a cannabis-related offense.
  4. The office shall also create an incubator program to provide direct
support to social and economic equity applicants  to  achieve  and  upon
having  been  granted licenses. The program shall provide direct support
in the form of counseling services, education, small business  coaching,
and compliance assistance.
  5.  For  the purposes of this section, the following definitions shall
apply:
  (a)  "minority-owned  business"  shall  mean  a  business  enterprise,
including  a sole proprietorship, partnership, limited liability company
or corporation that is:
  (i) at least fifty-one percent owned by one  or  more  minority  group
members;
  (ii)  an enterprise in which such minority ownership is real, substan-
tial and continuing;

A. 1617--B                         43

  (iii) an enterprise in which such minority ownership has and exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
  (iv)  an  enterprise authorized to do business in this state and inde-
pendently owned and operated; and
  (v) an enterprise that is a small business.
  (b) "minority group member" shall mean  a  United  States  citizen  or
permanent resident alien who is and can demonstrate membership in one of
the following groups:
  (i)  black  persons  having origins in any of the black African racial
groups;
  (ii) Hispanic persons of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
Central  or  South American of either Indian or Hispanic origin, regard-
less of race;
  (iii) Native American or Alaskan native persons having origins in  any
of the original peoples of North America; or
  (iv)  Asian  and Pacific Islander persons having origins in any of the
far east countries, south east Asia,  the  Indian  subcontinent  or  the
Pacific islands.
  (c) "women-owned business" shall mean a business enterprise, including
a  sole proprietorship, partnership, limited liability company or corpo-
ration that is:
  (i) at least fifty-one percent owned by  one  or  more  United  States
citizens or permanent resident aliens who are women;
  (ii)  an  enterprise  in which the ownership interest of such women is
real, substantial and continuing;
  (iii) an enterprise in which such women ownership  has  and  exercises
the authority to control independently the day-to-day business decisions
of the enterprise;
  (iv)  an  enterprise authorized to do business in this state and inde-
pendently owned and operated; and
  (v) an enterprise that is a small business.
  (d) a firm owned by a minority group member who is also a woman may be
defined as a minority-owned business, a women-owned business, or both.
  (e) "disadvantaged farmer" shall mean a New  York  state  resident  or
business  enterprise,  including  a  sole  proprietorship,  partnership,
limited liability company or corporation, that  has  reported  at  least
two-thirds  of  its  federal  gross income as income from farming, in at
least one of the past five preceding tax years, and who:
  (i) farms in a county that has greater than ten percent rate of pover-
ty according to the latest U.S.  Census  Bureau's  American  Communities
Survey;
  (ii)  has  been disproportionately impacted by low commodity prices or
faces the loss of farmland through development or suburban sprawl; and
  (iii) meets any other qualifications as defined in regulation  by  the
office.
  (f)  "communities  disproportionately impacted" shall mean, but not be
limited to, a history of arrests, convictions, and other law enforcement
practices in a certain geographic area, such as,  but  not  limited  to,
precincts,   zip   codes,  neighborhoods,  and  political  subdivisions,
reflecting a disparate enforcement  of  cannabis  prohibition  during  a
certain time period, when compared to the rest of the state.  The office
shall,  in  consultation  with the cannabis advisory board, issue guide-
lines to determine how to assess which communities have been  dispropor-
tionately  impacted and how to assess if someone is a member of a commu-
nity disproportionately impacted.

A. 1617--B                         44

  6. The office shall actively promote applicants  that  foster  racial,
ethnic, and gender diversity in their workforce.
  7. Licenses issued under the social and economic equity plan shall not
be  transferable  except  to qualified social and economic equity appli-
cants and only upon prior written approval of the executive director.
  8. The office shall collect demographic data on owners  and  employees
in the adult-use cannabis industry and shall annually publish such data.
  §  86.  Regulations.    The  executive director shall promulgate regu-
lations in consultation with the cannabis advisory  board  to  implement
this article.

                                ARTICLE 5
                              HEMP EXTRACT
Section 90. Definitions.
        91. Rulemaking authority.
        92. Cannabinoid related hemp extract licensing.
        93. Cannabinoid grower licenses.
        94. Cannabinoid manufacturer license.
        95. Cannabinoid extractor license.
        96. Cannabinoid license applications.
        97. Information to be requested in applications for licenses.
        98. Fees.
        99. Selection criteria.
        100. Limitations of licensure; duration.
        101. License renewal.
        102. Form of license.
        103. Amendments  to  license  and  duty  to  update  information
               submitted for licensing.
        104. Record keeping and tracking.
        105. Inspections and ongoing requirements.
        106. Packaging and labeling of hemp extract.
        107. Provisions  governing  the   growing,   manufacturing   and
               extracting of hemp extract.
        108. Laboratory testing.
        109. Advertising.
        110. Research.
        111. Regulations.
        112. Cannabinoid permit.
        113. New York hemp product.
        114. Penalties and violations of this article.
        115. Hemp workgroup.
        116. Prohibitions.
  §  90.  Definitions.  Wherever  used  in this article unless otherwise
expressly stated or unless the context  or  subject  matter  requires  a
different  meaning,  the  following  terms shall have the representative
meanings hereinafter set forth or indicated:
  1. "Applicant" means a for-profit entity or not-for-profit corporation
and includes board members who submit an application to become a  licen-
see.
  2.  "Hemp  extract"  means any product made or derived from industrial
hemp, including the seeds thereof and all derivatives whether growing or
not, with a delta-9-tetrahydrocannabinol concentration of not more  than
an  amount  of  the plant Cannabis sativa L. and any part of such plant,
including the seeds thereof and all derivatives, extracts, cannabinoids,
isomers, acids, salts, and salts of isomers,  whether  growing  or  not,
with  a  delta-9-tetrahydrocannabinol  concentration of not more than an

A. 1617--B                         45

amount determined by the office in  regulation,  used  or  intended  for
human  or  animal  consumption  or  use  for its cannabinoid content, as
determined by the office in regulation. Hemp extract excludes industrial
hemp  used  or  intended exclusively for an industrial purpose and those
food and/or food ingredients that are generally recognized  as  safe  by
the department of agriculture and markets, and shall not be regulated as
hemp extract within the meaning of this article.
  3.  "Cannabinoid grower" means a person licensed by the office, and in
compliance with this article to acquire, possess,  cultivate,  and  sell
hemp extract for its cannabinoid content.
  4. "Cannabinoid manufacturer" means a person licensed by the office to
acquire, possess, and manufacture hemp extract from licensed cannabinoid
growers  or  cannabinoid extractors for the manufacture and sale of hemp
extract products marketed for cannabinoid content and used  or  intended
for human or animal consumption or use.
  5.  "Cannabinoid  extractor"  means a person licensed by the office to
acquire, possess, extract and manufacture  hemp  extract  from  licensed
cannabinoid  growers  for  the  manufacture  and  sale  of  hemp extract
products marketed for cannabinoid content and used or intended for human
or animal consumption or use.
  6. "License" means a license issued pursuant to this article.
  7. "Industrial hemp" means the plant Cannabis sativa L. and  any  part
of  such  plant,  including  the  seeds  thereof  and  all  derivatives,
extracts, cannabinoids, isomers, acids, salts,  and  salts  of  isomers,
whether  growing  or  not,  with  a delta-9-tetrahydrocannabinol concen-
tration of not more than 0.3 percent on a dry weight basis.
  § 91. Rulemaking authority. 1. The office  shall  perform  such  acts,
prescribe  such  forms and propose such rules, regulations and orders as
it may deem necessary or proper to fully effectuate  the  provisions  of
this article.
  2. In consultation with the cannabis advisory board and the hemp work-
group,  the office shall have the power to promulgate any and all neces-
sary rules and regulations governing the production, processing,  trans-
portation,  distribution,  and  sale  of hemp extract, including but not
limited to the licensing of cannabinoid growers, manufacturers,  extrac-
tors and retailers, including, but not limited to:
  (a) prescribing forms and establishing application, reinstatement, and
renewal fees;
  (b)  the  qualifications  and  selection  criteria  for  licensing, or
permitting;
  (c) limitations on the number of licenses to be awarded;
  (d) the books and records to be created and maintained  by  licensees,
and  permittees, including the reports to be made thereon to the office,
and inspection of any and all books and records maintained by any licen-
see, or permittee, and on the premises of any licensee or permittee;
  (e) methods of producing,  processing,  and  packaging  hemp  extract;
conditions  of  sanitation,  and  standards of ingredients, quality, and
identity of hemp extract products cultivated,  processed,  packaged,  or
sold by licensees; and
  (f) hearing procedures and additional causes for cancellation, revoca-
tion,  and/or  civil penalties against any person licensed, or permitted
by the office.
  3. The office, in consultation with the  department  of  environmental
conservation  and  the  New  York  state energy research and development
agency, shall promulgate necessary rules and regulations  governing  the

A. 1617--B                         46

safe  production  of  hemp  extract,  including environmental and energy
standards.
  § 92. Cannabinoid related hemp extract licensing.  1. Persons growing,
processing,  extracting,  and/or manufacturing hemp extract or producing
hemp extract products distributed,  sold  or  marketed  for  cannabinoid
content  and  used  or  intended for human or animal consumption or use,
shall be required to obtain the following license or licenses  from  the
office, depending upon the operation:
  (a) cannabinoid grower license;
  (b) cannabinoid manufacturer license;
  (c) cannabinoid extractor license.
  2.  Notwithstanding  subdivision  one  of  this section, those persons
growing, processing or  manufacturing  food  or  food  ingredients  from
industrial  hemp  pursuant to article twenty-nine of the agriculture and
markets law which food or food ingredients are generally  recognized  as
safe, shall be subject to regulation and/or licensing by the office.
  §  93.  Cannabinoid grower licenses. 1. A cannabinoid grower's license
authorizes the acquisition, possession, cultivation  and  sale  of  hemp
extract  grown or used for its cannabinoid content on the licensed prem-
ises of the grower.
  2. A person holding a cannabinoid grower's license shall not sell hemp
extract products marketed,  distributed  or  sold  for  its  cannabinoid
content  and  intended  for  human consumption or use without also being
licensed as a manufacturer or extractor  pursuant  to  this  article  or
otherwise permitted pursuant to section ninety-two of this article.
  3.  Persons growing industrial hemp pursuant to article twenty-nine of
the agriculture and markets law are not authorized to and shall not sell
hemp extract for human or animal consumption or use, other than as  food
or  a  food  ingredient  that  has  been generally recognized as safe in
accordance with the office and determined by the state to  be  safe  for
human  consumption  as  food  or  a  food  ingredient without also being
licensed as a manufacturer or extractor  pursuant  to  this  article  or
otherwise permitted pursuant to section ninety-two of this article.
  4.  A  person  authorized under article twenty-nine of the agriculture
and markets law as an industrial hemp grower may apply for a cannabinoid
grower license provided he or she can demonstrate to the office that its
cultivation of industrial hemp  meets  all  the  requirements  for  hemp
extract cultivated under a cannabinoid grower license.
  §  94. Cannabinoid manufacturer license. 1. A cannabinoid manufacturer
license authorizes the licensee's acquisition, possession, and  manufac-
ture  of  hemp extract from a licensed cannabinoid grower or cannabinoid
extractor for the processing of hemp extract or the production  of  hemp
extract  products  marketed, distributed or sold for cannabinoid content
and used or intended for human or animal consumption or use.
  2. Notwithstanding subdivision one  of  this  section,  nothing  shall
prevent  a  cannabinoid  manufacturer from manufacturing industrial hemp
products not used or intended for human or animal consumption or use.
  § 95. Cannabinoid extractor  license.    1.  A  cannabinoid  extractor
license  authorizes  the  licensee's acquisition, possession, extraction
and manufacture of hemp extract from a licensed cannabinoid  grower  for
the  processing  of  hemp  extract  or  the  production  of hemp extract
products marketed, distributed or sold for cannabinoid content and  used
or intended for human or animal consumption or use.
  2.  No  cannabinoid extractor licensee shall engage in any other busi-
ness on the licensed premises; except that  nothing  contained  in  this

A. 1617--B                         47

article  shall  prevent a cannabinoid extractor licensee from also being
licensed as a cannabinoid grower on the same premises.
  3.  Notwithstanding  subdivisions one and two of this section, nothing
shall prevent a cannabinoid extractor from manufacturing industrial hemp
products not used or intended for human or animal consumption or use.
  4. A person authorized under article twenty-nine  of  the  agriculture
and  markets  law  as  an  industrial hemp processor shall qualify for a
cannabinoid extractor license provided it can demonstrate to the  office
that  its  extraction  of industrial hemp meets all the requirements for
hemp extract under a cannabinoid extractor license.
  § 96. Cannabinoid license applications. 1. Persons shall apply  for  a
cannabinoid  grower  license,  cannabinoid manufacturer license and/or a
cannabinoid extractor license by submitting an application upon  a  form
supplied  by  the office, providing all the requested information, veri-
fied by the applicant or an authorized representative of the applicant.
  2. A separate license shall be required for  each  facility  at  which
growing, manufacturing and/or extracting is conducted.
  3.  Each  applicant  shall remit with its application the fee for each
office requested license.
  § 97. Information to be requested in applications for licenses. 1. The
office shall have the authority to prescribe  the  manner  and  form  in
which an application must be submitted to the office for licensure under
this article.
  2.  The executive director is authorized to adopt regulations pursuant
to the state administrative procedure act establishing information which
must be included on an application for  licensure  under  this  article.
Such  information may include, but is not limited to:  information about
the applicant's identity, including racial and ethnic diversity;  infor-
mation  about  prior  use of farmland; ownership and investment informa-
tion, including the corporate structure; evidence of good moral  charac-
ter,  including  the  submission of fingerprints by the applicant to the
division of criminal justice services; information about the premises to
be licensed; financial statements; and any other information  prescribed
in regulation.
  3.  All  license  applications shall be signed by the applicant (if an
individual), by a managing partner (if a limited liability corporation),
by an officer (if a corporation), or by all partners (if a partnership).
Each person signing such application shall verify it as true  under  the
penalties of perjury.
  4. All license or permit applications shall be accompanied by a check,
draft  or  other forms of payment as the office may require or authorize
in the amount required by this article for such license or permit.
  5. If there be any change, after the filing of the application or  the
granting  of  a license, in any of the facts required to be set forth in
such application, a supplemental statement giving notice of such change,
cost and source of money involved in the change, duly verified, shall be
filed with the office within ten days after such change. Failure  to  do
so  shall,  if  willful  and  deliberate, be cause for revocation of the
license.
  6. In giving any notice, or taking any action in reference to a licen-
see of a licensed premises, the office may  rely  upon  the  information
furnished   in  such  application  and  in  any  supplemental  statement
connected therewith, and such information may be presumed to be correct,
and shall be binding upon a licensee or licensed premises as if correct.
All information required to be furnished in such application or  supple-
mental statements shall be deemed material in any prosecution for perju-

A. 1617--B                         48

ry,  any proceeding to revoke, cancel or suspend any license, and in the
office's determination to approve or deny the license.
  7.  The  office may, upon documentation therefor, waive the submission
of any category of information described in this section for any catego-
ry of license or permit, provided that it  shall  not  be  permitted  to
waive the requirement for submission of any such category of information
solely for an individual applicant or applicants.
  §  98. Fees. The office shall have the authority to charge licensees a
biennial license fee. Such fee may  be  based  on  the  amount  of  hemp
extract  to be grown, processed, manufactured or extracted by the licen-
see, the gross annual receipts of the licensee for the previous  license
period, or any other factors deemed appropriate by the office.
  § 99. Selection criteria. 1. An applicant shall furnish evidence:
  (a) its ability to effectively maintain a delta-9-tetrahydrocannabinol
concentration  that  does not exceed a percentage of delta-9-tetrahydro-
cannabinol cannabis set by the executive director on a dry weight  basis
of  combined  leaves  and flowers of the plant of the genus cannabis, or
per volume or weight of cannabis product;
  (b) its ability to comply with all applicable  state  laws  and  regu-
lations;
  (c) that the applicant is ready, willing and able to properly carry on
the activities for which a license is sought; and
  (d)  that  the  applicant  is in possession of or has the right to use
land, buildings and equipment sufficient to properly carry on the activ-
ity described in the application.
  2. The office, in considering whether to grant  the  license  applica-
tion, shall consider whether:
  (a)  it is in the public interest that such license be granted, taking
into consideration whether the number of licenses will  be  adequate  or
excessive to reasonably serve demand;
  (b)  the applicant and its managing officers are of good moral charac-
ter and do not  have  an  ownership  or  controlling  interest  in  more
licenses or permits than allowed by this chapter;
  (c) preference shall be given to applicants that are currently farming
in  the  state  and  are eligible or currently receiving an agricultural
assessment pursuant to article twenty-five-AA  of  the  agriculture  and
markets law; and
  (d)  the applicant satisfies any other conditions as determined by the
office.
  3. If the executive director  is  not  satisfied  that  the  applicant
should  be  issued  a  license,  the executive director shall notify the
applicant in writing of the specific reason or reasons for denial.
  4. The executive director shall have authority and sole discretion  to
determine the number of licenses issued pursuant to this article.
  §  100.  Limitations of licensure; duration. 1. No license pursuant to
this article may be issued to a person under the age of eighteen years.
  2. The office shall have the authority  to  limit,  by  canopy,  plant
count  or  other  means, the amount of hemp extract allowed to be culti-
vated, processed, extracted or sold by a licensee.
  3. All licenses under this article shall expire two  years  after  the
date  of  issue and be subject to any rules or limitations prescribed by
the executive director in regulation.
  § 101. License renewal. 1. Each license, issued pursuant to this arti-
cle, may be renewed upon application therefor by the  licensee  and  the
payment of the fee for such license as prescribed by this article.

A. 1617--B                         49

  2.  In  the case of applications for renewals, the office may dispense
with the requirements of such statements as it deems unnecessary in view
of those contained in the application made for the original license, but
in any event the submission of  photographs  of  the  licensed  premises
shall  be  dispensed with, provided the applicant for such renewal shall
file a statement with the office to the effect that there  has  been  no
alteration of such premises since the original license was issued.
  3.  The office may make such rules as may be necessary, not inconsist-
ent with this chapter, regarding applications for renewals  of  licenses
and permits and the time for making the same.
  4.  The  office  shall provide an application for renewal of a license
issued under this article not less than ninety days prior to the expira-
tion of the current license.
  5. The office may only issue a renewal license  upon  receipt  of  the
prescribed  renewal  application  and renewal fee from a licensee if, in
addition to the criteria in section ninety-seven of  this  article,  the
licensee's license is not under suspension and has not been revoked.
  6. The office shall have the authority to charge applicants for licen-
sure  under  this article a non-refundable application fee. Such fee may
be based on the type of licensure sought, cultivation and/or  production
volume,  or  any  other factors deemed reasonable and appropriate by the
office to achieve the policy and purpose of this chapter.
  § 102. Form of license. Licenses issued pursuant to this article shall
specify:
  1. the name and address of the licensee;
  2. the activities permitted by the license;
  3. the land, buildings  and  facilities  that  may  be  used  for  the
licensed activities of the licensee;
  4.  a  unique license number issued by the department to the licensee;
and
  5. such other information as the executive director shall deem  neces-
sary to assure compliance with this chapter.
  §  103. Amendments to license and duty to update information submitted
for licensing. 1. Upon application  of  a  licensee  to  the  office,  a
license  may  be  amended  to  allow the licensee to relocate within the
state, to add or delete licensed activities or facilities, or  to  amend
the  ownership  or  organizational  structure  of the entity that is the
licensee. The fee for such amendment shall be two hundred fifty dollars.
  2. In the event that any of the information provided by the  applicant
changes  either while the application is pending or after the license is
granted, within ten days of any such change, the applicant  or  licensee
shall submit to the office a verified statement setting forth the change
in circumstances of facts set forth in the application. Failure to do so
shall,  if  willful  and  deliberate,  be  cause  for  revocation of the
license.
  3. A license shall become void by a change in  ownership,  substantial
corporate change or location without prior written approval of the exec-
utive  director.    The  executive  director  may promulgate regulations
allowing for certain types of changes in ownership without the need  for
prior written approval.
  4.  For purposes of this section, "substantial corporate change" shall
mean:
  (a) for a corporation, a change of eighty percent or more of the offi-
cers and/or directors, or a transfer of eighty percent or more of  stock
of such corporation, or an existing stockholder obtaining eighty percent
or more of the stock of such corporation; and

A. 1617--B                         50

  (b)  for  a  limited  liability company, a change of eighty percent or
more of the managing members of the company, or  a  transfer  of  eighty
percent  or  more  of ownership interest in said company, or an existing
member obtaining a cumulative of eighty percent or more of the ownership
interest in said company.
  §  104.  Record keeping and tracking. 1. The executive director shall,
by regulation, require each licensee pursuant to this article  to  adopt
and  maintain  security,  tracking, record keeping, record retention and
surveillance systems, relating to all hemp extract  at  every  stage  of
acquiring,  possession,  manufacture,  transport,  sale, or delivery, or
distribution by the licensee, subject to regulations  of  the  executive
director.
  2.  Every licensee shall keep and maintain upon the licensed premises,
adequate books and records of all transactions  involving  the  licensee
and  sale  of its products, which shall include all information required
by rules promulgated by the office.
  3. Each sale shall be recorded separately on a numbered invoice, which
shall have printed thereon the number, the name  of  the  licensee,  the
address of the licensed premises, and the current license number.
  4. Such books, records and invoices shall be kept for a period of five
years  and shall be available for inspection by any authorized represen-
tative of the office.
  § 105. Inspections and ongoing requirements. All  licensees  shall  be
subject to reasonable inspection by the office, in consultation with the
department of health, and a person who holds a license must make himself
or  herself,  or  an  agent  thereof,  available  and  present  for  any
inspection required by the office.  The  office  shall  make  reasonable
accommodations  so  that ordinary business is not interrupted and safety
and security procedures are not compromised by the inspection.
  § 106. Packaging and labeling of  hemp  extract.  1.  The  office,  in
consultation  with the department of health, is authorized to promulgate
rules and regulations governing  the  packaging  and  labeling  of  hemp
extract products, sold or possessed for sale in New York state.
  2.  Such  regulations  shall include, but not be limited to, requiring
labels warning consumers of any potential impact on human health result-
ing from the consumption of hemp extract products that shall be  affixed
to  those products when sold, if such labels are deemed warranted by the
office. No label may state that hemp extract can treat, cure or  prevent
any disease without approval pursuant to federal law.
  3.  Such  rules and regulations shall establish a QR code which may be
used in conjunction with similar technology  for  labels  and  establish
methods  and  procedures  for  determining,  among other things, serving
sizes for hemp extract products, active  cannabinoid  concentration  per
serving  size, number of servings per container, and the growing region,
state or country of origin if not from the  United  States.  Such  regu-
lations  shall  also  require  a supplement fact panel that incorporates
data regarding serving sizes and potency thereof.
  4. The packaging, sale, or possession by  any  licensee  of  any  hemp
product  intended  for human or animal consumption or use not labeled or
offered in conformity with rules and regulations promulgated in  accord-
ance  with  this  section shall be grounds for the imposition of a fine,
and/or the suspension, revocation or cancellation of a license.
  § 107. Provisions governing the growing, manufacturing and  extracting
of  hemp  extract.  1.  No  licensed cannabinoid grower, manufacturer or
extractor shall sell, or agree to sell or deliver in the state any  hemp
extract  products,  as  the  case  may  be,  except in sealed containers

A. 1617--B                         51

containing quantities in accordance  with  size  standards  pursuant  to
rules  adopted by the office. Such containers shall have affixed thereto
such labels as may be required by the rules of the office.
  2.  Licensed cannabinoid growers shall be prohibited from using pesti-
cides.
  3. All hemp extract products shall be extracted  and  manufactured  in
accordance  with  good  manufacturing processes, pursuant to Part 111 or
117 of Title 21 of the Code of Federal Regulations as  may  be  modified
and decided upon by the executive director in regulation.
  4.  Within  thirty  days  of  the  effective date of this article, the
office shall approve the manufacture, distribution, and sale of beverag-
es containing no more than twenty milligrams of cannabidiol  per  twelve
ounce  beverage. The hemp extract used in such beverages shall be grown,
extracted and manufactured in the state of New York.  The  office  shall
issue guidance on the label, warning, point of sale, and advertising for
such beverages.
  5.  Terpenes  derived  from the hemp plant are generally recognized as
safe.
  6.  Those persons growing, processing or manufacturing  food  or  food
ingredients  from  hemp  extracts,  which  food  or food ingredients are
generally recognized as safe, shall  be  subject  to  regulation  and/or
licensing under this article.
  7.  Notwithstanding  any  other  provision  of  law  to  the contrary,
prepackaged beverages that contain hemp or any part of the  hemp  plant,
including the seeds and all naturally occurring cannabinoids, compounds,
concentrates,  extracts,  isolates,  terpenes,  resins,  isomers, acids,
salts, salts of isomers or cannabiodiol derivatives, are not  considered
to  be  adulterated or misbranded under this article based solely on the
inclusion of hemp or any part of the hemp plant as long as the amount of
cannabidiol is limited to twenty  milligrams  per  serving.  The  office
shall  allow  cannabidiol  in  food products and have the power to alter
amounts in beverages on the basis of scientific evidence connected  with
health effects.
  8.  The nonpharmaceutical or nonmedical production, marketing, sale or
distribution of beverages, food or food products within the  state  that
contain  hemp  or  any  part  of the hemp plant may not be restricted or
prohibited within the state based solely on the inclusion of hemp or any
part of the hemp plant.
  9. A beverage and/or food producer may not  make  any  claims  that  a
beverage,  food  or  food  product that contains hemp can treat, cure or
prevent any disease without approval pursuant to federal law.
  § 108. Laboratory  testing.  1.  Every  cannabinoid  manufacturer  and
cannabinoid  extractor  shall contract with an independent laboratory to
test the hemp extract products produced by the licensed manufacturer  or
extractor. The executive director, in consultation with the commissioner
of  health, shall approve the laboratory and require that the laboratory
report testing results in a manner determined by the executive director.
The executive director is authorized to issue regulations requiring  the
laboratory to perform certain tests and services.
  2.  Cannabinoid  manufacturers  and  cannabinoid extractors shall make
laboratory test reports  available  to  persons  holding  a  cannabinoid
permit  pursuant  to  section one hundred twelve of this article for all
cannabis products manufactured by the licensee.
  3. On-site laboratory testing by licensees  is  permissible;  however,
such  testing  shall  not be certified by the office and does not exempt

A. 1617--B                         52

the licensee from the requirements of quality  assurance  testing  at  a
testing laboratory pursuant to this section.
  §  109. Advertising. The office shall promulgate rules and regulations
governing the advertising of hemp extract and any other related products
or services as determined by the executive director.
  § 110. Research. 1. The office shall promote research and  development
through public-private partnerships to bring new hemp extract and indus-
trial hemp derived products to market within the state.
  2.  The executive director may develop and carry out research programs
which may include programs at the New York state college of  agriculture
and life sciences, pursuant to section fifty-seven hundred twelve of the
education  law  and/or  New  York state university research institutions
relating to industrial hemp and hemp extract.
  § 111. Regulations. The executive director shall in consultation  with
the  cannabis  advisory  board  and  the hemp workgroup promulgate regu-
lations pursuant to the state administrative procedure act to  implement
this article.
  §  112.  Cannabinoid  permit. The office is hereby authorized to issue
cannabinoid permits to retailers, wholesalers, and distributors  author-
izing  them  to  sell  cannabis  products derived from hemp extract. The
executive director shall have the authority to set fees for such permit,
to establish the period during which such permit is authorized,  and  to
make  rules  and regulations, including emergency regulations, to imple-
ment this section.
  § 113. New York hemp product. The executive director may establish and
adopt official grades and standards for hemp extract  and  hemp  extract
products as he or she may deem advisable, which are produced for sale in
this  state  and, from time to time, may amend or modify such grades and
standards.
  § 114. Penalties and violations of this article.  Notwithstanding  the
provision  of  any  law  to the contrary, the failure to comply with the
requirements of this article,  the  rules  and  regulations  promulgated
thereunder,  may  be  punishable by a fine of not more than one thousand
dollars for a first violation; not more than five thousand dollars for a
second violation; and not more than ten thousand  dollars  for  a  third
violation and each subsequent violation thereafter.
  § 115. Hemp workgroup. The executive director shall appoint a New York
state  industrial hemp and hemp extract workgroup, composed of research-
ers, producers, processors, manufacturers  and  trade  associations,  to
make  recommendations for the industrial hemp and hemp extract programs,
state and federal policies and policy initiatives, and opportunities for
the promotion and marketing of  industrial  hemp  and  hemp  extract  as
consistent  with  federal  and  state laws, rules and regulations, which
workgroup shall continue for such time as the executive  director  deems
appropriate.
  §  116.  Prohibitions. Except as authorized in this article, the manu-
facturing of hemp extract  for  human  or  animal  consumption  and  the
distribution  and/or sale thereof is prohibited in this state unless the
manufacturer is licensed under this article. Hemp extract  and  products
derived  therefrom for human and animal consumption produced outside the
state shall not be distributed or sold in this state  unless  they  meet
all standards and requirements established for such product manufactured
in  the state under this article and its rules and regulations as deter-
mined by the office.

A. 1617--B                         53

                                ARTICLE 6
                           GENERAL PROVISIONS

Section 125. General prohibitions and restrictions.
        126. License  to  be confined to premises licensed; premises for
               which no license shall be granted; transporting cannabis.
        127. Protections for the use  of  cannabis;  unlawful  discrimi-
               nations prohibited.
        128. Registrations and licenses.
        129. Laboratory testing permits.
        130. Special use permits.
        131. Professional and medical record keeping.
        132. Local opt-out; municipal control and preemption.
        133. Personal cultivation.
        134. Executive   director  to  be  necessary  party  to  certain
               proceedings.
        135. Penalties for violation of this chapter.
        136. Revocation  of  registrations,  licenses  and  permits  for
               cause; procedure for revocation or cancellation.
        137. Lawful actions pursuant to this chapter.
        138. Review by courts.
        139. Illicit cannabis.
        140. Persons  forbidden  to  traffic cannabis; certain officials
               not to be interested in manufacture or sale  of  cannabis
               products.
        141. Access to criminal history information through the division
               of criminal justice services.
        142. Severability.
  §  125.  General  prohibitions  and restrictions.   1. No person shall
cultivate, process, or distribute for  sale  or  sell  at  wholesale  or
retail  any cannabis, cannabis product, medical cannabis or hemp extract
product within the state without obtaining the appropriate registration,
license, or permit therefor required by this chapter.
  2. No registered organization, licensee, or permittee shall  sell,  or
agree  to sell or deliver in this state any cannabis or hemp extract for
the purposes of resale  to  any  person  who  is  not  duly  registered,
licensed  or permitted pursuant to this chapter to sell such product, at
wholesale or retail, as the case may be, at the time of  such  agreement
and sale.
  3. No registered organization, licensee, or permittee shall employ, or
permit  to  be  employed, or shall allow to work, on any premises regis-
tered or licensed for retail sale hereunder, any person under the age of
twenty-one years in any capacity where the duties of such person require
or permit such person to sell, dispense or handle cannabis.
  4. No registered organization,  licensee,  or  permittee  shall  sell,
deliver  or give away, or cause, permit or procure to be sold, delivered
or given away any cannabis, cannabis product,  or  medical  cannabis  on
credit; except that a registered organization, licensee or permittee may
accept  third  party credit cards for the sale of any cannabis, cannabis
product, or medical cannabis for which it  is  registered,  licensed  or
permitted  to  dispense  or sell to patients or cannabis consumers. This
includes, but is not limited to, any consignment sale of any kind.
  5. No registered organization, licensee, or permittee shall  cease  to
be  operated  as  a  bona fide or legitimate premises within the contem-
plation of the registration, license, or permit issued  for  such  prem-
ises, as determined within the judgment of the office.

A. 1617--B                         54

  6.  No  registered  organization, licensee, or permittee shall refuse,
nor any person holding a registration, license, or  permit  refuse,  nor
any  officer  or  director  of any corporation or organization holding a
registration, license, or permit refuse, to appear and/or testify  under
oath  at  an  inquiry or hearing held by the office, with respect to any
matter bearing upon the registration, license, or permit, the conduct of
any people at the licensed premises, or bearing upon  the  character  or
fitness  of  such registrant, licensee, or permittee to continue to hold
any registration, license, or permit. Nor shall any of the  above  offer
false testimony under oath at such inquiry or hearing.
  7.  No  registered  organization, licensee, or permittee shall engage,
participate in, or aid or abet any violation or provision of this  chap-
ter, or the rules or regulations of the office.
  8.  The  proper conduct of registered, licensed, or permitted premises
is essential to the public interest. Failure of a  registered  organiza-
tion,  licensee,  or permittee to exercise adequate supervision over the
registered, licensed, or permitted location poses a substantial risk not
only to the objectives of this chapter but imperils the health,  safety,
and  welfare  of the people of this state. It shall be the obligation of
each person registered, licensed, or permitted  under  this  chapter  to
ensure  that  a high degree of supervision is exercised over any and all
conduct at any registered, licensed, or permitted location  at  any  and
all times in order to safeguard against abuses of the privilege of being
registered,  licensed, or permitted, as well as other violations of law,
statute, rule, or regulation. Persons registered, licensed, or permitted
shall be held strictly accountable for any and all violations that occur
upon any registered, licensed, or permitted premises, and  for  any  and
all  violations  committed  by  or  permitted  by  any manager, agent or
employee of such registered, licensed, or permitted person.
  9. It shall be unlawful for any  person,  partnership  or  corporation
operating  a place for profit or pecuniary gain, with a capacity for the
assemblage of twenty or more persons to permit a person  or  persons  to
come  to  the place of assembly for the purpose of cultivating, process-
ing, distributing, or retail distribution or sale of  cannabis  on  said
premises. This includes, but is not limited, to, cannabis that is either
provided  by the operator of the place of assembly, his agents, servants
or employees, or cannabis that is brought  onto  said  premises  by  the
person or persons assembling at such place, unless an appropriate regis-
tration,  license,  or permit has first been obtained from the office of
cannabis management by the operator of said place of assembly.
  10. As it is a privilege under the law to be registered, licensed,  or
permitted  to  cultivate,  process,  distribute,  or  sell cannabis, the
office may impose any such further  restrictions  upon  any  registrant,
licensee,  or permittee in particular instances as it deems necessary to
further state policy and best serve the public interest. A violation  or
failure  of any person registered, licensed, or permitted to comply with
any condition, stipulation, or agreement, upon which  any  registration,
license, or permit was issued or renewed by the office shall subject the
registrant,  licensee, or permittee to suspension, cancellation, revoca-
tion, and/or civil penalties as determined by the office.
  11. No adult-use cannabis or medical cannabis may be imported  to,  or
exported  out  of, New York state by a registered organization, licensee
or person holding a license and/or  permit  pursuant  to  this  chapter,
until  such  time  as  it  may  become legal to do so under federal law.
Should it become legal to do so under federal law, the office is granted

A. 1617--B                         55

the power to promulgate such rules and regulations as it deems necessary
to protect the public and the policy of the state.
  12.  No  registered organization, licensee or any of its agents, serv-
ants or employees shall sell any cannabis product, or  medical  cannabis
from  house to house by means of a truck or otherwise, where the sale is
consummated and delivery made concurrently at the residence or place  of
business of a cannabis consumer. This subdivision shall not prohibit the
delivery  by  a  registered  organization to certified patients or their
designated caregivers, pursuant to article three of this chapter.
  13. No licensee shall  employ  any  canvasser  or  solicitor  for  the
purpose of receiving an order from a certified patient, designated care-
giver or cannabis consumer for any cannabis product, or medical cannabis
at  the  residence  or  place  of business of such patient, caregiver or
consumer, nor shall any licensee receive or accept any  order,  for  the
sale  of any cannabis product, or medical cannabis which shall be solic-
ited at the residence or place of business of a  patient,  caregiver  or
consumer.  This  subdivision  shall  not  prohibit the solicitation by a
distributor of an order from any licensee at the  licensed  premises  of
such licensee.
  § 126. License to be confined to premises licensed; premises for which
no  license shall be granted; transporting cannabis.  1. A registration,
license, or permit issued to any person, pursuant to this  chapter,  for
any  registered, licensed, or permitted premises shall not be transfera-
ble to any other person, to any other location or premises,  or  to  any
other  building or part of the building containing the licensed premises
except in the discretion of the office. All privileges  granted  by  any
registration,  license,  or permit shall be available only to the person
therein specified, and only for  the  premises  licensed  and  no  other
except  if  authorized  by  the  office.    Provided,  however, that the
provisions of this section shall not be deemed to prohibit the amendment
of a registration  or  license  as  provided  for  in  this  chapter.  A
violation  of  this  section shall subject the registration, license, or
permit to revocation for cause.
  2. Where a registration or license for premises has been revoked,  the
office in its discretion may refuse to issue a registration, license, or
permit  under  this chapter, for a period of up to five years after such
revocation, for such premises or for any part of the building containing
such premises and connected therewith.
  3. In determining whether to issue such a proscription against  grant-
ing  any  registration, license, or permit for such five-year period, in
addition to any other factors deemed relevant to the office, the  office
shall,  in  the  case  of  a  license revoked due to the illegal sale of
cannabis to a minor, determine whether the proposed subsequent  licensee
has  obtained such premises through an arm's length transaction, and, if
such transaction is not found to be an  arm's  length  transaction,  the
office shall deny the issuance of such license.
  4. For purposes of this section, "arm's length transaction" shall mean
a  sale  of  a  fee  of all undivided interests in real property, lease,
management agreement, or other agreement giving  the  applicant  control
over  the  cannabis  at  the  premises, or any part thereof, in the open
market, between an informed and willing buyer and seller  where  neither
is under any compulsion to participate in the transaction, unaffected by
any unusual conditions indicating a reasonable possibility that the sale
was  made  for  the purpose of permitting the original licensee to avoid
the effect of the revocation. The following sales shall be presumed  not
to  be  arm's  length  transactions  unless  adequate  documentation  is

A. 1617--B                         56

provided demonstrating that the sale, lease,  management  agreement,  or
other  agreement  giving  the applicant control over the cannabis at the
premises, was not conducted, in whole or in part,  for  the  purpose  of
permitting the original licensee to avoid the effect of the revocation:
  (a) a sale between relatives;
  (b) a sale between related companies or partners in a business; or
  (c) a sale, lease, management agreement, or other agreement giving the
applicant  control  over the cannabis at the premises, affected by other
facts or circumstances that would indicate that the sale, lease, manage-
ment agreement, or other agreement giving the applicant control over the
cannabis at the premises, is entered into for  the  primary  purpose  of
permitting the original licensee to avoid the effect of the revocation.
  5.  No  registered organization, licensee or permittee shall transport
cannabis products or medical cannabis except in vehicles owned and oper-
ated by such registered organization, licensee or  permittee,  or  hired
and operated by such registered organization, licensee or permittee from
a  trucking  or transportation company permitted and registered with the
office.
  6. No common carrier or person operating a transportation facility  in
this  state,  other than the United States government, shall receive for
transportation or delivery within the state  any  cannabis  products  or
medical cannabis unless the shipment is accompanied by copy of a bill of
lading,  or  other document, showing the name and address of the consig-
nor, the name and address of the consignee, the date  of  the  shipment,
and  the  quantity  and  kind  of  cannabis products or medical cannabis
contained therein.
  § 127. Protections for the use of cannabis;  unlawful  discriminations
prohibited.   1. No person, registered organization, licensee or permit-
tee, employees, or their agents shall be subject to arrest, prosecution,
or penalty in any manner, or denied any right  or  privilege,  including
but  not limited to civil liability or disciplinary action by a business
or occupational or professional licensing board or  office,  solely  for
conduct  permitted  under  this chapter. For the avoidance of doubt, the
appellate division of the supreme court of the state of  New  York,  and
any disciplinary or character and fitness committees established by them
are occupational and professional licensing boards within the meaning of
this  section. State or local law enforcement agencies shall not cooper-
ate with or provide assistance to the government of the United States or
any agency thereof in enforcing the federal  controlled  substances  act
solely for actions consistent with this chapter, except as pursuant to a
valid court order.
  2.  No school or landlord may refuse to enroll or lease to and may not
otherwise penalize a person solely for conduct allowed under this  chap-
ter, except as exempted:
  (a)  if  failing to do so would cause the school or landlord to lose a
monetary or licensing related benefit under federal law or regulations;
  (b) if the institution has  adopted  a  code  of  conduct  prohibiting
cannabis use on the basis of religious belief; or
  (c)  if  a property is registered with the New York smoke-free housing
registry, it is not required to permit the smoking of cannabis  products
on its premises.
  3.  For  the  purposes of medical care, including organ transplants, a
certified patient's authorized use of medical cannabis must  be  consid-
ered  the equivalent of the use of any other medication under the direc-
tion of a practitioner and does not constitute the  use  of  an  illicit

A. 1617--B                         57

substance  or  otherwise disqualify a registered qualifying patient from
medical care.
  4.  It  is  the  public  policy  of  the state of New York to prohibit
employers from discriminating against  employees  for  legal  activities
occurring outside of the workplace. Nothing in this section shall inter-
fere  with  an  employer's obligation to provide a safe and healthy work
place, free from recognized hazards, as required by  state  and  federal
occupation  safety  and  health law or require an employer to commit any
act that would cause the employer to be in violation of any other feder-
al law, or that would result in the loss of a federal contract or feder-
al funding.
  5. For the purposes of this  section,  an  employer  may  consider  an
employee's  ability to perform the employee's job responsibilities to be
impaired when the employee manifests specific articulable symptoms while
working that decrease or lessen the employee's performance of the duties
or tasks of the employee's job position.
  6. Nothing in this section shall restrict  an  employer's  ability  to
prohibit  or take adverse employment action for the possession or use of
intoxicating substances during work hours, or  require  an  employer  to
commit  any  act  that  would  cause  the employer to be in violation of
federal law, or that would result in the loss of a federal  contract  or
federal funding.
  7. As used in this section, "adverse employment action" means refusing
to  hire  or employ, barring or discharging from employment, requiring a
person to retire from employment, or discriminating against  in  compen-
sation or in terms, conditions, or privileges of employment.
  8.  A  person  currently under parole, probation or other state super-
vision, or released on bail awaiting trial may not be punished or other-
wise penalized for conduct allowed under this chapter.
  9. No person may be denied custody of or visitation or parenting  time
with  a minor, and there is no presumption of neglect or child endanger-
ment for conduct allowed under section 222.05 of the penal  law,  unless
the  person's  behavior  creates an unreasonable danger to the safety of
the minor as established by  clear  and  convincing  evidence.  For  the
purposes  of this section, an "unreasonable danger" determination cannot
be based solely on whether, when, and how often a person  uses  cannabis
without separate evidence of harm.
  §  128.  Registrations  and  licenses.   1. No registration or license
shall be transferable or  assignable  except  that  notwithstanding  any
other provision of law, the registration or license of a sole proprietor
converting  to  corporate  form,  where such proprietor becomes the sole
stockholder and only officer and director of such new  corporation,  may
be  transferred  to  the subject corporation if all requirements of this
chapter remain the same with respect to such registration or license  as
transferred  and, further, the registered organization or licensee shall
transmit to the office, within ten  days  of  the  transfer  of  license
allowable  under  this  subdivision, on a form prescribed by the office,
notification of the transfer of such license.
  2. No registration or license shall be pledged or deposited as collat-
eral security for any loan or upon any other  condition;  and  any  such
pledge or deposit, and any contract providing therefor, shall be void.
  3.  Licenses  issued  under this chapter shall contain, in addition to
any further information or material to be prescribed by the rules of the
office, the following information:
  (a) name of the person to whom the license is issued;

A. 1617--B                         58

  (b) type of license and what type  of  cannabis  commerce  is  thereby
permitted;
  (c)  description by street and number, or otherwise, of licensed prem-
ises; and
  (d) a statement in substance that such license shall not be  deemed  a
property  or vested right, and that it may be revoked at any time pursu-
ant to law.
  § 129. Laboratory testing permits. 1.  The  executive  director  shall
approve and permit one or more independent cannabis testing laboratories
to test medical cannabis, adult-use cannabis and/or hemp extract.
  2. To be permitted as an independent cannabis laboratory, a laboratory
must  apply  to  the office, on a form and in a manner prescribed by the
office, and must demonstrate the following to the  satisfaction  of  the
executive director:
  (a) the owners and directors of the laboratory are of good moral char-
acter;
  (b)  the laboratory and its staff has the skills, resources and exper-
tise needed to accurately and consistently perform all  of  the  testing
required for adult-use cannabis, medical cannabis and/or hemp extract;
  (c)  the  laboratory has in place and will maintain adequate policies,
procedures, and facility security to ensure proper:  collection,  label-
ing, accessioning, preparation, analysis, result reporting, disposal and
storage of adult-use cannabis, and/or medical cannabis;
  (d) the laboratory is physically located in New York state;
  (e)  the  laboratory  has  been  approved  by the department of health
pursuant to Part 55-2 of Title 10 of the New York Codes, Rules and Regu-
lations, pertaining to laboratories performing  environmental  analysis;
and
  (f)  the  laboratory meets any and all requirements prescribed by this
chapter and by the executive director in regulation.
  3. The owner of a laboratory testing permit under this  section  shall
not  hold  a registration or license in any category of this chapter and
shall not have any direct or indirect ownership interest in such  regis-
tered  organization  or  licensee.  No  board  member, officer, manager,
owner, partner, principal stakeholder or member of a  registered  organ-
ization or licensee under this chapter, or such person's immediate fami-
ly  member,  shall  have  an interest or voting rights in any laboratory
testing permittee.
  4. The executive director shall require that the permitted  laboratory
report  testing results to the office in a manner, form and timeframe as
determined by the executive director.
  5. The executive director is  authorized  to  promulgate  regulations,
requiring permitted laboratories to perform certain tests and services.
  6. A laboratory granted a laboratory testing permit under this chapter
shall  not required to be licensed by the federal drug enforcement agen-
cy.
  § 130. Special use permits.  The office is hereby authorized to  issue
the  following  kinds  of  permits for carrying on activities consistent
with the policy and purpose of this chapter with  respect  to  cannabis.
The  executive  director  has  the authority to set fees for all permits
issued pursuant to this section, to establish the periods  during  which
permits  are  authorized,  and  to make rules and regulations, including
emergency regulations, to implement this section.
  1. Industrial cannabis permit - to purchase cannabis from one  of  the
entities  licensed  by the office for use in the manufacture and sale of
any of the following, when such cannabis is not otherwise  suitable  for

A. 1617--B                         59

consumption  purposes,  namely:   (a) apparel, energy, paper, and tools;
(b) scientific, chemical, mechanical and industrial products; or (c) any
other industrial use as determined by the executive  director  in  regu-
lation.
  2.  Trucking  permit  - to allow for the trucking or transportation of
cannabis products, or medical cannabis by a person other than  a  regis-
tered organization or licensee under this chapter.
  3.  Warehouse  permit - to allow for the storage of cannabis, cannabis
products, or medical cannabis at a location not otherwise registered  or
licensed by the office.
  4.  Cannabinoid permit - to sell cannabinoid products for off-premises
consumption.
  5. Temporary retail cannabis permit - to authorize the retail sale  of
adult-use cannabis to cannabis consumers, for a limited purpose or dura-
tion.
  6. Caterer's permit - to authorize the service of cannabis products at
a  function, occasion or event in a hotel, restaurant, club, ballroom or
other premises, which shall authorize within  the  hours  fixed  by  the
office,  during  which  cannabis  may  lawfully be sold or served on the
premises in which such function, occasion or event is held.
  7. Packaging permit - to authorize a licensed cannabis distributor  to
sort,  package,  label  and  bundle  cannabis  products from one or more
registered organizations or licensed processors, on the premises of  the
licensed  cannabis  distributor or at a warehouse for which a permit has
been issued under this section.
  8. Miscellaneous permits - to  purchase,  receive  or  sell  cannabis,
cannabis  products  or  medical  cannabis,  or  receipts,  certificates,
contracts or other documents pertaining to cannabis, cannabis  products,
or  medical  cannabis, in cases not expressly provided for by this chap-
ter, when in the judgment of the office  it  would  be  appropriate  and
consistent with the policy and purpose of this chapter.
  §  131.  Professional  and  medical record keeping.   Any professional
providing services in connection with a licensed or potentially licensed
business under this chapter, or in connection with other conduct permit-
ted under this chapter, and any medical professional  providing  medical
care  to a patient, other than a certified patient, may agree with their
client or patient to maintain no record, or any reduced level of  record
keeping  that  professional  and client or patient may agree. In case of
such agreement, the professional's only obligation shall be to keep such
records as agreed, and to keep a record of the agreement.  Such  reduced
record keeping is conduct permitted under this chapter.
  §  132.  Local  opt-out;  municipal  control  and preemption.   1. The
provisions of article four of this chapter, authorizing the cultivation,
processing, distribution and sale  of  adult-use  cannabis  to  cannabis
consumers,  shall  not  be  applicable to a town, city or village which,
after a mandatory referendum held pursuant to  section  twenty-three  of
the  municipal  home rule law, adopts a local law to prohibit the estab-
lishment or operation of one or more  types  of  licenses  contained  in
article  four of this chapter, within the jurisdiction of the town, city
or village. Provided, however, that any town law shall apply to the area
of the town outside of any village within such town.
  2. Except as provided for in subdivision  one  of  this  section,  all
county,  town,  city  and  village governing bodies are hereby preempted
from adopting any rule, ordinance, regulation or prohibition  pertaining
to  the  operation  or  licensure of registered organizations, adult-use
cannabis licenses or hemp licenses.  However,  municipalities  may  pass

A. 1617--B                         60

local  laws  and  ordinances  governing  the  time,  place and manner of
licensed adult-use cannabis retail dispensaries, provided such ordinance
or regulation does not  make  the  operation  of  such  licensed  retail
dispensaries  unreasonably  impracticable as determined by the executive
director in consultation with the cannabis advisory board.
  § 133. Personal cultivation. 1. Notwithstanding any provision  of  law
to  the  contrary,  a person over the age of twenty-one shall be able to
plant, cultivate, harvest, dry or  process  cannabis  for  personal  use
subject to the following restrictions:
  (a)  all  cultivation  and processing shall be done in accordance with
local ordinances; and
  (b) the living plants and any  cannabis  produced  by  the  plants  in
excess  of  three  ounces must be kept within the person's private resi-
dence, or upon the grounds  of  that  private  residence  (e.g.,  in  an
outdoor  garden  area),  in  a  locked  space, and 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  town,  city  or  village  may  enact and enforce regulations to
reasonably regulate the actions and conduct under this section.    Regu-
lations  may  not  completely  prohibit persons engaging in conduct made
lawful under subdivision one of this section.
  3. A violation of subdivision one of this section  is  a  misdemeanor,
punishable  under section 222.10 of the penal law and subject to a local
fine of not more than one hundred dollars.
  §  134.  Executive  director  to  be  necessary   party   to   certain
proceedings.    The  executive  director  shall  be  made a party to all
actions and proceedings affecting in any manner the ability of a  regis-
tered  organization or licensee to operate within a municipality, or the
result of any vote thereupon; to all actions and proceedings relative to
issuance or revocation of registrations, licenses  or  permits;  to  all
injunction  proceedings,  and  to all other civil actions or proceedings
which in any manner affect the enjoyment of the privileges or the opera-
tion of the restrictions provided for in this chapter.
  § 135. Penalties for violation of this chapter.   1.  Any  person  who
cultivates  for  sale  or  sells cannabis, cannabis products, or medical
cannabis without having an appropriate registration, license  or  permit
therefor,  or  whose  registration, license, or permit has been revoked,
surrendered or cancelled, shall be subject to conviction as provided  by
article two hundred twenty-two of the penal law.
  2.  Any  registered  organization  or  licensee, whose registration or
license has been suspended pursuant to the provisions of  this  chapter,
who  sells cannabis, cannabis products, medical cannabis or hemp extract
during the suspension period, shall be subject to conviction as provided
by article two hundred twenty-two of the penal law, and upon  conviction
thereof  shall  be  punished  by  a  fine of not more than five thousand
dollars per instance.
  3. Any person who shall make any false statement  in  the  application
for  a  registration,  license  or  a permit under this chapter shall be
subject to a fine of not more than five thousand dollars.
  4. Any violation by any person of any provision of  this  chapter  for
which  no  punishment or penalty is otherwise provided shall be a misde-
meanor.
  5. Any person under the age of twenty-one found to be in possession of
cannabis or cannabis products that is not a patient registered  pursuant

A. 1617--B                         61

to  article  three of this chapter shall be in violation of this chapter
and shall be subject to the following penalty:
  (a)  (i)  The person shall be subject to a fine of not more than twen-
ty-five dollars. The fine shall be payable to  the  office  of  cannabis
management.
  (ii)  Any  identifying  information provided by the enforcement agency
for the purpose of facilitating payment of the fine shall not be  shared
or  disclosed  under  any  circumstances  with  any  other agency or law
enforcement division.
  (b) The person shall, upon payment of the required fine,  be  provided
with  information related to the dangers of underage use of cannabis and
information related to cannabis use disorder by the office  of  cannabis
management.
  (c)  The  issuance and subsequent payment of such fine shall in no way
qualify as a criminal accusation, admission  of  guilt,  or  a  criminal
conviction and shall in no way operate as a disqualification of any such
person  from holding public office, attaining public employment, or as a
forfeiture of any right or privilege.
  6. Cannabis  recovered  from  individuals  who  are  found  to  be  in
violation  of  this  chapter shall be considered a nuisance and shall be
disposed of or destroyed.
  § 136. Revocation of registrations, licenses and  permits  for  cause;
procedure  for revocation or cancellation.  1. Any registration, license
or permit issued pursuant to this chapter  may  be  revoked,  cancelled,
suspended  and/or  subjected  to  the  imposition of a civil penalty for
cause, and must be revoked for the following causes:
  (a) conviction of the registered organization, licensee, permittee  or
his  or  her  agent  or employee for selling any illegal cannabis on the
premises registered, licensed or permitted; or
  (b) for  transferring,  assigning  or  hypothecating  a  registration,
license or permit without prior written approval of the office.
  2.  Notwithstanding  the issuance of a registration, license or permit
by way of renewal, the office may revoke, cancel or suspend such  regis-
tration, license or permit and/or may impose a civil penalty against any
holder  of  such  registration, license or permit, as prescribed by this
section, for causes or violations occurring during  the  license  period
immediately  preceding  the  issuance  of  such registration, license or
permit.
  3. (a) As used in this  section,  the  term  "for  cause"  shall  also
include  the  existence of a sustained and continuing pattern of miscon-
duct, failure to adequately prevent diversion or disorder  on  or  about
the  registered, licensed or permitted premises, or in the area in front
of or adjacent to the registered or licensed premises, or in any parking
lot provided by the registered  organization  or  licensee  for  use  by
registered organization or licensee's patrons, which, in the judgment of
the office, adversely affects or tends to affect the protection, health,
welfare,  safety,  or repose of the inhabitants of the area in which the
registered or licensed premises is located, or results in  the  licensed
premises becoming a focal point for police attention, or is offensive to
public decency.
  (b)  (i)  As  used  in  this  section, the term "for cause" shall also
include deliberately misleading the authority:
  (A) as to the nature and character of the business to be  operated  by
the registered organization, licensee or permittee; or

A. 1617--B                         62

  (B) by substantially altering the nature or character of such business
during  the registration or licensing period without seeking appropriate
approvals from the office.
  (ii) As used in this subdivision, the term "substantially altering the
nature  or character" of such business shall mean any significant alter-
ation in the scope of business  activities  conducted  by  a  registered
organization,  licensee  or  permittee  that  would require obtaining an
alternate form of registration, license or permit.
  4. As used in this chapter, the existence of a sustained and  continu-
ing  pattern  of  misconduct, failure to adequately prevent diversion or
disorder on or about the premises may be presumed upon the  sixth  inci-
dent  reported  to the office by a law enforcement agency, or discovered
by the office during the course of  any  investigation,  of  misconduct,
diversion  or disorder on or about the premises or related to the opera-
tion of the premises, absent clear and  convincing  evidence  of  either
fraudulent intent on the part of any complainant or a factual error with
respect  to  the  content of any report concerning such complaint relied
upon by the office.
  5. Notwithstanding any other provision of this chapter to the  contra-
ry,  a  suspension  imposed  under  this section against the holder of a
registration issued pursuant to article three  of  this  chapter,  shall
only  suspend  the  licensed activities related to the type of cannabis,
medical cannabis or adult-use cannabis involved in the violation result-
ing in the suspension.
  6. Any registration, license or permit issued by the  office  pursuant
to  this  chapter  may  be  revoked,  cancelled  or  suspended and/or be
subjected to  the  imposition  of  a  monetary  penalty  in  the  manner
prescribed by this section and by the executive director in regulation.
  7.  The  office  may  on  its  own  initiative, or on complaint of any
person, institute proceedings to revoke, cancel or suspend any adult-use
cannabis  retail  dispensary  license  or  adult-use  cannabis   on-site
consumption  license and may impose a civil penalty against the licensee
after a hearing at which the licensee shall be given an  opportunity  to
be heard. Such hearing shall be held in such manner and upon such notice
as may be prescribed in regulation by the executive director.
  8.  All  other  registrations,  licenses  or permits issued under this
chapter may be revoked, cancelled, suspended and/or made subject to  the
imposition  of  a civil penalty by the office after a hearing to be held
in such manner and upon such notice as may be prescribed  in  regulation
by the executive director.
  9.  Where a licensee or permittee is convicted of two or more qualify-
ing offenses within a five-year period,  the  office,  upon  receipt  of
notification of such second or subsequent conviction, shall, in addition
to  any  other sanction or civil or criminal penalty imposed pursuant to
this chapter, impose on such licensee a civil penalty not to exceed  ten
thousand  dollars.    For  purposes  of  this  subdivision, a qualifying
offense shall mean the unlawful sale of cannabis to a person  under  the
age  of  twenty-one. For purposes of this subdivision, a conviction of a
licensee or an employee or agent of such  licensee  shall  constitute  a
conviction of such licensee.
  §  137. Lawful actions pursuant to this chapter.  1. Contracts related
to the operation of registered organizations, licenses and permits under
this chapter shall be lawful and shall not be  deemed  unenforceable  on
the  basis  that  the  actions  permitted  pursuant to the registration,
license or permit are prohibited by federal law.

A. 1617--B                         63

  2. The following actions are not unlawful as provided under this chap-
ter, shall not be an offense under any state or local law, and shall not
result in any civil fine, seizure, or forfeiture of assets,  or  be  the
basis  for  detention  or search against any person acting in accordance
with this chapter:
  (a)  Actions  of a registered organization, licensee, or permittee, or
the employees or agents of such  registered  organization,  licensee  or
permittee,  as  permitted  by this chapter and consistent with rules and
regulations of the office, pursuant to a valid registration, license  or
permit issued by the office.
  (b)  Actions  of  those  who allow property to be used by a registered
organization, licensee, or permittee, or the employees or agents of such
registered organization, licensee or permittee,  as  permitted  by  this
chapter  and consistent with rules and regulations of the office, pursu-
ant to a valid registration, license or permit issued by the office.
  (c) Actions of any person or entity, their employees, or their  agents
providing a service to a registered organization, licensee, permittee or
a  potential registered organization, licensee, or permittee, as permit-
ted by this chapter and consistent with rules  and  regulations  of  the
office, relating to the formation of a business.
  (d)  The purchase, possession, or consumption of cannabis, and medical
cannabis, as permitted by law, and consistent with rules and regulations
of the office.
  § 138. Review by courts.  1. The following actions by the office,  and
only  the following actions by the office, shall be subject to review by
the supreme court in the manner provided in article seventy-eight of the
civil practice law and rules:
  (a) Refusal by the office to  issue  a  registration,  license,  or  a
permit.
  (b)  The  revocation,  cancellation  or  suspension of a registration,
license, or permit by the office.
  (c) The failure or refusal by the office to render a decision upon any
application or hearing submitted to or held by the office  within  sixty
days after such submission or hearing.
  (d)  The  transfer by the office of a registration, license, or permit
to any other entity or premises, or the failure or refusal by the office
to approve such a transfer.
  (e) Refusal to approve alteration of premises.
  (f) Refusal to approve a corporate change in stockholders,  stockhold-
ings, officers or directors.
  2.  No  stay shall be granted pending the determination of such matter
except on notice to the office and only for a period of less than thirty
days. In no instance shall a stay be granted where the office has issued
a summary suspension of a  registration,  license,  or  permit  for  the
protection of the public health, safety, and welfare.
  § 139. Illicit cannabis.  1. "Illicit cannabis" means and includes any
cannabis  product,  or  medical cannabis owned, cultivated, distributed,
bought, sold, packaged, rectified, blended, treated,  fortified,  mixed,
processed,  warehoused,  possessed  or  transported, or on which any tax
required to have been paid under any applicable state law has  not  been
paid.
  2.  Any  person  who  shall knowingly possess or have under his or her
control any cannabis known by the person to be illicit cannabis is guil-
ty of a misdemeanor.

A. 1617--B                         64

  3. Any person who shall knowingly barter or exchange  with,  or  sell,
give  or  offer  to  sell  or  to give another any cannabis known by the
person to be illicit cannabis is guilty of a misdemeanor.
  4.  Any  person  who shall possess or have under his or her control or
transport any cannabis known by the person to be illicit  cannabis  with
intent  to  barter  or  exchange with, or to sell or give to another the
same or any part thereof is guilty of  a  misdemeanor.  Such  intent  is
presumptively  established  by proof that the person knowingly possessed
or had under his or her control one or more ounces of illicit  cannabis.
This presumption may be rebutted.
  5.  Any  person who, being the owner, lessee, or occupant of any room,
shed, tenement, booth or building, float or  vessel,  or  part  thereof,
knowingly  permits  the same to be used for the cultivation, processing,
distribution, purchase, sale, warehousing, transportation, or storage of
any illicit cannabis, is guilty of a misdemeanor.
  § 140. Persons forbidden to traffic cannabis; certain officials not to
be interested in manufacture  or  sale  of  cannabis  products.  1.  The
following are forbidden to traffic in cannabis:
  (a)  An individual who has 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 office determines that
the  owner or licensee is otherwise suitable to be issued a license, and
granting the license would not  compromise  public  safety,  the  office
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 office shall include, but not be limited
to, the following:
  (i) a felony conviction involving fraud, money laundering, forgery and
other unlawful conduct related to owning and operating a business; and
  (ii) 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.
  (b) A person under the age of twenty-one years;
  (c) A person who is not a citizen of the United  States  or  an  alien
lawfully admitted for permanent residence in the United States;
  (d) A partnership or a corporation, unless each member of the partner-
ship,  or  each  of  the  principal officers and directors of the corpo-
ration, is a citizen of the United States or an alien lawfully  admitted
for  permanent  residence in the United States, not less than twenty-one
years of age;  provided  however  that  a  corporation  which  otherwise
conforms to the requirements of this section and chapter may be licensed
if  each  of its principal officers and more than one-half of its direc-
tors are citizens of the United States or aliens lawfully  admitted  for
permanent  residence  in  the United States; and provided further that a
corporation organized under the not-for-profit corporation  law  or  the
education  law  which  otherwise  conforms  to  the requirements of this
section and chapter may be licensed if each of  its  principal  officers
and  directors  are not less than twenty-one years of age; and provided,
further, that a corporation organized under  the  not-for-profit  corpo-
ration law or the education law and located on the premises of a college
as  defined by section two of the education law which otherwise conforms

A. 1617--B                         65

to the requirements of this section and chapter may be licensed if  each
of  its  principal  officers and each of its directors are not less than
twenty-one years of age;
  (e)  A  person  who  shall have had any registration or license issued
under this chapter revoked for cause, until the expiration of two  years
from the date of such revocation;
  (f)  A  person not registered or licensed under the provisions of this
chapter, who has been convicted of a violation of  this  chapter,  until
the expiration of two years from the date of such conviction; or
  (g)  A  corporation or partnership, if any officer and director or any
partner, while not licensed under the provisions of  this  chapter,  has
been convicted of a violation of this chapter, or has had a registration
or  license issued under this chapter revoked for cause, until the expi-
ration of two years from the date of such conviction or revocation.
  2. Except as may otherwise be provided for in regulation, it shall  be
unlawful   for  any  police  commissioner,  police  inspector,  captain,
sergeant, roundsman, patrolman or other police official  or  subordinate
of  any  police  department in the state, to be either directly or indi-
rectly interested in the cultivation, processing, distribution, or  sale
of  cannabis  products  or to offer for sale, or recommend to any regis-
tered organization or licensee any cannabis products. A person  may  not
be  denied  any  registration or license granted under the provisions of
this chapter solely on the grounds of being the spouse of a public serv-
ant described in this section. The solicitation or  recommendation  made
to  any  registered  organization  or licensee, to purchase any cannabis
products by any police official or subordinate as hereinabove described,
shall be presumptive evidence of the interest of such official or subor-
dinate in the cultivation, processing, distribution, or sale of cannabis
products.
  3. No elective village officer shall be subject to the limitations set
forth in subdivision two of this section unless  such  elective  village
officer  shall  be assigned duties directly relating to the operation or
management of the police department.
  § 141. Access to criminal history information through the division  of
criminal  justice  services.    In connection with the administration of
this chapter, the executive director is authorized to  request,  receive
and review criminal history information through the division of criminal
justice  services  with  respect  to  any person seeking a registration,
license, permit or authorization to cultivate,  process,  distribute  or
sell medical cannabis, adult use cannabis or hemp extract. At the execu-
tive  director's  request, each person, member, principal and/or officer
of the applicant shall submit to the office his or her  fingerprints  in
such  form  and  in  such  manner  as specified by the division, for the
purpose of conducting a criminal history search and returning  a  report
thereon  in  accordance with the procedures and requirements established
by the division pursuant to the provisions of article thirty-five of the
executive law, which shall include the payment of the  prescribed  proc-
essing fees for the cost of the division's full search and retain proce-
dures and a national criminal history record check. The executive direc-
tor,  or  his  or  her  designee, shall submit such fingerprints and the
processing fee to the division. The division shall forward to the execu-
tive director a report with respect to the applicant's previous criminal
history, if any, or a statement that the applicant has no previous crim-
inal history according to its files. Fingerprints submitted to the divi-
sion pursuant to this subdivision may also be submitted to  the  federal
bureau of investigation for a national criminal history record check. If

A. 1617--B                         66

additional  copies  of  fingerprints  are  required, the applicant shall
furnish them upon request.
  §  142.  Severability. If any provision of this chapter or application
thereof to any person or circumstances is held invalid, such  invalidity
shall  not  affect other provisions or applications of this chapter that
can be given effect without the invalid provision or application, and to
this end the provisions of this chapter are declared severable.
  § 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

A. 1617--B                         67

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.
  [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

A. 1617--B                         68

  (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,
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.

A. 1617--B                         69

  [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
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. 1617--B                         70

  (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
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.

A. 1617--B                         71

  [(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:   etryp-
tamine;  Monase;  Alpha-ethyl-1H-indole-3-ethanamine;  3- (2-aminobutyl)
indole; Alpha-ET or AET.
  [(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 is REPEALED.
  § 6. Title 5-A of article 33 of the public health law is REPEALED.
  §  7.  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 3 and subdivision 3-a as added
by chapter 655 of the laws of 1990 and paragraphs (a) and (b) of  subdi-
vision  11 as amended by section 47 of part A1 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

A. 1617--B                         72

shall  be  accepted  for filing unless it is accompanied by an affidavit
from the claiming authority that written notice of  the  stipulation  or
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].
  § 8. 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"]  "CANNABIS" means [marijuana] CANNABIS 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.
  § 9. 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 ANY SUBSTANCE OR COMBINATION OF SUBSTANCES THAT
IMPAIR PHYSICAL AND MENTAL ABILITIES.
  § 10. 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] CANNABIS, 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"] "CANNABIS" means ["marihuana" or "concentrated canna-
bis" 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 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).
  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. 1617--B                         73

  (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.
  22.  "CANNABIS  PRODUCTS"  MEANS  CANNABIS, CONCENTRATED CANNABIS, AND
CANNABIS-INFUSED PRODUCTS CONTAINING  CONCENTRATED  CANNABIS  AND  OTHER
INGREDIENTS.
  § 11.  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
  § 12. 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
  §  13. 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
  § 14. 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  CANNABIS  OR   CONCENTRATED
CANNABIS; 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  CANNABIS  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-

A. 1617--B                         74

aging or dispensing of any narcotic drug or stimulant, OTHER THAN CANNA-
BIS OR CONCENTRATED CANNABIS.
  Criminally  using drug paraphernalia in the second degree is a class A
misdemeanor.
  § 15. Article 221 of the penal law is REPEALED.
  § 16. The penal law is amended by adding a new article 222 to read  as
follows:
                               ARTICLE 222
                                CANNABIS
SECTION 222.00 CANNABIS; DEFINITIONS.
        222.05 PERSONAL USE OF CANNABIS.
        222.10 UNLAWFUL CULTIVATION OF CANNABIS.
        222.15 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
        222.20 UNLAWFUL POSSESSION OF CANNABIS.
        222.25 UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE.
        222.30 UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE.
        222.35 SALE  OF  CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS
                 OF AGE IN THE SECOND DEGREE.
        222.40 SALE OF CANNABIS TO A PERSON LESS THAN  TWENTY-ONE  YEARS
                 OF AGE IN THE FIRST DEGREE.
§ 222.00 CANNABIS; DEFINITIONS.
  1.  "CANNABIS"  MEANS  ALL  PARTS  OF THE PLANT OF THE GENUS CANNABIS,
WHETHER GROWING OR NOT; THE SEEDS THEREOF; THE RESIN EXTRACTED FROM  ANY
PART  OF  THE  PLANT; AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE,
MIXTURE, OR PREPARATION OF THE PLANT, ITS SEEDS OR RESIN.  IT  DOES  NOT
INCLUDE  THE MATURE STALKS OF THE PLANT, FIBER PRODUCED FROM THE STALKS,
OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, ANY OTHER COMPOUND,  MANU-
FACTURE,  SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE MATURE STALKS
(EXCEPT THE RESIN EXTRACTED THEREFROM), FIBER,  OIL,  OR  CAKE,  OR  THE
STERILIZED SEED OF THE PLANT WHICH IS INCAPABLE OF GERMINATION.  IT DOES
NOT  INCLUDE  ALL PARTS OF THE PLANT CANNABIS SATIVA L., WHETHER GROWING
OR NOT, HAVING NO MORE THAN THREE-TENTHS OF ONE PERCENT TETRAHYDROCANNA-
BINOL (THC).
  2. "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.
  3.  "CANNABIS-INFUSED PRODUCTS" MEANS PRODUCTS THAT HAVE BEEN MANUFAC-
TURED AND CONTAIN EITHER CANNABIS OR  CONCENTRATED  CANNABIS  AND  OTHER
INGREDIENTS THAT ARE INTENDED FOR USE OR CONSUMPTION.
  4.  "MATURE  CANNABIS  PLANT"  MEANS  A CANNABIS PLANT WITH OBSERVABLE
FLOWERS OR BUDS.
  5. FOR THE PURPOSES OF  THIS  ARTICLE,  "SALE"  SHALL  MEAN  TO  SELL,
EXCHANGE  OR  DISPOSE  OF FOR COMPENSATION. "SALE" SHALL NOT INCLUDE THE
TRANSFER OF CANNABIS, CONCENTRATED CANNABIS OR CANNABIS-INFUSED  PRODUCT
BETWEEN PERSONS TWENTY-ONE YEARS OF AGE OR OLDER WITHOUT COMPENSATION IN
THE QUANTITIES AUTHORIZED IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
222.05 OF THIS ARTICLE.
§ 222.05 PERSONAL USE OF CANNABIS.
  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY:
  1.  THE  FOLLOWING ACTS ARE LAWFUL FOR PERSONS TWENTY-ONE YEARS OF AGE
OR OLDER:  (A) POSSESSING, DISPLAYING, PURCHASING, OBTAINING, OR  TRANS-

A. 1617--B                         75

PORTING  UP  TO  THREE OUNCES OF CANNABIS AND UP TO TWENTY-FOUR GRAMS OF
CONCENTRATED  CANNABIS,  OR  EQUIVALENT   AMOUNT   OF   CANNABIS-INFUSED
PRODUCTS;
  (B)  TRANSFERRING,  WITHOUT COMPENSATION, TO A PERSON TWENTY-ONE YEARS
OF AGE OR OLDER, UP TO THREE OUNCES OF CANNABIS AND  UP  TO  TWENTY-FOUR
GRAMS OF CONCENTRATED CANNABIS, OR EQUIVALENT AMOUNT OF CANNABIS-INFUSED
PRODUCTS;
  (C)  USING,  SMOKING,  INGESTING,  OR CONSUMING CANNABIS, CONCENTRATED
CANNABIS OR CANNABIS-INFUSED PRODUCTS  UNLESS  OTHERWISE  PROHIBITED  BY
STATE LAW OR REGULATION;
  (D)  POSSESSING, USING, DISPLAYING, PURCHASING, OBTAINING, MANUFACTUR-
ING, TRANSPORTING OR GIVING TO ANY PERSON TWENTY-ONE  YEARS  OF  AGE  OR
OLDER CANNABIS PARAPHERNALIA OR CONCENTRATED CANNABIS PARAPHERNALIA; AND
  (E)  ASSISTING ANOTHER PERSON WHO IS TWENTY-ONE YEARS OF AGE OR OLDER,
OR ALLOWING PROPERTY TO BE USED, IN ANY OF THE ACTS DESCRIBED  IN  PARA-
GRAPHS (A) THROUGH (D) OF THIS SUBDIVISION.
  2.  CANNABIS, CONCENTRATED CANNABIS, CANNABIS-INFUSED PRODUCTS, CANNA-
BIS PARAPHERNALIA OR CONCENTRATED CANNABIS PARAPHERNALIA 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 OR DETENTION.
  3. EXCEPT AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, NONE OF THE
FOLLOWING SHALL, INDIVIDUALLY OR IN COMBINATION WITH EACH OTHER, CONSTI-
TUTE  REASONABLE SUSPICION OF A CRIME OR BE USED AS EVIDENCE OF PROBABLE
CAUSE IN ANY CRIMINAL PROCEEDING AGAINST A DEFENDANT TWENTY-ONE YEARS OF
AGE OR OLDER:
  (A) THE ODOR OF CANNABIS OR OF BURNT CANNABIS;
  (B) THE POSSESSION OF OR THE  SUSPICION  OF  POSSESSION  OF  CANNABIS,
CONCENTRATED  CANNABIS  OR  CANNABIS-INFUSED  PRODUCTS  IN  THE  AMOUNTS
AUTHORIZED IN THIS SECTION;
  (C) THE POSSESSION OF MULTIPLE CONTAINERS OF CANNABIS WITHOUT EVIDENCE
OF POSSESSION OF MORE THAN THREE OUNCES OF CANNABIS,  TWENTY-FOUR  GRAMS
OF  CONCENTRATED  CANNABIS  OR THE EQUIVALENT AMOUNT OF CANNABIS-INFUSED
PRODUCTS; OR
  (D) THE PRESENCE OF CASH OR CURRENCY IN PROXIMITY TO CANNABIS, CONCEN-
TRATED CANNABIS OR CANNABIS-INFUSED PRODUCTS.
  4. SUBDIVISION THREE OF THIS  SECTION  SHALL  NOT  APPLY  WHEN  A  LAW
ENFORCEMENT OFFICER IS INVESTIGATING: (A) AN ALLEGED OFFENSE PURSUANT TO
SECTION 222.20, 222.25, 222.30, 222.35 OR 222.40 OF THIS ARTICLE; OR (B)
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 THEREOF IN VIOLATION OF ARTICLE
THIRTY-ONE OF THE VEHICLE AND TRAFFIC LAW.
  5. (A) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PERMIT ANY PERSON
TO:
  (I) SMOKE CANNABIS IN PUBLIC;
  (II) SMOKE CANNABIS PRODUCTS IN A LOCATION WHERE  SMOKING  TOBACCO  IS
PROHIBITED  PURSUANT  TO  SECTION  THIRTEEN HUNDRED NINETY-NINE-O OF THE
PUBLIC HEALTH LAW;
  (III) POSSESS, SMOKE OR  INGEST  CANNABIS  PRODUCTS  IN  OR  UPON  THE
GROUNDS  OF  ANY SCHOOL PROPERTY USED FOR SCHOOL PURPOSES WHICH IS OWNED
BY OR LEASED TO ANY ELEMENTARY OR SECONDARY SCHOOL OR SCHOOL BOARD WHILE
CHILDREN ARE PRESENT; OR

A. 1617--B                         76

  (IV) SMOKE OR INGEST CANNABIS  PRODUCTS  WHILE  DRIVING,  OPERATING  A
MOTOR  VEHICLE, BOAT, VESSEL, AIRCRAFT, OR OTHER VEHICLE USED FOR TRANS-
PORTATION.
  (B) FOR PURPOSES OF THIS SECTION:
  (I)  "SMOKE"  MEANS  TO  INHALE, EXHALE, BURN, OR CARRY ANY LIGHTED OR
HEATED DEVICE OR PIPE, OR  ANY  OTHER  LIGHTED  OR  HEATED  CANNABIS  OR
CONCENTRATED  CANNABIS  PRODUCT INTENDED FOR INHALATION, WHETHER NATURAL
OR SYNTHETIC, IN ANY MANNER OR IN ANY FORM.
  (II) "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.
  (C) VIOLATIONS OF THE RESTRICTIONS UNDER THIS SUBDIVISION ARE  SUBJECT
TO  A FINE NOT EXCEEDING TWENTY-FIVE DOLLARS OR AN APPROPRIATE AMOUNT OF
COMMUNITY SERVICE NOT TO EXCEED TWENTY HOURS.
§ 222.10 UNLAWFUL CULTIVATION OF CANNABIS.
  A PERSON IS GUILTY OF UNLAWFUL CULTIVATION OF CANNABIS WHEN HE OR  SHE
KNOWINGLY  AND  UNLAWFULLY PLANTS, CULTIVATES, HARVESTS, DRIES, OR PROC-
ESSES CANNABIS ON PUBLIC LANDS OR OTHERWISE IN VIOLATION OF ARTICLE  SIX
OF THE CANNABIS LAW.
  UNLAWFUL CULTIVATION OF CANNABIS IS A CLASS B MISDEMEANOR.
§ 222.15 LICENSING OF CANNABIS PRODUCTION AND DISTRIBUTION.
  THE  CRIMINAL PENALTIES PURSUANT TO THE PROVISIONS OF THIS ARTICLE FOR
POSSESSING, MANUFACTURING, TRANSPORTING, DISTRIBUTING, SELLING OR TRANS-
FERRING CANNABIS, CONCENTRATED  CANNABIS  OR  CANNABIS-INFUSED  PRODUCTS
SHALL  NOT  APPLY  TO  ANY PERSON ENGAGED IN SUCH ACTIVITY IN COMPLIANCE
WITH THE CANNABIS LAW.
§ 222.20 UNLAWFUL POSSESSION OF CANNABIS.
  A PERSON IS GUILTY OF UNLAWFUL POSSESSION OF CANNABIS WHEN HE  OR  SHE
KNOWINGLY AND UNLAWFULLY POSSESSES:
  1. CANNABIS AND SUCH CANNABIS WEIGHS MORE THAN THREE OUNCES; OR
  2.  CONCENTRATED  CANNABIS  AND SUCH CONCENTRATED CANNABIS WEIGHS MORE
THAN TWENTY-FOUR GRAMS; OR
  3. EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.
  UNLAWFUL POSSESSION OF CANNABIS IS A VIOLATION PUNISHABLE BY A FINE OF
NOT MORE THAN ONE HUNDRED TWENTY-FIVE DOLLARS.
§ 222.25 UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE.
  1. A PERSON IS GUILTY OF UNLICENSED SALE OF  CANNABIS  IN  THE  SECOND
DEGREE  WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY SELLS UP TO THREE OUNCES
OF CANNABIS, OR TWENTY-FOUR GRAMS OF CONCENTRATED CANNABIS OR EQUIVALENT
AMOUNT OF CANNABIS-INFUSED PRODUCTS.
  2. A VIOLATION OF THIS SECTION IS SUBJECT TO THE FOLLOWING  PENALTIES,
AS APPLICABLE:
  (A)  VIOLATION PUNISHABLE BY A FINE OF NOT MORE THAN ONE HUNDRED TWEN-
TY-FIVE DOLLARS;
  (B) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
THE CRIME OF UNLICENSED SALE OF CANNABIS IN THE FIRST  DEGREE,  SALE  OF
CANNABIS  TO  A  PERSON  LESS THAN TWENTY-ONE YEARS OF AGE IN THE SECOND
DEGREE, SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS  OF  AGE
IN  THE  FIRST  DEGREE OR THIS SECTION, THEN A VIOLATION PUNISHABLE BY A
FINE OF NOT MORE THAN TWO  HUNDRED  FIFTY  DOLLARS  FOR  A  SECOND  SUCH
OFFENSE; OR
  (C) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
THE  CRIME  OF  UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE, SALE OF
CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE

A. 1617--B                         77

IN THE FIRST DEGREE OR THIS SECTION, THEN A CLASS B MISDEMEANOR FOR SUCH
THIRD OR SUBSEQUENT OFFENSE.
§ 222.30 UNLICENSED SALE OF CANNABIS IN THE FIRST DEGREE.
  1.  A  PERSON  IS  GUILTY  OF UNLICENSED SALE OF CANNABIS IN THE FIRST
DEGREE WHEN HE OR SHE KNOWINGLY AND UNLAWFULLY  SELLS  MORE  THAN  THREE
OUNCES OF CANNABIS, MORE THAN TWENTY-FOUR GRAMS OF CONCENTRATED CANNABIS
OR THE EQUIVALENT AMOUNT OF CANNABIS-INFUSED PRODUCTS.
  2.  A VIOLATION OF THIS SECTION IS SUBJECT TO THE FOLLOWING PENALTIES,
AS APPLICABLE:
  (A) A VIOLATION PUNISHABLE BY A FINE OF  NOT  MORE  THAN  TWO  HUNDRED
FIFTY DOLLARS;
  (B) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
THE  CRIME  OF UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE, SALE OF
CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
IN THE FIRST DEGREE OR THIS SECTION, THEN A VIOLATION  PUNISHABLE  BY  A
FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS FOR SUCH SECOND OFFENSE; OR
  (C) IF, WITHIN THE PREVIOUS FIVE YEARS, THE DEFENDANT WAS CONVICTED OF
THE  CRIME  OF UNLICENSED SALE OF CANNABIS IN THE SECOND DEGREE, SALE OF
CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
DEGREE,  SALE  OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE
IN THE FIRST DEGREE OR THIS SECTION, THEN A CLASS A MISDEMEANOR FOR SUCH
THIRD OR SUBSEQUENT OFFENSE.
§ 222.35 SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE
           IN THE SECOND DEGREE.
  A  PERSON  TWENTY-ONE  YEARS  OF AGE OR OLDER IS GUILTY OF THE SALE OF
CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE  IN  THE  SECOND
DEGREE WHEN, BEING TWENTY-ONE YEARS OF AGE OR OLDER, HE OR SHE KNOWINGLY
AND UNLAWFULLY SELLS CANNABIS, CONCENTRATED CANNABIS OR CANNABIS-INFUSED
PRODUCTS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE.
  SALE  OF  CANNABIS  TO  A  PERSON UNDER TWENTY-ONE YEARS OF AGE IN THE
SECOND DEGREE IS A CLASS A MISDEMEANOR.
§ 222.40 SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF  AGE
           IN THE FIRST DEGREE.
  A  PERSON  TWENTY-ONE  YEARS OF AGE AND OLDER IS GUILTY OF THE SALE OF
CANNABIS TO A PERSON UNDER TWENTY-ONE YEARS OF AGE IN THE  FIRST  DEGREE
WHEN,  BEING  TWENTY-ONE  YEARS OF AGE OR OLDER, HE OR SHE KNOWINGLY AND
UNLAWFULLY SELLS MORE THAN THREE OUNCES OF CANNABIS, MORE  THAN  TWENTY-
FOUR  GRAMS  OF CONCENTRATED CANNABIS OR THE EQUIVALENT AMOUNT OF CANNA-
BIS-INFUSED PRODUCTS.
  SALE OF CANNABIS TO A PERSON LESS THAN TWENTY-ONE YEARS OF AGE IN  THE
FIRST DEGREE IS A CLASS E FELONY.
  §  17.  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  CANNABIS;
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.
  §  18. Section 1.20 of the criminal procedure law is amended by adding
a new subdivision 45 to read as follows:
  45. "EXPUNGE" MEANS, WHERE AN  ARREST  AND  ANY  ENFORCEMENT  ACTIVITY
CONNECTED WITH THAT ARREST, INCLUDING PROSECUTION AND ANY DISPOSITION IN
ANY  NEW  YORK  STATE  COURT,  IS  DEEMED  A  NULLITY AND THE ACCUSED IS
RESTORED, IN CONTEMPLATION OF THE LAW, TO  THE  STATUS  SUCH  INDIVIDUAL

A. 1617--B                         78

OCCUPIED  BEFORE  THE  ARREST  AND/OR  PROSECUTION; THAT RECORDS OF SUCH
ARREST, PROSECUTION AND/OR DISPOSITION SHALL BE MARKED  AS  EXPUNGED  OR
SHALL  BE  DESTROYED  AS  SET  FORTH  IN SECTION 160.50 OF THIS CHAPTER.
NEITHER  THE  ARREST  NOR  PROSECUTION  AND/OR DISPOSITION, IF ANY, OF A
MATTER DEEMED A NULLITY SHALL  OPERATE  AS  A  DISQUALIFICATION  OF  ANY
PERSON  SO  ACCUSED  TO PURSUE OR ENGAGE IN ANY LAWFUL ACTIVITY, OCCUPA-
TION, PROFESSION OR  CALLING.  EXCEPT  WHERE  SPECIFICALLY  REQUIRED  OR
PERMITTED BY STATUTE OR UPON SPECIFIC AUTHORIZATION OF A SUPERIOR COURT,
NO  SUCH  PERSON  SHALL BE REQUIRED TO DIVULGE INFORMATION PERTAINING TO
THE ARREST, PROSECUTION AND/OR DISPOSITION OF SUCH A MATTER.
  § 19. Subdivision 1 of section 160.50 of the criminal  procedure  law,
as  amended by chapter 169 of the laws of 1994, paragraph (d) as amended
by chapter 449 of the laws of 2015, is amended and a new subdivision 1-a
is added to read as follows:
  1. Upon the termination of a criminal action or proceeding  against  a
person  in favor of such person, as defined in subdivision three of this
section, unless the district attorney upon motion  with  not  less  than
five  days  notice to such person or his or her attorney demonstrates to
the satisfaction of the court that  the  interests  of  justice  require
otherwise,  or  the court on its own motion with not less than five days
notice to such person or his or her attorney determines that the  inter-
ests of justice require otherwise and states the reasons for such deter-
mination  on  the record, [the record of such action or proceeding shall
be sealed and the clerk of the court wherein  such  criminal  action  or
proceeding  was  terminated shall immediately notify the commissioner of
the division of criminal justice services and the heads of all appropri-
ate police departments and  other  law  enforcement  agencies  that  the
action has been terminated in favor of the accused, and unless the court
has  directed  otherwise,  that  the record of such action or proceeding
shall be sealed. Upon receipt of notification of  such  termination  and
sealing] SUCH ACTION OR PROCEEDING SHALL BE DEEMED A NULLITY AND RECORDS
OF SUCH ACTION OR PROCEEDING EXPUNGED, AND THE CLERK OF THE COURT WHERE-
IN  SUCH  CRIMINAL ACTION OR PROCEEDING WAS TERMINATED SHALL IMMEDIATELY
NOTIFY THE COMMISSIONER OF THE DIVISION OF CRIMINAL JUSTICE SERVICES AND
THE HEADS OF ALL APPROPRIATE POLICE DEPARTMENTS AND OTHER  LAW  ENFORCE-
MENT  AGENCIES  THAT  THE  ACTION  HAS  BEEN  TERMINATED IN FAVOR OF THE
ACCUSED AND DEEMED A NULLITY, AND UNLESS THE COURT HAS  DIRECTED  OTHER-
WISE,  THAT THE RECORD OF OR RELATING TO SUCH ACTION OR PROCEEDING SHALL
BE IMMEDIATELY EXPUNGED AS FOLLOWS:
  (a) every photograph of such person and photographic plate  or  proof,
and  all palmprints and fingerprints, RETINA SCANS OR DNA MATERIAL taken
or made of such person pursuant to the provisions  of  this  article  in
regard  to  the  action  or  proceeding  terminated, [except a dismissal
pursuant to section 170.56 or 210.46 of this chapter,]  and  all  dupli-
cates  and  copies  thereof,  except  a  digital fingerprint image where
authorized pursuant to paragraph (e) of this subdivision,  shall  forth-
with  be[,  at the discretion of the recipient agency, either] destroyed
[or returned to such person, or to the  attorney  who  represented  such
person]  at the time of the termination of the action or proceeding[, at
the address given by such  person  or  attorney  during  the  action  or
proceeding,]  by  the  division  of criminal justice services and by any
police department or law enforcement agency having any such  photograph,
photographic  plate or proof, palmprint